Condo Assessments In Streeterville Explained

Confused about what your Streeterville condo assessment actually pays for, or worried about surprise special assessments after you close? You are not alone. In high-rise neighborhoods like Streeterville, assessments vary widely and can change your true monthly cost more than you expect. In this guide, you will learn what assessments cover, how they are set, how to read association financials, and how to spot red flags before you make an offer. Let’s dive in.

What condo assessments cover in Streeterville

Monthly assessments are the payments you make to your condominium association to fund shared costs and future repairs. In Streeterville’s high-rise buildings, these costs often include a large staffing component and complex building systems.

Typical assessment coverage:

• Building staff and management services
• Utilities for common areas and sometimes bulk services to units
• Master insurance for common elements
• Common-area maintenance and repairs
• Cleaning, trash, pest control, landscaping, and snow removal
• Security systems and life-safety inspections
• Amenities operations and supplies
• Legal, accounting, admin, and taxes on common elements if applicable
• Reserve fund contributions for future capital projects

Streeterville context: Full-service towers with doormen, valet, pools, fitness centers, and concierge services have higher operating costs than low-rise buildings with minimal amenities. Elevators, structured parking, and upscale lobbies add ongoing expenses that assessments must support.

How your association sets monthly assessments

In Illinois, condominium associations operate under the Illinois Condominium Property Act and each building’s declaration, bylaws, and rules. These documents outline how assessments are calculated, how budgets are adopted, and when owner approval is needed.

Regular budgets and reserves

Boards typically prepare an annual operating budget with management. They review historical costs, inflation, expected repairs, and reserve study guidance. The total of operating expenses plus planned reserve contributions determines the assessment amount needed to balance the budget.

Healthy reserve funding helps stabilize assessments. When reserves are low relative to upcoming projects, a building is more likely to rely on special assessments.

Special assessments and approvals

Special assessments are used for large or unexpected costs that exceed operating funds and reserves. These can include emergency repairs, major component replacements, or uninsured damage. Whether the board can approve a special assessment on its own or must seek owner approval depends on the governing documents. Payment can be a lump sum or spread over several months.

As a buyer, you should confirm any current or pending special assessments and understand how they will affect your monthly and closing costs.

How to read the numbers with confidence

Ask for core documents during due diligence. At minimum, request the current budget, recent financial statements, reserve study, meeting minutes, insurance summary, and an estoppel or payoff letter that shows assessment status and any pending levies.

Budget and income statement

• Check total operating income and whether assessments are covering expenses.
• Review big-ticket items: management, staff, utilities, insurance, repairs.
• Note recurring deficits. A pattern of shortfalls can signal future increases.
• Confirm if any utilities or bulk services are included, since that affects what you will pay separately.

Balance sheet

• Look at cash on hand and reserve balances.
• Check if the association carries any loans for capital projects.
• Review receivables and the percentage of owners in arrears. High delinquency pushes costs onto paying owners.

Reserve study

• Review the list of major components, estimated costs, and remaining useful life.
• Note the recommended annual reserve funding and any percent funded metric.
• Compare near-term needs to the current reserve balance. If large projects are due and reserves are low, a special assessment is more likely.
• If there is no reserve study or it is out of date, treat that as a red flag.

Streeterville cost drivers to watch

Many Streeterville buildings are mid- to late-20th-century or newer high-rises with complex mechanical systems. The location’s lake-effect weather and freeze-thaw cycles increase façade and masonry wear, which can require periodic tuckpointing or exterior remediation.

Common capital projects in downtown high-rises include facade work, window replacement, elevator modernization, garage structural repairs and waterproofing, roof replacement, boiler or chiller upgrades, and plumbing riser work. These projects are expensive and are common triggers for special assessments when reserves are not sufficient.

Amenities also matter. Full-service staffing, valet, pools, fitness centers, and 24-7 security significantly raise operating budgets relative to buildings with fewer services.

Calculate your true monthly housing cost

Price alone does not tell the full story. Build a simple, repeatable calculation to compare buildings on equal terms.

Your monthly total should include:

• Mortgage principal and interest
• Monthly share of property taxes
• HO-6 condo insurance
• Regular condo assessment
• Utilities not covered by the association
• Parking, storage, or locker fees if not included
• A buffer for variability or special assessments

A practical approach is to add a modest monthly buffer to your budget. This helps you absorb temporary assessment increases or a small special assessment without stress.

Buyer due diligence checklist

Request these documents:

• Current budget and the prior 2 to 3 years of budgets and financials
• Most recent reserve study and any engineering reports or project proposals
• Minutes from board and annual meetings for the last 12 to 36 months
• Master insurance summary with deductible details
• Estoppel or payoff letter outlining assessment status and pending levies
• Declaration, bylaws, rules, and amendments
• Management contract and vendor list
• Litigation disclosures and any insurance claims
• Owner occupancy and rental percentages
• Record of recent special assessments and reasons

Ask these questions:

• Have there been special assessments in the last 5 years, and why?
• Are any capital projects planned that could require assessments or borrowing?
• What is the current delinquency rate and number of owners in arrears?
• When was the last reserve study and how funded are the reserves?
• Are there pending lawsuits or significant insurance claims?
• Which utilities and services are included in the assessment?

Watch for red flags:

• No recent reserve study or clearly inadequate reserves
• Chronic operating deficits
• Frequent or large special assessments
• High owner delinquency or many foreclosures
• Significant litigation or unclear insurance coverage
• Rapid board turnover or poor documentation in minutes

Parking and storage details in Streeterville

Parking is a meaningful cost in Streeterville. Spaces may be deeded, assigned, or leased. Some buildings include parking in assessments, while others charge separate fees. Confirm the setup for the unit you are buying, including any maintenance costs for the garage. Do the same for storage lockers or bike rooms, as fees and policies vary.

Taxes and financing basics

Most personal-use homeowners cannot deduct regular condo assessments on their taxes. If you are buying for rental use, HOA fees may be deductible as an expense. Special assessments can be treated differently depending on the situation. Plan to consult a tax advisor on your specific case.

Mortgage lenders apply condo project rules that can affect approval. Factors like owner-occupancy levels, delinquency rates, and litigation status matter. Buildings with healthy reserves and low delinquencies are often easier to finance and can lead to a smoother closing.

When to bring in the pros

If you are serious about a Streeterville condo, involve a condo-savvy real estate attorney to review governing documents and the estoppel. Speak with a lender who works frequently with Chicago condos. For older or complex buildings, consider an engineer or inspector with high-rise experience to assess recurring issues that can impact future costs.

You do not have to piece this together on your own. With decades of Chicago experience, a consultative approach, and a trusted local network, India Whiteside can help you evaluate assessments, compare buildings, and plan your budget with confidence.

Ready to run the numbers and find the right fit? Connect with India Whiteside for a calm, data-informed condo consultation.

FAQs

What is a condo assessment in Streeterville?

• It is the monthly payment owners make to fund shared operating costs, master insurance, amenities, and reserve contributions for future repairs in their building.

How are special assessments approved for Chicago condos?

• Approval rules are set by each building’s declaration and bylaws under the Illinois Condominium Property Act, so some assessments require only a board vote while others need owner approval.

What Streeterville building features raise assessments the most?

• Full-service staffing, extensive amenities, elevators, and structured parking drive higher operating costs, while lakefront weather exposure can add long-term capital needs.

How can I tell if a special assessment is likely soon?

• Compare the reserve balance to near-term projects in the reserve study, check meeting minutes for planned work, and look for patterns of deficits or past special assessments.

Are utilities included in Streeterville assessments?

• It depends on the building. Some include bulk services like heat or internet, while others bill most utilities to unit owners. Confirm what is included for each property.

Are condo assessments tax deductible?

• Regular assessments are generally not deductible for personal-use owners. For rental properties, HOA fees may be deductible as an expense. Consult a tax advisor for specifics.