Differences Between Condominium and Homeowner Associations

 Posted on September 09,2024 in Condominium & Homeowner Association Law

In Illinois, property ownership can take various forms, two of the most common being condominiums and single-family homes. With these two types of property come different governing bodies: condominium associations and homeowner associations (HOAs). Understanding the distinctions between them is crucial for property owners, prospective buyers, and those interested in community living. For any questions or concerns regarding these two associations, contact a qualified attorney.

How Condominium and Homeowner Associations Differ

Structure and Governance

Condominium associations govern condominiums, where multiple units are owned individually, but common areas (like lobbies, gardens, and stairwells) are jointly owned. The Illinois Condominium Property Act governs these associations, outlining how they operate, from the election of board members to the management of common expenses.

On the other hand, homeowners’ associations oversee single-family home communities. While they, too, manage common areas and enforce community rules, HOAs generally fall under a different jurisdiction, governed by the Illinois Common Interest Community Association Act.  This distinction often leads to different rules and regulations regarding property use and maintenance.

Fees and Assessments

Both types of associations require fees, but the structure can differ. Condominium owners often pay monthly assessments that cover maintenance of shared facilities and other communal costs, such as insurance and landscaping. These fees are typically calculated based on the square footage of individual units.

In contrast, homeowners in an HOA usually pay annual dues, which cover the maintenance of communal amenities like parks, pools, or clubhouses. These dues might also include utilities for shared spaces, but they are typically less frequent and can vary more widely based on the specific services an HOA offers.

Rules and Regulations

Both types of associations enforce rules to maintain community standards, but there are notable differences. Condominium associations often have stricter regulations about modifications to individual units because changes can affect the integrity of shared structures. For example, a condo owner may need approval for renovations, no matter how minor.

While they enforce rules, HOAs tend to focus more on the aesthetics and upkeep of the neighborhood. This might include restrictions on landscaping, paint colors, or fencing. Such regulations aim to maintain property values and ensure a cohesive appearance within a community.

Contact Our Cook County, IL Condominium and HOA Lawyers

Ultimately, condominium and homeowners associations serve similar purposes in managing community living in Illinois, but they operate under different legal frameworks and guidelines. Understanding these differences is essential for anyone considering buying into such properties, as it can significantly impact their ownership experience and community engagement. Contact the Arlington Heights, IL condominium and HOA attorneys with Dickler, Kahn, Slowikowski & Zavell, Ltd. for legal assistance. Call 847-593-5595 for a private consultation.