You find a River North condo you love, then see the monthly assessment and wonder how it changes your budget. You are not alone. In a neighborhood known for full-service towers and polished mid-rises, assessments can vary widely and affect both affordability and financing. This guide shows you what assessments cover, how to spot red flags, and how to compare buildings with confidence. Let’s dive in.
What assessments are and why they matter
Monthly condo assessments are your share of the building’s operating costs plus a contribution to reserves. They cover daily operations, staffing, utilities the association pays, master insurance, routine maintenance, amenities, and long-term savings for repairs. In River North, assessment differences are driven by two big factors: amenity level and building age. Lenders also review assessments and the association’s financial health, so these numbers and documents impact both your budget and your ability to finance.
For the legal framework that governs Illinois condos, review the Illinois Condominium Property Act, which sets disclosure and governance rules for associations and special assessments. You can read the statute at the Illinois General Assembly site under 765 ILCS 605.
What assessments cover in River North
Most River North high-rises include a mix of services. Always confirm exactly what your building covers.
Common inclusions:
- Building staff such as doorman, concierge, porters, and maintenance.
- Management and administrative costs, including accounting and legal.
- Utilities for common areas and sometimes for units, like water and sewer. Older buildings often include heat and hot water.
- Routine upkeep for elevators, lobbies, corridors, exterior, and mechanicals.
- Master insurance for common elements. You still carry an HO-6 policy, so confirm what the master policy covers.
- Landscaping, snow removal, trash, pest control, and security.
- Amenity operations such as pool, fitness center, and valet services.
- Monthly contributions to the reserve fund.
Frequent exclusions:
- Unit electricity and cable or internet unless noted.
- Parking, often billed separately in River North.
- Storage lockers or assigned services that may carry extra fees.
- Special assessments for capital projects not covered by reserves.
Tip: Utility inclusions vary by building. Ask for the list of covered utilities in writing.
Reserves, studies, and special assessments
The reserve fund is the association’s savings account for major repairs and replacements. A professional reserve study estimates the useful life of big components, the cost to replace them, and a funding plan. The Community Associations Institute outlines best practices for reserve studies and funding so boards can plan responsibly.
There is no single “right” reserve balance for every building. Age, systems, and amenity load change the target. Underfunded reserves are a common reason for special assessments. Special assessments are one-time charges when a capital project is needed and reserves or the annual budget do not cover it. In Illinois, board authority and owner voting requirements come from the declaration, bylaws, and the Illinois Condominium Property Act. You can review the statute text under 765 ILCS 605 on the state’s site for context on board powers and owner rights.
How to evaluate reserve health:
- Request the latest reserve study and the current reserve balance.
- Review 3 years of budgets and financials to see funding trends.
- Ask about planned capital projects and whether they are fully funded.
- Confirm if the board follows a written funding policy.
Cost drivers in River North buildings
Amenity load:
- Pools, saunas, large fitness centers, full-time concierge or doorman, valet parking staff, and landscaped plazas increase staffing and maintenance costs.
- High-use amenities like indoor pools and spa equipment carry higher long-term repair costs.
Building age:
- Older conversions and early towers may face facade, window-wall, elevator, boiler, or plumbing stack projects. These are significant costs if reserves are low.
- Newer towers offer modern systems but often have higher amenity operating expenses. Reserves still matter as the building ages.
Chicago climate:
- Winters are tough on exterior systems. Façade work and window-wall repairs in tall River North towers can be expensive and require careful capital planning.
Match the building to your lifestyle. If you value a 24-hour doorman, valet, and a full gym, you will pay for it through higher assessments. If you rarely use a pool, a building without one may lower your monthly cost.
Financing and lender review
Lenders look closely at the association’s financial health and assessment structure. Mortgage underwriters evaluate the budget, reserve funding, owner-occupancy, and whether there is pending litigation. If you need an FHA-backed loan, confirm building eligibility at HUD’s condominium program resources, which outline approval and review standards. Conventional lenders follow investor rules from Fannie Mae and Freddie Mac on condo project eligibility, reserve funding, and how to treat special assessments.
Special assessments and underwriting:
- Lenders usually require disclosure of current or planned special assessments.
- A large special assessment may be counted as additional monthly debt or must be paid or escrowed before closing, subject to lender rules.
Appraisal and affordability:
- Appraisers consider HOA fees in marketability and affordability. High fees reduce the mortgage payment you qualify for because they add to your housing expense ratio.
- Include assessments, property taxes, and HO-6 insurance when you test monthly affordability.
Documents to request before you buy
Ask the seller, association, or management for these items. Your agent and attorney can help gather and review them.
- Current year budget and the prior 2 to 3 years of budgets and financial statements.
- Most recent reserve study and current reserve balance.
- Treasurer reports, balance sheet, and income statement.
- Current unit ledger to confirm the seller is paid up.
- Board meeting minutes for the past 12 to 36 months.
- Notices, resolutions, or votes on any pending or approved special assessments.
- Master insurance declarations and an outline of owner insurance responsibilities.
- Management contract and major vendor agreements, such as security or pool service.
- Declaration, bylaws, and rules for voting thresholds, pet policies, rental caps, and procedures.
- Litigation or claims history involving the association.
- Parking and storage fee schedules.
How to compare River North buildings
Use a simple framework to compare your shortlist:
- Assessment per square foot. Calculate the monthly fee divided by unit square footage.
- What is included. Utilities, services, and amenities influence the true monthly value.
- Reserve strength. Compare the reserve balance to the reserve study’s recommendations and ask about funding policy.
- Capital roadmap. Identify upcoming projects and how they will be paid.
- Parking and storage. Add separate monthly or purchase costs to your analysis.
- Financing fit. If you need FHA or VA, confirm project approval. For conventional, ask your lender how they treat special assessments.
- Market context. Review neighborhood pricing and supply trends using Chicago Association of REALTORS market data to see how fees and amenities align with broader buyer expectations.
Hypothetical monthly cost scenarios
These examples are for illustration only. They show how assessments change your monthly budget even when the mortgage and taxes are the same.
- Example A. Smaller one-bedroom in a modest-amenity building: 800 sq ft at $0.80 per sq ft. Assessment is $640 per month. If mortgage principal and interest is $1,200, property taxes are about $350 per month, and HO-6 is $40 per month, your total housing cost is roughly $2,230 per month.
- Example B. Luxury amenity tower one-bedroom: 800 sq ft at $1.50 per sq ft. Assessment is $1,200 per month. With the same mortgage and taxes, your total housing cost is roughly $2,790 per month.
These differences add up quickly. They also reduce how much you can borrow because the assessment counts toward your monthly housing expense.
Red flags to watch
- Low or declining reserves compared to the reserve study recommendations.
- Frequent special assessments in the past 3 to 5 years.
- Large planned projects that are not funded, such as facade or elevator modernization.
- Operating deficits or repeated budget shortfalls.
- Significant litigation or insurance claims that could result in new assessments.
- High delinquency in owner assessments or persistent collection issues.
- Rental ratio or owner-occupancy issues that complicate financing.
Quick buyer checklist
Use this at offer and during attorney review.
Obtain and review:
- Current budget plus 2 to 3 years of financials.
- Reserve study and current reserve balance.
- Board minutes for the past 12 to 36 months.
- Any documentation of pending or approved special assessments.
- Master insurance declarations and owner coverage requirements.
- Evidence of litigation or claims.
- Parking and storage fee details.
- FHA, VA, or other agency approval status if needed.
Calculate and compare:
- Assessment per square foot and what it includes.
- Total monthly housing cost: mortgage plus property taxes, HO-6, and assessment.
- Any one-time exposure from known special assessments.
Ask the right questions:
- What capital projects were completed recently and how were they funded?
- Is there a board-approved long-term capital plan?
- Are there deferred maintenance items or vendor disputes?
Taxes and timing reminders
Property taxes in Cook County are billed in installments and can shift your monthly cost depending on timing and reassessments. Review the Cook County Treasurer’s property tax overview to understand how bills are calculated and when payments are typically due. Build your budget with these cycles in mind.
Your next step
Before you make an offer, compare the last three years of budgets, reserve studies, and any special assessment history for each River North building on your list. Ask your lender how they will treat any current or planned special assessments. If you need FHA or other specialized financing, confirm project eligibility early so you avoid surprises later.
If you want local guidance from agents who read the budgets, call the management office, and help you weigh amenities against long-term costs, reach out to Second City Agents. We will walk you through the documents, coordinate with your lender, and help you choose the right building for your lifestyle and budget.
FAQs
How do River North condo assessments affect my budget?
- Assessments are counted in your monthly housing expense, which reduces your borrowing capacity and raises your total cost alongside mortgage, property taxes, and HO-6 insurance.
What if a special assessment is announced while I am under contract?
- Ask for the board’s notice, payment schedule, and whether the seller will pay at closing; your lender may require payment, escrow, or re-underwriting depending on size and timing.
Are utilities usually included in River North condo fees?
- Many buildings include water and common-area utilities and some older towers include heat or hot water, but inclusions vary building by building, so always confirm in writing.
How do lenders treat special assessments for condos?
- Underwriters require disclosure of current or anticipated special assessments and may treat them as additional monthly debt or require full or escrowed payment before closing per investor rules.
What documents should I review before buying a condo?
- Request budgets, financials, reserve study and balance, board minutes, special assessment notices, master insurance, declaration and bylaws, vendor contracts, litigation history, and parking or storage fees.
References and helpful resources:
- Illinois Condominium Property Act: review 765 ILCS 605 on the Illinois General Assembly site.
- Reserve study best practices from the Community Associations Institute.
- HUD FHA condominium program resources for project eligibility and review.
- Fannie Mae project standards for condo eligibility.
- Freddie Mac condominium project standards.
- Cook County Treasurer’s property tax overview for billing and timing.
- Chicago Association of REALTORS market data for neighborhood context.
