⚠️ 175 East Delaware Place HOA’s $250 Late Fee Trap
A rule change with no board vote has turned modest unpaid balances into compounding debt, and Illinois law may not support the HOA’s position.
Why Late Fees Matter
Late fees are supposed to encourage timely payments and cover administrative costs, helping associations remain financially stable.
When they exceed reasonable limits or conflict with governing documents and state law, they:
✅ Disrupt residents’ financial stability
✅ Undermine community trust
✅ Open the door to legal disputes
That is exactly what is happening at 175 East Delaware Place.
The Policy Change Nobody Approved
Until April 17, 2023, the association charged a $250 late fee only when an owner’s unpaid balance was greater than the normal monthly assessment. Small shortfalls or minor delays did not trigger a penalty.
On April 17, Board President Scott A. Timmerman changed the threshold so that a $250 late fee is now applied whenever a balance reaches $250, regardless of the unit’s monthly assessment. This means a $249.12 balance can suddenly result in a $250 penalty, with new late fees added month after month.
Key concerns include:
- No official board vote before the rule took effect
- As little as three days’ owner notice
- Financial pressure escalating rapidly, even for those recovering from temporary hardship
While the association’s auditor is reviewing records, the board and its counsel, David Sugar, bear responsibility for ensuring lawful and transparent policies.
Why $250 Late Fees Are a Trap
The new system can double an owner’s balance in thirty days. If $250 becomes $500 after one fee, a second month adds another $250, creating an effective interest rate close to 100 percent per month. Governing documents limit interest to eight percent annually, and Illinois law prohibits repeated monthly late fees on the same assessment.
The Bottom Line
The 175 East Delaware Place HOA’s $250 recurring late fee policy:
⚠️ Is inconsistent with Illinois law
⚠️ Violates the declaration
⚠️ Damages trust and financial stability of the community
Owners deserve governance that is lawful, transparent, and accountable.
