HOA Budget & Governance Alert
Surplus Illusions, Hidden Costs, and Governance Failures
The newly approved FY 2025–26 budget at 175 East Delaware Place Condominium Association exposes severe lapses in financial management and transparency. Built on a supposed $225,100 “projected surplus,” the budget ignored actual overruns, understated liabilities, and omitted known obligations — including $803,520 for elevator modernization, potential $542K in tax exposure, and credit losses required under FASB rules.
Owners were handed a distorted financial picture, one that masks structural subsidies (like the Hancock Market), hides litigation losses, and relies on outdated financial data even when more current numbers were available. These practices defy both Illinois law and the Association’s own Declaration, leaving residents exposed to deficits, surprise assessments, and erosion of property value.
