Barnett Law Firm, Ltd. Late Fees [Board Duties]

The board is empowered by law to assess late charges against unit owners who fail to make payment when due of common expenses or other lawful charges. No hearing is required. However, unit owners must have notice of the late charge policy and the policy must be followed uniformly.

It is recommended that late charge policies be incorporated into the association's rules and regulations and that they specify whether a late charge is to be imposed simply for a single late or missed payment, or whether the late charge is to be imposed whenever there is a delinquent balance.

A late charge should be high enough to encourage timely payment, but not so high as to create a hardship. The typical late charge for Illinois associations is $25 with some as low as $5 per month and others as high as $50 per month. It is a good idea for the board to waive late fees in some cases where extenuating circumstances or mail delays make imposition of a late charge inequitable.