Recently, I came across a case where a buyer looking for a condo in Glenview had submitted an offer, but the loan approval was delayed at the last minute. The issue was not with the credit score or income verification. It was due to the building's HOA financial statements showing delinquency rates and reserve fund accumulation ratios that did not meet the lender's standards. Ultimately, the loan was approved only after postponing the closing date twice. This was a reminder that, unlike single-family homes, the loan approval for condos is not determined solely by an individual's credit.

According to Fannie Mae and HUD standards, when reviewing condo projects, lenders consider the HOA's delinquency rate, reserve fund ratio, any ongoing lawsuits, and the percentage of commercial space. If the delinquency rate exceeds a certain level or if the reserve accumulation is too low, the entire building may be excluded from approval. Failing to meet these criteria can classify the condo as a non-warrantable condo, making the loan process more complicated, or even if a loan is possible, it often comes with higher interest rates and down payment requirements. In markets like Glenview, where older mid-rise buildings and relatively new condos in The Glen area are traded together, it's important to pay attention to the financial condition variations between buildings.

Looking at actual listings, the monthly HOA fees in the community near The Glen range widely from $25 to $872, with buildings like Orchard Glen averaging between $519 and $922 (based on Homes by Marco listings). Across Illinois, the median condo management fee is reported to be $237 per month, with an average of $364 (2024 U.S. Community Survey, compiled by comparehoamanagers.com). Glenview, being a high-demand area for school districts and amenities, has many buildings with management fees higher than the overall average.

Typically, HOA fees cover exterior maintenance, master insurance, common area management, landscaping, garbage collection, and sometimes utilities like water or heating, along with reserve fund contributions. Here, the reserve fund is key. Illinois' Common Interest Community Association Act and Condominium Property Act require the board to specify reserve allocations in the budget, but they do not set a minimum accumulation ratio. A bill (HB 2563) is under discussion to mandate reserve studies every five years, but it has not yet passed. This means that how conservatively a building accumulates reserves can significantly affect its financial strength.

Ultimately, buildings with thin reserve funds are at a higher risk of sudden special assessments when major repairs like roof or plumbing replacements or elevator upgrades are needed. In fact, older buildings may appear to have lower management fees, but it is not uncommon to receive notices of significant one-time assessments a few years down the line. If you are a family looking for a condo in Glenview based on school districts, consider checking the following. Especially, reserve studies contain capital expenditure plans for the next 20 to 30 years, and the financial stability difference between buildings with and without studies can be quite significant.

• Recent 3 years of HOA financial statements and budgets
• Whether a reserve study has been conducted and the current accumulation status
• Delinquency rates and history of special assessments
• Rental and pet restriction clauses (management regulations)

If you are moving to Glenview from another state, it is advisable to also factor in the unique property tax burden in Illinois along with management fees. The property tax rates in the Cook County area tend to be relatively high, so if you budget based on your previous state, the burden may be greater than expected. While school districts can be referenced through GreatSchools or Niche ratings, boundaries often change, so be sure to verify the assigned school for the specific address before purchasing.

This article is not investment or legal advice, and before finalizing any contracts, it is recommended to review the HOA's financial status with a real estate professional, loan officer, and, if necessary, a lawyer.