CondoLifestyles

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APRIL 2018 | VOLUME 22 | NUMBER 1

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THE SOURCE FOR INFORMATION ON COMMUNITY ASSOCIATIONS, CONDOS, TOWNHOMES, CO-OPS & HOAS

COVER STORY

There Oughta Be a Law–Or Not! F E AT U R E S . . .

Chicago Leads Fight to Protect Condominium Unit Owners’ Privacy State of Illinois Legislature Proposals are in the Pipeline

Lawmakers, the Legislative Process and Why You Should Be Involved

More Packages, More Problems Clean Building Facades and Survey for Damage

The Top 10 Board Member Blunders The New Way of Community Living Community Association Contracts:

Planning For A Successful Transaction Navigating Mechanics Liens



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table of contents COVER STORY

03

There Oughta Be a Law – Or Not! by Pamela Dittmer McKuen

L E G A L U P D AT E

09 Chicago Leads Fight to Protect Condominium Unit Owners’ Privacy by Howard Dakoff S P E C I A L F E AT U R E

10 Lawmakers, the Legislative Process and Why You Should Be Involved by Pamela Dittmer McKuen EVENT HIGHLIGHTS

14 MCD Pool Party featuring Condolympics 16 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo 19 Clean Building Facades and Survey for Damage 20 From the Editor 21 Directory Advertisements BOARD BASICS

28 More Packages, More Problems by Amy Peterselli GUEST EDITORIAL

30 Top 10 Board Member Blunders by Salvatore Sciacca M A N A G E M E N T TA L K S

32 The New Way of Community Living by Donna Ciota L E G A L U P D AT E

33 Community Association Contracts: Planning For A Successful Transaction by Scott A Rosenlund L E G A L U P D AT E

36 Navigating Mechanics Liens by Nicholas R. Lange M O N E Y M AT T E R S

40 Property Tax Appeal Season in Full Bloom by Mark Volpe

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COVER STORY

by Pamela Dittmer McKuen

THERE OUGHTA BE A LAW-OR NOT! The community association industry chimes in about ICPA Section 19 and more More and more laws impacting community associations are being introduced to the Illinois General Assembly. During last year’s legislative session, about 40 such bills were proposed, and this year, 35 were proposed by the end of February alone.

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awmakers, for the most part, have well-meaning intentions to perpetuate professional leadership, financial stability, homeowner protections, board transparency and fairness within community association. Often they succeed. But sometimes a new law ignites unforeseen response. That’s the story with recent amendments to Section 19 of the Illinois Condominium Property Act. Of last year’s 40 or so pieces of introduced legislation, about a dozen were grouped for efficiency’s sake into a single bill, HB-0189.

This omnibus bill quietly passed both chambers of the legislature. It was signed into law as Public Act 100-0292, effective January 1, 2018. The law makes significant changes to Section 19 of the Illinois Condominium Property Act (ICPA). Section 19 of the ICPA deals with books and records. The amendments include a new requirement that associations maintain owner email addresses and telephone numbers in addition to the previously mandated names, addresses and percentages of ownership. Associations also have less time

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in which to comply with document requests-10 business days instead of 30 days. Owners no longer have to state a “proper purpose” to inspect, examine and make copies of association documents. However, they must agree not to use them for commercial purposes. Associations may fine anyone who does use this information for commercial purposes. Many homeowners are objecting to having their personal contact information freely passed around to neighbors and strangers. Many managers are unhappy about both collecting such information over the objections of their clients and the shortened length of time they have to turn it over when requested. But not everyone is in disagreement with the changes. “Condo Lifestyles” asked a sampling of

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association professionals and volunteers to share their thoughts on the Section 19 amendments. Then we asked them to tell us about any other laws they would like to see either passed or rescinded. Here’s what they had to say: “It is our opinion at Levenfeld Pearlstein, LLC, which is shared among many associations, managers and other industry experts, that the legislation is overly broad and does little to nothing to protect the privacy of individual Illinois condominium unit owners,” said association attorney Howard Dakoff at Levenfeld Pearlstein, LLC, in Chicago.

STRENUOUS OBJECTIONS TO SECTION 19 “About emails and phone numbers--oh, yes, that’s been a fun one here,” said Timothy Patricio, an onsite Draper & Kramer property manager at Park Tower Condominium Association in Chicago. “Despite the divisions I’ve seen between some of the owners here over 10 years, NEVER has there been an issue where I’ve seen such near 100 percent unanimous agreement. Even during the fire sprinkler con-

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troversy, we still had owners who were actually of the opinion sprinklers were a good thing despite the cost. On this, it’s been a crescendo: Phone numbers and emails are offlimits. Some owners have said they will just do away with email altogether. Everyone is in agreement that lists of that information should not be out there floating around.” Patricio has accumulated about 850 email addresses to which he sends a weekly newsletter. He has assured subscribers their information will be private and safe-guarded. Releasing it will make him feel unprofessional and dishonest, he said. “At worst, I would be crossing a line in the sand, and I would feel like I am very personally violating the trust of my owners,” he said. “Regardless of the fact we can point to the politics, they won’t care.” Across Associa Chicagoland associations, the requirement has caused an uproar, reported vice president Derek Wilkinson. “In speaking with several board members, many already spend considerable volunteer time working with management to

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oversee operational and financial aspects of the community,” he said. “They regularly are stopped in the hallway or lobby by owners (their neighbors) to speak about problems they have.” The legislature has opened a new avenue for these volunteer boards to be called or emailed anytime of the day or night, he said. “Also, many owners are very protective of their personal information,” he said. “They do not want every person in their association to have easy access. There is no ability to ‘opt-out’ of this information sharing, so many owners and board members are feeling powerless.” Wilkinson’s advice to board members: If owners barrage you with unwanted emails and telephone calls, there is no requirement to respond. You have the ability to forward to the manager to address or ignore as needed. Wilkinson points out another potential problem: In Section 19(a)(9), the words “of account” were removed from the beginning of the sentence, and the words “and accounts” were added to the end. “This change may seem subtle at first

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COVER STORY

glance; however, it drastically expands the documents open for examination,� he said. “Previously, this was interpreted as owners could request financial books and records. We recently had an owner request a listing of all units rented in the building. Since management or association can no longer deny this for lack of a proper purpose, the manager was required to provide the information after confirmation that it was not being used for ‘commercial purposes.’ We can only hope the information was requested for innocent reasons.� Also expressing disagreement with Section 19 amendments is Leslie Dyenson, property manager at Draper and Kramer client The Residences of Sherman Plaza in Evanston. “The most egregious change to Section 19 is the requirement for owners to provide email addresses and phone numbers,� she said. “This seems intrusive and potentially dangerous in these times of hacking, identity theft and bullying, especially in light of the fact that the requesting owner no longer needs to assert a ‘proper purpose’ for this information.�

The other bothersome change she notes is the increased probability that associations will be forced to pay legal fees if requested documents are not produced in a timely manner--and the required time frame has been significantly cut. “These changes made additional work for the management office in obtaining and maintaining information and explaining these ICPA changes to the owners,� she said.

UNIT OWNERS ALSO EXPRESS DISSENT As executive director at the Diversey Harbor Lakeview Association, Gene Fisher engages with many prominent condominium leaders along the city’s north shore. Most have expressed concerns that the publication of personal contact information subjects them to undue incivility. It also discourages others from volunteering for board service. “There have already been instances when malcontents who have accessed the contact information of an association's directors have resorted to harassing them with noxious and interminable phone calls and/or emails,� he said.

“It certainly would not be helpful if the new law fuels increases in such improper behavior.� At Sherman Plaza, board member and former board president Hank Goldman believes the law requiring email and other contact information is overreaching and intrusive. “In today’s digital age, there are already too many ways for outsiders to gain access to personal information through a variety of sources,� he said. “When the vast majority of agencies are telling everyone to guard against this type of intrusion, the State of Illinois is going in the opposite direction. While it is stated that this information is only for internal condo use, there is no way to insure that the information provided to property management does not get sent or disseminated to third parties. Property management already has all the pertinent info on its residents and if owners want to share their info with fellow owners, they certainly can. There are no reasons why providing this info has any benefit, and it should be repealed immediately.�

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A MODERATE VIEW

COUNTERPOINT: GET OVER IT

At ACM Community Management in Downers Grove, vice president Thomas Skweres said he has not heard much rumbling from homeowners. “I see the real question as, do unit owners have an automatic right to privacy when they live in a community association and have agreed to live by the rules and regulations and lifestyle of their community and have a vested ownership in its common elements?” he said. “There may need to be a court case to better define this.” However, he believes percentage of ownership is not something everyone needs to know. Skweres also believes the “10 business days” provision for providing association documents is unrealistic. Some documents might have to be retrieved from storage, or outside individuals who have to be contacted for information might not be available. “I would agree with a 10-day notice to acknowledge receipt of the request for information, but not the actual producing of that information,” he said.

Section 19 changes are largely favored by attorney Marshall Dickler of Dickler, Kahn, Slowikowski & Zavell Ltd. in Arlington Heights. He would have preferred 15 days to comply with document requests, but overall he finds the language in this section to be clearer than it was. The part about disseminating telephone numbers and email addresses? Get over it, he said. There’s no privacy in condominium ownership. “When you live in a condominium, you are tenants in common with all the other owners,” he said. “You have a right to know everything about your neighbors because they are co-owners. Just like in corporate law, shareholders have a right to know everything about other shareholders. But there are limitations. You can impose reasonable rules to be sure the information is being used in accordance with their co-ownership rights and duties.” Telephone numbers and email addresses are not privileged or protected. Anyone who

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really wants to can find anyone else’s contact information without trying too hard. It’s not like credit card numbers or social security numbers. “As time has progressed, there has been a need to be able to communicate with coowners in a way that is current state-of-theart,” Dickler said. “Before, it was a letter, so we needed their addresses. Now, nobody communicates by letter. There isn’t enough time, so we’re back to 10 days (to comply with document requests). So they brought it up to the 20th Century with telephone numbers and email addresses.” People who insist on complete privacy shouldn’t live in condominiums, he added. Dickler’s advice to associations and managers: If a unit owner asks for contact information of other owners, comply within 10 days. That’s the law.

A LEGISLATION WISH LIST Industry professionals are no less vocal about other legislation they would like either enacted or rescinded. continued on page 8

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S P E C I A L F E AT U R E

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from page 6 “As far as additional areas to be looked at for future legislation, I think that if a board member becomes delinquent in their assessments--the amount of time to be determined, they should be removed from any investments or operating funds that they are signatories on until their accounts are current,” Skweres said. “This would be especially important in selfmanaged associations. It only takes temptation away.” He’d also like to see greater communication to owners when boards enter into contracts with themselves or their family members. Dyenson said the Ombudsman Act needs work to be efficient and functional. She said she has no problem with manager licensing, although unless and until continuing education is mandated, licensing seems meaningless. “The downside of licensing is that it gives an angry individual a forum to go after a manager,” she said. Dickler agrees with Dyenson on that point. He’d like to see provisions made for the expungement of complaints lodged against

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managers, especially after a period of time or when the complaints have proven unfounded. “It’s a terrible thing to have those complaints come at you,” he said. “Most are so disjointed, disorganized, lacking in any objective statements you can address from a logical point of view. It’s very hard to deal with them. There is some very bad language in the statute that is very vague and imposes an almost interminate standard on our managers.”

WATCH OUT FOR SB-2485 For the current legislative session, Dickler is adamant that the pending SB-2485 is potentially far more damaging and invasive than any provision in the amended Section 19. Sponsored by Sen. Laura Murphy (28th District), the proposed bill would require associations to give delinquent owners a 30day written notice and an opportunity for a hearing before associations can initiate collection proceedings. Attorney fees can be granted to defendants who prevail in court. “It’s a double-whammy,” he said. “This is a precondition on filing suit. If you don’t meet all the criteria, we’re going to lose our forcible entry

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and detainer right and have to pay attorney fees. You want to put a chill on collecting assessments? This is it. Half of all associations in Illinois are unmanaged. How are they going to figure out how to do this correctly? If anybody defends themselves by saying, ‘I didn’t get the letter’ or ‘I moved’ or ‘I didn’t understand,’ and if the judge agrees, oh, boy.” The industry should be putting their efforts toward preventing the passage of SB2485, not rescinding the phone numbers and email addresses or 10-day provisions of Section 19, Dickler said. “Stop fighting Section 19,” he said. “Your anger is going to cause legislators to think boards of directors are unreasonable, unfair, out of control and doing things behind the backs of everybody. All they are going to do is think we are the bad guys, and some already think we are bullies. You are only giving them impetus to dig in on a lot of other stuff you really don’t want them to do. You don’t want them to over-regulate us. In the long run, SB2485 is going to be devastating.” Y

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L E G A L U P D AT E

by Howard S. Dakoff, Esq., Levenfeld Pearlstein, LLC

Chicago Leads Fight to Protect Condominium Unit Owners’ Privacy State of Illinois Legislature Proposals are in the Pipeline

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2017 amendment to Section 19(a)(7) of the Illinois Condominium Property Act ("Act"), that took effect January 1, 2018, mandated that Illinois condominium associations provide the personal phone numbers and e-mail addresses of all unit owners in a condominium association upon written request by a unit owner. It is our opinion at Levenfeld Pearlstein, which is shared among many associations, managers and other industry experts, that the legislation is overly broad and does little - to nothing - to protect the privacy of individual Illinois condominium unit owners, and is ripe for an amendment in the near term. To that end, two Chicago Aldermen, Brian Hopkins (2nd Ward) and Brendan Reilly (42nd Ward) took the proverbial ‘first step’ to address the issue on behalf of their constituents in the City of Chicago by introducing a Chicago ordinance on January 17, 2018 to nullify the effect of a portion of the amendment to Section 19 of the Act. The Chicago privacy ordinance expressly states that no unit owner (except unit owners serving on the board of directors) shall have the right to examine or make copies of a unit owner’s personal information including names, addresses, email addresses, telephone numbers and weighted vote. On March 28, 2018, the Chicago City Council adopted the proposed ordinance, as amended. This means that for City of Chicago condominiums, a condominium association no longer has to provide a unit owner’s personal information

including names, addresses, email addresses, telephone numbers and weighted vote, and a unit owner is not entitled to such information, unless 2/3 of the total unit ownership vote to opt-out of the Chicago condominium privacy ordinance, in which case the pertinent provisions of the revised Section 19 shall apply. The Chicago ordinance is based on the legal doctrine of Home Rule authority to address the issue locally in lieu of an amendment to the Act on a state-wide level. Chicago condominium associations should comply with the new ordinance effective March 28th, however, due to the inconsistency between Section 19 and the Chicago privacy ordinance, the possibility of a legal challenge to the Chicago ordinance exists until the State legislature takes action. In what appears to be a response to the introduced City of Chicago condominium privacy ordinance described herein, on January 24, 2018, State Senator Kwame Raoul, introduced an amendment to Senate Bill 572 to specifically strike the Section 19 requirement to provide email addresses and telephone numbers to unit owners for all condominiums in Illinois. However, Illinois House Rep. Andre Thapedi introduced House Bill 4910 on February 14, 2018 to amend the Act to limit local governments from exercise Home Rule authority to nullify provisions mandated in the Act including an association's collection and sharing of records, which apparently is an attempt to invalidate the City of Chicago’s attempt to nullify the

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objectionable parts of the new Section 19. Simultaneously filed on February 14, 2018, Illinois House Rep. Kelly Cassidy, introduced House Bill 5126 to amend the Act to provide that condominium associations shall provide each member with the opportunity to specify whether the association may disclose the name, address, email address, or telephone numbers of the member to other association members and allows a unit owner to opt-out of having their information released. And lastly, also introduced on February 14, 2018, Illinois House Rep. Sara Feigenholtz introduced House Bill 4816 to amend the Act to provide that the board of directors of a condominium association, or any person who obtains information under the Act, shall not sell or distribute the names, addresses, email addresses, telephone numbers, and weighted vote of members entitled to vote to any commercial or other entity not related to the condominium association. Therefore, as one can see, there are several different State of Illinois legislative proposals introduced to address the public outcry over the recent amendments to Section 19(a)(7) of the Act. For now, the privacy of email addresses and telephone numbers of City of Chicago condominium unit owners has been protected. We will see what the State legislature enacts to strengthen - or weaken – privacy protections related to Section 19 in the months ahead. Y

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by Pamela Dittmer McKuen

Lawmakers, the Legislative Process and Why You Should Be Involved A panel of legislators and activists at the 36th Annual Illinois Condo-HOA Conference & Expo gave attendees an inside look at how laws impacting community associations are made. They discussed recent and pending legislation and how the legislative process works. They also stressed how association owners can impact the passage of meaningful laws--and why they should do so.

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peaking on the panel of the “CAI Legal, Legislative & Case law Update” were Pat Costello, an attorney at Keay & Costello, P.C., in Wheaton and co-chair of the CAI Illinois Legislative Action Committee; and Jeffrey Dixon, executive vice president at Dixon and Company, and CAI-Illinois lobbyist. Three state senators also were on the panel: Pamela Althoff (32nd District), Michael Hastings (19th District) and John Mulroe (10th District). Dixon started off with an accounting of legislation proposed during the current session: As of late

February, 9,400 bills had been proposed. While that number may seem high, it is smaller than at the same time in previous years, mainly due to the primaries. After the election, Dixon expects the pace to pick up.

Important To Be Involved Of the 9,400 proposed bills, about 35 impact condominiums and/or homeowner associations in some way. “Something I said last year, and I’ll say it again:

It is important for you to be involved in this democratic process,” Costello said. “I know you are all very busy people, but we really appreciate getting involvement from you. When legislators hear from you or from their constituents, they are going to listen. If you call or write a letter or send an email, you can make a difference. Tell them about a bill you think is important or believe in or disagree with. You’ll get their attention. The other side is always talking to legislators, so you need to be talking to them, too. Believe me, this session we have some bills we may have to go to fight on unless we can reach some agreements. Keep in mind, we are all in this together.” Costello then asked the senators to introduce themselves and discuss some of the experiences they have had with community associations and residents. (An edited transcription of their remarks follows.)

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S P E C I A L F E AT U R E

Senator Hastings: I hear different complaints not only from my own homeowner association but around my district. They ask whether they can put something in the bylaws, whether they are allowed to put a lien on a property. Some are concerned about home values. A lot of infrastructure is declining, and they don’t have the money to pay for it. Some things we can change through legislation. Some I just don’t have control over, and that hurts. Your calls, your emails and you reaching out personally and telling me your story means all the difference. But not form-emails. I get 100 of those a day. I read one and toss the rest away. If you send a personal letter, you’ll always get a response. I don’t care if you live in my district or if you live outside my district. A state senator holds the title for the state, not just the district. Those of you who think we care only about where we live, that’s only during elections. Senator Mulroe: Get to know your legislators. Most of us are really good people. Like any other walk of life, there are extremes on both sides. Good and bad, most of us are not experts. Probably 90 percent of what we do is citizen legislature. We all bring our expertise in what we do and, hopefully, we do our best. I can tell you there’s a lot of good people in Springfield. My little

joke is when people find out you’re a state senator or state representative, they call you a politician. I used to be known as a good guy until I got elected. Now I’m one of THEM. One important issue that has yet to be resolved is who pays back assessments when a property has been foreclosed. You can’t get the prior owners to pay, so do you put it on the bank or the new owner? It’s been an interesting topic over the last few years. Senator Althoff: My background is special education, which is why I thought I’d make a good politician, because you have to talk slowly and repeat yourself often. From my experiences as the mayor of a small community and president of my condominium association, I believe, in most instances, you can resolve issues by inviting people in and explaining a situation before you call the attorney. I believe in communication and conversation. People don’t know because they don’t know what they don’t know. You have to explain why certain rules are in existence, and why you can’t do what you think you can do. Ninety percent of what we do in the legislature is sitting down with people, identifying a problem and coming up with a solution. Sometimes it does take a law, but

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often it does not. That’s the best situation in my world. I don’t think you have to legislate everything. Sometimes common sense prevails.

How Did Section 19 Law Happen? Last year, about 40 introduced bills were directed toward community associations and about a dozen or so were grouped into a single omnibus bill. HB-0189, as it started out, passed with little fanfare, and became Public Act 100-0292 and effective January 1, 2018. Some of its provisions, but not all, are acceptable to the association community. The omnibus bill came about, in part, because of widespread negative perceptions about community associations--lack of transparency, abuse of power, un-level playing field, arbitrary charges and fees, to name a few. The bill was an attempt to resolve some of those issues. “It was a negotiation, and this is what we got stuck with,” Costello said. The most controversial part of the omnibus bill is the substantial modification made to Section 19 of the Illinois Condominium Property Act. Section 19 deals with an association’s records and making them available for homeowner review. Among the changes:

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Homeowners previously could request and copy association records by stating a “proper purpose.� The definition of “proper purpose� has long been debated within the industry and sometimes abused by boards to decline the release of documents. The “proper purpose� requirement has been eliminated. Homeowners who submit a written request have the right to examine and copy association records. “Our concern was commercial purpose,� Costello said. “Someone might want to get the names and addresses of 200 owners, so they can start their cleaning business or their landscaping business, so the limitation was put in.� With the new law, boards may require homeowners to certify in writing that the information they receive will not be used for commercial purposes. Anyone making a false certification can be fined. The timeframe for boards to produce records was shortened from 30 days to 10 business days. CAI fought hard for a longer length of time to no avail. The bill’s sponsors were firm on 10 days, but ultimately agreed to 10 business days. “You’d think we were pulling out teeth,� Costello said. Associations are required to maintain a current

"Under the new law, unit owner telephone numbers and email addresses also must be kept on file. This provision has caused the greatest uproar."

listing of owner names, addresses and percentages of ownership among their records, which are open for unit owner review. Under the new law, unit owner telephone numbers and email addresses also must be kept on file. This provision has caused the greatest uproar. The audience groaned and booed. “I’m not trying to protect our friends up here, but everybody voted on the bill,� Dixon said. “There was no opposition. There are so many bills. Legislators trust their colleagues, and everyone voted. We at CAI did not oppose the bill because there were other things we wanted, so we decided to bite our tongues on what we didn’t like.� “I thought it was a good idea just for safety concerns or if you want to get to know your neighbors,� Sen. Mulroe said. “That was my gut reaction.�

Homeowners didn’t object until it was too late, Costello said. “Here’s what I want to remind you, folks. That language was in the bill at the beginning of April. It was voted on in the house, it was voted on in the senate, and the bill was signed by the governor. If anyone is surprised by this coming out in December, the information was out there.�

Now What To Do About Section 19 Law? There’s a good chance the new law will be amended. Several bills have been introduced in the current session to modify the types of owner information associations must maintain. The simplest is an amendment to SB-572, sponsored by Sen. Kwame Raoul (13th District.) It merely strikes the words “email addresses� and “telephone numbers� from records that are subject to a records request. “That’s how the process works,� Mulroe said. “You pass bills, and sometimes there are unintended consequences. Somebody thought it was a good idea. Then we listened, and maybe it wasn’t such a good idea. So we can tweak it by amending the (Illinois Condominium Property) Act.�

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S P E C I A L F E AT U R E

Bills Under Consideration Additional bills introduced during the current session are those that deal with manager licensing, attorney fees, accounting and collection practices, property sales and emotional support animals. One bill, HB-5276 (Rep. Christine Winger, 45th District), favors term limits for common interest community association board members. Costello’s response: “I am confused by that because the phone calls I receive are, ‘We don’t have enough people to serve on the board. Can we get away with one board member on a board of seven where the other six have either stopped coming or just resigned?’ I think most board members would say, ‘Great. I only have to serve three terms. Then let other people do it.’ The problem is, where are those other people? I go to an annual meeting of 600 condominium units, and there are four people there. I ask people to serve on the board, and they can’t get out of the room quickly enough.” “If you don’t like your board members, rally the troops and get them out,” Mulroe said. “It’s similar to being a legislature. If you have a good rank and file legislator from your district, you want to keep the good ones. If you have bad ones, get to the polls.” Sen. Althoff is sponsoring a bill, SB-3394, that will lower the age of a qualified person to become a community association manager from 21 to 18. “What I hear from management companies is we need more managers,” Costello said. “I don’t know why expanding the age for entry would be something we’d oppose.” “I know 16-year-olds who are better drivers than 45-year-olds,” Althoff said. “Age shouldn’t be the only criteria, but it shouldn’t be a barrier.” Recurring bills, which have so far been defeated, will require associations to pay a unit owner’s attorney fees. These bills hurt the homeowners and raise assessments, Costello said. “These are the people who are paying their bills and complying with the rules and regulations, and now they have to pay the bills of the person who decides to fight the association,” he said.

Sign up for CAI’s and other Industry group’s legislative email blasts. Read them thoroughly. Associations and management companies should form legislative committees to keep up on new legislation and contact lawmakers. “If we don’t hear from the opposing side, we make the assumption something is true for all,” Althoff said. Write to every member of the committee that is reviewing the bill you feel strongly about. “Not just the chairman,” Althoff said. “If the chairman is opposed to that concept or is an obstructionist,

you can be sure it will be debated fully.” File witness slips. “Generally, legislators look at those pretty closely,” Hastings said. “We usually give deference to those.” Let someone know you are willing to testify. Some hearings are held in Chicago. Sorry, no Skype testimonies permitted. Industry groups would be glad to raise the money to hire busses to Springfield. Y

What You Can Do The panel urged everyone in the industry to be informed about pending legislation that will affect their lives and their checkbooks. Here are some suggestions on how homeowners can best express their viewpoints and wield influence over the legislative process: “Jeff does a great job as a lobbyist, but they’re not hearing from the people this is affecting. It’s been really difficult at times to get homeowners to reach out to senators and representatives.”

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

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CONDO LIFESTYLES

13


Chicago Property Services inc. Chicago’s #1 Property Management Company

More Living.

CONDO LIFESTYLES

MARCH 9, 2018

MCD POOL PARTY FEATURING CONDOLYMPICS Over 300 guests joined MCD Media at the annual MCD Pool Party featuring Condolympics on March 9th at the Pyramid Club in Addison, IL. Over $6000 was raised for Special Olympics at the event. Major Sponsors of the event were Worsek & Vihon and Property Specialists, Inc. The group from Property Specialists raised an amazing amount (over $4,000) of donations for Special Olympics by holding creative internal contests complete with a donation board in their office.

Less Worrying.

condominiums | townhomes | hoas | 100 units & under 3634 W. Wrightwood

Chicago 60647

www.chicagopropertyservices.com 312.455.0107

Baum PROPERTY MANAGEMENT AAMC

Professional Community Management C O N TA C T

Michael D. Baum, CPM, PCAM

630-897-0500 www.BaumProp.com

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CONDO LIFESTYLES

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


EVENT HIGHLIGHTS

Winners of the 2018 Condolympics events are listed below: Special Olympics Donations GOLD Property Specialists, Inc. #1 SILVER Property Specialsts, Inc. #2 BRONZE ConTech MSI Co. Pool Tournament GOLD Tim Haviland & Cheryl Murphy SILVER David Hayden & Felicia Nyda BRONZE Tom Middlestadt & Valerie George Beads Game GOLD Celina Bright SILVER Mindy Maggio BRONZE Dianah Vlad

Dart Tournament GOLD Steve Regan & Carrie Surratt SILVER Matt Liberacki & Melanie Johnson BRONZE Mike Strauss & Cristy Ulrich Ping Pong GOLD Jon Carag SILVER Russ Fleagle BRONZE Amir Amirzadeh Bean Bag Challenge GOLD Terry Grunewlad & Trevor Berg SILVER Michael Baisden & Marcel Brusca BRONZE Kristina Panayi & Steve Hanssen

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

Safari Buck Hunt GOLD Kim Hart & Maria Lamberti SILVER Donn Muckerheide & Colleen Lyons BRONZE Anna Rzeszutko & Jeff Randall Best Dressed GOLD Hillcrest Property Management “Grease Lighting” SILVER Hammerbrush Painting & Construction “O’Lucky Contractors” BRONZE Lifeline Plumbing “Kilted Plumbers”

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Committee Members Cathy Ryan Chairperson, Kevin Block – Head Scorekeeper, Sheila Malchiodi, Phil Mariotti & Michele DuBois -Lead Judges, Dennis Baier, Mitzi Buttner, Tony Dister, Tracy Davis, Vickie Farina, Erica Horndasch, Brittany Kojzarek, Ally LaHood, Toni Ivanov, Michelle Madeja, Jack Mancione, Phil Mariotti, Mandy Manalli, Shimon Mery, Tom Purrazzo, Jenny Ruth, Tom Skweres, Marina Sturn, George Toubekis and Ed Zamarippa. Special thanks to Todd Emperado for the use of his sound system! For more information on mcd media special events visit www.condolifestyles.net View more event photos at Facebook.com/mcd media

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CONDO LIFESTYLES

industry happenings ACM Community Management

MCD Golf & Bocce Invitational

Associa Chicagoland Associa Chicagoland is focused on strengthening their Associa OnCall (AOC) services with the promotion of Matthew Hohl to vice president of AOC. Mr. Hohl will focus on establishing AOC’s presence for the City of Chicago, emphasizing their maintenance capabilities, project management, project bidding services and onsite maintenance services. He will also be providing his expertise as well as supporting the established suburban AOC services. Associa OnCall (AOC) is Associa’s maintenance division that provides maintenance services to associations and homeowners throughout North America. AOC provides a suite of services that include maintenance inspections, one-on-one consultation, hourly and contracted rates, project oversight and interior and exterior restoration. .

ACM Community Management recently held a series of “Ask the Professionals” seminars. The seminars were held at the Naperville Public Library on Monday, January 29th and at JC Restoration on Tuesday, February 6th. Over 60 Board members attended the programs which were comprised of a group of round table speaker session The topics and speakers were; Ron Sirotzki of Condo Risk Insurance Specialists on Insurance Policies, Coverages and Claims, Mark Waldman of Waldman Engineering on Reserve Studies, Engineering and the Bid Process, Mark Stelter of Itasca Bank & Trust on Reserves, Loans and Bank Financing, Mark Cantey of Cantey Associates on Best Accounting Practices and Audits and David Bendoff and Michael Kreibich, of Kovitz Shifrin Nesbit on the new Condo and CICA Laws for 2018.

The 22nd annual MCD Golf & Bocce Invitational will be held on July 13, 2018 at Eaglewood Resort in Itasca. Last year, over 200 participants played golf or bocce and enjoyed industry networking at a special reception. For more information visit www.condolifestyles.net or call 630-932-5551. To view photos form past mcd media events, visit Facebook.com/MCD Media.

MCD Showcases the Races

Reserve Advisors Mark Jimenez has joined Reserve Advisors, Inc. in their Oak Park, Illinois office. Jimenez graduated from The University of Minnesota with a B.S. in Engineering. Reserve Advisors’ local staff of engineers conduct reserve studies for clients throughout the Great Lakes Region including Illinois, Michigan, Ohio and Wisconsin. The company employs 35 engineers in total throughout the United States. Please visit us at www.condolifestyles.net ... and view mcd event photos at Facebook/mcdmedia

The annual MCD Showcases the Races event will be held on August 23rd, 2018 at Arlington International Racecourse. For more information visit www.condolifestyles.net. You can view photos from past years MCD Showcases the Races events at Facebook.com/MCD Media.

Mr. Hohl has more than 25 years of real estate experience as well as 19 years of association management experience. His expertise ranges from managing multi-million-dollar capital improvement projects and securing special assessment financing to setting up day-to-day and long-term preventative maintenance programs. He started in the management industry supervising large apartment community conversions and condominiums where he had direct oversight of all capital projects including roof replacements, window replacements, siding replacement, driveway and parking lot replacement, landscaping enhancements, and fitness facility enhancements. He also conducted in-unit renovations including demo and installation of new kitchens and baths, electrical and plumbing upgrades, all flooring replacements and code requirements. Mr. Hohl joined Associa Chicagoland in 2009 as a property supervisor where he was responsible for overseeing a portfolio of on-site community managers while maintaining his own portfolio. He has overseen all aspects of management services and has been trained to handle employee conflict resolution. “Associa Chicagoland has been focused on adapting our services as the needs of our clients, residents and communities, evolve,” stated Stephanie Skelley, Associa Chicagoland president. “Our Associa OnCall services are extremely important to the safety and well-being of our residents, and with Matt in this new position, we are going to service our clients better and more effectively than ever. Under his leadership, AOC will thrive as well as expand and be available to help more people in need.”

Dickler, Kahn, Slowikowski & Zavell, Ltd. ~ concentrating in ~

Condo & HOA Representation Corporate • Real Estate • Litigation • Wills Personal Injury 85 W. Algonquin Rd., Ste #420, Arlington Heights, IL 60005

847-593-5595 16

CONDO LIFESTYLES

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INDUSTRY HAPPENINGS

Hillcrest Management & Werk Management

Baum Property Management - RealManage

We are excited to announce our merger with Werk Management, effective February 1, 2018! Hillcrest Property Management and Werk Management have merged and will operate as Hillcrest Property Management out of our Lombard office.

Since 1984, Baum Property Management has taken great pride in providing management services to its community associations based on relationships, quality, and ethics. The owner, Mike Baum, desiring to continue those values while meeting the changing management needs of the community association industry, and to capitalize on advances in available technologies, began to search for a partner. After an extensive search for a firm which met this criterion, he announced a merger with RealManage, on January 18, 2018.

With the establishment of Hillcrest in 1971, and Werk Management in 1996, we now have more than 65 years of combined experience in the property management industry. Collectively we are leveraging the strengths of both companies while remaining committed to preserving the strong customer relationships we have each cultivated over many decades. At Hillcrest, we share the same values as Werk Management in regards to a client and employee focus, loyalty, teamwork, respect, and quality service. As we combine our teams we will work to continue our shared values and tradition of excellent service and an environment our clients want to be a part of. Hillcrest has a “people-centric” com-

Y Pictured above (from LtoR) are Mindy Maggio, Jack and Lisa Mancione, and Joel Garson of Hillcrest Management. pany culture and we stand on the belief that we could not run as smoothly as we do without the input from our clients and employees. We want to welcome Werk Management, its employees, and clients to our office that runs on an open door policy internally and externally. We look forward to continuing our relationship with all of our clients and welcome everyone to the Hillcrest family!

First Community Management

of a second office on June 1, in downtown Oak Park.

First Community Management is proud to celebrate its milestone 20th year in business. Michael Rutkowski, President of First Community Management, established the company in 1998 to meet the needs of the growing number community associations in Chicago. Since then, First Community Management has successfully branched out to Chicago’s neighboring suburbs, particularly Oak Park. As part of its 20th anniversary celebration, the company is excited to announce the opening

With roots in the River West neighborhood of Chicago, First Community Management’s footprint has grown from a one room office to nearly an entire floor of a loft building just blocks from the original location. Rutkowski says, “I am thrilled to still be at the helm of this locally owned and operated management company. Expanding our operations with an Oak Park location will allow for a stronger connection to our suburban clients.”

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

Baum’s merger into the RealManage family brings with it both change and continuity. One of the significant changes will be a proprietary, state-of-the-art software platform which will put enhanced tools and capabilities in the hands of its community managers, community association board members, and residents. Baum Property Management will also be able to leverage the many resources that come from a national firm currently operating in 16 states, with three other offices in Illinois alone. The company will maintain its current Aurora location, housing its current staff, as well as adding new team members to serve their communities. Finally, the company plans to continue its banking locally, while also maintaining its current service providers to deliver the highest levels of uninterrupted service.

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industry happenings

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IREM Chicago Premier Awards Four Chicago area commercial real estate professionals and two leading companies were honored for excellence and outstanding contributions to the property management industry March 2 at the 14th Annual IREM Chicago Premier Awards and Casino Night at the Drake Hotel in Chicago. These four professionals earned individual Premier Awards in their respective categories: • Steve Matre, CPM®, Banner Real Estate Group -CPM® of the Year • David Newton, ARM®, CPM®, Draper and Kramer, AMO® -- ARM® of the Year • Celina Bright, Hillcrest Property Management, AMO® -- Leadership Award • Thomas Purrazzo, Hillcrest Property Management, AMO® -- Rising Star Two companies that provide products and services to the metropolitan Chicago property management industry earned awards in their respective categories. • Balanced Environments, Inc. -Industry Partner of the Year • Associa Chicagoland – Property Management Company of the Year The gala event, held at Chicago’s historic Drake Hotel, drew more than 230 Chapter #23 members, Industry Partners and guests for an evening of food and beverage, casino games, camaraderie, and of course, recognition for the winners in six Premier Awards categories. IREM 2018 national President Donald Wilkerson, CPM®

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Y Pictured here (from LtoR) is Erica Horndasch, Chris Gibbs, Derek Wilkinson, Stephanie Skelley, Donna Ciota, Lea Marcou, Diana Africano, Linda King and Larry Schreiber from Associa Chicagoland. and 2016 IREM Chicago President Brian Lozell, CPM®, served as co-hosts. A total of 19 nominations were submitted for consideration during the 2018 competition. The Premier Awards were created to recognize people, organizations and companies for excellence in areas that include innovation and technology, energy conservation, community involvement and leadership, property management, vendor services and embodying the core principles of the ARM® and CPM® credentials. Founded in 1953, IREM Chicago has nearly 700 members who are charged with managing office, industrial and multifamily properties throughout metropolitan Chicago. The Chapter works to keep members informed

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on safety standards, legislative activities and other issues that have an impact on commercial real estate property management. And, it provides members with industry education, opportunities for community service, job referral services and guidance for candidates seeking to earn IREM industry designations. IREM® is an international force of 20,000 individuals united to advance the profession of real estate management. Through training, professional development, and collaboration, IREM® supports its members and others in the industry through every stage of their career. IREM® offers the CPM®, ARM®, ACoM, and AMO® credentials, which demonstrates a commitment to, and passion for, good management.

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


MAINTENANCE MEMOS

Clean Building Facades and Survey for Damage From the tallest of skyscrapers, to the corner office and the downtown warehouse district, the stressors of sunlight, changing weather, water, building movement and settlement can break down and deteriorate building facades creating comfort, safety and maintenance issues that can quickly add to the cost of property ownership.

N

ow that winter is over and outdoor working conditions are improving it’s an ideal time for building professionals to survey buildings and structures for any damage that may have resulted from the cold winter weather, make repairs and perform preventive maintenance to protect the exterior going forward," said facade expert Jason Holtman. An architect, engineer, or masonry and facade restoration specialist is recommended to identify problem issues such as cracking, efflorescence, spalling, control joint failure, and sealer or caulk failure and to recommend a repair and prevention plan that protects the property and tenant spaces from leaks and water damage. Proper facade maintenance will aid in reducing the likelihood of unexpected costs and repairs, plus help to maintain the property's value, said Holtman.

Structure facades can be made from any number of materials including brick, terra cotta, granite, marble, sandstone, limestone, brownstone, concrete masonry units, glass curtain wall systems, Exterior Insulation Finishing Systems (EIFS) and precast concrete. Likewise, they can all deteriorate for any number of reasons, including: • Lack of maintenance/funding • Movement • Freeze/thaw • Air pollution • Improper workmanship/design • Moisture Ongoing maintenance is always recommended to minimize exterior damage, no matter what the building material. Holtman recommends regular, proper cleaning of the building's facade in the spring.

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

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"A clean facade projects professionalism, can increase the real estate values within the building, increase the life of the property, improve the building's appearance and make surveying winter damage easier to see," said Holtman. Facade cleaning can be performed using a variety of methods including: • High-pressure water • Low-pressure water • Sandblasting • Wet aggregate blast • Hot water steam • Chemicals • Soda blast • Poultice • Glass bead • Sponge blast The best type of maintenance is preventive maintenance and the best way to examine your building (have it examined) is when it’s properly cleaned. Y

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CONDO LIFESTYLES

From the Editor

T

he winter of 2017/18 just didn’t want to let go. February brought a few significant snow events. March had below normal temperatures and April started much the same. At least we have had

enough sunny days that have allowed outdoor projects to get underway. Hope-

CondoLifestyles

®

Y Mike Davids

fully we are done with cold and snow until next winter and we can enjoy some seasonable temperatures. It will be nice for everyone to be able to get outside. Our cover story continues the discussion on Section 19 of the ICPA that has touched a nerve of the industry in that it deals with privacy rights of unit owners in community associations. Much of the feeling on

APRIL 2018 | VOLUME 22 | NUMBER 1 Editor & Publisher Michael C. Davids Vice President Sherri Iandolo Art Director Rick Dykhuis Special Events Coordinator Mary Knoll Contributing Writers Pamela Dittmer McKuen, Jim Fizzell, David Mack, and Cathy Walker Circulation Arlene Wold Administration Cindy Jacob and Carol Iandolo Condo Lifestyles Magazine is published quarterly by MCD Media, a wholly owned subsidiary MCD Marketing Associates, Inc. For editorial, advertising and subscription information contact: 935 Curtiss Street, Suite 1A, Downers Grove, IL 60515. 630-932-5551 or 630-202-3006. Circulation: Condo Lifestyles is available for a single issue price of $8.95 or at a $30.00 annual subscription. Distribution is direct mailing and delivery direct through authorized distributors to over 5,000 officers and directors of Common Interest Communities, 800 property managers, 400 realtors, 400 developers and 400 public officials. Total Circulation is 9,500. Condo Lifestyles attempts to provide its readership with a wide range of information on community associations, and when appropriate, differing opinions on community association issues. All material herein is copyrighted 2018. No part of the publication may be reproduced whatsoever without written consent from the publisher. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is issued with the understanding that the publisher is not engaged in rendering legal or accounting services. If legal advice is required, services should be sought. Advertisers assume liability for all content of advertisements printed, and also assume personal liability for any claims arising therefrom against the publisher relating to advertising content. The publisher and editors reserve the right to reject advertising or editorial deemed inappropriate for the publication.

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this law is negative as our society in general is grappling with the issue of privacy rights, data breeches and how third parties access and use our personal data. The City of Chicago has now actually enacted a “Privacy” ordinance that allows Chicago condominium associations to limit the release of unit owner names, addresses, e-mail addressed, phone numbers and weighted votes and to restore to the condominium boards the discretion to protect the individual unit owners’ right to privacy. Please read Howard Dakoff’s article on this subject for details (page 9) and consult with your association’s attorney for guidance on this matter. The Illinois legislature is also considering new bills on this subject. In a related special feature article we discuss why it is important for you to be involved in the legislative process and communicate with your government officials. This article provides some insight and comments from three lawmakers on how they react to input from their constituents as well as some background on how the Section 19 (of the ICPA) law came to be enacted. This issue includes several other articles that concern legal issues. Anyone considering undertaking a major project should benefit from our article on contracts and how to plan for a successful transaction. Another article in this arena is on understanding and navigating your way through the issues surrounding mechanic’s liens. Our Board Basics column features an article on how associations are dealing with the increased number of packages that are being received by unit owners (and people in general) as a result of increased on line shopping habits of people. Another article that reflects changes in our lifestyles appears in our Management Talks column and discusses how smart phones and “apps” are being helpful to those responsible for the care of community associations. Other articles that can found in this issue are on the topics of property tax appeals, surveying the exterior of your building for damage and decline, as well as a guest editorial on the top 10 blunders that board members can commit. Inside this edition we again offer our regular Industry Happenings column and highlights from various special events. A special thank you to everyone who attended our Condo Lifestyles’/Condolympics event on March 9th. This year’s event raised over $6500 in donations for Special Olympics Illinois. Upcoming MCD special events include our annual golf & bocce outing, which will be held on July 13 at Eaglewood Resort and a luncheon in the Million Room at Arlington International Racecourse on August 23. If your association(s) has a special need or challenge, there will be a variety of experts specializing in community association issues including many members of our advisory board who will attend these events. MCD special events provide a terrific forum for association leaders to get questions answered, meet new vendors, share a story idea, or socialize with other volunteers and professionals. Thanks to the many new subscribers that have found our publications useful and informative. Special thanks to the firms, associations and groups that are Authorized Distributors of Condo Lifestyles. Those of you who are not current subscribers can find subscription information at www.condolifestyles.net We encourage you to take this opportunity to make your association and your community all it can be. If you have an idea that would benefit other Community Associations, a success story to share, or some advice on how to avoid a problem or failure, please call our office at 630-932-5551. You can also send us an email (mdavids@condolifestyles.net) Y

Michael C. Davids Editor and Publisher

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


SERVICE DIRECTORY

ACCOUNTANTS CANTEY ASSOCIATES, CPA’S (630) 681-9400

ARCHITECTS/ENGINEERS

ATTORNEYS

RICHARD M. FINK, JR. (847) 802-9197

CERVANTES, CHATT & PRINCE, P.C. (630) 326-4930 ext 202

“We Specialize in Emergency Repairs” Architects • Research • Engineering Specifications • Reserve Studies Dick@RichardMFink.com

ANNUAL ACCOUNTING SERVICES: Audits Reviews Compilations / Income Taxes MONTHLY SERVICES: Collection of Assessments Paying of Bills Monthly Financial Statements

www.canteycpa.com

CONDO CPA (630) 832-2222 EXT 113 CONTACT BRAD SCHNEIDER Brad@CondoCPA.com CERTIFIED PUBLIC ACCOUNTANTS

Accounting Solutions for Management Companies & Self-Managed Associations Audit & Accounting Services Income Tax Reduction & Planning

ENGINEERING SUPPORT SERVICES 630-904-9100

DICKLER, KAHN, SLOWIKOWSKI & ZAVELL, LTD. (847) 593-5595

Construction Specifications Roof Evaluations Forensic Engineering Project Management Contact Greg Lason, P.E. www.engineeringsupportservice.com

www.dicklerlaw.com

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114

CERTIFIED PUBLIC ACCOUNTANTS

(847) 496-7180 A full-service accounting firm specializing in the unique needs of homeowners’ associations.

www.ckwcpa.com

ARCHITECTS/ENGINEERS

KEOUGH & MOODY, P.C. (630) 369-2700

Daniel Baigelman, AIA dan@fullcirclearchitects.com Capital Improvements • Reserve Studies Engineering Reports

Legal Representation for Community Associations www.kmlegal.com

www.fullcirclearchitects.com

LAW OFFICES OF KEAY & COSTELLO (630) 690-6446

KELLERMEYER GODFRYT & HART, P.C. (847) 318-0033

BTL ARCHITECTS, INC. (312) 342-1858 Bringing Buildings Back to Life Contact Delph Gustitius www.btlarchitects.com

Investigations and Repair Documents for: Exterior Walls, Windows, Roofs, and Parking Garages Condition Surveys and Reserve Studies www.kghpc.com

BUILDING TECHNOLOGY CONSULTANTS, INC. (847) 454-8800

MUELLER AND ASSOCIATES

ROOFING I WATERPROOFING | FACADES I PARKING GARAGES WINDOWS I RESERVE STUDIES I TRANSITION STUDIES

info@btc.expert

FULLETT ROSENLUND ANDERSON, P.C. (847) 259-5100 www.frapc.com

CUKIERSKI & COCHRANE, LLC

Experts in Evaluating and Solving Building Problems

"Matching Legal Solutions to Real World Problems" Contact: Bob Prince www.ccpchicago.com

STRUCTURAL CONSULTING ENGINEERS

pcostello@keaycostello.com www.keaycostello.com

KOVITZ SHIFRIN NESBIT (855) 537-0500 Advising and Consulting with Business Owners, Community Association Law & Collection Services, Construction Defects, Real Estate Assessed Valuation Reduction, Litigation, Commercial Restructuring, Bankruptcy & Creditors' Rights, Real Estate, Business ,Estate Planning www.ksnlaw.com

(312) 253-7322 Assessment Evaluation & Planning New Structure Design / Existing Structure Modification Building Envelope / Condition & Reserve Studies www.muellerandassociates.org

KLEIN AND HOFFMAN (312) 251-1900 Architectural & Structural Engineering Solutions www.kleinandhoffman.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000 www.waldmaneng.com

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LEVENFELD PEARLSTEIN, LLC (312) 476-7556 Howard Dakoff / hdakoff@lplegal.com www.lplegal.com

FOR DISPLAY OR PROFESSIONAL SERVICES DIRECTORY ADVERTISING INFO, CALL (630) 202-3006

CONDO LIFESTYLES

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CONDO LIFESTYLES

BALCONY REPAIR

BUILDING RESTORATIONS

DOORS

THE RESTORATION GROUP (630) 231-5700

BRAL RESTORATION, LLC. (847) 839-1100

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667)

24 HOURS

Structural Repair Services Balcony Repair/Replacement Stair Tower Repair/Replacement Fire and Water Response/Restoration dwells@trgrestore.com www.trgrestore.com

Masonry and Concrete Restoration www.bralrestoration.com

HOLTON BROTHERS, INC. Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration

(847) 253-3886 TEL / (847) 253-3255 FAX

BANKING

John@holtonbrothers.com www.holtonbrothers.com

ALLIANCE ASSOCIATION BANK (888) 734-4567

LMC CONSTRUCTION 708-714-4175

Full service banking and lending solutions for management companies and associations. www.AllianceAssociationBank.com

Masonry Concrete General Contracting Roofing www.LMCTeam.com

COMMUNITY ADVANTAGE, A WINTRUST COMPANY (847) 304-5940 Loans, Reserve Investments & Lock Box Services www.communityadvantage.com

INLAND BANK & TRUST (630) 908-6708 Commercial Lending and Community Association Loan Program Contact: Timothy J. Haviland, CMCA www.inlandbank.com

MUTUAL OF OMAHA BANK (866) 800-4656 HOA Banking • Internet Cash Management HOA Loans • Online Payment Services www.mutualofomahabank.com

www.doorsystems.com

DUCT CLEANING AIRROOT 847-895-9550 NADCA Certified Duct Cleaning Company

www.airroot.com

ELEVATORS/CONSULTANTS

Tuckpointing ~ Masonry Repairs Waterproofing ~ Terra Cotta Repairs Caulking & Sealants ~ Structual Repairs Cleaning ~ Balcony Restoration Concrete Restoration www.dakotaevans.com

SMART ELEVATORS CO. (630) 544-6829

LS CONTRACTING GROUP, INC. T (773) 279-1122 F (773) 279-1133 Contact: Tom Laird tlaird@lscontracting.com www.lscontracting.com

QUALITY RESTORATIONS (630) 595-0990

W. J. MCGUIRE COMPANY (847) 272-3330 Tuckpointing, Caulking, Masonry and Concrete Restoration

BASEMENT WATERPROOFING

CONCRETE RAISING

THE REAL SEAL, LLC (847) 756-7987

DOOR SYSTEMS 1-800-THE-DOOR PEDESTRIAN DOORS / REVOLVING DOORS SECTIONAL DOORS / STEEL ROLLUP DOORS / FIRE DOORS HIGH SPEED DOORS / DOCK LEVELERS

DAKOTA EVANS RESTORATION, INC. (847) 439-5367

ITASCA BANK & TRUST (630) 773-0350 “Together We’ll Shape the Future” www.itascabank.com

Window and Related Masonry Interior & Exterior Doors | Siding & Gutters www.woodlandwindows.com

www.smartelevatorsco.com smartin@smartelevatorsco.com

SUBURBAN ELEVATOR CO. (847) 743-6200 Simplifying Vertical Transportation Contact: Max Molinaro www.suburbanelevator.com

ENERGY SOLUTIONS CENTERPOINT ENERGY (630) 795-2594 Natural Gas & Electric Energy Reliable Service. People You Trust. Contact: Vickie Farina Vickie.Farina@centerpointenergy.com www.CenterPointEnergy.com/CES

CRC CONCRETE RAISING & REPAIR (847) 336-3400

austinwerner@therealsealllc.com

We Save Concrete, You Save Money! www.SaveConcrete.com

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CONDO LIFESTYLES

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


SERVICE DIRECTORY

ENERGY USE/BENCHMARKING

FIRE/FLOOD RESTORATION

GARBAGE CHUTE CLEANING

WESTSIDE MECHANICAL GROUP (630) 768-6562 / (630) 369-6690

SKYLINE DKI (708) 629-0563

BROUWER BROS. STEAMATIC (708) 396-1444

"Restoring Happiness" www.skylinedki.com

All types of environmental cleaning. www.BrouwerBrothers.com

FIRE SAFETY & PROTECTION

HANDYMAN/MAINTENANCE

CHICAGO FIRE PUMP TESTING (773) 609-1510

MIDWEST PROPERTY SERVICES, INC. (630) 656-1000

Serving the Tri-State Area Since 1970 Contact: Rob Gliniewicz * Rgliniewicz@wsmech.com

www.wsmech.com

FACILITY MAINTENANCE SP+ FACILITY MAINTENANCE (773) 847-6942 Daily Cleaning Services / Power Sweeping and Washing Painting and General Repairs / Seasonal Services (Snow/Ice Removal) Parking Facility, Surface Lot, PedestrianPlaza, Large Venue or Commercial Retail Building.

Construction / Maintenance / Painting Electrical / Snow Removal

CONTECH

service@midproservice.com / www.midproservice.com

"No Job Too Big or Too Small"

THE FIRE ALARM COMPANY

Contact: Daniel W.Nicholson dnicholson@spplus.com www.spplus.com/FacilityMaintenance

HVAC

(847) 483-3803 Fire Detection & Signaling Systems Fire Alarm Systems Chicago Life Safety Evaluation Solutions Security Systems/CCTV Card Access Systems www.contechco.com

FIRE/FLOOD RESTORATION BROUWER BROS. STEAMATIC (708) 396-1444

NORTHERN ILLINOIS FIRE SPRINKLER ADVISORY BOARD (NIFSAB) 708-403-4468

All types of environmental cleaning. www.BrouwerBrothers.com

FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400

www.firesprinklerassoc.org

JOHNSON CONTROLS SIMPLEX GRINNELL (630) 948-1235

24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

www.genesisconstruction.com

EMCOR SERVICES TEAM MECHANICAL (847) 229-7600

Serving the Tri-State Area Since 1970 Contact: Rob Gliniewicz * Rgliniewicz@wsmech.com

www.wsmech.com

H V A C CLEANING

Fire alarm / Sprinkler systems Fire pumps / Fire extinguishers Backflow prevention Fire panel / Monitoring INSTALLATION | INSPECTION | TESTING | MAINTEnance

www.trgrestore.com

24 Hour Service HVAC • Industrial Refrigeration Service/Maintenance • Systems Integration Energy Management • Electrical Process Piping • Plumbing www.amsmechanicalsystems.com

WESTSIDE MECHANICAL GROUP (630) 768-6562 / (630) 369-6690

USA FIRE PROTECTION (224) 433-5724

J. C. RESTORATION, INC. (800) 956-8844

AMS MECHANICAL SYSTEMS, INC. (800) 794-5033

www.emcortmi.com

Fire Alarm / Sprinkler Systems Fire Pumps / Extinguishers Fire Panel Monitoring Installation / Testing / Maintenance 24/7 Service: (630) 948-1200 www.simplexgrinnell.com

GENESIS CONSTRUCTION, INC. (847) 895-4422

THE RESTORATION GROUP, LLC (630) 870-0658

www.chicagofirepumptest.com

BROUWER BROS. STEAMATIC (708) 396-1444 All types of environmental cleaning. www.BrouwerBrothers.com

24/7 EMERGENCY SERVICE: (847) 816-0050 www.usafireprotectioninc.com

FOR DISPLAY OR PROFESSIONAL SERVICES DIRECTORY ADVERTISING INFO, CALL (630) 202-3006 No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

04.18

CONDO LIFESTYLES

23


CONDO LIFESTYLES

INSURANCE

LANDSCAPE CONTRACTORS

MASONRY CONSULTING

HOLLINGER SERVICES, INC. (847) 437-2184

FOX LANDSCAPE 708-514-7307

Property Casualty • Employee Benefits Workers Compensation www.HollingerInsurance.com

George Kinsella -Owner GKinsella@Foxlawn.com

MASONRY TECHNOLOGIES, INC. 630-852-9122 www.masonrytech.com

ILT VIGNOCCHI (847) 487-5200

ALLIANT/MESIROW INSURANCE SERVICES (312) 595-8135

PAINTERS

www.iltvignocchi.com

Nancy Ayers www.condorisk.com

AAA PAINTING CONTRACTORS, INC. (630) 231-8350

LANDSCAPE CONCEPTS MANAGEMENT, INC. (847) 223-3800

INTERIOR CONSTRUCTION FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400

Investigation / Evaluation / Document Review / Expert Witness

www.aaapaintco.com

www.landscapeconcepts.com

ABBOTT PAINTING, INC. (312) 636-8400 (773) 725-9800

SEBERT LANDSCAPING, INC. (630) 497-1000

Quality Painting & Decorating since 1973 Our Mission: Guaranteed Committment to Quality Now offering Parking Lot Painting www.Abbottpainting.com

www.sebert.com

24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

SEMMER LANDSCAPE (708) 926-2304

INTERNET TECHNOLOGY

CERTAPRO PAINTERS OF THE NORTH SHORE (847) 989-4791

gsemmer@semmerlandscape.com

XFINITY COMMUNITIES 1 (800) XFINITY

LAWN CARE

For more information E-mail: xfinity_communities@cable.comcast.com www.comcast.com/xfinitycommunities

Interior & Exterior Painting Wallcoverings • Decorating • Remodeling Drywall Repair • Decks & Staining Tile Installation • Metal & Iron Painting www.certacommercial.com rmuldoon@certapro.com

SPRING-GREEN LAWN CARE (800) 830-5914

LANDSCAPE CONTRACTORS

www.spring-green.com

ACRES GROUP (888) 231-1300 / (847) 526-4554

ABC DECO (773) 701-1143

LOCKSMITH

Professional Landscaping and Snow Removal www.acresgroup.com

NONSTOP LOCKSMITH (312) 929-2230

ALAN HORTICULTURAL ENTERPRISES, INC. (630) 739-0205

Locksmith Services, Intercom & Access Control Systems, CCTV, Overhead Garage Doors www.nonstoplocksmith.com

www.BalancedEnvironmentsInc.com

24

CONDO LIFESTYLES

HOMETOWN PAINTERS, INC. (847) 870-1600

MAILBOXES

www.hometownpainters.com

MAILBOX WORKS (630) 355-9989/(773) 528-3111

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

www.alanhorticultural.com

BALANCED ENVIRONMENTS, INC. (847) 395-7120 | (630) 916-8830

info@abcdecoonline.com www.abcdecoonline.com

Large Variety of Commercial and Residential Mailboxes Intercoms and Tele-Entry Address Signage & Engraved Nameplates Installation Services

04.18

Construction / Maintenance / Painting Electrical / Snow Removal

Since 1989

"No Job Too Big or Too Small"

www.MailboxWorks.com

service@midproservice.com / www.midproservice.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


SERVICE DIRECTORY

PARKING GARAGE CLEANING

PROPERTY MANAGEMENT

PROPERTY MANAGEMENT

SP+ (773) 847-6942

ACM COMMUNITY MANAGEMENT (630) 620-1133

dnicholson@spplus.com www.spplus.com/facilityMaintenance

FIRST COMMUNITY MANAGEMENT (312) 829-8900

www.acmweb.com

Contact Tom Skweres

Guiding board members since 1988 www.condomanagement.com

ADVOCATE PROPERTY MANAGEMENT (630) 748-8310

PAVING DUBOIS PAVING CO. (847) 634-6089

G&D PROPERTY MANAGEMENT (630) 812-6400

Managing in the Chicago Suburbs since 1988 www.advocatepm.com

info@duboispaving.com www.duboispaving.com

www.gd-pm.com

SP+ (773) 847-6942

ASSOCIA CHICAGOLAND (312) 944-2611 / (847) 490-3833

dnicholson@spplus.com www.spplus.com/facilityMaintenance

www.associachicagoland.com

BAUM PROPERTY MANAGEMENT - REALMANAGE (630) 897-0500

Asphalt Paving & Sealcoating / Concrete www.TwinBrosPaving.com

Contact Mike Baum MikeB@BaumProp.com

ALL-OVER PEST SOLUTIONS (773) 697-1100

Contact Diane White

www.habitat.com

TWIN BROS. PAVING & CONCRETE (630) 372-9817

PEST CONTROL

THE HABITAT COMPANY (312) 527-5400

HEIL, HEIL, SMART & GOLEE LLC 847 866 7400 Quality, Service, Performance and Integrity

www.BaumProp.com

www.hhsg.net

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300

HILLCREST MANAGEMENT (630) 627-3303 / (312) 379-0692

Bed Bug Specialists. Results Guaranteed! www.all-overpest.com

SMITHEREEN PEST MANAGEMENT SERVICES (847) 647-0010 / (800) 336-3500

www.chicagoland-inc.com

COMMUNITY SPECIALISTS (312) 337-8691 www.communityspecialists.net

LIFELINE PLUMBING (847) 468-0069 Plumbing - Heating & Air Conditioning Water Heaters - Sewer Cleaning & Repair Hot Water Drain Jetting www.INEEDLIFELINE.com

FOR DISPLAY OR PROFESSIONAL SERVICES DIRECTORY ADVERTISING INFO, CALL (630) 202-3006

LIEBERMAN MANAGEMENT SERVICES (847) 459-0000 www.liebermanmanagement.com

www.smithereen.com

PLUMBING

www.hillcrestmgmt.com

CHICAGO PROPERTY SERVICES, INC. (312) 455-0107 X102

KANE PROPERTY MANAGEMENT CORP. (773) 472-2300

www.chicagopropertyservices.com

Professional Property Management. Affordable Rate. Contact: Dennis R. Kane; DKane@KanePM.com

MORE LIVING. LESS WORRYING.

KaneManagement.com

DRAPER AND KRAMER INC. (312) 346-8600 Contact Ian Novak

MCGILL MANAGEMENT, INC. (847) 259-1331

www.draperandkramer.com

www.mcgillmanagement.com

FIRSTSERVICE RESIDENTIAL (312) 335-1950 Contact Asa Sherwood

www.fsresidential.com No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

04.18

CONDO LIFESTYLES

25


CONDO LIFESTYLES

PROPERTY MANAGEMENT

REAL ESTATE TAX ATTORNEY

ROOFING

NIMROD REALTY GROUP, INC. (847) 724-7850

ELLIOTT & ASSOCIATES (847) 298-8300

ACTIVE ROOFING CO., INC. (773) 238-0338/(708) 430-8080

www.nimrodrealty.com

www.elliottlaw.com

PROPERTY MANAGEMENT SPECIALISTS 847-845-6067

KSN TAX (847) 537-0500

ROLLING MEADOWS OFFICE

(630) 633-5450

ADAMS ROOFING PROFESSIONALS INC. (847) 364-7663

www.KSNLaw.com

www.Pmgrs.com

PROPERTY SPECIALISTS INC. (847) 806-6121

Established 1965 Maintenance & Repairs Roofing/Sheet Metal/Tuckpointing www.activeroofing.com

MCCRACKEN MCCRACKEN BEHRENS (312) 263-4308 Concentrating in Property Tax Appeals since 1976

www.mmbtaxlaw.com

WOODRIDGE OFFICE

www.psimanagement.net

REALTY & MORTGAGE CO. COMMUNITY ASSOCIATION MANAGEMENT

773-989-8000 1509 W Berwyn Chicago IL 60640 Contact: Hugh Rider www.RealtyMortgageCo.com

SUDLER PROPERTY MANAGEMENT (312) 751-0900 www.sudlerchicago.com

RESERVE STUDIES

www.villamgt.com

PROPERTY TAX APPEALS

CSR ROOFING CONTRACTORS (708) 848-9119

Easy-to-Read, Customized Reserve Studies created by Reserve Specialists & Engineers www.BuildingReserves.com

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560

VILLA MANAGEMENT 847-367-4808 7370 N Lincoln Ave., Suit A, Lincolnwood, IL 60712

Roofing • Siding • Windows • Gutters Maintenance • Capital Budget Projects A+ BBB Rating www.abc-usa.com

BUILDING RESERVES INC. 1 (877) 514-8256

www.superiorreserve.com

We manage so you don't have to! ® Since 1976.

AMERICAN BUILDING CONTRACTORS, INC. (847) 670-1887

www.wvproptax.com

tsutton@tairremgmt.com

RESERVE STUDIES RESERVE ADVISORS, INC. A remarkably simple reserve study system Custom, Comprehensive Studies Conducted by Professional Engineers

(800) 221-9882

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131 Roofing, Siding & Windows www.aaexs.com

WORSEK & VIHON LLP (312) 368-0091

TAIRRE MANAGEMENT SERVICES (847) 299-5740

Roofing / Siding / Gutters / Insulation www.adamsroofing.com

All Types of Roofing Installation, Repairs & Maintenance www.csr-roofing.com

D-WING CONSTRUCTION (630) 397-8889 Your Home, Our Reputation A+ BBB Rating www.DWingConstruction.com

M&T EXTERIORS INC. (331) 248-0447 Roofing Siding Windows and Service. www.mt-exteriors.com

www.reserveadvisors.com

SARNOFF & BACCASH 312-782-8310

Long-term Thinking. Everyday Commitment.

Attorneys at Law www.sarnoffbaccash.com

MI CONSTRUCTION AND ROOFING (630) 241-0001 www.mancioneinc.com

FOR DISPLAY OR PROFESSIONAL SERVICES DIRECTORY ADVERTISING INFO, CALL (630) 202-3006 26

CONDO LIFESTYLES

04.18

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


SERVICE DIRECTORY

ROOFING PROHOME1 630-517-5797 Roofing / Siding Windows / Doors Decks / Gutters & Downspouts Kitchen & Bath Remodeling Specializing in Multi-Family www.prohome1.com

SIDING / RENOVATIONS

TOWING

D-WING CONSTRUCTION (630) 397-8889

CONTRACT TOWING (779) 707-6935

Your Home, Our Reputation A+ BBB Rating www.DWingConstruction.com

24/7 HOTLINE (877) 613-5040 Outsource your parking to the EXPERTS in towing. Jason Buffone / www.contracttow.com

INSIDE-OUT PAINTING CONSTRUCTION & ROOFING (630) 406-3000 www.insideoutcompany.com

PROHTOP ROOFING (847) 559-9119

SITE MAINTENANCE, INC. (847) 697-1077

"No Job Too Big or Too Small"

service@midproservice.com / www.midproservice.com

Window and Related Masonry Interior & Exterior Doors | Siding & Gutters www.woodlandwindows.com

SNOW & ICE MANAGEMENT ACRES GROUP (888) 231-1300 / (847) 526-4554 Professional Landscaping / Snow and Ice Management www.acresgroup.com

SP+ (773) 847-6942

A Respected Name in Commercial Roofing For Over Three Decades Roofing/Sheet Metal/Maintenance/Repairs www.vandoornroofing.com

THE WINTER WERKS (630) 241-0001

SKY CLIMBER ACCESS SOLUTIONS 847-600-3900

For more information E-mail: xfinity_communities@cable.comcast.com www.comcast.com/xfinitycommunities

WASTE SERVICES LAKESHORE RECYCLING SYSTEMS (773) 685-8811

WINDOWS/REPLACEMENTS D-WING CONSTRUCTION (630) 397-8889 Your Home, Our Reputation A+ BBB Rating www.DWingConstruction.com

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667)

SWIMMING POOLS

SECURITY SERVICES

www.admiralsecuritychicago.com

XFINITY COMMUNITIES 1 (800) XFINITY

www.mancioneinc.com

KBaker@skyclimber.com

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

(312) 955-2322

www.LakeshoreRecyclingSystems.com

dnicholson@spplus.com www.spplus.com/facilityMaintenance

SAFETY - OSHA COMPLIANCE

RCN rcnchicagoapts@rcn.net www.rcn.com

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667)

S&D ROOFING SERVICE (630) 279-6600

VAN DOORN ROOFING, INC. (847) 228-5800

www.upstream.network

Siding & Gutters / Wood Replacement Welding & Railings / Snow Removal

www.sitemaintinc.com

250,000 roofs installed since 1963 TEAR OFFS • SHINGLES • FLAT Multi-Family ROOFING Specialist Our experience & technical know-how gets the job done right the first time! www.sdroofing.com sales@sdroofing.com

UPSTREAM NETWORK 844-55-STREAM

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

We’re Here When You Need Us! www.protoproofing.com

TV-BULK CABLE & SATELLITE

SPMS (630) 692-1500 Heaters Pumps • Repairs • Chemicals Pool Maintenance • Complete Water Analysis Pool Guards, Inc. ross@spmspools.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

04.18

Window and Related Masonry Interior & Exterior Doors | Siding & Gutters www.woodlandwindows.com

CONDO LIFESTYLES

27


CONDO LIFESTYLES

by Amy Peterselli, Kovtiz Shifrin Nesbit

More Packages, More Problems A recent survey by analytics firm comScore and the United States Postal Service has revealed that consumers now make 51% of their purchases online. And according to an august.com study, 26% of homeowners receive at least one package every week. As more consumers continue to shop with online retailers and utilize same-day shipping options and prepared meal services, the number of package deliveries will only increase. This has created a particular issue for Community Associations as Property Managers and Board Members are left with the question of how to organize this delivery influx. Package Handling Issues While new construction developers have designed newer buildings to be better equipped to handle the increase of packages (with larger storage rooms or installation of lockers), older Associations that have had to deal with this have a particular problem as

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CONDO LIFESTYLES

they were built when deliveries were a rarity. Additionally, Associations are addressing growing concerns of parcel security and theft. For example, if a person is not available to accept a package, then the delivery person can leave it in a place they deem “secure;” a designation assessed differently by each carrier service.

04.18

USPS Regulations The United States Postal Service has addressed these issues by rolling out new requirements for parcel storage for new construction or remodeling of existing mailrooms. “3.7.2.1 Parcel Locker to Customer Compartment Ratio – A minimum of one standard parcel locker shall be provided for every ten customer compartments. For installation sites with less than ten customer compartments, there shall be no mandatory parcel locker requirement, however, it shall be the intent of the Postal Service to strongly encourage the inclusion of a parcel locker” However, if your Association is not looking to remodel their mailroom anytime soon, there are other options.

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.


BOARD BASICS

Package Handling Options Having a designated front desk or property management staff member accept and store packages at a multi-unit residential building is a common solution. For example, many downtown Chicago buildings have an on-site valet that handle tasks such as laundry service and package delivery. However, as the increase in packages has eaten up a noticeable amount of time front desk employees otherwise would dedicate to other administrative tasks, some Associations have also instituted a package storage fee on a per package basis. Alternatively, some communities have added a flat package delivery fee to the assessments as a “common expense.” The idea of paying an extra fee on top of shipping and handling may not sit well with some residents. It can be hard to explain the necessity of such charges and the Board and/or Property Manager may be faced with the difficult task of explaining the validity of the decision. Communities must evaluate if residents would rather pay an extra fee to ensure the security of their already purchased items or compromise their safe-keeping by simply refusing to pay a small fee.

lockers installed on the premises. If the resident does not pick up the package within a few days, a fee is charged for the storage. Association residents do not have to trip over boxes on their way into the building. If your community does not have a package handling policy or would like to review your existing procedures, you should contact your attorney and/or property manager to do so. Y

Services and Technology It is important to remind residents that there are alternatives if they choose to opt out of the Association’s services. There are a number of services that receive deliveries and allow residents to schedule a time for drop-off. Some of these services give residents the option to use local businesses as pick-up sites for their packages. Because an increase in packages also means an increase in potential theft, these options are also ideal for a building that does not have an on-site manager or front desk employee to handle deliveries. If your building does not have a front desk employee or security personnel, there are other ways Associations can provide technological alternatives to having a person on staff to accept and store residents’ packages that also ensures the safety of delivered items. Some property management companies offer in-house parcel management services and there are a multitude of parcel delivery management services that can be used by multiunit buildings. These systems typically send an e-mail or text alerting the resident that their package has been delivered and kept safely in

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2018©.

04.18

CONDO LIFESTYLES

29


CONDO LIFESTYLES

by Salvatore Sciacca, Chicago Property Services

The Top 10 Board Member Blunders Board members are the key decision makers for community associations such as condos, townhomes and homeowner associations. They are the people that volunteer and take the time to oversee the day to day operations and long term planning of the community. They are the ones that are supposed to look out for the community with a selfless attitude. Serving on the board is a fairly large time commitment and it also requires specialized knowledge to handle things correctly and cost efficiently. If an association is self-managed (because of the lack of funds or to save money or because the board/owners feel it is unnecessary), the homeowners are entrusting the board to have that specialized knowledge and financial controls in place.

I

f the association has a management company, the board can rely on the management company to provide the specialized knowledge to handle things correctly and to address issues in a cost effective manner. Unfortunately, even when an association has a management company that provides those necessary services in a high quality fashion, things don't necessarily go smoothly. Now you immediately think "How can that be true?" Well, that is because ultimately the board makes the decisions and board members are humans and humans make mistakes. So given that introductory background, what are the biggest

board member blunders:

1. Putting their personal needs ahead of the needs of the entire community. In this scenario, the board member serves on the board to get their needs met first and foremost. I need to get my front entrance door repainted even though the other entrance door needs to be replaced because it is completely warped and rotted. I need to get the pet fee removed from the rules and regulations because I'm sick and tired of paying 3 pet fees every year for my 3 dogs. It's all about ME. ME. ME. They can care less about the long-term viability of the association.

2. Firing a management company for all the wrong reasons. In this scenario, people get on the board with a BIG AX to grind. They are fuming from some incident

about 2 years ago that was the management company's fault. Or they noticed that a few tasks completed recently were done "incorrectly." Of course the fact that the previous 1,000 services were performed well is irrelevant. They are going to get on the board simply because they want to say "YOU'RE FIRED!'. This makes them feel really important. I mean seriously. Would you fire a baseball player that had a batting average of .999 just because he struck out the last 3 out of 5 times. The reality is that it is not very easy to find a really productive and effective condo management company. This is especially true if the board does not have much experience working with management companies, knowing the right questions to ask when vetting new companies and if they don't have a really good understanding of what it takes to effectively run an association. They just know that it's time to make a change. Kind of like the husband who has a midlife crises and decides it is time to get a divorce because that is going to change his life.

3. Blaming management and not having accountability. In this scenario, the board member is really good at always finding fault with the management company. You didn't follow up fast enough. You didn't handle that project correctly. You didn't read my mind correctly. You

Property • Casualty • Employee Benefits • Workers Compensation

220 S. Lively Blvd., Elk Grove Village, IL 60007 Ph: 847-439-2184 • 800-780-2922 • Fax: 847-437-2189 www.hollingerinsurance.com 30

CONDO LIFESTYLES

04.18

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GUEST EDITORIAL

didn't anticipate me forgetting to send in my assessment mailing with a reminder 10 days in advance of the due date. You are just at fault for EVERYTHING. And I have no responsibility for anything that goes wrong. I don't read the financial statements. I come completely unprepared to the board meetings. I don't care about any process that the management company employs to make things work smoothly. And I find nothing wrong with my attitude. Bottom line. I'm always RIGHT and you are always WRONG.

4. Avoiding long term capital projects. In this scenario, the board is unwilling to plan any large scale improvements more than a few months out. They don't have the guts. They don't have the stomach to plan anything longer term. They are weak at the knees. They are chickens. They are afraid that a homeowner is going to be upset if they raise the assessments to pay for upcoming capital projects. Or the board member doesn't have the extra money so they do everything to resist longer term planning. Besides, I'm selling over the next 6 months so I don't want to fund anything that won't directly benefit me.

5. Not understanding their duties. In this scenario, the board member doesn't take time to learn about best board member practices. They simply want to serve on the board to have a say. They can care less about the duties of the Treasurer. They show up at a board meeting and say they can't read a financial statement. I mean. Seriously. How can someone sleep at night and know that they volunteered to serve as the Treasure and have no ability to read the simplistic condo association financials of a 20 unit condo building.

6. Not reading or understanding the terms of the management agreement. This scenario goes

9. Having completely unrealistic expectations of the management company and vendors. I expect

something like this: It doesn't matter what the management contract stipulates. Who has the time to read that mumbo jumbo. You never mentioned it. You never said that would be an extra fee. There is a XX!!! fee for project support? WHAT? That is RIDICULOUS. All the baloney comments from a board member who wants to blame someone else. These are usually comments from a board member that applies ZERO common sense or business logic before making accusations and false statements.

7. Avoiding raising assessments. We haven't raised assessments in 10 years. We have done a great job at keeping expenses LOW. We haven't had the need to raise assessments for the last 8 years. I like to keep assessments low so we can sell our units more easily. We don't need to save too much money in the reserve account because I am planning on selling next year. All the excuses that a really caring board member can come up with while looking out for the best interest of the association.

8. Saving money at the expense of maintaining the association. Look at all the money we have saved. The carpeting might be 10 years old, smell like cat urine and have stains galore but we have skimped by on a low cost budget. I love living with a really tight budget belt. Who wants to live in a well maintained community? I certainly don't deserve it and no other homeowner deserves anything more than I deserve. I plan on staying here until I die. Who needs curb appeal if you are not selling?

all emails, phone calls and 11pm text messages responded to in less than 2 hours. That is why we are paying you the BIG $$$$. You charge a startup fee even though you are going to spend 20 hours during the on-boarding process? No other management company charges a startup fee. The other management companies work for free. You need to negotiate down with this vendor. Even though they are the lowest cost, that is still way too much money. We can't afford to maintain the building. Remember, we haven't raised the assessments in 10 years. Don't these vendors understand that we don't pay high assessments?

10. Serving on the board when they have absolutely no business serving on the board. There is no State of Illinois requirements for people to serve on the board. You don't need to be smart. You don't need to have any business sense. You don't have to have manners. You don't have to work well with a team. You don't even need any common sense. You just need to be a human that owns a condo in the association. You can even be the biggest jerk of the community. And given that most people don't want to serve on the board, the minimum human requirement is usually sufficient to get elected onto the board. So what does this all mean? Well it means that if you live in a condo, townhome or homeowner association, you need to pay close attention to who you elect to serve on the board. Of course, this is assuming that your community has elections. Y

MCD

GOLF & BOCCE INVITATIONAL

0 7. 1 3 . 18 Eaglewood Resort ~ Itasca, IL

Call 630-932-5551 for more information.

For more information, visit our website at

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04.18

CONDO LIFESTYLES

31


CONDO LIFESTYLES

by Donna Ciota, Associa Chicagoland

THE NEW WAY OF COMMUNITY LIVING By the time you purchase a new electronic device - either a new cell phone, tablet, or computer, it is almost obsolete. The next generation or as they are called, “the Millennials,” cannot live without these mobile devices. Most Millennials can walk and text at the same time. Now that is talent. The Millennial generation is so tech savvy that community managers and management companies need to move forward with this new technology as well.

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illennials and the generation before them are so busy that they have no time to read long wordy documents, notices, etc. These generations want answers immediately. They seem to like the instant gratification with answers and responses for their questions and concerns. Placing paper notices under doors in condominium associations that are not being read is a waste of resources that the association could spend somewhere else. Electronic notices are becoming more effective and popular than ever before. Some residents would like to communicate with their manager or management company on their time and not during regular business hours. These generations (and other generations too) are about convenience. If there is not an app (application) on their smart phones, it seems to be problematic for them since they do almost everything on their mobile technology devices.

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Some managers are on the run managing many associations. Being able to respond to residents, dealing with a violation or notifying a community about something while visiting the community without trying to make time to return to the office to notify the resident or community would be wonderful. Managers are asked to perform more tasks now than five years ago. Management companies are trying to make daily tasks more efficient for managers, even having managers take ownership with their communities. It would be wonderful for a manager to have an app (application) on their phones that can send out notices, violations, or respond to a resident as the manager is on the property. These days many types of community management programs are being developed and used like Building Link, Buildium Property Managed, appfolio Property Manager, and TownSq just to name a few. There are also management com-

panies like Associa that are developing or have developed a program and/or app that both residents and managers can use to take care of all the needs of the residents and manager. These apps can help make the managers' work easier in that they do not have to work behind a computer most of the day. Most of these apps (applications) can allow homeowners to check their account balance, submit work orders, contact customer service or the manager for help, begin a residential forum with neighbors, authorize visitors to enter their homes or even have an area to place furniture for sale. Easy and convenient seems to be the new norm at least for some generations. About 77 percent(1) of people that live in the United States have a smartphone. Sometimes during an emergency, these apps can help the manager send out electronic notices immediately straight to a resident's smartphone. Sometimes these emergencies can be life or death i.e.fire, flood, etc. These apps and smartphones just make the property managers' job a little bit better in helping out residents. The future for management companies to survive with the tech savvy residents is the use of mobile apps or computer programs and continuously keep in contact with the residents. Y From Pew Research Center from January 12, 2017

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by Scott A. Rosenlund - Fullett Rosenlund Anderson PC COMMUNITY ASSOCIATION CONTRACTS:

PLANNING FOR A SUCCESSFUL TRANSACTION Community associations routinely enter into a wide variety of business transactions with contractors, vendors, community management firms, other professional service providers, lenders, utility companies, governmental entities and neighboring associations. Successful navigation of major association transactions requires more than agreeing upon a service and a price and signing a contract; it also requires substantial pre-transaction planning, as well as the negotiation of proper contract documentation.

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t is essential that, from the outset of a project, an association have a solid understanding of the scope of its corporate authority to undertake various aspects of a transaction. This type of analysis requires review of the association’s governing documents (not only the declaration and bylaws, but also possibly the condominium plat and the articles of incorporation), all as amended and read in conjunction with applicable law. Such analysis requires asking - before a contract is signed - several types of big-picture questions which might be relevant to whether or how the transaction can move forward. Once this scope of authority is clearly understood, the association

should employ sound business practices in negotiating the terms of the contract documents.

General Scope of Association Authority for Project If an association is considering a particular project, a good first step is to confirm that the proposed action falls within the scope of the association’s powers and duties. For example, if a condominium association is considering a building repair project, it should first confirm how the various components, systems or facilities are classified (i.e., as common elements, limited common elements or portions of the units), who is responsible for

handling the repairs, and who is responsible for paying for the work. To provide another example, if an association wishes to grant an easement, lease or license to a telecommunications company, the association should verify whether its governing documents, in conjunction with applicable law, allow the association’s board of directors to make this decision, or whether some threshold of homeowner consent must be satisfied in order to carry out the transaction.

Scope of Association Authority to Expend Funds Many association governing documents contain dollar limits upon how much money a board can spend without the approval of the homeowners. In most cases, such expenditure limitations will not apply when the association is repairing or replacing existing property components, systems or facilities. However, if an association is adding a new feature to the property (e.g.,

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installing a security system where none previously existed), the association may have to contend with the expenditure limitation by attempting to obtain the required homeowner vote, pursuing amendment of the governing documents to remove the expenditure limitation or restructuring the transaction so that it does not trigger the expenditure limitation. While one or more of these options typically is feasible, success will not be guaranteed, and the timelines associated with these steps can significantly complicate a project if the association becomes aware of the issue after it has already taken action to commence the work.

under Subsection 9(e) of the Condominium Act, condominium associations under most circumstances may only handle limited common element repairs and charge the costs of the repairs back to homeowners on an individual basis if authorized by the condominium instruments. If an association signs and delivers a repair contract to a contractor before the applicable homeowner consent procedures have been taken, the association could find itself in an unenviable position where it has a contractual obligation to the contractor but no legal authority to raise the funds needed to pay the contractor.

Scope of Association Authority to Assess/Charge Back Expenses

Scope of Association Authority to Borrow and Pledge Assets

Both the Condominium Act and the Illinois Common Interest Community Association Act (“CICAA”) contain homeowner veto procedures for certain large assessment increases and large special (separate) assessments. The Condominium Act and CICAA also require homeowner approval for special assessments imposed to fund certain additions and alterations to the property (e.g., the aforementioned new security system). Governing documents for associations which are not subject to the Condominium Act or CICAA may require homeowner consent for large assessment increases or special assessments. Furthermore,

Associations often choose to finance major projects by obtaining bank loans. This type of loan is typically secured by the association’s pledge to the lender of all or substantially all of the association’s assets, potentially including the association’s assessment receivables, operating account and reserves. Effective in 2017, Subsection 18.4(m) of the Condominium Act was amended to provide that all condominium associations have the right to pledge all or substantially all of the assets of the association by a majority vote of the entire board, regardless of governing document restrictions which may require homeowner consent to the

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pledge. However, the 2017 change to Subsection 18.4(m) only affects condominium associations and does not apply to other types of community associations. Therefore, non-condominium associations must carefully review the scope of the board’s authority to borrow and pledge assets before entering into a loan transaction or becoming legally bound to pay a contractor when loan proceeds are needed to fund the project.

Scope of Association Authority to Enter Into Long-Term Contracts Many association governing documents contain a contract duration limitation providing that association contracts having a duration exceeding a specified number of years must be approved by the homeowners. Contract duration limitations can be relevant to numerous types of association transactions, including landscaping, snow removal, cable television and management contracts, laundry room leases, and bank loan transactions. If a contract duration limitation applies to a particular transaction, an association must consider attempting to secure the required homeowner vote, seeking to amend the governing documents or negotiating to restructure the transaction so that it does not trigger the contract duration limitation. Again, such steps likely will delay a transaction from moving forward.

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L E G A L U P D AT E

Use of Proper Contract Documentation

Conclusion

All too often, associations sign simple onepage contracts for major transactions involving an association expenditure of tens of thousands of dollars and/or binding the association to a multiple-year relationship with a vendor. In many cases, an association subsequently becomes dissatisfied with the contractor’s performance and wishes to terminate the contract or obtain other relief from the contractor, only to find that the association’s ability to obtain the desired outcome is severely impaired because the contract documents are drafted heavily in the favor of the contractor, are poorly drafted, or simply are silent as to the pertinent issues. Although it may not be realistically practical for associations to have legal counsel review every association contract, boards which do not have counsel review and modify major contracts having significant dollar values, multi-year contracts or contracts which potentially could expose the association to significant liability are taking risks with the resources of their associations. Extricating an association from a one-sided and/or otherwise deficient contract can be time consuming and uncertain, and doing so often involves litigation at a cost which far exceeds the legal expenses that would have been associated with review and negotiation prior to contract formation.

When undertaking a major business transaction, thorough pre-transaction planning and careful negotiation of contract documentation unquestionably will help an association avoid many pitfalls. If there is a dispute, proper contract documentation will enhance the association’s likelihood of success for achieving an acceptable resolution to the dispute. Ultimately, those boards which at an early stage proactively ask a few fundamental questions will be much more successful in completing transactions and projects in a professional, cost-efficient and low-stress manner. Y

1

For condominiums, see Subsection 18.4(a) of the Illinois Condominium Property Act (“Condominium Act”). Section 18.4(a) contains a homeowner veto procedure for certain large common element improvement expenditures.

2

For condominiums, see Subsection 18(a)(8) of the Condominium Act. For CICAA associations, see CICAA Section 1-45.

3

For condominiums, see Subsection 18(a)(8) of the Condominium Act. For CICAA associations, see CICAA Section 1-45.

Essential Contract Terms There is no one-size-fits-all contract checklist, nor is there a standard contract or contract rider that is applicable to all association contracts. Arriving at contract documentation which properly protects the rights and interests of an association requires individualized review by an association, its legal counsel and possibly other association professionals. This having been said, most association contracts that are well-drafted and contain reasonable terms share some essential elements. Examples of topics important for inclusion in contracts will include many or all of the following, depending on the type of contract: proper identification of the parties; complete enumeration of the contract documents; a detailed scope of work/services; clear payment terms; the use of subcontractors; start and completion dates; contract termination procedures; insurance requirements; indemnification; governmental permits; warranties over labor and materials; dispute resolution procedures; payment of legal expenses; contractor work hours; storage of tools, supplies and equipment; cleanup of debris; the contractor’s responsibility for property damage; the use of utilities by the contractor; mechanics lien waivers; notice requirements; contract assignment rights; which state’s law applies; the jurisdiction and venue where disputes can be litigated; and how the contract can be executed and amended.

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By Nicholas R. Lange, Keay & Costello, P.C.

Navigating Mechanics Liens Mechanics liens are some of a contractor’s most powerful and far-reaching tools to collect payment from a condominium association after performing work for the benefit of the association, and most condominium associations have at one point or another crossed paths with either mechanics lien or threats of mechanics liens. Mechanics liens can be drastic tools; they potentially allow an unpaid contractor the extreme remedy of foreclosing on the condominium property to satisfy his unpaid invoices, and also allow for the recovery of any attorney fees or other costs the contractor incurred in obtaining payment.

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operate differently from many other areas of Illinois law— the statute must be strictly complied with. Therefore, careful attention to statutory requirements and deadlines, as well as direction from the association’s attorney, is imperative in successfully navigating the Act

he Illinois Mechanics Lien Act (“the Act”) sets forth the procedures and requirements that are crucial in using or defending against a mechanics lien claim. Because mechanics liens potentially allow such a drastic remedy— and because they

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to enforce or defend against a lien claim.

What is a mechanics lien? Some say that the first mechanics lien act was written by James Madison and Thomas Jefferson. The policy behind the Act is longstanding and sound. The contractor’s mechanics lien— or right to payment— is essentially the contractor’s right to force a sale of the property he performed services on and use the sale proceeds to pay his outstanding invoices. The services must be work that actually benefited the property, including replacing doors or installing a new HVAC system, and it arises at the same time he makes an agreement with the property owner to do the work, and it offers the contractor security for receiving payment. The safety of

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the mechanics lien incentivizes contractors to perform work and improve property when prompt payment is uncertain. It is important to understand that many people and entities can have mechanics lien rights under the Act, not just the person the association contracts with to complete the work. The person or company the property owner contracts with is a contractor under the Act and has lien rights, and contractors also include a superintendent of construction and a construction manager. The Act also grants subcontractors lien rights who may be entirely unknown to the association. Under the Act, each of these contractors and subcontractors have some sort of lien rights over the property to ensure they are paid— even the subcontractors that the Association never knew about. Generally, whenever a contractor or subcontractor on the project is not paid, they will have the right to file a lawsuit against the property owner to foreclose on the property and receive payment for the work. It is therefore important that all parties to a project, whether known or unknown, are timely paid.

always use subcontractors to complete the work. These subcontractors could be another company that the general contractor assigns the labor to, or it could be a materials provider— for example, the shingle manufacturer. As much as eighty percent or more of the contractor’s total contract price with the property owner could be required to pay the subcontractors’ fees. Unpaid subcontractors may file a mechanics lien against the property if they are

not paid, even if the property owner had no idea that the subcontractor was participating in the project. Even more surprising, a property owner may be obligated to pay the subcontractor even when the owner already paid the general contractor for the subcontractor’s work (if, for whatever reason, the contractor failed to forward that payment to the appropriate subcontractor). In this case, the property owner may need to pay the subcontractor again, this time directly, despite already having

What are some tips to keep in mind during the construction project? Keep in mind that all mechanics liens ultimately arise from the terms of the contractor’s contract with the owner. As with all contracts, it is therefore important to carefully prepare the construction contract. The contract should be written, not verbal, and the work and payment obligations should be clearly and concisely drafted. A well-written contract should also address the timeframe in which the work will be completed, provide protection in the event the contractor fails to properly perform his services, provide for a procedure in changing the scope of the work once construction is underway, and should provide for the recovery of attorney fees if the owner must file suit. The property owner’s attorney should always be consulted to review the contract prior to its execution. Some concerns are particular to construction projects and mechanics liens- for example, subcontractors’ claims for payment. Subcontractors are involved in most construction jobs, often behind the scenes. For example, when a condominium board contracts with a general contractor to replace its roofs, the general contractor will almost

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paid the general contractor amounts which were to be sent to the subcontractors. In these circumstances, the owner would need to make what is known as a “double payment” or risk the subcontractor filing a mechanics lien over its unpaid invoices. Generally, the safest way to avoid duplicative subcontractor payments is for the property owner to require sworn statements from the contractor identifying any subcontractors and any amounts they are owed. Section 5 of the Act provides that contractors shall give the owner, and owners shall require from the contractor, a sworn statement in writing disclosing all subcontractors who will be furnishing labor, services, and materials for the project. The prudent owner will therefore insist upon this notice disclosing the project’s subcontractors prior to issuing any payment. After receiving the sworn notice from the contractor, the prudent owner should next obtain sworn statements of amounts owed pursuant to Section 24 of the Act from the subcontractors listed on the Section 5 sworn statement. In addition to being listed on the sworn statement, subcontractors may also

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provide notice of claims to the owner within ninety days from the last day of work for which the subcontractor seeks payment, which would also inform the owner of unknown subcontractor claims. The owner is now in a position to ascertain amounts owed to any subcontractors and may pay the subcontractors directly to ensure the subcontractors receive payment. Generally, owners are protected from the liens of subcontractors for amounts that were neither disclosed in the contractor’s Section 5 sworn statement nor through the subcontractor’s Section 24 notice of claim, though there are exceptions. It is important for Owners to inquire with their counsel to ensure that all sworn statements are compliant with the Act, as a defective statement will provide limited protection from overpayment to the owner. Additionally, owners should receive lien waivers from all contractors and subcontractors in exchange for payments made, though counsel should review the waivers to ensure they are effective. These lien waivers generally waive any liens or claims for nonpayment.

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Are there special requirements for mechanics liens recorded against property within condominium associations? Yes, there are multiple instances in which the same provisions of the Act translate in practice differently to condominium associations than other types of property. For example, recorded liens must state the amount of the lien, but when the contract is to improve an association’s common elements, the value of that work must be allocated to the individual units based upon their percentage interests in the common elements. If the claim for lien states an incorrect value of the work, it could be defective. If a contractor does work on both the common elements and one or more individual units, the contractor will need to carefully calculate the value of the work attributable entirely to the individual unit in addition to the value of the work on the common elements that is attributable to that unit. continued on page 40

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CONDO LIFESTYLES

from page 38

What should I do when a mechanics lien is recorded against my property within a condominium unit? The association’s attorney should be contacted as soon as a mechanics lien is recorded against the property, or sooner, if possible. In addition to putting association property at risk of foreclosure, mechanic liens are often recorded against each condominium unit and appear on title searches, meaning banks or title companies will see the liens when a condominium owner attempts to sell or refinance their unit. The mechanic liens can unsettle lenders or title companies, potentially preventing an owner from refinancing or selling the unit while the claim is recorded. Often times, however, the association’s counsel can provide a letter to a concerned party offering to indemnify and defend the homeowner in the event the homeowner is named personally in a

lawsuit to foreclose the lien, and this is often sufficient protection to enable the unit owner to proceed with his sale or refinance. The association’s counsel may also send a demand to the lienholder pursuant to Section 34 of the Act demanding that they file suit on the lien within thirty days or else forfeit their lien rights. If suit is not filed within thirty days and if the lienholder fails to release the lien, the association may seek damages and attorney fees from the lienholder in an action to release the lien. Individual unit owners also have the option of individually paying the lien amount to the contractor in exchange for the release of that lien, though this may significantly increase the difficulty in re-calculating the amounts owed from non-settling unit owners and may complicate the association’s ability to represent all unit owners. The association’s counsel should be contacted to contemplate all responsive actions, including counterclaims against the contractor, attacking the liens, and negotiations. Y

by Mark Volpe, Worsek & Vihon, LLP

TAX APPEAL SEASON IS IN FULL BLOOM

A

s the calendar flips from 2017 to 2018, the Cook County Assessor changes his focus from the South Suburbs of Cook County to the City of Chicago itself. Property in Cook County is reassessed every three years, and 2018 belongs to the City. From the middle of spring through the end of autumn, the Cook County Assessor’s Office will be working on churning out new assessments for every single parcel of real estate within the city limits, mailing the owners, and bracing for the appeals. This last part is especially important. With 1.9 million parcels of property in Cook County, the Assessor knows his values are not universally correct when they are first rendered. As a result, the Assessor relies on the appeal process to “fine tune” his values, reducing them where he deems necessary. In fact, almost 500,000 parcels are sent back to the Assessor for “fine tuning,” and almost one-third of his staff is dedicated to reviewing these appeals. While property owners have the ability to file appeals every year, the most important year in which to file is the reassessment year. This is because the Assessor only proactively changes the assessments in reassessment years. Thus, if no

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appeal is filed, any value that the Assessor doles out in a reassessment year should remain in place for the following three years. But, if an appeal is filed in the first year and the assessment is lowered, then the new, lowered assessment will remain on the property for the remainder of the triennial reassessment period. The tax savings from this difference can be several thousand dollars. This point must be emphasized with respect to condominium associations. Since condominium buildings are assessed based on current sale prices within the building, and since sale prices (at least recently) have been trending up, missing the boat on the first year to file means missing the chance to file using the lowest sale prices. Even if an appeal is filed in the second year of the reassessment period that appeal must be based on the more recent – and usually higher – sale prices. Locking in a low value in the first year is imperative to ensure that the assessments remain as low as possible. Although condominium appeals must be based on sale prices within the building, it is not necessary for a unit to transfer in order to appeal. In fact, the Assessor and Board of Review recom-

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mend that all condo unit owners file collectively as an association. There is safety in numbers. By appealing together, unit owners ensure that if one unit has a reduction coming to it, then every other unit included in the appeal is granted the same relief. With the upcoming reassessment of the City of Chicago and tax rates climbing higher every year, it is important to take advantage of every opportunity to appeal. Management companies can score big points with associations by being versed in the appeal process and by knowing when to consider filing appeals. But some questions require answers from tax professionals, and associations can benefit greatly from the expertise of an attorney. Savvy management companies have a qualified tax firm on standby to help answer unit owners’ questions about appeals, deadlines, exemptions, common elements and the like, and to consult about the need to file an appeal. With appeal deadlines closing every month, be sure to contact your attorney to discuss an appeal strategy for your building as soon as possible. Y

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