2013 HBAGC Key Awards

41st Annual 2 0 1 3 HBAG C

Presented By:

Professional Women in Building featuring

“Sammyand Awards” “Million Awards”

November 2013

Welcome All to the 2013 Key Awards ceremonies!

John Kern

This year we are celebrating not only the Key Awards, but 41 years of housing excellence.

The Key Awards concept was born in 1972 in order to recognize Chicagoland’s finest housing, in Housing Design, Building, Interior Merchandising, and Remodeling. It has since evolved into one of the premier housing award programs in the country. Celebrating 41 years is no small thing – the market took a deep dive in Chicago recently and also over the past 40+ years, but we have sustained our program of bringing you the people who are the backbone of the housing industry – building quality products for the consumers we serve. Thank you to all who make this program a success – The Entrants, the Judges, the Sponsors, the HBAGC staff, and the HBAGC members that contribute their time and effort to dotting all the “I’s” and crossing all the “T’s” for this event!

On a personal note……

I’d like to talk a little bit about what this night means to me. You know, I’ve been in the Home Building Industry for over 25 years, and I’ve been privileged to learn that we don’t just build houses – we build “Homes”: special places where people actually “Build” their “Lives”! It’s the place where we contemplate the tough decisions of our life, the place where we have quiet moments with our loved ones, the place where parents comfort their children, the place where we dream dreams. These are the things that make us who we are, and they all happen in a place built by a “Homebuilder”. Not only were our hearts nurtured in a home, but the home itself attaches to our hearts. The familiar smells, sights and sounds, and cherished memories are carried with us to this day. That is why we draw from traditional architectural elements of yesteryear. These are the homes we grew-up in, the homes we dreamed about, and the themes that rekindle those good feelings that give us comfort, and the ability to begin that relationship again in our new home – with our loved ones.

As Homebuilders, we go to great lengths to deliver the “best” home. We buy the “best” land, in the “best” school districts, hire the “best” planners, engineers and architects; the “best” interior designers, marketing companies, buy the “best” value in products, and then hire the “best” trade partners to bring it to its completion – to be presented to the new homeowner and their family. This is what we celebrate tonight - the culmination of all these efforts into these “Crowning Achievements”. And just as an Artist steps back and admires his “Masterpiece” upon its completion; So, we too take time out tonight, look back at what we’ve made, and say “well done”. I believe being in this homebuilding industry, has allowed us to explore the “best” we can be as individuals, the “best” we can be as companies, and the “best” we can be as an Association. So, as we continue with our evening - no matter the outcome - we can be proud to know, that we are “ALL” winners tonight – because we are “Homebuilders”.

Sincerely, John J. Kern Premier Architecture, Inc. Key Award Committee Chairman

The Key Awards over the years has honored developments, builders, architects, homes, apartments, etc. But never have we honored a whole Village.

So with that in mind we surveyed the Chicago area to find a Village that met the criteria of promoting development, growth, and community planning. A Village that understood how to balance housing and commercial development. And a municipality that created incentives for builders to complete projects in their town.

Pat Coveny

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Nov 2013

Having just come out of a recession in the real estate industry and seeing that there was one clear choice of a Village that was accomplishing all of this. And having the vision to move forward through a downturn in the economy, creating a public/private partnership and seeing the value of promoting growth we honor the Village of Orland Park for all that it has achieved.

Serving the Housing Industry Since 1939 in Cook, Dekalb, Dupage, Grundy, Kane, Kendall, Lake, McHenry and Will Counties Affiliated with the National Association of Home Builders and Home Builders Association of Illinois

President

Marty Paris - Sedgwick Properties

V President

Pat Coveny - Arch Construction

A V President

Frank Binetti - Inland Bank

Secretary

Corey Stern - Chitkowski Law Offices

Treasurer

In this issue ...

5

Key Awards

15

Membership Directory: Associates

19

Membership Directory: Builders

20

The Cypress Creek Bill

Art Zwemke - Robert Arthur Land

Past President

John Wozniak - J Lawrence Holdings

Associates Mitch Levinson Paul Leder Robert Cowhey John Kern Dick Greenwood Scott Walbridge John Lee Isa Noe Judith Nelson Regis Verliedfe Richard Kimball Matt Jans

Regional Board Builders Michael Menn Greg Rose Dave Brady Patrick Finn Tom Drake Scott Sevon Mike Nagel Ralph Kristensen Jerry Conrad Paul Link Andy Knovodoff Lisa Pickell

HBA GREATER CHICAGO BUILDING NEWS is the official publication of the Home Builders Association of Greater Chicago, 5999 S. New Wilke Rd., Suite 104, Rolling Meadows, IL 60008 (224) 353-6050.

Please be advised that the views expressed in this publication do not necessarily reflect the views of the Association.

All rights reserved. Duplication of material within this magazine without the permission of the editor is prohibited by law.

To Advertise Contact: Rita at hbagreaterchicago@gmail.com Cover design by: Nov 2013

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41st Annual 2 0 1 3 HBAG C

Presented By:

Professional Women in Building featuring

“Sammyand Awards” “Million Awards”

Northfield Group, LTD. GOLD Interior Design - Townhouse & Duplex Merchandising Gary Levitas - glevitas@comcast.net

Lexington Homes GOLD Interior Design - Townhouse & Duplex Merchandising Regina Castle - rcastle@lexingtonchicago.com

Phillippe Builders GOLD Interior Design - Single Family Merchandising Rachel Randall - rrandall@phillippebuilders.com

Premier Architecture, Inc. Architectural Design - Townhouse & Duplex John Kern - JKern@Premierarchitecture.com

Nov 2013

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Premier Architecture, Inc. Architectural Design - Townhouse & Duplex John Kern - JKern@Premierarchitecture.com

GOLD Environs Development Inc. Architectural Design Custom Home over 4,000 sq. ft.

Ken Brinkman - ken@environsdevelopment.com

Environs Development Inc. GOLD Architectural Design Custom Home over 4,000 sq. ft.

Ken Brinkman - ken@environsdevelopment.com

Orren Pickell Building Group GOLD Architectural Design Custom Home over 5,000 sq. ft.

Susan Hamilton - shamilton@pickellbuilders.com

Environs Development Inc. GOLD Architectural Design Custom Home over 4,000 sq. ft.

Ken Brinkman - ken@environsdevelopment.com

KF Walter Homes GOLD Architectural Design Custom Home over 4,000 sq. ft.

Greg Rose - greg@kfwalterhomes.com

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Nov 2013

SK & MB Design, Inc. GOLD Architectural Design Custom Home over 4,000 sq. ft.

Samadhi Karunaratne - samkaru77@yahoo.com

Highlanders’ Heritage Homes Excellence in Remodeling - Addition Dorothy Jarog - djarog@sbcglobal.net

GOLD

MAW Chicago LLC. Excellence in Remodeling - Condo Janice Sevon - janice@mawchicago.com

GOLD

Orren Pickell Building Group Excellence in Remodeling - Whole House Susan Hamilton - shamilton@pickellbuilders.com

GOLD

Matthias Jans Architect.

Excellence in Remodeling - Exterior Matthias A Jans Jr. - mjans@matthiasjans.com

GOLD

MAW Chicago LLC. Excellence in Remodeling - Condo Consolidation Janice Sevon - janice@mawchicago.com

GOLD

Nov 2013

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Orren Pickell Building Group

Excellence in Remodeling Susan Hamilton - shamilton@pickellbuilders.com

GOLD

Oak Design & Construction Excellence in Remodeling - Master Bedroom Rachel Hudson - rachelhudson@me.com

GOLD

MAW Chicago LLC. GOLD Excellence in Remodeling - Historic Remodel, Whole House Janice Sevon - janice@mawchicago.com

Oak Design & Construction GOLD Excellence in Remodeling - Historic Remodel, Bathroom Rachel Hudson - rachelhudson@me.com

J. Lawrence Homes GOLD Excellence in New Construction - Condo & Apartment Jeff Brown -jbrown@jl-holdings.com

J. Lawrence Homes GOLD Excellence in New Construction - Condo & Apartment Jeff Brown -jbrown@jl-holdings.com

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Nov 2013

Lexington Homes GOLD Excellence in New Construction - Townhouse & Duplex Regina Castle - rcastle@lexingtonchicago.com

Northfield Group, LTD. GOLD Excellence in New Construction - Townhouse & Duplex Gary Levitas - glevitas@comcast.net

Premier Architecture, Inc. Excellence in New Construction - High Volume Single Family John Kern - JKern@Premierarchitecture.com

Premier Architecture, Inc. Excellence in New Construction - High Volume Single Family John Kern - JKern@Premierarchitecture.com

Premier Architecture, Inc. Excellence in New Construction - High Volume Single Family John Kern - JKern@Premierarchitecture.com

Phillippe Builders GOLD Excellence in New Construction - High Volume Single Family Rachel Randall - rrandall@phillippebuilders.com

Nov 2013

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The Drake Group GOLD Excellence in New Construction Custom Home Under 3000 sq. ft.

Tom Drake - tdrake@drakegrp.com

Beechen & Dill Homes GOLD SK & MB Design, Inc. GOLD Excellence in New Construction Cust. Home Urban over 5000 sq. ft. Excellence in New Construction Custom Home 3000-4999 sq. ft.

Matthew Dill - apaul.bdhomes@gmail.com Samadhi Karunaratne - samkaru77@yahoo.com

Beechen & Dill Homes SILVER Excellence in New Construction Custom Home 3000-4999 sq. ft.

Matthew Dill - apaul.bdhomes@gmail.com

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Nov 2013

Beechen & Dill Homes SILVER Excellence in New Construction Custom Home over 5000 sq. ft.

Matthew Dill - apaul.bdhomes@gmail.com

Fifield Cos. GOLD Excellence in Community Design & Planning - Best Community Mark Thomton - mthomton@taylorjohnson.com

Environs Development Inc. GOLD Excellence in New Construction Custom Home 3000-4999 sq. ft.

Ken Brinkman - ken@environsdevelopment.com

Riordan Signature Homes Custom Home Mary Riordan - mary@riordanhomes.com

Meyer Homes, Inc. High Energy Efficiency Custom Home Tonia Gray - jill@meyerhomesinc.com

Riordan Signature Homes Custom Home Mary Riordan - maryriordanhomes.com

CRYSTALLINE

CRYSTAL

CRYSTALLINE

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SK & MB Design, Inc. CRYSTALLINE Custom Home Samadhi Karunaratne - samkaru77@yahoo.com

Weiss Building & Development Chicago’s First Passive House Brandon Weiss - bweiss45@yahoo.com

CRYSTAL

MAW Chicago LLC. Remodeling Janice Sevon - janice@mawchicago.com

CRYSTAL

MAW Chicago LLC. Remodeling Janice Sevon - janice@mawchicago.com

CRYSTAL

MAW Chicago LLC. Remodeling Janice Sevon - janice@mawchicago.com

CRYSTAL

Banner Plumbing Supply SAMMY AWARD Best Product Showroom Michelle Henderson - michelle@bannerplumbing.com

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Nov 2013

mRELEVANCE SAMMY AWARD Corporate Speciality Pieces - Brochure Amanda Winters - amanda@mrelevance.com

mRELEVANCE SAMMY AWARD Website of the Year - Custom Builder Amanda Winters - amanda@mrelevance.com

Congratulations

~

Orland Park

Municipality of the Year!

Home Builders Association of Greater Chicago Congratulates Orland Park 2013 Municipality of the Year.

Nov 2013

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Associate Members: Amish Furniture and Trim Company Kelly Edwards (847) 737-7358 kelly@amishfurnitureandtrim.com APA Bob Clark (734) 790-5778 bob.clark@apawood.org Associated Bank April Nessler (312) 552-2436 april.nessler@associatedbank.com Banner Plumbing Supply Michelle Henderson (847) 520-6100 michelle@bannerplumbing.com Benjamin Ryan Productions, LLC Shawn Longson (630) 728-2256 shawn@benjaminryanproductions.com Bloom Architecture llc Albert H. Bloom (708) 354-2424 albertbloom@gmail.com Bowman Consulting Group James Hall (312) 946-8800 jhall@bowmanog.com BSB Design, Inc. Douglas N. Buster (847) 705-2200 DBUSTER@BSBDESIGN.COM BSB Designs, Inc. Joe A. Safin (847) 705-2200 JSafin@BSBDesign.Com Carlos Martinez Carlos Martinez (224) 343-6252 cmartinezkwbroker@gmail.com CCA Midwestl John A. Neumuller (708) 906-8090 johnn@ccamidwest.com Charter One Bank Robert B. Foss (847) 767-5626 robert.foss@charteronebank.com Chicago Home Performance Corbett Lunsford (773) 271-5310 info@greendreamgroup.com Chitkowski Law Offices Corey B. Stern (630) 824-4808 cbs@chitkowskilaw.com (847) 313-6522 dick.greenwood@cbexchange.com Coldwell Banker Richard Greenwood CORPORATE PLUMBING, INC. Joe Droll (847) 526-9020 joe@corporateplumbing.biz Country Financial Jack Schiltz (630) 279-6394 jack.schiltz@countryfinancial.com Cowhey Manhard Paul Leder (630) 925-1124 pleder@manhard.com Cowhey Manhard Robert E. Cowhey (847) 325-7219 RCowhey@manhard.com Rob Heselbarth (847) 454-2714 rob.heselbarth@cygnusb2b.com Cygnus Business Media Isa Noe (847) 812-9841 inoe@dailyherald.com Daily Herald Media Group Eco Tec Insulation James J. Schoenbeck (847) 675-1400 james@ecotecinsulation.com Dean Fox (708) 301-0316 dfox@eldoradostone.com Eldorado Stone, LLC Electrolux Morgan Smith (224) 221-7099 morgan.smith@electrolux.com Justin Daniel (331) 431-8405 justin.daniel@electrolux.com Electrolux Major Appliances Ferguson Laura Anderson (630) 359-7286 laura.anderson@ferguson.com First American Bank John Lee (847) 586-2248 jlee@firstambank.com Catherine Gonzalez (773) 633-5419 cgonzalez@firstam.com First American Title Kimberly Furtek (312) 259-7593 Kfurtek@firstam.com First American title Rich Tonioni (847) 258-7300 richard.tonioni@fisherpaykel.com Fisher & Paykel Appliances Floor & Decor Mark Galat (224) 235-9416 mgalat@flooranddecor.com Sherry W. Schultz (630) 666-9404 sschultz@flooranddecor.com Floor & Decor Freeborn & Peters Michael Moynihan (312) 360-6000 mmoynihan@freebornpeters.com Jerry Thiel, Jr. (847) 481-5400 gwthiel@gwthiel.com G W Thiel Inc Goodman Manufacturing Chris Spencer (847) 272-2500 chrisspencer@goodmanmfg.com Grand Appliance and TV’s Brian Zamzow (847) 549-9807 bzamzow@grandapplianceandtv.com Joseph Lagioia (847) 844-6961 joe@gnkitchen.com Great Northern Kitchen & Bath John C. Hansen (630) 661-0897 john@johnchansen.com Hansen Homes Consulting Jordon Boyle (773) 935-7030 jordon@homecarpet1.com Home Carpet One Illinois Brick Company Deborah McGlynn (708) 344-1000 dmcglynn@illinoisbrick.com Inland Bank Frank Binetti (630) 845-2511 fbinetti@inlandbank.com Inland Bank Vito Roppo vroppo@inlandbank.com International Staple Nail & Tool Assn John Kurtz (708) 482-8138 isanta@ameritech.net James Hardie Building Products Sam Mills (312) 360-7260 sam.mills@jameshardie.com Rod Raymond (847) 295-1711 rod@lakelandbuildingsupply.com Lakeland Bldg Supply Inc Lennox industries Mike Piorkowski (847) 507-8516 Mike.piorkowski@lennoxind.com Mike Templeton, Jr (847) 716-2260 mike@mainteractivegroup.com MA Interactive, LLC Marvin Windows and Doors Scott Walbridge (800) 727-7596 scottw@marvin.com

Nov 2013

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Associate Members: Mary Cook Associates Mary Cook (773) 975-9500 info@marycook.com Matthias Jans Architect Matthias A. Jans, Jr. (847) 344-5297 MJans@matthiasjans.com Meltzer. Purtill & Stelle William Mitchell (312) 987-9900 wmitchell@mpslaw.com Mary Lisa Wahlfeldt (630) 241-9171 mwahlfeldt@builderadvisors.com Meyers Builder Advisors Shelley Villiard (847) 526-7070 shelley@michaelsroof.com Michael’s Roofing & Exteriors, LLC Midwest Technical Consultants, Inc. Michael Shamsie (630) 505-0101 mike.shamsie@landgroup.biz Moen Incorporated Chris Wulf (847) 909-9033 cwulf@moen.com Mr. Bamboo, Inc. Steven Wang (630) 227-6600 stevenw@mrbambooflooring.com mRELEVANCE Mitch Levinson (847) 259-7312 mitch@mrelevance.com National City Bank Gina M. Fridberg (312) 384-6915 gina.kopeliovich@nationalcity.com Nelson Consulting Judith Nelson (847) 778-8634 judithlnelson@aol.com Networkfleet, Inc. G K Williamson (872) 202-8484 gwilliamson@networkfleet.com Nicor Gas Heather Runge (630) 388-3458 hrunge@nicor.com Parksite Craig Wheatley (630) 699-5497 Performers Flooring & Design Gallery John Psyhos (630) 665-2533 johnpsyhos@performersinc.com Plante & Moran Sarah Elizabeth Shepard (312) 899-4460 sarah.shepard@plantemoran.com Plante & Moran Sara Farina (847) 628-8786 sara.farina@plantemoran.com Plastic Pipe And Fittings Association Richard Church (630) 858-6540 dickc@cmservnet.com Platinum Home Mortgage Frank Wolff (847) 330-3840 fwolff@ephmc.com Portland Cement Association Donn Thompson (847) 972-9166 dthompson@cement.org Premier Architecture, Inc. John Kern (847) 877-6150 jkern@premierarchitecture.com Professional Builder Tony Mancini (847) 391-1000 tmancini@sgcmail.com Residential Science Resources Andrew Pieri (888) 240-4123 andrew.pieri@residentialscience.com Resysta Midwest Dolores Simon (312) 467-9657 dsimon@resystausa.com RIHA Collaborative, Inc. Karen Murray-Alspach (312) 268-2468 karenma@rihacompanies.com Schain Burney Rosa & Citron Lt Richard H. Levy (312) 332-0200 rlevy@schainlaw.com Smith Nicolau PC David Wallach (312) 634-0734 dwallach@snrelaw.com Spaceco Inc Jerry Christoph (847) 696-4060 jchristoph@spacecoinc.com Sub-Zero & Wolf Lisa Smith (312) 505-9321 Lisa.Smith@subzero.com Sun-Times Media Jessica Sanfilippo (847) 599-2132 jsanfilippo@pioneerlocal.com Taylor Johnson Public Relations Emily Johnson (312) 245-0202 ejohnson@taylorjohnson.com The Hechtman Group Jim Hechtman (847) 256-3100 jim@thehechtmangroup.com The Inertia Group, Inc. Bill Hearn (815) 806-8005 mb@inertiagroup.com THE National Bank Marc Falk (847) 812-8300 To The Top Home Elevators & EHLS Elizabeth Crandall (847) 403-0120 elizabeth.crandall@ehls.com Torque Eric Masi (312) 421-7858 emasi@torquelaunch.com TOTO USA Mike Harrigan (847) 433-8980 mharrigan@totousa.com Tracy Cross & Associates Tracy Cross (847) 925-5400 tcross@tcrossinc.com Tracy Cross & Associates Zachary T. Lowe (847) 925-5400 zlowe@tcrossinc.com Tremco Barrier Solutions Erik Schremp (952) 221-6010 Eschremp@tremcoinc.com Tribune Media Group Melissa Davis (312) 513-8898 mjdavis@tribune.com U S Bank Home Mortgage John M. Forssander (847) 610-0138 john.forssander@usbank.com U.S.A Fire Protection Jen Peterson (224) 433-5666 jen.peterson@usafp.us Ultimate Stone, Inc Kristin Calli Schloemer (847) 437-8663 kristin@ultimatestone.net VELUX America Charles Otis (864) 941-4796 charles.otis@velux.com Viking Range Barbara Shor (630) 935-8454 bshor@vikingrange.com Voyager Media Publication Michael James (815) 436-6431 mjames@voyagermediaonline.com Voyager Media Publications Maureen Vitacco (847) 732-0443 mvitacco@buglenewsapers.com Warmup Inc. Regis Verliefde (888) 927-6333 rov@warmup.com

Nov 2013

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Builder Members: Airoom Architects and Builders Thomas Graham (847) 763-1100 tgraham@airoom.com Arch Construction Management Patrick Coveny (630) 654-0537 arch.cm@att.net Arquilla Industries Inc Robert Arquilla (708) 774-9257 norrao@aol.com Artifex Builders Daniel Zolkowski (773) 281-6850 info@artifexbuilders.com Baker Development Corp Warren Baker (773) 755-0600 c.whittaker@bakerdevelopmentcorp.com BDS Construction Inc Bryan Slowick (847) 816-3250 info@bdsconstruction.net Castlewood Homes Ed Hoffman (773) 880-1004 e.hoffman@castlewoodchicago.com Coldwell Banker Residential Charles Goro (312) 397-3069 chuck.goro@cbexchange.com

Barbara Kininmonth (630) 851-5490 bkininmonth@crown-chicago.com Crown Community Development Crown Community Development Cherie Jacquart (630) 851-5490 cjacquart@crown-chicago.com Custom Construction Concepts Inc Thomas A. Stephani (815) 459-1205 tom@custombuilding.com Paul Ivers (847) 362-9100 jgallina@drhorton.com D. R. Horton Chicago Division DBI Home Builders John Droese (815) 455-7141 jkdroese@dls.net DCC Inc. Andy Poticha (847) 498-1676 andy@dcc-ltd.com Design and Build For You Chicago Inc. John Hochbaum (773) 325-2739 john@db4uchicago.com Digital Living Patrick Mcfarland (708) 434-1197 Pat@digliving.com Door Creek Construction of Illinois, LLC Bryan Fellhauer (630) 788-4758 bryan@doorcreekconstruction.com Edward R James Partners LLC Edward James (847) 724-8200 erj@erjames.com Jerry Thatcher (219) 464-4457 energydiagnostics@hotmail.com Energy Diagnostics, Inc. Environs Development Inc Kenneth F. Brinkman (773) 665-8170 ken@environsdevelopment.com Fairfield Custom Homes, LLC Kevin Davis (847) 456-8017 Kdavis@fairfieldcustomhomes.com Foster Design Build, LLC Robert Berg (312) 445-9564 rberg@fosterdesignbuild.com Gerstad Builders, Inc Roger Gerstad (815) 344-1050 rgerstad@gerstadbuilders.com Greatrooms Designers & Builders, Inc. Craig Wolski (847) 549-9960 cwolski@greatrms.com Greenscape Homes, LLC Kenneth P. Neumann (630) 281-2030 Ken.neumann@greenscapeventures.com Hibernian Development Peter Dinneen (773) 486-4674 info@hiberniandevelopment.com Hometown America Stephen Braun (312) 604-7500 dwoodard@hometownamerica.com Hometown America Stephen Braun (312) 604-7500 dwoodard@hometownamerica.com Julie Laux (630) 455-0855 julielaux@aol.com J. Jordan Homes, LLC J. Lawrence/Smykal Homes John Wozniak (630) 281-4701 jwozniak@jlawrencehomes.com JC Contracting Jerry Conrad (847) 984-4410 jc15192wrr@aol.com K Hovnanian Homes Brian Murphy (630) 953-2222 bmurphy@khov.com K Hovnanian Homes Ray Blakenship (630) 953-2222 rlankenship@khov.com Andrew Konovodoff (630) 210-8884 akonovodoff@khov.com K. Hovnanian Co. KF Walter Homes Greg Rose (847) 209-1214 greg@kfwalterhomes.com Larry Mayer & Co Larry Mayer (773) 252-8800 larrymayerco@msn.com Lasalle Street Development Inc Paul Link (773) 244-2202 pflink@ameritech.net Levy Custom Homes, Inc. Jane Levy (708) 771-8474 Jane@levycustomhomes.com Mack Companies Eric Workman (708) 592-9243 eric@mackcompanies.net Maki Construction Co John M. Maki (847) 356-1160 makijohn@sbcglobal.net MAW Chicago LLC Michael Roy Nagel (847) 359-3591 mike@mawchicago.com Mdg Builders Inc Doug Vukajlovic (630) 654-3833 mdgbuild@gmail.com Merit Homes Bill Sandberg (847) 918-7575 bsandberg@merithomes.net Merit Homes Jeri D. Szatko (847) 680-0090 jszatko@merithomes.net Meyer Homes, Inc. Brad Meyer (847) 549-0914 brad@meyerhomesinc.com Michael Menn, Ltd. Michael A. Menn (847) 770-6303 michael@michaelmenn.com Moffitt Homes Jim Moffitt, Jr. (847) 366-9330 up_rizin@yahoo.com Moskal Development Corp Chester S. Moskal (708) 819-3027 moskaldevelopcor@aol.com New American Homes Inc Susanne Tauke (847) 772-2772 mstauke@newamericanhomes.us NEWLOOK Construction LLC Michael P. Freiburger (847) 682-8810 michael@newlookdevelopment.com

Nov 2013

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THE CYPRESS CREEK BILL EVENS THE PLAYING FIELD FOR GENERAL AND SUBCONTRACTORS WITH THE BANKS FOR PAYMENT OF IMPROVEMENTS TO A PROPERTY

By Corey B. Stern, Chitkowski Law Offices Part 1 of the Cypress Creek Bill

On February 11, 2013, Governor Quinn signed into law HB 3636, which amends Section 16 of Illinois Mechanics Lien Act, commonly known as the Cypress Creek bill. This bill allows the contractor to be paid its proportionate share of all the improvements. The positive effect of the Cypress Creek bill cannot be overstated.

Previously, the Illinois Supreme Court held in the Cypress Creek case that the lender had a super priority for improvements made to a property that were paid with the mortgage proceeds. Briefly, in the Cypress Creek case, the bank foreclosed on a property, in which the bank had a mortgage, several contractors performed work upon the property and the contractors recorded liens upon the property. The property’s foreclosure sale did not result in sufficient money to pay the bank and contractors the entire amount they were owed. Therefore, the Illinois Supreme Court allowed the bank to be paid its proportionate share for the value of the property plus a share for the improvements made from the bank’s funds after the mortgage was in default. Furthermore, the contractors received its proportionate share for only the work that was performed by the individual contractor, as opposed to all of the contractors’ work together. However, since there were insufficient funds, only the sheriff, receiver, and bank received money, while the contractors received zero.

The passage of the Cypress Creek bill reverses this Illinois Supreme Court decision, resulting in the playing field becoming more even. There are three important aspects of the Cypress Creek bill. First and foremost, the contractors’/lien claimants’ improvements will be viewed in totality and not individually. This will allow for the contractors’ to be preferred to the value of all the property’s improvements and not just for its own work. This is beneficial for a contractor because no work is done in isolation. Accordingly, all of the construction work should be valued together as one improvement and not piecemeal. For example, a framing contractor may have a higher pro rata share of the value of the work performed at the property compared to a grading contractor. However, in light of the Cypress Creek bill, both the pro rata share of the value of the property’s improvements will be combined, thereby increasing the pro rata share for both contractors. Second, it clarifies that the value of the property is determined at the time of the making of the contract between the owner and the general contractor for the specific improvements to the property. Third, any improvements on the property at the time of making of the contract between the owner and the general contractor will be attributable to the value of the land.

While this bill has no effect when the property’s sale raises sufficient funds to pay everything that is owed to both the bank and contractors, this bill does provide that the contractors will receive their pro rata share of the improvements. Since the Illinois Supreme Court decision, contractors had significantly diminished position in the foreclosure process resulting in the bank receiving the benefit of the contractors’ improvements. However, now with the passage of the Cypress Creek bill, the contractors’ position has significantly improved and has allowed the contractor to negotiate, and most importantly, be compensated to the same amount the bank has benefited.

Finally, special thanks should be given to Bill Ward, the lobbyist for the HBAGC, and Bill Basic, President of the IHBA, for their hard work and dedication in making this bill possible.

For more information, please contact Corey B. Stern at Chitkowski Law Offices at 630-824-4808 or at cbs@chitkowskilaw.com, www.chitkowskilaw.com.

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Nov 2013

Builder Members: Warmup Inc. Regis Verliefde (888) 927-6333 rov@warmup.com NEWLOOK Construction LLC Dale W. Freiburger (847) 682-8810 dale@newlookdevelopment.com Northfield Group,LTD. Gary Levitas (847) 215-0600 glevitas@northfieldgroup.com David C. Brady (708) 383-2244 dave@oak-design.com Oak Design & Construction Oakley Home Builders Ryan Dunham (630) 241-9402 amy@oakleyhomebuilders.com Orren Pickell Building Group Lisa Pickell (847) 572-5200 lpickell@pickellbuilders.com Patrick A. Finn, Ltd. Patrick Finn (847) 358-4133 patrick@patrickafinn.com Priority Energy, LLC Robert Schildgen (800) 737-2299 rob@priorityenergy.com Harold liesenfelt (630) 323-6768 harrylie@att.net Provencal Construction Com R. Franczak and Associates, Inc. Robert Lewandowski (847) 297-2568 bobl@rfranczak.com Floyd Manilow (773) 338-0101 the_manilow@yahoo.com Realty Resources Group, Inc Riordan Signature Homes James Joseph Riordan (708) 783-1133 jr@riordanhomes.com Robert Arthur Land Company Arthur C. Zwemke (630) 879-8703 arthur@robertarthurlandcompany.com Schwall Builders, Inc. Edward J. Schwall (847) 272-5743 ed@schwallbuilders.com Sedgwick Properties Dev Corp Marty Paris (773) 278-4237 mparis@sedgwickproperties.com SK & MB Design, Inc. Samadhi Karunaratne (312) 493-2233 samadhi@skmbdesign.com Stay Renovations, LLC Garrett Adams (773) 316-6080 gja16@hotmail.com Style Construction, Inc. Robert Wankewycz (847) 934-9690 stylecoinc@aol.com Sutherland Custom Builders, Inc. Greg R. Rekett (847) 446-6523 gregr@sutherlandhomes.com The Drake Group Thomas Drake (847) 729-7700 tdrake@drakegrp.com Thomas E Fox Homes Ltd Thomas E. Fox (847) 808-3120 tomfox@thomasefoxhomes.com Thomas Patrick Homes Tom Sundling (708) 445-1800 tom.sundling@comcast.net Thunderbird Construction Rob Wilder (888) 596-8390 rwilder@thunderbirdconstruction.com Management, Inc. US Shelter Group Inc Jack Sorenson (847) 622-1077 jack@usshelter.com US Shelter Homes LLC John Sorenson (847) 742-8200 john@usshelter.com West Point Builders & Developers, Inc. Patrick Curran (630) 321-1616 patcurran@westpointbuilders.com William Ryan Homes Deborah Beaver (847) 995-8700 dbeaver@wmryan.com

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21

BE WARY OF THE CHANGES TO THE ILLINOIS MECHANICS LIEN ACT WHICH MAY EFFECT YOUR ABILITY TO ENFORCE YOUR LIEN RIGHTS

By Corey B. Stern, Chitkowski Law Offices Part 2 of the Cypress Creek bill

In Part 1 of this article, I described the implementation and beneficial effects of the Cypress Creek bill (HB 3636), which was signed by Governor Quinn on February 11, 2013. However, lenders have also made changes in response to the Cypress Creek bill and another change in a section of the Illinois Mechanics Lien Act (“Act”). This article will address how lenders have or will react to the changes and how to avoid the pitfalls of the lenders’ actions.

Lenders have become accustomed to the super priority afforded them under Cypress Creek Supreme Court decision and do not want to give it up. In response to the Cypress Creek bill, some lenders are taking steps to try to maintain their super priority by requiring property owners to include lien subordination clauses in their contracts with general contractors and their subcontractors. Under a lien subordination clause, a contractor can agree in its contract to give the mortgage on the property priority over the contractor’s eventual mechanics lien claim. Accordingly, as an owner or general contractor, a corporate practice should be made of reviewing contracts which specifically includes reviewing for a mechanic lien subordination clause.

As for subcontractors, while lien subordination clauses are allowed, the Act sets forth specific requirements for lien subordination clauses to be enforceable against subcontractors. Section 21(b) of the Act requires subcontractors be given actual notice of the subordination clause prior to entering into the subcontract. A simple incorporation clause making the terms of the general contract a part of the subcontract will not be enough. Section 21(b) also provides that subordination clauses shall not be binding on subcontractors unless the subordination clause from the general contract is set forth in its entirety in writing in the subcontract.

The language of Section 21(b) gives subcontractors a basis to determine, before entering into a subcontract, whether they will be subject to a lien subordination clause.

In a foreclosure action, an enforceable lien subordination clause would put a lien claimant in a similar position to what they were before the Cypress Creek bill was implemented, so it is important to be aware of these clauses. If a subcontract on a project includes an enforceable lien subordination clause and funding is lost on that project, then when the project goes into foreclosure, a subcontractor will be forced to wait for the lender to be paid in full before any money will be paid to the subcontractor on its mechanics lien claim. An enforceable lien subordination clause can be disastrous to a subcontractor and it is imperative for subcontractors to be aware of whether a project or a subcontract is subject to a lien subordination clause before bidding the project or signing the subcontract.

The other change made to the Act is the law regarding the right of the owner, lender or any other interested party to demand that the contractor file suit upon its lien. Pursuant to the Act, a lender may make a written demand upon a contractor to file suit upon the contractor’s lien within 30 days of receiving of the demand or the contractor’s lien would be lost and forfeited, known as a “Demand to Commence Suit”. The revision to the Act is that now the Demand to Commence Suit must contain specific language to be effective. The specific language is “Failure to respond to this notice within 30 days after receipt, as required by Section 34 of the Illinois Mechanic’s Lien Act, shall result in the forfeiture of the referenced lien.”

Previously, lenders have attempted to have the courts interpret a Summons, which is served with a Complaint for foreclosure upon the lender’s mortgage, as a Demand to Commence Suit. However, through the efforts of this law firm, the Courts in the Chicago metropolitan area have routinely denied the lender’s request and ruled that a Summons is not a Section 34 demand.

However, in light of the revisions to the Act providing specific language to be inserted into the Demand to Commence Suit, a lender may take either of the following actions. At the very least, a lender may take advantage of this amendment and place the language in Summons. This action of modifying a Summons, which is a pre-printed legal form provided by the Clerk of the Court, may be legally questionable, but a contractor should diligently read the Summons and confirm whether the required language has been inserted. At most, a lender may have its process server deliver a cover letter with the statutorily required language, along with the Summons and Complaint. If the latter is done, then the lender would have effectively served its Demand to Commence Suit pursuant to the Act.

Therefore, carefully review the information you receive, and if there is any doubt, then you should forward the information directly to your attorney to determine whether you are required to file suit upon your lien claim or just named as a defendant in the case, which just requires an answer.

For more information please contact Corey B. Stern at Chitkowski Law Offices at 630-824-4808 or at cbs@chitkowskilaw. com, www.chitkowskilaw.com.

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