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APRIL 2019 | VOLUME 23 | NUMBER 1

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

BIOMETRIC-BASED TECHNOLOGY:

A MINFIELD OF POTENTIAL LIABILITY FOR COMMUNITY ASSOCIATIONS F E A T U R E S..

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Ways to Keep Your Association from Getting Sued

SAFETY AND SECURITY PLANS FOR HIGH RISE COMMUNITY ASSOCIATIONS

When Should You Replace a Hot Water Tank or Boiler for Your Condo Association? LEGAL, LEGISLATIVE AND CASE LAW UPDATE

BUILDING RELATIONSHIPS IS CRITICAL TO POSITIVE OUTCOMES

How Ethical Are You? You Might Be Surprised! RULE ENFORCEMENT FOLLOWING BOUCHER

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table of contents COVER STORY

03 BIOMETRIC-BASED TECHNOLOGY:

A Minfield Of Potential Liability for Community Associations by Howard S. Dakoff, Esq., and Erin M. Mayer, Esq. S P E C I A L F E AT U R E

07 8 Ways to Keep Your Association from Getting Sued by Jim Slowikowski BOARD BASICS

10 Safety And Security Plans For High Rise Community Associations by Angela Duea 13 Industry Happenings BOARD BASICS

15 Best Practices for Board Members: When Should You Replace A Hot Water Tank or Boiler for your Condo Association? by Salvatore Sciacca 17 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo 20 From the Editor 21 Directory Advertisements L E G A L U P D AT E

28 Legal, Legislative And Case Law Update… Building Relationships is Critical to Positive Outcomes by Pamela Dittmer McKuen BOARD BASICS

32 Bed Bugs, Revisited: Tiny Pests, Big Problems by Michael Kriebich EVENT HIGHLIGHTS

34 MCD Pool Party featuring Condolympics L E G A L U P D AT E

36 How Ethical Are You? You Might Be Surprised! by Pamela Dittmer McKuen L E G A L U P D AT E

39 Rule Enforcement Following Boucher by Dawn L. Moody and Gabriella R. Comstock

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COVER STORY

by Howard S. Dakoff, Esq., and Erin M. Mayer, Esq. of Levenfeld Pearlstein, LLC

BIOMETRIC-BASED TECHNOLOGY:

A Minfield of Potential Liability for Community Associations Finger print-scanning work clocks, eye-scanning or facial recognition devices to record data and other similar technological advancements are changing the landscape for biometric-based tools in the workplace, businesses and private life.

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he Illinois Supreme Court’s January 25th, 2019 decision in Rosenbach v. Six Flags Entm’t Corp. makes it clear that companies using biometric-based technology must strictly comply with every aspect of the Illinois Biometric Information Privacy Act (“BIPA”) to avoid liability, or users of such technology can now bring damages claims against their employers for technical viola

tions of BIPA even when those users have not suffered any actual harm. Covered includes condominium associations, homeowners’ associations (“HOAs”) and residential cooperatives (“Co-Ops”).

How Condominium Associations, HOAs and Co-Ops are using biometricbased technology

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Condominium associations, HOAs and

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Co-Ops are increasingly adopting the use of biometric-based timeclocks for the purpose of monitoring when employees check in and out of work, as these types of timeclocks effectively prevent employees from clocking in their co-workers. Associations and Co-Ops cannot force their employees to provide biometric identifiers or information; however, there is no law that protects employees who

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refuse to use such biometric-based timeclocks from being terminated. While associations and Co-Ops have the right to require the use of biometric-based timeclocks as a condition of employment, consideration should be given to the potential liability that is created by such a mandate. Associations and Co-Ops requiring their employees to provide biometric identifiers and information must be certain that they are in full compliance with BIPA in order to avoid liability.

In the future, associations and Co-Ops are likely to consider implementing biometricbased technology in connection with accessing common areas and amenities. Over the last two decades, many buildings have replaced traditional key-locks with electronic key fob systems which can track and record each time that a specific key fob is used to open a specific door without the use of biometric identifiers. Implementing the use of biometric-based technology could enhance

security by preventing unauthorized individuals from gaining access to a building by using a lost or stolen key fob. Further, buildings that charge additional user fees in connection with certain amenities could more effectively restrict access to such amenities using biometric-based technology. Adoption of rules requiring owners to provide biometric identifiers and information in order to fully enjoy the use of property in which they have a shared ownership interest is problematic as such a policy affects ownership rights. Lawfully implementing the required use of biometric-based technology to gain access to a building’s common areas and amenities is likely to require an amendment to the association’s declaration or the Co-Op’s proprietary lease approved by a supermajority of the owners. While legally possible, associations and Co-Ops must consider the possibility of negative publicity surrounding such a policy and the potential impact on property values. While unit owners may not agree to subject themselves to required use of biometricbased technology, condominium associations, HOAs and Co-Ops may see benefits associated with requiring guests, contractors and vendors to submit biometric identifiers and information before being granted free access to their building. Adopting such a policy would not require an amendment to an association’s declaration or a Co-Ops proprietary lease; however, such a policy would require associations and Co-Ops to fully comply with each aspect of BIPA to avoid potential liability.

The Illinois Biometric Information Privacy Act BIPA was signed into law in 2008 to address growing security and safety concerns related to increased use, collection and storage of “biometric identifiers” by private organizations. The term “biometric identifiers” includes retina scans, fingerprints, voiceprints and facial recognitions. These types of identifiers differ from other means of personal identification because they are biologically unique to specific individuals. Unlike social security and drivers’ license numbers, biological identifiers cannot simply be changed when they are compromised, leaving affected individuals with no recourse and a heightened risk of identity theft.

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COVER STORY

Under BIPA, condominium associations, HOAs and Co-Ops in possession of biometric identifiers or any information based on an individual’s biometric identifiers (“biometric information”) must develop a publicly available written policy establishing a retention schedule and guidelines for permanently destroying biometric identifiers and biometric information when the initial purpose for collecting or obtaining such identifiers or information has been satisfied or within 3 years of the individual’s last interaction with the association or Co-Op, whichever occurs first. Further, before a condominium association, HOA or Co-Op may collect an individual’s biometric information, it must (i) inform the individual in writing that his or her biometric identifier or biometric information is being collected; (ii) inform the individual in writing of the specific purpose and length of term for which a biometric identifier or biometric information is being collected, stored and used; and (iii) receive a written release executed by the individual whose bio-

metric identifier or biometric information is being collected, stored or used. Once in possession of a biometric identi-

tion and protect them from disclosure in a manner which is at least as protective as the manner in which they store and protect their other confidential information. And in no event may such information be held in a manner that falls short of a reasonable standard of care.

The impact of Rosenbach on the use of biometric-based technology

fier or biometric information, BIPA would require condominium associations, HOAs and Co-Ops to store such identifiers and informa-

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Prior to the Illinois Supreme Court decision in Rosenbach, the Illinois Appellate Courts were split on whether a private entity responsible for storing and using biometric identifiers and biometric information could face statutory liability for technical violations of BIPA when the person bringing a claim didn’t suffer any actual injury. While some jurisdictions dismissed BIPA claims if the claimant couldn’t show that they suffered any damage as a result of the entity’s storage and use of their biometric identifiers and information, other jurisdictions found private entities liable for simply failing to comply with BIPA’s several technical requirements.

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Following the decision in the Rosenbach case, it is clear that condominium associations, HOAs and Co-Ops are subject to potential liability for even mere technical violations of BIPA as persons bringing BIPA claims against an association or Co-Op need not allege that they suffered any actual injury or harm. Regardless of whether such person actually suffered any damage, associations and Co-Ops that fail to comply with each technical component of BIPA could find themselves liable for statutory damages, injunctions, litigation expenses and the claimant’s attorney fees for each separate BIPA violation, which can be substantial. As a result of the Rosenbach decision, condominium associations, HOAs and CoOps that are already using biometric-based technologies should consult with their legal counsel to ensure that they are not running afoul of BIPA’s technical requirements. Those condominium associations, HOAs and CoOps that plan to implement biometric-based technology in the future should work with their legal counsel to create policies and procedures that are BIPA compliant. Y

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Best practices for avoiding liability when using biometric-based technology Condominium associations, HOAs and Co-Ops interested in using biometric-based technology should adhere to the following best practices for avoiding liability under BIPA: • Enact a BIPA-compliant written policy regarding the collection, use and storage of biometric identifiers and information; • Collect consent forms from all users of any biometric-based technology; • Treat all collected and stored biometric identifiers and information as confidential and keep it secured; • Ensure that contracts with third party vendors retained to collect and/or store biometric identifiers and information require that such information be secured; • In the event of a security breach affecting any biometric identifiers or biometric information collected or stored by the association Co-Op or a retained third party, promptly comply with applicable breach notification laws; and • Except as required by law, do not share any biometric identifiers or information with any third party without obtaining written consent.

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

by James A. Slowikowski, Esq. Dickler, Kahn, Slowikowski & Zavell, Ltd.

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Ways to Keep Your Association From Getting Sued

Lawsuits are an inevitable part of running a business, but nobody wants to be sued. The person bringing the lawsuit against the community association is asserting that the association, and particularly the board of directors, has done something wrong or is doing something wrong. Recent legal actions that have involved community associations provide some insight as to what you can do to reduce the likelihood that your association gets sued. Reasonably Accommodate the Disabled A significant amount of legal action has involved claims of discrimination, that the association is violating the Federal Fair Housing Act. Owners and residents are often assisted by not-for-profit fair housing agencies as well as the fair housing departments of the State, counties, and municipalities. Most of the discrimination claims involve disabled persons. The

Fair Housing Act requires associations to reasonably accommodate the needs of the disabled person so that they have equal use and enjoyment of the property. Reasonable accommodations include allowing a physical modification to the property, including common areas. This includes things such as allowing the installation of a ramp, and allowing a chair lift at the pool. The law provides that the requesting party is to bear the expense of the modification to the property.

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The reasonable accommodation requirement also includes a requirement to make an exception to association rules and policies as necessary to reasonably accommodate the disabled person. The most common examples of this are providing a reserved parking space, and relaxing pet restrictions to allow a support or assistance animal. The associations that refuse to provide a reserved space or allow such pets find themselves the targets of discrimination claims.

Properly Hold Elections It seems that recently there have been more disputes that arise in connection with board elections. This usually occurs because things were not handled in a formal manner, or care was not taken to follow election procedures. Future lawsuits may be avoided if procedures are put in place and

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then followed from start to finish. The disputes have included things such as incorrect notice and not sending the notice timely, incorrect method of service of the notice, improperly completed and submission of proxies, incorrectly rejecting proxies, incorrectly rejecting candidates as not being qualified, failing to use ballots, and failing to count votes correctly, (i.e., not using percentage of ownership in condominiums). Taking care to make sure the documents are correct will help immensely.

Properly Give Notice When Adopting Special Assessments Claims that a special assessment was not properly adopted is another subject that fosters lawsuits against associations. Both the Illinois Condominium Property Act and the Common Interest Community Association Act have provisions applicable to special assessments. The most common mistake is not providing the homeowners with a sufficient notice of the board meeting where the board intends to adopt the special assessment.

Particularly, all too often there is no notice provided or the notice is not sent at least ten days before the meeting, as required by both of those statutes. The notice must also state that a purpose of the meeting is to adopt the special assessment.

Keep Required Records and Respond to Requests To Inspect and Copy Records Do not ignore or refuse an owner’s proper request to inspect records. In every association the homeowner has some right to inspect certain records, either by an applicable law or pursuant to the bylaws. Associations are sued because they fail to allow the inspection, or fail to provide those records which the homeowner is entitled to. Sometimes the problem is that the Association did not keep the records it is required to maintain. We have seen instances where associations did not take or keep minutes of meetings, or maintain records of ALL receipts and expenditures. In some instances, laws allow the homeowner to recover attorney’s fees to bring the lawsuit to obtain the records.

Set Your Budget and Assessments Accordingly Many boards are driven by a desire to keep assessments low. This is not a proper perspective. A budget must be designed to fully address all of the needs of the property, even if it means increasing assessments. Inevitably this focus leads to budgets that are not sufficient to collect enough funds to maintain, repair, or replace the property as needed. This in turn leads to deteriorated property which can cause damage or injury. Ironically, failing to perform needed replacements may actually lead to increased costs of maintenance and repairs. An inadequate budget also leads to low reserve levels so that when big projects like roof replacements come up, the board must adopt a special assessment. And, special assessments may lead to lawsuits challenging the special assessment or asserting that the board failed to maintain the property. Avoid those lawsuits by setting the budget to collect sufficient funds.

Maintain the Property, And Fix Things! Fix things that need fixing! Do not ignore any property conditions that should be addressed. The lack of funds due to an inadequate budget, or simply a desire not to incur expenses that were not yet anticipated are not reasons to put off what needs to be done. The association may be sued because of claimed damages an owner incurs, or because of difficulty in selling the unit due to condition of the property. A common example of this are water leaks due to deteriorated or faulty roofs,

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

or building exteriors. In 2013, a condominium association in Cook County was hit by the court with punitive damages for failing to repair common elements that caused continuing water leaks into an owner’s unit. That should be a wake-up call The for all boards.

whether the contractor performed the work correctly. Depending on the type of work, property managers and board members usually are gener-

tracts may not fully protect the association. When the association refuses to pay it is sued by the contractor. A better contract may not necessarily prevent a lawsuit, but it may help reduce the odds of a lawsuit if it levels the playing field between association and lack of funds due to an inadequate budget, vendor. Another problem is when boards make decisions or proceed on or simply a desire not to incur expenses that Use Architects and an incorrect course without conEngineers on Projects sulting the attorney, accountant, were not yet anticipated are not reasons to put Associations often sign contracts engineer, etc. Some common examoff what needs to be done. for large projects like roof or siding ples of this are: denying a reasonable replacement, but do not use a profesaccommodation; making repairs that sional architect or engineer to predon’t fix the problem because the pare specifications for the work, and to oversee the ally not qualified to inspect work performed by a cause was not properly investigated and diagwork. Proper specifications, which must be part of contractor to determine it was done correctly, that nosed; failing to provide records for inspection, the contract, identify specifically what the conshould be left for the professional. refusing to repair something that is association tractor is to provide. When a dispute arises it is responsibility; and adopting rules that may be in Similarly, Use Your Attorney common that the association refuses to pay, and is conflict with the declaration or the law. Obtaining and Other Professionals then sued by the contractor for payment. Incomadvice and opinions may go a long way to avoid plete specifications lead to fights about whether Associations often do not utilize attorneys, lawsuits for taking incorrect actions. the contractor performed as required by the conaccountants, or other professionals as they should. If you follow these suggestions, you will put tract because it is not clear what the contractor Seeking advice from the attorney may prevent your community association in a better position to was to provide, or whether a particular material legal claims. For instance, Associations routinely avoid lawsuits. Y was required, or what work and materials are sign pre-printed contracts without having its included in the cost. Another common issue is attorney review and modify contracts. Those con-

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by Angela Duea, Lieberman Management Services

SAFETY AND SECURITY PLANS FOR HIGH RISE COMMUNITY ASSOCIATIONS…

If You See Something, Say Something Protecting the communities we serve is a priority, and board members and property managers play an important role. They are responsible for putting a structure for security in place and making plans to help residents during emergencies.

O

ne way that managers of high-rise communities keep their residents safe is through developing safety programs. This might include an emergency manual that provides direction to building staff for crisis situations like fires, civil disturbances, gas leaks or flooding. All employees should be given a copy of these procedures, and drills may be necessary to prepare for the most common disasters. Directions such as evacuation procedures and best practices for crisis situations should also be shared with all resi-

dents. A safety seminar at the building can be an efficient way of educating residents. “Let residents know ahead of time how they will receive instructions or warnings in the event of an emergency,” says Judy Ziner, Director of Chicago Operations at Lieberman Management Services (LMS). “that way, in the midst of a disaster, they will keep that channel of communication open and look for instructions or information.” Beyond site safety plans, information and communication are crucial in light of an

emergency. “Improper communication can result in panic and foster confusion which could make the situation worse,” says Barbara Al-Saigh, LMS Property Manager at Museum Pointe CA. On a yearly basis, some managers put out an "ICE" (In Case of Emergency) sheet to all residents that has all the numbers and processes for everything, for fire, flood or blood. It’s perfect for putting on one's refrigerator. “On a yearly basis, property managers should insure the voice notification system is working properly,” adds Diana Turowski, LMS Property Manager at 565 W. Quincy. “Because these systems are often "daisy-chained" together, if one speaker goes down, numerous speakers are affected.”

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BOARD BASICS

• Identify the building’s emergency exits and where emergency equipment like fire extinguishers are located, and know how to use it.

Role of Residents Residents also have a role in keeping their communities safe; in fact, they have a role to play that property managers and staff usually cannot fill. To be most useful, though, residents must be prepared. One of the best ways a resident can prepare for an emergency is to become familiar with the building by following these steps: • Walk the stairwells at least once to make sure there are not crossovers, twists, or turns when evacuating that may confuse them.

“Oftentimes residents may have a false sense of security when living in a high rise if there is 24 hour door staff present and cameras at the building entry points,” Al-Saigh adds. Periodically sharing personal safety tips and reminders with residents, even when they may seem obvious, can help protect the community and the property. Keeping a building secured also requires collaboration between residents and staff. If there has been a recent increase in theft or violence, the manager may need to increase door staff or foot patrols. Owners and employees alike

• Ensure they are familiar with other floor layouts in case they have to get off on a floor they are unfamiliar with. • Know what the stairwells are called and the direction they are closest to (North, South, East, West, etc.)

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should be responsible for ensuring locks and gates work properly and that the property remains secure. “It can feel rude to let a security door close in someone’s face,� says Turowski. “But if you don’t know the person, don’t hold the door to a secured location for them. Once they enter, they have access to many areas of the building.� In general, the property manager relies on residents being alert to potential threats, especially after working hours. They should keep an eye out for unattended packages or bags and should not watch or hold bags for strangers. They should report abandoned vehicles or suspicious persons to the police or security guard. “It’s always a good idea to listen to that gut feeling that something is amiss,� Turowski states. “Frequently, that feeling comes from danger signals we may not have consciously noticed.�

vent thefts from common areas such as the following: • Sending notice to residents to advise them to be mindful of their surroundings, lock bicycles, make sure doors close behind them when entering and exiting the building, not allowing access to anyone they don’t know, and reporting suspicious activity to the authorities and management.

used on bicycle storage rooms or pedestrian doors to the garage. A safe community is one in which the residents can rely on each other to report problems and where they know their staff is prepared for the worst case scenario. Remember, if you see something, say something. Y

Security Tips for Residents

• Installing high speed overhead garage doors to prevent criminals from piggybacking into the garage by following a resident; this is one of the most common methods of entry.

• Keep Emergency Phone Numbers Handy (post on fridge and program in your phone).

• Installing high resolution cameras at entrances to the building including overhead garage doors.

• Don’t hold the door to a secured location for anyone you don't know.

• Installing signs to warn would be criminals that the property is under surveillance and police will be called.

Bicycle Theft Issue

• Installing exterior lighting operated by motion sensors. Well-lit areas are less likely to be targeted by criminals.

A recurring issue that plagues downtown high rises is bicycle theft. Many buildings have taken several steps to increase security to pre-

• Installing high tech access device systems to control access and also track usage by specific individuals. Fob readers can be

• Become familiar with your building stairwells and floor layouts.

• Keep an eye out for unattended packages or bags. • Do not watch or hold bags for strangers. • Report abandoned vehicles or suspicious persons to the police or security guard. • If you see something suspicious, say something.

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INDUSTRY HAPPENINGS

Wintrust Community Advantage Wintrust Community Advantage recently announced Matt Hall and George Toubekis have both been promoted to assistant vice president. Hall joined Wintrust in 2008 as a personal banker and transitioned to credit analyst in 2013. He was subsequently promoted to a senior credit analyst in 2016 and shortly thereafter joined Wintrust Community Advantage as a relationship management officer. Toubekis also joined the company in 2008 as an assistant branch manager at Village Bank and Trust, a member of the Wintrust Community Banks family. He became a credit analyst with Wintrust Community Advantage in 2014, became a senior credit analyst in 2015, and was promoted to relationship management officer in 2017.

I N D U S T RY H A P P E N I N G S

MCD Golf & Bocce Invitational The 23nd annual MCD Golf & Bocce Invitational will be held on July 12, 2019 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 from past mcd media events, visit Facebook.com/MCD Media.

Y Matt Hall

Y George Toubekis

In their new roles, both Hall and Toubekis are responsible for portfolio management and business development with management companies and association clients. They are each actively involved in the Community Associations Institute (CAI), the Association of Condominium, Townhouse, and Homeowners Associations (ACTHA), and the Apartment Building Owners and Managers Association (ABOMA) and serve on numerous committees. Wintrust Community Advantage also announced the hire of Joel Starks, relationship manager, vice president. In this role, he is responsible for business development and portfolio management for condominium, homeowner, and townhome association clients throughout the Midwest. Starks has worked in the property management industry for more than 13 years. With his experience as a management company owner and executive, as well as his past supervision of condominiums, homeowner, and townhome associations, he brings a great knowledge of the industry and confidence to help associations and management companies with their banking needs. “Joel brings vast experience in association banking, technology, and property management knowledge and is a great addition to the Wintrust Community Advantage team,” said Peter Santangelo, president of Wintrust Community Advantage. “His years of experience in this industry and his knowledge are extremely valuable. I look forward to his contributions to our continued success.” Prior to joining Wintrust Community Advantage, Starks worked as an executive in the association division of a national bank. He previously served as vice president of the Community Associations Institute (CAI) Minnesota chapter. He has also served on numerous committees within the Minnesota and Illinois chapters. About Wintrust Community Advantage Wintrust Community Advantage, based in Barrington, Ill., specializes in everything a community association or property management company needs to manage their finances. In operation since 1999, the senior management team has over 100 years of combined expertise in banking. Wintrust Community Advantage is a division of Barrington Bank & Trust Company, N.A., a Wintrust Community Bank.

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IREM Chicago Premier Awards 15th Annual Celebration to Recognize Excellence in Chicago Commercial Real Estate

I

REM Chicago honored two companies and four individuals for excellence and outstanding contributions to the property management industry March 8 at the 15th Annual IREM Chicago Premier Awards and Casino Night. Hundreds of industry professionals attended the gala event held at the historic Drake Hotel. These four professionals earned individual Premier Awards in their respective categories: • Natalie Drapac, CPM®, Community Specialists -CPM® of the Year • Kristen Alessi, ARM®, Draper and Kramer-ARM® of the Year • Kim Sisney, CPM® Bickerdike Redevelopment Corporation -- Leadership Award • Linda King, Associa Chicagoland, -- Rising Star Two companies that provide products and services to the metropolitan Chicago property management industry earned awards in their respective categories.

Y Pictured here (from LtoR) is Kristen Alessi, Phil Carbonari, Annaliza Arceo, Matt Sokolowske, Linda King, Steve Matre, Colleen Lerose, Kim Sisney, Natalie Drapac CCIM, CPM® and 2016 IREM Chicago President Brian Lozell, CPM®, served as co-hosts.

• Landscape Concepts Management -Industry Partner of the Year • Banner Property Management. LLC – Property Management Company of the Year The gala event drew more than 250 Chapter 23 members, Industry Partners and guests for an evening of food and beverage, casino games, camaraderie, and recognition for the winners in six Premier Awards categories. IREM 2019 national Secretary/Treasurer W.A. “Chip” Watts IV,

A total of 16 nominations were submitted for consideration during the 2019 competition. More than 40 Industry Partner companies supported the event through sponsorships. 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 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.

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BOARD BASICS

by Salvatore Sciacca, Chicago Property Services

Best Practices for Board Members:

When Should You Replace A Hot Water Tank or Boiler for your Condo Association? Are you a board member of a condo, townhome or HOA community association? Or perhaps you are a homeowner serving on a capital improvements committee? One of the most important questions to ask is when to replace a capital item such as a hot water tank or a boiler heating system.

I

f your building doesn’t have a common hot water tank or a heating system, this article still applies to other types of capital equipment and HVAC systems. And even if you have a reserve study for your condo association, you should still have a basic understanding of the major mechanical systems in your association especially if you are serving on the board. If you have a management company, they should have the answers to each of these questions readily available. If not, you might want to consider switching to another management company as this is one of the basic functions of a management company which is to assist the board of directors in the proactive replacement of capital equipment. Here are the steps you should employ to determine when you should replace this system: 1. Determine the age of the system. The first question to ask is do you know the age of your system? Most hot water heating systems last approximately 15 years. Some only last 10 years and some can extend to 20 years if you are lucky. The manufactured date and/or install date of the system is normally on a sign that is riveted or fastened to the system. You might have to remove a grill or cover to access this information. 2. Check the condition of the system. A visual check of the system should let you know if there are current leaks or if there is rust present on the system especially towards the bottom of the tank area. 3. Check your capital plan and reserves. Does your association have a capital plan? Does your association have a reserve study? If you have a reserve study, check to see when it was completed. It may not have relevant information if it is over 5 years old. If you don’t have a capital plan or a reserve study, then you should consider having a capital plan or reserve study put together for the association. 4. Get a quote for full replacement. If your system is 10 years old or greater, you should get a full replacement quote. If you have a current reserve study, this information should be on there. And even in that case, you might consider getting a quote from a qualified vendor.

There are different types of hot water tank systems and the system included in the reserve study has general costs but not based on actual costs from local vendors. Before getting a quote, determine what is the best system for your type of association. There are different types of systems and configurations. Get a few opinions and determine which system and configuration is best for your association. 5. Fund the replacement. If the system is nearing 10 years old or older and especially if it is showing some wear and tear like rust and leaks, it is time to start planning the full replacement. Options to fund the replacement include: paying directly from the reserves, paying half from reserves and half from a special assessment or even by obtaining a bank loan and special assessment if the system is a bigger more costly one. In any case, make sure you leave a sufficient amount in the reserves for other upcoming capital projects and in order to meet FHA and other financial guidelines. 6. Replace the system. This is the million-dollar question. When exactly should you replace the system? This depends on the level of proactiveness of the board of directors. If you have a current reserve study, this report would specify what year to replace the system and in a perfect world, the association would follow exactly what the report says. Unfortunately, in many cases, the association doesn’t follow the reserve study recommendations and the report is no longer valid since the reserves are not in line with the report recommendations and the capital items are not replaced in the manner specified by the report. As a result, I will describe an alternative scenario which is one where the association does not have a reserve study or has an expired report. In this case, the board properly plans ahead by funding the reserves through assessments or special assessments so that when the time comes, the funds are available for the full replacement. And the board understands that the system could have lasted another year or several more years but knows that it is much better to replace the system proactively rather than waiting for the system to fail and cause unnecessary

stress and headaches to the board and homeowners. The other reason that this is the best-case scenario is that it typically will cost less to proactively bid out the system and replace it rather than wait for it to fail and then replace it on an emergency basis that usually ends up costing the association 10% to 50% more by doing so. SUMMARY How proactive do you wish to run your association? Do you prefer to avoid unnecessary headaches and stress? Do you wish to avoid emergencies that cost the association thousands of dollars that could have been avoided? These are the questions you need to ask yourself and your fellow board of directors.

enhancing landscapes for life… • Landscape Maintenance • Landscape Design/Build • Landscape Construction • Seasonal Flower Rotations • Snow and Ice Control

708.926.2304 gsemmer@semmerlandscape.com

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CONDO LIFESTYLES

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INDUSTRY HAPPENINGS

Community Specialists Community Specialists recently made the following announcements: Bill O’Leary has returned to C.S. as a Senior Property Supervisor. Matthew Dorsch joined C.S. and is the new Property Manager for 801 S Plymouth Court Apartments, Townhomes and Garage C.A. Silvio Brizu has now become the manager at Park Newberry Condominium Association. Community Specialists took over management of The LaSalle Private Residences at 1212 N LaSalle on November 1, 2018. Andy Warner is Property Supervisor and Tiffany Nobles was hired as Property Manager. In January 2019, Community Specialists took over management of State Place Condominium Association at 1101 S State Street. Melissa Mitrovic was hired as Property Manager and Pablo Rico as Administrative Assistant. Molly Trogdon has been named Property Manager for Brownstone Condominium Association. Molly previously served as Assistant Manager at 900/910 lake Shore Drive Condominiums. Cortney Cox moved from his position as Manager for South Commons to 1100 Lake Shore Drive which C.S began as managing agent in mid-February. Rob Shouse has joined 5445 Edge-water Plaza as their Administrative Assistant. Schoen Smith will be the new Administrative Assistant for the Sterling Private Residences Association.

I N D U S T RY H A P P E N I N G S

“Westward360” Westward Property Management and TriView Property Management have joined forces to become the premier provider of real estate management services for community associations and multi-family buildings, executives announced recently. Now called Westward360, the new company manages roughly 600 buildings comprising approximately 25,000 units. With the merger, it has 200 employees total. The new board of directors and leadership team will consist of seven partners: TriView’s Brent Straitiff will be CEO, Nathan Brown will be Chief Investment Officer and Brawley Reishman will be CTO. Westward’s David Westveer will take on the CFO role, Ian Duni will be Chief Sales Officer, Travis Taylor will be COO and Patrick Gill will serve as CMO. Why merge? “To make complementary offerings available to a larger audience and allow deeper market penetration,” said Straitiff. “Scale allows us to invest in infrastructure to provide a better customer experience at a better value, and to build out new service offerings our clients will appreciate.” Straitiff continued, “This is part of a larger growth strategy of acquiring companies that fit our model and culture. We expect to announce more transactions in the near future.” Westward, which began operating in 2005, manages more than 400 community associations, and prides itself on providing a better customer experience to Chicagoans by investing in quality personnel and state-of-the-art

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

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technology and business process. It offers full or a la carte services including property management, accounting services, property maintenance, construction oversight and 24-hour support. “There’s an exciting opportunity to build on the full ecosystem of services we’ll now be able to offer. That will make it easier for the consumer to manage what is typically their largest asset – their home or real estate investment. Said, Westveer. “Until now, customers would have to rely on various resources to care for and manage their home or investment. Now they can work with one team who knows their property and can provide everything from day-to-day management to brokerage services and maintenance.” Also founded in 2005, TriView was fueled by the desire to break the industry mold. It sees property management as a people business, and invests in innovation and open communication to find better ways to serve homeowners’ associations, landlords, renters and buyers. It manages more than 200 properties including condominium associations, townhome associations and investment properties consisting of single-unit condos, 2-4 unit buildings and residential apartment buildings (up to 200 units). “We’re confident in the team we’ve assembled and the investments we’ve made. Said, Straitiff. “Our holistic offerings, which are unique to the industry, will provide an ongoing competitive advantage. 2019 will be a very exciting year for Westward360.”

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CONDO LIFESTYLES

I N D U S T RY H A P P E N I N G S ACTHA The Association of Condominium Town Home Associations held their spring conference and trade show on March 30th, 2019 at Drury Lane in Oak Brook Terrace. In addition to the trade show, a variety of educational seminars were presented. Topics covered included a legislative/legal update, fiduciary responsibilities, meeting types & requirements, rules & regulations, best practices for legal & financial services, daily operations, and promoting a sense of community living. ACTHA recently elected Diane Pagoulatos as President and added as Board members Thomas Skweres and Marcia Caruso. Diane has been a member of ACTHA for over ten years and has served as Vice President and Secretary. She is currently the Seminar Coordinator and the Co-Chairman of the Communication and Marketing Committee with Ron Sirotzki of Condo Risk Insurance. Since 2016 she has also served on the CAI Board of Directors (Community Association Institute) and on the ILAC and Legislative FundRaising Committees of CAI. She was awarded the CAI’s Rising Star Award in 2017 and the CAI’s Outstanding Homeowner Leader Award in 2018.

MCD Showcases the Races The annual MCD Showcases the Races event will be held on August 22nd, 2019 at Arlington International Racecourse. Last year, over 175 guests enjoyed a day at the races along with industry networking, resources and idea exchange. For

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CONDO LIFESTYLES

đ&#x;Ž¤

Tom Skweres has been in the property management industry for over 35 years. Tom is currently the Vice President for ACM Community Management and is a licensed community association manager through the State of Illinois. Tom was an Adjunct Faculty member at the College of DuPage for 25 years and is an Advisor at DePaul University School of New Learning. He is an active committee member of ACTHA, CAI and a Past-President of ABOMA. Tom is also an Advisory Board Member for Condo Lifestyles magazine. He was the Board Secretary for his former condominium association and a past Board member of the Hinswood Homeowners Association, where he and his family currently live. Marcia Caruso, CPM LCAM, Managing Broker has been in the industy for over forty years, starting in accounting, becoming a Controller and then working her way up the chain of command in management. Marcia began training others in the field of property manangement beginning in 1986. In 1990 Marcia came to Illinois and in 2002 opened Caruso Management Group. Since that time Ms. Caruso has been very active in ACTHA and CAI. Marcia facilitated and began the Learn and Lead program for ACTHA which has gone on to train multiple others in the

Y Shown here is the ACTHA Board of Directors (from L to R) Tom Skweres, Jeanette Butler -Treasurer, Cindy Fitts, Joe Fong, Marcia Caruso -Secretary, Diane Pagoulatos President, Jacqueline Fanter, Betsy Gearon and Ron Sirotzki -Vice President. field on Community Association living. In 2015, Caruso Management Group was sold to RealManage. Marcia continues to work at RealManage and to mentor and train other managers throughout the industry.

more information visit www.condolifestyles.net. You can view photos from past years MCD Showcases the Races events at Facebook.com/MCDMedia. For more information visit www.condolifestyles.net or call 630-932-5551.

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019Š.


INDUSTRY HAPPENINGS

îœ

FirstService Residential FirstService Residential, North America's property management leader, is expanding its Chicago property management portfolio with the acquisition of Lieberman Management Services, Inc. Terms of the transaction were not disclosed. Simultaneously, the company is partnering with Draper and Kramer, Incorporated, which is exiting condominium management and transferring its condominium management division, DK Condo, to FirstService Residential. The addition of Lieberman, a market leader with 250 properties and 40,000 units under management, will triple FirstService Residential's client base in the Chicago area and bring the company's management portfolio to more than 8,500 properties and over 1.7 million residential units throughout North America. FirstService Residential was founded on a "best of both worlds" philosophy pairing the strength of corporate resources with the local leadership expertise of associates who take great pride in enhancing the quality of living for residents. "We are delighted to add this important Chicago market leader to our portfolio," said FirstService Residential CEO Chuck Fallon. "Lieberman's business is highly complementary with ours. They have a diverse footprint in the Chicago area and are led by strong management who are aligned with our culture. We welcome the Lieberman organization and look forward to their contributions in enhancing services to our clients and growing our business in the region."

I N D U S T RY H A P P E N I N G S

Founded in 1971, Lieberman is a leading residential property management organization in the Chicago metropolitan area – the third largest market in the United States. Day-to-day operations for Lieberman will not change and will continue to be led by CEO Carla Kennedy and her management team, all of whom have been with the company over the past decade. FirstService Residential, which currently manages the largest portfolio of luxury condominiums in North America, continues its growth in Chicago through a strategic partnership with DK Condo to transition properties as Draper and Kramer exits the condominium management sector. "The opportunity to work with DK Condo, which has become the gold standard for high-rise condo management in the market, is the cherry on top of this strategic business push in Chicago," said Fallon. "FirstService Residential has a substantial force of associates with expertise in condos and luxury high-rises ready to collaborate with the talented management teams at these communities to continue delivering first-class service without missing a beat."

Y Pictured here (from L to R) are Ian Novak, Carla Kennedy and Asa Sherwood. "Marrying our vast corporate resources with the personal touch of local experts who are part of the fabric of the communities we manage has been a hallmark of our success in Chicago and across North America," added Asa Sherwood, president of FirstService Residential Illinois. "The winning combination of FirstService Residential, Lieberman and DK Condo makes us the powerhouse in the market."

As part of the strategic partnership, Draper and Kramer Vice President Ian Novak will maintain his role and oversight over the former DK Condo portfolio within FirstService Residential. Other members of the DK Condo team, which includes over 100 licensed community association managers, will join Novak in the transition.

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CONDO LIFESTYLES

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CONDO LIFESTYLES

From the Editor

T

he winter that just passed reminded us of the winters of years gone by. January and February brought many significant snow and ice events with some bitter cold. March started much the

same and we then saw some warmer sunny days that helped thaw us out.

CondoLifestyles

®

Y Mike Davids

Hopefully we are done with freezing temperatures and snow until December and we can enjoy more pleasant temperatures. Not only does good weather help put people in a generally better frame of mind, but we need favorable weather to perform exterior maintenance, repair, and restoration projects that properties all over Chicagoland are ready to undertake.

APRIL 2019 | VOLUME 23 | 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

Our cover story is on biometric technology and how it is impacting the community association industry. Currently the buildings that do use this technology only use it on employees. In the future, buildings may decide to use biometrics technology requiring guests, contractors and vendors to submit biometric identifiers and information before being granted free access to their building for access and security purposes. Whether Associations decide to use this technology with their members is much more complicated. In any case, it’s important to be in compliance with the Illinois Biometric Information Privacy Act. Our second story is on some of the best ways to help keep your Association from getting sued. As we all know, lawsuits are usually costly, messy and time consuming. This issue includes several other articles that concern legal issues. In one article, we discuss why it is important for you to be involved in the legislative process and communicate with your government officials. In addition to highlighting new laws and court cases, this article provides some insight and comments from lawmakers on how they react to input from their constituents as well as some background on laws that did not actually pass but may surface again this year as possible laws. Another article discusses the enforcement of rules at your community association after the Boucher court cases. We also have an article that discusses ethics and provides some examples of good and bad ethics that

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.

you should find helpful.

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.

to provide good security in your association(s) as well as help educate residents on good security and life

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.

One of the articles in our Board Basics column offers insight on when an association should consider replacing their hot water heating tank(s) while another one provides a fresh look at dealing with bed bugs and the importance of having a plan to deal with bed bugs if your association should face this problem. Another Board Basics article that appears in this issue is on safety and security. It’s important to do as much as you can safety practices. 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 15th. This year’s event raised over $6000 in donations for Special Olympics Illinois. Upcoming MCD special events include our annual golf & bocce outing, which will be held on July 12 at Eaglewood Resort and a luncheon in the Million Room at Arlington International Racecourse on August 22. 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

All material herein is copyrighted 2019. 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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CONDO LIFESTYLES

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 e-mail (mdavids@condolifestyles.net). Y

Michael C. Davids Editor and Publisher

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SERVICE DIRECTORY

ACCOUNTANTS

ARCHITECTS/ENGINEERS

ATTORNEYS

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

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

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

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

CUKIERSKI & COCHRANE, LLC CERTIFIED PUBLIC ACCOUNTANTS

(847) 496-7180

A full-service accounting firm specializing in the unique needs of homeowners’ associations. www.ckwcpa.com

FSB&W LLC (847) 262-4374 Contact: Steven M. Silberman, CPA ssilberman@fsbwcpa.com

www.fsbwcpa.com

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

BUILDING TECHNOLOGY CONSULTANTS, INC. (847) 454-8800 Experts in Evaluating and Solving Building Problems ROOFING I WATERPROOFING | FACADES I PARKING GARAGES WINDOWS I RESERVE STUDIES I TRANSITION STUDIES info@btc.expert

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

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

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

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

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

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114 Daniel Baigelman, AIA dan@fullcirclearchitects.com Capital Improvements • Reserve Studies Engineering Reports www.fullcirclearchitects.com

KEOUGH & MOODY, P.C. (630) 369-2700 Legal Representation for Community Associations www.kmlegal.com

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

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

pcostello@keaycostello.com www.keaycostello.com

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

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

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000

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

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

BALCONY REPAIR

www.waldmaneng.com

THE RESTORATION GROUP (630) 231-5700

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

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24 HOURS

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

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CONDO LIFESTYLES

BALCONY REPAIR

BUILDING RESTORATIONS

THE PORCH PEOPLE (773) 325-0000

HOLTON BROTHERS, INC. (847) 253-3886 TEL / (847) 253-3255 FAX

Repair of Porches, Decks and Balconies. www.theporchpeople.com

Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration John@holtonbrothers.com www.holtonbrothers.com

BANKING

LMC CONSTRUCTION 708-714-4175

ALLIANCE ASSOCIATION BANK (888) 734-4567

Masonry Concrete General Contracting Roofing www.LMCTeam.com

Full service banking and lending solutions for management companies and associations. Contact: Diane White dwhite1@allianceassociationbank.com www.AllianceAssociationBank.com

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

WINTRUST COMMUNITY ADVANTAGE (847) 304-5940

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

Loans, Reserve Investments & Lock Box Services www.communityadvantage.com

INLAND BANK & TRUST (630) 908-6708 Commercial Lending and Community Association Loan Program

LS CONTRACTING GROUP, INC. T (773) 774-1122 F (773) 774-5660 Contact: Tom Laird tlaird@lscontracting.com www.lscontracting.com

Contact: Timothy J. Haviland, CMCA www.inlandbank.com

QUALITY RESTORATIONS (630) 595-0990

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

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

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

CONCRETE RAISING CRC CONCRETE RAISING & REPAIR (847) 336-3400

SEACOAST COMMERCE BANK 331-305-0869

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

Full Service Banking and Lending Services Specializing in Homeowner Association & Property Management Solutions

DOORS

rrowley@sccombank.com www.sccombank.com

BASEMENT WATERPROOFING

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667) Window and Related Masonry Interior & Exterior Doors | Siding & Gutters

PEDESTRIAN DOORS / REVOLVING DOORS SECTIONAL DOORS / STEEL ROLLUP DOORS / FIRE DOORS HIGH SPEED DOORS / DOCK LEVELERS www.doorsystems.com

DUCT CLEANING AIRROOT 847-895-9550 NADCA Certified Duct Cleaning Company www.airroot.com

ECO AIRDUCTS 708-530-1986 Full Service Cleaning AirDucts, Trash Chutes & Dryer Vents www.ecoairducts.com

ELEVATORS/CONSULTANTS 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

ENERGY USE/BENCHMARKING WESTSIDE MECHANICAL GROUP (630) 768-6562 / (630) 369-6690 Serving the Tri-State Area Since 1970 Contact: Rob Gliniewicz Rgliniewicz@wsmech.com www.wsmech.com

SAY YOU SAW IT IN... CONDOLIFESTYLES!

austinwerner@therealsealllc.com

CONDO LIFESTYLES

DOOR SYSTEMS ASSA ABLOY ENTRANCE SYSTEMS 1-800-THE-DOOR

www.woodlandwindows.com

THE REAL SEAL, LLC (847) 756-7987

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DOORS

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SERVICE DIRECTORY

FACILITY MAINTENANCE

FIRE SAFETY & PROTECTION

SP+ FACILITY MAINTENANCE (773) 847-6942

CHICAGO FIRE PUMP TESTING (773) 609-1510

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.

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

708-403-4468

www.firesprinklerassoc.org

24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

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

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

INSTALLATION | INSPECTION | TESTING | MAINTEnance

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

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

HANDYMAN/MAINTENANCE

www.trgrestore.com

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

"Restoring Happiness" www.skylinedki.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

HEIL HEIL INSURANCE AGENCY (847) 530-3888 afullerton@heilandheil.com www.heilandheil.com

GARBAGE CHUTE CLEANING

THE RESTORATION GROUP, LLC (630) 870-0658

All types of environmental cleaning. www.BrouwerBrothers.com

HOLLINGER SERVICES, INC. (847) 437-2184

Fire alarm / Sprinkler systems Fire pumps / Fire extinguishers Backflow prevention Fire panel / Monitoring

www.rainbowrestore.net

BROUWER BROS. STEAMATIC (708) 396-1444

Nancy Ayers www.condorisk.com

USA FIRE PROTECTION (224) 433-5724

courtneyschmidt@callperfection.com www.callperfection.com

H V A C CLEANING

ALLIANT/MESIROW INSURANCE SERVICES (312) 595-8135

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

www.genesisconstruction.com

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

INSURANCE

JOHNSON CONTROLS SIMPLEX GRINNELL (630) 948-1235

GENESIS CONSTRUCTION, INC. (847) 895-4422

SKYLINE DKI (708) 629-0563

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

NORTHERN ILLINOIS FIRE SPRINKLER ADVISORY BOARD (NIFSAB)

FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400

RAINBOW INTERNATIONAL RESTORATION (708) 460-0911

CONTECH

(847) 483-3803

All types of environmental cleaning. www.BrouwerBrothers.com

PERFECTION PROPERTY RESTORATION (877) 962-9644

HVAC & Plumbing Services www.hillgrp.com

Fire Detection & Signaling Systems Fire Alarm Systems Chicago Life Safety Evaluation Solutions Security Systems/CCTV Card Access Systems www.contechco.com

BROUWER BROS. STEAMATIC (708) 396-1444

HILL MECHANICAL GROUP 847-451-4200

www.chicagofirepumptest.com

THE FIRE ALARM COMPANY

FIRE/FLOOD RESTORATION

HVAC

Construction / Maintenance / Painting Electrical / Snow Removal "No Job Too Big or Too Small" service@midproservice.com / www.midproservice.com

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INSURANCE/PROPERTY CLAIMS CHILDRESS LOUCKS & PLUNKETT, LTD. 312-494-0200 Property Insurance Recovery Experts

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

CONDO LIFESTYLES

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INTERIOR CONSTRUCTION

LANDSCAPE CONTRACTORS

PAINTERS

FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400

SEBERT LANDSCAPING, INC. (630) 497-1000

ABC DECO (773) 701-1143

24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

INTERNET TECHNOLOGY

info@abcdecoonline.com www.abcdecoonline.com

SEMMER LANDSCAPE (708) 926-2304

CERTAPRO PAINTERS OF AURORA (866) 715-0882

gsemmer@semmerlandscape.com

RCN (312) 955-2400

Interior & Exterior Painting Drywall Repair • Metal & Iron Painting Light Carpentry • Power Washing Commercial Roofing Repair cdidech@certapro.com oswego.certapro.com

LAWN CARE

www.rcn.com/bulkbetter

XFINITY COMMUNITIES 1 (800) XFINITY

www.sebert.com

SPRING-GREEN LAWN CARE (800) 830-5914

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

www.spring-green.com

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

LOCKSMITH

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

LANDSCAPE CONTRACTORS

NONSTOP LOCKSMITH (312) 929-2230

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

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

Professional Landscaping and Snow Removal www.acresgroup.com

MOLD REMEDIATION

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

PERFECTION PROPERTY RESTORATION (877) 962-9644

www.alanhorticultural.com

PARKING GARAGE CLEANING

PAINTERS

SP+ (773) 847-6942

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

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

www.BalancedEnvironmentsInc.com

ILT VIGNOCCHI (847) 487-5200

www.aaapaintco.com

www.iltvignocchi.com

www.landscapeconcepts.com

Construction / Maintenance / Painting Electrical / Snow Removal "No Job Too Big or Too Small" service@midproservice.com / www.midproservice.com

courtneyschmidt@callperfection.com www.callperfection.com

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

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

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

ABBOTT PAINTING, INC. (312) 636-8400 (773) 725-9800 Quality Painting & Decorating since 1973 Our Mission: Guaranteed Committment to Quality Now offering Parking Lot Painting www.Abbottpainting.com

PAVING DUBOIS PAVING CO. (847) 634-6089 info@duboispaving.com www.duboispaving.com

SP+ (773) 847-6942 dnicholson@spplus.com www.spplus.com/facilityMaintenance

FOR DISPLAY OR PROFESSIONAL SERVICES DIRECTORY ADVERTISING INFO, CALL (630) 202-3006 24

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 2019©.


SERVICE DIRECTORY

PAVING

PROPERTY MANAGEMENT

PROPERTY MANAGEMENT

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

ACM COMMUNITY MANAGEMENT (630) 620-1133 Contact Tom Skweres

G&D PROPERTY MANAGEMENT (630) 812-6400

Asphalt Paving & Sealcoating / Concrete www.TwinBrosPaving.com

www.acmweb.com

www.gd-pm.com

ADVOCATE PROPERTY MANAGEMENT (630) 748-8310

THE HABITAT COMPANY (312) 527-5400

PEST CONTROL ALL-OVER PEST SOLUTIONS (773) 697-1100

www.habitat.com

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

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

SMITHEREEN PEST MANAGEMENT SERVICES (847) 647-0010 / (800) 336-3500 www.smithereen.com

PLUMBING AMS MECHANICAL SYSTEMS, INC. (800) 794-5033 24 Hour Service HVAC • Industrial Refrigeration Service/Maintenance • Systems Integration Energy Management • Electrical Process Piping • Plumbing www.amsmechanicalsystems.com

GREAT LAKES PLUMBING & HEATING COMPANY (773) 489-0400 Plumbing / HVAC / Fire Protection Riser Replacements / Site Utilities www.glph.com

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

Quality, Service, Performance and Integrity

www.associachicagoland.com

www.hhsg.net

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300

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

Plumbing - Heating & Air Conditioning Water Heaters - Sewer Cleaning & Repair Hot Water Drain Jetting www.INEEDLIFELINE.com

COMMUNITY SPECIALISTS (312) 337-8691

LIEBERMAN MANAGEMENT SERVICES (847) 459-0000

www.communityspecialists.net

www.liebermanmanagement.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 KaneManagement.com

MORE LIVING. LESS WORRYING. DRAPER AND KRAMER INC. (312) 346-8600

MCGILL MANAGEMENT, INC. (847) 259-1331

www.draperandkramer.com

FIRSTSERVICE RESIDENTIAL (312) 335-1950

www.mcgillmanagement.com

Contact Asa Sherwood

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

www.fsresidential.com

POWER WASHING POWER CLEAN, INC. (630) 545-9551 Mobility Efficiency Safety Professional Power Washing

www.nimrodrealty.com

FIRST COMMUNITY MANAGEMENT (312) 829-8900

NORTHWEST PROPERTY MANAGEMENT 815-459-9187

Guiding board members since 1988 www.condomanagement.com

Residential & Commercial Association Management CRYSTAL LAKE & GENEVA IL www.nwpropertymanagement.net Established 1979

powercleaninc@netzero.net www.powercleaninc.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

www.hillcrestmgmt.com

www.chicagoland-inc.com

Contact Ian Novak

LIFELINE PLUMBING (847) 468-0069

HEIL, HEIL, SMART & GOLEE LLC 847 866 7400

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CONDO LIFESTYLES

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CONDO LIFESTYLES

PROPERTY MANAGEMENT

REAL ESTATE TAX ATTORNEY

ROOFING

PROPERTY MANAGEMENT SPECIALISTS 847-845-6067

MCCRACKEN MCCRACKEN BEHRENS (312) 263-4308

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

www.Pmgrs.com

www.mmbtaxlaw.com

PROPERTY SPECIALISTS INC. (847) 806-6121

SARNOFF & BACCASH 312-782-8310

(630) 633-5450

Attorneys at Law www.sarnoffbaccash.com

Concentrating in Property Tax Appeals since 1976

ROLLING MEADOWS OFFICE WOODRIDGE OFFICE

www.psimanagement.net

WORSEK & VIHON LLP (312) 368-0091

REALMANAGE 1(866) 473-2573

www.wvproptax.com

Roofing, Siding & Windows www.aaexs.com

AMERICAN BUILDING CONTRACTORS, INC. (847) 670-1887 Roofing • Siding • Windows • Gutters Maintenance • Capital Budget Projects A+ BBB Rating www.abc-usa.com

www.realmanage.com

RESERVE STUDIES

REALTY & MORTGAGE CO. COMMUNITY ASSOCIATION MANAGEMENT

BUILDING RESERVES INC. 1 (877) 514-8256

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

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

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

VILLA MANAGEMENT 847-367-4808 We manage so you don't have to! ® Since 1976. 7370 N Lincoln Ave., Suit A, Lincolnwood, IL 60712

www.superiorreserve.com

HAMMERBRUSH PAINTING & CONSTRUCTION (630) 320-9676

RESERVE ADVISORS, INC. (312) 625-4958 A remarkably simple reserve study system Custom, Comprehensive Studies Conducted by Professional Engineers

M&T EXTERIORS INC. (331) 248-0447

Long-term Thinking. Everyday Commitment.

Roofing Siding Windows and Service. www.mt-exteriors.com

ROOFING ACTIVE ROOFING CO., INC. (773) 238-0338/(708) 430-8080 Established 1965 Maintenance & Repairs Roofing/Sheet Metal/Tuckpointing www.activeroofing.com

www.elliottlaw.com

ADAMS ROOFING PROFESSIONALS INC. (847) 364-7663

KSN TAX (847) 537-0500 www.KSNLaw.com

CONDO LIFESTYLES

Concrete & Masonry / Roofing & Siding www.Hammerbrush.com

Contact Corinne Billingsley corinne@reserveadvisors.com www.reserveadvisors.com

ELLIOTT & ASSOCIATES (847) 298-8300

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

www.villamgt.com

REAL ESTATE TAX ATTORNEY

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

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560

TAIRRE MANAGEMENT SERVICES (847) 299-5740 tsutton@tairremgmt.com

CSR ROOFING CONTRACTORS (708) 848-9119

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

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

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

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.


SERVICE DIRECTORY

ROOFING

SIDING / RENOVATIONS

TOWING

PROHTOP ROOFING (847) 559-9119

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

CONTRACT TOWING (779) 707-6935

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

Window and Related Masonry Interior & Exterior Doors | Siding & Gutters

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

www.woodlandwindows.com

SITE MAINTENANCE, INC. (847) 697-1077

TV-BULK CABLE & SATELLITE

www.sitemaintinc.com

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

S&D ROOFING SERVICE (630) 279-6600

Siding & Gutters / Wood Replacement Welding & Railings / Snow Removal "No Job Too Big or Too Small" service@midproservice.com / www.midproservice.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

SNOW & ICE MANAGEMENT ACRES GROUP (888) 231-1300 / (847) 526-4554

UPSTREAM NETWORK 844-55-STREAM www.upstream.network

XFINITY COMMUNITIES 1 (800) XFINITY For more information E-mail: xfinity_communities@cable.comcast.com www.comcast.com/xfinitycommunities

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

Professional Landscaping / Snow and Ice Management www.acresgroup.com

WASTE SERVICES

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

SP+ (773) 847-6942

LAKESHORE RECYCLING SYSTEMS (773) 685-8811

SECURITY SERVICES ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

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

WINDOWS/REPLACEMENTS

THE WINTER WERKS (630) 241-0001

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

www.mancioneinc.com

www.admiralsecuritychicago.com

SIDING / RENOVATIONS

SWIMMING POOLS

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

SPMS (630) 692-1500

Roofing, Siding & Windows www.aaexs.com

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

INSIDE-OUT PAINTING CONSTRUCTION & ROOFING (630) 406-3000

Roofing, Siding & Windows www.aaexs.com

D-WING CONSTRUCTION (630) 397-8889

Heaters Pumps • Repairs • Chemicals Pool Maintenance • Complete Water Analysis Pool Guards, Inc. ross@spmspools.com

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

FORDE WINDOWS AND REMODELING, INC. (847) 562-1188

TREECARE

Trusted Window Replacement Services Since 1987 www.fordewindowsandremodeling.com

SAVATREE 847-729-1963

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

www.savatree.com

www.insideoutcompany.com

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

www.LakeshoreRecyclingSystems.com

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

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CONDO LIFESTYLES

by Pamela Dittmer McKuen

LEGAL, LEGISLATIVE AND CASE LAW UPDATE…

Building Relationships is Critical to Positive Outcomes Legislators and activists presented an update on the newest laws impacting community associations and how they came to pass at the recent 37th Annual Illinois Condo-HOA Conference & Expo presented by the Community Associations Institute of Illinois. In addition, they reviewed recent case law that significantly impacts the life and governance of Illinois associations.

A

n underlying message was the importance of the entire industry participating in the legislative process to assure that laws are an enhancement to the association lifestyle. On the panel were association attorney Patrick Costello of Keay & Costello, P.C.; and CAI lobbyist Jeffrey Dixon, president at Dixon and Company. Two state legislators were also in attendance: Rep. Kelly Burke (36th District) and Rep. Margo McDermed (37th District). Costello began by summarizing the role of the 16-member CAI Legislative Action Committee: We as a group review various pieces of legislation. We work with Jeff Dixon, our CAI

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lobbyist, meet with legislators, make suggestions as to verbiage, and help advance pieces of legislation that are beneficial to our clients, our members and our industry.

Legislative Overview & Need to Get Involved Dixon gave a general overview of the 101st General Assembly, which has a Democratic supermajority. Democrats control the Senate and the House of Representatives, and the new governor, J.B. Pritzker, is a Democrat. The Republican leaders have pledged to work with Gov. Pritzker. “We are in the second month of this session,” Dixon said in February. “Already there have

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been about 6,000 pieces of legislation introduced so far. Of that 6,000, probably about 20 bills affecting community associations we are tracking on a regular basis. In my job, I attend committee meetings, I testify on CAI’s behalf as to whether we are for or against a piece of legislation. Typically, we try to work with a legislator if there is a concern to make amendments to a bill.” “The pace will pick up during the spring to get bills out of committee and through the two chambers before the adjournment date of May 31,” he said. “We still expect a lot more bills that are going to affect this industry, and that is why it is important you folks are involved in this process,” he said. “It’s important to have relationships. It’s important to know your legislators. This is the time to do it because there are so many new faces in Springfield. Take an hour out of your day. Make a phone call. Invite your state representative to come to your place of business.

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.


L E G A L U P D AT E

Show them around and talk about what you do. It makes a big difference because they are hearing from other organizations, and they may have a different opinion than you do.” He continued: “I’m your eyes and ears in Springfield, but when a legislator hears from a constituent, it means a lot.” Constituents can monitor the progress of proposed legislation themselves via the Illinois General Assembly website, www.ilga.gov. They also can fill out witness slips online to express their support or opposition.

Words from the Legislators

are talking about your lives. Your home is so personal, and that’s why feelings run so high.

Legislation in 2018 (most did not pass) If recent legislative concerns sound familiar, they are. Hot topics arise again and again, sometimes with slight changes, but in 2018, they didn’t go very far. Despite the number of bills relating to community associations that were introduced, perhaps 50 or so, only one was passed: The age at which a person can be a licensed community association manager was reduced from 21 to 18.

Here’s a synopsis of bills that did not pass in 2018: Five bills making additional changes to Section 19 of the Illinois Condominium Property Act failed. In 2017, Section 19 was expanded to require the disclosure of owner email addresses and telephone numbers upon request. It also reduced the length of time within which such request must be filled, from 30 days to 10 business days. The City of Chicago, however, reacted with a municipal ordinance under its home rule authority which negated the provision for email

The two representatives introduced themselves and their experiences representing the community associations in their districts. An edited transcription of their remarks follows: Representative Burke: In my district, I have more condominium associations than homeowner associations. One of our most popular events is a condominium workshop, which we’ve done twice. We’ve had a mix of owners come out and a lawyer to answer questions. In the course of that workshop, I met a couple of owners in a development in Oak Lawn. They had complaints as simple as we don’t know when the meetings are, we haven’t had an election in two or three years. Is this true? I don’t know. It’s what these folks are telling me. I made an attempt to contact the board president, and I asked Pat (Costello) for some verbiage. I got a letter back from the board’s attorney, and it was SO aggressive. I felt sympathetic to the owners. I’m not anti-, but I tell you for a legislator to get a response like that when they are just trying to help colors how that legislator feels about legislation that associations and boards support. This is just an example of why you see legislation that make you ask, “Where the heck did that come from?” It came from someone being very frustrated and reaching out to their representative.” Representative McDermed: We do have condos in my district, but we have a lot of HOAs. Most new development tends to involve an HOA. A lot of what I hear is “I don’t want my information to be revealed when requested from the condo board.” In HOAs, it’s the opposite. It’s “How can I get in touch? I have this issue I need to bring forward. I need the list.” I think I’m going to have to come down on the side of you need to be able to contact members of the HOA, and for there to be a process where folks who have something to say have the ability to get it out there. I am not the new kid on the block. This is my fifth year in the legislature, but I have not served on the House Judiciary Civil Committee before. I’m looking forward to getting up to speed. My main goal today is to learn what are the issues and how do you feel about the issues, so I can be a good representative and a really effective member of the committee. I know we

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

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addresses and telephone numbers. “It’s a little concerning you could be within a half a mile of someplace and have different rules regarding disclosure of documents,” Costello said. Other bills that did not pass: three bills making changes to manager licensing, three bills regarding attorney fees and collections, one bill allowing term limits for board members in common interest communities, one bill about disclosures in resales in common interest communities, one bill about emotional support animals, and one bill modifying the threshold number of units before the association must employ GAP accounting.

Legislative Outlook for 2019 Greater legislative action is expected in 2019. The bills proposed thus far address a wide variety of topics. Costello enumerated several and offered commentary. HB-29 (Rep. Andre Thapedi, 32nd District) prohibits local government units from overriding specific portions (formerly HB-189, now Public Act 100-292) of the Illinois Condominium Property Act or the Common Interest Community Association Act. “It does create some uniformity,” Costello said. “If other municipalities follow Chicago, we

could conceivably have 50 different versions of Section 19 in the state, and that would be problematic.” The amended Section 19 continues to be controversial, particularly the emails and phone calls addition. Some people want them included, and some people want them kept secret. “I don’t think we can lose sight of the fact these entities we represent and work with are membership groups,” Costello said. “They are corporate entities where people have an ownership interest and membership rights. In a corporate sense, you are shareholders. You can know who the others are and you can contact them. I know there are people with fears and concerns. I don’t share all those. You can send me an email any time you want. If I don’t know you, I can delete them.” HB-50 (Rep. Andre Thapedi, 32nd District) addresses multiple written contract requirements for associations. “This bill is a good concept, but we need to look at some of the specifics,” Costello said. HB-1466 (Rep. Gregory Harris, 13th District) will authorize boards to reallocate the percentages of ownership in a condominium association solely for the purposes of real estate taxes, based on the square footage of each unit. Further investigation into the origin of this

bill showed it was inspired by an unusual allocation of percentages of ownership in a small association. Owners of vastly different square footages are taxed identically. “I agree this is unfair, but I happen to believe there are other ways to pursue this that would be a lot better,” Costello said. “The other concern we have is the 30-story building where an 1,100-square-foot unit on the 30th floor that faces the lake has a higher percentage of ownership than the first-floor unit that has 1,200 square feet. Value is supposed to be the determining factor in establishing percentages of ownership. I’m concerned this bill could have some really bad unintended consequences.” HB-2721 (Rep. Jennifer Gong-Gershowitz, 17th District) amends the Illinois Condominium Property Act and the Common Interest Community Association Act to allow buyers of a resale unit to request a copy of the association’s reserve study or a statement that the association has not had a reserve study in the past 7 years. “Thankfully, it changes both documents, which is something we are trying to do with most legislation, so we don’t have two separate sets of guidelines for the same thing,” Costello said. A bill that doesn’t specifically apply to community associations is HB-3671 ((Rep. Andre Thapedi, 32nd District), the Assistance and

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

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L E G A L U P D AT E

Service Animal Integrity Act. It will provide certain instructions and protection for landlords in dealing with requests for service and assistance animals. CAI hopes community associations can be included in this bill. “CAI National has attempted to work with HUD to provide better definitions and better structure as to what type of information must be exchanged in order for the emotional support animal to be granted, so associations are not violating Fair Housing laws, but there are a lot of murky areas,” Costello said. “If you get it wrong, the penalties are pretty high.” Among other bills: HB-2844 (Rep. Keith Wheeler, 50th District) will cap fees on condominium resale documents. The fees can be substantial, and several class action lawsuits are in the works. HB-2919 (Rep. Michael Zalewski, 23rd District) will bar local governments from enacting regulations that prohibit or restrict short-term rentals in most situations. HB-2260 (Rep. Sara Feigenholtz, 12th District) provides that subject to appropriations, the Illinois Ombudsman may hire a staff member.

Recent Case Law Highlights The courts are all over the board when it comes to interpreting Section 9(g) of the Illinois Condominium Property Act, the section that

refers to foreclosure sales and the association’s ability to recover six months of back assessments unpaid for the original owner. Arguments remain over the exact procedures that must be followed, what constitutes “prompt” payment, whether “prompt” payment is a requirement to extinguish the lien, and whether attorney fees can be included in the amount owed. “If anyone tells you they know definitively what’s going to happen to an account post-foreclosure when there is delinquent amounts, I guarantee that can’t be true because the ball is constantly moving,” Costello said. In bad news for new construction defects, the Supreme Court overruled prior case law by saying associations cannot file suit against subcontractors for breach of implied warranty of habitability. Breach of habitability is part of a contract, and there is no contractual relationship between the association and the subcontractors. In another courtroom, a plaintiff brought a fair housing claim against her association for failure to accommodate her disability of PTSD.

She further maintained she did not have to prove her disability and the association could not contest her statement of disability with testimony and expert witnesses. Both trial and appellate courts said she did.

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who have a disability against discrimination,” Costello said. “If you don’t have a disability, why do we have to go down the rest of this road about why you have to have an accommodation?” Boucher v. 111 East Chestnut Condominium Association is both convoluted and confounding. Costello urged attendees to read and re-read both the case and the commentary. In part, the board fined an owner for making inappropriate and disrespectful comments to the association’s employees. A hearing regarding the matter was video- and audio-recorded. The owner’s attorney requested and was denied the recordings. In court, the owner claimed he was merely stating his opinion under his First Amendment rights. He prevailed on that point. The courts also determined: An executive session is a meeting of the board; minutes must be taken at all meetings, even those closed to the membership: video and audio recordings constitute minutes; minutes must be turned over upon request. “There are many takeaways from this case,” Costello said. On the positive side, courts continue to favor arbitration clauses and will try to push parties in that direction before going to litigation. Y

“The design of the FHA is to protect people

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by Michael Kriebich Kovitz Shifrin Nesbit

Bed Bugs, Revisited: Tiny Pests, Big Problems

O

all normal means of bed bug transportation, and once in, these tiny 5 millimeter pests can live for months given favorable temperatures and feeding.

Bed Bug Background Declared a public nuisance by the city of Chicago in 2013, bed bugs are an ever-present concern, especially for condominium associations located in high rise buildings. Though no association, not even a small three unit association, is immune from the effects of these little pests, high rise buildings face the greatest threat due to the ease in which bed bugs migrate from one unit to the next. Bed bugs are very small and difficult to detect, and thus make good hitchhikers. They can be brought in to associations by unit owners and visitors alike, and are most often introduced by travelers who unknowingly picked them up in more public venues (think hotels, taxis, trains, airplanes, etc.). Pets, bags, and clothes are

Relevant Law For associations in the city of Chicago, a Bed Bug Ordinance was adopted in 2013 in response to the emergence of bed bugs in community living environments. The ordinance requires condominium associations and cooperatives to take specific action, including: • the establishment of a pest management plan for the detection, and • inspection and treatment of bedbugs within their buildings. Further, condominium unit owners, and lessees with a proprietary lease in a cooperative, are required to notify the governing association of known or suspected bed bug infestations in their unit, and must cooperate with the association in the control, treatment, and eradication of bed bug infestations. There remains little case law in Illinois providing direction from the courts on what further obligations an association has related to bed bugs. What is clear is that associations are best protected from potential liability

o you have a plan to address bed bugs in your association? These tiny bugs create anything but a small problem if not addressed aggressively and eradicated thoroughly. Though the below discussion is most relevant to large associations, all association board members should take note and consider implementing a bed bug plan to protect their association.

HH

when they: • have a bed bug plan or policy in place, • actively work to prevent infestations, and • aggressively address any reports of bed bugs are best protected from potential liability. The courts have made it plain that doing nothing is not an option. The association must be involved in mitigation if it hopes to successfully insulate itself from liability in legal actions brought by its residents. The Association’s Plan The association’s pest management plan should give clear guidance to all residents as to the steps to take if they suspect they have a bed bug infestation. This plan should include: • instructions on how to report an infestation, • a description of the inspection process and options, • a description of the treatment process and options, and • a summary of resident rights and obligations. Further, this policy should fully explain who is financially responsible for any costs that may be incurred in this process and how those costs will be billed.

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BOARD BASICS

Prevention Preventing a bed bug infestation is a pro-active endeavor, which requires the cooperation of the entire association. The city of Chicago, the Environmental Protection Agency, and the Department of Housing and Urban Development have each published educational materials that are accessible online, and can be shared with association residents seeking more information. Many bed bug extermination companies offer preventative routine inspections at a reduced rate, which can give peace of mind to the owners. However, the Illinois Condominium Property Act only grants the Board the right to access each unit as may be necessary for the maintenance, repair or replacement of any common elements or for making emergency repairs necessary to prevent damage to the common elements or to other units. Therefore, unit owners are not obligated to allow access to the association if an infestation has not already identified. Detection If bed bugs are detected in a unit, responsive inspections to the unit and all units surrounding a unit should be performed as quickly as possible to determine the extent of the problem and to prevent it from spreading. In this scenario, the association can demand access to a unit to protect the common elements and other units and, if an owner refuses to grant such access, file a lawsuit seeking a court order granting access.

Inspections are performed by human inspectors or by specially trained bed bug sniffing animals. Animal inspections can be less time consuming and may result in detection of infestations that are located within furniture and are not visible to human eyes. Human inspections may be beneficial for unit owners who have sensitivities to exposure to animals. Treatment Beg bug treatments are notoriously invasive procedures. Furniture, linens, clothing, and other unit furnishings that could harbor stowaway pests, possibly even the baseboards, must first be removed. Common treatments involve the use of chemicals throughout the unit and then heating the unit to eliminate the bed bugs. A professional bed bug exterminator should be consulted to determine the most effective treatment plan for your association, given the scope of the infestation. In Conclusion As the issue of bed bugs comes before the courts more often, rulings will inevitably provide more direction. Until that time, associations must continue to take the threat of bed bugs seriously and develop and follow a clear and known plan. The cost of prevention, detection and remediation is far less

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019Š.

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than what costs may be incurred due to an association’s failure to plan accordingly. If your community has not adopted a bed bug management plan, you should consult your association’s attorney to develop a plan. Y

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MCD Pool Party Featuring CondOlympics

March 15, 2019 / Pyramid Club, Addison

O

ver 300 guests joined MCD Media at the annual MCD Pool Party featuring Condolympics on March 15th 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 Alliance Association Bank. The group from Property Specialists, Inc. raised an amazing amount (over $4,000) of donations for Special Olympics by holding creative internal contests complete with a donation board in their ofďŹ ce.

Y Pictured here are (from L to R) Event Announcer Tom Purrazzo - Hillcrest Management, Head Scorekeeper Kevin block - ILT Vignocci, Inc., Event Chairperson Cathy Ryan - Property Specialists, Inc. and Lead Judge Sheila Malchiodi -Inside Out Painting Construction & Roofing.

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Y Shown here is the Best Dressed (Silver Medalists) Contest winners from Inside Out Painting, Construction & Roofing.

Y Shown here are the Best Dressed Contest winners from Genesis Construction and Complex Painting.

Y Shown here is the group from Property Specialists, Inc. with Splash the Special Olympics Duck Derby Mascot.

Y Pictured above is the group from Worsek & Vihon, LLC.

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019Š.


EVENT HIGHLIGHTS

Y Shown here is the group from Xfinity Communities.

Y Shown here is the group from Hillcrest Management and J.C. Restoration.

Y Pictured above is a group from Smithereen Pest Management Services

Winners of the 2019 Condolympics events are listed below: Special Olympics Donations GOLD Property Specialists, Inc. #1 & #2 SILVER ConTech – The Fire Alarm Co. BRONZE MI Roofing & Construction Pool Tournament GOLD Ally LaHood & Lane Wright SILVER Tom Middlestadt & Valerie George BRONZE Melissa Brooks & Kevin Brooks Connect 4 GOLD Marina Sturm SILVER Jen Olson BRONZE Jessica Towles

Dart Tournament GOLD Fred Schroeder & Dani Teschke SILVER Tony Dister & Lana Shevchuk BRONZE Cathy Ryan & Michael Strauss Beads Game GOLD Joe Tasic SILVER Kelly Koehler BRONZE Ally LaHood Bean Bag Challenge GOLD Jack Dorcic & Tom Spring SILVER Trevor Burns & Paul Nicotra BRONZE Phil Bengsten & Jessica Baker

Skee Ball GOLD Kim Hart SILVER Linda Tsacalides (King) BRONZE Michelle Courtney Best Dressed Contest GOLD Genesis Construction Complext Painting (Scooby Doo) SILVER Inside Out Painting Roofing & Construction (Kilted Painters) BRONZE Hillcrest Management J.C. Restortation (Condolympics Green)

Committee Members Cathy Ryan Chairperson, Kevin Block – Head Scorekeeper, Sheila Malchiodi, Marina Sturm & Michele DuBois -Lead Judges, Dennis Baier, Roy Betz, Mitzi Butner, Tony Dister, Tracy Davis, Vickie Farina, Erica Horndasch, Brittany Kojzarek, Ally LaHood, Toni Ivanov, Melanie Johnson, Jack Mancione, Phil Mariotti, Mandy Manalli, Jen Olson, Jim Payne, Tom Purrazzo, Jenny Ruth, Tom Skweres, George Toubekis, Diane White and Ed Zamarippa. 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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312-342-1858 btlarchitects@gmail.com | www.btlarchitects.com No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.

04.19

CONDO LIFESTYLES

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CONDO LIFESTYLES

by Pamela Dittmer McKuen

How Ethical Are You? You Might Be Surprised! MANAGERS AND BOARD MEMBERS NEED TO DO THE RIGHT THING. In Illinois and several other states, community association managers must currently be licensed. The trend, nationally, had appeared to be leaning in that direction. Although a couple of states have recently let their manager licensing laws expire and that will be the case in Illinois too, unless some legislative action is taken before the year end. In any case, the law in Illinois currently requires community managers to be licensed.

W

hy? Well, managers are responsible for a lot of money. Along with licensing, professional certifications, state and federal laws, and just plain common sense are ethical guidelines that dictate managers-and board member--behavior. But in everyday lives, there are situations that present themselves as gray areas. “Are You Sure That’s Ethical? Managers Guide of Dos and Don’ts” was one of the session topics at the recent 37th Annual CondoHOA Conference & Expo of the Community Associations Institute of Illinois. The presenters were Kara Cermak, CMCA, AMS, PCAM, senior vice president of learning and development and senior offsite community manager Illinois at RealManage, and Tom Engblom, Ph.D., CMCA, AMS, PCAM, regional account executive at Mutual of Omaha Bank and CondoCerts. “One of the reasons we have manager licensing in Illinois is because of ethics,” Cermak said. “Those of us who supported getting the license in this state did so because, unfortunately, everybody is not so ethical. At the very least we felt we could pull their license from them so they could not practice in our state if they had done something unethical.”

ARE YOU ETHICAL? Most people consider themselves pretty ethical. They are able to consider the benefits of engaging in an unethical behavior don’t outweigh the consequences of getting caught. But they might not be so ethical when no one is watching. Engblom related an experiment: You are in a private room and asked to flip a quarter four times. Each time tails comes up,

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you are given $5. How many times will you report tails? Four? Statistically, the percentage of four consecutive tails is 6.25. But, when the experiment is conducted, 30 to 35 percent of participants report four tails to receive $20. “What we don’t know is if it is inherent in our system or if it’s nurturing that causes us to be ethical,” he said. Either way, managers, management company owners and association boards should take care not to leave their figurative cookie jars unattended, Cermak said. “Sometimes we might have someone who is otherwise ethical but they have a particular situation,” she said. “Maybe their child is addicted to drugs, and they have to pay a drug dealer. Maybe the spouse has a gambling addiction. The money is there, and they always think ‘I’m going to give it right back.’ Don’t give them an opportunity.” Two real-life examples: A Chicago property manager was charged in federal court with fraudulently pocketing more than $150,000 in illegal fees from a condominium association. He also allegedly skimmed from the association’s reserve account by paying himself money to which he was not entitled. He is suspected of pilfering an additional $750,000 from eight other associations, according to the complaint. Another Chicago property manager embezzled $228,000 from unit owners over a two-year period, according to a lawsuit filed by residents. “There are many ways managers can fly under the radar,” Cermak said. “As an example, our state is the only state where we can take possession of a unit if the owner hasn’t paid

04.19

association fees, and we can rent it out. If the board isn’t paying attention, they might not even know the unit is being rented, and someone can take that money.”

WHAT ARE ETHICS? Webster’s Ninth New Collegiate Dictionary defines ethics as “the discipline of dealing with what is good and bad, with moral duty and obligation; a set of moral principles or values; the principle of conduct governing an individual or group.” Engblom added the word is derived from the Greek word “ethos,” which means character, and the Latin word “mores,” or customs. One of the steps toward earning an Illinois community association manager license is to pass the Certified Manager of Community Associations examination, administered by the Community Association Managers International Certification Board. Along with CMCA certification is a Code of Ethics. In addition, the Illinois Community Association Manager Licensing and Disciplinary Act, Illinois Condominium Property Act and the Common Interest Community Association Act mandate specific practices. Cermak and Engblom elaborated on a variety of situations frequently encountered by managers and board members, and how to avoid the pitfalls. » Act in the best interest of the association, not the interest of one person. Or, as Cermak often tells her managers, “A good rule of thumb is ‘Do for one, do for all.’”

On occasion, you might find a gray area such as in the area of waiving late fees. If someone asks you to waive a late fee, even a hard-working board member, look at the circumstances of the individual and the governing documents--which may or may not permit such action. “It’s a super-good thing to say to your homeowners when they ask you, ‘I’m sorry, I have to have ask you to put that request in writing and I have to bring it in front of the board,’” Cermak said. “It’s much better for me

No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.


L E G A L U P D AT E

to have said that than to do something the board might find unethical. Some associations might be fine with waiving the late charge, but others aren’t. If you aren’t completely clear about whether an action is ethical or not, don’t do it.” » Do not solicit referral fees or tangible property and don’t accept them if offered. Doing so creates the appearance that the recipient of such gifts is being influenced to direct business toward a particular individual or company.

Suppose a painting contractor is on the premises, and a board member asks for a bid to paint his living room and kitchen. The contractor offers to throw it in with the rest of his work. “The board member needs to say no,” Cermak said. “Just the appearance of even having that painter inside a board member’s home while a project is going on is a bad idea.” Asking that contractor to finance the association holiday party is totally unethical. “Unfortunately, I see this a lot,” Cermak

said. “The belief is, ‘They owe us. They make a lot of money from us.’ Your vendors are working for the money. They gave you a bid, hopefully, and you signed a contract. They are going to do the work for that dollar amount, and that’s it. They don’t owe you anything beyond that signed contract.” What if a vendor shows up at the association’s holiday party and brings a large-screen television as a gift for the clubhouse? “That’s dicier,” Cermak said. “If a contract is on the line, thank you but no thank you. If a contract isn’t on the line, and they are thanking you as a community, maybe it’s okay. It’s really something the board should decide.”

law if you’re not an attorney. End of story.” Whether or not a community association manager is qualified to fill out an RFP is a questionable matter. Engineers and architects are expensive, especially for a small association. Depending on the project, you might be able to get enough free information and advice from contractors to do a good job. “Just be careful you’re not completing an RFP for something you’re not knowledgeable about,” Cermak said. “With things like roofing and masonry, there could be new products out there you’re not aware of. You might be doing your association a disservice that lasts 15 or 20 years.”

» Don’t provide professional advice or services beyond your skill set. Community association managers cannot dispense legal opinions because they are not attorneys. But can you advise a board as to your past experience in a similar situation?

» Avoid conflicts of interest. It’s better to err on the side of disclosure than to not inform an association about any connection, no matter how remote, to a business under consideration. If you have a relative who works for a particular company or if your management company owns a maintenance division, speak up.

“I think you can, but really have to be very careful,” Cermak said. “You can’t practice

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04.19

“My ex-husband is a carpenter,” Cermak

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said. “Before he was ever permitted to bid on any projects in our company, it was disclosed to the board. ‘This is what he does really well. Do you want a bid from him?’ Some associations said yes, some associations said no. But I disclosed it. Why do I even involve myself in asking if they want him to bid? Because he’s good at his job. But they get to say yes or not.” In any situation, it’s the board who ulti-

mately makes decisions. If community association managers believe the board is making an inappropriate decision, voice your concerns and perhaps ask them to enter those concerns into the minutes. “The bottom line is, if you’re not completely clear about whether to do something or not, don’t do it,” Cermak said. Y

The 10 Commandments of KAT in Illinois (KAT = Kara and Tom)

1. I am the Illinois Department of

Financial and Professional Regulation, and I brought you out of the land of un-licensed community managers. You shall have no other licensing before Me.

2. You shall not make for yourself a

counterfeit license, or any likeness of anything that is in Illinois and you shall not manage community associations without your valid license.

3. You shall be knowledgeable, act,

and encourage clients to act, in accordance with any and all federal, state, and local laws applicable to community association management and operations. The Laws of Nature are great too.

4. You shall not knowingly misrepre-

sent material facts, make inaccurate statements or act in any fraudulent manner while representing client associations or acting as a CMCA.

5. You shall honor your licensing and code of ethics that your days may be long upon the land in Illinois without fine or penalty.

6. You shall not provide legal advice to client associations or any of its members, or otherwise engage in the unlicensed practice of law.

7. You shall promptly disclose to client

associations any actual or potential conflicts of interest that may involve the manager.

8. You shall refuse to accept any form of gratuity or other remuneration from individuals or companies that could be viewed as an improper inducement to influence the manager.

9. You shall conduct yourself in a pro-

fessional manner at all times when acting in the scope of your employment in accordance with the terms and conditions of your contractual agreement and in accordance with local, state and federal laws.

10. You shall recognize the original

records, files and books held by the manager are the property of the client associations to be returned to the client at the end of the manager's engagement and maintain the duty of confidentiality to all current and former clients.

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No part of the publication may be reproduced whatsoever without written consent from the publisher. All material herein is copyrighted 2019©.


L E G A L U P D AT E

by Dawn L. Moody and Gabriella R. Comstock - Keough and Moody, PC

Rule Enforcement Following Boucher With association living comes a common requirement that owners adhere to certain rules and regulations for the betterment of the community and its residents. From time to time, owners violate those rules and regulations, which results in the imposition of fines.

A

s recently addressed in the 2018 First District Appellate Court Case of Boucher v. 111 East Chestnut Condominium Association, Inc., 2018 IL App (1st) 162233, part of a board’s fiduciary duty is to ensure a fair process is followed relative to the imposition of sanctions in response to a violation of the rules and regulations. The Association should routinely review their rules and regulations in order to ensure that its rules and regulations continue to meet and address the needs of the community and provide a

fair, defined process relative to the consequences, which will occur as the result of a violation of those rules and regulations. First and foremost, restrictions contained within rules and regulations should be clear, concise, and consistent with the association’s declaration. Owners should have an understanding of what conduct is prohibited. Although many association restrictions are essentially common sense, i.e. you need to immediately pick up after your pet, many residents need to be reminded of these restrictions nevertheless and advised that penalties

may be imposed for non-compliance. If you, as a board member or manager, do not understand what is required by a particular rule, that is a sign that your rules and regulations need to be updated and revised. Similarly, if you are aware that a rule no longer meets the needs of the community or is no longer consistent with the law, i.e. satellite dish restrictions, solar panel restrictions, or children restrictions, your rules and regulations need to be updated. Next, the rules and regulations should outline how potential violations can be reported. Often, management and/or board members perform walk-throughs of the property in order to note conditions and violations. In addition to those walk-throughs, a process should be available by and through

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CONDO LIFESTYLES

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CONDO LIFESTYLES

which owners can report violations of the rules and regulations. That process should include the filing of a signed complaint, electronically or otherwise, which contains specific facts as to what happened, when and by whom. Complaints should not be accepted anonymously, as witness testimony may be necessary for enforcement efforts. Once an alleged violation has been reported, notice should be provided to the alleged violator of the violation. This notice

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should identify the alleged violation, state a time frame to address the violation, if applicable, note the potential sanction(s) for continued non-compliance, and explain the action(s) necessary to request a hearing with the board. A fine should not be imposed against an owner’s account until the owner has been given the opportunity to request and attend a hearing with the board. The rules and regulations should set forth a hearing procedure, which is consistent with the terms of the

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association’s declaration, if a procedure is set forth therein, and should be a procedure that is reasonable for both the board and alleged violator to follow. By way of example, hearing procedures, which require the board to hold a hearing within seventy-two (72) hours of a request for a hearing are neither reasonable for the board, nor the owner to follow. In addition, the hearing procedures should address issues, such as whether, and upon what notice, an owner may be represented by counsel at the hearing and/or bring a court reporter. Finally, the hearing procedures should outline a reasonable time frame for the board’s written determination, which should address whether the violation stands and whether a fine is to be imposed. As noted by the Court in Boucher, hearings should be conducted in a fair manner. It is the purpose of a hearing for the board to determine whether a violation of its governing documents occurred and whether a fine is appropriate. In that regard, the alleged violator should be given the opportunity to explain his/her position with respect to the alleged violation. That opportunity may include the ability to review the evidence in advance of the hearing date. Sanctioning an owner based upon an anonymous complaint, for a violation which cannot be independently verified, is not a fair process. In addition, if the board intends to review the current violation in conjunction with the alleged violator’s past conduct, the alleged violator should again have the opportunity to explain his/her past conduct. To put it simply, boards should essentially follow the Golden Rule and provide any alleged violator with the same sort of hearing its members would receive if the roles were reversed. Disputes regarding violation and fine procedures continue to arise in the State of Illinois, as well as in jurisdictions across the United States. The actions of the association in the content of rule enforcement are often viewed as heavy-handed and potentially in breach of the board’s fiduciary duty. In order to combat those disputes, and hopefully stay out of the courtroom as a result, boards should review their rules and regulations and procedures to confirm that its rules and rule enforcement efforts are reasonable, fair, and followed. Y

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