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Buildings Environments $ autumn 2016

The Habitat Company Celebrates 45 Years S P E C I A L F E AT U R E S

College of DuPage Naperville Center Receives Sustainability Recognition Water Conservation Can Help Budget Challenges Chicago Council Adopts Airbnb and VRBO Regulations

Emerald Award Winners Announced

Legal Update for Community Associations

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ChiCagoland BuildingS & environmentS




Tom Engblom CMCA, AMS, PCAM VP, Regional Account Executive 312-209-2623 Toll Free 866-800-4656, ext. 7498

table of contents COVER STORY

03 The Habitat Company Celebrates 45 Years By Michael C. Davids PROPERTY PROFILE

Member FDIC Equal Housing Lender


07 College of DuPage Naperville Center Receives Sustainability Recognition By Michael C. Davids INDUSTRY HAPPENINGS

12 Energy Data Workshop Held 13 Emerald Award Winners Announced Complied by Sherri Inadolo and Michael Davids 14 Editors Message 15 Directory Advertising THE LANDSCAPE BUYER

19 Water Conservation Can Help Budget Challenges By Michael C. Davids S P E C I A L F E AT U R E

21 Manor Homes of Chatham Open the Door to Successful Project Management By Michael C. Davids L E G A L U P D AT E

23 Legal Update for Community Associations By Mark Swet & ACTHA Legislative Committee L E G A L U P D AT E

25 Chicago Council Adopts Airbnb and VRBO Regulations By Howard S. Dakoff Esq. and Nick P. Bartzen, Esq.

on the cover... Overview of Chicago's River North neighborhood where The Habitat company has developed several of its notable buildings including East Bank Club, Kinzie Park and Hubbard Place. Photo Credit: The Habitat Company





1409 Joliet Road, Lemont, Illinois 60439

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reuse | reduce | recycle autumn 2016



The Habitat Company Celebrates 45 Years From the development of South Commons, Chicago’s first successful mixedincome community in the early 1970s, to Presidential towers, a four-building, 2,346-unit, city-within-a-city, in the mid-1980s, our founder, daniel levin, habitat’s Chairman and a major figure in Chicago’s real estate market was ahead of his time – paving the way for growth and development across Chicago.


ith a continued focus on raising the bar in multifamily development and management, Habitat has become one of the most respected residential firms in the United States. Today, with over $3 billion in assets under management and 800 team members, Habitat manages more than 25,000 residential units across many property types, including luxury rental apartments; condominiums; and affordable, public and senior housing. Habitat also developed the office building at 350 West Hubbard Street that is home to its regional office as well as the

East Bank Club, a prominent health & social club located on Kingsbury Street that boasts over 11,000 members including some of the most well- known and influential Chicagoans. The Habitat Company is widely known for its commitment to providing excellent service to both owners and community residents.

Growing the business If you haven’t already heard, The Habitat Company is quickly becoming a top player in the southeast apartment market by recently taking over management

Y Shown here is Hubbard Place, a 43-story, 450-unit luxury high rise apartment building in Chicago that is a joint venture with Multi-Employer Property Trust (MEPT) and a major institutional investor. Located at 360 W. Hubbard Street in Chicago's vibrant River North neighborhood, the property is managed by The Habitat Co. and recently won a CAMME award and is a Silver LEED certified building. Completed in 2013, Hubbard Place also received an award for Best New Residential Building from the Friends of Downtown

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echoed Mr. Levin’s comments and added, “Mutual respect, honesty and integrity are cornerstones of our company.

Photo Credit: Rada Architects

Housing for Everyone

Y Shown here is 400 East Randolph Condominium building that is managed by Habitat Company. With over 2000 residents and 760 units, 400 Randolph is known as the largest condominium association under one roof in Chicago. The lit dome is the 400 Club, a state of the art health club located in the building. duties for more than 5,000 units in Florida and Alabama. In a span of just five months, Habitat expanded its national management portfolio by 25 percent after adding 12 rental communities in Birmingham, Ala. and Tampa, Fla. This is particularly exciting as it will provide for continued growth opportunities for our team members—a constant focus for Habitat.

Misson & Core Values Reflecting back on how he and The Habitat Company have sustained their success over the years, Mr. Levin shared

his sentiment that “No project is only an investment in real estate. It is an investment in the future of the community and in the lives of the people who will live and work there.” He continued, “Our mission is to be the innovative leader in the development and management of a broad range of housing and real estate-related facilities and services. Guided by our Core Values and with a firm belief that our people make the difference, we strive for excellence every day.” Habitat President Matt Fiascone

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One of the things that makes Habitat unique is their commitment to provide quality housing for everyone. According to Jeff Head who leads their Community Development operation, “We have had a deep focus on the redevelopment and revitalization of urban rental communities. From its outset, Habitat has been a national leader in the design and implementation of mixed-income housing.” He continued, “Our dedication to providing high-quality housing in emerging neighborhoods has been shown throughout our history. Using Low-income Housing Tax Credits and other local, state and federal funding sources, we have developed projects throughout Chicago such as South Commons, Elm Street Plaza, Huron Plaza, Riverside Village and East Park SRO.” Mr. Levin said Habitat's growth isn’t something he envisioned when he built the 28-acre South Commons in 1971. He simply wanted to be in the housing business, do good work and be sensitive to the need for housing at the market rate and affordable levels. South Commons had set-asides for elderly and affordable housing; Mr. Levin managed to find the funds to finance a school and shopping for the project, and South Commons created a diverse community including African-American, Hispanic and Asian residents. Habitat’s philosophy was put to the test when the company was appointed receiver for Chicago Housing Authority in 1987. Habitat built or oversaw the development of 4,000 units of public housing as part of CHA’s Plan for Transformation before being relieved of receivership duties in 2010. Mr. Levin revealed that the CHA wasn’t happy, initially, but Habitat developed goodwill with the organization over time, remained patient and focused on the job at hand. The lessons learned from that have been applied to public housing projects in Detroit, St. Louis and Atlanta. Mr. Levin contends, “We are unique in that we try to make sure the developments we do fit in well with the neighborhood and contributes to the broader community. So, the park-like setting at Hubbard Place helps achieve that and is really an extraordinary welcome home for

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our residents there.” Fiascone added, “We do the full spectrum of multi-family work, so we develop and manage luxury residential residences like Hubbard Place. We also develop condominiums and manage condominiums.” And Habitat does a variety of affordable and public housing management. “So the diversity of what we do from a multi-family housing perspective is as broad as it can get.”

in the spirit of giving back to their

received grants and rebates for energy conservation projects from the utilities (Peoples Gas, ComEd, etc) for energy efficiency improvement projects. Their most recent development, Hubbard Place, a luxury apartment building has achieved a Silver LEED designation.

Condominium Management Habitat is responsible for the management of 4500 plus community association units. “We believe in doing things right the

first time, offers Diane White. “Whether it's ensuring a seamless transition to our services, preventive maintenance or creating and sticking to a budget, we want to delight board members at the associations we manage every step of the way. When asked about his experience with Habitat, James Jacobsen, Jr. who serves as President of 400 Randolph Condominiums said, “The partnership we have forged with The Habitat Company continued on page 28

communities and connecting with our residents, the habitat Company

kicked off a ”celebration campaign”

in February of this year with habitat

Company team members volun-

teering for resident social events at

various properties they manage.

Aside from our development work Habitat has a project management team. “We do approximately $20 million worth of capital improvement work that we oversee on an annual basis, separate and apart from the high rise development that we do. We have also moved into acquiring residential communities in the past few years.” In addition, Habitat has managed a number of successful condominium conversions.

Sustainability & Green Efforts Habitat makes every effort to be a good corporate citizen including their efforts to employ sustainable practices at the properties they are involved with and throughout the company. According to Fiascone, “We conduct baseline audits of our energy use/consumption and couple many of our capital improvement projects with energy reduction initiatives. As we work on renovation projects or infrastructure improvements we consider the overall energy use of new equipment and incorporate recycled material into projects. This philosophy goes across our communities, and lines of business. He adds. “We explore opportunities to reduce energy consumption in our communities, we communicate our projects to our residents and educate them so as to get their buy in as it relates to the implementation of our energy reduction projects.” On a number of occasions, Habitat has applied for and

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College of DuPage Naperville Center Receives Sustainability Recognition Chartered in 1965 and opening its doors in 1967, College of duPage originally formed from 10 high school districts. Since that time, it has evolved and grown into a modern, state-of-the-art institution that has provided high-quality instruction to more than one million students over the past 50 years. they are having a year- long celebration of their 50th year serving the community.


oday, College of duPage is an accredited community college that serves more than 29,000 students each term. the College, which grants nine associate degrees and more than 170 certificates in 100 areas of study, is the second largest provider of public undergraduate education in illinois. the College of duPage has six different locations across duPage County. their main campus is located in glen ellyn with satellite campuses in addison, Carol Stream, lisle, naperville and West-

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mont. “i am humbled and honored to serve this great institution,” said dr. ann rondeau, who began her tenure as the college’s sixth president on July 1, 2016.  in a statement on Cod’s website, she said, “i am ready and eager to get to work to support the students, faculty, staff, alumni and the broader College of duPage community. We are a student-centric college that believes in helping our students reach their greatest personal and professional potential.”

Unique Type of Students Community colleges such as the College of duPage cater to a unique group of students. nearly two-thirds of community college students work and attend college, as school is not generally their full-time activity. Community college students value flexibility, convenience and proximity as only a quarter of community college campuses provide on-campus housing. in order to address the needs of their students, community colleges have found it increasingly important to supplement their main campus with regional centers. these centers act as microcosms of the main campus, with distinct yet similar features that are in-sync with the campus hub.

Naperville Regional Center one of Cod’s regional centers is located in

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[ Shown here is the recently renovated College of DuPage Naperville Center. of its faculty and courses. additionally, the design needed to create more opportunities and spaces for the largely commuter student body to linger and interact, as most of their time on campus was generally transitory; students would drive in for class and then leave right after, essentially limiting their engagement with other students, faculty and staff. according to robin edward Whitehurst, the principal-in-charge of the Cod project at Baileyedward, “during our design discussion, our most important goal was to create a sense of belonging to the university by creating more opportunities for students and faculty to develop a sense of college community by providing designs that are Y Aluminum grating was one design element Y Shown here is a back-lit, three-dimensionalused on the exterior to help convey a sense logo sign standing nearly fifteen feet tall open, accessible and visuof learning and a path of discovery. which acts as a beacon to those driving by ally interesting by infusing the building. light, color, and texture throughout the campus.” naperville, ill. Bailey edward was the College of duPage naperville Center is tasked with rehabilitating the 1990 naperville comprised of a ground-floor and a lower level. the regional Center building to mirror and extend the original building, which was constructed in 1990, College of duPage’s main campus image. With a was energy inefficient as it had a non-thermally broad array of educational options offered, the broken curtain wall and uninsulated masonry. “our regional center needed to supply state-of-the-art renovation work on the building, which was comclassrooms and laboratories that offered flexibility pleted in 2015, transformed the energy inefficient and adaptability to the constantly changing needs building to one that achieved leed Certified

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status,” Whitehurst added.

Sustainable Design in Construction Projects the College of duPage is heavily involved in promoting sustainable design practices in construction projects such as their regional center in naperville as well as on construction projects elsewhere in the campus system. Whitehurst notes that several sustainable design practices were implemented during construction of the new naperville Center which included: » Promoting recycling of waste such as reducing the use of beverage containers by providing a water bottle refill station » installing low flow faucets and flush valves for water conservation » reusing parts of the building such as walls, ductwork and conduits in lieu of demolition » installing a thermally broken curtain wall to decrease the amount of energy being radiated from escaping » using native plants throughout the campus landscape, which are drought resistant and trees that provide seasonal shading » using low voC finishes

Sustainable Practices Throughout All Campuses College of duPage is committed to reducing energy consumption and implementing sustainable design practices throughout all of its campuses. in their master plan, the College has several sustainable energy initiatives which include reducing energy consumption, reducing operating costs and reducing overall environmental impact. Currently, the college has campus-wide sustainability initiatives such as recycling and rainwater detention. Bruce Schmiedl, director Facilities Planning & development at Cod, explains, “College of duPage collects campus storm water in retention ponds located throughout our campus and utilizes those water sources for landscape irrigation. in addition,

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[ Shown here is one of the buildings at the College of DuPage main campus. we allow grass clippings from mowing operations to remain, in order that the materials break down and the associated nutrients may be provided to the soils.” also, with all new construction projects, the college plans to use sustainable design practices to increase the longevity and performance of its buildings while reducing the impact of construction. many of the facilities operated by Cod have been updated and renovated in recent years, especially those at the main campus in glen ellyn. additionally, Schmiedl offered that Cod also promotes its sustainable energy initiatives throughout its sites by: » having a campus-wide commitment to instituting sustainable design practices in all future building projects » teaching sustainable design practices and concepts to architecture students » replacing parking-lot lights with high-efficiency led fixtures » investigating the installation of solar panels on select building roofs » replacing black roofs with reflective white roofs to reduce the amount of heat absorbed » having its Culinary and hospitality Center become the first culinary learning center in the u.S. to be leed certified

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Design Overview of COD Naperville Center in addition to Whitehurst, the principal-incharge on the Cod naperville project for Bailey edward, Kent locke was the lead engineer, and Susan turner was the Project manager. tim lumpp from Pepper Construction group was the project manager for the construction management team. When asked about the primary types of construction materials used in the new design of Cod’s naperville Center, Whitehurst offered, “We used two systems, primarily at the exterior. an insulated metal panel by metl-Span was installed over the existing masonry at the bump-outs and around the new glazing. We also used a rigid insulation with a stucco finish behind aluminium grating on stand-offs for the orange solid walls at the north and south facades. the new storefront window system is comprised of an insulated

glazing unit in a thermally broken aluminum frame. there is a frit pattern at portions of the glazing to diffuse light and add texture to the façade.” Whitehurst continued, “inside, we primarily kept the existing walls and structure. We created a new curved feature wall on the first floor using a blue, textured polycarbonate panel on stand-offs over a typical gypsum board wall. the ceiling is primarily aCt, with planes of brightly colored hard, gypsum board ceilings used to accentuate areas of the building, such as the entry and seating areas,

ChiCagoland BuildingS & environmentS



while the flooring is primarily carpet with lines of highlight color inset within it. these highlight lines continue throughout the building and into matching areas of vinyl tile in the science laboratories and into a vinyl plank at the student lounge. at the two entries, we built new canopies comprised of polycarbonate panels attached to a painted steel structure.”

Significant Architectural Features “When redesigning the naperville Center it was important to create continuity with the main campus while providing a stimulating learning environment,” Whitehurst said. “unlike the main campus, the building was outdated, uninviting and blended into the office park it was located in rather than standing out as a collegiate center.” in order to have the Center stand out and attract attention, the Bailey edward team created an exterior that conveys a sense of learning and path of discovery. this was accomplished through installing an aluminum grating “veil” that wraps around the building, using a bright and lively color palette and installing a back-lit, three-dimensional logo sign standing nearly fifteen feet tall which acts as a beacon to those driving by the building. additionally, the sign’s steel cage creates a moiré effect to passersby and the colorful interiors were

made easily visible through glass walls and interior lighting, in order to capture people’s attention while going past the building throughout the day and night. using eye-catching design features continued when designing the interior spaces of the Cod naperville Center. according to Whitehurst, “the objective was to create a stimulating and attractive learning environment that would get students to stay not only between classes, but within the campus in general.” Bailey edward focused on bringing in as much natural daylight as possible while creating views to the outside for as many people as possible. rooms that could take the most advantage of the views, such as public and learning commons areas, were placed along the length of the building that had the greatest amount of windows which were often made floor to ceiling to get the most natural light. natural light was also brought to the basement level through a skylight and light tubes inserted to illuminate the interiors, stairs and visually connect the different levels. Finally, bright colors from the exterior were brought into the windowless spaces to enliven them. “as a result of increased daylighting, stimulating interior environments, improved aesthetics, and captivating and unique design features, the

once drab steel and glass building now stands out as a thriving learning environment,” Whitehurst concluded.

LEED Certified the Cod naperville Center building is now leed Certified under the Bd+C new Construction guidelines. Sustainable features on the building include an improved building envelope by adding insulation, removing thermal shorts and installing new glazing, installing a high efficiency hvaC system, installing new and efficient lighting with occupancy sensors and enhanced commissioning to optimize the design and built mechanical systems and controls. Water usage was reduced through the use of low-flow toilet fixtures and faucets. highly-recycled regional and building materials, low-voC finishes and products and native-plant landscaping were also implemented to reduce the environmental impact of the building. additionally, the naperville regional Center has received an outstanding design award in american School & university’s 2015 educational interiors Showcase issue and an outstanding designs: renovation/modernization award in their 2015 architectural Portfolio issue.


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Energy Efficiency Achieved an energy simulation was performed to establish energy savings for the Cod naperville Center project, which shows a 25% reduction in energy usage. a high-efficiency packaged outdoor air handling unit with energy recovery combined with high-efficiency lighting has significantly reduced power and gas consumption at the Center. new mechanical systems have increased ventilation by 30% while improving ventilation in individual spaces. thermal cladding practices, such as insulating the exterior masonry, window heads and adding a new thermally broken curtain wall, have resulted in significantly less energy being radiated from the inside of the building.

Sustainable Transportation Efforts Support and participation in sustainable transportation initiatives is important with all types of buildings, but it’s especially important at college campuses. Cod’s Schmiedl said, “College of duPage has engaged PaCe bus service to provide stops on our campus to serve our students, faculty, staff, and members of the community. in addition, we have provided vehicle charging stations at two locations around campus, with provisions for a third station if demand rises.”

Moving Forward College of duPage will continue to promote sustainable design and practices in any future renovation or new building, as it pursues its mission of being the center for excellence in teaching, learning, and cultural experiences by providing accessible, affordable and comprehensive education. $

\ Using eye-catching design features was important when designing both the interior and exterior spaces of the COD Naperville Center. The objective was to create a stimulating and attractive learning environment that would get students to stay not only between classes, but within the campus in general.

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LEGAL UPDATE Airbnb, Board Communication, Ombudsperson & More


Buildings Environments CondoLifestyles &








Energy Data Workshop


n July 5, 2016, IREMÂŽ Chicago and USGBC Illinois, presented a 6 hour workshop, “Accessing & Using Energy Data to Improve Property Operations.â€? This program covered important cost saving, energy efficiency topics such as why energy data is important, how to access whole building energy data, how to analyze data to uncover savings,  and more. Speakers included: • Kevin Bricknell, Program Manager, ComEd • Emmy Riley, CEM, BEAP – Building Analyst, Cyclone Energy Group Y Shown here are attendees at an Energy Data Seminar that covered how to access and use energy data to make wise invest• Greg Swiss, CEM - Building Analyst, ments and improve their property operations. Cyclone Energy Group • Audrie Hicks Washington, ENERGY from smart meters), as well as the methods to STARŽ - Program Manager, EPA Region 5 begin analyzing the data to find savings. The mix of experience levels and profesComEd, one of the event sponsors, providsional backgrounds between attendees fosed attendees with overviews of their Energy tered a great dialogue around overcoming barUsage Data Systems (EUDS) Tool, their riers to energy efficiency, such as short payBusiness Energy Analyzer (BEA) and the back requirements, an inability to look past ComEd Energy Efficiency Program. Updates to immediate cash flow implications from expensthe ENERGY STARŽ Commercial Building es related to energy investments, and lack of Energy Consumption Survey (CBECS) and the control over tenant spaces. ENERGY STARŽ Portfolio ManagerŽ benchAttendees found the case studies on an marking tool were also presented, along with energy efficiency initiative by The Tower an announcement about the EPA’s 2016 Companies, a real estate company in National Building Competition: Washington DC, and Weber State University in BOOTCAMP.  BOOTCAMP is a competition Ogden, UT, particularly compelling. The Tower that challenges building owners, managers, Companies case study, published by the and occupants to reduce energy and water Natural Resources Defense Council, focused use, and save money in just 90 days. Lastly, on installation of a metering and monitoring workshop facilitators, Greg Swiss, CEM, and system on three office buildings, where energy Emmy Riley, CEM, BEAP, offered specific examcost savings exceeded project costs by ples of energy efficiency issues and solutions $74,000 in the first year after the project. from their experiences as Building Analysts for Weber State University used metering and the Cyclone Energy Group. Lucid BuildingOS dashboard system to save $3 The audience included a range of real million in two years. The case studies demonestate professionals from public facilities, unistrate the significant opportunity in energy effiversities, commercial real estate companies, ciency by gathering and analyzing whole-buildand consulting firms, who attended to learn ing energy use data. how to move forward with more advanced IREMŽ developed this program, “Accessing energy management strategies and improve & Using Energy Data to Improve Property the performance of the properties under their Operationsâ€?, in part thanks to the Yardi Systems supervision - saving money in the process, Energy Efficiency Grant, awarded to the while also increasing property value. Institute for a comprehensive energy education In Chicago, all residential, commercial, and program with a goal of reducing energy utilizainstitutional properties 50,000 square feet or tion in commercial, residential, and mixed-use greater must benchmark and report wholeproperties over the next several building energy use every year and verify the years. IREMŽ Chicago and USGBC Illinois data once every three years through the teamed up to host the first offering of the workChicago Energy Benchmarking Ordinance. shop at Roosevelt University. The City Energy Some workshop attendees in compliance with Project also provided assistance with organizthe Chicago Energy Benchmarking Ordinance ing and publicizing the workshop in Chicago. had basic familiarity with the importance of whole-building energy data and how to access the data; these attendees were interested in going beyond benchmarking to learn about additional data options (such as interval data

12 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

đ&#x;“– industry happenings autumn 2016



Association that helped advance one of the first low-emitting projects in the Chicagoland area. Three recently completed projects were recognized with an Emerald Award for Green Building Innovation. These include the newly restored Chicago motor Club building, a striking example of integrating state of the art environmentally sustainable technologies within the context of a historic preservation project; the additive manufacturing integrated Energy (amiE) demonstration project that underscores the high performance possibilities of new technologies and materials combined with building design and integrated-systems innovation; and the Chicago Public library Chinatown Branch, a new civic, educational and social hub that leverages sustainable design as a support for the neighborhood. This year, the Chapter Mission Award was presented to an individual and an organization that reflect USGBC-Illinois' new focus to implement carbon drawdown strategies in Chicago neighborhoods that improve the health, economy and social well-being of residents. arathi gowda, leader of Som Chicago's elite Performative design group was honored with the individual Chapter Mission Award. Her role as an educator, practitioner and advocate in the field of planning and architecture have helped to advance the role sustainable infrastructure can play in strengthening neighborhoods.

Chicago-based united airlines was recognized with the organization Chapter Mission award for their decades-long commitment to sustainability. Earlier this year, United Airlines made history by becoming the first U.S. airline to begin use of commercial-scale volumes of sustainable aviation biofuel for regularly scheduled flights from Los Angeles (LAX). United has improved fuel efficiency by over 33% since 1994 and incorporated green building standards for its facilities including their corporate headquarters and O'Hare airport cargo facility in Chicago and their suburban Chicago data center. The commitments they are making in Chicago to reduce their environmental footprint have global implications for reducing carbon emissions and setting an example for other large organizations to take action.  Earlier this year Illinois was recognized for the third year in a row for the top state for LEED projects. At this year's awards ceremony, USGBC-Illinois introduced plans to build on this success and go even further with 'no regrets' sustainability strategies that will impact more buildings and communities that have yet to be impacted by the green building movement. "The achievements this year uniquely illustrate the future of sustainability and how Illinois will continue to lead the nation in green buildings and sustainable communities," said Brian Imus, Executive Director of USGBC-Illinois. "These leaders and projects build on the success of LEED in Illinois by advancing new strategies that reduce carbon emissions while strengthening the health and economy of our communities."

• Using 100% salvaged wood in entryway and doors • Reusing 66% of existing furniture and furnishings • Purchasing new furniture manufactured within 180 miles • Requiring low VOC paints and primers • Illuminating 89% of regularly occupied paces with daylight • Providing 99% of regularly occupied spaces with external views • Using all LED fixtures to eliminate mercury levels “Achieving a LEED Gold Certification for the Chicago office is significant,” said DLR Group Principal and Energy Services Leader, Ruairi Barnwell. “If DLR Group is going to champion high-performance building design and operations to our clients then we have to lead the way in sustainable best practices. This project also illustrates the power of data transparency and the capabilities of real time analytics of energy performance and indoor environmental quality.” To ensure the ongoing optimization of the indoor environment, occupant health and wellbeing, the DLR Group office is continuously monitoring and publicly reporting key perform-

ance indicators of Indoor Air Quality (IAQ). Air monitors continuously monitor the IAQ throughout the office in real time. Results are reported to a cloud-based dashboard giving staff real-time access to air quality data. The tracked air quality has been impressive, particularly for new construction which often suffers from increased levels of total volatile organic compounds (TVOCs). Throughout this trial period the particulate matter (PM2.5), TVOCs, and carbon dioxide (CO2) have all been within international healthy limits during all hours of occupancy. The Chicago office is currently ontrack to receive Full RESET Certification and would be the first project in North America to achieve this standard.

Top Sustainability Achievements in Illinois


he Chicago Chapter of the U.S. Green Buildings Council recognized several outstanding leaders and stand-out buildings that have helped to position Illinois as a national leader in sustainability at the 11th annual Emerald Awards ceremony on June 23rd at their Limelight event held this year at the Chicago Cultural Center. The Emerald Awards program is a showcase of the best and brightest contributors to a more sustainable built environment by recognizing outstanding individuals, organizations, projects and technologies. The 11th annual Emerald Award winners include: michelle halle Stern, President of the Green Facilitator, honored with the Intent to Matter: Individual Leadership award for her distinctive career in advancing green buildings with both seminal green building projects around Chicago and her pioneering approach to training and leadership in the architectural field. leopardo Companies, inc., based in Hoffman Estates, recognized with the Intent to Matter: Outstanding Organization award. Leopardo's long-standing dedication to green building and continuous innovative efforts in shrinking the footprint of construction-related impacts on the environment includes a unique partnership with the Environmental Law and Policy Center and Respiratory Health

DLR Group


ounded as an architecture and engineering firm, DLR Group celebrates 50 years in 2016. When selecting a new location for its Chicago office, DLR Group chose a LEED Founded as an architecture and engineering firm, DLR Group celebrates 50 years in 2016.Certified facility at 333 West Wacker Drive, to ensure that the base building operations were aligned with the firm’s core values. This commitment to Environmental Stewardship helped to achieve LEED Gold Certification for the firm’s new office, which was also selected by Crain’s magazine as the winner of the ‘Chicago Coolest Office’ award of 2015. A number of features contributed to the LEED Gold Certification: • Being within a 1/2 mile of a variety of bus and train lines • Using low flow fixtures to reduce water consumption by 32% • Using all LED light fixtures to reduce the lighting power density by 23% • Selecting 79% Energy Star Appliances • Achieving enhanced commissioning

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editor’s message




Buildings Environments Volume 12, No. 1, Autumn 2016


he late spring and summer of 2016 started cool and wet, just as the season of 2015. however, the hot weather with above

average temperatures and humidity started in June and kept coming through august (with a few breaks). the warm weather of the season typically puts a strain on energy budgets as well as outdoor landscape elements. Volume 23, No. 1, Autumn 2016

Periods of extreme weather magnify the need for energy conservation practices and increase the benefit of investing in new energy equipment, building improvements and technology. many of you have begun work on budgets for next year and are likely considering your energy expenses. Fall is here and before you know it thanksgiving will ar-

Editor & Publisher Michael C. Davids Vice President Sherri Iandolo Art Director Rick Dykhuis Contributing Writers James A. Fizzell, Cathy Walker, David Mack, Pamela Dittmer-McKuen Circulation & Administration Carol Iandolo, Mary Knoll, Arlene Wold

rive and we’ll be bracing for cold and snow. make plans now to prepare your building(s) and grounds for winter weather conditions. our cover story for this issue of CBe recognizes the habitat Company as they celebrate their 45th anniversary. much can be learned from their business model as well as from their core values, mission and philosophy. they have proven to be a good corporate citizen and leader in the Chicago real estate market in many ways. our second story is a Property Profile on the naperville Center of the College of duPage which recently was renovated to be consistent with the look of the main campus in glen ellyn. Since the restoration was completed, the building has achieved some recognition for its sustainability. this story also offers some examples of sustainability throughout the entire Cod campus system.

Chicagoland Buildings & Environments (and The Landscape Buyer) is published in Spring and Fall by MCD Media as an independent magazine to inform owners, managers and others involved with commercial, multi-family, institutional and government properties about sustainability as well as property maintenance and restoration. CIRCULATION: Chicagoland Buildings & Environments (and The Landscape Buyer) maintains a circulation of 9,500. Subscriptions are available for $19.95 per year. Group subscriptions are available at $13.95 each, per year (orders of 5 or more). Single issues are available for $10.95. All material herein is copyrighted. No part of this 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, the services of a competent professional should be sought. Contact us at:

a special feature article in this edition offers an overview of challenges that were met by the manor homes of Chatham in Buffalo grove as they recently completed a successful door replacement project. another feature article in this issue provides some great examples of water conservation and other utility improvements at Central duPage hospital and dominican university. We’ve also included two articles on recent legislative activity that is timely and has a big impact on community associations. our industry happenings column features the uSgBC’s emerald award winners as well as a recap of an energy data workshop held by uSgBC and irem. From the reports we have seen, the 3rd phase of Chicago’s ordinance requiring all residential buildings in Chicago over 50,000 square feet to file their first energy benchmarking report by June 1st, 2016 has been met with much success. We will continue to explore many other green building trends and initiatives in coming issues of CBe. if you have an idea or story to share please let us know. if your property has a special need or challenge, mCd media produces special events that feature a variety of resources and experts to assist you. many members of our CBe advisory board will attend these events. there are also key resources from our sister publication – Condo Lifestyles available at our special events. Please consider attending our upcoming State of the industry seminar and luncheon being held on december 8, 2016. You can view photos from various events we produce and others we participate in at the mcd media Facebook page. thanks to the many new subscribers that have found our publications useful and informa-

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tive. Special thanks to the firms, associations and groups that are authorized distributors of

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14 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2016

Professional Services Directory ARCHITECTS / ENGINEERS



Riggio/Boron Ltd. A Total Exterior Facade Restoration Company


BTL Architects, Inc. (312) 342-1858

THE RESTORATION GROUP 24 Hours- 630-231-5700

Bringing Buildings Back to Life Contact Delph Gustitius

Structural Repair Services / Balcony Repair and Replacement Stair Tower Repair and Replacement Fire and Water Response and Restoration

W. J. McGuire Company (847) 272-3330

Tuckpointing, Caulking, Masonry and Concrete Restoration

Coder Taylor Associates 847-382-4100


Architects • Research • Engineering Specifications • Reserve Studies

Community Advantage

CARPET CLEANING A W I N T R U S T C O M PA N Y Loans, Reserve Investments & Lock Box Services

Done Just Right Inc. 630-893-0757 |

Mutual of Omaha Bank Community Association Banking 312-209-2623


847-304-5940 Full Circle Architects, LLC 847-432-7114 Daniel Baigelman, AIA Capital Improvements • Reserve Studies • Engineering Reports

Superior Reserve Engineering Consultants 888-688-4560

Waldman Engineering 630-922-3000 Energy Benchmarking Studies & Compliance Services, Reserve Studies, Specifications


HOA Banking - Internet Cash Management HOA Loans - Online Payment Systems Dedicated Customer Service www.mutualof BUILDING RESTORATION & MAINTENANCE

Dakota Evans Restoration, Inc. 847-439-5367 Tuckpointing ~ Masonry Repairs Waterproofing ~ Terra Cotta Repairs Caulking & Sealants ~ Structual Repairs Cleaning ~ Balcony Restoration Concrete Restoration

Kovitz Shifrin Nesbit (855) 537-0500

Bral Restoration, LLC 847-839-1100

Masonry and Concrete Restoration

Levenfeld Pearlstein, LLC 312-476-7556

Holton Brothers, Inc.

Howard Dakoff /

Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration

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

CRC Concrete Raising & Repair (847) 336-3400 We Save Concrete, You Save Money!

DOORS Woodland Windows & Doors 630-529-Door (3667) Window and Related Masonry Interior & Exterior Doors | Siding & Gutters

DUCT CLEANING Airways Systems, Inc. 630-595-4242 Cleaning: Air/Laundry/Toilet Exhaust Ducts, Coils, Trash Chutes, Parking Garages. ALso Air Filters, Belts

Brouwer Bros. Steamatic 708-396-1444 All types of Environmental Cleaning.

autumn 2016

ChiCagoland BuildingS & environmentS





Done Just Right Inc. 630-893-0757

Waldman Engineering 630-922-3000

ConTech MSI Co. 847-483-3803 |

Energy Benchmarking Studies & Compliance Services, Reserve Studies, Specifications

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

ECOLOGICAL RESTORATION The Pizzo Group 815-495-2300 ELEVATORS/CONSULTANTS Smart Elevators Co. (630) 544-6800 (630) 544-6829 FAX

Suburban Elevator Co. 847-743-6200 Simplifying Vertical Transportation Contact: Max Molinaro


• Boiler tune-up and maintenance • all-inclusive design-Build Service • maximum rebate capture • guaranteed Savings

Westside Mechanical Group 630-618-0608 / 630-369-6990 Serving the Tri-State Area Since 1970 Contact: Jackie Loftis *

GENERAL CONTRACTORS James McHugh Construction Co. 312.986.8000


SP+ Facility Maintenance 773-847-6942


Daily Cleaning Services / Power Sweeping and Washing Painting and General Repairs / Seasonal Services

Edwards Engineering, Inc. (847) 364-8100


Parking Facility, Surface Lot, PedestrianPlaza, Large Venue or Commercial Retail Building. Contact: Daniel W.Nicholson at

HVAC Refrigeration Boiler Services Sheet Metal Piping Building Automation Energy Management


EMCOR Services Team Mechanical (847) 229-7600

Brouwer Bros. Steamatic 708-396-1444

All types of Environmental Cleaning. Air & Exhaust Duct Cleaning • Mold Remediation Garbage Chute Cleaning • Carpet & Drapery Cleaning Photo Inventory, Moving, Storage or Removal

The YMI Group, Inc. 847-258-4650 Mechanical - Plumbing - Building Automation - Service

ENERGY GAS & ELECTRIC CenterPoint Energy Solutions (630) 795-2594 Natural Gas & Electric Energy Reliable Service. People You Trust. Contact: Vickie Farina

Oceans Energy 312-870-0580 |

Response Team1 847-891-2929 | 866-832-6724

Westside Mechanical Group 630-618-0608 / 630-369-6990

Serving the Tri-State Area Since 1970 Contact: Jackie Loftis *

The Restoration Group, LLC 630-870-0658


Brouwer Bros. Steamatic 708-396-1444


“All types of Environmental Cleaning”

EMCOR Services Team Mechanical (847) 229-7600

16 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2016




Done Just Right Inc. 630-893-0757

NonStop Locksmith 312-929-2230 |

Locksmith Services, Intercom & Access Control Systems, CCTV, Overhead Garage Doors

Inside Out Painting Roofing & Construction (630) 406-3000


Alan Horticultural Services, Inc. 630-739-0205


Balanced Environments 847-395-7120 / 630-916-8830

Christy Webber Landscapes 773-533-0477

ILT Vignocchi 847-487-5200

Brouwer Bros. Steamatic 708-396-1444 All types of Environmental Cleaning

Response Team1 847-891-2929 | 866-832-6724

Precision Painting and Decorating Corp. (630) 688-9423

PAVING DuBois Paving Co. 847-634-6089 / 800-884-4728

NUISANCE WILDLIFE Smithereen Pest Management Services 847-647-0010

SP+ Facility Maintenance 773-847-6942 Contact: Daniel W.Nicholson at


Landscape Concepts Management 847-223-3800

The Alter Group 630-620-3600

Sebert Landscaping, Inc. 630-497-1000


Semmer Landscape 708-926-2304

AAA Painting Contractors, Inc. 630-231-8350

Spring Green Professional Lawn & Tree Care 800-830-5914

Bed Bug Specialists. Results Guaranteed!

Smithereen Pest Management Services 800-336-3500



All-Over Pest Solutions (773) 697-1100

CertaPro Painters of the North Shore (847) 287-2642 Interior & Exterior Painting Wallcoverings • Decorating • Remodeling Drywall Repair • Decks & Staining Tile Installation • Metal & Iron Painting

Lifeline Plumbing 847-468-0069 Plumbing - Heating & Air Conditioning Water Heaters - Sewer Cleaning & Repair Hot Water Drain Jetting


autumn 2016

ChiCagoland BuildingS & environmentS





ACM Community Management 630-620-1133

Elliott & Associates 847-298-8300

Woodland Windows & Doors 630-529-Door (3667)

Property Tax Attorneys

Alter Asset Management 630-620-3600

Worsek & Vihon LLP 312-368-0091

SP+ Facility Maintenance 773-847-6942

Associa Chicagoland 312-944-2611 / 847-490-3833


Contact: Daniel W.Nicholson at

Adams Roofing Professionals, Inc. 847-364-7663

Baum Property Management, LTD. 630-897-0500

DK CONDO DRAPER AND KRAMER 312-346-8600 Contact: Margaret Shamberger

FirstService Residential 312-335-1950 Contact Asa Sherwood

The Habitat Company 312-527-5400 Contact: Diane White

Lieberman Management Services 847-459-0000 / 312-202-9300

REAL ESTATE TAX ATTORNEYS McCracken McCracken Behrens 312-263-4308 Concentrating in Property Tax Appeals since 1976

Roofing -Siding -Gutters - Insulation


Tricon Snow Control, Inc. 847-410-2846

B.T. Lakeside Roofing 630-628-0093


CSR Roofing Contractors 708-848-9119 Industrial/Commercial/Multi Tenant/High Rise All types of Roofing Leak Trouble Shooting/Roof Repairs Roof Check 365 Maintenance Programs Conventional and Single Ply Roofing

Landscape Concepts Management 847-223-3800 Tree Pruning / Tree Installation / Replacement Tree Preservation / Tree and Stump Removal Insect and Disease Control / Tree Protection Mulching / Gator Bags & Watering Services

M&T Exteriors Inc. (331) 248-0447


Roofing Siding Windows and Service.

XFINITY Communities 1 800 XFINITY

S&D Roofing Service (630) 279-6600 For more information E-mail:

250,000 roofs installed since 1963 TEAR OFFS • SHINGLES • FLAT ROOFS Multi-Family ROOFING Specialist Our experience & technical know-how gets the job done right the first time! |

WASTE SERVICES/REC YCLING Lakeshore Recycling Services 773-685-8811

SECURITY SERVICES WINDOWS/REPLACEMENTS Admiral Security/Door Staff Solutions (847) 588-0888

Woodland Windows & Doors 630-529-Door (3667)

18 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2016



Water Conservation Can Help Budget Challenges as a result of economic challenges in recent years, many types of business enterprises have had to deal with the hard fact of cost cutting to accommodate tightening budgets.


hile there are many ways to reduce expenses, the best cost saving solutions are those that don’t compromise the quality of the company or organizations services (or products). Conserving on utility usage can be a great way to accomplish the objective of reducing expenses without sacrificing quality. Central duPage hospital (now known as Cadence and owned and operated by northwestern hospital) was shown a way to greatly reduce its use of potable water for landscape irrigation by upgrading its system, which has resulted in a substantial savings for the institution each year going forward. “the new irrigation system was installed in 2009 and the savings currently exceed $200,000 annually,” said Scott Schnurr of drF trusted Property Solutions, which identified the opportunity, designed the solution and installed the improvements.

Water Source is Important under the old irrigation system, 75% of landscaping water was provided through multiple separate municipal taps and the rest was supplied by an onsite well. But the water source owned by the hospital had numerous problems, primarily concerning the condition of the water. “high iron content in water from the well was causing terrible iron staining and ruining the irrigation system components due to the poor water quality,” explained

Schnurr. “the old way (to correct this condition) was to deal with the iron by repeatedly fixing the symptoms of staining, clogged or damaged components, a shorter life cycle, and so on,” while, “the new system virtually eliminated those symptoms and has a lower operation cost at the same time.” no longer are expensive repairs and stain remediation needed. drF recommended the improvements of the landscape irrigation system that would improve water quality and lower costs for the hospital. drF was the first firm that had recommended a solution to tackle these issues instead of continually billing to correct the symptoms. the hospital, “had sought solutions from others in the past,” said Schnurr, “however our solution design and concept was unique as there were no other companies offering (anything) comparable.”

Tying Systems Together drF proposed an upgrading that involved tying multiple systems together, eliminating the use of municipal water and adding a water treatment process that greatly improved the condition of the water. “the new system is one integrated system that operates off the (hospital’s) well with the filtration system we designed and installed,” explained Schnurr. “there are no longer any municipal supply bills and the system components run better and last longer.” the arrangement now

functions much more effectively than before as the result of a capital investment that was quickly recovered. “the benefits include financial savings of a magnitude that the project paid for itself in less than one irrigation season, utilizing an existing water source while (eliminating) demand and stress on the municipal supply during drought years, extending equipment life cycles, shortening watering cycles and allowing for off peak watering and overall efficiency.”

Supervision and Automation as most commercial institutional or industrial irrigation systems, the one at Central duPage hospital operates automatically but not without some oversight. “the need to adjust the system for seasonal variances in the evapotranspiration rate, turf stress etc. is something drF monitors on a weekly basis and communicates to our partner (the hospital) as we make adjustments,” said Schnurr. automation in the monitoring process can only go so far and must be complemented by the analysis of trained professionals. “the weekly check-ups also eliminate most emergency repairs and crisis situations, landscape damages and over watering further reducing the cost of operation.” the hospital administration is very pleased with the performance of the new improvements in terms of both the quality of the water being used for irrigation and the budget savings that are being realized. the end result is a healthy landscape, reduced costs and much better looking property overall.

Dominican University dominican university in river Forest also looked to drF to improve its landscape irrigation system at their 30 acre campus. dominican university previously used 100% municipal water supplied by river Forest. drF obtained a permit from the City of river Forest to upgrade their system by

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Buildings Environments FOR MORE INFORMATION CALL



autumn 2016

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[ Central DuPage Hospital (CDH is now operated by Northwestern Memorial Hospital) THE LANDSCAPE BUYER

converting the system from municipal water to utilize rain and ground water from a hundred year old cistern that captured rainwater from roofs and property on campus. the irrigation system functions by pumping rain water from the cistern. drF also added an onsite well for water replenishment during times of drought. the well uses a water level control apparatus in the cistern that triggers automatic well operation when the water level in the cistern drops below a certain level. Water from the well is pumped into the cistern when needed. the primary water supply continues to be rain and ground water flowing from the roof and property of the school that fills the almost 100,000 gallon cistern. the well only provides a secondary water supply. Water is dispersed from the cistern for irrigation purposes through a series of new pipes that tie in with the distribution system that had been in use previously. this new arrangement conserves the use of water and eliminates the municipal water expenses dominican university had to pay to the city for water previously. the cost of the project was less than $100,000 and saved the college more than that in the first season of operation. the elimination of over 6,000,000 gallons of municipal water use each season was achieved with this project. the cistern water also provides make up water to a chiller in the summer eliminating that water cost also.

New Equipment Saved More Utility Costs dominican university received a $132,376 rebate check from the nicor gas energy efficiency Program on august 30, 2012 for energy savings accrued through the installation of a new energy efficient boiler system. the system, which was designed by drF trusted Property Solutions, saved the university 132,376 therms during its first year of operation. this project is one of many sustainability initiatives the university has undertaken to reduce energy and lower costs. Part of the savings from this project was reinvested in other energy efficiency improvements throughout the campus. "this is just another example of dominican’s commitment to sustainability," said dan Bulow, director of Buildings and grounds. "it was an investment—and a risk—because we weren’t sure that the savings provided by the project would have a quick payback. But we have been pleased with how much money we saved upfront and with the relatively quick payback period of 2.5 years." dominican began working on the retrofit project in 2010 when drF, while working on another energy-savings project, discovered that the univer-

Y Dominican University sity was operating a massive boiler throughout the summer to supply hot water and air conditioning reheat for only a small number of buildings. "this project was only possible because we found the right partners to work with," said Bulow. "We each took on some risk. We agreed to go ahead with the $348,000 project because drF guaranteed us that we would save at least 100,000 therms within the first and subsequent years. this was a true investment in the future." the team that identified, designed and installed this project was comprised of drF’s dennis Fiddick - Solutions engineer, dan Bulow director of Buildings and grounds and John Ward Chief engineer at dominican university in partnership with metropolitan industries, drF developed creative solutions for dominican university that provided financial benefits and qualified for the nicor gas eeP Business Custom incentive Program rebate. metropolitan was able to design/build equipment per drF’s specifications. drF guaranteed annual savings of 100,000 therms with a payback period of 2.8 years to help dominican university feel safe to move forward with the project investment. a multi-unit tankless hot water system addressed domestic hot water, while a chiller heat recovery system eliminated the

20 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

Y New Water Treatment System at CDH entire reheat load from the library. a combination reheat and domestic hot water condensating boiler system addressed the resource load in dominican’s Parmer hall.

Energy & Cost Savings Achieved the three high-efficiency equipment upgrades have allowed for shut off of the summer boiler during six non-space heating months of the year. the shut off saved 132,376 therms annually at a delivery cost of $.64 per therm, for a total utility cost savings of $84,720 annually and a payback period of 2.5 years. dominican also received the nicor gas eeP rebate in the amount of $132,376. the project installation was completed in 30 days and the guaranteed savings of 100,000 therms was surpassed by 32%. domincan university’s annual therm savings has an environmental impact equivalent to saving Co2 emissions from the energy use of 57 homes for one year. according to Bulow, dominican university’s projected 20-year Savings is 2.65m therms totaling $1,696,000. $

autumn 2016



Manor Homes of Chatham Open the Door to Successful Project Management the manor home of Chatham i Condominium association is located in Buffalo grove, illinois. homes in this community association are attached residences with garages and were built between 1982 and 1987. homes can be 2 to 3 bedrooms and have 1 or 2 bathrooms. the residences range in size from 950 to 1550 square feet in living space.


here are 16 buildings in the Manor Homes of Chatham community. Buildings are two story, manor home style buildings. A single building has 4 units and a double building has 8 units. A double building is simply two 4 unit buildings connected. There are 29 common front entrances, and 116 units total. The buildings are wood and masonry construction with vinyl siding. They are a typical Manor Home style. The median sales price of homes for sale in Chatham Manor Homes is approximately $131,000 and one recent home sold for $178,500. Assessments range from $230-$290 per month and include common area maintenance and repairs as well as contribution to their capital reserve account. The current operation budget is approximately $350,000 annually. Currently a five member board of directors governs the Association. Thus far, they have not needed any special assessments and do not currently have any problems with delinquent assessments. RedBrick Property Management is the current managing agent for the Association. Having operated for roughly 35 years, the Manor Homes of Chatham has seen many successes and has also weathered its fair share of challenges. They were able to continue implementing capital improvement projects over the past ten years even through the difficult economic times and mortgage crisis that began in 2007 and lasted well into this decade. Presently, “we feel we are on an upswing in our community,” says Board President Shelley Beets. Michael Carnahan of RedBrick Property Management concurs, “The current board and community as a whole have been working well as a team with manageautumn 2016

Y One of the key aspects of having success with their door replacement project was to have a “mock up” door installed so they could actually look and feel what the new doors would look like. ment, the association’s professionals (attorney, reserve professionals) and contractors all on the same page.” he relates.

Reserve Study Helpful One initiative that is paramount to their current upswing is having an updated reserve study performed. The Association hired Waldman Engineering to perform a reserve study in recent years, “and it was integral to our planning” said board president Shelley Beets. Katie Green, the Board Treasurer added, “Having a reserve study completed provided the board with detailed information on how to plan and budget appropriately for the future repair, maintenance, and replacement of common elements. It gave us a better idea of the current status and remaining lifespan of major components on our property, such as driveways and roofs. The study included a review of the health of our current funds and how to appropriately offset future costs with incremental increases in HOA fees. By imposing small incremental changes, the board is able to minimize the need for special assessments, which can be costly. The board did a great job of bringing in trusted professionals so they could make intelligent and informed decisions

regarding large renovation and improvement projects. Before the reserve study, they were about half way through a balcony project, rebuilding original balconies; and also about to start a full door replacement project (29 entrance doors). The reserve study was done during the bidding/planning stages of these two projects. “We needed to know we could both afford to pay for these projects in the desired timeframe, as well as fund for future projects,” says Carnahan. The reserve study helped support the need and timing of the current projects, “and the board increased assessments by 7.5% mostly to ensure that their Capital Reserve Account was still properly funded.” “This process was recommended by RedBrick,” offers Carnahan and agreed to by the board. This property had gone through other failed projects and needed to turn around the way previous projects had been handled.

Door Replacement Project On the surface, door replacement projects seem simple and straight forward. “Sometimes door replacement or any type of replacement project are simple and straight forward, says Carnahan. However,

ChiCagoland BuildingS & environmentS



he adds, “when you are dealing with commercial grade or large scale projects, there can always be issues with unknown factors that can turn a simple project into a complicated one.”

Not All Doors Are Created Equal As it relates to the door project at the Manor Homes of Chatham, the association had recently replaced half of the front entry doors. The doors chosen for the project were not the correct application of the door. Owners did not like the change in appearance of the new doors and more importantly the doors did not perform as they should. They did not have a proper thermal break that you would want for a residential door. Just inside of the doors is the common hallway (a conditioned space). The doors would allow for so much draft and condensation that the inside of the doors would ice up. It was clear that the replacement project could not continue with these doors. “A mostly new board was chosen about this time as well. Discussions about replacing all the doors, now both the new doors and old, began. Unfortunately, the association consulted with a vendor who did not specialize in doors. The door proposed, and approved, was actually not available with all the options as proposed. This plan fell through as a result. “RedBrick Property Management became involved about this time and stage of the project,” Carnahan says. “We met with door manufacturers, and suppliers of building materials to get opinions on what door should be used and with what options. Once we had determined the door and manufacturer that the board desired, we went to get apples to apples bids for installation of the desired doors.” Three bids were solicited and the low bid was chosen. “The low bid was significantly lower than the rest, and we could not determine how or why it was so low.” The temptation of saving money helped drive the approval of the low bid. RedBrick advised and the board approved this low bid ensuring it was only approved subject to legal review. So prior to acceptance, the Board’s attorney, Michael Shifrin of Kovitz Shifrin Nesbit added a rider to the proposed contract to adequately protect the association. Shifrin added, “Board members tend to forget that contracts presented to them

for signature are prepared by the vendor or the vendor’s attorney. They inevitably contain terms favorable to the vendor and unfavorable to the Association. If not reviewed by an attorney, Associations may unknowingly expose themselves to Y Having a reserve study completed provided the Board with detailed information on how to plan and budget appropriately for the future repair, maintenance, and replacement of common elements. liability should a dispute arise over protected but the contractor had requested that agreement. Nothing is more frustrattheir own protections and we felt it imporing than being contacted by a client to detant to address those concerns as well. In fend them against a lawsuit involving a the end, both the vendor and the associavendor dispute and knowing you face an tion were protected. Once this aspect of uphill battle due to the significant conthe project was completed, “we had Woodstraints set forth in the agreement beland provide a “mock up” door. We had tween the parties. Signing a contract with them install a single door so we could aca vendor without having legal counsel retually look and feel what the new doors view it is like speeding down the highway would look like.” Having a mock up door without wearing a seat belt; you may get made and installed, significantly added to away with it for a while, sometimes even the amount of time the project would take, years, but it only takes one bad accident to as there is a lead time for the one door, cause serious damage or injury.” and a second lead time for the remaining Protection Proved Invaluable 28 doors. However, “we knew patience This protection proved invaluable would pay off. After going through probafter learning that the company had made lems, and learning along the way we knew mistakes in their proposal and wanted to we needed to see the door before signing increase the cost significantly. “We were off on the full project.” After the mock up able to easily move on from the low biddoor was installed, a meeting was called on der,” Carnahan continued, “and knowing location to try it out, owners were invited how important it was to choose the right to join, and at that meeting the remaining vendor for the door replacement project, 28 doors were approved. we brought all the bidders in for an interTeamwork Pays Off view. After meeting with the bidders, it Now that the door replacement projbecame clear to us that one bidder had sigect has been completed, Carnahan states, nificantly more experience and knowledge “The patience and time spent in prodabout door replacement projects. Wooduct selection, vendor selection, legal reland Windows and Doors came to the view, mock up, and full project roll out all meeting and completely impressed all were equally important in bringing the those in attendance. They had an incredidoor replacement project to a successful ble knowledge of the materials and instalcompletion. This took long hours and lation process, brought in product hard work,” Carnahan concludes. It took samples, provided videos about the comcoordination and teamwork between the pany and how they operate, and had a board, management, the attorney, the long track record of providing the type of vendor, and ultimately the homeowners. service we felt we needed.” “We plan to apply the same principles The proposal by Woodland Windows and process to the balcony replacement & Doors was approved and again was sent project.” $ for legal review. Carnahan said, “we needed to ensure that the association was

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B Y M A R K S W E T & A C T H A L E G I S L AT I V E C O M M I T T E E

Legal Update for Community Associations there has been a number of recent updates to the illinois Condominium Property act that those involved with community associations should be aware of. Below is a brief summary of this new legislation: BUDGET


Section 18(a)(6) is amended to provide that each unit owner must receive a copy of the proposed annual budget at least twenty five days prior to the adoption of the budget by the boards. the language previously said “thirty” days.” this should make it easier for associations to avoid multiple mailings in order to also comply with the requirement that written notice of that board meeting be given to owners at least 10 and not more than 30 days before the meeting. this amendment became effective June 1, 2016.

effective January 1, 2017, Section 18(a)(9) is amended to deal with very limited issues raised by the “Palm” decision. newly numbered subsection (a) expands what a board may discuss in a closed session to include “consideration of information relating to,” in addition to the current discussion of, litigation, employment, and a unit owner’s unpaid share of common expenses. it also clarifies that any vote on matters discussed or considered in closed session must take place at a meeting of the board of managers or portion thereof open to any unit owner.

newly numbered subsection (B) provides that board members may participate in and act at any meeting of the board, in addition to being present in person, by telephonic means or by use of any acceptable technological means, as long as all persons participating in the meeting can communicate with each other. Participation by phone or other acceptable technology constitutes attendance and presence in person at the meeting. this loosely borrows from the not for profit corporation act, that was applicable to condominiums. newly numbered subsection (C) clarifies that any unit owner may record the proceedings at open meetings of the board of managers (but not other meetings) by tape, film or other means. newly numbered subsection (d) provides that notice of every meeting of the board of managers must be given (it no longer says “mailed or delivered”) to every board member at least 48

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hours prior to the meeting, unless the board member waives notice of the meeting. this section was previously ambiguous as to whether such notice had to be mailed or delivered to unit owners as well. newly numbered subsection (e) makes a stylistic change concerning the posting of board meeting notices. notably, that section also adds that notice of every meeting of the board must also be given at least 48 hours prior to the meeting, or such longer notice as the act may separately require, to each unit owner electronically who has provided the association with written authorization to conduct business by acceptable technological means. moreover, to the extent that the condominium instruments of an association require, notice must also be given to each other unit owner who has not provided written consent to receive notice electronically, by mail or delivery, and that no other notice of a meeting of the board of managers need be given to any unit owner.

EMERGENCY DECISION(S) in an attempt to empower and support boards to act in emergencies, Section 18(a) is amended to add a new subsection 21 that addresses concerns raised by the “Palm” decision as to how a board can make decisions in such “emer-

gencies.” it states that the board may ratify and confirm actions of the members of the board taken in response to an emergency, as the term “emergency” is defined in the act, specifically in Section 18(a)(8)(iv). however, the board must give notice to the unit owners of the occurrence of the emergency event within 7 business days after the emergency event, and the general description of the actions taken to address the event within 7 days after the emergency event. this amendment took effect June 1, 2016.

UNIT OWNER WITH DISABILITY Section 18.4(q) is amended to make a stylistic change. it requires the Board to reasonably accommodate the needs of a unit owner who is a person with a disability (the Section previously used the word “handicapped”) as required by . the federal Civil rights act of 1968, the human rights act and any applicable local ordinances in the exercise of its powers with respect to the use of common elements or approval of modifications in an individual unit. this amendment became effective June 1, 2016.

DECLARATIONS AND/OR BY-LAWS AMENDMENTS effective June 1, 2016, Section 27 of the act to provide that language in the condominium instruments that requires notice to (not just approval of) any mortgagees (and adds other lienholders of record as well) is valid. additionally, the board can amend the condominium instruments, without owner approval, if there is an error or inconsistency in a condominium instrument such that they do not conform to the act or to another applicable statute. the section previously just said “error.” also, the amendment clarifies that any provision in a condominium instrument requiring or allowing unit owners, mortgagees, or other lienholders of record to vote to approve an amendment to a condominium instrument, or for the mortgagees or other lienholders of record to be given notice of an amendment to a condominium instrument, is not applicable to an amendment to the extent that the amendment corrects an omission, error, or inconsistency to conform the condominium instrument to the act or to another applicable statute. $


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Chicago Council Adopts Airbnb and VRBO Regulations Protecting Condominium and Homeowners Associations and creates the “Prohibited Building List�


n June 22, 2016, the City of Chicago adopted an ordinance that establishes regulations and bolsters protections for condominium and homeowners associations affected by the recent surge in home-sharing and vacation rentals via platforms such as and The ordinance requires companies such as VRBO and Airbnb to be licensed as a short-term rental intermediary or advertising platform. It also requires individuals who wish to list their townhome or

autumn 2016

condominium unit as a temporary or transient rental to register the unit with the City (any individual owning and operating more than two units as short-term rentals will be required to not only register, but also obtain an operator’s license). This will better allow the City to track units made available for lodging, respond to complaints and penalize those who break the rules. The ordinance sets a great number of protections to address the quality of life issues in community associations where

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transient rental is popular. These protections include: designating a set number of allowable units within a building which may be rented, requiring all those who wish to rent their units to register with the City, and requiring those who reside in community associations, when registering, to sign an attestation that the association has no prohibitions in its by-laws on vacation or transient rentals. Buildings with more than five units will be limited to

one-quarter of the total number of dwelling units, or six rental units (whichever is less) that may be rented at any given time.

Prohibited Building List Most importantly, the City will maintain a “Prohibited Building List” (the “List”) that, at the discretion of the association’s board of directors, will allow for a blanket prohibition on short-term rental

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activity within that particular building. The List may include apartment buildings containing five (5) or more dwelling units, along with co-ops, condominium buildings or any building governed by a homeowner's association regardless of the number of dwelling units in those buildings, which prohibit any short-term rental activity (i.e., rental or occupancy of a dwelling unit for 32 or fewer consecutive days). The Department of Business Affairs and Consumer Protections ("Department") is in charge of overseeing the List and taking appropriate enforcement action to ensure that dwelling units in the building on the List are not rented through intermediary platforms like Airbnb. In order to have a property included on the List, an authorized agent of the association (which could include a managing agent or the association's attorney) must submit a notarized affidavit to the Department certifying the association has a valid ban on short-term rental activity in the governing documents. A copy of the affidavit is included here or can be found on the Business Affairs and Consumer Protection website at Two items the Board must consider before taking action to include a property on the List:

1. The Board must be authorized to put the association on the List. A simple rule within the association's rules and regulations banning short-term rental is insufficient for the board to include the building on the List. A board of directors must be authorized by the association's declaration or by-laws to include the association on the List. The authorization would come in the form of a ban on short-term vacation rentals within the declaration or by-laws. A recent case from the Illinois Appellate Court (Stobe v. 842848 West Bradley Place Condominium Association) held that a condominium board may not simply adopt a rule restricting unit leasing if the declaration recognizes the unit owner's right to lease. Accordingly, should the board wish to include the association on the List and no such prohibition on short-term rental is contained in the declaration or by-laws, then

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the board must consider amending its declaration to prohibit such rental activity.

2. Owners and Lessors must disclose that the association appears on the List. Once the association is included on the List, any unit owner selling or legitimately leasing their units (i.e. long-term leases) must disclose the fact to the buyer or potential tenant that the association is on the List. The seller or lessor must receive a written receipt of acknowledgement from the buyer or tenant that such information has been disclosed.

Enforcement The City will enforce the ordinance by seeing to it that buildings that appear on the List are immediately removed from any rental or home-sharing intermediary or online platform. The City will also take action against individuals renting units without a license or in buildings that appear on the List. Complaints will be made via the City’s 311 non-emergency line or

the City of Chicago website (i.e. filing a complaint against an individual for operating a business without a license or operating an illegal business). Platforms such as Airbnb and VRBO will be required to consult said lists and remove any listings in order to maintain their right to operate in the City. Those selling or legitimately leasing their units (for non-transient purposes) within buildings that appear on the “Prohibited Building List” must disclose that information to (and receive a written receipt of acknowledgment from) the buyer or tenant. Finally, the City of Chicago has mandated that cites such as Airbnb establish a 24-hour hotline that can be reached by dialing the City’s 311 non-emergency line to report any violations or quality of life issues that may be related to transient or vacation rental.

Conclusion With the passage of this ordinance, Chicago becomes the first City in the United States to establish a requirement for uniformed operations between vacation rental platforms and for the removal of listings from a company’s platform for violation of a City’s ordinance. If your community association’s governing documents contain prohibitions on short term and/or transient rentals, the board of directors should consider registering as a Prohibited Building. We understand that you may need help navigating these news rules and regulations. You should consult an attorney to assist your board or association in determining whether inclusion on the List is permitted by its governing documents, preparing amendments to the governing document to permit inclusion on the List, and to assist your board in ensuring that the affidavit is completed correctly. $

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from page 5

Habitat Celebrates 45 Years grows stronger with each passing month. Their corporate staff has performed as an extension of our own on-site management to the extent that is just seems like they're part of our own support team and family.” He continued, “Habitat’s condominium management expertise has aided us through big challenges while still understanding the importance of the small things and attention to detail that are evident to our residents each day. I feel very fortunate on behalf of the 900 plus members of our association that we have them managing our homes.”

Anniversary Events Habitat’s official anniversary date is September 30th and will be marked by a special event to be held at Embassy Suites in Chicago. The gala event will be attended by 1700 including many clients. In the spirit of giving back to their communities and connecting with our residents, the Habitat Company kicked off a ”celebration campaign” in February of this

year with Habitat Company team members volunteering for resident social events at various properties they manage. The company is also planning a larger event, later this year, where they are partnering with The Kids in Need Foundation, a national non-profit agency that provides free school supplies to students most in need. Fiascone expressed his pride in participating in the various events held at their communities. “We are proud of these events as it allows us to strengthen our commitment to excellence at each community and bond with team members to show how much we value and appreciate our residents.”

Next 45 Years "For 45 years, The Habitat Company has established deep, long-term relationships and has enjoyed a reputation for providing both our clients and our residents with service that's second-to-none," said Fiascone. "We look forward to the next 45 years as we continue to expand our portfolio and further our commitment to excellence." $

Y In Chicago, Habitat has developed a number of prestigious multi-family properties including Presidential Towers (shown above), Newberry Plaza, Elm Street Plaza, Lincoln Park Tower, Lincoln Park Terrace, Wheaton Center, 540 Lake Shore Drive, Asbury Plaza, Columbus Plaza, Huron Plaza, East Park Apartments, Cityfront Place, Kingsbury Plaza, 400 N. LaSalle and Kinzie Park. The company also developed the office building at 350 West Hubbard Street that is home to its regional office as well as the East Bank Club, a prominent health & social club located on Kingsbury Street that boasts over 11,000 members including some of the most well- known and influential Chicagoans.


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Autumn 2016