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JANUARY 2019 | VOLUME 22 | NUMBER 4

©

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

f o the industry e t a t s

report

HO T TO PIC S, TRE ND S & ISS UE

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COURT DECISIONS & NEW LAWS FAVOR HOMEOWNERS 2018 CASE LAW & LEGISLATIVE UPDATE

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table of contents COVER STORY

03

State of the Industry Report; Hot Topics, Trends and Issues for Community Associations by Pamela Dittmer McKuen

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

Condo Lifestyles State-Of-The-Industry Legal Update

07 Court Decisions & New Laws Favor Homeowners by Pamela Dittmer McKuen EVENT HIGHLIGHTS

11 ABOMA Annual Meeting & Holiday Party 12 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo EVENT HIGHLIGHTS

14 Condo Lifestyles State of the Industry 15 Industry Happenings 22 From the Editor 23 Directory Advertisements L E G A L U P D AT E

30 2018 Case Law and Legislative Update by Gabriella Comstock L E G A L U P D AT E

36 Ombudsperson Act Requires Written Policy For Resolving Unit Owner Complaints by Howard Dakoff, Esq & Adam Kahn, Esq. BOARD BASICS

36 What Insurance is an Association Required to Maintain? M A N A G E M E N T TA L K S

38 Superpowers? Helpful, but not Required by Ken Bertolucci L E G A L U P D AT E

40 What to Know About Implementing Leasing Restrictions by Howard Dakoff, Esq. and Adam Khan, Esq.

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COVER STORY

state of the industry

by Pamela Dittmer McKuen

report*2018

Hot Topics, Trends and Issues for Community Associations

HO T TOP ICS , TRE NDS & ISS UES

The 2018 Condo Lifestyles State-of-the-Industry brought together nearly 200 association professionals, homeowners and volunteers for an enlightening program of education, networking and camaraderie. Now in its 23rd year, the event is the signature presentation of MCD Media, publisher of Condo Lifestyles and Building & Environments magazines and websites.

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he recent State-of-the-Industry took place at the historic Chicago Cultural Center on Thursday, December 13. Attendees were greeted by exhibitors and information tables that provided expertise on topics such as fire protection and life safety, exterior building restoration and maintenance,

mechanical systems, bulk energy purchasing, property tax appeals and more. After a catered buffet lunch, the welcome message and opening remarks were delivered by Michael C. Davids, president and founder of MCD Media. He formally opened the program by thanking attendees, event organizers,

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FOR COM MUN ITY ASS OCI ATI

ON S

media guests and MCD Media advisory board members for their support and participation. Special recognition was given to the event sponsors as well. “We have an important purpose in being here today,” he said. “We are going to exchange information about the state of our industry--the community association industry, to share our views and perspectives, and to grow new relationships. Information exchange and relationship-building are two of the primary pillars on which MCD Media is built and operates.”

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MANAGER LICENSING ACT EXPIRES--OR NOT The Illinois Community Association Manager Licensing and Disciplinary Act expires at the end of 2019, Kreg Allison, Director of the Division of Real Estate for the Illinois Department of Financial and Professional Regulation, told the audience. “If you all care about having the license, there will be a push in the new year to figure out what the new license will look like in a rewrite or re-adoption of what’s there,” he said. “Or you can just let it sunset, and community association managers will no longer be licensed.” “To date, the vast majority of complaints received by his department are for unlicensed practice,” he said. “In the vein and spirit of consumer protection, the one piece we do know is we want to make sure client money is protected,” he said. “If we’re going to keep the licenses, we’ll probably have a conversation about making sure the people who are on the client bank accounts are licensees who know what they are supposed to do with that money and what they’re not supposed to do. If they don’t do the right thing, we want to have the power to cause them some grief and hopefully make restitution.”

Shown here are panelists (L to R) Kelly Elmore, Matt Panush, Tony Dister, Terry McDonald and Marshall Dickler.

LEGAL UPDATE Association attorney Gabriella Comstock of Keough & Moody, P.C., presented an update mostly on significant court decisions during the past year and the few legislative changes that are currently impacting associations. “Legislative issues and government regulations are always an important component of what we discuss at this program each year, and we did see some significant rulings,” said Davids, who introduced the segment. “Some

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COVER STORY

Pictured here are moderator Brian Butler with panelists (from L to R) Adam Sanders, Ted Haralson, Mike Bonick and Howard Dakoff.

are seen as an extension of the movement to protect community association owner rights and to prevent rogue boards from running wild. You’ll hear varying perspectives on the new rulings and how to deal with them. But almost everyone agrees that some of it, especially the Michael Boucher v. 111 East Chestnut Condominium Association, is not really good for unit owners, associations or managers who are trying to do the right thing.” (Comstock’s presentation is reported in a separate article in this issue.)

PANEL DISCUSSION: HOT TOPICS, TRENDS AND CHALLENGES Another Condo Lifestyles State-of-theIndustry tradition is the panel discussion during which leading professionals offer their insights and views on the most pertinent issues facing practitioners, board members and associations today and in the coming year. The panel was introduced and moderated by Brian Butler, vice president of property management at FirstService Residential of Illinois. The 2018 panelists were: Adam Sanders, project engineer and team leader at Elara

Engineering; Ted Haralson, community association manager at Dearborn Tower Condominium Association for Draper and Kramer; Michael Bonick, architect and vice president at Kellermeyer Godfryt Hart; Howard Dakoff, association attorney and partner at Levenfeld Pearlstein; Kelly Elmore, association attorney and principal at Kovitz Shifrin Nesbit; Matthew Panush, attorney and senior property tax analyst at Worsek and Vihon; Anthony Dister, senior vice president at Wintrust Community Advantage.; Terry McDonald, structural engineer and associate

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principal at Klein & Hoffman; and Marshall Dickler, association attorney and senior partner at Dickler, Kahn, Slowikowski & Zavell Ltd. An edited version of their discussion follows: Butler opened by asking the panelists what types of capital improvement projects their associations have been working on. Their collective answers included roof replacements, roof deck upgrades, facade repairs/restoration, lobby/hallway renovations, plumbing (riser) pipe replacements, elevator

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Kreg Allison

you’re seeing more than just the ordinary types of repair. In the city, we’re seeing riser replacements. Out in the suburbs, where they are replacing siding, they also have to replace a lot of the framing. That’s true in the city as well, even in high-rises, but it’s a little harder to detect. Some of these older buildings wouldn’t pass muster for some of the structural integrity requirements of today’s standards. Q: Tony, what are you seeing on the financing side as it relates to capital expenditures?

modernizations, and window replacements.

Amenity Space Improvements Emphasized Ted Haralson: Some of the projects I’ve been seeing have a lot to do with amenity spaces and hallways. With the recent boom in high-rise construction and new apartment buildings and new condominiums, all these properties have incredible amenity spaces. They have bowling alleys and movie theaters and lunch rooms, and older buildings are having to compete. Owners and board members who want to see their property values

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stay level or go up understand the need to improve their buildings. Adam Sanders: In the past couple of years, we’ve seen a major uptick in domestic water piping replacement projects. Sometimes the waste and vent pipes are replaced at the same time. It’s mostly buildings built in the ‘60s and ‘70s as well as buildings that are 90 to 100 years old. The pipe used 100 years ago and the pipe used 50 years ago seem to be coming to the end of their useful lives at the same time. Marshall Dickler: We’re really at the end of the useful life for a lot of infrastructure, so

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Anthony Dister: Many of the large-dollar capital repair projects are coming in a lot larger than in prior years. That might be due to deferred maintenance by associations who are still catching up from the downturn in the economy that occurred several years back. Maybe those projects have grown in scope, and they are addressing them now. We have been seeing your core projects being done --windows, roofs, risers, facades. We’re also starting to see associations requesting funds for lobby renovation, and not just simple lobby renovations. These are multi-million-dollar projects in some of the higher-end associations.

continued on page 19

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

by Pamela Dittmer McKuen

2018 state of the industry

Court Decisions & New Laws Favor Homeowners

LEGAL UPDATE

CONDO LIFESTYLES STATE-OF-THE-INDUSTRY LEGAL UPDATE A review of recent court decisions and legislation shows a significant trend toward the rights and protections of homeowners in community associations.

S

uch was the message from association attorney Gabriella Comstock at Keough & Moody, P.C. She delivered the Legal and Case Study Update at the 2018 Condo Lifestyles State-of-theIndustry luncheon seminar on December 13. The courts especially are increasingly favoring owners throughout not just Cook County but all of Illinois, she said. “We are seeing decisions that make sure there is more transparency and that the owners are protected,” she said. “We’re not going to have board

members continue going rogue and doing what they want as they manage their associations. That’s not necessarily a bad thing. We started this years ago with (Palm v. 2800 Lake Shore Drive Condominium Association), and it’s likely just going to continue.” (The full text of Comstock’s handout, “2018 Case Law and Legislative Update,” is reprinted elsewhere in this issue.)

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FEW LEGISLATIVE CHANGES THIS YEAR The year 2018 was neither active nor substantive for legislation with a couple of exceptions. *Amendments to Section 19 of the Illinois Condominium Property Act, which went into effect Jan. 1, 2018, give owners broader access to an association’s books and records. Previously, owners were allowed to request a current listing of owner names, addresses and percentages of ownership. The amendments added email addresses and telephone numbers to the list. Then, in the spring, the City of Chicago under its home rule authority disallowed the distribution of emails and telephone numbers. “Legislative attempts to scale back the amend-

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“The thing that is hard for us in the industry is the line where they said if you have a quorum of the board present and in a meeting, including executive session, you have to have minutes,” she said. “That’s where the big debate comes.” ~ Gabby Comstock

ments for all Illinois associations have so far failed,” Comstock said. “But efforts in this regard will continue in 2019.” *Section 35 of the Condominium and Common Interest Community Ombudsperson Act requires all associations to have a written complaint policy in effect by Jan. 1, 2019. “It’s something most associations and management companies are on top of, but if you don’t

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have yours adopted yet, make sure that happens,” Comstock said.

THE BOUCHER CASE Comstock discussed at length the case of Michael Boucher v. 111 E. Chestnut Condominium Association, certainly the year’s most controversial. “I’ll give you my two cents, and I’m sure Marshall (Dickler, association attorney and senior

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partner at Dickler, Kahn, Slowikowski & Zavell Ltd.) will give his two cents when it’s time for him to give some information here today as well,” she said with a smile. Overall, she said, “I don’t think the sky is falling.” She explained: The Boucher case is a perfect example of bad facts making case law. It’s a case where an association fined a unit owner for violating the governing documents. The violation was extreme disrespect to management, employees and others. The association sent him two violation notices. He asked and received a hearing, and he went to the hearing with an attorney. He asked to see the complaint that was submitted about him, and he was denied. One of the incidents occurred in an elevator and was captured on videotape. He asked to see the video, and he was denied that request as well. The board also had an audio and videotaping of the hearing. After the hearing, he asked for a copy of the hearing tapes and was again denied. “The court came down hard on the association, which is not surprising because of how we are seeing judges respond when an owner is being told, ‘No, no, no,’” she said. “There is a line in the

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

case where the judges basically said board members have a fiduciary duty, and it went on to explain that means essentially to treat the owners as you would want to be treated. I think that’s a reminder to all of us within the industry why the court did what they did and what is expected within association living.” She continued: The owner maintained he made a request under Section 19 for the audio and videotape of the hearing, which constituted meeting minutes. The association said the recordings were not minutes. However, the court said a quorum of the board was conducting business, and the Illinois Condo Act says minutes must be kept; therefore, the recordings constituted minutes, and the owner should have been given a copy. “The thing that is hard for us in the industry is the line where they said if you have a quorum of the board present and in a meeting, including executive session, you have to have minutes,” she said. “That’s where the big debate comes.”

MOVING FORWARD WITH BOUCHER Although the Boucher case raises a few questions, it also lays out some expectations and

The case presents several considerations for associations moving forward:

» Owners’ rights to view complaint violations. But other owners don’t want their neighbors to know they submitted a complaint. “The case doesn’t say we have to give the identity,” Comstock said. “It didn’t say we couldn’t redact some information.”

» Tapings and recordings are part of your books and records. “If we are going to assess a fine against someone based on our books and records, we are going to have to go the next step and provide that information to them as well,” Comstock said.

» How to document executive sessions. The answer is not clear, but in Comstock’s view, it isn’t taking minutes during the executive session. A better way is to document in open session what occurred in closed session. She expects discussion on this issue to continue. “I think this case is a perfect example of how we can take the ruling in Palm, the changes to the Illinois Condo Act that extended what we can discuss in executive session and it doesn’t have to be at a noticed meeting, but this is the court’s way of saying, ‘Don’t go too far,’” she said. (See Dickler’s response at the end of this report.)

responsibilities for associations and boards. Keep in mind the court’s directive: Treat others as you want to be treated. “This is very consistent with what we saw in the Palm case,” Comstock said. “What was the whole point of Palm? Making sure boards act in open meetings. Making sure there is transparency.”

IN OTHER COURTROOMS Questions still remain in reference to the case of 1010 Lake Shore Drive Association v. Deutsche Bank National Trust Co., which says buyers can wipe out a previous owner’s lien by paying their own assessments starting the month after the judicial sale. However, that court did not address by when the buyer must pay. Neither have later courts.

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continue working together to propose changes to the Illinois Condominium Property Act. “We’re all trying to do a better job of working together and communicating with our various Legislative Action Committees,” she said. “That’s very important right now when we find a lot of legislation relating to association living getting past where we want to see it.”

Work with your attorney and don’t deny somebody’s payment without making sure you are complying with the law, and more importantly, not putting the association in the position where they’re going into court saying you interfered with their attempts to pay.

MORE ON BOUCHER RULING:

~ Gabby Comstock “We don’t have the answers we are hoping for,” Comstock said. “We are still looking for a timeframe by which payments have to be made to extinguish the association’s lien. We saw a few more cases come down, but unfortunately no one is giving us a definitive response. It’s a case-by-case basis.” Her advice: Work with your attorney and don’t deny somebody’s payment without making sure you are complying with the law, and more impor-

tantly, not putting the association in the position where they’re going into court saying you interfered with their attempts to pay.

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Later in the program, association attorney Marshall Dickler of Dickler, Kahn, Slowikowski & Zavell Ltd., added his perspective of the Boucher decision: Gabriella Comstock “said she doesn’t think the sky is falling,” he said. “Well, I think it is worse than she suggests based on the actual wording of this case.” The Illinois Supreme Court denied taking the case, which means it currently stands as law, he said. “There are a lot of things said here about the duties of the board in all kinds of situations, so I think boards from now on have to be very careful about what they do,” he said. Y

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EVENT HIGHLIGHTS

ABOMA Annual Meeting & Holiday Party December 6, 2018 at University Club of Chicago

Pictured above is out going ABOMA President Tony Briskovic of Chicagoland Community Management and incoming ABOMA President Sheila Bryne of the Habitat Co.

Shown here is the 2019 ABOMA Board of Directors

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he Apartment Building Owners and Managers Association of Illinois held their 81st annual meeting and holiday party on December 6, 2018 and elected as Officers: President - Sheila Byrne, The Habitat Company, 1st Vice President - Dean Lerner, Sudler Property Management, 2nd Vice President – Jaime Sartin, Community Specialists, Treasurer, John Bieg, Draper and Kramer, and Sec-

retary, Robert Wiggs, ABOMA. ABOMA also announced their schedule of events for 2019: » Managers Night Out, early evening function at Athena Restaurant, Greek Town, Thursday, March 14, 2019 » Educational Seminar, afternoon function with networking, East Bank Club, Thursday, June 20, 2019

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» ABOMA AllStars Event - September 12, 2019, Chicago Sports Museum. » 81st Annual Meeting, noon function, University Club of Chicago, Friday, December 6th, 2019 All ABOMA events are for ABOMA members only. For more information visit www.aboma.com

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 INDUSTRY HAPPENINGS 

Illinois Ombudsperson

MCD Pool Party featuring Condolympics

During the period beginning January 1, 2017 and ending June 11, 2018, the Ombudsperson received 140 written inquiries. Of the persons submitting inquiries, 118 provided his or her address and 136 identified their “status� (attorney, board member, unit owner or “other�). The vast majority of those submitting inquiries (83%) were unit owners, while only 13 (approximately 9%) were individuals who identified themselves as board members. Among those who submitted written inquiries, only 118 (84%) identified the municipality within which they resided. Of these, 39 (33%) lived in an association within the City of Chicago.

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he Ombudsperson was able to identify a specific subject for 128 inquiries. More than one third of the inquiries raised governance issues—whether a board provided adequate notice of meetings, whether the board improperly conducted business in closed session and other claimed instances of lack of adherence to the Condominium Property Act or an association’s governance documents, for instance. Ten percent of the inquiries, most of which were received shortly following the effective date of the Act, questioned whether or when their association needed to have a written complaint process or whether or when associations were required to register with the Department. The Ombudsperson received nine inquiries concerning de-conversion, nine questions relating to the imposition or collection of regular or special assessments, eight inquiries regarding the maintenance or availability of

association records and eight questions related to the adoption or enforcement of rules. The Ombudsperson role is not a full-time position and the Ombudsperson also serves as the Associate General Counsel in the Department’s Division of Real Estate. The Ombudsperson has no additional staff. Approximately thirty-five percent of her time is devoted to serving as Ombudsperson. The Ombudsperson, Adrienne M .Levatino’s office is located at 100 West Randolph, 9th floor, Chicago, Illinois, 60601. The website is http://www.odfpr.com/CCICO/

The MCD Pool Party featuring Condolympics will be held on March 15, 2019 at the Pyramid Club in Addison. Join over 300 attendees that are involved in the community association industry for a fun filled afternoon that features industry networking, a food buffet, games, and special raffles that benefit Special Olympics Illinois. Last year's fundraising challenge was won by Property Specialists, Inc. with over $4,000 in donations collected. For more information visit www.condolifestyles.net or call 630-932-5551.

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CONDO LIFESTYLES

2018 state industry of the

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Management Michael Donnell - FirstService Residential Tairre Dever-Sutton - Tairre Management Gail Filkowski -First Community Management John Hancko - The Habitat Company Marla Jackson - DRAPER AND KRAMER, INC. Natalie Drapac, Molly Trogdon - Community Specialists William Townsell - Chicago Police Dept. Tom Skweres - ACM Community Management

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INDUSTRY HAPPENINGS

Draper and Kramer   In November of 2018, Draper and Kramer, Incorporated announced its Board of Directors has appointed Chief Operating Officer and General Counsel Todd Bancroft as the firm’s next president and chief executive officer. Bancroft, who has been serving as interim president and CEO of the real estate services firm for the last three months, succeeds Forrest D. Y Todd Bancroft Bailey, who was Draper and Kramer’s president and CEO for 20 years until stepping into a new role as vice chair and CEO emeritus in August, 2018. “Draper and Kramer has a legacy of impactful, visionary leaders who have made this company what it is today, beginning with its founders 125 years ago, and Todd very much carries on that tradition,” said Stephen P. Miller, board chairman for Draper and Kramer, a fifth-generation family-owned company. “As the Board searched for the right candidate to bridge the company’s 125-year history with its next chapter, we unanimously identified Todd as the right individual to guide the firm. He is a talented and trusted leader, with a deep understanding and appreciation for the company’s heritage as a familyowned business, as well as the ability to plan for the future and capitalize on new opportunities that align with Draper and Kramer’s broader investment strategy.” Bancroft joined Draper and Kramer in 2012 as chief administrative officer, senior vice president and general

»»»»»» INDUSTRY HAPPENINGS » Chicago-based Draper and Kramer, Incorporated, has been named a 2018 Top Workplace by the Chicago Tribune.

counsel responsible for mortgage and cash management operations. In 2014, he was promoted to COO and general counsel, overseeing operations across all four of Draper and Kramer’s divisions including acquisitions and development, commercial finance and residential management as well as the firm’s residential mortgage services group, Draper and Kramer Mortgage Corp. “I am honored to be appointed as Draper and Kramer’s next leader and thank the Board for its confidence and trust in me,” said Bancroft. “It is especially meaningful to be entrusted with this role as we marked Draper and Kramer’s 125th anniversary. I’m eager to work alongside our team to identify ways we can build on Draper and Kramer’s legacy – one that continues to differentiate us

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within the broader commercial real estate landscape.” Bancroft has a B.S. in accounting from the University of Illinois at Champaign-Urbana and J.D. from the University of Florida. He is a licensed real estate managing broker in the state of Illinois and a licensed real estate broker in the state of Michigan.  Also in November of 2018, Draper and Kramer was named a 2018 Top Workplace by the Chicago Tribune. The annual Top Workplaces list is based on results of an employee feedback survey, administered by an independent research firm that measures multiple aspects of workplace culture. This is the second year in a row that the company has participated in the program and received a Top Workplace honor.

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INDUSTRY HAPPENINGS

Associa Chicagoland Associa Chicagoland announces the recent promotion of Erica Horndasch, CMCA®, AMS®, to vice president. Ms. Horndasch has more than 20 years of community management experience and has been a valued Associa Chicagoland team member since 2014. She most recently served as the director of business development where she focused on Y Erica Horndasch building strong client relationships, bringing in new business, and community outreach for the branch. As the new vice president, Ms. Horndasch will be responsible for overall branch growth goals, developing the business development team, and the strategic development in suburban on-site community management where she will specifically oversee operations as well as manager supervision and development. “Associa Chicagoland continues to focus on expanding our services and reaching new markets,” stated

»»»»»» INDUSTRY HAPPENINGS » Stephanie Skelley, Associa Chicagoland president. “We are excited to have Erica strengthen her role on the leadership team. She is a highly motivated leader and is dedicated to delivering exceptional customer service to each of her clients. In this new position, she will be able to increase her client interaction and develop stronger relationships with our management teams. I am excited to see her continued professional growth.” Ms. Horndasch is an active member of the Illinois Chapter of the Community Associations Institute (CAI) and has obtained the Association Management Specialist (AMS®) and Certified Manager of Community Associations (CMCA®) designations from the Community Association Managers International Certification Board (CAMICB). She has served on the CAI board of directors from 2007-2014, and was elected president for the 20132014 term. Ms. Horndasch is also a member of the Association of Condominium, Townhouse and Homeowners Associations (ACTHA), the Institute of Real Estate Management (IREM), and the Apartment Building Owners and Managers Association (ABOMA). She currently serves as chairman of IREM for the annual Premier Awards and Silent Auction committees.

ACTHA ACTHA held a seminar on “Community Building, How to End Apathy” on November 27, 2018 at the Countryside Bank. Patrica Bialek, Vice President of First Service Residential, was the speaker and her main points included: • Community Apathy is a bad habit. • Community members need a “push cultivated by the Association leaders. • Survey the community • Employ the community website • Newsletters and establishment of website with unitowners contributions. • Have constant communications with unit owners. • Establish committees and volunteers after points of interest are known through the results of the survey. • Tap into the community “beavers” :Those who wish to contribute time. • Listen to the suggestions and value each contribution. • Have picnics, pool get-togethers organized by the committees. • Tap into the community interests. Organize clubs of interest. Start traditions. • Use the Community Clubhouse for social purposes as well as Association Meetings.

Fullett Swanson PC Effective October 5, 2018, Fullett Rosenlund Anderson PC changed its name to Fullett Swanson PC. The name reflects the growth and commitment of a practice that originated 32 years ago and our success as a boutique law firm practicing community association law. Our vision and goal remain the same – to continue to deliver the highest level of service and commitment to our clients.

ACTHA will hold its 2019 Spring Conference on Saturday, March 30 from 8:00 am – 4:00 pm at Drury Lane in Oakbrook Terrace. For more information on ACTHA seminars and other upcoming events, visit: www.actha.org/event.

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» INDUSTRY HAPPENINGS »»»»»» The Habitat Company Chicago-based The Habitat Company, a leading U.S. multifamily developer and property manager, recently announced that Christine Friend has joined the team as vice president, condominium management. Friend brings more than 25 years of experience in condo management to the role.

Y Christine Friend

“Christine has spent the majority of her career in condo management overseeing various Chicago properties,” said Sheila Byrne, executive vice president, property management at Habitat. “We look forward to seeing the impact of her contributions and expertise as she provides proactive services and support to the board members and unit owners while leading the division to continued growth.” In her new role, Friend will provide leadership and oversight for the 3,700 units in Habitat’s condominium portfolio in Chicago, Detroit and Tampa, including the Lofts at Rivertown, a 172-unit building in Detroit that is listed on the National Register of Historic Sites. Habitat was recently selected to manage the development, which was built in 1899 and originally home to the Sterns Pharmaceutical Warehouse. The property was converted to condos in 2005.

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Friend is a past president of the Apartment Building Owners and Managers Association (ABOMA) and is a member of the ABOMA Labor Negotiations Committee. She also serves as a management trustee for the SEIU Local 1 door staff 401k fund, has served as labor arbitrator, and is a past recipient of the Community Associations Institute’s (CAI) Rising Star Award, as well as CAI’s Olympus Award. She was recently elected to serve on CAI’s Illinois Legal Action Committee (ILAC) which represents the interests of community associations in Springfield and Washington D.C. as related to local, regional, statewide and federal legislation. “I’m excited for the opportunity to manage and help grow Habitat’s diverse portfolio of condominium properties,” Friend said. “Clients such as the Lofts at Rivertown look to us to provide residents and board members with five-star service and leadership so the properties not only hold or increase in value, but also continue to run efficiently and effectively for all.” Founded in 1971, The Habitat Company is a full-service residential real estate company specializing in property management, acquisitions and development. One of the largest residential property developers and managers in the United States, with over $3 billion in assets and more than 22,000 units under management across six states, the company’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities.

01.19

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.

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COVER STORY

Hot Topics, Trends & Issues from page 6 Q: Where does a board or property manager begin with a capital project? Terry McDonald: Depending on the project, bring in a consultant early for a feasibility study or condition assessment. It really helps guide the association in a certain direction and can help them stay on track. On the repair side, associations often ask us to evaluate their buildings and come up with a cost estimate. For capital improvements or amenities, we’ll often start off with a feasibility study. We’ll look at different materials and finishes and the cost per square foot, and do a quick evaluation, and this initial study may cross something off the list right away because of cost constraints. Howard Dakoff: When you have these major capital projects, your process should be more or less the same. One, you hire the professionals and understand the issue. Two, you need to have a conversation with your attorney to understand whether it is a common expense or a combination of common expense and charge-back to the owners. Third, you need to communicate. The old way may be a paper mailing, but today we are seeing websites devoted to a particular capital project. We’re seeing texts and emails, and we’re seeing regular meetings where owners can come listen to the status of the projects.

Q: What types of technology are especially useful in terms of capital projects? Michael Bonick: Drones are becoming more prevalent, but they are a little trickier than people think. People think drones can see anything we need to see, and they will solve all of our problems cheaper, faster and easier. A drone certainly can hone in on if you have a facade issue or a roof issue. Instead of spending $100,000 on scaffolding just to get a look, you might get a picture with a drone. McDonald: Drones are a great tool, but they don’t solve all the problems. Where we see it is somewhere between doing a hanging scaffold drop and using binoculars. You can spend half a day with a drone and get a fairly confident idea of everything you have wrong with your building, or close to that. Then you can target your scaffold drops strategically where you see some really big issues. You’re not risking$10,000 to do two drops and it turns out where you looked at the building is OK, but maybe you missed an issue in an adjacent drop. We’re going to see use of drones much more, especially as technology evolves. Bonick: The misconception about infrared thermography is that it’s like the movies where you can see through walls and know what’s inside there. It’s a little over-hyped.

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01.19

The concept of infrared thermography is that you can use a special camera to sense, instead of producing a visual image, the surface temperature of a building (wall or other component). Sometimes you can sense a heat source or the lack of a heat source behind something, but you can’t see through walls. Infrared thermography is not as expensive as it was 10 or 15 years ago, and it’s relatively quick. It’s great for chasing leaks, but you really need a temperature differential. The best way to get that, especially for roofs, is after dusk when the sun goes down. Dickler: A big issue is how do you retrofit? What is the smart thing to do right now, if anything? Do you put in fiber optics? Do you start replacing wiring because its 50 years old and the building can’t handle the current demand? Within the next couple of years, is technology going to change so greatly that there will be options far less expensive? Now with Bluetooth and wireless and wi-fi, things we were all doing to wire a building, so we could all have higher speed internet, you pretty much don’t have to do anymore. I think property managers as much as engineers have to look at the trends of the future (and technology) in order to help make smart decisions going forward. It’s an important part of your job.

CONDO LIFESTYLES

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Q: Adam, the replacement of domestic water risers can be terribly invasive, expensive and time-consuming. Can you give us a brief summary of what those projects are and what they entail? Sanders: A riser project is really a replacement of all the plumbing piping infrastructure in a building as needed. Sometimes the waste and vent pipes also need replacing; sometimes they don’t. The reason these projects are so invasive is the main risers serving all the association units in a building are typically behind your bathroom wall and kitchen wall. In order to replace the pipe, the plumbing work isn’t the difficult part. It’s the accessing it and restoring the finishes. It becomes a lot of general contractor costs, which is as much or more than what the plumbing cost is.

ommend that only if the pipe is structurally sound. That is, if there are no cracks or major disconnects in the pipe because that lining doesn’t add to the structural integrity of the pipe. For domestic water piping, we do not recommend the lining, and that’s a long conversation we don’t have time for today. Q: How can communication contribute to the success of these major projects? Haralson: I say ‘over-notice.’ We have to start early to let people know what is coming, or you’ll be destroyed at board meetings. Have a number of board meetings or town hall meetings to give homeowners a chance to air their grievances and get it all out. Once you start the project, you still are going to have a couple of people who will say, ‘I wasn’t notified,’ and you can go back and say, ‘We had five meetings.’

There are a lot of details that can greatly impact costs, such as if you have to replace the waste and vent pipe, is it cast in concrete? If you have to start saw-cutting concrete to replace that pipe, that can raise the cost tremendously.

As the manager, you are the leader of the project, along with the board. You have to display a positive attitude about the project. If you come in a little bit negative, that will permeate through the room. Show confidence that the project will be completed on time and on budget.

In addition to the cost is the inconvenience factor. Everybody has their own condo unit, so contractors are coming into their homes and opening up their walls. It’s a major deal.

Dakoff: Sometimes we get pulled into the back end. You’ve sent out your communications, and 16 owners refuse to respond. The manager calls and says, ‘What should we do?’ Sometimes they say, ‘Please notify the owner.’ I always tell the manager to pick up the phone and try one more time.

Q: What about pipe lining instead of riser replacement? Sanders: There is a technology out there for lining pipes, and our engineering firm does rec-

‘I understand you are frustrated, but we will get access to your unit. We will have to turn this over to the attorney, and you will be responsible for the legal fees and costs to get the access that is required, and it will be in the thousands of dollars.’ Q: Do you see the use of electronic communication expanding in your practice? Haralson: Technology makes it so much easier for property managers to communicate with owners. We have the option to send mass emails. We send a lot of notices. I like sending notices with pictures in them because a lot of people are very visual. I think the younger generation is really into email and text messages. It’s definitely growing, and we encourage it because nobody wants to go to the post office. (Chuckle from the audience.) Dakoff: We are definitely seeing condominium associations contact us to draft rules to allow for both. We are seeing the trend of communicating differently. The messages are the same, it’s just the method by which you are communicating that is different. Q: We’ve been seeing de-conversions happening for the last couple of years. Do you expect to see the trend continue? Kelly Elmore: We saw the de-conversion trend start about two and a half to three years ago. Over the course of that time, we assisted 28

MCD

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Call 630-932-5551 for more information.

Call 630-932-5551 for more information.

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01.19

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COVER STORY

buildings close their deals. The largest is Century Tower, which has 296 units. Every six months we look at each other in this industry, and we’ll say, ‘We’ll be done in six months.’ Then we add another six months. As we sit here today with 900 units to close next week, we are still seeing deals coming through. I think we’ll see more of smaller to midsize buildings coming up next, but the trend is still going on. Q: De-conversion can be a very emotional issue for everyone involved. What is your advice for managers and boards when they get a solicitation for de-conversion? Elmore: I’ve never seen such a hostile, emotional issue other than a special assessment meeting. Owners will scream at the board that they must have been in bed with the (building) buyer or that they are being kicked out of their homes. They make claims of malpractice against us and the management company. It’s not for the faint of heart. The most important thing to dispel that emotion is to properly present the information to the owners so they can be educated and the board can be educated. You want them to understand this is not an overnight process where your homes will be snatched from you overnight. Let them know they are a part of the process and how it will play out. It’s not the board’s decision to sell all the units.

If boards receive an offer, they should not sit on it. We had one property do that early on, when the trend was still new, and people didn’t understand what de-conversions were, and the board did not share the offer with the owners. When it was found out by other owners, it started off the process on a bad foot. Owners were upset thinking the board was trying to do something when it really was a genuine issue where the president didn’t understand what (a de-conversion offer) it was. Be as transparent as possible. As a manager, contact your attorney, so you can educate the board to understand what the process is and what their role is and what their duties might be. Have town hall meetings with the ownership and keep them informed. Our job as attorneys and as management is to remind the ownership this is a decision of the owners. We simply present the information. The board does its due diligence, and ultimately it is an owner’s decision. Q: Matt, we have a new assessor in town. How have you seen that impacting property tax appeals, or is it too soon to tell? Matthew Panush: The last assessor just finished reassessing the entire City of Chicago. The next area for the new assessor will be Northwest and Northeast suburban Cook County. Everyone is on pins and needles wondering what is going to

HH

happen as values fluctuate and values rise. These are interesting times. Q: What are the benefits of having a tax attorney handle an appeal rather than the association doing it themselves? Panush: With a condominium, townhouse or homeowners association, the Board of Review looks to value the building as a whole. The best way to insure each unit under the same roof is assessed uniformly and fairly is to file as a group, as an association. This way one appeal is going to be looked at by one analyst at the government agency and one value is going to be placed on the entire association. That value is then broken down by each unit’s percentage of interest. If an owner wants to file on his own, that’s fine, although it’s not really what the governmental agency is looking for. The more your owners file on their own, the more chances different values will be assigned. At the end of the day, different tax bills are being sent and paid for by owners who own the exact same percentage of interest in that association. That’s what creates headaches and starts problems for managers. People want to know, ‘How can Unit A be paying X, and I own the same percentage in Unit B and I’m paying Y?’ One appeal that covers all the units will hopefully keep those problematic phone calls away. Y

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01.19

CONDO LIFESTYLES

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CONDO LIFESTYLES

From the Editor

E

xcept for an early big snow event and a few brief cold periods, the first part of winter has been mild. Of course, we still have plenty of winter left and we’ll likely see some more snow and cold. We

CondoLifestyles

all know that it doesn’t take long in very cold conditions for pipes to freeze and ®

JANUARY 2019 | VOLUME 22 | NUMBER 4 Editor & Publisher Michael C. Davids Vice President Sherri Iandolo Art Director Rick Dykhuis Special Events Coordinator Mary Knoll Contributing Writers Pamela Dittmer McKuen, Jim Fizzell, David Mack, and Cathy Walker Circulation Arlene Wold Administration Cindy Jacob and Carol Iandolo Condo Lifestyles Magazine is published quarterly by MCD Media, a wholly owned subsidiary MCD Marketing Associates, Inc. For editorial, advertising and subscription information contact: 935 Curtiss Street, Suite 1A, Downers Grove, IL 60515. 630-932-5551 or 630-202-3006.

Y Mike Davids

then burst when a thaw occurs. Hopefully you took precautions this year against frozen pipes, ice dams on your roofs and other hazards of the brutal cold (and subsequent thaws) that the season can bring us. Our local and national economy has fared well in 2018, especially when compared to other countries that are experiencing economic troubles. Although rising interest rates have slowed the housing market in some areas, most everyone has enjoyed the recent low prices for gasoline. The stock market gains of 2018 were diminished by declines late in the year, but at the time of this writing, 2019 has brought a nice recovery to the stock market. Most prognosticators are cautiously optimistic, but uncertainty about trade relations with China and Geo-political risks cause concern and hesitation. Our cover story is a report on our “Condo Lifestyles State of the Industry” (SOI) program held in December at The Chicago Cultural Center. An outstanding panel of leading property managers, architects/engineers and attorneys offered their perspectives on current hot topics such as the Boucher Case (impacting closed sessions of board meetings), OSHA Roof Access requirements, capital project planning & financing, technology and property tax appeals at the SOI event as well. Our cover story features the highlights of the information shared by our experts at the SOI program as well as our Q&A session Attorney Gabriella Comstock gave a presentation on recent legislation and court cases for attendees. Pam McKuen provides an article that summarizes Ms. Comstock’s presentation. We have also included a summary of all the recent legislation and court cases that you should be aware of as a separate article by Ms. Comstock in this issue (some of which were not discussed at the SOI program). Additional coverage of this special event is also featured in this edition including photo highlights. You can also view all the event photos from this event at Facebook.com/mcd media. Two articles by Attorneys Howard Dakoff and Adam Kahn that provide further information on legal topics of leasing restrictions and requirements by the Ombudsperson Act to have a written policy for resolving unit owner complaints can also be found in this issue. Our regular Industry Happenings column also appears

Circulation: Condo Lifestyles is available for a single issue price of $8.95 or at a $30.00 annual subscription. Distribution is direct mailing and delivery direct through authorized distributors to over 5,000 officers and directors of Common Interest Communities, 800 property managers, 400 realtors, 400 developers and 400 public officials. Total Circulation is 9,500. Condo Lifestyles attempts to provide its readership with a wide range of information on community associations, and when appropriate, differing opinions on community association issues.

in this edition as is customary.

MCD Pool Party to feature Condolympics Games Our annual MCD Pool Party will be held on March 15, 2019 at The Pyramid Club in Addison. Tournaments will be held for 8-ball (billiards) and darts. Other events for Condolympics competition will also be held at the MCD Pool Party. The Condo Lifestyles Condolympics donations will benefit Special Olympics. Other upcoming MCD special events include our annual golf outing, which will be held on July 12 at Eaglewood Resort in Itasca, and a luncheon at Arlington International Racecourse on August 22nd. We will provide more information on these events as you request and as details are available at www.condolifestyles.net.

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

Thanks to the many new subscribers that have found our publication useful and informative. Special thanks to the firms, associations and groups that are Authorized Distributors of Condo Lifestyles. Those of

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.

you who are not current subscribers can obtain subscription information on our website www.condo-

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.

(mdavids@condolifestyles.net Y

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lifestyles.net or by contacting our office. As we welcome in another new year, we encourage you to make your association and your community all it can be. If you have an idea that would benefit other Community Associations, a story to share, or some advice on how to avoid a problem or failure, please call our office at 630-932-5551 or send us an e-mail

Michael C. Davids Editor and Publisher

01.19

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


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

01.19

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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

AIRWAYS SYSTEMS, INC. 630-595-4242 Cleaning: Air/Laundry/Toilet Exhaust Ducts, Coils, Trash Chutes, Parking Garages. Also Air Filters, Belts www.airwayssytems.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

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

Nancy Ayers www.condorisk.com

HOLLINGER SERVICES, INC. (847) 437-2184

USA FIRE PROTECTION (224) 433-5724

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

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

24/7 EMERGENCY SERVICE: (847) 816-0050

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

www.usafireprotectioninc.com

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

GARBAGE CHUTE CLEANING BROUWER BROS. STEAMATIC (708) 396-1444

www.rainbowrestore.net

All types of environmental cleaning. www.BrouwerBrothers.com

THE RESTORATION GROUP, LLC (630) 870-0658

HANDYMAN/MAINTENANCE

www.trgrestore.com

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

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

"Restoring Happiness" www.skylinedki.com

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CONDOLIFEST YLE S

Cond O lympics March 15, 201 9 For more in format www.condolifestyion visit les.net

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

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CONDO LIFESTYLES

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 26

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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

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

ASSOCIA CHICAGOLAND (312) 944-2611 / (847) 490-3833 www.associachicagoland.com

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

Quality, Service, Performance and Integrity www.hhsg.net

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300 www.chicagoland-inc.com

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

HILLCREST MANAGEMENT (630) 627-3303 / (312) 379-0692 www.hillcrestmgmt.com

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

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

KANE PROPERTY MANAGEMENT CORP. (773) 472-2300

www.chicagopropertyservices.com

MORE LIVING. LESS WORRYING. DRAPER AND KRAMER INC. (312) 346-8600 Contact Ian Novak www.draperandkramer.com

FIRSTSERVICE RESIDENTIAL (312) 335-1950

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

MCGILL MANAGEMENT, INC. (847) 259-1331 www.mcgillmanagement.com

Contact Asa Sherwood

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

www.fsresidential.com

POWER WASHING

HEIL, HEIL, SMART & GOLEE LLC 847 866 7400

www.nimrodrealty.com

FIRST COMMUNITY MANAGEMENT (312) 829-8900

PROPERTY MANAGEMENT SPECIALISTS 847-845-6067

Guiding board members since 1988 www.condomanagement.com

www.Pmgrs.com

powercleaninc@netzero.net www.powercleaninc.com

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CONDO LIFESTYLES

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CONDO LIFESTYLES

PROPERTY MANAGEMENT

REAL ESTATE TAX ATTORNEY

PROPERTY SPECIALISTS INC. (847) 806-6121

SARNOFF & BACCASH 312-782-8310

(630) 633-5450

Attorneys at Law www.sarnoffbaccash.com

ROLLING MEADOWS OFFICE WOODRIDGE OFFICE

www.psimanagement.net

WORSEK & VIHON LLP (312) 368-0091

REALMANAGE 1(866) 473-2573

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

www.sudlerchicago.com

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

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560

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

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

CSR ROOFING CONTRACTORS (708) 848-9119 All Types of Roofing Installation, Repairs & Maintenance www.csr-roofing.com

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

www.superiorreserve.com

HAMMERBRUSH PAINTING & CONSTRUCTION (630) 320-9676

RESERVE ADVISORS, INC. (312) 625-4958

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

A remarkably simple reserve study system Custom, Comprehensive Studies Conducted by Professional Engineers Contact Corinne Billingsley corinne@reserveadvisors.com www.reserveadvisors.com

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

Long-term Thinking. Everyday Commitment.

www.villamgt.com

REAL ESTATE TAX ATTORNEY

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

www.wvproptax.com

www.realmanage.com

SUDLER PROPERTY MANAGEMENT (312) 751-0900

ROOFING

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

ELLIOTT & ASSOCIATES (847) 298-8300

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

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

MCCRACKEN MCCRACKEN BEHRENS (312) 263-4308

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

Concentrating in Property Tax Appeals since 1976

www.mmbtaxlaw.com

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

PROHTOP ROOFING (847) 559-9119 We’re Here When You Need Us! www.protoproofing.com

Roofing, Siding & Windows www.aaexs.com

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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

ROOFING

SIDING / RENOVATIONS

TV-BULK CABLE & SATELLITE

SITE MAINTENANCE, INC. (847) 697-1077

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

UPSTREAM NETWORK 844-55-STREAM

www.sitemaintinc.com

www.upstream.network

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

S&D ROOFING SERVICE (630) 279-6600 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

VAN DOORN ROOFING, INC. (847) 228-5800 A Respected Name in Commercial Roofing For Over Three Decades Roofing/Sheet Metal/Maintenance/Repairs www.vandoornroofing.com

SECURITY SERVICES

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

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

WASTE SERVICES

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

LAKESHORE RECYCLING SYSTEMS (773) 685-8811

SP+ (773) 847-6942

www.LakeshoreRecyclingSystems.com

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

WINDOWS/REPLACEMENTS ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

THE WINTER WERKS (630) 241-0001

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

XFINITY COMMUNITIES 1 (800) XFINITY

www.mancioneinc.com

Roofing, Siding & Windows www.aaexs.com

SWIMMING POOLS

D-WING CONSTRUCTION (630) 397-8889

www.admiralsecuritychicago.com

SIDING / RENOVATIONS ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

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

Roofing, Siding & Windows www.aaexs.com

D-WING CONSTRUCTION (630) 397-8889

TOWING

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

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

www.insideoutcompany.com

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

FORDE WINDOWS AND REMODELING, INC. (847) 562-1188 Trusted Window Replacement Services Since 1987 www.fordewindowsandremodeling.com

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

CONTRACT TOWING (779) 707-6935

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

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

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

SPMS (630) 692-1500

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

Please visit us at www.condolifestyles.net ... and view mcd event photos at Facebook/mcdmedia

www.woodlandwindows.com

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01.19

CONDO LIFESTYLES

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CONDO LIFESTYLES

by Gabriella R. Comstock - Keough & Moody PC

2018 Case Law and Legislative Update Case Law In re Application of Skidmore, 2018 IL App (2d) 170369 (February 14, 2018) Court granted Petitioner a tax deed for condominium for which Petitioner had purchased delinquent property taxes. County clerk's practice of using PIN on line designated for certificate number does not violate Property Tax Code. Petitioner strictly complied with notice requirements of Code, entitling it to a tax deed.

Board of Managers of the Northbrook Country Condominium Association v. Spiezer, 2018 IL App (1st) 170868 (February 20, 2018) Condo Board sued Trustee to recover common expenses owed on her condo unit. Court entered default judgment and order of possession, the last such order being in January 2013. Trustee's son filed a timely notice of appeal, which court dismissed for want of prosecution. Three

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years later, Trustee's son filed petition to vacate January 2013 order of possession, which court denied, and motion to reconsider, which court denied. Trustee's son then filed another notice of appeal. Motion to vacate does not create right to appeal under Rule 303. Appellate court has no authority to address issues raised in an untimely motion.

Henderson v. Lofts at Lake Arlington Towne Condominium Association, 2018 IL App (1st) 162744 (March 16, 2018) Plaintiff filed suit for injuries in slip-and-fall on a stoop and stairs just outside condominium entrance. Court erred in granting summary judgment for Defendants. Defendants' duty was not eliminated by evidence that dangerous "slippery-when-wet" condition was "known" to Plaintiff, because it was still reasonably foreseeable that Plaintiff might momentarily forget that condition and suffer injury. Thus, "forgetfulness or distraction" exception to open and obvious doctrine applies. Genuine

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L E G A L U P D AT E

issues of material fact exist as to whether Defendants breached duty of care and whether any such breach proximately caused Plaintiff 's injuries. Court properly granted 3rd-party defendant's motion for summary judgment as to independent contractor's contribution claims against her, as there is no evidence that she had any prior knowledge or control of epoxy work.

V&T Investment Corporation v. West Columbia Condominium Association, 2018 IL App (1st) 170436 (May 18, 2018) Plaintiff, a real estate investment company, was foreclosure sale purchaser of condominium unit. Condo association issued a paid assessment letter, at Plaintiff 's request, stating total amount due. Plaintiff paid that amount under protest. First assessments came due the month after the foreclosure sale. Plaintiff 's payment of

1st assessment was prompt, as it was made shortly after confirmation of sale, and thus their payment extinguished the prior section 9(g)(1) lien on the condo unit. Plaintiff had no obligation to pay any assessments that had accrued before it acquired title. Reversed and remanded for entry of judgment in favor of Plaintiff for a portion of payment it made under protest.

Quadrangle House Condominium Association v. U.S. Bank, N.A., 2018 IL App (1st) 171713 (April 20, 2018) Purchaser of a condominium unit at a judicial foreclosure sale is obligated to pay the common expenses for the unit assessed from and after the first day of the month after the date of the judicial foreclosure sale. This fixes the date when purchaser's liability for assessments begins. Payment of post-purchase assessments, whenever made, is the step necessary to confirm extinguishment of any lien created under section 9(g)(1) of the Condominium Property Act.

Dedic v. Board of North Shore Towers Condominium Association, 2018 IL App (1st) 171842 (May 17, 2018) Condominium owner sought permanent injunction to prevent condo association Board from levying a $1.01 million special assessment to remediate all 90 balconies in her residential condo complex, and from executing a contract to perform the work. Court properly denied request for permanent injunction. Record clearly shows that raisings of 56 of the 90 balconies posed imminent safety risks to the unit owners and constituted an "emergency", and were not compliant with local building code requirement. Record showed that 80-85% of cost of remediation project had to be incurred to address only these 56 most dangerous balconies, with remaining portion of the cost being incurred for preventative maintenance.

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Geraci v. Union Square Condominium Association, 891 F.3d 274 (7th Cir. May 26, 2018)

Sylva, LLC v. Baldwin Court Condominium Association, Inc., 2018 IL App (1st) 170520 (June 4, 2018)

In action by plaintiff-condominium owner alleging that defendantcondominium association violated Fair Housing Act by retaliating against her for submitting accommodation request based on her diagnosis of posttraumatic stress disorder (PTSD), plaintiff failed to establish viable retaliation claim, where plaintiff asserted as coercive, adverse act fact that defendant held open forum with other condominium owners and sent two litigation update letters to said owners regarding status of her FHA handicap claim against defendant. Plaintiff 's claimed act of retaliation did not qualify as sufficient adverse act, since at moment that plaintiff had filed her handicap claim, her PTSD condition became public knowledge, and plaintiff 's counsel conceded that information about plaintiff 's handicap that was mentioned at forum or in letters did not go beyond facts contained in public records. Moreover, no federal law prevents co-owners of condominium association from knowing why their association is bearing legal costs. Also, district court did not err in allowing defendant to present expert testimony at trial on issue as to whether plaintiff 's PTSD qualified as covered handicap condition under FHA, since defendant was merely responding to plaintiff 's evidence that supported her claim that her condition was covered under FHA.

Plaintiff bought condominium unit at a judicial foreclosure sale. Condominium Property Act does not require a condo association to file suit against prior owner to collect unpaid assessments from foreclosure buyer. A condo association is entitled to up to 6 months of unpaid assessments dating from the time the Association took requisite action to enforce its right to collect back assessments from foreclosure buyer, pursuant to Section 9(g)(4) of the Act.

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Radiant Star Enterprises, L.L.C. v. Metropolis Condominium Association, 2018 IL App (1st) 171844 (June 7, 2018) Plaintiff company filed declaratory judgment action against condo association to enforce arbitration clause, seeking a ruling that association was required to arbitrate a dispute between parties, who were coowners of property in downtown Chicago. Court properly found that under language of the parties' arbitration agreement, the party which has allegedly breached an arbitration clause as to one dispute may demand arbitration on a different, unrelated dispute.

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GUEST EDITORIAL

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Boucher v. 111 East Chestnut Condominium Association, 2018 IL App (1st) 162233 (June 14, 2018

U.S. Bank N.A. v. Quadrangle House Condominium Association, 2018 IL App (1st) 171711 (June 26, 2018)

Owner of condo unit filed complaint alleging that condo board members and Association violated the Condominium Property Act by fining him for expressing his opinions about condo management. Plaintiff adequately alleged that board members violated the Act by penalizing him for expressing his opinions. Plaintiff presented evidence that could support a finding that board members violated the Act when denying his request for recording of disciplinary hearing, and that Association and board members breached fiduciary duties in failing to disclose to Plaintiff the evidence against him. A plaintiff states a cause of action against Association for violation of his right to free speech by alleging that Association precluded him from expressing his political opinion or that Association penalized him for expressing his opinions.

Prompt payment by bank of post-foreclosure sale assessments, several months after purchasing a condominium unit at a judicial foreclosure sale, extinguished lien of condo association for pre-foreclosure sale assessments pursuant to Section 9(g)(3) of Condominium Property Act.

Hussey v. Chase Manor Condominium Association, 2018 IL App (1st) 170437 (June 14, 2018) An informal pathway behind a condo building, through and beyond a parking area to the rear entrance of the building is not a "sidewalk" under the Snow and Ice Removal Act's immunity provision for removal of snow or ice from a "sidewalk". A "sidewalk", within meaning of the Act, is limited to the municipal right-of-way, the part of the public street reserved for pedestrian use that abuts private residential property.

BMO Harris Bank, N.A. v. Jackson Towers Condominium Association, 2018 IL App (1st) 170781 (June 29, 2018) Bank filed foreclosure as to condominium unit and later was successful bidder at judicial foreclosure sale. Court properly dismissed declaratory judgment action filed by bank, as its payments of post-sale assessments were untimely and thus failed to confirm extinguishment of lien of condo association for delinquent presale assessments under Section 9(g)(3) of Condominium Property Act. Bank cannot use declaratory judgment process to contest validity of a lien for presale assessments that has already been satisfied by payment by bank.

Ellison v. Fullett Rosenlund Anderson, 2018 WL 4682336, United States District Court, Northern District of Illinois (September 28, 2018) It violates the FDCPA when a debt collector sends notice to a

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 34

CONDO LIFESTYLES

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L E G A L U P D AT E

homeowner that is misleading as to the personal responsibly for repayment of a discharged debt. The notice here, although prescribed by the Illinois Eviction Act as a prerequisite to filing the lawsuit, could be misleading to the “unsophisticated consumer.” The Eviction Act requirements can be met without violating the FDCPA by either informing the homeowner that she is not personally liable for the debt or by specifying the amount, if any, she is still personally liable for.

Hometown Condominium v. Mohammed, 2018 IL App (2d) 171030 (November 29, 2018) Court discussed “prompt payment” and distinguished routine delays from intentional delays in payment. The Court held that Section 9(g)(3) of Condominium Property Act requires full payment of postjudicial sale assessments to extinguish the lien for pre-sale amounts.

Legislative Changes (effective date after 1/1/2018) Illinois Condominium Property Act (765 ILCS 605/1, et seq.) Amendment to Section 18 “Contents of Bylaws”, effective 8/14/18: No substantive change. Amendment to Section 19 “Records of the Association; Availability for Examination”, effective 8/14/18: Commas added; word “subdivisions” replaced with “subdivision”.

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

Amendment to Section 27 “Amendments”, Effective 8/14/18: Word “paragraphs” replaced with “paragraph”; word “this” deleted.

Condominium and Common Interest Community Ombudsperson Act (765 ILCS 615/1, et seq.) Pursuant to the requirements contained in Section 35, all associations governed by the Condo Act or CICAA must establish and adopt a written policy for resolving complaints made by unit owners no later than January 1, 2019.

Community Association Licensure and Disciplinary Act (225 ILCS 427/1, et seq.) Amendment to Section 25, effective 8/14/18: Members of CAMLD Board shall be for 4 years and expire at end of term. No cumulative service to exceed 10 years. Vacancy appointments made by the Secretary. Members currently serving may serve remainder of terms. Amendment to Section 40, effective 8/14/18: Lowers minimum age for CAM licensure to 18 years. Amendment to Section 42, effective 8/14/18: Lowers minimum age for supervising CAM licensure to 18 years. Amendment to Section 85, effective 8/14/18: Provision regarding default on student loan as ground for disciplinary action was deleted. Y

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by Howard S. Dakoff, Esq. and Adam T. Kahn, Esq. Levenfeld Pealstein

provided by: Illinois Department of Financial and Professional Regulation DIVISION OF REAL ESTATE / Ombudsperson's Office

Ombudsperson Act Requires Written Policy For Resolving Owner Complaints

What Insurance

O

n December 29, 2014, the Condominium and Common Interest Community Ombudsperson Act (the “Ombudsperson Act”) was signed into law. The goal of the Ombudsperson Act is to both educate associations, owners and boards of directors about the Illinois Condominium Property Act (“ICPA”) and Common Interest Community Association Act (“CICAA”) and collect data on any abuses and problems to prioritize any future reform. To accomplish this goal, the Ombudsperson Act, which applies to all condominiums governed by ICPA and all associations governed by CICAA, establishes the Office of the Condominium and Common Interest Community Ombudsperson (the “Ombudsperson’s Office”) and requires that associations adopt a written policy for resolving owner complaints. While the Ombudsperson Act went into effect on January 1, 2017, the deadline for associations to adopt a written policy was pushed back to January 1, 2019. This deadline has passed, but the Ombudsperson Act does not specify a penalty for failing to timely adopt a written policy. As a reminder, the written policy must be made available to all owners and include: i. a sample owner complaint form; ii. a description of the process for delivering complaints to the association; iii. the manner of making final determinations in response to complaints; and iv. a requirement that a final determination be made in writing within 180 days after receipt of the original complaint and marked “final”. Beginning July 1, 2020, owners may submit a written request to the Ombudsperson’s Office to resolve a dispute. There are limits to the disputes that the Ombudsperson’s Office can handle. In particular, the Ombudsperson’s Office can only assist with a dispute where all of the following conditions are met: 1. The Association (not the property manager or another owner) is the subject of the dispute; 2. A violation of ICPA or CICAA is alleged; 3. There is no prior, pending or scheduled court case/administrative proceeding, arbitration or alternate dispute resolution proceeding concerning the dispute; 4. The complaining owner does not owe an outstanding assessment/fee to the association (unless it is central to the dispute); 5. The complaining owner has exhausted the requirements of the association’s written policy; 6. The request for assistance is filed with the Ombudsperson’s Office by the complaining owner within 30 days of receipt of the board’s decision; 7. The dispute initially occurred within 2 calendar years of the request to the Ombudsperson’s Office; and 8. The parties mutually agree to participate in the dispute resolution process with the Ombudsperson’s Office. The Ombudsperson Act may also be a a relatively short-term issue, as it is slated to be repealed automatically on July 1, 2022 (unless it is extended). At first glance, compliance with the Ombudsperson Act may seem onerous; but so long as associations adopt and adhere to the written policy for resolving owner complaints, it should not present much of an issue – and may even help resolve or mitigate certain issues raised by owners concerning their associations. If your association has not yet adopted a written policy or has questions regarding the process of evaluating an owner complaint, it is recommended that your association seek guidance of its legal counsel or engage counsel with subject matter expertise in the area. Y

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A Condominium Association is required

to have the following insurance, per Section 12 of the Illinois Condominium Property Act (765 ILCS 605/12):

(1) Property Insurance: The Association shall maintain Property Insurance (1) on the common elements and the units, including the limited common elements and except as otherwise determined by the board of managers, the bare walls, floors, and ceilings of the unit, (ii) providing coverage for special form causes of loss, and (iii) providing coverage, at the time the insurance is purchased and at each renewal date, in a total amount of not less than the full insurable replacement cost of the insured property, less deductibles, but including coverage sufficient to rebuild the insured property in compliance with building code requirements subsequent to an insured loss, including: Coverage B, demolition costs; and Coverage C, increased cost of construction coverage. The combined total of Coverage B and Coverage C shall be no less than 10% of each insured building value, or $500,000, whichever is less.

(2) General Liability Insurance: The Association shall maintain commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use, or management of the property in a minimum amount of $1,000,000, or a greater amount deemed sufficient in the judgment of the board, insuring the board, the association, the management agent, and their respective employees and agents and all persons acting as agents. The developer must be included as an additional insured in its capacity as a unit owner, manager, board member, or officer. The unit owners must be included as additional insured parties but only for claims and liabilities arising in connection with the ownership, existence, use, or management of the common elements. The insurance must cover claims of one or more insured parties against other insured parties.

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BOARD BASICS

is an Association Required to Maintain? (3) Fidelity Bond (Crime Insurance): An association with six (6) or more dwelling units must obtain and maintain a fidelity bond covering persons, including the managing agent and its employees who control or disburse funds of the association, for the maximum amount of coverage available to protect funds in the custody or control of the association, plus the association reserve fund. The fidelity bond must be in the full amount of association funds and reserves in the custody of the association or the management company.

(4) Director and Officers Liability Insurance: The board of directors must obtain directors and officers liability coverage at a level deemed reasonable by the board, if not otherwise established by the

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declaration or bylaws. Directors and officer’s liability coverage must extend to all contracts and other actions taken by the board in their official capacity as directors and officers, but this coverage shall exclude actions for which the directors are not entitled to indemnification under the General Not For Profit Corporation Act of 1986 or the declaration and bylaws of the association. The coverage shall include, but not be limited to, coverage of: defense of non-monetary actions; defense of breach of contract; and defense of decisions related to the placement or adequacy of insurance. The coverage shall include as an insured: past, present, and future board members while acting in their capacity as members of the board of directors; the managing agent; and employees of the board of directors and the managing agent.

01.19

Common Interest Community Association A Common Interest Community Association should review its Association’s community instruments to determine what insurance the Association is responsible for maintaining. Y

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by Ken Bertolucci - NS Management

Superpowers?Helpful, but not Required Sometimes it seems that homeowners think community association managers are gifted with superpowers. They are all-knowing, have x-ray vision, and are able to resolve all matters with a simple decree.

M

isunderstandings about the responsibilities of the manager, misperceptions about the roles of the board vs. management, and lack of knowledge about the proper functions of community associations often result in confusion for homeowners. Let’s face it, few buyers read (much less understand) the pile of association-related legal documents they receive at closing. I would like to clarify some of the most common misconceptions about association management.

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M A N A G E M E N T TA L K S

1. Can impose new rules and implement policy changes. A medical doctor whose daughter was a resident in one of our communities wanted the association to be declared a non-smoking complex. When he contacted me about it, I explained to him that this not a decision made by management and it would require an amendment to the declaration. He was not dissuaded and continued to forward me antismoking materials and send impassioned emails about the dangers of secondhand smoke. I finally had to have the association legal counsel send him a letter verifying the process to implement such a change. Rather than work with the board in an effort to garner support for an amendment to the declaration, he ended his anti-smoking campaign. While it would certainly be easier to convince one person to implement change by decree, that contradicts the spirt of a representative democracy at the foundation of community associations. While sometimes slow and messy, working with your elected board and neighbors to reach consensus is in every homeowners’ best interests.

While a professional manager often has a working knowledge of building components, property services, and association law, managers are typically not licensed professionals in those fields. Instead we use a strong network of contacts to propose the best experts to address the unique needs of each association. Even though community association managers sometimes act like superheroes,

they are mere mortals. If there is a “super” associated with a manager’s name it refers to the level of commitment and dedication that they have toward their profession. As managers, our objective is to act as a trusted advisor and guide to the community. No superpowers are required. Y

2. Set assessment amounts and determine increases. When we take over management of a community association, at the introductory meeting I am always asked if assessments will increase or payment due dates changed. I explain that management companies do not make such decisions, but the board of directors do. It is often helpful to remind homeowners that management works for the board, not the other way around.

3. Experts on every facet of building operations: I have been asked to provide a detailed explanation of how a heating system works and have had to decline irritated board members that wanted me to provide free legal advice (without a license). I’ve even been asked to do a full inspection of the common elements and report to the board with the projected lifespan of all the major components. After all, a reserve study was too costly.

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01.19

CONDO LIFESTYLES

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CONDO LIFESTYLES

by Howard S. Dakoff, Esq. and Adam T. Kahn, Esq. Levenfeld Pearlstein, LLC

What to Know About Implementing Leasing Restrictions Leasing restrictions can be a divisive issue among condominium association unit owners and boards of directors. On one hand, too many leased units may lead to a scarcity of traditional lending at market interest rates and some unit owners prefer the community feel of an “owner-occupied” building. On the other hand, restricting leasing limits the ability of a unit owner to use their unit as an incomegenerating asset and, depending on the extent of leasing restrictions, can exclude investor owners from the pool of prospective purchasers of units.

W

hile leasing restrictions are ultimately a community decision, there are several factors condominium boards should consider in weighing whether (and how) to pursue the adoption of leasing restrictions. This article highlights the general process for implementing leasing restrictions,

types of leasing restrictions, and methods for enforcement.

I. Methods to Restrict Leasing There are two ways to impose leasing restrictions in a condominium association. The first option is the Board of Directors adopting a rule or regulation to restrict

leasing; however, this right has been severely curtailed by Illinois case law from 2016 (Stobe v. 842-848 West Bradley Place Condominium Association). Stobe makes clear that if the condominium association’s declaration provides unit owners the right to lease their units, leasing cannot be restricted via rule and regulation and instead a declaration amendment (discussed below) is required. The second option is a leasing restriction via a declaration amendment. This requires the requisite unit owner approval (and mortgagee approval if required in the association’s declaration). The threshold for amending the declaration is set in an association’s declaration, which is most commonly two-thirds (2/3) unit owner approval, but is capped at 75% per the Illinois Condominium Property

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L E G A L U P D AT E

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01.19

CONDO LIFESTYLES

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CONDO LIFESTYLES

Act (the “Act”). The procedure to amend the declaration to add a leasing restriction is set forth in each condominium declaration, but generally requires the following steps: (1) the board determines the parameters of the leasing restriction (further discussed below) and a declaration amendment is drafted; (2) notice of a unit owner meeting is sent to unit owners, along with the text of the proposed leasing restrictions (unless the governing documents

allow for unit owner signature to approve a declaration amendment); (3) unit owners vote to approve the amendment; (4) once the requisite unit owner approval is obtained, the declaration provision on lender approval and/or notification is followed; and (5) the amendment is recorded and becomes effective. Restricting leasing via declaration amendment is a more arduous process than simply enacting a Board-adopted rule and regulation.

II. Types of Leasing Restrictions The most obvious (and strict) form of leasing restriction is an outright prohibition on leasing, which are currently out of vogue given the adverse effects they have on the Federal Housing Administration backed lending. There are also several options for partially restricting leasing, including, but not limited to: (i) a cap on the number of units that can be leased at one time (e.g., no more than 25%), (ii) a minimum lease term (e.g., at least 12 months; this is particularly helpful in eliminating hotel/transient rentals), and (iii) a minimum ownership requirement before a unit can be leased (e.g., unit owners must own their unit for three years before they can lease it). Leasing restrictions can also be used in conjunction with one another. For example, an association can require that leases be for at least 12 months and that no more than 20% of units may be leased at any one time. A way to make leasing restrictions more palatable (and equitable at times) is to include a hardship exception, whereby the board may (but is not required to) permit a lease that would otherwise violate a leasing restriction. Further, if obtaining the requisite approval is less likely than initially contemplated, the leasing restrictions can be drafted to “grandfather in” existing leases to increase unit owner approval likelihood. In sum, leasing restrictions can be tailored to meet the needs of the association, and compromise may be needed to obtain the necessary approval for implementing the restrictions (either via rule or declaration amendment).

III. Enforcement of Leasing Restrictions One of the most important parts of a leasing restriction is the method of enforcement. Per the Act, enforcement mechanisms for violating properly adopted leasing restriction include: (a) levying fines against a violation unit owner, (b) filing a lawsuit to evict a tenant from the unit, (c) seeking an injunction to prevent any future leasing in violations of the restriction, (d) assessing legal fees and costs incurred to enforce the lease restriction, (e) recording a lien against the unit for any such fines, legal fees and costs, and (f) pursuing any other remedy available in the association’s governing documents. The association could also adopt a rule

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01.19

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CONDO LIFESTYLES

setting forth the minimum amount of fine for any violation of the leasing restrictions. If a condominium association in the City of Chicago amends its declaration to prohibit short-term/transient/hotel leasing, the board can register for the city’s “Prohibited Building List,” which requires that home sharing websites prevent listing of rentals on their websites or face penalties. It is important to note that

if leasing restrictions are not properly implemented, they will not be enforceable.

CONCLUSION While different stakeholders in a condominium association will likely have differing views on the need for – and wisdom of – leasing restrictions, leasing restrictions can be drafted to meet the needs and goals of a particular association. Board members and unit owners should be mindful that each association’s

circumstances are different and the actual language of the leasing restriction will depend on the particular facts and circumstances of a building. Y

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