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januaRy 2016 | volume 19 | numbeR 4

CondoLifestyles

©

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

$8.95

State-of-the-Industry

Report

H OT TO P I C S, T R E N D S & I S S U E S F O R CO M M U N I T Y A S S O C I AT I O N S

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COVER STORY

03 Condo Lifestyles State of the Industry Report Hot Topics, Trends & Issues for Community Associations

By Pamela Dittmer McKuen S P E C I A L F E AT U R E

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09 Living with New Community Association Laws

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13 Thoughts on Random Issues, Including Things that Annoy Me and Possibly You as Well – Part II

By Stuart Fullett 16 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo 20 From the Editor 21 Directory Advertisements L E G A L U P D AT E

28 Q & A on Lodging Taxes for Short Term Rentals EVENT HIGHLIGHTS

29 Condo Lifestyles State of the Industry GUEST EDITORIAL

30 Top 10 Qualities of a Highly Qualified Vendor

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32 Community Association Case Law and Legislative Update

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By Pamela Dittmer McKuen

State-of-the-Industry

Report

The 2015 Condo Lifestyles State-of-the-Industry once again brought together community association professionals and homeowners for an inspiring program of education, networking and conviviality. This year’s event took place at the historic Chicago Cultural Center on Thursday, December 10.

P

resented by mCD media, publisher of Condo lifestyles and Chicagoland buildings & environments magazines and websites, the State of the Industry program began late morning. Information tables and vendor exhibits provided expertise on areas such as window replacement, credit reporting, fire detection and signaling, emergency restoration and much more.

after a delicious catered lunch was served, the welcome and opening remarks were delivered by michael C. Davids, president of mCD media. He formally opened the program by thanking the attendees, sponsors, event organizers and mCD media advisory board members.

“It is important that we take time to gather, to share our views and perspectives, to

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Hot Topics, Trends & Issues for Community Associations help grow relationships and meet others who work in the industry we call community associations,” he said. legislation and government issues are always a large part of the discussion at State of the Industry. although the year 2015 was not an active year legislatively—and new rules for manager licensing had yet to be announced, there was still plenty to talk about. The effects of laws and court decisions made in previous years are being felt, and some are causing adjustments and even headaches.

“2015 was sort of a legislative hangover year,” Davids said.

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This year’s panelists were: michael elliott, attorney and partner, elliott & associates attorneys, P.C., Des Plaines; Howard Dakoff, attorney, levenfeld Pearlstein, l.l.C., Chicago; lou lutz, chief operating officer and executive vice president, First Community management, Chicago; Tom Skweres, regional vice president, aCm Community management, Downers Grove; michael Donnell, regional director of portfolio management, FirstService Residential, Chicago; and Tairre Dever Sutton, president, Tairre management, Des Plaines. a condensation of discussion follows:

Condo Lifestyles State-of-the-Industry Committee Tony Briskovic -Chicagoland Community Management Tairre Dever -Tairre Management Michael Donnell - FirstService Residential Natalie Drapac -Community Specialists Gail Filkowski - First Community Management Mydriane Janvier -ALMA Property Management Tom Skweres -ACM Community Management Micky Tierney - Community Specialists William Townsell -Chicago Police Dept.

LEGAL UPDATE association attorney Gabriella Comstock of Keough & moody, P.C., in naperville and Chicago presented an update on significant court decisions and legislative changes this past year. She elaborated on those that impact an association’s ability to collect past due assessments in the event of a foreclosure.

(Comstock’s presentation is reported on in a separate article in this issue.)

Q: We have heard Chicago real estate taxes will go up by as much as 50 percent. Are the rumors true, and if so, what can we do to mitigate our tax bills?

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Michael Elliott: Real estate assessments have gone up a lot, and that will put pressure on tax bills. Some homeowners might see their tax bills go up by 50 percent, but most won’t. We went through a period of seven years when property values contracted, and the Cook County tax base shrunk by 30 percent. over the past couple of years, we’ve seen values come back up again. This new assessment for Chicago in 2015 is the first year assessments have resumed an upward climb.

I have seen increases anywhere from 10 percent

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to 40 percent. If you look at the pattern, highly valued properties saw the highest increases, and the reverse is true. Downtown high-rises saw increases between 25 percent and 40 percent. If you move north through Lincoln Park, increases were similar. In Lakeview, the increases are less, 15 percent to 25 percent. When you move out to the neighborhoods, it’s 10 percent to 15 percent or less.

Assessments are only part of the story. We also have tax appeals taking place, and we’ve gotten some reductions. one place we haven’t is with downtown high-rises. The assessor is holding tight to his numbers. But when we go to the Board of Review, we could see some good reductions. If we don’t, we’ll be taking cases to court.

That’s not the rule. It’s more the exception, but we may see more of it this year. We’re going to have to fight to get them down.

an association’s behalf, the city is pretty much dismissing the cases after compliance.

I think this will change over time. The city will get more irritated the longer a building is not in compliance and there is never a good faith effort to comply. That’s where we will see fines.

Every building needs an emergency evacuation plan, but only certain ones have to file their plans with the city. There are different categories, and the category dictates the filing. The height of your building determines which category you are in.

Energy benchmarking is what I would call a

parental statute. It doesn’t mandate anything other than keeping track of the energy you are using and report it to the city using an online tool.

The city hopes if you pay attention to how much you are spending, you may enact some costsaving measures to reduce your consumption.

In Year one of their energy benchmarking and every third year thereafter, a building’s energy usage must be verified for accuracy by an approved third-party verifier. If your management company has that resource, offer it to your clients.

If your company does not, become familiar with those vendors who provide that service.

one more issue to be concerned with is government spending, which is increasing, is spread among the tax base. Now Springfield is passing an increased levy to pay for unfunded pensions, and that will put additional pressure on tax rates.

Q: How are Chicago ordinances and deadlines impacting associations?

Howard Dakoff: The four primary city statutes are: life safety evaluation, voice communication, emergency evacuation plan and energy benchmarking.

Life safety is where we are seeing the most enforcement. Two-way voice communication is one of the components of the life safety ordinance. The deadline to implement was the end of last year. In January, we started getting buildings cited for failure to comply. The good news is the city is not levying fines at this point. The statute has large fines for non-compliance, but if the city is seeing good faith efforts to comply—and compliance within the period of time we ask for on

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Q: How is the community association manager licensing law impacting how managers are interacting with their boards?

Howard Dakoff: The manager licensing law says there are certain things a manager can and cannot do. The statute also has remedies for noncompliance, which include referral to criminal authorities, fines, suspension and revocation of the license. A disciplinary board hears complaints and levies penalties. So far, what we are hearing anecdotally from clients and managers is small fines in the amounts of $50 or $100. They seem to be done more to send a message. However, managers can’t use as a defense that they did something incorrectly because their boards told them it’s always been done that way. The disciplinary board said no.

Q: Why do associations seem to hire managers on a more frequent basis than they do other professionals?

Lou Lutz: I think most managers do an awesome job. We really work hard, and all of us try to satisfy clients all the time. I’ve probably taught 600 managers, and I’ve never found anyone not trying to do a good job. So why is there more turnover in management companies than might be in reserve study providers or attorneys? I think if there is one reason, it is a disconnect between the expectations of the client—the board of directors—and the service the management

company believes they are contracted to provide.

I came up with a list of 265 different services management companies can provide. I suspect most boards think we do no more than 10 or 20 different things. If I were asked by a board how to do the best job hiring a management company, I would suggest they start by throwing away the canned RFP and create one with the actual services they want provided. Then, during the final interview before you go to contract, which should be a very significant interview, you can be very clear about your expectations. The final piece is to negotiate a meaningful contract prepared by an attorney that lists everything that the management company is supposed to provide and include benchmarks for performance. Without this, there is the understood expectation that we do every possible thing, and if we don’t, we aren’t living up to our contracts.

Q: How is manager licensing impacting your search for quality managers?

Lou Lutz: Manager licensing has created a situation where the entry level is much more difficult.

My organization has found we have to be more creative and provide more training to create an entry level opportunity where people can come into this business and do an awesome job as opposed to putting out an ad and five people will apply and we hire one.

Q: What are some of the latest technological advances that are helping community association professionals do their jobs faster and better?

Michael Donnell: Smart phones and tablets can assist in many maintenance and operational tasks. Building engineers can use their tablets and smartphones to monitor and make changes to HVAC systems, which can be programmed to send alerts if there is a problem.

Managers can view and approve invoices remotely, so they don’t have to be in the office.

They can log onto attorney websites to check on the status of their collections. Apps allow managers to view the monitors of security cameras on their client properties. Managers also can take photos of violations while they tour properties, and send violation notices along with time-anddate-stamped photos to home owners.

Community websites have come a long way. owners can go online to check their assessment balances, view meeting minutes and download forms. Electronic voting is possible if an association’s governing documents permit.

Technology simplifies mass communication to those with email addresses, but some older formats are still both viable and valuable. Telephone blasts, for example, can send recorded voice messages such as announcements of power outages, emergency water shut-offs and last-minute meeting cancellations.

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Q: From a manager’s perspective, what are the positive aspects of Palm II? Tom Skweres: A lot of people seem to think Palm is a four-letter word. It isn’t. Palm is really an attitude. It’s a way of doing business that the associations’ documents have required them to do anyway.

When the ruling came out, many people were saying the sky is falling, but the world hasn’t come to an end. Grass is getting cut. Hallways are getting clean. Attorneys are getting hired. Everything is working; it’s just working in a more visible manner than before. Palm is causing boards to become transparent, which they should be anyway.

The biggest problem is getting boards to buy into the fact they can’t email each other anymore or make decisions behind closed doors. But that’s okay we can’t do those things anymore. We have to do it at an open meeting so the homeowners know what is going on. Then they can’t question the decisions we make because they were listening to everything in the very beginning.

open meetings are a good thing. I haven’t seen attendance skyrocket since the ruling, but the boards are a little nervous. They want to do it right.

I tell them, don’t be afraid to conduct business.

Make sure to discuss everything in front of everyone. If you have a question, call your attorney.

I don’t think Palm is a real burden except to keep boards from emailing. You can’t hit ‘Reply All’ anymore. one of the most positive things is it helps people understand what it’s really like to serve on the board. It’s not a social club; it’s not getting together once a month for pizza. It’s a responsibility and a fiduciary duty. When people see boards making decisions in the open, it might get people interested in becoming committee members and then eventually board members.

There are other good things, too, like the separation of reserve and operating funds, and reserve funds are there only for certain projects.

Q: What steps are associations taking to prevent and eliminate short-term rentals?

Tairre Dever Sutton: We have one building where short-term rentals are such a major issue that we set up a fining system of $300 per night if we catch them. How much money are they going to make a night? $200 or $300? A $300 fine still doesn’t stop everyone.

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I go online under an assumed name so I can catch the rentals in my buildings. one owner posted a photo of a stripper pole in his living room. A renter published on social media a party he was hosting in a unit. I showed up at the party.

There are websites where you can enter your building address and find out who has their units listed for short-term rentals. If you go on Airbnb, you can match up the reviews of renters and the dates you thought the owner rented the unit.

Now you have evidence.

We are raising everyone’s consciousness about who is in their building. Now my homeowners look out for people who are coming in and going out of the building with suitcases. It’s good that people are paying more attention, especially if it’s not a doorman building. If it is a doorman building, we are asking more questions.

Realtors are asking these days if we take shortterm rentals, like it should be acceptable. We tell them no, we require a year’s lease.

We have to know who is in our buildings, who comes and who goes. The staff has to know. If you see someone you don’t know, you have to ask questions. This is what we have to do. Y

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

By Pamela Dittmer McKuen

LIVING WITH NEW COMMUNITY ASSOCIATION LAWS...

CondoLifestyles State-of-the-Industry Legal Update Association attorney Gabriella Comstock of Keough & Moody, P.C., in Naperville and Chicago presented the Legal Update session at the annual Condo Lifestyles State of the Industry seminar held on December 10, 2015 at the Chicago Cultural Center. Focusing on significant court decisions of 2015 and their impact on associations, she elaborated in particular on two cases. Both have strong bearing on an association’s ability to collect past due assessments in the event of a re-sale after mortgage foreclosure.

T

he full text of Comstock’s handout, “2015 Case law and legislative update,” is reprinted elsewhere in this issue.

Some of the cases summarized in the handout indicate unpublished opinions, which means they are unbinding in our local jurisdictions, but they are still informative and, possibly, influential.

Palm II Impact Comstock also offered a few words about the ongoing effects of Palm II, formally known as the Chicago-based lawsuit Palm vs. 2800 lake Shore Drive Condominium association.

“What we have seen this year is the courts are recognizing Palm, especially in Cook County but also in the collar counties,”

she said. “justices are very aware of the Palm II ruling. one of the most important things they are reiterating is that you have to follow the terms of your governing documents.” even though board members are volunteers, they are being held to high standards just as though they were running a corporation. of particular interest to judges is how much authority the governing documents give to board members and whether they are adhering to the limitations placed on them. “boards can’t just say we will ignore their governing documents, and it is important that managers remind boards of that,” she said. “judges are looking at associations differently than they did a few years ago.”

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Collections & Sales of Units in Foreclosure one of the most challenging aspects of association collections has involved foreclosure sales. no one wants to pay the past due

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assessments. not the original owner, not the lender, not the next owner. meanwhile, community associations tend to have very fragile economies. every dollar is important to the well-being of both residents and property.

Two recent court decisions may offer relief

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and direction in some cases: 1010 Lake Shore Association v.

Deutsche Bank National Trust. The case involved a foreclosing lender’s failure to pay common expenses commencing the first day of the month following a judicial sale to the lender. The association sued the bank for collection of the unpaid common expenses after the sale as well as for all common expenses that were owed for by the foreclosed owner beFoRe the sale.

Relying on Section 9(g)(3) of the Illinois Condominium Property act, the circuit and appellate courts both held that because the bank did not pay its required assessments after the sale, the association’s lien was not extinguished. on December 3, 2015, the Illinois Supreme Court agreed with the lower courts. The Condo act clearly requires a purchaser at a foreclosure sale to pay such assessments and, furthermore, that payment is an additional required step to extinguish the association’s lien. additionally, the high court said that Section 9(g)(3) cannot be used to extinguish a

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

lien when the association has not been named as a party to a foreclosure action.

“The bank was not happy,” Comstock said. “just as background, when a superior lien holder names junior lien holders, at the conclusion of the foreclosure, they terminate the liens against the property. They’ll try to name everyone. They want to wipe out all inferior liens. That’s one step. but a Y Michael C. Davids Y Gabriella R. Comstock second step, created by Section 9(g)(3), an accounting of the amount due, and the the lien created for unpaid assessments by the request is to be answered within 20 days. previous owner is not extinguished until the often overlooked, this provision is a tool purchaser makes a payment. They have to lenders can use to be better informed and to take the second step. you can name us in the help protect their interests. foreclosure, but to terminate that lien, you Going forward, Comstock reminded have to start making payments after the sale. managers and board members to be sure to What the supreme court did is affirm the trial allow payments by new purchasers. and appellate courts’ ruling that, under Sec“you can’t try to dodge them,” she said. tion 9(g)(3), there is a second step.”

“That’s going to likely be used against associaalso of interest in this case is the high tions. We have cases right now where lenders court looked at Section 9(j), which says are trying to implicate managers or boards for anyone who has an encumbrance can make a not taking their money.” written request of the manager or board for

also, if the lender/purchaser is requesting information under Section 9(j), associations should have a procedure in place to respond in a timely manner.

“1010 is a great victory,” Comstock said.

“It tells us what lenders need to do if they are the purchaser at a foreclosure sale to terminate our lien. but we also need to make sure we take the necessary steps to protect our associations, so the lender doesn’t come back and say, ‘They weren’t letting us pay,’ or ‘They didn’t tell us how much we owed.’”

Despite the favorable ruling, challenges remain. both associations and lenders will be watching to see how its nuances are applied.

It’s no surprise that lenders want to avoid having to pay a previous owner’s past assessments, nor that associations wish to collect all the assessments they are owed. both sides are sure to aggressively pursue their respective— and opposing—goals.

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More on Delinquent Assessments another court decision related to the matter of delinquent assessments is board of

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managers of Cornell Columbian Condominium association v. Smith. In this case, the purchaser argued she was not liable for the six months of back unpaid regular assessments under Section 9(g)(4) because the association had previously won possession of the unit in a forcible entry and detainer action. a portion of the outstanding assessments was paid from the rent the association was collecting. both the trial and appellate courts agreed with her.

However, the association was entitled to collect the special assessment that was adopted prior to the owner purchasing the unit. The special assessment was a lien against the property and it was not extinguished because the defendant failed to make payment after becoming responsible for assessments.

“It is interesting to look at this in conjunction with 1010,” Comstock said. “anyone can make a payment. It doesn’t have to be the purchaser or me tendering a check to the association. It can be rent.”

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Advice on Matters of Collection In other comments of delinquent assessments, Comstock said: » If the association is named as a defendant in a foreclosure action, file an answer to the complaint to assure they will be identified in the judgment. That will be important in the event of a surplus. (It occasionally happens.)

“If you haven’t filed an answer to the complaint, if there is a surplus, especially in Cook County, the court won’t allow you to file a petition to recoup that extra money because you haven’t taken action to protect your interest.” » Initiate your own collections against the delinquent owner, generally through a forcible entry and detainer action. you’ll get the right of possession and have the opportunity to recoup some past assessments by renting out the unit.

“It’s important to take your own steps in conjunction with what’s going on in the foreclosure. yes, you could file a cross-claim, but for the association the forcible is more cost-effective and the end result is going to be better and you are protecting your interests better. Foreclosures can take years.” Y

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

by Stuart Fullett, Fullett, Rosenlund Andersen, P.C.

Thoughts on Random Issues, Including Things that annoy me and Possibly you as Well – Part II In my last editorial, I stated that MCD Media has been gracious enough (or possibly just reckless) to provide me with the space to write a guest editorial as to my thoughts, including things that annoy me. Since they has asked for a second editorial, it is my opinion that the question has been answered. For those of you still pondering the question, to save you time and any personal struggles, the answer is “just reckless.”

I

n the spirit of the holidays be it Christmas, Hanukah, Kwanza, Festivus or the celebration of the Winter Solstice if you are a Druid, I thought of writing about things that are good and noble. If anyone was buying that we may need to play poker sometime. However, if I did write about something completely upbeat, you would likely be bored, I know that I would tire of it after the first paragraph and Mike Davids would be wondering, what are we paying him for, before Mike actually

remembers that “oh yeah, he does not get paid.” At which time I would remind Mike, you get what you pay for (yes that was in the first editorial for those keeping score at home).

Now with no further fanfare (as if there would be any), I present my latest list (some of which builds on the past editorial) in no particular order of importance and yes, for those out there that may not have a sense of humor or the ability to detect sarcasm, keep in mind that the rest of this

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issue of Condo Lifestyles has substantive articles and pictures.

“In My Defense”: This statement acknowledges from the start that you are pardon the pun “on the defensive” and that you have lost the argument. Try this phrase instead, “thank you for your comments, this is why I disagree with you” or for those that are a little less sensitive or caring “thank you for your comments, this is why you are wrong” or substitute in “or why you have no clue.” I would suggest that you do not use any of this on your significant other or you will hear the most dreaded words known throughout the world “we need to talk,” which really means, you need to shut up, you need to listen and you are __________ (please feel free to fill in the blank with whatever word comes to mind). While I have learned this lesson over time, for those that know me you are likely thinking I hear the words quite often and yes, I do enjoy walking that fine line.

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Quoting Shakespeare: There are few out there that have not heard the famous quote first uttered out of the mouth of the character Dick the Butcher in Henry VI by William Shakespeare (Dick the Butcher was a follower and a henchman of the rebel Jack Cade, whose goal was to become king) of “the first thing we do, let’s kill all the lawyers.” I have had it said to me on several occasions and there is likely no one out there that has not heard the phrase and for non-attorneys, hasn’t said it at one time or another. I quite often hear it at a meeting in which an owner does not appreciate my comments or that just can’t handle the truth. At this time I am thinking about Jack Nicholson on the stand in A Few Good Men. If you have not seen the movie or watched it recently, it is on my suggested list for you. By the way, I do enjoy a good lawyer joke and to this day, my dad calls me each time he hears a new one. This is also a good time to remind people not to confuse confidence with condescending. While I can be both, it is usually the confidence coming through but there are exceptions. However, to the naked eye it may be confused for condescending.

Now back to the quote. I like to respond with a deep and extensive discussion of Henry VI and what Shakespeare was actually saying. All kidding aside, what I actually do is explain that in the content of Henry VI, lawyers played the role of guardians of the rule of law who act as a line of defense standing in the way of a mob action.

As such, the surest way to have anarchy is to kill all the lawyers. Then I finish up the topic by thanking the person for telling me how essential lawyers are to the world. For those of you that know me and may be wondering, yes I do have a smirk on my face when I make the statement.

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

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

847-593-5595 14

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The Time Vampire: This is the person that simply put, always believes that his or her time is always more important than yours. We all know this type of person, unless you are this person and then you likely do not have a clue that you act in this manner. This is rather aggravating to those of us whose time is actually more important (imagine your picture here). As we all know, there is a limited time during the day in which to get work done. We all need to keep this in mind when someone is busy. I don’t know about you but the thought of “that’s 10 minutes of my life that I will never get back” sometimes runs through my head. Another alternative is to have the stake sharpened and ready to go for when the person visits. Please note that I am not recommending or suggesting this option.

The Perfectionist: This person drives me crazy and in this case it’s not because I do not like the competition. While it is important to do the job right, sometimes the pursuit of perfection paralyzes you from finalizing your work product.

No part of the publication may be reproduced whatsoever without written consent from the publisher.

All material herein is copyrighted 2016©.

GUEST EDIToRIAL

Remember, there is always someone who will find fault or comment on how it could have been better (you know who you are). While providing your critique may be useful and in some situations needed, remember it is not always warranted or wanted. As Rebecca Wells stated “Good enough is good enough. Perfect will make you a big fat mess every time.” I would add one more twist to this statement, “good enough is good enough so long as it gets the job done.”

The One-Upper: We are all guilty of this at one time or another. Sometimes we all just need to be quiet, show some patience and just listen. I would consider adding more to this section but I do not want to be accused of trying to one-up myself.

Talking at Me - Not to Me: Many times we all have a tendency to talk at a person instead of to that person. Take the time to make an effort to actually have a conversation about something (remember not to overstay the welcome or you may become the time vampire).

The Entitled: Everyone should be provided with the opportunity to succeed – although not everyone will succeed. For those that are unable to succeed, there should be a safety net provided. However, this is not the job of the Board. The job of the Board is to provide for the administration and operation of the Association,

which includes collecting money that is owed to the Association.

Remember, for every owner that does not pay, the remaining owners are subsidizing the living arrangement, which is not the proper role of the Association. If help is needed, in addition to taking the necessary legal action, individuals should be encouraged to reach out to social services, charities, family and friends.

Remember, there is always someone who will find fault or comment on how it could have been better (you know who you are). While providing your critique may be useful and in some situations needed, remember it is not always warranted or wanted.

As Rebecca Wells stated “Good

stand.” If in fact you are that stupid or overly principled person (note it possible that you do not know that you are so I am asking others to let you know), you should look in the mirror and repeat the following phrase “I do have a purpose, it is to bring laughter to the world and to aid attorneys in making a living.” By the way, this part of the editorial took care of my New Year’s Resolution to be more thankful and remind others that everyone is a winner and in fact brings something to the table (please see the last editorial if you are missing why this is funny).

Stupid and Overly Princienough is good enough. Perfect will pled People: This topic has a twist in this editomake you a big fat mess every time.” rial. In the spirit of the holiday season I want to Thank you for taking the time to read this edimake a point of thanking the stupid and principled people (sometimes it may be the same torial. I hope that you found it entertaining and person) that are out there. Let’s face it, if it that it stimulates your thought process. In closing, wasn’t for these people, most attorneys would remember that often the determination of not have as much work. For the rest of you, whether something is important is to consider make sure to thank a stupid person for all the whether it will be something that you or someone entertainment he or she provides. Yes, it is the gift of laughter and as Mark Twain stated else will even care about in five or ten years. Y “against the assault of laughter, nothing can

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All material herein is copyrighted 2016©.

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industry happenings

DK Condo

Chicagoland Community Management

DK Condo, a Draper and Kramer company, recently announced that Margaret Shamberger was promoted to Director of DK Condo. In her new role Ms. Shamberger is responsible for operations of the condominium management division, as well as supporting Tom Taylor in seeking new business opportunities. She has 30 years of experience in the industry, starting as a bookkeeper before becoming a property manager where she was responsible for managing properties ranging from 75 to 875 units.

Ms. Shamberger is working on several initiatives designed to enhance the services provided to DK Condo clients. One of her primary goals is to provide a consistent level of service across the portfolio. To meet these goals she implemented a Supervisor Standard Operating Procedure mid-2015, and will implement one for property managers by the end of first quarter 2016. She is also streamlining processes at the corporate level so that more time can be dedicated to client interactions, building tours and property inspections. Ms. Shamberger holds a MBA from Governors State University and is a Licensed Community Association Manager.

DK Condo also announced that Marla Jackson has joined the DK Condo team as an Assistant Vice President. Ms. Jackson has over 17 years’ experience in property management, with the last six dedicated exclusively to condominium management. She will be supervising a portfolio of 10 condominiums in the South Shore, South Loop, West Loop and Gold Coast communities. Jackson is a graduate of the University of Illinois at Urbana-Champaign, a Licensed Community Association Manager, Managing Broker and a Certified Community Manager of Community Associations.

Chicagoland Community Management has been named managing agent for 5100 N. Marine Drive Condominium Association, a 300 unit building built in 1970.

Lisa Volpe is the Property Manager. Chicagoland has also been named managing agent for 5901 N. Sheridan Road, a 16 story 151 unit property built in 1968 and located in Chicago’s Edgewater neighborhood. Carol Piper is the Property Manager.

Atica Sabovic was recently promoted to Property Supervisor for Chicagoland Community Management. Ms. Sabovic has been with CCM for 12 years with her 9 most recent years as property manager for Thorndale Beach South Condominiums. She has over 17 years of experience in the Community Association industry. Chuck Patterson is now the Property Manager at Thorndale Beach South.

The announcements were made by William DeMille, President of Chicagoland Community Management.

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All material herein is copyrighted 2016Š.

INDUSTRY HAPPENINGS

Draper and Kramer, Inc.

Draper and Kramer, Incorporated was honored with the 2015 REME Award in the AMO® of the Year category by the Institute of Real Estate Management (IREM®). This IREM® REME Award recognizes Draper and Kramer for outstanding performance by a firm that holds the Accredited Management Organization® (AMO®) credentail, and which is dedicated to:

ABOMA

• Providing superior service to clients, tenants, and residents • Aligning business practices with IREM’s Best Practices for Real Estate Management Services • Demonstrating ethical business practices • Supporting employee participation in IREM® activities, professional development, and leadership development

The Apartment Building Owners & Managers Association (ABOMA) held their Annual Meeting & Holiday Luncheon on Friday December 4th at the University Club of Chicago. ABOMA’s 2016 Officers were announced at the event and are as follows: ABOMA OFFICERS 2016 ABOMA 1st Vice President ABOMA Treasurer Tony Briskovic, Chicagoland John Bieg, Draper & Kramer, Inc. ABOMA President Community Management, Inc. Christine Friend, ABOMA Secretary Community Specialists

ABOMA 2nd Vice President Sheila Byrne, The Habitat Company

Robert Wiggs - ABOMA

ABOMA also announced their events that are planned for 2016. Managers Night Out will be held at Marcellos Lincoln Park on March 3, an educational seminar will be held at the East Bank Club in June and their 79th Annual Meeting and Holiday Function will be held at the University Club of Chicago on December 2nd. For more information visit www.aboma.com

Y The REME Award was accepted by Kimmberly Donnelly, CPM®, Vice President, Senior Regional Property Supervisor, Draper and Kramer, Incorporated at IREM’s Executive Edge Conference in Salt Lake City, Utah.

“I am delighted to congratulate Draper and Kramer on achieving the 2015 REME Award for AMO® of the Year,” says Lori Burger, CPM®, 2015 IREM® President, Eugene Burger Management Corporation, AMO®, Rohnert Park, California. “This organization is committed to providing superior service to clients, tenants, residents, and business partners. In addition Draper and Kramer is dedicated to advancing the IREM® community and the real estate management industry as a whole.”

Draper and Kramer, founded in 1893, is a vertically integrated property and financial services company. Headquartered in Chicago, Draper and Kramer is a Midwestern firm with the capability to serve its clients nationwide and beyond. Services include: Arranging debt and equity financing for commercial property, management of all property types, project management and condominium conversion services, advisory, consulting and valuation services; and risk management/insurance. Clients (corporations, private and institutional owners and investors, government agencies, and condominium associations) rely on Draper and Kramer and our CEO/President, Mr. Forrest D. Bailey, to uphold our tradition of innovation in property and financial services.

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Community Specialists

Community Specialists’ Senior Property Supervisor, Judy Rowe received the Community Associations Institute (CAI) Illinois Chapter, “Manager of the Year” Award on Friday November 20th, 2015 at the annual CAI Gala & Awards event.

Judy has been with Community Specialists since 1994 when she managed the Commonwealth Plaza Association. She has a very distinguished career in property management with many industry accomplishments.

She was awarded the Accredited Residential Manager Leadership Award (ARM) in 1991 and named the Accredited Residential Manager of the Year in 1989. In 2005, the National Board of Certification for Community Association Managers awarded Judy the designation of Certified Manager of Community Associations (CMCA).

Through the Community Association Institute she has earned the prestigious accreditation of both the Professional Community Association Manager (PCAM) and Association Management Specialists (AMS).

Additionally, Judy has served as a past President and is currently a director of ABOMA. She serves on the Labor Negotiation Committee with SEIU Local 1 contract negotiations committees and is a member of the Building Engineers Program Development Taskforce, as well as, serving in the Education Committee for Local 1 Janitors.

More Awards Community Specialists recognized their long-time employees at the company’s holiday gathering in November 2015. The Director’s Cup Award went to Kathleen Schomburg in recognition of her work at 1111 S

Wabash managing multiple large scale projects at the property, which included, balcony, façade and deck renovations, as well as to award her for her thorough approach to every detail in the duties of her position.

at Manager 1000 Condominium Associa t i o n .

Marguerite has a well-earned reputation as a seasoned professional.

Lea Relias, the property manager at Commonwealth Plaza received The Excellence in Leadership Award for her exceptional management of major projects such as their lobby restoration, HVAC replacement and curtain wall repairs. Through her leadership she has overcome multiple challenges and demonstrated her ability to carry out the responsibilities of her position with calm and presence of mind.

The Kathy Patton Award is given each year to the “office team” or individual that embodies the qualities of its namesake for accuracy, timeliness and a proactive approach to customer service. This year the award was given to the Parkshore Condominium Association office staff for their efforts in anticipating and responding to the needs of their residents while keeping up with the demands of managing a high profile Association.

Welcome Marguerite Batau has joined CS as the new Property

Molly Trogdon has been promoted to Assistant Manager at 900/910 the Lake Shore Condominiums and Chrissy Kurth has been hired to fill Molly’s position as Administrative Assistant.

Janine Hodes joined The CS team at The Grand Ohio as an Assistant Manager and Carl Sandburg No. 7 has hired Kathy Burgess as their new Administrative Assistant.

At The New York Private Residences, Daphne Dayrit has been promoted to Property Manager and Dorey Carvalho has been named the Assistant Manager.

And, in other company news, Community Specialists began as Managing Agent of the 1110 Lake Shore Apartment Home Owners Association on November 1, 2015. Community Specialists will be adding two more prestigious properties in January 2016, The Imperial Towers Condominiums at 4250 N Marine Drive and 1122 Dearborn Condominium Association.

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INDUSTRY HAPPENINGS

Keough & Moody

Keough & Moody, P.C. is proud to announce the addition of Damon M. Fisch to its team of attorneys. Damon’s practice has concentrated in real estate matters, both litigation and transactions. Damon has litigated the following issues: eminent domain, title insurance defense, mechanics lien, mortgage rescue fraud, forcible entry and detainer, real estate transaction litigation, foreclosure and breach of contract. Damon is a Special Assistant Attorney General, representing the Illinois Department of Transportation in eminent domain acquisitions. Damon has also closed hundreds of real estate transactions for clients.

IREM Chicago 2016 Officers

Chuck Keough has been identified as a 2015 Leading Lawyer. Chuck was also recognized as a Leading Lawyer in 2009 and 2010.

MCD Pool Party featuring CondOlympics

The MCD Pool Party featuring CondOlympics will be held on March 11, 2016 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 a food buffet, games a special raffle that benefits Special Olympics Illinois. For more information visit www.condolifestyles.net or call 630-932-5551.

The Institue of Real Estate Mangement Chicago Chapter held their Annual Installation of Officers meeting on November 12th at The Cliff Dwellers located on 200 S. Michigan Ave, Chicago: President Treasurer Executive Council Officers: Brian Lozell, CPM®, Demetrios (Jim) Vocos, CPM®, June McCrory, CPM®, Seneca Real Estate Advisors Wesley Realty Group The Missner Group President – Elect Angela Aeschliman, CPM®, Watermark Property Management

No part of the publication may be reproduced whatsoever without written consent from the publisher.

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Secretary Elaine Finley, ARM®, Urban Innovations

01.16

Kris Haskins, CPM®, Cushman & Wakefiled

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CoNDo LIFESTYLES

From the Editor

E

CondoLifestyles

®

januaRy 2016 | volume 19 | 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.

Circulation: Condo Lifestyles is available for a single issue price of $8.95 or at a $30.00 annual subscription.

Distribution is direct mailing and delivery direct through authorized distributors to over 5,000 officers and directors of Common Interest Communities, 800 property managers, 400 realtors, 400 developers and 400 public officials. Total Circulation is 9,500.

Condo Lifestyles attempts to provide its readership with a wide range of information on community associations, and when appropriate, differing opinions on community association issues.

All material herein is copyrighted 2016. No part of the publication may be reproduced whatsoever without written consent from the publisher.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is issued with the understanding that the publisher is not engaged in rendering legal or accounting services. If legal advice is required, services should be sought. advertisers assume liability for all content of advertisements printed, and also assume personal liability for any claims arising therefrom against the publisher relating to advertising content. The publisher and editors reserve the right to reject advertising or editorial deemed inappropriate for the publication.

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CoNDo LIFESTYLES

xcept for an early big snow event and a few brief cold periods, the first part of Winter has been mild. Although, we still have plenty of Winter left and we’ll likely see some more snow and cold. of course, it doesn’t take very long in very cold conditions for pipes to freeze and Y Mike Davids then burst when a thaw occurs. Hopefully you enjoyed the holidays and are refreshed and refocused on getting your association(s) off to a good start in 2016.

Economic conditions had improved in 2015 and many are optimistic about 2016. The housing market has improved significantly in some areas and not as much in other areas while most everyone has enjoyed low prices for gasoline. However, the stock market gains of 2015 have been diminished by recent declines in the stock market. Most prognosticators are cautiously optimistic, but uncertainty in China’s economy and other crises across the globe 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. Attorney Gabriella Comstock gave a presentation on recent legislative and legal update for attendees. Attorney and columnist Howard Dakoff, property tax attorney Michael Elliott and a panel of leading property managers shared their perspectives on current hot topics such as Palm II, property tax appeals, energy benchmarking, life safety, and manager licensing at the SoI event as well. our cover story features the highlights of the information shared by our experts at the SoI program.

Ms. Comstock provided an overview of new laws and several court cases that directly impact community associations with an emphasis on laws and court rulings regarding collection of delinquent assessment on units sold at foreclosure. We have included her summary of all the recent legislation and court cases that you should be aware of as a separate article in this issue (some of which were not discussed at the SoI program). our second story covers the highlights of Mr. Elliott’s presentation on property tax appeals. He provided a number of excellent suggestions and sound advice for managers and boards on how to approach handling of a tax appeal as well as factors impacting tax increases. This story also covers the highlights of our panel discussion and Q&A session that focused on finding quality managers and management companies, Chicago ordinances, technology impacting our lives and the continued widespread use of condominium units in Chicago as rentals and what this means to the Community Associations.

A sidebar article on lodging taxes that need to be paid on short term rentals can also be found in this issue. Additional coverage of our annual SoI 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.

A guest editorial by Salvatore Sciacca offers his ideas on the Top 10 Qualities of Vendors. Another guest editorial by Stuart Fullett features his second installment of things and behavior that he and most of us find annoying. our regular Industry Happenings column appears in this edition as is customary.

MCD Pool Party to feature Condolympics Games our annual MCD Pool Party will be held on March 11, 2016 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 15 at Eaglewood Resort in Itasca, and a luncheon at Arlington International Racecourse in late summer.

We will provide more information on these events as you request and as details are available at www.condolifestyles.net.

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 you who are not current subscribers can obtain subscription information on our website www.condolifestyles.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 (mdavids@condolifestyles.net) Y Michael C. Davids Editor and publisher

01.16

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All material herein is copyrighted 2016©.

SERVICE DIRECToRY

ACCOUNTANTS

ARCHITECTS/ENGINEERS

ATTORNEYS

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

CODER TAYLOR ASSOCIATES (847) 382-4100

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

ANNUAL ACCOUNTING SERVICES:

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

Audits Reviews Compilations Income Taxes Board of Directors Training Monthly Services: Collection of Assessments Paying of Bills Monthly Financial Statements Consulting for Developer Turnover and Major projects

MICHAEL J. COCHRANE, CPA (847) 301-0377

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

Specializing in Accounting Services for Homeowner Associations.

www.fullcirclearchitects.com

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

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

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

CERTIFIED PUBLIC ACCOUNTANTS

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

CUKIERSKI & KOWAL, LLC CERTIFIED PUBLIC ACCOUNTANTS

(847) 496-7180

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

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114

www.canteycpa.com

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560 www.superiorreserve.com

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

www.ckwcpa.com

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000

MARCUM ACCOUNTANTS AND ADVISORS (847) 282-6340

www.waldmaneng.com

ATTORNEYS

CERTIFIED PUBLIC ACCOUNTANTS

Contact: Steve Silberman, CPA

ARCHITECTS/ENGINEERS

Legal Representation for Community Associations www.kmlegal.com

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

pcostello@keaycostello.com www.keaycostello.com

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

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

BALCONY REPAIR THE RESTORATION GROUP (630) 231-5700 24 HOURS

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

BANKING

www.dicklerlaw.com

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

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ALLIANCE ASSOCIATION BANK (815) 342-4228 / (888) 734-4567

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

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

www.frapc.com

01.16

CoNDo LIFESTYLES

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CoNDo LIFESTYLES

BANKING

BUILDING RESTORATIONS

CREDIT BUREAU REPORTING

COMMUNITY ADVANTAGE, A WINTRUST COMPANY (847) 304-5940

HOLTON BROTHERS, INC.

SPERLONGA DATA & ANALYTICS (952) 500-1068

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

ITASCA BANK & TRUST (630) 773-0350

Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration

(847) 253-3886 TEL / (847) 253-3255 FAX John@holtonbrothers.com www.holtonbrothers.com

DOORS

“Together We’ll Shape the Future” www.itascabank.com

LS CONTRACTING GROUP, INC. T (773) 279-1122 F (773) 279-1133

MUTUAL OF OMAHA BANK (866) 800-4656

Contact: Tom Laird tlaird@lscontrtacting.com www.lscontracting.com

BASEMENT WATERPROOFING THE REAL SEAL, LLC (847) 756-7987

RIGGIO/BORON LTD. 847-531-5700

austinwerner@therealsealllc.com

BRAL RESTORATION, LLC. (847) 839-1100 Masonry and Concrete Restoration www.bralrestoration.com

FORUM GROUP, INC. (773) 732-3051 www.ForumGroupInc.com

22

Concrete Flatwork Specialists | Asphalt Paving Curbs & Driveways | Sidewalks Footings & Foundations Colored Concrete | Stamped Concrete Aggregate Finish Concrete Parking Structure Maintenance & Repair Contact Tom Frye

www.hsshardsurfacesolutions.com

CONCRETE RAISING CRC CONCRETE RAISING & REPAIR (847) 336-3400 We Save Concrete, You Save Money! www.SaveConcrete.com

CARPET CLEANING DONE JUST RIGHT INC. 630-893-0757

www.golfconstruction.net

www.djrcleaning.com Email: mcorliss@djrcleaning.com

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Cleaning: Air/Laundry/Toilet Exhaust Ducts, Coils, Trash Chutes, Parking Garages.

Also Air Filters, Belts www.airwayssytems.com

DONE JUST RIGHT INC. 630-893-0757

HARD SURFACE SOLUTIONS (630) 916-8005 / (847) 838-6610

GOLF CONSTRUCTION (219) 933-3420

CoNDo LIFESTYLES

AIRWAYS SYSTEMS, INC. 630-595-4242

CONCRETE

DAKOTA EVANS RESTORATION, INC. (847) 439-5367 Tuckpointing ~ Masonry Repairs Waterproofing ~ Terra Cotta Repairs Caulking & Sealants ~ Structual Repairs Cleaning ~ Balcony Restoration Concrete Restoration www.dakotaevans.com

DUCT CLEANING

A Total Exterior Facade Restoration Company www.RiggioBoron.net

BUILDING RESTORATIONS

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

HoA Banking • Internet Cash Management HoA Loans • online Payment Services www.mutualofomahabank.com

QUALITY RESTORATIONS (630) 595-0990

jstarks@sperlongadata.com www.sperlongadata.com

www.djrcleaning.com Email: mcorliss@djrcleaning.com

ELEVATORS/CONSULTANTS SMART ELEVATORS CO. (630) 544-6829 www.smartelevatorsco.com smartin@smartelevatorsco.com

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

For Display or Professional Services Directory Advertising Info, Call (630) 202-3006

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SERVICE DIRECToRY

ENERGY USE/BENCHMARKING

FIRE/FLOOD RESTORATION

FLOORING

ALTERNATIVE UTILITY SERVICES, INC. 312-724-6777

GENESIS CONSTRUCTION, INC. (847) 895-4422

MR BAMBOO 1(888) 672-2628

CHICAGo ENERGY BENCHMARKING oRDINANCE:

www.genesisconstruction.com

www.mrbambooflooring.com

Free benchmarking compliance services for new clients! benchmarking@ausenergy.com

WESTSIDE MECHANICAL GROUP (630) 618-0608 / (630) 369-6690 Serving the Tri-State Area Since 1970 Contact: Jackie Loftis * jloftis@wsmech.com www.wsmech.com

GARBAGE CHUTE CLEANING

RESPONSE TEAM1 (847) 891-2929

BROUWER BROS. STEAMATIC (708) 396-1444

www.responseteam1.com

THE RESTORATION GROUP, LLC (630) 870-0658 www.trgrestore.com

ENERGY SOLUTIONS FIRE SAFETY & PROTECTION CENTERPOINT ENERGY SOLUTIONS (630) 795-2594

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

OCEANS ENERGY (312) 870-0580

EMCOR SERVICES TEAM MECHANICAL FIRE PRoTECTIoN DIVISIoN (847) 229-7600

info@oceanscc.com www.oceanscc.com

www.emcortmi.com

FACILITY MAINTENANCE

SIMPLEX GRINNELL (630) 948-1235

SP+ FACILITY MAINTENANCE 773-847-6942

EMCOR SERVICES TEAM MECHANICAL (847) 229-7600 www.emcortmi.com

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

WESTSIDE MECHANICAL GROUP (630) 618-0608 / (630) 369-6690

NORTHERN ILLINOIS FIRE SPRINKLER ADVISORY BOARD (NIFSAB) (866) 2NIFSAB (866-264-3722)

HVAC

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

BROUWER BROS. STEAMATIC (708) 396-1444

ALTHOFF INDUSTRIES (312) 332-5700

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

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.

FIRE/FLOOD RESTORATION

HVAC

Mechanical - Plumbing - Electrical - Building Automation www.althoffind.com

CONTECH MSI CO. (847) 483-3803

Natural Gas & Electric Energy Reliable Service. People You Trust.

Contact: Vickie Farina Vickie.Farina@centerpointenergy.com www.CenterPointEnergy.com/CES

All types of environmental cleaning. www.BrouwerBrothers.com

Serving the Tri-State Area Since 1970 Contact: Jackie Loftis * jloftis@wsmech.com www.wsmech.com

708-403-4468 www.firesprinklerassoc.org

Mechanical - Plumbing Building Automation - Service www.ymimechanical.com

All types of environmental cleaning. www.BrouwerBrothers.com

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THE YMI GROUP, INC. (847) 258-4650

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CoNDo LIFESTYLES

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CoNDo LIFESTYLES

H V A C CLEANING

LANDSCAPE CONTRACTORS

MAILBOXES

BROUWER BROS. STEAMATIC (708) 396-1444

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

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

All types of environmental cleaning. www.BrouwerBrothers.com

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

www.alanhorticultural.com

Since 1989

INSURANCE HOLLINGER SERVICES, INC. (847) 437-2184

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

ABOMA (312) 902-2266

ILT VIGNOCCHI (847) 487-5200

ABOMA1@aol.com www.aboma.com

www.iltvignocchi.com

MESIROW FINANCIAL (312) 595-8135

ACTHA (312) 987-1906

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

Nancy Ayers www.condorisk.com

OCEANS ADVISORS (312) 508-3032

www.landscapeconcepts.com

info@oceansadvisors.com www.oceansadvisors.com

SEBERT LANDSCAPING, INC. (630) 497-1000

Association of Condominium, Townhouse and Homeowners Associations

actha@actha.org | www.actha.org

COMMUNITY ASSOCIATION INSTITUTE OF ILLINOIS (847) 301-7505 info@cai-illinois.org | www.cai-illinois.org

www.sebert.com

INTERNET TECHNOLOGY

PAINTERS

WEBPASS (800) WEBPASS

SEMMER LANDSCAPE 708-926-2304

Simple Urban Internet www.webpass.net

gsemmer@semmerlandscape.com

JANITORIAL SERVICES

LAWN CARE

DONE JUST RIGHT INC. 630-893-0757

SPRING-GREEN LAWN CARE (800) 830-5914

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

www.djrcleaning.com Email: mcorliss@djrcleaning.com

www.spring-green.com

LANDSCAPE CONTRACTORS

LOCKSMITH

Professional Landscaping and Snow Removal www.acresgroup.com

NON PROFIT/EDUCATION

www.BalancedEnvironmentsInc.com

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

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

www.MailboxWorks.com

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

NONSTOP LOCKSMITH 312-929-2230 Locksmith Services, Intercom & Access Control Systems, CCTV, overhead Garage Doors www.nonstoplocksmith.com

PRECISION PAINTING AND DECORATING CORP. (630) 688-9423 www.ppdpainting.com

For Display or Professional Services Directory Advertising Info, Call (630) 202-3006 24

CoNDo LIFESTYLES

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All material herein is copyrighted 2016©.

SERVICE DIRECToRY

PAINTERS

PLUMBING

PROPERTY MANAGEMENT

CERTAPRO PAINTERS OF THE NORTH SHORE (847) 287-2642

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

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300

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

24 Hour Service

www.chicagoland-inc.com

Plumbing • HVAC Service/Maintenance • Systems Integration Energy Management • Electrical Process Piping •Industrial Refrigeration www.amsmechanicalsystems.com Chgo #BC 16138 / IL #055043442

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

PARKING GARAGE CLEANING

PROPERTY MANAGEMENT

EXTREME POWER CLEANING INC. (630) 532-0345

A PLUS PROPERTY MANAGERS, INC. (847) 315-0222

www.ExtremePowerCleaning.com info@extremepowercleaning.com

info@aplusmanagers.com / www.aplusmanagers.com

PAVING DUBOIS PAVING CO. (847) 634-6089 (800) 884-4728

Professionals helping volunteers.

MORE LIVING. LESS WORRYING. COMMUNITY SPECIALISTS (312) 337-8691 www.communityspecialists.net

ACM COMMUNITY MANAGEMENT (630) 620-1133

DK CONDO (312) 346-8600

www.duboispaving.com

HARD SURFACE SOLUTIONS (630) 916-8005 / (847) 838-6610

Contact Tom Skweres

Contact Margaret Shamberger

www.acmweb.com

www.dkcondo.com

ADVOCATE PROPERTY MANAGEMENT 630-748-8310

THE HABITAT COMPANY (312) 527-5400 www.habitat.com

www.advocatepm.com

Contact Tom Frye

www.hsshardsurfacesolutions.com

ALMA PROPERTY MANAGEMENT (847) 517-4400

PEST CONTROL

www.almapropertymanagement.com

ALL-OVER PEST SOLUTIONS (773) 697-1100 Bed Bug Specialists. Results Guaranteed! www.all-overpest.com

FIRST COMMUNITY MANAGEMENT (312) 829-8900 Guiding board members since 1988 www.condomanagement.com

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

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

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

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FIRSTSERVICE RESIDENTIAL (312) 335-1950 Contact Asa Sherwood

www.fsresidential.com

BAUM PROPERTY MANAGEMENT, LTD. (630) 897-0500 www.BaumProp.com

G&D PROPERTY MANAGEMENT (630) 812-6400

CARUSO MANAGEMENT GROUP, INC.

www.gd-pm.com

RESIDENTIAL & CoMMERCIAL

(630) 717-7188 www.carusomanagementgroup.com

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

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CoNDo LIFESTYLES

PROPERTY MANAGEMENT

PROPERTY MANAGEMENT

KANE PROPERTY MANAGEMENT CORP. 773 472-2300

WERK MANAGEMENT (630) 241-0001

ELLIOTT & ASSOCIATES (847) 298-8300

www.liebermanmanagement.com

www.elliottlaw.com

MCGILL MANAGEMENT, INC. (847) 259-1331

KSN TAX (847) 537-0500

www.mcgillmanagement.com

www.KSNLaw.com

RESERVE STUDIES

773-989-8000 1509 W Berwyn Chicago IL 60640 contact: Chown Lemon www.RealtyMortgageCo.com

SUDLER PROPERTY MANAGEMENT (312) 751-0900

our Reserve Studies Now Include ForeSite™

CSR ROOFING CONTRACTORS (708) 848-9119

Custom, Comprehensive Studies Conducted by Professional Engineers www.reserveadvisors.com Long-term Thinking.

Everyday Commitment.

www.csr-roofing.com See our ad on page 8.

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560 www.superiorreserve.com

ROOFING

www.sudlerchicago.com

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

TAIRRE MANAGEMENT SERVICES (847) 299-5740

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

tsutton@tairremgmt.com

CoNDo LIFESTYLES

www.lakeroof.com

(312) 625-4958

2014 IREM Management Company of the Year

26

B.T. LAKESIDE ROOFING (630) 628-0093

RESERVE ADVISORS, INC.

www.psimanagement.net

REALTY & MORTGAGE CO.

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

www.wvproptax.com

PROPERTY SPECIALISTS INC. (847) 806-6121

COMMUNITY ASSOCIATION MANAGEMENT

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

WORSEK & VIHON LLP (312) 368-0091

www.nimrodrealty.com

WOODRIDGE OFFICE

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

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

(630) 633-5450

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

REAL ESTATE TAX ATTORNEY

LIEBERMAN MANAGEMENT SERVICES (847) 459-0000

ROLLING MEADOWS OFFICE

ADAMS ROOFING PROFESSIONALS INC. (847) 364-7663

For All Your Property Needs www.werkmanagement.com

Professional Property Management. Affordable Rate.

Contact: Dennis R. Kane; DKane@KanePM.com

KaneManagement.com

ROOFING

01.16

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

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

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

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SERVICE DIRECToRY

SNOW REMOVAL

SIDING / RENOVATIONS

HARD SURFACE SOLUTIONS (630) 916-8005 / (847) 838-6610

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

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

Contact Tom Frye

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

www.hsshardsurfacesolutions.com

THE WINTER WERKS (630) 241-0001

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

SITE MAINTENANCE, INC. (847) 697-1077

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

TV-BULK CABLE & SATELLITE

www.mancioneinc.com

RCN (312) 955-2322

SWIMMING POOLS

rcnchicagoapts@rcn.net www.rcn.com

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

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

www.sitemaintinc.com

TREE CARE

SECURITY SERVICES

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

WASTE SERVICES

Certified Arborists & Certified Tree Care Safety Professionals www.acresgroup.com

LAKESHORE RECYCLING SYSTEMS (773) 685-8811

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888 www.admiralsecuritychicago.com

GUARDIAN SECURITY SERVICES (708) 385-3300 Providing Chicagoland’s Finest Door Staff and Security officers since 1975 www.guardiansecurityinc.com

PREMIER SECURITY (773) 867-8813 www.premiersecuritycorp.com

SNOW REMOVAL ATJ'S HOME IMPROVEMENTS (630) 432-3238

www.LakeshoreRecyclingSystems.com

SAVATREE SAVALAWN

WINDOWS/REPLACEMENTS

Northbrook: 847.729.1963 Barrington: 847.726.1991 Warrenville: 630.725.1963 www.savatree.com

D-WING CONSTRUCTION (630) 397-8889

SIDING / RENOVATIONS

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

B.T. LAKESIDE ROOFING (630) 628-0093

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

www.lakeroof.com

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

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

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

www.atjshomeimprovement.com

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

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All material herein is copyrighted 2016©.

01.16

CoNDo LIFESTYLES

27

CoNDo LIFESTYLES

Q&A on Lodging Taxes for Short Term Rentals Answers provided by Rob Stephens, Co-Founder and General Manager of Avalara MyLodgeTax Q1: Why may Airbnb have announced that they are now collecting the remaining 11.9 percent state tax in addition to the already collected 4.5 percent Chicago city tax?

A1: Condos or homes that are being used as shortterm vacation rentals in every city in Illinois, as well as every city in the country, are required to pay lodging taxes to state and local tax agencies. While home rental sites like Airbnb have grown rapidly in popularity in the past few years, it has taken time for cities and states to have the resources to enforce these taxes.

Airbnb understands that tax compliance is a critical and sensitive issue for state and local governments, and announcements such as this one show that they are committed to tax compliance and want to be good partners with state and local tax agencies.

Q2: How does this announcement impact Chicago homeowners who are currently using Airbnb to rent out their home?

Baum PROPERTY MANAGEMENT

Professional Community Management

A2: Airbnb will be collecting and remitting all required taxes for any bookings in Chicago. For condo owners using Airbnb it will be one less task (and risk) to worry about since Airbnb is remitting the taxes and the condo owner will not need to remit the taxes.

Q3: How can Chicago condo owners understand how to collect and remit these taxes?

A3: Understanding which taxes are to be paid to each agency (city and state) can be confusing and complicated, as lodging taxes vary city-tocity and state-to-state and must be paid at varying frequencies.

For owners in Chicago, taxes are reported and remitted to both Chicago and the state, typi-

cally required on a monthly basis. Before the taxes can be remitted each owner needs to register with both the city and the state. There are also vacation rental licenses that are required from the city, Airbnb does not handle the Chicago license.

There are resources available for homeowners looking to save time and more importantly, stress, when it comes to compliance. For an average monthly fee of $10-$15, condo owners can rely on companies such as Avalara MyLodgeTax to manage the complexities of tax requirements, including calculating taxes, preparing forms, registering and obtaining licenses and accounts, filing returns, and communicating with tax agencies.

Q4: Can you breakdown the taxes that Airbnb homeowners must pay to be in full compliance?

A4: To be in full compliance, Chicago short-term vacation rental owners must pay the 11.9% to the state each month and the 4.5% Chicago city tax each month. The total tax rate collected from each guest for Chicago, IL property is 16.4% for all rentals less than 30 consecutive days. The rate is comprised of the following taxes: Illinois Hotel operators’ occupation Tax

6.0%

Chicago Metro Pier & Exposition Authority Hotel Tax

2.5%

Chicago Hotel Tax

1.1%

Chicago Accommodations Tax

4.5%

Chicago Sports Facilities Hotel Tax

2.3%

TOTAL

16.4%

C O N TA C T

Michael D. Baum, CPM, PCAM

630-897-0500 www.BaumProp.com

28

CoNDo LIFESTYLES

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EVENT HIGHLIGHT

Condolifestyles

State-of-the-Industry December 10, 2015

View more photos and video from this event at Facebook/MCD Media 3. Shown here (L to R) are Bill Ryan - Westward Management and Marshall Dickler Dickler, Kahn, Slowikowski and Zavell, Ltd.

1

1. Pictured right (L to R) are Ingrid DeCanio, Gabriella Comstock - Keough & Moody, P.C., Michael Elliott and Danielle Elliott - Elliott & Associates Attorneys.

4. Pictured below (L to R) are Gail Filkowski First Community Management, Shimon Mery -Nonstop Locksmith, Natalie Drapac Community Specialists and Brian Kelly - Response Team1.

2. Shown here (L to R) are Larry Puder - Community Specialists, Maria Cardenas -Hillcrest Management, Ed Zamarripa - Xfinity Communities and Michael Donnell - FirstService Residential

2

3

5. Shown here (L to R) are Tom Skweres ACM Community Management, Mark Waldman, Trey Waldman and Michael Roche - Waldman Engineering.

4

5

6

6. Shown here (L to R) are Donna Ciota - Associa Chicagoland, John Nordquist -Community Specialists, John Matranga - 3600 Lake Shore Drive and Micky Tierney Community Specialists.

PREMIERE SPONSOR

Xfinity Communities MAJOR SPONSORS

Keough & Moody P.C. Elliott & Associates Tax Attorneys

Chicagoland

&

Buildings Environments CondoLifestyles

ÂŽ

INFORMATION TABLE SPONSORS

CORPORATE SPONSORS

Belfor Property Restoration Brouwer Bros. Steamatic Centerpoint Energy ConTech MSI Co Dickler, Kahn, Slowikowski & Zavell, Ltd. Frog Painting & Decorating Landscape Concepts Management Nonstop Lockmith Simplex-Grinnell Sperlonga Data & Analytics WebPass Westside Mechanical Woodland Windows

Admiral Security Services, Inc. Balanced Environments, Inc. Benchmark General Contracting CAI-Illinois Community Advantage, A Wintrust Company Chicagoland Community Management Community Specialists CSR Roofing First Community Management Kovitz Shifrin Nesbit LakeShore Recycling Systems Quality Restorations Semmer Landscape, Inc.

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Smart Elevators Superior Reserve & Engineering W.J. McGuire Co. Waldman Engineering GENERAL SPONSORS

First Merit Bank Full Circle Architects Itasca Bank & Trust Levenfeld Pearlstein Mesirow Financial NorthShore Industrial Supply Reserve Advisors S&D Roofing YMI Mechanical

CoNDo LIFESTYLES

29

CoNDo LIFESTYLES

By Salvatore Sciacca, Chicago Property Services

Top 10 Qualities of a Highly Qualified Vendor

in the end what is your end goal? you want a vendor that understands the scope of work and is going to address the issue correctly the first time 100% of the time.

There should be no doubt in anyone’s mind that it is very important for a community association to have a good solid management company in place. A good management company will ensure that an association plans for the future, has a high functioning board in place, adopts a clear and concise operational plan and has the right resources to address both minor and major repairs and renovations.

T

hose resources that resolve the minor and major issues are the subject of this article and are otherwise known as vendors. of course, some people use different nomenclature such as “a guy working out of the back of a pickup truck”, a contractor, joe the plumber, vendor numero uno, etc.

Regardless of what you call them, vendors are one of the most important behind the scenes pieces of the equation when it comes to run-

ning a smooth community association operation. So what are the qualities of a highly qualified vendor? let’s look at the most essential qualities of top vendors.

10. Dependability – a good vendor is reliable and is consistent in their quality. They don’t answer the phone 50% of the time rather more like 99% of the time.

9. Fair and honest pricing – If a price is too good to be true, then it really is too good to be true. everyone wants to save money but

8. Accountability – vendors are human at least until robots take over. So in the meantime, mistakes are going to happen. Don’t fool yourself in thinking that certain vendors neveR make mistakes. The better question is how will the vendor respond when they make a mistake. In my opinion, a great vendor is 100% accountable and will work to correct the problem until the board is 100% satisfied (assuming the board is ReaSonable). They won’t argue about the issue and try to blame others. They will take accountability where accountability applies. I have experienced working with vendors that are highly accountable and vendors who try to blame others and I can assure you that my appetite to work with vendors with little to no accountability is ZeRo. as Donald Trump would say “you’re FIReD”. There are many other vendors out there that would love to have a chance to step up and have an opportunity to serve your needs.

Simplifying Vertical Transportation

SUBURBAN ELEVATOR »Modernization

»New Construction

»Code Upgrades

»Maintenance

»24 Hour Service

847-783-6200 Serving Metropolitan Chicago, Las Vegas, Milwaukee & Tampa

www.suburbanelevator.com 30

CoNDo LIFESTYLES

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GUEST EDIToRIAL

7. Licensed and insured - Does your vendor have the right licensing and insurance coverage? Does the association really save by using an uninsured vendor? What are the risks involved? If the vendor doesn’t have a license and something happens, then what?

What are the risks and benefits involved?

6. Assists in scope of work – The right vendor will help identify the scope of work if there is a lack of clarity. or they will help modify the scope of work if appropriate. In either case, a good vendor shouldn’t simply provide a bid without clarifying or identifying a scope of work. otherwise, this will lead to confusion once other bids are received and compared by the manager and board of directors.

5. Recommends – once the job is completed especially for smaller “service call” type jobs, a good vendor will make recommendations based on what the technician or representative saw during the service call. These recommendations typically are made to help proactively address issues that may become urgent or emergency type issues down the road. Pay close attention to those recommendations and if your vendor rarely makes mention of one, take note of that as well.

4. Above and beyond – Does your vendor throw in an extra here and there? or is every little thing a change order that increases the cost of the project? Certainly, vendors are in the business to make money but on occasion especially on a larger scale job, a good vendor should be willing to throw in an unforeseen extra when it comes up. This benefits the vendor and certainly gives the manager and board good reason to continue to work with that vendor again and again.

3. Keeps up to date – Is your vendor keeping up with the latest equipment and technology or are they still showing up in a horse and buggy? your vendor doesn’t necessarily need to show up in a Tesla but a gasoline powered vehicle would be preferred over the budweiser Clydesdale pow-

ered wagon. make sure your vendor stays current and is using the most efficient HvaC equipment, for example, so that your community is saving on energy costs as much as possible.

2. Honesty – If a mistake happens, does the vendor make an excuse and blame someone else? Who me? We didn’t leave those paint drips all over the floor. They were there before we painted the stairwells even though the painters also repainted the stairs as part of the scope of work. Sounds unbelievable? Think again. It has happened. The better question is why would you want to keep working with a vendor like that? and why do some board of directors insist on working with vendors that they complain about time and time again?

1. Communication – Good clear communication is so important. especially the type of communication that keeps the manager and board up to date. For example, the manager should not have to chase down “joe the plumber” after the plumber is dispatched to address a plumbing issue. The plumber should follow up with the manager with an update and a recommendation if appropriate. For example, we found several items in the drain lines that caused a clog in the lines. We recommend that an announcement be sent out advising the homeowners and residents on what they should avoid flushing down the toilets. of course, some vendors like it when residents flush down diapers as that is what causes emergency service calls. lol.

In summary, managers and board of directors should have an awareness of how essential it is to have reliable, accountable and reasonably priced vendors in place beFoRe the need arises for small, medium and large scale projects. This will help keep the association running smoothly, keep costs down and ensure the long term positive living environment for all the members of the community. Y

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01.16

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CoNDo LIFESTYLES

Editor’s Note: As presented by Gabriella Comstock of Keough & Moody, P.C. at the 2015 Condo Lifestyles State of the Industry program on December 15, 2015

Community association Case law and legislative update 2015CaseLawSummary

minium Property Act cannot be used to extinguish a lien when the Association has not been named as a party to a foreclosure action.

1010 Lake Shore Association v. Deutsche Bank National Trust Co. 2015 IL 118372, Docket No. 118372 (Il. S. Ct. Dec. 3, 2015)

Goldberg v. Glenstone Homeowners Ass’n 2015 IL App (2d) 141025-U, 2015 WL 7568483 (2nd Dist. Nov. 24, 2015) (Unpublished Opinion)

This case involved a foreclosing lender’s failure to pay common expenses on the first day of the month following judicial sale. The Association sued the Bank for collection of the unpaid common expenses after the judicial sale, as well as all common expenses that were owed for the property prior to the judicial sale that were owed by the foreclosed owner. Relying on Section 9(g)(3) of the Illinois Condominium Property Act, the circuit and appellate courts both held that as the Bank failed to pay assessments as required, the association’s lien was not extinguished and entered judgment in favor of the association for the full balance owed. The Illinois Supreme Court affirmed both the circuit and appellate court rulings. The Illinois Supreme Court highlighted that Section 9(g)(3) of the Illinois Condominium Property Act plainly requires a purchaser at a foreclosure sale to pay assessments commencing with the first day of the month following the foreclosure sale and that such payment is an additional step required in order to extinguish a condominium association’s lien. Further, the Illinois Supreme Court also held that Section 9(g)(3) of the Illinois Condo-

Plaintiff filed lawsuit against association seeking recovery of special assessment for road repair that he paid, alleging that the Board was not lawfully constituted, did not have authority to impose the special assessment and failed to properly notice the meeting of members for the special assessment meeting in violation of the Illinois Common Interest Community Association Act (“CICAA”) and the General Not for Profit Act (“Not for Profit”), that the Association breached the terms of the Declaration as the special assessment violated its terms and was excessive, and fraud by adopting the special assessment through false pretenses.

The trial court dismissed the allegations regarding fraud and failure to properly notice the meeting regarding the special assessment. As for the remaining allegations, the court directed a verdict for the association after trial as Plaintiff failed to present sufficient evidence at trial. Defendant appealed and the appellate

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court affirmed. The appellate court held that: Plaintiff failed to state a cause of action for fraud and breach of fiduciary duty (regarding the mailing of notice, no proximate cause was shown by Defendant); the Board was duly constituted as the Director who was not a record owner was not required to be a record owner under the Declaration, which controls in this instance; the Association properly followed its special assessment procedures; the special assessment was not excessive as the Declaration provides the Association with power to maintain the roads and levy a special assessment to cover its costs; and Plaintiff failed to provide evidence that the Association used the special assessment on roads outside the Association.

Henderson Square Condominium Ass’n v. LAB Townhomes, LLC 2015 IL 118139, 2015 WL 6732339 (Ill. S. Ct. Nov. 4, 2015) (Unpublished Opinion) Condominium association and its Board brought action against developers and former board members, alleging breach of city ordinance prohibiting misrepresentation in the course of marketing and selling real estate, and breach of fiduciary duty. Trial court found that plaintiffs failed to adequately plead its allegations that Defendant violated Chicago Municipal Code and that Defendants breached their fiduciary duty. The trial court also ruled that these claims were time barred. The appellate court reversed the trial court’s decision, finding that the association adequately pled the claims and, additionally, that the claims were not time barred. Defendants appealed to the Supreme Court and the Supreme Court held that the Association properly pled its causes of action against Defendants. The crux of the lawsuit was that after the units of the Condo building began to be inhabited, after turnover to the first board, multiple owners began experiencing water seepage with resulting damage.

The association therefore brought a lawsuit stating that the facts about the

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issues with the building were fraudulently concealed by defendants and they marketed the quality of the building despite knowing about the issues with the building. Yet, the case was not filed until fourteen years after the turnover and the units were bought. However, the court held that the statute of limitations period governing construction claims excepts from application the four-year limitation period and the ten-year repose period for all fraud-based construction claims, as well as all construction claims that are fraudulently concealed; such claims are governed by a five-year statute of limitations and the discovery rule that provides that a party's cause of action accrues when a party knows or reasonably should know of an injury and that it was wrongfully caused. Thus, the claims were not time barred because they did not reasonably know until 2009, when the issues were investigated by a structural expert.

Neufairfield Homeowners Ass’n v. Wagner 2015 IL App (3rd) 140775, 2015 WL 6736113 (3rd Dist. Nov. 4, 2015) Homeowners association sought declaratory relief to enforce a restrictive covenant prohibiting the operation of two daycare businesses against homeowners. The trial court originally granted summary judgment in favor of the homeowners, the association appealed. The appellate court affirmed the trial court’s ruling, reasoning that the association’s declaration allowed for home based business providing that a few conditions were met. The two daycare businesses did not violate these conditions. Additionally, the provision of the declaration prohibiting frequent commercial traffic was not violated by the daycare businesses because only a few additional cars entered and left the association.

The court further held that while a homeowner’s association has the authority to interpret its covenants, conditions and restrictions in its declaration, it is not free to ignore the express language or plain meaning of the declaration.

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Board of Managers of Cornell Columbian Condominium Ass’n v. Smith 2015 IL App (1st) 143307-U, 2015 WL 5775150 (1st Dist. Sept. 30, 2015) (Unpublished Opinion) Association filed forcible entry and detainer against owner of unit, who purchased the unit at a foreclosure sale, for possession of the unit and unpaid assessments and other charges. Defendant filed a motion for summary judgment alleging that she was not responsible for monthly special assessment charges that occurred prior to foreclosure purchase and, additionally, that she was not responsible for the six months of regular assessments under Section 9(g)(4) of the Illinois Condominium Property Act (“Act”) because the Association was renting the unit and a portion of those outstanding assessments were paid by the Association from the rent collected. The trial court granted Defendant’s motion and the association appealed. The appellate court ruled that the trial court properly granted summary judgment to Defendant regarding the obligation to pay the six months of regular unpaid assessments under 9(g)(4) of the Act. Because a portion of the outstanding assessments were paid during the action to enforce the collection of the assessments from the prior owners, by way of rental of the unit, the Defendant, as purchaser, has no obligation to pay any assessments which accrued before they acquired title. However, the association was entitled to collect the special assessment that was adopted prior to owner purchasing the unit at the foreclosure sale under Section 9(g)(3) of the act because the special assessment was a lien on the property and Defendant, failing to make payment on the special assessment after becoming responsible for assessments, failed to extinguish the lien and was responsible for all unpaid portions of the special assessment for the unit.

Board of Managers of Park Point at Wheeling Condominium Ass’n v. Park Point at Wheeling, LLC. 2015 IL App (1st) 123452, 2015 WL 5734553 (1st Dist. Sept. 30, 2015) Condominium association brought action against the architect, developerseller, general contractors and sub-contractors for breach of implied warranty of habitability, arising out of alleged latent defects causing damage to interior flooring and finishes. The trial court dismissed the claims and the association appealed. The appellate court held that the architect was not subject to the warranty of habitability, that the developer-seller effectively waived the warranty of habitability and that this waiver applied equally to every unit owner and sub-contractors may not be a party Defendant because there was no claim that the contractor was insolvent. However, the implied warranty of habitability was not waived as to the contractor and, as such, the appellate court reversed the trial court’s ruling as to the contractor, as a proper cause of action may be maintained against the contractor only in this matter.

Schepley v. The Condominiums of Logan Square 2015 IL App (2d) 141214-U, 2015 WL 5664723 (2nd Dist. Sept. 24, 2015) (Unpublished Opinion) Plaintiff sued the association and other defendants when she allegedly stepped into a hole at the association’s complex while delivering packages for UPS. Plaintiff alleged it was a common area of the complex, that the association had a duty to safely maintain the area and that the association at least had constructive notice of the hole at time she stepped into it. The trial court granted the association’s motion for summary judgment, holding that there was no question of fact that the association had neither constructive nor actual

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notice of the hole. Plaintiff appealed and the appellate court reversed the trial court’s ruling.

The appellate court held that plaintiff presented sufficient evidence from which a jury could find that the association had constructive notice of the hole and, as such, summary judgment was improper. The cause was remanded to the trial court for further proceedings.

Hataburda v. Equestrian Estates Homeowners Ass’n 2015 IL App (1st) 140431-U, 2015 WL 4556956 (1st Dist., July 28, 2015) Unpublished Opinion)

the appellate court did vacate the trial court’s order precluding the association from seeking reimbursement for services it may have provided to the garage owner under the parties’ contract, as a declaratory judgment was inapplicable to the reimbursement claim as it had to do with past conduct, and no future conduct was left to be decided.

D’Attomo v. Baumbeck 2015 IL App (2d) 140865, 36 N.E.3d 892, 394 Ill.Dec. 601 (June 30, 2015)

Plaintiffs brought lawsuit against association alleging that association improperly amended the association’s declaration and thus challenging the validity of the amended declaration. The association filed a motion to dismiss the complaint and the trial court granted its motion, plaintiffs appealed. The appellate court affirmed the trial court’s dismissal under section 2-619. In sum, the appellate court ruled that the association proved through affirmative matter, principally the recorded amended declaration and exhibits showing it was properly adopted under the original declaration. Plaintiffs failed to meet their burden that this affirmative matter presented by the association was disputed or otherwise present evidence that the amended declaration was not properly adopted. All plaintiffs alleged were conclusory allegations that a question of fact existed as to whether it was properly adopted without providing sufficient facts to support their allegations.

Excelsior Garage Parking, Inc. v. 1250 North Dearborn Condominium Ass’n 2015 IL App (1st) 133781, 36 N.E.3d 991, 394 Ill.Dec. 700 (1st Dist. July 8, 2015) Parking garage owner, which operated out of a mixed-use condominium high rise building, sought declaratory judgment action against condominium association seeking a declaration that the association’s declaration required the association to provide garage owner with a clean estoppel certificate in anticipation of sale of the garage. The appellate court ruled that the association was not required to execute a clean estoppel certificate which did not list any of the alleged defaults owed by the garage owner. The court further ruled that the association instead satisfied the declaration requirements by issuing an estoppel certificate that listed amounts the association believed the garage owner owed to it. However, the appellate court further ruled that because the trial court erroneously ordered the association to provide a clean estoppel certificate that did not list any alleged defaults, the issue regarding the estoppel certificate was moot and the appellate court could not undo the trial court’s ruling, as the closing had already occurred on the sale of the garage. Finally,

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Purchasers of condominium unit brought

against vendor and association alleging claims including violation of the Illinois Condominium Property (“Act”), breach of contract and fraudulent concealment for failing to provide documents regarding the association’s adopted amendment to its declaration restricting the leasing of units within the association. The association moved to dismiss the counts against them, as the allegations against them occurred prior to closing on the unit and the association and its Board owed no duty to the purchasers prior to closing. The trial court granted the Association’s motion and the purchasers appealed.

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gations against the Association, that the Association’s board did not owe a fiduciary duty to purchasers prior to closing, as their only duty is to unit owners. Purchasers do not become unit owners until closing of the transaction.

implied warranty of habitability may proceed according to the appellate court because vendor-developer was insolvent and the association did not have full recourse in other proceedings, only partial recourse.

Tower Crossing Condominium Ass’n v. Prate Installations, Inc. 2015 IL App (1st) 13-2920-U, 2015 WL 3903241 (1st Dist. June 24, 2015) (Unpublished Opinion)

Dietch v. Carl Sanburg Village Home Owners Ass’n 2015 IL App (1st) 140717-U, 2015 WL 377170 (1st Dist. May 29, 2015) (Unpublished Opinion)

Association claimed that after construction of the property, various defects in the building caused water infiltration and mold inside the homes. The Association settled with the developer-vendor in the developer-vendor’s bankruptcy proceedings, and the association was assigned the rights of the developervendor to bring claims against the subcontractors involved with the construction of the condominium building. The association sued these subcontractors for implied warranty of habitability, breach of contract and indemnity relating to the alleged building defects. Defendants filed a motion to dismiss arguing that the assigned breach of contract claim was time barred, that the implied warranty of habitability was improperly pled, as it required developer-vendor to be insolvent and home purchaser to be without recourse before suing subcontractor.

The trial court granted the motion to dismiss reasoning that while the vendordeveloper was insolvent, the association did have recourse through the bankruptcy settlement. The court also reasoned that there was no contract between the association (by and through the developer vendor) and defendant Prate and, additionally, the breach of contract and indemnity claims were time barred. The association appealed and the appellate court reversed and remanded for further proceedings. In sum, the appellate court held that the breach of contract and indemnity claims were not time barred because the filing of chapter 11 bankruptcy by the developer-vendor extended the four year statute of limitations period and additional two years after filing of chapter 11 petition. Further, the

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Plaintiff alleged that Association was negligent because of an accumulation of snow and ice on the Association property that caused her to slip, fall and injure herself while on Association property. The association and other defendants filed for summary judgment, claiming there was no duty owed to plaintiff to clear an accumulation of snow and ice as a manual created by the association regarding snow removal was internal and was not a contract that created a duty on the part of defendants. The trial court granted the motion and plaintiff appealed. The appellate court affirmed, ruling that the snow removal manual was intended for internal use for employees and association contractors, not a contract with homeowners, their guests or invitees. Thus, no duty existed as held by the trial court.

V & T Inv. Corp v. 1340 Touhy Condominium Ass’n 2015 IL APP (1st) 140615, 2015 WL 3454566 (1st Dist. May 28, 2015) (Unpublished Opinion) Plaintiff filed declaratory judgment action against the association, asking the court to declare what amount of assessments it owed to association after purchasing the property at a foreclosure sale. The plaintiff also sought injunction prohibiting association from taking any legal action against subsequent, third-party purchaser of the same property. The trial court granted the associa-

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L E G A L U P D AT E

tion’s motion to dismiss finding that plaintiff lacked standing to bring the lawsuit against the association and, alternatively, that plaintiff failed to allege sufficient facts to proceed on injunctive and declaratory relief. Plaintiff appealed and the appellate court affirmed the trial court’s ruling. The appellate court held that the trial court properly dismissed plaintiff’s declaratory judgment action for lack of standing because once the plaintiff sold the property to a third-party purchaser, as in this case, it had no actual interest in the outcome of the controversy wherein it sought a declaration of the exact amount of unpaid assessments it owed to the association. only once any unpaid assessments during the time plaintiff was owner of the property were sought from plaintiff would an actual controversy exist. Until such time, any declaration by the court would be premature and purely advisory.

Reserve of Elgin Homeowners’ Ass’n v. Wallis 2015 IL App (2d) 140274-U, 2015 WL 1455631 (2nd Dist. March 30, 2015) (Unpublished Opinion) Association sued for unpaid common expenses and related charges. The trial court found for the association and association subsequently took possession of the unit. The Association did not lease the unit and, more than two years after taking possession, noticed a motion requesting an additional 13 months to lease the unit. The association’s counsel, however, failed to file the motion with the clerk and on the date of the motion, the association withdrew its motion and the trial court ordered the association to return possession of the unit to Defendant. Then, five days later, the trial court entered an order sua sponte, nunc pro tunc, restoring possession of the unit to the Association.

Defendant filed a motion to reconsider and the association also filed motion for additional time to lease the unit. The trial court granted the association’s motion for additional time to lease the unit and denied Defendant’s motion to

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reconsider. Defendant appealed. The appellate court ruled that it lacked jurisdiction to rule on the appeal because it was not a final order and therefore was not appealable. The appellate court reasoned that the Illinois Condominium Property Act and the Illinois Code of Civil Procedure clearly contemplate that the court’s jurisdiction will continue while the unit owner is dispossessed. This jurisdiction continues until either the board forecloses its lien or the unit owner successfully moves to vacate the order of possession.

University Park Condominium Ass’n v. Midwest Bank and Trust Co. 2015 IL App (1st) 131577-U, 2015 WL 1138486 (1st Dist. March 13, 2015) (Unpublished Opinion) Association received judgment in its favor on two forcible entry and detainer actions against a land trustee for possession and unpaid assessments for two units held in a land trust, without naming the beneficiary of the trust as a Defendant. Defendant land trust appealed alleging that the trial court lacked subject matter jurisdiction because the association brought the action against a deceased individual and, additionally, judgment was entered improperly in the absence of a necessary party, namely, the beneficiary of the trust. The appellate court reversed and remanded. In sum, the appellate court held that the court did not lack subject matter jurisdiction because the deceased party was dismissed from the case. However, the court held that the case must be reversed and remanded for the trial court to review the language of the trust agreement to determine the responsibilities of the trustee and beneficiary, in order to determine whether a beneficiary was a necessary party to the forcible entry and detainer action.

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2015 Legislative Changes Illinois Condominium Property Act Addition of Section 18.8 -Effective January 1, 2015, expanded the powers of the Board by voiding governing document restrictions that limit or restrict the rights of the Board, unless provision restricting Board’s rights is approved by vote of 75% of the unit owners at any time after election of the first unit owner Board.

Amendment to Section 18.4 -Effective January 1, 2015, added sub-section (s) regarding adoption and amendment of rules and regulations for the electronic delivery of notices and other communications. Also included procedure for delivery via electronic communication and prior consent of owner regarding electronic notices and communications.

Amendment to Section 2 -Effective January 1, 2015, defined “electronic transmission” and “acceptable technological means” for purposes of using technology for member voting.

Addition of Section 18.8 -Effective January 1, 2015, added provisions allowing the use of technology in matters requiring member voting and specifically delineates what is required in order to vote electronically, the types of

authorized technology to use, and the restrictions on the use of technology in voting.

Amendment of Section 12 -Effective June 1, 2015, amended the language regarding property damage insurance and amounts of coverage, adds provisions related to requirements for directors or officers liability coverage, extended the definition of improvements and betterments, Board no longer allowed to purchase insurance on behalf of owner who fails to purchase it. Applies only to insurance polices issued or renewed on or after June 1, 2015.

Common Interest Community Association Act Amendment to Section 1-5 -Effective January 1, 2015, added definition of “acceptable technological means” and “electronic transmission”.

Amendment to Section 1-25 -Effective January 1, 2015, amended language to provide for members ability to vote electronically or by other technological means, as well as Association ability to conduct elections electronically or by other technological means. Also included notice and other requirements regarding the use of technology for voting of Association members.

Amendment to Section 1-35 -Effective January 1, 2015, amended the provision

to require an owner to provide a copy of a lease to the Association unless otherwise provided in the Association’s governing documents.

Addition of Section 1-85 -Effective January 1, 2015, added language regarding the use of technology for notice and requirements and restrictions on the use of technology by Association’s as to notice provisions.

Amendment to Sections 1-5, 1-20, 1-25, 1-30, and 1-50 -Effective July 1, 2015, these sections were amended to include language that the act applies to common interest community association’s that are organized as limited liability companies, function pursuant to operating agreements.

Illinois Code of Civil Procedure Amendment to 735 ILCS 5/9-111.1 -Effective January 1, 2015, amends the Forcible Entry and Detainer Act by clarifying the Association’s right to rent out a unit in which it has obtained possession through a forcible entry and detainer action. Commencement of lease must be within 8 months of the date the stay of possession expires, otherwise Association must obtain court approval. Association may lease for 13-months, if the delinquent balance is not paid off within 13months, the Association may request 13 months extension of lease with approval of court.

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Amendment to 735 ILCS 5/2-203 -Effective January 1, 2015, this amendment requires employees of ‘gated residential communities’, including condominiums and other community associations, to permit entry to a process server for the purposes of serving process on a defendant or witness who resides or is known to be in the community.

Amendment to 735 ILCS 5/9-102 -Effective July 14, 2015, this amendment provides that in order to maintain a forcible entry and detainer action, the association may be a not-forprofit corporation or a limited liability company.

vote of the unit owners is not necessary. Also, amended to provide that it is no longer necessary to seek approval for amendments from mortgagees, but notice to mortgagees and other lien holders of record is still required.

Addition of Section 35 -Effective July 1, 2016, provides that every association subject to the Illinois Condominium Property Act must comply with the Condominium and Common Interest Community ombudsperson Act and is subject to all provisions of the Act.

Condominium and Common Interest Community Ombudsperson Act Addition of 735 ILCS 615 Effective July 1, 2016, this act creates an office of ombudsperson for condominium and common interest communities. The ombudsperson shall be charged with offering training and other resources to unit owners, Associations and Boards. They are required to post specific information on the Department’s website. Every association covered by the Act must create and enact an internal dispute resolution policy on or before January 1, 2017. Each Association will also be required to reg-

Legislative Changes Effective in 2016 Amendment to Section 1-15(b) -Effective June 1, 2016, subsection (b) which discusses provisions of the Community instruments being severed by the Act shall be deleted in its entirety.

Addition of Section 1-90 -Effective July 1, 2016, all common interest community associations subject to the Common Interest Community Association Act must comply with the Condominium and Common Interest Community ombudsperson Act and subject to all of the Act’s provisions.

Illinois Condominium Property Act Amendment to Section 18(a)(6) -Effective June 1, 2016, decreases number of days from 30 to 25 for which the Board must supply the owners a copy of the proposed annual budget.

Board now has 5 more days to prepare and deliver annual budget to owners.

Amendment to Section 18(a)(9) -Effective June 1, 2016, amends this subsection to expand the Board’s powers to use technology.

Now Board member may be considered present at meeting by using acceptable technological means.

The amendment also includes language that notice of meeting must be given to each owner who has consented to accept notice by technological means. This notice must be given 48-hours in advance of meeting.

Amendment to Section 18(a)(21) -Effective June 1, 2016, this subsection has been added to provide Boards with greater authority to in an emergency situation. This subsection also requires Boards to give notice of emergency within 7 business days of occurrence and a general description of action take to address emergency.

Amendment to Section 27 -Effective June 1, 2016, provides that if amendment is necessary to correct an omission, error or inconsistency to conform the condominium instrument to the Act or to another applicable statute, a

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ister with the ombudsperson, with renewal every two years (no fee required). There may be a fee imposed for failing to register or registering late.

Additionally, if an association fails to initially register two years after the effective date or fails to renew its registration on three or more occasions, the association’s right to enforce its claim for unpaid assessments may be suspended during the period of non-registration.

FHA- ML 2015-27 Condominium Project Certification (Changes to Approval Policy provisions as of November 13, 2015, in effect until November 12, 2016)

Calculation of Required FHA Owner-Occupancy Percentage The procedure for calculating required owneroccupancy percentage is modified to allow units that are not investor-owned to be considered owner occupied for the purpose of Condominium Project approval.

Unit is considered investor-owned if the unit is: tenant occupied; vacant and listed for rent; existing (previously occupied), vacant and listed for sale; or under contract to a purchaser that does not intend to occupy the unit as a Principal Residence or Secondary Residence.

For purpose of calculating the owner-occupancy percentage: on multi-phased projects, the percentage is calculated on total number of units in the first

declared phase and cumulatively on subsequent phases; for single-phase condos, all units are used in the denominator when calculating the percentage.

Documentation of Calculation of Required FHA Owner-Occupancy Percentage For each unit qualifying as owner-occupied, the mortgagee must document the following: evidence that units have closed and are owner-occupied for existing units; for proposed units, under construction units or rehabilitated units, document evidence that units have closed and are owneroccupied; or submission of copies of sales agreements and evidence that a mortgagee is willing to make the loan; or a list from builder/developer of all units already sold, under contract, or closed that are owner-occupied accompanied by a signed certification from builder/developer.

Expansion of Eligible Insurance Coverage Associations are required to maintain adequate “master” or “blanket” property insurance in an amount equal to 100% of current replacement cost of the condominium, exclusive of land, foundation, excavation or other items normally excluded from coverage.

Insurance coverage for condominium project approval that consists of pooled policies for affiliated projects, state-run plans, or contains coinsurance obligations on part of policy holder is permitted to satisfy this requirement, with specific requirements for each.

Unit owner is not permitted to satisfy the requirement by obtaining “gap” coverage.

Revisions to the FHA Recertification Requirements FHA condominium approvals will expire two (2) years from the date of placement on the list of approved condominiums. Further participation in the program after expiration of this two (2) year period requires recertification of the project to ensure that the project is still in compliance with FHA’s eligibility requirements and that no conditions currently exist which would present an unacceptable risk to FHA. The requirements delineate the following: submission time frame, eligible submitters, eligible processing options, submission package location, complete packages, annexations and legal phrasing in packages, data entry requirements, withdrawal of recertification approval, requirements for withdrawn or rejected projects, receipt of recorded documents Required Documentation includes: Recertification checklist, project certification (appendix A); recorded amendments to the Declaration not previously submitted; financial documents; management agreement; leasehold agreement; affordable housing agreement; special assessments; list of legal actions currently or settled within 12 months prior to recertification with explanation; evidence of adequate insurance coverage; completion of data requested on Recertification checklist and other documents specified by HUD/FHA. Y

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