CondoLifestyles October 2014

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o CtobeR 2014 | voLume 18 | NumbeR 3

CondoLifestyles

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

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New Judicial Rulings & Laws Impact Community Associations F E AT U R E S

The Rules & Role of Rules & Regulations Survey: Association Boards & Managers are Optimistic

Top 10 Do’s & Don’ts of Budget Approval Foreclosure Filings Down to Pre-Recession Levels Technology Acknowledged, Constraints Exist

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03 new Judicial rulings and laws impact community associations

By Howard S. Dakoff, Levenfeld-Pearlstein, LLC. L E G A L U P D AT E

09 the rules & role of rules & regulations

By Bob Prince, Keough & Moody, P.C. S P E C I A L F E AT U R E

12 survey: association Boards & Managers are optimistic 16 industry happenings Compiled by Michael C. Davids & Sherri Iandolo 20 from the editor 21 directory advertisements EVENT HIGHLIGHTS

28 Mcd golf invitational M A N A G E M E N T TA L K S

30 top 10 do’s & don’ts of Budget approval

By Salvatore Sciacca, Chicago Property Services EVENT HIGHLIGHTS

31 aBoMa roast & toast for Bob Wiggs M O N E Y M AT T E R S

34 foreclosure filings down to pre-recession levels

By Michael C. Davids L E G A L U P D AT E

36 technology acknowledged, constraints exist

By Ryan Shpritz, Kovitz Shifrin Nesbit EVENT HIGHLIGHTS

40 Mcd showcases the races

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By Howard Dakoff, Levenfeld Pearlstein, LLC

New Judicial Rulings & Laws Impact Community Associations there has been a significant number of judicial rulings and new legislation activity in 2014 and many have far reaching implications to illinois community associations. Below is an update on seven legal items that you should be aware of.

Reference to “ICPA” below is the Illinois Condominium Property Act. Reference to “CICAA” below is the Common Interest Community Association Act.

this legislation allow for quicker notification and communication to unit owners, but it will also reduce mailing costs for associations.

Section 18.4(s) of the ICPA now states: “to adopt and amend rules and regulations (l) authorizing electronic delivery of notices and other communications required or contemplated by this Act to each unit owner who provides the association with written authorization for electronic delivery and an electronic address to which such communications are to be electronically transmitted; and (2) authorizing each unit owner to designate an electronic address or a u.S. Postal

1. Electronic Communications To Be Allowed by Law effective January 1, 2015, Section 18.4 of the ICPA was amended to permit condominium boards of directors to adopt rules and regulations to allow for electronic delivery of notices and other communications required by the ICPA if a unit owner submits an electronic address for such notices. Not only will

Service address, or both, as the unit owner’s address on any list of members or unit owners which an association is required to provide upon request pursuant to any provision of this Act or any condominium instrument.” upon the adoption of rules pursuant to this new law and collection of electronics addresses, boards may send unit owners notices of meetings and any other information that is required under the ICPA to be distributed to unit owners. Not only will the legislation allow for quicker notification and communication to unit owners, but it will also reduce mailing costs for associations.

It is recommended that boards work with their legal counsel to draft and adopt (i) a rule allowing for electronic delivery of notices and other communications and (ii) a

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It is recommended that boards work written authorization form for unit owners to execute designating an electronic address.

2. The Governor Vetoes Senate Bill 2664 (Regarding Foreclosures) Senate bill 2664 was vetoed by the Governor in a nod to condominium associations, which vigorously opposed the legislation and which would have greatly limited a condominium association’s ability to collect unpaid assessments from a buyer after a foreclosure.

And then unexpectedly, the Governor proposed the State Senate and State House of Representatives amend the Senate bill to provide that the condominium association be allowed to collect all assessments, attorneys’ fees and costs incurred by the association in attempting to collect the assessment delinquency while keeping the 9 months’ worth of regular assessments provision (which is an increase from the current 6 months of assessment number). under the Governor’s proposed amendment, the third party purchaser of a condominium unit at a judicial foreclosure sale or

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excludes the requirement one who acquires title with their legal counsel to draft and that the condominium through a consent foreclosure, a common law adopt (i) a rule allowing for electronic association must “initiate collections” in order to strict foreclosure, or the delivery of notices and other commu- receive the back assessdelivery of a deed in lieu ments. of foreclosure shall have nications and (ii) a written authorizathe proposed law the duty to pay to the association an amount tion form for unit owners to execute also amends Section 9(g)(5) to require the not to exceed the total of designating an electronic address. mortgagee to include in the regular monthly the notice of foreclosure assessments for the consale, the amounts due to dominium unit for the 9the Association from a third party purchaser. month period immediately preceding the to ensure that the back assessments are colforeclosure sale. the proposed amendment lectible, property managers will have to proallows for the collection of attorneys’ fees and vide mortgagees statements with the unpaid court costs from the third party purchaser, but amounts due. in no case, can the association collect more the future of this amendment now lies than 9 months of regular assessments. the with the bill’s sponsor, Senator michael amendment includes a definition of “Regular Hasting, who can (1) move the Senate to monthly Assessments” to mean “the amount accept the Governor’s changes, (2) move the charged by the association as provided for in Senate to override the Governor’s veto or (3) the current annual budget.” take no action which will keep the current law the requirement of the third party purin place. If the Senate approves the Govchaser and mortgagee to pay assessments is ernor’s changes, the House of Representatives automatic. the proposed amendment

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will have the same options. If both Houses approve the Governor’s changes, then the proposed amendment will become law.

3. Appellate Court Rules That Under Certain Circumstances a Buyer of a Foreclosed Condominium Unit May Be Responsible for All Unpaid Assessments Owed by the Previous Owner Pursuant to the ICPA, a purchaser of a foreclosed condominium unit is responsible for paying assessments beginning the first day of the month following the foreclosure sale.1 unless changed by Senate bill 2664, a condominium association’s ability to collect from a new owner any unpaid assessments owed by the previous owner is capped at six months.2 However, there is now an exception. on August 12, 2014, the Illinois Appellate Court affirmed the trial court’s ruling in1010 Lake Shore Association v. Deutsche bank National trust Company, which held that if a purchaser of a foreclosed 1

765 ilcs 605/9(g)(3) (West 2008).

condominium unit does not pay the assessments starting the first day of the month after the foreclosure sale, as required

by Section 9(g) of the ICPA, the association’s statutory lien against the unit is not extinguished and the purchaser is responsible for all assessments owed by the previous owner.3 the defendant in the case argued that the court’s ruling contradicts “well-settled law which provides that all outstanding claims on property that has been the subject of a foreclosure sand sale are extinguished and that the purchaser takes the property free of any such claims.” However, the Appellate Court reasoned that “section 9(g)(3), which is contained in the Condominium Property Act and relates to the payment of 2

the six months is subject to change pursuant to senate Bill 2664. see paragraph 2 above for more information.

assessments by the purchaser of a condominium unit at a judicial foreclosure sale and the effect the making of such a payment has on the status of a lien arising from a previous owner’s failure to make assessments payments, is a specific statutory provision that must control over the general rule of foreclosure law cited by defendant.” the court concluded “that a lien created pursuant to section 9(g)(1) is not 3

1010 lake shore association v. deutsche Bank national trust company, 2014 il app. (1st) 130962.

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condominium unit from the new purchaser.

It is recommended that management and the board of Directors obtain legal advice following a foreclosure to ensure the association is collecting the most assessments that the law allows.

4. The Association’s Right to Rent a Unit Is Clarified

fully extinguishable by a foreclosure and sale because the purchaser must make an assessments payment under section 9(g)(3) to confirm the extinguishment of that lien…” based on the court’s ruling, condominium associations can now collect the entire lien for unpaid assessments from a purchaser who fails to pay monthly assessments timely after a foreclosure sale. While the

court’s opinion is not clear as to when payment is deemed timely or untimely, it is incumbent upon management and the board to send the purchaser of a foreclosed unit timely monthly assessment invoices providing them an opportunity to pay current assessments. If the new owner fails to pay the assessments timely, the association is entitled to collect its entire assessment lien against the

House bill 4782, effective January 1, 2015, clarifies the Associations’ right to rent out a unit in which it has obtained possession through a forcible entry and detainer action. the amendment provides that the commencement date of the lease must be within 8 months of the date the stay of the order of possession expires. otherwise, the Association must obtain approval from the court.

An association is still entitled to lease the unit for 13 months. If the assessment delinquency owed by the subject unit has not reached a zero balance after 13 months, and the lease needs to be extended beyond 13 months in order to pay off the assessment balance, then the association must seek approval from the court.

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5. The ICPA Insurance Requirements Are Amended Senate bill 3014, effective June 1, 2015, amends Section 12 of the ICPA relating to the Association’s insurance requirements for the common elements and limited common elements. First, property insurance coverage must now provide coverage “at the time the insurance is purchased and at each renewal date, in a total amount of not less than the full insurable replacement costs of the insured property, less deductibles, but including coverage sufficient to rebuild the insured property in compliance with building code requirements subsequent to an insured loss, including: Coverage b, demolition costs; and Coverage C, increased costs of construction coverage. the combined total of Coverage b and Coverage C shall be no less than 10% of each insured building value, or $500,000, whichever is less.” the bill also amends Section 12(3)(D) of the ICPA to require that the fidelity bond for the directors and officers to “include, but not be limited to, coverage of: defense of nonmonetary actions; defense of breach of contract; and defense of decisions related to the placement of adequacy of insurance. the coverage required by this subparagraph (D) shall include as an insured, past, present, and future board members while acting in their capacity as members of the board of directors; the managing agent; and employees of the board of directors and the managing agent.” the bill further amends Section 12(h) by eliminating the board’s right to purchase insurance coverage on behalf of a unit as allowed by rules and regulation adopted by the board regarding mandatory unit insurance in the event that a unit owner does not purchase such insurance. If your condominium association has previously adopted mandatory unit insurance rules with that remedy, such rules and regulations should be revised to eliminate that remedy due to the change in the law. these changes apply only to insurance policies issues or renewed on or after June 1, 2015.

6. Community Associations Must Allow Special Process Servers Access to Gated Communities effective January 1, 2015, the Illinois Code of Civil Procedure was amended to require employees of a residential housing community, including condominium or community associations, and residential cooperatives, to grant licensed process servers entry into the community to serve process of law on a defendant or a witness who resides within the gated community or building.

7. CICAA Is Amended to Include Technical Change Regarding Leasing Senate bill 3057, effective January 1, 2015, amends the Common Interest Community Association Act (CICAA) to require an owner to provide a copy of a lease to the association unless otherwise provided in the association’s governing documents.

For the full text of any of the new legislation provided herein, go to www.ilga.gov/ Y

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By Bob Prince, Keough & Moody, P.C.

The Rules & Role of Rules and Regulations rules and regulations are an often debated and misused document in an association’s arsenal.

M

ost associations have rules and regulations that govern the administration of the association and the use and occupancy of the units and the common elements. unfortunately, associations often fall victim to certain pit falls and problems in properly adopting their rules and regulations.

What Can Be In Rules and Regulations: rules and regulations are generally meant to complement the provisions in the declaration. this means that the rules are not meant to stand alone and create new restrictions but are meant to interpret and expand on current restrictions in the declaration and bylaws. the court cases on the

topics of rules provide what conditions must be satisfied in order to establish that a rule is proper. rules must be reasonable in their purpose and in their application. rules governing conduct must also deal with some issue that is antagonistic to the legitimate objectives of the association. if the rules do not address these issues, they will likely be found invalid by a court.

Authority to Adopt Rules: Whether and to what extent your association can adopt rules is based on what type of an association it is. pursuant to the condominium property act, condominium associations have the authority to adopt rules regarding the administration and

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the use and occupancy of the units within the association. this gives broad authority to condominium associations. non-condominium associations, on the other hand, do not have any significant statutory authority concerning adopting rules. in a recent case, an appellate stated that an association has inherent authority to adopt rules regarding its common areas and, presumably, the administration of the association. however, if the association wants to adopt rules on the use of the units, the association must have some authority to adopt those rules, in its declaration, by-laws, or articles of incorporation. absent such authority, the association will not be allowed to adopt rules on those topics. thus, non-condominium associations must take a close look at their governing documents to determine what authority they have to adopt rules.

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Rules must be reasonable in their laws, and articles of incorporation to determine what they must do to Rules governing conduct must also section 18.4 (h) of the adopt them. if a procedure condominium property act deal with some issue that is antago- is provided, it must be follays out the procedure for a lowed. often, however, the condominium to adopt its nistic to the legitimate objectives of governing documents are rules and regulations. that silent on the procedure to procedure requires that the the association. If the rules do not adopt rules. in those association send out a copy instances, associations have address these issues, they will likely of the rules along with a much more leeway in notice of an owner’s adopting the rules. associbe found invalid by a court. meeting that is held for the ations opting to be conserpurpose of discussing those vative on the issue will proposed rules. the notice follow the procedures for condominiums pursuant must be sent at least ten (10) days but not more to the condominium property act since a court than thirty (30) days in advance of the meeting, will likely look favorably on such a process. in which is the same notice that is required for any other situations, non-condominium associations membership meeting. there is no quorum will adopt the rules without sending them to the requirement for the meeting and its sole purpose membership in advance of the meeting. in these is to discuss the proposed rules. after that discuscases, the associations should make sure to send sion has been held, the meeting should be the rules to the members after they are adopted adjourned, and the Board can adopt the rules at its and should consider delaying the effective date or next meeting, which is often that same evening. the enforcement of the rules until after they have for non-condominium associations there is no been distributed to the members and they have law that says how rules will be adopted. instead, been given a chance to conform their conduct. associations must look to their declaration, byassociations differ on the process they use to

The Process of Adopting Rules:

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purpose and in their application.

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draft their rules as well. some boards want to take the lead by drafting the rules themselves. others want their attorneys to draft and revise them. regardless of which approach an association takes, it should strongly consider involving its property manager and attorney before it tries to actually adopt proposed rules.

Policies Concerning Enforcement of Rules: When an owner violates an association’s governing documents, the board has the duty to enforce. it is a best practice to have a set procedure in place that dictates how enforcement will take place, generally called an enforcement policy. this provides advance notice to the owners of what to expect and helps eliminate allegations of discrimination. several items that should be addressed in the enforcement policy include: 1. A complaint procedure - do they have to be submitted in writing?

2. How notice of a violation will be sent to an owner - does the board want to send by certified mail and regular mail?

3. How an owner may request a hearing - the board must allow an owner to request a hearing for the violation;

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4. The process of a hearing - will the owner only be able to state their case or is it a mini-trial where attorneys could be present?

5. Board did not follow procedures in adopting rules - if the board fails to follow the procedures set forth in the condominium property act (for condominiums) or in the governing documents (non-condominiums), then the rule will be invalidated by the court.

5. How the Board’s decision will be transmitted to the owner; 6. The fines that can be levied if a violation is found - some policies have a range of fines ($50 to $500) and others have a fine schedule ($50 for certain types of violations and $100 for other types of violations); and

Conclusion

7. Whether a continuing violation results in per day fines.

When the board has adopted an enforcement policy, it is imperative that it stick to it. if it fails to do so, it could be liable for breach of fiduciary duty.

Mistakes Boards Make Concerning Rules and Enforcement: 1. Enforcement of Rules is not uniform - rules must apply to all owners and cannot target certain individuals.

2. Levying a fine without notice or offering a hearing - the condominium property act and the common interest community associ-

ation act both state that associations can levy fines after notice and an opportunity to be heard. if you have not given notice or the opportunity for a hearing, the fine will be invalidated by a court.

3. Adopting a rule in conflict with the declaration - the rules cannot conflict with the declaration. if the board wants to enforce such a rule, it must amend the declaration itself.

4. Adopting a rule after the fact - the board cannot adopt a rule after a violation occurred and apply the rule retroactively to the violation.

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rules and regulations are an important component of an association’s governing documents. When properly adopted, they provide the board with the tools to maintain property values within the association.

Boards should periodically review their rules and regulations. as times change, the board should consider whether a rule remains reasonable and necessary and, if not, remove it. as new issues arise, the board should adopt rules concerning those issues. Y Editor’s Note: this article is a sample of the information provided in the seminar entitled “rules and regulations: do it right from the start to Win in the end” as presented by Bob prince and gabriella comstock of Keough & Moody, p.c., at the cai legal forum on May 1, 2014.

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S U R V E Y:

Association boards and managers Are optimistic according to survey results released by the community associations institute in september, the national economy and housing market are improving—however slowly—and that means things are looking up for most associations, which is welcome relief to many communities that weathered some difficult years.

W

hile some associations continue to feel the pinch, almost 90% of community managers and board members say their association’s overall financial health is “excellent” or “good,” with 10% saying “fair” and only about 2% indicating “poor” financial health. the results are based on responses from almost 1,000 community managers and association board members who completed CAI’s 2014 State of Associations Survey.* Looking ahead, almost 55% of managers

and board members see their association’s financial condition being “much” or “slightly” better in the next five years, while about 42% expect little change. Less than 4% anticipate a turn for the worse in the next five years.

“Like the country as a whole, many associations experienced especially difficult challenges during the downturn,” says CAI Chief executive officer thomas Skiba, CAe. “this survey affirms that most associations are better off today, and it’s reassuring to know that most managers and board members

express optimism about the next few years.

Nobody can predict the future with certainty, but that’s a very positive economic indicator for associations and the professionals who support them.”

Assessments and Delinquencies Almost 40% of associations did not increase assessments during the most recent budgetary cycle. of those that did raise assessments, 33% of respondents say assessments increased 1 to 3%, while 17% report a 4 to 6% hike, 7% a 7 to 10% increase and 4% an increase of 10% or more. About 13% of associations levied a special assessment during the previous 12 months. most managers and board members are confident their homeowners believe they are

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getting a good value for their assessment dollars, with 26% “overwhelmingly” satisfied, 60% “for the most part” satisfied and 10% “somewhat” satisfied. Almost 5% acknowledge their members are “not really” satisfied with the value they are getting for their assessments. understanding that rates of assessment delinquency often reflect the health of a local economy and housing market, respondents were asked the percentage of owners who are behind on their payments to the association.

About 81% of respondents say their delinquency rate is 6% or less, with three quarters of those in the 0 to 3% range. About 15% peg the delinquency rate at 7 to 15%, with 4% saying it’s more than 15%.

Asked if their associations pursue delinquencies differently than before the mortgage foreclosure crisis and economic downturn, 44% say they are now “much” or “somewhat” more aggressive, with a near-even split between the two. Almost 55% say their collection policies and approaches have remained largely consistent, while less than 2% say their associations have become less aggressive.

Reserve Funding encouragingly, almost 70% of association managers and board members believe their associations are setting aside sufficient funds for future repairs and replacements. the remaining 30% do not believe their communi-

ties have sufficient reserves.

“Although 70% is a good number, most community association experts would be concerned that almost three in 10 associations have under-funded reserves,” Skiba says. “We strongly encourage associations to budget with a sharp eye toward the future. It’s not easy making choices between immediate and long-term needs, but those bills will become due eventually.” the survey shows that almost 75% of associations base their reserve funding on a formal study or updates conducted by a professional reserve specialist; 25% do not use a reserve specialist.

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Leadership Performance most community managers and association board members believe their residents are satisfied with the performance of the association leadership team. Almost half of respondents believe 80% or more of their residents are satisfied, while about a third estimate their approval rate at 60 to 80%. About 20% peg their approval rating at less than 60% of residents. According to a march-April 2014 national survey of community association residents conducted for the Foundation for Community Association Research, 90% of association residents rate their overall experience as positive (64%) or neutral (26%).

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Community

Leading Challenges Community associations face a number of challenges, but resident apathy is rated the “most serious” issue for almost a third of the associations represented in the survey— higher than any other issue.

“While community leaders rightfully seek more volunteers and greater owner participation, I don’t think apathy is necessarily an indication of poor management or owner discontent,” Skiba says. “A lack of interest can mean that residents are largely satisfied with how the association is being managed and don’t feel the need to get involved.” the following are the percentages of managers and board members who rated issues as “very” or “somewhat” serious: » 31% Resident apathy » 20% Renters and rental-related issues » 18% Rules enforcement

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» 15% Insufficient money to do what is needed

associations

face

a

homeowners association boards, while 45% are in apathy is rated the “most serious” condominium communities. the remainder » 13% Deteriorating issue for almost a third of the associa- represent mixed-use common elements communities and cooptions represented in the survey— » 13% Community eratives. Percentages may appearance and not always equal 100 due higher than any other issue. curb appeal to rounding and a small » 12% Assessment number of “don’t know” delinquencies responses. the findings are based on information provided by community managers and » 12% Issues related to aging residents association board members who chose to » 5% Resident complete the online survey. Since respondents discontent are a self-selected sample of CAI members, the results are not offered as a scientifically Survey Sample* valid representation of all managers and Almost 40% of survey respondents are board members, but rather to provide a snapassociation board members, 35% are on-site shot of associations from the perspective of managers and 25% are portfolio managers. managers and board members. the survey the latter were asked to provide answers will be repeated annually so the data can be based on their largest association client. About tracked over time. Y 50% of respondents work for or serve on

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number of challenges, but resident

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l e g a l u p d at e

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All material herein is copyrighted 2014Š.

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condo lifestyles

Chicago Property Services inc.

Chicago’s #1 Property Management Company

More Living.

Less Worrying.

industry happenings

CondoCerts

CondoCerts, a leader in online document management for the real estate industry, announced it has integrated its platform with Village Management Software (VMS), one of the nation’s fastest growing accounting software platforms serving the community management industry.

The integrated solution allows community management companies to pull information directly from their VMS accounting software into CondoCerts’ document preparation platform, which includes standard demands and lender questionnaire documents for real estate transactions. The management companies can update their association data one time in VMS and CondoCerts will pull the information with the click of a button.

“We’re pleased to partner with a leading accounting software provider like VMS to offer this convenient service to our valued community management clients,” said

condominiums | townhomes | hoas | 100 units & under 3634 W. Wrightwood

Chicago 60647

www.chicagopropertyservices.com 312.455.0107

16

condo lifestyles

Sean Madigan, CondoCerts National Sales Manager.

“Integration enables our clients to choose the solutions that work best for their associations, reducing data upkeep and saving time and money.”

Setup for the CondoCerts and VMS integration is quick and easy, with options to include or exclude individual questions from being integrated. Management companies can utilize global settings to create consistencies for all new community associations and then drill down to each individual association for added customization.

“Our integration with CondoCerts brings two industry leaders together,” said Michael Renaldo, President of TeamSoft Solutions, the company that offers the VMS product. “Together, we are making it easy for our mutual clients to safely and securely transfer information between our two platforms to better serve their associations.”

J.Hershey Architecture

Caruso Management Group

The Entrepreneurial Excellence Awards recognize and promote entrepreneurship in Cook, DuPage, Kane, Lake, McHenry and Will Counties. Honorees demonstrate the best traits of entrepreneurship, including willingness to take risk, drive, perseverance and business creativity.

Caruso Management Group also announced the addition of their newest team member, Stephan Gourdouze. Stephan has been in the property management industry and the construction/sales industry for over 30 years. "We are fortunate to have Stephan on our team bringing his wealth of knowledge and experience to our communities. The increase in both space and employees allows Caruso Management Group to serve more communities," Caruso continued. "This past year Caruso Management Group welcomed Abby/Rose Townhome Association, Blackberry Creek Duplex Owners Association, LaGrange Court Condominium Association, Meadowridge Villas Homeowners Association, Portsmouth Condominium Association, River Bend Townhome Association, River Hills Neighborhood Association, and Springbrook Villas Property Association to our family of communities."

John Hershey, President of J. Hershey Architecture, has been selected as a recipient of the 2014 Daily Herald Business Ledger Entrepreneurial Excellence Award.

John is one of only five in his category that were selected as winners. John said, “I am honored to receive this award on behalf of the hard working efforts of our staff!”

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Caruso Management Group recently announced that they have moved to 1717 Park Street, Ste 110, Naperville, IL 60563. According to President Marcia Caruso, "this new space overlooking a pond in the Park Place Business Park, has added another 1,000 sq feet allowing for a larger conference area and additional workspaces for employees."

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industry happenings

industry happenings

FirstService Residential

FirstService Residential recently moved their offices and is now located in Chicago’s Lakeshore East neighborhood- on the 19th floor of 303 East Wacker Drive.

FirstService Residential held their annual Vendor Expo on Friday, July 26th. Over 200 guests were in attendance along with 60 industry partners that exhibited their products and services to FirstService managers and operational teams. Held at the Abbington Banquet Hall in Glen Ellyn, FirstService Residential proudly donated over $10,000 of the event proceeds to the Neighborhood Housing Service of Chicago (NHS). Visit www.nhschicago.org to see how NHS supports and revitalizes neighborhoods in need. FirstService Residential President Asa Sherwood commented, “thanks to our managers and partner exhibitors we had another successful year for our Vendor Expo.”

Sherwood continued, “We would like to welcome the following employees and communities to the FirstService Residential family:” Michael Donnell joins us as a Regional Director managing a portfolio concentrated in the Streeterville area.

Michael comes with a CMCA, and AMS, with over 8 years’ experience in community association management. Michael recently came from another Chicago area management company where he managed a portfolio of 14 community associations, totaling to over 1900 units. Michael is a consistent performer who has been able to successfully juggle large portfolios throughout his career

Rachel Rowley joins us in the newly created role of Director, Suburban Development. Rachel comes with a CMCA, AMS, and PCAM, with over 10 years of community management experience. Rachel recently came from another Chicago area management company, where she managed a portfolio with over 9 communities and 60 board members. Rachel has a record of maintaining 90% in client retention by building long term relationships with her communities. Rachel has extensive experience in marketing and development through building her own marketing company which managed branding, promotions and sales. Rachel will be responsible for procurement and growth of our suburban operations.

Effective August 1st, we welcomed Bowes Creek Active Adult HOA and Bowes Creek Active Adult Townhomes.

Located in Elgin the community is comprised of single family homes, and town homes, which total to over 230 units with additional units still in development. Catering to those 55 years of age or better, the Active Adult Collection at Bowes Creek Country Club features a private gated entry, and a well-appointed clubhouse affording residents the luxury of an on-site gym with scheduled classes, tennis, and bocce courts, a heated pool, and social rooms for banquets, billiards, or cards.

Across the nation, Toll Brothers active adult communities have become known for their luxury, privacy, and resort-style activities and amenities.

Effective September 1st, we welcomed C/A 23 (Aberdeen) Condominium, which is a 39 unit boutique building located in the West Loop. C/A 23 offers its residents private elevator access to every home, 11’ ceilings, two private balconies, and 1,900 square feet - all on one floor. Belgravia Group developed the community in 2009.

Effective October 1st, we welcomed Kinzie Station Condominium, located in the desirable Fulton Market River District. The full amenity building includes a 24 hour doorman, onsite management, onsite maintenance, bike rooms, exercise room, party room, sundeck, receiving room, storage, and cleaners. The community features 180 units, along with 4 townhomes, and a 23 story condo tower.

Property Specialists, Inc.

Nearly two years after the passing of Tracy Hill, the company he founded has found a new owner in his longtime friend and colleague Cathy Ryan. Ms. Ryan finalized the purchase of Property Specialists Inc. (PSI) on September 2nd after serving as President & CEO following Tracy’s retirement prior to his untimely passing.

The company’s ownership was held in a trust until the purchase could be finalized by all parties involved.

“Tracy Hill was more than an employer,” said Ms. Ryan.

“He was a father-figure, mentor and a dear friend. I am extremely excited to take over the ownership of PSI and continue to grow and improve this company in a way that would have made Tracy very proud. His company is in good hands.”

Although PSI is now under new ownership, its communities will continue to see the same commitment to their residents. A Palatine native, Ms. Ryan has spent over 30 years with PSI having begun as Mr. Hill’s secretary and working her way through the company while raising 4 daughters. Throughout her time at PSI she has helped grow the company from 10 communities to over 250 located through Northern Illinois and Southern Wisconsin. PSI is currently one of only seven Illinois firms to have obtained the coveted Accredited Association Management Company (AAMC), the highest designation awarded by Community Association Institute.

In 2013 Ms. Ryan received the PCAM designation through Community Association Institute, the highest individual designation provided by the organization. She is currently an elected member of the CAI-IL Chapter Board of Directors, taking an active role in the organization’s finance committee. Ms. Ryan serves on the Editorial Advisory Board for Condo Lifestyles, and has served as either author or contributor to several industry related articles published in various media throughout the Midwest. She is an active supporter of Special Olympics, serving on fundraising committees for this organization.

“Mr. Hill taught me that your company is only as great as the people who surround you, for they are the most important people of all. I am truly grateful for both my hardworking staff, and the many Boards who continue to place their trust in PSI.”

THE SOURCE FOR INFORMATION ON INDUSTRY NEWS AND TRENDS

Interested in Green Building Issues Chicagoland

&

Buildings Environments FOR MORE INFORMATION CALL

630.932.5551

OR VISIT

www.chicagolandbuildingsandenvironments.com

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industry happenings ProposalPalooza

Associa companies Vanguard Community Management & Legum & Norman Mid-West jointly held the popular program ProposalPalooza on October 10, 2014 at the Donald Stephens Convention Center in Rosemont. Over 325 community association board members, guests and managers attended the event.

In addition to educational seminars and a vendor expo of 125 companies, a luncheon was held with vendors, board members, and community managers seated together to provide more communication and networking. The program also featured a silent auction to benefit Associa Cares. Tables of silent auction items were dispersed throughout the vendor show with winners announced toward the end of the program during an afternoon cocktail reception.

Associa Cares provides charitable support to those people and communities that have been struck by natural and man-made disasters. Funded entirely by tax-deductible donations of Associa employees and concerned citizens across North America, the organization administers resources to where they’re most needed. Associa’s desire is to help people get back on their feet and recover as quickly as possible. For additional information please visit www.associacares.com.

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First Community Management

The property management firm First Community Management announced its expansion by acquiring the portfolio of association clients formerly managed by Capstone Property Management. First Community Management exclusively manages co-operatives, condominium, townhome and homeowner associations throughout Chicagoland.

Y At Proposalpalooza PLUS, a silent auction combined with an artistic performance by ArtBeat Live raised a total of $11,281.00 and was contributed to Associa Cares.

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“Over the past year I have worked diligently to enhance and expand the association management services we provide. This growth will benefit all of our clients by giving us a more competitive edge and enhancing our bargaining power when negotiating services for our clients” said Michael E. Rutkowski, founder of the firm (in 1998). First Community Management spent the first six months of 2014 integrating Capstone clients and employees and has introduced many service improvements, including web-based management tools, used by managers, board members and homeowners.

Due to the acquisition and steady, annual growth, First Community Management moved its location to a River West loft office space large enough to house existing and new employees. In June, board members, vendors and staff enjoyed an open house at the new office, located at 935 W. Chestnut Street in Chicago. “It was great to see board members interacting with each other, sharing stories and offering advice” said Rutkowski.

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INDUSTRY HAPPENINGS

Diversey Harbor Lakeview Assocation Authorities from the State and City legislatures joined condominium leaders to discuss issues of common interest at the Summer Leadership Conference of the Diversey Harbor Lakeview Association (“Diversey Harbor”).

Chaired by Diversey Harbor’s Executive Director, Gene Fisher, the Conference attracted delegates from the leadership of condominiums in an area stretching from Fullerton Parkway north to Aldine, and from Commonwealth Avenue west to Geneva Terrace.

The General Assembly was represented by a member of Representative Sara Feigenholtz’ staff, and the Chicago City Council was represented by 43rd Ward Alderman, Michele Smith. Additional insights were offered by attending condominium President, Bill O’Leary, who is also President of the Apartment Building Owners and Managers Association (ABOMA).

Legislation Concerns The Conference delegates reaffirmed their strong opposition to Illinois Senate Bill 2664, whose purpose is to benefit special interests by raiding the finances of condo associations.

The Bill would unjustly prevent the full recovery of condo associations’ foreclosure-related costs, inevitably inflicting those costs on unit owners, for an association’s only way to replace the raided revenue will be to increase its assessments. The delegates applauded the associations that are encouraging their members to tell the Governor to veto this threatening legislation.

Another matter of legislative concern was the proposal to create an Office of Condominium Ombudsman, which has been introduced into the General Assembly.

It was viewed by the delegates as a redundant service

Community Advantage

that is already available from reputable sources.

Moreover, the proposal to pay the Office’s costs by levying a tax against condominium associations disregards the fact that increased assessments on condo owners are the only source of funds to pay such a tax, thus taxing condominium owners to pay for its superfluous bureaucracy.

Operating Issues The delegates were enthusiastically appreciative of Representative Feigenholtz’ success in reaching an agreement in which the State Fire Marshall conceded that he will no longer circumvent the General Assembly with unilateral attempts to change fire sprinkler regulations.

In turn, because the initiative was significantly strengthened by more than 8,000 signatures to her petition for a responsible fire policy, Representative Feigenholtz thanked Diversey Harbor for the efforts which generated a major share of those signatures There was also appreciation (but considerably less enthusiasm) when the delegates were informed of Diversey Harbor’s role in bringing public attention to the unexpected downside of the City’s electricity purchase agreement with Integrys Energy Services. Although promoted as a source of less costly electricity, the structure of Integrys’ recent price increase has produced the opposite effect for many condo residents.

Since savings now depend upon usage volumes, large volume users (such as single-family houses) are still expected to see lower electricity bills than ComEd’s former charges. Conversely, many condo residents (who often have much lower power needs) may now pay more for their electricity than they paid ComEd.

Peter Santangelo, President of COMMUNITY ADVANTAGE®, is pleased to announce the addition of a new team member, Mr. Tim Haviland. Tim will be a Relationship Manager-Vice President and is responsible for business development and portfolio management for condominium, homeowner, and townhome association clients throughout the Midwest.

Prior to joining COMMUNITY ADVANTAGE, Mr. Haviland worked as a Vice President in the commercial loan area with a concentration in the association industry. He has over 11 years of experience in banking working with associations and is a past president of CAI-Illinois. He has also served on numerous committees within the CAIIllinois chapter.

Mr. Haviland holds a Bachelor of Science in Mechanical Engineering Technology from Southern Illinois University in Carbondale, Illinois and a Master of Business Administration in Finance and Marketing from the University of Illinois at Chicago.

“Tim brings a vast experience of commercial and association banking knowledge and is a great addition to the COMMUNITY ADVANTAGE team. His years of experience in this industry and his knowledge are extremely valuable. He will contribute to our continued success.” said Santangelo.

Join Us! We’re expanding and welcoming new property managers.

Dickler, Kahn, Slowikowski & Zavell, Ltd.

COMMUNITY MANAGEMENT

~ concentrating in ~

Come grow with us!

Condo & HOA Representation

If you’re interested in joining the ACM team, contact

Corporate • Real Estate • Litigation • Wills Personal Injury

Karl Kulhanek, President

85 W. Algonquin Rd., Ste #420, Arlington Heights, IL 60005

630-620-1133

847-593-5595

karl@acmweb.com

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10.14

CONDO LIFESTYLES

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From the Editor

R

esearch indicates that autumn gets the most votes as people’s favorite season of the year (they don’t ask school children). at its best, fall offers beautiful colors to view, mild temperatures to

enjoy, bountiful harvests and a time to pause and give thanks for all that we have.

CondoLifestyles

®

Y Mike Davids

fall is also the time for budgeting for next year, elections of all type, and finishing up outdoor projects. then, before you know it, we will be barraged with holiday events and activities along with the cold and snow of Winter. hopefully you have put in the necessary effort on your budget(s) and election of your association’s board

oCtobeR 2014 | voLume 18 | NumbeR 3

for next year and are getting your exterior projects finished up. at least this year’s budgeting process should be more pleasant as there are far fewer foreclosures than in the past five years of economic calamity. of course,

editor & Publisher Michael C. Davids

there are still tough decisions to make and having more money doesn’t make the process less important. real estate market conditions continue to improve with increased sales activity, low interest rates for

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

home mortgages, sales price increases and a generally better economic outlook. as one of our articles in this edition details, foreclosure filings are down to pre-recession levels. however, getting caught up from past financial challenges in terms of reserve funding and capital improvement projects as well as renting and/or unit owners as landlords continue to be critical issues for a large number of community associations.

2014 has been a very active year for legislative activity and court decisions. the impact of the laws that have passed and the new case laws that exist is significant. our cover story offers a summary of recently enacted laws along with suggestions on ways you can ensure proper compliance. chicago high rise condominiums have been faced with even more regulations and laws than other community associations. chicago high rise buildings must comply with the chicago’s energy Benchmarking ordinance, exterior facade ordinance as well as the city’s life safety ordinance. our second story is a legal update that discusses the often debated and misunderstood topic of rules and regulations. Whether and to what extent your association can adopt rules is based on what type of an as-

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 5, Downers Grove, IL 60515. 630-932-5551 or 630-202-3006.

sociation it is. this article will help you to not fall victim to certain pit falls and problems in properly adopting

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.

of affairs at their properties.

your rules and regulations. another legal update summarizes the new public acts that recognize the internet and e-mail as permissible forms of communication in official community association business. this edition features the results of a research study on a variety of issues affecting community associations. in general, the survey reveals that association boards & managers are optimistic about the current state Many associations hold their annual meetings and adopt next year’s budget in the fourth quarter of the year. an article on budgeting appears in this edition in our Money Matters column. our regular industry happenings column along with several event highlight photo spreads can also be found in this issue.

State of the Industry Program on December 11 taking time to review important issues and identify those that will require significant attention in the

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 2014. 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.

20

condo lifestyles

coming year is the main purpose of our annual condo lifestyles state of the industry program. economic, legislative and operational issues will again dominate our presentations, discussion and resources that are made available on december 11 at the chicago cultural center. a legal and case law update will be provided and a panel of experts will discuss a variety of key topics facing community associations. We also recognize members of our magazine advisory boards at this program. you can find more information on this event at www.condolifestyles.net or email: mdavids@condolifestyles.net special thanks to the companies, associations and groups that are authorized distributors of condo lifestyles. those of you who are not current subscribers can find subscription information on our website at www.condolifestyles.net. please enjoy the upcoming holiday season. We encourage you to take this opportunity to make your association and your community all it can be. if you have an idea that would benefit other community associations, a success story to share, or some advice on how to avoid a problem or failure, please send us an e-mail (mdavids@condolifestyles.net Y

Michael C. Davids Editor and publisher

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service directory

ACCOUNTANTS

ARCHITECTS/ENGINEERS

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

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

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114

ANNUAL ACCOUNTING SERVICES:

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

Daniel Baigelman, AIA dan@fullcirclearchitects.com capital improvements • reserve studies engineering reports www.fullcirclearchitects.com

www.canteycpa.com

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

J. HERSHEY ARCHITECTURE (847) 549-5900 Evaluations/Bid Repair Specifications/Reserve Studies

www.jhersheyarchitecture.com

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

CONDO CPA (630) 832-2222 EXT 113

investigations and repair documents for: exterior Walls, Windows, roofs, and parking garages condition surveys and reserve studies www.kghpc.com

CONTACT BRAD SCHNEIDER Brad@CondoCPA.com CERTIFIED PUBLIC ACCOUNTANTS

accounting solutions for Management companies & self-Managed associations audit & accounting services income tax reduction & planning

MAXIMA CONSULTANTS CORPORATION (312) 223-8414

CUKIERSKI & KOWAL, LLC (847) 496-7180 a full-service accounting firm speacilizing in the unique needs of homeowners associations.

www.ckwcpa.com

FROST, RUTTENBERG & ROTHBLATT, P.C. (847) 282-6340

www.dicklerlaw.com

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

specializing in accounting services for homeowner associations.

CERTIFIED PUBLIC ACCOUNTANTS

ATTORNEYS

reserve studies & transition and condition assessment reports facade/ roofing / Windows garage evaluations, Water infiltration investigations fire escape/Balcony/porch evaluations, life safety evaluations www.maximaconsultants.com

SUPERIOR RESERVE ENGINEERING AND CONSULTANTS

CERTIFIED PUBLIC ACCOUNTANTS

(888) 688-4560

contact: steve silberman, cpa

www.superiorreserve.com

CODER TAYLOR ASSOCIATES

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000

coder@codertaylor.com

www.waldmaneng.com

ARCHITECTS/ENGINEERS

KEOUGH & MOODY, P.C. (630) 369-2700 legal representation for community associations www.kmlegal.com

LAW OFFICES OF KEAY & COSTELLO (630) 690-6446 pcostello@keaycostello.com www.keaycostello.com

KOVITZ SHIFRIN NESBIT (847) 537-0500 www.ksnlaw.com covenant drafting & enforcement advising & consulting with Boards construction defect litigation collecting delinquent assessments

LEVENFELD PEARLSTEIN, LLC 312-476-7556 howard dakoff / hdakoff@lplegal.com www.lplegal.com

BANKING ALLIANCE ASSOCIATION BANK (815) 342-4228 / (888) 734-4567 full service banking and lending solutions for management companies and associations. cfinck@AllianceAssociationBank.com www.AllianceAssociationBank.com

(847) 382-4100 “We Specialize in Emergency Repairs” architects • research • engineering specifications • reserve studies

For Display or Professional Services Directory Advertising Info, Call (630) 202-3006 No part of the publication may be reproduced whatsoever without written consent from the publisher.

All material herein is copyrighted 2014©.

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BANKING ITASCA BANK & TRUST (630) 773-0350 “together We’ll shape the future” www.itascabank.com

COMMUNITY ADVANTAGE, A WINTRUST COMPANY (847) 304-5940 loans, reserve investments & lock Box services www.communityadvantage.com

BUILDING RESTORATIONS

CONCRETE RAISING

HOLTON BROTHERS, INC.

VIKING CONCRETE RAISING & REPAIR (847) 808-7400

Masonry repair services, tuckpointing, caulking and concrete restoration

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

LS CONTRACTING GROUP, INC. T (773) 279-1122 f (773) 279-1133 contact: tom laird tlaird@lscontrtacting.com www.lscontracting.com

MUTUAL OF OMAHA BANK (866) 800-4656

ATJ'S HOME IMPROVEMENTS (630) 432-3238 www.atjshomeimprovement.com

DOORS 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

BUILDING RESTORATIONS

raising settled concrete throughout chicagoland wwwWeCanRaiseIt.com

QUALITY RESTORATIONS (630) 595-0990

ELEVATORS/CONSULTANTS SMART ELEVATORS CO. (630) 544-6829

SITE MAINTENANCE, INC. (847) 697-1077

www.smartelevatorsco.com smartin@smartelevatorsco.com

www.sitemaintinc.com

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

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

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

FM&J ASPHALT PAVING, INC. (708) 544-6700 / (630) 279-0303 concrete & asphalt paving pavers & color stamping drainage systems & sewer repairs sealcoating, crack filling & striping www.fmjasphalt.com

concrete flatwork specialists | asphalt paving curbs & driveways | sidewalks footings & foundations colored concrete | stamped concrete aggregate finish concrete Parking Structure Maintenance & Repair Contact Tom Frye

GOLF CONSTRUCTION (219) 933-3420

OCEANS ENERGY (312) 870-0580 info@oceanscc.com www.oceanscc.com

ENERGY USE/BENCHMARKING 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

www.golfconstruction.net

condo lifestyles

simplifying vertical transportation Contact: Max Molinaro www.suburbanelevator.com

ENERGY GAS & ELECTRIC

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

www.hsshardsurfacesolutions.com

22

SUBURBAN ELEVATOR CO. 847-743-6200

CONCRETE

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service directory

FHA/FANNIE MAE CONDOMINIUM PROJECT APPROVALS

FIRE/FLOOD RESTORATION

HVAC

CONDO APPROVAL PROFESSIONALS LLC (847) 293-2962

GENESIS CONSTRUCTION, INC. (847) 895-4422

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

www.genesisconstruction.com

contact: Steve Stenger

24 Hour Service hvac • industrial refrigeration service/Maintenance • systems integration energy Management • electrical process piping • plumbing www.amsmechanicalsystems.com

www.condo-approval.com

QCI RESTORATION (847) 891-2929 (866) 832-6724

FIRE SAFETY & PROTECTION

www.QCIrestoration.com

CONTECH MSI CO. (847) 483-3803 fire detection & signaling systems fire alarm systems chicago life safety evaluation solutions security systems/cctv card access systems www.contechco.com

THE RESTORATION GROUP, LLC (630) 870-0658

serving the tri-state area since 1970 Contact: Jackie Loftis * jloftis@wsmech.com www.wsmech.com

www.trgrestore.com

FITNESS SOLUTIONS DIRECT FITNESS SOLUTIONS (847) 680-9300

NORTHERN ILLINOIS FIRE SPRINKLER ADVISORY BOARD (NIFSAB) (866) 2NIFSAB (866-264-3722) 708-403-4468 www.firesprinklerassoc.org

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

cgallagher@directfitnesssolutions.com www.directfitnesssolutions.com

GARBAGE CHUTE CLEANING BROUWER BROS. SERVICES (800) CLEAN54

SIMPLEX GRINNELL (630) 948-1235

(708) 396-1477 www.bbsteamatic.com

fire alarm / sprinkler systems fire pumps / extinguishers fire panel Monitoring installation / testing / Maintenance 24/7 Service: (630) 948-1200 www.simplexgrinnell.com

OCEANS ENERGY (312) 870-0580

H V A C CLEANING BROUWER BROS. SERVICES (800) CLEAN54

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

info@oceansenergy.com www.oceansenergy.com

property casualty • employee Benefits Workers compensation www.HollingerInsurance.com

HVAC

www.emcortmi.com

Mechanical - plumbing Building automation - service www.ymimechanical.com

(708) 396-1477 www.bbsteamatic.com

GREEN SUSTAINABILITY SOLUTIONS

EMCOR SERVICES TEAM MECHANICAL fire protection division (847) 229-7600

YMI MECHANICAL, INC. (847) 258-4650

ALTHOFF INDUSTRIES (312) 332-5700

MESIROW FINANCIAL (312) 595-8135

BROUWER BROS. SERVICES (800) CLEAN54

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

nancy ayers

all types of environmental cleaning.

(708) 396-1477 | www.bbsteamatic.com

EMCOR SERVICES TEAM MECHANICAL (847) 229-7600

OCEANS ADVISORS (312) 508-3032

FIRE/FLOOD RESTORATION

info@oceansadvisors.com www.oceansadvisors.com

www.emcortmi.com

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INTERIOR DESIGN

FAMILY PRIDE LLC (630) 827-6362

CANDY SCOTT DESIGNS (630) 301-2410

LAWN CARE

DJR CLEANING ENTERPRISES (630) 893-0757

SPRING-GREEN LAWN CARE (800) 830-5914

“green” Janitorial & sanitizing services for hospitality businesses, health care providers and commercial, industrial and multi-unit residential buildings. www.djrcleaning.com

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

www.atjshomeimprovement.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

www.spring-green.com

MAILBOXES

LANDSCAPE CONTRACTORS

professional landscaping and snow removal www.acresgroup.com

ATJ'S HOME IMPROVEMENTS (630) 432-3238

contact paul anzell paula@hughesenterprises.net www.familypridelaundries.com

JANITORIAL SERVICES

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

PAINTERS

LAUNDRY SERVICES & EQUIPMENT

MAILBOX WORKS (630) 355-9989 (773) 528-3111 large variety of commercial and residential Mailboxes intercoms and tele-entry address signage & engraved nameplates installation services since 1989

www.MailboxWorks.com

NON PROFIT/EDUCATION

professional commercial grade custom Quality painting–decorating–Wallcovering interior -exterior / fully insured 25 years experience Contact Mike: ddimidwest@gmail.com

ABOMA1@aol.com www.aboma.com

www.BalancedEnvironmentsInc.com

ACTHA (312) 987-1906

ILT VIGNOCCHI (847) 487-5200

Association of Condominium, Townhouse and Homeowners Associations

www.iltvignocchi.com

actha@actha.org | www.actha.org

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

COMMUNITY ASSOCIATION INSTITUTE OF ILLINOIS (847) 301-7505

www.landscapeconcepts.com

interior & exterior painting Wallcoverings • decorating • remodeling drywall repair • decks & staining tile installation • Metal & iron painting www.certacommercial.com tivanov@certapro.com

DDI DECORATING & DESIGN INSTALLATIONS 773-790-6669

ABOMA (312) 902-2266

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

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

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

info@cai-illinois.org | www.cai-illinois.org

PARKING GARAGE CLEANING

PAINTERS

EXTREME POWER CLEANING INC. (630) 532-0345

SEBERT LANDSCAPING, INC. (630) 497-1000

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

www.sebert.com

www.ExtremePowerCleaning.com info@extremepowercleaning.com

www.aaapaintco.com

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service directory

PAVING

PROPERTY MANAGEMENT

PROPERTY MANAGEMENT

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

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

DK CONDO (312) 346-8600

professionals helping volunteers.

Contact Tom Taylor

www.duboispaving.com

info@aplusmanagers.com / www.aplusmanagers.com

www.dkcondo.com

FM&J ASPHALT PAVING, INC. (708) 544-6700 / (630) 279-0303

ACM COMMUNITY MANAGEMENT (630) 620-1133

concrete & asphalt paving pavers & color stamping drainage systems & sewer repairs sealcoating, crack filling & striping www.fmjasphalt.com

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

Contact Tom Skweres

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

www.acmweb.com

ADVOCATE PROPERTY MANAGEMENT 630-748-8310

FIRST COMMUNITY MANAGEMENT (312) 829-8900

www.advocatepm.com

www.condomanagement.com

ALMA PROPERTY MANAGEMENT (847) 517-4400

FIRSTSERVICE RESIDENTIAL (312) 335-1950

Contact Tom Frye

www.hsshardsurfacesolutions.com

PEST CONTROL ALL-OVER PEST SOLUTIONS (773) 697-1100 Bed Bug specialists. results guaranteed! www.all-overpest.com

www.almapropertymanagement.com

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

CARUSO MANAGEMENT GROUP, INC.

www.smithereen.com

residential & coMMercial

(630) 717-7188

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

LIFELINE PLUMBING 847-468-0069 plumbing - heating & air conditioning Water heaters - sewer cleaning & repair hot Water drain Jetting www.INEEDLIFELINE.com

Elena.Lugo@fsresidential.com www.fsresidential.com

G&D PROPERTY MANAGEMENT (630) 812-6400

SMITHEREEN PEST MANAGEMENT SERVICES (847) 647-0010 / (800) 336-3500

PLUMBING

Contact Asa Sherwood or Elena Lugo

www.carusomanagementgroup.com

www.gd-pm.com

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

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

LEGUM & NORMAN MIDWEST (312) 944-2611

MORE LIVING. LESS WORRYING.

www.lnchicago.com

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

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

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

PROPERTY SPECIALISTS INC. (847) 806-6121 ROLLING MEADOWS OFFICE

(630) 633-5450 WOODRIDGE OFFICE

www.psimanagement.net

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condo lifestyles

PROPERTY MANAGEMENT SUDLER PROPERTY MANAGEMENT (312) 751-0900 2014 IREM Management Company of the Year www.sudlerchicago.com

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

RESERVE STUDIES

ROOFING

RESERVE ADVISORS, INC.

CSR ROOFING CONTRACTORS (708) 848-9119

reserve studies & transition defect studies conducted by professional engineers enhanced report / Most customized studies www.reserveadvisors.com long-term thinking. everyday commitment.

(888) 688-4560 www.superiorreserve.com

for all your property needs www.werkmanagement.com

ROOFING

ELLIOTT & ASSOCIATES (847) 298-8300

www.sitemaintinc.com

SECURITY SERVICES

www.KSNLaw.com

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

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

www.admiralsecuritychicago.com

roofing • siding • Windows • gutters Maintenance • capital Budget projects a+ BBB rating www.abc-usa.com

GUARDIAN SECURITY SERVICES (708) 385-3300

REMODELING/REPAIRS MI CONSTRUCTION AND ROOFING (630) 241-0001

S&D ROOFING SERVICE (630) 279-6600

SITE MAINTENANCE, INC. (847) 697-1077

established 1965 Maintenance & repairs roofing/sheet Metal/tuckpointing www.activeroofing.com

KSN TAX (855) 837-0500

www.wvproptax.com

We’re here When you need us! www.protoproofing.com

100,000 roofs installed TEAR OFFS • SHINGLES • FLAT ROOFS our experience & technical know-how gets the job done right the first time!

Serving the area since 1963 www.sdroofing.com sales@sdroofing.com

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

www.elliottlaw.com

WORSEK & VIHON LLP (312) 368-0091

PROHTOP ROOFING (847) 559-9119

SUPERIOR RESERVE ENGINEERING AND CONSULTANTS

WERK MANAGEMENT (630) 241-0001

REAL ESTATE TAX ATTORNEY

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

(844) 570-9886

ATJ'S HOME IMPROVEMENTS (630) 432-3238

providing chicagoland’s finest door staff and security officers since 1975 www.guardiansecurityinc.com

www.atjshomeimprovement.com

PREMIER SECURITY (773) 867-8813

www.mancioneinc.com

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

www.premiersecuritycorp.com

www.lakeroof.com

SECURATEX (630) 317-8980 ”Keeping tenants happy” www.securatex.com

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service directory

TREE CARE

WASTE SERVICES

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

LAKESHORE RECYCLING SYSTEMS (773) 685-8811

SIDING / RENOVATIONS ACCURATE EXTERIORS (630) 830-9191

certified arborists & certified tree care safety professionals www.acresgroup.com

ATJ'S HOME IMPROVEMENTS (630) 432-3238

BARR TREECARE 815-521-8055

www.atjshomeimprovement.com

www.barrtreecare.com

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

tree pruning, tree removal, cable Bracing, plant health care, tree planting & transplanting www.kramertree.com

www.lakeroof.com

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667) Window and related Masonry interior & exterior doors | siding & gutters www.woodlandwindows.com

TV-BULK CABLE & SATELLITE

WINDOW WALL SERVICES, INC. THE CAULKING COMPANY (708) 361-9333

RCN (312) 955-2322

www.windowwallservices.com All Types of Window Restoration Weather stripping / hinges handles and adjustments Curtain Wall Repair Specialists

XFINITY COMMUNITIES 1 (800) XFINITY

ATJ'S HOME IMPROVEMENTS (630) 432-3238

www.comcast.com/xfinitycommunities

www.atjshomeimprovement.com

Window and related Masonry interior & exterior doors | siding & gutters www.woodlandwindows.com

WINDOW RESTORATION

rcnchicagoapts@rcn.net www.rcn.com

SNOW REMOVAL

WOODLAND WINDOWS & DOORS (630) 529-DOOR (3667) Window and related Masonry interior & exterior doors | siding & gutters www.woodlandwindows.com

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

Are you a Community Association Board Member, Homeowner or Property Manager?

Educational Seminars ~Educational Seminars ~Legal Updates ~Service Providers

Contact Tom Frye

www.hsshardsurfacesolutions.com

THE WINTER WERKS (630) 241-0001 www.mancioneinc.com

CAI-Illinois Conference & Exposition February 6 – February 7, 2015 Donald E. Stephens Convention Center, Rosemont IL

SWIMMING POOLS SPMS (630) 692-1500 heaters pumps • repairs • chemicals pool Maintenance • complete Water analysis pool guards, inc. ross@spmspools.com

WINDOWS/REPLACEMENTS

KRAMER TREE SPECIALISTS, INC. (630) 293-5444

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

www.LakeshoreRecyclingSystems.com

Join us for this opportunity to gain valuable information for your condominium, townhome or homeowner association. cai-illinois.org

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condo lifestyles

MCD Golf Invitational July 18, 2014 • Eaglewood Resort, Itasca, IL

Y Shown here is Tony Briskovic of Chicagoland Y Pictured here (from L to R) Tom Hamilton - Draper and Kramer, Inc., Max Molinaro - Suburban Elevators, Michael C. Davids - MCD Media, Jackie Loftis - West Side Mechanical, John Bieg dk living, Tim Draper - Draper and Kramer, Inc.

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Community Management. Tony scored a Hole -in One on the Par 3 Hole # 13 and won a 3 Day Spa Vacation in Las Vegas, NV. Briskovic's Hole-in-One was the first in the 19 year history of the MCD Golf Invitational.

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All material herein is copyrighted 2014Š.

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event highlights

Y Shown here is the first place foursome in the MCD Golf Tournament. Pictrured above is L to R) Stan Niketic, Rudy Kazastanovic. Tony Briskovic and Mitch Vucic - Chicagoland Community Management.

Y Shown here is a group players in the MCD Bocce Tourney.

Y Pictured above (from L to R) is Jim Kuna, Bob Meyer & Asa Sherwood FirstService Residential, Dawn Moody -Keough & Moody, P.C., Kevin Bobb Building Reserves, Craig Finck -Alliance Association Financial, and Dan Haumann - Advocate Property Management.

Y Shown here are the winners of the Bocce Tourney. Pictured above is Sal Sciacca & Erica Horndasch (1st), Access Media3 - Scott Lindgren & Kevin Wilhite (2nd) and Lindsey Daehnke & Ron Miuldoon (3rd).

S & D ROOFING SERVICE, INC. Over 250,000 Homes Roofed Since 1963 Specializing in Single & Multi-Family:

tear offs shingles flat roofs

gutters - siding soffit & fascia repairs

The Roofing Company That Delivers Superior Service Time and Time Again.

S&D IS A LICENSED FIRESTONE RED SHIELD CONTRACTOR

630-279-6600 www.sdroofing.com

Complete Roofing Service•Bonded & Insured OWENS CORNING Platinum Preferred Contractor

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

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M a n a g e M e n t ta l K s

A

By Salvatore Sciacca, Chicago Property Services

Top 10 Do’s & Don’ts of Budget Approval Believe it or not, it’s already time to start planning, preparing and approving the 2015 budget for your condo, townhome or hoa community association. this process is actually one of the most critical elements of creating and sustaining a healthy and fiscally sound community association.

s a result, i’d like to share the top do’s and dont’s to take into consideration before approving the 2015 budget.

10. DO take into account historical spending when planning your new budget. But also take into consideration projected increases in utilities that may be higher than the norm.

9. DO take into account the possibility of line item overages such as snow removal, drywall repairs and other building repairs line items. last year, most budgets ran over budget in chicago due to high snow removal expenses and due to the freezing temperatures that caused a dramatic number of pipe bursts. and this year may be an even worse winter.

8. DO integrate your 1 year operational budget with a 5 year capital spending plan (and/or a reserve study). this will help ensure that your assessments are sufficient enough to properly build future reserves to pay for necessary capital projects.

7. DON’T wait until the last minute to start planning your 2015 budget. start today and ensure it is approved by end of november at the very latest.

6. DO remember that the operating budget is designed to pay for the day to day expenses and fund capital projects. ideally, as a rough rule of thumb, you should save at least 10% of the operating income into reserves.

5. DO pay extra close attention to the possibility of uncollected assessments. in fact, it is recommended to include a line item on the expense side to write off uncollected income such as assessments.

4. DO raise assessments as necessary and appropriate in order to minimize the possibility of future special assessments. the board of directors has a fiduciary obligation to maintain the common elements and the association should maintain healthy reserves in order to proactively address maintenance and capital repair/replacement projects.

3. DO treat the budgeting process as one of the Most important actions and obligations of the board and especially of the treasurer.

2. DO involve the homeowners in the budget approval meeting. don’t simply ram a new budget through at a board meeting. it truly is critical to engage the homeowners in the budgeting process.

1. DO create a capital planning committee if your association does not already have one. it may be too late for the 2015 budget process but capital expenditures are the most expensive and it is critical that the homeowners have a say in the large scale capital expenditures of the community association.

SUMMARY Budgeting for community associations is a critical function. the board of directors is obligated to ensure that the association has the proper level of funds to ensure that both day to day expenses as well as capital expenses are affordable by the association. in addition, the board should strive to minimize the amounts and number of special assessments to pay for large scale expenses. this in turn will help maximize the roi of the homeowners that have invested in the association. Y

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event highlights

ABOMA Roast & Toast for Bob Wiggs

Y Bob Wiggs with 2nd Ward Alderman and

Y Bob Wiggs received a standing ovation from over 200 well wishers at the event.

Chicago Mayoral Candidate Robert Fioretti

Y Pictured here is Bob & Christy Wiggs with their

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

All material herein is copyrighted 2014Š.

Y Shown here is Bob Wiggs with a group of Industry partners and ABOMA members.

Y Shown here is Bob Wiggs with the ABOMA

family members who were present at the event.

September 9, 2014 East Bank Club, Chicago, Illinois

Events Committee. ABOMA's next event is the ABOMA Holiday Luncheon on December 5th.

For more information visit www.aboma.com.

10.14

Y Pictured here with Bob Wiggs are Tony & Christina Briskovic - Chicagoland Community Management Bill O'Leary - dk condo & ABOMA President, and Michael Davids- MCD Media.

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2014 CONDOLIFESTYLES STATE OF THE INDUSTRY SEMINAR »

11:00AM - 3:00PM December 11, 2014 Chicago Cultural Center

78 E. Washington St., Chicago IL 5th Floor Washington & Garland Rooms

For more information Call 630-202-3006 Visit our website at www.condolifestyles.net ...Or e-mail us at mdavids@condolifestyles.net

Luncheon & Keynote Speakers:

TOPICS INCLUDE:

Gabriella Comstock - Keough & Moody, P.C. and Howard S. Dakoff - Levenfeld Pearlstein LLC

• State of the Industry Panel Discussion, Q & A

Followed by Seminar Sessions

• Legal and Case Law Updates (including manager licensing, regulations on condo sales after foreclosure, and more) • Impact of Palm II Court Case

®

Chicagoland

&

• Property Tax Appeals • Chicago Ordinance Update (Life Safety, Bed Bugs & more) • Environmental issues including Energy Benchmarking and Bulk Purchasing of Natural Gas & Electric • Managing Renters & Advice for Landlords

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

All material herein is copyrighted 2014©.

CondoLifestyles Buildings Environments

07.14

2014 Committee: Tony BriskovicChicagoland Community Management Elena Lugo FirstService Residential Tairre Dever-Sutton -Tairre Management Mydraine Janvier ALMA Property Management Mickey Tierney & Natalie Drapac Community Specialists Diane White - The Habitat Company Tom Skweres ACM Community Management

CONDO LIFESTYLES

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condo lifestyles

By Michael C. Davids

Foreclosure Filings Down to Pre-Recession Levels new foreclosure filings, which are the first step in the foreclosure process, dropped to the lowest level since 2007 following months of sustained yearover-year declines, data from Woodstock institute show.

F

oreclosure filings in the Chicago six county region decreased by nearly 40 percent from the first half of 2013 to the first half of 2014. Foreclosure auctions, which signify the completion of the foreclosure process, declined at a less dramatic pace, dropping just 16.7 percent over the same time period. “the decreasing number of new properties entering the foreclosure pipeline means

policymakers will need to adjust the tools they are using to address the foreclosure crisis and its aftermath,” said Spencer Cowan, vice president of Woodstock Institute. “there are still thousands of homeowners entering the foreclosure process who will need guidance on how to avoid losing their homes whenever possible, but there are also tens of thousands more who lost their homes and who are strug-

gling to rebuild their lives. vacant and blighted homes continue to plague neighborhoods, particularly low-wealth neighborhoods and communities of color.” “the foreclosure crisis continues to impact homeowners who lost their homes, their neighbors, and their communities,” said Cowan. “We need sustained support for policy interventions that can limit the ongoing negative impacts of foreclosures.” the data on trends in Chicago region foreclosure filings and auctions in the first half of 2014 show that: Foreclosure filings dropped substantially

We Manage Your Property as if it was Our Own.™ You shouldn’t accept anything less than

excellence, attention to detail, experience and a commitment level unsurpassed by any other firm.

312 729 1300 www.Chicagoland-inc.com 111 E. Wacker Drive | Suite 1412 | Chicago, IL 60601-4501

| ACCOUNTING | ADMINISTRATION | BOOKKEEPING | CONSULTING | MANAGEMENT |

| ACCOUNTING | ADMINISTRATION | BOOKKEEPING | CONSULTING | MANAGEMENT |

| ACCOUNTING | ADMINISTRATION | BOOKKEEPING | CONSULTING | MANAGEMENT |

| ACCOUNTING | ADMINISTRATION | BOOKKEEPING | CONSULTING | MANAGEMENT | 34

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M o n e y M at t e r s

"There are still thousands of homeowners entering the foreclosure process who will need guidance on how to avoid losing their homes whenever possible, but there are also tens of thousands more who lost their homes and who are struggling to rebuild their lives."

municipalities that experienced large decreases in foreclosure auctions include Skokie (down 43.9 percent), Round Lake beach (down 43.8 percent), and Rolling meadows (down 42.7 percent). municipalities that experienced increases in foreclosure auctions include Joliet (up 59.3 percent), Romeoville (up 37.5 percent), and bolingbrook (up 32.5 percent).

In the City of Chicago, foreclosure auctions declined by 20.6 percent. Community

areas that experienced large decreases in foreclosure auctions include east Garfield Park (down 52.5 percent), North Lawndale (down 51.2 percent), and Rogers Park (down 50.8 percent). Community areas that experienced increases in foreclosure auctions include Ashburn (up 29.8 percent), Washington Heights (up 23.8 percent), and Auburn Gresham (up 20.9 percent). Y

SPENCER COWAN OF WOODSTOCK INSTITUTE

from the first half of 2013 to the first half of 2014. the number of foreclosure filings in the Chicago six county region fell by 37.7 percent from 22,342 filings in the first half of 2013 to 13,916 filings in the first half of 2014.

Sub-regions that experienced large decreases in foreclosure filings include DuPage County (down 48.2 percent), Will County (down 47.7 percent), and North Cook County (down 44.6 percent). municipalities with particularly large decreases with foreclosure filings include Niles (down 61.9 percent), elmhurst (down 61.5 percent) and Crest Hill (down 59.1 percent).

In the City of Chicago, foreclosure filings declined by 34.4 percent. Community areas with large declines include brighton Park (down 56.2 percent), the Near West Side (down 54.4 percent), and West Lawn (down 53.3 percent).

Foreclosure auctions declined more gradually than foreclosure filings. the number of foreclosure auctions in the Chicago six county region fell by 16.7 percent from 16,332 auctions in the first half of 2013 to 13,602 auctions in the first half of 2014.

Sub-regions that experienced large decreases in foreclosure auctions include DuPage County (down 28 percent), Northwest Cook County (down 26.9 percent), and West Cook County (down 25 percent). Auctions in Will County increased by 35.6 percent, making it the only sub-region to experience an increase in foreclosure auctions.

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condo lifestyles

By: Ryan H. Shpritz, Kovitz Shifrin Nesbit

Technology Acknowledged, Constraints Exist do you remember when you used to mail letters? Written conversations lasted for weeks. then the fax machine was brought into the world, and conversations shortened from weeks to days.

T

hen, in the mid to late 1990’s, the internet exploded and email communication was born. today, conversations are instantaneous and business is transacted in a matter of seconds. Good technology makes life more efficient and convenient.

Inconvenience Causing Decline In Volunteers In the Community Association world, serving on the board of Directors is a volunteer position where owners give their free time to help run the Association. time is

valuable. Convenience is important. Yet, despite significant technological advances, Community Association laws have remained consistently inconvenient in the administration of an Association. the requirement to inform owners of upcoming meetings must be done via delivery or mail. board elections must be voted on in person. the recent Illinois Appellate Court case, Palm v. 2800 Lake Shore Drive Condominium Association held that even discussing board business (where there is a quorum of the board present), is not permissible unless that conversation is

done at a duly noticed open meeting. these inconveniences in the administration of an Association are a contributing factor to the decline of participation and service on boards of Directors.

Although technology has significantly evolved and the internet and email have been around for over 20 years, the Illinois Condominium Property Act has not recognized that computers even exist… until now.

E-Mail is Permissible for CA Communication Public Acts 098-0735 and 098-1042 both shall become law on January 1, 2015. these Public Acts recognize the existence of the internet and email as a form of permissible communication. both the Illinois Condo-

A Total Building Maintenance Company B U I L D I N G FACADES, PARKING GARAGES & PLAZA RENOVATIONS Malibu East Condominium Association

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ENERGY USE BENCHMARKIN G COMPLIANCE ......

* jloftis@wsmech.com

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l e g a l u p d at e

It is important to note that although minium Property Act and corresponding provisions of the Common Interest Community Act are amended to provide the board with the authority to adopt Rules and Regulations that specifically permit the electronic delivery of notices and other communications required under the Act, after the owner provides written authorization. Notice of board and owner meetings may be sent via email, as opposed to mail or personal delivery. It is important to note that although these new laws now allow an Association to create rules providing for electronic notice to owners, owners must affirmatively authorize electronic delivery of notices and those owners that do not authorize same shall receive notification the old-fashioned way.

Further, the board can adopt rules that allow an owner who consents to electronic notice to designate an electronic address as their mode of legal receipt of Association communi-

ments or participating in cations. Adopting these these new laws now allow an Associan election of the Associarules would permit the board authority to deliver ation to create rules providing for tion can be done via email or ‘acceptable technologto owners via email: electronic notice to owners, owners ical means’ (defined to notices of meetings, distriinclude without limitabution of budgets or yearmust affirmatively authorize election, electronic transmisend compilations, and copies of condominium tronic delivery of notices and those sion over the Internet or other network, whether by instruments, i.e. amendowners that do not authorize same direct connection, ments or rules and regulaintranet, telecopier, or tions. An Association with shall receive notification the oldelectronic mail). Simiunanimous email particilarly, submitting an elecpation from its owners can fashioned way. tronic ballot or acceptable save unnecessary expenses technological means are now considered valid on copying and postage, as well as allow the for the purpose of establishing quorum. board to communicate with its owners instantaneously when necessary. In addition, these Use of Technology Section in ICPA Public Acts now allow the board of an AssociaIn fact, there is an entirely new Section to tion to adopt rules that permit a vote by electhe Illinois Condominium Property Act, Sectronic transmission, such that voting on amend-

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condo lifestyles

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tion 18.8, entitled, use of technology. this Section announces that the law has begun to catch up to technology, and that technology does exist. Specifically, this Section states that any notice (not just meeting notices) required to be sent or received under any condominium instrument or requirement of the Act may be done via technology that is generally available at that time. this means that the law will now keep up with any advance in technology that may be developed in the future

that can be used in relation to a notice that is required to be sent, received, signed, voted upon, consented to or approved.

In addition to allowing for the transmission of electronic notices, under the new laws, technology such as e-signatures or digital signatures are now recognized and are permitted and can substitute for handwritten signatures on any number of Association documents, such as architectural approval forms, amendment approvals, violation report submissions,

Although board members now have the ability to communicate and vote via electronic means, board members must continue to follow the law regarding the transaction of association business at an open board meeting. proxies, acknowledgement of receipt of Rules, execution of Lease Riders, unit owner surveys, change of information forms, etc.. the law even goes so far as to state that a verifiable electronic signature can substitute for any requirement that a signature be acknowledged before a notary public. these new laws are in fact, a great step forward and dramatically assist in the convenience and efficiency of administering an Association.

Shaping the future!

Constraints Exist as Outlined in Palm II Case

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Despite the significant advancement that these new laws now offer community associations in allowing board members and owners to communicate and transact business in the association, board members should continue to be mindful of the constraints that exist in the Acts as illustrated in the Palm case.

Although board members now have the ability to communicate and vote via electronic means, board members must continue to follow the law regarding the transaction of association business at an open board meeting. Despite the efficiency now provided by these expansive forward-thinking laws, Association board members must continue to carefully tread within the constraints set forth in the Acts, as outlined in Palm. Y

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IS YOUR FITNESS CENTER LIVING UP TO YOUR RESIDENTS’ EXPECTATIONS? 6IWIEVGL WLS[W XLI QSWX ETTVIGMEXIH EWTIGXW SJ E TSTYPEV EQIRMX] MW ]SYV MR LSYWI ½XRIWW JEGMPMX] 'VIEXMRK E ±½XRIWW GPYF² I\TIVMIRGI JSV ]SYV VIWMHIRXW [MPP LIPT EXXVEGX ERH VIXEMR XLIQ ERH HIZIPST XLI WSGMEP GSQQYRMX] SJ ]SYV TVSTIVX] 6IWMHIRXW EVI [MPPMRK XS TE] QSVI MR VIRX ERH KIX VMH SJ XLIMV K]Q QIQFIVWLMT ;I TVSZMHI GYWXSQM^IH ½XRIWW WSPYXMSRW XS ]SYV TVSTIVX] STRIBUTE WE PROUDLY DI ERH VIWMHIRXW´ RIIHW ION PRECOR ˆ FREEMOT INN HW SC ˆ ER AST STAIRM SS ˆ TAG INTERACTIVE FITNE ON REQUEST EVERLAST ˆ FITNESS

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MCD Showcases the Races |

Y Shown here is a group of guests watching a race sponsored by Westside Mechanical Group.

Y Mydraine Janvier & Diana Larson - ALMA Property Management, Dave Bendoff - Kovitz Shifrin Nesbit, and Marshall Dickler - Dickler Kahn Slowikowski & Zavelle.

40

condo lifestyles

Y Professor U Chrissy Bialek -Arlington

Y Chris Bruno - Kass Management, Ralph Pfeiffer -

International Racecourse, Patricia Bialek FirstService Residential, Michael Davids-MCD Media, Cathy Ryan - Property Specialists, Inc.

EMCOR Services Team Mechanical, Michael Rutkowski - First Community Management, Chris Wibek - EMCOR Services Team Mechanical.

Y Amauris Ortiz - Secuatex, Josh Bowman -

Y Shown here is a group of guests on a tour of the

Transproperties Management, and Bill Heiman Securatex.

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August 28, 2014 Arlington International Racecourse

paddock area just before the race sponsored by XFINITY Communities.

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All material herein is copyrighted 2014Š.

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McClurg Court Center residents are protected with fire sprinklers after building owners chose to retrofit.

After purchasing the McClurg Court Center twin towers, RMK Management Corporation began a six-month project to modernize the building’s life-safety systems. Working with United States Alliance Fire Protection, a fire sprinkler system was installed, providing the maximum fire safety protection for 1,080 residential units as well as occupants in the common areas and commercial spaces.

Although Chicago’s fire sprinkler ordinance only requires Life Safety Evaluations for residential buildings, the National Fire Protection Association (NFPA) Life Safety Code 101 (2000 Edition), which has been adopted by the Illinois State Fire Marshal’s Office, requires existing high-rise buildings in excess of 75 feet in height to be equipped with fire sprinklers or an engineered life-safety system.

RMK Management should be commended for voluntarily choosing to retrofit McClurg Court Center with fire sprinklers for the safety of the property, its residents and responding Chicago police and firefighters.

With fire sprinklers, McClurg Court Center provides the maximum fire safety protection for 1,080 residential units.

The Fire Department’s Ladder Reaches 10 Floors.

You Live on the 23rd.

A HIGH-RISE WITH FIRE SPRINKLERS IS THE ONLY PLACE TO LIVE HighRiseLifeSafety.com

HighRiseLifeSafety.com

NFPA.org

©2014 Northern Illinois Fire Sprinkler Advisory Board. All rights reserved. A not-for-profit organization.

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www.comcast.com/xfinitycommunities