CondoLifestyles

JANUARY 2018 | VOLUME 21 | NUMBER 4

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

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ES FO R HO T TO PI CS , TR EN DS & IS SU

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2017 CASE LAW & LEGISLATIVE UPDATE FOR COMMUNITY ASSOCIATIONS

CO MM UN IT Y AS SO CI AT IO NS

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New Laws and Court Decisions Answer Some Questions and Raise More

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table of contents COVER STORY

03

Condo Lifestyles State of the Industry Report...

Hot Topics, Trends & Issues for Community Associations

By Pamela Dittmer McKuen

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

13 New Laws & Court Decisions Answer Some Questions & Raise More...

State-of-the-Industry Legal Update

By Pamela Dittmer McKuen EVENT HIGHLIGHTS

16 Condo Lifestyles State of the Industry

18 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo 22 From the Editor 23 Directory Advertisements L E G A L U P D AT E

30 2017 Case Law and Legislative Update for Community Associations

By Gabriella Comstock, Keough & Moody, P.C.

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state of the industry

by Pamela Dittmer McKuen

report*2017

T

he 2017 Condo Lifestyles State-of-theIndustry brought together an energetic group of association professionals, homeowners and volunteers for an enlightening program of education, networking and camaraderie. Now in its 22nd year, the event is presented by MCD Media, publisher of Condo Lifestyles and Buildings & Environments magazines and websites.

HO T TO PI CS , TR EN DS & IS SU

ES FO R CO MM UN IT Y AS SO CI

The recent State-of-the-Industry took place at the historic Chicago Cultural Center on Thursday, December 7. Information tables and vendor exhibits greeted attendees and provided expertise on topics such as tax appeals, fire protection and life safety, bulk energy purchasing, window and door replacement, community policing and legal issues.

After a catered buffet lunch, the welcome message and opening remarks were delivered

by Michael C. Davids, president and founder of

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AT IO NS

MCD Media. He formally opened the program by thanking attendees, event organizers, media guests and MCD Media advisory board members for their support and participation. Special recognition was given to the event sponsors as listed elsewhere in this publication.

“Information exchange and relationshipbuilding are the two primary pillars upon which MCD was built and continues to operate,” Davids said. “Thank you for taking time to be with us today.”

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[ (LotR) Mike Naponelli - Klein and Hoffman, Ian Novak - Draper and Kramer, Inc., Pete Santangelo Community Advantage, Brian Butler - FirstService Residential, Matt Panush -Worsek & Vihon.

CONDO LIFESTYLES

LEGAL UPDATE Once again, association attorney Gabriella Comstock of Keough & Moody, P.C., in Naperville and Chicago presented an update on significant court decisions during the past year and legislative changes that will impact associations in the coming year.

Introducing the session, Davids remarked how legislative and government issues are a hallmark of the State-of-theIndustry program. For the current year, much of the legislation enacted consisted of changes or modifications to the Illinois Condominium Property Act and the Common Interest Community Association Act, he noted.

“These are two of our core legal documents, and the key places we look to for guidance in running our associations,” he said.

“The general consensus is most of the changes are positive and good for the industry with one notable exception being Section 19.1 of the ICPA. Some were even practical. We could say 2017 was a year of back to basics in terms of community association legislation.”

(Comstock’s presentation is reported in a

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separate article in this issue.)

PANEL DISCUSSION: HOT TOPICS, TRENDS AND CHALLENGES Another tradition of the seminar program is the panel discussion during which leading professionals offer their insights and views on the most pertinent hot topics, trends and challenges facing practitioners, board members and associations today and in the coming year. The panel was introduced and moderated by Natalie Drapac, building manager at 900/910 Lakeshore Drive Condominium Associations for Community Specialists in Chicago.

The 2017 panelists were: Brian Butler, vice president of property management, FirstService Residential of Illinois; Matthew Panush, senior analyst at Worsek and Vihon; Michael Bonick, architect and vice president at Kellermeyer Godfryt Hart Architects and Engineers;

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Howard Dakoff, attorney, Levenfeld Pearlstein, LLC; Mike Naponelli, architect, Klein and Hoffman; Ian Novak, vice president and director of condominium management services, Draper and Kramer; Peter Santangelo, president, Community Advantage, a Wintrust Company and division of Barrington Bank & Trust Co.; Kyle Baker, territory sales manager, SkyClimber Access Solutions; and Phil Pritzker, general manager of 400 Randolph Condominium Associations for The Habitat Co. State-of-the-Industry sponsors Ed Kaelber of AMS Mechanical Systems and Jake

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[ (Lto R) Kyle Baker - Skyclimber Access Solutions, Mike Bonick - KGH Architects, Howard Dakoff - Levenfeld Pearlstein, LLC, Phil Pritzker - The Habitat Company.

COVER STORY

Natalie Drapac -Community Specialists

Garechana of Comcast XFINITY Communities also contributed insights.

An edited version of their discussion follows: Q: What types of major capital projects are you seeing happening today?

A: Mike Naponelli: Facade repair projects, which are the majority of the work we do. We’re also seeing window replacement projects and life-safety upgrades.

Peter Santangelo: Facade, balcony, decks and roofing projects. We’re also seeing riser replacements in Chicago, where a lot of the buildings are older, and the risers are decaying.

Brian Butler: Our team is seeing similar projects in the suburbs--facades, restoration projects. Also as the economy improves, we see more discretionary projects like hallway renovations. Those aesthetic improvements had languished through the downtown.

Phil Pritzker: At 400 East Randolph, we’ve done about $24 million dollars’ worth of projects in the past three years. They include a complete window replacement, chillers, rooftop HVAC, parking garage work and a cosmetic lobby renovation.

Ian Novak: In addition to the list already given, we are seeing associations look at their overall marketability, especially in light of all the new residential buildings being built. How can they

Michael Davids - MCD Media

compete with the never-ending list of amenities and curb appeal? As Brian mentioned, discretionary projects have become a priority as well as energy efficiency projects, which are being done after their energy audits were completed.

Q: How do you advise your clients when they are approaching major capital projects such as these?

A: Naponelli: Before we have the job our approach is to tell the prospective client to hire a competent engineer or architect, whether us or someone else. Get someone on board who is going to be able to steer the project in the right direction and spend your money wisely. You should interview your selection of engineers and architects, and don’t be afraid to ask detailed

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questions. Get references for projects of similar size and nature to your building/project type. It is extremely beneficial to put forth the effort up front, and do your due diligence.

Once K&H is retained for a project, our priority is about educating the client. Many times the client wants to jump in and get moving right away on construction/repair. Most projects I work on are mainly facade repair, but whatever the project, you need to put the time in to understand the scope of work and what problems might exist.

This allows the architect/engineer to better develop a program that addresses the issues before beginning the repair documents phase.

This process can sometimes take several weeks. If you move forward with something you don’t have ample information on then there will likely be a lot of guesswork during construction that can lead to more issues and higher costs.

For facades, we recommend performing a condition assessment or investigation as a first step. The client should spend a little money beforehand to make sure you develop a proper scope of work.

Before beginning repair documents, it is best to be able to answer what, why, and to what extent.

The “what” is being able to identify the scope of work/repair that needs to be performed. The “why” is understanding what caused the issue

and this is a critical one. We see a lot of work performed that can be detrimental to the building. If there is an issue, and you don’t know what caused it, it is difficult to know if you’ve developed an adequate repair for it. I’ve seen contractors address the “what” (problem) but not the “why” (cause) and five years later the client has to spend more money to again repair what was previously repaired because the issue returned.

The “extent” of work is difficult to precisely define at the beginning of the project. With facade repair, there is some guesswork because you don’t know the full extent of the work until you’re done with the project. But an initial condition assessment can give you a good estimated scope of work. It’s better to know if you are facing a million-dollar repair program than budgeting for an $800,000 program, and finding out during construction that you have to spend $1 million. The lesson is to spend a little money at the beginning, get informed, put together a good set of repair documents and, it will help lead you down the path of staying on budget.

Michael Bonick: On the list of capital projects mentioned, unfortunately, a lot of these systems have a similar life expectancy. On many buildings we see, risers are going at the same time as elevators and the same time as facades. In my opinion, capital projects start five years before you are ready by informing the residents and being as transparent as possible. Give them as much information as possible so they are prepared. You can’t avoid nonsensical questions or people who don’t show up at board meetings and who ask the same questions over and over.

Work with good contractors and consultants and get them in front of your residents to inform them in detail what the projects are and how the residents will be impacted.

Consult your reserve study, but only rely on it as a baseline. It should never be the end-all and beall. It is a guideline to tell you when to expect something to happen in these certain years and to start funding reserves to accommodate them.

When a leak shows up ten years before it is supposed to show up or when you get to within those expected lifespans, do an investigation.

Have someone come out to look at your risers or facade or roofs or parking garages, so you can better customize your budgets.

Q: Ed, where does a board or property manager begin with a riser replacement project?

A: Ed Kaelber: Usually, hot water delivery issues will rear their heads first. Another warning sign is if you are doing building shutdowns, and you have to use hot water specialists to blow the lines clean afterward, it means you’ve got an excess amount of sediment in your piping. You’re on the first phase of the last chapter. If you wait too long, you lose the ability to phase the project and your capital expense.

Q: Peter, now that we know we have to spend money on capital projects, how can you make it easier for us to pay for them?

A: Santangelo: There is no easy way to go to the unit owners and say, “We need money.” What we and most banks can offer is a line of credit or a

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term loan that will match the cash flow and payment stream whether the board implements a special assessment or pays from their operating budget. A lot of banks offer home equity products or mortgage refinances for unit owners to pay their portion. Rates are still low, and many people have a lot of equity in their units.

With the economy getting better, we have been seeing a lot of larger projects come up recently that were put off since 2008. The boards’ ultimate goal is to minimize special assessments or out-ofpocket costs to the unit owners. They are implementing special assessments but they are also utilizing reserve funds and trying to pay in part from their operating funds to limit the amount of the special assessment as a whole.

Q: Brian, what are your thoughts on bulk purchasing trends for cable and internet?

A: Butler: Historically, bulk purchasing has been for video (TV) only. With the explosion of internet services, streaming services, cord-cutters and the like, there is definitely a demand for expanded services. Now that the regulatory environment allows for bulk purchase of internet, there is definitely a move in that direction.

One thing that associations should watch for is that 5- and 7-year agreements are relatively standard. In our discussions, we are adding ancillary services and shortening the time agreement period. The association doesn’t want to get locked into what seems to be a super-fast speed

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today but 18 months from now won’t be fast enough.

We also want to get resident feedback to find out what they want. Are you streaming? Are you doing just HD video? Do you want premium channels? When boards take time to find out what residents are using rather than just make the decisions for them, it makes for a happier community.

Q: With everyone using the internet as much as they do--high-speed or gigabit speed internet seems to be an issue at many properties, how are you approaching this at your properties?

A: Jake Garechana: In the rental market today, connectivity is still the Number One amenity tenants look at. As those lessees become owners, as the condominium marketplace shifts and the demographics shift, the expectation will become a standard. The need for speed is definitely out there. Some of it is about marketing. There are few devices in the household today that can handle a gig, but it’s a buzzword that is out there and people want more, not less.

From Comcast’s perspective, we are well-positioned from an infrastructure standpoint. We have the ability and any other coax provider has the ability to provide a gigabit service today over existing coaxial wiring with nothing intrusive in the building and no rewiring in the units or hallways.

A couple of years ago, 25 MBs was considered a

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fast connection. Today that’s on the low end. Theoretically, we are testing 10 gigs with modems that switch out.

Q: What can we look forward to next year with Cook County property taxes?

A: Matthew Panush: Cook County is the secondlargest county in America. It is divided into three areas--the city, south/southwest suburbs, and north/northwest suburbs. Property values are reassessed every three years. The city reassessment is in 2018, starting with Rogers Park and Lakeview, and I highly doubt values will come out lower than where they were in 2015.

One thing we will see is the exemption for homeowners and seniors is going to go up. We’re not talking about Vegas or Bahamas vacation money, but based on numbers I’ve seen, most homeowners should see an increase in the homeowners exemption in the area of $200 or $250. If you’re a senior, it will be slightly less than that.

Q: How can a tax attorney help community associations?

A: Panush: Let’s talk about condo associations. I highly encourage everyone to appeal or challenge the assessment on their buildings every time they are reassessed. Normally there is no fee involved from myself and many other similar companies. Usually our work is done on a contingent basis. Whether with the assessor or the board of review, we try to come up with an

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COVER STORY

overall value of the entire building, and the value is divided into each unit based on their percentage of interest.

The advantage of one appeal (for the entire condo association) is that it represents all units.

This is the best and only way to insure every unit in the building is fairly and equally assessed. The more (individual) appeals you have within a building, the more differing assessed values you have. You could have unit owners with identical percentages of interest paying widely different tax amounts.

The condominium act provides the board can appeal the entire association on behalf of the unit owners. With a townhouse or homeowners association, it gets more murky. A lot of times we’ll have to have an individual opt-in or opt-out.

It happens all the time when we aren’t dealing with all the owners. If there are seven different owners, we’ll see seven different appeals, 7 different analysts, 7 different market values and 7 different assessed values.

Q: Kyle, would you give a brief explanation of the new OSHA facade access requirements?

A: Kyle Baker: OSHA’s main purpose is to provide a safe work environment for men and women, and they do that by setting and enforcing standards.

Although there has been a standard for the window washing industry, there has never been a law requiring building owners to provide a facade access system. This responsibility fell on the con-

tractors to insure they were performing work safely and compliant with all the applicable codes.

Effective Nov. 20, 2017, building owners wishing to have their windows washed using a rope descent system must comply with the new OSHA 1910.27. The code states before any work is performed, the building owner has to inform the contractor in writing that the anchor points have been identified, tested, certified and maintained capable of supporting 5,000 pounds. Each anchor point must be inspected annually, and the equipment must be tested and recertified every 10 years.

Contractors should be bringing their own harnesses and retractables. You can let them know what you have on the building, but the responsibility falls onto the contractors to attach them to the anchors there.

Dakoff: The standard for liability is negligence, so it’s no difference from a slip-and-fall in the lobby.

You have to reasonably take care of the property.

If a certified architect or certified engineer says your system meets 5000 pounds, that’s what you have to do.

Bonick: The basic intent of the OSHA law is to prove you have a safe system and are working to keep it safe.

Baker: Our recommendation is to keep annual inspections. When we complete a project, we provide a binder and an electronic copy of the manual. It has everything you need, so when a

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contractor comes into your building and says, “Let me see your certification,” we can turn it over.

Then year two comes around, and we do the visual inspection and provide documentation that goes in the binder. It keeps piling up until recertification time comes. OSHA states every 10 years. The ASME standard says any system using an adhesive anchoring system needed to be reinspected every five years, and that is our stance with 95 percent of our projects.

Q: Ian, how do you use technology to communicate with your clients?

A: Novak: Today’s technology is all about providing information 24/7 as efficiently as possible, and property managers have to be available 24/7.

Technology is able to make that happen whether a unit owner is reserving an amenity (clubhouse, meeting room, etc) at a community, making a payment online, or being notified a package has been delivered. Other efficiencies include using Dropbox to send paperwork and documentation to board members for their review, so there is no more clogging up their email accounts. Also, managers are taking care of more and more payroll and invoicing operations in the cloud, so they are not sitting in front of a computer but being outside managing the asset.

Q: What does the change to Section 19 of the Condo Act mean for associations and managers in the immediate future?

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A: Dakoff: We are a nation of laws. There are plenty of laws we like, and plenty of laws we don’t like.

OSHA regulations want to protect men and women who are hanging from our buildings, and that makes sense. Every once in a while we get a law that angers everybody except for the person who wanted the law in the first place. How did we get here? Section 19 is part of the HB-189 omnibus that is about giving unit owners more rights, more time to challenge Board decisions and more information. Who are legislators hearing complaints from? From unit owners complaining about some boards. Illinois legislature and Governor adopted a law that condo associations must maintain the name, address, percentage of ownership, email and phone numbers of unit owners. But what about the privacy of celebrities or people with unlisted phone numbers who don’t want to be subject to abuse and want to remain private?

The general consensus in the legal space right now is that the statute says what it says and boards must comply. One outlier opinion is unit owners can opt out, but that such an opt-out provision is not in the statute. Whether your association wants to be the test case, I’m not sure.

Most of us (condo industry attorneys) are suggesting management professionals send a notice that says the law has changed, here’s what it says, we don’t like it, if you don’t give us a phone and email, we’ll disclose what we have. Why? Because we have to comply effective January 1 of 2018, and we will use good faith efforts to comply.

Ten business days means 10 business days from when you receive written notice. If someone makes a verbal request, you have to tell them to provide written notice.

Some attorneys are suggesting to put together a unit owner directory preemptively and sending that out. Then you don’t have to respond piecemeal, and you’re using information that is in public domain. I’m not in favor of that, and I don’t think most unit owners will be in favor of that.

The statute says email addresses and phone numbers plural, and most people probably have multiples. The literal interpretation is so offensive, I don’t think judges will take it too literally. They will look for good faith efforts by the board. Unit owners can designate an email and phone, or create new ones if they want. That creates a bal-

ance between what the statute says and privacy, so celebrities will probably give the phone number of their agents. A lot of individuals will create new email addresses. And the reality is someone can block an e-mail sender after the first email, so they never receive a second email.

Novak: Our attorneys have told us we need to be in compliance. Our associations are going to their attorneys to review their governing documents and set down the correspondence to the owners, so we can show good faith that we have a list of owners’ contact information. We are aware that January 1, there will be owners asking for this. We also are aware that we need to keep proof that we turned over information within 10 days.

Pritzker: In preliminary conversations with my board and making them aware of what the new law requires--and I’ve got three attorneys on my board, a couple might like to be a test case, but we are cautioning them against that. Like any mandate from above, we are not thrilled with it, the board is not thrilled with it, the management team is not thrilled with it, but we will comply.

Dakoff: If owners want to get Section 19 changed so that they can clearly opt out, they need to lobby their legislator(s) to sponsor an amendment to the law. One suggestion is for management companies to have form letters for owners to sign at their doorman stations.

Q: Phil, tell us how you manage your business and vendor relationships for the best possible outcome?

A: Pritzker: Our goal at 400 East Randolph over the past nine years has been to find and enjoy longlasting relationships with all types of vendors.

The way we manage the process is at the front end, we do due diligence like checking references to see what referrals are like and make the best judgement. Once the relationship has started, we insist on open dialog between the contractor and my team. Once we go into project mode, we have status meetings every other week. We also set up regular and ongoing conversations. We hold all our contractors and vendors accountable. They absolutely know the integrity of the association is paramount. Anything they do to tarnish that will extricate them from our association. Y

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

2017 state of theindustry

by Pamela Dittmer McKuen

LEGAL UPDATE New Laws & Court Decisions Answer Some Questions & Raise More

A

ssociation attorney Gabriella Comstock of Keough & Moody, P.C., in Naperville and Chicago once again presented the Legal Update session at the annual Condo Lifestyles State-of-the Industry seminar. The event was held on December 7 at the Chicago Cultural Center.

Comstock’s focus was on the legislative changes and court decisions that impact how boards must conduct the business of their associations.

(The full text of Comstock’s handout, “2017 Case Law and Legislative Update,” is reprinted elsewhere in this issue. The attorney cautioned that some of the cases summarized in the handout indicate unpublished opinions, also known as Rule 23 opinions, which means they are not binding, but they are still informative and possibly influential.

“I include them because somebody made an argument, and some judge either accepted that

argument or didn’t accept it,” she said. “It is important to read these types of cases because what they are saying will usually make its way somehow in a published opinion. As attorneys, it is valuable for us to know what is going on and to get a feeling for what may be coming ahead.”)

LEGISLATIVE CHANGES FOR ICPA AND CICAA Two legislative changes affect both the Illinois Condominium Property Act and the Common Interest Community Association Act. They both go into effect January 1, 2018.

The first (Sections 18.10 of ICPA and 1-45(i) of CICAA) requires associations with 100 or more units to use Generally Accepted Accounting Principles when fulfilling their accounting obligations.

The second (Sections 27(a)(ii) of ICPA and 1-

Y Gabriella Comstock -Keough & Moody, P.C.

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20(e) of CICAA) addresses the need for mortgagee or lien holders of record approval when an association amends its governing documents. Some older declarations require such approval, but it’s often challenging to get it. New legislation assumes the approval is granted unless the mortgagee or lien holder delivers a negative response within 60 days after the association mailed the request. The request must be sent by certified mail. This change is extremely helpful to associations, who will no longer have to track down the approvals, Comstock said.

“We still have to send the request by certified mail,” she said. “Even if it doesn’t say so in your governing documents, the statute does. Furthermore, I would encourage everyone who utilizes this provision to be sure to keep a paper trail that includes who you sent notices to by certified mail and the date you sent them. Later, if a mortgage company challenges you, you have a paper trail, and that will protect you.”

CONDO CHANGES GIVE OWNERS MORE TIME, OPTIONS Condominium associations now have specific direction on how boards are to handle budget surpluses and deficits. Section 9(c)5 gives boards the discretion to dispose of surplus funds in one or

more of four ways (after an end-of-year fiscal audit and providing the governing documents have no contrary provisions): contribute the surplus to the association’s reserve fund; return the surplus to owners as a credit against the future assessments; return the surplus to owners as direct payment; maintain the funds in the operating account to be applied to the following year’s annual budget.

“What you do one year might not be the same thing you do the following year,” Comstock said. “At least you have options.”

In the event of a budget deficit, boards may incorporate it into the following year’s budget. The statute allows owners to object if 20 percent of the owners petition the board within 30 days of its action for a meeting to address the deficit. A majority of the total votes of owners is needed to reject the board’s decision. If a majority is not obtained at the meeting, the board’s decision is ratified.

Several legislative changes give owners additional time to challenge board decisions. For example, when the board’s proposed budget exceeds 115 percent of the previous year’s budget, Section 18(a)(8)(iv) gives owners 30 days, instead of 20 days, to petition the board. Other changes extend the length of time owners have to object to rules made to eliminate proxy voting, to the

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replacement of common elements, and to enter into contracts with board members or a board member’s immediate family.

“We’re starting to see a theme here where the statute is giving owners a little more opportunity to have a hand in what the board is doing,” Comstock said.

WILL DOCUMENT REQUESTS CAUSE MAYHEM? Amendments to Section 19 of the condo act is raising the most questions and concerns among boards, owners and managers alike. It’s the section that deals with document requests by owners. In the past, associations or their delegated managers were required to maintain the names and addresses of each member. Owners had to state a “proper purpose” to obtain association documents, and associations had 30 days to provide them.

As of January 1, associations or their delegated managers must maintain not only the names and addresses of members but also their telephone numbers and email addresses. Owners no longer need a proper purpose to request association documents, although they must attest they are not using it for commercial purposes. In addition, associations must provide the information

HEIL & HEIL I NSURANCE A GENCY

LLC

Andrew Fullerton Property Insurance Specialist

847-530-3888 BUSINESS / HOME / AUTO / LIFE

847-866-7400 14

CONDO LIFESTYLES

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

within 10 business days.

“If you do not respond within 10 days, it is considered a denial,” Comstock said. “If you improperly deny, the owner may have the ability to bring an action to compel the production.”

As for maintaining telephone numbers and email addresses, the attorney said she expects to see continued discussion about its meaning and compliance. In the meantime, she advised associations to request the owners for their personal contact information.

“If an owner doesn’t give it to you, then an owner doesn’t give it to you,” she said. “But if you have it, you have to include it in your books and records.”

The provision that disallows requesting owners from using personal contact information for commercial purposes has potential for abuse.

Many fear being bombarded by dissatisfied owners and neighbors about association issues or complaints or elections. Further clarification from legislators is welcomed.

“Now we need to have something in our records that when someone makes a request, they have signed off and attested they will not use the information for commercial purposes,” she said.

Section 19 also is amended to state that the board may charge the requesting member the cost to make records available for inspection and the actual cost to reproduce the records. Comstock recommended that boards put language in their governing documents to support this provision further.

Other new laws address the combining of two or more residential units to be used as a single unit and the rights of owners who object to the total sale of association property (sometimes referred to as “de-conversion”).

“Every case is unique, and we are going to look at the facts and circumstances of every case,” she said. “Most of the attorneys in this room and every judge is likely to view a case with what they believe is prompt. More than ever, it is important for us to pay attention to those payments coming from the purchaser.”

PALM CASE CONTINUES TO WIELD INFLUENCE The now-infamous Palm v. 2800 Lake Shore Drive Condominium Association continues to pop up in the courts, especially in suits regarding unpaid assessments and forcible entry and detainer actions.

“Several defendants tried to make the argument that the association can’t pursue collection action against them because the board didn’t vote in an open meeting to say they are going to sue

Gabby Comstock for her unpaid assessments,” Comstock said. “Palm says decisions by the board need to be made in an open meeting. Fortunately, the appellate court has said there is no requirement for a condominium association to prevail in a forcible action to show that a vote was made, which is good.”

“While the decision is not to discourage boards from making decisions at open meetings, they can still look to their collection policies and prior delegation of authority given to a manager or board member to authorize assessments collection that were adopted at an open meeting,” she said. Y

COURTS MOVE SLOWLY ON LIENS The courts continue to hammer out whether and how associations can collect past assessments from buyers in foreclosure sales. A 2014 case, 1010 Lake Shore Drive Association v. Deutsche Bank National Trust Co., said purchasers from a foreclosure sale can wipe out a previous owner’s lien by paying their own assessments starting the month after the judicial sale. However, the court did not address by when the buyer must pay.

In 2017, 5510 Sheridan Road Condominium Association v. U.S. Bank, seemed to confirm the 1010 Lake Shore Drive decision but again without establishing a timing requirement.

But another case, Country Club Estates Condominium Association v. Bayview Loan Servicing, held that purchasers submit “prompt” payment of post-sale common expenses in order to terminate the lien. However, the court left open the meaning of “prompt.”

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01.18

CONDO LIFESTYLES

15

2017 state of the industry CH ICA GO CU LT UR AL CE NT ER /

DE CE MB ER 7, 20 17

2017 State-of-the-Industry Committee PREMIERE SPONSOR

Xfinity Communities

Michael Donnell FirstService Residential

MAJOR SPONSORS

Community Advantage, A Wintrust Company Keough & Moody P.C. Kellermeyer, Godfryt & Hart, PC

Tony Briskovic Chicagoland Community Management

Klein & Hoffman LMC Construction

Tairre Dever-Sutton Tairre Management

Skyclimber Access Solutions, LLC

Gail Filkowski First Community Management

Worsek & Vihon, LLP

John Hancko The Habitat Company

Marla Jackson Draper and Kramer, Inc. Natalie Drapac Community Specialists Caree Shtulman Peak Properties William Townsell Chicago Police Dept.

Tom Skweres ACM Community Management

Y (LtoR) Bryan Nordlund - Contech MSI Co., Patricia Bialek - FirstService Residential, and Rocco Bartucci - Contech MSI Co.

Y (LtoR) Mike Vitek -Property Manager, William Klinger -Smith- Amundsen, Marla Jackson Draper and Kramer, Inc., and Paul Kreatsoulis & Luke Cuila -LMC Construction

Y Greg Semmer -Semmer Landscape, Al Schroeder - Heil Heil Smart & Golee, Andrew Fullerton Heil Heil Insurance, and Barbara Rogers - Chicagoland Community Management

Property • Casualty • Employee Benefits • Workers Compensation

220 S. Lively Blvd., Elk Grove Village, IL 60007 Ph: 847-439-2184 • 800-780-2922 • Fax: 847-437-2189 www.hollingerinsurance.com

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CONDO LIFESTYLES

01.18

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EVENT HIGHLIGHTS

Y Tom Wisniewski and Phil Mariotti -Woodland Windows & Doors and Gidget Curtis -CertaPro Painters of Evanston.

Y (LtoR) Erica Hordasch - Associa Chicagoland, Marshall Dickler - Dickler, Kahn, Slowikowski & Zavell, Ltd., and Derek Wilkinson - Associa Chicagoland.

Y William Townsell (2nd from left) of the Chicago Police Department with representatives from the Chicago Fire Dept. and Office of Emergency Management.

Y (LtoR) Michael Roche & Trey Waldman - Waldman Engineering and Chuck Keough - Keough & Moody P.C.

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01.18

CONDO LIFESTYLES

17

CONDO LIFESTYLES

industry happenings The Habitat Co.

Draper and Kramer

Draper and Kramer, Incorporated, a national fullservice real estate firm, announced on November 17, 2017 that Gov. Bruce Rauner has appointed Marla Jackson, assistant vice president of condomanagement minium services with Draper and Y Marla Jackson Kramer, to the Illinois Department of Financial and Professional Regulation’s Community Association Manager Licensing and Disciplinary Board.

The Habitat Company recently held a Legal Update seminar for the board members of community associations they manage. The program was held on December 13th 2017 at Habitat’s corporate offices located at 350 West Hubbard Street, Chicago. Diane White, Director of the Condominium Division of the Habitat Co. welcomed everyone, made opening remarks, led introductions and preliminary discussion among all the participants.

Expert community association attorney Howard Dakoff of Levenfeld Pearlstein, LLC provided a “Plain English” Legislative Update to the Illinois Condominium Property Act and Common Interest Community Association Act with an emphasis on the controversial Section 19 of the ICPA. Dakoff also provided an outline of three different approaches that are being recommended by local condo industry attorneys to meet the requirements of Section 19. A question and answer session on community association legal topics followed Dakoff’s presentation

Jackson, who has been with Chicago-based Draper and Kramer since 2015, oversees operations for more than 2,000 units of fee-managed condominium properties.

Her appointment will continue through December 2020.

The seven-member Community Association Manager Licensing and Disciplinary Board recommends policies, procedures and rules relevant to the administration and enforcement of the State of Illinois Community Association Manager Licensing and Disciplinary Act. Community association managers must renew their state-issued professional licenses every two years.

“This appointment is a real testament to Marla’s expertise and integrity,” said Ian Novak, vice president and director of condominium management services with Draper and Kramer. “We know she will bring the same level of professionalism to this board as she does to her work with our condo management division and in this industry each and every day.”

One of the largest property management firms in Chicago, Draper and Kramer has a residential management portfolio of more than 10,000 rental units across Chicago, St. Louis, San Antonio and Minneapolis, as well as 25,000 condominium residences throughout Chicago.

industry happenings

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

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

847-593-5595 18

CONDO LIFESTYLES

01.18

PRACTICAL REPORTS ON GREEN BUILDING ISSUES News and Information on Building Maintenance, Restoration & Preservation Chicagoland

&

Buildings Environments FOR MORE INFORMATION CALL

630.932.5551

OR V ISIT

www.chicagolandbuildingsandenvironments.com

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INDUSTRY HAPPENINGS

RealManage

RealManage is pleased to announce that Kara Cermak, CMCA®, AMS®, PCAM®, President of Rowell Incorporated, AAMC®, has been selected as a member of the Board of Trustees for CAI® National and has been elected to the CAI® National’s Community Association Managers Council. RealManage took over management of the Rowell, AAMC® managed communities in mid-2017adding them to its ever growing Illinois footprint.

With over 26 years of experience in the community association industry, Kara has served as a board member of CAI® Illinois’ Board of Directors, serving a year as the President. She has also appeared on the NBC local station in Chicago; been quoted in Chicago Crains Business; served two terms on the Community Association Managers Council previously and has been a member of CAI®’s National Faculty for eight years. In 2016, Kara was awarded The Influential Women in Business Award from the Daily Herald’s Business Ledger.

Y Kara Cermak

Ms. Kara Cermak states “It has long been my goal to provide leadership to the community association management industry because our industry is comparatively quite young. While I have contributed locally, and continue to do so, I am excited to provide help and guidance to the industry on a national level, through CAI® and by working as part of the RealManage team. I look forward to contributing my expertise, and my passion, through both of these avenues that I am blessed to be involved with.” “Kara’s passion for developing members of our industry is second to none.” states Mr. Christopher Ayoub, RealManage President “We are fortunate to have her as part of the RealManage family and look forward to the amazing impact she will have on our industry.”

FirstService Residential

FirstService Residential is proud to announce that following a record 2017 campaign, the company is off to an explosive start to 2018. According to Asa Sherwood, President of FirstService Residential of Illinois, the company was recently awarded management of Carillon North HOA, Park 1500 Lofts Condominium Association, Gold Coast Galleria Condominium Association, Gold Coast Galleria Garage Association, State Place Centre Condominium Association, 600 North Lake Shore Drive Condominium Association and 10 East Delaware Condominium Association. In total, these 7 new partnerships add 1,820 units to the FirstService Residential managed portfolio.

MCD Golf & Bocce Invitational

The 22nd annual MCD Golf & Bocce Invitational will be held on July 13, 2018 at Eaglewood Resort in Itasca.

Last year, over 200 participants played golf or bocce and enjoyed industry networking at a special reception. For more information visit www.condolifestyles.net or call 630-932-5551. To view photos form past mcd media events, visit Facebook.com/MCD Media.

industry happenings

FirstService held a legal forum for condominium, cooperative and homeowner association board members on October 2, 2017. The forum focused on the 2018 legislative changes and their direct impact on Chicagoland communities. The attorney-led discussion was moderated by Brian Butler, vice president of property management at FirstService Residential, along with guest speakers from Bancroft, Richman & Goldber, LLC, Kovitz Shifrin Nesbit, and Levenfeld Pearlstein, LLC.

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01.18

CONDO LIFESTYLES

19

CONDO LIFESTYLES

industry happenings

ACTHA

ABOMA

The Apartment Building Owners and Managers Association of Illinois held their 80th annual meeting and holiday party on December 1, 2017 and elected as Officers: President, Tony Briskovic, Chicagoland Community Management, Inc., 1st Vice President, Sheila Byrne, The Habitat Company, 2nd Vice President Dean Lerner, Sudler Property Management, Treasurer, John Bieg, Draper and Kramer, and Secretary, Robert Wiggs, ABOMA. ABOMA presented special recognition during the program to long time ABOMA board member and past President Rosemarie Wert of Community Specialists who retired from community association management earlier in 2017.

ABOMA also announced their schedule of events for 2018: • Managers Night Out, early evening function at Athena Restaurant, Greek Town, Thursday, March 8, 2018 • Educational Seminar, afternoon function with networking, East Bank Club, Thursday, June 14, 2018

Y Shown here (L to R) are Tony Briskovic –Chicagoland Community Management and ABOMA President, Rosemarie Wert, Bob Wiggs – ABOMA Secretary, and Ron Hickman – Community Specialists.

• 81st Annual Meeting, noon function, University Club of Chicago, Friday, December 7th, 2018 All ABOMA events are for ABOMA members only.

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

20

CONDO LIFESTYLES

01.18

ACTHA held an educational conference for community association board members and managers in Chicago on Saturday September 9, 2017 at University Center and another conference on Saturday, October 14, 2017 at the NIU Naperville Conference Center. The Naperville program featured a conversation with Illinois State Senator Michael Connelly (R-21, Lisle) on how board members, unit owners and vendors can be effective legislative advocates. Connelly participated with former State Rep. Dave Winters and attorney Doug Sury in providing an update of 2017's busy legislative session and discussed new laws impacting community associations.

The group will hold their Spring 2018 conference on April 14th at Drury Lane in Oak Brook Terrace, IL. For more information please visit www.actha.org

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INDUSTRY HAPPENINGS

IREM Chicago Chapter

Y Shown here are 2018 IREM Chicago Chapter Officers: (L to R) Angela Aeschliman, CPM – Past President; Jim Vocos, CPM – President; Kris Haskins, CPM – President Elect; Shruti Kumar, CPM – Treasurer; Steve Schimmel, CPM – Secretary; Maleta Brown, CPM – RVP. IREM Chicago Chapter held their 2018 Officer Installation & Networking event on November 9th, 2017 at The Cube @ Rivers Casino in Des Plaines.

The 14th Annual IREM Chicago Premier Awards and Casino Night will be held on March 2, 2018 at the Drake Hotel in Chicago. Nominations for awards are now open. For more information visit www.iremchicago.org

UpStream Network

Access Media Holdings (AMH) recently announced the launch of UpStream Network, a new high-speed, fiberbased broadband platform specifically designed for the multi-family market. Upstream was developed to provide users with a concierge-quality experience at the fastest speeds, supported by 24/7 service and technical support, and the first cloud-based smart network especially designed for the multi-dwelling unit (MDU) market.

UpStream offers residents the ability to choose their own customized, unbundled TV packages, including content from Netflix, Hulu Plus, HBO GO, CBS All Access, and more. Leveraging AMH’s nationwide 10 Gigabit fiber backbone, the platform’s capabilities will also allow users to discover, view, and stream their content to any device they choose over a wireless or wireline network.

At a streaming bandwidth of up to 1 Gbps (gigabit), UpStream’s high speed internet runs over a secure, enterprise-grade network to provide optimal privacy protection. “UpStream provides the multi-family market with a boutique, concierge-quality broadband experience that it demands,” said Bryan Rader, President of UpStream and Chief Marketing Officer of Access Media Holdings.

MCD Pool Party featuring Condolympics

The MCD Pool Party featuring Condolympics will be held on March 9, 2018 at the Pyramid Club in Addison.

Join over 300 attendees that are involved in the community association industry for a fun filled afternoon that features industry networking, a food buffet, games and a special raffle that benefits Special Olympics Illinois. For more information visit www.condolifestyles.net or call 630-932-5551.

Reserve Advisors

Jaison Thomas has joined Reserve Advisors, Inc. in their Oak Park, Illinois office. Thomas graduated from The University of Houston with a B.S. in Mechanical Engineering. He previously worked as a field engineer at Clean Air Engineering and at Thermon Manufacturing as a design engineer. Reserve Advisors’ regional staff of engineers conduct reserve studies for clients from Wisconsin and Illinois, to Ohio. The company employs 34 engineers in total throughout the United States.

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01.18

CONDO LIFESTYLES

21

CONDO LIFESTYLES

From the Editor

H

opefully you enjoyed the holiday season and are renewed

and refocused on getting your association(s) off to a good

start in 2018. While we have not had the major snowfalls

that we typically experience by this time in most years, the New Year has

CondoLifestyles

®

Y Mike Davids

been dominated by periods of severe cold. Many people took precautions this year against frozen pipes, but the brutal cold (and subsequent thaw) has still caused burst pipes and plenty of problems for even the most prepared properties.

JANUARY 2018 | VOLUME 21 | NUMBER 4

Economic conditions continue to improve and the stock market gains of 2017 have continued into 2018 so far. The local housing market has also seen good gains for many (in the best locations), al-

Editor & Publisher Michael C. Davids

provement with cautious optimism. The new tax laws have added to the possibilities. Only time will tell

Vice President Sherri Iandolo

us for sure what will happen.

Art Director Rick Dykhuis

ber at The Chicago Cultural Center. Attorney Gabriella Comstock gave a presentation on recent legisla-

Special Events Coordinator Mary Knoll

architects/engineers, attorneys and other experts shared their perspectives on current hot topics such

Contributing Writers Pamela Dittmer McKuen, Jim Fizzell, David Mack, and Cathy Walker Circulation Arlene Wold Administration Cindy Jacob and Carol Iandolo Condo Lifestyles Magazine is published quarterly by MCD Media, a wholly owned subsidiary MCD Marketing Associates, Inc. For editorial, advertising and subscription information contact: 935 Curtiss Street, Suite 1A, Downers Grove, IL 60515. 630-932-5551 or 630-202-3006.

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

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

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

All material herein is copyrighted 2017. 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.

22

though some areas have only seen moderate increases. Most experts are forecasting more overall im-

CONDO LIFESTYLES

Our cover story is a report on our “Condo Lifestyles State of the Industry” program held in Decemtive and legal update for attendees. An outstanding panel of leading property managers, as Section 19 of the ICPA (providing names, phone numbers and emails for all unit owners to other unit owners), OSHA Roof Access requirements, capital project planning & financing, technology and property tax appeals at the SOI event as well. Our cover story features the highlights of the information shared by our experts at the SOI program.

Ms. Comstock provided an overview of new laws and several court cases that directly impact community associations including an update to the Illinois Condominium Property Act (ICPA) and Common Interest Community Association Act. Pam McKuen provides an article that summarizes Ms. Comstock’s presentation. We have also included a summary of all the recent legislation and court cases that you should be aware of as a separate article by Ms. Comstock in this issue (some of which were not discussed at the SOI program). Additional coverage of this special event is also featured in this edition including photo highlights. You can also view all the event photos from this event at Facebook.com/mcd media.

MCD Pool Party to feature Condolympics Games Our 22nd annual MCD Pool Party will be held on March 9, 2018 at The Pyramid Club in Addison.

Tournaments will be held for 8-ball (billiards) and darts. Other events for our Condolympics competition will also be held at the MCD Pool Party. The Condo Lifestyles Condolympics donations will again benefit Special Olympics.

Other upcoming MCD special events include our annual golf outing, which will be held on July 13 at Eaglewood Resort in Itasca, and a luncheon at Arlington International Racecourse on August 24th.

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

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

Those of you who are not current subscribers can obtain subscription information on our website www.condolifestyles.net or by contacting our office.

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

01.18

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SERVICE DIRECTORY

ACCOUNTANTS CANTEY ASSOCIATES, CPA’S (630) 681-9400 ANNUAL ACCOUNTING SERVICES: Audits Reviews Compilations / Income Taxes MONTHLY SERVICES: Collection of Assessments Paying of Bills Monthly Financial Statements

www.canteycpa.com

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

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

CUKIERSKI & COCHRANE, LLC CERTIFIED PUBLIC ACCOUNTANTS

(847) 496-7180 A full-service accounting firm specializing in the unique needs of homeowners’ associations.

www.ckwcpa.com

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

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

ARCHITECTS/ENGINEERS

ATTORNEYS

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

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

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

ENGINEERING SUPPORT SERVICES 630-904-9100

Architectural & Structural Engineering Solutions www.kleinandhoffman.com

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All material herein is copyrighted 2018©.

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

Construction Specifications Roof Evaluations Forensic Engineering Project Management Contact Greg Lason, P.E. www.engineeringsupportservice.com

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114

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

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

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

KELLERMEYER GODFRYT & HART, P.C. (847) 318-0033 Investigations and Repair Documents for: Exterior Walls, Windows, Roofs, and Parking Garages Condition Surveys and Reserve Studies www.kghpc.com

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000

pcostello@keaycostello.com www.keaycostello.com

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

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

www.waldmaneng.com

BALCONY REPAIR ATTORNEYS

THE RESTORATION GROUP (630) 231-5700

info@btc.expert

KLEIN AND HOFFMAN (312) 251-1900

www.dicklerlaw.com

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

24 HOURS

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

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

01.18

CONDO LIFESTYLES

23

CONDO LIFESTYLES

BANKING

BUILDING RESTORATIONS

DOORS

ALLIANCE ASSOCIATION BANK (888) 734-4567

LMC CONSTRUCTION 708-714-4175

DOOR SYSTEMS 1-800-THE-DOOR

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

COMMUNITY ADVANTAGE, A WINTRUST COMPANY (847) 304-5940 Loans, Reserve Investments & Lock Box Services www.communityadvantage.com

INLAND BANK & TRUST (630) 908-6708 Commercial Lending and Community Association Loan Program Contact: Timothy J. Haviland, CMCA www.inlandbank.com

Masonry Concrete General Contracting Roofing www.LMCTeam.com

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

QUALITY RESTORATIONS (630) 595-0990

W. J. MCGUIRE COMPANY (847) 272-3330

SMART ELEVATORS CO. (630) 544-6829

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

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

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

Masonry and Concrete Restoration www.bralrestoration.com

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

CENTERPOINT ENERGY (630) 795-2594 Natural Gas & Electric Energy Reliable Service. People You Trust.

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

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

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

CONDO LIFESTYLES

ELEVATORS/CONSULTANTS

ENERGY SOLUTIONS

BRAL RESTORATION, LLC. (847) 839-1100

24

www.airwayssytems.com

Tuckpointing, Caulking, Masonry and Concrete Restoration

austinwerner@therealsealllc.com

Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration

Cleaning: Air/Laundry/Toilet Exhaust Ducts, Coils, Trash Chutes, Parking Garages. Also Air Filters, Belts Aeroseal® & Duct Sealing

www.smartelevatorsco.com smartin@smartelevatorsco.com

THE REAL SEAL, LLC (847) 756-7987

HOLTON BROTHERS, INC.

AIRWAYS SYSTEMS, INC. 630-595-4242

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

BASEMENT WATERPROOFING

BUILDING RESTORATIONS

DUCT CLEANING

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

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

www.doorsystems.com

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

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

PEDESTRIAN DOORS / REVOLVING DOORS SECTIONAL DOORS / STEEL ROLLUP DOORS / FIRE DOORS HIGH SPEED DOORS / DOCK LEVELERS

01.18

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SERVICE DIRECTORY

FACILITY MAINTENANCE SP+ FACILITY MAINTENANCE (773) 847-6942 Daily Cleaning Services / Power Sweeping and Washing Painting and General Repairs / Seasonal Services (Snow/Ice Removal) Parking Facility, Surface Lot, PedestrianPlaza, Large Venue or Commercial Retail Building.

HANDYMAN/MAINTENANCE

CONTECH MSI CO. (847) 483-3803

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

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

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

NORTHERN ILLINOIS FIRE SPRINKLER ADVISORY BOARD (NIFSAB) 708-403-4468

FIRE/FLOOD RESTORATION BROUWER BROS. STEAMATIC (708) 396-1444

www.firesprinklerassoc.org

All types of environmental cleaning. www.BrouwerBrothers.com

SIMPLEX GRINNELL (630) 948-1235

FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400

GENESIS CONSTRUCTION, INC. (847) 895-4422

"No Job Too Big or Too Small"

service@midproservice.com / www.midproservice.com

HVAC 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

www.emcortmi.com

PARAGON MECHANICAL, INC. (847) 321-9428

USA FIRE PROTECTION (224) 433-5724

www.genesisconstruction.com

Construction / Maintenance / Painting Electrical / Snow Removal

EMCOR SERVICES TEAM MECHANICAL (847) 229-7600

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

24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

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

FIRE SAFETY & PROTECTION

CHICAGOLAND’S HIGHEST RATED TECHNICIANS

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

Heating | Cooling | Domestic Hot Water Refrigeration | Tankless | Boilers | RTUs | IAQ

SERVICE | INSTALLATION | MAINTENANCE www.pmcomfort.com

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

THE RESTORATION GROUP, LLC (630) 870-0658

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

EMCOR SERVICES TEAM MECHANICAL

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

F I R E P R OT E C T I O N D I V I S I O N

www.trgrestore.com

(847) 229-7600 www.emcortmi.com

SKYLINE DKI (708) 629-0563

GARBAGE CHUTE CLEANING

"Restoring Happiness" www.skylinedki.com

BROUWER BROS. STEAMATIC (708) 396-1444

FIRE SAFETY & PROTECTION

All types of environmental cleaning. www.BrouwerBrothers.com

THE YMI GROUP, INC. (847) 258-4650 Mechanical - Plumbing Building Automation - Service www.theymigroup.com

CHICAGO FIRE PUMP TESTING (773) 609-1510 www.chicagofirepumptest.com

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H V A C CLEANING

LANDSCAPE CONTRACTORS

LIGHTING / L.E.D.

BROUWER BROS. STEAMATIC (708) 396-1444

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

All types of environmental cleaning. www.BrouwerBrothers.com

Professional Landscaping and Snow Removal www.acresgroup.com

CROWN COMMERCIAL LIGHTING (800) 830-5914

INSURANCE

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

HOLLINGER SERVICES, INC. (847) 437-2184 Property Casualty • Employee Benefits Workers Compensation www.HollingerInsurance.com

LOCKSMITH NONSTOP LOCKSMITH (312) 929-2230

www.alanhorticultural.com

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

ALLIANT/MESIROW INSURANCE SERVICES (312) 595-8135 Nancy Ayers www.condorisk.com

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

MAILBOXES

CHRISTY WEBBER LANDSCAPES (773) 533-0477 Info@christywebber.com www.christywebber.com

Get LED Lights for Little Out-of-Pocket Costs. frank@crowncommerciallighting.com www.crowncommerciallighting.com

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

INTERIOR CONSTRUCTION

www.MailboxWorks.com

ILT VIGNOCCHI (847) 487-5200

FIRECON CONSTRUCTION SERVICES, INC. 847-534-9400 24 Hour Emergency Services www.FIRECONCONSTRUCTION.com

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

INTERNET TECHNOLOGY XFINITY COMMUNITIES 1 (800) XFINITY

PAINTERS

www.iltvignocchi.com

www.landscapeconcepts.com

SEBERT LANDSCAPING, INC. (630) 497-1000

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

www.sebert.com

SEMMER LANDSCAPE (708) 926-2304

IRRIGATION

gsemmer@semmerlandscape.com

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

LAWN CARE

Comprehensive Irrigation Services www.acresgroup.com

SPRING-GREEN LAWN CARE (800) 830-5914

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

CERTAPRO PAINTERS OF THE NORTH SHORE (847) 989-4791 Interior & Exterior Painting Wallcoverings • Decorating • Remodeling Drywall Repair • Decks & Staining Tile Installation • Metal & Iron Painting www.certacommercial.com rmuldoon@certapro.com

www.spring-green.com

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SERVICE DIRECTORY

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PEST CONTROL

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ABC DECO (773) 701-1143

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

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

www.smithereen.com

www.chicagopropertyservices.com

info@abcdecoonline.com www.abcdecoonline.com

MORE LIVING. LESS WORRYING.

PLUMBING

HOMETOWN PAINTERS, INC. (847) 870-1600 www.hometownpainters.com

Construction / Maintenance / Painting Electrical / Snow Removal

PROPERTY MANAGEMENT

"No Job Too Big or Too Small"

PARKING GARAGE CLEANING

Contact Ian Novak

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

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

service@midproservice.com / www.midproservice.com

DRAPER AND KRAMER INC. (312) 346-8600

LIFELINE PLUMBING (847) 468-0069

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

SP+ (773) 847-6942

info@duboispaving.com www.duboispaving.com

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

THE HABITAT COMPANY (312) 527-5400 Contact Diane White

www.habitat.com

BAUM PROPERTY MANAGEMENT, AAMC (630) 897-0500

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

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

PEST CONTROL

G&D PROPERTY MANAGEMENT (630) 812-6400 www.gd-pm.com

SP+ (773) 847-6942

Asphalt Paving & Sealcoating / Concrete www.TwinBrosPaving.com

www.fsresidential.com

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

DUBOIS PAVING CO. (847) 634-6089

Guiding board members since 1988 www.condomanagement.com

Contact Asa Sherwood

ADVOCATE PROPERTY MANAGEMENT (630) 748-8310

PAVING

FIRST COMMUNITY MANAGEMENT (312) 829-8900

FIRSTSERVICE RESIDENTIAL (312) 335-1950

www.acmweb.com

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

www.draperandkramer.com

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

Contact Mike Baum MikeB@BaumProp.com

www.hillcrestmgmt.com

www.BaumProp.com

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300

LIEBERMAN MANAGEMENT SERVICES (847) 459-0000

www.chicagoland-inc.com

www.liebermanmanagement.com

COMMUNITY SPECIALISTS (312) 337-8691

KANE PROPERTY MANAGEMENT CORP. (773) 472-2300

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

www.communityspecialists.net

Professional Property Management. Affordable Rate.

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

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PROPERTY MANAGEMENT

PROPERTY TAX APPEALS

RESERVE STUDIES

MCGILL MANAGEMENT, INC. (847) 259-1331

SARNOFF & BACCASH 312-782-8310

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560

Attorneys at Law www.sarnoffbaccash.com

www.mcgillmanagement.com

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

REAL ESTATE TAX ATTORNEY

ROOFING

ELLIOTT & ASSOCIATES (847) 298-8300

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

www.nimrodrealty.com

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

www.elliottlaw.com

PROPERTY MANAGEMENT SPECIALISTS 847-845-6067

KSN TAX (847) 537-0500

www.Pmgrs.com

ADAMS ROOFING PROFESSIONALS INC. (847) 364-7663

www.KSNLaw.com

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

www.superiorreserve.com

WOODRIDGE OFFICE

MCCRACKEN MCCRACKEN BEHRENS (312) 263-4308

www.psimanagement.net

Concentrating in Property Tax Appeals since 1976

(630) 633-5450

www.mmbtaxlaw.com

TAIRRE MANAGEMENT SERVICES (847) 299-5740

WORSEK & VIHON LLP (312) 368-0091

tsutton@tairremgmt.com

www.wvproptax.com

REALTY & MORTGAGE CO.

RESERVE STUDIES

COMMUNITY ASSOCIATION MANAGEMENT

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

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

WERK MANAGEMENT (630) 241-0001

BUILDING RESERVES INC. 1 (877) 514-8256 Easy-to-Read, Customized Reserve Studies created

by Reserve Specialists & Engineers www.BuildingReserves.com

RESERVE ADVISORS, INC. A remarkably simple reserve study system Custom, Comprehensive Studies Conducted by Professional Engineers

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

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

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

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

(312) 625-4958

For All Your Property Needs www.werkmanagement.com

www.reserveadvisors.com Long-term Thinking.

Everyday Commitment.

VILLA MANAGEMENT 847-367-4808

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

Complete Association Management Since 1976.

7370 N Lincoln Ave., Suit A, Lincolnwood, IL 60712

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SERVICE DIRECTORY

ROOFING

SIDING / RENOVATIONS

D-WING CONSTRUCTION (630) 397-8889

D-WING CONSTRUCTION (630) 397-8889

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

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

MI CONSTRUCTION AND ROOFING (630) 241-0001

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

www.mancioneinc.com

www.insideoutcompany.com

PROHTOP ROOFING (847) 559-9119

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

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

TOWING

Siding & Gutters / Wood Replacement Welding & Railings / Snow Removal

www.upstream.network

RCN

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

(312) 955-2322

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

S&D ROOFING SERVICE (630) 279-6600 250,000 roofs installed since 1963 TEAR OFFS • SHINGLES • FLAT Multi-Family ROOFING Specialist Our experience & technical know-how gets the job done right the first time! www.sdroofing.com sales@sdroofing.com

SNOW REMOVAL

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

rcnchicagoapts@rcn.net www.rcn.com

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

SP+ (773) 847-6942

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

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

WASTE SERVICES

THE WINTER WERKS (630) 241-0001

LAKESHORE RECYCLING SYSTEMS (773) 685-8811

www.mancioneinc.com

www.LakeshoreRecyclingSystems.com

SAFETY - OSHA COMPLIANCE

SWIMMING POOLS

SKY CLIMBER ACCESS SOLUTIONS 847-600-3900

SPMS (630) 692-1500

SECURITY SERVICES

UPSTREAM NETWORK 844-55-STREAM

service@midproservice.com / www.midproservice.com

www.sitemaintinc.com

KBaker@skyclimber.com

Outsource your parking to the EXPERTS in towing.

Jennifer Olson 815.953.5310 Jason Buffone 219.677.1617 www.contracttow.com

TV-BULK CABLE & SATELLITE

"No Job Too Big or Too Small"

SITE MAINTENANCE, INC. (847) 697-1077

CONTRACT TOWING (815) 953-5310

WINDOWS/REPLACEMENTS D-WING CONSTRUCTION (630) 397-8889

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

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

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

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

www.admiralsecuritychicago.com

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CONDO LIFESTYLES

by Gabriella R. Comstock - Keough and Moody, P.C.

2017 Case Law and Legislative Update LEGISLATIVE UPDATE

Changes to the Illinois Condominium Property Act

Changes to the Common Interest Community Association Act

765 ILCS 605/9(c)-(5): This is a new provision to the Act which provides that at the end of an association's fiscal year and after the association has approved any end-of-year fiscal audit, if the fiscal year ended with a surplus of funds over actual expenses, so long as there are no contrary provisions in the association's governing documents, the Board, in its discretion, shall dispose of the surplus in one or more of the following ways: (i) contribute the surplus to the association's reserve fund;

765 ILCS 160/1-20(e): This Section is amended to state that if an association’s governing documents require the approval of any mortgagee or lienholder of record when amending the association’s governing documents, the approval is deemed given unless the mortgagee or lienholder delivers a negative response within 60 days after the association mailed the request. The request to the mortgagee or lienholder must be sent by certified mail.

765 ILCS 160/1-45(i): Associations with 100 units or more must use Generally Accepted Accounting Principals when fulfilling its accounting obligations.

(ii) return the surplus to the Unit Owners as a credit against the remaining monthly assessments for the current fiscal year; (iii) return the surplus to the Unit Owners in the form of a direct payment to the unit owners; or

(iv) maintain the funds in the operating account, in which case the funds shall be applied as a credit when calculating the following year's annual budget.

This provision also provides that if the fiscal year ends in a deficit, then, to the extent that there are not any contrary provisions in the association's governing documents, the Board, in its discretion, may address the deficit by incorporating it into the following year's annual budget. This provision also allows, within 30 days after notice of the Board’s decision, 20% of the Unit Owners to deliver a petition to the Board objecting to the action. Within 30 days of the date of the delivery of this petition, the Board shall call a meeting of the Unit Owners to allow the Owners to vote to select a different option as to how to address the deficit. A majority of the total votes of the Unit

Condominium Law Commercial Litigation Estate Planning

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Owners is needed to reject the Board's decision and if a majority is not obtained at the meeting, the Board's decision is ratified.

765 ILCS 605/15(a): This Section is amended to permit Unit Owner(s) who object to the sale of the Property within the Association the option of receiving the value of his/her unit less unpaid assessments or the outstanding balance of bonafide debts secured by the unit less unpaid assessments.

An objecting Owner is also entitled to reasonable relocation costs. The amendment to this Section applies to all pending and commenced sales as of the date of amendment.

765 ILCS 605/18(a)(8)(iv): This Section is amended to extend the amount of time from 14 to 21 days that 20% of the Unit Owners must submit a petition to begin the process to challenge a Board’s decision to adopt a budget or any separate assessment that results in the sum of all regular and separate assessments payable in the current fiscal year to exceed 115% of the sum of all regular and separate assessments payable during the preceding fiscal year.

765 ILCS 605/18: 1. Section 18 (a)(16) is amended to extend the amount of time from 20 to 30 days that 20% of the Unit Owners must submit a petition to begin the process to challenge a Board’s action to enter into a contract with a Board member or a member of the Board Member’s immediate family, when the person has 25% or more of an interest in corporation or partnership contracting with the association.

2. Section 18(b)(9)(c) is amended to extend the amount of time from 14 to 30 days that 20% of the Unit Owners must deliver a petition to begin the process to challenge a Board’s decision to adopt a rule that prohibits proxy voting at an election meeting and only allows voting by ballot, as outlined in Section 18(b)(9)(B) or (B-5).

765 ILCS 605/18.4(a): This Section is amended to extend the amount of time from 14 to 21 days that 20% of the Unit Owners must deliver a petition to begin the process to challenge a Board’s decision to make a replacement to the common elements that results in an improvement over the original quality, when the expenditure exceeds 5% of the annual budget and is not an improvement mandated by law or in response to an emergency as defined in Section 18.

765 ILCS 605/18.10: This is a new Section that requires a condominium association which consists of 100 or more units to use Generally Accepted Accounting Principles in fulfilling any accounting obligations under the Condominium Property Act. 765 ILCS 605/19: 1. Section 19(a)(7) requires the Board to maintain in its books and records the e-mail address and telephone number of each member.

2. Section 19(b) does not require an Owner to state a proper purpose when requesting to inspect contracts and other agreements pursuant to 19(a)(6) or the financial records pursuant to 19(a)(9). It also requires the Board to make available all records requested within 10 business days, instead of 30.

3. “Commercial purpose” is defined as the use of any part of a record described in 19(a)(7) and (8) or information derived from such records in any form for sale, resale, solicitation or advertisement for sales or services. (This definition is relevant to further changes to Section 19(e).

4. Section 19(e) is amended to state that when an Owner requests to inspect documents as

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

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provided for in Section 19(a)(7) and (8), the Owner must state a purpose that relates to the association. It also provides that the Board may require the Owner to certify in writing the information within the records obtained by the member will not be used for any commercial purposes, as defined in Section 19(d-5). It also allows the Board to impose a fine on a person who makes a false certification. This Section also requires the Board to respond to a request within 10 business days instead of 30.

This Section deletes the language that the Owner has the burden of proving that the request states a proper purpose.

5. Section 19(f) is amended to state that the Board may charge the requesting member the cost to make records available for inspection and the actual cost to reproduce the records.

765 ILCS 605/27(a)(ii): This Section is amended to state that if an association’s governing documents require the approval of any mortgagee or lienholder of record when amending the association’s governing documents, the approval is deemed given unless the mortgagee or lienholder delivers a negative response within 60 days after the association mailed the request. The request to the mortgagee or lienholder must be sent by certified mail.

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765 ILCS 605/31: 1. Section 31(a) now includes a definition for the phrase "combination of any units" as used in Section 31, to mean any 2 or more residential units to be used as a single unit which may involve exclusive use of a portion of the common elements which are adjacent to the combined unit, i.e. a portion of an adjacent common hallway.

2. Section 31(e) was added to provide that when units are combined if they are granted an exclusive right to use as a limited common element a portion of the common elements, which are not necessary or practical for use by any other Unit Owners, such a granting is not a diminution of the ownership interests of all other Unit Owners. Therefore, 100% Unit Owner approval is not needed.

3. Section 31(f) was added to provide that for an amendment pursuant to this Section to be effective all of the requirements of this Section must be met.

CASE LAW UPDATE 5510 Sheridan Road Condominium Association v.

U.S. Bank, 2017 IL App (1st) 160279 (1st Dist. 2017) Condominium Association filed a lawsuit under the Forcible Entry and Detainer Act against a bank who purchased a unit at a foreclosure sale.

The Association sent a demand to the bank seeking both pre and post foreclosure amounts, and the bank failed to promptly pay all of the assessments due after the sale. The Court held that Section 9(g)(3) of the Illinois Condominium Property Act did not create a timing requirement for the payment of current assessments. Rather, it merely outlined when the purchaser became responsible for the payment of post-sale common expenses.

Andersonville South Condominium Association v.

Federal National Mortgage Company, 2017 IL App (1st) 161875 (1st Dist. 2017) In this case, plaintiff, Condominium Association brought a forcible entry and detainer action against defendant, Federal National Mortgage Company (Fannie Mae). Fannie Mae filed an emergency

01.18

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motion for continuance of trial date but failed to appear for presentment of motion. As a result, the Court ordered the original trial date would stand, and at the bench trial, the Court entered judgment for the Condominium Association. Upon appeal, the Court held that “Fannie Mae,” which purchased condominium unit at the judicial foreclosure sale, was responsible for pre-foreclosure assessments, including delinquent late charges, by virtue of the fact that it failed to pay any post-sale assessments so as to confirm the extinguishment of the condominium association's lien on the unit.

Blackstone Condominium Association v. SpeightsCarnegie, 2017 IL App (1st) 153516 (1st Dist. 2017) Condominium Association brought an action against Unit Owner to recover for breach of contract by failing to pay assessments. The Appellate Court held that the Association was unable to recover attorneys fees under the Condominium Property Act in a breach of contract suit. Breach of contract is not a theory of recovery under the Condominium Property Act or the Forcible Entry and Detainer Act.

Board of Managers of Inverrary Condominium Association v. Karaganis, 2017 IL App (1st) 160271 (2nd Dist. 2017) This is a case between plaintiff, Association, and defendant, Unit Owner in regards to the defendants failure to pay common expenses.

Defendant filed a counterclaim relating to the maintenance of the common areas. The parties reached a settlement as to the counterclaim, and the issue turned to whether the plaintiff was entitled to attorney fees.

The Appellate Court held that Section 9-111(a) of the Forcible Entry and Detainer Act allows a condominium association to obtain judgment for possession of the premises, as well as money judgment. Moreover, Section 9-111(a) does not impose any particular limitations on an association’s mechanisms for enforcing its money judgment, and in regards to the reasonableness of attorney’s fees, defendant raised a number of defenses, however, the Appellate Court found that the defendant’s affirmative defenses were not relevant to the forcible entry and detainer action. Moreover, a condominium association’s failure to repair or maintain the common elements is not germane to the proceedings and cannot be raised as a defense. Thus, rejecting defendants contentions, the Appellate Court affirmed the Trial Court’s decision to award attorney fees as they are reasonable and just.

Chiurato v. Dayton Estates Dam & Water Company, 2017 IL App (3rd) 160102 (3rd Dist. 2017) Homeowners brought an action against a notfor-profit corporation for the corporation’s failure to rebuild the dam. The corporation was the developer of a residential association, the Declaration was amended to create a not-for-profit corporation known as the “Dayton Estates Dam & Water Company”. The newly created corporation was responsible for the maintenance of a dam and lake that was situated between the subdivisions known as Dayton Estates and Dayton Estates West. When the dam failed, the homeowners alleged that the corporation had breached the contract when it failed to rebuild the dam, and that the corporation’s board had breached its fiduciary duty when it failed to rebuild the dam. The Trial Court granted summary judgment in favor of the corporation and the homeowners appealed.

The Appellate Court held that there was no contractual obligation because under the subdivisions’ governing documents, there was no contractual obligation for the corporation to replace the dam, the governing documents only state the corporation is responsible for “maintaining the dam,” and thus, there is no breach of contract in the absence of a contractual duty. Moreover, the Court

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held that the corporation did not qualify as a “homeowners association” because the governing documents do not refer to the corporation as a “homeowners association” or a “common interest community,” and homeowners do not own the real estate owned by the corporation.

Lastly, the corporation’s board members did not breach their fiduciary duty. Homeowners alleged that the corporation’s board “failed to take the necessary steps to repair the dam.” However, as previously stated, there was no duty to repair, and the board took immediate action in regards to repairing and rebuilding the dam by hiring an engineer to do a study, contacting the Illinois Department of Natural Resources for specifications for newly constructed dams, and securing financing for engineering services. Thus, the fiduciary duty was not breached, and the Trial Court’s decision was affirmed.

Country Club Estates Condominium Association v.

Bayview Loan Servicing LLC, 2017 IL App (1st) 162459 (1st Dist. 2017) The Court held that 1010 Lake Shore required that purchasers submit prompt payment of postsale common expenses in order to terminate the lien. Otherwise, there would be no incentive for purchasers to promptly pay common expenses following a foreclosure, which would adversely impact condominium associations and their members. The determination of what constitutes prompt payment would depend upon the facts and circumstances of each case. The Appellate Court further held that to the extent that 5510 Sheridan Road seemed to imply that there was no timing requirement for the payment of post-sale common expenses, it was inconsistent with the binding Illinois Supreme Court decision in 1010 Lake Shore.

Gelinas v. Barry Quadrangle Condominium Association, 2017 IL App (1st) 160826 (1st Dist. 2017) This case arises from a dispute between Unit Owner, plaintiff, and Condominium Association, defendant, as a result of a fire that originated in Unit Owner’s unit and caused damage to the building including the common areas. The Association made a claim with the Association’s insurance and the claim was accepted. As a result, the Association received $192,000.00 to repair and replace the firedamaged property, and the $10,000.00 deductible was assessed to the Unit Owner. The final cost to repair and replace the fire-damaged property was $152,000.00, which resulted in a $40,000.00 surplus. The Unit Owner alleged that because of the surplus of funds, the Association was never permitted to assess a $10,000.00 deductible against him.

The Appellate Court affirmed the Trial Court’s ruling and found for the Association. The Court

reasoned that “the Association,” through unambiguous language, evidenced its intent to place the burden of payment on the Unit Owner for any amount not covered, or paid for, by insurance, whether that amount be in the form of a deductible, an amount in excess of the policy limits, or an amount for damages resulting from an occurrence for which the insurer denied coverage.”

The court then cited to Black’s Law Dictionary for the definition of deductible as “under an insurance policy, the portion of the loss to be borne by the insured before the insurer becomes liable for payment.” Therefore because, by definition, an insurer would never cover or pay for the amount of a deductible, because the insurer does not have a duty to pay the insured until the insured pays the deductible, the Unit Owner was responsible to pay the amount of the deductible. Thus, by definition, the amount of the deductible is always borne by the insured, which in this case is the Association.

Groves of Palatine Condominium Association v.

Walsh Construction Company, 2017 IL App (1st) 161036 (1st Dist. 2017) Plaintiff, Condominium Association, brought an action against defendant, general contractor, for alleged construction defects in construction of condominium buildings. Contractor filed a third party complaint against a limited liability company (“LLC”) that was an alleged continuation of corporate subcontractor. While the LLC chose to operate out of the same facilities, that does not transform it into a mere continuation of the corporation. Thus, the Appellate Court found that the LLC was not the continuation of the corporation such that it would be liable for the corporation’s actions and, consequently, the Trial Court properly dismissed plaintiff’s third-party complaint against the LLC.

In Re Application of the County Treasurer and Ex Officio County Collector of Jersey County, 2017 IL App (4th) 160707 (4th Dist. 2017) The issue on appeal was whether the trial court erred in dismissing the petitioners petition for the issuance of a tax deed. Assignee of tax purchase certificates filed petition for issuance of tax deed. The respondents whom each had an interest in the subject property, filed motions to dismiss the petition. The respondents both filed motions to dismiss claiming a marital interest in the property at issue “by virtue of a divorce” that was filed, which was consolidated with a foreclosure action involving the property “and a lis pendens” filed against the property.

The Appellate Court affixed the lower courts ruling. The Court ruled that a lienor may not obtain a tax deed and thereby cut off the interest of other lienors or mortgagees. The Court stated that

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although the Petitioners interest in the property began after January 1 of the year the taxes on the property were sold, the petitioner was precluded from petitioning for a tax deed because of its prior interest in the property. The Appellate Court found that the principle set forth in previous case law applies to the facts in the case at hand and affirmed the Trial Court’s ruling.

Jaworski v. Skassa, 2017 IL. App (2nd) 160466 (2nd Dist. 2017) This case presented a dispute between Unit Owners as to who owned garage space within a condominium association. Ultimately, the Trial Court resolved the issue by stating “what controls here legally is the plat of survey, which is incorporated into the deed.” The plaintiff, was advised of her right to appeal, but rather than appealing the Trial Court’s ruling, the plaintiff filed a complaint to quiet title to the garage. Defendant moved to dismiss the case arguing res judicata barred plaintiff’s action. The Trial Court granted defendants motion and the complaint was dismissed. Plaintiff appealed and the Appellate Court affirmed.

The Appellate Court found that, “quiet title action, brought by neighbor against garage owner, and filed after ownership of garage was granted to garage owner in a previous forcible entry and detainer action, was barred on the grounds of res judicata; although forcible entry and detainer action was a summary proceeding to adjudicate right to possession, it was a final judgment, and the question of garage's ownership was at issue in both the forcible entry and detainer action, and the quiet title action.”

Lake Point Tower Condominium Association v.

Waller, 2017 IL App (1st) 162072 (1st Dist. 2017) This case arises out of a Condominium Association bringing a forcible entry and detainer action against Unit Owner. The Association’s case was dismissed with prejudice by the Trial Court because they found the Board had failed to vote at an open meeting regarding whether to initiate legal action against defendant. In this case, the Association’s attorney commenced the action upon the direction of the Association’s management company.

The Association appealed the Trial Court’s ruling.

Upon appeal, the Association contends that the method used to initiate action against the defendant was proper.

The Appellate Court found that the Trial Court had abused its discretion by dismissing with prejudice the Association’s forcible entry and detainer action. The Association held an open meeting and voted to pursue action against defendant prior to the Trial Court’s ruling. Because of this fact, the court stated that the vote “eliminated unit owner’s

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basis for asserting the association had no authority to pursue collections litigation against her.”

Madden v. Scott, 2017 IL App (1st) 162149 (1st Dist. 2017) This case involves a dispute between a dominant estate condominium owner and a servient condominium owner regarding an express easement. Within the condominium association, Unit 50 and Unit 60 is adjoined by a vestibule area. Unit 60 is owned by the plaintiff. The front door to Unit

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60 is located within the vestibule, thus to enter through the front door of Unit 60, one must enter through and cross through the vestibule.

Defendant, Owner of Unit 50, obtained a permit to build a wall in the vestibule, said wall would restrict access to the front of Unit 60's door through the vestibule. The Trial Court’s ruling for the plaintiff was upheld by the Appellate Court, because the plaintiff had an implied easement.

The use of the vestibule was continuous and uninterrupted, as well as adverse. Furthermore, the

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Court was permitted to find an easement, either implied or by prescription, over vestibule area, despite the vestibule area being within a condominium unit. Although area was located within the boundaries of a servient condominium unit, it was located outside of the unit's living space, and was still an easement over real property.

North Spaulding Condominium Association v.

Cavanaugh, 2017 IL App (1st) 160870 (1st Dist. 2017) Condominium Association brought Forcible Entry and Detainer Action against condominium Unit Owners for unpaid assessments. Unit Owners filed counterclaim against the Association and a third-party complaint against the property management company. Unit Owners argued that in order to prove a prima facie case for recovery of unpaid assessments and for possession under the Forcible Entry and Detainer Act, the Association was required to prove that a meeting was held to consider whether or not to institute collection proceedings against the defendant, that a vote was taken during an open portion of that meeting, and that the Association gave defendant proper notice of said meeting within 48 hours before meeting commenced. Furthermore, defendants argued that Section 18(a)(9) of the Illinois Condominium Property Act (“Condo Act”) requires all meetings of the board of managers for a condominium association must be open to any Unit Owner with proper notice, and that all votes must be made at an open meeting. Lastly, defendants argued that in Palm v.

2800 Lake Shore Drive Condo, in order to pursue litigation a condominium association must show that it held a meeting, voted, and gave proper notice to Unit Owners.

Upon review, the Appellate Court stated that neither the Condo Act nor the Forcible Entry and Detainer Act require an Association to prove as an element of recovery that the litigation was authorized by a board vote at a properly noticed meeting open to all Unit Owners. In addition, defendants had issue with the attorneys fees awarded by the Trial Court. Specifically, that the fees awarded were improper and excessive. The judgment for possession was in the amount of $3,204.26, plus costs of $926.26, and attorney fees of $23,117.50. The defendants argued that the attorney fees sought by plaintiff were incurred defending the property management company, the third-party defendant.

The Appellate Court stated that the fees were not excessive, however, they were improper. The Association did not establish that it was entitled to recover attorney fees and costs incurred on behalf of the third-party defendant. Moreover, the Court stated that there is no language within the Condo Act or the Forcible Entry and Detainer act that expressly permits a party from recovering fees and

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costs incurred by a third-party defendant, and that neither Act contains a “prevailing party” attorney fees and costs provision. Thus, the Appellate Court affirmed the awarded attorney fees to plaintiff, but vacated the order granting attorney fees on behalf of the third-party defendant.

Siena at Old Orchard Condominium Association v.

Siena at Old Orchard, L.L.C., 2017 IL App (1st) 151846 (1st Dist. 2017) Plaintiff, Association, brought a claim against defendant, Developer and the board president for latent defects on the Common Elements. The Association’s Declaration provided for mandatory arbitration and for the parties to provide notice in order to begin the arbitration process. This provision sets forth the requirements for what an arbitration notice must contain. Initially, the plaintiff’s attorney sent a letter to defendant which in no way met the requirements set forth in the Declaration. Defendants argued that although the requirements were not specifically met, the plaintiff’s letter was sufficient to provide actual notice, and thus, begin the arbitration process. The Appellate Court found for the plaintiffs because the requirements within the Declaration were not met.

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Furthermore, The Appellate Court also found that while the plaintiff did not trigger the mandatory arbitration process, the plaintiff would still be required to submit its claims to arbitration, if not for the fact that the Association amended the Declaration prior and removed the arbitration section entirely. The Appellate Court found the Amendment to be invalid as it was inconsistent with the language in the Illinois Condominium Property Act “Act.” The defendant Board president’s amendment to the Declaration had inserted a term that is more onerous than the Act allows. Thus, the Appellate Court ruled for the plaintiff, and mandatory arbitration was not required.

Lastly, defendant, acting alone and within his position as Board president, had executed releases on behalf of the Association, which released and discharged defendant, developer. The Appellate Court found these releases to be invalid, as the Board president did not have the authority as required by the Association’s Bylaws. The Association’s Bylaws required a release to be approved by a majority of the directors at a meeting in which a quorum is present. Thus, the defendant was without the requisite authority.

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Sienna Court Condominium Association v.

Champion Aluminum Corporation, 2017 IL App (1st) 143364 (1st Dist. 2017) A Condominium Association brought an action against developer, architects, engineering firms, general contractor, material suppliers, and subcontractors, asserting claims for breach of implied warranty of habitability. The suit alleged defects in design and construction of the condo development. The Trial Court dismissed. Upon review by the Appellate Court, the Court found that the matter was properly dismissed for claims of breach of implied warranty of habitability, as such claims may not be asserted against design professionals and materials suppliers who did not actually perform construction work. A property owner is not barred from asserting a claim of breach of implied warranty of habitability against subcontractor of insolvent developer or general contractor. Court properly dismissed counterclaims of the condominium development's general contractor (which is insolvent and has been dissolved), as counterclaims were not asserted within a reasonable time after its dissolution.

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Timber Court, L.L.C. v. Cahnman, 2017 IL App (1st) 170356-U (1st Dist. 2017) (Unpublished Opinion) This case involved a two-building condominium complex with 72 residential units. 48 of the 72 units were not sold, and as a result were leased by the developer to tenants. An issue arose as to who is entitled to vote on behalf of the 48 leased units. As a result, the Trial Court ordered that no party was permitted to take an action that would “change the composition of the board.”

Intervenors, who consist of 18 individuals who own 16 of the 72 units in the complex, filed a “Motion to Lift Stay of Association Elections.” The motion was denied and intervenors appealed. The Appellate Court affirmed the Trial Court’s ruling because the court must first determine who has control of the Association and therefore the Trial Court did not abuse its discretion.

832 Oakdale Condominium Association v. McBride, 2017 IL App (1st) 151528-U (1st Dist. 2017) (Unpublished Opinion) Plaintiff, Condominium Association, filed a forcible entry and detainer action against defendant, Unit Owner. The Trial Court dismissed the action, without prejudice, for failing to comply

with the holding in Palm v. 2800 Lake Shore Drive Condominium Association, 2014 IL App (1st) 111290, which requires that the board of managers of a condominium association must vote at an open meeting to authorize the filing of a forcible entry and detainer action, without prejudice, against defendant. Here, the Association did not meet the requirements set forth in Palm and proceeded with filing a forcible entry and detainer without a proper vote. Thus, the Trial Court ordered that the forcible entry and detainer be dismissed without prejudice. Following this ruling, the Association appealed, however, the appeal was dismissed because the Trial Court order was “without prejudice” and therefore, not a final and appealable matter.

Adamek v. Honey Bee Homeowners’ Association, 2017 IL App (1st) 152442-U (1st Dist. 2017) (Unpublished Opinion) Adamek, a Unit Owner, sued the Association and the contractor hired to perform snow removal services for the Association, for the injuries Unit Owner sustained while exiting her vehicle in the parking lot. Unit Owner alleges that the Association, as well as the contractor were negligent in

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removing the snow. The contractor plowed the parking lot and shoveled snow from the sidewalks.

Contractor did not shovel or remove snow that had accumulated between the vehicles in the parking lot. Unit Owner alleged that the contractor had a duty to exercise reasonable care to maintain the parking lots premises in a reasonably safe condition. Unit Owner alleged that this failure to remove snow between the vehicles created an unsafe condition between the vehicles in the parking lot and these allegedly negligent acts were the proximate cause of her injuries. The Trial Court granted summary judgment in favor of the contractor, Plaintiff appealed.

On appeal, the Appellate Court affirmed the Trial Court’s ruling in favor of the contractor. The Appellate Court adopted the Trial Court’s reasoning that, the agreement between the contractor and the Association only required the contractor to plow the parking lot; the contractor was not required to shovel or remove snow from between the vehicles. Furthermore, the Appellate Court explained that, there was no evidence in the record to show the snow between the vehicles was the result of an unnatural accumulation. Thus, the ruling was affirmed.

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Astor Plaza Condominium Association v. Travelers Casualty and Surety Company of America, 2017 IL App (1st) 152546-U (1st Dist. 2017) (Unpublished Opinion) This case involves a declaratory judgment as to whether Merrimack Mutual Fire Insurance Company had a duty to defend and indemnify the Association under a directors and officers endorsement to an insurance policy. The Appellate Court affirmed that there was a duty to defend Mohen, Cochran, Krishnamurthi, and Loder (the officers and directors of the Association) under the directors and officers endorsement, however, there was no duty to defend the Association. The insurance policy states that Merrimack “will pay those sums that the “insured” becomes legally obligated to pay as damages.” “Insured” is defined as “all Directors and Officers” of the “Named Insured.” Thus, the policy did not cover the Association, only the Directors and Officers of the Association.

Bhutani v. Courts of Northbrook Condominium Association, 2017 IL App (1st) 162378-U (1st Dist.

2017) (Unpublished Opinion) The Association brought a forcible entry and detainer action against the Unit Owner for failure

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to pay monthly assessments. As a result, Unit Owner was evicted from his condominium. Over a year later, the Association had Unit Owner’s personal property removed from the Unit. Shortly thereafter, the Unit Owner was arrested and convicted for criminal trespass for entering the condominium. Unit Owner then filed a complaint against the Association for false arrest and imprisonment, breach of fiduciary duty, conversion of personal property, and replevin of personal property. The Trial Court dismissed all counts against the Association and an appeal followed.

The Appellate Court found that the false imprisonment claim was barred by the statute of limitations and correctly dismissed by the Trial Court. The claim of breach of fiduciary duty was also properly dismissed because it was barred by the doctrines of res judicata and collateral estoppel. Moreover, the underlying factual allegations plaintiff alleged were adjudicated in the forcible entry and detainer action. Additionally, the Association did not commit conversion by failing to return possession of the personal property to Unit Owner because it was abandoned, Unit Owner had ample time and opportunity to remove his personal belongings, but chose not to. Lastly,

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replevin may not be sought against Association because the Association is no longer in control of the Unit Owner’s personal property.

Dahn v. Regal Chateaux Condominium Association, 2017 IL App (1st) 152343-U (1st Dist. 2017) (Unpublished Opinion) This is a negligence case that arises out of a Unit Owner, who fell down a small flight of stairs outside the entrance to the building. The door knob to the main exterior door broke off when the Unit Owner attempted to pull the door open. As a result, the Unit Owner fell, suffered a subarachnoid hemorrhage, and died.

The Appellate Court affirmed the Trial Courts ruling because the plaintiff was unable to demonstrate that the defendant, Association, was negligent. Through fact finding and depositions, it was determined that there were no observations of unsafe conditions prior to the fall. Plaintiff alleged that the doorhandle had exceeded the duration of its life and it should have been replaced, and the failure to do so, resulted in the injury to plaintiff. However, the Court stated that because the structure was not obviously dangerous and had been used daily for an extended period of time

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and had proven adequate, safe, and convenient for the purposes to which it was being put, it may be further continued in use without the imputation of negligence.

Freemont Junction Condominium Association v.

Peisker, 2017 IL App (2nd) 151231-U (2nd Dist.

2017) (Unpublished Opinion) Defendant, Unit Owner, appealed the Trial Court’s ruling which entered a forcible entry and detainer judgment for the plaintiff. The defendant claimed in his appeal that the Trial Court erred (1) in not honoring his timely jury demand; (2) in finding that plaintiff had standing and the capacity to sue; (3) in allowing plaintiff to proceed without having filed its affidavit of service before the hearing date set forth on the summons served upon defendant. The defendant also argued that he was denied due process when the Court threatened, intimidated, and bullied him during the trial.

The Appellate Court affirmed the Trial Court’s ruling. First, regarding the jury demand, the Court found that the late jury demand was inexcusable as the defendant was over two weeks late in making his demand for a jury trial, and the defendant failed to demonstrate the lack of any incon-

venience or prejudice to plaintiff. Second, regarding plaintiffs standing and capacity to sue, the defendant argued that the Association lacked standing to sue because it had not been incorporated on November 4, 2004, the date when the restated declaration of covenants was transferred.

However, in this case, the Trial Court took judicial notice of a recorded document which indicated that the Association had a restatement of the declaration recorded on November 4, 2004.

Third, as for the affidavit of service, the Appellate Court stated that failure to return the summons or file proof of service does not invalidate the summons or the service. Lastly, in regards to the denial of due process, the Appellate Court found there was no violation as the defendant was given a bench trial, at which he was afforded ample opportunity to present his defenses, as well as, permitted to crossexamine the Association’s witness, the Court ruled on the merits of the case, and there was nothing in the record to validate the defendant’s claims he was intimidated, threatened, or bullied. For these reasons the Appellate Court affirmed the Trial Courts ruling.

Geraci v. Union Square Condominium Association, 2017 IL App (1st) 162856-U (1st Dist. July 17, 2017)(Unpublished Opinion) This appeal arises from an altercation on an elevator between plaintiff Holly Geraci and defendant Robin Di Buono. Mrs. Geraci's amended complaint charged Ms. Di Buono with battery based on this incident. She claimed the remaining defendants—managers and board members of the condominium association (Association Defendants)— breached fiduciary duties by failing to propound and enforce appropriate rules for dog handling that would have prevented the alleged battery. The Trial Court dismissed the Association Defendants under section 2–615 of the Illinois Code of Civil Procedure (Code). Ms. Di Buono filed her own counterclaim for battery and claim for intentional infliction of emotional distress (IIED). After a three-day trial, the Trial Court directed a verdict in favor of Mrs. Geraci on the IIED claim and the jury found Mrs. Geraci liable for battery, awarding Ms. Di Buono $275,000.00 for pain and suffering, emotional distress, and punitive damages. On appeal, Mrs. Geraci seeks review of the Judge’s decision to dismiss the claim for breach of fiduciary duty against the Association. The Appellate Court affirmed the judges decision reasoning

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that the Association Defendants cannot breach a fiduciary duty to prevent a battery that, per the jury's verdict, never occurred.

Geraci v. Cramer, 2017 IL App (1st) 151555-U (1st Dist. 2017) (Unpublished Opinion) On appeal, plaintiffs contend that the Trial Court erred because: (1) their complaint properly alleged demand futility as a prerequisite to their derivative action; (2) their complaint properly alleged individual claims for property damage and constructive eviction; (3) contrary to the Trial Court's ruling, shareholders are permitted to bring derivative actions against a corporation's lawyer; and (4) the action against the Association's attorney was not barred by any statute of limitations.

The Appellate Court affirmed the Trial Court’s ruling. First, as to the claim for demand futility and breach of fiduciary duties, the plaintiffs needed to plead facts relating to the manner in which the alleged erroneous decisions were reached. In the case at hand, plaintiffs failed to do so, and as a result, the Court presumed that the Board had acted in good faith and with due care. Next, the Court dismissed any claims against individual members of the Association for breach of fiduciary duty. In the case at hand, the Association was the client, and the

plaintiffs did not have an attorney client relationship with or owe a duty to the individual members of the Association. Without a fiduciary relationship, there are no fiduciary duties and no basis for a cause of action alleging breach of fiduciary duties.

Lastly, the Court addressed whether the claims were properly time barred by the statute of limitations. The Court found that Mr. Geraci possessed sufficient information to reasonably put them on inquiry notice, and when a plaintiff has sufficient information to be on inquiry notice, the statute of limitations begins to run. Thus, the plaintiff’s claims were time barred.

for summary judgment. In opposition, Tower filed a request for additional discovery, which it supported with affidavits from the president of Tower’s board of directors and from Tower’s property manager. The request for additional discovery was denied by the Trial Court. The Appellate Court upheld the Trial Court’s decision because the affidavits provided by Tower in support of their request for additional discovery did not meet the requirements of Supreme Court Rule 191. Specifically, the affidavits failed to state that the material facts regarding the intentions of the parties when negotiating the easement agreement were known by the affiant chosen for the affidavit.

Museum Pointe Condominium Association v. Tower Residences Condominium Association, 2017 IL App (1st) 152929-U (1st Dist. 2017) (Unpublished Opinion)

Newport Condominium Association v. Blackhall Corporation 401(k) PSP, 2017 IL App (1st) 161629-U (1st Dist. 2017) (Unpublished Opinion)

This is a case between two condominium associations in regards to an easement between the two. Museum Pointe, the plaintiff, owned the servient parcel, and Tower, the defendant, owned the dominant parcel. Museum Pointe filed a complaint against tower for violating the easement agreement by allowing garbage trucks that weigh more than 6,000 pounds to use the easement parcel. Additionally, Museum Pointe filed a motion

The plaintiff, Association in this matter was awarded possession of the property in question for unpaid assessments. Subsequently, Blackhall (defendant), was permitted to intervene as a mortgagee.

Blackhall obtained a quitclaim deed in lieu of foreclosure. Blackhall contended that as a mortgagee they had no duty to pay any portion of the unpaid assessments prior to taking possession of the Unit.

The Association responded by stating that there was

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a lien on the property arising from unpaid assessments and by receiving the quitclaim deed to the property, Blackhall was responsible for satisfying the lien amount. The Trial Court, entered judgment in favor the of Association for possession of the subject property, as well as unpaid assessments, attorney fees, and costs. This decision was upheld by the Appellate Court as Section 9(g)(1) and 9(g)(3) of the Condominium Act set forth the procedure to extinguish a lien on any unpaid assessments incurred by the previous property owner.

Nuchjare v. Barrington Square V, 2017 IL App (1st) 152332-U (1st Dist. 2017) (Unpublished Opinion) Plaintiff brought a negligence claim after plaintiff slipped and fell on snow while walking on the common elements of a townhome complex. The Trial Court issued summary judgment in favor of defendants and denied plaintiff leave to amend her complaint to add a breach of contract claim. Upon appeal, the ruling was affirmed. The Appellate Court, found that the Trial Court did not abuse its discretion in denying her leave to amend her complaint.

RRRR, Inc. v. Plaza 440 Private Residences Condominium Association, 2017 IL App (1st) 160194-U (1st Dist. 2017) (Unpublished Opinion) Plaintiff, restaurant operator, brought a claim against defendant, condominium association. The plaintiff and defendant shared space within the same building. The plaintiff leased street-level commercial space within a mixed-use high-rise building.

The plaintiff’s space is not part of the condominium property. Defendant hired a contractor to perform repair work on the facade of the building, the work required that a protective canopy be placed on the sidewalk in front of plaintiff’s business, and as a result, prevented plaintiff from offering sidewalk seating. Plaintiff brought a breach of contract claim and a tortious interference claim against defendant.

In regards to the breach of contract claim, the Appellate Court upheld the Trial Court’s ruling that the plaintiff lacked standing. The plaintiff does not own any of the parcels of the property and is not a party to the Sub-declaration. However, plaintiff contended that even though it does not hold fee simple ownership of the first floor retail property, it holds a leasehold interest under the Subdeclaration and combined with the Landlord’s interest, to equal a fee simple ownership.

The Appellate Court disagreed with plaintiff

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because plaintiff failed to present any case law to establish that a lessee holds any portion of the title as an owner of real estate in fee simple. A tenant leasehold interest does not equal a fee simple, or any portion thereof. Moreover, the Sub-declaration has a provision which explicitly states that it is not intended to benefit non-parties, such as the plaintiff. Plaintiff then alleged in its appeal that it held an interest because it was in privity of contract with the Landlord. The Appellate Court did not address this as it was first brought up upon appeal.

Because this argument was not raised in the Trial Court, the argument was forfeited. Thus, the plaintiff did not have standing.

Next, in regards to the tortious interference claim. The Appellate Court found that the plaintiff did not establish that the defendant acted intentionally with the purpose of injuring the plaintiff’s expectancy. The Sub-declaration required defendant to perform repair work on the facade, thus, the defendant was justified in doing so.

Saluja & Saluja, LLC v. Park 1500 Lofts Condominium Association, 2017 IL App (1st) 162328-U (1st Dist. 2017) (Unpublished Opinion) Plaintiff, Saluja, owns ground-floor commercial space and brought a claim against defendant, con-

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dominium association, demanding that the association was obligated to add plaintiff as an additional insured on the Association’s insurance policy. The Declaration states that upon Owner request, the Owner shall be a named insured on the policy and shall pay one (1%) of the cost of insurance. The association denied plaintiff’s request to be a named insured because the insurance taken out by the association did not cover commercial property. Subsequently, the plaintiff brought an action seeking a declaratory judgment that the association was obligated to add it as an additional insured. However, there is a section in the Declaration that sets forth a 120-day limitation period to enforce any right under the Declaration.

Based on the timing of the action, the Trial Court dismissed plaintiff’s case with prejudice as it found the 120-day provision barred the claim.

Upon appeal, plaintiff contended that the claim is subject to the 10-year statute of limitations period for written contracts, rather than the 120day provision, and that the Declaration is a “continuing contract” such that each denial of insurance coverage establishes a fresh claim. The Appellate court disagreed and found that the language of the contract was clear to establish a 120-day limi-

tation period for “actions to enforce any right” under the agreement. Moreover, the Court disagreed with plaintiff’s “continuing contract” argument as it is inapplicable to claims for breach of contract unless the contract involves continuous performance. Thus, the court affirmed the Trial Courts judgment dismissing the complaint as time-barred.

Sarkisian v. Bahramis 2017 IL App (1st) 161483-U (1st Dist. 2017) (Unpublished Opinion) Plaintiff, Unit Owner, brought a declaratory judgment action against defendant, Owner of a different unit, asserting that plaintiff possessed a superior right of first refusal concerning the sale of two additional units. The Association’s Declaration provides that, “The Unit Owner contiguous to the Unit to be sold shall at all times have the first right and option for a ten-day period to purchase such Unit Ownership, and if there are two Unit Owners contiguous to the Unit to be sold, the Unit Owner whose Unit has less square feet area shall have the first right and option to purchase for a ten-day period, and the larger Unit Owner shall have the Second right and option to purchase for a ten-day period.”

The parties agreed that defendant’s Unit 17 had less square footage than plaintiff’s Unit 8, however, plaintiff contended that he possessed the superior right because his Unit 8 occupied less square footage than the combined total square footage of defendant’s Units 15 and 17. Defendant maintained that his right was superior because his Unit 17 had less square footage than plaintiff’s Unit.

Ultimately, the issue before the Appellate Court was whether the rule articulated in the Declaration applies to the square footage of a unit individually, or the combined square footage of all contiguous units belonging to a single owner. The Court cited to Black’s Law Dictionary which defines a “unit” as a singular thing of any kind, and does not contain any language which would support plaintiff’s contention that the square footage of multiple units should be combined.

Furthermore, the Court stated, “the relevant provision of the Declaration reads that the first right and option to purchase belongs to “the Unit Owner whose Unit has less square feet area.” It does not read, “the Unit Owner whose Units have less square feet area.” Thus, the Appellate Court affirmed the Trial Court’s ruling in favor of the defendant. Y

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