CondoLifestyles

APRIL 2017 | VOLUME 21 | NUMBER 1

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

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Technology Serves Associations Better and Faster With Less Stress FEATURES...

F LY I N G L E S S O N S :

Drone Technology is On the Horizon FUNDING YOUR FUTURE:

Predicting and Budgeting Your Association’s Repairs and Improvements Navigating the Issue of Medical Marijuana Smoke Causing a Nuisance to Others

BEWARE OF DISCRIMINATORY COVENANTS AND RULES:

Associations and the Fair Housing Act

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table of contents

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COVER STORY

03 Technology Serves Associations Better and Faster With Less Stress

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

09 Flying Lessons: Drone Technology is On the Horizon

By Pamela Dittmer McKuen

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BOARD BASICS

11 Funding Your Future: Predicting and Budgeting Your Association’s Repairs and Improvements

By Michael Shifrin, Esq. 14 Industry Happenings Compiled by Michael C. Davids & Sherri Iandolo 20 From the Editor 21 Directory Advertisements L E G A L U P D AT E

28 Navigating The Issue Of Medical Marijuana Smoke Causing A Nuisance To Others

By Howard Dakoff and Nicholas Bartzen EVENT HIGHLIGHTS

30 MCD Pool Party featuring Condolympics L E G A L U P D AT E

33 Beware of Discriminatory Covenants and Rules: Associations and the Fair Housing Act

by Bob Prince M A N A G E M E N T TA L K S

36 The 10 Best Ways to Improve Community Living

by Salvatore Sciacca, S P E C I A L F E AT U R E

38 Update on Short Term Rentals in Chicago

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COVER STORY

by Pamela Dittmer McKuen

Technology Serves Associations Better and Faster With Less Stress Drones may be on the cutting edge of technology, but other marvels have elevated the service levels of association professionals and contractors. Everyone is getting more information in less time and with greater ease. That leads to smoother-running communities and contented board members. (And fewer headaches for management!) Here is a sampling of what’s happening tech-wise in the Chicagoland area and how it’s working out: Buildings That Diagnose Themselves Buildings and their mechanical systems are increasingly intelligent and easier to maintain. Perhaps the most significant protocol is the Building Automated System, or BAS. It’s a term that refers to a computerized system that ties together and controls a building’s heating, ventilation and air conditioning components.

Modern BAS can also control indoor and outdoor lighting, security systems and fire alarms.

“It’s a more accurate way of control,” said Lawrence Puder, technical operations manager at Community Specialists in Chicago. “An engineer can look at a computer screen in the office or bring it up on a phone with an app and see what the problem is. If a boiler shuts down, he can troubleshoot it or switch boilers to maintain the heat, and he can do it electronically rather than manually. Or he’s got a head’s up on what to look for when he gets there.”

Most newer buildings, especially those

constructed after 2000, are equipped with BAS technology. Retrofitting is pricey.

“What we generally suggest with older buildings is as they replace older equipment to make it BAS-compatible, so they can integrate it later into one system,” Puder said.

Elevators, too, often are becoming smarter and safer. The can even direct traffic to reduce logjams. One system, designed for large, heavily populated buildings with multiple cabs, enables users to request a particular floor on a touch pad before they enter a cab.

The system responds with the cab number of the next one headed in that direction.

“Elevator modernization programs are flat-out astounding,” Puder said. “They have graphic displays, and some let you know the bus schedules and weather conditions. Basi-

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CONDO LIFESTYLES

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cally, it’s a pretty open market and you can pick and choose what you’re looking for. It all comes down to do I want to buy a Chevy or a Cadillac?”

Automated building access systems allow residents to enter by entering personal identification numbers onto a touch screen. Guests use the same touch screen to signal their arrival to a specific resident. The system then calls residents on their smartphones, and guest and resident can converse, similar to Skype or Facetime. Photographic images are captured each time the touch screen is used.

Although designed with security in mind, Puder doesn’t believe such access systems will replace the need for door personnel.

“The technology is in place, but people like the human touch,” he said.

Technology In The Field Engineers, architects and other contractors have a wide array of technology options to augment their jobs. The good news is, although some of these devices and options have been around a while, they are becoming

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more accurate and less expensive.

Take a look: Ground-penetrating radar, which is similar to an ultrasound machine used in medicine, allows operators to see what is beneath the Earth’s surface or within dense walls.

GPR is useful for tasks such as locating water and sewer lines buried underground or in concrete. Mark Waldman, president and professional Y Shown here is sample control screen for a Building Automated System (BAS) for and structural engineer at Waldman HVAC equipment.

Engineering Consultants in nology to identify areas of moisture under a Naperville, recently employed the technology roof membrane that had recently been to look for the presence or absence of reinreplaced in a west suburban condo tower. The forcing steel in a concrete block wall. water actually was coming through the “People are building more and more on masonry walls and not the new roof system. swamp areas, which are susceptible to sinkDigital moisture meters measure the holes,” he said. “Ground-penetrating radar amount of moisture content in a material. helps us identify areas that have large incluThey usually are used in conjunction with sions to prevent that kind of disaster.” infrared cameras, said Delph Gustitus, founder Infrared cameras create thermographic and architect at BTL Architects in Chicago. images that show temperature variations, Borescopes are tiny cameras on the end which could be indicative of water penetraof a flexible cord, similar to those used for tion or air leaks. Waldman used the techendoscopies and colonoscopies.

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COVER STORY

“They allow us to look inside a wall without a lot of destructive damage,” Gustitus said.

Digital imaging software is a surveying technology that scans a surface or landscape and creates a point-cloud of data. It can detect tiny cracks in a wall and map slight contours of terrain.

“We can scan the facade of a building to know what the present conditions are relative to a benchmark,” he said. “Then we can scan again after the work is done and see if it has moved and by how much. You can overlay these two point-clouds, and it’s just magical.”

As an example, Waldman used digital imaging before and after performing foundation underpinning work on a 7-unit building that was sinking.

Gustitus and his team are experimenting with tablet computers and digitizing information on worksites. They can do inspections, make notes directly onto elevation drawings— rather than making field notes and inputting them back at the office—and key in progress photos.

Y Drone technology can provide aerial views of a property and provide helpful information to those responsible for property maintenance and repairs.

“It’s all changing so fast, and we are finding the tools are becoming much easier to use,” he said.

minimize the amount of time we have to spend looking for answers,” he said. “But everything starts with a detailed visual inspection.”

Not Replacing Visual Inspections Yet

Simple Technology Can Be Helpful Too

The advances are great resources, but operators must be trained to use the various technologies, and they are not applicable to every situation, Waldman said.

“They help you identify problems and

And sometimes, the simplest strategies are best.

“When we don’t have access to a wall or can’t do a binocular inspection, smartphone cameras are so good, we put them on a selfie-

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CONDO LIFESTYLES

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photo credit: Delph Gustitus

Shown here is an infrared scan of a wall, looking for temperature differences that can provide a hint of where water leakage may be occurring.

stick and open the window,” Gustitus said.

And despite the advances in computeraided design software, he occasionally creates architectural drawings by hand.

Day In The Life Of A Manager One of the bigger techies in the association industry is Dan Haumann, president and community association manager at Advocate Property Management in Naperville. He spent

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20 years in the field of internet technology before launching his company 11 years ago.

He is a software development specialist, a national speaker and technology consultant.

“When I got into this industry, I felt it was a little behind in the adoption of technology,” he said. “I wanted to do my part to drive the industry.”

Not too long ago, managers typically arrived at board meetings carrying thick binders

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and boxes full of files. They wrote out to-do lists on yellow legal pads. If anyone asked a question, the stock response was, “I’ll get back to you on that” because they had to check on a contractor, assessment account or work order first.

“It was really clunky, just having to manage all that paper,” said Jacqueline Abraham, regional manager for Lieberman Management Services in Chicago. “It was a lot of work for managers and took them away from their day-to-day operations and things they should be concentrating on.”

“It was an inefficient process,” Haumann said. “In the past year or so, we have made managers more mobile. That means laptops, smartphones, tablets with cellular connectivity, GPS, camera. Combine that with the software we have, and they do their jobs anywhere.”

Advocate and Lieberman managers today can walk a property, snap photos and immediately send out progress reports, violation notices, work orders and more. They can show contractors what they are looking at via Skype or Facetime and discuss the details in real time rather than emailing photos or videos

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back and forth at another time.

“A lot of times, time is of the essence, like when there is a water leak,” Abraham said.

“Using technology during an inspection is helpful because we can identify the problem and quickly get the staff involved via text or email. They also have smartphones and tablets.”

“It all goes back to being more timely and providing more detail,” Haumann said. “Ultimately, we end up delivering faster for the customer because we can do work much faster.”

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Advocate also uses video-conferencing to connect the three office locations. With a television monitor and camera in each office, training sessions and contractor presentations can be shared with everyone at the same time.

Hi-Tech For Associations, Too Technology that makes managers’ jobs more efficient and allows them to do more is bound to reflect on better service to their client associations. Cloud storage enables

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managers to carry thousands of documents, photographs and videos in their pockets. They can look up an owner’s account, answer a question about rules, send electronic checks to the treasurer to sign and accept a digitized signature. While doing inspections, they can within seconds email or text others who are critically involved.

“Technology has been revolutionary,” Abraham said. “We’ll probably be doing even more in less time several years from now.”

Coming up, Lieberman is rolling out virtual rooms, which can be shared in real time, along with video, files and photographs.

“That will be invaluable, especially when we’re dealing with emergency situations, to be able to have a meeting on the fly,” Abraham said.

“We see video of board meetings as ultimately the way to get better participation,” Haumann said. “We can webcast a meeting so that anybody in an association who didn’t feel like going out that night can still see what’s happening on their phone or laptop. Or they can sit on their couch and learn about electronic voting and ask questions without leaving the comfort of their homes.”

The dawn of electronic voting in annual elections is upon us, but so far few associations have awakened. Adaption has been slow, according to managers.

“A lot of our associations have adopted rules to start with electronic voting but haven’t done it yet,” said Abraham. “The rules have to be adopted 120 days before the election, so that’s our big initiative for 2017.”

Haumann said he has challenged his managers to bring one association each to electronic voting this year.

“It will take a lot of adjusting,” Abraham said. “I think it will be better received in communities with a younger demographic. For the first couple of years we have to do a hybrid.

Some boards want to start online and see if they can make a quorum. They’re just feeling it out, for sure.” Y

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

by Pamela Dittmer McKuen F LY I N G L E S S O N S :

Drone Technology Is On The Horizon While Nik Clark was taking aerial photographs at a four-story community association, the manager mentioned she needed to find out how badly the gutters were clogged. Clark navigated his DJI Phantom drone above the perimeter of the building and showed her images on his smartphone as it flew. She had her answer.

“

T

hat saved her having to get the maintenance staff or a contractor with a ladder to inspect the gutters,” said Clark, a partner at Milwaukee-based Superior Reserve Engineering and Consulting.

More and more, association professionals and contractors are incorporating technological advances in their workdays. Computer hardware and software, electronic devices, cloud storage and instant communication are streamlining hundreds of large and small tasks or performing them entirely. As a result, more work is being done with less time and money and with profound accuracy.

The technology can be dazzling, but it is not without its limitations and cautions.

Condo Lifestyles checked in with several techsavvy industry pros in the Chicago area to learn how the technology is working for them:

Drones: Looking Skyward Clark and his crew call in their IDJ Phantom, acquired in May 2014, most frequently for roof inspections. The drone produces high-definition, 14-megapixel, real-time imagery while operators are standing on the ground.

“Sometimes the chimney caps look great from

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04.17

the ground,” Clark said. “Then we get the drone images and see they are all rusted.”

In his view, drones could help managers scout out rules violations in hard-to-view areas like upper balconies and fenced-in patios.

“It raises some privacy issues in associations, but I assume you could write in the bylaws these things are for compliance,” he said.

Mark Waldman, president and professional structural engineer at Waldman Engineering Consultants in Naperville, is looking forward to launching its new drone.

“We don’t have a project we feel comfortable it would save us a lot of time and energy on,” he said in early March. “That technology will definitely impact the cost of doing business because we won’t have to take the lift out to do discrete balcony or roof inspections. We can just fling the drone. It still will not replace hands-on inspections,

CONDO LIFESTYLES

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but if we need to do a large project, it will give us the ability to work more rapidly and more easily in terms of accessing some of these locations.”

Drone capability is both amazingly expansive and frustratingly limited. It can locate a lost child or crumbling chimney in record time, but the best battery holds a charge for only 30 minutes. Its inspections are limited to the visual. A drone can identify a bowed wall, but can’t tell if the mortar joints are loose or what’s behind them.

“It doesn’t substitute for physical presence, but it does help you use your resources, so you can decide when to make a physical presence,” Clark said.

But flying a drone is not as simple as flying a kite. For one, the Federal Aviation Administration, which considers a drone to be an “unmanned aircraft system,” or UAS, has jurisdiction over the devices. Like every government entity, the FAA has a thick rule book.

Hobbyists have an easier time with the feds than commercial operators. Recreational flyers of lightweight drones must follow a few safety precautions, such as staying clear of airports, but they can pretty much unpack the box and launch their flying machines.

For commercial operators like Clark and Waldman, the regulations are more arduous. Operators must pass an aeronautical knowledge test, earn a Remote Pilot Airman Certificate and be vetted by the Transportation Safety Administration. The aircraft must be registered with the FAA. “I think our engineer studied for six months for that license,” Clark said.

Additional rules for commercial operators include: Aircraft cannot weigh more than 55 pounds: Aircraft must be within sight of the operator at all times: Aircraft must be flown under 400 feet, during daylight hours and no faster than 100 miles per hour: Aircraft cannot be flown over people or from moving vehicles. Waivers may be given in certain circumstances. (For more information on UAS regulations, visit www.faa.gov/uas/.)

“There are a lot of no-fly zones,” Clark said. “In Washington, D.C., where we have a lot of clients, the software in the drone won’t even let you fly there.”

With the 400-foot height limit, cameraequipped drones can’t reach the upper floors and roofs of buildings over 40 stories max. That knocks out their potential for many high-rise facade inspections, such as the ones required by the City

of Chicago. Those days are in the future. Or maybe not.

“The resolution and control are making leaps and bounds, so I expect to see more of that,” said Lawrence Puder, technical operations manager at Community Specialists in Chicago. “The City of Chicago allows some visual inspections from various positions. Binoculars are only good about 10 stories. Anything above that is hit or miss, so you still have to get up onto a balcony or sundeck to get to the upper portions. That’s where a drone could be useful, but it still doesn’t quite get the same thing as a guy on a scaffold with the building right in front of his face.”

Looking further ahead, if flying rules were expanded, is Dan Haumann, president and community association manager at Advocate Property Management in Naperville.

“I could see instead of going out to a property, you could conceptually send a drone out there,” he said. “Maybe you wouldn’t take a property beyond a certain distance because the drive time for managers to get there is too long. If you do inspections with a drone instead of having to be there, that could extend the geographic reach of what a management company is willing to take on.” Y

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BOARD BASICS

by Michael J. Shifrin, Esq. - Kovitz Shifrin Nesbit F U N D I N G YO U R F U T U R E :

Predicting and Budgeting Your Association’s Repairs and Improvements need to be levied during the fiscal year.

Reasonable Reserve Account Funding

All community associations require routine maintenance, repairs, and replacement over time to ensure they remain in good condition. The task of ensuring the Association retains sufficient funding to pay for this maintenance, repair and replacement work falls squarely on the shoulders of the Board of Directors. Balancing the Association’s financial and maintenance needs is a critically important responsibility every Board grapples with.

T

he first and easiest way to ensure an Association has proper funding is to address the community’s operational expenses. Generally speaking, these are the fixed expenses the Association incurs every year to maintain the community. Expenses associated with paying contractors to perform various maintenance services such as snow

removal, landscaping, utility maintenance, insurance coverage and the like are relatively predictable year in and year out. Boards budget for these planned expenses by forecasting their operational costs, which are based upon previous year’s expenses. A thoughtful budget reduces the likelihood that a special assessment or amended budget will

Secondly, Section 9(c)(2) of the Illinois Condominium Property Act (“Act”) requires any budgets adopted by a Board to provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the Common Elements. A reserve account or reserve fund is a savings account in which funds are held for large scale repair or replacement projects. To determine the amount of reserves appropriate for an Association, the Board must take into consideration the following 5 factors: 1) the repair and replacement cost, and the useful estimated life, of the property which the Association is obligated to maintain, including struc-

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tural and mechanical components, surfaces of the buildings and common elements, energy systems and equipment; 2) the current and anticipated return on investment of association funds; 3) any independent professional reserve study which the Association may obtain; 4) the financial impact on unit owners, and the market value of the condominium units, of any assessment increase needed to fund reserves, and 5) the ability of the Association to obtain financing or refinancing.

While each association’s Declaration typically contains a provision governing the purpose and use of Association reserve funds, generally speaking, they can be used to pay for emergencies (e.g. unforeseen common area structural problems, clubhouse roof leaks) or for long-term capital improvement projects (e.g. replacing all community sidewalks or fencing, façade repairs, roof replacements).

Funding an Association’s reserve account and maintaining it at a suitable level, relative to the size of the community and the common element property components, is a vital fiduciary responsibility of the Board of Directors. Part of serving on a Board requires board members to consider the well-being of the community months and even years into the future, perhaps even beyond their own time living in the Association. Adopting a long term perspective while planning a reserve account to fund future capital improvements is necessary to ensure the community prospers for years to come.

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Capital improvements also refer to the addition of new common element property not previously installed upon completion of the community. Common element additions

may include solar panels, building a new club house, pool, adding a tennis court, or constructing a community dog park.

Both the cost of a capital improvement project and the reason the funds are being spent must be evaluated to determine the Board’s authority, if any, for funding the project and the proper procedure that must be followed to legally spend Association funds.

For example, a condominium Board may adopt a special assessment for purposes of raising funds to perform maintenance and repair work to a deteriorated Common Element property component by majority vote of the Board at a properly noticed open Board meeting. However, if the special assessment exceeds 15% of the sum of all regular and special assessments payable during the preceding fiscal year, the Board (upon written petition by unit owners with 20 percent of the total vote delivered to the Board within 14 days of the Board vote), must call a membership meeting within 30 days of the date of delivery of the petition to consider the special assessment. If a majority of votes of the unit owners are cast to reject the special assessment, it is rejected. If not, it is ratified.

Funding Options On the other hand, if a condominium Board wishes to adopt a special assessment for purposes of raising funds to install, for example, a new community dog park, the Board needs to obtain the approval of at least two-thirds of the total vote of all unit owners before being able to levy the assessment and begin raising the funds. Given the numerous reasons a community association board may wish to use reserve funds or levy a special

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BOARD BASICS

assessment, it is imperative that a presiding Board obtain proper advice and counsel from its lawyer or law firm to ensure it has authority to use or raise the funds and is following the proper procedure in doing so.

Additionally, capital improvement projects may be funded in numerous ways. Such options include, but are not limited to: adopting a special assessment, drawing upon reserve funds, borrowing against reserve funds, or qualifying for and obtaining a loan from a bank. Each of these financing vehicles trigger different legal requirements the Board must consider and have certain advantages and disadvantages that must be carefully weighed by the Board before a decision is made. As such, it is critical for a Board to consult with experts before making a decision of this magnitude that will impact its community for years, if not decades to come.

Reserve Study Worth considering is a reserve study, which may be obtained by hiring any number of reputable engineering firms within the

industry. A comprehensive reserve study serves as a savings roadmap for a Board of Directors to follow.

It outlines the various property components within the community, describes the current condition of those components and their remaining expected useful life. It then provides a recommended annual dollar amount the Board should be setting aside in its reserve to ensure it has sufficient funds to pay to repair or replace that property component once it reaches the end of its useful life. While not an exact science, a reserve study is a useful tool any Board can use as a measuring stick to determine if its reserve funding is on track or way outside the recommended guidelines and in need of correction.

Follow Through Predicting and budgeting for future maintenance, repair and replacement work

also known as capital improvements is an art that takes time, requires input from numerous experts within the industry and takes planning. That being said, completing such projects can be an enjoyable and rewarding experience for Boards and their communities if they take the time and invest the effort to plan, prepare, communicate and follow through with the ever evolving needs of their community. Y

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industry happenings Cervantes Chatt & Prince P.C. Marc Cervantes and Kristen Lunny have joined Chatt & Prince effective March 1, 2017. The firm will now be named Cervantes Chatt & Prince P.C. and will now have two offices, adding a Downtown Chicago Office at 111 W. Washington, Suite 1201. Marc and Kristen will predominantly work out of the Chicago Office.

Mr. Cerbantes and Ms. Lunny come from Cervantes and Cioffi, a firm that concentrated its practice in commercial and residential real estate transactions and contract negotiations as well as the representation of landlords and condominium associations. They bring

with them a tremendous amount of experience in property related matters and will act as additional resources for our clients.

Marc Cervantes joins the firm as a Partner and Shareholder. He graduated from Indiana University in 1997.

In 2000, Marc earned his law degree from St. Louis University School of Law. After completing law school, Marc worked as an Assistant State's Attorney in the Office of the Cook County State's Attorney Bureau of Criminal Prosecutions. Later, he entered private practice as a real estate attorney, eventually starting his own firm and later forming Cervantes and Cioffi LLP. He is a member of the American Bar Association, Illinois State Bar Asso-

ciation and Chicago Bar Association. He is an Auxiliary Board Member of the Big Shoulders Fund, which seeks to provide funds to underprivileged schools.

Kristen Lunny joins the firm as an Associate. She graduated cum laude from the University of Florida in 2009, with a degree in Political Science and History. In 2012, Kristen earned her law degree from Saint Louis University School of Law. She began her law career with the City of Chicago's Law Department in the Buildings and License Enforcement Division, giving her a tremendous amount of experience on code violation matters. She joined Cervantes and Cioffi in 2015 as an Associate.

Since joining the firm, she has concentrated her practice in a wide-array of real estate matters, including landlord/tenant and real estate closings.

Hillcrest Property Management Hillcrest Property Management is pleased to formally announce that Mindy Maggio is now co-owner of the company along with Joel Garson. Joel will remain involved with Hillcrest to ensure continuity, while Mindy will be responsible for supervising the overall administration of the company. The rest of the Hillcrest staff will remain in place with one major change. The company also announced the promotion of Scott Millard to the position of Executive Vice President of Hillcrest Property Management.

After starting the company 45 years ago, Joel has enjoyed watching the company grow. “Hillcrest has been like my second family and I’m so thankful for all of the people that have helped us become who we are today,” Garson said.

After building the company over the years, he wanted to make sure that Hillcrest would be in the best hands for continued success and Mindy Maggio brings to the table over 23 years of experience in the community association industry. Joel and Mindy both share in the belief of fostering a professional and happy workplace while providing clients with exceptional service.

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Y Pictured from left to right: Scott Millard – Executive Vice President, Mindy Maggio – CEO/Co-Owner, Scott Schlemmel – Vice President of Client Services, Joel Garson – Chairman of the Board/Co-Owner, Jennie Jensen – Vice President of Financial Services

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All material herein is copyrighted 2017©.

INDUSTRY HAPPENINGS

Chicagoland Community Management

ACTHA

Chicagoland Community Management, Inc. recently announced that they have been named managing agent for 3950 North Lake Shore Drive Condominium Association located in Chicago’s Lakeview East community.

The structure was built in 1956 by architectural firm Shaw, Metz, and Dolio, recipients of the “Excellence In Architecture” award issued by The CHICAGO CHAPTER OF AMERICAN INSTITUTE OF ARCHITECTS and the CHICAGO ASSOCIATION OF COMMERCE AND INDUSTRY. The 660 unit, 23 floor residential high rise features three towers, connected by a beautiful lobby with floor to ceiling windows.

The property is surrounded by attractively landscaped gardens and residents enjoy lakefront living, parks, and recreation along iconic Lake Shore Drive. Property features include on-site management and maintenance staff, 24 hour door service, fitness room, storage rooms, newly renovated sundeck, receiving room, dry cleaners, and heated indoor parking. The Association is currently governed by nine participating Board members and several participating committee members.

Atica Sabovic was recently assigned as the Property Manager for 3950 Lake Shore Drive Condominiums. Atica began her career in the property management industry over 18 years ago and has been with Chicagoland for 14 years. The announcement was made by President of Chicagoland Community Management, Wiliam C. Demille. DeMille stated, “We are proud of Atica’s accomplishments and glad to have her apply her knowledge and expertise in this new role. Sabovic added, “I have enjoyed my nine years at another Hi Rise on Chicago’s lakefront and am excited about the opportunity to be of service at 3950.

Chicagoland Management also announced that they have been named as managing agent for Castle Rock Home Owners Association in Schaumburg as of March 1, 2017.

Built in 1986, Castle Rock is comprised of 204 units and features a clubhouse and outdoor swimming pool. The property manager for Castle Rock is Janet Monahan. DeMille said “We are glad to welcome both new clients to their growing portfolio of managed Associations.”

HH

ACTHA recently held its 2017 Spring Conference on Saturday, April 8 from 8:00 am – 4:00 pm at Drury Lane in Oakbrook Terrace. The former trade show format was re-invented into a receptionstyle networking session that provided uninterrupted time for commercial members and association attendees to develop and strengthen relationships in a relaxed atmosphere.

The conference also featured a peer group exchange called “The Association Exchange” that encouraged attendees to discuss related issues within their own peer groups. “The Commercial Exchange” allowed vendors to discuss industry trends and share best practices on how to succeed in the community association market.

Seminar topics for the conference included relations between boards & vendors, cultivating owner involvement, financial tips, attorney’s role at meetings, the new legal framework for board meetings and board communication.

ACTHA will also hold a conference in Chicago on Saturday September 9 from 8:00 am – 1:00 pm at University Center and another conference on Saturday, October 14 from 8:00 am – 1:00 pm at the NIU Naperville Conference Center. For more information on ACTHA seminars and other upcoming events, visit: www.actha.org/event

industry happenings

HEIL & HEIL I NSURANCE A GENCY

LLC

Andrew Fullerton Property Insurance Specialist

847-530-3888 BUSINESS / HOME / AUTO / LIFE 847-866-7400

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04.17

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industry happenings Property Specialists, Inc. Cathy Ryan has been named President of CAI Illinois chapter. Ms. Ryan is President of Property Specialists, Inc. (PSI), one of Chicagoland’s largest community association management companies with responsibility for over 200 associations. PSI has been managing community associations since 1970 and has offices in Rolling Meadows and Woodridge. PSI is an Accredited Association Management Company (AAMC), the highest designation awarded by CAI‘s national organization and recently was recognized by the BBB for over 10 years as an accredited business. PSI is a charter member of the Advisory Board of Condo Lifestyles magazine (1996) and has been a guest speaker and author on many commu-

nity management topics for various industry groups.

Cathy joined CAI in the late 1990’s and has been an active member attending all CAI national and local conferences, CEO retreats/meeting and most local CAI programs. She maintains CAI’s CMCA and AMS professional designations and earned the PCAM designation (CAI’s highest designation for managers) in 2013. Ms. Ryan has served as Co-Chair of CAI’s Finance committee, Treasurer of the CAI Board of Directors, PresidentElect (2016) and was elected President at the CAI Conference in Rosemont on February 24th, 2017.

Property Specialists also announced that Brittany

Ryan has been promoted to Account Executive, joining PSI’s senior staff and overseeing a number of the company’s property managers. She is also a vital part of PSI’s marketing department and she serves as Chairperson of CAI Illinois chapter’s Marketing Committee.

Condolympics Fundraising Champs Thank you to everyone who participated in Condolympics 2017. This year’s event raised over $6500 and leading the way in our fundraising efforts again was Property Specialists, Inc. MCD Media wanted to share with you how PSI approached their efforts this year.

“Since the founding of our company, PSI has always maintained our commitment to not only our clients, but the sense of family instilled within the greater community. We are a management company with a heart, and our employees reflect this on a daily basis, said PSI President Cathy Ryan. Like clockwork, every year at MCD’s CondOlympics you will see the PSI family out in force. “While everyone loves taking a half day and play-

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ing darts or shooting pool (let’s face it – we all need a break once in a while), it’s our commitment to supporting Special Olympics that makes this event such a draw for our staff.” Two months before the event, PSI starts raising money from our staff using fun programs such as this year’s PSI Bingo which netted over $4,500 in donations. “After selling bingo cards to our employees we called numbers every day. Once someone got a bingo they were entered into a drawing for a free vacation day, and the game reset. The daily drawing quickly became a highlight of our workday, with some frustrated staff buying even more cards after coming only a number away from winning the previous round.” Who would

04.17

have thought bingo was such a full contact sport?

Ryan continued, “While PSI Bingo was a fun new concept for 2017, it’s still the warm feeling we get when we know that PSI once again surpassed our fundraising goal for Special Olympics. This worthy cause is easy for all of us to rally behind and support. Giving back to and being part of the community helps bring us all together, regardless of industry rivalries. It binds us in our spirit of compassion.”

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INDUSTRY HAPPENINGS

IREM Chicago Four Chicago area commercial real estate professionals and two leading companies were honored for excellence and outstanding contributions to the industry March 3 at the 13th Annual IREM Chicago Premier Awards and Casino Night.

These four professionals earned individual Premier Awards in their respective categories: • Nick Picerno, CPM®, General Manager at JLL -CPM® of the Year • Victor Jones, ARM®, Watermark Property Management -- ARM® of the Year • Jeremy Weisbach, CPM®, Newcastle Retail Management -- Leadership Award • Paul Petrulis, ARM®, Lieberman Management Services -- Rising Star Two companies that provide products and services to the metropolitan Chicago property management industry earned awards in their respective categories.

• Lieberman Management Services, AMO®, of Chicago, IL -- Property Management Company of the Year • Beverly Snow and Ice, Inc., of Markham, IL – Industry Partner of the Year The gala event, held at Chicago’s historic Drake Hotel, drew more than 200 for an evening of food and beverage, casino games, camaraderie, and of course, recognition for the winners in six Premier Awards categories.

IREM Chicago 2017 President Angela Aeschliman, CPM®

Y Shown here is a group from Lieberman Management Services and 2016 President Brian Lozell, CPM®, served as cohosts. Mike Lanning, CPM®, IREM 2017 national President, and Lynn Disbrow, Interim Chief Executive Officer/Chief Operating Officer, were among those in attendance.

A total of 19 nominations were submitted for consideration during the 2017 competition.

The Premier Awards were created to recognize people, organizations and companies for excellence in areas that include innovation and technology, energy conservation, community involvement and leadership, property management, vendor services and embodying the core principles of the ARM® and CPM® credentials.

Founded in 1953, IREM Chicago Chapter 23 has nearly 700 members who are charged with managing office, industrial and multifamily properties throughout met-

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All material herein is copyrighted 2017©.

04.17

Y Shown here (from left to right) are: Angela Aeschliman, CPM® – 2017 President – The Missner Group, Judy Ziner, CPM®, John Santoro & Carla Young Kennedy – Lieberman Management Services, Jeremy Weisbach, CPM® – Newcastle Retail Management, Paul Petrulis, ARM® – Lieberman Property Management, Victor Jones, ARM® – BR Property Management, Nick Picerno, CPM® – Jones Lang Lasalle, Alex Straughn & Beverly Snow & Ice – Tom Marsan - Beverly Snow & Ice. ropolitan Chicago. The Chapter works to keep members informed on safety standards, legislative activities and other issues that have an impact on commercial real estate property management. And, it provides members with industry education, opportunities for community service, job referral services and guidance for candidates seeking to earn IREM industry designations.

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industry happenings Associa Chicagoland Associa Chicagoland’s Schaumburg office is at the same location at 50 E. Commerce Drive but it’s been so drastically remodeled that the guests at the February 1, 2017 open house didn’t even recognize it. More than 150 clients, industry partners, vendors, and local team members marveled at the new modern design and efficient use of space.

“We had so much wasted space in the old office and it wasn’t up-to-date or serving the needs of our employees in the most effective ways,” said Associa Chicagoland Director of Business Development Erica Horndasch. “We upgraded everything from the exterior and the lobby to the open workspaces, conference rooms, and offices and even got a brand new kitchen and restrooms. We’re so happy to open our doors and let our business associates see the new state-of-the-art facility we have here.”

The Schaumburg office is one of three Associa Chicagoland locations. The others are downtown and in Plainfield.

Associa Chicagoland is pleased to announce it has been chosen to manage Cedar Run Homeowners Corporation. The branch will begin full service management with on-site staff in April. Located in Wheeling, Ill., Cedar

Run is a diverse neighborhood consisting of 408 units with a total of 11 condominium associations. Associa will partner with the corporation to manage the common areas and recreational facilities of the community.

Located close to shopping and dining, with easy access to the expressway, Cedar Run features a clubhouse, pool, playground, walking paths and two ponds.

“Cedar Run is a wonderful addition to our management portfolio,” said Associa Chicagoland President Stephanie Vittas Skelley, CMCA, AMS. “We look forward to working with the board of directors and residents at this community. Our goal is to deliver unsurpassed management services and we are proud to add Cedar Run to our growing Chicagoland client base.”

RealManage RealManage, which specializes in homeowner association and property management services, announced in January 2017, the official rebranding of both Caruso Management Group and ALMA Property Management Services to RealManage Illinois. Both companies became part of the RealManage family in 2015 and have since successfully transitioned onto the company's platform.

"My decision to become part RealManage has created a dynamic new path forward for ALMA. RealManage is a company that prioritizes high standards, ethics, and respect for family. They are innovative, customer service driven and fully transparent in all aspects of community association management. I am proud to be part of RealManage and know that our communities will receive the highest level of service. We are a company that cares about our services and our homeowners." states Andrea Sorgani, President of the RealManage Illinois Schaumburg Branch (formerly known as ALMA Property Management Services).

"Integrating Caruso Management Group and ALMA Property Management Services into the RealManage family has been a terrific addition for our company. We are excited about continuing to serve our wonderful clients in Illinois and growing our operations under the leadership of some of the best industry veterans," states Chris O'Neill, Chief Executive Officer.

The RealManage operating history goes back more than 25 years through our various acquisitions and branch operations. The brand and vision was initially conceived in 2002 and launched in 2004 with our initial acquisition of a highly successful property management company in Austin, Texas. Since then we have grown rapidly through other acquisitions and branch openings across the country to rank as one of the top ten HOA management companies in the nation.

ABOMA

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

Y Shown here are some of the board members for ABOMA at their recent event.

The Apartment Building Owners and Managers Association of Illinois held their Manager’s Night Out event on March 16th at Athena Restaurant in Chicago. At the meeting ABOMA announced their events for the remainder of 2017:

Condo & HOA Representation

+Educational Seminar, afternoon function with networking, East Bank Club, Thursday, June 22, 2017

Corporate • Real Estate • Litigation • Wills Personal Injury

+SPECIAL EVENT, early evening function at Chicago Sports Museum, September 14, 2017 +80th Annual Meeting, noon function, University Club of Chicago, Friday, December 1st, 2017

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

847-593-5595 18

CONDO LIFESTYLES

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industry happenings

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INDUSTRY HAPPENINGS

COMMUNITY ADVANTAGE President of COMMUNITY ADVANTAGE® Peter Santangelo is pleased to announce two new additions to their team, Matt Hall and Kim Myles.

Mr. Hall, officer - relationship manager, is responsible for business development and portfolio management for condominium, homeowner and townhome association clients throughout the Midwest. He received a Bachelor of Arts degree in communication from Western Illinois University in Macomb, Illinois. Prior to joining COM- Y Matt Hall MUNITY ADVANTAGE, Mr. Hall started his banking career over six years ago as a teller, working his way up to senior commercial underwriter with multiple Wintrust Community Banks.

Kim Myles, vice president – relationship manager, is responsible for business development and portfolio management for condominium, homeowner and townhome association clients throughout Maryland, Virginia, and Washington, D.C. Ms. Y Kim Myles Myles attended Eastern Michigan University in Ypsilanti, Michigan and majored in finance and economics Prior to joining COMMUNITY ADVANTAGE, Ms. Myles worked in the mortgage lending area for 12 years and has 20 years of sales and relationship management experience in technology solutions uniquely designed for financial services.

“I believe that Matt and Kim will be a great addition to the COMMUNITY ADVANTAGE team and will contribute to our continued success,” said Mr. Santangelo. “Their banking experience demonstrates the depth of knowledge which we really value.”

Waldman Engineering Waldman Engineering announced that one of their engineers, Lee N. Smith recently on completed and passed his Professional Engineering (PE) exam. Mr. Smith is a graduate of Western Illinois University, and completed his MS degree in Structural Engineering at Bradley University. His expertise on technical support and specification development for structural issues has been invaluable in his time with WEC.

MCD Golf & Bocce Outing

MCD Showcases the Races The annual MCD Showcases the Races event will be held on August 24th at Arlington International Racecourse.

For more information visit www.condolifestyles.net. You can view photos from past years MCD Showcases the Races events at Facebook.com/MCD Media.

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All material herein is copyrighted 2017©.

The MCD Golf & Bocce Invitationalwill be held on July 14, at Eaglewood Resort in Itasca, IL. For more information visit www.condolifestyles.net. You can view photos from past years MCD Golf & Bocce outing events at Facebook. com/MCD Media.

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From the Editor CondoLifestyles

W

®

APRIL 2017 | VOLUME 21 | NUMBER 1 Editor & Publisher Michael C. Davids Vice President Sherri Iandolo Art Director Rick Dykhuis Special Events Coordinator Mary Knoll Contributing Writers Pamela Dittmer McKuen, Jim Fizzell, David Mack, and Cathy Walker Circulation Arlene Wold Administration Cindy Jacob and Carol Iandolo Condo Lifestyles Magazine is published quarterly by MCD Media, a wholly owned subsidiary MCD Marketing Associates, Inc. For editorial, advertising and subscription information contact: 935 Curtiss Street, Suite 1A, Downers Grove, IL 60515. 630-932-5551 or 630-202-3006.

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

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

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

All material herein is copyrighted 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.

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hile winter was relatively mild, the weather much of this spring has been wet and unseasonably cool. Not only is this type of weather somewhat depressing, it causes difficulties for those involved with exterior maintenance, repair and improvement Y Mike Davids projects. Spring signals many types of growth and can be an exciting time. We recently had some more moderate weather with sunny days. Hopefully we will have fair weather on a consistent basis over the coming months so we can enjoy as well as be productive in the outdoors.

Our cover story is on how technology is helping managers, architects/engineers and others responsible for community associations. There are a host of amazing advances in technology available today that can provide conveniences and efficiencies for building management, operations and maintenance as well as for residents in their homes. However, technology can be expensive and sometimes requires a significant initial investment. So you should not feel like you have to have the latest and greatest of everything that is available. Rather, each association should consider what is best for their current situation and what they can afford right now.

Our second story continues our discussion on technology. More specifically, this article delves into drones and how they can be used to assist in property inspections and other supervisory tasks. While drones can save time and be helpful in many ways, there are obvious concerns about privacy. There are also some other limitations of drones such as short battery life and the extensive training required to actually fly one.

Our Board Basics column features some great insight on budgeting and funding future capital improvements. For those who are undertaking restoration, replacements or any type of significant project that involves contracting products and/or services, this article should be particularly helpful. Of course, one of the best things any association can do is to have and keep current a professional reserve study that addresses the current condition, remaining useful life and future expenses associated with their common elements.

For those who choose professional management, finding the right fit between an Association Board and their manager(s) is always an essential aspect of a successful community. This issue features an article in our Management Talks column that offers a discussion and suggestions on ways to improve the working relationship between management and a Board of Directors.

We have two legal update articles in this edition. One article addresses the issue of medical marijuana smoke causing a nuisance to others. A second article from the legal area suggests that community association boards should have their governing documents reviewed for “old” language that, although unintended, might be construed as discriminatory and a possible violation of The Fair Housing Act. Leasing of units within community associations continues to be a hot topic. The seemingly unstoppable growth of Airbnb, VRBO and other short term leasing businesses has had a significant impact on many Chicago condo buildings. We’ve provided an update on some of the most important rules, regulations and laws relating to short term leasing that you should be aware of. You’ll definitely want to check with your association’s attorney on this matter to determine your best course of action.

Inside this issue we again offer our regular Industry Happenings column and highlights from various special events. A special thank you to everyone who attended our Condo Lifestyles’/Condolympics event on March 10th. This year’s event raised over $6500 in donations for Special Olympics Illinois.

Upcoming MCD special events include our annual golf & bocce outing, which will be held on July 14 at Eaglewood Resort and a luncheon in the Million Room at Arlington International Racecourse on August 24. If your association(s) has a special need or challenge, there will be a variety of experts specializing in community association issues including many members of our advisory board who will attend these events. MCD special events provide a terrific forum for association leaders to get questions answered, meet new vendors, share a story idea, or socialize with other volunteers and professionals.

Thanks to the many new subscribers that have found our publications 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 find subscription information at www.condolifestyles.net We encourage you to take this opportunity to make your association and your community all it can be.

If you have an idea that would benefit other Community Associations, a success story to share, or some advice on how to avoid a problem or failure, please call our office at 630-932-5551. You can also send us an e-mail (mdavids@condolifestyles.net). Y

Michael C. Davids Editor and publisher

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SERVICE DIRECTORY

ACCOUNTANTS

ARCHITECTS/ENGINEERS

ATTORNEYS

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

ENGINEERING SUPPORT SERVICES 630-904-9100

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

ANNUAL ACCOUNTING SERVICES: Audits Reviews Compilations / Income Taxes

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

MONTHLY SERVICES: Collection of Assessments Paying of Bills Monthly Financial Statements

www.canteycpa.com

CONDO CPA (630) 832-2222 EXT 113

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

CERTIFIED PUBLIC ACCOUNTANTS

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

www.fullcirclearchitects.com

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

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 Like Contact Delph Gustitius www.btlarchitects.com

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

ATTORNEYS

BALCONY REPAIR

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

THE RESTORATION GROUP (630) 231-5700 Structural Repair Services Balcony Repair/Replacement Stair Tower Repair/Replacement Fire and Water Response/Restoration dwells@trgrestore.com www.trgrestore.com

BANKING ALLIANCE ASSOCIATION BANK (888) 734-4567

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

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

www.frapc.com

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Howard Dakoff / hdakoff@lplegal.com www.lplegal.com

24 HOURS

www.dicklerlaw.com

www.waldmaneng.com

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

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

WALDMAN ENGINEERING CONSULTANTS (630) 922-3000

KOVITZ SHIFRIN NESBIT (855) 537-0500

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

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

CODER TAYLOR ASSOCIATES (847) 382-4100

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

FULL CIRCLE ARCHITECTS, LLC (847) 432-7114

CONTACT BRAD SCHNEIDER Brad@CondoCPA.com

Legal Representation for Community Associations www.kmlegal.com

04.17

CONDO LIFESTYLES

21

CONDO LIFESTYLES

BANKING

BUILDING RESTORATIONS

DOORS

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

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

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

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

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

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

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

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

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

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

MUTUAL OF OMAHA BANK (866) 800-4656

DOOR SYSTEMS 1-800-THE-DOOR

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

QUALITY RESTORATIONS (630) 595-0990

HOA Banking • Internet Cash Management HOA Loans • Online Payment Services www.mutualofomahabank.com

www.doorsystems.com

www.smartelevatorsco.com smartin@smartelevatorsco.com

RIGGIO/BORON LTD. (847) 531-5700

SUBURBAN ELEVATOR CO. (847) 743-6200

BASEMENT WATERPROOFING

A Total Exterior Facade Restoration Company www.RiggioBoron.net

THE REAL SEAL, LLC (847) 756-7987

Simplifying Vertical Transportation Contact: Max Molinaro www.suburbanelevator.com

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

austinwerner@therealsealllc.com

Tuckpointing, Caulking, Masonry and Concrete Restoration

BUILDING RESTORATIONS

CONCRETE

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

HOLTON BROTHERS, INC. Masonry Repair Services, Tuckpointing, Caulking and Concrete Restoration

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

SUNDEK OF ILLINOIS (847) 392-3939 We resurface concrete We remove & pour concrete Waterproof Membranes Pool Decks • Balconies • Rooftops Shower & lLocker Rooms “The Only 1 Stop Service since 1967” jake@sundekofillinois.com www.Sundek.com

CONCRETE RAISING

LMC CONSTRUCTION 708-714-4175

CRC CONCRETE RAISING & REPAIR (847) 336-3400

Masonry Concrete General Contracting Roofing www.LMCTeam.com

ENERGY SOLUTIONS CENTERPOINT ENERGY SOLUTIONS (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

We Save Concrete, You Save Money! www.SaveConcrete.com

22

CONDO LIFESTYLES

04.17

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

All material herein is copyrighted 2017©.

SERVICE DIRECTORY

FACILITY MAINTENANCE

FIRE SAFETY & PROTECTION

GOVERNING DOCUMENTS

SP+ FACILITY MAINTENANCE (773) 847-6942

CONTECH MSI CO. (847) 483-3803

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.

HOMEWISE DOCS (773) 936-3270

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

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

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

USA FIRE PROTECTION (224) 433-5724

24 Hour Service HVAC • Industrial Refrigeration Service/Maintenance • Systems Integration Energy Management • Electrical Process Piping • Plumbing www.amsmechanicalsystems.com

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

www.emcortmi.com

www.usafireprotectioninc.com

FLOORING

FIRE SAFETY & PROTECTION

LEWIS FLOOR & HOME (847) 835-2400

EMCOR SERVICES TEAM MECHANICAL FIRE PROTECTION DIVISION (847) 229-7600

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

EMCOR SERVICES TEAM MECHANICAL (847) 229-7600

www.trgrestore.com

www.chicagofirepumptest.com

HVAC

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

THE RESTORATION GROUP, LLC (630) 870-0658

CHICAGO FIRE PUMP TESTING (773) 609-1510

Construction / Maintenance / Painting Electrical / Snow Removal "No Job Too Big or Too Small"

www.genesisconstruction.com

www.responseteam1.com

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

service@midproservice.com / www.midproservice.com

GENESIS CONSTRUCTION, INC. (847) 895-4422

RESPONSE TEAM1 (847) 891-2929

HANDYMAN/MAINTENANCE

PARAGON MECHANICAL, INC. (847) 321-9428 CHICAGOLAND’S HIGHEST RATED TECHNICIANS Heating | Cooling | Domestic Hot Water Refrigeration | Tankless | Boilers | RTUs | IAQ

SERVICE | INSTALLATION | MAINTENANCE

www.Lewisfloorandhome.com

www.pmcomfort.com

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

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

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

All material herein is copyrighted 2017©.

04.17

CONDO LIFESTYLES

23

CONDO LIFESTYLES

HVAC

LANDSCAPE CONTRACTORS

MAILBOXES

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

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

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

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

www.alanhorticultural.com

H V A C CLEANING BROUWER BROS. STEAMATIC (708) 396-1444 All types of environmental cleaning. www.BrouwerBrothers.com

Since 1989

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

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

INSURANCE

COMMUNITY ASSOCIATION INSTITUTE OF ILLINOIS (847) 301-7505

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

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

www.landscapeconcepts.com

PAINTERS

SEBERT LANDSCAPING, INC. (630) 497-1000

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

SEMMER LANDSCAPE (708) 926-2304

XFINITY COMMUNITIES 1 (800) XFINITY

ABC DECO (773) 701-1143

gsemmer@semmerlandscape.com

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

info@abcdecoonline.com www.abcdecoonline.com

LAWN CARE

ZOOM CONNECTS (844) YOU-ZOOM

ABBOTT PAINTING, INC. (312) 636-8400 (773) 725-9800

SPRING-GREEN LAWN CARE (800) 830-5914

Internet That Just Works www.zoomconnects.com

www.spring-green.com

LANDSCAPE CONTRACTORS

LOCKSMITH

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

NONSTOP LOCKSMITH (312) 929-2230

CONDO LIFESTYLES

ABOMA1@aol.com www.aboma.com

actha@actha.org | www.actha.org

INTERNET TECHNOLOGY

24

ABOMA (312) 902-2266

Association of Condominium, Townhouse and Homeowners Associations

www.sebert.com

Professional Landscaping and Snow Removal www.acresgroup.com

NON PROFIT/EDUCATION

www.iltvignocchi.com

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

Nancy Ayers www.condorisk.com

www.MailboxWorks.com

ACTHA (312) 987-1906

ILT VIGNOCCHI (847) 487-5200

HOLLINGER SERVICES, INC. (847) 437-2184

ALLIANT/MESIROW INSURANCE SERVICES (312) 595-8135

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

Quality Painting & Decorating since 1973 Our Mission: Guaranteed Committment to Quality Now offering Parking Lot Painting www.Abbottpainting.com

Locksmith Services, Intercom & Access Control Systems, CCTV, Overhead Garage Doors www.nonstoplocksmith.com 04.17

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

All material herein is copyrighted 2017©.

SERVICE DIRECTORY

PAINTERS

PEST CONTROL

PROPERTY MANAGEMENT

CERTAPRO PAINTERS OF THE NORTH SHORE (847) 989-4791

ALL-OVER PEST SOLUTIONS (773) 697-1100

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

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

Bed Bug Specialists. Results Guaranteed! www.all-overpest.com

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

HOMETOWN PAINTERS, INC. (847) 870-1600

PLUMBING

COMMUNITY SPECIALISTS (312) 337-8691

DRAPER AND KRAMER INC. (312) 346-8600

LIFELINE PLUMBING (847) 468-0069

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

Contact Ian Novak

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

Construction / Maintenance / Painting Electrical / Snow Removal "No Job Too Big or Too Small"

PROPERTY MANAGEMENT

service@midproservice.com / www.midproservice.com

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

ACM COMMUNITY MANAGEMENT (630) 620-1133

www.ppdpainting.com

www.acmweb.com

PARKING GARAGE CLEANING

ADVOCATE PROPERTY MANAGEMENT (630) 748-8310

Contact Tom Skweres

SP+ (773) 847-6942

www.draperandkramer.com

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

www.habitat.com

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

FIRSTSERVICE RESIDENTIAL (312) 335-1950

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

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

DUBOIS PAVING CO. (847) 634-6089

MORE LIVING. LESS WORRYING.

www.communityspecialists.net

www.hometownpainters.com

PAVING

www.chicagopropertyservices.com

Contact Asa Sherwood

www.fsresidential.com

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

info@duboispaving.com www.duboispaving.com

www.gd-pm.com

BAUM PROPERTY MANAGEMENT, AAMC (630) 897-0500

SP+ (773) 847-6942

G&D PROPERTY MANAGEMENT (630) 812-6400

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

Contact Mike Baum MikeB@BaumProp.com

www.hillcrestmgmt.com

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

www.BaumProp.com

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

CHICAGOLAND COMMUNITY MANAGEMENT (312) 729-1300

LIEBERMAN MANAGEMENT SERVICES (847) 459-0000

Asphalt Paving & Sealcoating / Concrete www.TwinBrosPaving.com

www.chicagoland-inc.com

www.liebermanmanagement.com

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

All material herein is copyrighted 2017©.

04.17

CONDO LIFESTYLES

25

CONDO LIFESTYLES

PROPERTY MANAGEMENT

PROPERTY MANAGEMENT

RESERVE STUDIES

KANE PROPERTY MANAGEMENT CORP. (773) 472-2300

WERK MANAGEMENT (630) 241-0001

SUPERIOR RESERVE ENGINEERING & CONSULTING (888) 688-4560

For All Your Property Needs www.werkmanagement.com

Professional Property Management. Affordable Rate.

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

www.superiorreserve.com

KaneManagement.com

RAILING INSTALLATION

ROOFING

MCGILL MANAGEMENT, INC. (847) 259-1331

FORUM GROUP 773-871-0212

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

Manufacturing and installation of aluminum railings

www.mcgillmanagement.com

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

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

REAL ESTATE TAX ATTORNEY ELLIOTT & ASSOCIATES (847) 298-8300

www.nimrodrealty.com

ADAMS ROOFING PROFESSIONALS INC. (847) 364-7663

www.elliottlaw.com

PROPERTY SPECIALISTS INC. (847) 806-6121 (630) 633-5450 WOODRIDGE OFFICE

KSN TAX (847) 537-0500

www.psimanagement.net

www.KSNLaw.com

ROLLING MEADOWS OFFICE

REALMANAGE (847) 517-4400

Concentrating in Property Tax Appeals since 1976

www.mmbtaxlaw.com

REALTY & MORTGAGE CO.

SARNOFF BACCASH (312) 782-8310

COMMUNITY ASSOCIATION MANAGEMENT

773-989-8000

WORSEK & VIHON LLP (312) 368-0091

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

26

CONDO LIFESTYLES

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

www.wvproptax.com

CSR ROOFING CONTRACTORS (708) 848-9119

RESERVE STUDIES

All Types of Roofing Installation, Repairs & Maintenance www.csr-roofing.com

RESERVE ADVISORS, INC. Our Reserve Studies Now Include ForeSite™

(312) 625-4958 Custom, Comprehensive Studies Conducted by Professional Engineers www.reserveadvisors.com Long-term Thinking.

Everyday Commitment.

04.17

Roofing, Siding & Windows www.aaexs.com

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

Property Tax Attorneys www.sarnoffbaccash.com

1509 W Berwyn Chicago IL 60640 Contact: Hugh Rider www.RealtyMortgageCo.com

www.sudlerchicago.com

ALL AMERICAN EXTERIOR SOLUTIONS (847) 438-4131

MCCRACKEN MCCRACKEN BEHRENS (312) 263-4308

www.realmanage.com

SUDLER PROPERTY MANAGEMENT (312) 751-0900

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

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

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

All material herein is copyrighted 2017©.

SERVICE DIRECTORY

ROOFING

SNOW REMOVAL

SIDING / RENOVATIONS

MI CONSTRUCTION AND ROOFING (630) 241-0001

THE WINTER WERKS (630) 241-0001

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

www.mancioneinc.com

www.mancioneinc.com

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

PROHTOP ROOFING (847) 559-9119

TRICON GROUP, INC. (847) 410-2846

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

Snow Removal, Pressure Washing, Parking Lot Sweeping/Maintenance, Concrete, Irrigation www.triconsnow.com

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

ACCESS MEDIA3 630-230-0555

SWIMMING POOLS

www.accessmedia3.com

SPMS (630) 692-1500

RCN (312) 955-2322

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

rcnchicagoapts@rcn.net www.rcn.com

TREE CARE

XFINITY COMMUNITIES 1 (800) XFINITY

ACRES GROUP (888) 231-1300 / (847) 526-4554 Certified Arborists & Certified Tree Care Safety Professionals www.acresgroup.com

SIDING / RENOVATIONS

SITE MAINTENANCE, INC. (847) 697-1077 www.sitemaintinc.com

D-WING CONSTRUCTION (630) 397-8889

SECURITY SERVICES

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

ADMIRAL SECURITY DOOR STAFF SOLUTIONS (847) 588-0888

www.insideoutcompany.com

U S SECURITY SERVICES (877) 340-1835

MIDWEST PROPERTY SERVICES, INC. 630-656-1000

Safe - Secure - Friendly ssiegel@ussecurityassociates.com www.ussecurityassociates.com

Siding & Gutters / Wood Replacement Welding & Railings / Snow Removal "No Job Too Big or Too Small"

service@midproservice.com / www.midproservice.com

SP+ (773) 847-6942 dnicholson@spplus.com www.spplus.com/facilityMaintenance No part of the publication may be reproduced whatsoever without written consent from the publisher.

All material herein is copyrighted 2017©.

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

WASTE SERVICES LAKESHORE RECYCLING SYSTEMS (773) 685-8811 www.LakeshoreRecyclingSystems.com

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

www.admiralsecuritychicago.com

SNOW REMOVAL

TV-BULK CABLE & SATELLITE

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

PERFECT SIDING 773-732-3051 Installation of siding 04.17

CONDO LIFESTYLES

27

CONDO LIFESTYLES

by Bob Prince, Cervantes Chatt & Prince P.C. Beware of Discriminatory Covenants and Rules:

Associations and the Fair Housing Act Associations in Illinois are bound by the Fair Housing Act (federal law) and the Illinois Human Rights Act (state law). These laws are meant to protect people from discrimination based on a number of protected classifications, such as race, color, religion, sex, familial status, national origin and handicaps and disabilities.

C

ondominium associations are obligated under the Condominium Property Act to accommodate those with handicaps and disabilities and are prohibited from adopting rules and regulations that infringe on religious practices. However, even if there was not specific language in the Condo Act, the Fair Housing act and the Illinois Human Rights Act would require condos, master associations and common interest community associations to act accordingly.

28

CONDO LIFESTYLES

Discrimination comes in many forms, from action to inaction and from spoken words to written words. Explicit and direct statements are the most glaring forms of discrimination. Attorneys cringe when their boards make statements that could be interpreted as being discriminatory, such as “we do not want those people here” when talking about Section 8 tenants who all happened to be African-American within the association.

Another commonly heard statement is “we

04.17

have to stop these kids from terrorizing our association” when referring to kids playing on common elements. Damage control becomes the name of the game.

It is likely that most associations have never had a claim filed against them for violation of the Fair Housing Act or the Illinois Human Rights Act. Unfortunately, many of those fortunate associations have covenants in their declaration or bylaws and have adopted rules and regulations which are discriminatory and which could lead to liability. A covenant, bylaw or rule is discriminatory if it singles out a protected class of people. It is also discriminatory if it has an uneven impact on a protected class (often called a disparate impact). It is unusual for an association’s governing documents to openly target a protected

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

All material herein is copyrighted 2017©.

L E G A L U P D AT E

class. However, some associations have egregiously discriminatory provisions still on their books - this author has seen a covenant prohibiting African-Americans from living in an association. Generally, when we see violations, an association has provisions or practices that have a discriminatory impact on a protected class of people.

Case Law Example One of the best examples of a disparate impact comes straight from a federal court case, Bloch v. Frischholz, in which an association had a seemingly docile rule that stated that no items could be placed on outer hallway doors in the condominium. It turns out that people of the Jewish faith need to place a mezuzah on their doors as part of the exercise of their religion. The rule, though probably not intended to harm Jewish individuals, would have made it so they either had the choice of violating their faith or moving out.

Thus, it had a disparate impact on them and it was discriminatory in violation of the law.

Family Related Restrictions Can be Troublesome Though Bloch was about religious discrimination, associations generally get in trouble for family related restrictions that target specified age groups. Provisions that prohibit children from playing on specific portions of the property are discriminatory against children and families because they generally do not prohibit adults from using the common elements. Likewise, provisions that single out toys and strollers from being left on the common elements could be discriminatory. A more recent one is a prohibition against children under a specific age from walking a dog.

In both of these instances, the discriminatory

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All material herein is copyrighted 2017©.

04.17

language can be remedied by making the restriction universal. Instead of stating “no children”, the rules should state “no one”. continued on page 32

CONDO LIFESTYLES

29

CONDO LIFESTYLES

MARCH 10, 2017

MCD Pool Party Feat Over 250 guests joined MCD Media at the annual MCD Pool Party featuring Condolympics on March 10th at the Pyramid Club in Addison, IL. Over $6000 was raised for Special Olympics at the event. Major Sponsor of the event was Worsek & Vihon

Y Shown here are the winners of the Billiards Tournamnent

Y Shown here is a group from DuBois Paving

Y Shown here is a group from Property Specialists, Inc.

Y Shown here is a group from Hillcrest Property Management

Y Shown here is Head Scorekeeper Kevin Block and Lead Judge Sheila Malchiodi

Y Shown here is a group from Worsek & Vihon

30

CONDO LIFESTYLES

04.17

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

All material herein is copyrighted 2017Š.

EVENT HIGHLIGHTS

uring Condolympics Winners of the 2017 Condolympics events are listed below: Special Olympics Donations GOLD Property Specialists, Inc. SILVER Hillcrest Property Management BRONZE ConTech MSI Co. Pool Tournament GOLD John Matranga & Gidget Curtis SILVER Ray Heany & Felicia Nyda BRONZE Tom Middlestadt & Valerie George Beads Game GOLD Mindy Maggio SILVER Celina Bright BRONZE Sarah Harnish

Dart Tournament GOLD Kevin Kojzarek & Brittany Ryan SILVER Patrick Zelasko & Jessica Jankowiak BRONZE Phil Bengtsen & Julie Galto Ping Pong GOLD Russ Fleagle SILVER Darrin McDonald BRONZE Anthony Attiah

Safari Buck Hunt GOLD Ron Muldoon & Gina Petri SILVER Mike Pearce & Janice Subasic BRONZE Rich Music & Alice Gavic Best Dressed GOLD Hillcrest Property Management SILVER DuBois Paving Co. BRONZE Property Specialists, Inc.

Bean Bag Challenge GOLD John Bremmer & Trevor Berg SILVER Tom Keating & Michelle Spillman BRONZE Damian Bierman & John Summer

Committee Members Cathy Ryan Chairperson, Kevin Block – Head Scorekeeper, Tairre Dever-Sutton, Sheila Malchiodi & Toni Ivanov -Lead Judges, Dennis Baier, Tony Dister, Tracy Davis, Michele DuBois, Vickie Farina, Mydraine Janvier, Erica Horndasch, Jackie Loftis, Michelle Madeja, Jack Mancione, Phil Mariotti, Suzy Martin, Tom Purrazzo, Brittany Ryan, Tom Skweres and Ed Zamarippa.

For more information on mcd media special events visit www.condolifestyles.net View more event photos at Facebook.com/mcd media

847.468.0069 www.ineedlifeline.com RELIABLE & DEPENDABLE REPAIR, INSTALLATION & SERVICES:

Plumbing, Heating & Air Condtioning | Water Heaters Sewer Cleaning & Repair | Hot Water Drain Jetting

Always THERE WHEN YOU NEED US! No part of the publication may be reproduced whatsoever without written consent from the publisher.

All material herein is copyrighted 2017©.

04.17

CONDO LIFESTYLES

31

CONDO LIFESTYLES

from page 29

Associations and the Fair Housing Act Associations that have common pools are especially susceptible to rules targeting children and families. What hurts associations is that the Illinois Department of Public Health has minimum requirements for pool rules and regulations, some of which are not sensitive to

the obligations under the Fair Housing Act. Thus, it is not unusual for an association to have the following rules: » All children who are not toilet trained must wear a swim diaper. » All children to be accompanied by a parent or adult. » No baby strollers shall be in the pool area.

Despite the obvious health and safety concerns, each of these provisions has been

found to be discriminatory under the Fair Housing Act. Fortunately, each can be fixed to comply with the law. Acceptable provisions could include the following: » Any person who is not toilet-trained or who is incontinent shall wear a tightly fitting disposable swim diaper. » Persons less than 14 years of age must be accompanied by a responsible person 14 years of age or older unless a lifeguard is present. » No bicycles, tricycles, scooters, skates, strollers, or carriages are allowed in the pool area.

Other restrictions such as “adult only” time or “no children” or “family pools” cannot be used because they improperly discriminate against families.

Exception for Religious Accommodation When crafting provisions that have general application, such as the hallway rule at issue in Bloch, consider including an exception for religious accommodations. For example, an association could adopt a rule stating that where a covenant or rule impairs a bona fide religious practice, the practice shall be deemed an exception to the rule to the extent necessary to accommodate the religious practice. This will allow an association to adopt uniform restrictions without increasing its own liability.

Review and Update Governing Documents The Fair Housing Act and the Illinois Human Rights Act are two laws that can hurt even good intentioned associations and people. Since board members can be found to be personally liable for their actions that lead to discrimination, they must take care to protect themselves and their boards. In the event a provision in the governing documents is discriminatory, the Board can change that provision on its own without the need to have it approved by the members. Accordingly, associations should periodically review their covenants and rules and regulations and, if necessary, consult legal counsel, to ensure that they remain in compliance with the law. Y

32

CONDO LIFESTYLES

04.17

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

All material herein is copyrighted 2017©.

L E G A L U P D AT E

by: Howard S. Dakoff, Esq. and Nicholas P. Bartzen, Esq. - Levenfeld-Pearlstein

Navigating The Issue Of Medical Marijuana Smoke Causing A Nuisance To Others Illinois is one of 28 states, not including Washington, D.C., which now authorize medical or recreational marijuana use in some form. In the State of Illinois, the applicable statute is called the Compassionate Use of Medical Cannabis Pilot Program Act ("Medical Cannabis Act").

U

nder Federal law, marijuana remains an illegal substance with stiff criminal penalties for using, growing or transporting marijuana. The friction between Federal and State law is an area of concern for those using medical or recreational cannabis, especially given the Trump administration’s recent comments on the issue. Thus the legal question remains: does a person authorized to use medical cannabis under State law receive Federal law protection, such as the Federal Fair Housing Act (“FHA”) (assuming

they are disabled), since Federal law still classifies marijuana as an illegal substance? While this article will not focus on the State/Federal interplay of laws, it should be noted that some states have similar protections as those contained in the FHA that might give similar rights to users of medical marijuana.

Notwithstanding the current questions about the current administration's position on marijuana use, many believe that the national trend is an expansion of individuals' rights to use marijuana, whether for medical or recre-

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All material herein is copyrighted 2017©.

04.17

ational purposes. For now, marijuana use is legal in Illinois only for medical use by persons authorized under the Medical Cannabis Act. So given medical marijuana use is currently allowed by statute in Illinois, what does this mean for a community association when medical marijuana smoke transmits to other units or the common elements and becomes a nuisance to other residents? Must the board allow authorized individuals with a medical need to smoke medical marijuana whenever and wherever they choose?

The answer to that question is “no.” The basic rule of thumb is that while medical cannabis use is not criminalized in Illinois, that does not mean people authorized to use medical cannabis have an unencumbered right to ‘light up’ without concern for the asso-

CONDO LIFESTYLES

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CONDO LIFESTYLES

ciation’s governing documents, which likely prohibit noxious and offensive activities. In fact, while the Medical Cannabis Act prohibits discrimination against medical marijuana users, the law itself states that marijuana users do not have a right to smoke in any place they choose. Medical marijuana registry card holders must still comply with the association’s governing documents or be subject to applicable association remedies.

So what can a community association do to address medical marijuana smoke issues?

Violations of provisions of the Declaration or By-law or rules and regulations subject medical marijuana registry card holders to association remedies, which generally include fines and/or mandatory injunctive relief. Smokers should also be advised that section 9.2 of the Illinois Condominium Property Act allows the association to recover its attorneys’ fees and costs for violations of the governing documents.

Three methods by which medical marijuana smoke use can be addressed in a community association are as follows: 1. Declaration Provisions; 2. Use and Occupancy Provisions (i.e. "nuisance" restrictions); 3. Rules Mitigating Smoke Transmission.

Declaration Provisions.

A provision contained in most Declarations requires compliance with applicable laws. In the Medical Cannabis Act itself, smoking marijuana anywhere a person could be reasonably observed by others, or in close proximity to anyone under the age of 18, is prohibited. Accordingly, any individual smoking in the common elements/areas of an association would be in violation of the Medical Cannabis Act and, consequently, in violation of the Declaration as well.

Additionally, the Declaration or By-laws could be amended to prohibit all smoking in

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L E G A L U P D AT E

The basic rule of thumb is that while medical cannabis use is not criminalized in Illinois, that does not mean people authorized to use medical cannabis have an unencumbered right to ‘light up’ without concern for the association’s governing documents, which likely prohibit noxious and offensive activities. units and the common elements without violating a medical marijuana users rights, since there are many options for individuals to use medical cannabis in their units besides smoking, ranging from edibles, topical preparation or even vaporization (which involves heating the marijuana to a high temperature, releasing the active ingredient as a vapor which is then inhaled). Therefore, individuals allowed to use medical cannabis in their units

have alternatives to ingest the cannabis via methods besides smoking and thus, the association may prohibit smoking in all its forms if properly approved by the unit owners as an amendment to the Declaration or By-laws.

can reasonably be deemed a noxious and offensive activity and subject the user to the remedies under the association's governing documents identical to tobacco smoke nuisance violations.

Use and Occupancy Provisions Prohibiting "Nuisance" Activity.

Rules Mitigating Smoke Transmission.

Most Declarations contain a use and occupancy provision against noxious or offensive activities prohibiting occupants, guests and invitees from engaging in an activity that causes a nuisance to others.

There is no question that marijuana smoke can be considered a nuisance just like tobacco smoke. Marijuana smoke odor is pungent and second-hand smoke is an undeniable health risk for other individuals. The American Heart Association has suggested that second-hand smoke from marijuana has similar effects as second-hand smoke from tobacco insofar as respiratory and cardiovascular system damage. Accordingly, the secondhand smoke from smoking marijuana wafting into adjacent units or the common elements

Unlike a complete smoking ban via a Declaration or By-law amendment, both the Illinois Condominium Property Act and most Declarations allow community association boards to adopt rules and regulations. While medical marijuana registry card holders may smoke in their units, if the smoke emanates from their unit, they may be subject to the same rules for smoke mitigation as tobacco smokers including the requirements to seal their unit and use air filtration systems.

As such, it’s more likely than not that marijuana use will continue to proliferate within Illinois. Community association boards must balance the rights of those individuals who use marijuana for medical purposes with the comfort, health and safety of those other occupants within the association. Y

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CONDO LIFESTYLES

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CONDO LIFESTYLES

by Salvatore Sciacca, Chicago Property Services

The 10 Best Ways to Improve Community Living One of the most impactful elements of community living is the quality of the relationship between the board of directors and the community property management company. This relationship can really influence the community living experience for board members, homeowners and residents alike. Unfortunately, the relationship’s health is often overlooked and either the board or a board member winds up micromanaging the property management company. To make matters worse, the relationship is commonly seen as having one side rather than two, which interferes with the ability of the board and property management company to accomplish more through mutuality. Here are the 10 best ways board members can positively impact community living: 10. View the relationship between the board and the management company as mutual. For a relationship to thrive and achieve desired goals, it must have mutuality. The board/management company relationship is the same as that between a couple.

Property managers aren’t robots – they’re real human beings. Consider treating your property manager differently from how you might treat your cable provider. If the cable TV service is out, that typically means equipment has failed. If something goes wrong with the association’s daily operations, it could be due to a range of reasons such as vendor mistakes, technology failure, board member failure, homeowner failure or man-

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ager error.

9. Apply the Golden Rule: Treat your property manager the way you would like to be treated. This is important even though you are paying the property management company. You are receiving a service in return for the payment, and it is being provided by human beings with feelings and dignity. Treating service providers kindly results in better service. Of course, I am not suggesting you condone services provided poorly. I am however pointing out that yelling and screaming at your property manager will not inspire harder work for you.

8. Invest in the relationship. The management com-

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pany often builds the bridge between parties alone. The board should put in effort to create great working relationships with the property management team. Take time to get to know them.

Arrange a meeting at the management company’s office and become familiar with the professionals who will serve and support your association. This will just about guarantee you receive better services at once.

7. Offer compliments. Why do people typically criticize only service providers such as management companies? I suggest that board members and homeowners send an occasional note to the management company about something they did right.

I can assure you that this small but meaningful effort will result in a higher level of service.

6. Accept responsibility for mistakes. The management company often takes the blame when something goes wrong. The truth is that the customer is not always right. If a board member says he/she is going to do something and then does not do it, that person needs to be held accountable just like anyone else. This should not result in undue stress

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

on the manager. Board members should be willing to hold each other accountable as well. If the secretary does not take meeting minutes, he/she should answer for it. Not taking meeting minutes can result in an angry homeowner who is trying to sell but can't because of the lack of the minutes. They will then typically confront the management company even though the secretary is the one who should be explaining and trying to resolve the situation.

5. Give the benefit of the doubt. When something goes wrong, don’t be quick to assume it was because of the management company. This approach interferes with developing an effective working relationship with your management company – or with any service provider, for that matter. Your management company provides hundreds of services. Vendors may be involved as well. With so many services being delivered over weeks and months, sometimes not everything will work perfectly, but it’s something that a relationship based on mutuality can solve.

4. Mistakes will happen. The truth is that mistakes will happen regardless of which management company and vendor(s) you work with. With this in mind, you want your focus to be on how the management company reacts to situations and mistakes. Do they get defensive or try to avoid

ownership of the mistake if they made it? Or do they accept responsibility if they have caused the issue? Start by giving them the benefit of the doubt and then see how they respond.

3. Objective feedback is critical. It is important that the homeowners and board members give the management company objective feedback. A good way to achieve this is to ask the homeowners to respond to a survey. In responding, the homeowners should keep everything in perspective rather than focus only on the negatives. As mentioned, mistakes will happen. Constructive, useful feedback will consider the steps the board and management company take to mitigate those potential issues and how the management company responds when situations do arise.

2. Set clear and reasonable expectations. Expectations should be based on the terms of the management agreement. Services and response times requested should fall only within the scope of the agreement. If you prefer to be contacted by cell phone instead of work phone, make sure the manager is aware. Invest some time and effort in creating a great relationship. Make sure you understand the manager’s working style as well.

1. Understand the management agreement. It is imperative to understand what is included and excluded in as much detail as possible. Every management com-

pany has a different formula for providing community management services. This ranges from (A) billing everything hourly to (B) a menu of services (i.e. some services are included and some are a la carte) to (C) "EVERYTHING" is included. There is no right or wrong way. It really depends on how effectively the management company provides the services and how responsible their approach is to serving your community. In the end, all management companies are in the business to make money. The question becomes whether you know how much money your management company is making from your association or if you are you in the dark. Are they making money without your knowledge? The relationship between the management company and the board is also a function of trust and financial transparency.

SUMMARY How healthy is the relationship between your management company and your association’s board of directors? Are you taking a comprehensive approach to the relationship or are you simply analyzing the actions and behaviors of the management company subjectively? Are you part of the problem, or are you part of the solution? The relationship you have with your manager reflects the relationship you wish to create with your management company. Rather than view your manager as an adversary to confront, envision the relationship you’d really like to have. It just might lead to a life-changing experience. Y

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CONDO LIFESTYLES

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CONDO LIFESTYLES

by Michael C. Davids

Update on Short Term Rentals in Chicago Anyone who wants to be an Airbnb or VRBO host in Chicago should understand the laws that apply to short term rentals in Chicago. Most people are aware that in June of last year, Chicago passed an ordinance that specifically deals with short term rentals known as the Shared Housing Ordinance. This ordinance is an attempt to regulate the use of Airbnb in residential neighborhoods. However parts of the new ordinance have been challenged by a lawsuit.

S

o, given the fact that there are new laws and legal challenges on this issue, it is perilous to be involved in short term rentals without having consulted with a knowledgeable attorney. Community Associations should also have their legal counsel advise them on how to deal with this issue at their property. You should also try to have a basic understanding of what’s at stake, the players in the game and why there is a fight.

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Among the legal requirements regarding short term rentals in Chicago are: » Shared Housing Unit Registration Requirement. » Chicago Zoning Ordinance. » Vacation Rental Licensing. » Bed and Breakfast Licensing. » Taxes. » Association and Landlord Rules.

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Regulations on such issues as the Federal Fair Housing Act and a variety of others can also come in to play in certain situations. Airbnb, VRBO, City of Chicago (Dept. of Business Affairs and Consumer Protection, Zoning, Small Business Center and Business Licensing) all offer very good resources and information about regulations for short term rentals in Chicago on their websites.

According to one study noted by Hales Property Management on their website, 4,550 people in Chicago hosted over 165,000 guests last year, and made an average of $7,400 each for the year.

The American Hotel & Lodging Association (AH&LA) released a study last year that provides a detailed analysis of the rise in commercial activity taking place in Chicago on Airbnb, one of the most trafficked short-term rental websites. The study was conducted by John O’Neill, MAI, ISHC, Ph.D., professor of hospitality management and director

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

of the Center for Hospitality Real Estate Strategy in the School of Hospitality Management at Penn State University, and examined activity on Airbnb between October 2014 and September 2015.

Some of the key findings of the AH&LA study are: • Almost all – 96% or $47.6 million – of Airbnb’s revenue in the Chicago metropolitan area came from the nearly 75% of operators who listed their unit(s) for rent for more than 30 days per year.

• Commercial operators who listed their unit(s) for rent over half the year (180 days) captured nearly 60% of Airbnb’s revenue in the Chicago metropolitan statistical area (MSA), grabbing $28.8 million.

• Full-time operators who listed their unit(s) for rent 360 days or more each year delivered nearly $12 million (or almost one quarter) of Airbnb’s revenue in Chicago.

• Operators listing more than one unit for rent drove nearly 40% of Airbnb’s revenue in the Chicago region: $19 million.

With this level of growth and money involved, it is not surprising that people want to be able to become AirBnb or VRBO hosts. Given the financial impact on hotels and motels and the quality of life

issues created in multifamily residential buildings, it is not surprising that they are looking out for their interests. Hence, the legal wrangling is in full swing.

Community Association Manager’s Perspective The new Chicago short-term rental ordinance basically increased taxes on short-term rentals to 21 percent, effectively imposing a 4% surcharge on short-term rentals on top of Chicago’s 17.4% hotel tax. The ordinance also attempts to track rental hosts by requiring the housing platform to submit a list of the addresses of hosts in a particular ward.

The new rule also includes a $60 yearly fee to add to the city’s funds for curtailing wild partying and illegal rentals.

According to Keith Hales of Hales Property Management in Chicago, “these taxes and regulations effectively legalize short-term rentals in the City of Chicago, though owners in community associations should know that renting their condo is not a good idea for a variety of reasons. Also, being legal in the city doesn’t mean much if your building’s HOA has outlawed short-term rentals.”

Indeed, the changed legal status of short term rental companies like Airbnb and VRBO doesn’t

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04.17

resolve many of the other major issues that come in to play when an owner in a condo association offers short term rental of their unit(s). Security is still a major issue. Hales continued “hosts are effectively giving different strangers a key to their building every week. Hosts are also not protected from liability in case something happens to a renter in the condo—in these cases, Airbnb holds no legal responsibility and all the liability would fall on the host.”

Attorney Nicholas Bartzen of Levenfeld-Pearlstein concurs with Hales. Bartzen points to Section 9.1(a) of the Illinois Condominium Property Act, which states that a Unit Owner shall be liable for any claim, damage or judgment entered as a result of the use or operation of his/her Unit. Bartzen adds, “this means that it doesn’t matter if it’s the Unit Owner, the tenant, or a short-term renter causing the damage – the cost to repair is on the Unit Owner, plain and simple.”

Most importantly, the majority of condominium associations in Chicago do not allow short term rentals (of less than one year), and an owner who rents out his or her condo on Airbnb would be in direct violation of the Association’s Declaration and bylaws. These restrictions have a lot to do

CONDO LIFESTYLES

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CONDO LIFESTYLES

with quality of life issues. Hales explains, “your neighbors and fellow owners likely do not want a steady stream of strangers coming into the building, using the common areas, and causing wear and tear on the facilities. But buildings whose associations do allow short term rentals are also viewed less favorably by mortgage lenders.” These buildings risk negatively affecting the interest rates on a loan or approval of the loan for future potential buyers in the building, which ultimately translates to lost value in the building.

And, if you’re a condo owner that has full-time

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tenants or roommates, “you may want to make it clear that you don’t want them to sublet the apartment on Airbnb.” One Chicago condo owner recently came home from a business trip to find an Airbnb couple in his bed, which his roommate had been listing on Airbnb in the owner’s absence without his knowledge.

Prohibited Building List One of the key protections for condo associations in the city’s new ordinance to attempt to regulate the use of Airbnb and VRBO in residential neigh-

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borhoods was the creation of a "Prohibited Housing List." The city recently made public a list of 940 buildings across Chicago that have submitted affidavits to the city to ensure the buildings prohibition on shortterm rentals is part of the public record.

At least 91,000 of Chicago's apartment and condo units, or about 7.6 percent of all housing units in Chicago, are now on the city's list of places that cannot host guests through homesharing services like Airbnb or VRBO. Many of the buildings are high-rises concentrated Downtown and in surrounding neighborhoods. Most of those buildings are just reinforcing rules written into their condo association governing documents that impose restrictions on rentals of any type and/or prohibit people from renting out their apartments for less than a year (or other specified period of time).

“We worked diligently in collaboration with city policymakers on clear, fair rules for home sharing in Chicago," Airbnb said in a statement. "We fully understand that home sharing is not a perfect fit for every housing association, and opt-outs are to be expected.” The company said the number of opt-outs is minuscule compared to Chicago's overall housing supply.

What will happen to those who violate the ban and get caught doing a short term rental in a building on the prohibited list is still unclear.

Notwithstanding the mystery that surrounds the city of Chicago’s enforcement, condo building managers and their attorneys say that there will be significant penalties (fines) from the associations issued against those who break the rules.

"Any host that lists a unit illegally will be subject to strong enforcement including escalating fines and penalties," said Angel Hawthorne, spokesman for the city's department of Business Affairs and Consumer Protection. Anyone who notices a unit that isn't legally allowed to host home-share guests can report violations to 311 or online at http://servicerequest.cityofchicago.org by choosing “Shared Housing / Vacation Rental Complaints” from the “Service Type” dropdown menu.

Critics say that the process for adding residential buildings that aren't very large is too difficult and that work remains to be done on the other big list the ordinance calls for which is a license and registration list for the places that can be used by Airbnb.

The legality of short-term rentals in your particular neighborhood shouldn’t be taken for granted, though. Last year’s ordinance also gave Chicagoans the ability to vote against having short-term rentals in their individual precincts if they don’t want them.

So far, no precincts have voted against short-term rentals, but the option is there. Y

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