For community associations that maintain their own streets, exterior parking lots and sidewalks, snow removal services can easily be one of the highest budgeted expenses each year. In the real estate boom of the early 2000’s, buyers purchased homes without knowing that maintenance of the streets and sidewalks (including snow removal) would be the responsibility […]
Budgeting for Snow Removal Without a Crystal Ball
For community associations that maintain their own streets, exterior parking lots and sidewalks, snow removal services can easily be one of the highest budgeted expenses each year. In the real estate boom of the early 2000’s, buyers purchased homes without knowing that maintenance of the streets and sidewalks (including snow removal) would be the responsibility […]
Legislative Update Summary of Laws Effective January 1, 2017 (IL)
This summary highlights legislative updates in the Illinois Condominium Property Act, the Common Interest Community Association Act, the Condominium and Common Interest Community Ombudsperson Act, and other statutes. Read the article…………..
Ancillary Income: the Good, the Bad, the Ugly
Most will agree that the best type of income for the owners is the income that they do not have to pay (outside income). That income of course reduces the assessments they pay to the association. Usually these types of income will be taxable. However, depending on the type of association and the type of […]
Park It In a Good Space (IL)
As any Chicago resident with a motor vehicle knows, from the expensive park-per-day prices to the difficulty of parallel parking, owning a car in the city can sometimes be a nuisance and a burden. Even rightful owners of parking spaces in the city have faced some interesting challenges in more recent years. Read the […]
Transition Studies: More Pros than Cons
When community associations assume ownership of their buildings, the process is essentially no different than an individual purchasing a car or home, or making a substantial investment in the stock market.? Performing due diligence is always good practice to ensure you are getting what you paid for. Although individual unit owners may have performed some […]
What Property Managers Need to Know About the Changes to the AIC Elevator Program
The City of Chicago will be instituting new rules governing the Annual Inspection Certification (AIC) Program, effective August 17, 2016. Here is what property managers should know. The AIC Program requires property owners/property managers to document the compliance of elevators, escalators, and other conveyance devices within their buildings to comply with the Chicago Municipal Code […]
Budgets & Reserve Studies: Your Best Planning Tools
As the summer months are winding down, TV commercials for school supplies abound and parents are overjoyed with soon-to-be quiet households. It truly is a wonderful time of the year – unless you work in property management. For property managers, this time of year is the most dreadful. If your association is on a January […]
Condominium Deconversions: Examination of a Section 15 Sale (IL)
Until recently, the word “conversion” was generally thought to mean the process through which an apartment building was converted into a condominium association. However, in the wake of the 2007 market crash and real estate downturn, few condominium conversions have been occurring in the Chicagoland area. In the past year, as the demand for rental […]
City of Chicago Passes Ordinance Requiring Associations to Implement Source-Separated Recycling Programs
Recently, the Chicago City Council passed the Chicago Recycling Ordinance. Effective January 1, 2017, the ordinance requires commercial and multi-unit residential buildings – including apartment buildings, condominium associations, and cooperatives – to provide a system for source-separated, single stream recycling for residents. Read the article………….
Issues Involving Illinois Condo Claims
In Chicago, we often find property loss claims that occur at condominium units. Of course, these claims tend to come with their own special issues that require investigation. Aside from general issues that come with all property claims, such as cause and origin of the loss and actual damages incurred, two issues should be investigated […]
How to Write Requests for Proposals for Best Results
Requests for Proposals (RFPs) are a tool managers can use to ensure the best products and rfpspecifications are used in their projects. By getting all vendors to bid on the same specifications and use the same materials you are ensuring that you are receiving comparable bids at the most competitive pricing. However, if it is […]
Risks and Rewards of Association Self-Management
There are both advantages and pitfalls for common interest realty associations (CIRAs or associations, plainly) that wish to self-manage. A self-managed association typically employs an onsite professional manager who works directly at the board’s behest and is given authority to complete assignments, coordinate departments, collect and disseminate information to the board, protect assets, enter into […]
Who Let the Dogs Out?
Many condominium and community associations are receiving increasingly frequent requests from residents to keep dogs and other “assistance animals” in communities that do not allow pets. Where pets are allowed, the requests are often for dogs that are much larger than the maximum weight limit, or are for a prohibited breed of dog, such as […]
Gov. Rauner (IL) Signs Bill Which Mitigates The Effects of Palm Relative To Meetings & Notice Requirements
SB 2354 (Sen. Haine), became Public Act 99-0567 on July 15, 2016 when Governor Rauner signed the Bill into law. The legislation, which is effective January 1, 2017, amends both the Common Interest Community Association Act and the Condominium Property Act. Read the article…………..
Condo busted? Going rental? Here’s how to deconvert.
As the rental market heats up in Chicago, some condominiums are getting offers they cannot refuse. You may have heard that 75 percent of unit owners have to agree to a deconversion. But real estate attorney R. Kymn Harp says that’s not always the case. Get out your Illinois Condominium Property Act and follow along. […]
Chicago Adopts Home Sharing Ordinance
After heated debate for months in the City Council, Chicago finally adopted its short-term and shared housing rental ordinance on June 22, 2016. The final version of the ordinance affords condominium and homeowners associations protections against the growing number of short-term vacation rentals, through platforms such as AirBnB and HomeStay, that have association Boards concerned […]
The Game Of Association Life
Just like in the Game of Life, a board has to have a plan to succeed. Whether it is taking the quick route by attacking an issue head-on, or taking time to get educated on the issue first, a board has to carefully and strategically plan its course if it has any hope of successfully […]
Waivers of implied warranty strengthened for condo, home builders in Illinois
In two recent builder-friendly decisions, the First District and Supreme Court of Illinois have ruled that the standard conspicuous waiver of the implied warranty of habitability found in most builders’ sales agreements: 1) is effective even where not verbally “called-out” to or initialed by the buyer; and 2) binds both the buyer of a new […]
July Is A GREAT Time To Discuss Snow Removal
On behalf of snow contractors everywhere, if you currently have your snow and ice management contract signed, and/or plan to have it signed on or before October 15th, please consider yourself “HIGH FIVED”. Your pro-active leadership should pay off big time when it counts. Your association should recognize you as a superior board member or […]
Did You Know You Can Budget For Education?
One of the greatest investments a society can make is in the education of their young. The same principles apply to members of a condominium or HOA board. Educating those who have volunteered their time; charged with making decisions that impact the entire community, one of the biggest personal investments for most, should be a […]
Budget Chess: Formulating a Strategic Plan for your Association
Once we have completed our annual budgets, held all our meetings, approved the plans and sent out the annual assessment coupons /statements, we can breathe that sigh of relief and look forward to the new year. Hopefully in preparing your budgets you reviewed your association’s reserve study and all contracts in place. Before we enter […]
HOA Horror: Roaches, Bedbugs, And Rats Pt. 4
Last month, we continued our examination of HOA Horror stories about roaches, bedbugs, and rats. This week, we discuss how condo and homeowner associations are addressing the rampant bedbug problem infecting the nation. Read the article…………..
Summary of the New Condominium and Common Interest Community Ombudsperson Act (IL)
On July 1, 2016, the Condominium and Common Interest Community Ombudsperson Act will go into effect. The Act establishes the Office of the Condominium and Common Interest Community Ombudsperson. This regulatory Office is designed to educate and assist condominium and common interest community owners and managers about the Condominium Property Act and the Common Interest […]
Mouse Trap!
The phrase “mouse trap” brings to mind methods of trapping mice, rats or other rodents, or the children’s board game that involves a plastic Rube Goldberg-like contraption to catch mice and win. In the board game, the goal is to capture all of your opponents’ mice while keeping your mouse safe from capture. As the […]
HOA Horror: Roaches, Bedbugs, And Rats Pt. 3
Last month, we continued our examination of HOA Horror stories about roaches, bedbugs, and rats. This week, we BEDBUGSdelve into the dirty bedbug problem plaguing the entire nation. Read the article………….
Stopping Trouble From Derailing Your Association
Every association faces trouble in one form or another over the course of time. Some boards do a good job of preventing trouble, resulting in few occurrences, while other boards seem to constantly be battling trouble, both on their board and in their association. Similar to the board game, board members often get into “trouble” […]
Operation: Landscape
There are many parts to the landscape “game.” Some are small, some large, some moving and some waving their arms frantically in the air, calling you over to handle the imaginary emergency that needs to get taken care of immediately or the world will end. But I digress. All of these parts are in perpetual […]
Reducing Risk
We all experience risk in our everyday lives. Things such as making our morning coffee in our own kitchen, driving a car or even shopping at our local grocery store are all actions that can put us at risk. We might forget to turn off the coffee pot one morning which causes a fire in […]
To Pay or Not To Pay Post-Judgment Attorneys’ Fees After an Eviction
A recent decision by the Illinois Appellate Court ruled that a condominium unit owner must pay post-judgment attorneys’ fees (in addition to post-judgment common expenses) before he or she can vacate the judgment and regain possession of his or her unit. Read the article………….
Reducing Risk
If you are a board member of your association it is important to be alert and attentive when driving or walking through your association property; make sure to assess your territory. Are any street lights burnt out which cause a dark spot on the street? Are there any pot holes in your streets that need […]
Illinois Appellate Court Determines Payment of Post-Judgment Attorney’s Fees Is Condition Precedent to Regaining Possession of a Unit
Decided by the First District of the Illinois Appellate Court on April 20, 2016, State Place Condominium Association v. Magpayo confirms that in order for an owner to regain possession of their Unit which has been lost to the Association pursuant to a judgment for possession, the full default must be cured, and such default […]
Operation: Landscape
There are many parts to the landscape “game.” Some are small, some large, some moving and some waving their arms frantically in the air, calling you over to handle the imaginary emergency that needs to get taken care of immediately or the world will end. But I digress. All of these parts are in perpetual […]
HOA Horror: Roaches, Bedbugs, And Rats Pt. 1
Cleanliness may be next to godliness, but when your community is invaded by roaches, bedbugs, rats, maggots, and other vermin, it’s time for quick action. Read the article………….
HOA Horror: Toxic Stories About Mold Pt. 2
Although Bizar is the president of his small association, it is by default. No one else would – or could – step up. The moisture and leakage problems could not be fixed because the necessary special assessment to cure the leaks could not be levied without all three owners in agreement. Read the article………….
How To React to HOA Fraud
This week, we discuss how to react if you do not bulletproof your HOA against embezzlement and discover your HOA is the victim of fraud. Finding the proper authority to investigate allegations of fraud can prove to be extremely difficult. If your association has been a victim of the “condo confidence game,” gather as much […]
Bulletproof Your Homeowners Association’s Funds Against Fraud – Pt. 1
Last week, we discussed some clues that your HOA might be the victim of embezzlement. This week, we give tips to bulletproof your HOA againstHOA embezzlement and ask, “Who is guarding the guardians?” Unless boards are vigilant, the answer is: “No one. No one is watching. Absolutely no one and nothing.” Read the article………
Illinois Appellate Court Invalidates A Lease Restriction Imposed By Rule
Decided by the First District of the Illinois Appellate Court on February 3, 2015, Strobe v. 842-848 West Bradley Place Condominium Association confirms the long-held position of KSN that the board of managers of a condominium does not have the authority to adopt rules that restrict leasing of units when the association’s declaration of condominium […]
The Many Names For Theft Inside Your HOA: Part TWO
Last week we covered: the kickback, overbilling, expense padding, volunteer compensation and underreporting income. In the final installment of this two-partHOA series, we continue highlighting common examples of how HOA’s can unwittingly be stripped of their monies: Read the article……….
The Many Names For Theft Inside Your HOA
In this two-part series, we will highlight common examples of how associations can unwittingly be stripped of their monies: Read the article………….
Appellate Court Rules In Favor Of Association To Recover Unpaid Assessments From Third-Party Purchaser (IL)
To the benefit of Associations who are hit hard by the foreclosure crisis, the First District Appellate Court recently held that third-party purchasers cannot circumvent payment up to six months of the prior owner’s assessments if the lender uses a subsidiary to purchase the property at the foreclosure sale. Read the article…………..
Amendment to Illinois Mechanics Lien Act Authorizes Bonding Over of Mechanics Liens Claims
As of January 1, 2016, an amendment to the Illinois Mechanics Lien Act, 770 ILCS. 60/38.1, allows parties with an interest in real estate to substitute an eligible surety bond for a claim for mechanics lien as security for real estate. The law will change the way many construction projects are handled in Illinois. Read […]
Commercial Owner Disputes (IL)
As you have no doubt discovered, most new condominium/townhome developments include a “mixed use” building. That is, a portion of the building (usually on the ground floor) is reserved for commercial/retail use while the remainder of the building consists of residential units. Due to the obvious differences between commercial and residential owners’ uses and needs […]
Condo owners facing eviction get just one chance in court to challenge legitimacy of fees (IL)
Condominium owners who wish to challenge the legality of fees charged by their properties’ owners associations don’t get two chances in court to do so, an Illinois state appellate panel has found, upholding a Cook County judge’s dismissal of an evicted condo owner’s suit over association assessment late fees, saying the owner should have raised […]
Condominium Developers Beware! New Illinois Supreme Court Decision Confirms Chicago Municipal Code Creates a Broad Private Cause of Action for Misrepresentation
On Nov. 4, 2015, the Illinois Supreme Court issued its ruling in Henderson Square Condominium Association v. LAB Townhomes, LLC. Henderson Square Condominium Association v. LAB Townhomes, LLC, 2015 IL 118139. The decision holds that condominium unit owners have a broad private cause of action for misrepresentation against condominium sellers and their principles under Section […]
Counsel’s Corner: Ruling Puts Lenders on the Hook for Unpaid Assessments (IL)
The Illinois Supreme Court created potentially hazardous territory for lenders who take title to condominium property via foreclosure lawsuits. In 1010 Lake Shore Drive Ass’n v. Deutsche Bank Nat’l Trust Co., the Supreme Court held that liens for unpaid condominium assessments are not extinguished unless the lender pays post-sale assessments and in doing so it […]
Bond Can Now Be used as a Substitute for Mechanics Lien Claim (IL)
Often times, a mechanics lien claim filed by a contractor or sub-contractors for work performed on the Association’s common elements has the effect of creating a cloud on title which complicates and in some cases prevents the refinancing or sales of units in the Association. Read the article………….
Association’s Right To Recover Assessments Clarified (IL)
Recently, Illinois Courts have handed down opinions that provide valuable insight for condominium associations that seek to recover unpaid assessments when banks foreclose on mortgages. Below are brief synopses of each. Read the article…………
Condo foreclosure doesn’t eliminate new owners’ obligations to pay past owners’ association fees, IL Supreme Court says
The Illinois Supreme Court has ruled unpaid condominium association assessments are not erased through foreclosure, unless the new owner forks over their first post-purchase assessment payment on time, otherwise they have to pick up the tab. Read the article…….