Blog

  Serving on a condo board is not an easy thing to do. Often, there is so much work to do that members feel as though serving on the board is a full-time job. This is unacceptable, especially given the members' other career committments. Any kind of disorganization is a bad sign for condo associations. The lack of a proper structure can result in a lot of wasted time and energy; not to mention the fact that many of the meetings' goals will be left unachieved. Implementing a framework for all board meetings will ensure that the maximum amount of work...

Living in close quarters with hundreds of other people, some of whom may be your friends, can give you a false sense of security. The reality is that condominiums are often targets for criminals for a number of reasons, including perceived affluence and the fact that businesses and offices often employ technologically sophisticated security systems, decreasing their viability as potential targets. Many buildings have doormen or private security that act as a barrier between visitors and your private living space. But this added level of security often comes with higher monthly dues or an overall higher cost of living, a luxury...

Move-in fees are the cause of many headaches for some new tenants. There are often great debates waged between landlords/associations and tenants over the reasons behind these fees and their legality. Here are the answers to some common questions about move-in fees: Why do I have to pay? Usually, a move-in fee is charged to a tenant upon signing their new lease. The fee serves to cover the costs of accomodating and processing new tenants, such as changing directories and reprogramming security systems. A move-in fee is always non-refundable. How is this different from a security deposit? A security deposit is...

  Not all of us have the privilege of living in luxurious, contemporary condos overlooking the Lake Michigan, Millennium Park or the Magnificent Mile.  Most condominiums have comparatively modest aesthetics, and their settings are much less glamorous. However, there are many clear and affordable ways to enhance your condo building and make it modern, bright and welcoming.  Consider forming a beautification or decoration committee if it does not already exist within your association. This committee would be in charge of adorning common areas for events or holidays, depending on what the association allows. Furnishing lobbies and hallways with decorations during the...

It's 108 years in the making.  Last night, the Chicago Cubs won the 2016 World Series in cinematic fashion, defeating the Cleveland Indians in extra innings amidst a deluge of rain. City Hall announced today that the Cubs' victory parade would be held this Friday, 11/4, at 10 a.m. The parade is expected to start at Wrigley Field, ending with a rally in Grant Park. Millions of people are expected to descend on the city tomorrow, eager to participate in the festivities. But as the city has learned in the past, massive crowds tend to attract trouble. Here are some tips...

It's almost as if a new housing development is being built in Chicago every day.  Demand for rental housing in Chicago is the highest it has been in years, with DePaul's Institute of Housing Studies (IHS) reporting that rentals make up nearly 44 percent of all Cook County households, up from 38 percent in 2005.  Although renters of all ages and income levels have increased, the youth represent the largest renting demographic, as thousands of young professionals flock to the city's hippest areas. Many of these young people are exceptionally affluent. DePaul's IHS reports that the these professionals have incomes nearly...

  For some, the winter season means holidays, cozy nights by a warm fire and peaceful walks through gently falling snow. But it can also mean blizzards, bone-chilling temperatures and ice build-up that can wreak havoc on a building’s integrity. It’s an inevitable fact of living in the Upper Midwest: winter is coming. The maintenance duties of condo owners often vary across associations, but depending on your agreement, you may be responsible for many of these tasks.  Here are some tips to ensure your home survives the season: Before the worst of the cold weather comes through the area, make sure...

Starting in 2017 all condo associations in Chicago must have recycling services at their building. Failing to have recycling services active by 1/1/17 will expose the association to potential fines from the City. This new requirement is part of the Chicago Recycling Ordinance that was recently passed by the Chicago City Council. The ordinance goes into effect on January 1, 2017, and requires all commercial and multi-unit residential buildings to provide "source-separated, single stream recycling for residents." This simply means that all associations must purchase standard recycling services from a waste management provider. Obviously this is great news for the waste...

When a condo association needs a large amount of cash in a short period of time, a loan may be the only option. This is especially true if the owners cannot afford a large special assessment. Association loans often become necessary as an emergency measure due to deferred maintenance and a lack of proper budgeting. These types of loans use the association's existing and future assessment income as collateral to secure the debt. This means that if the association fails to repay the loan, the bank will go after the association's assessments. Prior to this change to the Illinois Condominium Property...

What can be stored in the common hallways, stairways and other means of egress? According to the law, nothing. Interior landings, hallways and stairs must be completely clear of all items. This includes shoes, shoe racks, planters, pots or other items. The relevant section of the Chicago Municipal Code below relates to new construction: 13-160-070 Obstructions prohibited.For purposes of this section and Section 13-96-135 only: the term “small building” shall mean a residential building that is both less than four stories high and contains fewer than four residential units; and the term “large building” shall mean a residential building that is...

As a management company we are often confronted with issues or disputes between the condo association that we manage and its neighbors. One such example relates to the landscaping of neighboring properties. Specifically, the trees on these properties. If a neighboring property has one or more trees with branches that have grown such that they extend over the property line of your association, you do have the ability to take action. "Air rights" exist such that the legal property lines for your association extend vertically into the air. Due to this, you have the ability to cut back any branches that...

A new bill, SB 2354 (Sen. Haine), which will admend the Illinois Condominium Property Act and the Common Interest Community Association Act, will become effective on January 1, 2017. This bill was signed into law by Governor Rauner and became Public Act 99-0567. Since this bill amends both the ICPA and the CICA, the results affect both condominium associations and town home associations in Illinois. This amendment is critical to condominium and town home associations as it negates many of the restrictions that were previously introduced by the "Palm Case". (Palm v. 2800 Lake Shore Drive, 2014) You can read an...

The Illinois Condominium Property Act, which is the master set of laws that control condo associations in Illinois, is updated on a regular basis. Any changes to the Act automatically override and supercede rules that may be contained in your association's governing documents. (Declaration / Bylaws) Effective June 1, 2016, one such change to the Act is related to the requirements for when notices must be sent to unit owners when a Board adopts the annual budget. As a Board it is important that you are aware of this change, and follow the new rule, so that any budget that you...

Workers’ Compensation insurance, sometimes referred to as Workers Comp, is the type of policy most commonly purchased by condo associations that is not required in the Illinois Condominium Property Act. Workers Comp insurance is a type of insurance purchased by employers for the coverage of employment-related injuries and illnesses. Workers Comp is state mandated in Illinois for any employer with “W2’d” employees. If your association directly employs one or more persons, and issues them a W2, you are required to pay for workers compensation insurance. Most condominium associations do not employ traditional employees, but workers comp can still be a smart...

In many ways this is the most complex type of insurance policy that a condo association in Illinois is required to maintain. Directors and Officers insurance (D&O) protects board members from damages resulting from allegations of wrongful conduct and lawsuits. It provides legal defense coverage as well as indemnification of damages, up to the policy limits. Unfortunately, board members may make mistakes. Without Directors and Officers insurance, a mistake could be disastrous.  Board members have certain fiduciary duties and fiscal responsibilities when serving in their respective capacity for the Association. They have an obligation not to violate or breach these fiduciary...

This article provides an overview of the types of insurance that an Association should and must maintain. The Board of Directors is responsible for ensuring that the legal and reasonable levels of insurance coverages are in place at all times to protect the members of the Association. This is a great responsibility and should not be taken lightly. A Warning of Importance As I instruct my staff on a regular basis, in the governance of an Association there is nothing that carries a higher risk of legal liability than matters of insurance. The potential cost associated with errors in this area...

Condo foreclosures, delinquencies and the new 9 months rule (Illinois Senate Bill 2664, ISBA FORECLOSURE BILL) If you are a member of a condo board then you will eventually be forced to deal with owners that are delinquent in their payment of their monthly assessments. Unfortunately, severe assessment delinquency is often coupled with an impending foreclosure. After all, if a unit owner is not making their monthly assessment payment to the association, it's a good bet that the owner is struggling to pay their mortgage. If a foreclosure occurs within your association you have a financial interest in handling the situation...

Illinois House Bill proposes mandatory payment plans for delinquent owners HB 4154 (Rep. Madigan and Rep. Kifowit)ALTERNATIVE PAYMENT OF DELINQUENT ASSESSMENTS. Overview of the bill This bill proposes the creation a new Sec. 1-47 of the Common Interest Community Association Act which would mandate that common interest communities of more than 14 units adopt “reasonable guidelines” for delinquent owners to pay regular and special assessments. The bill would require the association to adopt and record in the county recorder’s office guidelines for a payment plan. The payment plan would need to be a minimum of 3 months and not extend greater...

Earlier this month the Illinois Appellate Court issued an order that is causing quite a stir in condo association circles. Palm v. 2800 Lake Shore Drive is a case that relates to how boards of condo associations conduct their business. Specifically, how board members communicate and make decisions. On the surface the ruling appears to introduce an incredible level of difficulty to the process that a board must follow in order to perform their duties. Many of the updates that I have read from attorneys and other professionals in the industry seem to enforce the idea that the life of a...

This article contains information about various building safety requirements and Chicago municipal codes. These are common building items and issues that board members should be aware of to remain in full compliance with all city requirements. In practice it is unlikely that your association would be penalized by the city for failing to adhere to some of these requirements. Nonetheless these items are important to maintaining a safe building for your owners and other occupants. You can access the complete Chicago Municipal Code online: http://www.amlegal.com/library/il/chicago.shtml I encourage you to review these items and check to see how your building stacks up....