Assessments are the lifeline to keeping an association running and, if not paid, a budget shortfall may result in additional fees to the other owners. Per the ICPA, the association shall have no authority to forbear the payment of assessments by any unit owner. And, this includes the developer prior to Turnover! Being compassionate to an owner in troubled times is nice but, business is business, and a board that fails to collect is putting the entire association in jeopardy. If an owner is not paying their assessments, it is very possible that he/she is not paying their mortgage and they could go into bankruptcy or foreclosure, resulting in possible lost funds to the association.

As obvious as that may sound, many boards either have not implemented strict rules protecting the association against delinquent accounts, are not implementing them or sometimes, by the time it is sent to the attorney for collections proceedings, the unit has gone into foreclosure.

Effective January 1, 2007, a new law was enacted that may permit an association to recover up to six (6) months of assessments and legal fees incurred during the delinquency period from the proceeds of a foreclosure sale, under certain circumstances. Collections proceedings can be complicated, so we always recommend to our clients that they stay on top of this issue and that every association should have an attorney of record that handles its collection matters.

Mark Pearlstein, partner of Levenfeld Pearlstein LLC, has provided us with the below article to help explain the new legislation. You may also click on the Illinois Seal logo to be directed to Public Act 94-1049.

A tax law is in effect for the tax years 2006 and 2007 that provides a tax credit to homeowners who have made energy-conscious purchases to their existing homes, including condominiums and cooperatives.

The law provides a 10% credit for buying qualified energy efficiency improvements such as: 1) Insulation systems that reduce heat loss/gain; 2) Exterior windows (including skylights); 3) Exterior doors; 4) Metal roofs. To qualify, specific Energy Conservation criteria must be met and the items must be placed in service after December 31, 2005 and before January 1, 2008.

Brad Schneider, CPA, is a partner at CondoCPA and has provided us with the article below offering further information including the applicable forms. You may also click on the IRS logo to be sent directly to detailed information on their website.

Chicago Association of Realtors
We are excited to announce that our New Construction & Conversion seminars for CAR were so positively received that we have been asked to create a Part 2 to this series, Selling Condos & Townhomes... Save Time & Facilitate The Sale!

Topics will include: Illinois Condominium Property Act overview; resale disclosures; how to work efficiently with associations--whether self or professionally managed; association vs. homeowner insurance; and, how to recognize a problem property and better investment.

These Member Profitability Programs are free for CAR members and will be held: 9/6-CAR NW; 9/27-CAR South; 10/25-CAR North; 11/8-CAR Central.

ACTHA Regional Conference & Trade Show
The Association of Condominium, Townhouse and Homeowners Associations will be holding three regional trade shows in November. Mark your calendar now for Saturday, November 3rd, for our seminar Developer Turnover Issues--So What Do We Do Now?"which will be held in Joliet, IL.

To learn more about these seminars, please go to the Events & Seminars page of our website. And, as a reminder, handouts from past seminars are now available on this page. You can also obtain the Registration form for the CAR events by clicking on the CAR logo above.

The Fall Budget, Annual Meeting & Winter Planning tips are just a few examples of how to run your Association in the most efficient manner. If your Association doesn't understand or follow proper condo law protocols, then perhaps you'd benefit from our services! Below are just a few....

Project Management Do you have projects that haven't been implemented yet but need to be? We can act as an extension to management or the Board to assist with your projects from Criteria and RFP development to Vendor Pre-Qualification & Selection to Loan or Special Assessment Guidance and thru Project Completion.

Board Training & Developer Turnovers Are you a new Association starting up after a Developer Turnover? Or an existing Association that may not be working as efficiently as it could? Do you have Rules & Regulations in place to assist the Board in ensuring that all owners are treated equally and the community lives harmoniously? Do you have an Annual Calendar that includes all important administrative, financial and operational deadlines to ensure important items don't get forgotten? We can customize a training package to meet the specific needs of your Association, whether self or professionally managed.

Refresher Courses are now being offered to our past training clients. This is an excellent way to bring new board members up-to-speed with how to efficiently and accurately manage your Association to ensure everyone is on the same page and to avoid board member burnout.

"Do-It-Yourself" and "Management Coaching" Retainers are designed to provide on-going assistance to our self-managed Boards to encourage annual compliance with the Illinois Condominium Property Act, increasing efficiency and decreasing Board liability. Various service levels are offered on a monthly, quarterly or annual basis.

Management Searches Are you a start-up Association after the Developer Turnover looking to find new management? Or, perhaps your current management company may not be fulfilling the expectations of the owners, and the Board has exhausted its options trying to rectify the issues? We can assist by guiding the Board on the proper due diligence needed to help them make the most informed decision. Services include: Needs Analysis, RFP Development, Pre-Qualification, Interviewing, Contract Negotiations and Transitions.

What makes AAI different? We provide customized training designed for your specific association's needs, prompt responsiveness, and practical information to help empower the Board. Can you afford our services? Can you afford not to have them? Your home is most likely one of your biggest assets. We can help you save time, money and frustration while protecting and increasing the value of your property in today's very competitive market!