Budget time can become confusing for many boards and managers. One of the biggest urban myths that Associations can fall prey to is the concept of hoping that there will be extra money left over at the end of the year and that then becomes their Reserves. Wrong! Not only is this poor financial planning, but it could open the Board up to legal risk.

Boards are obligated per the ICPA, Section 9 (c) (2) to provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements. There are five points that help to guide the Board on how to determine what is considered reasonable reserves.

A Reserve Study is one of those points that can assist a Board in understanding the maintenance and long-term financial needs of the property. That said, the other four points should also be taken into consideration during the annual budget process to ensure that the assessments will fairly reflect the market value and financial impact to the owners, while still protecting the Association in the long and short term.

Mark Waldman, formerly of HBIS Engineering and has recently opened Waldman Engineering Consultants Inc., has provided us with the below article to help explain Reserve Studies.

Lawsuits often create change in legislation and, as you can probably imagine, the community association industry is constantly evolving.

Recent changes to the ICPA include financial protections that must be taken on behalf of an association and other restrictions and standards for community association managers.

In addition, the issue of mold has become a growing concern. To address this, the Illinois Mold Remediation Registration Act was passed and will be effective January 1, 2008.

David Rudolph, P.C., from the Law Offices of David L. Rudolph has provided us with the below article to further explain some of the new laws. You may also click on the IL Seal to be directed to the ICPA.

ACTHA Regional Conference
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.

Chicago Association of Realtors
And, if you're a Realtor®, there's still time for you to attend Selling Condos & Townhomes... Save Time & Facilitate The Sale!

Topics 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 the remaining seminars will be held: 10/25-CAR North; 11/8-CAR Central.

To learn more about these seminars, please go to the Events & Seminars page of our website, which can be accessed by clicking on the link below. And, as a reminder, handouts from past seminars are now available on this page.

The Winter Reminders, Holiday Rules & Annual Calendar 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!