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Case Studies & Seasonal Tips
Click on above photo to review
"Endorsements/Links" page of our website,
including client
testimonials.
Management Search
For a 47-unit condo association in West
Lakeview, we guided the Board to: 1) Explore
all options with current Management; 2)
Analyze their
specific needs and expectations to create the
proper Criteria for new management; 3)
Develop a Request
For Proposal (RFP) based on the Board's
criteria; 4) Pre-qualify prospective
firms meeting Criteria; 5) Coordinate
interviews of the
three finalist firms selected by the Board
from 8 RFPs obtained; 6) Negotiate contract
and oversaw legal review with
Association's attorney based on Board's
directives; and, 7) Prepare owner
communication and recommend
transition protocols to provide as least
inconvenience to owners as possible.
Results: The
Board stated that
our process saved them time and was more
thorough than they could
have performed on their own. In addition, New
Management stated they have clear direction
on how to fulfill their new client's
expectations.
Project Management
We are overseeing a large masonry project
for a 19-unit condo association that is
self-managed and located in
the Edgewater area. Our assistance includes:
1) Creating an RFP for the hiring of a
consulting engineer; 2) Coordinating all
logistics and schedules on behalf of Board
for contract negotiations, legal review,
budget oversight and
project implementation; and, 3) Communication
to ensure the least amount of
inconvenience to owners during the Project.
Loan Management
For the above Masonry Project, the Board
has also
hired us to provide Loan Management services.
Our
assistance includes: 1) Create an RFP and
coordinate bank
proposals; 2) Oversight of loan application
process; 3) Board guidance to ensure all
applicable legal review and owner
notifications are being met per the
Association's governing documents; 4)
Oversight of loan process during Project and
communication of payment options to the
Owners; 5) Oversight of vendor payments
during Project; and, 6) Guidance to Board to
alleviate confusion and increase efficiency.
Results/In Progress: Guiding
the Board on both the Project & Loan Management
above is saving the Board time while ensuring
that all proper due diligence is being
performed as per their Association's
governing documents. It is also providing
the Owners with reasonable payment options to
perform much needed property repairs to
protect and increase the value of their
investment. And, for the Bank providing the
loan, it meets their criteria that, although
not professionally managed, this Association
has management guidance ensuring that their
collateral
will be protected.
Developer Turnover Training
For a 6-unit new construction condo
association located in the
Rogers Park area that was recently turned
over, the developer was also
invited to participate in the
training to review the turnover protocols
followed by both the developer and the new Board
and to
clarify the developer's
obligations to the Association.
Results/In Progress: The Board
and Developer now have clear direction on the
action items required to complete the pending
developer turnover items with a goal of an
amicable and timely resolution. Also,
recommendations were presented to the Board
regarding insurance, property tax and budget
concerns for the
Board's consideration.
Crisis Management
Transition
As noted in the news, many Associations were
left in crisis when it was discovered that
their funds--and the management company
overseeing them--were alleged to be missing.
In an effort
to assist one mid-sized Association and the new
management company they selected, we were
able to act as an extension to New Management
during this unfortunate period of crisis.
Results: The principal of
the new firm was able to
immediately assist the Board with legal
matters as our role was
to help implement transition
protocols, research the
extent of unpaid bills, and provide initial
negotiations to ensure services
would not be cut off to this Association from
vendors/utilities.
Board Training/Proper
Protocols
For an 11-unit condo
association located in the Uptown area, our
training uncovered that they had not been
following proper management protocols since the
developer turnover 7 years prior. Amongst
other issues, all owners were making
decisions and rules were not being enforced
consistently, resulting in Projects not being
completed in a timely fashion, owners
challenging the Board's decisions, and animosity
amongst owners.
Results: The
Board and Owners now have a clear
understanding of everyone's roles
and how to implement efficient
protocols.
Management Review/Needs
Analysis
For a 190-unit association in the West
Loop area,
we provided a needs analysis to address the
Board's frustrations that current
Management wasn't performing effectively and
to provide the pros
and cons of the following options: 1)
Mediation; 2) Management Search; or, 3)
Self-Management.
Results:
Mediation with existing management was
determined to
be the most cost effective and practical
option at this
time.
Spring Reminders...
Besides the obvious of turning off your
heating systems for the season, here are a
few Spring tips to get you out of your winter
hibernation....
Rubbish Rebates:
We went over
this in great detail in our Spring 2007
newsletter, but it is worth a reminder. If
your Association is in the City of Chicago
and has more than 4 units, be sure to contact
your alderman's office to apply annually for
the Condo Refuse Rebate.
Property Inspection & Repairs:
Spring is a good time to perform a
thorough inspection to address any damage
caused during the winter including, but not
limited to: Tuck pointing; Roof repairs;
Concrete walks, steps and driveways; Siding
and Gutter issues, etc. The earlier you
obtain proposals, the more chance you will
get on the appropriate vendor's schedule.
Problems will not go away, they will only get
worse and more costly so be proactive!
Landscaping/Owner Planting Day:
Smaller associations that cannot afford
big landscaping bills might consider an Owner
Planting Day, which may not only save the
Association money and beautify the property,
but can be a fun, social event! Pizza, beer
and music can go a long way to increase
community spirit and encourage owner
involvement. But, remember, participation
cannot be made "mandatory" and no reductions
to assessments can be offered, regardless of
the size of the property!
Window Washing & Carpet Cleaning:
If you can only afford these services
once or twice a year, this is a good time to
get these items cleaned to wipe away what the
winter blew in!
Of course, all of these items should be
scheduled in your Annual Calendar. Don't
have one of those and/or are unfamiliar with
the above protocols? Then perhaps our
Services will benefit you!
Coming Soon...
Currently in development is our
"Do-It-Yourself
Forms
and How To's"
including
step-by-step
instructions on how
to self-manage every aspect of your Association.
We are compiling over 50 forms, checklists and
sample letters that will be available on CD and
easily customizable for your
Association.
www.AssociationAdvocatesInc.com
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Greetings!
With foreclosures running rampant in the
news, what
can your Association do to protect itself to
ensure that one homeowner's financial
problems do not have to be absorbed by the
remaining owners? What makes your property a
better investment for a prospective buyer?
One way is to
ensure
that your Association's Rules include--and
your Board is implementing--firm
delinquency protocols so a lien can be put in
place prior to a foreclosure.
This may put the
Association in a better position to
recoup as must lost
income as possible without burdening the
other owners to make up for the loss.
Also, implementing hardship
clauses
to allow units to rent if they cannot sell
may prevent foreclosures and "fire sales" of
units that have been on the market for a
while, which may decrease the value of all
units.
And, managing your
Association
strategically, like the corporation that it
is, will set your property apart as a smarter
investment in a competitive market where many
Associations are not being managed or
maintained properly, often resulting in
unanticipated special
assessments.
In this
uncertain real
estate market, it
does not have to be all doom and gloom for
condominium or townhome associations!
Be sure
to read below for ideas on how to use the
current economy to your Association's
advantage. Also
included in this issue is helpful info on how
to be
properly covered in the event of an insurance
claim, upcoming seminars in March & April,
case studies from recent client projects, tips
applicable to the Spring season, and
services to help your Association decrease
liability and increase
efficiency.
We hope you'll find our Quarterly Newsletter
useful. If
you know of someone that would benefit from
this information and you would like to share
this newsletter with them, please use the
"Forward Email" link at the bottom of
this email, as that will save the formatting,
links
and graphics.
--Shirley
Feldmann & Angela Falzone
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| Using Today's Economy To Your Association's Advantage |
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One of the first reactions that homeowners
may have during an uncertain economy is to
close the purse strings of the Association's
wallet. While being financially
conscientious is important, the Board must also
remember its fiduciary duty to the owners.
Per Section 18.4 of the
Illinois Condominium
Property Act (ICPA), the first of a long list
of Powers and Duties of the Board of Managers
is "To provide for the operation, care,
upkeep, maintenance, replacement and
improvement of the common elements." A
property not properly maintained will
negatively impact the value of all units,
and this can be especially important in a
troubled real
estate market.
All properties--whether vintage,
rehabbed or new construction--require some
kind of annual maintenance program to extend
its useful life.
Many Associations incorrectly wait for water
leaks or other major issues before putting an
efficient maintenance program in place. And,
even then, they may decide to perform a
"band-aid" fix to delay an inevitable
major repair or replacement. Depending on
the situation, this
may be a good
decision but, if an Association is
continually patching repairs to save money,
they may spend more in the long run to catch
up.
Use today's economy to your Association's
advantage by shopping for a loan with low
interest rates on behalf of the Association
and delaying the payment burden for the
owners by the term of the loan. This would
enable the Association to get the needed
repairs and pending projects completed,
improve the value of the entire property, and
will give the owners some payment options
while not depleting
the entire Reserve account. Or, instead of
participating in the Association's loan, a
homeowner may choose to pay this special
assessment with a home equity
line of credit, currently also being offered
at lower
rates, which may
provide them with additional tax benefits.
Applying for a loan may be a bit confusing to
some, but it is worth researching to ensure
that the best rates and terms are obtained
and the proper protocols are in place to
oversee it efficiently.
Boards can seek guidance from
their management company or, if
self-managed, from a consultant, attorney or
financial outsourcing firm. Any professional
fees associated with the
Project can then be included
within the
loan.
Mark Stelter & Tim Haviland of Itasca
Bank have provided us
with the below article with some helpful
information on obtaining a loan.
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"Avoid Prepayment Penalties When Borrowing Or Pay The Price" by Mark Stelter & Tim Haviland |
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| Protect Your Home With Proper Insurance |
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We don't mean to scare you but there is a
glitch in the law... some mortgage companies
are allowing homeowners to close on their
condominium or townhome unit without
requiring proof that their individual
homeowners policy is in place! They are only
asking for proof of the Association's policy,
which would only cover very specific things
as dictated in the Association's Declaration
and per the ICPA, so this is only half of the
required insurance needed.
If you learn nothing more from this
newsletter, be sure you have proper insurance
coverage for not only your personal
belongings but also for anything within your
unit that your Association's policy will not
cover from the moment that you close on your
property.
So, how to do you determine what is proper
insurance coverage? Well, this is a
complicated question that will require many
articles to put a dent in this topic;
however, we will try to give you the basics
here so you can seek further information.
First, you and/or your insurance broker need
to read your specific Association's
Declaration to confirm what is/is not covered
under your Association's insurance policy,
which may include an explanation of how a
limited common element vs. common element is
defined. In addition, the Rules &
Regulations should be reviewed to see if
there are any Mandatory Insurance
requirements that you must abide by .
Second, based on the above review, be sure to
have the correct insurance in place for your
specific needs from the date of closing and
keep it current!
Third, when a question arises, call your
insurance agent and get a professional
opinion. The Board should also go to their
Association's agent, when applicable, to make
sure that the issue is being handled
correctly. And, when in doubt, get a legal
opinion!
Karyl Dicker Foray, CIRMS, CRIS, is a
specialist in condominium/townhome
association insurance with Rosenthal Bros.
and has
provided us with the article below offering
helpful info about how to handle a claim.
In addition, you may also click on the photo
above to obtain a handout from some past
seminars we held with Karyl about the
differences between Association vs. Homeowner
policies.
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"Insurance Claims 101" by Karyl Dicker Foray of Rosenthal Bros. |
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| Seminars for Associations & REALTORS® |
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ACTHA Spring Conference & Trade
Show--Sat., March 29th
The Association of Condominium, Townhouse and
Homeowners Associations will be holding a day
of educational seminars plus trade show
exhibitors at The Drury Lane in Oak
Brook from 8am-3:30pm.
From 1:15-2:15pm, Shirley Feldmann will be
speaking with attorney, Kathy Penland from
Penland & Hartwell, on the
subject of
Self vs. Professional Management-What's
best for your Association? By
mentioning
Association Advocates when you register, you
can attend at the reduced ACTHA Member
rate!
Chicago Association of Realtors
Last chance to attend... Thurs., March
20th
New
Construction & Conversions... Eliminate
Liability & Increase Your Sales!
Final MPP seminar with speakers Charles
VanderVennet, condo attorney, and Karyl Foray,
insurance specialist, will be held from
10am-12:30pm
@ CAR-Northwest location.
If you
are a REALTOR®, whether representing the
developer or buyer, this seminar is a must to
help you protect yourself from liability and
best represent your client. These Member
Profitability Programs are free to CAR
members, but RSVPs are required as space is
limited.
Lakeside Community Development
Center
On Tuesday, April 8th, from
6:00-8:00pm, Shirley Feldmann will be
speaking on the
subject of "Management Companies vs.
Self-Management" at the Lakeside Bank
located at 1055 W. Roosevelt Rd. in Chicago.
This is a FREE seminar, but RSVPs are
required as space is limited.
www.lakesidecdc.org
To learn more about these seminars,
please go to the Events & Seminars page of
our website. You can also obtain the
Registration form for the ACTHA event by
clicking on the ACTHA logo above.
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Winter/Spring 2008 Events & Seminars |
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| Decrease Liability & Increase Efficiency |
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Included in this newsletter are
just a few examples of how to
run your Association like the corporation
that it is to help decrease
liability and increase efficiency.
Regardless of the size of your
property or if you are self or professionally
managed, 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 & Loan Management Do
you have
projects that haven't been implemented yet
but need to be? Is your volunteer Board or
property manager too busy to research and
implement the required pending Projects? 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? Is your Budget realistic to
meet the specific needs of your property,
including setting aside "reasonable"
reserves? 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 are not 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 review past action items
lists, bring new board members
up-to-speed
with how to efficiently and accurately
manage your
Association, and 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!
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