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Recent Projects
& Seasonal Tips
Click on the image above to review
Client Testimonials and other
helpful Endorsements/Links.
· Developer Turnover Training & Start-Up Association Protocols
for 8-unit, 9-unit, 10-unit,11-unit, 14-unit, 15-unit, 17-unit, 18-unit, 21-unit, 25-unit, 54-unit associations located on the
north and south sides of Chicago,
Forest Park and Oak Park areas.
· Management Company Consultation
Review of all internal protocols of well-established firm and provided recommendations for improved efficiency and training for staff of seven.
· Loan & Project Management
7-month oversight of large masonry project and $175,000 loan management for
19-unit self-managed association in
Edgewater area of Chicago.
· Board Training/Existing Association
for 6-unit association in Lakeview
area of Chicago.
· Property Manager Training
Training for new property manager of Chicago-based management company.
· Retainers for Previous Clients
Annual Meetings & Budget Preparation
Additional training and guidance provided for 6-unit, 10-unit, 11-unit and 12-unit associations on north side of Chicago.
· Property Manager Transition
on-site consultation and review of all internal protocols for transition from property manager of 185-unit association located in
Chicago's Gold Coast area.
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Seasonal Tips...
Winter Reminders:
Per the Illinois Condominium Property Act (ICPA), the Board must perform specific annual duties including, but not limited to, those listed below. Be sure to review your Association's Declaration/Bylaws and check with your accountant and/or attorney on the specific requirements to ensure your Association is in compliance.
Year-End Tax Returns:
All corporations, including not-for-profits which Associations are considered, must prepare a year-end tax return within certain time frames. If December 31 is your fiscal year-end, your tax return will be
due by March 15th.
Year-End Loan Compliance:
If your Association obtained a loan to complete capital improvement projects, there may be certain documentation that you'll need to provide to the Bank in order to stay in compliance with your loan agreement. Contact your bank representative or attorney with questions.
Year-End Delinquency Review:
One item of major importance, whether your Association has a loan or not, is maintaining a zero or low delinquency rate. In these tough economic times, unpaid balances may be a sign of financial problems for an owner and it is crucial for the Board to be proactive to protect the Association from lost funds due to a foreclosure. Now is also a good time to review all owner's account ledgers and create a year-end statement for any outstanding balances that may be due from late fees or unpaid violation fines. These smaller amounts may be considered minimal, but remember that these unpaid balances will appear on the Paid Assessment Letter and must be paid at the time of sale or risk a delay in Closing.
Annual Accounting To Owners:
The Association is obligated to provide owners with annual itemized accounting of common expenses for the preceding year actually incurred or paid, together with a breakdown of reserves, capital expenditure or repairs, taxes, and amounts collected, etc. If December 31 is your fiscal year-end, this document should be sent to all owners of record by March 31.
Annual Resident/Owner Info Updates:
The Board and/or Management has an obligation to keep accurate records of who is living on the property, where to send assessment and other notices, and who to contact in the event of an emergency. January is a good time to update this information including proof of insurance if your Association has in place the Mandatory Insurance Rule.
Operations Manual:
This is also a good time to review your vendor and contact information to ensure it is all current and/or to begin the research for proposals required. This will help your Association manage with a
proactive vs. reactive approach!
Spring Project Preparation:
Time to finalize researching your upcoming capital improvement projects or Spring landscaping, roof and exterior maintenance projects. Proper due diligence, attorney review, negotiations, contract signing and loan research (if applicable) takes time or you'll wait in line for scheduling with your selected vendor when you should be ready to implement your project as
soon as the weather permits!
Annual Calendar:
Be sure to review your Annual Calendar to review contract expiration dates (especially those that may auto renew) and schedule maintenance and other projects.
Don't have an Annual Calendar and/or are unfamiliar with the above protocols? Then perhaps our Services
will benefit you!
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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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Shirley Feldmann, Project Manager
773.348.0742
Angela Falzone, Property Consultant
847.685.0710
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Greetings!
Happy New Year from Shirley Feldmann, Angela Falzone and Association Advocates Inc.!
Have you been on your condo, townhome or homeowners Board for many years or are you a newly elected Board Member? In this issue, we'll review Board liabilities, responsibilities and insurance to protect the Board's actions. Also included are Winter Seminars and helpful services to decrease liability and increase efficiency.
 We have recently updated our website to include a Radio Show we participated in on the topic of "Management Disappears: How to Protect The Association." Click on the radio player to learn more about the specific topics covered and to hear this and other shows.
Since 2002, we have serviced over 100 client associations, management companies and developers and hope to have the opportunity to assist your association this year in protecting and increasing the value of your property! Now more than ever, Associations not being managed properly may negatively impact resale values. And, Association's could actually benefit from today's economy by obtaining a low rate on a loan to complete a much needed capital improvement or repair project!
If you know of someone that would benefit from this valuable 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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Board Member Fiduciary Responsibility
 Perhaps you've been on the Board of your Association for many years and have been following the same protocols by habit, but you are not sure if they are legal or correct? Perhaps you decided to run for the Board because you were concerned how things were being handled and wanted to protect your largest asset? Perhaps there are specific projects you'd like to see either implemented or stopped and wanted to make sure you had the ability to make decisions to pursue those personal interests? Or, perhaps you were newly elected to the Board after being turned over from the developer and nobody else would do it?
Regardless of the reason, it is important for you to understand that every Board Member has a legal obligation to the Association it represents. In the Illinois Condominium Property Act (ICPA), Section 18.4/Powers and Duties of Board of Managers states, "In the performance of their duties, the officers and members of the board, whether appointed by the developer or elected by the owners, shall exercise the care required of a fiduciary of the unit owners." In simple terms, this means that Boards must put the best short-term and long-term interests of the Association before their own personal interests.
So, what exactly does it mean to be a fiduciary, how do you balance your personal needs and that of the Association, and what can you do to ensure that you are not taking on personal liability and risk by accepting a voluntary position that you may not have wanted in the first place?!
Schwartz, Wolf & Bernstein LLP, Attorneys at Law, have provided us with the below article to help better understand this issue. You may also click on the above graphic to learn more about their firm.
| "The Association Board Member & Fiduciary Responsibility" by Schwartz, Wolf & Bernstein
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Protecting the Board From Liability
So, you agreed to be on the Board but you were never told that you could possibly be sued personally for liability as a Board Member? While there is no condo police out there knocking on your door, one of the best ways to protect yourself from liability is to do things correctly as dictated by law. Today's homeowners are asking all of the right questions and, yes, some have even been known to sue their Boards! Become educated on what your role is as a Board Member and, if applicable, that of your property manager if professionally managed. Lawsuits are costly, may increase insurance premiums and can make life uncomfortable when the opposing neighbors run into each other in the common areas.
Ignorance of the law is not a defense! This applies whether you are self or professionally managed and regardless of whether you are in a 3 or 700-unit property! The Board makes decisions and Management implements. A good management company is going to make sure their Boards are trained and that they follow the law. If you do, then even if you and/or the Board is sued, you should be on solid ground to get a judgment in your favor.
And, hopefully, you have the proper insurance to cover you! Among other insurance requirements, per Section 12 Insurance (a) (3) (D) in the ICPA, "The board of directors must obtain directors and officers liability coverage at a level deemed reasonable by the board, if not otherwise established by the declaration or bylaws..." However, if the Board is not following the law and is instead making decisions based on personal agendas and not in the best interest of the Association, then it is possible that the D&O coverage may not cover those actions.
Karyl Dicker Foray, CIRMS, CRIS, from Rosenthal Brothers Insurance has provided the below article to help better understand D&O insurance. This is Part 2 in our Insurance Series. You may also click on the above graphic to learn more about Rosenthal Brothers Inc.
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Winter Seminars for Associations
CAI-Illinois (Community Associations Institute)
27th Annual Conference & Trade Show
Community Living Unmasked-An Educational Extravaganza!
 Saturday, January 17, 2009
8am - 4pmHyatt Regency O'Hare
Roundtable Sessions:
10:45 -11:45 am/Self-Managed & Small Associations
There will be over 30 Educational Sessions and over 100 Exhibitors from 8am to 4:00pm and will be held at the Hyatt Regency O'Hare in Rosement, Illinois. Shirley Feldmann will be speaking at the 8:45am Session and Angela Falzone will be speaking at the 10:45am Session. Pre-Registration is required.
To learn more about these seminars, please go to the Events & Seminars page of our website. You can also obtain the Registration form by clicking on the CAI logo above.
Events & Seminars |
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Decrease Liability & Increase Efficiency
 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 protocols, then perhaps you'd benefit from our services! Click on the photo above or link below to learn more about our services. Below are just a few ways we can be of help to your Association....
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!
Learn more... Scope of Services | |
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