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Articles
& Seasonal Tips
Click on the image above to obtain the below published articles that we were recently quoted in or wrote, as well as, other helpful resources.
· "Amid hard times, good news for associations-New mortgage rules will boost financial health"
As published in the Chicago Tribune, 12/25/09.
· "Creating Transparency Decreases Board Burnout"
As published in the October 2009 issue of ACTHA NEWS (Association of Condominium, Townhouse and Homeowners Association).
· "Getting your property ready for the winter"
As published in the Chicago Tribune, 10/16/09.
· "Avoiding The Election Nightmare"
As published in the Fall 2009 issue of CAI's Common Interest Magazine (Community Association Institute, Illinois).
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Seasonal Tips...
End-Of-Year 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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It's almost ready!
Available February 2010...
Simplified Self-Management
A Practical Guide with How-To's & Forms
An essential resource of best practices for Boards of condominium and community associations in Illinois
Includes step-by-step instructions on how to self-manage every aspect of your Association. We have compiled over 70 forms and 17 How-To's in 8 crucial categories that are easy to use and customize for your Association.
Click on the House Graphic above to learn more about "Simplified Self-Management" or go to the new "Self-Management" section of our website.
www.AssociationAdvocatesInc.com
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QUICK LINKS (All Web Pages have been updated; You may need to click "Refresh" to see new pages)...
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Shirley Feldmann
Founder/Project Manager
773.348.0742
Angela Falzone
Property Consultant
847.685.0710
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Shirley Feldmann Angela Falzone
Click on the above photo to learn more about our credentials
© 2010 Association Advocates Inc. All rights reserved.
Information provided is not a replacement for legal, accounting or other professional services, as needed. Articles enclosed are with permission by writer. Association Advocates Inc. is not responsible for information provided by a third party.
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Greetings!
Happy New Year from Shirley Feldmann, Angela Falzone and Association Advocates Inc.!
Due to new mortgage lending requirements, now more than ever, your Association must be managed correctly or homeowners may have difficulty obtaining approval to refinance their unit. In addition, potential buyers may be denied a loan to purchase into your property if not in compliance. Both scenarios would negatively impact all owners in your Association.
In this issue, you will learn about the new FHA regulations and how they affect your Association, along with, the expanded Federal Homebuyer Tax Credits. Also included are tips on how to lower winter-related maintenance costs, recently published articles, seasonal tips and upcoming January seminars.
Since 2002, Association Advocates has serviced over 100 client associations ranging in size from 3 to 700 units, management companies and developers. We hope to have the opportunity to assist your Association this year (or those that you represent) in protecting and increasing the value of your property!
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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New FHA Regulations & Homebuyer Tax Credit Changes
With the nation's financial crisis, the mortgage lending requirements have become a moving target as the rules are constantly changing. In addition to stricter mortgage criteria for conventional loans, new FHA (Federal Housing Administration) guidelines that took effect December 7, 2009, could actually benefit your Association, if you are in compliance.
Lenders are now requiring better guarantees to ensure loans will be repaid through the compliance of specific criteria that they have determined represents a "healthy" investment. This affects every condominium, townhome and homeowners association because it may determine whether a buyer will or will not get a loan to purchase or refinance a home. Homeowners unable to obtain financing could negatively impact their Associations through increased foreclosures, lost assessment income and decreased property values overall.
The FHA currently insures approximately 23% of all new mortgage transactions, especially for first-time homebuyers, as it has lower down payment and other less restrictive requirements due to government subsidies. Complying with the FHA criteria will simply open up more loan options for homeowners.
The good news is that most of the "new criteria" is just good business management including, but not limited to, increasing reserves and decreasing delinquencies. These are best practices that Boards should have been implementing all along-now they will hopefully be forced to do so. Associations in compliance with these new regulations will become easier to sell in this competitive market, property values may actually increase, and the investment of all owners will be protected.
In addition, the Federal Homebuyer Tax Credit was expanded on November 6, 2009 through June 30, 2010 to include more than just first-time homebuyers, which should provide additional incentives for more purchasers to enter the market.
Peter Santangelo, CMCA and President of Community Advantage of Barrington Bank & Trust N.A., has provided us with the below article to help better understand the new FHA regulations.
Coby Hakalir, Mortgage Loan Officer, Bank of America Home Loans, has provided us with the below article regarding the Tax Credit Updates.
To learn more about FHA approvals, click on the above graphic or contact the FHA Resource Center at info@fhaoutreach.com or (800) CALL-FHA.
| "New Fannie Mae, Freddie Mac & FHA Regulations. Do they affect your association?" by Peter Santangelo
"2010 Federal Homebuyer Tax Credit Update" by Coby Hakalir
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Containing Winter Maintenance Costs
Every season brings its own challenges to the maintenance of your property, and winter brings the most perils. Snow, ice, freezing pipes and extra holiday traffic are just a few of the many added nightmares that must be controlled during the winter months.
To contain the added costs involved with proper winter maintenance, the needs of the property, availability of the Board and/or Management, and habits of the owners must be taken into account. The Board should consider adding proactive procedures and rules that educate owners and create an atmosphere for compliance. Emergency protocols should be in place before they are needed and communicated to all owners.
For example, are many owners "snowbirds" or winter vacationers and/or is a unit vacant due to a foreclosure or slow sales? If so, rules should be in place regarding the minimum temperature set in each unit to prevent the freezing and bursting of pipes. Ice makers should be shut off to prevent overflow, which could cause serious water damage. Water lines to dishwashers and washing machines should also be shut off. The unit owner (or bank or Realtor) should be required to have the unit checked regularly to minimize damage, especially during the cold weather.
Do holiday decorations increase cleaning costs? Your rules should include the mandatory use of Christmas tree bags. Dry, brittle trees not only pose a fire hazard to the property, but cause a mess when dragged through the building without being contained in plastic bags. Your rules should state that any debris left by an owner will be cleaned by the Association and billed back to the applicable unit, which should be easy to identify by following the trail of needles back to the unit.
The janitor, manager and/or Board should frequently walk the property to note possible weather-related issues-especially in regards to the roof, gutters and sidewalks-which could be damaged due to extreme conditions. By prudently obtaining proposals now for needed repairs, you will be in a better position to get these projects done as soon as weather permits and before vendor schedules are full.
Although you may have missed out on enforcing such rules for this season, there is plenty of time to implement proper Rules & Regulations adoption protocols in time to implement for next year.
Jim Smelter and Steve Piraino from S&D Prime Maintenance have provided the below article with a Winter Maintenance Checklist. You may also click on the above graphic to learn more about them.
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Winter Seminars for Associations
CAI-Illinois (Community Associations Institute)
28th Annual Conference & Trade Show
Finding Treasure In Your Community
 Saturday, January 16, 2010
8am - 5pmHyatt Regency O'Hare
Educational Seminars:
So You've Been Elected To The Board-S. Feldmann
Session 3B: 1:40 pm - 2:40 pm
Post Developer Turnover-A. Falzone
There will be 17 Educational Sessions, Legal Update, Manager's Licensing Update and over 140 Exhibitors. It will be held at the Hyatt Regency O'Hare in Rosemont, Illinois. Shirley Feldmann will be speaking on the panel of the 11:20am Session and Angela Falzone will be speaking on the panel of the 1:40pm Session.
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
 What makes AAI different? We provide customized training designed for your Association's specific 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 the value of your property in today's very competitive market.
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. Below are just a few ways we can be of help to your Association....
NEW SERVICE:
Association Allies... Partners for simplified self-management offers a cost effective alternative for smaller associations that would like to be professionally managed but may find it cost prohibitive to do so. It is designed to work in tandem with our training & retainer services providing access to trusted professionals and discounted prices to help the Board increase efficiency and transparency.
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.
"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. Various service levels are offered on a monthly, quarterly or annual basis.
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 the Board or Management 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.
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.
Learn more... Scope of Services | |
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