Recent Projects
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Click on the image above to review Client Testimonials and other helpful Endorsements/Links.· Management Mediation &
Operations Manual Development for a 500+ unit HOA with multiple sub associations located in a western suburb of Chicago. · Developer Turnover Training and Start-Up Association Protocolsfor a 15-unit association located in Lincoln Square and a 19-unit association located in the Grand Crossing areas of Chicago. · Board & Self-Management Training for Existing Associationsfor a 6-unit association in Albany Park (Chicago), an 18-unit association in Lakeview (Chicago) and an 18-unit townhome association in Oak Park. · Retainers & Project Consultation
for an 18-unit association in Lakeview (Chicago), a 19-unit association in Edgewater (Chicago), a 36-unit association in Oak Park, and a 100-unit association in the West Loop (Chicago).
· Simplified Self-Management-A Practical Guide w/How-To's & Forms
for an 18-unit townhome association in Oak Park, an 8-unit association in Lakeview (Chicago), an 8-unit and 19-unit association in Edgewater (Chicago), an 18-unit association in Grand Crossing (Chicago), a 60-unit association in South Shore and a trade organization.
www.AssociationAdvocatesInc.com
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SEASONAL TIPS...
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Click on the photo to read published articles
AAI wrote or were quoted in and to hear us
on broadcasted Radio Shows.  |
Fall Budget & Annual Meeting Preparations:Per the Illinois Condominium Property Act, the Board must follow specific protocols to adopt the annual Budget and implement proper Annual Meeting notification and voting procedures. If not done correctly, any decision made by the Board can be challenged and the process may have to be redone. Be sure to review your Declaration and Bylaws for your Association's compliance requirements.Annual Budget:If you are on a January to December fiscal year, then now is a good time to finalize all contract renewals, rate increases, future project costs, review Reserve Study and perform an analysis of all past and current expenses. If you wait till the last minute, you may not have time to negotiate and/or look for competitive proposals if a change of vendor may be needed. Annual Meeting:If your Annual Meeting is towards the end of the year, now is a great time to confirm your meeting date and location if your Association does not have on-site meeting facilities. Also, this will help to determine your owner notification schedule including board application deadlines and proxy notices.Landscaping:Make sure there is sufficient watering of plants and grassed areas to prevent long-term harm to the Association's landscaping. Watering schedules and/or sprinkler timings should be monitored as the warmer weather prevails and rains subside to ensure adequate moisture for proper growth. Early morning or late evening is usually best for sunny areas as the heat of the day can burn freshly watered plants. Check with your landscaping company or garden center for the best time of the year to replace dead plants.
Window Washing:
If you wash your windows twice/year, this is a good time to schedule your Fall washing before the weather becomes uncooperative or you may miss out.
Snow Removal:
It may be the last thing on your mind, but now's a good time to review your snow removal needs and to either renegotiate the existing contract or research and negotiate for a different vendor. Waiting till the last minute could result in booked vendors or higher rates!
Exterior Projects:
Be sure to verify that any exterior projects such as roofing, masonry, etc. are either progressing as planned or the schedule hasn't changed due to any rain or other unanticipated delays that may prevent completion prior to bad weather.
Annual Calendar:
Review your Annual Calendar to confirm 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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Shirley Feldmann
Founder/Project Manager
773.348.0742
Angela Falzone
Property Consultant
847.685.0710
Shirley Feldmann & Angela Falzone  |
Click on the photo above to learn more about Who We Are and our credentials.
© 2010 Association Advocates Inc. All rights reserved.
Information provided in this newsletter is not a replacement for legal, accounting, or other professional services, as needed. Articles enclosed are with the permission of writer. Association Advocates Inc. is not responsible for information provided by a third party.
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Greetings!
Association Advocates Inc. is dedicated to helping homeowners protect their investment, which is crucial in today's competitive real estate market. Managing your Association like a well-run business may not only benefit unit sales from a marketing standpoint, but may even help determine whether a potential buyer gets a loan.
In this issue, you'll learn how
to fund your common area repairs through an association loan and how a
short sale can benefit both the seller and potential buyer. Also save
the date to learn the basics from our new Simplified Self-Management program in our September seminar.
Summer is a great time to proactively
review the physical needs of your Association. This will also help you
prepare for the Annual Budget process, which should begin by August. These and other proactive ideas can be found in the Seasonal Tips section, designed to prevent "reactive" or crisis management.
If you would like to share this newsletter, the "Forward Email"
link at the bottom of this email will save the formatting, links and
graphics. All email addresses are kept confidential and are not shared
with anyone.
-- Shirley Feldmann & Angela Falzone
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 Funding Common Element Repairs Through An Association Loan
Nobody likes the idea of having to spend money fixing a roof or replacing deteriorating masonry. Even in today's tough economic times, Boards have a fiduciary duty to properly maintain the property and save enough for reasonable reserves or risk lawsuits by owners and rejected loans for potential buyers.
With many owners in collections or facing foreclosures, Boards today are finding it challenging to strike a balance between their brain, their hearts and their wallets. If they ignore the repairs, they are negatively impacting the property and it will probably cost more in the long-term. If they approve a large special assessment, they may financially burden struggling owners who cannot pay.
A good compromise may be to prioritize the most important projects and phase in the rest. Some options a homeowner has to pay a large special assessment include cash on hand, a home equity line of credit, refinancing an existing mortgage, borrowing from family or depleting retirement savings. One way to decrease the immediate financial
burden on the owners, and lessen the likelihood of an owner defaulting to the Association, is to provide owners with a long-term financing option using the borrowing power of the Association that
they may not have available as an individual.
An association loan may be a viable solution to get the repairs completed and help the owners meet their financial obligation to the Association. Each owner has the right to choose how to pay for his or her special assessment. This simply provides them with an alternative, especially for those that may not be able to secure their own funds. Detailed project budgeting, oversight and communication will help the owners plan for the expense in advance.
If the Board follows all proper protocols per its governing documents and meets with current banking requirements, a common element repair loan can provide the needed funds to increase the value of the property.
Tim Haviland and Mark Stelter of Itasca Bank & Trust have provided us with the below article explaining community association loans including how to apply, what banks look for and the process.
"An Introduction to Common Element Repair Loans" by Tim Haviland & Mark Stelter
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Demystifying Short Sales & Avoiding Foreclosures
 It is really heartbreaking to hear about homeowners that are losing their homes. Not only is it devastating for the owner, it decreases the value of the entire property and becomes a financial burden on the remaining homeowners of an Association because they must make up for the budget shortfall of unpaid assessments.
A "short sale" is a solution that can benefit the selling homeowner, the bank holding the mortgage, and a potential buyer. The government is even offering cash incentives to encourage the short sale process.
In most cases, the negative effects of a foreclosure on a defaulting homeowner's credit and other personal financial history are far more long-lasting than that of a short sale. And, the bank stands to loose more money and time in a foreclosure.
With either a short sale or foreclosure, a potential buyer can benefit greatly by obtaining a property for a considerably decreased price and one they may not otherwise have been able to afford. The process can take some time, so a buyer in this arena must be patient and plan accordingly with living arrangements and financing needs. For example, a longer mortgage lock should be considered taking into account the time frame that may be needed to negotiate with the bank and close the deal.
Michael Stack, CPA, CDPE, CRPM, and Realtor® from Keller Williams, has provided us with the below article to help better understand the short sale process.
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"The Five Strategic Steps To Efficient Self-Management"
Hosted by The Village of Oak Park
Housing Programs Division
Wednesday, September 29th: 7 pm - 9 pm
 Village of Oak Park123 Madison St.
Room 201Oak Park, IL
Free Seminar
Learn some of the basic principals from our new:
Simplified Self-Management
A Practical Guide With How-To's & FormsAn essential resource of best practices for Boards of
condominium and community associations in Illinois
This free seminar is open to residents and non-residents. RSVPs are encouraged to ensure enough handouts are available, but walk-ins are welcome.
Learn more.... Events & Seminars |
Click on photo to learn more About Us/Services.  |
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 to increase efficiency and decrease risk.
Can you afford our services? Can you afford not to have them? Your home is most likely one of your biggest investments. We can help your Board save time, money and frustration while protecting the value of your property in today's very competitive market.
Whether self or professionally managed, and regardless of the size of your property, if your Association doesn't understand how to stay in compliance with all applicable laws and protocols, then our services will benefit you.
Below are just a few ways we can help you...
· NEW! Simplified Self-Management--A Practical Guide With How-To's & Forms
· NEW! Association Allies... Partners for simplified self-management
· Board & Self-Management Training
· Developer Turnovers & Start-Up Protocols
· Management Coaching Retainers
· Project & Loan Management
· Management Searches, Mediation & Transitions
· Refresher Courses for AAI alumni clients
We can help you learn how to manage your Association like a well-run business to increase efficiency and decrease risk. Call us today!Learn more... Scope of Services
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