Volume 201 No. 101

As we near the close of 2014, we feel blessed that the Cagan Management Community has the opportunity to serve your Building Community and Family. May we share in all the best in 2015.


Message from Michael M. Daniels, Chief Operating Officer

Many of our clients are unaware of the people and resources that are waiting in the background to serve them. Please contact me should you feel a project, event or issue at your property requires additional support. I will be able to allocate the proper resource or be directly involved myself, as necessary.


                [ mdaniels@cagan.com  I  847-324-8934 ]


Anticipating 2015

Community Association Update: Judicial Rulings and Laws


Palm Legislation

SB 2664

Part of this legislation attempted to shift costs associated with condo foreclosures to the associations is dead after an amendatory veto was neither upheld nor overridden. The proposal would have shifted numerous costs of foreclosed condos, including special assessments, rental fees and lawyer costs to associations. Governor Pat Quinn vetoed the bill. However, other legislative attempts to limit these collections may be in the offing for 2015.


Electronic Communications

Section 18.4 of the ICPA (IL Condo Property Act)

This section was amended to permit condominium boards to adopt rules that will allow them to deliver and distribute notices and other communication electronically. Currently, notices have to be hand delivered or sent snail mail. As long as a unit owner provides the association with a written authorization confirming they agree to accept electronic communications, it will be legally proper to do so after January 1, 2015.


Licensed Process Servers

Illinois Code of Civil Procedure Amended

As of January 1, 2015, employees of a residential housing community must grant licensed process servers entry into the community to serve process of law on a defendant or a witness who resides within a gated community or building.



Senate Bill 3057

This bill amends the Common Interest Community Association Act (CICAA). It requires an owner to provide the lease agreement they have with their tenant to the community association unless otherwise provided in the association's governing documents.



Senate Bill 3014

Effective June 1, 2015, section 12 of the ICPA amends the requirements for property liability insurance and also the fidelity bond for directors and officers insurance. It also eliminates a board's right to purchase insurance coverage on behalf of a unit as allowed by an associations rules and regulations adopted by the Board regarding mandatory unit insurance coverage.


Buyers of Foreclosed Condos

Appellate Court Ruling

Under certain circumstances a Buyer of a foreclosed condominium unit may be responsible for all unpaid assessments owed by the previous owner. Check this out before buying a foreclosed unit.


 More detailed information is available regarding legislative issues at ww.ilga.gov/ 


Water/Sewer Rates

Effective January 1, 2015, the Chicago water rates will increase by 15% and the sewer rate will increase from 96% to 100% of the water charge. The metered water charge will be $3.81 per 1,000 gallons (or $28.52 per 1,000 cubic feet).


The Department of Water Management is responsible for delivering close to one billion gallons of fresh pure water to the residents of Chicago and 125 suburban communities every day. They are also responsible for removing the waste water and storm runoff from the streets of Chicago, via their sewer system and delivering the effluent for treatment to the Metropolitan Water Reclamation District of Greater Chicago. This is all accomplished through a network of purification plants, tunnels, pumping stations, water mains, sewer mains, valves and structures that require constant upkeep and maintenance.


Water and Sewer Rates Voted on and approved by the Mayor and Chicago City Council.  




% Increase

Water per 1,000 Cu.Ft.

Water per 1,000 Gallons


















Effect. Date

% of Water Bill











Oak Park

Oak Park officials are considering increasing water usage rates by 9.2 percent in addition to a fixed customer charge to help offset increasing costs to purchase water from Chicago and maintain the village's combined sewer infrastructure.


Des Plaines

In Des Plaines, last April saw an increase from $4.679 to $5.05 due to the City of Chicago increasing their rates.  According to the finance department, there may well be another increase in April of 2015 although nothing has been determined as of yet.  


Wilmette and Evanston

Wilmette and Evanston have their own water filtration facilities and are a little less effected by Chicago rate hikes. They are currently supplying water to other communities.


In many cases, options and sources available to other suburbs are often more expensive than buying water and treatment services from Chicago. Chicago controls the Lake Michigan Spigot. The good news is the capacity of the Chicago water supply and reclamation systems is among the largest in the world.

Avoid Frozen Pipes    
 The Chicago Department of Water Management (DWM) is urging that residents take action to prevent frozen pipes in their homes and to use caution if they find that their pipes have already frozen.


"When the temperatures get cold, we ask our customers to run a trickle of water in their homes to keep water moving, which prevents frozen pipes," said Thomas H. Powers, P.E., Chicago Commissioner of Water Management. "It's best to run a very slow flow of water from the uppermost and rearmost faucet in the building so the entire system is engaged."


DWM recommends that residents take the following additional precautions:

  • Wrap pipes exposed to frigid air in blankets.
  • Open doors to attached garages and unheated basements to allow warmer air from the home to circulate.
  • Check basements and garages for broken windows or other gaps which might admit cold air.

If residents lose water service due to frozen pipes, they should never use an open flame to thaw the pipes, as frozen pipes may be close to gas lines or other hazards. Instead, use a heating pad or hair dryer to gradually thaw a frozen pipe.  


Call 3-1-1 in the following circumstances:

  • If you lose water because of a frozen water service.
  • If you see a leak in from a broken main or service pipe. Fluctuations can put stress on old, cast iron pipes; these leaks should be investigated promptly so their repair can be prioritized.
  • If you have any concerns about safety.
Community Association
Annual Awards Dinner

The CAI awards night was held at the Meadows Club in Rolling Meadows, Illinois on November 21st. The new CAI Board members were announced. Donations to the Marine Toys for Tots Foundation were collected. Cagan Property Managers (from left: Narcis Oros, Janet Nelson and Alex Filipovic) were present to witness the announcement and recognition awards as well as enjoy dinner and unique entertainment provided by Nouveau Cirque. CAI is a leader in providing guidance to the community association industry.  CAI Illinois

Cagan Leadership Seminars 2015



The general client consensus is continue to avoid bad weather when scheduling our seminars. Therefore, here are the dates for 2015. Please put them on your calendar so you can take advantage of this Cagan Client Benefit.


Thursday, April 2, 2015 - 6:30PM

Tuesday, June 2, 2015 - 6:30PM

Wednesday, September 9, 2015 - 6:30PM


This is an opportunity for Community Board Leaders to share and learn from professionals who serve community associations in a variety of ways. Presentations will be announced later.

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