Having worked with community associations for over 20 years, I have found that the “trick” is usually the same. Regardless of the size, location, physical structure or legal entity, the sometimes-wearying enigma is always to try and operate as a successful community. And it seems the methods for doing so can be found in the same roots as those employed by the magician or illusionist. Success can be found in a disciplined practice regimen for such important items as the annual budget, enforcement of the declaration, by-laws and rules, electing board members who are engaged and focused, and choosing of quality, third party advisors.
Success in forming and passing an annual budget can sometimes be as tricky as pulling a rabbit out of a hat. You reach into the “hat” filled with numbers hoping to pull out something that looks like a balanced budget. But to get to that point, you must get the other board members to agree on what that “rabbit” should look like. One common method is to start with an agreed-upon end goal or objective and work your way backwards from there. Questions that need to be answered include: Aare we allocating operating budget dollars to the areas of greatest need? Are we playing a shell game with common element repair dollars when we really should be raising the curtain and embracing all the work that needs to be completed? Are we reserving enough funds for the next major common element repair project and, just as important, are we prepared to increase assessments or pass a special assessment if necessary?
Raising assessments or passing a special assessment seems to be the trick some boards just can’t master.
I have attended plenty of board and unit owner meetings and heard some common illusions (reasons) for resisting an assessment increase or passage of a special assessment. These include the strain it will cause for unit owners on a fixed income, the lack of a perceived benefit for those unit owners who will be selling in the near future and the ever popular, “it ain’t really broke so don’t fix it.” Property managers are generally well practiced at the trick of delivering honest but necessary words of wisdom. Sometimes the plain and simple truth of the matter is as follows...”This property may not be the one for your budget.” There is nothing written in the Illinois Condominium Property Act that states a governing board must allow a property to deteriorate in order to keep the assessments affordable for all the unit owners. In fact, it states almost the complete opposite. Board members, according to section 18.4(a) have a duty to “provide for the operation, care, upkeep, maintenance, replacement and improvement of the common elements.” Doing anything less would require creating an illusion at some point that the common elements are just fine...until they are not, and the trick falls apart. Think about owners of single family homes. If the cost to maintain and repair their home becomes more than their budget allows for, they face the same trick of “down-sizing” to a more affordable monthly budget figure. Incomes can change over time when someone retires, changes careers, or experiences an
Progressive Professional Publications
& Programs for Practical People
Condo Lifestyles Buildings &
Chicagoland Environments
» » »
© Upcoming
Events...pg
MCD GOLF & BOCCE INVITATIONAL @ Eaglewood Resort / JULY 12th
MCD SHOWCASES THE RACES @ Arlington Racecourse / AUGUST 22nd
STATE OF THE INDUSTRY PROGRAM » LUNCHEON & SEMINAR / DECEMBER 12th
630.202.3006
mdavids@condolifestyles.net
www.condolifestyles.net
www.chicagolandbuildingsandenveironments.com
www.cai-illinois.org • 847.301.7505 | 39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
