Page 1 - CooperatorNews Chicagoland Fall 2021

Fall 2021
CHICAGO.COOPERATORNEWS.COM
CHICAGOLAND
THE CONDO, HOA & CO-OP RESOURCE
COOPERATORNEWS
Loss, Insurance,
and Claims
A Primer
BY A. J. SIDRANSKY
continued on page 8
205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED
continued on page 8
How Has COVID Affected the
Multifamily Housing Market?
Th e Answer: It Depends.
BY DARCEY GERSTEIN
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One year-plus into the largest public health crisis in a century,
CooperatorNews
spoke to
real estate professionals across the geographic regions we cover to learn the eff ects that the
COVID-19 pandemic has had on their specifi c areas. What we found out is that the co-op,
condo, and HOA market has taken several twists and turns over the past year—and a lot of that
movement depends on where you live. In fact, even within the same region, the pandemic has
had varying impacts in luxury sectors versus middle-market, as well as in urban centers versus
more outlying areas. A number of tangential factors are playing into trends and forecasts as
well, making for a patchwork of experience across the country.
The Bounces
Perhaps unsurprisingly, the biggest dips in property value and activity were seen in the sec-
ond and third quarters of 2020, when the nation was experiencing its second wave of infections
and states were in various levels of lockdown to contain the outbreaks. Realtors across the
country were unable to show properties in person for months in many cases, and transactions
were further hampered by limits on travel, gatherings, and long backlogs in the courts. In many
U.S. cities, the civil unrest following the murder of George Floyd by Minneapolis police offi cers
last year also had a compounded impact on real estate in those markets—some of which is
still being felt. Condos and co-ops struggled as dense urban living and
shared spaces lost some of their appeal when less was known about
COVID-19 contagion and vaccines were still a pipe dream.
But all that is changing. Gail Spreen, Senior Vice President of Sales
for Jameson Sotheby’s in Chicago, sees a recovery in the market hap-
pening—not just as an end to the pandemic and its economic fallout,
but as a shift from the uncertainty and tumult felt over the last year-
plus in general. “I think it’s actually a great time to be a buyer,” says
For many, the topic of insurance can
be a bit overwhelming. Even the terms
we use as insurance purchasers differ
substantially from the terms industry
professionals use when discussing and
settling claims—which can leave lay-
people feeling like we need a translator
to make sense of what exactly we’re pay-
ing for, what’s covered, and (even more
importantly) what’s not.
For example, take the expression ‘to-
tal loss.’ The average policyholder likely
takes it to mean that there’s no hope of
repairing the asset in question, whatever
that may be. To an insurance profession-
al, however, ‘total loss’ means something
else. Replacement isn’t really the issue.
It’s more a matter of numbers; are the
proceeds from the claim enough to re-
pair the asset to its prior state? And in
the world of insurance, that’s only the
beginning—so it’s incumbent on boards,
managers, and even individual owners
and shareholders to better understand
what’s covered, what’s not, and how a
claim is made.
Types of Loss
Loss—of property, possessions, even
life—is the basis of the entire insurance
business, and therefore the industry has
as many words for ‘loss’ as the Inuit have
for ‘snow.’ That said, the basic terms
most of us need to be familiar with are
Structural Inspections
What Does Your
Region Require?
BY A J SIDRANSKY
In light of the catastrophic, deadly
condo building collapse in Surfside,
Florida, at the end of June, boards and
residents in multifamily buildings across
the country are taking a hard look at
how their own properties measure up
to the structural maintenance and safety
requirements imposed by states and mu-
nicipalities. From conducting regular,
competent physical plant inspections to
making needed repairs in a timely fash-
ion, these ordinances are in place to en-
sure the safety and integrity of buildings
and their components over their useful
lives.
CooperatorNews
spoke with attor-
neys in several markets to get a better
sense of how requirements vary across
the country, how different regions com-
pare with each other, and how residents
and administrators can do their part to
keep their own buildings safe.
Illinois
“The Illinois Condominium Property
Act does not contain any provision re-
quiring regular or periodic inspections
of a condominium building of any size.
Generally, regulation of structural and
aesthetic conditions of a building falls to
individual municipalities and is accom-
plished through local building codes and
other ordinances,” says Kris Kasten, an
attorney with Altus Legal, a firm spe-
cializing in community law in Chicago.
“Many municipalities have a department
that periodically inspects the exterior of
buildings. Those inspections are usually
to identify and address dangerous and
hazardous conditions, but may also in-
clude aesthetic issues like painting. Some
municipalities will also inspect interior
common areas in multifamily residential
buildings. Those inspections are usually
to identify and address life safety issues,
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