Page 15 - Chicago Cooperator Spring 2019

CHICAGOCOOPERATOR.COM THE CHICAGOLAND COOPERATOR — SPRING 2019 15 YOU’LL LEARN SO MUCH YOUR HEAD COULD EXPLODE. (Our lawyers said we had to warn you.) THE COOPERATOR EXPO 2019 WHERE BUILDINGS MEET SERVICES STEPHENS CONVENTION CENTER, ROSEMONT — WEDNESDAY, MAY 8, 10-3:30 FREE REGISTRATION: CHICAGOCONDOEXPO.COM what is needed, including estimates for costs. Speak with banks and get information on financing, which depends on cost and available reserve funds. Obtain info about individual loans if special assessment is a possible funding scenario. Once financing is settled, hire your contractor, get permitted, and get the work done.” The degree to which a project will be disruptive depends on the nature of the work, but a board should always consider how any construction will impact residents' lives. “The disruption caused by noise (i.e., jackhammers), dust, odor (from membrane, paint or prep projects) and general lack of privacy – we're talking workers hang- ing around outside your 30th floor win- dow – cannot be overstated,” cautions Rick. “Neighbors will call the alderman about your sidewalk protective canopies, your driveway may need to be closed and front entrances covered, residents can't go out on balconies during work hours in case tools drop.... it goes on and on.” “I've had projects where I've stripped right down to the 2 x 4 studs, had to take insulation out, you name it... and when something major like that happens, it will indeed be disruptive,” adds Anastasi. “You could have limited access to buildings, loss of parking space access, dumpsters on-site, general noise, closure of certain amenities. It's a construction zone, and a large project at a good-sized building can take a whole year, so things can come at residents from every angle, and you have to live with that.” It's important to be honest and open about the extent of construction; boards or management looking to sugarcoat things will most likely be confronted by surprised and angry residents. “Communication, no- tices, and, if necessary, coordination with neighbors may all play a part in the overall construction process,” says Kinser. “Com- pliance with local laws and regulations is essential in preparation and completion of all work. Safety is also at a high level of consideration, to ensure that OSHA \\\[Occu- pational Safety and Health Administration\\\] standards are incorporated and adhered to.” n Mike Odenthal is a staff writer/reporter for The Chicagoland Cooperator. ‘unsecured creditor’ to the extent of the unpaid balance of the amount of the ar- rearage due as of the date of the filing of the petition. It may then have to file an amended Proof of Claim in a Chapter 13 to reflect the change in its status from se- cured to unsecured creditor. So, for ex- ample, the association is owed $30,000 when a Chapter 13 petition is filed, and the debtor pays $2,000 to the association under the Chapter 13 plan. The unit then gets sold (with no payment at the clos- ing to the association). The association is required to refile its Proof of Claim showing it now as an unsecured credi- tor for $28,000. Being changed to unse- cured creditor status will likely affect how much of its remaining claim gets paid, as a Chapter 13 plan may allow for less than 100 percent payment to unsecured credi- tors. “Keep in mind that if the unit owner files bankruptcy, that usually means he/ she has few assets. The debtor’s equity in the unit is likely his/her biggest asset. The unit may or may not have equity and even if it does, the 1st mortgagee will have a claim on the equity prior to the associa- tion. That prior claim may use up all or most of the equity, leaving little if any for the association. If a Chapter 7 discharge is granted by the Court, the association loses its right to pursue the debtor per- sonally. So, in a Chapter 7 if the unit is sold and there is no equity in the unit, there is often no further way to collect to the arrearage. Even if the owner’s bank- ruptcy case is dismissed or the automatic stay is lifted, there is a substantial likeli- hood that the debtor is ‘judgment-proof’ at that time. So taking action to obtain a judgment (once it is permitted) will not generate much, if any, money. The only advantage to pursuing collection, if and when permitted, is that if the debtor even- tually gets back on his/her feet and gets good job (which could be years later), a judgment will enable the association to continue to pursue the former owner for Q&A continued from page 5 the back–assessments (assuming it can find the debtor). “Frankly, once an owner files Chapter 7 and the unit gets sold or foreclosed out, it is usually the time to write off any re- maining assessment arrearage as ‘uncol- lectible.’” n Disclaimer: The answers provided in this Q&A column are of a general nature and cannot substitute for professional advice regarding your specific circumstances. Always seek the advice of competent legal counsel or other qualified profes- sionals with any questions you may have regard- ing technical or legal issues. Do you have an issue with your board? Are you wondering how to solve a dispute with a neighbor? Can’t find informa- tion you need about a building’s finances? Our attorney advisors have the answers to all of your legal questions. Write to The Chicagoland Cooperator and we’ll publish your question, along with a response from one of our attorney advisors. Questions may be edited for taste, length and clarity. Send your questions to: david@yrinc.com. Q&A of four condos that Winfrey sold as one 9,600-square-foot space in 2015 to rehab- bers for $4.65 million, following the end of her talk show in Chicago. This refur- bished 3,300-square-foot, three-bedroom condo on the 56th floor has a white interi- or and low gloss wood flooring, according to Crain’s report. The three other condos from the 2015 transaction were resold for the total price of $8.21 million. PULSE continued from page 4 Chicago Bulls Coach Sells River North Condo Chicago Bulls coach Jim Boylen made a lateral move off the basketball court: The Chicago Tribune reported that Boylen and his wife Christine sold their two-bed- room River North condo for $463,000 last October, and the couple have moved to a unit in the same loft building next door that they purchased in October 2017 for $540,000. The Boylens’ real estate agent told the Tribune that the couple had origi- nally planned to combine the units, but ended up selling the first apartment, which they initially listed for $519,000. Ex-Kraft COO’s Park Tower Condo Sells for $69.58M A former Kraft executive’s five-bed- room Park Tower condo sold for $6.958 million, according to the Chicago Tribune. The apartment, which also has five-and-a- half baths and two fireplaces, was sold by Georges El-Zoghbi, who was a COO of Kraft from 2015 to 2017. He reportedly bought the apartment in 2016 for $4.5 mil- lion and later listed it last December for $7.5 million. The identity of the buyer was not made public. Condo News Officials: Smoking Materials Linked to Palatine Condo Fire The Palatine Fire Department said that improperly disposed-of smoking materi- als were apparently the cause behind a condo fire in Palatine on January 26, the Chicago Sun-Times reported. Firefighters were called in after an alarm went off at a building on North Bayside Drive, with smoke coming out of a third-floor bal- cony. The building’s residents evacuated successfully and no one was reportedly injured; the fire destroyed the third floor apartment. n Please submit Pulse items to David Chiu at david@cooperator.com