Page 6 - Chicago Cooperator Summer 2019

6 THE CHICAGOLAND COOPERATOR —SUMMER 2019 CHICAGOCOOPERATOR.COM QUESTIONS & ANSWERS Legal Q A& Hiring a Tax Attorney Q As a condo association in Il- linois, do we have a fiduciary duty to hire a property tax at- torney in an effort to lower our assessed we reject a candidate, we would like to avoid valuations? If successful, each owner the threat of litigation and use our ADR rule, would pay a percentage of the first year’s which currently only applies to shareholders savings. —Seeking Advice on Assessments A According to attorneys Timothy Jacobs and Jessica Ryan of the law firm Kovitz Shifrin Nesbit, which has offices in Chi- cago, Mundelein, Naperville, and Racine: of Sima L. Kirsch in Chicago. “It’s not as if you “The prospects for a successful appeal are are requesting protected information. You maximized in a group appeal, inclusive of may include an ADR paragraph, which are all units, for a variety of reasons, includ- ing: “1). The Illinois Constitution requires with it, but it is doubtful that anyone would that assessments be uniform. Appealing reject completing the application because of all units of an association together aids it. Th is is not intended as legal advice, and any the assessors in ensuring this uniformity legal questions should be discussed with an of assessment within the association. “2). Lower sale prices that reduce the market value of one unit will have a simi- lar effect on all other units regardless of type. A group appeal allows the assessors to spread this reduction on all units more easily in a single group appeal. “3). Assessors prefer group appeals be- cause it allows them to analyze all units in are. Where do I have to ask to get this infor- the association in one appeal rather than mation? perform a piecemeal analysis that indi- vidual appeals engender. “As a result, it behooves an associa- tion to file collectively as a group so as to improve the chances of securing re- ductions in the units’ property tax assess- ments. Although the association board an attorney for the Chicago-based fi rm of may not have a fiduciary duty to pursue Levenfeld Pearlstein, LLC. “However, there a group tax appeal on behalf of all own- ers, the board does have an obligation ity protection for board members and some to act in the best interest of the owners businesses, and banks might require an asso- collectively, and to obtain/adhere to the ciation be incorporated to transact business advice of experts. Because a group appeal with the association. To determine whether a maximizes the likelihood of success, most condominium or community association has property tax attorneys recommend that been incorporated with the State of Illinois an association board pursue an appeal on Secretary of State, and is currently in good behalf of all owners. “In addition, the Illinois Condomini- um Property Act allows for the board to Services Database and search for their asso- charge back the legal fee to the owners. ciation’s name (https://www.ilsos.gov/corpo- Most lawyers charge a percentage of the ratellc).” tax savings and inform the board what each unit should be assessed to cover the legal fee. Therefore, because there is very little risk to an association, and great ben- efit to the owners, a group tax appeal is generally the best option for successful results.” Inserting ADR Into the Application Q Can we include an alternate dis- pute resolution (ADR) in our co- op’s application itself? Since the ap- plicant is not a shareholder yet, is this legal? If (including the seller). —Covering Our Bases A “I’m assuming the application is a standalone administrative document of the association,” says attorney Sima L. Kirsch of the Law Offi ce very common these days. Th is does not mean that there won’t be a party that may not agree attorney that practices in this fi eld.” Is My Association Registered? Q I want to know if my condo asso- ciation is legally registered, because the president of association refuses to show me any documents to verify that we —Resident Seeking Answers A “Illinois law does not require that condominium asso- ciations be incorporated as a nonprofi t corporation,” said Adam Kahn, are many benefi ts to doing so, such as liabil- standing, an individual may access the Illinois Secretary of State’s Department of Business n Disclaimer: Th e answers provided in this Q&A column are of a general nature and cannot substitute for professional advice regarding your specifi c circumstances. Always seek the advice of competent legal counsel or other qualifi ed profes- sionals with any questions you may have regard- ing technical or legal issues. For the “Best Laundry Service in the Business”or the “Best Laundry Service in the Business” Call Coin Washer at (800) 338-COIN | Elmhurst, Illinois 60126 C W OIN ASHER C . O •Proudly Serving the Chicagoland and Midwestern Area since 1958 •Multi-Family Housing Laundry Room Sales, Service, Leasing, and Rentals. •Laundry Room Lease and Rental Programs Custom Tailored to Your property’s needs and expectations •Coin/Smart Card/Credit Card/Payment App Activated Equipment •Laundry Service with Integrity and Reliability F •Laundry Service with Integrity and Reliability Old Fashioned Service with Modern Laundry Room Technology