Page 8 - Chicago Cooperator Summer 2019

8 THE CHICAGOLAND COOPERATOR —SUMMER 2019 CHICAGOCOOPERATOR.COM CONT... one in-group representing the younger members and the other, the older ones,” says Steven Greenbaum, Director of Prop- erty Management for Mark Greenberg Real Estate in Long Island City, New York. “Two entirely different mindsets where everything one group wanted to do, the other adamantly refused – and vice-versa. “For example, the younger group want- ed new amenities, and to embrace the latest technology and services. The older group preferred to add nothing, and keep maintenance charges stable. Whenever the younger group would win a close vote 5-4, and we’d implement whatever their decision was, the losers would get apo- plectic, asking, ‘Who told you to do this?!’ board or association may feel like having we put in – longer than many other busi- or ‘How dare you do that?!’ And we’d have teeth pulled at the time, a manager will ness of which I’m aware – and the amount to explain to them the significance of the ideally come out of the experience with a of effort this takes, it’s just sometimes not voting process. We could never make that board hap- py. We spent so much time at meetings playing referee and dealing with nonsense politics, that the whole at- mosphere became uncon- ducive to getting things done. The groups would rally shareholders against one another, write slander- ous letters, screaming matches would tion is hindering you from focusing on carry out into the halls... Nothing we did other business, taking too much of your seemed to mitigate any of this.” Learning Experiences While dealing with an unreasonable rnfeld. “Given the extremely long hours better idea of what worth it to deal with an association that is is and is not ac- ceptable in regard to professional conduct, and will work environment? Mileage varies based have greater in- sight about which has managed many associations over the associations might course of many years is dreading going be a good fit going to work, that’s a good sign that a profes- forward. “If an associa- time, or is simply not profitable, it’s proba- bly in your best interest to leave,” says Ko- running you ragged for little return.” At the end of the day, what price should a manager put on maintaining a healthy on the individual. But if someone who sional relationship may be unhealthy and is worth a reevaluation. n Mike Odenthal is a staff writer/reporter with The Chicagoland Cooperator. ABSENT OWNERS continued from page 7 boring one, resulting in different requirements literally a few miles apart. Chicagoland As reported several times in 2018 and 2019 in Bisnow: “Converting apartment buildings into condominiums was quite popular in Chi- cago during the decade or so before the Great Recession. Returns to condo developers were higher than those for apartment owners, but today the reverse is true.” Chicago-based community law attorney Sima Kirsch notes that changes have been made to the Illinois Condominium Property Act to accommodate and protect owners in buildings being de-converted. “Section 15 is amended to add additional relief to a unit owner that objects to the sale of the entire con- dominium property,” she says. “Specifically, an objecting unit owner is now guaranteed to receive at least sufficient proceeds to cover the outstanding balance of their mortgage on the unit, plus certain relocation costs. The amend- ment only applies if the sale is pending or initi- ated after January 1, 2018.” Additionally, explains Kirsch: “A unit own- er who does not vote in favor of such a sale and files a written objection within 20 days after the meeting at which the sale was approved shall be entitled to receive from the sale proceeds an equivalent to the greater of (i) the value of his/her interest as determined by an appraisal (less the amount of any unpaid assessments or charges due and owing from that owner) or (ii) the outstanding balance of any bona fide debt secured by that owner’s interest (less the amount of any unpaid assessments or charges due from that owner). The objecting owner is also entitled to receive from the sale proceeds.” New Jersey Scott Piekarsky is Managing Member of Piekarsky & Associates, a law firm located in Wyckoff, New Jersey. He notes a series of measures taken in the Garden State relative to foreclosure procedures resulting from a blue- ribbon panel appointed by the New Jersey Su- preme Court to make the foreclosure process fairer and speedier. “Condo associations can place liens or foreclose,” he says, “but the as- sociation may also now be a nominal party when a bank is filing a foreclosure against a condo unit. The association is looking for what is typically known as surplus funds, any leftover money the banks gets after the foreclo- sure which the association can claim. Under the new rule, when an association is looking for surplus funds as of May 1, 2019, set forth the required filings and information necessary from the attorney and association. Years ago, we would just send a letter. It wasn’t anything formal. Now the process has been formalized to protect owners.” New York Across the Hudson River to the east, Marc Schneider, Managing Partner of the New York- based law firm of Schneider Buchel, mentions a new regulation in New York City that directly relates to the Fair Housing Act as it has been interpreted to protect residents with disabili- ties. He says: “New York City recently amend- ed the section of the administrative code gov- erning reasonable accommodation, requiring a cooperative dialogue when dealing with a reasonable accommodation request.” Schneider explains that ‘cooperative dia- logue’ means the process by which an entity – in this case a co-op or a condo board – engages in a good-faith written or verbal dialogue to address a particular issue. “It is now unlawful to refuse or fail to engage in a cooperative dia- logue with whomever requests accommoda- tion. Not only can you not deny \\\[a reasonable request\\\], you must have a discussion about it with the person making the request.” This change has particular relevance to res- idents in buildings with policies that exclude LEGAL & LEGISLATIVE... continued from page 1 certain types of pet ownership – particularly duct. That might frighten some owners, if the dogs. In truth, it’s pretty easy to obtain a note cost to bring the proceeding appeared more from a doctor claiming a resident has legiti- mate need for a ‘comfort animal.’ Schneider defects. explains that there is plenty of evidence of fraud in this area. What’s a board to do? “I have clients who have no-pet policies in court looked at gross negligence and warranty their buildings,” says Schneider, “and they have of habitability to make its judgment,” says to deal with these requests for comfort pets. Goldman. “The decision may be appropriate The unfortunate part of the situation is that for the legislature to amend the condo statute there is abuse – and the abuse will continue, to avoid these poison pill clauses.” He recom- unfortunately, because to prevent that abuse, mends to condo associations that if they have the law must be amended in such a manner this type of clause in their documents, they that those people who truly have need are not should amend the documents to remove these penalized.” New England Up the coast in Needham, Massachusetts, The city thought they could make some mon- Howard Goldman, a partner with the law ey from this. The defense has always been that firm of Goldman & Pease points out two re- cent cases that have demonstrated the ability And often the entire parking area is an ease- of the courts to define protections and rights ment in gross. The second defense is that the under current law. In the first case, Trustees of the Cambridge Point Condominium Trust vs. Cambridge Point, the Supreme Judicial Court that easements in gross are not actually part in Massachusetts ruled against so-called ‘poi- son pill’ clauses in condominium governing tinction as well that often these are easements documents, which may have been placed in gross that the developer reserves for itself there to prevent a condominium association and doesn’t to the condominium.” The lower from successfully suing its developer. Gold- man explains that this particular condomini- um association was left with over $2,000,000 parking. of construction defects, but the governing documents required that the association had breathing organism. It’s important to watch to achieve approval of a suit by 80 percent of not only what’s going on in your village, town, the ownership. In reality, the developer still city, and state – but everywhere else. You never owned 20 percent of the units, which meant know when a situation in your area will require 10 percent of individual unit owners had to the same consideration as it got elsewhere. approve the suit. In addition, the suit had to brought within 60 days and the association board had to produce an estimate of what the legal process might cost the association to con- costly than the cost to cure the construction The court ultimately ruled that poison pill clauses were not in the public interest. “The clauses. A second case outlined by Goldman is Rauseo vs. Board of Assessors of Boston , which looked at the ability to tax parking easements. “In Boston, the state began to assess unit owners for their ownership of parking spaces,” explains Goldman. “Pur- chasing indoor parking in Boston is quite expensive, $40,000 to $100,000 per space. the user isn’t really the owner, it’s an easement. space is part of the common area of the con- dominium. What the court response said was of the common area. The court made the dis- court found for the city and an appellate court affirmed the city’s right to tax ownership of Law and legislation are a living, growing, n A J Sidransky is a staff writer/reporter for The Chicagoland Cooperator, and a published novel- ist. “Breaking up with a board is a tough decision, but one that a manager must be equipped to make.” “It’s important to watch not only what’s going on in your village, town, city, and state – but everywhere else.”