Chicagp Fall EXPO 2019
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Fall 2019                  CHICAGOCOOPERATOR.COM  Whether  it’s  an  aesthetic  renovation,   emergency repair, or anything in between,   condos, cooperatives and homeowners’ as-  sociations are rarely not spending money   on something,  sometimes  in  exorbitant   amounts. And while an association may   have reserves on hand to pay for its lat-  est project, oftentimes money needs to be   scraped together pronto in order to pro-  ceed with whichever endeavor. This can be   done via special assessment of unit owners   or shareholders, whereby they’re asked to   come forth with a fairly hefty amount in   a relatively brief window – an approach   that is not always realistic, depending on   the various financial statuses of individual   residents.   An alternative, however, is to take out   a loan from a bank, which the association   can then pay back over time – with interest   – often by making a marginal increase to   monthly dues. Depending on the nature of   the project, this can often be an appealing   option. But it’s important that a board do   its diligence and weigh the pros and cons   with its residents before engaging into any   long-term financial arrangement.  Why Borrow?  There are various reasons that a board   may want to take out a loan to fund a proj-  ect regardless of the size. But realistically,   the higher the price tag, the more alluring   it may seem to bring in an outside finan-  cier.  “Associations typically borrow money   when they have a large capital need, such   as a roof, siding, roadway, or something   continued on page 10   Unlike in a co-op, wherein residents own shares in a corporation entitling them to   occupy their apartment – and in which the co-op board is pretty much the final au-  thority over how the community is run – condos and HOAs are considered ‘real prop-  erty,’ more like freestanding homes. Therefore, ‘evicting’ a condo owner from a unit   and effectively wiping out his or her equity position as a member of the condominium   association is a difficult undertaking, subject to very narrow legal interpretation.   Points of law on this subject are consistent from state to state, with only slight   variations. The important distinctions relate to whether the person being removed is   the owner of the unit in question, or the owner’s rental tenant. In both cases, laws are   consistent on the most basic matters. Some states’ statutes have slightly differing ap-  proaches and nuances that we will explore later in this article.   Removing a Condo Owner  While a co-op shareholder could theoretically be evicted from his or her unit for   issues not having to do with money (examples include constant frivolous litigation   and an ongoing pattern of harassment toward neighbors), the same is virtually impos-  sible in a condo setting. As mentioned above, condominiums are pure real estate – not   shares in a corporate entity. As a matter of fact, from a legal standpoint, the word evic-  Whether in a single-family home or   an apartment building, every home-  owner has experienced that moment: he   or she turns on the kitchen light in the   middle of the night to see a huge water   bug scurry across the counter, or hear   the sound of tiny rodent feet scamper-  ing  behind  the  wall.  It’s  a  feeling  that   makes one want to jump, recoil, or shiv-  er. In Brooklyn they have a word for it   – skeeve – where you can literally feel   your skin crawl.  Contrary to what most of us would   like to believe, bugs, vermin, and other   pests are rarely the result of uncleanli-  ness – although that can be a factor.   They are a fact of life, or rather a fact   of human coexistence. They are even   directly responsible for the presence   of certain furry companions in human   homes. While dogs became domesti-  cated as an assistant to man in hunting   food, cats – certainly the preferred pet   of many a city dweller – eliminated pests   (especially mice) from human habitats.   And so was born one of the great inter-  species relationships.   Adept as they are at keeping many   kinds of pests at bay, cats aren’t the final   word. Today we have exterminators –   and a much better understanding of how   to  minimize  (if  not  entirely  eliminate)   the presence of unwanted critters in our   homes. But different seasons bring dif-  ferent types of pests, so knowing what   to expect and when can give us higher   mammals an edge in keeping our homes   pest-free.  Seasonality  All  pests are not the  same.Different   pests may become more common at   certain times of year, primarily due to   climatic conditions. “Mother nature is   tion really shouldn’t be used in the context of removing a condo   owner, though it can be applied to removing a tenant from a   condominium unit—a point we will return to later. The closest   we can come to a legally recognizable term for this type of action   in a condo or HOA is removal of an owner.  Michael Kim, Principal of the law firm Michael C. Kim &   Associates in Chicago, explains that unlike any other state in the   Removing a    Condominium Owner  Navigating a Delicate Legal Process  BY A J SIDRANSKY  The Borrowers  What to Know Before Taking Out a   Loan on Behalf of an Association  BY MIKE ODENTHAL  Autumn   Extermination   Challenges  The Pests of October  BY A J SIDRANSKY  continued on page 12   continued on page 8   205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED  THE COOPERATOR  EXPO  2019  WHERE BUILDINGS MEET SERVICES   300+ EXHIBITORS, SEMINARS,   FREE ADVICE & NETWORKING  CHICAGOLAND’S BIGGEST & BEST    HOA, CONDO & APT EXPO!  MCCORMICK PLACE WEST— TUESDAY, OCTOBER 22, 10–4:30    FREE REGISTRATION: FALL.ILEXPO.COM

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