Page 1 - Chicagp Fall EXPO 2019

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