Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Wednesday, December 29, 2010

Winter Rain and Ice Warning!!!

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This post updated at 3:00pm. See the notes and comments, as well as the following "Severe Weather Alert", quoting  the Weather Channel Website at 3:00pm.

"...LIGHT FREEZING RAIN OR FREEZING DRIZZLE POSSIBLE THIS AFTERNOON AND EVENING...

AREAS OF FOG...LOW CLOUDS...AND SOME DRIZZLE WILL SPREAD NORTH ACROSS NORTHERN ILLINOIS AND NORTHWEST INDIANA THIS AFTERNOON AND EVENING. TEMPERATURES WILL CONTINUE TO RISE...EVEN AFTER SUNSET THIS EVENING...HOWEVER ITS POSSIBLE THAT THERE COULD BE A PERIOD OF FREEZING DRIZZLE SOUTH OF INTERSTATE 80 THIS AFTERNOON...AND ACROSS NORTHERN ILLINOIS EARLY THIS EVENING BEFORE TEMPERATURES RISE ABOVE FREEZING. IT ONLY TAKES A SMALL AMOUNT OF FREEZING DRIZZLE TO MAKE WALKING AND DRIVING DIFFICULT.

PERSONS VENTURING OUTDOORS ONCE THE FOG AND DRIZZLE ARRIVE THIS AFTERNOON AND EVENING SHOULD BE ON THE LOOK OUT FOR ICY CONDITIONS."

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Wednesday, December 29, 2010
It's 8:30am and currently 18F with a high today predicted of 35F. There will be more melting snow.

However, the weather forecast for the next few days in Wheaton, according to the Weather Channel is:
  • Thursday December 30: High 39F, low 37F with 30% chance of showers late in the day.
  • Friday December 31: High 51F with showers. Low 22F.
  • Saturday January 1: High 26F, low 16F.
We can expect lots of melting snow, and standing water which will freeze on Friday night. That's not a good thing.

I received a telephone call from our maintenance company yesterday, and personnel will be sweeping snow away from gutters and pouring snow melt in the gutters over the garage entrances, to assist nature and attempt to get water flowing through the gutters, when the rain comes. However, all of this is entirely dependent upon the weather and how this brief warming pattern occurs. If it is very sudden, with immediate rain, there will be insufficient time for ice to melt before the water arrives.

Residents are cautioned to be very careful on walks, paths and the streets. These will be slippery. Everyone should be very cautious on exiting their units, particularly in the morning. There will be ice, and it may be very slippery. Salt (ice melt) should be used by residents, at entrances and at garage doors.

Good Luck, and please be careful!

This winter scene, taken early this morning, will soon be replaced with something else!

Comments, Corrections, Omissions, References


Note 1.  Here are a couple of photos, taken this afternoon as our maintenance crews prepared our property for the coming rain. Ladders and a bucket truck were all part of the tools. Snow was removed from the edge of the roofs and gutters, icicles were removed, and snow and ice melt put along the gutters. 



Note 2.  Our plowing service is on site, doing cleanup and clearing driveways of ice buildup. We have not received any snow, so was this simply "good will" as part of the contract? Well, as some of the residents say "what do we get for our money?" 

Note 3.  Our tree maintenance contractor is on site, continuing the winter pruning of trees begun the other day. I saw a crew in a spruce on Harrow, and the wood chipper was working hard. I'm not sure of the precise area to be trimmed. This is done on a rotational basis and as of today, none of the trees behind the buildings on Harrow have been trimmed. 

Note 4.  For additional information and winter tips, check the official BLMH welcome packet. 




Monday, December 27, 2010

Brrr!! Winter 2010 and Icycles

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Well, it's officially winter, that means that as of today, December 27, 2010, we've had some snowfalls, some ice, and our trees are currently undergoing their annual winter pruning. That pruning of our deciduous (leaf bearing) trees is done on a rotational basis, in the winter, after all of that valuable, life giving and nutrient enriched sap has been pulled back by the trees and into their roots. Isn't nature amazing?

We now have lots of icicles forming as part of the normal freeze-thaw cycle, which we can expect to continue for the next 90 days.

The squirrels were extremely busy before the first snow fall, building their nests. The tree behind my building has just such a nest. It was originally quite large and sheltered two small grey squirrels. However, brisk winds blew and stripped away many of the leaves that comprised this aerial chalet. So that pair has since moved to find more spacious quarters, and a red squirrel has moved in, to take their place.


The squirrel spends time napping in the tree. I can imagine what he or she might be thinking:

This squirrel has become one of my companions here at BLMH. While I am doing the dishes, I frequently observe him taking a nap, curled and keeping warm.


The ice, and icicles, can be a problem. Residents are encouraged by the association to use the salt in the 55 gallon plastic container in each garage, to handle any patches on their entranceways and driveways. These patches inevitable form between normal plowing and pushing of snow. Crews were on site yesterday, cleaning driveways and entrances. However, they aren't our servants and perform a valuable service as part of our fees. So residents need to help out from time to time. (Yes, I do mean residents. Renters are expected to pitch-in, too. If you have any doubts, the board's promotion of the rights and benefits of residents should be a tip that there might also be responsibilities accompanying those rights, and there are!).

Of course, icicles will form from gutters, and also from other sloped roofing sections. Maintenance crews do make the rounds to knock these down, but if owners use a broom when the icicles are small, and not dangerous, that prevents the build-up of walls of ice, as can be seen in these pictures. Crews will also at times, brush snow from the roofs over the driveway entrances. However, this is not easy to do and might be dangerous.
Of course, the formation of ice on buildings is dependent on factors including orientation and amount of sun received on the roof each day. Presence or absence of gutters also doesn't always seem to matter. So some building have little ice, while others collect a lot!



However, some icicles can become very large, and that means, heavy and potentially dangerous. So avoid walking below them, or an ice curtain. The following shows several very large icicles. These are in an area where residents should not be walking. However, use care at all times, and common sense, at all times!




Comments, Corrections, Omissions, References

Note 1. Use care when walking the grounds, avoid vehicles in the streets, watch for icy patches and use the salt that the association makes available. That's why it is there!

Thursday, December 23, 2010

Where's My Newsletter?

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On return from a business trip, I was surprised to see that I had not received an association newsletter for December. I'd provided a chart to our Communications Director (CD), in accordance with her request on November 12 for inclusion.

Several owners asked me "where's my newsletter" and so, on December 19, I sent an email to our CD and asked "Did I miss something? Did I miss the December newsletter?”

Later that day, I received an email reply which included the statement "Our next newsletter will be issued the first week of January…”

So there you have it; you can expect a newsletter early in January.

Tuesday, December 21, 2010

Financial Issues Facing Associations

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A CAI document is circulating among the board, and is the result of a survey by the Community Associations Institute.

It was published in October and is entitled "CAI Survey: Associations Hit Hard by Housing, Economic Slump."

The survey has some interesting statistics, but it may not be very useful. According to the CAI, there are 310,000 community associations in the U.S.; the survey is based on the responses of 1,500 managers. That's less than 0.5% of the associations in the U.S. Nevertheless, there are some interesting statistics.

I've included a link to CAI's website and the published survey, in Note 1 of this post.

Thomas M. Skiba, CAI's Chief Executive Officer is quoted in the survey:

"High delinquency rates put a lot of pressure on associations to meet their obligations to the homeowners who are paying their fair share....When some owners—including banks that have foreclosed on homes and now own them—don’t pay their share, other homeowners often must make up the difference in higher regular assessments or special assessments." Mr. Skiba goes on to say that "Many associations are also forced to curtail services, which can further depress property values," and that "Association boards strive to maintain the nature and character of their communities and meet the established expectations of all homeowners, but that’s often a daunting task in this kind of environment. They are making difficult choices because they have few alternatives. Board members in every community association manage the business of their communities, and businesses must pay their bills."

It would seem that vigilant collection procedures are necessary or, failing that, associations face falling revenues and with them, falling property values.

Of the 1,500 associations that responded for the survey, these are the steps that are quoted as being taking to "address budgetary shortfalls":


  • 38 percent have postponed planned capital improvement projects.
  • 35 percent have reduced landscaping services.
  • 31 percent have reduced contributions to their reserve accounts, funds that are set aside for major maintenance and repairs.
  • 23 percent have borrowed from the association’s reserve account.
  • 16 percent have levied special assessments.
  • 12 percent are allowing residents to perform minor tasks in the community.
  • 6 percent have borrowed from banks and other lenders.

Comments, Corrections, Omissions, References

Note 1. This is the link to the published CAI survey:


CAI - Association Survey, October 25, 2010

Note 2. Mr. Skiba's statement that "When some owners....don’t pay their share, other homeowners often must make up the difference in higher regular assessments or special assessments" is not news to this association. Earlier this year, our attorney attended an association meeting and addressed the owners and the board, and answered questions. He stated exactly the same thing, but used somewhat stronger language, and went so far to state that collections procedures must be rigidly and diligently enforced. He stated that not to do so is "unfair" to the other unit owners, because they must make up these differences. So now we have this from several competent sources. 

Sunday, December 19, 2010

Winter is On The Way

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Well, the official start of winter, the winter solstice, is only a few days away. We've experienced some bitter cold, but also some more normal cold in the mid-20s and 30s. With that comes the snow. Just the thing for pleasant walks with a little friend. The following photo was taken by my spouse, a couple of weeks ago.


With the mild weather through Thanksgiving, most of the neighbors had a wonderful opportunity to get the decorations up, and most of us have our interior decorations completed, as well.



However, it's not all fun and some of the preparations are serious. The tell-tales have been added to the fire hydrants, so they can be readily found even with a lot of snow, and the plows were pre-positioned several weeks ago, before the first snow.






Comments, Corrections, Omissions, References

Note 1. There are things you can do as an owner or as a resident to prepare for winter, and things to do to avoid freezing the pipes in your unit. Refer to the official BLMH "Welcome Packet" for specific winter tips.


Note 2. Thanks to my spouse for permission to use the photo taken on December 3rd. 

Friday, December 10, 2010

Your Unit Is Not Your Castle - Part I

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The association issued an urgent safety bulletin to unit owners. The bulletin was prompted by a disastrous fire at a nearby condominium association, which is believed to have started in the fireplace, firebox, or flue.

Our condominium is similar in design and construction to that which experienced the fire, and is about 35 years of age. Some of our units have a gas fired fireplace. Not all do; this was a $1,500 option back in 1978. Doesn't seem like much money by today's standards, but it's helpful to remember that a decent home (3 BR, 1 bath, 2-car garage, 0.33 acres) could be purchased in Wheaton for as little at $52,000 back then. I know, because I did! On the other hand, wages were lower too, and $25,000 a year was a very good wage. That's inflation!

The bulletin has resulted in some owner comments. I understand that some have stated they have no issue with this, and in fact, are very willing to comply. I also understand a few have questioned the necessity to have the fireplace inspected. One has refused and stated "I'm going to use my fireplace as-is."

That's an interesting perspective. The issue is very simple. Our management has advised us that they observed the damage and is very involved in the coordination of the cleanup, etc. It is with their guidance that BLMH has issued the statement to unit owners. According to management, there was no indication that the unit owner did anything improper in the fireplace. It's reasonable to assume this fireplace had been used many times in the past. However, this year, it failed, and when it did, it did major fire damage to the building.

The goal of the inspection, which includes a brief list of guidelines, is to assure that your fireplace, firebox, flue and chimney are intact, and safe to use.

To complicate this further, during the November association meeting, an elderly couple took the opportunity to make a statement about their concerns about safety at BLMH. This was prompted, they said, by the recent "fire" at the 1731 building. That "fire" was a near miss, with very minimal damage. What's minimal? Probably $2,000 or so, including a damaged window. That meeting was about 12 days prior to the serious fire at the nearby community.

So, what is the real issue here? In an association with families and singles, in 336 units, with ages from their 20s to their 90s, what is the appropriate action? And why the resistance by some unit owners to an "Urgent Fireplace Safety Warning?"

Living in a condominium association, we give up some personal freedoms. That's the way it is in a "Common Interest Development" or CID. I suspect a few of us don't know that, or have forgotten.

I'm going to quote an attorney who specializes in these matters. “People have this idea that they have a deed to this particular property and this is their castle,” however, he often has to remind people “your home is not your castle; your home is part of everyone’s castle.”

According to this article from which I quote the attorney, developments such as BLMH are attractive to buyers because "they are low maintenance, and city planners like them because they make better use of increasingly scarce areas for development. However, those homes come with a complex set of rules and regulations. It might be something as banal, yet frequently irksome, as how many pets you can have, or even what constitutes a pet."

“As a result,” he says, “many people have a hard time adjusting to life in a common interest development.”

“For the most part, the general public is not aware of what their rights and obligations are in these kinds of arrangements...Buying into a CID means you have elected to live together and be bound to each other, not just physically, not just by party walls or common lot lines, but to be bound together by a set of covenants, conditions and restrictions (CC & Rs) that are difficult to change.”

“The problem is the people who live in these units don’t understand what they have bought into,” says Richardson, “and the homeowner associations that run them do not always strike the right balance between a harmonious community and a viable business operation.”

It's my opinion that taking strong steps to protect the inhabitants of BLMH is an appropriate balance between being harmonious and a business. If your neighbor due to simple error, or accident, burns down the building you live in, that will certainly be an inharmonious event!

What we each do with the information that is provided to us, is our personal business. However, the failure of something in our unit can have serious consequences not only for ourselves, but also for our neighbors. Some examples include the dishwasher which springs a serious leak, a failure in our fireplace, or a fire in the clothes dryer, the utility fan, whatever. At times we will be inconvenienced by requests or rules of the association. Which is preferred, occasional inconvenience or disruption by serious events?

It's my opinion that how safe this association is, meaning how safe we are as owners and dwellers, is in part determined by our individual actions. I think it's useful to remember that we are, in fact, "bound together" and how we act as individuals does affect others in this community.

Comments, Corrections, Omissions, References

Note 1. Here's a link to the original article, from which I have quoted attorney Kelly Richardson. 

Kelly-Richardson-lawyer-interview.html

Note 2. The board or its members are not immune from making the same mistakes as owners. Recent boards, for example, have attempted to satisfy or placate each and every owner who comes before them with a problem or a complaint. In attempting to do so, at some point, a board will compromise some owners for the benefit of one or another. So how to make a good decision? Be familiar with the governing documents, and make decisions for the association as a whole, rather than for specific individuals, is probably a good start. 


Note 3. The bulletin was an association action, coordinated by the board and management. Management read and approved the notice, which was prepared by the board. This post is my personal opinion.