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

Sunday, May 29, 2011

Briarcliffe Lakes Neighbors Club

This post includes links to the latest BLMH "Manor Briefs" newsletter and to the "Neighbors Club" newsletters (See Note 2 and Note 3).

Our former communications director, having left the board, has organized a new website and another newsletter. The "club" is soliciting funds to support that effort, now that the association newsletter is no longer available for this purpose. (Note 1, and a copy of the latest "neighbor's club" newsletter at Note 2).

I think this is an opportunity for the former CD. She can promote a social organization in her own image and with her own vision, unfettered by the responsibilities and duties of a fiduciary. I hope the club grows and expands. There is a legitimate need for a "social" outlet for our retirees and for others in the association.  Good luck to them!

I personally think the existence of a "Neighbors Club" is a good thing, if it is truly open to all. However, it seems there was an undercurrent of exclusionary behavior in the club. That's not a good thing. Each member pays the same dues. So why would some people be treated differently than others? Is that really "fair?" Well, when individuals run a select club, I guess they can make the rules. But if it is an "exclusive" or "private" club, it should be honestly promoted for what it is, rather than as a "universal" one "for everyone." Yes, I could join and pay my dues. But would I be "welcome?" Only if I support the official "party line."

Does this represent the "real" BLMH? Well, I'm of the opinion that the residents of Briarcliffe Lakes Manor Homes fall somewhere between the members of the "Neighbors Club" and the Board of Managers. Many of our residents purchased in this remarkable association because they simple want to live here. That's to say, they fall somewhere between the extremes of those who are here to party, and those who are here to work. Most of the owners are normal, work an "8-hour per day" folks, with lives that exist outside of BLMH, and a spouse and perhaps a child or two. Many don't have a dog. Those folks live here, but their lives don't revolve around the day to day goings on at BLMH. They don't think of this as a "Club Med" nor do they think of this as the next thing to a "Del Webb" community (Sun City Huntley isn't that far away!).

Most of our owners understand that "membership" in our association comes with a price. Pay your dues, and live within the "Rules and Regulations."

The official association newsletter, the "Manor Briefs" had evolved into something with topics such as "Architecture in England" authored by our former president and the "Neighbor of the Month" article, selected and authored by the former CD. In the last six months the "official" newsletter returned to a more pertinent and informative association newsletter. This was not an accident. It was the result of continuous pressure on my part. Too much business and too little fun, I guess. That's the difficulty in running a business. It's WORK!

For a recent copy of the "Manor Briefs" go to the link in (Note 3).

There were differences of opinion about the purpose of the "Manor Briefs." Management had coached the board to avoid articles promoting or recommending the alleged skills of certain residents, and even professional firms, because the association couldn't take responsibility for the outcome. In difficult economic times, there are more and more self declared "handymen" looking for a way to earn some money. There are also, more and more professional firms struggling. The number of vacant storefronts in downtown Glen Ellyn is a testimonial to these difficult times. These struggling individuals and firms sometimes have difficulty keeping agreements. If cash flow is precarious, spending customer deposits to pay the rent, is sometimes the result. There are an abundance of "horror stories" out there, but I suppose we can always put on the "rose tinted glasses." Of  course, when "things to bad" then there are also those who will say "how could this happen?"

Reading past issues of the official "Manor Briefs" I could understand why some owners asked "what do we get for our money?" Of course, common sense and the annual financial reports gave me a good idea of where the money goes. It's somewhat difficult to make the leap from a financial report to the reality outside the confines of my unit. But the official newsletter painted a somewhat different picture and watered things down. "Everything can be resolved in communications" I was once taught. So I approached the newsletter that way. Not a popular approach, I guess. However, I have persisted. The current board supports these efforts. In a few months we'll have elections and who knows? Perhaps we'll be back to architecture in Europe, garage sales, and "fun and games?"

Were people "happier" with the new approach, and the social newsletter? Did it relieve the issues of 0% COLA raises for seniors, or mitigate the problems of delinquent owners, or of foreclosures? Did it salve the pain of those retirement accounts decimated in the 2008 financial meltdown? Of course not. So some people are still "angry" and some are still dealing with the problems of "underemployment" or "underwater" finances, or the credit binge. I sent an article to the former board about the "emotional toll" of this economy. It was greeted, as so many other emails, with complete silence. I concluded that it's sometimes difficult to deal with a reality that is opposed to our own. I paraphrased this to the board as my perspective "God loves us, but the universe doesn't care."

This association cannot responsibly do anything about any of that. We cannot transfer funds from those who are financially able to pay to those who cannot. At least "legally" we cannot. I can sympathize with the plight of others, and I can write a check from my personal account. I can recommend certain avenues to those experiencing difficulty. But I cannot use association funds to help them. To do so betrays the trust of the owners here, and is a failure of my fiduciary duties. This is a community, but it is not a "social" organization. I do think most of our owners understand that.

You will notice that the current association newsletter has no "approved vendor" or "recommended vendor" list. That's the way it is. In the past year, several owners took issue with the results of vendors recommended by fellow owners. (Owners are usually those who do, or pay for, unit repairs). Apparently some the the results were less than desired.

Over the years, the association has generally taken the position that owners should only hire firms which are "licensed, bonded and insured" and I completely support that position. It did, however, conflict with the personal positions of some board members and some owners. I can understand that. If I were a "handyman" attempting to make some money in this association, or if I were an owner who wanted the work done at the lowest possible price, using someone who is uninsured would be very tempting. After all, it's "my money" and if I want to gamble, why shouldn't I? On the other hand, am I being a "good neighbor" if I am willing to take risks that jeopardize the well-being of my neighbors and of the association? I would think not. But these are "strange times."  Fear and greed are supposedly two of the most powerful forces in human beings. "Greed" it has been said, is merely a fear of "not having enough."

Management also provides ongoing coaching to keep all of this on a "professional" level, and avoid entanglements with the special requests or needs of specific neighbors. This coaching was sometimes contradictory to the whims of board members. On my recent, and first, formal meeting with our association attorney, she told me "This association is a business." In other words, I'll have to find a hobby somewhere else. I don't think it will be the "neighbor's club" because I have more than enough work to do, and I don't want to get embroiled in "complaint sessions" with renters or owners. After a few owner's have attempted to sway me with "isn't that TERRIBLE!" I've decided to remain detached. Perhaps the "neighbors club" can fulfill those urges for others.

For my part, I would like to keep everything on the "up and up" and avoid any issues contrary to the Illinois Condominium Act and the Association governing documents, and that includes the current Rules and Regulations. While I personally may not agree with some of these documents, as a board member it's my duty to uphold them until they are formally changed.

Board members are fiduciaries. That role takes precedence.

By some coincidence, the Neighbors Club distributed their current newsletter on the same date as the Association. The CD walked off, and left us to hold the bag. I still am unaware of the access to the "official" BLMH website. When I and my fellow board members are made aware of that, we'll update the site.

The neighbors club promotes firms and individuals. They can do that, but it is necessary to remind owners that the "neighbors club" has no formal affiliation with the Association. In other words, the members and promoters of the "club" take on all responsibility for the outcome of any and all of their recommendations. The board, association and other owners of BLMH do not share in that responsibility.


Comments, Corrections, Omissions, References
Note 1.  The association newsletter is no longer available, because in resigning, the CD decided to burn some bridges along the way, distributing some interesting emails, among other things. Of course the association can't take responsibility for the actions of the club. So the club has now lost access to the official association newsletter. That's what happens when people decide to "go play somewhere else."

The official Neighbors Club site is at:

Note 2:
The most recent Neighbors Club newsletter isn't posted on their website; it's promised. I temporarily posted a copy here, but removed it, as a courtesy; sorry but you'll have to wait for the Neighbors Club to post it. :

Neighbors Club June Newsletter - Not Posted


Note 3: 
Here is the link to the latest BLMH "MANOR BRIEFS" official newsletter:

Briarcliffe Lakes May-June 2011 Newsletter

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3 comments:

  1. Is it mandatory that the condo owners have insurance for their condos? If so, where does it state that? Because I've had repeated water damage from people upstairs which my insurance company investgated to at least get my deductable paid for but they were told the condo upstairs is not insured.

    ReplyDelete
    Replies
    1. This comment has been removed by the author.

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    2. Here in Illinois, the requirement to have "homeowners" insurance is stated in the "Illinois Condominium Act" (ICA) and the bylaws of the association.

      However, even if an owner does not have insurance, they remain liable for damage to adjacent units and to common elements of their association.

      If you need more information, contact your management company with specific of your situation.

      the ICA has an entire section on insurance. (765 ILCS 605/12) (from Ch. 30, par. 312) , Sec. 12. Insurance. Here is a quote from "(h) Mandatory unit owner coverage."

      "The personal liability of a unit owner or association member must include the deductible of the owner whose unit was damaged, any damage not covered by insurance required by this subsection, as well as the decorating, painting, wall and floor coverings, trim, appliances, equipment, and other furnishings. "

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