Some Trees and Shrubs Didn't Make It

The harsh winter of 2013-2014 has passed, and so too has the drought of 2012. However, the after effects are very evident.

Some of the trees and shrubs in the area didn't survive. There are a lot of green ash trees which are now dead, despite extraordinary efforts to deal with the Emerald Ash Borer by our association. Some pines, crabapples and even shrubbery simply didn't come back this spring. One ash gave a brief spurt of spring growth and them simply gave up, and died. It was if it were a last gasp.

There were complications that gave us this result. Ash trees are sensitive to ground  moisture. We have had some extremes and the drought of 2012 was "severe" in this area. Lest we forget, here is the July 31, 2012 data:

Some well cared for and apparently healthy trees simply didn't survive. 

One possible conclusion: Life can be short, or shorter than we imagine and despite our best efforts it will end, and perhaps sooner than expected. 

How the Illinois Association of REALTORS and your Illinois Senate are conspiring to increase your fees - SB2664

Update January 2015
This Bill was vetoed by governor Quinn. However, it was possible to amend it and then reintroduce it in the 2014 legislative session. That did not happen and so this particular bill is dead. HOWEVER, it is possible this will be reintroduced as a new bill in 2015. So condominium boards, owners and management need to remain vigilant.

Original Post, May 13, 2014
There is a bill passing through the Illinois General Assembly which is vigorously supported by the Illinois Association of Realtors and which will raise the fees of condominium owners. A link to the text of this bill is included in this post.

The bill, sponsored by Democrats Hastings and Yingling in the General Assembly will force other owners in Condominium Associations to pay higher fees so dead beat owners and banks can sell distressed properties while purchasers can avoid paying fees accrued in past due accounts. It will result in higher condominium fees.

This number of this bill is SB2664.

It has the primary purpose of limiting the ability of the owners in condominium associations from collecting past due fees. In other words, these past due accounts will become noncollectable under law. These noncollectable amounts will pass to the other owners in the condominium association who will pay higher fees to make up for these dead beat accounts.

The Illinois Association or REALTORS (r) is overjoyed!

I quote the National Association of REALTORS website, which is thrilled to pass these past due fees to other owners so your friendly, neighborhood REALTOR(r) can make a sale:

"Senate Bill 2664 stops the current practice in which purchasers of distressed condominium units are stunned to discover at closing that they owe back assessments to the association—sometimes in sizable sums. These back assessments may also be loaded up with special assessments and attorney’s fees incurred and unpaid by the previous owner. Senate Bill 2664 protects innocent owners from being put in this position and eliminates the ambiguity that is causing sales of distressed units to be impeded or delayed, often resulting in litigation or a threat of litigation."

No mention of you or I or any of the other owners who have to cover the unpaid fees of these dead beat owners. Apparently the "victim" here is the poor, hapless REALTOR(r) who can't make a sale because the potential buyer isn't willing to cover these debts. How to solve this? No problem, we'll simply change the Illinois Condominium Act and pass these costs on to the other owners. Of course these other owners have empowered their management and boards to aggressively and properly collect these past due fees which are a legitimate obligation. I don't think most owners want to pay their neighbor's fees for them. But the Realtors(r) think a change to the Illinois Condominium Act which takes these costs and places them upon the owners who do pay their monthly fees is a good solution. This is all  to get a quick sale. I also think most condominium owners would agree it's preferred to have all owners pay their fees and obligations rather than walk and pass the bills to the other owners. But that apparently interferes with sales which in turn reduces annual commissions for the Realtors (r). 

The Realtor's and the Democrats have decided that it's better to stick the "innocent" owners who pay their fees with these costs which include the unpaid fees of the deadbeats. Yes, someone else will have to pay to keep the association maintained, pay for that new roof, keep the lights on, the streets plowed, the water running, etc. etc. Of course, even should this terrible bill be passed by the Illinois legislature, all of the remaining owners will share in these higher fees and that includes the new buyers. 

And some of our owners ask "Why are my fees so high" and "Where does the money go?" 

Do you want to pay the legal costs and fees of dead beat owners so a Realtor(r) can ring up more sales? If not, then do the following:

CONTACT YOUR REPRESENTATIVE AND SAY "NO" TO THIS TRANSFER OF WEALTH FROM CONDOMINIUM ASSOCIATIONS TO REALTORS(r).

Here is my suggestion:
If Realtors(r) really want to remove an impediment to a sale, they should back a bill in which a portion of their fees goes toward paying these past due accounts. they would then be helping the truly "innocent" owners who are being financially screwed by these dead beats. 

How is that? The other owners pay higher fees to make up for the fees which cannot be collected from the dead beats under current Illinois statute. This bill would easily raise condominium fees by one or more percent per year. It would also make it far easier for potential buyers to make really stupid decisions. Can the buyer afford the cost of the loan, fees and future fee increases, real estate taxes as well as the cost of updating and maintaining HVAC systems, etc.? These details escape the majority of Realtors(r) with whom I have had a conversation. It is all about the sale and extracting the highest possible fees. Let the other owners hold the bag!

Think about that!

Clicking will open a  New Window> Text of Illinois SB2664

Electric Rate Experience - Choosing a Supplier

I recently posted that I had changed electric suppliers. ElectricUser asked "I was wondering if you could share some insight on how this process went for you? ...........whenever I looked into these companies online, it always turned out to be a scam - the usage rates are vastly lower, but you get hit with very high 'service fees' that end up costing you more money.  How was your search for another electricity supplier and did you run into any of this? What company did you end up going with?"

I would agree that some of the companies out there provide what some would call a "teaser rate" for a short term.  Some also charge an enrollment fee. Looking at the lowest rates and the conditions attached to those rates brings to mind the expression "if it is too good to be true, it probably is."

My Evaluation Approach

The beginning point in my evaluation is my previous year's electricity cost. In 2013 I spent about $750 for electrical service, or an average of $63 each month. This expenditure includes:

• Electricity Supply Services, about 47% of my monthly bill. 
• Delivery Services, about 42% of my monthly bill. 
• Taxes and Other, about 11% of my monthly bill.

The  "Electricity Supply Services" is the portion which is determined by supplier and the portion I can control by changing suppliers. My previous supplier announced a 44% rate increase effective May 2014. It would be reasonable to expect my annual costs for "Electricity Supply Services" to increase from $352 per year to about $508 per year. Note: I initially expected my costs in 2014 would be greater than this, but after re-checking my anticipated electrical usage I realized that my monthly costs for "Electricity Supply Services" were less than i expected. 

The actual difference in projected costs for Electricity Supply Services is about $156 or $13 per month. That's the value of potential savings if I could find an alternative supplier. Obviously, spending more than this amount in monthly fees to achieve a savings is not a good idea unless the rate is so low as to offset the fees. 

Now you might say that I am spending too much time to save but $13 or so per month. However, I would suggest that we consider this type of "rate creep" and the impact on personal finances over a period of years. I'm one who promotes planning, preparation, budgeting and debt avoidance. 

Choosing Electric Providers
Here in Illinois we have the Citizens Utility Board (CUB) which has a website. That website includes a list of possible providers and their rate structure. Some municipalities have used "Municipal Aggregation" to purchase electricity on behalf of residential and small business customers.  I've included a link to CUB's list of communities which use this approach. If you are in your community's "Municipal Aggregation" program then the following does not apply to you. Your community has chosen your electric provider. 

Reviewing the CUB website provides a list of providers which can be compared. The list may not include everyone and it may not be current. The website is but a starting point and it is necessary to contact the provider before making a final decision. I've included a link at the end of this post. 

Prices published on the CUB website vary from $0.0523 per kWh to above $0.10 per kWh. Some are fixed rate, some are variable rate, some include a monthly fee and some include an exit fee. 

What did I do?
I decided my provider would have the following rate structure:

• Fixed monthly rate
• No monthly fee
• No exit fee
• Rate below ComEd's published rates

ComEd's rates, according to the CUB website will be "7.596 cents per kilowatt-hour (kWh) rate from June 2014- September 2014 and 7.42 cents per kWh rate from October 2014-May 2015."

With the above criteria, many provider were eliminated from the CUB list. The remainder were scrutinized by term.

The next step was to take the most promising suppliers and check their website. This is a critical step because rates do change and the CUB site may not be current. I then contacted the supplier that met my requirements and enrolled. 

CUB Website Links

Clicking will open a  New Window> CUB Alternative Electric Suppliers List 


Clicking will open a  New Window> CUB Municipal Aggregation List

Electricity Rates Increase Dramatically

It may be that time to change electricity suppliers

My electrical energy provider which is not ComEd announced a 44% rate increase. I have been paying $0.0549 per kWh. So it was a no brainer to look for a new electrical energy supplier. 

I have done so and it might also be time for you to do the same. 

My electrical energy costs per kWh will be more in 2014 than they were in 2013. On the other hand, by changing suppliers I will save several hundred dollars.