COD - Clean Slate Election - My $2.05

Tomorrow, Tuesday April 7 is a general election which will include three trustees for the "Community" College of DuPage.

There has been a lot written elsewhere but let me say this. It is my opinion this election is important to get our community college back on track and to clean up the mess. We desperately need new, accountable people on the board. One individual stated the problem this way "Unless we change the Leadership at College of DuPage, we are destined to be saddled with an expensive physical trophy that drifts further and further from its core mission of public education."

First and foremost, I think we need new board members and this election is the opportunity. I am aware of two groups which have been endorsed.

Clean Slate Group
Trustee Kathy Hamilton, who was the only board trustee to vote against president Robert Breuder's $762,000 golden parachute (paid via taxpayer money) was censured by the remaining trustees. Ms. Hamilton is backing a "clean slate" which she says will provide greater transparency and financial oversight. These candidates are:

• Deanne Mazzochi
• Charles Bernstein
• Frank Napolitano

Electing these three implies four on the board including Hamilton who would be aligned.

The Daily Herald
The Daily Herald has endorsed three candidates in an article updated March 23, 2015. These candidates include:

• Matt Gambs
• Deanne Mazzochi
• former state Rep. Sandra Pihos

The Herald has been criticized for "laying low" and avoiding printing early news about the problems at the college, It has been implied that the newspaper was taking money from the college and there may have been a conflict of interest. I assume this is about advertising and related COD provided materials to be published.

Oddest Candidate
It was reported at the Illinois Review on April 1 that Dan Bailey's supporters have hit the phone lines to back him. The phone message that they are allegedly leaving is this: "Vote in Dan Bailey College of DuPage trustee. Vote out the Tea Party backed Clean Slate. I'll be a common sense watchdog for transparency and taxpayers. Early voting ends April 4th. Election day is April 7. Paid for by Citizens for Dan Bailey." I've included an audio file of the message at the end of this post.

That is to me the oddest thing I have yet heard about a candidate in this election. One wonders whose side Mr. Bailey is really on.

Clicking will open a  New Window> Dan Bailey's Phone Message

A Ms. Hamilton Video
Ms. Hamilton at COD "Let's leave it to the voters to decide" about Robert Breuder's $762,000 severance award:




Additional COD Videos

Clicking will open a  New Window> You Tube COD Videos

Winter and Winter Complaints Recede

Winter has officially passed and with it the cold and snow. Yes, it is possible to get a snowfall in the next few weeks. In fact, several years ago we got a 12 inch snowfall on April 1st. However, it is unlikely and currently the temperature is about 68F. Looking at the 10 day forecast over at Weatherunderground, this is the prediction:

As snow recedes so have some of the complaints of residents. These complaints will morph into problems about mosquitoes and other things related to warmer weather. If 2015 is typical, I'll soon get complaints related to the warmer weather. Standing water, mosquitoes, flying ants, critters (simply follow the sunflower seeds or trail of crackers to see who is feeding them) and so on.

Lest we forget the reality of living in Northern Illinois and what that means, I'm posting a few winter photos taken in recent years. Yes, we do get ice, snow and sleet. This is normal and it does make life difficult and unpleasant. However, I would like to remind everyone that living in this climate is a choice. No one is forcing anyone to live in Northern Illinois and to my knowledge everyone either purchased in my HOA voluntarily, or has avoided the opportunity to sell. So this is the decision made of free will. With that decision, as with all decisions, there are consequences.

Of course, there are other opportunities. A home can be wherever we choose it to be. It could be in the place depicted in the following photo, in which case there might be rain in the winter and heat in the summer. That could be preferable to dealing with snow and ice in the winter:

To deal with winter this HOA spends $tens of thousands dealing with the snow and the ice. Residents get to share in the joy of winter and are provided with large buckets of snow melt (calcium chloride) to use as a supplement on "their" driveways and building entrances. They are also provided with "winter tips." Yes, living in Northern Illinois can have challenges. Nothing new here; it's been this way since the end of the last ice age about 12,000 years ago. Winters haven't changed in recent years, and not at all since 1974 when construction of BLMH began.

This is not news. How this HOA deals with winter has been constant for decades. The only change I am aware of is that the HOA no longer passes the hat to collect money when financial shortfalls in winter occur. Yes, there was a time this HOA lacked the funds to plow the snow. That's what happens when fees are kept "as low as possible."

Some residents are pragmatic. "Ho Hum, another winter; bear up and it may get ugly but thing will improve by April 1." Some residents play dumb or stupid and pretend this is the first year they have ever experienced winter. Some residents follow the winter tips and successfully deal with the weather. Some don't. Some then complain because there is ice, snow, heaving driveways or concrete and their garage doors freeze to the concrete. Ah, the joys of winter climates. Here at BLMH, winter is not all that difficult, unless one demands the amenities of warmer weather and concierge service. We don't and never did have a concierge. But who knows? This may now be one of the expectations of some residents. For those who now say this HOA is primarily a "retirement community" I must wonder what their expectations are.

As I am fond of saying, we can have anything, we simply have to pay for it. Most don't want to pay for such service, most don't want it, but a few do and will complain unceasingly to get it. The following photos were taken in recent years, some to document complaints by residents.

Gee, how is it my garage door froze shut last night?

Yep, it does look like winter out there!

Ice May Sometimes Come Inside

It's Everywhere!

How Will I Drive?

My View is Lousy!

No kidding!

Ice heaves the driveway

There remains some snow at the entry walk

They Plowed the Streets

I drove out of BLMH, but how am I supposed to get into that parking lot?

What would you suggest?

As a comment to my March 13 post "Can a HOA do that?" Docia posed the question "What is it you would have us do?"

That's a good question and there are two groups of "us" in the HOA. One is the board, which is bound by it's fiduciary duties and must act in the best interests of the association. "Must" is of course a relative term and is subject to interpretation. The other group is the owners, who are not so bound and can act solely in their best personal interests.

Docia's question requires two answers, because we have board members and owners. While it is true that all board members are owners, 98% of our owners are not board members and are not fiduciaries. So the vast majority of owners are not bound by any agreements but those which work for their personal interests. Of course there are rules and regulations, but some owners ignore them. It's important to keep these perspectives in place.

I would add that boards aren't perfect, but they aren't operating solely for their own benefit as some (many?) owners are. However, board members can be swayed by owners. When firm pressure doesn't work, personal attacks are the preferred method to deal with difficult board members. I'm speaking from personal experience and I did hire an attorney a few years ago at personal expense to put a few people in their place and remind them of slander and libel laws.

I do recommend participation by owners as their best line of defense. In other words, I suggest that owners be involved. But many owners think this HOA is a retirement community or an apartment complex. As this HOA ages there are difficult choices to be made. Some will come as surprises over time unless owners are informed and prepared.

What should we do?
I suggest that owners closely monitor the formal activities of other owners and boards with regards the HOA. The best way is to attend HOA meetings and thoroughly read anything produced by the HOA. I also suggest owners ask the difficult questions and get an education. There is a lot of money at stake here and it will be spent. Some owners will demand their wants and needs be accommodated; after all the HOA has a cash stash. Here at BLMH it is about $1.6 million. Just think what a owner could do with that? It's an unfortunate truth that 336 owners share in the benefits of that pot of gold. In other words, we each have a share of the pot which is about $4,761. Not a fortune when it is shared equally. Some owners have decided the best course of action is to share this money unequally. "Take care of me," Or perhaps take care of me and my friends.

Who is it that is the line of defense for equal sharing? It's the board and a really involved owner body. At BLMH we've had a few owners rally for their personal agenda. We've also had a few observe for altruistic reasons. It's my opinion  that the best board is one comprised of a balance of age and demographic groups in the HOA. It is also one with some skill and integrity. Such a board can fairly represent all owners in the HOA, not merely those in similar situations, or who have similar wants, needs and desires.

No one is perfect
Boards will be inclined to kick the can down the road. Owners need to be watchful for this. A former president made the statement at a board meeting that "we don't replace hallway carpeting until it becomes a trip hazard." In other words, the preferred method is to only replace things after they break. This is why our buildings have 39 year old mailboxes and my mail is currently dumped on the floor in the lobby; it's because the mailbox is broken. I'm sure within a few weeks it will be fixed.

The Difficult Question
Each HOA is different. It's important to ask the question "Why did owners purchase in my HOA?" The answer will provide some insights into what is expected. For example, at BLMH we have about 40 acres and had about 800 trees. We also have walking paths, streams and waterfalls. The manor style homes had simple interiors when built about 39 years ago. Masonite kitchen cabinets, carpeting, asphalt tile, minimalistic bathrooms, basic lighting. In fact, when I and my spouse inspected our unit prior to purchase, in 2001 she said "no way" upon viewing the kitchen. However, I promised her I could fix it. She was skeptical. But I did keep my promise and that made our unit bearable. However, there are many things in this HOA I cannot fix. There is no will on the part of the owner body to do so.

We didn't purchase here because of the upscale unit. Quite the contrary. But today, if the goal is to sequester and wait for God, then this is really a nice place to live and to die. Cheap, too! Consider the alternatives.

So what is special about this HOA? I'd guess it's the overall property and not the units. So should this HOA maintain that "ambiance" and replace trees, patch the sores where some were removed, fix the deteriorating streams, walks and so on so as to maintain that outdoor ambiance? Should the HOA do so pro-actively or wait until owners are up in arms? Or until things break? These seem to be difficult questions.

Owners need to choose. For those who want fees to remain constant, or plan to live here for their entire lives it might be unnecessary to do anything that doesn't directly benefit themselves. In other words, mow the lawn outside my unit, fix the stream outside my unit, fix my driveway, garage and my street. And to hell with everyone else. Remember, owners have no obligation but to act on their own behalf. Currently, one of the ongoing complaints is the weather. There is snow and ice in the winter. This poses inconvenience. For those who are unsteady walking on icy streets or walks might pose a hazard. So another expectation is snow and ice free entrances, walks, driveways and streets. Last year (winter of 2013-2014) this HOA spent several tens of thousands of dollars above the normal amount dealing with snow and ice. Yet some owners demand more, and lower fees.

The HOA added eighty-four knox boxes at significant expense. Yes, there is a benefit to each owner who uses those boxes. Yet we can't put in place a program to maintain mailboxes. It's a matter of priorities, in my opinion.

I suggest owners attend meetings and see who and what is attempting to strong arm the board. And ask questions. I have seen board members hide behind executive privilege. Yes, it is true that boards shouldn't publish a list of names of delinquent owners. But we can provide statistics. For many years this HOA didn't. HOAs can also provide basic information about foreclosures, legal matters and so on. But  most don't. With an absence of information is it not surprising that some owners thought everything is rosy, and that we had more than enough money?

The newsletter is the tip of the iceberg of information in this HOA. Owners can and should attend meetings. Anyone who attended the October 2014 budget session got a forthright and honest assessment from me of what I see as a future at BLMH. They also got a earful about what I think works and why I live here. They were also told on no uncertain terms the reasons I will move elsewhere and it has nothing to do with personal health or my personal finances. It is all about choosing one's abode and I have specific expectations of BLMH,

Attend the meetings, listen and ask the difficult or uncomfortable questions and you will get an education. Or, if you prefer, stick your head in the sand, pretend you own an apartment and simply expect things to work. After all, we live in the entitlement society.

IRS Scam

Last week, I received a call from someone who stated they were from the IRS and this was "a very serious matter."

I hung up, because it was a ruse to extort money from me. How did I know this? It's because the IRS always initiates contact via U.S, Mail and never by telephone, email or text message.

So if you are badgered over the telephone to pay "taxes" via your debit card or whatever, it is a scam and hang up. Ignore their fake "badge numbers" and credentials.

It is recommended that you contact any IRS impersonation to the "Treasury Inspector General for Tax Administration" or Tigta at 1-800-366-4484 or www.tigta.gov. You can also contact the Federal Trade Commission through the FTC Complaint Assistant at FTC.gov, and add “IRS Telephone Scam” to the complaint comments.

Good luck!

Can a HOA do that?

"I personally think this HOA should turn over more of the maintenance to owners." I said that in the previous post and a reader asked "Can a HOA do that?" The answer is "yes" and some have done so.

How can that be? I discovered this several years ago when the economy nearly collapsed. HOAs were hit with delinquencies and some owners walked from their units. This had a major impact on the finances of some HOAs. So what was a board to do? With 30% or higher  delinquency rates it became impossible to maintain some associations. I attended an area wide event and a board member from another HOA asked the panel of experts "What can I do?" It was a financial crisis.

In 2007 and thereafter what some HOAs have done is turn maintenance of limited common elements over to the owners. Not everyone agrees this is a good thing. After all, we can't have dis-repaired decks falling off of the buildings can we? That would be a legitimate concern. But, boards have the power to enforce the rules and to take necessary measures. Some choose not to or do so based on circumstance, which is to say when there is no other option. If a board is diligent and runs the HOA as a business, then there should be no issue.

Of course, such a board may not be popular. But even the best boards find themselves overwhelmed and if there are severe cash flow problems, how to deal with them? In 2008 some HOAs did what was necessary. Our HOA does have limited resources. Some owners do see that cash pile and lust for it. However, I have pointed out to our owners that every, and I do mean "every" dollar in our reserves has already been spent; there is a purpose for every dollar in savings. This association began the re-roofing project in 2005. At that time, a few lucky owners also got new driveways and improved drainage. Today, 10 years later, we have 76 owners waiting for a new roof. It is coming, at the rate of about 4 roofs (32 owners) per year (last year, with monumental effort we did 8 roofs for 64 owners). The same is true for driveways, which are in the process of being improved or replaced. Ditto for garage floors.

However, in recent years, not everyone on the board has seemed pleased. I have detected a resistance, an unwillingness to spend some of that money, even though it has been allocated for specific purposes. There seems to be a real desire on the part of a few to kick the can down the road. For those of us with new roofs it might not be a pressing thing. (I, by the way, am one of the 76 owners who live in a building with an 20 year old roof).  Some habits are difficult to break and some owners simply don't get it; it is useful to remember that all board members are owners and may be inclined to operate for their personal benefit. 30 year planning? Why do that? Why save for reserves? After all "I won't be here in 30 years" is what some say. I guarantee the reader that I won't be here in 30 years. So why do this? Here's my opinion: After every owner gets a new roof, and all of the driveways are done, and garages floors have been re-inspected and some replaced, flooded walks fixed, uneven walks repaired, bridge handrail barriers improved, stream repairs implemented, street repairs and so on, then a board can play intransigent and can sit on their duffs and that cash hoard for a few years. But that's not what I will do if I am here. Never fear, dear reader. I have no intention of occupying a seat on the board for 30 or more years. My decision to be an owner at BLMH is a pragmatic one.

Here at BLMH we have a handful on the board. Tasks are not equally distributed, as you might have noticed in reading the newsletter or attending the HOA meetings. Board members don't want more to do; boards don't want to increase their duties and responsibilities. We all have our lives to live. Believe me, even getting the newsletter out every other month since 2010 has not been easy. In recent years, some board members don't want to write, some apparently don't want to make a written commitment to owners, some have nothing to say, some don't like being told what to do, and there is the excuse "owners don't read it anyway." I've listened to board members complain "few come to the meetings." So how to deal with that? Improved communications, which is one of the duties of the board. A factual newsletter, one that provides the same information to all owners and one that sometimes says things that may not be popular. This is not an easy chore. It's no secret some HOA boards don't want to be accountable. Can I blame them? Let's put that into perspective; be a volunteer, do the heavy lifting and be a target. And some ask why their HOA isn't better run. Duh!

Putting the facts out there is not easy. Some owners prefer it that way. How can I say that? Attend your HOA meeting and notice the questions that are asked by owners. For example, does anyone in the audience ask for the current delinquency figures? If not, why not? Does anyone ask if the HOA has sufficient funds for the projects underway? Some HOAs don't. This HOA began a $1.5 million dollar roofing project and at the time it didn't have the money or an adequate plan to collect those fees as reserves (see the December 2008 Manor Briefs; $153,000 in reserves for roofs!). That's my opinion. After 2008 we didn't read about it in the newsletter nor do I recall a board discussion about financial issues. So how were those decisions made? Meanwhile, some owners felt that sales was the most important thing, that and prices. So keep fees low. I've only been here for about 13 years. So how can we keep fees low, avoid special assessments and take on these projects? I leave it to the reader to provide an answer. Magic? Win the lottery? Let future owners pay for this? You decide. (see the footnote for a link to the association newsletters). In the span of two years (October 2006 to October 2008) our delinquencies went from a little over $5,000 to more than $30,000. It was in the newsletter. But shortly thereafter with a new treasurer, this information was no longer made available via the newsletter, nor was it discussed during HOA meetings. Our first newsletter of 2009 had hearts, coyote pups, a "meet your neighbor" article and so on. But no more information on delinquencies; Kumbaya! Oh, and fees were lowered.Some might point the finger at the boards of 2008 and thereafter, but who led us to this precipice? it takes year to build this type of disaster. Yet, shortly after I assumed a board position I was asked "How could you allow this to happen?" Really? However, when this HOA began that roofing project (2004-2005), what had it done to assure that there were sufficient funds to guarantee that all owners would get a new roof in a timely manner? Ditto for the drainage improvements of that first roof?

Some of our owners are certainly aware of these issues, some attend the HOA meetings and some read the newsletter. Those that don't make a decision to stick their head in the sand. Based on over a decade of my observations, they will be among the first to complain when things go wrong; "How could this happen?" How, indeed!

Spring is coming and we're gearing up for maintenance and projects. The geese are pairing off. Even the squirrels are more squirrely than usual.

Footnote;
Link to BLMH Newsletters on the Web:

Clicking will open a  New Window> Briarcliffe Lakes Newsletters

Winter Recedes

I returned "home" for a few days between contracts and so I was able to snap the masthead photo.

Yes, spring is coming.

I've already received to ("two") complaints about driveways in alleged disrepair. The opinion of "disrepair" is that of the resident.

I personally think this HOA should turn over more of the maintenance to owners. That includes patios, decks and driveways. Let them get a taste of what it takes to maintain the property instead of sitting back and complaining.

I think it is a mistake for boards to be caretakers. Our "owners" are owners and should be treated accordingly. In my humble opinion, that means they should be required to make these decisions, deal with the other owners in their entrance and put out the money directly instead of expecting a board and management to make their lives wonderful.

After a decade of life at BLMH I have concluded that it is time for owners to operate accordingly, and they will NEVER do so unless forced to.