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

Monday, April 29, 2013

Flooding South and West of COD - This is A Solvable Problem

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I've received several emails and had some conversations with my neighbors south of BLMH, which is "ground zero" in this situation.

Here's my position
1. This is a solvable problem. The entities involved do have the necessary resources to do this. So the important question to ask is "What's missing?" Once that is determined, any impediments to a solution can be removed so the problem can be solved.

2. This is a large problem which cannot be solved unless the County of DuPage, College of DuPage, Village of Glen Ellyn and City of Wheaton get together with the political will to make it happen.

3. The college has sufficient funds to do this. In fact, according to a recent COD press release "On Wednesday April 23, 2013, College of DuPage is offering for sale $84,000,000 of Triple-A rated General Obligation Community College Bonds, Series 2013A." These bonds are a promise to collect taxes and repay these loans. What is lacking is the will to spend this in a way that will solve the flood problems caused by the college. However, the sources of rainwater into Lakes #3 and #4 are not solely from the college.

4. Residents of neighboring communities as well as Community School District 502 must also exert pressure on the county and COD to create  change. After all, this college is a publicly funded college. It receives 3.5% of my real estate tax bill, and has floated $340.3 million of outstanding GO debt (according to Moody's, much for the recent expansion program). Those bonds are loans which will be repaid by the taxpayers. Community School District 502 includes most of DuPage County as well as portions of Cook and Will Counties. It is inseparable from the County of DuPage.

5. Anger is not going to help. Yes, we do have an entrenched and non-responsive college comprised of its board of trustees, the president and other aspects of the administration. For some of us, the college has become a poster child for big spending, big taxing and big problem government. However, I must also point out that the March election which included a slate of trustees for the college had a miserable voter turnout in the immediate area. Perhaps this flood event will get a few people involved. The real question is "What kind of responsible involvement will it take to get this done?" This is not the time to get angry, vent or lash out. This is the time to channel that anger to get results!

6. I've received several emails about this problem. One of the questions I was asked was "What are you going to do about this?" That question is so inadequate. This isn't about water in one garage, or a personal vendetta against a college; which I certainly do not have. It's about solution and transformation. It's about using this situation as an opportunity to transform local government and that college. It's about altering priorities. If we succeed, this problem will be resolved once and for all. We could also gain a more responsive and responsible college and local governments. The college may again become something neighbors will be proud of, instead of something many of us have come to loath and observe helplessly, while it spends millions of taxpayer dollars on white elephant projects.

What Needs to Be Done
  1. The college must do more, a lot more, to retain the water that falls on its property. Every time this area gets a 50-or 100-year rainfall the land to the south of the college is inundated with runoff. Removal of soccer practice fields to provide additional surface parking and a new maintenance building has been achieved by building a network of underground rainwater sewers to carry water off of the campus, and to the southwest corner of the campus. The effort which culminated in "pond 9" was insufficient. Every time this area gets excessive rainfall the communities around the college are flooded, while the college sits substantially high and dry.
  2. Studies have been done after recent floods. One was done in 1996. What became of it? How was it used? This is another opportunity for another useless study. That approach is unacceptable. It didn't work in the past, and it won't work now.
Here is what REALLY must be done.
This is the responsibility of COD, the County of DuPage and its "District 502", the Village of Glen Ellyn in which the college resides and the City of Wheaton. The previous approach of protecting individual turfs and literally "pushing the water and problems downstream" is unacceptable. Residents should be outraged that these groups have failed miserably while $tens of millions have been spent of public money. This is an affluent county, but we don't have taxpayer dollars to spend foolishly or to flush.

Yes, we should be outraged. However, anger is not the answer.

Political will must be created to change this situation. To put it bluntly elected officials and professional managers should all be removed if they will not work together to correct this problem. I say again, this is a solvable problem. A lack of political will has been, in my opinion, the number one impediment.

A Solution
With good information a real solution can be achieved (see "We Need an Independent and Community Approach" later in this post). However, this is not rocket science, nor is it a time for another bottomless and non-performing study, or for a band-aid approach. A solution can be accomplished very quickly and without a lot of studies.
  1. It's time for this game of "musical chairs" to end. What is required is a cohesive, unified and manageable flood control approach. 
  2. How much stormwater is currently retained on CODs property? How much should be?
  3. How much needs to be stored in Lakes #3, CODs wetland, and Lake #4?
  4. What changes should be made to the capacity of CODs ponds, wetlands, Lakes #3 and #4?
  5. What changes need to be made to the stormwater discharge system of Lake #4 so that it can convey the water downstream and avoid flooding?
  6. Should COD's wetlands and portions of its western campus be condemned and seized so the County can build a proper retention lake, and maintain it?
  7. Should Lakes #3 and #4 which receive runoff from Glen Ellyn, Wheaton and COD's campus also be seized by the county so it can be integrated into a larger capacity stormwater retention system? 
  8. Who is going to get the job done?

A Personal Challenge to the College
Last year Dr. Breuder stated a problem of the college which is the cost of  water for the extensive landscaping on the campus. That includes not only grassy areas, but also waterfalls and decorative ponds.  This is paid using taxpayer dollars and student tuitions!

I find it ironic that the most recent issue of IMPACT (volume 3, No. 1), a PR publication of COD had a masthead article entitled "Standing on "HIGH GROUND""

Here is my challenge to Dr. Breuder and the Board of Trustees of the College:
  1. It's time to alter your priorities. Or, at the very least, expand them!
  2. Design and install a system to retain far more "rainwater." How about "all rainwater?"
  3. Use some of that captured water to irrigate the acres of decorative systems on the campus. How elegant, as opposed to a new well or wells and a water tower!
  4. Get creative! COD didn't make the list of 2012 best for architecture and green campuses. Spending money is easy. Spending it wisely and to great purpose is far, far more difficult!
  5. Do this in a way that is responsible, and serves the needs of the neighboring community as well as the perceived needs of the College of DuPage.
  6. Install the solutions in the center of the campus, instead of pushing them to the outlying areas where the "neighbors" need to look at them. Perhaps an even better location would be within view of the hotel and 4-star restaurant built with taxpayer dollars, and which operate at a loss and must be floated on the backs of the  taxpayers and the students?
We Need an Independent and Community Approach
An independent survey of the situation must be done and done right. One that doesn't protect fiefdoms, political and entrenched positions. I assert that's what we've gotten for the past few decades.

Here are important questions to ask:

1. What's the excess capacity of Lake #3 above its normal capacity e.g. the normal waterline. That's the amount of rainwater it can really handle. The total volume of the lake is a meaningless number.

2. What's the excess capacity of Lake #4 above it's normal capacity e.g. the normal waterline. That's the amount of rainwater it can really handle. The total volume of the lake is a meaningless number.

3. What's the capacity of the underground storm sewers carrying stormwater into Lake #3? How many gallons per hour are conveyed into this lake from "upstream?"

4. What's the capacity of the underground storm sewers carrying stormwater from Lake #3 into Lake #4? How many gallons per hour are conveyed into this lake from "upstream?" Any excess will flood.

5. What's the capacity of COD's wetlands on the southwest corner of the campus? By capacity, I mean capacity above the weir on COD property and before it overflows COD's property. Any excess will flood.

6. What's the capacity of the discharge of Lake #4 and to points downstream and to the southwest? By capacity, I mean "safe" capacity and below the overflow point at the discharge. Any excess will flood.

7. What is the precise nature of the network of underground storm sewers on the COD property? How much rainwater are they designed to convey, and where do these sewers convey it?

8. How much rainwater does COD receive in a so called "100-year" rainfall event? I'd like to compare that to the retention capacity of the systems of the entire campus, but also to "areas" of the campus, including the various ponds on the college property. This is tens of millions of gallons of water, falling on a property that promptly dispatches most of it elsewhere. Where do those millions of gallons go? How much of it inundates the "wetlands" in the southwest corner of the campus, only to flow into the neighborhood? Again, any excess will flood.

Notes:
How much rainfall does the COD campus receive in a significant rainfall event? Here's the answer, provided by the calculators of the NOAA:

273 acres = 11,900,000 square feet.

A storm of 9 inches of rainfall on that area results in 8,925,000 cubic feet of water, which is 66,800,000 gallons of water.

How much do we owe for the COD expansion?
You, fellow taxpayer, are on the hook to repay $340 MILLION!

According to the financial statements of the college "The College levies an annual property tax for the repayment of these bonds. "

So how much will the taxpayer repay? This is quoting Moody's, a bond rating service. The quote is dated April 16, 2013:

"The Series 2013 bonds are secured by the district's general obligation property tax pledge, unlimited as to rate or amount, and will finance capital improvements to district facilities, including renovations to the McAninch Arts Center, Seaton Computing Center and Physical Education Center. Assignment and affirmation of the Aaa rating incorporates the district's large tax base located in DuPage County (Aaa) with stabilizing enrollment trends; sound financial operations supported by healthy and growing reserves; and a manageable debt profile."

Note: highlights in the above Moody's rating are mine.

Wednesday, April 24, 2013

How Briarcliffe Neighborhood in Wheaton was Flooded

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Here's a link - clicking will open a post dated June 25, 2012, which was sent to municipal and county officials as part of the DuPage County Zoning Appeals for COD. Officials were told in writing of flooding and overflow concerns New Window> Flooding Concerns

You can also scroll down to the April 22 post which contains a short (4-1/2 minute) video of the overflow and flooding between Lake #3, COD's wetlands, Lake #4 and runoff from COD's retention "pond 9." This overwhelmed the capacity of Lake #4 and it overflowed its berm.

How did this happen? Here's a quote from my May 10, 2012 statement prepared and submitted as part of the DuPage Zoning Commission hearings about College of DuPage modifications and flood control measures: "We were assured [by the College of DuPage] that the retention area [pond 9] was adequate, that COD had Glen Ellyn storm water permits and that the college was “taking all measures” and this was built to handle “100 year conditions.” We were assured that work would be completed in 2011, and that the college would keep the association informed via our management company (G&D Property Management)."

At the end of this post there is also a link to a short video which was posted earlier, but I've been asked a few questions about it. Here is a description of what it shows about the flood. The following is taken from an April 23rd email communication to the following (I'll be sending a written letter April 26th):

Anthony J. Charlton, P.E – Director and Jim Zay - Chairman, Stormwater Management Planning Committee
Dan Cronin - County Board Chairman
JR McBride – District 4 Board Member
Michael Gresk - Mayor of Wheaton
Mark Franz – Village Manager, Glen Ellyn
Dr. Robert L. Breuder – President, College of DuPage

That communication included a link to the video in this post, and a request that this short (4-1/2 minute) video be viewed. That video is included in my Aprill 22nd post, which you can get to by scrolling down.

Here is a slightly edited version of the April 23rd communication that was sent to the above individuals:

"BLMH is a 336 unit homeowners association situated immediately west of the College of Dupage. It is within the boundaries of the City of Wheaton; COD is within the boundaries of the Village of Glen Ellyn.

Retention Lake #3 (the "north" lake) is immediately to the north of BLMH and Lake #4 (the "south" lake) is immediately to the south, and COD’s wetland is to the southeast. These are defined as “Zone A” on Wheaton-RFM-Panel-0154.pdf, the Regulatory Flood Map of this Quadrangle of Wheaton in DuPage County.

We are slightly south of Briarcliffe Blvd and Fawell (22nd). On the morning of April 18, this association was surrounded on three sides by water. Levels of the retention lakes (#3 and #4) joined by runoff of COD rose to such a height as to be within inches of flooding Dover Ct., Salisbury Ct. and residences on Gloucester Ct. in the association. Had these flooded, it’s unclear precisely where the water would have flowed. That never happened ONLY because Lake #4 overran its berms, draining the system and lowering the level of COD's marsh and lake #4, thereby allowing the area to drain into south Wheaton.

 By 9:20am lake #3 had overrun it’s bank in the southeast corner and joined runoff from the north end of COD’s new “retention” pond to form a fast flowing river which transported a huge quantity of water from Lake #3 and COD’s property to Lake #4. To the East of Gloucester Ct. this body of water was joined by additional runoff from the southern end of COD’s newly completed “retention” pond. This “river” paralleled the route of the underground connection of these two lakes. The water on the surface was trapped by CODs berm installed at its western property line to shield BLMH from their retention pond.

The video shows the situation between about 8:40am and 12:40pm on that day. The COD wetlands and Lake #4 became a single body of water, and the “river” was joined by COD’s retention runoff which flowed into the wetlands and filled both it and Lake #4 to beyond capacity, overrunning berms to the south. It’s unclear of the condition on the south side of the wetlands. We do know that homes on Brentwood Lane in Wheaton were flooded by this. We also know that water continued to flow for several blocks southward, flooding additional homes. The level of lake#4 at that time was above the overflow on the western side of lake #4. In short, the capacity of lake #4 was exceeded, but was restrained by the outflow control devices and the capacity of the underground piping which drains this lake. However, the runoff of COD was not restrained and both lake #3 and lake #4 exceeded capacity. This flooded the adjoining community.

 At these extreme water levels, there was a body of water east of BLMH extending from Lake #3 to Lake #4; the height of this body of water was equal to that of Lake #4. Yet, even at 12:40pm runoff from the “retention” pond of COD continued to fill this body of water. This is clearly shown in the video.

If the berm had not been breached, thereby dropping the lake #4 water level, BLMH would have been under water. That includes Gloucester, Salisbury court and Dover court. Berms and portions of shoreline have been damaged.

These issues were raised when COD removed the soccer practice fields which extended for a large part of their western property as a buffer and additional water retention. These were removed to create parking in 2011 and an area for a new maintenance building. A small water detention area was added, and subsequently increased in size. All of this was approved by the County of DuPage.

However, it appears that the runoff from areas east of this new “retention” pond on the COD campus filled and exceeded the capacity of the newly constructed “retention” pond. I suspect that there is unrestrained flow from COD’s pond(s) east of the retention pond and parking areas, which then overflowed the retention area and exceeded the capacity of Lake #4, COD’s wetlands, and backed up to Lake #3.

This has put hundreds, perhaps a thousand homeowners in a serious situation. This is unacceptable. I am of the opinion the storm water control systems at the College of DuPage are grossly inadequate. It’s not possible for me to ascertain if the situation with Lake #3 is adequate, nor is there a way for me to know precisely how much runoff from COD contributed to that lake level. However, there is at least one drainage connection from the COD property to lake #3. I know, because I’ve photographed it.

We also know that in that 24 hour period, Wheaton officially received 6.91 inch rainfall. I first moved to Wheaton in 1978 and I am aware of more severe rainfalls in Wheaton. I want to know precisely how the County, various municipal officials and the College of DuPage will address and correct this situation. I’m sure hundreds of Briarcliffe residents in Wheaton also want to know how this will be corrected.

Thank you,"

Clicking will open a  New Window> Briarcliffe Flooding


Monday, April 22, 2013

How DuPage Retention Lake #4 Exceeded the Height of the Berms

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On April 18, the wetlands that are a part of COD rose to such a height that those wetlands became contiguous with retention lake #4. As this was occurring, a river formed on the western boundary of the College of DuPage, which ran from lake #3 and the college property southward into lake #4. That river parallelled the flow of an underground 42 inch diameter connection between lakes #3 and #4. Capacity of lake #4 was exceeded and it rose to such a height as to overflow the bounds of the berms on the south side of the lake.

The outflow of lake #4 is restricted by the county, which controls both this lake, and upstream lake #3. It's my opinion that flooding is unavoidable with the present arrangement.

If you want to argue about this, I suggest you view the following video which shows the situation between about 8:40am and 12:40pm on April 18, 2013. During this entire episode, the western part of the College of DuPage campus was "high and dry." The water containment systems at the college failed because they DID NOT impede the flow of water from the college to lake #4. This excessive flow to COD's marsh and then into lake #4 exceeded the capacity of the lake. Nearby residents paid the price. It is also possible that the systems of the DuPage Water Commission also failed.






Comment
On April 23, via email, links to this video were sent to the Mayor of Wheaton, three members of the City Council, a City Engineer, and to a member of the DuPage County Board. I do appreciate that these people have a lot to do and so I didn't expect a reply at this time. 

This problem remains a situation involving the College of DuPage, the City of Wheaton, the County of DuPage which now has certain jurisdiction over the college, and the Village of Glen Ellyn in which this college officially resides.  On reading this list, you might think it is somewhat like that old joke "How many people does it take to screw in a light bulb?" COD stonewalled our concerns for about 18 months, and those of the Village of Glen Ellyn for far longer. It will be up to the County to sort this out, as they are probably the only body with sufficient leverage to do so. 

This problem transcends the college, but that doesn't give them an out. The fact is, there is a serious flood water retention problem in this part of Glen Ellyn and Wheaton. At present, this part of Wheaton bears the brunt of the floodwater from the North and East, and immediately east is the 270+ acres of the College of DuPage.

Here in this 336 owner association, the board has made some drainage improvements to alleviate standing water. At the time, some owners were impatient and I stated "We can't solve this problem until we decide how to avoid pushing it onto someone else. " In other words, simply piping water downstream and into someone else's lap is not a solution. Some of our owners were unhappy to hear that, but we persisted and within two years an acceptable solution was designed and installed.

Unfortunately, not everyone around us shares this type of responsible attitude about how to deal with these problems. That includes others in nearby communities, the College, and perhaps even the County. I have no idea what it will take for them to get together to solve this. Until they do, it will happen again, and again, and again. As I stated to a nearby resident, it isn't possible to build the berms on Lake #4 high enough to solve this problem, unless it is walled off from Lake #3, the College and its marsh, which serves as a runoff point for the southwest corner of the College. But perhaps that is what it will take. Of course, that will flood out homeowners in South Wheaton, but from a slightly different source. I suppose they can then go to the next "Meet and Greet" suare' with Dr. Breuder of the College and complain. 

I suspect a lot of people hope this problem "will go away" but it won't. Apparently a lot of homeowners in Briacliffe didn't realize the magnitude of this problem. If elections are any indication, the very low voter turnout a few weeks ago underscored the obliviousness of many in this community.  

Sunday, April 21, 2013

Is There a Flood Control Problem?? Flood April 2013

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Yesterday, maintenance, management and a board member became aware of a situation with the Lake #4 Retention Pond. This resulted in a flurry of activity which eventually made it's way to the Chicago news stations. As is the case with most of these situations, this was merely the tip of the iceberg. There was a flurry of activity which preceded placing sand bags near a manhole on the south side of the lake.

There have been questions raised about the County flood control system. I raised some of those questions, as did others during recent COD expansion hearings. However, finger pointing is not the purpose of this post. What needs to be determined is simply if the existing flood control system for this part of DuPage County is adequate. This storm was not the worst in this area (See Note 1:  July 17-18, 1996 Wheaton received 9.52 inches). However, it has been reported that on April 18-19  the East Branch of the DuPage River rose 10 feet above the pre-storm level and reached a height 2 feet above the all-time record.

Recent videos I've taken show large water outflow from the College of DuPage to the Lake #3 and #4. They also show overflow of Lake #3 which created a river running from the North to the South and into Lake #4. That river bypassed the restrictors in this flood control system, and resulted in uncontrolled flow to retention Lake #4.

However, the discharge of Lake #4 is restricted! This high flow upstream of Lake #4 may have caused the high levels of that lake and the overrun of the berms on the south side of the lake. Residents of South Wheaton need to ask this question "Are the County of DuPage flood control systems adequate?"

Allowing unrestricted flow into Lake #4 while restricting outflow may jeopardize south Wheaton. This association pointed this out to County and COD officials as part of the concern of BLMH residents about the ambitious construction programs at that college. Yes, with only 6 inches of rainfall in a 24 hour period, we were surrounded by water on three sides for two days, with the flood runoff from the north and east literally "lapping at our doors."

These concerns had been raised with the County and the College of DuPage and the larger, redesigned COD retention/detention pond was supposed to alleviate this situation. However, the videos posted here in recent days indicate that these efforts were INADEQUATE. Throughout this entire episode the college was "high and dry" as it has successfully created a system which, in my opinion, drains it's runoff into the neighboring communities.

It's my opinion the current situation was avoidable, and the water retention system at the College of DuPage is flawed. It may also be that the County flood control system is also flawed!

Temporarily, sand bags were used to stabilize a possible breach of the retention pond wall after water levels had already overrun the banks. However, the water in that pond reached almost to the top of the pond discharge and the overflow point. It reached a height sufficient to run over the berm on the south side of the retention pond and the wetlands.

I'm sure the County will step in and tell others to "fix this." But as I stated to a resident of South Wheaton, just how high are these berm walls to be built? It's impractical to contain the flow of water from upstream retention ponds #1, #2, #3 and the College of DuPage in a single retention pond.

This was a close call for about a thousand homes. Nearby residents told me they were unawares of the situation. Was this a wake-up call?

Notes:

Note 1. This added April 28. I originally listed 1993 has having a higher rainfall. it was 1996. Here are some recent statistics for "24-hour rainfall depth, inches":

August 13-14, 1987; 7.26" rainfall according to DuPage County
July 17-18, 1996; 9.52" rainfall according to DuPage County
September 12-13, 2008; 5.27" rainfall according to DuPage County.

Note 2. There are different methods in use for reviewing maximum rainfalls. Here are a few:
  • Rolling 24-Hour Totals  - Picks up storms that straddle over two calendar days 
  • Calendar Day - Totals for a specific day
  • Annual Duration - The Largest Event in Each Calendar Year.
Note 3. The term "100 year" rainfall is used to describe a rainfall that has a 1% chance of occurring.  The problem is, when designs are based upon such rainfall data, as is true with many things, it all depends upon the data used. A "100 year rainfall" could mean 7.25 inches of rain in a 24-hour period, or 8.68 inches. The recent rainfall did not reach these levels according to the National Weather Service.

What does a "100 year" rainfall mean? If there is a 1% chance of such a rainfall each year, then such an event could occur with a frequency of once each hundred years. However, that's a description, not a fact. The facts are, Wheaton is getting a "100 year" rainfall about every 10 years! How can that be? Let's just say that if we think a 100 year event will happen only once in 100 years, then we are mistaken and we are gambling. The biggest gambling myth is that an event that has not happened recently becomes overdue and more likely to occur. This is known as the “gambler’s fallacy.” The opposite is also true. Simply because a "100 year" or 1% rainfall occurred last month, does not mean that it cannot occur next month. In fact, such a rainfall could occur every year. 

As a design criteria, a 1% rainfall is useful for determining how much rain might occur in a 24 hour period; that provides engineers with some idea of how much water their retention designs must accommodate  However, it's useless for determining how frequent such a rainfall can or will occur. What this means for those living in the area immediately to the southwest of the College of DuPage is simply this. If a 1% rain causes that area to flood, it will flood each and every time such a rainfall occurs. Assuming that this event will happen only "once every 100 years" is a grave mistake.

There are also other possibilities, including 5-year, 10-year and 25-year rainfalls.  So what would those rainfall totals be? There are different methods of using the data available.

Here is a list of 24 inch rainfall depths for Wheaton, using the "Gumbel extreme distribution" method. This provides some smoothing of the data:
  • 5-year, 24 hour rainfall = 4.29 inches. 
  • 10-year, 24-hour rainfall = 5.03 inches. 
  • 25-year, 24 -hour rainfall = 5.96 inches.
  • 50-year, 24-hour rainfall = 6.66 inches.
  • 100-year, 24-hour rainfall = 7.35 inches. 
Here is a list of 24 inch rainfall depths for Wheaton, using the "Log Pearson Type 3" analysis:
  • 5-year, 24 hour rainfall = 3.89 inches. 
  • 10-year, 24-hour rainfall = 4.71 inches. 
  • 25-year, 24 -hour rainfall = 6.03 inches.
  • 50-year, 24-hour rainfall = 7.24 inches.
  • 100-year, 24-hour rainfall = 8.68 inches. 
Note 4. It's probably worthy of a separate post on this data and what it may mean for Wheaton.  The above  Gumbel and Log Pearson data is from a report prepared by Megan Elberts which was entitled "How Recent Rainfall Events Compare to Bulletin 70," which was presented at the 2012 IAFSM Conference.   "Bulletin 70" was data published in 1989 regarding heavy rainfalls  in Illinois. 

Note 5. Natural Disasters in DuPage County. (http://www.city-data.com/city/Wheaton-Illinois.html)
 According to city-data.com the number of natural disasters in DuPage County was 13. Here's a list, but some incidents may be assigned to more than one category:

Major Disasters (Presidential) Declared: 9 
Emergencies Declared: 4
Causes of natural disasters: 
  • Storms: 7,
  • Floods: 6
  • Snowstorms: 2
  • Blizzard: 1
  • Snow: 1
  • Tornado: 1
  • Winter Storm: 1
  • Flood: 1
  • Hurricane: 1
  • Tornado: 1
  • Winter Storm: 1 
Note 6. I  once posted here that our association was in "no man's land" between Wheaton and the College of DuPage/Glen Ellyn. I think that is true. In fact, here's a link to a neighborhood map of Wheaton. We don't exist in any recognized neighborhood!

http://www.city-data.com/nbmaps/neigh-Wheaton-Illinois.html

Note 7. How much water falls on the College of DuPage in a 1% rainfall event? This depends upon how one measures a "1% rainfall event." Let's assume such an event covers the 273 acres of COD with 7.25 inches of water. Here's one number to think about: 56,000,000 gallons. Yes, that's right. COD doesn't retain but a very small portion of the rainfall that hits the campus. So about 56 million gallons have to be "dispensed" via their drainage systems into the nearby water rainfall drainage systems. When those systems are filled, the excess flows elsewhere, such as the "wetlands" on the [southwest] corner of the college, and from there into retention lake #4.  In fact, some of COD's rainfall drainage systems carry the water just far enough to dump it in the "wetlands" thereby assuring that it will continue to flow downhill into retention lake #4.

If the volume of the "wetlands" and retention lake #4 can't handle the water directed to it, then it simply flows downhill into the homes in that part of Wheaton! As far as the College is concerned, this is a good system because the college is high and dry. As for everyone else downstream? I guess that's "their problem." That, by the way, accurately describes the situation since the 1987 "flood." What's been done about this? COD has constructed more parking and better and larger (higher capacity) underground systems to drain the college property and protect it. Oh, and one small retention pond (pond 9) was recently built. But where is the water conveyed by these systems? Oh, that's someone else's problem!

Press Releases
Here are the City Press Releases on this issue, with the most recent at the top:

PRESS RELEASE - City Of Wheaton


4/22/2013

Briarcliffe Lake 4 Status Update

WHEATON, Ill. – Lake 4 of the Briarcliffe subdivision has returned to normal water levels and continues to be stable. Wheaton’s Public Works Department has sandbags in the area to use if necessary. The City will continue to monitor the lake. Updates will be posted as they are available.

People who want to sign up to receive press releases by email as they are issued may use the City’s email notification system here: http://www.wheaton.il.us/emailupdates, and choose the "Press Release" option at the bottom.
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PRESS RELEASE - City of Wheaton

4/21/2013

UPDATE: Briarcliffe Evacuation

Emergency personnel have stabilized the Lake 4 retention pond with sandbags and residents from the immediate are have been evacuated. The situation is ongoing and will be continually monitored throughout the evening and morning hours. A full assessment will be made early Sunday, April 21 and updates will be posted to the City's website.
Further information will be posted to the City’s website or will be available by calling the Wheaton Police Department at 630-260-2161. 
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PRESS RELEASE - City of Wheaton


4/21/2013

UPDATE 2 - Briarcliffe Evacuation

WHEATON, Ill. – This morning members of the City of Wheaton’s engineering and public works personnel assessed the Lake 4 retention pond breach and determined it to be stable. Residents who evacuated their homes can return.  The City will continue to regularly monitor the situation throughout the day and consult with experts as time progresses.
 For any residents who have had utilities turned off:  If their natural gas service was shut off, they are advised to call Nicor to check appliances and reestablish service. If electrical power was turned off due to flooding, a qualified electrician should be contacted to evaluate their system before restoring power.  
 Ongoing information will be posted to the City’s website or will be available by calling the Wheaton Police Department at 630-260-2161.  People who want to sign up to receive press releases by email as they are issued may use the City’s email may use the City’s email notification system here: http://www.wheaton.il.us/emailupdates, and choose the Press Release option at the bottom.
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PRESS RELEASE - City Of Wheaton

4/20/2013

Evacuation Recommended for Homes Near Lake 4 Retention Pond

WHEATON, Ill. – The Lake 4 retention pond to the north of Brentwood Lane in the Briarcliffe subdivision is currently leaking but stable, causing the potential for the berm to breach. Homes in the immediate area could experience flooding if this occurs.

The City is recommending evacuation of residences in the area bounded by:
  • Brentwood Lane to the north
  • Nottingham to the west
  • Windsor to the south, and
  • Cheshire to the east.
Residents in this area have been contacted by the City of Wheaton’s reverse 9-1-1 system alerting them of this condition. This evacuation is recommended until further notice. Anyone needing temporary shelter can go to the emergency shelter at the Krasa Center at Benedictine University, 5700 College Road in Lisle.

Further information will be posted to the City’s website or will be available by calling the Wheaton Police Department at 630-260-2161.

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Drying Out - April 20, 2013

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Well, the South Lake and the North Lake are dropping in height.

But it's not over yet.

Sandbagging was underway late yesterday afternoon. A video taken earlier in the day is included in this post.



Here's a video shot on April 20. What remains unanswered is, was the amount of water received at the South Lake, Lake #4 normal, or was it aggravated by the changes at the College of DuPage?


Friday, April 19, 2013

The Aftermath of the Flood

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Note: Additional rainfall totals have been added to this post. This is the third post pertaining to the flooding and the extreme rainfall yesterday. All contain videos. Scrolling down will take you to the  two previous posts. An updated City of Wheaton press release is included in this post.

At 10:30 I completed a survey of the property and made an "after the storm" video which is included here. How much rain did we get? Here's the Official weather rain map for the 24 hours ending 8:00am Thursday April 18. According to the National Weather service (http://www.crh.noaa.gov/crh/):
Click the photo to enlarge:
 "The following are rain amounts for the previous 24-hours as measured in the morning by NWS Cooperative Observers and COCORAHS Observers. Observations are usually taken between 6 and 8 AM."

Wheaton received 5.77 inches, while Glen Ellyn received 5.61 inches. Naperville received 6.14 inches and Lisle's Morton Arboretum received 5.52 inches.




UPDATED RESS RELEASE - 3PM APRIL 19

Contact Information:
City of Wheaton, 

4/19/2013

Numerous Wheaton Streets Remain Closed Due to Flooding

WHEATON, Ill. – Due to the excessive rainfall and resulting flooding that occurred on April 18, a number of Wheaton roadways remain closed. As of 3 p.m. April 19, the following roadways are closed: (Updated at 3:00 p.m.: Roads that have been crossed out are now open.) 
  • Main Street and Route 38  
  • Main Street and Cole Avenue  
  • Main Street and Willow  
  • Delles south of Roosevelt Road
  • Dorchester south of Childs
  • Briarcliffe and Windsor Drive 
  • Gary and Harrison 
  • Gables and Childs
  • Bristol and Bradford
  • Thompson and Wadsworth
  • President and Sumner
  • 500 block of East Crescent and Washington
  • College and Wilmette
  • Illinois and Main Street  
  • Dorchester and Childs
  • Vernon and Hickory
  • Main and Parkway  
  • Cherry and Ranch
  • Eastbound Roosevelt Road from Adare Drive to Westhaven is reduced to one lane  
Please use caution and do not drive through flooded areas.

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Comment:
Here are revised rainfall totals "for Wednesday and Thursday" as reported in the online version of the Daily Herald on April 19 updated online at 10:10 pm. There's a link to the original article after this list:

Rainfall totals for Wednesday and Thursday:
Naperville: 7.34 inches
Elmhurst: 7.26
Aurora: 7.12
Lisle: 7.01
Oak Brook: 6.98
Wheaton: 6.91
Glen Ellyn: 6.86
Winfield: 6.13
Chicago O'Hare: 5.55
West Chicago: 5.48
Sugar Grove: 5.47
Bolingbrook: 5.40
Algonquin: 5.34
North Aurora: 5.33
Sugar Grove: 5.24
Bloomingdale: 5.16
Carol Stream: 5.14
Batavia: 5.13
Elk Grove Village: 5.06
Schaumburg: 4.98
Cary: 4.92
Roselle: 4.84
Hawthorn Woods: 4.63
Geneva: 4.54
Mundelein: 4.50
Bannockburn: 4.47
Fox Lake: 4.41
Gurnee: 4.40
Elgin: 4.36
Riverwoods: 4.36
Lakemoor: 4.35
St. Charles: 4.34
Elburn: 4.25
Wadsworth: 4.17
McHenry: 4.16
Lake Zurich: 4.15
Barrington: 4.08
Lake Villa: 3.96
Antioch: 3.94
Hoffman Estates: 3.86
Buffalo Grove: 3.66
Arlington Heights: 2.06

Clicking will open a  Flood: River levels, rainfall totals, road closures



Flood April 18 - "How Could This Happen?"

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Here's an added link - clicking will open a post dated June 25, 2012, which was sent to municipal and county officials as part of the DuPage County Zoning Appeals for COD. Officials were told in writing of flooding and overflow concerns:  New Window> Flooding Concerns

This is my second post containing videos I took. These were taken yesterday April 18th and show flooding on nearby Brentwood Lane. It appears the levels of the marsh and the South Lake exceeded the height of the berms.  I'm sure that people are asking the question posed in the title of this post.

 I'll be checking the property this morning, but it seems we escaped the worst. There was no flooding on the property, but we were surrounded on three sides by water! The board is still collecting information and I'll assemble a report for the next board meeting.

Certain drainage improvements in the past three years paid off. I was aware of only one area with standing water due to collection. It is the "mosquito glade" behind Harrow, where the earlier board replaced a walk, but decided against drainage improvements. I have sprearheaded other improvements including thinning of trees at the "glade". That will accelerate the drying. One of the earlier board came to an association meeting last year to complain about standing water on the property. I've spend a good part of my efforts in the past three years cleaning up the messes created by others.

Yesterday, the City of Wheaton declared a state of emergency and issued an official press release. That release is at the end of this post. As reported in the Wheaton Patch "Governor Pat Quinn declared a state of emergency as state agencies prepared to provide assistance to local governments throughout northern Illinois dealing with severe river and flash flooding."

Looking Across the Lake Toward Brentwood Lane





Homes on the North Side of Brentwood Lane







Water Exiting the Yards on Brentwood Lane and Running South on Briarcliffe







PRESS RELEASE

Contact Information:
City of Wheaton, 630-260-2110

4/18/2013

Wheaton Declares State of Emergency; Avoid Flooded Areas

WHEATON, Ill. – Based on the extensive damage to property, buildings and vehicles caused by excessive rainfall, the City of Wheaton has declared a state of emergency.

Many areas throughout Wheaton are currently flooded. The City of Wheaton recommends drivers avoid the following areas:
  • College Avenue train station commuter lots
  • Main Street and Cole Avenue
  • Blanchard between 22nd and Briarcliffe Blvd.
  • South County Farm Road and Shaffner Road area
  • Lorraine Road between Roosevelt Road and Evergreen
  • Blanchard Road and Heritage Lakes
  • Liberty Drive and Blanchard
  • Lorraine Road and Buenta Vista
  • South Main Street between Roosevelt Road and Illinois Street
  • Main Street and Willow
The areas listed above are some of the major roads that are currently closed. Many arterial and secondary streets also remain closed. Please use caution and do not drive through flooded areas.

The National Weather Service has issued a flash flood warning until 8 p.m., and a flood watch remains in effect through Friday morning.

The DuPage County Office of Homeland Security and Emergency Management, in cooperation with Benedictine University, has opened the County shelter at Krasa Center Benedictine University, 5700 College Road in Lisle. The County Shelter is available to residents who do not have any other place to go.

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Thursday, April 18, 2013

Flood April 18, 2013

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I and other board members have been on site since 8:30am this morning and monitoring conditions. Here's the first of several video posts.

I've made 31 videos since 8:30 this morning. Some of the ROCs asked me if I had a camera, while the former Communications Director looked on, from the "portico" I had built!

Yes, the current board is prepared, and all of that hard work to deal with drainage issues has paid off.

This is the first video. As I prepare them they will be added to this post. These videos paint a grim picture.




Here is a video of the situation at the south lake.This is the depository for water from the North Lake and CODs wetlands, before it heads south, via underground piping. 






Here are a few videos along the midway points between the North Lake and the South Lakes














Here we are, back at the south lake, which is where all of the runoff from the north lake and the College of DuPage eventually accumulates. From here, it continues on it's path, as controlled by the DuPage County Floodwater control services.








Monday, April 15, 2013

Real Estate Update Spring 2013

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Bookmark and ShareIt's that time for a real estate update. Some continue to be discouraged because current prices haven't "snapped back." There are a lot of simple, common sense reasons for this.

There have been signs of life in residential real estate in Northern Illinois. However, while prices in some parts of the country have upticked in recent months, not all communities have experienced this. Yet, there is brisk sales activity in some communities. One nearby community has had 649 sales in the last two years, with only 251 currently on the market. In Wheaton, 1747 homes have been sold in the last two years, with 451 currently on the market. Prices are up about 6.4% over the previous year. and seem to be increasing.

Interest rates are the best they will probably be for some time to come, and have begun to increase. 30 year conventional mortgage rates with 10% down are running 3.5% to 4.3%. It's been reported that new home construction has reached a point where there have been shortages of some materials, prompting manufacturers to open idled assembly lines for such things as plywood. According to the National Association of Home Builders as quoted at Morningstar April 15: "Many builders are expressing frustration over being unable to respond to the rising demand for new homes due to difficulties in obtaining construction credit, overly restrictive mortgage lending rules and construction costs that are increasing at a faster pace than appraised values,"

Inflation is relatively tame and that should keep interest rates low. However, this trend with inflation running 1 percent or more below long term averages will not continue. In fact, all that it will take is some sort of Middle East or North Korean episode and all bets will be off.

All Real Estate is Local
That's an important factor to keep in mind when listening to things such as the Case-Shiller home price indices or the statistics of the National Association of Realtors. Here's an example. Chicago's home market is struggling as it loses population, and yet a friend who is attempting to purchase a home out here, west of that city, has found that there is some serious competition for homes! He was looking for a home in 2005-6 but decided prices were too high, and we both agreed the economy was too fragile.

Since 2005 he's been sitting on the sidelines, saving and renting. After 8 years he decided that this was the time, and last week he put a bid on a home new to the market, but found that one day after listing there were three bids ahead of him, and one was for a price about 20% higher than the asking price.

That was an interesting development, and he stated after looking for a month that a lot of the better properties are moving at a fast pace. It's been reported that banks are beginning to release more foreclosed properties.

So why did he decide to take the plunge now? For one thing, and this is most important, he can afford to buy a home. He was pre-qualified by a bank for a mortgage and began looking only after he had decided how much "home" he was willing to buy. Currently, mortgage rates are increasing, home prices are increasing and rents are increasing. He's decided that it's time to make a modest change and he expects that he will "break even" in 3-5 years as compared to renting. He's of the opinion that residential real estate will only get more expensive from here.

Yet, prices remain off of their 2006 highs and in general are about 20% off of the peaks in Wheaton. Some are apparently waiting for a return of the "good old days" when we paid a lot more for a lot less home!

Factors Governing Home Sales
Prices are low, so what is the problem? In a nut shell, too many cannot afford a home. For another, there are an awful lot of short sighted people out there. For example, they'll trade in a used car for a new one carrying a 96 month loan. How expensive is this? A recent article in the Wall Street Journal mentioned such a buyer who was paying $36,000 for a $23,000 Toyota Camry!

My point is anyone who is willing to spend $13,000 extra to buy a car in this way is not going to have that money available to purchase a home. How much is $13,000?  It's a year of rent for a modest dwelling.  It could nearly purchase a new Honda Fit for $16,000 or it could fund a Roth-IRA for 2-1/2 years. It's also a 13% down payment on a $100,000 dwelling.

While some complain that a home is a terrible investment; home ownership was never supposed to be an "investment." A home is a place to live as an alternate to an apartment. Anyone who prefers to flush their income on more car than they need, or questionable car deals, etc. probably doesn't have the financial skills necessary to budget, save and purchase a home.

Here is a list of financial impediments to buying a home:
  • Student Loans
  • Revolving Credit debt including credit cards
  • Auto loan debt
  • Poor credit history or low credit scores.
  • Lack of savings
  • Poor financial and budgeting skills. 
All of the above reduce the purchasing power of the individual. While FHA will allow a home loan as high as 41% of  income, many financial planners recommend spending no more than 30% of one's take home pay to purchase a home. That 30% includes the mortgage, taxes and insurance. If a condominium, it should include fees and assessments.

A Tale of Two Economies
We continue to hear about high unemployment, and yet we also see the stock market hitting new highs. What's going on here?

I'm of the opinion that we now have two economies in the U.S. There are people with cash and retirement accounts who are employed and relatively debt free. Then there are the rest.

Contrary to some of the statistics, most are working, many do not carry excessive credit card debt, and so on. When we read that average credit card debt per borrower is approaching $5,500 that means that some have $0 credit card debt while others have $11,000.  The actual statistics are worse. The average household credit card debt is about $15,000. in other words, some households have $0 credit card debt, while an equal number have $30,000!

Average interest rates on credit cards are about 14.9%. That household with $30,000 credit card debt is paying $4,470 per year in interest! Add a 96 month car loan, and it's reasonable to assume that a home will not be a possibility for 8 or more years. Of course, in 8 years when that car is paid off, the individual in this example will probably buy a new car. Perhaps sooner. And so the cycle of debt continues.

Here's a graph that illustrates the problem. It shows household debt payments as a percent of disposable income. It peaked at a little over 14% in 2007 and as of October 1, 2012 had decreased to about 10.4%. I understand it has increased since October. It's again useful to realize that these are averages. Some households have 0% debt, while some have 21% payments. For some households, this is more than 41% of their income!


An Absence of New Buyers
The major problem is the absence of new buyers. For the reasons stated, many cannot buy a home, and a few could, but have decided not to. That is a significant change in the home market, which saw annual percentage increases since 1945.  Back then about 45% owned a home. By 1990 it was about 60% and today it's about 70%. How did that happen? The government in an ill planned move, decided that "we should all be homeowners." That decision was good for the banks who make the loans, good for the construction companies and workers, good for the realtor estate brokers, and good for all kinds of manufacturers who provided the goods and services that are necessary for a new home.

It was unfortunate, but to entice more and more buyers into homes, the government made it ever easier. 0% down loans, reduced requirements to get a FHA loan, and so on. This had the desired effect as more could buy a home. It also opened the flood gates to all kinds of questionable and unsustainable practices, including "liar loans."

So where do new buyers come from? From the young. Interestingly, in the age group 20-24 about 35% own their homes free and clear. At the other end of the scale, about 25% of retirees own their home. Currently about 70% of us do live in a home or condo and have a mortgage.

Another disturbing trend of the 2000's? A lot of people used their homes as a "piggy bank" and took out large mortgages. Now, at 65 when they should be reducing debt, they find that they continue to pay a mortgage from their social security income. Well, it was fun while it lasted, and they can take solace from that fact that a lot of banks prospered from these loans!

The largest group of possible new owners are younger people. However, it seems there is a concentration of younger people who have excessive debt including student loans. Others in that age group have been struggling to get a job at a wage that matches their skills. Younger buyers are usually a peak market for home purchases. Today it's been reported that older people who have amassed cash through years of savings are purchasing second or third homes. These are considered true investments and alternatives to that 1% CD, bonds paying 2% and the foibles of the stock market.

Sometimes, people use the term investor as a dirty word. I prefer a more simplistic view. There are savers in our society and there are spenders. Those who save accumulate wealth and then have the problem of determining where to put those savings. Some will fund a Roth-IRA for retirement, some will be parked in a bank as a 6 month emergency fund, and the rest? Most savers have learned through trial and error to live within their means. No fancy car, no McMansion, no iPhone and other toys. Savers will accumulate 10% of their annual wages. Super savers will accumulate more. Over 40 years, that's $2 million or more. That is why the Obama administration is now promoting limiting the retirement savings of "super savers." Better it be spent on junk, or anything that the government can tax.

It's interesting, but older people are buying homes as investments which they will rent to the younger people who shun them! The current situation is somewhat reminiscent of portions of DuPage County in the early 1980s and New York City in the 1970s. A lot of people bought real estate as an investment at that time, and have done quite well from the rents collected and the appreciation of the properties.

Today, we again have two distinct groups. Those who have saved and are looking for a place to invest it, and those who would normally be buyers, but cannot or will not because of high debt, disinterest, or poor financial skills.

Can I Afford a Home or a Condominium?
Here are some sample figures for a rock bottom home in Wheaton with a price of $100,000 and nothing down. This is a best case example:
  • Annual mortgage at 4.0% = $4,512.
  • Taxes: $3,153.
  • Mortgage Insurance (PMI): $500.
  • Home Insurance: $500.
  • Total = $8,665 per year.
Using the above and assuming the cost of a home represents 30% of one's take home pay, that means that anyone who takes home more than $29,000 a year should be able to afford such a home. Of course, finding something suitable for $100,000 may not be easy.

Condominium prices have been lower than home prices and there are condos in the Wheaton area for $100,000. Here's an example for a condominium:

  • Annual mortgage at 4.0% = $4,512.
  • Taxes: $3,153.
  • Mortgage Insurance (PMI): $500.
  • Home Insurance: $500.
  • Condo Fees at $250 per month = $3,000.
  • Total = $11,665 per year.
Using the above and assuming the cost of a home represents 30% of one's take home pay, that means that anyone who takes home more than $38,900 a year should be able to afford such a condo.

Here's a current graph of the interest rates for a 30-year conventional mortgage from January 1, 2000 to March 1, 2013.


So What's the Problem?
The problem?  One thing that might be holding some back is reality. You can't get a McMansion for $100,000. Another is student debt, which is rising. Student Loans exceeded credit card debt and approached $1 Trillion in 2012! This figure ignores the fact that many college graduates not only get a sheepskin for the wall, but walk away from that 4-year university with significant credit card debt.

Here's a current graph of consumer credit:

Recent school graduates or new families comprised of recent graduates have traditionally been a source of home buyers.  However, when these new families are strapped with college loans, credit card and new car debt, they are sometimes automatically disqualified from obtaining a home loan. 

Here's a partial list of the impediments to purchasing a home or condo:
  • The glow is off of residential real estate.
  • Many possible first time buyers would prefer to rent
  • Many first time buyers have too much debt to qualify for even the simplest home FHA loan.
  • Some would rather buy a new Toyota Camry for $36,000.
  • Lack financial skills. 
  • Short term thinking. 
Am I Being Too Harsh?
Not at all. Simple arithmetic indicates that one can buy a small abode for $100,000 and if the costs are compared to even basic rent at $1,100 a month, the cost to buy versus rent is better after 2 years.  Yes, you did read that correctly. One can buy something for $100,000 today, and the break even as compared to rent is 2 years! Even a condo with $300 monthly fees will break even within 4 years!

Of course, after that break even point, the owner finds that they are accumulating some equity and are financially ahead, and that is comparing a 3% annual rent increase and a 2% annual increase in home value. 

Is a 3% annual rent increase realistic? Here's a chart from the St. Louis Federal Reserve. 3% annual increases may be a bit too low!


What's the Big Problem?
I suggest that one of the impediments to purchasing a home is financial skill and literacy. This begins at an early age, 16 or younger. By the time the average graduate, who is supposed to be our "brightest" has exited college, they carry with them an average $30,000 student loan debt. In other words, some have $0 debt and some have $60,000 in debt. Add to that credit cards and the auto loan. Some have dubious degrees and will take decades to earn enough to live and pay for those school loans. Some did not understand that college is not an alternative to working. It's a part of a long term education to prepare one for 40 years of working and saving. 

So Who is Buying Today?
To repeat, one of the sectors fueling the real estate market is investors who are dissatisfied with the 1% they get in CDs at the local bank, and the perceived risks in the stock market. 

Real estate is cheap today, and it's very easy to get a 35% return on investment in rental real estate. I'll say that again. A 35% annual return. So would you rather put your money in a bank at 1%? Apparently, many people have decided otherwise.

"Investors" with good credit and who can put down a sizable down payment have recently gotten 15 year mortgages for 2.2%! 

Alternative Perspective
The bottom line about buying a home is this. Can we afford it?

 Even Suze Orman has gone on the record and apologized for steering us into owning a home. Back in 2011 she said "The American Financial Dream is Dead." Orman has since promoted renting. But is it really that bleak? Here's a video from 2011. She states the problem very well.

Oh, by the way, the government in order to pay for all of those failed mortgages via FHA, has recently increased the requirement for Private Mortgage Insurance. For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years. In other words, a FHA borrower will be required to purchase PMI until almost 80% of the loan has been paid off!





The Bottom Line

"The impact of low mortgage rates is profound. Before the Fed began buying mortgage-backed securities in late 2008, rates for 30-year fixed mortgages stood at around 6.1%, and a borrower who could qualify for a $1,000 monthly payment could get a $165,000 mortgage. Today, that same borrower, at a 3.5% rate, can borrow as much as $222,000. In other words, the Fed's low-rate campaign has increased purchasing power by a third." From The Wall Street Journal April 7, 2013

According to that same article in the Journal "The housing sector is finally healing. But the sector may be in for more volatility until there is more demand from—and credit for—people who want to buy homes that they plan to live in."

Yes, people can buy more home at current low rates. However, these rates also allow buyers to get a home at a lower annual cost. Using the above example and the figures from the WSJ, one can buy that $165,000 home for a monthly mortgage payment of about $750. That's a reduction of $250 a month to pay taxes or PMI insurance. Yet, there is a call from some for more government intervention to make homes even more "affordable." We've been there and done that, as Suze Orman says, and we know how it turned out, don't we?


Sunday, April 14, 2013

Catch Me If You Can!

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An Unpopular and Difficult Chore
I've been in this association for over 10 years I've observed that maintaining and enforcing the rules in a large association is one of those unpopular chores. Enforcement of the rules has been an obvious issue to anyone attending association meetings. Several years go it was usually reported at the meetings that there were no rules violations. At the time, another unit owner remarked "In an association with 336 units that's difficult to believe!" Some Rules & Regulation Directors (R&R) or boards apparently preferred only to act if there were a violation reported by an owner. I guess that rules enforcement was considered police work.  It apparently didn't fit in with an agenda for a "kinder and gentler" community, and anarchy was preferred!

As it is with all things here at BLMH, there are differing points of view on rules enforcement. Some expect the rules to be vigorously enforced, and others do not. Some see it as unnecessary and an infringement upon their personal rights. Some owners are for it, if it is the board that does the dirty work. For example, if they purportedly see a violation they may call a board member and complain "You should do something about it" or, after the fact, they may come to an association meeting and complain "Why didn't you do something about it?" What they won't do is report it using the required procedure which is a "Written Initial Complaint by a Resident, Association Board or Association Management." You'll note that "Resident" is first on that list.

Should owners expect another owner or the board to do the "dirty work" that they are unwilling to do? Should owners expect the board to insert themselves between some of their differences? We're not mediators or policemen. We will do what we can to keep the peace but we're not here to arbitrate disputes. However, if an owner won't even fill out the basic paper work and expects a board member to do this, I suggest it becomes unreasonable.

We've experienced R&R enforcement which was lax simply because the director didn't do it. It's difficult to say why this occurs. I concluded that the reasons might be the fact its unpopular with some at BLMH. One doesn't enforce the rules with their "friends" does one? Why not?

Time is another problem. Monitoring our extensive property can be time consuming. Simply walking from address to address on the property can take 45 minutes. Add another walk along the patios and it can take hours. Then let's walk along Briarcliffe Blvd to 1825-1827 and around the lake.  I've spent the better part of a half-day doing the walk I describe, and so I know.

In an association management will take its cues from the board. There is a lot to do in an association this large and I can appreciate a position that doing a task that alienates one to the board is not a good use of time. The board will also take it's cue from the president and the R&R director. If the director simply doesn't do the job, then what? Should another board member take on double duty and perform that duty? Why? Board members are equals. Work on the board is supposed to be more or less equally distributed. Board members have specific duties and responsibilities.

Taking up the challenge is a good way for a board member to become a target of the 5%.

A Growth Opportunity
Serving on the board is a growth opportunity. Taking away one's duties and responsibilities is not a good approach with a recalcitrant board member. However, it remains that the board does have serious work to do and some how it must get done. If not, then stagnation and serious problems can occur. There is no "auto pilot" in our association.

In society the "do bees" might be penalized and given more and more to do. The "don't bees" may succeed by simply dragging their feet and allowing the "do bees" to get the job done. If this were a row boat and one side were manning the oars and the other coasting, we'd be going in circles. So too with boards and organizations.


This can lead to animosity on boards, and I'm sure directors walk off from time to time. Last year, an owner addressed me at a meeting and told me "You are not the board." I said "You are absolutely correct, and there is an empty seat here for any owner who wants to take on the empty position." They didn't take me up on that offer.

Rules enforcement, like all other tasks in the association fall to board and the R&R director is the leader in that task.


Practicing Good Citizenship
Keeping the rules is inconvenient and at one time or another, we'll each step over that line. It may be excessive trash in the garage, or a failure to pick up doggy do, or not moving our car during a snowstorm so the plows can complete the street, or leaving it unattended on the property for two weeks while we're on vacation. However, keeping the rules is not to be a burden; I'd suggest it is an opportunity to make an expression about what type of association we want and what part we fulfill in it.

Keeping the rules is another aspect of maintaining our unit and our personal property. When we understand and follow the rules, we're practicing good citizenship. We're maintaining our relationship in this community association and we're putting it into action.

If we do break a rule, we should expect a letter of correction. If we fail to comply we can expect a fine. That fine has been looked upon from time to time as "board repression." It isn't. Owners are given an opportunity to comply and if they fail to do so, then a fine is used as a means to encourage compliance. Our association does not "make money" levying fines. I'm sure management and the board have much better things to do than this. But it is a part of the duties and it is necessary to take steps to assure compliance. Or would owners prefer anarchy?

In some situations compliance may not be easy. Most boards are not comfortable with discussions about circumstance as a criteria for rules enforcement. In other words "For some individuals and under certain circumstances rules violations are acceptable." That's creating distinctions and different classes of owners. A definite no-no under the Illinois Condominium Act.  All owners are equals and all owners have the same responsibilities in the association. Of course, we don't all behave identically. We have different perspectives and different views on what is important and what is not. The rules assist us in establishing community priorities we can live with.

Living and working in a community is not a social club. We do need guidance from time to time about what is appropriate behavior and what is not. It's not a popularity contest.

Rules and Fees
Looking into this more deeply, one can't discuss the rules without looking at fees. Paying fees in a timely manner is one of the rules. In fact, paying the fines is one of the rules! So, some observations about fees will be included in this post.

I walk the property frequently in the warmer months. This is to do various condition inspections and look for maintenance problems. Of course, this also picks up various rules violations, which are reported. I usually include a photo which is date stamped and with location etc. on the face. This is accompanied by a brief description and I frequently copy the specific rule text and provide the necessary references. Of course, the camera is mine, etc.  With management, I've done thorough garage interior and patio surveys and inspections.

With the arrival of spring, I'll again be doing specific surveys and inspections.

When doing past surveys, we have determined that a large majority of owners do not have apparent and visible rules violations. The most frequent violations include patios or decks with things on railings or other than outdoor furniture. Another is lawn chairs, feeders and barbecues in the common areas. We have found some rules violations in garages. These are usually inoperative vehicles or storage of boxes and bags. Large oil stains sometimes occur. This might not be considered a violation, but it is true that the owners of these vehicles can expect a fee for extra effort spend to clean up those stains by our cleaning crews.

One re-occurring problem is residents who set things on second floor patio railings. This is dangerous. One resident stained the new railings with run-off of plant watering; those plants were on set on the railing. Of course, this also flowed onto the patio below. That might be the source of the problem. Residents may be setting the plants there so the run off doesn't fall through the deck and onto the belongings of their neighbor below. However, nothing is to be set on the railings.

There are occasional complaints about satellite antennas and that includes wandering cables.

In some buildings there is a complaint about mice. We caution owners about storing anything edible in non-metallic containers in the patio and garage storage closets. Some owners do feed the animals in violation of the rules and others do use grass seed as allowed by past boards. Unfortunately, these seeds not only attract birds but also mice and squirrels, who can be very prolific. I suspect some of the issues in specific areas of the association are caused by such feeding. Reoccurring mouse complaints is an indicator of some sort of food source.

Before continuing, I want to emphasize that rules violations aren't an epidemic at BLMH. However, I also think many residents are not aware of the rules. That includes renters who see this as an apartment and have no interest or involvement in this association; so too for some of our remote owners. However, ignorance is not a valid excuse. If it was, the best defense for any problem would be "I don't open my mail or answer the telephone." I guess we could call that the "ignorance is bliss defense." That's why this association has found that it is necessary to inform owners that "Failure to receive a monthly invoice is no excuse for not paying your monthly fee."

The Board and Residents - Apparent Aloofness or Ambivalence
Our association has one Rules & Regulations Director and what seems to be an aloof or ambivalent population. So he is outnumbered! Yes, the owners do generally agree that "We want and expect the rules to be enforced." However, that is not always true if it interferes with a personal perspective, results in inconvenience, or interferes with personal activities.

Rules enforcement is a hot button for a few owners and may be an embarrassment for some violators. It shouldn't be. Rules have nothing to do with being a "good" neighbor or a "bad" neighbor. Nor have they anything to do with convenience. In other words, we all make mistakes and while we may have the opinion some rules are "good" and should be enforced, it is also true that what I may consider a "bad" rule does not allow me the choice to violate it. I think some of our owners have been given very poor coaching by self styled "experts" in the association. The rules are the rules!

If a rules violation is reported using the proper procedures (when, where and by whom) a letter is issued and the resident is given a reasonable amount of time to correct the situation. Most of us have done a violation at one time or another. So how to react on receipt of that letter? Fix the problem, ignore it, or stonewall the board? Of course, there is a procedure for formally contesting a violation letter. However, saying "The rule is stupid or unfair" is not a defense. The question is "Did I violate a specific rule?" If the answer is "Yes" then it's best to consider correcting the problem. The resident can then take all the time in the world to attempt to change the "stupid" rule. And some have. Others say "I won't and you can't make me!" That approach will result in multiple letters and a fine or fines. It may be a way for some owners to get attention and divert the board from more important matters.

When owners take a position that the rules are "stupid" or "I don't like it" I am of the opinion that they are making a personal statement about the association. The board does review the relevance of the rules, and not just on occasion. We're aware that the rules are a part of the social fabric that binds us all. Believe me, I don't like or agree with all of the rules. That however, is not the issue, nor is it an opportunity to avoid keeping a rule or enforcing it. Board members are required to uphold the rules, just as they are required to collect fees and do their best to maintain the property. Owners too are required to keep the rules and pay their fees and do what they can to be "good neighbors." All residents are expected to keep the rules and be good neighbors.

As is true for all things in an association, this is not a popularity contest.

However, if a resident insists upon the "stupid rule" tack, then I am inclined to say "You are entitled to your opinion. However, if you really don't like it here, then consider living somewhere else." It's a fact that most of these rules have been in place for decades. These documents are provided to all owners before purchase and are to be provided by owners to their tenants as part of any lease agreement. Discovering that we don't allow 2 or more dogs and cats in a unit after purchasing is not an acceptable excuse. You can't just have a garage sale, park your RV or 6-wheeler, have a lawn party for your church, or whatever. That grassy expanse is not "your" lawn, or mine. It is shared by all and is for no one's exclusive use.

That is the center of this issue. We are not really "owners" of the association. We are shareholders, and we share everything. Selfish or antisocial people have great difficulty adjusting to living in an HOA. If you think you are the center of the universe, then I guarantee that you will make life miserable for your neighbors and be a disruption to the board.

The vast majority of our association rules were made decades ago and have a sole purpose and that is to promote harmony in the association. The most recent changes were made to accommodate advances in technology and to recognize the change in the value of the dollar because of inflation over the past 35 years.

I am of the opinion that a few may actively practice rules violations. Some residents see rules enforcement as repression or an infringement on personal rights. Some are antisocial and see any form of exterior control as a challenge to their personal domain.  Others say what they are doing as not harmful and so it's okay!

I've been here for over a decade. I've watched owners attend association meetings and denigrate the board about rules and rules enforcement. Some play both sides, arguing that the rules are unfair and also arguing that they aren't properly enforced. A few years ago we entered a time of a "kinder, gentler" board accompanied by minimal rules enforcement. Is it a coincidence that delinquencies doubled during the next 18 months or was that solely the result of a weak economy? The fact is, what we each do as individuals does make a difference.

Is there a Purpose to These Rules?
Our rules have several purposes. These include keeping things civil and harmonious, assuring that everyone pays their fees, and assuring that the association is operated with only one class of owners. I suspect these are the principal motivators for rules in most well run associations.

Most of the rules are common sense and many are obviously designed to assure a harmonious society.

Yet, some owners and other residents attempt to skirt the rules. Informing management "after the fact" doesn't make it right. It does, of course, make it difficult for the board to enforce the rules, and that may be the purpose of residents who skirt the rules.

When these things occur, other owners will sometimes join in the sport. Common complaints to the board and to management include "How could you allow this to happen?", "Why aren't you doing your job?" And "Someone should do something about this!"

Sometimes violations occur unbeknownst to the board. The fact we didn't know this was going on is no excuse!

Apparently, even our legion of walkers is unawares or oblivious. They walk and talk but ignore rules violations. It seems that maintenance issues such as peeling paint is occasionally reported, but for example dilapidated, rusting air conditioners are ignored. I suppose the thinking is these will have no negative impact on property values! (The rules state that these are to be painted a neutral color). Pots or other objects teetering on balconies, barbecues and chairs or benches on the lawns, these too are generally ignored. Yes, there is collusion among the owners. It might be "quid pro quo" where some owners assume that if they ignore rules violations that this "courtesy" will be extended to them. I suggest the ultimate motivation to look the other way is simply "It isn't my duty or responsibility." If so, then some of our owners think they are living in an apartment complex.

Because of a lack of resident involvement, enforcing the rules has devolved into a game which is the title of this post.

How Extensive are These Rules?
We have rules about the use of the common elements. Our grounds can't be used beyond walking with friends and family, or your pet. If you walk your pet it is to be on a short leash and you are supposed to pick up that doggy-doo. That's a requirement of Wheaton Municipal code. We have several trash receptacles on the property for deposit of these little bags. Some use them. At times, we see a proliferation of small bags accumulating adjacent to some of the buildings. How are we to determine who owns these?

All owners are required to complete an annual census form and to have Condominium Owners Insurance. They are required to provide proof of that insurance. The reasons for such insurance would be obvious. However, if an owner doesn't comply and doesn't produce these documents, exactly how is the association to enforce this and make them get insurance? I have yet to get an enforceable answer from anyone to this question. Yes, there are fines, but some owners apparently prefer to pay those fines than produce the necessary documents. Go figure!

Satellite antennas are allowed, in accordance with FCC rulings but we do stipulate where they can be installed. That stipulation is an attempt to achieve a trouble free installation for both the association and the owners of these antennas. The buildings were designed long before individual satellite antennas were popular. The association uses owner paid fees to maintain the exterior of the buildings; exterior repairs caused by antennas and the interaction with the elements come out of general maintenance because we don't have a specific fund for antenna related repairs and damage, holes, etc. Why should we? The association does not own these antennas and the majority of owners don't have one. Similarly, we don't have a fund to maintain the cable TV system and repair is by the owner and their vendor. That antenna is the property of the respective owner or resident and all maintenance of it is their sole responsibility. Owners are required to get a variance form and fill one out before the installation. They are then given an approval letter via the management office. But it seems some don't follow the procedures and simply install that antenna whenever and wherever they wish. When a wind storm occurs and that antenna is ripped off of the building with a part of the fascia it was fastened to, management will get a call to "Fix the building NOW so my TV works!" Some will argue that the fee to remount or re-aim the antenna should be paid by the association. In other words, from the fees of the other owners.

Patios and decks are "limited common elements" and are maintained by the association. We replace and repair decking materials, repair concrete patios and recently completed the replacement of all railings. Owners are permitted lawn (outdoor) furniture on their patios and decks, but that spare couch can't be moved from the living room to the patio. Indoor-outdoor carpeting (green or brown) on the patio or deck is permitted. The lawns are not part of an owner's living room. So while first floor owners may walk onto the lawns from their patios, that's onto property owned and maintained by the fees of all owners, including those living on the second floor.

We also have stipulations about dumpsters on the property, storage in the garages and on patios and decks. There are rules about what can be parked on our privately maintained streets. Automobiles must be in working condition and cannot be stored on the streets. There are restrictions to the use of the driveways and streets. Motorcycles need a protective plate under support skids to protect the asphalt; these are readily available. Approved dumpsters must be for a very short duration and on timber or plywood to protect the asphalt driveways. And so on.

Do the Rules Interfere with a Good Time?
Some want to party on the property. They see all of these grounds and say "That's ideal for a party." True, and we could have games and sports of all sorts, too. But ideal doesn't mean that's a proper use.

Yes, we all like to use these grounds, and some would like more extensive use. Some also want private gardens off of their patio. Others would like more outdoor activities and some would like extensive barbecues and evening lawn parties for family, friends and acquaintances. But we are limited under the rules.

There have been really lengthy discussions about this over the past 5 years. In fact, it seems owners would rather discuss this than discuss foreclosures and delinquencies. Yet most owners would also like to see lower fees, if that were possible. I find that interesting. I suppose one could say it is a matter of priorities.

When owners have approached the board to discuss this rule and to promote a rule change, or contested the rule about such activities, they have also declared they won't get the additional insurance to indemnify the association for damage or if someone is injured on the common elements. The argument has been "That isn't necessary. No one will get hurt, and there will be no damage" When told during such discussions that alcohol cannot be a part of the proposed festivities unless specifically allowed by the insurance rider of the owners, and that under age drinking is illegal they will say "No one will be drinking." Perhaps, but if things do go wrong, who will pay the consequences? If someone is injured or there is property damage, then what of the insurance and future premium increases levied on the association? The cost of those fees and any judgments will be distributed to the other owners.

Owners have different opinions about what might be acceptable activities during lawn parties. One person's nuisance might be another's entertainment. Some think it should be a quiet and dignified affair. Others see an opportunity for lawn bowling and games for children and adults. Some would certainly enjoy soccer, volleyball and horseshoes or other lawn games. There has been no consensus brought forward that I am aware.

Wheaton has a lovely park with pavilion immediately across the street. We encourage residents to use it for their large parties, sports activities and so on. If that park lawn is damaged, if there is trash left behind or if there is an injury, the consequences won't be paid by the fees of the rest of our owners. Yet that has been argued as "inconvenient."

The fact is, the owner body pays a lot of money each year for insurance, to maintain the 15 acres of turf, the lake shorelines and the hundreds of trees and shrubs on our property. So too for the park benches, streams,  waterfalls and central decks. None of us has an exclusive right to these facilities and this association does not  have an army of janitors to clean up behind anyone, or extra money in the budget to restore lawns or take care of any damage. Most of our owners would say they would prefer no fee increase this year, or the next.

Inconvenient Fees
One of our rules involves the timely payment of fees. Our fees have been described as a major inconvenience. Some owners will state that they are "too high." I'm sure we all have some other use for that money each month. But we also expect our roofs to be replaced in a timely manner, the exterior of the buildings to be properly maintained, and that includes the driveways, patios and decks. Ditto for the shorelines of the lakes and oh, those 800 or so trees, the streets, water mains and sewers. Let's not forget about the hallway and garage lighting, the street lighting and so on. Snow plowing is not an option and neither is association insurance. Accounting is done and reserves are a necessity.

I have been told that there was a time this 40 acre association, a PUD, had fees of about $35 a month. Think about that! Some of our old timers will probably say that things were wonderful back them. I'm sure they were. Extraordinarily low fees, few reserves and no apparent plan for adequate reserve accumulation. Yes, those were the good old days. Ask them and they will also tell you that the hat was passed on more than one occasion to collect enough to pay the association bills.

How many owners today could deal with a special assessment?

I suspect that 20 years ago owners were probably delighted. Things looked wonderful. True, there were financial issues, but those were mere "details." Some of the shrewder ones probably expected to move on before the rest of the owners woke up to the reality and the special assessments arrived. I have been told that many owners argued to maintain fees at a low level.

But something changed. New management about 15 years ago pointed out that fees were not adequate for an association of this breadth and depth. The fees increased. But this association had some catching up to do. Owners continued to argue that "fees are too high."

Today, after two paid reserve studies, we seem to be on a sustainable track. But each of our owners certainly would prefer to keep that money and spend it on their personal wants and needs. That is understandable.

The board has put three studies to very good use; one was internally prepared. These studies have been an important source of the recent decision to make a fee decrease for reserves. Yes, you read that correctly. This association was able to reduce the fees collected for reserves in 2013! The board instead put funds into a contingency for infrastructure breakdowns such as water mains, fire hydrants and so on. How many associations can say that?

Do Those Opposed to Rules have a Point?
Interestingly the same people who make arguments against many of these rules sometimes come to association meetings over the years to complain.  The theme for these owners is "I don't like this and the board should change it to satisfy me."

To be honest, I do understand where people are coming from with respect to inconvenient rules and fees. What's a reasonable annual increase? What's an expected annual increase? This association not only had one, but several negative annual fee increases, back in the "good old days." You've read this correctly. This association, with minimal reserves, actually reduced fees back in the "good old days." So some owners have come to expect a fee decrease if we have money in the bank. I say that because the buzz about 5 years ago was "We have enough money; a fee increase is not required."

That was only true if one ignored the state of the roofs and driveways, and the costs necessary to complete the programs in progress.

Back in the 1980s and 1990s some owners made their financial decisions based upon the monthly fees. Before purchasing here I discussed this association with owners. Some owners told me that the fees were too high! I gave the financial documents to my accountant and asked his candid and unbiased opinion. His first remark was a concern about the reserves. He didn't know this association was a PUD, which actually puts more financial pressure on it.

Unfortunately, a lot of owners apparently didn't do their "due diligence" or didn't run the numbers. I also suspect they didn't have an appreciation for "the miracle of compounding." It worked in their favor for a while, and they saw a $50,000 condo rise to the stellar heights of $190,000 after 15 years of annual property value increases. Unfortunately, the same is true for budget shortfalls. That's why this country has a multi-trillion dollar debt and is running huge annual deficits. You don't have to look that far. We all know the financial condition of the State of Illinois, don't we? We didn't get to that place in one year or five. Borrowing and spending more than is collected is a good way to build a large financial hole. Illinois made the same mistake some individuals and associations have made; they didn't save for the future, preferring to spend today and defer planning to tomorrow.

What is true for our government is also true for individuals.  If an association underfunds reserves for a few years, it creates a financial hole and it is very difficult to catch up. An association and the owners should expect to replace roofs every 18-20 years, repair or replace driveways, and so on. It should also expect that costs will rise over time. If the owners don't accept this and refuse to plan accordingly, then those bills will be paid by future owners. That's what apparently occurred in the 1980s.

Fees weren't comfortable then and they aren't comfortable now. Owners will always prefer to spend any money sent to the association as fees for their personal satisfaction or needs. It's just like taxes. However, in our association we can see how the money is spent. Yes, there are cycles in which funds are accumulated. At those times when the association is building reserves for these very expensive capital projects it's not obvious that there will be new roofs in 5, 10, or 15 years. I suppose that is when some owners are prompted to say "What do we get for our money?"

What Other Rules Do We Have?
Household pets are allowed, and these are defined in the R&R documents. If we didn't do that, I suppose a chimpanzee or panther would be expected to be normal on the grounds. Owners can have one cat or dog. Not two or three, and while four 5-pound dogs may weigh the same as one 20 pound dog, our rules aren't based on weight.

There are stipulations about the hours permitted for certain types of noisy activities and "construction" in the units. While "hardwood" floors are permitted, there are specification about the quality of noise abatement and professional installation is required, with proof of that.

Owners can't cut holes in the exterior walls, modify the structural elements and supports of the buildings, extend into the common areas including wall spaces, garages or attics. (What! I can't have a sky light or an attic penthouse?). They are not to use extension cords cut and wire-nutted to install their ceiling mounted "can" lighting and such lighting must be suitable for direct contact with insulation. They are to adhere to City of Wheaton codes and ordinances.

Installing kitchen ventilators which discharge in the walls or attic is not permitted; they must vent into the kitchen space. Apparently this may be difficult to comprehend because we have had owner(s) vent their kitchen exhausts into the attic and even the space between units. Wood saturated with grease is not a good thing. This creates a fire hazard!

Owners are required to fill out architectural and maintenance variation forms and get letters with specific permission from management for many modifications. That includes exterior window replacement and patio doors. They are to keep these in a permanent file so they can be produced if there is an issue or a complaint in the future. Of course, turning these over to a new owner at the sale would be helpful. We're all good neighbors, I have been told.

This association allows rentals. Tenants are surrogates for the remote owners; this is not a rental community. There is no superintendent. All residents are expected to pitch in with the application of snow melt on the driveway and entrance walk. They should help with brushing snow from the entrance. Yet how many remote owners have such a conversation with their tenants and provide a shovel and broom for that use? Owners are required to fully inform their tenants of all rules and regulations and are required to provide them with a copy of these rules. Owners are also to get a one year lease and provide a copy to management. How many actually do these things, and how many don't? And some owners wonder why there is tension from time to time between renters and onsite owners?

Feeding of the wildlife is not permitted. Yes, we have residents who persist in doing this. Walking the property will sometimes reveal bird feeders, or seed thrown around patios. This attracts many of the birds who live in and around the property, and will provide a nice show. It also attracts mice and adds to the diet of the many squirrels on the property.  We have some buildings from which we receive complaints of mice. In some cases, we've discovered that someone in the building is feeding the animals. We can't always determine who the culprit is.

We have a lot of shady areas. That makes growing grass difficult. Some owners have complained and so the association allows them to plant additional grass seed in the common areas adjoining their patios. We also allow lawn sprinkling to grow that seed. This is a compromise. One must wonder how many mice are feeding on that grass seed? However, owners may not extend into the common areas. They don't own that lawn! Staking out an area to allow grass to grow is understandable. But if it becomes a area that fences in a lawn adjacent to a patio and limits general access, some may wonder what is going on. Access to that area should be available to all owners. We can walk anywhere we wish on the property. It is also true that walking immediately adjacent to patios and window may not be courteous. Of course, the management and our landscaping director may prefer we adhere to the walks so the ground is not compressed and the grass not flattened.

We've discovered other "bootleg" plantings from time to time. Some owners have argued these are desirable. Some really aren't.  Last year, our arborist spotted a shrub which he identified as a pest harborer. Where did  that shrub come from? He suggested we remove it because that specific plant harbors a species of mites that attacks our pines. We did remove it. After all, we have hundreds of trees and spend thousands of dollars each year maintaining and spraying them.

There was a move afoot a few years ago to create "gardens" on the property. In particular, to allow special plantings by owners off of patios. In other words, to allow first floor owners to extend their exclusive area beyond the patios and into the lawns. As was pointed out, that might seem fine to a few, but who pays for trimming those special bushes and shrubs? Our landscapers are not gardeners. If you walk the grounds you will see the occasional plant that deviates from the planting scheme. How did that get there, if not by an owner or tenant? Beauty is in the eyes of the beholder. Shrubs, turf, groundcover and trees are generally agreed to be acceptable. However, some of our flowering trees drop fruit and that has been objectionable to some owners, and some of these trees have been removed.

One of the rules is the timely payment of monthly dues (maintenance fees). If these fees are late, the association sends a letter and for this and other violations there is an additional "fee" schedule. Rules violations get a letter first; continued non-compliance will result in a fee. This too has been considered "repression" by a very few in the association. In fact, this is to assure compliance. One of the things owners may not be aware of is the expense born by this association chasing owners who are delinquent. It takes letters and in some cases, an attorney.  All of this takes the time of management. There is a finite amount of that and as we say, "time is money." So why should owners who are timely, pay their bills with alacrity and keep the rules, have a portion of their fees diverted to dealing with those who don't? That question is the flip side of the "fairness" argument that some used to stonewall board activities to maintain a healthy associations. I think there are some really distorted viewpoints about "neighborliness" and "fairness."

Garages are shared. Each owner has a stall and a place to store their trash and recycling receptacles. All vehicles must the operable and we don't allow engine, automobile or motorcycle repair in the garages and on the driveways. Ditto for boats, etc. Bicycles are permitted, but must be stored in such a way as not to obstruct walkways, etc. General storage in the garages is not permitted. Each owner has a closed and locked closet in the garage for their exclusive use. Additional lockers, shelving and cardboard containers are rules violations. The association maintains the interiors of the garages with the exception of the overhead doors which are owner property. We've replaced ceilings, floors and repaired walls. Owners may paint the walls a neutral color, but they must obtain a letter from management. For all such activities we require an insured company so in the event of a mishap the other owners don't pay for someone else's mistakes or accidents.

Yet, some owners attempt to turn the garages into an extension of their storage lockers. Well, if these weren't shared facilities and if all interior maintenance costs were paid by that owner, it might be acceptable. But it isn't.

Conclusion
The game will continue because of the mistaken beliefs of some owners about what they are entitled to do and how they expect "their" fees to be used in the association. This will continue because of an unawareness of the current Rules & Regulations, the apathy of other owners, and some antisocial tendencies in society.

There is also a history to contend with. When a board decides to get lax about the rules, this is quickly telegraphed to the other owners. Once precedent is set, it may be difficult to get owners and other residents back on track. A board may find itself with the difficult task of rehabilitating the association.

It's an interesting observation to make, but if asked, many owner will say they are in favor of vigorous rules enforcement. But it seems that's not true when they receive that rules violation letter.

As I said, most of this is common sense. Some is designed to protect us from each other. Some is to assist in the maintenance of the property and avoid spending fees unnecessarily.

Its been argued that for some violations it is difficult to see the harm in some of the infractions. I'm skeptical of that defense. Most have a simple basis. Keep owners in their units and from infringing on their neighbors. Keep activities safe and prevent damage to the property. Set boundaries so we each know where our "unit" stops and the jointly owned property begins. Have enforcement for fee collection so owners honor their financial obligations to the association.

Some of this isn't going to be popular. Some of it will put owners in a position where they have to make financial choices. Let's see, would I rather have a nice vacation, a new iPhone or automobile, or pay that onerous fee each month?

The board is required to enforce the rules. We are required to do so equally and fairly. In other words, it's not possible to look the other way for some owners and enforce the rules for others because the Illinois Condominium Act prohibits the creation of separate groups or classes of owners. A board that deliberately refuses to enforce the Rules & Regulations may be creating such classes. Of course, some rules may be difficult to enforce. Lack of cooperation by owners and outright collusion may make it impossible to enforce all rules.

Electing board members who refuse to enforce the rules is one covert example of collusion among owners. How many owners would vote for a board if it was made known that "We won't enforce specific rules?" How many such boards would be willing to put that a position into writing? Very few I expect, because we all do really know what is required.

Another way of bending the rules is to pretend "There is enough money" because of a perceived balance in the check book. Ignoring future obligations including reserve requirements when making such statements is deceitful. This may also occur if a group of owners decided to elect a board to keep fees low and in so doing, avoid costly maintenance or the collection of fees to accumulate necessary reserves. This could be a popular approach for owners who hope to sell their units before such an association collapses into disrepair. Of course, the other owners will be left 'holding the bag.'

However, owners have a right to expect that the property will be maintained, that the association will do proper studies and collect the necessary reserves, that the fees will be levied to do so, and that the board will do its fiduciary duty.

Of course, the owners may decided that they don't like the rules. There is a way to deal with this with integrity. Make a list of specific changes, provide them in writing to all owners, and get agreement from the ownership as required in the bylaws.  Another method is to get a board in place who will either not enforce the rules or will selectively enforce the rules.

Why Does it Take So Long?
Sometimes owners wonder why it is that things don't get done, or it takes so, so long. The answer to that question can be complicated, and includes the fact that a board convenes once a month in open meetings. Month 1 = hold a discussion and decide how to proceed. Month 2 = review the bids or whatever transpired in month 2 as a consequence of the decisions of the previous month. Month 3 = the contractor, or whomever was awarded the work has an opportunity to put the work on the schedule. Month 4 = the work is done if all materials arrive and workers are available. A similar scenario occurs for many tasks in an association.

Of course, the Monday morning quarterbacks only see that "their" wants, needs and desires are the most important. The board should deal with that water main break, or that felled tree, or that blizzard "in their spare time" and after you take care of ME!

Owners get the boards they elect, and the boards they deserve.
That's the bottom line, and it is why each and every association is what it is. Some have more and larger problems, and some fewer. It's completely the result of the owners.