Please Leave a Comment as "Anonymous"

From time to time there have been complaints, and taunts. I don't post the comments of all "anonymous" commentators.

Here is the deal.

First, at least one of these "anonymous" commentators attempted to post a graphic, x-rated photo here. Secondly, while I prefer to spare the reader from such gross stuff, let me say this about sending anonymous comments to me:

Please use the "Anonymous" comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for knowledge and more specifically facts and scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, "Anonymous."

Drop Everything and Respond Immediately for the 1%

This post is an update. The title of this post refers to the recent demands of an owner who expected the board to forget about transparency, break the rules and make decisions and approve requests outside of regularly scheduled and open association meetings. That didn't happen, but I did have to "drop everything" write several letters including one to the city on the issue "as an owner" because I had no approval by the board to do so. How could I have obtained one? We had no opportunity to discuss during regularly scheduled HOA meetings. If anyone thinks I do this as a hobby they are delusional. I will be honest. I deeply resent how some owners attempt to manipulate the board for their personal aims and benefits. I resent even more how they manipulate their position and present the image that it is for the benefit of others. Rubbish!

After several years on a HOA board there is absolutely no doubt in my mind that some owners are up to no good. There is also no doubt in my mind that some are willing shills.

Demanding that I use my time to cater to and immediately respond to the personal wants, needs and desires because one, some or a few owners have decided I should do so seems to run paramount for a few of our owners. I have an expression "A lack of planning on your part does not constitute a crisis for me." Nor should it. I have come to view these people as "the 1%." Not that they number that or are the wealthiest. The expression refers to their self determined sense of importance and their uncompromising willingness to place themselves above all others, and the demands they place on the HOA board.

Other owners should be concerned. These types of hi-jinks in HOAs literally "hijack" the board and derail other programs and divert resources from real issues. But then again, some owners think the board is a bunch of servants. Some clearly enjoy their roles as instigators.

I haven't posted for a while. The negatives have seemingly exceeded the positives. Also, it's that time of the year when things are in full swing here. I'm not talking about garage sales or summer parties. I'm referring to association business. We began planning for 2014 in 2013 and worked on this in January through May. For too many owners, planning  of this type is beyond comprehension and personal financial planning is nonexistent or is an option. For some in society, having money in the checkbook is sufficient planning. For some planning is a dirty word and "financial planning" means determining how to spend every last dollar they have. The concept of saving is not comprehended. For anyone who lives in such a personal financial environment, it is not surprising that these same people think that running an association is simple, a hobby, or a social club or whatever.

I'll post on real "financial planning" for individuals in the near future. Of course, this is a complete waste of my time because those who know and want to know are already practicing and living a prudent financial plan. The irresponsible won't and don't. As was pointedly stated to me by a board member in 2009 "We don't read your blog." Yes, and there is a lot of intellectual dishonesty out there, wherein otherwise intelligent people pick through the facts to support absurd positions. Anything that doesn't fit is ignored or worse. A lot of people have been burned at the stake to get them out of the way.

Some of our owners complain about every 1% fee increase. They complain about every dollar collected. Yet, they also want the board to spend association money on personal agendas. One would think they would realize that for every $336 this association collects, $1 literally comes from their individual pocket. However, I've concluded their mind set is "For every dollar I provide $335 comes from someone else. So it is to my personal financial advantage that the $336 be spent on me!"

Some owners also think that a 20% collection problem is no big deal, nor are foreclosures. When the board takes a stand to collect, we are "bad" and "wrong" and "antisocial" and "the enemy." I suspect their perspective is based on personal greed. It seems that they hope that if the day comes and they are in arrears that it will be their turn to avoid the hat. Better still, have a compliant and willing board in place. Yet, each and every owner wants a new roof, a good garage, streets that are functional, a good driveway, street lights on, hall and garage lighting, prompt snow removal, clean and new hall carpeting, immediate response when there are icicles or the water goes off or a tree breaks or whatever. Strange,  I don't see anyone saying "No problem, put me in the 20% of our owners, the 67 who get reduced services." Rather, a few take the position "Why didn't I get that" as in "Why wasn't my driveway painted (sic)" or "Why did he or she get new windowsills, or a new roof, or a driveway, etc. etc. etc. instead of ME?" Or, why is "MY lawn not replaced?" But then there are the complaints "Those people walk by here on the lawn every day! How dare they!"  Of course that lawn is part of the common elements. It isn't mine or yours. It is OURS and each and every owner has the right to walk on it.

Anyone who reads the Declarations knows this. But ignorance is bliss, it is said.

These are the same people who live in a PUD, yet tell everyone the City will take care of the water mains and the streets, and our fees are too high. If it's a city problem, then why is the manager there, and why are there board members present? Duh? I suppose it's assumed its because we have nothing better to do with our lives. Meanwhile, the residents speed by, inconvenienced.

Of course, the problems and consequences of foreclosures and delinquencies are simply for the board to deal with and when we do make the hard decisions, we are the loathed enemy. It is no secret that owners who are in the cross hairs of debt and have failed to pay their bills come to HOA meetings with friends to pummel the board. They also attend group meetings with their friends and do the same. Oh yes, holding "owners" to their obligations is bad and wrong. It's no secret some owners think they live in an apartment complex in which they bear no personal responsibility yet expect a nice payback as their condo appreciates. And when they don't achieve that financial appreciation "It is the board's fault."

Apparently some owners want subgroups in the HOA. One where one group of owners (the majority) pay their fees and another in which such fees are "optional." Of course, we all are to be treated equally, payers and non-payers alike. But the 1% take it a step further and expect special treatment; no matter if we've paid our fees or not. After all, we're the "1%" and we are special! The board has little it can do about this, because the Illinois Condominium Act state that all owners are to be treated equally. Because it is possibly litigious to reveal the names of those in arrears, boards sit there like zombies and smile to the rest of the owners while the rotten tomatoes are thrown by the offenders. Meanwhile the deadbeats come to meetings or group events and spread their poison. Of course, the other owners, who aren't restrained by the Condo Act don't bother to ask the uncomfortable questions. And board members take their lumps while they attempt to keep the deadbeats in line.

Some residents are completely unawares of the issues faced with and dealt with by the board and management. Some residents don't want to know. Some are pre-occupied with their personal lives and their personal issues. Some residents and that includes a few previous board members do not and never did understand what it takes to run a "business" which spends $1 million per year and is valued at about $91 million. They prefer to avoid monthly meetings and get their info from the grape vine or via social club meetings. That old expression "ignorance is bliss" is so, so true. "Simply don't bother me with the facts, the details or the issues, please" is the position of too many "owners."

For the simplistic, the issues are always about the board versus all owners. Yes, it is convenient for those with a personal agenda, or a personal grudge to conveniently forget that the board is comprised of owners. They whine and complain and we do the work. Here at BLMH the board is all too frequently the target of rotten tomatoes and treated as serfs and as the enemy. Meanwhile the silent majority sits back and prefers that we deal with it.

Of course, the board of the association also has their personal issues and lives. But we are apparently expected to deal with these only after we provide our free service to the other owners. For the board as fiduciaries, "being of service" is expected to come first! Recently I had the opportunity to tell an owner exactly what I thought of his/her shenanigans and they didn't like it. Yes, calling people on their cr@p isn't nice. Nor is it appreciated. In their view the board is here to make such people "feel good" and do as demanded.

Here are some updates.

1. Our neighbor the College of Dupage is doing everything possible to extricate itself from the "Dam Permitting" process which includes COD's Pond 7 which is a part of the Hoddinott Wildlife Sanctuary. Large portions of the campus were once a "deciduous swamp" and there was a lot of free standing water. The marshes were replaced by lots and lots of asphalt, manicured ponds, walks, greens, buildings and decorative waterfalls. Where does all of the runoff go today? Robert Breuder, the college president says "it's all bypass flows." The dam permitting process is also a part of the study undertaken by the City of Wheaton to reduce flooding in the area. No help at all from COD and the Village of Glen Ellyn is busy partying. Did any of the readers attend this year's Cardboard Boat Regatta on June 28?
2. Wheaton's "Briarcliffe Lakes" study will be completed in September-October 2014. I find it less than clever that the city calls it by this name. All part of the routine obfuscation so typical of attorneys and politicians. 
3. The City of Wheaton, most recently via a council member, persists in attempting to involve the BLMH board in the decision making process of individual owners regarding their fireplaces. I'll post on that in the near future. Yes, Virginia, the lawyers think it is a really good idea to get more lawyers involved! I call this "flushing the hard earned money of the residents and  taxpayers."
4. A few owners, whom I call "the 1%" are also interested in someone else dealing with their fireplace issues. That "someone else" is of course the BLMH board. Our HOA, which isn't an apartment complex doesn't have a superintendent, so the board is the next best thing, isn't it? Apparently that is so for some of our owners. 
5. It wasn't so long ago that "the 1%" at BLMH was telling everyone at BLMH that "we have enough money" and so it was and remains expected that the $1 million in our association reserves is available for personal projects. Never mind the problems with the streets, the other problems with infrastructure (the most recent water main break was on Saturday June 28) and the fact we have an aggressive program to replace roofs before the complete end of life. 
6. Many owners forget this association is approaching 40 years. Yes, those mail boxes, the entrances, the patios, decks and garage floors will last forever with no maintenance. Dream on, Virginia!
7. As pointed out in recent BLMH newsletters (which can be read at BLMH.org) we spent about 41% more on maintenance this winter. That was the direct consequence of severe icing of all kinds and ice dams. I recall the late 1970s when the area went through a similar cycle. For anyone younger than 30 that was before their lifetime. For the elderly that might be so long ago it is a distant memory. These things happen from time to time. I suggested to some complaining owners that they consider moving to San Diego, CA. Of course, there are problems there also, but ice or severe winters is not one of them. 
8. We also are proceeding with a new bridge and walks behind Thames. This replaced a dilapidated one which was boarded up for a brief time. The collapsed patio has been removed but a lack of consensus on the part of the board prevents moving forward with the patio area in 2014. However the new walks and a new bridge have been approved and are under construction. 
9. The resistance of a few owners to improve storage on Salisbury means that equipment and stuff remains on Lakecliffe and Thames. Yes, we could use these areas as the intended parking, improve appearance and we could expand parking by freeing this up. But at present there are no alternatives because the builder didn't provide for this and boards of the previous 35 years have acquiesced to the complaints of a few owners. There appears to be a widespread belief that the easiest and best way to hold fees low is simply by not spending money! Except for "my personal issues" that is. When "I" experience a problem, why the association should spare no effort or expense to resolve it! That is the expectation of owners in a HOA. To quote a couple of owners "What do we get for our fees?" 
10. If we simply addressed the storage problem we could not only improve storage, parking, appearance. We could also improve security for our contractors and snow removal service. Did you know that in last winter equipment was stolen from a nearby surface parking area? Probably not. 
11. Nevertheless, there is a plan to provide additional, secure storage on the property. Of course, some will not be happy with this. But then, that small group I call "the 1%" is never happy. 
12. Our ash trees finally succumbed to that scourge of cheap imported goods which brought with it that insect called "the emerald ash borer." This was possibly complicated by the drought of 2012. The association routinely maintains the trees on the property, and we were holding the EAB at bay. Perhaps a lack of food with the death of nearby untreated trees contributed to this, as the EAB moved to less palatable but healthy, treated trees. The BLMH  trees are considered to be assets and as such are to be maintained with other aspects of the property. Not all owners agree with this, of course and some have expressed that tree maintenance is a waste of money. However, mature, untrimmed trees have a bad habit of shedding large limbs in storms and micro-bursts. These disrupt traffic, fall into lakes and streams or come crashing through buildings. Mature trees are not easy to replace. It remains to be seen how many ash trees will remain on the property by 2016. In the area an estimated 20-30 million ash trees are dead.
13. We have some comedians who are currently impersonating the board. They post signs about "The worst street in America" which they then sign "Your Board [BLMH]" I find this amusing. I would suggest they change their signs to read "The worst association in America." That bears no reflection on the board, but is a reflection on them. What would you consider to be the hallmarks of the worst association in America? Would it be a HOA where residents routinely park illegally? A HOA where residents routinely drive through water main breaks and some even speed up as they do so, splattering board members nearby? Or a HOA where residents never call in a water main break? Or a HOA where owners refuse to purchase the mandated insurance, or don't maintain their personal equipment and when that water heater breaks, flooding other units they say "sue me?" Or a HOA where up to 20% of the owners don't pay their fees on time or regularly, where so few are involved that the board is never filled or when it is it is with the desire and purpose to run special agendas? Is it a HOA where those who are in arrears or foreclosing get together and attack the board on unrelated grounds, such as the condition of the street or rules enforcement, or where they and they friends promote the board as being "a bad board?" Is it a HOA where owners and residents "run their rackets" , and where some promote their own personal lifestyle to the detriment of all others? Or is it a HOA where some promote the HOA as a retirement community?  Then when mom, dad or grandma or grandpa die, the relatives walk away and allow the bank to foreclose and as a consequence the neighbors each pay more in fees to cover the losses of the HOA? Is it a HOA where owners routinely tell the board "You need to do more" about every issue including the college next door, or the weather, while these same owners do nothing, nada, zip? Do we know any HOA's like this? 
14. The contract has been finalized for replacement of the worst section of Lakecliffe. Of course dealing with fireplace concerns of owners is supposed to take precedent according to some of the 1%. That street was not due for replacement until 2021-2022. So what went wrong? More importantly, where is the money going to come from? Anyone who regularly attends our HOA meetings is fully aware as I have spelled it out in detail time and time again. However, most don't attend the meetings and when they do decide to get off the couch they expect an executive summary. Attending meetings and listening to owners during the "Owner Forms" is reminiscent of the movie Groundhog Day. I attend and it's the same questions over, and over and over. Of course, most owners don't attend meetings and most won't. Apparently some don't read the newsletter either. 

That's enough for now. For more info, all G rated see my reports in the association newsletters.

Some Trees and Shrubs Didn't Make It

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

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

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

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

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

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

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

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

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

This number of this bill is SB2664.

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

The Illinois Association or REALTORS (r) is overjoyed!

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

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

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

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

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

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

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

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

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

Think about that!

Clicking will open a  New Window> Text of Illinois SB2664

Electric Rate Experience - Choosing a Supplier

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

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

My Evaluation Approach

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

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

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

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

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

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

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

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

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

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

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

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

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

CUB Website Links

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


Clicking will open a  New Window> CUB Municipal Aggregation List

Electricity Rates Increase Dramatically

It may be that time to change electricity suppliers

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

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

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