In the early 1970s Pat Newman joined angry Barrington area residents who were picketing the construction of a new condominium community. They lost, and Lake Barrington Shores-a 1,300-unit development with lake and forest preserve-was built.
A few years later Newman and his wife, Virginia, decided to downsize from their large country-club home. Ironically, their real estate broker steered them toward Lake Barrington Shores. They bought and are very pleased they did.
“All the bad things that had been predicted didn’t happen,” says Newman, who is president of one of the community’s 13 homeowner associations. “Major traffic jams didn’t occur. The overload of schools didn’t happen. Now that we’re here, we like everything.”
Among his likes are the extensive landscaping, a responsive management and the community’s volunteer spirit.
Newman isn’t the only one who thinks Lake Barrington Shores is a great place to live. The master association is the recipient of one of the national 1994 Community Association of the Year Awards from the Community Associations Institute. Headquartered in Alexandria, Va., the non-profit educational and advocacy organization gives the award for overall excellence in four size categories each year. Lake Barrington Shores, which was selected from 43 state finalists across the country, won in the very large (1,000 or more units) category.
Across the country there are only four contest winners, but there are many fine condominium and townhouse communities in the Chicago area. If you’re in the market, how do you know which are the best ones? We asked a panel of real estate professionals who specialize in communal living that question. From their respective viewpoints we gleaned several hallmarks you should be looking for:
– An attractive appearance, interior and exterior. Healthy landscaping, freshly sealcoated parking lots, updated carpeting and new paint are indications the association cares about the property and is willing to spend the money necessary to keep it in tip-top condition. Visit the property at different times of the day and week and note whether parking and trash disposal facilities appear adequate.
“What you see is probably more important than what you read,” says attorney Steven P. Bloomberg of Moss and Bloomberg Ltd. in Bolingbrook.
“Cleanliness is the most important thing,” says Brenda Tabak, a broker with Baird & Warner Real Estate, Lincoln Park. “If the lobby is neat and the building has been painted recently-that makes the first impression.” The not-so-public areas, such as storage rooms and stairways, should also be free of dirt and debris, she adds.
A program of scheduled maintenance is a sign the property is being properly attended, says Vincent R. Innocenti, president of Erickson Management Co. in Oak Lawn. “We have one complex of 20 buildings. Every year five are painted inside and five are painted outside.”
Kathie Preuss, a property manager for Jones and Jones Inc., Lisle, believes landscaped entrances are a plus. “They should be in excellent shape and very eye-appealing. A lot of boards don’t want to put money into landscaping, but that’s the entrance to your home.”
– Financial soundness. The Illinois Condominium Property Act gives prospective buyers the right to request the association’s declaration, bylaws and a copy of the operating budget. Many buyers, however, don’t know they can get these documents (usually for a small fee) or don’t bother. Those who do discover pages and pages of fine print, much of which makes little sense. In addition, the law says an association must set aside “reasonable reserves” but fails to define the adjective.
At the very least, determine whether the association has a reserve fund or not, Innocenti says. “If there is no reserve fund know that anytime something major comes up you will be faced with going into your pocket for a healthy sum.”
Special assessments-or, rather, the lack of them-are also revealing, he says. Frequent levies suggest the association is not handling its money correctly or may not be assessing high enough to meet its obligations.
Indications of future planning should be in place, Bloomberg says. “Questions you should ask (include): Is there a working budget that is disseminated and discussed at an open meeting? Has the board contracted with an architectural engineer to do a cost-reserve study? Are there adequate reserves to meet future capital expenditures?” A cost-reserve study is an analysis of the mechanical systems to determine a schedule for and cost of their replacement.
– A sense of community. Arnie Snow of J.S. James & Co. in Chicago is the property manager at Lake Barrington Shores. He attributes the community’s award to its large force of volunteers. About 15 percent of the 2,500 or so residents serve on boards and committees.
“Everyone works together, contributing their knowledge and efforts,” he says. “That holds down the number of paid personnel and salaried employees they need.”
Resident Newman agrees that the volunteers are the community’s strong suit. “Those people are very dedicated and unselfish with their time and efforts. Very few people I’ve been associated with think of themselves and their unit first as opposed to what’s best for the complex.”
Snow recommends prospective buyers do some people-watching. Note whether residents are making use of the amenities, chatting with neighbors or greeting the doorman by name.
– The community or building is in demand. A sales history, easily provided by your real estate broker, offers lots of clues.
“Look at resale values,” advises Snow. “Steady increases tell you the community is well-established, well-maintained, well-budgeted and financed and that (a purchase) wouldn’t be an investment you need to worry about losing on.”
A record of brisk sales is a hallmark for Baird & Warner’s Tabak. “You can have one building (where a condo) takes six months to sell and another sells in under 30 days. Your better buildings will sell quicker unless the unit is not well-maintained. Then the price will reflect it. People then buy in and redo (the unit) because of the building’s reputation.”
– Association control over the amenities and common elements. Attorney Bloomberg looks for association-run parking lots, lobbies and other public areas. “I think it is better when parking is run by the board. Usually the cost is (determined) on a not-for-profit basis. Whatever repairs are necessary are usually included in the cost-reserve study. If a commercial owner is running the garage space, repairs may be deferred because the incentive to do them isn’t there. A lobby might be owned and operated by someone else and you can get into decorating and maintenance (conflicts).”
Bloomberg says he does not mean to imply a board should not hire others to carry out their wishes. In fact, he encourages professional property management. “You don’t have to micro-manage. I’m suggesting the more areas under control of the association, the better off. You’re not subject to decisions made by third parties.”
Although Lake Barrington Shores is one of the largest condominium communities in the country, big does not always mean best. Jones and Jones’ Preuss manages another contest winner-the 142-unit Elk Grove Estates Townhouse II homeowners association. The community was rated this year’s top association, small category, in the state competition.
What makes it a champ? “It is an association that has followed its declaration, covenants and by-laws exactly and never deviated from them,” she says. “All maintenance is planned according to a timetable and the proposals for the work are secured in time to do next year’s budget. That’s their strong suit-they run the association as a business.”
