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Frequently Asked Questions

FAQ - Assessments FAQ - Miscellaneous FAQ - Assessments

Question: What are assessments and why do we have to pay them?

Answer: Assessments are the monthly payments that owners contribute to the Vanguard Lofts Association, comprised of all owners. Assessments pay for the maintenance, upgrading, and general running of the building and its affairs. Assessments are authorized by the Illinois Condominium Property Act (ICPA), available here.

Question: Why do some owners pay more for assessments than others?

Answer: Each owner pays a proportional share determined by the percentage of ownership in the building, based on the original value of the unit when the building was converted to lofts in the late 1990s. Ownership shares range from .068 to 1.46 percent, depending on the original value of the unit.

Question: What are assessments used for and how do we know where the money goes?

Answer: Assessments are used to pay for basic services (janitorial, landscaping, snow removal), management, attorney, and related fees, electricity and heat, hot water, and other things that keep the building running. The specific line items for anticipated expenditures are determined by the Board and placed in the budget.

Question: Who determines how much assessments are?

Answer: In early fall, the Board assesses the previous year's expenditures and lays out probable expenses for the coming year. The expenses include both the necessary funding for static items, and also includes anticipated expenses for capital improvements or other expenses that are likely to occur.

Question: How does the Board figure out what "might" occur?

Answer: In 2001, First Properties commissioned a "Reserve Study," a report that estimates the wear and tear on the building and when things such as balconies, roofs, parking surfaces, and other elements will likely need major renovation or replacing. See the Reserve Study. In addition, the ICPA requires us to have an adequate reserve to cover unanticipated expenses.

Question: What's the difference between monthly assessments and special assessments?

Answer: A special assessment is a fee levied to all owners to pay for emergency repairs or major capital improvements to common areas that were not or could not have been anticipated in advance. At Vanguard, special assessments are rare, and occur every few years when a major expenditure is required. Examples at Vanguard include the major expenditure in 2004 for a city-mandate facade inspection and repair (about $800,000), and a new motor for the front elevator (about $50,000), also in 2004. Unanticipated problems may emerge that exceed the Association's reserve funds, and this is why Associations try to have adequate reserves on hand.

Question: Is the cost of new balconies that some owners must pay a special assessment?

Answer: No. Special assessments are distributed among all owners based on their share of ownership in the building. Because not everbody has balconies,those without balconies will not have any replaced. Balconies are a limited common element, and there are safety issues raised as balconies age. Therefore, the balconies must be replaced, and it is done at the same time to assure uniformity and eliminate potential liability issues at the same time.

Question: Why can't we use reserves to keep assessments from increasing each year?

Answer: The ICPA requires Associations to maintain reserves. This reduces the frequency and amount of special assessments. Although one school of thought argues that it's better to keep assessments low and use special assessments more often, most attorneys, real estate professionals, and property managers (as well as most associaton boards) feel it's better to build up reserves gradually to reduce the pain of special assessments, which usually come suddenly.

Question: What happens if an owner doesn't pay assessments?

Answer: The Vanguard bylaws and rules specify that failure to pay assessments can result in a fine. Assessments cannot be withheld, and they are a collective asset shared by us all to keep the building running. The ICPA specifies that owners cannot withhold assessments, and failure to pay can ultimately led to legal action.

Question: Will assessments increase every year?

Answer: Assessments generally increase to keep up with the costs of inflation. Ideally, with proper planning, assessment increases should not exceed the inflation rate. However, at Vanguard, there were several years of no increases, and there were no major capital improvements done on the building, other than those requiring immediate repair such as the front elevator motor or facade remediation, until the last two years. This is why assessments increased as they did in the last two years.

Question: Will assessments ever decrease?

Answer: Assessments are pegged to the economy and costs of maintenance. This makes it unlikely that assessments will decrease. The trick is to minimize increases.

Question: How do assessments affect us if we sell our unit?

Answer: Low assessments, while a seeming selling point, must be balanced against an association's reserves and the past special assessments. Low assessments are no bargain if there is a history of special assessments or anticipated future special assessments. Also, because assessments are used for upkeep of the building, they contribute to the over-all value of individual units by creating a healthy infrastructure.

Question: Why are my assessments higher than at other lofts?

Answer: Comparisons between buildings can be misleading. The Vanguard assessments are in line with those of other comparable buildings. Sometimes, we see other buildings with doormen, health clubs, and other amenties. But, health clubs usually are not included with assessments and require a membership fee, and doormen are usually in larger building than ours. As labor and other costs rise with amenities, assessments will also rise accordingly. Also, Vanguard assessments pay for owners' hot water, the recent security and other upgrades, and items required by law, which leaves a small portion open for scrutiny. The question to ask is: In looking at the budget, what line items should be cut? We should also rememer that: a) newer buildings tend to have lower assessments in the first few years until the budget requires significant increases; and b) Some associations rely on special assessments rather than steady building of reserves.

Question: Can owners have input into drawing up a budget?

Answer: Yes. Although association boards, by law, are ultimately responsible for the determining the annual budget, Vanguard has a history of open decision making. Owners can share their input with Board members individually, by email, or by contacting individual Board members.

Question: What if I have a question that isn't listed here?

Answer: If if you questions that we can add to the FAQ list, send an email to: condoboard@1250westvanburen.com and we'll try to answer it. If you questions that we can add to the FAQ list, contact the Condo Board at condoboard@1250westvanburen.com.

FAQ - Miscellaneous

Question: What are the rules for using visitor parking?

Answer: Parking in the service drive behind the building is limited to service vehicles and guest parking. Long term parking arrangments must be coordinated with the Propery Managment office. Vehicles in violation of the guest parking rules will be towed at the owerns expense.

Question: Why can't I take my bike through the front door?

Answer: Bikes are not allowed in the front vestibule (corner of Van Buren and Throop). All residents and guests must use the freight entrance at the rear of the building when moving bikes in and/or out of the building.

Question: How do I report a rule violation?

Answer: Contact the Property Management and Board of Directors with a formal written complaint. Document the date, time, and person involved with the violation.

Question: Why were my boxes removed from the storage room?

Answer: All items in the storage room must be kept inside a storage locker. Miscellaneous items left unattended in the storage room will be considered abandoned and will be permanently removed without notification.

Question: Why does the property management company charge me for a paid assessment letter?

Answer: As the cost of processing sales is variable building by building (some may have no sales in a year, others may have several) the property management has no way of working that into the regular/annual management fee. Owners that are not currently selling their units do not have any interest in paying a higher monthly assessment fee to supplement the costs involved in processing a closing. While the property management company ties the fee to the paid assessment letter, the charge covers all of the paperwork that is required to facilitate the sale. With the recent changes in the banking industry, the amount of paperwork has increased dramatically.