Management Company

Dear Neighbors,

The Association is facing many challenges that cannot be managed by the current board of directors. We have reached a point that we need professional help by acquiring the services of a management company.

As owners are trying to sell their units or refinance, mortgage companies are asking for details that this board has no resources or the know-how to produce. At the same time there are several owners that are very late on their assessments. In the past we had hired an attorney to place liens, file lawsuits and perform collection duties. This practice is no longer sustainable and this board cannot play the role of collector.

There continue to be theft of courier and US Mail packages by someone and the Association needs to have surveillance video to monitor common elements. We can no longer police the building.

Our insurance has gone through the roof and we must raise assessments to pay for our bills. The building needs care and constant attention and the Board is at no position to do all that is needed to handle the building needs.

It is my intention to hire Cagan Managemenet of Skokie Illinois and will dissolve the current Board of Directors which has served without an election since April 16, 2008. As many of you know, the Association had elected to hire Cagan Management on April 16, 2008 but the Board decided to hold off since at the time the workload was still manageable. This is no longer the case and with the economic slow down and mortgage market collapse the Association needs to run in a manner that we at the Board do not know how to execute.

This board is unable to deal with the many issues that are necessary to keep the Association in good standing. Summarizing the pressing issues and concerns:

• Over $9,000 in past-due assessments receivables. Those of you that have not paid you must pay immediately. The situation is getting out of hand and the Association will do whatever it takes to protect its interests.
• Huge insurance costs. Insurance cost is over $12,400 this year and it will continue going up.
• State Farm is requiring that we do certain maintenance work on the building or will drop us.
• There are several construction projects that must be performed. For example, South balconies, foyer concrete, rotting wood surfaces through out building.
• Lenders are requiring us to have detailed records and expertise that only professional management offices can produce. We do not have the capacity to do what is needed to stay in good standing.
• There are concerns about theft of packages and the building needs to be monitored.

The cost of Cagan is $615/month. The Association will be able to handle this cost for the 1st year and the Management company will be able to determine assessment increases for the rest of the year or next year. Assessments were increased in April of 2008 to cover the costs of Cagan.

Cagan Management has been put on notice. It is my intention to hire them within March of 2011. Immediately after Cagan is hired I will dissolve the board, will assign full responsibility to Cagan and call for new elections. If any owner has an objection, he/she is welcome to take over the day to day management of the building and run the board, call for elections now and take over cash management responsibilities.

Thanks.

Niko Spyridonos