Summary
The formal management agreement between the Prestonfield HOA and Association Partners, Inc. (API). The agreement is dated September 1, 2020, with a term commencing November 1, 2020 and ending October 31, 2023, self-renewing for successive 3-year terms. This document was circulated to the Board as a confidential proposal for evaluation; signature fields in this copy are blank (James Kahn named as API President in the signature block). The actual execution date may differ from the stated September 1, 2020 date.
The September 1, 2020 agreement date predates PSI’s termination letter by 28 days (September 29, 2020) and API’s contract start date (November 1, 2020) precedes PSI’s effective end date (November 30, 2020) by 30 days — indicating a planned overlap transition period and suggesting the Board had already engaged API before PSI terminated.
Key Provisions
- Agreement date: September 1, 2020
- Term: November 1, 2020 – October 31, 2023; self-renewing for 3-year terms
- Unit count stated: 216 units (as of September 2020)
- API President: James Kahn (named in signature block)
- Year 1 fee: $12,960/year ($1,080/month); first payment due upon execution
- Annual escalation: 3.5% per year on each anniversary, unless otherwise mutually agreed in the annual budget
- Transition fee: One-time fee; amount left blank ($xx.00) in this copy
- Expenditure limit: API may not incur obligations exceeding $1,500 without Board consent (except emergencies)
- Without-cause termination: Either party may terminate on 90 days written notice
- For-cause termination: 30-day cure period; 30-day cancellation notice if uncured
- HOA termination without cause: Results in a termination fee equal to all remaining monthly installments of the current term
- Collection referral threshold: API authorized to refer accounts past due by 60 days to HOA attorney
- Collection admin fee: $150 per account forwarded to attorney (charged back to delinquent owner)
- ARC request fee: $25 per request, charged to the requesting owner
- Violation letter fee: $50 per violation fine letter; charged to unit owner
- Meeting attendance: Up to 4 scheduled Board meetings per year (Monday-Thursday evening, max 2 hours each); additional meetings billed at $125/hour
- Monthly inspection: API to conduct at least one full common area inspection per month
- API address: 25W560 Geneva Road, Suite 16, Carol Stream, IL 60188
Topics Covered
vendor-contracts, assessment-collection-policy, alterations-and-additions-process, communication-process, assessment-structure
Notable Details
- The 90-day without-cause termination clause (Section 2.3) applies to both parties. PSI’s early exit from their contract used a “Paragraph 12” provision — a different mechanism than this API agreement’s structure.
- The 3.5% annual escalation clause explains the documented API fee trajectory: $12,960 (2020-21) escalating each November 1 thereafter, subject to mutual agreement otherwise.
- The agreement explicitly states 216 units — a new data point in the ongoing 215/216/217 discrepancy. The Declaration uses 217 Lots; budget math implies 215; this agreement states 216.
- API address listed as “Suite 16” — the wiki previously corrected this designation to “Box 16” based on a cover letter from the Year End Report 2025. The original contract uses “Suite 16.” Both may be in use, or one may be a clerical variant.
- The transition fee amount ($xx.00) was left blank in the circulated copy. The actual amount paid is not confirmed in any ingested source.
- Exhibit B closing/refinancing fees include a $75 transfer fee payable at closing — consistent with the transfer fee entries appearing in AR aging records.