Neumann Homes Info
Neumann Homes officially declared Chapter 11 bankruptcy on October 31, 2007. To date, the Village of Antioch is closely monitoring the situation and has hired representation to assist with the bankruptcy procedures and any other issues that may relate to this circumstance.
If you have a specific question regarding the status of the Neumann Homes bankruptcy, please email your question to the Village. You will not receive a direct response to your email question. A compilation of Frequently Asked Questions, as they are developed, will be posted on the village website @
Frequently Asked Questions
1. We understand that Neumann Homes was required to provide to the Village money in the form of bonds to assure completion of the development and/or the amenities. How much of this money is available now for use by the Village in the Clublands community? The Village has sureties in place for the completion of public infrastructure. There are no sureties in place for private amenities. The process to utilize the surety for completion is lengthy and complicated due to the bankruptcy. If the site improvements are within the scope of the bonds, the sureties would be obligated to complete the improvements at their own cost and expense, up to the limits of the bonds.
2. How does the Village administration envision using that money in Clublands? The money provided by sureties or other sources will be used for public infrastructure completion.
3. How does the Village plan to complete the existing streets and sidewalks for dedication to the Village? In the event the surety does not complete the public improvements so that the Village must complete the streets and sidewalks, the Village will contract this work.
4. Will the Village take action to repair street lighting fixtures that are not working? Street lighting fixtures are the property of Commonwealth Edison. If there are problems with your street lights, please report it on ComEd's website at: https://www.exeloncorp.com/ComEd/logiccode/Residential/ComEd_StreetLight.asp, You may also call contact ComEd at 800-334-7661, or the Village of Antioch at 847-395-1000.
5. What steps is the Village taking to protect the initial construction phase of the clubhouse and pools? The Village's attorneys are actively seeking the responsible party to protect the clubhouse and pools.
6. Can the Village assure that any builder who purchases the Clublands development will be required to continue building the community as originally planned, including amenities that were promised to current homeowners? Clublands of Antioch is a Master Planned Community, approved and controlled by a Planned Unit Development. It would be the Village's position to enforce the PUD and any successor that assumes the role of developer must abide by the PUD. Likewise, for a successor developer to receive the benefit of the Village's promises it would need to comply with the PUD.
7. Please explain the reason for Special Service Area Tax and how that money has been used. The SSA Tax provides for the servicing of bonds issued to construct public improvements. The public improvements that have been constructed were paid for by bond proceeds.
8. Based on Neumann Homes' bankruptcy, what impact will this have on the SSA funding? So long as the SSA taxes are collected from Lake County, the bonds will be properly serviced. The taxes collected from year to year are not and may not be used to pay for new improvements. The primary concern arising from the Neumann bankruptcy currently affecting the SSA's, relates to the payment of real estate taxes by Neumann or some other entity on behalf of Neumann. The bondholders may have other concerns pertaining to the Neumann bankruptcy which Antioch will address as they arise.
9. May the SSA payments required from each homeowner increase or decrease? The SSA payments may increase or decrease within agreed upon limits published in the ordinance establishing the SSA.
10. How much of this money has been used, and how much money may remain to be used for Clublands? Nearly all of the SSA proceeds have been utilized. The Village is looking into the possibility of accessing any remaining funds.
11. If a new developer takes over Clublands, will that money be available for their use? That determination is yet to be made.
12. If another developer purchases the Clublands property from Neumann, can they choose not to require SSA fees from the buyers? How would that affect the homeowners who have paid to date? At the developer's option, they could elect to prepay the remaining balance of the SSA taxes attributable to either those parcels which it still owns or all of the properties subject to the tax. Likewise, any homeowner may prepay the remaining balance of the SSA taxes attributable to their property. If you are interested in doing so please call the Village Treasurer.
13. How does the Village plan to address the issue of homes currently under construction, but delayed because of this bankruptcy? At this time, these homes have been "red tagged" by the Building Department due to potential safety hazards. Cole Taylor Bank has been given permission by the Bankruptcy Court to complete the partially constructed homes in Clublands. Our attorneys for Neumann Homes are discussing this same issue with the primary lender on NeuHaven.
14. Is there any recourse or relief for homeowners who recently purchased homes, and now find that Neumann Homes did not pay the previous year's property taxes? Please contact the Tax Assessor's office at 847-395-1545. You may also refer to your closing documents and contact your Title company and/or attorney.
15. In that the Neumann Homes bankruptcy will result in lower property values for Clublands homes, should this be reflected in lower property assessments and taxes? Please contact the Tax Assessor's office at 847-395-1545.
16. What do the homeowners have to do regarding the unpaid contractors that are putting liens on the homes? Homeowners should contact their title insurance companies for further guidance.
17. What is the zoning of the clubhouse property? The property is zoned R-1, PUD. Is it able to be changed to residential zoning? It is currently zoned residential, but controlled by the PUD.
18. What is the Village doing to ensure the safety of the unfinished homes? At this time, these homes have been "red tagged" by the Building Department due to potential safety hazards. Access to these homes is restricted.
19. What about liabilities for any possible injuries incurred in unfinished homes or vacant lots? The party in ownership of the property in question shall ultimately be responsible for any liabilities.
20. Can the Better Business Bureau take any action? You may contact the Better Business Bureau at 312-832-0500.
21. How much property is left undeveloped that is still owned by Neumann Homes? Of the 1400 homes scheduled for construction by Neumann Homes, approximately half have been completed.
22. Who will handle homeowner warranty repairs? Please refer to your contract with Neumann Homes.
23. What will happen to the 29 acres set aside for a future school location? The school district owns this property. The bankruptcy will not impact school property.
24. What will happen to the 26 acres commercial property on the corner of Hwy. 173 and Savage Road. It is believed that this property is not owned by Neumann Homes, and will not be affected.
25. Would there be support for the Lake County Forest Preserve's purchase of some of the undeveloped Clublands property? Much of the property is already adjoining existing Forest Preserve borders. The Forest Preserve District must make that decision and then negotiate with the current owner of that property.
26. Who will provide the 19 year structural warranty on Clublands homes? Please refer to your purchase contract.
27. What happened to the $500 that we paid at closing for the clubhouse? The Village was not made aware of the closing details. The bankruptcy schedules filed by Neumann Homes indicate a special account for funds relating to the clubhouse. We advised the management company for Clublands of that fact. Any further investigation should be done by the Home Owners' Association.
28. Has Neumann Homes made any effort to communicate with their communities or residents? The Village is unaware of any direct communication between Neumann Homes and any residents to address individual questions or problems. Attorneys for Antioch have been in communication with attorneys for Neumann Homes on legal issues relating to bankruptcy proceedings.
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