CAI-GRIE’s mission is to advance the community association industry through positive image, professionalism, advocacy, education and networking.
connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
ISSUE TWO 2018
Volunteerism
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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
www.cai-grie.org
OFFICERS OFFICERS Robert Serdoz.............................................................................. President Elite Pest Management, Inc. Adam Armit.........................................................................President-Elect Monarch Landscape Companies George Gallanes, CMCA..................................................... Vice-President Sunnymead Ranch PCA Bob Harvey, CMCA, AMS, PCAM............................................... Secretary Associa-PCM Phil Hakopian, CIRMS..................................................................Treasurer Cornerstone Commercial & Personal Insurance Services, Inc. BOARD DIRECTORS Tom Freeley..................................................Packard Management Group Jackie Fromdahl.....................................................Painting Unlimited, Inc. Brian Henry.........................................................................Park West, Inc. Valerie Hernandez...............................................Villa Park Landscape, Inc. Pat King..............................................................Solera Oak Valley Greens Robert Riddick, CMCA......................................... Sunnymead Ranch PCA Eric Zarr, CMCA, AMS............................... FirstService Residential, AAMC
CHAPTER EXECUTIVE DIRECTOR
Table of Contents Features 4 Volunteerism
22 He Said, She Said…We Did?
By Eric M. Zarr, CMCA, AMS
By Kelly G. Richardson, Esq., CCAL
8 Member Spotlight Michelle Howard, CMCA, AMS, PCAM
Departments
10 Running Efficient & Effective Board Meetings
9 President’s Message
By Doreen Murray, CCAM
12 Out with the Old and In with the New By Betty Roth, CMCA, AMS, LSM, PCAM
DJ Conlon, CMCA
16 A Newbie’s Visit to Sacramento
MEMBER RELATIONS COORDINATOR
By Don E. Smith
By Robert Serdoz
18 Editor’s Link By Brittany A. Ketchum, Esq.
14 A Country Faire Photos 27 Golf Tournament Photos
Ginny Aronson-Hoke ADMINISTRATIVE ASSISTANT Elda Pfitzinger-Thomas EDITOR IN CHIEF Brittany Ketchum, Esq...................................................Beaumont Tashjian
19 SB 721: New Inspection Requirements for Exterior Elevated Components By Dylan Grimes, Esq.
PUBLICATIONS COMMITTEE Michelle Howard, CMCA, AMS, PCAM................... PowerStone Property Management Kevin Leonard, RS...............................................Association Reserves, Inc. Gina Roldan.......................................................... ProTec Building Services DESIGN & PRODUCTION Kristine Gaitan....................Rey Advertising & Design/The Creative Dept.
All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Connect or the Community Associations Institute–Greater Inland Empire Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney. Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI–GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Community Associations Institute of Greater Inland Empire Chapter.”
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Keystone Pacific Property Management, Inc.....25
Beaumont Gitlin Tashjian...........................17
Kriger Law Firm.........................................21
Berg Insurance Agency, Inc.......................24
Mutual of Omaha Bank............................20
Elias Bros. Contractors, Inc..........................9
NPG – Nelson Paving..................................6
Fiore Racobs & Powers APLC...................25
ProTec Building Services..............................9
FirstService Residential, AAMC.................13
Steven G. Segal Insurance Agency, Inc.....21
Copyright © 1998–2018 CAI-Greater Inland Empire Chapter. Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter 5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / fax (951) 848-9268 info@cai-grie.org
The Greater Inland Empire Chapter of CAI hosts educational, business and social events that provide the Chapter’s Business Partners various opportunities to promote their companies’ products and services to Community Association owners and managers serving the Community Association Industry. It is expected that all participants in Chapter events – whether they be educational, business or social – will conduct themselves in a professional manner representative of their business or service organization so as not to detract from the experience of others seeking to benefit from their membership in the Chapter. CONNECT WITH GRIE • ISSUE TWO 2018
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Volunteerism A volunteer is defined as “a person who voluntarily offers himself or herself for a service or undertaking” and “a person who performs a service willingly and without pay.” Volunteerism is further defined as “the policy or practice of volunteering one’s time or talents for charitable, educational, or other worthwhile activities, especially in one’s community.”
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BY ERIC M. ZARR, CMCA, AMS
W
e encounter volunteers almost every day when we speak with members of a board of directors, or even when we interact with CAI’s Greater Inland Empire Chapter committees. So how do we shape or take volunteers to help create a policy or practice of volunteerism? A quick disclaimer to the term volunteer for this article. There are some (obvious) differences between volunteers that serve on a board of directors to a volunteer that is on a committee. A committee advises the board, whereas the board makes decisions based on what has been advised. The items to be discussed further in this article can be used interchangeably between different volunteers. Finding volunteers to help and serve their community can be almost a full-time job in itself. A key part is to build relationships with homeowners prior to them volunteering. If Mr. Smith calls every week regarding landscaping that he sees is sub-par, perhaps he could be a keen eye for an opening on the landscaping committee. Do you see Ms. Jones always stopping people to talk to them with her normal, friendly disposition? Then maybe she would be great on an ambassador or welcome committee. Picture yourself as a talent scout for the community and try to find people to fill the positions that are needed. Larger, age-qualified communities can have committee recruitment drives. Think job fair where homeowners can come in where all the committees have set up tables and staffed them with committee members to help recruit new members. Now that a homeowner has volunteered, what do they do? Guidelines or “job descriptions” will help that volunteer (they can also help recruit a volunteer so they know what they are signing up for!). An obvious example of a committee or board that cannot function well is if everyone is taking minutes, or if all are acting as the president or
chair. The different committees should have tasks assigned to different volunteers. A communications committee could have a webmaster, a photographer, a proofreader, etc. With each position, clear responsibilities should be established and even the time commitment that the position would have for the month. A board of directors should also have the same so as to distribute the workload evenly between the directors. Guidelines also help set expectations to hold volunteers accountable. Accountable not only to the tasks assigned, but also to other volunteers. It is hard enough to find volunteers, one of the worst things that can happen is they become disillusioned with the community and the work they are doing. And volunteers are definitely working! If the volunteer photographer did not show up to the casino night that the association hosted, then someone else will have to cover that person’s job for the night. If the volunteer photographer had an emergency, then all could be forgiven. If the volunteer photographer won tickets to the last playoff game and thereby does not fulfill the task they agreed to fulfill, that can cause discord between volunteers. When Volunteer A sees that Volunteer B does not do the work that Volunteer B said they would do, Volunteer A might quit volunteering! So how does Volunteer B in the situation above be held accountable? The other volunteers need to have a discussion with that volunteer. The leader of the group, whether a committee chair or board president, should have the discussion with the volunteer that is not fulfilling their obligations. If they do not have the time anymore to be able to commit or there could be some other barrier they might not have wanted to say in front of the group. A harder discussion will be when the leader of the group is no longer living up to expectations. This is another instance where having the guidelines and job descriptions can help immensely. The subordinate members of the group can
Picture yourself as a talent scout for
the community and try to find people
to fill the positions that are needed.
Continued on page 6
CONNECT WITH GRIE • ISSUE TWO 2018
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Volunteerism Continued from page 5 clearly and unemotionally point out where the leader is not fulfilling their obligation of leadership. For instance, if the leader is tasked with setting the agenda for meetings but keeps delegating that to others – that can be brought up that they are not fulfilling their leadership obligation in a factual way. The volunteer might be amenable to switching positions or job descriptions within the group. If the volunteer refuses to “get with the program,” then more drastic actions will be necessary for the good of the group as a whole which could include a public censure, or removal from their position totally. As all volunteers are freely giving of their time, do not forget to thank them for what they are doing! Thank yous can range from a handwritten card to a simple “Good job, that was a tough meeting” at the end of a tough meeting. Most people want to be recognized in some way for what they have done, and while it will take an investment of time the dividends are immense. Also, try to make the job as much fun as possible. If a volunteer can get a slow-moving party to hop, then they could be awarded the much coveted (and made up) “Party Starter” award for the night. It does not need to be expensive, and you should have invested in your relationship with that volunteer to know if that will be received well and with the intention behind it or not.
Volunteers are the lifeblood of community associations. High functioning communities have high functioning volunteers and those that help and assist them. It can take an investment of your time to find the right volunteer for the needs of your community. It will definitely take an investment of your time to keep that volunteer with clear guidelines, expectations, and ramifications if they do not meet those. Keep thanking them and investing in them. Even though their salary of zero dollars doubles every year, it still is not sufficient for the amount of work that they do and especially not when the flak starts to be fired in their direction. That investment and relationship will reap great rewards with a happy and invested volunteer in their community’s well-being.
Eric Zarr, CMCA, AMS, is the General Manager for K. Hovnanian’s Four Seasons at Beaumont Community Association, a 55+ community that currently has 1,680 homes. He has been with FirstService Residential for six years and onsite for four.
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CONNECT WITH GRIE • ISSUE TWO 2018
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Member Spotlight:
Michelle Howard, CMCA, AMS, PCAM The Connect Magazine Committee welcomes back member, Michelle Howard, CMCA, AMS, PCAM. Ms. Howard serves as General Manager of Bear Creek Master Association. She also serves on the Legislative Support Committee (LSC). How did you become involved with CAI? When did you become a member?
the Legislative Day at the Capitol trip next year. It is a very educational, informative and a worthwhile experience. What is your favorite thing about CAI? It’s an organization that is full of resources for managers. I find that I am online multiple times a month ordering a publication (or two), printing article information that will help educate my Board members and accessing the GRIE website for upcoming events.
I have been a member since 2001. I became a volunteer in 2007 when I started attending chapter functions with my company/co-workers. Within time, I filled a spot on the GRIE Board of Directors and became the Liaison for LAC.
What gets you most excited about CAI’s future as a volunteer?
How has your membership with CAI benefited you?
CAI will grow throughout the world and continue revolutionizing the community association industry.
The relationships I have built with fellow managers, volunteer leaders and business partners has benefited me in so many ways. The support from these individuals and professionals gives me the ability to contact them for information and guidance when I need it for my community. In turn, I do the same for them when they need support.
How would you describe the environment with the CAIGRIE Chapter as a volunteer?
What would you like to tell our chapter members about volunteering on our committees? Volunteering with your local chapter only makes the chapter stronger. There are so many committees involved and it is difficult for one person to handle the tasks that need to be accomplished. The committees meet once a month and some meet by phone. If you have some time to spare, sign up for a committee! What do you look forward to each year as a volunteer member? There are many things I look forward to. My most favorite is the awards that are given out at the end of the year to those who really deserve the recognition. What do you enjoy most about volunteering for CAI? Going to Sacramento to lobby with Senators and Assembly members regarding HOA legislation. I cannot say enough on how important this is for our industry. I encourage members to attend
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Very supportive and FUN! The GRIE Chapter staff are always going above and beyond to help the members. The hard work of each committee shows how much our volunteers value the organization. When you attend an event or an education course, everything is always well organized and those in charge are always working hard to make that event or class a success.
PRESIDENT’S MESSAGE Hello and welcome to summer!! Well “May gray” and “June gloom” as they say. I happen to like change and have enjoyed all the seasons such as they are. Something about a cool spring morning, maybe a bit of fog to make the drive into work a bit more challenging, or a light mist to wash the road grime all over your perfectly clean Robert Serdoz is the car. Don’t worry, the hot dry summer owner of Elite Pest months will be here before you know Management, Inc. and 2018 CAI-GRIE it and we’ll all be wishing it was cooler President. again. Funny how that works. The good news is that whether you’re a winter person or summer person, we all have something to look forward to. So far so good. I can’t believe that we’re halfway through year already!! We had another series of successful events as most of you already know. The Educational EXPO Experiences are doing well and getting better each time we have one. There have been a few adjustments along the way, but the overall success of those events has been just great!! By the time you read this, we will have just had another one at the Pachanga Resort. The facility is just amazing and it was wonderful to see you all there having a great time at our Summer Beach Party! Remember, we only have one more scheduled this year
on August 14 at the DoubleTree-Ontario, so get that on your calendar. The Country Faire was a total success for all those who came out to play. This is the kind of event that’s just about having a good time and what a good time we had. Live music, great food, crafts and the best of all, good friends to share it with. Where else can you have a beer in one hand and throw tomahawks in the other? Only in the IE! Well, truth be told, they made us put the beer down first, but other than that it was a lot of fun. I’m sure they’re concerned about the safety of the event and didn’t want us to spill any of the beer. This was quite the fun-filled evening so I can’t wait to do that one again. Even the tomahawks!! The National Conference was a huge success as many of you probably know was held at the Washington DC Marriott, Wardman Park. The event was well-attended and it was wonderful to so see so many of us being recognized on stage for our accomplishments – ie., Bob Harvey being recognized as our newest PCAM! What an inspirational location to have an event like this. Having never been in Washington DC before, all I can say is WOW!! If you’ve never been to our Nation’s Capitol – you need to go. I can assure you that you won’t be disappointed!!! Okay well that’s it for now and enjoy the day and hope to see you soon!!
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Running Efficient and Effective Board Meetings The manager and board of directors’ relationship sets the tone for the success of the association. Running an efficient board meeting is vital to the growth and development of any board. As a manager you want to do everything you can to help your board of directors to succeed.
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T
here are several key factors in running efficient and effective meetings for your communities. Making sure your agendas arrive to the board of directors early and with time limits for topics can ensure that you stay on task. Making sure you have complete and accurate minutes is equally important. Last minute agendas and incomplete minutes, and other seemingly minor inconveniences can add up to a demoralized and disengaged board of directors. Avoid the temptation to cover everything in one meeting, too many agenda items can lead to feeling overwhelmed. Place large items on the agenda first, and allot the most time to these, if left until the end these items are more likely to be tabled or rushed. Board member volunteers are deeply invested in their communities. A well-
BY DOREEN MURRAY, CCAM
prepared board package will provide your board with all the information they need to succeed and move forward each meeting. Making sure your board reviews the packet in advance can lead to a more efficient and timely meeting – reviewing the report after it has been received via a phone call or email can ensure your board has received and reviewed the report prior to the meeting, and it will also give them the opportunity to ask questions ahead of time. Do not reinvent the wheel: keep management reports neat and in a structured order each month. Start your meeting on time. People appreciate it when you understand that their time is valuable. Adding time limits to agenda items is effective
for keeping your meeting moving and for allowing for group participation if you notice one person is monopolizing the conversation. Limit homeowner forum to 3-5 minutes and always encourage your membership to send in their concern before the meeting so it can be discussed with correspondence. Membership should be aware that if their topic is the same as another’s that it will be addressed as one. Allowing your homeowner audience a chance to ask questions at the end is an encouraging way to engage and reassure your membership. Lead with energy. Everyone is resistant to change at some point, but creating a positive board meeting will lead to a happier and more effective
board. Smile and stay engaged. Listen and respond to concerns and questions. Being dismissive is a meeting killer. Your board will ultimately feed off your energy as the manager. All board members are important. Engage your board and make sure that everyone has had a chance to contribute to the meeting. This is an effective way to build a rapport with all your board members. Recognize your board members for the contributions they make to their community. Making sure your directors know they are appreciated is a great way to engage and increase participation. Spend less time on the past and focus more on the future – many boards spend a lot of time reflecting on past projects, old managers and prior board actions – this is counterproductive in most scenarios. Encourage your board to focus on the project at hand and promote healthy dialogue while minimizing negativity. While this feedback can be very valuable, it shouldn’t monopolize or take away from the key discussion of the agenda item. At the end of every meeting, take the time to review any action items. Having clear direction is the best way to make sure you, the manager, has succeeded with an effective meeting. If you and your directors keep the work moving between the meetings it can make your actual meetings more productive. As with anything leading a meeting takes skill, organization and clear expectations.
Doreen Murray is a Certified Community Manager with Condominium Management Services where her portfolio includes Condominiums and PUDs. CONNECT WITH GRIE • ISSUE TWO 2018
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Out with the Old and In with the New The All New Educational Expo Experience By Betty Roth, CMCA, AMS, LSM, PCAM
T
he Greater Inland Empire Chapter has come up with a brilliant and innovative idea to replace the Mini Trade Show Luncheons. The luncheons were so very important for community member volunteers, business partners and managers to lunch and learn and network. The new concept is called Educational Expo Experiences and they are just that; a fabulous experience. They are important educational sessions wrapped in with a high energy expo and networking experience. They have taken the luncheons to a higher level. As a manager of seventeen years, who has enjoyed the luncheons and the education I have received, as well as the networking with all of the wonderful Inland Empire business partners, I was very impressed with the concept for so many reasons. The experiences are held four times a year with a more concentrated educational program. They are held later in the day, making it easier to work through the morning and then attend the experience and leave for home at the end of the day. There is also an option to take the
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class after the experience giving even more time before the experience to work through the day. The experiences are held in different locations to give managers, community member volunteers and business partners the ability to attend near their areas. The venues so far have been Pechanga Resort in Temecula and the Riverside Convention Center in Riverside. Both were perfect for the experiences in their own way. There will also be experiences held at the Doubletree in Ontario which will add another level to the expo. There are several choices for classes before and after the expo itself. There is a class geared toward community member volunteers and another geared to managers. The classes are two hours which gives ample time to really understand the subject of the class. It also gives ample time for questions because it is such an intimate venue. Finding out that others have the same concerns and questions as well as their helpful suggestions and recommendations is always a plus.
The class I took at the February experience was on legislative updates presented by Matt Ober, Richardson Ober PC and Jeff Beaumont, Beaumont Tashjian. The legal updates provided were on the new legislation recently passed by the state legislators. It was very informative and questions were happily answered. The class I took at the April Experience was about amending governing documents presented by Robert DeNichilo, Nordberg DeNichilo LLP and Laurie Poole, Adams/Stirling. This class was very timely as many attendees realized there was definitely a need to update their governing documents, for a variety reasons. The presenters were also generous answering as many questions as possible. Once you have attended a class or plan to attend a class in the evening, then there was the actual expo experience. This is a time to meet with the business partners at their various booths. There seemed to be plenty of time to speak with the business partners as well as enjoy time with industry colleagues and friends. The food was fantastic at both expos with so many different menus from which to choose. There was music and a wonderful calm and serene atmosphere. There was no need to rush around. Both experiences were very enjoyable and worthwhile. I look forward to the last experience for great classes and more networking with business partners, colleagues and friends. I give credit to the team who came up with this idea; the chapter Board for believing in it; as well as the staff of the GRIE chapter office for all their hard work in producing the experience. Kudos to everyone for a job well done.
Making a Difference is Our Mission
We know what it takes to create great communities that residents are proud to call home. We start by putting the right teams in place – local association management experts who deliver our best-in-class solutions, along with genuinely helpful service, to enhance the property values and lifestyles of those we serve. That’s how we make a difference, every day, for great communities like yours.
Making a Difference. Every Day.
25240 Hancock Avenue, Suite 400, Murrieta, CA 92562 800.428.5588 | www.fsresidential.com
Betty Roth, CMCA, AMS, LSM, PCAM is the onsite General Manager for Sunnymead Ranch PCA in Moreno Valley as an employee of Avalon Management Group.
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A Newbie’s Visit to Sacramento By Don E. Smith, Morgan Hill HOA
A
s a recently elected HOA Board Director (Morgan Hill in Temecula) I was invited to participate in the CAI – CLAC sponsored Legislative Day at the Capitol, held April 8-9. I must be honest that I really didn’t have a clue as to what CAI or CLAC did (truth be told, I wasn’t sure what the initials CAI and CLAC represented). Well, that has changed! The meetings began on Sunday with an excellent presentation by attorneys Laurie Poole and Deon Stein. They first took us through some background information regarding CAI (Community Associations Institute) and CLAC (California Legislative Action Committee). For those out there, like me, who were unaware of what CAI does, read on: CAI is an organization of 33,000+ members in over 60 chapters worldwide whose purpose is to educate and advocate on behalf of community 16 |
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associations. CAI tracks both state and federal legislation and advises its members as to the benefits and/ or disadvantages of that legislation. CLAC is a committee of CAI and
I was surprised to learn that approximately 1/3 of California homeowners reside in a common interest development.
acts as the advocate, keeping the chapters informed as to issues which may affect community associations, requesting their assistance when
needed and acting as the “voice” of CAI. I was aware that there is a large number of homeowner associations in the state of California but I was surprised to learn that approximately 1/3 of California homeowners reside in a common interest development. In case you missed it, that amounts to a HUGE voting block when it comes to proposed legislation affecting your home! Laurie and Deon then took us through the process of “How a Bill Becomes a Law.” A very interesting and informative session as the presenters really went into detail regarding the mechanics of the process. One of the most important parts of their presentation was how our involvement in this law-making process can be – and is – effective. On to lunch and self-introductions … I found myself looking for a dictionary as many of the attendees have considerable “alphabet soup”
following their names. I would suggest that all the newbies out there go to CAI National’s website (www.caionline.org) to see what those designations represent. After speaking with several of those folks, I can assure you, it means they have taken the time to develop and improve their skill-set and knowledge of common interest developments and HOAs. Following lunch, we listened to and participated in a terrific discussion regarding SB 407 (access to HOA facilities for the purpose of political meetings). Very interesting and I would strongly suggest everyone becoming more knowledgeable on this subject, as it will become more and more of an issue as we move into the state and federal election cycles. Next came a very enlightening session of case law that has or will have a definite effect on our associations. Some of the topics covered included service animals, including emotional support animals (ESAs); landscape problems dealing with the interference by one homeowner of another homeowner’s view, damages caused by negligently maintained trees; drought tolerant landscaping; solar panels and more. We live in interesting times! Our last speaker of the day was Mr. Louie Brown, our Legislative Advocate. Louie went through the five bills that are of prime interest to everyone in CAI: SB 1265: Board Member Qualifications – Would prohibit an association from establishing any requirement (other than homeownership) for membership on the Board of Directors. This means a convicted felon, in arrears on their dues could be elected. This bill would also allow any member to request and receive a copy of all voter envelopes, including signatures. CAI OPPOSES THIS BILL. AB 2353: Construction Defect – Will reduce the statute of limitations for construction defects from 10 to 5 years. CAI OPPOSES THIS BILL.
Turning Common Interests Into Common Ground
General Legal Counsel Governing Document Amendments Legal Opinions Contracts Dispute Resolution
Civil Litigation Enforcement Insurance Coverage/ Bad Faith Construction Assessment Collections
866.788.9998 HOAattorneys.com
Continued on page 18
CONNECT WITH GRIE • ISSUE TWO 2018
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A Newbie’s Visit to Sacramento... Continued from page 17 SB 721: Contractors – Deck and Balcony Inspections: Would require mandatory inspections (and maintenance) of walkways, balconies and elevated structures in a multiresidence structure. This bill, if passed, will require associations to inspect 15% of the balconies every 6 years, possibly putting many associations into bankruptcy due to the high cost of these inspections. CAI OPPOSES THIS BILL UNLESS AMENDED. AB 2912: Protection of Association Finances – This bill is designed to protect association finances. It will require a board to review financial statements monthly rather than quarterly, sets Fidelity Bond requirements and prohibits electronic transfers of association monies without board approval. CAI SUPPORTS THIS BILL.
SB 1128: Board Elections – Would allow an association to elect members to the board of directors by acclamation if the number of eligible candidates is equal to or less than the number of open seats. CAI SUPPORTS THIS BILL. On Monday, we were given a refresher briefing on the bills then walked across the street to the State Capitol where we were able to meet with a State Senator and/ or Assemblymember in order to present our thoughts concerning those bills. For some of us, the Senator or Assemblymember was not available but we did meet with either their Chief of Staff or Legislative Assistant. These individuals were extremely gracious in giving us their time and their attention and allowing us to present our case. While each group had an experienced leader, all of us had the opportunity to speak and to voice our opinion. This was an amazing
EDITOR’S LINK Our current issue is brimming with excellent information I hope you are able to utilize in your communities. As part of our Chapter, we invite you to volunteer by sharing ideas for magazine content or Brittany A. Ketchum, Esq., an associate attorney with Beaumont Tashjian, has devoted her career to representing common interest developments. She can be reached at bketchum@HOAattorneys.com.
contributing articles. Our goal is to explore the matters that matter most to your communities. On behalf of the Connect Magazine Committee, thank you for your readership.
It is always a pleasure working hand-in-hand with board members, managers and business partners alike to educate and support associations by increasing awareness of the important issues facing communities today. 18 |
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experience, not to be missed by anyone working with common interest development communities. I can only say that I plan to be back in Sacramento next year for Legislative Day (yeah, I drank the Kool-Aid) and would urge everyone who is able, to make the trip. This is a terrific group experience and, more importantly, a tremendous opportunity to stand up and be heard.
Don Smith is the Treasurer of the Morgan Hill HOA Board of Directors.
SB 721 New Inspection Requirements for Exterior Elevated Components By Dylan Grimes, Esq.
S
enate Bill 721 was introduced by Senator Jerry Hill to take aim at issues related to unsafe decks, balconies and elevated walkways. The bill came about as a result of the Berkeley deck collapse in 2015, where experts determined that the deck support beams were rotted thus causing the collapse. Prior to this Bill cities like Berkeley enacted local ordinances aimed at requiring a more formulaic inspection regime for decks and balconies. In January of this year the Bill made it out of the senate and it is now under review by the Assembly. All signs point to this bill becoming law in California.
What is SB 721?
Senate Bill 721 proposes to add section 4476 to the California Civil Code and section 7071.20 to the Business and Professions Code. Both additions require periodic
inspections of associations by licensed professionals. If passed, the first round of inspections must be completed by January 1, 2024 with subsequent inspections to take place every six (6) years. These inspections are not focused solely on decks however and must include all exterior elevated elements and associated waterproofing elements. This includes the following: • Balconies • Decks • Porches • Stairways • Walkways • Entry Structures • Supports and Railings • And any walking surface that is elevated more than six (6) feet above ground level SB 721 also requires that these inspections be performed by a
“licensed architect, licensed civil or structural engineer, or an individual certified as a building inspector or building official.” The inspector must also generate a report which “shall include photographs, any test results, and a narrative sufficient to establish a baseline of the condition of the components inspected that can be compared to the results of subsequent inspections.” This report must be generated within 45 days of the completion of the inspection and delivered to the association. If the inspection reveals conditions that pose an immediate life safety hazard, the inspection report must be delivered to the association within 15 days and emergency repairs be undertaken. If the report identifies that a building requires corrective work to an exterior elevated element that does not pose an immediate life safety Continued on page 20 CONNECT WITH GRIE • ISSUE TWO 2018
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SB 721 Continued from page 19 threat, the association must apply for a permit within 120 days of receipt of the inspection report. Once the permit is approved, the association shall have 180 days to make the repairs unless an extension of time is granted by the local enforcement agency.
What is the Effect of SB 721? As discussed, SB 721 would add additional inspection and reporting requirements to Associations. However, depending on the association, the impact could be minimal. Prior to this change in law most associations were already required to perform inspections as part of the maintenance and repair obligations in their CC&Rs. In addition, associations may also have been required to conduct inspections as part of their fiduciary duty to their members. The bill will require that these
inspections be made regardless of what associations did or did not have in place in the past. Regardless, under SB 721 associations will now need to make sure that: (1) the inspections are performed by the appropriate licensed professionals; (2) that the inspector complies with the reporting requirements and (3) if issues with exterior elevated components are discovered they must be reported and repaired in accordance with their severity.
What about the Cost?
This new law may require that associations spend money they had not previously planned on spending. This will ultimately require an adjustment to reserve studies and in some instances, could give cause for a special assessment related to these inspections. However, with compliance not required until 2024, associations have time to plan for this bill and its impact. When meeting
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with their reserve study analysts, associations should make sure to capture these costs and the potential impact they may have on future reserves. We recommend consulting with an attorney prior to this law going into effect to determine how it will impact an individual association. Prior to working for Angius & Terry LLP, Dylan Grimes was also named a Super Lawyers Rising Star in 2017 and 2018. Super Lawyers only selects 2.5% of licensed active attorneys in California as Rising Stars, making this a huge accolade. Prior to becoming a lawyer, Mr. Grimes worked as a music and art agent in San Francisco. Mr. Grimes also had a book of poetry published in 1997.”
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He Said, She Said… We Did? By Kelly G. Richardson, Esq., CCAL
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One of the more fascinating (and troubling) aspects of common interest developments is the unwillingness of homeowners to embrace the power of the community association – until their neighbor becomes a problem.
T
hen, rather than the good old-fashioned neighborly chat, the HOA member wants the association manager and/or board to “do something” about their complaint. As neighbors increasingly expect their association board to be the solver of all their problems, they seem less and less willing to deal directly with their neighbors. The late-night party, noisy floor, or barking dog, becomes not a conversation between two neighbors about the problem, but instead a demand for HOA action. Neighbor-vs-neighbor complaints are one of the more difficult situations for boards, managers, and their attorneys. If a neighbor is bothering multiple neighbors, or management staff or security personnel have observed the behavior complained of, enforcement is simpler because the association now has corroborating information. This discussion however addresses the classic “he said; she said” situation, in which the association is presented with a complaint by one neighbor against another, while the second neighbor denies the allegation (and often makes their own claim of misbehavior against the complaining neighbor).
Business Judgment Includes Discretion
Is the board required to determine who is telling the truth, and who is not? No, the board is only required to use its reasonable business judgment applied to the information available. If the board does not have enough information to be certain of its decision, the board is entitled to take no action until it has enough information that it may responsibly act. Unless and until corroboration of some kind is received, the association may well not decide which complaint is valid.
Respond with Care
Should the association not respond, and not punish the neighbor as the other neighbor demands, care should be taken as to how the association responds. Those letters are often much more delicate and difficult than the typical
violation letter. The letter in this circumstance could, if things escalate between neighbors, be “Exhibit A” in a legal dispute, or could be used by a homeowner to “prove” that the association doesn’t care about its residents and is unwilling to rein in bad behavior. Such a letter should acknowledge the complaint and inform the owner that the association has been unable to confirm the events complained of. The owner should be reassured that the association takes all complaints seriously, but also takes seriously the need of neighbors to live peaceably together. The owner may be asked if they have spoken with the offending neighbor, or if they would like the offending neighbor to be informed that the complaining neighbor has brought the issue to the association’s attention. Lastly, the complaining neighbor should be reassured that the association works best when neighbors work together, and offer to facilitate a meeting between neighbors, mediated by one or two directors. Depending upon the association legal counsel’s view, the homeowner might also be reminded that they have their own individual right as homeowners, and that they may wish to obtain their own legal advice. However, this type of response, while true, could be interpreted as encouraging legal disputation between neighbors, and litigation always should be the last resort, not the first option.
I Smell Smoke
Some of the more common disputes between neighbors involve smoking. As our society seems to move away from smoking and more conscious of “second-hand smoke,” a common complaint is the smell of smoke from an adjacent unit (in attached housing HOAs). In wood frame structures, it is quite difficult if not impossible to truly seal one residence from the next, and odors and fumes are able to migrate through walls, floors or ceilings. Associations often would virtually shrug their shoulders at such complaints, believing Continued on page 24 CONNECT WITH GRIE • ISSUE TWO 2018
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He Said…She Said…We Did? Continued from page 23 that there was nothing which could be done. However, a trial decision in San Clemente in 2013 may have started a change in that view. In that case, a family in a townhouse-style condominium complained of the adjacent neighbor’s cigarette smoking, saying it adversely affected their two children, who suffered from asthma. The dispute was unresolved, and culminated in a jury trial. After a fiveweek trial (!!), the jurors awarded $15,000 damages, 60% of which was imposed against the association, with the remainder assessed against the neighbor and the management company (!!!).
“Make the Stomping Stop!”
Another common neighbor dispute involves noise. Unfortunately, it seems that developers of wood-frame apartment-style condominiums do not include a ban on hard floors in the original CC&Rs. Consequently, many associations suffer from unduly
noisy floors, but the wood, tile or other hard flooring surface does not violate the CC&Rs. The outcome can be litigation between the upper neighbor, who argues they did nothing wrong, and the lower neighbor, who is unable to rest due to constant footfall noise above. To reduce such conflict, associations in wood frame apartmentstyle condominium buildings may wish to consider either a membership vote to add a ban or at least a soundproofing standard to hard floors above the ground floor, or at minimum disclose to all owners the risk that a hard floor, while not a violation of the CC&Rs, nevertheless could create a noise nuisance for the neighbor below. Noise complaints can take a myriad of other forms, such as allegedly slamming doors, loud stereos, or unduly loud talking. In addition to the possibility that the complaining homeowner is exaggerating the problem, I have seen cases in which once the problem arose, it became such a focus for the complaining owner that the complainer became overly sensitized
and almost obsessed on their belief of unreasonable sound. This is one of many reasons why associations should be cautious about taking disciplinary action when the only information available is from the complainer.
Rudeness – Does it Equal “Harassment?”
Another common complaint is that a neighbor is just generally harassing. I have been asked to take action against a resident who “stares at me” when walking by, or who mutters under their breath when the complainer walked by. However, I have yet to pursue a complaint about illegal staring. One of the unsettled areas in California law is how far an association board must go to protect members from the alleged harassment of other neighbors. If the harassment involves a physical threat or other outrageous conduct, and multiple neighbors are victimized, the association may well be justified in taking actions to protect the residents. As always, such a determination depends upon the facts and should include input from association legal counsel before action is undertaken.
If the Rudeness is Sexual, It is Harassment
The law regarding neighborto-neighbor complaints changed dramatically in October 2016, at least regarding complaints of unwanted sexual advances or “hostile environment” in the association. At that time, the federal department of Housing and Urban Development (“HUD”) adopted regulations which require housing providers (common interest developments are housing providers under Fair Housing laws) to take reasonable action to prevent sexual harassment against residents, including harassment by a resident against another resident. California’s Council of Fair Employment and Housing is about to adopt state regulations which largely follow the federal lead. There is abundant case law regarding sexual 24 |
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harassment (considered to be sexual discrimination) in the employment context, but the housing context of course is quite different. Associations presented with claims of sexual harassment are expected to respond “reasonably.” What is reasonable may depend greatly upon the corroboration but also upon what, if any, disciplinary power the association has regarding the issue of harassment. Most, if not all, associations do not have rules barring unwanted sexual advances by residents, or do not have rules banning sexually oriented communications. So, what if anything, can the association do if presented with a claim of sexual harassment? There actually may be very little associations can do, except to offer to contact the allegedly offending member and ask him or her to keep their distance from the complaining resident. I have read at least one column so far by an attorney who recommends that HOAs should adopt rules banning unwanted sexual advances or sexually oriented remarks. This is truly a destructive recommendation, since to adopt such a rule would then bring on the duty of the association to enforce the rule. Sometimes corroboration will later arise, and if the conduct is deemed to merit a disciplinary response, the association board might then decide that some action is warranted. Associations can and should try to encourage an environment of good neighborly behavior. However, associations should not try to be the guarantor that residents will always treat each other reasonably.
Kelly G. Richardson is a fellow of the College of Community Association Lawyers, former national President of CAI, and Senior Partner of Richardson Ober.
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The Tide of Short-Term Rentals What Boards of Beach Communities Should Know By A.J. Jahanian, Esq.
O
ver the past few years, board members and management alike have had to deal with the challenges of the “sharing economy.” Sites, such as Airbnb and VRBO, have connected members of common interest developments to outside, non-member renters, in an unprecedented fashion, many times leading to the “commercialization” of residential communities. Boards and management are increasingly pressed with the issue of regulating short-term rentals and protecting their communities against excess use and nuisances, such as noise and increased traffic and wear and tear, associated with transient tenancy. Complicating matters, the Court in Greenfield et al. v. Mandalay Shores Community Association has added another wrinkle that may limit a board’s ability to regulate shortterm rentals/transient tenancy. In Greenfield, the plaintiffs owned a single-family home in the Mandalay Shores beach community, which they began renting to others for rental periods of less than thirty (30) days. Thereafter, the association adopted a rule barring the rental of homes for less than 30 days, and any violations would result in significant fines. The plaintiffs then sued to enjoin (i.e., stop) the association’s proposed ban on short term rentals. Under the California Coastal Act, the State’s goal was to “[m]aximize public access to and along the coast.” (Public Resources Code Section 30001.5.) In light of the Act, the 26 |
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Court in Greenfield held that banning short-term rentals in a coastal zone, as the community was located, was a violation of the Coastal Act, because it changed the intensity of use of coastal land. In other words, if the association is located in a coastal zone, short-term rental bans may be a violation of the Coastal Act. Ultimately, boards and management should be proactive in addressing possible challenges to short-term rental bans by homeowners. First, determine if your community is zoned as a beach community, pursuant to local law and the California Coastal Commission. If it is, an outright ban on short-term rentals may violate the Coastal Act. However, as with all complicated legal issues, you should contact legal counsel for guidance. Local laws vary from city to city and boards and management should be prepared to lawfully protect their communities from transiency and other issues, with clarity and confidence. A.J. Jahanian, Esq is an associate attorney with Beaumont Tashjian where he is dedicated to servicing the firm’s community association clients. He focuses on all aspects of general counsel related matters. He can be reached at ajahanian@HOAattorneys.com.
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