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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
ISSUE FOUR 2018
2019 Legislative Update
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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
www.cai-grie.org
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, AAMC Phil Hakopian, CIRMS..................................................................Treasurer Cornerstone Commercial & Personal Insurance Services, Inc.
BOARD DIRECTORS Jackie Fromdahl.....................................................Painting Unlimited, Inc. Brian Henry.........................................................................Park West, Inc.
Table of Contents Features
Departments
4 Escheatment and Homeowners Associations
7 President’s Message
By Tracy R. Neal, Esq.
9 New Law Expands Rights to Use EV Charging Stations in HOAs
10 Editor’s Link
By Steven J. Tinnelly, Esq.
23 2019 Chapter Calendar
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 DJ Conlon, CMCA ADMINISTRATIVE ASSISTANT Elda Pfitzinger-Thomas EDITOR IN CHIEF A.J. Jahanian, Esq..........................................................Beaumont Tashjian
12 TOPS Awards
By Nancy I. Sidoruk, Esq.
18 Wait, What? Are Future Assessments Actually Dischargeable Through Bankruptcy? By Sandra L. Gottlieb, Esq., CCAL & Alyssa B. Klausner, Esq.
Management Gina Roldan.......................................................... ProTec Building Services
By Robert Riddick, CMCA
Michelle Howard, CMCA, AMS, PCAM................... PowerStone Property
By A.J. Jahanian, Esq.
14 Statutory Spotlight
20 Guerrilla Tactics to Safely Survive in Your ‘Hood
PUBLICATIONS COMMITTEE
By Robert Serdoz
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.” 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
Advertisers AMS Paving, Inc..............Inside Front Cover
Keystone Pacific Property Management, Inc.....6
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Kriger Law Firm.........................................21
Beaumont Tashjian....................................16
Mutual of Omaha Bank............................11
Berg Insurance Agency, Inc.......................11
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Steven G. Segal Insurance Agency, Inc.....19
FirstService Residential, AAMC.................21
The Inspectors of Election.........................22
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 FOUR 2018
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Escheatment & Homeowners Associations Homeowners associations, acting through the Board of Directors, should consult with legal counsel and the association’s accountant and/or financial advisor to develop and adopt an escheatment policy.
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ISSUE FOUR 2018 • CONNECT WITH GRIE
E
scheatment, in the context of homeowners associations, involves the process of identifying prior owner accounts having credit balances and/or otherwise due refunds that are inactive, and thereafter, remitting those funds to the state, if the owner (or the owner’s representatives) cannot be reasonably located and have not otherwise claimed the money. All states require some manner of reporting when money has been abandoned or unclaimed after a certain amount of time, generally three to five years. In California, escheatment requires that “holders” of property (any person in possession of property subject to Code of Civil Procedure Sections 1500 et seq., which belongs to another, or who is a trustee in case of a trust, or is indebted to another on an obligation subject to CCP Sections 1500 et seq.) perform due diligence by attempting to contact payees, and provide them with notice that the holder/organization (i.e. the association) has their property or uncashed checks, and that same “may be transferred to the state” if they do not contact the
BY TRACY R. NEAL, ESQ.
association. (See CCP §§1513.5(b) and 1514(b).) Notice “is required to be sent within the first six months of the year in which the funds will be reported to the State.” (See also CCP § 1520(b).) Pursuant to the Code of Civil Procedure Section 1516, money that has not been returned within three (3) years automatically “escheats” to the State.
Why is Escheatment Important for Homeowners Associations?
The State Controller’s Office charged with overseeing escheatment (specifically, the State’s unclaimed property auditors) has the authority to impose significant monetary penalties against an association for failing to report and remit unclaimed funds or funds overdue for escheatment to the State. How would the State know if a homeowners association is or is not in compliance with the State’s
escheatment laws? Consider, Yee v. American National Ins. Co., 235 Cal. App.4th (3rd App. Dist., Mar. 24, 2015), a notable 2015 escheatment case. In Yee, American National, a life insurance company, refused to allow the State Controller to inspect its books and records in order for the State to confirm that American National complied with the State’s escheatment laws. The State Controller may examine the records of the person or entity, such as American National, or an association, “at reasonable times and upon reasonable notice…if the Controller has reason to believe that the person is a holder who has failed to report property that should have been reported pursuant to this chapter (CCP § 1571(a)).” (Emphasis added.) According to American National, the State Controller had “no reason to believe” that it had failed to report, because American National was already required by law to report or otherwise make annual
disclosures. The “reason to believe” standard, however, is based upon the State’s knowledge of the holder’s failure to report held property, as a requirement for examining the holder’s records, and not knowledge of the holder’s other disclosure obligations. Pursuant to Yee, the State Controller only needs to show that there are specific, articulable facts that would justify a reasonable person, who is knowledgeable in the field, believing that unclaimed property has not been reported. Even if “articulable facts” did not previously exist, or if the auditor simply did not articulate the unreported funds previously, this does not preclude the State from enforcing the escheatment procedures thereafter. Homeowners associations may avoid potential audits and possible penalties by demonstrating that the association has adopted escheatment procedures and policies. An association’s procedures and policies may include, for example, a timeline for accomplishing tasks necessary to establish an escheatment cycle. This would include (or should include) maintaining in the Association’s records the last known addresses for owners (per CCP § 1510(a).), and reviewing inactive accounts. Any accounts showing credit balances or refunds due, should be sent letters, stating that, “if the association does not hear from you by a date certain, unclaimed funds will be transferred into a non-interest bearing account, and thereafter, will escheat to the State.” The letter should encourage claims to the funds. Also, utilizing a non-interest bearing account demonstrates that the association is Continued on page 6 CONNECT WITH GRIE • ISSUE FOUR 2018
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Escheatment & Homeowners Associations Continued from page 5
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not keeping these funds in order to profit in any manner. In general, the described procedures and policies demonstrate that an association is intending to comply with the State’s escheatment requirements, and not intending to illegally withhold funds. If your homeowners association has not done so, the association, acting through the Board of Directors, should consult with legal counsel and the association’s accountant and/ or financial advisor to develop and adopt an escheatment policy for your association.
Tracy R. Neal, Esq. is a senior associate attorney at Beaumont Tashjian, a full service community association law firm with offices throughout California. She is an active member of CAI and is current President of the CAI-Channel Islands Chapter. Since 1961 Licenses #664779
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ISSUE FOUR 2018 • CONNECT WITH GRIE
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PRESIDENT’S MESSAGE We all know, 2018 was a year of change and had quite a few changes to many of our events this year and I think we did great. It’s not always easy to embrace change, but change is how we all grow. Things were getting a bit stale so with the efforts and leadership of our committee chairs, as well as our wonderful committees we pulled it off. As you know, the Educational EXPO Experiences were the biggest change – replacing the monthly luncheons and they just knocked it out of the park!! These events clearly had the most significant changes in the way we offer not only education but increased the exposure to our business partners. It took an event or two to work the bugs out, but once everyone caught on, it went just fine. Just another huge thank you to the Education Committee (Committee of the Year) for making sure that the quality of the education sessions were of a significantly higher level and quality than in the past. I can’t say THANK YOU enough for all of the creativity, time, effort and hard work
I can’t believe this is the end of 2018 and my second Presidency for the Greater Inland Empire Chapter. Actually, the year has gone Robert Serdoz is the by rather quickly. owner of Elite Pest Not sure if that’s Management, Inc. a reflection of my and 2018 CAI-GRIE age or just the President. speed in which we all seem to work and live these days… I’d like to start off by just saying thank you to all who participated this year. As always, I want to thank all the wonderful volunteers, directors, committee chairs, committee members, educators, speakers and executive staff that we’re so fortunate to have with us. A special thank you goes out to our executive director DJ Conlon and her assistant Elda Thomas who work countless hours making all of this possible.
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(all on top of their full time jobs) that the volunteers put into the social events!! Many of our volunteer leaders and committee members work tirelessly behind the scenes throughout the year to make everything possible that don’t pertain to a specific event, so I’d like to take this opportunity to thank them as well. I think on a going-forward basis, we’ll continue to build on our successes and look to improve in the areas needing a little help. We always want to improve and we always ask for your input so we know what works and what needs a little improvement. I don’t want to let anything out of the bag, that’s Adam’s job to take us all through 2019 so I’ll keep it at that. I’m sure he has some great ideas to take us to the next level. With that, I’m done so feed me, water me and send me out to pasture. It’s been my sincere privilege leading the chapter this year and look forward to my continued service to our great chapter in the years to come.
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CONNECT WITH GRIE • ISSUE FOUR 2018
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ISSUE FOUR 2018 • CONNECT WITH GRIE
BY STEVEN J. TINNELLY, ESQ.
New Law Expands Rights to Use EV Charging Stations in HOAs
F
or the third time in past seven years, the California Legislature has modified the laws governing the installation and use of Electric Vehicle (EV) charging stations within homeowners associations (“HOAs”). The first time was in 2011 when the Legislature enacted a new statute (now contained at Civil Code Section 4745) designed to nullify any provision in a HOA’s governing documents that prohibited homeowners from installing and using EV charging stations. In the following year, the Legislature then amended the law to give HOAs some regulatory authority in this area. That amendment served two (2) essential purposes: (1) it gave HOAs the ability to impose “reasonable restrictions” on the installation and use of EV charging stations, and (2) it clarified how the statute is primarily intended to apply to EV charging stations to be installed in a homeowner’s exclusive use/dedicated parking space. This year SB 1016 was enacted by the Legislature. It makes some significant changes to Section 4745, and also adds new Section 4745.1 to the Civil Code to address EV Charging Station dedicated “TOU” (time of use) meters. On September 14, 2018, the Governor signed SB 1016 and its changes to the law will take effect January 1, 2019. The following information summarizes what HOAs should be aware of in the wake of SB 1016’s passage.
Changes to Existing Section 4745 Effective January 1, 2019
• Section 4745(a) was amended to expand the scope of rights homeowners have to install EV charging stations. Homeowners will now have the right to install EV charging stations in their “units,” not simply their designated, exclusive use common area parking spaces. Some condominium developments are structured such that each “unit” is comprised of a residential element and a garage element. Other developments actually include spaces within the deeds to the individual units. Thus, regardless of whether a homeowner’s designated parking space is within their unit’s garage, or within a portion of common area, the provisions of Section 4745 apply. • Section 4745(f)(1)(D) was amended to clarify that the homeowner has to pay for not only the electricity usage associated with the charging station, but also for the costs of installation of the station. • Section 4745(f)(3) was amended to relax the insurance requirements of homeowners who install EV charging stations. The $1,000,000 homeowner liability coverage policy requirement has now been replaced with a requirement for the homeowner to Continued on page 10 CONNECT WITH GRIE • ISSUE FOUR 2018
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EDITOR’S LINK With the year drawing to a close, it is the perfect time to reflect on the eventful 2018, and prepare for the changes coming to CAI-GRIE and your community association. First and foremost, I would like to thank Brittany Ketchum, Esq., who has served as Connect magazine’s distinguished editor since 2016. Following this consistent theme of thankfulness during the holiday season, I would also like to personally express my gratitude to the authors of this Issue for their unique insights and expertise, and you the reader, for providing the foundation for Connect Magazine. A.J. Jahanian, Esq. is Of course, the approach of the holidays also means that changes in the laws an associate attorney with Beaumont Tashjian who devotes impacting community associations are soon taking effect. Starting January 1, 2019, your his career to serving common interest developments. community may be affected by laws relating to Electric Vehicle (EV) Charging Stations, He can be reached at ajahanian@HOAattorneys.com new association financial requirements, and a host of new training requirements for community association employees and managers. Through the enclosed articles, we hope your community is up to speed on what is to come for the future. On that note, I am honored and excited to be given the opportunity to serve as this issue’s, as well as 2019’s Editor of Connect. Being able to provide guidance, awareness and education to managers, service providers and community associations’ volunteer leaders is my ultimate goal. The changes coming to 2019 will surely bring new and interesting challenges our way, which I am looking forward to tackling with our fellow CAI-GRIE members. Happy Holidays!
New Law Expands Rights... Continued from page 9 simply have “a liability coverage policy” without any specific amount listed. The requirement for the HOA to be named as an additional insured under the policy has also been deleted. **However, somehow the requirement under 4745(f)(1)(C) for the homeowner to, as a condition of approval, agree to provide a certificate of insurance which names the HOA as an additional insured has not been changed. In other words, the law now contradicts itself. Another “head-scratcher” from the California Legislature that should prompt a clean-up bill next year (we hope). • Section 4745(k) has been amended in a way that materially modifies the remedies available in enforcing Section 4745’s requirements. Prior to SB 1016, Section 4745(k) allowed for a prevailing plaintiff in an action to enforce Section 4745 to recover 10 |
ISSUE FOUR 2018 • CONNECT WITH GRIE
its attorney’s fees. The new law will change this language to allow recovery of attorney’s fees only when “a homeowner requesting to have an [EV] charging station installed and seeking to enforce compliance with [Section 4745]” is the prevailing plaintiff. In other words, regardless of whether the HOA is the plaintiff or the defendant, it will never be able to recover attorney’s fees in a lawsuit to enforce Section 4745 even where the HOA wins! This is the latest example of the Legislature’s willingness to modify the feeshifting provisions of the DavisStirling Act to afford homeowners an advantage over their HOAs.
New Section 4745.1 Effective January 1, 2019
As referenced above, new Section 4745.1 will be added to the Civil Code effective January 1, 2019. It basically mirrors the provisions of Section 4745 (pertaining to EV Charging Station
installations) in order to extend them to EV-dedicated “TOU” (time of use) meters. An EV-dedicated TOU meter is an electric meter supplied and installed by an electric utility, that is (a) separate from, and in addition to, any other electric meter, (b) is devoted exclusively to the charging of EVs, and (c) that tracks the time of use (TOU) when charging occurs. It is designed to aid utility companies in determining what price per kilowatthour should be charged for the use of an EV charging station at specific times of day. Applications for the installation and use of EV-dedicated TOU meters must be processed in virtually the same way as applications for the installation and use of charging stations, except that the insurance requirements which apply to charging stations do not apply to EV-dedicated TOU meters. Section 4745.1 also requires HOAs to “attempt to find a reasonable way to accommodate” a request to install an EV-dedicated
TOU meter, “unless the [HOA] would need to incur an expense.” SB 1016 is the latest example of the Legislature’s continuing trend of promoting renewable energy technologies and limiting the regulatory authority of HOAs. HOAs (especially condominium associations) should implement rules designed to process homeowner requests for EV charging stations in ways that comport with the new statutory requirements. HOAs that violate these requirements are subject to civil penalties and damages.
Steven J. Tinnelly, Esq. is the Managing Shareholder of Tinnelly Law Group and president of Alterra Assessment Recovery. Steve can be reached at steve@tinnellylaw.com.
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Business Partner of the Year Harvest Landscape Enterprises, Inc.
Committee of the Year Education Committee
Community Association of the Year XL Category Moreno Valley Ranch Community Association Managed by Avalon Management Group, AAMC
Community Association of the Year Large Category Bear Creek Master Association Managed by Powerstone Property Management
Community Association of the Year Medium Category The Villages Community Association Managed by Avalon Management Group, AAMC
Community Association Volunteer of the Year Brad Sullivan Wolf Creek Maintenance Corporation
Community Outreach Volunteer of the Year Sandra Flores
Industry Innovation of the Year Avalon Management Group, AAMC
Industry Innovation of the Year Business Partner Harvest Landscape Enterprises, Inc.
Onsite Manager of the Year Norma Zermeno, AMS, PCAM
Portfolio Manager of the Year Gloria Vizzini, CMCA, AMS
Article of the Year Don’t Fear the Annual Meeting By Matt D. Ober, Esq., CCAL
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ISSUE FOUR 2018 • CONNECT WITH GRIE
Not pictured: Committee Chair of the Year – Tiffany Christian – A Country Faire Top Recruiter – Kristie Rose, CMCA, AMS, PCAM
2018 President Appreciation Gifts
President’s Award Recipient Phil Hakopian, CIRMS
2018 Committee Chair Appreciation
2018 Board Appreciation
Hall of Fame Inductee Betty Roth, CMCA, AMS, LSM, PCAM
Rising Star Mallory Paproth
Top Recruiter Lana Hamadej, PCAM
2019 Board of Directors
2018 President Robert Serdoz welcoming the opportunity to pass the Presidency to 2019 President Adam Armit
Up & Comer – Mitzi Jimenez, CMCA
CONNECT WITH GRIE • ISSUE FOUR 2018
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“I’ve seen firsthand over the last decade serving on CAI-CLAC how our legislative efforts have made a positive impact in the lives of California’s 13 million homeowners living in community associations.” CLAC Chair Nathan McGuire, Esq. Adams Stirling, PLC
Statutory Spotlight T
Each year hundreds of laws go into effect, many of which may have an impact on community associations.
he mission of CAI’s California Legislative Action Committee (CLAC) is to safeguard and improve the community association lifestyle and property values by advocating a reasonable balance between state statutory requirements and the ability and authority of individual homeowners to govern themselves through their community associations. To achieve this mission, CLAC – through the efforts of its committee delegates, Sacramento-based advocate Louie Brown, Jr., chapter legislative support committees (LSCs) and volunteers – evaluates the potential impact of bills proposed in the California State Senate and Assembly and mounts grassroots advocacy campaigns when needed. This article highlights several key Senate Bills (SB) and Assembly Bills (AB) that were on the CLAC “Hot Bills” list, plus other select bills of interest to community associations. All bills mentioned below and which passed go into effect on January 1, 2019.
SB 261 – Consent to Receive Email Delivery
Amending Civil Code Section 4040, this bill authorizes members to use email to provide and revoke consent to receive “individual delivery” or “individual notice” by email. It also changes the notice requirement in Section 4360(a) for proposed operating rule changes from 30 to 28 days. 14 |
ISSUE FOUR 2018 • CONNECT WITH GRIE
BY NANCY I. SIDORUK, ESQ.
expenses compared to budget, and delinquent assessment receivable reports. These review requirements may be met when every member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews these documents and statements independent of a board meeting, if the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting. Community associations must also purchase “fidelity bond coverage” as further specified in newly added Civil Code section 5806, in an amount “equal to or more than the combined amount of the reserves of the association and total assessments for three months.” Boards are encouraged to consult with their insurance professional to confirm coverage meets requirements.
No Impact or Vetoed SB 1016 – Electric Vehicles
The bill amends Civil Code section 4745 and adds a new Section 4745.1. Among other things, it clarifies that homeowners must pay costs associated with the installation and electrical usage of electric vehicle charging stations in common areas or exclusive use common areas. It also protects installation of Time of Use (TOU) meters, but allows for reasonable restrictions.
SB 954 – Mediation Confidentiality Disclosure
SB 954 requires attorneys representing clients in connection with a mediation to provide written disclosures to their clients about mediation confidentiality.
SB 1480 – Manager Certification, Disclosures
This bill eliminates the sunset provision applicable to Sections 11500 – 11509 of the Business & Professions Code regarding manager certification and disclosures. If the sunset provision were not removed, these sections involving use of the “certified common interest development manager” title would have been repealed as of January 1, 2019.
AB 2912 – Association Finances
This bill is about preventing fraud and embezzlement. It prohibits transfers of greater than $10,000 or 5% of the total combined reserve and operating account deposits, whichever is lower, without prior written board approval. It requires monthly reviews of multiple financial statements and documents including, but not limited to, operating and reserve accounts, actual operating revenues and
SB 721 – Balcony Inspection & Repair (Not applicable)
In June 2018, the “balcony bill,” was amended to exclude its application to community associations. As originally introduced, it would have required community associations to perform extensive inspections and invasive testing of balconies and similar components and to perform repairs under time limitations not readily achievable by self-governed communities which are already subject to regular inspection of major components and member disclosures regarding reserves.
SB 1128 – Director Qualifications; Election by Acclamation (Vetoed)
This bill was originally supported by CLAC, when it would have Continued on page 16
CONNECT WITH GRIE • ISSUE FOUR 2018
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Statutory Spotlight Continued from page 15 allowed election by acclamation and modified operating rule change notice requirements. After SB 1128 was amended to incorporate the onerous provisions of SB 1265 (see below) to limit rights to establish reasonable director qualifications, CLAC took an opposed position and the bill was vetoed by the governor.
SB 1265 – Director Qualifications; Privacy (Vetoed)
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
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ISSUE FOUR 2018 • CONNECT WITH GRIE
Among other things, this bill would have voided all candidate qualifications other than being a member of the association, financial felon or delinquent in regular assessments. It would have significantly impacted homeowner privacy by allowing review and copying of ballot envelopes containing addresses and signatures. CLAC strongly opposed SB 1265 and is pleased that its grassroots efforts helped bring about the governor’s veto. Although these last three bills will not affect community associations in 2019, always be on the lookout for new bills that could impact homeownership, governance, management and related products/ services. Each year hundreds of laws go into effect, many of which may have an impact on community associations, so this article is not comprehensive. Associations should consult with legal counsel regarding these and other laws. If legislative issues are of interest and you would like to learn more, please visit www.caiclac.com. Nancy I. Sidoruk is a Senior Attorney with Adams|Stirling PLC, managing the firm’s Temecula office. She is a past-president of CAIGRIE and is a member and past-chair of its LSC, having also served as both a delegate and liaison to CLAC. Nancy can be reached at nsidoruk@adamsstirling.com.
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CONNECT WITH GRIE • ISSUE FOUR 2018
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Wait, What? Are Future Assessments Actually Dischargeable Through Bankruptcy? BY SANDRA L. GOTTLIEB, ESQ., CCAL & ALYSSA B. KLAUSNER, ESQ.
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ISSUE FOUR 2018 • CONNECT WITH GRIE
D
id you know that a new case in the 9th Circuit, Goudelock v. Sixty-01 Association of Apartment Owners, holds that (post-petition) assessments that become due after a debtor has filed for Chapter 13 bankruptcy are also dischargeable under 11 USC Section 1328 (a)? In the Goudelock case, the debtor surrendered the property in her Chapter 13 Plan, and the lender subsequently foreclosed on the property, and the Association sought to determine that the delinquent post-petition assessments from the date the debtor filed for bankruptcy until the date the lender foreclosed on the property were not dischargeable. The Court held that post-petition assessments arise from the pre-petition debt and therefore the debtor’s personal obligation to pay said debt (both the pre-petition and post-petition assessments) is eliminated when the debtor is granted discharge in his/her/its bankruptcy case. Thus, the debtor’s personal obligation to pay is eliminated and an association is unable to collect the delinquent post-petition assessments from a debtor who has surrendered the real property in his/her/its bankruptcy case and whose Chapter 13 Plan has been confirmed and who has been granted discharge, except that the association retains its in rem rights against
the property. In other words, while 11 USC Section 523 (a)(16) provides that post-petition assessments are not dischargeable as long the debtor continues to own, reside in and/or rent out the property, the Court held that post-petition assessments arise from the pre-petition debt and therefore the debtor’s personal obligation to pay the assessments is eliminated when the debtor is granted discharge. The association does retain its in rem rights to foreclose on the property in the event that the post-petition assessments are not paid. But, if the lender has already foreclosed on the property due to the debtor’s delinquency, the association loses the opportunity to collect the delinquent post-petition assessments from the debtor, prior to the lender’s foreclosure, if the debtor is granted discharge in his/her/its bankruptcy case. The takeaway from this case is that it is imperative for an association
to record a Notice of Delinquent Assessment lien against the real property when the assessments become delinquent and before the owner(s) of said property file for bankruptcy in order to preserve the association’s rights to collect and foreclose against the property. Moreover, it is critical that the association or its attorney review the debtor’s bankruptcy documents including the Statement of Intentions and/or the Plan to see whether the debtor is surrendering the real property so that the association can take the necessary steps to protect its in rem rights against the property and obtain payment of the post-petition assessments. For example, if the debtor surrenders the property in the Plan and the post-petition assessments are delinquent, then the association should proceed with the Motion for Relief from the Automatic Stay so that it can proceed with the foreclosure of the property. Otherwise, the
association may be unable to collect both the delinquent pre-petition and post-petition amounts from the debtor, as well as the property if the lender forecloses.
Sandra L. Gottlieb, Esq. is the managing partner and head of the transactional division of SwedelsonGottlieb, a law firm that exclusively represents community associations throughout California. Alyssa B. Klausner, Esq. is an associate attorney at SwedelsonGottlieb, which represents community associations throughout California.
Our Agency is Farmers #1 Producing Insurer of Common Interest Developments Nationwide
Over 38 years of experience specializing in: • Condominium Associations • Planned Unit Developments • Hard to Place Associations • Earthquake Coverage • High Rise Condominiums • Workers Compensation Toll Free: 800-345-8866 • Toll Free Fax: 800-262-0973 Email: steve@segalins.com • www.farmersagent.com/ssegal License No. 0E24660
CONNECT WITH GRIE • ISSUE FOUR 2018
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Guerrilla Tactics to Safely Survive in Your ‘Hood BY ROBERT RIDDICK, CMCA
S
o, we already know that on any given morning, we’re going to wake up to news stories telling us about the latest break-ins, the latest home invasion robberies, the latest grand theft acts perpetrated (auto stolen), and even the latest pets stolen. All happen in someone’s neighborhood, and all happen when, all too often, those acts could have been prevented, or at least minimized. How? By taking some basic steps that we are all capable of performing and without costing us an arm and a leg. And now you’re saying, “I’ve heard this before and it doesn’t work!” Well, it does, if you just DO it! Simple actions such as installing a wireless doorbell camera, or getting involved in setting up a strong and vibrant Neighborhood Watch program in your community can help. Or, petitioning your city to look at implementing neighborhood camera reporting programs. Even just making sure that you use plain old common sense when protecting and defending
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ISSUE FOUR 2018 • CONNECT WITH GRIE
against theft and ensuring personal safety, such as keeping house-hugging shrubs cut low and installing adequate outdoor lighting mounted in strategic locations, that are tripped by motion sensors. It simply requires each of us to look at what we want to protect and then to shop for a practical solution. In today’s tech-driven world, there are many capable devices specifically designed to be low cost and well worth the time and effort of having it installed. There are a number of readyto-install doorbell cameras that will alert you when someone is at your door, both locally or while you are halfway around the world. Do not be fooled by the low cost, however. These cameras come equipped with state-of-the-art lenses that can see the color of your eyes from up to ten feet away. If you are on a budget, there are brands available with prices starting around $100. Another important element you need to consider for increasing neighborhood safety is the tried and
true Neighborhood Watch program. A Neighborhood Watch program is easy to organize with the help of your local police department (police love this program). It’s an excellent way to strengthen ties with your neighbors, while relying on each other to prevent and report potential criminal activity, by having more than one set of eyes focused on the happenings of your neighborhood. Neighborhood Watch does not cost anything, except your time and a commitment to protect your community. And, as is so often quoted, there truly is “strength in numbers,” as a good Neighborhood Watch program can provide an increased security presence. When it comes to making sure your favorite pet is not the victim of yet another petnapping, do something as simple as posting clear descriptive pictures of your pets on your favorite social media platform (i.e., Facebook, Instagram, Twitter) so that if they ever turn up missing, you can immediately
let others know what your pet looks like by referring them to your social media page. Don’t forget to microchip your pet for easy identification. When it comes to protecting your vehicle parked in the driveway, invest in a lockable gas cap. You would be surprised how much gas siphoning takes place while we are sleeping, because it is just too easy to do. Moreover, do not leave either your registration or your garage door opener inside your vehicle after you park it, even in your own driveway. Think about it: someone breaks a window of your car, reaches into the glove compartment and finds your garage door opener. How soon do you think he will return and use it to get into your garage, most likely when you are not home? As far as your vehicle registration goes, the California Department of Motor Vehicles now allows you to keep a copy of it on your cell phone, and if asked for it by police, they will honor the digital copy. So, stop carrying it in your car, unless you want to expose yourself to the risk of identity theft. Hopefully, just doing these few simple things will help you succeed in ensuring that you are not the subject of one of those daily reports about yet another neighbor getting ripped off, while at home or away. None of these measures are prohibitively expensive nor difficult to implement. We just need to make the effort. Besides, what have we got to lose? Never mind, don’t answer that!
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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.
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Robert Riddick, CMCA is the current President of Sunnymead Ranch PCA, President of the Foundation for Community Association Research, Board member of CAI-GRIE, and Board member of CAI-San Diego. He also currently serves as the CAI-GRIE CLAC Liaison.
CONNECT WITH GRIE • ISSUE FOUR 2018
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2019 Calendar of Events 2019 Calendar of Events
JANUARY 01 New Year’s Day – Office Closed JANUARY 21 MLK Jr. Day – Office Closed 01 New Day – Office Closed 22 BoardYear’s Meeting/Orientation/ 21 MLK Jr. Day – Office Closed Chair Check-in – CAI office 22 Meeting/Orientation/ 23-26 Board National Law Seminar – New Orleans, LA Chair Check-in – CAI–office 30 New Member Mixer CAI office 23-26 National Law Seminar – New Orleans, LA 30 New Member Mixer – CAI office FEBRUARY
02 7-hour Basic Essentials Course – CAI office FEBRUARY 18 President’s Day – Office Closed 02 7-hour Basic EssentialsEXPERIENCE Course – CAI office 26 EDUCATION/EXPO – TEM 18 President’s Day – Office Closed No Board Meeting 26 EDUCATION/EXPO EXPERIENCE – TEM No Board Meeting MARCH 22 Murder Mystery Dinner – Marriott Riverside MARCH 26 Board Meeting – CAI office 22 Murder Mystery Dinner – Marriott Riverside 26 APRIL Board Meeting – CAI office 05 Golf Tournament – Dos Lagos APRIL CA Legislative Day – Sacramento 8-9 05 Golf Tournament – Dos Lagos 16 EDUCATION/EXPO EXPERIENCE – SIL 8-9 CA Legislative Day – Sacramento 19 Good Friday 16 EDUCATION/EXPO EXPERIENCE – SIL 21 Easter Sunday 19 Good Friday 23 Board Meeting/Chair Check-in – CAI office 21 Easter Sunday 23 MAY Board Meeting/Chair Check-in – CAI office
03 MAY 12 03 15-17 12 18 15-17 18 27
A Country Faire – Citrus Park Mother’s Day A Country Faire – Citrus Park FL National Conference – Orlando, Mother’s Day Homeowner Leader Classes – CAI office National Orlando, FL TBD (Sat. classConference – 2 hrs ea –session) Content Homeowner Leader Classes – CAI office Memorial Day – Office Closed (Sat. – 2 hrs ea session) 28 Boardclass Meeting – CAI office Content TBD 27 Memorial Day – Office Closed 28 JUNE Board Meeting – CAI office 13 EDUCATION/EXPO EXPERIENCE – TEM JUNE 16 Father’s Day 13 EDUCATION/EXPO EXPERIENCE – TEM 25 Board Meeting – CAI office 16 Day – CAI office 27-28 Father’s PMDP M206 25 Board Meeting – CAI office 27-28 PMDP M206 – CAI office SIL - Silver Lakes Sports Complex - Corona RCC - Riverside Convention Center TEM - Pechanga Casino - Corona SIL - Silver LakesResort Sports&Complex RCC - Riverside Convention Center TEM - Pechanga Resort & Casino
JULY 04 JULY 20 04 20 23
Independence Day Holiday – Office Closed Homeowner Leader Classes – CAI office Independence Holiday – Office Closed (Sat. class – 2 Day hrs ea session) Content TBD Homeowner Leader Classes – CAI office Board Meeting/ (Sat. class – 2 hrs ea session) Chair Check-in – CAI office Content TBD 23 Board Meeting/ 26 Storm Baseball Game – Lake Elsinore Chair Check-in – CAI office 26 Storm Baseball Game – Lake Elsinore AUGUST 07 New Member Mixer – CAI office AUGUST 15 EDUCATION/EXPO EXPERIENCE – SIL 07 New Member CAI office 27 Board MeetingMixer – CAI–office 15 EDUCATION/EXPO EXPERIENCE – SIL 27 Board Meeting – CAI office
SEPTEMBER 02 Labor Day – Office Closed SEPTEMBER 10-14 Large Scale Workshop 02 Labor Day – Leader Office Closed 14 Homeowner Classes – CAI office 10-14 (Sat. Largeclass Scale– Workshop 2 hrs ea session) Content TBD 14 Homeowner Leader 24 Board Meeting – CAIClasses office – CAI office (Sat. class – 2 hrs ea session) 28 Monte Carlo – An Evening in Content Monaco TBD – TEM 24 Board Meeting – CAI office 28 Monte Carlo – An Evening in Monaco – TEM OCTOBER
14 Columbus Day – Office Closed OCTOBER 18 CLAC Chapter Fundraiser – Location TBD 14 Columbus Day – Office Closed 22 EDUCATION/EXPO EXPERIENCE/ 18 CLAC Chapter Location TBD Chapter AnnualFundraiser Meeting – –RCC 22 EDUCATION/EXPO EXPERIENCE/ 29 Board Meeting/2020 Planning Mtg./ Chapter Annual –Meeting RCC Chair Check-in Location– TBD 29 Board Meeting/2020 Planning Mtg./ Chair Check-in – Location TBD NOVEMBER
01 Pins & Pockets Social – Lake Elsinore NOVEMBER 09 7-hour Basic Essentials Course – CAI office 01 Pins & Pockets Lake Elsinore 11 Veteran’s Day –Social Office–Closed 09 7-hour Basic Essentials Course – CAI office 26 No Board Meeting 11 Veteran’s DayHoliday – Office Closed 28-29 Thanksgiving 26 No Board Meeting Office Closed 28-29 Thanksgiving Holiday Office Closed DECEMBER 13 TOPS/Holiday Board Meeting – TEM DECEMBER 25-1/1 Holidays – Office Closed 13 TOPS/Holiday Board Meeting – TEM 25-1/1 Holidays – Office Closed
CAI-GRIE Chapter Office Phone: (951) 784-8613 • Fax: (951) 848-9268 • E-mail: info@cai-grie.org CAI-GRIE Chapter Office Phone: (951) 784-8613 • Fax: (951) 848-9268 • E-mail: info@cai-grie.org CONNECT WITH GRIE
• ISSUE FOUR 2018
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5029 La Mart, Suite A Riverside, CA 92507-5978
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28th Annual Golf Tournament April 5, 2019 Shotgun Start – 9:00 am Dos Lagos Golf Course 4507 Cabot Dr. Corona
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MIMOSA BAR SPONSOR Dunn-Edwards Paints SPECIAL HOLE SPONSORS Diversified Asphalt Products, Inc. Elias Bros. Contractors, Inc. Roy Palacios Insurance Agency SCHWAG BAG SPONSOR AMS Paving, Inc. GOLF TOWEL SPONSOR The Naumann Law Firm, PC SOUVENIR PHOTO SPONSORS Environmental Concepts Landscape Management, Inc. FirstService Residential, AAMC Painting Unlimited, Inc. Sherwin-Williams Company CART FLAG SPONSOR Vista Paint Corporation CENTERPIECE SPONSOR Associa-PCM, AAMC CONTINENTAL BREAKFAST SPONSOR Segal Insurance Agency, Inc. PAPARAZZI WALL SPONSORS FirstService Residential, AAMC Garland Restoration, Inc. Painting Unlimited, Inc. Villa Park Landscape, Inc.