WE WANT YOU TO PARTICIPATE IN THE INSURANCE TRENDS IMPACT SURVEY
Community associations are experiencing rising premiums, cancellations, and other coverage related issues with their community’s property and casualty policies.
These trends are impacting homeowners’ ability to sell their homes/condominiums due to mortgage underwriting issues and increases in assessments, special assessments, and more.
In 2023, we conducted an Insurance Trends Impact Survey, and we’re updating the survey today. Please help us understand what you and your community/communities are experiencing by participating in this short survey so we can share the information with the industry and work with government officials to find solutions to these challenges.
PLEASE TAKE A FEW MINUTES TO PARTICIPATE IN THE SURVEY.
https://www.surveymonkey.com/r/9DD8YK7
This data helps CAI advocate for public policies supporting common interest communities. It also helps community associations benchmark their practices against other communities in their state and across the country.
NEW AND RENEWING MEMBERS
NEW BUSINESS PARTNERS
ATOMIC RFID
Mr. Adam Geary (888) 464-7343 sales@atomicrfid.com
RENEWING BUSINESS PARTNERS
ANIMAL PEST MANAGEMENT SERVICES, INC.
Mr. Dan Fox (909) 591-9551 dfox@animalpest.com
BARCODE AUTOMATION, INC.
Mr. Ryan Waxberg (407) 327-2177 ryan@barcode-automation.com
BEAUMONT TASHJIAN
Ms. Tawnee Guerra (818) 884-9998 tnguerra@hoaattorneys.com
CID CONSORTIUM, LLC
Mr. Adam Haney (888) 786-6000 ext. 317 ahaney@cidcllc.us
C.L. SIGLER & ASSOCIATES, INC.
Mr. Chris Sigler (408) 922-0267 chris@siglercm.com
Partner & Managing Attorney of the Coachella Valley, Roseman Law, APC
ASHLEY LAYTON, PCAM, AMS, CMCA CO-CHAIR
Premier Community Association Management
MIKE TRAIDMAN BOARD LIAISON
Mira Vista at Mission Hills HOA
SIERRA CARR, CMCA, AMS, CCAM, PCAM Associa Desert Resort Management
GLENN A. MILLER, CGCS Southwest Landscape & Maintenance, LLC
LILY ORTEGA Pro Landscaping Inc.
JASON SAVLOV, ESQ. Adams | Stirling, PLC
JOHN SCHUKNECHT LaBarre/Oksnee Insurance
STEVEN SHUEY, PCAM
Personalized Property Management (Ret.)
CHRIS SIGLER, B.S.C.E, CDT C.L. Sigler & Associates, Inc.
HOLLY SMITH CAI-CV Executive Director
CREATIVE DIRECTOR & GRAPHIC DESIGNER
RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749
PHOTOGRAPHY
MATTHEW LAWTON, CIC, CIRMS, EBP OCV Insurance Services matt@ocvinsurance.com 760-774-2099
JAY JARVIS jayj92260@gmail.com 571-235-5420
ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION
HOALiving@cai-cv.org
SUBSCRIBER SERVICES
The Coachella Valley HOA Living Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the Community Associations Institute. Members are encouraged to submit articles for publishing consideration. All articles accepted for publication in HOA Living are subject to editing and rewriting by the HOA Living Committee.
the Miralon Community
Modern Desert Oasis with a Touch of Tradition Where Desert Beauty Meets Modern Living
Loni Peterson, CACM, AMS, LSM, PCAM
Importance of a Complete Maintenance Matrix Keeping Up with a Good Maintenance Matrix is the Hallmark of a WellManaged Association By
Chris Sigler, B.S.C.E., C.D.T.
1572 and the Future of Landscaping in the Coachella Valley Helping HOAs Prepare for California’s Water-Smart Future
and Non-Functional Turf
You Need to Know About Assembly Bill 1572 and Homeowner Associations
UPCOMING EVENTS
Program & Mini Trade Show
Reserve Standards and SB326 Balcony Bill, What Comes Next? Friday, May 16, 2025, 11:15 AM, Sun City
PAST EVENTS
Zeroski,
With First Citizens Community Association Banking, formerly part of the bank’s CIT division, you can count on continued service from the experts you know. And as one of the nation’s top 20 banks, we offer market-leading products matched with innovation and award-winning1 technology to help you grow your
Choose Educated Business Partners
Julie R. Balbini, Esq., Fiore Racobs & Powers, A PLC
Micha Ballesteros, Cartwright Termite & Pest Control, Inc.
Roxi K. Bardwell, Advanced Reserve Solutions, Inc.
Rodney Bissell, Bissell Design Studios, Inc.
Gary Butler, Asphalt MD's
Linda Cardoza, Alliance Association Bank
Will Cartwright, Cartwright Termite & Pest Control, Inc.
BG (RET) GUIDO PORTANTE Director, Mira Vista at Mission Hills HOA
TREASURER
JOLEN ZEROSKI, CMCA VP, Regional Account Executive First Citizens Bank
DIRECTOR
CLINT ATHERTON, PCAM General Manager, Sun City Palm Desert
DIRECTOR
BRIAH CASTILLO, BUSINESS DEVELOPMENT Ivan’s Painting
DIRECTOR
MANDIE CHLARSON, PRINCIPAL NLB Consulting & Elections
DIRECTOR
BRUCE LATTA, CMCA Manager, Indio Properties/President, Desert Cities HOA Council
DIRECTOR
MICHELLE LOPEZ, CMCA, AMS Director of Community Management, Powerstone Property Mgmt.
DIRECTOR
LILY ORTEGA, CMCA Office Manager, Pro Landscape
DIRECTOR
MIKE TRAIDMAN President, Mira Vista at Mission Hills HOA Commissioner, CAMICB
CONTACT US CAI Coachella Valley 49950 Jefferson Street, Suite 130-117 Indio, CA 92201 (MAIL ONLY) (760) 341-0559 | www.cai-cv.org
HOLLY SMITH Executive Director Holly.Smith@cai-cv.org
The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services. The Coachella Valley Chapter has not verified and/ or endorsed the contents of these articles or advertising. Readers should not act on the information contained herein without seeking more specific professional advice from legal,
or other experts as required.
John Schuknecht,
APresident’s Message
Mark Dodge, CMCA, AMS
Branch President and Chief Executive Officer
Desert Resort Management – an Associa Company
s we enter May and move into the hotter months of the year, I want to take a moment to reflect on the incredible momentum we’ve built together as a chapter this spring. April was a packed month, and I continue to be amazed by the energy, collaboration, and dedication our members bring to each event.
First, a huge thank you to our speakers for the April education luncheon on Conflict Resolution and Homeowner/Board Relations. Your insights helped foster a deeper understanding of one of the most important aspects of community association management, and the feedback we’ve received has been overwhelmingly positive.
CLAC Advocacy Days in Sacramento took place last month, and it served as a powerful reminder of how vital it is for us to stay engaged in the legislative process. As an industry, we must continue to show up and advocate for laws that elevate community associations—not complicate them. Participation in Advocacy Days ensures that lawmakers hear directly from those who live and work in this space, and we encourage even more of our members to get involved next year. Together, we can help shape legislation that supports the future of our communities.
Our Annual Golf Tournament was a major success once again! Thank you to every sponsor, participant, and volunteer who made the day memorable. Events like this help strengthen our chapter’s connections while supporting the important work we do all year long.
Looking ahead, May brings us CAI’s National Conference in Orlando, Florida, and we are proud to have several members from our chapter attending and representing the Coachella Valley. We look forward to bringing back fresh ideas and insights to share with all of you.
I’m also pleased to officially welcome Holly Smith as our new Executive Director, effective May 1st. Holly brings a wealth of experience and a fresh perspective to our chapter, and we are excited to see her leadership in action as we continue to grow.
Mark your calendars for some exciting upcoming events:
• Lunch Program & Trade Show – May 16th at Sun City Palm Desert
• Comedy Night – June 6th, also at Sun City
• Superheroes Bowling Tournament – July 11th at Palm Springs Lanes
A special shout-out goes to our amazing Social Committee and Mandie Chlarson for their hard work in launching our new and improved chapter website! It’s more user-friendly, visually appealing, and better reflects the professionalism and energy of our CAI family.
Thank you all for your continued support and engagement. Let’s keep this momentum going into summer and beyond!
Best regards,
It is with great excitement and gratitude that I step into the role as Executive Director for the Coachella Valley Chapter of CAI. This organization has held a special place in my heart for many years, and I’m truly honored to now serve in this new role.
Over the past eight years, I’ve had the privilege of volunteering across several of our chapter’s dynamic committees—including Membership, Oktoberfest, the Legislative, Education and as a contributing writer for HOA Living magazine. Each of these roles deepened my appreciation for the incredible value CAI brings to our industry and the strong sense of community it fosters among managers, board members, and business partners alike.
I believe wholeheartedly in the mission of CAI. It serves as a powerful hub of knowledge, support, and connection. My vision is for our chapter to be a safe, welcoming, and inclusive space where every voice is valued—whether you’re a new manager, a seasoned board member, or a dedicated
We all share a common goal: to make the communities we serve better places to live.
I look forward to guiding our chapter into a new era of innovation, collaboration, and growth. Together, we can continue to build on the incredible foundation that’s already in place and shape the future of community living in the Coachella Valley.
Friday, May 16, 2025, 11:15 a.m. Sun City Palm Desert
CAI-CV EDUCATIONAL PROGRAM & MINI TRADE SHOW
GUEST SPEAKERS
Chris Sigler
B.S.C.E., CDT President & CEO, C.L. Sigler & Associates, Inc.
Sean Erik Anderson PRA, RS
President of Association Reserves
THANK YOU TO OUR APRIL LUNCHEON & MINI TRADE SHOW SPONSORS!
EXHIBITOR TABLE SPONSORS:
• Accurate Termite & Pest Control
• Action Property Management
• Alliance Association Bank
• BRS Roofing, Inc.
• C.L. Sigler & Associates, Inc.
• Coachella Public Safety
• Cooper Coatings
• EmpireWorks
• First Citizens Bank
• Gardner Outdoor and Pool Remodeling
• Hotwire Communications
• MC Builder Corp
NEW SPONSORSHIP OPPORTUNITY!
Announcing a new sponsorship opportunity for all 2025 Educational Lunches and Mini Trade Shows!
ME + 3 SPONSORSHIP – $300 INCLUDES:
• Registration for one Business Partner
• Registration for three Managers or Homeowner Leaders (HOA Board Members) of your choice
• Additional colleague tickets available for $45 each
REGISTRATION FOR HOA HOMEOWNER LEADERS & MANAGERS
• MEMBERS: $45 • NON-MEMBERS: $75
CLICK HERE or scan QR code to Register
• Old California Fine Lighting
• Patrol Masters Inc.
• Precision Painting & Reconstruction
• SCT Reserve Consultants
• Signarama
• Vista Paint Corporation
NOTEBOOK SPONSOR:
• Gardner Outdoor and Pool Remodeling
MANAGER TABLE SPONSORSHIP:
• Asphalt MD’s
• NLB Consulting & Elections
EMAIL ADMIN@CAI-CV.ORG FOR SPONSORSHIPS
CAI-CV 2025 CALENDAR
SPONSORS
TITANIUM
Associa Desert Resort Management
C.L. Sigler & Associates, Inc.
Fiore, Racobs & Powers, A PLC
Flood Response
Gardner Outdoor and Pool Remodeling
Hotwire Communications
Lloyd Pest Control Signarama
GOLD
AMS Paving, Inc.
BRS Roofing, Inc.
Cooper Coatings
EmpireWorks
First Citizens Bank
MC Builder Corp
Powerstone Property Management
Precision Painting & Reconstruction
SILVER
Accurate Termite & Pest Control
Alan Smith Pool Plastering & Remodeling
Alliance Association Bank
Association Reserves
Banc of California
Charter Communications
Delphi Law Group
Dunn-Edwards, Corp
Epsten, APC
Horizon Lighting
Ivan’s Painting
NLB Consulting & Elections
Patrol Masters, Inc.
SCT Reserve Consultants
Sierra Dawn Estates HOA
Southwest Landscape & Maintenance
SouthWest Security
Sun King Electric, Inc.
Vista Paint Corporation
SEPTEMBER
NOVEMBER
DECEMBER
DISCOVER THE MIRALON COMMUNITY
A Modern Desert Oasis with a Touch of Tradition Where Desert Beauty Meets Modern Living.
By Loni Peterson, CACM, AMS, LSM, PCAM
Located near the heart of Palm Springs, Miralon Community Corporation offers a unique blend of modern living and timeless desert beauty. Situated at 4097 Miralon Way, just off N. Indian Canyon and Sunrise Parkway, this 309-acre agrihood community stands out as a vibrant neighborhood with sustainability, luxury, and a deep connection to nature.
A GROWING COMMUNITY WITH A VISION
Miralon was thoughtfully constructed in 2020 by Freehold Communities, with support from guest builders like PLC Communities, Woodbridge Pacific, Gallery Homes, and Lennar Homes. The community’s vision was clear from the start: create a space that blends sustainable living with the charm of the desert.
With a total of 1,150 homes planned, the community has already welcomed over 200 homeowners. While the area is still expanding, the first condominium duet project is slated to begin in the fourth quarter of 2025, bringing more diverse living options to the area.
SUSTAINABLE LIVING MEETS LUXURY
What truly sets Miralon apart is its commitment to sustainability without sacrificing luxury. The community spans 309 acres, including 97 acres of open space and an olive grove featuring over 7,000 trees. This grove will eventually produce enough olives to create the community’s own Miralon olive oil. The olive trees, drought-tolerant desert landscaping, and amenity center are all powered by solar panels, further reducing the carbon footprint of the neighborhood.
Miralon is also focused on water conservation. All plant materials used in the community are drought-tolerant, and the irrigation for common areas, including the olive grove, is powered by solar energy. Even more impressive, the landscape is watered with well water, preserving precious resources in this desert environment.
HOMES BUILT WITH CARE AND INNOVATION
The architecture at Miralon is modern with a nod to mid-century design. The community offers 14 distinct floor plans with up to three bedrooms and three-and-a-half bathrooms. Home prices range from the upper $800,000s to just over $1 million, making Miralon an attractive option for those looking for high-end desert living. The homes are spacious and energy-efficient, making them the perfect choice for anyone looking to combine modern amenities with the natural beauty of Palm Springs.
TOP-NOTCH AMENITIES FOR AN ACTIVE LIFESTYLE
Residents of Miralon enjoy a variety of first-class amenities, all included in the monthly assessment. The seven-acre amenity center offers a state-of-the-art fitness center, the Hub Wi-Fi café, MiraBar for social gatherings, and a chef’s demonstration kitchen. For outdoor enthusiasts, there are two junior Olympic-sized swimming pools, a family/recreation pool with a hot tub, BBQs, and walking and biking trails that wind throughout the community. There are also dedicated spaces for pets, including large and small bark parks, and a fire pit and bocce ball courts for social gatherings.
“WHAT TRULY SETS MIRALON APART IS ITS COMMITMENT TO SUSTAINABILITY WITHOUT SACRIFICING LUXURY.”
“THE RESIDENTS OF MIRALON SHOW A GREAT SENSE OF COMMUNITY IN THEIR SHARED INTERESTS IN THIS AMAZING COMMUNITY, WHICH BOASTS THE NATURAL BEAUTY OF ITS SURROUNDINGS. THERE IS AN APPRECIATION OF THE OLIVE GROVES, TRAILS, FITNESS CENTER, MIRABAR, AND DOG PARKS, WHICH ENCOURAGE SOCIAL INTERACTION FOR ALL.”
The sense of community here is one of its biggest draws. Vice President of the Board, Bruce Juenger, shared, “We were originally attracted to Miralon by the breathtaking vistas and beautiful natural surroundings it offers. Those combined with the concept of an ‘agrihood’ featuring over 7,000 olive trees, along with bike and walking paths throughout, made it the perfect setting for our new home. However, after we had moved in and met many of our new neighbors, their welcoming spirit and mutual appreciation for the community and what it offers has made living here unexpectedly special and enjoyable.”
A HUB FOR CONNECTION AND SOCIAL INTERACTION
Miralon is much more than just a place to live – it’s a place to connect with neighbors, nature, and the world around you. As General Manager Loni Peterson puts it, “The residents of Miralon show a great sense of community in their shared interests in this amazing community, which boasts the natural beauty of its surroundings. There is an appreciation of the olive groves, trails, fitness center, MiraBar, and dog parks, which encourage social interaction for all.”
PERFECTLY LOCATED FOR CONVENIENCE AND RECREATION
Miralon is ideally situated, just two miles from the Palm Springs Aerial Tramway and downtown shopping, offering easy access to a wide range of entertainment, dining, and cultural activities. Palm Springs Airport is only five miles away, making travel convenient for residents. Whether you’re heading out for a weekend getaway or enjoying the vibrant city life, Miralon is perfectly positioned to provide the best of both worlds.
A FUTURE FOCUSED ON SUSTAINABILITY AND COMMUNITY
Miralon is more than just a home; it’s a lifestyle built on sustainability, luxury, and connection. With its commitment to renewable energy, water conservation, and community spirit, it offers a living experience unlike any other in Palm Springs.
For more information or to learn about the Miralon Community Corporation, contact Kevin Taylor at 760-620-5013 x 3 or via email at KTaylor@VintageGroupRe.com.
Loni Peterson, CACM, AMS, LSM, PCAM, is the General Manager with Vintage Group. You can reach Loni at Loni@VintageGroupre.com or call 760-620-5013 x 2
FRIDAY, JUNE 6, 2025 5:30 PM to 7:30 PM
Featuring comedians: Jason Love and Friends
COCKTAILS & HEAVY APPETIZERS SUN CITY PALM DESERT, SIERRA BALLROOM
Get ready for an evening of laughter and generosity at our Fundraiser Comedy Night! Join us for a night filled with hilarious performances by top comedians, all while supporting a great cause.
SPONSORSHIPS AVAILABLE
INDIVIDUAL REGISTRATION $45 OR REGISTRATION FOR TWO, SAVE $10 $50 Register OR SIGNUP AT WWW.CAI-CV.ORG
The Importance of a Complete Maintenance Matrix
Keeping Up with a Good Maintenance Matrix is the Hallmark of a Well-Managed Association
By Chris Sigler, B.S.C.E., C.D.T.
If your association has a solid, complete Maintenance Matrix and if it is followed and used religiously, chances are that your association is healthy and happy – physically, cosmetically, and financially. It draws a detailed roadmap to a well-kept and well-managed association, and shows visitors, buyers and appraisers alike that your homes are valuable and desirable.
The challenges of a good Maintenance Matrix are many – most notably, keeping on point and on schedule with the cycles of maintenance. It will demonstrate best practices to informed owners and all parties interested in your community.
WHAT SHOULD A MAINTENANCE MATRIX CONTAIN?
1. A complete list of all components and systems that require regular or semi-regular maintenance
2. Division of responsibility between the homeowner and the association, component-by-component
3. If practical, the timeline of maintenance cycles
In many cases, timelines of maintenance cycles can change as materials and trends change, so having a timeline of maintenance cycles might be a stretch, but it certainly can be helpful!
WHERE CAN A HOMEOWNER FIND THEIR ASSOCIATION’S MAINTENANCE MATRIX?
Usually, an association’s Matrix is contained within the Governing Documents, many times as an appendix to the CC&Rs. It may possibly be found in the Bylaws or within the Rules of the Association, but the division of responsibilities for maintenance is usually part of the Governing Documents.
A chart or spreadsheet of components will outline the components and delineate between “HOA” or “Owner” responsibility. The type of association will many times determine the complexity of the Matrix; for example, a PUD may leave a greater amount of responsibility for maintenance to the homeowners, including responsibility for everything except for paint. On the other hand, a condominium or townhome association may be responsible for everything “from the interior sheetrock out”. Every set of Governing Documents is different, of course and the division of responsibility for components varies association by association.
HOW DOES AN ASSOCIATION KEEP TRACK OF CYCLES AND TIMELINES, TO ENSURE THAT MAINTENANCE IS BEING DONE?
If the component needing regular maintenance – for example, roofs, painting, or balconies – is the HOA’s responsibility, then the maintenance cycles should be addressed within your reserve study. The real challenge is maintaining funding so that *deferred* maintenance does not build up to a state where major problems could possibly ensue. For example, if balconies or other elevated structures are left unmaintained or unattended to, safety issues could arise that become an unexpected emergency. A well-run association, with reserve analysts and community managers and board members remaining active and on top of their maintenance can avoid such disaster management needs by simply keeping up with their maintenance tasks.
For example, keeping on top of strict painting and deck coating cycles – 5-7 years – can avoid wood decay, water intrusion, and generally extend the useful life of the exteriors of the building by many, many years. If not attended to, decayed wood will arise and will either become aesthetically unpleasant or could even pose a safety hazard. Another example is when sidewalks within the association start “heaving” and creating trip hazards, they need to be addressed before an accident occurs.
Safety and risk management should always be put as the highest priority and should always go “to the front of the bus”. This will keep your residents safe and protect your liabilities and keep insurance claims from occurring.
WHAT ABOUT HOMEOWNER MAINTENANCE OBLIGATIONS? HOW CAN THEY BE TRACKED?
Depending upon the association’s governing documents, key components may or may not be of great risk or liability. In some types of associations, the homeowners are responsible for roofing, which will usually only affect that single homeowner if they leak.
The unfortunate reality is that keeping track of homeowners’ maintenance responsibilities is a daunting, if not nearly impossible task. Community engagement and discussions of maintenance during HOA meetings is the best and most direct method of communication regarding the obligations that exist, whatever they may be, at an association.
Regardless, there are various means to remind homeowners of the shared responsibilities for maintenance – newsletters, HOA meetings, community room postings, and many others.
As with many parts of our lives, good communication, information flow, and education are key to maintaining a successful homeowners association.
Chris Sigler is the President and Owner of C.L. Sigler & Associates, Inc., a Construction Management and Consulting firm that has exclusively served the HOA industry for 23 years. He is a Civil Engineer by trade with more than 35 years of Engineering and Construction experience and is actively involved in SB326 inspections throughout the Coachella Valley. Chris is certified with the Construction Specifications Institute (CSI) as a Construction Documents Technologist. Located in Palm Desert, his firm serves the Coachella Valley and Riverside County, while serving the San Francisco Bay Area in Northern California from their San Jose Corporate office.
LInsuring vs. Maintenance Responsibilities: What’s the Difference?
By John Schuknecht, CMCA, AMS
iving in a community association comes with shared responsibilities between the owner and the association. A common question is, what do I need to insure? Or does the association’s insurance cover that? Many of our associations now have maintenance matrices that spell out what the owner is responsible for vs. what the association is responsible for maintenance wise. But please keep in mind, who is responsible for maintenance is not always who is responsible for insurance. Understanding the difference is key. While the two are related, they serve different purposes and are often divided between the HOA and the owners. Misunderstandings can lead to confusion, disputes, or unexpected costs.
Insuring responsibilities refer to who is required to carry insurance for various parts of the property. This includes protection against damage, loss, or liability. The HOA typically insures the common areas (pools, clubhouses, sidewalks, shared structures, exteriors, buildings, roofs, etc.) Homeowners are usually responsible for insuring the insides of their unit, personal belongings and personal property, and improvements. These responsibilities depend on the community’s governing documents and the type of property (condo, townhouse, or single-family home).
Again, the specific breakdown will be outlined in your HOA’s governing documents or on your maintenance matrix.
A common mistake is assuming that if the HOA insures something, they also maintain it or vice versa. As an example, the HOA’s documents might state that roof maintenance is the responsibility of the homeowner, however, that roof may still be insured by the association if a condo policy is in place. Or the HOA may handle exterior repairs but require each owner to carry their own interior insurance.
“WHILE THE TWO ARE RELATED, THEY SERVE DIFFERENT PURPOSES AND ARE OFTEN DIVIDED BETWEEN THE HOA AND THE OWNERS. “
Not understanding these distinctions can lead to unexpected repair or replacement costs, gaps in insurance or denied claims, or friction between homeowners and the HOA.
To avoid any surprises please take the time to read and understand your governing documents. Review your personal insurance policy as well as the association’s insurance policy. Finally, don’t be afraid to ask questions. Between you, your manager, your personal insurance agent, and the association’s insurance agent, someone will have the answer! Trust your experts!
Maintenance responsibilities refer to who must repair or upkeep different parts of the property. This includes both routine care and unexpected repairs. The HOA often maintains items like landscaping and common areas, shared utilities and infrastructure, building exteriors like paint and stucco, and common elements like elevators or hallways. Homeowners are generally responsible for items such as interior repairs and upkeep, appliances and fixtures, windows, doors, HVAC, and exclusive use areas such as patios, balconies, or garages.
Having a clear understanding of who insures and who maintains different parts of the property is essential in community association living. It protects you from liability, helps manage costs, and keeps your community running smoothly.
John Schuknecht CMCA, AMS is a former community manager who currently works as an Account Executive for LaBarre/Oksnee Insurance. John can be reached at 657-207-4789 or JohnS@hoa-insurance.com
CONFLICT RESOLUTION, HOMEOWNER RELATIONS, AND BOARD RELATIONS
Guest Speakers
Ashley Layton, PCAM, AMS, CMCA Vice President, Premier Community Association Management
Laurie Poole
Mark Guitheus, Esq. - Community Legal Advisers
Perez Event
By Bruce Latta, CMCA, CFE
Through the generosity of some chapter members who donated funds to cover the cost, the chapter continued its community outreach efforts and took part as a Bronze Sponsor of County Supervisor Perez’s recent Annual State of the Coachella Valley Economic Update at Fantasy Springs Events Center. The sponsorship allowed us to have a display table in the trade show, our logo on the advertising banners and in the program, and our table for the breakfast event.
Discussion and speeches focused on development and future planning, and with Supervisor Perez’s message that progress is happening. The highlight was keynote speaker Christopher Thornberg, Ph.D., economist and expert on economic forecasting. The event, originally scheduled for an attendance of 500, sold out with over 750 business and community leaders from the valley.
Our display was staffed by several of our dedicated chapter members, including Mike Traidman, Guido Portante, Steven Shuey, Jay Jarvis, Lily Ortega, Holly Smith, Clint Atherton, Mandie Chlarson, and myself. All spent the morning engaging with attendees, answering questions, distributing literature, and encouraging membership in CAI.
Bruce Latta CMCA, CFE, is a Parc La Quinta Homeowners Association member, where he served on the board for four years, two years as president. He is a member of the CAI-CV Board of Directors and Chair of the Desert Cities HOA Council. He is the Property Manager for Indio Properties Land Development. He can be reached at PLQHOABLatta@gmail or (760) 285-5617.
Homeowners Beware - The Hidden Risks of Hiring the Cheapest Contractor
By Maria Angel
When hiring a contractor for work on your property — whether it’s landscaping, construction, or repairs — it’s tempting to go with the lowest bid. But if that contractor is paying their workers cash under the table, you could be exposing yourself to serious legal, financial, and property risks that far outweigh any upfront savings.
1. You Could Be Held Liable for Injuries
If a worker gets hurt on your property and the contractor hasn’t properly documented their employment or doesn’t carry workers’ comp insurance, guess who might be on the hook? You, the property owner.
Cash-paid workers are often undocumented or off the books, which means no coverage — and in a lawsuit, the homeowner can be named responsible.
2. No Insurance = No Protection
Legit contractors carry general liability insurance to protect against damage or accidents on the job. But those who operate under-the-table often skip insurance altogether. If one of these workers hits a gas line, floods your property, or damages an expensive feature, you’re left footing the bill.
3. You’re Hiring Unverified Labor
Cash workers usually bypass background checks, training, and certifications. This means the people working on your property could have no experience, no credentials, or even criminal backgrounds — and you’d have no way of knowing.
4. No Paper Trail = No Accountability
When things go wrong — and they often do — your options are limited if there’s no contract, no receipts, and no proof of
payment. Try taking someone to court when there’s no documentation. Spoiler alert: It rarely ends well for the property owner.
5. You May Be Breaking the Law
In some cases, if it can be proven that you knowingly hired a contractor who uses off-the-books labor, you may be found complicit in tax fraud, labor violations, or misclassification of workers. That’s a legal nightmare waiting to happen.
So,
What Should You Look For?
• A contractor with a valid license and insurance
• Clear written contracts and detailed scope of work
• Transparent invoicing and payment records
• References from past clients and online reviews
• Employees who are on the books, not just “cash help”
Bottom Line
Hiring someone who pays their crew in cash might seem like a deal, but the risks are real — and they land squarely on your shoulders. If something goes wrong, you don’t want to find out that the “cheap” contractor just cost you thousands in damage, legal fees, or worse.
Don’t gamble with your property. Hire licensed, insured, and accountable professionals. It’s the smart — and safe — choice.
Maria Angel, DWI Certified Lake Manager (CLM), Aquatic Treatment & Lake Management Services. She can be reached at m6a2@dwiwater.com or call (949) 582-5414 and (760) 837-3700 in the Coachella Valley.
AB 1572 and the Future of Landscaping in the Coachella Valley
Helping HOAs Prepare for California’s Water-Smart Future
By Lily Ortega
California’s commitment to sustainable water use continues to grow, and with the recent passage of Assembly Bill 1572 (AB 1572), homeowners associations throughout the Coachella Valley will soon face new responsibilities—and opportunities— when it comes to landscape management.
WHAT AB 1572 REQUIRES
AB 1572 prohibits the use of potable water to irrigate nonfunctional turf on HOA-managed common areas beginning January 1, 2029. Nonfunctional turf is defined as decorative grass that isn’t used for recreation or gatherings—such as narrow lawn strips along sidewalks, around parking lots, or in medians and entrances.
By June 30, 2031, HOAs with 5,000 square feet or more of irrigated common area must submit certification of compliance to the State Water Resources Control Board. Those not in compliance could face daily fines.
WHAT THIS MEANS FOR COACHELLA VALLEY HOAS
In our desert region, this legislation aligns with long-standing local efforts to reduce water usage and promote climate-appropriate landscaping. But with deadlines approaching, now is the time for HOAs to assess their common areas and begin planning.
DON’T GO IT ALONE—TALK TO YOUR LANDSCAPE SERVICE PROVIDER
Your landscape service provider is your best resource in this process. They can:
• Identify nonfunctional turf areas on your property
• Evaluate irrigation systems to determine water sources and efficiencies
• Recommend water-efficient alternatives, such as native and desert-adapted plants, decomposed granite, or artificial turf
• Help navigate local rebate programs through agencies like the Coachella Valley Water District (CVWD)
• Develop a phased plan for turf removal or replacement that suits your HOA’s timeline and budget
LOOKING BEYOND COMPLIANCE
While AB 1572 introduces clear regulations, it also offers HOAs a chance to enhance their communities in meaningful ways. Converting turf to water-wise landscaping can:
• Lower long-term maintenance and irrigation costs
• Improve curb appeal with vibrant, climate-appropriate design
• Strengthen your community’s environmental stewardship
ACT EARLY, PLAN SMART
The most successful transitions start early. By working with your current landscaping team now, your HOA can create a thoughtful plan that meets legal requirements, takes advantage of available funding, and results in a beautiful, resilient outdoor environment.
Lily Ortega is the Business Development Manager for Pro Landscaping Inc. and she also currently serves on the CAI-CV Board of Directors. Pro Landscaping Inc. is a leading landscaping company in the Coachella Valley. Please contact Lily at lily@proland-inc.com for more information.
TIME HONORED Tim Cline
By Mike Traidman
With a deep connection to the Coachella Valley, Tim Cline has made an indelible mark on the local community, blending a rich career in the insurance industry with a love for music and a dedication to service. His journey began in 1982 when he insured his first common interest development in Palm Springs, a moment that would spark a long-lasting career in the area. Now, as a resident business owner, Tim is deeply embedded in the fabric of the Valley’s professional and cultural life.
Tim’s current pursuits showcase his varied interests. In his leisure time, he is passionate about music, specifically composing and arranging for small to midsize ensembles. Using Logic Pro software, he’s diving into the technical aspects of music creation, combining his creative side with the latest technology. This interest in music also traces back to his earlier years when he performed as a pianist and trombonist at Disneyland, as part of the Dixieland band, Jazz Minors, performing daily in Disney’s New Orleans Square.
Professionally, Tim’s expertise in the HOA industry is well-established. He was the eighth person in the United States to receive the prestigious CAI’s CIRMS (Community Insurance and
"He was the eighth person in the United States to receive the prestigious CAI’s CIRMS (Community Insurance and Risk Management Specialist) designation.”
Risk Management Specialist) designation. This designation, combined with years of experience, allows him to offer unparalleled knowledge of the intricacies of insuring common interest developments. In 1982, he joined CAI, driven by a desire to learn the nuances of insuring these unique properties and to share his acquired knowledge with others. Over the years, he has served in multiple roles, including president of CAI-GLAC and CAI-CIC, and as a volunteer for the Oregon Chapter’s Trade Show Committee.
As the founder of Cline Agency Insurance Brokers, Tim and his team have built a reputation as leaders in the insurance field, specializing in common interest developments. With offices in Los Angeles, Riverside, Ventura, and now the Coachella Valley, the agency’s growth is a testament to Tim’s commitment to excellence. Together with producers Jose Glez and Ryan Gesell, they’ve established a gold standard of integrity, expertise, and customer service.
Throughout his career, Tim has been a constant advocate for education and community involvement, frequently serving as an educator, guest speaker, and contributor to industry publications such as the Los Angeles Times and Wall Street Journal. His work has earned him a well-deserved place in the industry, and his ongoing dedication continues to inspire both colleagues and clients alike.
Mike Traidman is a Director of CAI-CV, the President of Mira Vista at Mission Hills HOA, and a Commissioner for the Community Association Managers International Certification Board (CAMICB). Mike can be reached at mtraidman@yahoo.com.
CAI-CV Participates in CVWD Annual Water Conservation Summit & Expo
By Bruce Latta, CMCA, CFE
CAI-CV was invited to be a part of the Coachella Valley Water District's annual "H2O for HOAs" summit at their Palm Desert headquarters on March 27. Homeowner association managers and board members within CVWD's service area were invited to this event. There were 100 complimentary tickets available, and it was reported they were all taken.
It featured speakers, discussions, and vendor exhibits on topics on water supply and conservation programs, rebates, drought-friendly landscape design for HOAs, and sustainable landscaping practices.
CAI-CV had a trade show booth alongside several of our business partners and a 15-minute section on the day’s agenda. A presentation by chapter member Bruce Latta highlighted CAI membership benefits and also tied in the chapter with the water conservation issue by noting the chapter has also held workshops and symposiums on water use and conservation in addition to including articles on the topic in the HOA Living magazine.
In addition, CAICV board president and President and CEO of DRM Associa Mark Dodge was also part of the presentation where he talked about focusing on the future and sustain ability issues.
CVWD has the entire symposium presentation online and can be seen here, section by section: https://www.cvwd.org/605/HOAs.
Bruce Latta CMCA, CFE, is a Parc La Quinta Homeowners Association member, where he served on the board for four years, two years as president. He is a member of the CAI-CV Board of Directors and Chair of the Desert Cities HOA Council. He is the Property Manager for Indio Properties Land Development. He can be reached at PLQHOABLatta@gmail or (760) 285-5617.
Layers of Protection:
DEVELOPING COMMUNITY ASSOCIATION SECURITY
By Britain L. Rome
When homeowners take on volunteer roles within their community association, they quickly find themselves learning about a wide range of topics – security being one of the most vital. People responsible for safety initiatives often start with one clear goal in mind: create a secure and welcoming environment for everyone in the neighborhood. Figuring out how to get there? That can be the tricky part.
In newer communities, associations might lean on past, positive experiences to help shape their security approach. In more established neighborhoods, there’s sometimes a tendency to stick with a “how it’s always been done” approach. Regardless of a community’s age or makeup, association board members and homeowners alike need to understand one essential truth: security should be a top priority for every community, no matter how upscale or quiet it may seem.
Gone are the days when safety was only a concern in highcrime areas. Today, every neighborhood (large or small, urban or suburban) needs a thoughtful, comprehensive security strategy. Fortunately, there are many tools and techniques available to help accomplish this. From security personnel and surveillance systems to well-planned lighting and strategic landscaping, communities have options.
The best place to begin? With a trusted security partner that understands your unique needs – not just what boosts their bottom line. Even small changes, like repositioning a front desk for better visibility, can significantly improve overall safety. The key is evaluating your current setup and identifying what can be enhanced.
While every community is different in layout, size and design, some security principles are universal. A truly effective security plan includes a mix of personnel, technology, community engagement and layered protection. These layers can and should exist in every community, no matter how big or small.
EXTERIOR LAYER: THE FIRST LINE OF DEFENSE
This layer includes features that protect the outer perimeter of the community: fences, barriers, signage, lighting, gate systems, patrols and perimeter monitoring. Design strategies, like crime prevention through environmental design (CPTED), are especially useful here.
MIDDLE LAYER: SECURING SHARED AND ACCESS AREAS
The middle layer focuses on entry points and common areas. This may include entry gates staffed by people, access-controlled buildings, CCTV systems, secure package delivery zones, and visitor management systems. It also covers spaces that are often overlooked like storage areas, utility closets and maintenance sheds.
INTERIOR LAYER: PROTECTING RESIDENCES THEMSELVES
This is the most critical layer of security. It includes measures like secure locks on home doors, controlled access to parking areas, interior patrols, motion-detecting lighting, and clear emergency protocols. This layer directly safeguards residents and their property.
Keep in mind, security features often overlap between layers. For example, patrols, lighting and surveillance cameras can support all three layers of protection. No single element can carry the entire burden; strength comes from building a network of visible and behind-the-scenes measures that work together to deter, detect and respond to threats.
BEYOND INTRUDERS: THE BROADER VIEW OF SECURITY
Security doesn’t only mean preventing break-ins. It also includes preparedness for natural disasters, utility failures and other emergencies. A fallen tree blocking the only exit or a flood from an overflowing drainage system can be just as disruptive and dangerous as a break-in.
That’s why communication and contingency planning are key. Whether it’s establishing evacuation procedures or ensuring someone can respond to a power outage, security programs should cover a broad range of scenarios. Security staff often serve as first responders in these cases, so training and preparedness are also essential.
THE HUMAN ELEMENT: COMMUNICATION AND COMMUNITY INVOLVEMENT
Effective security isn’t just about systems and technology – it’s also about people. Strong communication between homeowners, board members and security professionals makes a huge difference. Residents should feel comfortable reporting suspicious activity and security professionals should be encouraged to build positive relationships within the community.
Encouraging non-board member homeowners to get involved through newsletters, safety events and volunteer opportunities fosters a culture of shared responsibility. Security isn’t just the job of the board or security professionals; it’s a community-wide effort.
PARTNERING WITH LOCAL AUTHORITIES
Creating a relationship with local law enforcement and emergency services adds another valuable layer. These partnerships help ensure your community is aligned with broader public safety efforts and can enhance training and awareness programs. Invite local first responders to community meetings or events, keep them informed about your security plans and collaborate on initiatives. Their insight and presence can make your efforts even more effective.
CONTINUOUS IMPROVEMENT: KEEP EVOLVING
Lastly, don’t assume your security plan is a one-and-done deal. It’s vital to regularly review and update your plan. What worked well six months ago might not be effective today. Assess changes, track performance and make adjustments as needed to stay ahead of potential risks.
FINAL THOUGHTS
Security in a residential community is never about just one solution, it’s about building a strong, layered approach that reflects your community’s unique needs. With proactive planning, engaged residents, reliable partners and a commitment to continuous improvement, you can create a safer, more connected place for everyone to call home.
Britain L. Rome is the Business Development Manager at Allied Universal Security Services, with over 33 years of professional sales experience. A Presidents Club winner recognized for the most closed and started partnerships in the Southwest Division, he is passionate about helping people, businesses, and communities stay safe so they can thrive together. Britain is also a proud husband, father, and former triathlete.
Restraining Orders –Harassment and Violence in Community Associations
By Jason A. Savlov, Esq.
In the past five years since the COVID-19 pandemic, community associations have experienced an increase in harassment and violent behavior from homeowners and tenants. As community association attorneys, we used to file one or so restraining order actions per year. Currently, we evaluate restraining order requests every month. This article provides an overview of the laws and process for restraining orders affecting community associations.
Under current Federal and California laws, associations must investigate harassment or violence complaints, even involving neighbor-to-neighbor situations, if they involve any protected characteristic in California, such as race, gender, and disability, to name a few. Failure of an association to investigate and take action to stop harassment based on discrimination could result in a complaint to the Department of Fair Employment and Housing (DFEH) and/or the California Civil Rights Department.
Generally, if the complaint involves neighbor-to-neighbor harassment or violence that is not based on discrimination of a protected class, the association does not need to attempt to obtain a restraining order against the offending neighbor. Instead, the association can remind the parties that it is up to them to take action to protect themselves, such as attempting to obtain their own a civil harassment restraining order. The Riverside Superior Court’s website has guidance as a starting point.
However, if the harassment or violence is against a board member, manager, association employee, or vendor, the association can file a workplace violence petition. Effective January 1, 2025, workplace violence restraining orders can be sought for situations involving credible threats or acts of violence and also for harassment.
Another new provision this year is that the association must obtain consent from each board member, manager,
employee, and vendor it seeks to protect with the petition. Board members, managers, employees, and vendors can also include their family or household members to be protected. If a workplace violence restraining order is issued, the protected individuals are added to a law enforcement database that assists law enforcement in knowing who has a restraining order against them and who is protected from the restrained individual.
Associations should work with their legal counsel to determine whether there is enough evidence to obtain a workplace violence restraining order. The association will need to document as much information as possible about the violence or harassment committed by the offender. Such documentation includes photos, videos (by phone or surveillance cameras), emails, texts, social media posts, etc. With respect to demonstrating violence, it needs to be a credible threat of violence or actual violence, both of which may be difficult to prove. Harassment is a knowing and willful course of conduct directed at a specific person that seriously alarms, annoys, or harasses the person and serves no legitimate purpose.
The process of attempting to obtain a restraining order
starts by filing a petition that seeks a temporary restraining order (“TRO”). The judge may review the TRO request the same day or the next day. If granted, the TRO will remain in place until the petition hearing. The petition hearing must occur within twenty-one (21) days or, if there is good cause, twenty-five (25) days at the latest. A TRO is not effective against the offender/respondent until it is personally served on them. Therefore, depending on the severity of the violence, a sheriff or process server will typically be requested to serve the respondent. The respondent’s paperwork must be served five (5) days before the petition hearing. If it is not served by that time, the court will either continue the hearing or dismiss the case.
At the petition hearing, the court will hear both sides (if the Respondent is present) and make a ruling on whether to issue a permanent restraining order. These days, most courts allow for virtual appearances, which can be convenient for witnesses, as well as the added benefit of not having to be in the same space as the Respondent. Associations should consult with legal counsel whether to appear virtually or in person.
After the hearing, the judge may make a ruling at that time or may also take the matter under submission and issue a ruling later. If a permanent restraining order is granted, it can be effective up to three years, with the ability to renew it for typically another three years, if necessary. If the Respondent is not present at the hearing and the Court issues a permanent restraining order, that order will also need to be served personally on the Respondent.
If the Respondent violates the restraining order, the police can be called to determine whether to arrest the Respondent.
“The initial violation of a restraining order is a misdemeanor (up to one year in jail and up to a $1,000 fine or $2,000 for physical injury). However, multiple violations can result in a felony conviction.”
The initial violation of a restraining order is a misdemeanor (up to one year in jail and up to a $1,000 fine or $2,000 for physical injury). However, multiple violations can result in a felony conviction.
While no association desires to obtain restraining orders, when situations arise that warrant seeking a restraining order, having laws and processes in place that can help board members, managers, employees, and vendors is beneficial.
Jason A. Savlov, Esq. is the Partner in Charge of Litigation at Adams|Stirling PLC, with offices throughout California, including Palm Desert. You can reach Jason at jsavlov@adamsstirling.com or (760) 620-0747.
Understanding Functional and Non-Functional Turf
What you need to know about Assembly Bill 1572 and Homeowner Associations
By Coachella Valley Water Department
Functional turf is defined as grass that is used for recreational purposes and civic or community events. This includes sports fields, parks, school grounds, golf courses, cemeteries, and pet exercise areas. Non-functional turf (NFT) is defined as decorative grass areas with no other functions and is primarily used for aesthetic purposes.
Understanding the difference between functional turf and NFT is crucial for water conservation efforts, as Assembly Bill 1572 (AB 1572) aims to conserve water by prohibiting the use of potable (drinkable) water for irrigating non-functional or ornamental turf on commercial, industrial, and institutional (CII) properties, including Homeowner Associations (HOAs).
The goals of AB 1572 are to promote water conservation, increase sustainable landscaping practices, build local groundwater supply resilience, and better prepare Californians for future statewide droughts.
To comply with AB 1572 by January 1, 2029, HOAs must
permanently discontinue watering NFT in common areas or replace NFT with sustainable landscaping alternatives. The bill also authorizes water suppliers, like CVWD, to enforce provisions with fines. HOAs must also provide compliance reports to the State Water Resources Control Board every three years beginning June 30, 2031.
HOAs are encouraged to identify NFT areas in consultation with their homeowners and plan conversion projects over the coming years to meet the compliance deadline. CVWD staff are available to consult with HOAs to assist in identifying NFT areas and discuss rebates to maximize funding available for HOA projects. Exemptions from the law do exist for turf areas irrigated with recycled or non-potable water. Residential properties within HOAs are also exempt from the regulation.
To learn more, visit cvwd.org/NFT or contact WaterConservation@cvwd.org.
Aging Communities –Aging Residents
Do your residents want to stay put, and age gracefully in their homes? If so, check out this great book from CAI Press:
A Place to Age
The Retirement Generation in Community Associations
ISBN: 978-0-59618-075-8 2014, 44 pages
Author(s): Ellen Hirsch de Haan Product Format: Book Item #: 0758
Members-Only Sale: USD $4.95
Members: USD $8.95
Non-Members: USD $14.95
FRIDAY, MAY 16
Lunch
Program & Mini Trade Show
Sun City Palm Desert
Time: 11:15 AM
FRIDAY, JUNE 6
Comedy Night
Location: Sun City Palm Desert Time: 5:30 PM
FRIDAY, JULY 11
Bowling Tournament
Location: Palm Springs Lanes Time: 5:30 PM
TUESDAY, JULY 17
CAM Day
(Community Association Manager Day)
Location: Palm Valley Country Club Time: 8:00 AM
How Investment Advisors Use Reserve Studies to Build Smart Investment Ladders with CDs and Treasury Bills
By Jessica McConnell
For associations and community-managed properties, managing reserve funds is not just about saving—it’s about strategically planning for the future. Board members have a fiduciary duty to ensure financial stability while minimizing the risk of special assessments. That’s where working with a licensed investment advisor becomes essential. These advisors help align long-term expenditure needs with short-term investment decisions. One of the most effective strategies used is the investment ladder, and it all starts with understanding the association’s reserve study and funding plan.
WHAT IS A RESERVE STUDY, AND WHY DOES IT MATTER?
A reserve study is a long-term financial planning tool that estimates the timing and cost of major repairs or replacements for an association’s common area components—think roofing, paving, HVAC systems, or clubhouse renovations. The study typically includes:
• A component list with remaining useful life and estimated replacement costs
• A funding plan that projects annual reserve contributions
• A cash flow projection showing when expenditures are expected over time
These projections serve as a roadmap for how and when reserve funds will be needed. For investment advisors, this roadmap is essential in constructing a portfolio that keeps the community’s funds both liquid and productive. Understanding the nuances of the reserve study—such as front-loaded projects or multiyear phase-outs—can make or break a successful investment strategy.
TURNING DATA INTO STRATEGY: THE ROLE OF THE ADVISOR
Licensed investment advisors are fiduciaries. That means they are legally and ethically bound to act in the best interest of the association. When reviewing a reserve study, their goal is to:
• Preserve principal using low-risk, federally backed investments
• Ensure liquidity to meet upcoming expenditures
• Maximize highest, safest yield in the current interest rate environment
Unlike bank reps or brokers who may be limited in their offerings, fiduciary advisors take a holistic view of the association’s financial picture. They are not incentivized to push products; instead, their compensation is typically fee-based and aligned with the association’s success. This delicate balance between safety, access, and return is where the concept of investment laddering comes into play.
WHAT IS AN INVESTMENT LADDER?
An investment ladder is a strategy where funds are divided and invested into time-staggered certificates of deposit (CDs) or U.S. Treasury Bills (T-Bills) that mature at regular intervals. For example, instead of investing $500,000 in a single 12-month CD, an advisor might build a ladder with:
• $100,000 maturing in 3 months
• $100,000 in 6 months
• $100,000 in 9 months
• $100,000 in 12 months
• $100,000 in a Treasury money market fund for immediate liquidity
This structure allows the association to earn competitive interest rates while ensuring funds mature in sync with projected cash needs. It also avoids the risk of locking up funds unnecessarily or being forced to sell an investment early at a potential loss.
HOW RESERVE STUDIES INFORM THE LADDER
The real value lies in matching the maturity dates of these investments with the expenditure schedule in the reserve study. For instance, if a $75,000 exterior paint project is scheduled for month 18, an advisor can purchase a Treasury bill or CD that matures just beforehand. This ensures funds are available exactly when needed—no earlier (which risks lost earnings) and no later (which risks liquidity issues).
Additionally, reserve studies often reveal spending patterns that allow for longer-term investments. If there are no significant projects for the next 24 months, a portion of the funds can be safely placed into 2-year or even 3-year Treasuries with higher yields.
WHY USE CDS AND TREASURIES?
CDs and U.S. Treasuries are favored for several reasons:
• Low risk: They are either FDIC-insured (CDs) or backed by the full faith and credit of the U.S. government (T-Bills and Treasury Notes)
• Predictable returns: Interest rates are known and locked in at the time of purchase
• Liquidity: Laddering provides a built-in liquidity mechanism as investments mature in rotation
• Tax efficiency: U.S. Treasuries are exempt from state and local income taxes, providing a valuable tax advantage— especially for associations in states with corporate income tax. These investments also support transparency and audit compliance, two important considerations for self-managed and professionally managed associations alike.
A SIMPLE CASE STUDY
Let’s say a community has $1 million in reserves. The reserve study shows:
• $100,000 needed in 6 months
• $200,000 needed in 12 months
• The rest isn’t needed for 3+ years
An advisor might recommend:
• A $300,000 ladder maturing at 6 and 12 months (using T-Bills or CDs)
• $100,000 in a Treasury money market fund for flexibility
• The remaining $600,000 in a mix of 1–3 year investment-grade Treasury ladders for higher yield
This approach helps ensure funds are working smarter—earning more interest than if left in a standard bank account or pooled money market—while remaining accessible for planned projects.
ADJUSTING AND REBALANCING OVER TIME
Reserve studies are typically updated every 1-3 years, or more frequently for larger or more active associations. As updates come in—or if unexpected changes occur, such as a roofing project getting delayed—advisors can rebalance the investment ladder to adapt.
For example, if a $150,000 expense originally planned for next year gets pushed out to year three, that cash can be reinvested in a longer-term Treasury for a better return. Similarly, if dues collections are higher than anticipated or a special assessment is levied, that influx of capital can be incorporated into the laddering plan.
ADDITIONAL BEST PRACTICES
• Follow a Written Investment Policy: Establish and periodically review a formal investment policy statement (IPS) that outlines risk tolerance, permissible investments (e.g., CDs, Treasuries), and liquidity requirements. Partnering with a licensed investment advisor helps to ensure the policy is tailored to your financial goals and regulatory requirements.
• Update Reserve Studies Regularly: Ideally, commission a full reserve study every 1-3 years, with annual updates. This ensures the investment strategy reflects current timelines and inflation-adjusted project costs.
• Work with a Fiduciary Advisor: Partner with a licensed investment advisor who has a fiduciary duty to act solely in the best interest of the association— unlike broker-dealers or commission-based financial
advisors, who are not held to the same standard. A true fiduciary is not tied to product sales or commissions, helping to ensure investment decisions are made objectively and in alignment with the association’s goals.
• Use Technology for Centralization: Collaborate with your management company or leverage platforms that consolidate all investment accounts, documents, and reporting into one secure, user-friendly hub. Centralized access improves transparency, streamlines communication, and supports more informed financial decisions.
CONCLUSION
A well-designed investment ladder based on the association’s reserve study helps to ensure that funds are both safe and productive. By strategically aligning maturities with projected expenses, Boards can maximize interest income, reduce the risk of special assessments, and demonstrate prudent financial stewardship to their homeowners.
Partnering with a fiduciary investment advisor who understands HOA reserve planning provides the confidence and structure Boards need to meet both current obligations and long-term goals—without sacrificing yield or liquidity.
In today’s interest rate environment, smart laddering can make the difference between reserves that sit idle and reserves that actively support a community’s financial well-being.
Jessica McConnell is the Founder, Managing Partner, CCO of Capital CS Group, HOA Invest and 1120 Invest.
MEET THE BOARD & COMMITTEE CHAIRS Amanda Gray, VP Client Relations, Harvest Landscape Enterprises, inc.
By Mike Traidman
Amanda Gray is a long-time CAI member with sixteen years of volunteerism for CAI across Southern California. As Chair of the Business Partner Committee, her recent appointment to the National Business Partner Council, and previously a board member at CAI San Diego, she brings a wealth of experience to the organization.
Born in Newport Beach and having lived in both Southern and Northern California, Amanda’s deep roots in the region are evident. She and her husband have been married for nearly 30 years and reside in Temecula. There, they enjoy family life with their two sons in their twenties—one a student hot-air balloon instructor and the other a bartender at the Legoland Hotel.
Amanda’s career journey has been uniquely nontraditional. After attending
"After attending the Fashion Institute with dreams of joining Disney as an imagineer, she found herself working in security before discovering her passion for landscaping. ”
the Fashion Institute with dreams of joining Disney as an imagineer, she found herself working in security before discovering her passion for landscaping. Her dedication led to a significant promotion at Harvest Landscape, where she now plays an integral role on the
executive team. She oversees Harvest’s Coachella Valley operation and steers business growth in Southern California through the strategic use of technology in HOA landscape management.
In her spare time, of which there is little, Amanda likes to go to farmers markets at the beach and loves swimming.
Thank you, Amanda, for chairing this important committee and for being such an involved business partner.
Mike Traidman is a Director of CAI-CV, the President of Mira Vista at Mission Hills HOA, and a Commissioner for the Community Association Managers International Certification Board (CAMICB). Mike can be reached at mtraidman@yahoo.com.
