Joy Marino, CMCA, AMS, Professional Community Management, AAMC
Eric Zarr, CMCA, AMS, FirstService Residential, AAMC
CHAPTER STAFF
Executive Director
Erica Tenney, CMCA, AMS, AAMC
Administrative Assistant
Elda Pfitzinger
MAGAZINE DESIGN
Rial Marketing Communications
CONTACT
Advertising, Articles or Correspondence
CAI-Greater Inland Empire Chapter Headquarters 900 South Main St, Ste 110, Corona, CA 92882 (951) 784-8613 • info@cai-grie.org • cai-grie.org
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 Greater Inland Empire Chapter of the Community Associations Institute.”
elcome to a very special Issue of Connect Magazine – one that not only kicks off 2025 but also commemorates the 35th Anniversary of the CAI-Greater Inland Empire Chapter. This year, we plan to celebrate our legacy by honoring the visionaries who laid our foundation, the volunteers who carry our mission forward, and the innovations that will shape our future in the years to come.
elcome to a very special Issue of Connect Magazine – one that not only kicks off 2025 but also commemorates the 35th Anniversary of the CAI-Greater Inland Empire Chapter. This year, we plan to celebrate our legacy by honoring the visionaries who laid our foundation, the volunteers who carry our mission forward, and the innovations that will shape our future in the years to come.
elcome to a very special Issue of Connect Magazine – one that not only kicks off 2025 but also commemorates the 35th Anniversary of the CAI-Greater Inland Empire Chapter. This year, we plan to celebrate our legacy by honoring the visionaries who laid our foundation, the volunteers who carry our mission forward, and the innovations that will shape our future in the years to come.
s co-editors of CAI-GRIE’s Connect Magazine, we are thrilled to welcome you to this special 3rd Issue of 2025. We continue to celebrate the 35th anniversary of the GRIE Chapter and reflect on decades of dedication to building stronger, more vibrant communities across the Inland Empire— “striking back” against the challenges of modern community living and empowering homeowners, managers, and associations to forge a brighter future together.
Inside this Issue, you’ll find thoughtful guidance on timely topics, like Doug Bickham’s “If Over Ten, Time to Amend,” a must-read for any board considering a governing documents update. We also spotlight the critical intersection of financial planning and compliance in Sean Andersen’s dive into how reserve studies align with Civil Code § 5551.
Inside this Issue, you’ll find thoughtful guidance on timely topics, like Doug Bickham’s “If Over Ten, Time to Amend,” a must-read for any board considering a governing documents update. We also spotlight the critical intersection of financial planning and compliance in Sean Andersen’s dive into how reserve studies align with Civil Code § 5551.
Inside this Issue, you’ll find thoughtful guidance on timely topics, like Doug Bickham’s “If Over Ten, Time to Amend,” a must-read for any board considering a governing documents update. We also spotlight the critical intersection of financial planning and compliance in Sean Andersen’s dive into how reserve studies align with Civil Code § 5551.
This Issue emphasizes forward-thinking themes and the evolving needs of our communities. “Enhancing HOA Curb Appeal and Property Value” offers practical strategies to elevate aesthetics and support long-term investment in our neighborhoods. Building on that foundation, “Layers of Protection: Developing Community Association Security” explores multi-tiered approaches to safeguarding residents and assets in an ever-threatening world.
We look back with pride as we feature reflections from our Hall of Fame Inductees and Past Presidents, and we look forward with increasing purpose through the lens of our 2025 Chapter Goals. We also emphasize the involvement of our members in broader statewide advocacy efforts to protect our communities, as discussed in our first Legislative Update of the year, provided by CAI CLAC’s Legislative Co-Chair, Robert DeNichilo.
We look back with pride as we feature reflections from our Hall of Fame Inductees and Past Presidents, and we look forward with increasing purpose through the lens of our 2025 Chapter Goals. We also emphasize the involvement of our members in broader statewide advocacy efforts to protect our communities, as discussed in our first Legislative Update of the year, provided by CAI CLAC’s Legislative Co-Chair, Robert DeNichilo.
We look back with pride as we feature reflections from our Hall of Fame Inductees and Past Presidents, and we look forward with increasing purpose through the lens of our 2025 Chapter Goals. We also emphasize the involvement of our members in broader statewide advocacy efforts to protect our communities, as discussed in our first Legislative Update of the year, provided by CAI CLAC’s Legislative Co-Chair, Robert DeNichilo.
In the digital realm, our feature on cybersecurity equips associations and their managing agents with essential tools to defend against online threats while more effectively maintaining data privacy and operational resilience. Complementing this, a broad survey of Chapter members highlights how they are adopting or incorporating emerging technologies to advance everyday practices in all aspects of our industry.
This year’s Issues of Connect will continue to highlight best practices, spotlight Chapter contributors, and deliver the tools you need to lead your communities with confidence. Let this edition be a renewed call to action – read, reflect, and engage. The story of our Chapter is still being written, and your voice is an essential part of it.
This year’s Issues of Connect will continue to highlight best practices, spotlight Chapter contributors, and deliver the tools you need to lead your communities with confidence. Let this edition be a renewed call to action – read, reflect, and engage. The story of our Chapter is still being written, and your voice is an essential part of it.
Together, these articles showcase not only innovative solutions but also the resilient ethos of our Chapter. As the Inland Empire strikes back, harnessing creativity, collaboration, and cutting-edge technologies, we continue to “stay on target” to move the Chapter forward into excellence!
This year’s Issues of Connect will continue to highlight best practices, spotlight Chapter contributors, and deliver the tools you need to lead your communities with confidence. Let this edition be a renewed call to action – read, reflect, and engage. The story of our Chapter is still being written, and your voice is an essential part of it.
Here’s to our past, present, and promising future – together.
Here’s to our past, present, and promising future – together.
Here’s to our past, present, and promising future – together.
AJ Jahanian
AJ Jahanian
AJ Jahanian
A.J. Jahanian, Esq.
D. Heaton
D. Heaton
D. Heaton
A.J. Jahanian, Esq.
A.J. Jahanian, Esq.
Committee Co-Chair and Co-Editor in Chief
Committee Co-Chair and Co-Editor in Chief
Committee Co-Chair and Co-Editor in Chief
Daniel Heaton, Esq.
Daniel Heaton, Esq.
Daniel Heaton, Esq.
Committee Co-Chair and Co-Editor in Chief
Committee Co-Chair and Co-Editor in Chief
Committee Co-Chair and Co-Editor in Chief
Celebrating
CAI–GREATER INLAND EMPIRE
GREG BORZILLER
CMCA, CIRMS
The CAI–Greater Inland Empire (GRIE) Chapter 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.
EVENTRECAP COUNTRY FAIR –“BASH AT THE BARN”
BY DESIREE NOBLE, NPG ASPHALT
Country Fair Committee
This year’s Country Fair at The Barn at the Ingalls Event Center in Norco was an absolute triumph, bringing together a vibrant community for an unforgettable evening of fun, food, and fantastic company.
The night kicked off with spirited line dancing lessons, a first for our event, which had everyone on their feet and moving to the rhythm. The enthusiastic feedback has already inspired plans for longer sessions next year. So, be ready to dance even more!
Guests also enjoyed classic games like cornhole, while the Booze Walk offered a playful twist on musical chairs. The photo booth captured countless joyful moments throughout the evening, and the chili cookoff was a true highlight, showcasing culinary talents and further igniting friendly rivalry among participants.
The atmosphere was elevated by Daniel Bonte & The Bonifide, whose live performance kept spirits high and toes tapping throughout the evening. Food from Stonefire Grill was another standout, as guests savored mouthwatering pulled pork, BBQ chicken, fresh salad, and creamy garlic mashed potatoes. To round everything out, an array of delightful cookies and cupcakes satisfied everyone’s sweet tooth.
With 140 guests in attendance, the event offered gorgeous views, warm company, and plenty of networking opportunities. The new location received rave reviews, perfectly capturing the rustic charm we hoped to achieve.
Overall, the Country Fair was a fantastic success, and we can’t wait to see everyone again next year for even more fun and festivities!
Chili Cook-off Winners - 1st Place: Nick Mokhlessin (right), 2nd Place: Kristina Butler, Park West Landscape and 3rd Place: Jay McGuire, FirstService Residential (left)
Chili Cook-off Winner Nick Mokhlessin, Everthrive Landscape
JUNE 11TH EDUCATIONAL LUNCHEON
BY VERONICA MONEY, GOLD KEY ASSOCIATION MANAGEMENT AND MALLORY PAPROTH, SCT RESERVE CONSULTANTS
It was a perfect day in Temecula as members gathered at Europa Village Winery & Resort for the June 11th luncheon. Guests enjoyed a charming outdoor meet-and-greet with tabletop exhibitors before heading inside to celebrate CAI-GRIE’s 35th Anniversary. Several Past Presidents and Hall of Fame members joined in the festivities, adding to the sense of occasion.
The education program featured speakers Veronica Money, Mallory Paproth, and Brian Berce, who shared expertise on budget preparedness, reserve studies, and the role of insurance in financial planning. Together, they tied these topics into a comprehensive look at smart budgeting for associations.
Attendees enjoyed a delicious BBQ lunch, paired with the winery’s beautiful setting, making the celebration even more memorable.
(l to r): Matt Ober, Esq. Past President and Hall of Fame, Executive Director, Erica Tenney, Matthew Gardner, Esq..
Managers Can Use Free AI Tools to Save Time & Communicate Better
You don’t need expensive software to benefit from AI. Here’s how HOA managers can use free, simple AI tools to make their job easier, communicate more effectively, and save valuable time each week.
From personal experience, I have used ChatGPT when drafting emails to homeowners who are concerned about an issue. It helps keep my tone soft and compassionate while still being clear and professional. This has not only saved me time but also helped ensure my communications come across the correct way.
When using AI tools like ChatGPT, do not include any private, confidential, or sensitive information such as homeowner names, addresses, account numbers, or other identifying data. Always generalize your input to comply with company and legal standards.
1. Write Better Letters and Emails
Use free tools like ChatGPT or Grammarly to draft clear, respectful letters.
Ask AI to adjust tone (e.g., ‘more friendly’ or ‘more formal’).
Save time on notices, follow-ups, and resident emails.
2.
Answer Common Questions Faster
Use AI to create templates for FAQs (trash, parking, ARC requests, etc.).
Paste and personalize replies instead of typing from scratch.
3. Stay Organized
Ask AI to summarize meeting notes or prioritize weekly tasks. Use it to create checklists, reminders, and outlines quickly.
4.
Help with Tone and Tough Messages
Paste your draft into ChatGPT and ask it to soften or clarify tone. Helps avoid sending messages that sound defensive or harsh.
5.
Build Newsletters and Reminders Faster
Provide a few bullet points to draft a seasonal update or monthly summary.
Save time while keeping communications clear and personal.
Free Tools to Try
ChatGPT (https://chat.openai.com)
Grammarly (https://www.grammarly.com)
Google Docs Smart Compose
Otter.ai for meeting transcription
Notion AI for quick lists and notes
Start small: Use AI to draft one letter or one newsletter item. You’ll be surprised how much time and stress it can save, even using just a few minutes each day.
THE INSIGHT CORNER
VOICES FROM THE CHAPTER
Incorporating Emerging Technologies in Our Business
“Technology is pretty crazy these days. With the use of AI and all the different apps that we have now at our fingertips, it takes away a lot of the human touch. I use ChatGPT to help me refine important replies to clients, but I don’t rely solely on it because I personally feel like it takes away the human factor. I use voice recordings for Notes. The technology that allows us to reply and send emails on our phone these days is a game changer.”
“ “ “ “ “ “ “ “
“We use technology in many capacities within our company. We have used ChatGPT to fine tune our communications in all functions. We have used many platforms to organize our clients and business management. We use intra-office communication programs to stay in the loop with others in our company and to help keep our services streamlined nationally. We truly welcome new technology to grow our business.”
whenever they need them. The result is less stress from uncertainty, better awareness of project details, and smoother communication between residents, management, and our staff.”
Isaac Camacho, Accurate Termite & Pest Control
Snap Survey
MAY 2025 | 478 Respondents
If yes, which AI applications are you using?
80% Large Language Models (ChatGPT, CoPilot, Google Bard/ Gemini)
51% AI for meeting summaries (Zoom Assistant, Otter, Other)
Common Trends: Grammarly/Grammerly, Stan/Stan Intelligence, HOAi/HOAI, Grok, Vantaca Scout & IQ, Microsoft Word and Outlook (AI integration)
If no, what best describes your future for AI adoption?
34% I am not interested in using AI I am researching AI options
37% Unsure
17% I plan to start using AI in the next 12 months
12% I am not interested in using AI
How often do you use AI in your community or to serve your community clients?
29% Every day
Occasionally
Rarely
Never
How comfortable are you using AI in a professional setting?
28% Very comfortable
33% Somewhat comfortable
24% Somewhat hesitant
16% Very hesitant
Snap Survey
MAY 2025 | 478 Respondents
What areas of your community or work have benefited from AI?
80% Communication (email responses, resident interactions)
35% Event planning and announcements
26% Contract review and RFP development
22% Resident or stakeholder education
22% Other
16% Financial management (budgeting, reporting)
8% Predictive maintenance
Common Trends: No Use of AI / Not Yet Used, Document-Related Tasks, Operations & Administration, Research & Learning, Critical or Skeptical Comment
How effective do you find AI?
45% Somewhat improves productivity
38% Significantly improves productivity
15% No noticeable change
3% Decreases productivity
What concerns do you have about using AI?
63% Data security and privacy risks
55% Lack of training or knowledge
48% Putting proprietary content in the public domain
37% Ethical concerns (bias, transparency)
21% Lack of clear benefits
21% Potential job displacement
20% High costs of implementation
15% Other
Common Trends
• Accuracy and Trust Concerns: Respondents questioned the reliability of AI-generated content, citing errors, the need for fact-checking, and potential misinformation or hallucinations.
• Lack of Knowledge or Training: There’s a clear gap in understanding how to effectively use AI. Users noted a steep learning curve, low awareness, and insufficient training.
• Ethical and Privacy Issues: Concerns were raised about data privacy, bias in AI systems, transparency of algorithms, and fears of proprietary information being exposed.
• Job Displacement and Overreliance: Some worry about AI replacing human roles—particularly in tasks like writing, legal review, and financial reporting—and that it may discourage critical thinking or promote laziness.
Common Trends: No or limited use of AI, Document creation & editing, Workflow & process automation, Search & research assistance, Communications & engagement, Accuracy, trust, and reliability concerns
What additional support would you need to adopt AI?
80% Training programs
50% Cost-benefit analysis tools
49% Case studies or success stories
26% Vendor recommendations
11% Other (please specify)
Common Trends
• Training and Education: There is a need for more training and education on how AI tools work, how to effectively use them, and how to integrate them into workflows, particularly for staff and community managers.
• Ethical and Legal Concerns: There is concern about the ethical implications of AI, including privacy, data security, accuracy, and the potential for bias.
• Trust and Accuracy: Ensuring the accuracy and reliability of AI outputs is a key concern
• Cost and ROI: Cost-effectiveness and demonstrating a solid return on investment (ROI) are crucial. Respondents want to understand the financial impact and benefits of adopting AI tools in their operations.
Have you experienced any abuse of AI in your work?
continued on page 14
Snap Survey
MAY 2025 | 478 Respondents
How satisfied are you with your current AI tools?
If you use AI-generated content, do you disclose its origin?
What do you think the long-term impact of AI will be on community associations?
Are you concerned about AI replacing the services you or your company provide?
Do you believe regulations are necessary to guide AI use in community associations?
What do you think are the most significant ethical concerns related to AI in community association governance and management?
38% Bias and discrimination in AI decision-making
70% Privacy and data security risks
49% Lack of transparency in AI-generated decisions
21% Potential job displacement in the industry
68% Over-reliance on AI, reducing human oversight
42% Ethical use of AI in resident communications and enforcement actions
75% Accuracy and misinformation risks in AI-generated content
57% Accountability—who is responsible for AI-driven decisions?
3% Other
Common Trends:
• Human Accountability: Users, managers and boards, should remain accountable for the work they do, even if AI is used as a tool. This reflects a concern that AI should not replace human oversight and decision-making.
• Privacy and Security Concerns: denItity theft and concerns about data ownership, particularly if a “digital twin” (AI representation) remains after someone leaves. These concerns point to the need for strong security measures and clear privacy policies.
• Loss of Personal Touch: Concern that AI’s involvement might diminish the human connection in HOA management, particularly in areas like communication and decisionmaking, where emotion and personal touch are important.
foundation.caionline.org | (888) 224-4321
Celebrating
Spotlight on Hall of Fame Inductees and Chapter Past Presidents
2025 marks the 35th Anniversary of the Greater Inland Empire Chapter and in each issue of Connect this year, we will feature long-standing members who will share some memories. In this issue, Past President Peter Racobs, Esq. shares perspectives and memories over the years. We will continue to spotlight Hall of Fame Inductees and Chapter Past Presidents in each Connect Issue during this special year of celebration.
Peter E. Racobs, Esq.
Fiore Racobs & Powers, A PLC
Founding Member of CAI-GRIE, the Chapter’s first President, and a Hall of Fame Inductee
Favorite memory of involvement with CAI?
The people I worked with during the founding of the chapter; they were fun to meet with while we worked together on a lot of issues.
Benefits CAI brings to the industry?
A level of interaction and professional interaction for volunteers who would otherwise be isolated in their individual communities.
How did you grow/how did service in your role change you and make you better?
Being on chapter board is similar to jury duty in a way. You are exposed as a volunteer to another side of your professional occupation, and you learn to see issues from another angle.
How has the industry changed from when you first became involved—how is it different now?
Over the last 40 years the law governing CIDs has become much more complicated. Not better laws for the most part, unfortunately, but more burdensome ones.
Main things you’ve learned from your involvement?
Our industry is unique. Its reliance on volunteers to govern their associations in such a complex field with many millions of dollars in property value at stake requires professional support as well as volunteer support such as CAI provides.
Curb appeal plays a crucial role in the value and desirability of homes within an HOA. One of the most effective yet often overlooked ways to enhance curb appeal is through strategic exterior lighting. Whether it’s pathway lighting, garden lights, or illuminated address signs, the right lighting not only improves the aesthetic appeal of a community but also increases property values and enhances safety. Investing in high-quality, made-to-order products, rather than mass-produced big-box store items, ensures durability, reliability, and a unique charm that sets an HOA apart.
THE IMPACT OF EXTERIOR LIGHTING ON CURB APPEAL
Well-planned exterior lighting highlights the architectural beauty of homes, common areas, and landscaped spaces. The warm glow of properly placed lights creates an inviting atmosphere, making a community look wellmaintained and upscale. The right lighting design can:
• Accentuate landscaping elements, such as trees, flower beds, and walkways;
• Highlight architectural details of homes, giving them a refined, polished look;
• Make driveways, pathways, and entryways more inviting and user-friendly at night;
Enhancing HOA Curb Appeal and Property Value with Quality Exterior Lighting
BY RICK ARCHER, AMERICA’S FINEST MANUFACTURING CO.
• Improve visibility and enhance security, deterring potential intruders; and
• For HOAs looking to elevate their community’s aesthetic, provide a surefire way to leave a lasting impression on visitors and potential buyers with high-quality exterior lighting.
THE ROLE OF PATHWAY LIGHTING IN SAFETY AND AESTHETICS
Pathway lighting is both functional and visually appealing. Well-lit walkways provide safe passage for residents and visitors, reducing the risk of trips and falls. At the same time, stylishly designed pathway lights contribute to the overall look of a property. Choosing high-end, made-to-order pathway lights ensures they blend seamlessly with the community’s architectural theme and landscaping design. Unlike mass-produced options found in big-box retailers, custom lighting solutions offer:
• Superior craftsmanship and durability.
• Higher quality materials that withstand outdoor elements.
• Unique designs that add character and exclusivity to a neighborhood.
• Investing in quality lighting over cheap alternatives means fewer replacements and long-term savings for the HOA and homeowners.
GARDEN LIGHTING: SHOWCASING
LANDSCAPES AFTER DARK
Garden lighting enhances the beauty of green spaces, allowing residents to enjoy their outdoor areas well into the evening. Strategically placed lights can highlight flower beds, ornamental trees, and water features, creating a tranquil and picturesque setting.
Premium garden lighting offers:
• Enhanced brightness and efficiency without excessive energy use.
• Resistance to weathering and fading.
• Customizable designs that align with the HOA’s landscaping vision.
• In contrast, lower-quality products from big-box stores often use subpar materials that degrade quickly, requiring frequent replacements that cost more in the long run.
LIGHTED ADDRESS SIGNS: A FUNCTIONAL AND STYLISH ADDITION
Illuminated address signs are a practical and aesthetic upgrade for any HOA community. They provide a sophisticated touch while ensuring that homes are easy to locate at night, benefiting guests, delivery drivers, and emergency responders.
Premium, custom-made address signs offer:
• High visibility with clear, bright lighting.
• Durable, weather-resistant materials that maintain their appearance over time.
• Customization options to match the architectural style of the community.
• Cheaply made address signs, often found in big-box stores, tend to have weaker illumination, flimsy construction, and generic designs that lack the refinement of high-end options.
AMERICAN-MADE PRODUCTS VS. IMPORTED ALTERNATIVES
When selecting exterior lighting, it’s important to consider the origin and craftsmanship of the products. American-made lighting solutions generally offer superior quality compared to mass-produced imports from countries like China.
Benefits of choosing American-made products include:
• Higher Standards: U.S. manufacturers adhere to stricter quality and safety regulations.
• Better Materials: Domestic products often use premium metals, glass, and LED components that last longer and perform better.
• Customization: Many U.S. manufacturers provide made-to-order options that allow for unique, HOA-specific designs.
• Supporting Local Economy: Purchasing American-made products supports domestic jobs and local businesses, contributing to economic growth.
• While imported products may be cheaper upfront, they often lack durability, leading to premature failures and increased long-term costs.
INVESTING IN LONG-TERM VALUE
For HOAs committed to maintaining and enhancing property values, investing in high-quality, made-to-order exterior lighting is a wise decision. Well-designed and well-placed lighting not only enhances the beauty of a community but also improves safety, security, and overall livability.
Rather than opting for mass-produced, low-quality fixtures, choosing custom, American-made lighting ensures long-lasting performance, aesthetic appeal, and a unique identity for the neighborhood. With the right lighting strategy, an HOA can create a welcoming and visually stunning environment that attracts homebuyers and fosters community pride for years to come.
Rick Archer is the Community Marketing Director for America’s Finest Manufacturing Co.
WINE TOUR
BY SAVANNA LIVINGSTON, SPECIAL EVENTS CO-CHAIR
Our June 27th Wine Tour was a day to remember! The adventure began with a bus pick-up in Norco, where members enjoyed breakfast burritos and morning beverages on the ride down to Temecula to meet the rest of the group.
The first stop was Monte De Oro Winery, where guests took in stunning views and sampled exceptional wines. From there, the tour continued to Masia De La Viña for lunch. Even with a brief hiccup in the lunch lines, spirits stayed high and the good times rolled on.
The day wrapped up at Europa Village, where our generous business partners, including Painting Unlimited, Park West Landscape, and Environmental Concepts Landscape, treated everyone to delicious food to ensure no one was left hungry.
The event was a huge hit, filled with laughter, great wine, and wonderful company. We’re already looking forward to next year’s Wine Tour, so sign up early so you won’t miss it!
Europa Village
Masia de la Vina (l to r): Lauren Baker, Bridget Dolan, Holly Dillenbeck, Erica Tenney and Desiree Noble
A CASE FOR RADICAL TRANSPARENCY
BY SARAH KARLOVIC, CMCA SEABREEZE MANAGEMENT COMPANY, INC.
Sometime between when I started in this industry in 2009 and today, it became socially acceptable (maybe even trendy) to regard HOAs and anyone affiliated with them with blatant disdain. TikToks mock HOA enforcers, “Defund the HOA” lawn signs pop up, and horror stories go viral across social media. At a time when our country is more politically divided than ever, one sentiment seems to cross party lines: “HOAs are awful.”
For those of us who have dedicated our professional lives to this industry, these attitudes provoke eye rolls, groans, and sometimes outright indignation. When I watched John Oliver’s segment on HOAs, I found myself shouting at the television: “That’s not entirely true!” and “Actually, that’s not how that happens!”
A truth occurred to me then, and it continues to shape my daily approach to management: The space between disdain and understanding is often filled not with facts, but with a lack of information. And when information is absent, people will almost always fill the gap with stories that confirm what they already believe: that HOAs are just a collection of Karens.
My approach to pushing back against the HOA hate mob is built on a simple principle: radical transparency
A Turf War at Rosena Ranch
Earlier this year, Rosena Ranch began its AB-1572 turf removal project. The project had been included on Board meeting agendas for several months and e-blasts were sent to the community to inform them about the project. Yet, the moment grass began to brown, misinformation started to spread.
Wild accusations flew: the Board had ties to the landscaper, AB-1572 didn’t apply to “communities like ours,” Management was taking kickbacks, and the newest tagline appeared, “Defund the HOA, keep our grass.”
In response, I wrote an article titled “Rumor Has It – Grass Edition.” In it, I addressed each fantastical story head-on. We distributed it by e-blast, posted copies at cluster mailboxes, and taped it in the clubhouse gym. I clarified, among other things, that while AB-1572 does contain exemptions, Rosena Ranch does not have the infrastructure for reclaimed water; and no, I cannot arrange for someone to dig a well in the common area.
To reinforce the message, I invited the Association’s attorney to the next Board meeting. Word on the streets (Nextdoor and Facebook) led me to believe they planned to storm the clubhouse. Instead, when the night of the meeting came, it was one of the most highly attended meetings
in recent memory. Everyone filed in. The attorney explained the legality of AB-1572. The landscape company presented the digital renderings of the finished project and answered questions. Volunteer forms for the landscape committee were ready at the sign-in table. The Board and I closed by encouraging residents to channel their passion into participation, reminding everyone that strong communities are built by engaged members, not conspiracy theories.
I also addressed the community’s informal Facebook page, explaining that while it may be excellent for posting lost pets or a lawnmower for sale, it is not a reliable source of information on HOA governance. The three-pronged approach of addressing misinformation, replacing it with accurate information, and inviting passionate residents to have a seat at the table, was effective in calming tensions. Homeowners left feeling heard and informed, and many committed to continued involvement, including attending meetings moving forward.
Transparency as a Management Tool
When I train new managers, I explain the fury fueled by misinformation as a tug of war between homeowner and management. The more information we withhold or delay, the harder the homeowner will pull. Handing over all available information is like dropping your end of the rope. With nothing left to pull, the struggle ends.
While I can’t control the broader anti-HOA narrative on social media, I can shape the experience of the community I manage. Radical transparency, proactive communication, and honest engagement create trust. These keys build communities where the story isn’t about conspiracy, but about collaboration.
Sarah Karlovic, CMCA is the General Manager of Rosena Ranch, a 2,000-lot master planned community in San Bernardino County. (sarah.karlovic@seabreezemgmt.com).
CAI-CLAC ADVOCACY UPDATE: OCTOBER 2025 LEGISLATIVE UPDATE
On Saturday, September 13, 2025, the California Legislature adjourned the first year of the 2025-2026 Legislative Session. Hundreds of the remaining bills passed by the Senate and Assembly were presented for Governor Newsom’s review to be signed or vetoed. Governor Newsom had until October 13, 2025 to act. Here’s an update on how everything turned out:
SB 770 (Allen), would eliminate the requirement for HOA members installing EV chargers in common areas to name the association as an additional insured. Despite discussions with the Senator, we were unable to secure significant amendments before the deadline. The bill passed the Assembly and, despite a submitted veto request by CAICLAC, was signed by the Governor. Effective 1/1/2026.
SB 625 (Wahab), proposes a streamlined architectural review process for rebuilding after natural disasters. After productive discussions, the bill’s scope was limited to actual disaster-related events, and CAI-CLAC moved to a neutral position. The bill passed the Assembly and was signed by the Governor. Effective 1/1/2026
SB 547 (Perez), this bill adds commercial property with policy limits of $10,000,000 or more to the cancellation moratorium list. CAI-CLAC took a support position. The bill passed the Assembly and was signed by the Governor. Effective 1/1/2026
SB 410 (Grayson), would require inspectors to include specific information on the cover page of balcony inspection reports. CAI-CLAC did not take an active position. The bill passed the Judiciary Committee and was added to the consent calendar and heard on the Assembly Floor without further debate. The bill was signed by the Governor. Effective 1/1/2026.
SB 282 (Wiener), would void any CC&Rs provision that prohibits the installation of an electric heat pump. This bill was held in the Senate Appropriations Committee and did not move any further this session. However, it can be taken up when the legislature reconvenes in January 2026.
SB 677 (Wiener/Wicks), sought to prevent homeowner associations from imposing CC&Rs that prohibit or unreasonably restrict housing developments or urban lot splits on single-family zoned districts statewide. CAI-CLAC opposed. This bill did not make it out of the Housing & Community Development and Judiciary Committees.
AB-21 (DeMaio), sought to make unnecessary changes to 14 sections of the Davis-Stirling Act and add two new sections dealing with association management and meeting procedures, most of which would drastically increase cost and exposure to litigation. CAI-CLAC opposed. This bill failed passage in the Assembly Housing & Community Development Committee.
AB 942 (Calderon), would have reduced the contract for Net Energy Metering rates for those associations that installed solar from 20 years to 10 years. This section of the bill was deleted, and CAI-CLAC then moved to a neutral position. The bill was referred to the Senate Appropriations Committee Suspense File and re-referred to the Senate Committee on Rules.
SB 681 (Wahab) / AB 130 (Committee on Budget), proposed a $100 cap on HOA fines, with an exception for violations that pose a health or safety risk. The bill was signed into law on June 30, 2025, and took effect immediately. CAI-CLAC is already engaged in conversations on how to address these issues, which will be a top priority in the next legislative session. Member engagement will be critical moving forward. Signed and effective immediately.
Even though the Legislature is on recess, it is essential we continue to engage with lawmakers, apply pressure, and advocate for our communities. HOAs play a critical role in providing affordable, wellmaintained, and community-oriented housing to millions of Californians, and we must ensure legislators understand their value and avoid unfairly targeting them.
BREAKING LEGISLATIVE UPDATE
AB 130 – New State Law Imposing $100 Cap on Most Violation Fines
On June 30, 2025, Governor Newsom signed AB 130 into law as part of the state budget approvals. Among its provisions is a new statewide cap of $100 per violation for most disciplinary fines imposed by California community associations. The law permits a limited exception for violations documented to pose an “adverse health or safety impact on the common area or another association member’s property.”
AB 130 also tightens enforcement procedures: members must be allowed to cure violations or present a financial commitment in lieu of a hearing, and hearing decisions must be issued within 14 days
This law will likely require associations to change the way they approach enforcement of their governing documents, potentially shifting the focus from deterrence to more costly measures, such as litigation in complex cases. Because each community’s governing documents and circumstances differ, boards should promptly review this development with their association’s legal counsel
This summary is provided for informational purposes only and is not legal advice For guidance specific to your association, please consult your legal counsel.
LEGISLATIVE VISITS: WHAT YOU NEED TO KNOW
BY KIMBERLY LILLEY, CIRMS, CMCA
If you have ever been impacted by a new bill passed by the California legislature, and if you wished that someone had put a stop to it, then this article is for you.
One of the best ways to impact legislation and legislative priorities at the Capitol is to meet with your legislators and let them know how current laws and proposed bills impact you as one of their constituents. Building relationships with legislators and becoming a resource for them is an integral part of the work CAI does through both its California Legislative Action Committee (CLAC) and the Chapter’s Legislative Support Committee.
Here are a few tips for preparing to visit with legislators:
• You can learn who your local legislators are by going to CAICLAC.com and clicking on “Legislative Advocacy.” There are many resources under the “Contact Your Legislator” tab, including a “lookup” tool.
• From there, it’s an easy internet search to find your legislators’ websites and often a way to set an appointment with your legislator. Throughout the year, legislators are usually in their districts on Fridays. Right now, there is an even greater likelihood because they are on recess until January 2026.
• When you arrive for a meeting with your legislator, you may actually be meeting with a member of their staff. THIS IS NOT A BAD THING. Staff are the ones who read all the bills and make recommendations to the legislator on how they should vote, or what issues they should
negotiate. Staff often continue to have an ongoing presence in a district office, even though the legislators themselves come and go based on re-election results or if they eventually term out. Meeting with staff is a solid investment in getting your message where it can make an ongoing difference.
• Before the appointment, meet with the other CLAC or LSC members involved in the legislative visit and decide who will be the “point person” on each bill/topic you plan to discuss. It is often easier for the legislators to follow if they can actively listen to one main person, with quick examples and helpful comments added by the other attendees. Stick to the message provided by CLAC; if you have other information you’d like the legislator to have, save that for a separate appointment when you’re not there representing CAI.
• Confirm the time and who you will be meeting with the day before, as legislative schedules often change at the last minute.
• Make sure you have up to date information on the bills/topics you want to discuss. Remember that if you are meeting with an Assemblymember and plan to discuss any bills that have already passed the House and are now in the Senate, you should know how the Assemblymember voted. Don’t dig deep into bills where they have already voted. Instead, focus your time on bills that are headed to a committee that the Assemblymember sits on or that are about to have a floor vote in their chamber. You can find online where a bill stands in the process and investigate what committees the Assemblymember is assigned to on their website.
• In the meeting, start with the basics: “Have you had experience with a community association or HOA before?” You will often discover that they know very little about community associations and how they function, and you may need to go over some foundational concepts like how associations budget and assess for actual costs. If they have had a bad experience or need advice about their own HOA, offer to connect them with professionals who can help.
• Be sure to ask for business cards from everyone you meet so it is easy for each person on your visiting team to follow up with a “thank you” email after the meeting. Ask for a photo with the legislator or staff member. This can be posted to social media along with your thanks, and then you can tag the legislator.
• In general, the goal is to become a valued resource of that legislative office for all things HOA. If you build that type of relationship, when they come to you for information, you can candidly advise them from the truth, as opposed to the spin they often get from special interests.
In addition to scheduling appointments, you can also attend planned events and open houses hosted by your legislators. Go to their website and register for their email list. This will keep you informed of what is important to them, what they believe is important to their constituents, and when they have scheduled events. When you attend, be sure to introduce yourself to the legislator and also the staff member in charge of housing. Again, ask for their business cards and let them know you will follow up to schedule an appointment when they will have more time to talk.
Legislative visits are imperative to your becoming a true relied-upon resource for legislators that represent your community. It takes people who are knowledgeable about community associations to truly understand the actual impact of legislation. An effective legislative meeting can help focus that information and deliver it to legislators in a way that benefits ALL communities throughout the state.
Legislative Visit at Office of Assemblymember Natasha Johnson
On September 17, 2025, members of the Chapter’s Legislative Support Committee (LSC), Betty Roth, Patrick Gabriele, and Robert Riddick, had the pleasure of meeting with Casey Deaver, representing Assemblymember Natasha Johnson, at her District Office in Corona.
Assemblymember Johnson was elected on August 26, 2025, to represent the 63rd District following the resignation of Bill Essyli, who was appointed acting United States Attorney for the Central District of California. Prior to joining the Assembly, Ms. Johnson served on the Lake Elsinore City Council, including four terms as Mayor.
Discussions with Mr. Deaver addressed recently enacted AB 130, as well as ongoing Call to Action regarding SB 770. We were encouraged to learn that Assemblymember Johnson had voted against SB 770 on the Assembly floor. The Committee emphasized the role of CAI, the makeup of its membership, and the valuable resources that both the Chapter and the LSC can provide for the Assemblymember and her staff.
With respect to AB 130, Mr. Deaver was sympathetic to the negative implications on community associations statewide. Patrick provided real-world examples of problems already emerging in nearby communities, while Betty highlighted the chilling effect the law has had on boards by capping fines at $100, leading some “bad actors” to take undue advantage of the system to try to avoid noncompliance by viewing it as a “cheaper alternative” to following the governance rules of their associations. Mr. Deaver assured the Committee that he would relay these concerns to Assemblymember Johnson and noted her openness to considering corrective amendments in the near future.
The Committee also indicated that we would send Mr. Deaver a Chapter calendar of events, identifying opportunities for the Assemblymember and her staff to engage directly with our membership. He confirmed that the Assemblymember would welcome receiving the calendar and future participation.
The meeting concluded on a constructive note. Committee members thanked Mr. Deaver for dedicating ample time to hear our concerns and learn more about CAI’s mission. He, in turn, expressed appreciation for the Committee’s outreach and affirmed his interest in maintaining an open line of communication with our Chapter. Before departing, the Committee joined Mr. Deaver for a few photos (shown here).
This meeting marked an important step in establishing an early relationship with Assemblymember Johnson and her staff, as well as reinforced the Chapter’s commitment to serving as a trusted resource on legislation affecting California’s community associations, particularly in the Greater Inland Empire.
Kimberly Lilley, CIRMS, CMCA, is the Chair of the CAI-CLAC Insurance Task Force (Kimber4Lilley@ gmail.com).
(l to r): Betty Roth, Casey Deaver, Robert Riddick, and Patrick Gabriele
JULY EDUCATIONAL LUNCHEON: EMPOWERING HOA LEADERSHIP
BY SCOTT SEARS, REGIONAL DIRECTOR OF ACTION PROPERTY MANAGEMENT
On a sunny July 9th, more than 110 board members, managers, and business partners gathered at the Ingalls Event Center in Norco for a power-packed morning of learning, laughter, and leadership. The setting was inviting, the energy was high (at least until the Italian lunch was served), and attendees settled in for an engaging presentation titled “Empowering HOA Leadership: Tools, Training, and Teamwork.”
From the start, it was clear this wouldn’t be a typical lecture on bylaws and budgets. Framed with humor, honesty, and a few “soapbox” moments, the program tackled serious leadership responsibilities while reminding us why we do this work: to help homeowners love where they live.
The session dove deep into the essentials of HOA governance: fiduciary duties, committee engagement, financial responsibility, and communication strategies. Slides covered everything from Corporations Code § 7210 to the importance of starting open board meetings on time. A central theme? Great leaders don’t just make decisions; they
build others up, leading them toward success that ultimately reflects back on the association.
Real-world examples of fiduciary duty, conflict resolution, and financial transparency made the concepts both accessible and actionable. Attendees laughed, nodded, and scribbled down favorite one-liners such as: “Leadership has a ripple effect; your effectiveness impacts hundreds of homes and lives.”
The event wasn’t just about checklists and codes; it was about heart. Community managers were reminded to lead with empathy, board members were encouraged to ask questions, and everyone was challenged to invest in leadership like they would reserves.
As the event wrapped up with Q&A and networking, one thing was clear: the commitment to strong, ethical, and effective HOA leadership is alive and well in the Inland Empire. With tools like CAI, local mentorship, and collaborative education events, the future of community governance is looking brighter than ever!
Speakers (l to r): Robert Riddick and Scott Sears
FINAL SCORE AT ANGELS NIGHT? GRIE HITS IT OUT OF THE PARK! EVENTRECAP
What a night to remember! On July 25, our CAI-GRIE crew came together at Angel Stadium to cheer on the Angels as they faced off against the Seattle Mariners. Many arrived early enough to snag the coveted Zach Neto bobblehead, the perfect keepsake to kick off the evening.
From the first pitch to the last, members enjoyed the game in their own way: some explored the stadium and soaked in the lively atmosphere, while others settled in to watch each play with intense focus.
The excitement peaked in the 10th inning when none other than Zach Neto, our bobblehead hero, sealed the night with a dramatic walk-off home run. The crowd went wild, and it was the perfect ending to an evening of great baseball and even better company.
More than just a game, it was a night of shared memories and laughter that captured the true spirit of our Chapter community.
LAYERS OF PROTECTION:
DEVELOPING COMMUNITY ASSOCIATION SECURITY
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 high-crime 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 behindthe-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, Allied Universal Security Services, can be reached at 714.453.7450 or Britain.rome@aus.com.
Protect the Well-Being & Stability of Your Community
Worried About AB130?
Weakened enforcement could lower property values and harm neighborhood conditions. Every Community Association in California is at risk.
Why Your Involvement Matters
Without strong advocacy, har mful legisla tion like AB130 will continue to pass unc hec ked.
CAI and the Ca lifor nia Le gisla tive Action Committee (CLAC) fight for fair, ba lanced laws tha t protect homeowner s and communities. By joining CAI-GRIE, you gain a voice in sha ping legisla tion tha t directly impacts your community.
Don’t Have Time to Advocate?
We under stand. Tha t’s why we do it for you. But we can’t do it without your suppor t. For just $1 per door, per year, your community can:
Help fund vita l advocacy ef for ts in Sacramento
Ensure both the pros and cons of legisla tion are heard
Protect the sta bility and future of Ca lifor nia’s
CID communities
AUGUST EDUCATIONAL LUNCHEON: ASK THE ATTORNEYS
Our August 13th “Ask the Attorneys” luncheon at the DoubleTree Ontario brought together four industry-leading legal experts to tackle real-world association challenges and share the latest legislative updates.
• James R. McCormick, Jr., Esq. explored neighbor-to-neighbor disputes, harassment issues, and association communication concerns.
• Sandra Gottlieb, Esq. covered landscaping law compliance along with updates on electronic voting and election reform.
• Steven Roseman, Esq. discussed Fair Housing requirements for reasonable accommodations and modifications, and emphasized the importance of clear contract provisions.
• Alison Greiner, Esq. addressed tough enforcement scenarios, including hoarding, habitual rule breakers, and unapproved improvements, as well as the impacts of recently adopted AB 130.
Attendees engaged in a lively Q&A session, tackling practical situations such as fireworks violations by board members, contract approval disputes, budget reallocations, capital improvement classifications, and HOA safety concerns.
The program proved both insightful and interactive, leaving attendees better equipped to navigate complex legal issues in their communities. Keep an eye out for upcoming articles from our panelists in the next issue of Connect Magazine.
(l to r): Speakers James McCormick, Sandra Gottlieb, Alison Greiner, and Steven Roseman
CCybersecurity Essentials for Communities
BY DANIEL C. HEATON, ESQ. OF DENICHILO LAW, APC
ommunity association managers are no longer just caretakers of budgets, board meetings, and maintenance contracts. They are also stewards of highly sensitive and personal homeowner information. When that data is compromised, the financial and reputational fallout can be devastating.
Consider this scenario:
A management company employee clicks on a phishing link. Within hours, the company’s cloud-based email system is breached, exposing hundreds of homeowners’ banking details. The company is now legally required to notify every affected owner, regulators are involved, and both the association and management’s reputations are in jeopardy. This isn’t hypothetical. In today’s digital world, this has become a common business risk . With cyberattacks on the rise and California’s privacy laws tightening, community managers and management companies must take proactive, documented steps to protect homeowner information and reduce legal exposure.
This article examines what the law requires, what smart cybersecurity looks like in daily operations, and how boards and managers better protect their teams and communities.
Why Cybersecurity Must Be a Core Concern
Cybercriminals target businesses of all sizes, and management companies are no exception. From payment portals to email correspondence, companies routinely collect and store a wide range of personally identifiable information (PII). A single breach can result in significant repercussions, including legal liability under California’s Consumer Privacy Act (CCPA), substantial financial costs related to notifications, recovery, and litigation, and severe reputational damage to both the company and the association. Despite these risks, many management companies still lack written cybersecurity protocols, provide limited employee training, and carry unclear or insufficient insurance coverage. This combination is a recipe for disaster.
What the Law Requires
The California Consumer Privacy Act (CCPA), expanded in 2023 by the California Privacy Rights Act (CPRA), imposes stringent obligations on businesses that collect and store personal data. Many smaller, local management companies may not meet the statutory thresholds for direct CCPA application (e.g., requiring over $25 million in annual gross revenue or sharing personal data of 100,000+ consumers annually). However, this does not mean that they are not at risk from basic data breaches.
Regardless of CCPA applicability, Civil Code § 1798.82(a) requires timely notification to any California resident whose unencrypted personal data was, or is reasonably believed to have been, acquired by an unauthorized party. This notice must be provided “in the most expedient time possible and without unreasonable delay.”
Bottom line:
Even if your company is not directly governed by the CCPA, its standards remain the best practice baseline for protecting data and avoiding liability.
Defining Personal Information
“Personal information” includes far more than just names and addresses. Under California law, it can cover:
• Banking and payment details
• Social Security numbers and driver’s license numbers
• Email contents between homeowners and management
• Health or disability information
• Citizenship or immigration status
• Racial, religious, or political affiliations
• Sexual orientation or gender identity
Managers often collect and disseminate this type of information without even realizing it. Examples include routine association operations, such as:
• Board packets with payment history and contact info
• Violation letters referencing health or disability status
• Emails between owners and managers discussing personal hardships
• Architectural applications that include residential photos, layouts, or permit details
Recognizing the extent of sensitive data is the first step to protecting it more effectively.
Security Measures Every Management Company Should Adopt
To reduce exposure and demonstrate reasonable care, management companies should implement and document at least a minimum level of security practices:
• Software and systems hygiene
— Keep all systems and software updated with the latest security patches.
— Use reputable, encrypted cloud storage providers.
• Access controls
— Restrict access to sensitive data to those who need it to perform their job.
— Use role-based permissions and incorporate audit trails.
• Password protocols
— Require strong, unique passwords or passphrases and ensure employees change them regularly.
— Include data protection clauses in vendor agreements.
continued on page 34
For those seeking more advanced frameworks, consult the National Institute of Standards and Technology’s (NIST) Cybersecurity Framework (www.nist.gov/cyberframework) or the Center for Internet Security’s (CIS) Critical Security Controls (www.cisecurity.org/controls).
Create a Written Cybersecurity Policy… and Train to It
A comprehensive cybersecurity policy is not merely another set of rules; it is an operational roadmap that serves as a daily reference as well as the “goto” during a crisis response, if ever necessary. Every policy should address:
• Purpose and scope: Who the policy applies to and its underlying rationale.
• Data classification and risk levels: What information is sensitive and how it should be handled based on its criticality.
• Access controls: Who has access to what data, and how it is managed or revoked upon role changes or departures.
• Acceptable use: Rules for using company devices, email systems, and cloud services to prevent misuse.
• Incident response plan: Reporting requirements and steps after a suspected or confirmed breach.
• Vendor protocols: What are the cybersecurity expectations and requirements for all outside service providers.
• Training: What are the schedule and requirements for initial and ongoing staff education on cybersecurity best practices.
• Policy updates: How often is the policy reviewed and revised to adapt to evolving threats and regulations.
All employees should receive initial and annual training, with attendance documented. New employees should review the company’s policy as part of their onboarding process. Labor Code § 2860 requires departing employees to return confidential information, and management companies should immediately revoke access rights immediately upon separation. Consistent training reinforces accountability and reduces human error, which is the most common source of breaches.
Prepare for Breaches Before They Happen
When a breach occurs, there is no time to improvise. Statutory deadlines demand rapid response. If more than 500 California residents are affected, notice to the Attorney General is mandatory. An effective breach response plan should include:
• Immediate internal reporting protocols to ensure swift action
• Engagement of legal counsel to determine regulatory obligations and guide compliance
• Prompt notification to cyber insurance carriers
• Access to forensic investigation services to evaluate the breach’s scope and impact
• Pre-drafted notification templates for affected parties
• A documented audit trail of every response action and remediation process
Failure to act quickly and transparently will only magnify liability.
Cyber Liability Insurance: Worth the Cost?
While not required by law, cyber liability insurance can be instrumental in offsetting the steep costs that follow any data breach. Coverage typically includes:
However, the landscape of cyber insurance has recently shifted, with rising premiums and targeted exclusions that often have only manifested to impact coverage after incidents have occurred, unexpectedly leaving the victims of cyber-attacks without any relief when they needed it most.
Boards and managers must carefully review coverage with both an insurance broker who understands community associations, as well as a cyber security professional that knows the right questions to ask to help cater the policy scope, limits, and terms for your specific business needs. Some additional practical questions may include:
• What is explicitly excluded from the policy?
• Are ransomware payments covered?
• What are the per-incident and aggregate limits?
• Does the policy cover third-party vendor breaches?
• Are legal defense and forensic costs included?
Do not assume your general liability or E&O policies cover cyber risks. These policies often explicitly exclude them.
Updating Management Contracts
Contracts should never remain silent on cybersecurity, including data security obligations and breach responsibilities. Community managers should work proactively with their own legal counsel to ensure agreements include:
• Confidentiality and data protection clauses
• Clearly defined cybersecurity responsibilities for each party
• Detailed breach notification procedures and timelines
• Indemnification provisions
• Cyber liability insurance requirements
Even if current agreements are silent on cybersecurity, consider proposing amendments or addenda, especially for long-term clients. Taking initiative reduces ambiguity, shifts conversations from reactive to proactive, and encourages shared planning and responsibility between the company and the association.
Final Thoughts: Don’t Be the Weakest Link
Community managers are now custodians of both the physical and digital assets of their members. Cybersecurity needs to be an expected part of the culture of management. Boards should be asking their management companies:
• Do you have a written cybersecurity policy?
• Is staff training regular, comprehensive, and documented?
• How recommended vendors safeguard homeowner data?
Cybercriminals will continue to seek easy targets. California’s privacy laws will only grow stricter. The question is not whether your organization will be targeted, but whether you’ll be ready! Strong policies, proactive training, and clear contractual provisions are the difference between being your community’s strongest safeguard or its weakest link.
EDITORS
• Legal defense and settlements
• Notification and credit monitoring costs
LINK
• Data recovery
• Business interruption losses
• Some regulatory fines (where permitted)
Daniel C. Heaton, Esq. is a Senior Associate at DeNichilo Law, APC, serving as corporate and litigation counsel for community and commercial associations throughout California. He may be contacted at Daniel@DLawAPC.com or 949.654.1510.
BOWLING TOURNAMENT
Pins ‘n’ Pockets in Lake Elsinore was the place to be on August 28th, as Chapter member laced up their bowling shoes for a night of strikes, spares, and plenty of laughs.
The energy stayed high all evening. When members weren’t knocking down pins, they crowded into the photo booth, snapping silly shots and capturing memories between sets.
Highlights of the Night
• Strikes Galore! The lanes were hot with strikes flying all night.
• Super Strike Raffle Winner : Congratulations to Judith Lopez of FirstService Residential, winner of the Super Strike raffle sponsored by Reconstruction Experts.
• Champions Crowned Again : For the second year in a row, the unstoppable team from Animal Pest Management took home the championship. Their victory was sweetened with gift cards courtesy of Apex Contracting & Restoration.
The night rolled along smoothly, filled with spirited competition and a strong sense of community connection. We’re already looking forward to next year’s tournament to see if Animal Pest Management can defend their crown or if a new team will rise to the challenge.
Tournament Winners Animal Pest Management Team with sponsor of Tournament Winner, Apex Contracting and Reconstruction
Super Strike Winner Judith Lopez with sponsors, Reconstruction Experts
Each article in this issue reflects the power of teamwork and collaboration. By coming together and leveraging our collective expertise and resources, we can address any challenge and turn them into opportunities for growth and engagement.
Thank you to all of our community leaders for your ongoing dedication to our CAI-GRIE community and it is my pleasure to be able to continue to serve as the Editor of Connect.
A.J. Jahanian, Esq. is a partner with Beaumont Tashjian who devotes his career to serving common interest developments. He can be reached at ajahanian@HOAattorneys.com
2025 CAI-GRIE UPCOMING EVENTS
CAI–GREATER INLAND EMPIRE
The CAI–Greater Inland Empire (GRIE) Chapter 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. For more information, visit cai-grie.org
