CONNECT 2011 Issue Two

CAI-GRIE’s mission is: To make a positive contribution to the Common Interest Development Community through education and networking.

connect A Publication of the Greater Inland Empire Chapter of CAI

ISSUE TWO 2011

CLAC Wine Event See more photos on page 23

SPONSORS Andre Landscape

MC Painting & Construction

Artistic Maintenance, Inc.

Nelson Paving/Goldstar Asphalt

Beaumont Gitlin Tashjian

Pacific Western Bank

Berg Insurance Agency

Richardson & Harman, PC

Brickman Group

S.B.S. Lien Services

CLS Landscape Management, Inc.

Steven G. Segal Insurance Agency, Inc.

Environmental-Concepts Landscape Management, Inc.

Tri-County Lighting Services, Inc.

Epsten Grinnell & Howell, APC

2 |

Fiore, Racobs & Powers

ISSUE TWO 2011 • Connect with grie

connect Table of Contents A Publication of the Greater Inland Empire Chapter of CAI

www.cai-grie.org

OFFICERS Ken Carteron............................................................................. President Pacific Western Bank Robert Riddick...................................................................President-Elect Sunnymead Ranch Planned Community Association Weldon L. Brown.............................................................. Vice-President Weldon L. Brown Company Lana Hamadej, LSM, PCAM. ................................................... Secretary Avalon Management Group Kimberly Lilley, CMCA, CIRMS ................................................ Treasurer Berg Insurance Agency, Inc.

Features 4 2011 Legislative Day: Highlights from Sacramento

By Nancy Sidoruk, Esq.

10 Hot Bills Legislative Recap: What’s Coming Down the Turnpike

By Jasmine Termain, Esq.

12 Newest PCAM Designees

BOARD DIRECTORS Michelle Howard, CMCA, AMS, PCAM......................Voit Management

14

Matt D. Ober, Esq., CCAL .............................Richardson & Harman, PC

The Current State of Foreclosures and Their Effect on Common Interest Developments in California

Shelly Risbrudt......................................................Bemus Landscape, Inc.

By Dick Pruess and Skip Daum

Linda Krebs ..................................................... Flower Lighting & Electric

Gina Roldan.........................................................Vista Paint Corporation Kristie Rose, CMCA, AMS, PCAM, CCAM

Transpacific Management Service

16

Local Community Makes Groundbreaking Efforts in Water Conservation

Robert Serdoz.............................................. Elite Pest Management, Inc.

Alisa Toalson, CMCA, CCAM......Professional Community Management

By Cheryl Elefante

Gwen Wertz................................................................ Opportunity Bank Sherry Neal, CMCA, PCAM, CCAM ................................ Past-President Walters Management Chapter Executive Director DJ Conlon, CMCA Editor in Chief Kelly Richardson, Esq., CCAL..........................Richardson & Harman, PC Publications Committee Lana Hamadej, LSM, PCAM........................ Avalon Management Group Jan Hickenbottom, PCAM........................First Bank Association Services Michelle Howard, CMCA, AMS, PCAM......................Voit Management Kimberly Lilley, CMCA, CIRMS.....................Berg Insurance Agency, Inc. Sherry Neal, CMCA, PCAM, CCAM.................... Walters Management Jude Pisanelli, CMCA............................................... Equity Management Nancy I. Sidoruk, Esq. . ...........................Epsten Grinnell & Howell, APC Jasmine Termaine, Esq...................................... Beaumont Gitlin Tashjian Sheryl Whitaker, AMS.................................. Avalon Management Group DESIGN & PRODUCTION

Departments 2 CLAC WIne Event

6 President’s Message

By Ken Carteron

8 Editor’s Link

By Kelly Richardson, Esq.

19 Letter from the Executive Director

By DJ Conlon, CMCA

20 Report from Boca Raton – CAI’s 2011 National Conference

Kristine Gaitan..................Rey Advertising & Design/The Creative Dept.

22

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.

23 CLAC Wine Event

Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI–GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Community Associations Institute of Greater Inland Empire Chapter.”

Copyright © 1998–2011 CAI-Greater Inland Empire Chapter.

Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter 5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / fax (951) 848-9268

New, Renewed & Rejoined Members

The Greater Inland Empire Chapter of CAI hosts educational, business and social events that provide the Chapter’s Business Partners various opportunities to promote their companies’ products and services to Community Association owners and managers serving the Community Association Industry. It is expected that all participants in Chapter events — whether they be educational, business or social — will conduct themselves in a professional manner representative of their business or service organization so as not to detract from the experience of others seeking to benefit from their membership in the Chapter. connect with grie • issue TWO 2011

| 3

by nancy I. sidoruk, ESQ.

2011 Legislative Day: Highlights from Sacramento CAI’s California Legislative Action Committee’s educational programs, networking opportunities and lobbying efforts were again in full swing at this year’s Legislative Day event in Sacramento, held April 10-11, 2011 at the Hyatt Regency Hotel.

Sunday, April 10 In a nearly four-hour delegate meeting, also attended by chapter liaisons and executive directors and CAI-California legislative advocates Skip Daum and Ron Kingston, attendees accomplished an exceptional amount of work and learned a great deal: • Adoption/confirmation of positions on 15 bills • Review of chapter goals for legislative support • Update from CAI on Federal issues, by CAI’s Vice President of Governmental Affairs, Andrew Fortin, Esq. • Briefing on California Law Revision Commission (CLRC) efforts underway to rewrite entire Common Interest Development Act • Update on CAI surveys on foreclosures, document request fees • Review of CAI-CLAC public relations efforts Managers, homeowners and board members enjoyed four hours of well-received educational programming on Sunday. The day’s events began with a special briefing for non-delegates on hot bills and the afternoon included two programs, the first of which was presented by CAI-GRIE President-Elect Robert Riddick: Tools to be a More Effective Community Leader – How to Work with Your Legislators and Make a Difference in the Law Making Process.

Sunday evening’s tradition of “Dine with the Delegates” is always an enjoyable part of the annual Legislative Event, and this year was no exception. Held at Cafeteria 15L, the event gave attendees an opportunity to mix and mingle, relax after the day’s educational and working sessions and get even more energized for the following day’s

4 |

ISSUE TWO 2011 • Connect with grie

Left: The Greater Inland Empire Chapter had a great showing in Sacramento with 14 members and the Executive Director.

Below: CAI presents Assembly Member Norma Torres with the CAI-CLAC Legislator of the Year award on the Assembly Floor.

lobbying efforts. The dinner gave CAI-GRIE chapter members the opportunity to re-connect and see just how many made the trip to Sacramento to exercise the region’s political muscle.

Monday, April 11 Lobbying day began with welcoming remarks from CLAC Chairman Dick Pruess and an overview of the day’s activities, presented by CLAC lobbyist Skip Daum. The main work of the day then commenced, with the all-important bill briefing, in which summaries of especially critical legislation were presented by CLAC delegates, including CAI-GRIE members Jeff Beaumont and Glennon Gray. The bill briefing provided attendees with the information needed to effectively lobby their own legislators that afternoon. Before heading across the street to the capitol building for individual or group meetings with their own legislators, attendees enjoyed a pleasant luncheon and even more lobbying tips, as well as the following: • Remarks by Senator Mark DeSaulnier, Chairman of California State Senate Transportation & Housing Committee. Senator DeSaulnier discussed his views on legislation, and specifically invited comments and questions from the audience on his bill, SB 563.

• CAI-CLAC award presentations • Update on CLAC Social Media on Twitter and Facebook (CAIcalif); Blog located at www.caiclac.wordpress.com/ While in the capitol building, a group of CAI representatives, including several from the CAI-GRIE chapter, met with Assembly

Member Norma Torres to present her with CAI-CLAC’s Legislator of the Year award on the Assembly Floor. It was an honor for the presenters to be granted access to the Assembly Floor. It was also evident that Assembly Member Torres viewed CLAC’s recognition as an important honor for her support of legislation on behalf of community associations. You will recall that Assembly Member Torres authored last year’s successful “blanket recordation” bill, which was sponsored by CAI as a follow-up to its previously enacted association solvency legislation.

The day concluded with a reception and debriefing session at the picturesque top of the Hyatt Regency. Attendees commented on how they were received by their legislators, provided necessary feedback to CLAC lobbyists, commented on the beauty and history of the capitol building itself, and prepared for the trip home.

On behalf of CLAC and the GRIE Legislative Action Committee, many thanks to those who attended and sponsored the 2011 Legislative Day events. We look forward to seeing you in Sacramento next year.

Nancy I. Sidoruk is an Attorney with Epsten Grinnell & Howell, APC, and serves as CAI-GRIE Legislative Action Committee chair and delegate to CAI-CLAC. connect with grie • issue TWO 2011

| 5

PRESIDENT’s

MESSAGE Well, we made it to summer, time flies when you’re having fun!

tremendous job putting on a very educational and entertaining program.

We have had a lot going on over the past few months, a lot of successful events and great programs, I hoped you enjoyed them as I have.

The May Breakfast in Park, in windy Temecula was also well presented and if you were there early enough, you were witness to the construction of half of a house by one of our presenting business partners. Some of us will do anything with the perfect setting for a presentation.

The second Annual CAI GRIE Indoor Olympics was a great success. All the participants had a great time and the staff at Dave and Busters were as patient as they come with us amateur Olympians. I am sure you will see this event in the coming years.

Ken Carteron Pacific Western Bank

Monte Carlo Night…well the story behind this event is probably more than I should be sharing, but let’s just say that some creative minds and some persistence on the part of the committee and your ED saved us all from a night of disco and BINGO (inside joke).

The annual CA Day in Sacramento proved to be a great opportunity for your chapter leaders to meet with our advocates and representatives in Sacramento. As always we are fighting for what not only makes the most sense for our industry but what is fair and equitable to all members of CAI. One of our chapter members was honored at this event – congratulations to Nancy I. Sidoruk, Esq. of Epsten Grinnell & Howell APC. Please see page 4 for more on Sacramento.

As we move through the summer months keep in mind that we are all in to win. Support your chapter in your own way, whatever it is. The programs and events for the rest of the year are lining up and the chapter office is prepared for the advent of electronic registration to those events. Visit our website for details of what is in store for this summer and beyond.

Our April luncheon at Pechanga was well attended and very well presented by a terrific panel. The committee did a

Ken Carteron Chapter President

6 |

ISSUE TWO 2011 • Connect with grie

We provide solutions... to complex Community Association legal issues.

If you are involved in the management of a community association, you know that the State and Federal laws that govern associations complicate decision-making and make the conduct of association business challenging.

We can help. At Epsten Grinnell & Howell, solving the complexities of community association law is our only business.

Our attorneys handle a continuing and varied stream of association legal matters.

We collaborate and share our ever-expanding knowledge with each other, and with our clients. This can be a real benefit to your association, as our attorneys are not likely to be starting from square one when faced with your difficult issue.

Call us today… We have a lot of common interests.

ÌÌ À iÞÃÊ-iÀÛ }Ê Õ ÌÞÊÊÊÊÊÊÊÊÊÊ ÃÃ V >Ì Ã

800.300.1704 l www.epsten.com San Diego 9980 Carroll Canyon Rd., Suite 200 San Diego, California 92131 858.527.0111 • fax 858.527.1531

Inland Empire 41870 Kalmia St., Suite 160 Murrieta, California 92562 951.461.1181 • fax 951.461.2916

Coachella Valley 44-875 Deep Canyon Rd., Suite 3 Palm Desert, California 92260 760.836.1036 • fax 760.836.1040

connect with grie • issue TWO 2011

| 7

Editor’s LINK

Kelly G. Richardson is Co-Founder and Managing Partner of Richardson & Harman, PC. Mr. Richardson is also the Managing Editor of Connect magazine and Chair of the magazine committee.

April and May were exciting months to be a part of CAI, and particularly to be part of the Greater Inland Empire Chapter. In April, many Chapter members attended the annual “CA Day at the Capitol” event in Sacramento (see page 4 for the recap). In this issue we feature three Chapter managers who have achieved the hard-earned and most respected designation for portfolio managers... the PCAM designation.

In May, the Conference in Boca Raton was a smashing success, with record attendance, with so many opportunities for professional networking and education, one could scarcely decide where to go.

As you will read in this issue, the recession is having little effect on the Institute, which continues to show strong growth.

Also featured is an amazing success story of an association that transformed a water guzzling field of unused grass. Do you have a story of an association that has faced a major challenge and succeeded? Contact us, and don’t worry if you don’t want to write it up, just put us in contact with those with the information.

You will notice a heavy concentration of legislative articles in this issue of Connect. Why is that?

The reason is that right now is a critical time for California CIDs. There are so many bills pending at this moment that can greatly change how California associations govern themselves next year – some changes for the better, and many for the worse – and this is the time to pay attention to legislation, not only in October when all is done.

We appreciate your reading Connect and your support of this Chapter. Have an article you would like to submit, an idea, or a suggestion of how to improve Connect? Contact me by email at KRichardson@RH4Law.com. Thanks for reading!

Saturday Night Fever “A Night at the Disco” Night Fever Corporate Sponsors

Artistic Maintenance, Inc. Pacific Western Bank

Night on the Town Grand Prize Sponsor AMS Paving, Inc.

8 |

ISSUE TWO 2011 • Connect with grie

connect with grie • issue TWO 2011

| 9

Hot Bills

Legislative Recap: What’s Coming Down the Turnpike

By Jasmine Termain, Esq.

I

n April, Community Associations Institute (CAI) held its annual Legislative Day march on Sacramento. CAI delegates discussed key pending Senate and Assembly Bills pertaining to common interest developments (CIDs), including Senate Bill “SB” 150, SB 561, SB 563, Assembly Bill 771, and SB 759.

Covering issues from collection of delinquent assessments to rental restrictions, the California legislature is considering wide ranging topics impacting CIDs during the 2011 session.

Sponsored by the California Association of Realtors, SB 150 is a re-introduced version of 2008’s Assembly Bill 2259. Introduced

by Senator Correa on February 1, 2011, SB 150 seeks to amend Civil Code Sections 1368 and 1373 and add Section 1360.2 regarding rental

10 |

ISSUE TWO 2011 • Connect with grie

restrictions in governing documents.

Unless the rental restriction (e.g. caps on number of allowable rental units and other restrictions pertaining to tenants) was in place prior to adoption of SB 150, it will preclude enforcement of such covenants unless an owner voluntarily agrees to be bound by them. Aside from creating an enforcement nightmare for CIDs and their boards, this bill would authorize owners to consent – or not – to being subject to rental restrictions.

Many communities have turned to rental restrictions to not only comply with increased lender restrictions but also to better govern renters who often wreak havoc on a community.

If passed, this bill would obliterate a community’s right to enact restrictive covenants regarding rentals of units.

Deemed by the legislative analysis as a means by which to reign in debt

collectors and ensure the rights of delinquent owners are not trampled upon, Senator Corbett introduced SB 651 on February 17, 2011. SB 561 would amend Civil Code Sections 1367.1 and 1367.4 pertaining to collection of delinquent assessments, and would preclude CIDs from assigning assessment collections to third party debt collection companies.

The practical effect of SB 561 would result in a mandate that CIDs facilitate their collections entirely “in-house,” including acting as a trustee at a public foreclosure action, or would require the third party debt collectors to alter their current collection practices to conform, chapter and verse, to the provisions of the Code. Imagine… what is already a frustrating process for most Boards and dues paying members in seeing their non-paying neighbors be provided numerous

meet and confers, opportunities to enter into payment plans, and other statutory provisions, would be exacerbated by the proposed changes.

Introduced by the Committee on Transportation and Housing on February 17, 2011, SB 563 seeks to amend Civil Code Sections 1363, 1363.05 and 1365.2.

SB 563 would radically alter current board meeting practice. While on the positive side it would permit members to consent to receipt of electronic notice of meetings, on the negative side, a Board’s ability to make critical decisions between meetings will be stymied. Furthermore, it would require Boards that hold meetings via teleconference to provide members a physical location with one Board member in attendance. If passed, the practical outcome of SB 563 would likely grind the management and oversight of CID affairs to a halt. Volunteer Board members who hold discussions via email and conduct telephonic meetings to keep their associations efficiently moving forward will be hindered.

While it comes as no surprise buying a unit in a CID comes with a volume of paperwork, AB 771 will increase the obligation on associations and sellers to provide buyers with yet more association related documents. Introduced on February 17, 2011 by Assemblyman Butler, AB 771 seeks to amend Civil Code Section 1368 and add a new Section 1368.2. While the Bill would permit CIDs to hire outside document vendors to provide buyers with the necessary paperwork, AB 771 increases the amount of paperwork that must be provided but does not increase the time within which it can be provided.

Furthermore, it removes an agent’s right to collect the document fees. If passed, AB 771 would not only increase burdens on CIDs without a meaningful outcome, it would also negatively impact management companies by preventing them from charging fees. The reality is that buyers can already request copies of minutes if they choose: most don’t.

And last but certainly not least, SB 759 is a reintroduction of 2009’s Assembly

Bill 1793 (AB 1793) regarding installation of artificial turf. While the Governor ultimately vetoed AB 1793, if passed SB 759 will void restrictive covenants that prohibit installation of artificial turf but will not, however, preclude a Board’s right to create rules regulating its installation.

Based on the above legislation, the 2011 session again shows that the “green” legislative trend is ongoing, the right of associations to govern themselves regarding rentals is under attack, transfer costs are under scrutiny. It would behoove the prudent homeowner, director, manager or attorney to keep a close eye on the legislation pending, and to support CAI’s Legislative Action Committee as it works to defeat or soften legislation which would be harmful to California CIDs. Jasmine Termain, Esq. is an attorney with the law firm of Beaumont Gitlin Tashjian, and is a member of the Connect Editorial Committee.

GENERAL CONTRACTING RECONSTRUCTION PROJECTS HOMEOWNER ASSOCIATIONS COMMERCIAL PROPERTIES • • • • • •

• • • • • •

Dry-rot Replacement Structural Repairs Concrete ~ Asphalt Painting Fencing Wrought Iron

Waterproofing Deck Coatings Roofing Stucco ~ Siding Pools & Spas Maintenance

SOUTHERN CALIFORNIA’S MOST TRUSTED CONSTRUCTION SERVICE PROVIDER Corporate Office 981 W. 18th Street Costa Mesa, California 92627 949.548.9969 - Fax: 949.548.9711 License #699611 customerservice@pcwservices.com www.pcwservices.com

connect with grie • issue TWO 2011

| 11

Our Chapter’s Newest PCAM Designees The Professional Community Association Manager (PCAM) designation is the highest professional recognition available nationwide to portfolio managers.

Michelle Howard, PCAM Michelle Howard recently earned her PCAM and joined the elite, the select, and the best in the industry of association management. Michelle has been in the community association industry for eleven years. Michelle started her career as a Corporate Administration Manager for Canyon Lake POA, and also served as assistant to the Human Resource Manager during the seven years she was with Canyon Lake POA. Michelle joined Equity Management as a portfolio manager in 2007, and continued her career there for three years. In 2010, she joined Voit Management as a portfolio manager. Michelle earned her PCAM designation in 2010 and commented that: “Obtaining the Professional Community Association Manager (PCAM) designation was a career goal of mine once I realized I wanted to remain in the industry. I feel fortunate to be a part of such a group, and I think the PCAM’s who have been in this industry for many years have paved the way for managers like myself who wish to accomplish this designation. It truly takes hard work and dedication to achieve this designation.” In addition to being a portfolio manager at Voit Management, Michelle serves as liaison for CLAC’s California statewide committee and on the Board of Directors for the Greater Inland Empire Chapter.

Kristie Rose, PCAM Kristie relocated from Orange County to the Inland Empire seven years ago looking for a career that would be intriguing and rewarding and in hopes of finding a career that would allow her to grow professionally. She had little knowledge at the time of what an HOA actually was, other than she paid assessments to one every month. In her search for a new career she found a great job in association management with a wonderful company that prided itself on continuing education and growth in the industry. Over the next five years she was mentored by experienced association managers and executives that helped her with her journey in becoming a certified community manager. As with any journey, she faced challenges, successes, failures and accomplishments.

Her desire and determination continued to grow and her goal became to achieve her PCAM designation. To quote Kristie: “With every seminar, course and designation I felt more determined, and although stress and life threw obstacles in my way, I never gave up on the importance of educating myself and growing within the industry. I attribute my success through this amazing journey to the continued support of co-workers, leadership, executives, family, friends and industry partners over the last seven years. I am proud to be part of an industry that celebrates the accomplishments of its members and strives to promote its managers to climb the education ladder to being the best “Community Association Manager” possible. When asked what it means to me to have a PCAM, I say pride and respect not only for myself, but for those fellow professional managers that no matter what designation they obtain, their dedication to education motivates others. I encourage all managers to map out their journey for success and prepare themselves for an accomplishment of a lifetime…Your PCAM and I are waiting to congratulate you at the finish line!”

Kristie works with Transpacific Management Service in its Temecula office, and currently serves on the Board of Directors for the Greater Inland Empire Chapter of CAI.

12 |

ISSUE TWO 2011 • Connect with grie

Pamela Voit, PCAM Pamela Voit is the founder of Voit Management, a full service property management firm located in Murrieta, California. Pamela was first introduced into the common interest development industry in 1985, and quickly became Vice President of a management firm in Orange County. Today, she brings over 25 years of property management and real estate industry experience to her clients.

Pamela serves as one of two delegates to the California Legislative Action Committee of the Greater Inland Empire Chapter of CAI, on which she serves as Vice Chair of its Executive Committee. She is also a member of the California Association of Community Managers.

Pamela had the following to say on her most recent accomplishment of obtaining her PCAM designation: “Although it took me many years to obtain my PCAM (yes, a manager’s life is extremely demanding), it has become an honor to be among

the elite in our industry that have paved the road before me, and continue to contribute with experience and education towards increased professionalism and respect for all managers in this field.

“I also hope that by obtaining my PCAM after 25 years in the industry, I can inspire others to continually take PMDP classes; attend CAI events, and work toward the next designation. Even though I have encountered many situations over the years, and solved many HOA problems, I have been amazed at how much I learned at each class that directly applied to how I could manage better. And as an employer, I continually look for those individuals committed to being great managers by obtaining industry certifications. Educated managers will continue to elevate our industry and increase our worth to the 40,000 common interest developments in California, and across the country. My advice to managers…put ‘CAI Education’ on your calendar like all of your other important events!”

Congratulations to Pamela, Michelle and Kristie for achieving the highest professional recognition available nationwide to managers who specialize in community association management.

P CA M R E C E P T I O N H I G H L I G H T S

connect with grie • issue TWO 2011

| 13

The Current State of Foreclosures and Their Effect on Common Interest Developments in California

By Dick Pruess and Skip Daum

14 |

ISSUE TWO 2011 • Connect with grie

U

nfortunately, FORECLOSURE is a word that has become too frequently heard in the last few years, and nowhere does it cause more angst than in community associations.

At its last Annual Planning Meeting, CAI’s California Legislative Action Committee, designated a number of topics for research and analysis in 2011. The thirty Delegates, Chapter Executive Directors, Executive Committee members, and our legislative advocates Skip Daum and Ron Kingston decided that two of the six topics considered for researching in 2011 involved foreclosures.

A SurveyMonkey™ on foreclosure issues was sent to some 2,650 managers on March 16, 2011, and the preliminary results will be very instructive to public policy makers.

Determining what can be done to change state Code is difficult. First, the legislators believe that keeping homeowners in their homes as long as possible is their primary responsibility, which works directly against HOA cash flow as assessment delinquencies accrue.

At January’s annual HOA Industry Roundtable (started

by CAI-CLAC six years ago), we argued that California common interest developments needed help from the financial problems worsened by foreclosure, and we presented six ideas to give relief. Three were adopted, and

position papers were written by three of our attending members.

Lisa Engel, Chief Consultant for Assembly Member Norma Torres, Chair of the Housing and Community Development Committee, attended the meetings. Cooperation of Ms. Torres is important to us, as her committee hears all bills affecting CIDs. Foreclosure is the issue that all attendees agreed was the most pressing for getting legislative relief for HOAs. Position papers were introduced by Kelly Richardson, Esq. of Richardson & Harman, on raising the dollar amount and number of times annually a corporation can sue in Small Claims Court; Nathan McGuire, Esq. of Neumiller & Beardslee, on amending Civil Code §2924h(c) to require a foreclosing beneficiary or third party acquiring property at trustee’s sale to record the trustee’s deed within thirty (30) days following the trustee’s sale; and Darren Bevan, Esq. of Baydeline & Jacobsen, to amend rent skimming Civil Code §890 to state that it does not apply to CIDs following a foreclosure pursuant to Civil Code §§1367 and 1367.1.

At the next meeting of the Roundtable, representatives of the banking industry will be invited to get their input, and thus the topics chosen are quite narrow in scope, and not as exciting as Impound Accounts or a so-called “Super Lien.”

We then will need to find a legislator to sponsor a bill, take it through the legislative process, and get the Governor’s signature, which is not an easy undertaking.

The foreclosure rate in HOAs, in preliminary reporting from SurveyMonkey™, has remained above 10% for the past 3 years. (However the number is declining.) More than 5% of HOAs have a foreclosure rate above 15%. The result has been reduced maintenance in 44% of HOAs, increased assessments in 64%, reserve account borrowing in 46%, and some 24% have had to levy a special assessment.

Over 61% of lenders are not paying delinquent assessments within 90 days after the foreclosure.

Only 38% of managers responding

reported filing a “blanket recordation” under Civil Code §2924. You should take advantage of this code change achieved in 2010 by CAI-CLAC. New foreclosure filings (Notices of Default) in California dropped by 33% in 2010 to 338,999. The current rate of new Notices of Default is under 300,000, but foreclosure outcomes need to be carefully analyzed. Forty six percent (46%) of filings of a Notice of Trustee Sale are cancelled.

Forty four percent (44%) go back to the bank and become part of REO inventory.

But only 10.7% of properties are sold to third parties at Trustee Sales, and that rate has stayed below fifteen percent for the last three years.

What can you do for the HOAs you live in or manage regarding the foreclosure issue? The board cannot reveal the name or unit number of delinquent or in foreclosure process owners, only parcel numbers. But in the minutes of the board meetings the accounts receivable should be published. Compare it as a percentage of the Annual Budget, and if it is increasing, ask questions of the board. Are these owners receiving monthly statements

of their delinquencies, has a company been hired to manage the process of reports needing filing monthly, and are you looking at Small Claims Court to try and collect, and to get a judgment filed against the owner in the County of Record?

If you manage HOAs you might consider subscribing to ForeclosureRadar. com or RealtyTrac.com, in which you can make a report with all the addresses within your property, then run the report monthly to find out which properties received a Notice of Foreclosure, and includes the scheduled sale date, outstanding mortgages, and who are the mortgage holders.

Foreclosed properties and unpaid assessments are today’s reality. You can avoid surprise foreclosures by constant vigilance of the reports and education available on these two sites.

Dick Pruess, a homeowner in Pasadena, is 20112012 Chair of CAI’s California Legislative Action Committee. Skip Daum is President of Capitol Communications Group, and has been CAI’s Legislative Advocate since 1994.

connect with grie • issue TWO 2011

| 15

By Cheryl Elefante

Local Community Makes Groundbreaking Efforts in Water Conservation

after

orsethief Canyon Ranch Association is an association of 1,962 homes in the Corona area. The association, formed in 1988, has always strived to be on the cutting edge in water conservation, but with the rising cost and shortage of water the association desired to achieve even more in their water saving efforts. Cheryl Elefante, the Community Director and John Thorpe, the association manager began brain storming about how to accomplish this. They decided the best way was to start by removing grass and the best location would be the 2-1/2 acres of unused grass behind the second pool. Bob Hafner, the Board Treasurer suggested a botanical garden in its place.

Cheryl designed the garden to not only save the association money and water, but to give homeowners an example for ideas for their own drought tolerant landscaping. To begin saving right away, the water was turned off on the turf. The work began a month later with the landscape company scraping off the dead grass and digging the 1100-footlong river bed. The river bed was established as a focal point, but also created as a means for the rain water to flow through the garden. A full six hundred tons of decomposed granite were trucked in to cover the area, and an additional two hundred fifty five tons of river rock were brought in to line the river bed and path. Because the path meandered back and forth across the river bed, bridges were needed to cross it. These were built from recycled wood, reclaimed from old picnic tables which were otherwise to be discarded.

In the garden there are many different features. Upon entrance, one will immediately

16 |

ISSUE TWO 2011 • Connect with grie

BEFORE

notice the flowering section to draw butterflies, hummingbirds and bees; and to the left is the vegetable garden. Further down the path is an orchard filled with a variety of fruit trees. From this point, one will pass along the vineyard and rose garden. A little further down the path can be seen a wide variety of succulents and many examples of wild grasses beneath the queen palms.

Finally, at the end of the garden one has arrived at the forest...or at least it will be, one day, when the trees mature. Along the way there are benches beneath trees to sit and enjoy the tranquility, read a book or picnic. As an additional benefit, in the process of developing the botanical garden, the association created the opportunity for four Boy Scouts to plan and carry out their Eagle Scout Projects. These projects are: the pergola at the garden entrance, the amphitheater for Scouts to meet in, the elevated vegetable garden and the signs identifying the plants and trees.

The garden was finished $14,000 under the estimated budget of $50,000, but even more money could have been saved if there had not been a constant battle against Mother Nature and the rabbits. If the garden were to begin today, many things would be done differently. Instead of tackling the entire area at one time, it would have been sectioned off and one section completed before moving on to the next. Planting would take place during the cooler months to save duplicating plants that died due to the heat. Fencing would have been placed around many of the plants that rabbits devoured. And, the river bed should have been made wider with more sweeping turns.

To keep the cost down, all work was done with the clubhouse staff, board members and volunteers. Nothing was outsourced. The fence at the entrance was donated

by Lucas Enterprises and the pavers for the benches were donated by Timeless Turf. The grand opening of Continued on page 18

connect with grie • issue TWO 2011

| 17

the garden was October 2010 with Bob Buster, Riverside County Supervisor, present for the ribbon cutting ceremony.

To date, installing the botanical garden has saved the association nearly $15,000 in water since the project began in August 2009. It turned an obscure area, unused and unknown by many homeowners, into an inviting sanctuary for homeowners to take a quiet stroll.

Cheryl Elefante is an employee of Walters Management, and Community Director of Horsethief Canyon Ranch Maintenance Corporation.

The only question remaining is… what has your association done? Connect welcomes other success stories of Greater Inland Empire homeowner associations as association boards, management and members work to improve their communities.

Send yours to DJ Conlon at the Chapter office, dj@cai-grie.org or to Connect Editor Kelly Richardson at KRichardson@RH4Law.com

951.698.8511

www.waltersmanagement.com Murrieta • San Diego • Chula Vista • Carlsbad

18 |

ISSUE TWO 2011 • Connect with grie

A note from the Executive Director

A

s we enter the second half of 2011, I look back on what the Chapter has accomplished so far and I must say, “I am so proud to be the Executive Director of such a great Chapter!” We have members that not only have stepped up for the Chapter as a whole, but also for individuals within the Chapter.

We have business partners teaming up and marketing together, we have managers from different management companies that help each other out by sharing information on what has worked for their association and we have associations that are taking advantage of the educational courses we are offering them. This is what President, Ken Carteron meant when he selected the theme for the year, “We’re Going All In…Where All Members Win”! If you look around, you can see that process in place… and we ARE all winning!

The Chapter is in a better position than it has been in years.

Not only financially, but membership is also up. For the second year in a row, we’ve been the recipient of a National Award (see photo below), spotlighting our own 2010 Committee of the Year – the Ambassador Committee. Thanks to all of you, the Greater Inland Empire Chapter is well-known for the warm, friendly nature of our members, the laid-back style of our programs (think Breakfast in the Park) and our fantastic social events (think Monte Carlo and IE Olympic Games) that bring our members together in a way that really builds strong relationships.

Let’s keep the momentum going for the rest of the year and have a wonderful, safe and fun-filled summer… whether you’re joining us for the “Boot Scootin’ Bowling Tournament on August 5th or you’re going on a family vacation.

Thanks for being you…great members of a great Chapter!

Association Bank Services

Specialized Banking Services For Community Associations and Management Professionals Operating and Reserve Checking With No Monthly Service Charges Automated Lockbox Services, Online Payments, ACH Business Online Banking Remote Deposit CDARS* Placement Services Association Loans Simplified Association Signature Cards Experienced Association Bankers Jan Hickenbottom

PCAM, CCAM Vice President 4301 MacArthur Blvd.

Newport Beach, CA 92660 (800) 848-6771 Jan.Hickenbottom@fbol.com

Member FDIC

www.FirstBankHOA.com

*CDARS is a service mark of Promontory Interfinancial Network, LLC. FDIC Insured up to $50 million per Tax ID.

The Recognized Authority in Community Association Law

FIORE RACOBS & POWERS A PROFESSIONAL LAW CORPORATION A full service law firm solving the legal challenges of community associations for 35 years.

www.fiorelaw.com INLAND EMPIRE ORANGE COUNTY COACHELLA VALLEY 951-369-6300 949-727-3111 760-776-6511 connect with grie • issue TWO 2011

| 19

Report from Boca Raton CAI’s 2011 National Conference

M

ay 6-9, 2011 the Community Associations Institute held its Annual Conference, this year in Boca Raton, Florida. The event featured dozens of valuable seminars, nationally known keynote speakers, and a wealth of recognition for the Greater Inland Empire Chapter and its members.

Approximately 1400 managers, homeowners and business partners participated in the event, including over 15 Chapter members and Executive Director DJ Conlon.

Thursday, May 5th featured keynote speaker John Zogby, the nationally recognized pollster, as he addressed demographic trends in the United States particularly as they involve common interest developments. He noted that consistently, in polls from 2005, 2007, and 2009 71-72% find that living in a CID is a positive experience, and that 88-89% believe their board is striving to serve the community as a whole. Noteworthy for the state of California, where the legislature increasingly regulates associations, in 2009 87% of those polled did not want more governmental control of associations. Only half of the associations in the polls had professional management of any kind, and 54% pay less than $100 per month in assessments.

On Thursday, a record 70 managers were sworn in as new PCAMs. See page 12 featuring the Chapter’s three most recent PCAMs.

Quality Products & Service Competitively Priced OUTDOOR LEISURE FURNITURE

Refinishing • New Furniture • Restrapping • Umbrellas • New Slings Serving California Since 1979

(800) 227-1847

1186 E. Valencia Dr., Fullerton, CA 92831 20 |

ISSUE TWO 2011 • Connect with grie

Friday, May 6th was another notable day, as the Chapter won a Chapter Achievement Award in the Membership category for the 2010 Ambassador Committee’s work. The award was accepted

by DJ Conlon and Chapter President-Elect Robert Riddick. The keynote speaker was the author, television personality and real estate mogul Barbara Corcoran, who parlayed a one thousand dollar loan into a five billion dollar company. Regularly seen on ABC’s “Shark Tank” show, she wowed the audience with her anecdotes and advice regarding building a successful team and achieving success.

At the Friday gala event, a number of California Chapter members were installed, including Richard Salpietra of the San Diego Chapter and Kelly Richardson (GRIE member) as 2011 Trustees, and Carole Murphy, of the California North Chapter as President of the Foundation for Community Association Research.

Saturday May 7th was the Institute’s Annual Meeting, Chaired by 2011 President Steven Brumfield. CEO Tom Skiba reported CAI’s membership at 30,558, a membership retention rate of 83%, and that average class size has increased 50% since 2008. The Institute’s first international Chapter, in South Africa, was recognized.

The meeting was adjourned, with a reminder that the 2012 Conference will be May 2-5, 2012 in Las Vegas.

connect with grie • issue TWO 2011

| 21

New, Renewed & Rejoined Members April 1 through May 31, 2011

NEW MEMBERS Denichilo & Lindsley, LLP Mr. Robert DeNichilo, Esq.

Equity Management Ms. Judy Pisanelli, CMCA Euclid Management Company Mrs. Deborah Maglasang

Dutch Village Master Association Mr. Christopher Bach Mr. John Cussen Mr. Dennis Kaczor Mrs. Rana Mitchell Mr. Dan Parsley

G4S Secure Solutions USA Mr. Brad Barker

Eastlake Mobile Home Estates, Inc Ms. Bobby Howell

Getdocsnow.com Mr. Joseph Russo

Sotero Fernandez Tree Care, Inc. Mr. Manuel Ureno

James Hardie Building Products Mr. Kevin Ulibarri

Walnut Business Condominiums Mr. Eric Anderson Ms. Joanne Daigle Mr. Mike Weimann

La Rocque Better Roofs, Inc. Ms. Jill Title

RENEWED American Technologies, Inc. Ms. Alina Rodriguez Antis Roofing & Waterproofing Mr. Dean Morrison Avalon Management Group Ms. Betty Roth, CMCA, AMS Beaumont Gitlin Tashjian Mr. Jeffrey A. Beaumont, Esq. Bemus Landscape, Inc. Mr. Jon Parry CINC Systems Ms. Vickie Johnson

Fitzgerald & Associates, Inc. Mr. Michael R. Fitzgerald

Laing’s First Edition - Fontana Mr. Wes Lanier Ms. Joyce Morrison Management Specialists, Inc. Mr. Jim Manning, CMCA, AMS, PCAM McCaffery Reserve Consulting Mr. Brian McCaffery, RS Merit Property Management Ms. Suzanne Bolton Nordic Security Services Mr. Peter Jensen Opportunity Bank, N.A Ms. Gwen Wertz Outdoor Lighting Perspectives Ms. Sharon Braithwaite

Coast Property Management Mrs. Vickie Oppelt

Spring Knolls Homeowners Association

Condominium Management Services Mr. Jim McCarthy, Sr., CMCA, PCAM

Streit & Peters, CPA’s Mr. David Streit

Creekside Apartment Homeowners Association Ms. Maria Grinde Mr. R. Schlosser

Voit Management Ms. Karen Steines

Equity Management Mr. Bob Harvey, CMCA

22 |

ISSUE TWO 2011 • Connect with grie

Western Exterminator Company Mr. Michael Britt

REJOINED ACSI Reserve Services Mr. George A. Schneider Barney and Barney, LLC Ms. Sara Hayes Boral Roofing Products Ms. Christy Hager California Sub-Meters Mr. Robert Anaya Canyon Lake Property Owners Association Ms. Bonnie Jensen, AMS First Associations Bank Ms. Cat Coltrell, CMCA, PCAM Gold Coast Enterprises Mr. Terry Smith, CMCA, AMS Haven Management, LLC Mr. Dan Saldana Mailboxes R Us Ms. Valerie Morris Merit Property Management Ms. Carrie Ballesteros Mission Landscape Companies Ms. Ruthie Horner Southcoast Properties Mr. Jay McGuire Three Phase Electric Ms. Dionne Petitpas Vertex Coatings, Inc. Mr. Russell Phillips Vintner’s Grove Community Association Ms. LaShanda Shipp Ms. Simone Tuelings

CLAC Wine Event See more photos on page 2

connect with grie • issue TWO 2011

| 23

5029 La Mart, Suite A Riverside, CA 92507-5978