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 2012
THE BENEFITS OF CAI MEMBERSHIP CAI Provides a Wide Range of Member Benefits for Homeowners – Spread the Word! Association Volunteer Leaders Member Benefits Educational Opportunities for Manager Members Designations – Managing the Right Way (Part II)
A Homeowner’s Valuable View of Membership with CAI
A Business Partner’s Perspective on Member Benefits
The Quiet Surprise in the Hills
Rosetta Canyon Community Association
Make Your Voice Heard CAI-CLAC’s 19th Annual Legislative Day at the Capitol
In Community Association Law…
We solutions... theprovide Devil is in the details. you are involved in the management of a toIfcommunity complex Community association, you know that State Association issues. and Federal laws thatlegal govern associations complicate decision-making and make the
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detail ensures that clients receive effective, Our attorneys handleto a continuing and practical solutions legal problems. varied stream of association legal matters. Letcollaborate our comprehensive understanding of We and share our ever-expanding knowledge with each other,law andcontribute with our to community association clients. This can be a association. real benefit to your the success of 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. Call us today… We have a lot of common interests.
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connect Table of Contents A Publication of the Greater Inland Empire Chapter of CAI
OFFICERS Robert Riddick, CMCA.............................................................. President Sunnymead Ranch Planned Community Association Lana Hamadej, LSM, PCAM..............................................President-Elect
Avalon Management Group, AAMC
4 Spread the Word!
Kimberly Lilley, CMCA, CIRMS......................................... Vice-President
By Jan Hickenbottom, PCAM, CCAM
Berg Insurance Agency, Inc. Linda Krebs ............................................................................... Secretary Flower Lighting & Electric Gina Roldan . ............................................................................ Treasurer Vista Paint Corporation Ken Carteron .................................................................... Past-President Seacoast Commerce Bank
7 The Benefits of Community Association Manager Membership By Jacqueline A. Dao, Esq. & Sheba S. Yaqoot, Esq.
27 Make Your Voice Heard: CAI-CLAC’s 19th Annual Legislative Day at the Capitol By Nancy I. Sidoruk, Esq.
29 Recordation Delays Impact HOAs
10 Board Benefits – The Value of CAI for CAVLs
Weldon L. Brown . ...................................... Weldon L. Brown Company
By Kimberly Lilley, CMCA, CIRMS
13 The Value of CAI Business Partners
30 Federal Reserve Issues Guidance to Banks on REO Rentals
14 As the Old Saying Goes: Membership Does Have Its Privileges!
By Robert Riddick
6 President’s Message
16 One Homeowner’s Valuable View on CAI Membership
By Robert Riddick, CMCA
Linda Cooley.............................Rosetta Canyon Community Association Dana Mathey, CCAM.............................. Euclid Management Company Matt D. Ober, Esq., CCAL ........................Richardson Harman Ober, PC Tiffani Reynolds....................................... Rodent Pest Technologies, Inc. Shelly Risbrudt Kristie Rose, CMCA, AMS, PCAM, CCAM... Merit Property Management Alisa Toalson, CMCA, CCAM......Professional Community Management Gwen Wertz.......................................................... CommerceWest Bank Chapter Executive Director DJ Conlon, CMCA Administrative assistant Christine Hilditch Editor in Chief Betty Roth, CMCA, AMS, PCAM...Avalon Management Group, AAMC Publications Committee Tom Carrasco . ..Environmental-Concepts Landscape Management, Inc. Jacqueline Dao, Esq. ................................ Fiore Racobs & Powers A PLC Lana Hamadej, LSM, PCAM ...................... Avalon Management Group Jan Hickenbottom, PCAM, CCAM . ........................................ First Bank Kelly G. Richardson, Esq. ..........................Richardson Harman Ober, PC Mahendra Sami .................................................................... Union Bank Nancy I. Sidoruk, Esq. . ...........................Epsten Grinnell & Howell, APC Jasmine Termaine, Esq...................................... Beaumont Gitlin Tashjian Sheeba Yaqoot, Esq. ................................ Fiore Racobs & Powers A PLC DESIGN & PRODUCTION Kristine Gaitan..................Rey Advertising & Design/The Creative Dept.
By Linda Cooley
18 Rosetta Canyon Community Association – The Quiet Surprise in the Hills By Robert Riddick
20 Ensuring Communities Continuing Access to Education: The CAI Resolution By Kelly G. Richardson, Esq.
24 Managing the Right Way Part 2: The Growing Importance of Manager Designations
By Skip Daum, CAI-CLAC Legislative Advocate
9 Editor’s Link By Betty Roth, CMCA, AMS, PCAM
12 Business Partner Spotlight – Rodent Pest Technologies By Tom Carrasco
21 Committee Corner: Membership Recruit for Retreat 22 New, Renewed & Rejoined Members 31 CLAC Wine Event
By Jon H. Epsten, Esq.
All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Connect or the Community Associations Institute–Greater Inland Empire Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney. Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI–GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Community Associations Institute of Greater Inland Empire Chapter.” Copyright © 1998–2012 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
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 2012
By Jan Hickenbottom, PCAM®, CCAM®
Spread the Word! CAI Provides a Wide Range of Benefits for Homeowners
he American Heritage Dictionary defines lifeblood as “an indispensable or vital part.” Let’s reflect on this statement: Homeowners are the lifeblood of Community Associations Institute (CAI). CAI was formed in 1973 as a national non-profit organization dedicated to providing education and other resources to the volunteer homeowners who govern community associations. The organization now has four membership groups: CAVLs or community association volunteer leaders for board members of associations or individuals who live in associations. The second group consists of association management companies. The third group is individual community association managers. The fourth group is the business partners group, which 4 | ISSUE TWO 2012 • Connect with grie
consists of the professionals and service providers who serve the common interest development industry. It’s been said that every industry has its jargon and its acronyms. One of the most common terms in our industry is common interest development or CID. Well, CAI has plenty of other acronyms! All those designations mean something: PCAM, LSM, AMS, CMCA, AAMC, RS, CIRMS, CCAL… the list goes on. But the most important members in our organization are those classified as CAVLs – Community Association Volunteer Leaders. These are association board members or individual homeowners who join CAI for the education and other resources that it provides. Why are they the most important members? The rest of the members (business
partners, managers and management companies) participate in CAI specifically because their companies serve CIDs and the CAVLs who live in them. That leads us back to the statement that homeowners are the lifeblood of the organization. Much of the membership growth in our organization comes from one of our members referring someone else to CAI. All of us can be effective membership recruiters, and knowing about the benefits will help you to be an effective recruiter, too. All members of CAI are members of CAI National, as well as the local chapter in their geographical area. There are many benefits that sometimes overlap, like the resources that are available online at the national and the local chapter websites. Homeowner members of CAI can register at www.CAIonline.org and take advantage of many resources
website as well as homeowner orientation information to help new members understand what association living really means. • There are many books, pamphlets and other publications to help homeowner leaders solve pressing issues…just order them online at www.CAIonline.org bookstore and take advantage of your member discount. • The national website has links to each of the chapter websites around the country. If you want to know if your Aunt Tilly in Chicago could join a CAI local chapter in her area, you can find it and click on the link to access the Illinois Chapter’s website. Aunt Tilly can sign up online and put your name on the “Referred by _______” so that you get credit as the recruiter. • Learn about the Rights and Responsibilities for Better Communities
available for members only: • Board Member Tool Kit: an easy-to-use manual that explains the roles and responsibilities of board members and provides practical guidelines on topics such as elections, finances, rules enforcement and other subjects. • A free online homeowner education course that you can read whenever you have the time to take advantage of it. • If finding relevant information and a willing writer for your association newsletter is a difficult task, you may download articles from the website at no cost and with no worries about copyright infringement. • You may download sample letters, forms, and templates to adapt for your association’s use. • Answers to frequently asked questions can be found on the
– a guideline for governance that an association board can adopt as their model for governance. • A Code of Ethics for Community Association Board Members is also available. • Once a year, CAI National holds its Annual Conference with topflight educational courses and nationally-recognized speakers. CAI National not only publishes Common Ground magazine, there is also an electronic newsletter, Minutes, that is emailed bi-monthly. CAI’s Law Reporter will keep you informed about recent legal cases from around the country that might have an impact on the way that your association is operating. The resources available through the local Greater Inland Empire Chapter are also significant. The chapter’s website is www.cai-grie.org. You can register there and find accredited management companies or service providers listed in the online directory or learn about and register for an upcoming educational
luncheon. Connect magazine keeps members informed about issues facing associations in our area, techniques for effective association operations or updates on legislation or recent legal cases that may affect your community. The magazine also contains announcements about upcoming events and educational opportunities. Annually, the chapter publishes a Membership Directory that is a helpful tool to find professionals, and qualified business partners when the need arises. You can count on these companies to understand your needs and your priorities. Our local chapter also provides numerous opportunities to network and socialize with other members. You can find the committee chairs and volunteer to serve on a committee that interests you. By attending events and working on committees, you will have the opportunity to meet other homeowners who are dealing with similar issues or, perhaps, they will share their success stories that you can put into practice in your community. If you are a homeowner member of CAI and you haven’t been aware of all of these resources, just look what you have been missing! With all of this information, each of us can reach out to other homeowners or other potential members who need to know about CAI. You may be eligible for prizes at the local or national level if your recruiting efforts are successful. By recruiting more homeowners, we’ll keep that lifeblood flowing that revitalizes our organization.
Jan Hickenbottom, PCAM®, CCAM®, is a Vice President at First Bank in its Association Bank Services division. She is a member of the Greater Inland Empire Chapter and serves on its publications committee. She has been a member of CAI for more than 33 years. connect with grie • issue TWO 2012
Greetings once again, to all of our CAI-GRIE members, interested readers, and those of you who might have found our magazine in front of you by no fault of your own. Let me just say that however this copy arrived in your hands, I’m hopeful that by the time you’ve finished reading it you will have been a little more informed about who we (CAI-GRIE) are as a Chapter, Robert Riddick, CMCA than you were before reading it. And I’m even more hopeful that you will have enjoyed reading the articles written by our members for our members, and written especially for those community association volunteers who receive a copy of this issue. As most of you know, our theme this year focuses on re-visiting the primary reasons our Chapter came into existence, which were mainly to identify, attract, educate and advocate for and on behalf of community associations (HOAs and CIDs) and their respective residents, as well as those business partners and management companies that support the HOA industry and that are geographically located within the Greater Inland Empire. Looking at the cover of this issue says a lot about how we are focusing on that effort. You’ll notice that there are articles that cover both National as well as Chapter membership and its benefits; the benefits of membership from a management company’s perspective; the same from a business partner’s perspective; and especially the benefits of homeowner membership in CAI. You’ll also see that last year’s Magazine Editor, Kelly Richardson, has written on how board memberships in CAI can be achieved through the creation and use of Board Resolutions. Interesting, yet also instructional, to say the least. And, to be sure, all of the articles are, as always, well worth reading. And, keeping in line with our theme for this year, as well as the articles that address membership and the associated benefits, you'll also see that we've launched a very robust Chapter Membership Drive that will go through the end of this year. In conjuction with the drive, I'm also encouraging each and every current member of our Chapter to make that extra effort to identify and invite potential new members, especially Community Association Volunteers, to any one of our upcoming Chapter events, as a way of showcasing the multitude of benefits that membership in our Chapter offers to them. In closing for this issue, we’re now into our second quarter of the year and, in looking back over just the past three months, we have already accomplished much in the way of Chapter events, activities and growth. Our educational programs continue to excel in both their content, as well as delivery, our mini-trade shows have produced sustained and outstanding attendance, our networking and social events continue to attract our members coming out to enjoy well-deserved fun ‘down-time’ with each other, and we’re not even halfway through the year yet! All I can tell you is that you will be nothing short of impressed by what we have in store for the rest of 2012 here in the Chapter. Stay tuned … and thank you, to all of the membership for your continued support.
6 | ISSUE TWO 2012 • Connect with grie
Full Service HOA Management Financial Services Administrative Services Websites
By Jacqueline A. Dao, Esq. & Sheba S. YaQoot, Esq.
The Benefits of
Community Association Manager Membership
hy should managers and their management companies become members of CAI? CAI is a professional organization that supports community association managers and provides educational opportunities, marketing opportunities, and professional development and networking opportunities to enhance and expand their career. CAI offers a variety of educational opportunities and
resources that cover many topics including new trends, laws, and legislative issues that affect community associations. Jennifer Jahn, CCAM of Weldon L. Brown Company, has been a member of CAI for seven months. She learned about CAI through her employerâ€™s involvement in the organization, and decided to join for educational purposes. She believes that the greatest benefit of her CAI membership has been the knowledge she has obtained on new laws that affect community Continued on page 8
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The Benefits of Community Association Manager Membership Continued from page 7 associations each year. Charlie Magnan, CCAM, CMCA, AMS of Professional Community Management (PCM), has been a member of CAI for over three years and learned about CAI while researching community association management and professional organizations online. Ms. Magnan also believes that the greatest benefit of her CAI membership has been the education she has received from CAI. Ms. Magnan stated that “The more I learn, the better manager I become and the greater asset I am for my communities.” In addition to educational opportunities, CAI offers professional designations that give managers a competitive advantage in the industry. Ms. Magnan believes that “joining an organization [like CAI] that educates and certifies persons in this industry
8 | ISSUE TWO 2012 • Connect with grie
shows others that you are serious and committed to your profession.” Whether you are a new manager or an experienced manager, professional designations will increase your knowledge and credibility, and will help further your career goals. Being a CAI member also provides opportunities for management companies and managers to advertise and market themselves in its publications and at its numerous events. Ms. Jahn agrees that the marketing opportunities are a benefit of CAI membership. CAI membership and CAI events also provide unparalleled access to professionals and service providers who serve community associations. This access gives managers the opportunity to expand their professional networks, build business relationships, and learn from their peers in the industry. Ms. Magnan and Ms. Jahn agree that the access to business partners is a benefit of CAI membership.
In addition to providing numerous educational and professional growth opportunities, CAI also provides social events for its members, such as the recently held Monte Carlo Night. Ms. Magnan has been strictly attending educational events, but she was really looking forward to the Monte Carlo Night this year, and Ms. Jahn said that Monte Carlo Night is her favorite CAI event.
Jacqueline A. Dao, Esq. and Sheba S. Yaqoot, Esq. are associate attorneys in the Assessment Collection Department at Fiore, Racobs & Powers, A Professional Law Corporation.
Editorâ€™s LINK April and May brought two very exciting and exceptional events; the annual California Legislative Day at the Capitol and the annual CAI National Conference which was held in Las Vegas, Nevada. Both events were very successful with great attendance by our GRIEChapter. The Legislative Day gave us all an opportunity to have our voices heard by our assembly and senate and the National Conference had wonderful opportunities for Betty Roth, CMCA, AMS, PCAM professional networking and education with their classes and seminars. This issue presents a series of articles focusing on the variety of benefits that come with membership in CAI through the eyes of board members, associations, homeowners, business partners, managers and management companies. We also have articles on the importance of manager designations, the value of business partners, the impact of recordation delays on associations, and a comprehensive recap of Annual Day at the Capitol. We hope you will find the information in this issue of Connect useful and we appreciate your continued support of the GRIE-Chapter and CAI. The topic for our next issue is insurance and the benefits of a comprehensive understanding of insurance by boards and managers. The deadline for submitting articles for the next issue is August 1st. It is very rewarding to have an article published and can also serve to accumulate points towards achieving your accreditations. If you are interested in submitting an article, our policy and guidelines are available on the chapter website or feel free to email me at firstname.lastname@example.org and I will be happy to send you a copy.
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 â€˘ issue TWO 2012
By KIMBERLY LILLEY, CMCA, CIRMS
The Value of CAI for Community Association Volunteer Leaders ommunity Associations Institute (CAI) could not exist without the Community Association Volunteer Leader (CAVL) membership category. Board members of associations are why the rest of the members join: Managers to learn how to manage board members and associations better, as well as to make connections with potential clients; and Business Partners to learn how to serve associations in a way that benefits everybody to the greatest degree. But what do the CAVL members get out of it? I’ve been asking around, and this is what I have learned: Advocacy. A large percentage of homeowner members of CAI are members because they believe that CAI represents associations well at both a state and federal level when it comes to educating our legislators about the true impact of the bills they introduce and pass in the legislature. Good education of legislators means better lawmaking and less negative impact on the associations (often fiscally) from bad legislation. Education. Another large response, association volunteer leaders value the education they receive from CAI. Here are some of the educational forums that homeowners value: Board Fundamentals Course. A 3-hour overview of the basics a board member needs to get their feet under them when they are first elected to the board. Some associations send people running for the board to this class, since it is affordable with a 10 | ISSUE TWO 2012 • Connect with grie
minimal time commitment, so their potential board members know what they are getting into! Board Essentials Class. This eight-hour course covers CID overview, Rules and Regulations, Financials, Reserve Studies, Insurance, Problem Solving and Maintenance and Board Meetings and is taught by four instructors who are experts in their fields. While individual board members often attend, success was reported in having the manager and all board members from an association attend, so that they hear the same information and can build on that information as a team to benefit their association. CID Law Course. This day-long class focuses on the laws that affect community associations in California. The class talks about current law, new law that will affect associations and case law that affects how judges will rule on court cases in the future.
It’s a great way for board members to become aware of changes in how they need to operate to satisfy new legal requirements. Educational Programs & MiniTrade Shows. Whether it is a lunch or a breakfast, board members benefit from the focused education that comes from attending the programs presented. CAVLs can learn about things such as managing difficult people, pest control, emergency preparedness and many other important topics. They also benefit from meeting business partners at the Mini-Trade Show and getting to learn about the latest trends, so they have vetted vendors ready to call when they are needed. Connect Magazine. Association board members use the Connect Magazine as a tool to communicate important information to the rest of their boards and to keep abreast of new and emerging trends in the
industry. A new way to keep those lamp posts looking black without having to paint constantly? An association board member probably learned about it in Connect Magazine. National Webinars. National produces webinars on topics that affect all different categories of membership within CAI. Once recorded, the webinars remain on file and can be viewed “on-demand.” Another cost-effective way for a board (and manager) to gain knowledge, there is a discount for each additional person viewing the webinar, and the whole board can gather information that they can then use as a team. Membership Directory. The CAI Greater Inland Empire Chapter has a directory that lists important information, including business partners that serve homeowners’ associations. When a board needs a vendor that is familiar with HOAs and how to work with a board of
directors, not to mention the laws that specifically apply to community associations in California, the Directory is an excellent place to turn as a resource. Committee Membership. A value-added benefit of membership in CAI is the ability to serve on the committees that contribute to the Chapter. Board members are excited to participate in committees like the Legislative Support Committee and the Education Committee that shape policy and make a difference in the quality of life and information available to association homeowners. National Communications. National provides value to a CAVL’s membership by including them in a monthly newsletter that speaks to the needs of a board member volunteer. They also have a list-serve email group that fields (and answers) questions from board members from all over the world! Add to that a
Board Member Tool Kit that can be downloaded to assist in interviewing contractors, taking minutes, and other board duties; and they also have a book store that gives members discounts on books that speak to exactly the thing they need to hear! In CAI, board members have many reasons to stick around: From the amazing educational opportunities, to having the right resources, to BEING a resource to the state and local governments, community association volunteer leaders benefit from being a member of this amazing international organization.
Kimberly Lilley, CMCA, CIRMS, is Director of Marketing for Berg Insurance Agency and served for five and a half years on her association’s board of directors.
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connect with grie • issue TWO 2012
Business Partner Spotlight Angelo Tomiselli Rodent Pest Technologies
While their name, Rodent Pest Technologies, signifies their rodent control background and expertise, they are actually a full service pest control company. They provide services for the control of insects, rodents, termites, birds and animal trapping. Angelo Tomiselli, the Owner and founder since 1994, says that “One of our passions is educating the managers and communities we serve.” Rodent pest technologies has been a member of CAI since their beginning in 1994. Angelo heard about CAI through a property manager he was working with while they were supplying them a proposal for one of their communities. The property manager told him about CAI, explained the benefits and Angelo agreed. They are now active members in the Inland Empire, Orange County, San Diego and Los Angeles chapters. When Angelo was asked what he feels are the greatest benefits to being a member of CAI he responded, “I don’t even know where to begin on this because there are so many benefits. One of the greatest is being part of an organization that fights for communities and helps to educate them
and their members on important issues that can greatly affect how their community operates. As for the benefits as a business partner, it allows for us to meet with the managers and even board members we serve and provides us an opportunity not only to help solve their pest issues but provide a resource to help them understand why they are having issues.” While being a member of CAI for the last 18 years, Rodent Pest Technologies has enjoyed positive growth of at least 12% every year. Mr. Tomiselli states, “The growth as a company has been incredible! The opportunity CAI offers to business partners is outstanding and for that we are extremely grateful!” Angelo’s favorite CAI event that he has attended was the bowling event...tickets please! What Angelo won’t tell you is that he and his team at Rodent Pest Technologies are very active and supportive at each chapter that they belong to, further enhancing their experience as a CAI member. Contributed by Tom Carrasco, President and CEO of Environmental Concepts.
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Waterproofing Deck Coatings Roofing Stucco ~ Siding Pools & Spas Maintenance
The Value of CAI Business Partners
Business Partners are essential to the success of homeowner and condominium associations from coast to coast.
AI Business Partners are indispensable to common-interest communities. More than just product and service providers, these valued CAI members are good corporate citizens. They contribute to CAI publications, speak at CAI conferences and teach CAI professional development courses. Their involvement in CAI is an investment in the very concept of commoninterest living. CAI Business Partners are also essential to the success of homeowner and condominium associations from coast to coast. Compared to nonmember service providers, CAI Business Partners are generally more likely to: 1. Understand community association operations, which saves associations money and reduces frustration for board members and community managers. 2. Have products and services specifically designed for community associations; they don’t try to force-fit generic solutions into the community association model. 3. Be attuned to community association trends and in a better position to make recommendations and suggestions that a nonCAI business partner may not even consider. 4. Have experience with other community associations, therefore understanding the nature and dynamics of community associations and how best to serve them. 5. Be familiar with community association management, governance and best practices. 6. Understand the roles of board members, management professionals and residents and the relationships among them. 7. Understand the proper request-for-proposal and vetting processes. 8. Understand community association finances – invoicing, budgets (operating, deferred and long-term) and reserve studies. 9. Be exposed to the unique and evolving aspects of community associations through CAI education, publications and events. Importantly, CAI Business Partners sustain CAI through their membership dues, sponsorship and advertising – support that helps keep CAI membership, education and events more affordable for all members.
connect with grie • issue TWO 2012
As the Old Saying Goes:
Membership Does Have Its Privileges!
nd, in CAI that couldn’t be more true. Most of us, when we think about our membership in CAI, almost instinctively think only about how it’s reflected here within our Chapter. Not often do we think about what that same membership entitles us to at the National level of CAI. Hopefully, this article will shed a little light on just what each of our memberships actually makes available to us beyond the boundaries of CAIGRIE. Anyone who wants to visit CAI National’s website can do so by simply entering the site address (www. caionline.org), but as an active member of our CAI chapter, we also have access to “members only” features that, 14 | ISSUE TWO 2012 • Connect with grie
once accessed, provide a wealth of information, links to valuable resources, and many other features not available to non-members. These include, for example, a link to Member Resources, where, as a member, you will see that CAI offers a Retirement Program that’s administered through AXA Equitable Life Insurance, and geared specifically to CAI members. Also in Member Resources you’ll see that CAI has partnered with Maxim Health Systems to administer the flu clinic program for CAI members. Maxim Health Systems is a communitydriven organization that is committed to educating the public about the benefits of flu and pneumonia immunization and ensuring that the vaccine is widely accessible.
You’ll also see that CAI has partnered with Hertz Rentals and you, as a member, can realize savings available to you by referencing CDP # 1717299 the next time you are renting a car. Not a big deal perhaps, but the next time you need to rent a car, you may be pleasantly surprised at the savings offered to you as a member of CAI by taking advantage of our relationship with Hertz. On the same website you’ll be able to take advantage of resources designed for each of our membership classes, i.e., resources for our Manager members, for our Management Company members, for our Community Association Volunteer Leader members, and resources for our Business Partner members.
by ROBERT RIDDICK
In addition, there is a wealth of educational information, geared towards providing you, the members, with all of the tools you need to assure the success of your professional development within the HOA industry. Everything from classes that prepare you for that next level of professional certification, to how to better market your particular business services or products to those in need of them, to how, as a homeowner board member you can better provide for the optimum in association governance in your roles as community volunteers. It’s all there on the website, and all of it was developed with one purpose in mind: to provide that valueadded benefit to the members of our organization for being a part of CAI. Back to the website for a moment. Other significant “members only” links available include access to the digital version of the bi-monthly magazine Common Ground. You’ll also have access to our Board Member Tool Kit, designed to help new board members quickly grasp and manage those concepts surrounding HOA governance and all of its nuances. You’ll also have access to a very robust set of forms and templates that include topics such as Bidding and Contracting, Board Meetings, Community Leadership, Community Operations, Financial Management, Human Resource Management, Insurance and Risk Management, Legal Aspects, Maintenance, and Rules Enforcement. And finally, there is a library of archived articles that deal with every imaginable topic that’s related to the governance of HOAs. They are available to any member who has a need for them, all free of charge. And, of course, as a member of CAI, you are entitled to attend all of our CAI events at discounted prices, which include attendance at the National Annual Conference, Law Seminars,
There is a wealth of educational information [available on www.caionline.org] geared towards providing you with all of the tools needed to assure the success of your professional development within the HOA industry. CEO-MC Retreats, our webinars, CAI Legal Forum: California Communities (especially geared towards Californiacentric legal issues), as well as the Large-Scale Managers Workshop. As members you also have access to online directories of association leaders and homeowners, service providers, and credentialed professionals. There is much more that your membership in CAI entitles you to, but space is limited here in being able to describe everything, so I’ll close by just reminding all of you that your membership in our chapter of CAI offers you more than you might think. And, a good place to start taking advantage of it (if you haven’t
already) would be by visiting CAI National’s website the next time you find yourself surfing the web. You just might be surprised to see that, in fact, membership in CAI really does have its privileges.
Robert Riddick is the 2012 CAI-GRIE Chapter President and serves on the board at his community association, Sunnymead Ranch Planned Community Association. Robert also serves on the CAI National Board of Trustees. connect with grie • issue TWO 2012
CAI Membership by the Numbers
31,682 National CAI Membership count as of 3/31/2012
30,558 National CAI Membership count as of end of 2011
30,188 National CAI Membership count as of end of 2010
60 Chapters CAI Chapters (National/International)
25,590 National Renewed Members as of 12/31/2011
4,968 Total New Members 1/1/2011-12/31/2011
One Homeowner’s Valuable View on CAI Membership BY LINDA COOLEY
y name is Linda Cooley and I am the Vice President for my association, Rosetta Canyon Community Association in Lake Elsinore. I first became aware of CAI when our board made a decision to seek bids for management. We sent an extensive Request for Proposal (RFP) to seven management companies and after receipt and review of the proposals; we arranged to interview the companies and the prospective manager candidates. It was during this process that I personally first became aware of CAI. During our interview process, I learned the significance of the designations that follow the names of some management companies (AAMC®) and those that some individual managers have earned such as CMCA, AMS, LSM and PCAM and how those professionals and their management firms differentiate themselves from those that do not have these designations. My board and I recognized that the companies and professionals that have these designations demonstrate a commitment to the community association industry by providing the highest level of service and participating in continuing education. This commitment was a huge factor in making our selection. Our community has improved in so many ways. Shortly after this I was asked to run for the Board of Directors of our CAI Chapter. I was fortunate to be elected in the category of Community Association Volunteer Leader. I continue to learn more and more about the importance of CAI in my role as an association board member and now as a chapter leader. I am pleased to announce that at our April meeting; the CAIGRIE Board of Directors unanimously adopted the Community Association Board Resolution for CAI Membership. This resolution can be used by association boards to formalize the decision to join CAI. The resolution outlines the importance of CAI membership and provides for the association to budget for the membership fees related to this valuable resource.
Total Retention Rate for year ending 2011 *Statistics provided as part of the 2012 Annual Meeting held at the 2012 CAI Annual Conference in Las Vegas, Nevada, May 2 - 5, 2012 Linda Cooley serves as Vice President for the Rosetta Canyon Community Association and is a member of the CAI-GRIE Board of Directors.
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Rosetta Canyon Community Association
in the Hills
Early last year on a lazy Saturday afternoon I drove, from my home in Moreno Valley, to Lake Elsinore. Our community lake had just suffered a huge ‘fish-kill’, and after doing a little research I found out that Lake Elsinore had suffered the same fate a couple of years back. And so I thought as a board member of my association I’d drive over there to talk to some of the lake folks about what measures they took to prevent something like that happening again to their lake, and use that information at our community lake. The last leg of my drive found me cruising down California highway 74, from the city of Perris down to and crossing Interstate 215, before heading into the tidewaters of Lake Elsinore. An interesting and relatively peaceful drive, for sure. And once there I did the expected Q & As with the locals regarding their own ‘fish-kill’ and, in fact, picked up some rather useful information to take back with me. On my way back I couldn’t help 18 | ISSUE TWO 2012 • Connect with grie
but notice a group of homes nestled on top of one of the nearby east hills that, at least from my visual perspective, seemed to be almost glowing as a result of the setting sun’s light hitting the western-facing sides of the homes. Intrigued enough to take a turn off the highway at the next corner, I drove up to the area to check it out. Just the ‘curiosity’ in me, and nothing more. A short drive and I found myself in the near-middle of a relatively new community that I later found out was named Rosetta Canyon Community Association. I drove around the area, which looked as if there was still some future developing to be done, but most of the homes that had been plotted for had already been built. The setting was pretty amazing, especially if like me, you’re one that enjoys being close to nature and all of its peaceful serenity, including a multitude of canyons, traditional southern California high-hills shrubbery, soft-rolling hills, nicely
laid-out walkways, and a quietness broken only by an occasional sound of a single mockingbird chasing an interloping ravine away from his protected territory. Located in the Ortega hills between Highway 74 on its western side, Interstate 215 on its south side, and the rolling hills and canyons on its east side, and officially a part of the city of Lake Elsinore, Rosetta Canyon Community Association is comprised of 1,040 single-family homes, with a total population of approximately 3,000 residents. Development began back in late 2005 and early 2006, with most of the homes completed over the next two years. Included in the development is a K-6 Grade school that is part of the highly regarded Elsinore School District. Managed professionally by Avalon Management Group, located in Canyon Lake, the community is governed by a five-person Board of Directors, made up of residents of the association. There are also a number of committees, comprised of residentvolunteers, that provide various resident-friendly activities yearround, and at no cost to the residents, including an annual Easter-egg event, a Breakfast with Santa, and even Movies-in-the-park, all of which are hosted at their nearby 23-acre park. I later discovered that one of our newest members of our Chapter Board of Directors, Linda Cooley, not only lives there, but is also a member of the Rosetta Canyon Board as well. I grabbed at the opportunity to ‘pick her brain’ about all things Rosetta Canyon,
and she was kind enough to provide me with the following insights about her community: although they don’t have the usual amenities that other associations have (and therefore don’t incur the corresponding costs for) such as a community pool, clubhouse, tennis courts, etc, they have worked out a very good arrangement with the city for the use of the city’s 23-acre park located nearby to conduct most of their community activities. The park includes basketball courts, tennis courts, barbeque pits, well-lit walking paths, and even a dog park, all available to the residents of Rosetta Canyon. I asked Linda what were the two biggest accomplishments of the Association over the past year or so, and she proudly told me that they had made tremendous progress with the Association’s water management and related expenses, to the point that they were recognized by the local water district (EVMWD) for their conservation efforts. She also told me that their cost-containment initiatives adopted by their Board and management of expenses has resulted in at least two reductions in homeowner assessment fees during recent years. And, she couldn’t help expressing, with a lot of expected pride, that they’ve also implemented a very successful Neighborhood Watch program that has all but eliminated any serious crime issues in the community. I ended the conversation by asking her why she thought she and her neighbors chose to move there in the first place, and her answer was what I had already anticipated: “This is a great community and it’s like a secret no one knows about, except those of us who live here.” I couldn’t agree with her more about… the quiet surprise in the hills. Robert Riddick is the 2012 CAI-GRIE Chapter President and serves on the board at his community association, Sunnymead Ranch Planned Community Association. Robert also serves on the CAI National Board of Trustees.
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2012 Legislative Day - GRIE members meet with Assembly Member Torres.
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connect with grie • issue TWO 2012
Ensuring Communities Continuing Access to Education: The CAI Resolution By Kelly G. Richardson, Esq.
Community Assoc iation Board Resol ution for CAI Mem bers
Wh ereas, The ____ ________ Associa tion (hereafter refe best interests of a renced as the “Ass ll own ers in the com ociation”) board s munity; erves in the Wh ereas, The Asso ciation directors h ave the fidu ciary resp Association accordi onsibility to mana ng to established ge the assets of the business practices eth ica l and p ositive and prin cip les, and community governa pursuant to compet nce; and ent, Wh ereas, The Asso ciation directors n eed to stay abreast association governa of trends and best nce, mana gement practices in commu and operations; a nity nd Wh ereas, Commu nity Associa tions I nstitute (CAI) is dedi best practices to h cated to providin g elp association lead information, educat ers build and sust ion and ain s trong and viab le communities; a Wh ereas, CAI is the nd leading advocate for common-‐interes legislative and regu t communities befo latory bodies; and re state and federal Wh ereas, Current and future Associa tio n residen ts will bene to their directors fit from the trainin by CAI—both natio g and education p nally and through rovided chapters; and Wh ereas, CAI mem bership will give A ssociation d irecto insights through m rs access to valuabl agazines, newslette e ideas, informatio rs, web conten t a n and nd edu cational even ts; and Wh ereas, CAI mem bership will s erve the best interests of current and futu re own ers of the A Resolved, That the ssociation; Associa tion invest in a full or partial board membershi p package; and Resolved, That it i s the policy of the Associa tion that b CAI membership t oard members join o optimize the gove CAI and take full rnance a nd mana advantage of gement of the com munity; and Resolved, That the Associa tion’s annu al bud get shall includ memb erships b e t e fund ing for CAI ransferred from a membership, and ny departing directo education events that said r to the new directo may be paid by the r. Attendance at C Association, at the vote by a majority AI discretion of the b of the directors a oar d, requ irin g an affir nd recorded in the mative open meeting minu tes; and Resolved, That the Associa tion strongl y encourages its m to take advanta ge anager and other of CAI membershi profess ional s ervice p to gain the knowle to better serve the providers dge, information a association. nd insights that enab le them SO RESOLVED BY THE BOARD OF DIRE CTORS on this, the ___ day of _______ in the year _____. _______________ _______________ __ Secretary of the B oard
ommunity associations can benefit greatly from CAI involvement. Therefore, along with all the other policies adopted from time to time by boards of directors, why not consider having your association adopt a formal policy encouraging CAI membership? Board resolutions are a way to state an official policy of the association. Such a resolution would, as with any minutes, be made available to any member in the association. • CAI has prepared a model resolution for consideration by HOAs. It is designed to: • Recite the importance of the Institute to good association governance; • Encourage (but not require) directors to be members of CAI during their terms of association service; and • Confirm that the cost of membership for current directors will be budgeted by the association. Homeowners: Consider suggesting your boards adopt this as association policy. Managers: Suggest all of your client associations adopt this policy. Business Partners: Place this resolution on your website, or wherever you provide information to homeowner associations. CAI is an extremely needed resource for common interest developments. Each crazy story from the news or court cases proves that point. It is up to us to get the word out and let the real estate public know that CAI is not only an option, but should be considered a necessary resource for all associations.
Kelly G. Richardson is Managing Partner of Richardson Harman Ober PC and is a Trustee of CAI.
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You can download a PDF file of this resolution by going to the Chapter website: www.cai-grie.org/Documents/ HOA Board Resolution-CAI Membership Board Resolution
The GRIE Chapter Membership Committee is Looking to Reward You! We all work hard throughout the year at our positions with our companies so it’s only natural that we want to reward ourselves with a vacation. What better way to do both than by recruiting new members to our chapter and entering yourself into a drawing to win a fabulous vacation! We have a choice of three destinations – San Francisco, Santa Barbara or Camelback Inn Scottsdale, Arizona! We all like being rewarded for our hard work and here is a great way to better our organization and enjoy the destination of your choice by recruiting a new member or multiple members. Anyone you know that is part of an association or management company or affiliated with the associations such as a business partner is eligible for entry. We all know someone that could benefit from the invaluable education classes that are offered to our members. Extremely entertaining events are put on by our fabulous committees and our sincere involvement in our legislative action to better our communities. If you know of this person or persons, all you have to do is either direct them to the CAI-GRIE office and speak with DJ or give them an application for membership, pre-fill in the “referred by” section with your name so you’re sure to get credit for the referral, and submit the application with payment to our local CAI office and they can take care of the rest for you. You receive one entry for every referral that becomes a member in 2012, so increase your chances by referring several! It’s as simple as that! So let’s get out there and recruit and then relax at a fabulous destination of your own choosing!
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Partner with Strength. Partner with Pacific Western Bank. Shelly Davis, Vice President (951) 493-2381 email@example.com
David Luna, Vice President (626) 852-8201 firstname.lastname@example.org
Rosalio Ulloa, Vice President (909) 448-7609 email@example.com
connect with grie • issue TWO 2012
Attention Business Partners, Chapter Executive Directors, Managers and Board Members
hink about this. Approximately 20% of the population of the United States lives in common interest communities (HOAs, condos, co-ops). That is 60 million people. There are millions of homes in these organizations. There are hundreds of thousands of these organizations and tens of thousands of managers. Is there enough business in this arena for CAIâ€™s educated business partners? In these tough economic times, there is a lot of business farming to be accomplished. Most of these associations need landscapers, carpenters, accountants, engineers, general construction people, etc., etc. There are millions of persons and entities available to provide the services
22 | ISSUE TWO 2012 â€˘ Connect with grie
and materials that go into constructing, maintaining and operating these communities and homes. While CAI cannot train a finish carpenter or a CPA, it can provide and does provide business partners with tools that are required to deal with community associations through our Educated Business Partners course and distinction. Educated business partners should be teamed up with association managers with designations. This will provide a way to facilitate services through the manager without creating disgruntlement on the part of boards or owners. It is inconceivable that a truly professional association manager would want to use a mere vendor when
they have available educated business partners to assist them. Networking between and amongst managers and business partners should be promoted by Chapter EDs. This would also benefit the Chapter itself. The reasoning is that with a halfdozen to a dozen different disciplines necessary to maintain community associations, there are millions of potential members for the Chapters, many of whom have the opportunity to obtain the Educated Business Partner distinction. Thus, to repeat a too-often-repeated hackneyed phrase, this creates a winwin situation for business partners, managers, Chapters and associations with no downside.
The Magazine Committee is Interested in What You Have to Say!!! We are looking for authors to submit articles for Connect Magazine. The theme for our next issue is insurance and the importance of a comprehensive understanding of insurance for Inland Empire Chapter associations. The deadline for submitting articles for the next issue is August 1st. It is very rewarding to have an article published and can also serve for points in achieving certain accreditations. This is also a great way to promote your business. We are also looking for interesting and different cover pictures for our magazine. Please let us know if you are interested in submitting a theme-relevant photo for the cover of the magazine. Get published and get noticed! We have a new column inviting comments and feedback, both positive as well as a rebuttal on past articles in the magazine. We will select as many articles as we can for this column. The deadline is the same as the articles for the theme. If you are interested in submitting an article, our policy and guidelines are available on the chapter website, www.cai-grie.org.
Steven G. SeGal InSurance aGency, Inc. Over 33 years of experience specializing in: Condominium Associations • Planned Unit Developments • Hard to Place Associations Earthquake Coverage • High Rise Condominiums • Workers Compensation
Toll Free: 800-345-8866 • Toll Free Fax: 800-262-0973 Email: SSegal@farmersagent.com • www.farmersagent.com/ssegal
connect with grie • issue TWO 2012
by JON H. EPSTEN, ESQ.
Managing the Right Way Part 2 The Growing Importance of Manager Designations
n times past, boldly placed initials after one’s name on a business card or letterhead, representing an affiliation to some degree or organization were not necessary to distinguish yourself from others in your profession. I was looking at a medical doctor’s business card the other day, and after M.D., the initials MBA, JD and PhD followed his name. It used to be that your name and reputation alone were enough to establish your credibility, ethical values and professional competence. Times have changed. It is sometimes mindboggling to look at the “alphabet soup” of initials after some professional’s names. Ironically, some of the designations 24 | ISSUE TWO 2012 • Connect with grie
represented by these initials bear no relationship to the individual’s profession, ethical standards or competence. Nevertheless, clients are oftentimes impressed, if not mesmerized, by the initials themselves. Naive people believe that initials after somebody’s name equates to creditability. Recently, I counted no less than six sets of initials after an individual manager’s name. After spending an hour on the internet I was only able to identify four of the six initials as relating to a profession. While I still believe that your name and reputation alone are important, adding credible designations does impart to a client a higher level of commitment and industry recognition.
CAI has developed a designation program that adds value to your profession as a community association manager. This value is essential to a successful career. It is not simply imparted by allowing you to place initials after your name, but is value in that you have earned industry recognition for your accomplishments. CAI offers designations from entry level to advanced. If you are just starting out in the business you should first obtain your Certified Manager of Community Associations (CMCA) designation. The CMCA program will provide you with a basic understanding of community association operations and the roles and responsibilities of the community association manager.
Moving forward, there are the more advanced designations of Association Management Specialist (AMS) and the prestigious Professional Community Association Manager (PCAM). Specialty-type designations are also valuable, such as the Large Scale Manager (LSM) specialist designation. All of these designations are recognizable to potential and existing clients. A management company may also obtain the Accredited Association Management Company (AAMC) designation. The AAMC designation requires, among other things, that 50% of its managers hold a professional CAI designation. There are also CAI designations not directly tied into management professions, such as Reserve Specialist (RS) and Community Insurance & Risk Management Specialist (CIRMS), and membership in the College of Community Association Lawyers (CCAL). Once you obtain your designations, an association manager must also meet certain continuing education requirements. It is important to distinguish yourself by also promoting your designation; after all, it is hard work and dedication that gives you the privilege to add those professional designations after your name. Make public your successes when speaking with colleagues, vendors and clients. Be proud of your accomplishments in furthering your career and the community association management profession. CAI designations lend credibility to your hard work, but remember that your good name always comes first. Jon H. Epsten, Esq., is the founding shareholder of Epsten Grinnell & Howell, APC, and a former community association manager. Among his many accomplishments are service as past-president of CAIGRIE and membership in CAIâ€™s College of Community Association Lawyers (CCAL).
connect with grie â€˘ issue TWO 2012
New, Renewed & Rejoined Members February 1 through April 30, 2012 NEW
Allied Environmental Services Mr. Mark Fragola
Alante/MCS Insurance Services Mr. Stephen Grane
Artistic Maintenance, Inc. Ms. Marlene Arredondo
Alarmco Security Systems Mr. Jim Noe
Barclay Square HOA Ms. Brenda Emerson Ms. Cynthia Thompson Ms. Theresa Torres
1StopPoolPros (Formerly Aqua Blue Company) Mr. Todd Noesser
California Safety Agency Mr. Darrell Cowan, II Edward Jones Mr. Matthew Russell Enclave Master Comm. Assn. Mr. Howard Feng Ms. Angela Rausch Getdocsnow.com Ms. Becky Griggs Imperial Paving Company, Inc. Mr. Fitz Coy Lloyd Pest Control Mr. David Hinrichs Merit Property Management Ms. Christy Towner Milestone Building Group Mr. Christopher Pappas Moreno Valley Ranch Comm. Assn. Mr. Tyrone Harris Ms. Shyra Lowe Mr. Francisco Ramos Mr. Daniel Rice Mr. Edward Rodine Mr. Michael Thomas Mr. Aubrey Williams
Ben's Asphalt & Seal Coating Ms. Teri Braden County of San Bernardino Mr. George W. Taylor Cresta Verde Landscape Ms. Ruth Wilson Epsten Grinnell & Howell, APC Ms. Nancy I. Sidoruk, Esq. Independence At Terra Vista HOA Mr. Steven Bierbaum Mr. Ken Clark Mr. George Hernandez Ms. Daniela Kent Mrs. Judy Schrader
Animal Pest Management Services, Inc. Mr. Dan Fox Association Reserves IE, LLC Mr. Michael Nash, RS Antis Roofing & Waterproofing Mr. Dean Morrison Associations Insurance Agency, Inc. Ms. Terri Guest Automated Gate Services Mr. Steven Johnson Bathish Insurance Agency Mr. Robert Bathish Bay Alarm Company Mr. Brandon Plott Beaumont Gitlin Tashjian Mr. Jeffrey A. Beaumont, Esq. Bemus Landscape, Inc. Mr. Jon Parry Bill's Sweeping Service Mr. Mark N. Carter
Nelson Paving/Goldstar Asphalt Ms. Rhonda Reed
Cannon Management Company Ms. Crystal Griffin, CMCA
Oak Valley Community Association Mr. Kevin Goetsch Ms. Tanisha Scott
CertaPro Painters, Ltd. Mr. Dave Myers
PatioShoppers Mr. Todd Chism Patriot Paving, Inc. Mr. Joe Draper
Pioneer Real Estate & Property Management Mr. Lance Martin Optimum Professional Prop. Mgmt., Inc. (ACMF) PPM Construction Mrs. Debra Kovach Ms. Lenett Mallord Ms. Morgan Winegar Professional Community Management PPM Construction Ms. Christine M. Rodgers, CMCA, AMS Ms. Lenett Mallord Queen Anne Circle Homeowners REMCO Business Services, Inc. Association Ms. Cecilia Gillenson Mr. James Skubic Mr. Scot Wallace RSI Roofing Mr. James Adams South Shore Building Services, Inc. Mr. Tim Connor Sierra Park Community Owners Mr. Wayne Hicken Steven G. Segal Insurance Agency, Inc., Mrs. Andrea Stevens Farmers Insurance Group Mr. Steven G. Segal Sperlonga Data and Analytics Mr. Matt Martin Urban Tree Care, Inc. Mr. Oscar Corvera Spring Valley Lake Association Mr. Leo Riley, AMS, PCAM Walnut Business Condominiums Mr. Eric Anderson Stone Harbor-Bridgeport HOA Mr. Mike Weimann Dr. Dildar Ahmad Mr. Frank Corral Western Security Realty Mr. Steve Gillespie Mr. Eric Eckstrom Ms. Gioia Shelden Mr. Brad Hilt Ms. Sara Viano Mr. Mark Johnson Mr. Vern Sewell Sunnymead Ranch PCA Mr. Jeffrey Wolsleger Mr. Brian Martin Whittle Business Services Transpacific Management Service Ms. Pat Whittle Ms. Sherrie Fitschen
CINC Systems Ms. Vickie Johnson Denichilo & Lindsley, LLP Mr. Robert DeNichilo, Esq. Dunn-Edwards Corporation Ms. Allison Garcia Dutch Village Master Association Mr. Christopher Bach Mr. John Cussen Mr. Dennis Kaczor Mrs. Rana Mitchell Mr. Dan Parsley
O'Connell Landscape Maintenance Christian Burke Optimum Professional Prop. Mgmt., Inc. (ACMF) Ms. Cynthia Hunter Park West Landscape Maintenance Mr. Adam Armit PCW Contracting Services Mr. Greg Beebout Precise Management Ms. Nancy Martin Rancho Serrano HOA Ms. Peggy Erfle Mr. Randy Leejoice Mr. Harry Pfohl Reserve Studies, Inc. Mr. Scott Clements, RS Rodent Pest Technologies Ms. Tiffani Reynolds Seacoast Commerce Bank Mr. Ken Carteron Servpro Ms. Valerie Cook So Cal Property Enterprises, Inc. Mr. Ken Zimmerman, CMCA, AMS Solera Diamond Valley Comm. Assn. Ms. Marla Miller Southcoast Properties Mr. Jay McGuire
First Bank Ms. Jan Hickenbottom
ValleyCrest Landscape Maintenance Mr. Nick Mokhlessin
Getdocsnow.com Ms. Becky Griggs
Vertex Coatings, Inc. Mr. Russell Phillips
Golf Knolls Association, Inc. Board Member Ms. Phyllis Shaw Ms. Ellen Swenson Ms. Sandra White
Villa Park Landscape Mr. Javier Reyes
Guardian Preferred Properties Ms. Rhonda Marie Anderstrom, AMS Horsethief Canyon Ranch Board Members Incline Consultants Mrs. Frances Thompson-Diggs, CMCA International Paving Services, Inc. Mr. Mitch Callaway
Ms. Betty Jane Renko
Urban Tree Care, Inc. Mr. Oscar Corvera
Action Painting Company AP Contracting, Inc. Ms. Laura Manhart
Laing's First Edition - Fontana Mr. Wes Lanier Ms. Joyce Morrison
West One Building Services Mr. Nishan Joshi
Advanced Painting Co., Inc. Mr. Allen Moser
Lucas Enterprise/Lifetime Fence Supply Mr. Don Garling
Western Security Realty Mr. Aaron T. Luke Mr. Cordell McDonald
Alliance Environmental Group, Inc. Mr. Joe McLean
Management Specialists, Inc. Mr. Jim Manning, CMCA, AMS, PCAM
American Geotechnical Ms. Jennifer Langenwalter
MERIT Property Management Ms. Tracie Blankenship, CMCA, AMS Mr. Kenneth Gibson, CMCA Mrs. Deanna Gonzalez
26 | ISSUE TWO 2012 â€˘ Connect with grie
Nordic Security Services Mr. Peter Jensen
Streit & Peters, CPA's Mr. David Streit
Wheeler Steffen Prop. Mgmt. Mr. Louis Canchola
Nissho of California, Inc. Mr. George Goodrich
Equity Management Ms. Vicki Giese, CMCA, AMS Ms. Liz Kemme, CMCA Ms. Tamara Lynn Middlesworth, CMCA Ms. Deborah Simonetti, CMCA, AMS
La Rocque Better Roofs, Inc. Ms. Jill Title
TruGreen Commercial Mrs. Terri Algiene
Mutual of Omaha Bank Community Association Banking/CondoCerts Ms. Cyndi Koester, CMCA, AMS, PCAM
Transpacific Management Service Ms. Kimberly Streetman
Vintner's Grove Comm. Assn. Ms. Simone Makowski Ms. LaShanda Shipp Vista Del Lago HOA Ms. Amy Brandt Mr. Jose Ceniceros Mr. Jeff Clark Mr. Isaac Cochran Weldon L. Brown Company Mr. Weldon L. Brown, II Wheeler Steffen Prop. Mgmt. Mr. Paul Steffen Wild Rose Ranch Comm. Assn. Mr. Travis Bonnar Mrs. Jennifer Dufresne Mr. John Freeman Renee Noflin Ms. Jannlee Watson
Make Your Voice Heard: CAI-CLAC’s 19th Annual Legislative Day at the Capitol by Nancy I. Sidoruk, Esq.
n behalf of CAI’s California Legislative Action Committee (CLAC) and the CAI-GRIE Legislative Support Committee (LSC), many thanks to our Chapter members for their continued support and interest in legislative issues impacting community associations. From participation in CLAC events like Legislative Day at the Capitol and Evening at the Winery, to dedicated letter-writing efforts in response to grassroots alerts and more, CAI-GRIE members demonstrate that making their voices heard truly does make a difference – not only locally, but also to the more than 9,000,000 homeowners living in approximately 50,000 community associations in California. CAI-CLAC’s 19th Annual Legislative Day at the Capitol – “Make Your Voice Heard” – was held Sunday and Monday, April 15-16, 2012, in Sacramento. The two days were an exciting whirlwind of activity including educational programs, networking opportunities and lobbying. At Sunday afternoon’s delegate meeting, also attended by chapter liaisons, executive directors and CLAC advocate Skip Daum, participants accomplished much important work. The majority of this effort helped prepare and refine the messaging for the following day’s lobbying meetings “across the street” at the Capitol. Delegates adopted or confirmed positions on multiple bills and identified specific legislation for attendees to personally discuss with their own lawmakers. The delegate meeting also included a review of chapter fundraising goals (the goal for CAI-GRIE is more than sixteen thousand dollars in 2012) and CLAC’s growing public relations efforts, plus an
update from CAI National on Federal issues such as mortgage regulation (see www.caionline.rg/govt/mortgagematters for more information). During their concurrent session, managers, homeowners and board members enjoyed a special briefing on hot bills, followed by programs on public relations and communications tools, and a “how-to” session on creating a local “legislative day” in their own districts. Later on, the Dine with the Delegates event held at Cafeteria 15L provided an opportunity to mix and mingle, meet new friends and renew existing relationships. Monday began with a welcome from CLAC Chairman Dick Pruess, who is a homeowner member of CAI, and an overview of the day’s activities, presented by CLAC lobbyist Skip Daum. The main work of the day continued with a further update on the government and public affairs activities of CAI National, followed by the all-important bill briefing, in which summaries of critical legislation were presented by CLAC delegates, including CLAC Vice-Chair and CAIGRIE delegate Pamela Voit. The bill
briefing provided attendees with the details and data needed to effectively lobby their own legislators that afternoon on four specific bills: AB 2273 (Wieckowski) – SUPPORT – CAI-sponsored; requires timely recordation after property sale AB 2314 (Carter) – SUPPORT – Helps prevent blight in communities SB 561 (Corbett) – OPPOSE – Alters debt collection procedures and would harm ability of common interest developments to collect from delinquent owners SB 1244 (Harman) – SUPPORT – Makes for more effective foreclosure notifications Before heading across the street for individual or group meetings with their own legislators, attendees enjoyed a pleasant luncheon at the lovely Capitol View Room of the Hyatt Regency, overlooking the splendor of the Capitol building, grounds and downtown Sacramento. The luncheon program included Remarks by Assembly Member Bob Wieckowski, author of CAI’s AB 2273 Lobbying tips and public relations update connect with grie • issue TWO 2012
Make Your Voice Heard Continued from page 27 California legislative action award presentations, including awards for Top Management Committee Supporters of CLAC, with statewide 3rd place received by CAI-GRIE member Voit Management. After lunch, attendees made the short walk to the Capitol steps for a group photo, documenting the large attendance at this year’s event. Then it was on to prescheduled appointments throughout the afternoon with Senators and Assembly Members. For those who have not been to the Capitol, and even for repeat visitors, the lobbying experience can be invigorating. For example, one of the most exciting aspects of the afternoon for seven of our CAI-GRIE members was their meeting with Senator Joel Anderson (36th District). Senator Anderson was at work on the Senate floor, actively voting on and presenting legislation; but, he was kind and professional enough to come in and
out of session to meet with his CAIGRIE constituents in the hallway just outside the Senate chamber. His ability to listen to concerns conveyed by CAI-GRIE constituents and to engage in meaningful discussion, despite multiple interruptions, was well-received. The day concluded with a reception and debriefing, at which attendees summarized their meetings with legislators and staff, provided necessary feedback to CLAC advocate Skip Daum, and prepared for the trip home. While at the Capitol, it was readily apparent just how many individuals and groups visit Sacramento to express their ideas and concerns directly to their legislators. Assembly Members and Senators are bombarded daily with messages on various issues from multiple constituents, groups and professional lobbyists. Legislative Day at the Capitol afforded an opportunity for CAI members to make their voices heard and to directly convey the importance of legislative issues impacting community associations. But, making our voices heard is not
Oct. 19, 2012 | Temecula, CA
Forum california communities
a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development. Critical updates on important legal requirements that impact how you work. Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et). Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee
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something that can be confined to single day. Instead, it takes an ongoing, continuing effort, particularly when CLAC reaches out to CAI membership to take urgent grassroots action. When called upon by CLAC to write letters or meet with legislators, please respond. The help of each and every CAI member is needed and appreciated. Thank you to those who attended and sponsored Legislative Day. We look forward to seeing even more of you in Sacramento next year. For more information about CLAC and the bills lobbied in Sacramento, please contact CLAC liaison Jacqueline Bill, any member of the CAI-GRIE LSC, or the Chapter office, or visit CLAC at www.caicalif.org and http://caiclac. wordpress.com.
Nancy I. Sidoruk is an Attorney with Epsten Grinnell & Howell, APC, and serves as CAI-GRIE Legislative Support Committee chair and delegate to CLAC.
Recordation Delays Impact HOAs by Skip Daum, CAI-CLAC Legislative Advocate
AI-CLAC is supporting AB 2273 (Wieckowski) this year, a bill that requires acquiring owners of properties in Common Interest Developments (often HOAs) to record the transfer of title within 30 days of the transfer. In the process of letting people know about the benefits of this bill, a general overview of the Foreclosure process seems to be a helpful tool. Step 1 – Notice of Default. Usually filed after the owner of a unit fails to meet the terms of their loan. Step 2 – Notice of Trustee Sale. The Notice of Trustee Sale sets the date on which the property will be sold at auction. Step 3 – Auction. The unit is offered up for auction to the highest bidder, with the lender placing the “opening bid.” Step 4 – Trustee’s Deed. This Deed transfers the property to the winning bidder at the auction. Since the Bank opens with a bid, if no one bids higher than the Bank’s opening bid (or if no one bids at all), the bank will be the new owner by default. Once the Trustee’s Deed is recorded, the new owner takes on responsibility for maintaining the property and paying the assessments due. This is where the problems often arise: there is currently no time limit between when a winning bidder at auction receives the deed to the property and when they actually record the deed and become the “legal” owner. Why does it matter? Jamie Hackwith, Director of Community Management for Amber Property Management says, “In this economy,
our HOAs are trying their best to maintain the aesthetics of the community so as to make the HOA attractive to prospective home buyers. When we do not know who owns these properties, it makes it really difficult on the HOA.” From not knowing who to bill for their portion of the HOA’s assessments, to not knowing who to contact regarding “squatters” in a unit, there are many negative impacts on a community when an HOA does not know how to contact the responsible party. “Blight” is a big problem with foreclosed units; so much so, that the Attorney General Kamala Harris has led the legislature into introducing AB 2314 and SB 1472 this year to combat that problem. But how can we address blight when we don’t even know who legally owns the property? AB 2273 (Wieckowski) helps to fill in that “gap” in the foreclosure process so that new owners will be more accountable for the properties they acquire. If they fail to pay assessments or maintain their properties, the previous owners (who have just been foreclosed upon) will not be held responsible. The new owners (the real owners) will be responsible for their properties.
Skip Daum is our veteran Legislative Advocate for CAI’s California Legislative Action Committee and may be reached at firstname.lastname@example.org.
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Federal Reserve Issues Guidance to Banks on REO Rentals The Federal Reserve specifically requires that banks review community association bylaws to determine if properties may be rented.
n April 5, the Federal Reserve System issued guidance to banks intended to spur the temporary conversion of Real Estate Owned (REO) to rental property. Earlier this year, the Federal Reserve strongly encouraged the sale of REO to investors for use as rental properties. With this new guidance, the Federal Reserve is offering banks the option to keep ownership of REO properties while making the properties available for rent. The Federal Reserve’s REO rental guidance will impact CAI’s members in two general areas. Under the guidance, banks with more than 50 REO rental properties must show compliance with all federal, state, and local laws and regulations, including landlord-tenant laws and property maintenance standards. Banks must ensure rental REO properties are adequately insured and that property obligations are met on a timely basis. Additionally, the Federal Reserve specifically requires that banks review community association bylaws to determine if properties may be rented. The Federal Reserve also requires that banks partner only with property management companies or other third-party property managers that have expertise in management of residential property. Banks must ensure all thirdparty property managers are in sound financial condition and have a demonstrated 30 | ISSUE TWO 2012 • Connect with grie
track record in managing residential properties. Additionally, property managers must possess adequate information management systems for comprehensive reporting on all aspects of managing the bank’s REO rental portfolio, which include tracking of rents, lease agreements, property maintenance and other similar requirements. Federal banking regulators have traditionally taken the view that banks should make every effort to dispose of REO in an orderly but expeditious manner. It has been a long-standing policy of banking regulators to minimize the mixing of banking operations and commercial activities. This policy was reinforced by Congress as recently as 2009 with adoption of the Fiscal Year 2009 Omnibus Appropriations Act, which expressly prohibits banks from engaging in real estate brokerage or management services as a line of business. The new guidance applies only to bank REO and is intended to offer banks additional flexibility to manage balance sheet risk associated with a substantial REO portfolio. As part of our ongoing Mortgage Matters program, CAI is working to protect homeowners in community associations and to ensure access to fair and affordable mortgage products for all current and potential community association residents. You can follow our work and share your thoughts at www.caimortgagematters.org. CAI will continue to monitor and participate in shaping changing federal housing policies to ensure the perspective of community associations is heard. This is one of the many benefits of belonging to an organization that works for you on the local, state and federal level.
An Evening at
Wiens Family Cellars To Benefit CLAC
connect with grie â€˘ issue TWO 2012
5029 La Mart, Suite A Riverside, CA 92507-5978
Friday, September 28, 2012 8:00 am Shotgun Start
Champions at the Retreat 8007 Softwinds Drive Corona, CA 92883