Focus Magazine - January/February 2012

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L.A.’s Premier Source of Information for Community Associations January/February 2012 The Start of an Interesting Year What Do Directors Need to Know? Elections! Elections!Elections! New Law BoardAffectingBusiness SAVE THE DATE: Golf Tournament June 11

RULES

RECRUITER RAFFLE All 2012 recruiters (except the Grand Prize winner) will go into a raffle drawing held in early January 2013 (when all the 2012 results are in) to win an Evening Out on the Town ($500 value) Help BUILD CAI-GLAC And Reward Yourself by Recruiting New Members in 2012 Grand Prize

GRAND PRIZE ($1,000 value) Member with the highest number of points as of December 31, 2012 wilI receive the Grand Prize. In cases where there are two or more members with equal points, those names will be put into a bowl and randomly drawn to determine the winner. Points will accrue from January 1 through December 31, 2012 for the Grand Prize. Members earn points based on the membership category.

SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE. Participating members will receive: One(1) point for each business partner member recruited in a category already existing in the 2012 Membership Directory, Two(2) points for a business partner in a sector of business not yet represented in the Chapter, Two(2) points for an individual HOA board member or community manager, and Three(3) points for recruiting a management company.

All completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012. to be counted toward the Grand Prize.

The following rules apply to the campaign: Members in good standing can compete to recruit new members and earn points toward the Grand Prize. To receive credit, you must be listed as the CAI member responsible for recruitment on the printed application form submitted, or be identified through CAI National membership reports.

The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a FREE LUNCH. In the case of a tie, a random drawing will determine the winner.

3-day/2-night Weekend Getaway on the Central California Coast Build CAI-GLAC Recruiter Contest runs for 12 months and is designed so that current CAI members can earn valuable prizes for sharing the benefits of CAI membership with friends and colleagues.

THREE CONTESTS...THREE PRIZES

RECRUITER-OF-THE-MONTH

Beaumont

2012 COMMITTEE CHAIRS

OFFICERS Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998 Matt D. Ober, Esq., President Elect Richardson Harman Ober, PC, 626-449-5577 Catherine Gemind, CMCA®, AMS®, PCAM®, Vice President Valencia Management Group, 661-295-9474

Association SATELLITE PROGRAMS

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2012 BOARD OF DIRECTORS

Teresa Agnew, Gifted...

Stephen S. Grane, Alante/MCS Insurance Lynne Collmann, CMCA®, AMS®, Savoy Community

Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn. De Armas, SAX Insurance Agency, Inc.

EDUCATION Gregg

Alba Monroy, ABM Property Management Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP

membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. By submission of editorial content to CAI-GLAC, the

COMMUNITY OUTREACH

Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 1

Meigan Everett, CMCA®, Power Property Management Lotane, CCAM®, PCAM®, Merit Property Management

This publication seeks to provide

WINE NIGHT

Union Bank GOLF TOURNAMENT

DIRECTORS Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 Matt Davidson, CCAM® Action Property Management, 800-400-2284 Pamella De Armas SAX Insurance Agency, 310-740-4274 Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® Concept Seven, LLC, 310-622-7012 Gregg Lotane, CCAM®, PCAM® Merit Property Management, 949-448-6077 David C. Swedelson, Esq. Swedelson & Gottlieb, 310-207-2207

SOCIAL Pamella

MARKETPLACE Catherine

Services Web Site

April ServproTronsonofBurbank, Chatsworth, Van Nuys & Crescenta Valley MEMBERSHIP Carol Brockhouse, AMS®, Rockpointe HOA MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner & Senet, LLP PROGRAMS/LUNCHEONS Linda Healey, PCAM®, The Californian on Willshire PUBLIC RELATIONS Robert Gavela, Park West Landscape Maintenance PUBLICATIONS Matthew Gardner, Esq., Law Office of Matthew Gardner, Esq. FOCUS Magazine Sherry Branson, Kevin Davis Insurance Services Matthew Gardner, Esq., Law Office of Matthew Gardner Membership Directory

Joanne Pena, CCAM®, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Katy Krupp, Treasurer Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800

Daisy Vasquez, Securitas Security Services USA, Inc. Tashjian, Esq., Gitlin Tashjian Gemind, CMCA®, AMS®, PCAM® Valencia Management Group

Jolen Zeroski, CMCA®, Union Bank CAI-GLAC’s author

creative marketing solutions

FINANCE

acknowledges and agrees to abide by the editorial and policy guidelines. Copyright © 2012. All rights reserved. Reproduction in whole or in part without written permission is prohibited. CAI is a national, not-for-profit association created in 1973 to educate and represent America’s residential community association industry. National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org NEWSWORTHY 6 What Do Directors Need to Know? 8 Elections! Elections! Elections! 10 Keys to Successful Mediation 11 NEWS FROM SACRAMENTO: Rural Fire Fee to Be Imposed 12 New Law Affecting Board Meetings and Board Action Outside of Meetings 18 The Complicated Decision to Pursue (or Not to Pursue) a Construction Defect Claim 20 Where Does it all Fit In? CHAPTER UPDATE 2 Note From the Editor’s Desk 3 President’s Message 4 2012 Board of Directors NOTEWORTHY 16 Case Law Courtroom Drama with Judge Steven 22 Community Associations Institute SUMMARY OF PUBLIC POLICIES FYI 3 Essentials of Community Leadership 17 2011 Recruiter of the Year 30 Additions & Corrections to 2012 Membership Directory 31 CAI-GLAC Membership News 32 2012 Upcoming Events 32 Advertisers Index 32 Advertising Information Save the Date: Golf Tournament June 11 2753 West Broadway Los Angeles CA 90041 Office: 323/254-9526 Fax: 323/254-9903 On the Cover Azzurra Homeowners Association Marina del Rey Photo courtesy of Colony Marina Investors STAY CONNECTED:

LEGISLATIVE ACTION Lisa

Jolen Zeroski, CMCA®,

SAX Insurance Agency Stay Green Inc.

Sherwin-Williams Paint Silldorf & Levine, LLP We thank our 2012 sponsors who Contact the Chapter Office at 323-254-9526 event. THE EDITOR’S DESK

PCW Contracting Services, Inc.

Patriot Environmental Laboratory Services, Inc.

CertaPro Painters Ltd.

Collins Builders, Inc. Painting Unlimited, Inc.

Popular Association Banking Rodent Pest Technologies, Inc. Ross Morgan & Company, Inc.

Reserve Studies Incorporated S.B.S. Lien Services

Poindexter and Company, CPAs Professional Services Construction, Inc.

Select Painting Sky Security Services, Inc.

Reconstruction Experts, Inc.

2 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter

T his issue of FOCUS highlights several interesting and engaging topics and strives to achieve our main goal of providing up-to-date information on a wide variety of topics relating to the community association world.

M atthew Gardner, Esq. writes a very informative article about board orientation.

A nd last but not least, Kimberly Lilley raises our awareness about the importance of CAI’s voice in Sacramento by giving a breakdown of the CAI Legislative Action Committee structure and how the Committee works on a federal and local level. We are looking forward to a good year ahead and hope that you enjoy our information-packed issue!—Sherry Stein Painting, Inc.

Del Mar Pacific General Contractors

First Bank Association Services Mutual of Omaha Bank/CondoCerts

Fenton, Grant, Mayfield, Kaneda & Litt, LLP

Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Disputes at associations can end up costing thousands of dollars to resolve if an association has to go to court and retain legal counsel. Steven Roseman, Esq.’s article highlights an example of a community association dispute that was resolved through the CAI Mediation Panel. The association saved time and money by using this valuable resource.

Union Bank BRONZE Action Duct Cleaning Company Advanced Painting, Wood Repair & Wrought Iron Berg Insurance Agency, Inc.

City National Bank LPS Field Services

to sponsor a program or an

GOLD Beaumont Gitlin Tashjian

Farmers Insurance Group— Steven G. Segal Insurance Agency, Inc.

A zadeh Saghian, Esq.’s article Elections! Elections! Elections! is very timely. She gives valuable tips on board elections and her insight into ways to keep the process running as smoothly as possible. With elections happening every day at various associations, one can never have enough information regarding the best ways to run an election.

Timothy Cline Insurance Agency, Inc.

SILVER Accurate Termite & Pest Control Association Reserves, Inc.

Swedelson & Gottlieb Three Phase Electric

have made a substantial contribution to ensure our continued success this year.

FROM

Branson Editor 2012 SuperCAI-GLACSponsors PLATINUM Anderson Group Int’l Restoration & Remediation Contractor Animal & Insect Pest Management, Inc. Duramax Building Products Hi Tech Painting & Decorating, Inc. Pacific Western Bank Payne Pest Management Preferred Commercial Painting, Inc. R.W.

The new year will usher in new boards of directors across Los Angeles County, and this information will be vital to all community associations with new board members.

Ferris Painting, Inc.

2012proves to be an interesting and exciting year with the 57th United States Presidential Election on November 6. Political issues are dominating the news and, given the state of our economy, the Election is on everyone’s mind.

Fenceworks, Inc.

NOTE CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles.

I n this issue we are debuting a new column entitled News from Sacramento, which will be written on a regular basis by our legislative advocate, Skip Daum. Big changes are in the air as far as laws affecting how an association can conduct board meetings. SB 563, which took effect in January, dramatically changes the way board meetings can be conducted by teleconference or in executive session. Michael Rabkin, Esq. addresses how the new law largely prohibits board action outside of a Dmeeting.ennisAlthouse, Esq. discusses the pros and cons of pursuing construction defect claims and who should be the one making the ultimate decision.

$80/Member;Cost: $100/Non-member Next Class: April 14, 2012 GoTBDLocation:towww.cai-glac.org for more details and registration.

� Jeffrey A. Beaumont, Esq. 2012 Chapter President Thanks for Your Service to the Chapter At the January luncheon, 2012 Chapter President Jeff Beaumont presented a keepsake gavel to Matt Davidson, CCAM (Action Property Management) in recognition of his service as 2011 Chapter President. Jeff also presented awards to Diana Stiller, PCAM (101 Ocean Condominiums) and April Tronson (Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley) with thanks for their service on the Chapter’s Board of Directors. Not pictured are Virginia Kemp (Carlton Square HOA) and Kay theasChapteralsoHOA)Lake(700MurphySouthAvenuewhoservedthewellDirectorsonBoard.

Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 323.254.9526 for a Workshop schedule. The location varies - if you can guarantee 10 attendees, we’ll come to your association! Have You Just Been Elected to Your Board... Or Are Contemplating Running for a Board Seat? CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 3

Better. Together. Despite the fact that 2012 has just begun, the Greater Los Angeles Chapter is enjoying early and great — success. The evidence is overwhelming. Consider the following. The 2012 Membership Directory is already available, full of great resources of member professionals ready to support, encourage, or assist you in achieving your goals. Further, the January Skirball Educational Luncheon proved to be a huge success with a great turnout and exciting reviews. If you missed it, the Chapter hosted an educational luncheon, wherein a “mock trial” ensued—demonstrating common issues that arise in common interest developments and a prime example of how best to handle such situations. Don’t worry if you were not in attendance— you have another opportunity, as the Chapter looks forward to another Educational Luncheon each month. Looking forward to even more events to come, the Chapter is bringing back “Wine Night,” to support and raise awareness for the CAI Legislative Action Committee. I hope that you will join us for these extraordinary events and opportunities, and that you join in our FROM THE PRESIDENT common goal of bolstering the growth, development and prosperity of the community association industry. As you know, the theme for 2012 is “Better. Together.” The Chapter endeavors to educate its members by providing current, updated and relevant information. To achieve its goal of fostering vibrant and thriving community associations, the Chapter seeks to educate leaders of community associations on relevant and timely issues facing our communities. You will find a discussion and analysis of many such issues and topics in this issue. I look forward to the year ahead and the exciting opportunities for us to continue to work together to become even better. Together we can thrive. Together we can achieve industry excellence—“Better. Together.”

MESSAGE

CCAM®,JOANNESECRETARYPEÑA,CMCA®,AMS®, PCAM®

PRESIDENT ELECT MATT D. OBER, ESQ. Matt Ober has been a member of this chapter since 1993, participating in the Education, Programs, and California Legislative Action Committees. Matt has presented educational programs to the Chapter, ranging from the “Essentials of Community Leadership” to the Annual Legislative Update and Free Legal Advice Programs. He is a member of CAI’s National Faculty and a co-author of CAI’s California Law Course for Community Association Managers. Matt was inducted into the CAI College of Community Association Lawyers two years ago. He is a partner of the law firm of Richardson Harman Ober PC, a firm that specializes in community association law and serves clients throughout Southern California. Among his reasons for staying involved in the Chapter as a board member is to continue to create greater opportunity for business partners to obtain value from their membership. He intends to encourage the Chapter to focus on educational programs and industry events, such as the HOA Marketplace, that provide home-owners and association managers meaningful exposure to what our business partners have to offer their communities.

BOARD OF DIRECTORS 2012

JEFFREYPRESIDENTA.BEAUMONT, ESQ. Jeff Beaumont is extremely dedicated to CAI, and has been for over ten years, serving as president of the Channel Islands Chapter and current Delegate for the California Legislative Action Committee of CAI. Jeff also dedicates his time to speaking and teaching within the community association industry. He is a member of the faculty for CAI National and other industry organizations. His vision for the Chapter is twofold, and is consistent with his passions for teaching and business development. First, there is no reason why the Chapter shouldn’t have twice the number of members it has. From homeowners and board members to managers and business partners, the Greater Los Angeles area has thousands of prospective members that the Chapter must reach out to. Second, the CID industry is great, but can be better through increased and improved education and team work. Education and increased membership are key to improving this unique industry and wonderful Chapter. As the senior partner of Beaumont Gitlin Tashjian, Jeff has devoted his law practice to the representation of community associations on all issues impacting his firm’s clients.

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Catherine Gemind is Vice President of Corporate Development for Valencia Management Group, with primary responsibility for human resource management and training. As a member of this Chapter since 1999, she has been excited to see its growth and maturity, especially in recent years. As a board member, she plans to further the Chapter’s efforts to elevate the professionalism of the community association industry. As a member of CAI’s National Faculty, Catherine has a commitment to and unwavering support for the continuing excellence and expansion of educational opportunities for the members. She actively works to advance recognition of CAI’s certification and credentialing programs.

Joanne Peña has been a portfolio manager with Horizon Management Company since June 1995. She has earned and maintains the PCAM®, AMS®, CMCA® and CCAM® designations. Prior to joining Horizon Management Company, Joanne served on the Summer Wind Condominium Association Board of Directors and was Board President for two years. She has previously served on the CAIGLAC Board of Directors (2002-2008) and was Chapter President in 2005. Joanne has also volunteered on the Publications, Wine Night, and Community Outreach Committees. Joanne is happy to re-join the CAI-GLAC Board of Directors and support the Chapter’s efforts to promote professionalism within the industry, provide educational opportunities for managers and community volunteers, and offer valuable networking opportunities for our business partner members.

KATYTREASURERKRUPP

VICE CMCACATHERINEPRESIDENTGEMIND,®,AMS,®PCAM®

Since Katy is a member of several CAI chapters, she sees firsthand how an effective chapter runs and what mistakes to avoid. As a director, she helps ensure this chapter’s financial health and develops ways for business partners, community managers and HOA boards to work together through education. Katy is responsible for business development at Fenton, Grant, Mayfield, Kaneda & Litt, LLP.

Katy Krupp has been an active member of eight CAI chapters throughout California for several years. She served as co-chair of this chapter’s Wine Night Committee in 2009 and 2012 and she has been the recipient of the “Rookie of the Year,” “Committee Member of the Year,” and “Speaker of the Year” awards. Chairperson for the Orange County Chapter’s Outreach Committee for six years, she was recognized by CAI National with the Achievement Award for Public Affairs.

TINA WANG CHU, ESQ. An active member in CAI-GLAC since 2008, Tina Chu practices common interest development law as an associate attorney of Adams Kessler PLC. After serving on numerous committees as a volunteer and as Chair of the Membership Committee, she is newly elected to serve on the CAI-GLAC Board of Directors. With her thorough knowledge of our industry and the fiduciary duties of board members, as well as her industry contacts, Tina plans to continue to work to grow our chapter. She would also like to promote standards of professionalism, not only in our daily interactions with one another, but also in how we represent the Chapter. She has many fresh ideas that we look forward to hearing about.

A long time member of CAI, he has served on the National Attorneys Committee, as a member of the Board and President of the Greater Los Angeles Chapter of CAI and a Board Member of the Channel Islands Chapter of CAI, as well as a Delegate and Officer of CAI’s California Legislative Action Committee. David’s CAI-GLAC activities include speaking at educational luncheons, writing for both FOCUS Magazine and the L.A. HOA Insider Newsletter and facilitating Essentials of Community Leadership Workshops.

PAMELLA DE ARMAS

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David believes in “giving back” and will be sharing his many years of experience with this chapter and CAI in general for the benefit of the CAI-GLAC.

GREGG LOTANE, CCAM®, PCAM® Gregg Lotane is currently the Urban High Rise & Mid Rise Vice President for Merit Property Management. Working in the community association management field in Washington D.C. and very involved with the Community Associations Institute since 1986, he has been active in this chapter since 1996 and holds the PCAM® and CCAM® designations. Gregg is chairing the Education Committee this year. He has served on the Programs Committee, as Membership Chair for three years and as a speaker at various CAI educational functions.

MATT DAVIDSON, CCAM® Matt Davidson has been actively involved in CAI for more than nine years and a member of this chapter for the last eight years. He served as chapter president last year and chaired the Programs Committee for six years. Matt received the Rising Star Award in 2006, and the entire Programs Committee was recognized for the 2005 Best Educational Program: “Great Success Stories in Community Association Management” and again in 2008 for “It Isn’t Hard to Be Green.” Matt is Assistant Director of High Rise Operations for Action Property Management, Inc. He brings a manager’s perspective to our board of directors through his years of experience as both an on-site and portfolio manager, and hopes to continue encouraging chapter growth through great social and educational opportunities for the common interest development community.

DAVID SWEDELSON, ESQ. David Swedelson is a name partner in the law firm of Swedelson & Gottlieb that limits its practice and specializes in the representation of California community associations, and he is also a principal of Association Lien Services, an affiliate of Swedelson & Gottlieb that specializes in the collection of delinquent assessments throughout California utilizing the non-judicial foreclosure process.

MICHAEL LEWIS, CCAM®, CMCA®, AMS®, PCAM® Active in the community management industry for more than nine years, Mike Lewis currently holds the PCAM®, AMS®, CMCA® and CCAM® designations and is the CEO of Concept Seven, LLC in Torrance. A prior member of the CAI Educational Committee, he chaired the South Bay Programs Committee for the last two years. As a member of CAI for more than eight years and an active participant in many CAI functions, Mike is new to our board this year. He looks forward to contributing to an organization which dedicates so much time toward improving our industry and hopes that he can provide a fresh perspective when appropriate.

Pamella De Armas has been an active CAI member since 2007, serving on the Ambassadors, Social Events and Wine Night Committees. She received the chapter’s Rising Star award for 2008 and Event of the Year award for 2007 for the Casino Night “Hot Havana Nights.” Pamella is currently co-chair of the Social Committee. She believes that respect, trust and integrity are the keys to success in performing activities and events and in everyday professionalism with fellow members. As a director, Pamella keeps the bar high when developing educational and networking events for the members. As a licensed insurance agent with SAX Insurance Agency, Pamella helps and educates boards and property managers in insuring their HOAs. Prior to the insurance industry, she was the vice president for a prestigious luggage manufacturer for 18 years, responsible for strategic marketing, advertising, human resources, accounting and customer service.

As a board member, he continues to foster new ideas for manager and luncheon programs, in order to increase the educational value for the members and increase the membership base for the Chapter.

■ DAVIS-STIRLING ACT

What Do Directors Need to Know?

Finally, new directors should keep in mind the most important aspect of their job: their neighbors. The most valuable assets of an association are its homeowners. Directors who can utilize their homeowners while conducting business will find their duties easier to fulfill. Remember that the primary duty that directors must fulfill is taking action in the best interest of the association and its homeowners. The most that a new director can hope for is an informed and interested community. When directors engage their equally-volunteer homeowners, they will find extremely valuable resources. Directors who ignore their homeowners will find themselves the object of suspicion and mistrust.

In essence, associations are their own communities with varied needs. To be a successful director, you need to be able to handle a wide variety of issues with competence. As volunteers, that means relying on professionals for input and Beingguidance.amember of a group like Community Associations Institute (CAI) can be a valuable resource for information. Not only does membership give you access to service providers suited directly to your community’s needs, it also provides regular valuable tools and education. This includes everything from monthly luncheons dedicated to relevant topics facing associations, to links to most recent legislation, to mediation services, to workshops for new boards to cover all of the above. A quick search can provide the answers to many of the questions facing new directors. Visit the Web site to find the latest at www.cai-glac.org.

While the directors make the final decision, an informed decision should be based on acquiring the basic knowledge from qualified professionals: managers, attorneys, vendors, etc. Taking the time to learn more from the dedicated professionals serving your community could save you time and headaches.

■ HOMEOWNERS

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■ GOVERNING DOCUMENTS

The second major source of information will be California state law. For homeowners and associations, that means the California Civil Code beginning with Section 1350, otherwise known as the Davis-Stirling Act. This body of law will enhance, and in some cases substitute, the director’s duties and authority under the governing documents. As an example, changes that affect every board and association would be in Senate Bill 563. One provision prohibits boards from making decisions by email, unless in cases of emergencies. Another requires additional notice for executive sessions. If you are not up-to-date on these changes, the board’s authority to act or enforce could be called into question. The law is updated regularly, so a good director will find a way to stay on top of the changes. Sometimes that means making changes to their governing documents that no longer reflect the law. Sometimes it means finding someone who can help you navigate the changes.

The first step should be looking at the association’s governing documents (Articles of Incorporation, CC&Rs, Bylaws and Rules). These documents are the essential elements of successful Themanagement.CC&Rswill lay out the major maintenance responsibilities and duties of the association: assessments, collections, common area, etc. The Bylaws will give the board a roadmap on how to administer and govern consistent with its corporate duties: meetings, notice, minutes, elections, etc. The Rules will specify how the board can approach day-to-day living and enforcement of association authority: common area use, discipline, etc. Every association will have different needs and duties that should be laid out in your documents, so it is not enough to know generally what information is located where. A director must be familiar with these documents before he or she can effectively carry out those duties.

■ INDUSTRY GROUPS AND SERVICE PROVIDERS

Remember that the law requires associations to receive and consider input from the homeowners, requires financial and informative disclosures, and requires regular open board meetings to conduct business. Boards that do not meet these basic obligations will not only be in conflict with the law, but will also be in danger of misusing their homeowners’ willingness to participate in serving their community.

Matthew Gardner is an attorney practicing in the areas of community association law and general business transactions in Southern California. Matthew can be reached at matthewagardneresq@gmail.com.

By Matthew Gardner, Esq. LET’S IMAGINE THAT YOU ARE a dedicated individual who cares about your community and wants to help it improve (the chances are very good if you are taking the time to read this magazine). You realize that the best way to serve is to volunteer your time and effort to meet the needs of your community association. You see the request from your association for nominations, suffer through a contentious campaign, and prevail to become an elected director on your association’s board. After a brief celebration with your friends and neighbors, you realize something. Now what? It is not enough to have the drive and desire to be a director on your board. You need the skills and the knowledge to make the right decisions and avoid the wrong ones. So where do you start?

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THE CALIFORNIA CORPORATIONS CODE MANDATES THAT corporations have a board of directors. Without a board, a corporation cannot conduct business, which means insurance coverage will lapse, maintenance ceases, rules enforcement ends, the association’s corporate status lapses and lawsuits cannot be answered, potentially exposing each individual owner to liability. Therefore, associations must hold elections to select a board of directors. This article provides tips and guidelines on how to smoothly and efficiently run a board election.

■■ APPOINT INSPECTORS OF ELECTION. Since inspectors must receive and count ballots, an inspector should be appointed early enough in the election process so that ballots can be mailed to the inspectors or to a location designated by the inspectors.

ElectionsElectionsElections!!! AND THE POPE. THIS NOVEMBER, THE NEXT UNITED STATES PRESIDENTIAL ELECTION WILL BE HELD AND THE COURSE OF AMERICAN HISTORY FOR THE NEXT FOUR YEARS WILL TAKE SHAPE. OF COURSE, FOR RESIDENTS AND MANAGERS OF HOME-OWNERS ASSOCIATIONS, ELECTIONS OFTEN OCCUR ON AN ANNUAL BASIS. BY AZADEH SAGHIAN, ESQ.

■■ SET THE DATE AND SEND NOTICE. Most associations hold annual elections to elect directors. The date of the annual meeting should be set 90-120 days before the meeting, if it is not specified in the bylaws. Notice of the annual meeting must be given 30-90 days in advance of the meeting. The meeting agenda should specify that an election of directors will take place at the annual meeting.

ELECTIONS WERE USED AS EARLY IN HISTORY AS ANCIENT GREECE AND ANCIENT ROME, AND THROUGHOUT THE MEDIEVAL PERIOD, TO SELECT RULERS SUCH AS THE HOLY ROMAN EMPEROR

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■■ ELECTION RULES REQUIRED. All associations are required to adopt election rules that include the following: nomination procedures, candidate qualifications, a method of selecting independent third parties as inspectors of election, rules regarding access to association media during campaigns, rules regarding access to common area meeting space during campaigns, secret balloting procedures, and a ballot form. If your association does not presently have them, it should adopt Election Rules consistent with both the Davis-Stirling Act and the governing documents.

■■ CALL FOR CANDIDATES. The board can send a Call for Candidates memo to the membership advising of the number of open positions on the board of directors. If there are any director qualifications specified in the association’s governing documents, those should be enumerated in the Call for Candidates to ensure that unqualified nominees do not submit their names. Finally, the closing date for when nominations will be accepted should be stated according to the governing documents.

In conclusion, with elections being at the very root of democracies, in the context of association board elections, many specific procedures should be followed. The guidelines set forth above provide a good starting point for current board members and managers to organize board elections. Because so many of the requirements are within the Davis-Stirling Act, boards should always include legal counsel before making significant changes to election procedures. Azadeh Saghian is an attorney with Adams Kessler, PLC. She can be reached at asaghian@davis-stirling.com.

■■ CAMPAIGNING. All members have a right to campaign. Boards should, however, be cognizant of the fact that if any candidate or member advocating a point-of-view is provided access to association media (such as association newsletters and Internet Web sites) during a campaign, the association must provide equal access to all candidates and members advocating a point-of-view on the issue.

■■ PROXIES. Under the current election laws, using proxies alongside secret ballots has become problematic. To eliminate the confusion, some associations have taken steps to limit the use of proxies and conduct elections only by secret ballot. This allows elections to be conducted entirely through the mail and dispenses with the need for proxies. Boards should consult the governing documents and legal counsel to determine the best course of action for their association.

4. Election Results. Once the inspector of elections finished tallying the votes, election results should be announced.

3. Open Forum. Members in good standing are free to speak on any matter of interest to the community.

■■ AT THE MEETING. At the annual meeting to elect directors, the inspector of elections will determine when quorum has been achieved as stated in the association’s bylaws. At that point, the meeting should be called to order by the president. The minutes of the prior year’s annual meeting should be approved, and the ensuing steps should be followed to ensure an effective and smooth meeting:

2. Close the Polls. Many associations close the polls before the meeting. If polls remain open during the meeting, the President can call for a motion to close the polls and begin counting ballots.

5. Adjournment. A motion should be brought to adjourn the meeting.

6. Organizational Meeting. New and continuing board members can meet after the meeting to elect officers and establish board meeting dates and times.

1. Reports. If reports are given at the meeting, they usually include a summary presented by the treasurer of the association’s year-end financial condition and a report by the president of the past year’s projects and future vision.

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 9

By Steven A. Roseman, Esq. to reach a compromise that was acceptable to everyone. In this case, it was a simple solution. The disabled owner agreed to: 1) apply to the city for a waiver from the leash ordinance; and 2) ensure that her dog completed obedience training, and in particular, “off-leash” training. Upon confirmation of receiving the city waiver and written confirmation that the dog had completed obedience training, the association and its members would put the matter to bed. A reasonable timeframe to complete the above requirements was determined, and the matter was resolved. In our opinion, the key to our successful mediation was using a mediator from the CAI Mediation Panel. All mediators on the Panel are experienced association attorneys or professional mediators who possess an expert level of knowledge regarding the unique issues of associations and members. In addition, the mediation was fast and efficient. Moreover, it was cost-effective at a total of $400 for three hours of mediation between the two parties.

Steven A. Roseman, Esq. is the managing partner of Roseman & Associates, APC, specializing in community association law with offices in Los Angeles and Orange County. He can be reached at roseman@raatorneys.com.

In short, if your association needs a dispute resolved quickly and cost effectively, your board should strongly consider engaging the services of a CAI Mediation Panel mediator.

Keys to MediationSuccessful

10 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter Every association has dealt with difficult homeowners, violations of the governing documents, and related disputes. The primary concern for boards in handling such matters is resolving the same in a fast, efficient and costeffective manner. An ideal way to handle disputes is through alternative dispute resolution, and in particular, mediation. We were retained to represent a community association in a dispute with a homeowner concerning her “service” dog and complaints received from other members regarding the dog. The member in question alleged that she had a disability due to a wrist injury, which prevented her from using a leash when walking her dog. She further alleged that her dog was a “service” in the context of the Americans with Disabilities Act (“ADA”). As a result, it was the owner’s contention that due to her disability, her dog could be in public areas, i.e., the association common areas, without a leash. Not only was this a violation of the association’s governing documents; it was also a violation of the local city ordinance. To compound the issue, other association members complained that the unleashed dog was creating a nuisance i.e.: jumping on them and licking them. While the owner demanded that the association allow her dog to roam freely in the common areas, i.e., a reasonable accommodation, other members demanded that the association enforce its governing documents. Suffice to say, the association’s board of directors (“board”) was caught between “a rock and a hard place.” On the one hand, it was required to address the federal and state disability laws to ensure that a “reasonable accommodation” was considered for a potentially disabled person. On the other, the board was obligated to enforce the governing documents and ensure the quiet use and enjoyment of the property for its other members. Issues of concern were: (i) whether the owner was truly “disabled” under the ADA and/or state law; and (ii) whether her dog qualified as a “service” dog, or even an “emotional support animal” under federal and/or state law. In an attempt to avoid costly litigation, the board, based on our recommendation, proposed mediation with the CAI Mediation Panel (“CMP”). Factors they considered in deciding to use the CMP were the following: (i) the cost of the mediation; (ii) experience of the mediator; and (iii) timeliness and availability of the mediator. The CMP mediator was able to facilitate a resolution of the dispute. The mediator had extensive experience as an attorney specializing in homeowners association law. With the assistance of the mediator, the disputing parties were able

FROM SACRAMENTO NEWS

The new regulations assess a fee of $150 for the “first dwelling unit” and $25 “for each additional dwelling unit up to the total dwelling units contained in the multi-dwelling unit structure.”

http://www.bof.fire.ca.gov/sra_viewer/IfyourassociationisinanSRA,please contact Skip Daum at CAAdvocate@aol.com.

Other questions brought up by these proposed regulations include: How will these fees be paid? Special assessment? Individually? By the association? This would need to be worked out. Luckily, these proposed regulations are clearly outside the scope of the statute and there are legal avenues available to stop the $25 per-unit fee. (The legislation creating the fee will be subject to a lawsuit by the Howard Jarvis Association which argues that the fee is a tax and as such AB X1 29 should have been subject to the Legislature’s 2/3 vote).

Are any of your properties in State Responsibility Areas (SRA)? Broadly speaking these are rural areas. If the property is in an incorporated city, it is not in an SRA. If it is in an unincorporated area, there is a decent possibility that the property is in an SRA. To check if a property is in an SRA, go to the following Web site and put in your address. If the property comes up in yellow, you are in an SRA. It is admittedly a clumsy process, but it is all we currently have to determine what properties are in an SRA.

Legislature approved a “rural fire fee.” Under the bill (AB1x 29), the state would levy a $150 fee on each structure in State Responsibility Areas. (More on SRAs below). In November the Department of Forestry and Forest Protection took the first step toward imposing the rural fire fee through proposed regulations. These proposed regulations could be a big problem for condos and other HOAs that are situated in SRAs.

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 11

Skip Daum has been serving CAI’s California Legislative Action Committee as Lead Advocate for 18 years.

If you have a condo — with a lot of units — and it is in a State Responsibility Area, these regulations could be very costly on an annual basis.

NEW LAW AFFECTING BOARD MEETINGS AND BOARD ACTION OUTSIDEMEETINGSOF 11 Any “item of business” means “any action within the authority of the board, except those actions that the board has validly delegated to any other person or persons, managing agent, officer of the association, or committee of the board comprising less than a majority of the directors.”

THE CALIFORNIA LEGISLATURE HAS SEEN FIT TO TINKER AGAIN WITH THE CONDUCT OF BOARD MEETINGS. SB 563, WHICH WENT INTO EFFECT JANUARY 1, 2012, IMPOSES NEW REQUIREMENTS WITHIN CIVIL CODE SECTION 1363.05 FOR BOARD MEETINGS CONDUCTED BY TELECONFERENCE OR IN EXECUTIVE SESSION, AND, MOST NOTABLY, LARGELY PROHIBITS BOARD ACTION OUTSIDE OF A MEETING. BECAUSE OF THE POTENTIAL FOR PENALTIES, BOARDS AND MANAGERS MUST ENSURE THAT THEY ADHERE TO THESE NEW LAWS. THE FOLLOWING IS A SUMMARY OF THE IMPORTANT CHANGES WHICH WENT INTO EFFECT ON JANUARY 1, 2012 • BY MICHAEL W. RABKIN, ESQ.

■ Owners may request to inspect or copy the executive session agendas pursuant to Civil Code Section 1365.2.

12 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter

EXECUTIVE SESSION BOARD MEETINGS. SB 563 changes a board’s obligations with regard to notice of executive session meetings and agendas therefor as follows:

BOARD ACTION TAKEN OUTSIDE OF A MEETING. Many boards have taken to using e-mail, or more accurately, a string of email consents from all board members to “take action” outside of a meeting. Such communication and consent allowed boards to take prompt action on issues that arose between meetings where all of the board members were “on the same page” as to how to proceed. SB 563 aims to stop that practice. Effective January 1, 2012, boards may take action on an “item of business” only in one of the four following ways:

■ At an executive session board meeting (assuming it falls within the enumerated categories) held in person or by teleconference on two days’ notice to the members;

■ At an emergency meeting of the board held in person or by teleconference (no notice to the owners required). If a quorum of board members is present, a majority vote of the board prevails at such emergency meeting.

TELECONFERENCES. SB 563 permits a non-executive session board meeting to be conducted by teleconference provided that (1) there is at least one physical location that association members may attend, (2) at least one board member is present at such location, and (3) the notice of the nonexecutive session board meeting identifies, among other things, the physical location.

CONTINUED ON PAGE 14

Although SB 563 restricts non-emergency action by a board outside of a meeting, it (ironically) gives boards “wiggle room” to delegate decision-making between meetings to a person (e.g., manager or officer) or an executive committee of the board. It

■ An emergency board meeting conducted by electronic transmission if all board members, individually or collectively, consent in writing to holding the meeting and taking that action, and if the written consent(s) are filed with the board meeting minutes.

■ Notice of the time and place of a board meeting that will be held entirely in executive session must be given to members at least two days prior to the meeting, except for emergency executive sessions.

■ At a regular or special board meeting held in person or by teleconference (as discussed above) on four days’ notice to the members;

■ Notice of a board meeting (including the agenda) may be given by e-mail to a member who has given his or her consent.

■ The notice for the executive session board meeting must contain the agenda for the executive session meeting. The executive session agenda should be of a very general nature in order to protect the confidential nature of the matters discussed in executive session by listing items of discussion in the broad terms presented in Civil Code Section 1363.05 (i.e., consideration of litigation, matters relating to formation of contracts with third parties, personnel matters, member discipline and member payment plans).

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 13 REPRESENTING COMMUNITY ASSOCIATIONS IN ALL AREAS OF REAL ESTATE LAW • Drafting and enforcement of Bylaws and CC&Rs • General litigation, including mediation and arbitration of disputes with owners • Construction defect litigation • Insurance bad faith litigation • Collection of delinquent assessments • Providing general business advice to homeowners associations. 11400 West Olympic Boulevard Ninth Floor • Los Angeles, CA 90064 (PH.) 310.478.4100 • (FAX) www.wrslawyers.com310.478.6363

14 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter The Only Choice for Your Protection 818.787.7370 fax: 818.787.7387 www.paynepestmgmt.com LOS ANGELES • SAN DIEGO • ORANGE COUNTY ReplacementDamageGuaranteeRealEstateInspections LiabilityAccurateCustomerGreatServiceInvoicing$2,000,000Insurance 877.277.3970 is anticipated that many boards will simply begin delegating certain in-between-meeting decision-making to persons or executive committees (which must be comprised of less than a majority of the board). For example, at one of the four types of meetings discussed above, a board could vote to delegate to the president the authority to authorize maintenance and repair expenditures not to exceed a certain dollar amount in between meetings. It is worth noting that if, as discussed above, a board has delegated the decision-making authority to a person or an executive committee, SB 563 does not seem to prevent the board members from having discussions vie e-mail in between meetings. However, because of poor drafting, SB 563 is unclear as to whether or not a board that has not made such a delegation can have a “discussion” via e-mail if no decision is being made. In particular, can a discussion via e-mail be considered a “congregation at the same time and place”? Clearly, the board could not go into a “chat room” to discuss something because that is arguably a congregation at the same time and place. But what if board members discuss something via e-mail over a period of a few days, with board members responding at different times/days? Each board will have to make a business decision in good faith and in the best interests of its association to interpret this law. SB 563 will certainly inconvenience many boards and managers, but, it is anticipated that the same boards that were previously able to take action outside of a meeting by unanimous written consent will be able to “delegate around” the restrictions. Nonetheless, boards and managers will need to proceed with caution, and, if in doubt, should consult legal counsel to ensure compliance. This is because existing Civil Code Section 1363.09 is written broadly enough to permit owners to sue an association if the association violates SB 563 which means that, a prevailing member would be entitled to, among other things, a penalty of up to $500.00 per violation.

Michael W. Rabkin, Esq. is a partner in the law firm of Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP in West Los Angeles and CAI’s State Legislation Chair within our California Legislative Action Committee. He is responsible for reviewing in detail the bills on which CAI takes a position. Michael can be reached at mrabkin@wrslawyers.com

New Law Affecting Board Meetings and Board Action of Meetings

CONTINUED FROM PAGE 13

Outside

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 15 Z3445 HOA Banking • HOA Loans • Internet Cash Management Online Payment Systems • Dedicated Customer Service Who else can say – our account executives know community management backwards and forwards. Who else can say – our relationship managers speak your language and understand your business. Who else can say – our technology group has revolutionized the business of association management. ExpEriEncE Community Association Banc is a division of Mutual of Omaha Bank. Member FDIC. Equal Housing Lender National Corporate Member of Community Associations Institute. Lisa Ann Rea CMCA AMS Regional Account Executive Toll805.907.8452Free866.800.4656, ext. 7500 lisa.rea@cabanc.com cabanc.com RE-ROOFING “ ” & HOMES • APARTMENTS • HOA’S • STRIP CENTERS • OFFICE BUILDINGS • WAREHOUSES WORKER’S COMPENSATION INSURED 10M LIABILITY INSURED State Contractors License C-39 #432352 (714) 630-0500 (310) 271-3010 AAA RATED Office: 6320 Clara Street, LA 90201 ROYAL ROOFING COMPANY (R.W.S.&P. INC.) ~ ASK FOR REG, GIL OR STEVE • Flat, Low Slope & Rock • Solar, Telecom & “Billboard” Roofs • All Shingle Roofs • Tile Roofs • “Title 24” White Coatings • Energy Star® /CRCCTM Elastomerics • Maintenance - Roof “Tune-Ups” • Any Size Project • Factory Certi ed Applicators • e BEST “In-House” Crews • Only 1st Quality Materials (No 2nd’s) MEMBER FLAT, COMP. & TILE ROOFS HOA board members learn about their fiduciary duty and responsibilities at the Essentials of Community Leadership Workshop on January 21 at Brookside HomeownersVillageAssociation.

2012 Chapter President Jeff Beaumont (Beaumont Gitlin Tashjian) first welcomed everyone and then invited Programs Committee Chair Linda Healey, PCAM (The Californian on Wilshire) to present her vision for the year: “Education Through Entertainment.”

The January 25 Educational Luncheon presentation was totally entertaining… and educational! 166 attendees enjoyed a lively, interactive re-enactment or two court cases involving community associations and their owners in order to demonstrate how cases are decided and the factors that influence judges.

16 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter

Our thanks to the cast and crew who made it possible: Greg Borzilleri (PCW Contracting Services, Inc), Howard Christopher (Sky Security Services, Inc.), Lionel Harris, CPM, CCAM,PCAM (Harris Properties), Brian Moreno, Esq. (Richardson Harman Ober PC), Joanne Pena, CCAM, CMCA, AMS, PCAM (Horizon Management Company), Steven Roseman, Esq. (Roseman & Associates, APC), Nathalie Ross(Adams Kessler PLC), and the star of the show and moderator Kimberly Lilley (Berg Insurance Agency, Inc) who wrote the script and staged the production. Thanks also to Jolen Zeroski (Union Bank) for lighting the presentation. ■

Case Law

DramaCourtroomwithJudgeSteven

hat a way to start the year!

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 17

Pictured left to right: Tina Chu, Esq., 2011 Membership Committee Chair (Adams Kessler PLC-Contest Sponsor), Kim Province, Membership Committee member (DM Construction ServicesContest Sponsor), Diane Hilliard, Carol Brockhouse (Rockpointe HOA) 2012 Membership Committee Chair, and Nathalie Ross (Adams KesslerContest Sponsor). Timothy Cline, CIRMS, president of the Timothy Cline Insurance Agency, Inc. was the lucky winner of our a $500 Evening Out on the Town Raffle in which 45 members who recruited at least one new member during 2011 were entered. 130 new members joined our chapter in 2011, largely due to the diligent efforts of the Chapter’s Membership Committee and 45 member recruiters. Our thanks to the 2011 BUILD CAI-GLAC Sponsors: Adams Kessler PLC AMARR Studios, Inc. CBC Cleaning & Restoration City National Bank Concrete Hazard Solutions Constantine Painting, Inc. DM Construction Services Popular Association Banking Ronald S. Stone, Ph.D., CPA.

Diane RecruiterNamedHilliard2011ofthe Year Diane Hilliard, CCAM, CMCA, AMS, PCAM, Director of Property Management at Ross Morgan & Company, Inc., AAMC, received the 2011 Recruiter of the Year Award for the most points earned in her recruitment of new members to the Chapter.

18 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter

1. Nature and extent of problems. This is the greatest consideration— and one which will require consulting construction experts. Leaking windows, roofs and plumbing could arise from a much larger systemic problem, or might merely be isolated events requiring simple repairs. The expense of a construction consultant to determine the cause and extent of the problems, and a rough estimate of the cost to repair, is money well spent and a critical initial consideration. It may be that the problems can be easily repaired, in which case your decision is also easy. If the problems prove to be complicated or expensive, then your investigation and decision process must continue.

4. The association’s ability wait 18-24 months for repairs while the prelitigation and litigation processes run their course. Once it is aware of the problems, the association must determine whether it can forestall permanent repairs, such as a total roof replacement, or get by with

• The potential of future damage and the urgency of repair;

• The applicable statute of limitations.

THE MEETING STARTS AND YOU FIND OUT why they are here. You hear reports of many significant roof and window leaks during the last storm. While you are pleased to finally have a meeting not involving the pool, pets or parking, you now grow concerned that your choice of home investment may have been a bad one. You have probably heard horror stories of developers refusing to respond to serious problems. When the developer is not responsive to major problems, the decision to litigate is easy. But what if the board of directors is only aware of five leaking windows in four units in a 30-unit association? Does that warrant a lawsuit? What about leaking roofs in five of twelve buildings? At what point does filing a lawsuit make sense for an association? What factors should be considered? Although there are many factors that may affect the decision to file a lawsuit, some of the most fundamental considerations are:

After six months, your new association meetings finally have more members than cookies in attendance.

■ By Dennis L. Althouse, Esq.

• The homeowners’ interest and willingness to endure the claim process; and

• The extent of the defects and the anticipated repair cost;

• The association’s ability to forestall repairs for the 18-24 months while the pre-litigation and litigation processes run their course;

2. The potential damage to the association property and the urgency of repair. The board must take all reasonable steps to mitigate and prevent damage. Again, expert input will help weigh the risks of delaying repairs while litigation is ongoing against the immediate necessity of repair. Ultimately, the board must recognize and fulfill its fiduciary duty to take what action is necessary, even if it means imposing an unpopular special assessment. In addition, the board must decide whether to make permanent repairs or interim repairs until further funds can be obtained through litigation.

3. The association’s ability to finance repairs on its own. The ability to finance repairs will, of course, largely depend upon the cost of the repairs and the association’s financial resources. Unfortunately, one typical obstacle for new associations is the developer’s failure to adequately set up the association’s reserves, thereby leaving it without the necessary funds on hand to make repairs, let alone significant repairs. If sufficient funds are not available, the association may also consider a special assessment or a loan to finance repairs.

• The association’s ability to finance repairs on its own;

You have probably heard horror stories of developers refusing to respond to serious problems. When the developer is not responsive to major problems, the decision to litigate is easy.

A CONSTRUCTION DEFECT CLAIM / You are pleasantly surprised because homeowners are finally attending meetings en masse.

THE COMPLICATED DECISION TO PURSUE (OR NOT TO PURSUE)

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 19 no repairs or interim repairs during a period of pre-litigation and possible subsequent court action. A construction defect claim for new associations starts with the pre-litigation procedure outlined at Civil Code Section 895, et seq. (“SB 800”). The SB 800 prelitigation phase typically takes about six months to complete, assuming the process is followed to completion. Often, and unfortunately, it is a much shorter process due to developer noncompliance or disinterest. If the SB 800 process is unsuccessful, the association may file a lawsuit. Once filed, a typical construction defect case will take 18 to 24 months from initial filing to trial. During this time period, and depending on its finances, the association will have to deal with the ongoing problems, temporary repairs (and complaints from owners about the difficulty of selling or refinancing homes).

5. The homeowners’ interest and willingness to endure the claim process. While the board is the ultimate decision-maker on the issue of pursuing a lawsuit, it will need the assistance of its owners. Residents will need to cooperate with multiple inspections of the property and individual units, testing and documentation of damages. Interested owners make this job much easier, while disinterested owners can become obstacles. In the end, the board needs to decide what it must do to protect the interests of the association as a whole, rather than worry about whether the owners are willing to assist in the pursuit of litigation. Typically, most owners will understand the importance of the claim and will support the Board’s actions as a means of protecting everyone’s investment.

6. The statutes of limitation. There is no point in pursuing claims barred by a statute of limitations, so it is important to as soon as possible determine which statutes of limitations may apply to the various defects identified. While there is an outside 10-year statute of repose (CCP Section 337.15), many defects now have shorter statutes of limitations, some as short as one year, under SB 800. If the time has expired, there is no point in pursing litigation. If the time is about to expire, litigation may need to be filed Onceimmediately.aboard has considered these factors, it should be ready to make the decision. (Make no mistake, this is a board decision, which cannot be delegated to the membership.) After making the right decision, the board and the community can move forward in the direction which best serves that community. Dennis Althouse is a partner with the law firm of Richardson Harman Ober, PC. In Pasadena. He can be reached dalthouse@rhopc.com.at

20 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter ultimately have a negative impact on associations. While most people know that CAI is actively engaged in protecting the interests of community associations in Sacramento, few realize the incredible effort CAI volunteer advocates take to protect our communities, management companies and businesses. CAI advocates for our members through state-based Legislative Action Committees (LACs) and in California the LAC is officially called the CAI California Legislative Action Committee or “CLAC.” It is one of 33 state-based LACs that advocate for community associations in states across the country. But who serves on a LAC? What principles guide their work and how does the CLAC work with CAI’s eight California chapters? In a state (like California) where CAI has multiple chapters, it is important that we speak with one voice to legislators. For this reason, CAI National has established Legislative Action Committees to serve as the coordinating body for CAI’s legislative, regulatory and legal advocacy in a state. Each LAC is made up of CAI members from within the state: in California each of the eight chapters nominates two delegates to serve on CLAC. CLAC also has the ability to nominate “at-large” delegates that do not represent a specific chapter, but serve as atlarge (state-wide) members. Each LAC strives to have a balance of members representing each of the membership types of CAI: Community Association Volunteer Leaders, Community Managers and Business Partners. All the nominees to the LAC are reviewed and approved by the board president of CAI’s national organization. CLAC and other state LACs are guided in their legislative efforts by CAI’s public policies. The public policies are memberdeveloped statements on CAI’s views on issues critical to community associations. The public policies provide a broad outline for CAI’s positions on key issues like assessment collection, homeowner rights, environmental issues and other critical topics. Aside from nominating delegates to serve on CLAC, local CAI chapters play a vital role in the support of CAI’s advocacy efforts. Local chapters have the option to create local legislative support committees. These committees can help with chapter CALIFORNIA LEGISLATIVE COMMITTEE WHEREDoesit All Fit In?

Kimberly Lilley is Director of Marketing for Berg Insurance Agency, and the PR Chair for the California Legislative Action Committee

From the local chapter legislative support committees through the state-wide CLAC all the way to the Government & Public Affairs Committee at the national CAI level, the goal is the same: to research pending bills that may affect community associations and to educate both the legislators and our membership about these bills and the best way to handle them. Together, we are more than we could ever be alone.

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 21 Judy Remley, Vice President 2797 Agoura Rd., Westlake Village, CA 91361 (888) 539-9616 www.FirstBankHOA.comJudy.Remley@fbol.com Specialized banking for community associations & management professionals • Operating and Reserve Checking • Association Loans • CD Placement Services • Business Online Banking • Remote Deposit • Automated Lockbox Services • Automatic Assessment Payments • Simplified Association Signature Cards AssociAtion BAnk seRVices fundraising to support the state-wide legislative activity, they can actively discuss potential legislation and how it affects their chapter and they can help to keep their chapter informed of the activities of the state-wide entity. California’s Legislative Action Committee has chosen to appoint a liaison for each chapter to provide continuity in communication between the state-wide LAC and the local chapters. You may see your chapter’s liaison presenting a “CLAC Moment” at a monthly luncheon, and that liaison may be attending your chapter’s board meetings to keep the board apprised of the state-wide CLAC’s current activities. The liaisons may also help to ensure that the chapter’s delegates are kept informed of their local chapter’s feelings on legislation, so when the delegates vote at a state-wide CLAC meeting on positions to take on certain bills, the delegates can accurately reflect the desires of the chapter that they represent.

ASSOCIATIONSCOMMUNITYINSTITUTE SUMMARY OF PUBLIC POLICIES d

■ AESTHETICS AS AN ECONOMIC ISSUE CAI opposes any and all attempts at the federal, state and local levels to enact laws or regulations that ignore or negate the economic importance of aesthetic controls.

■ ASSESSMENT INCREASE LIMITATIONS

CAI supports the elimination of any requirement that community association documents prohibit the increase of assessments by the board of directors above a fixed percentage without approval of a vote of owners.

CAI recognizes the need for and supports the use of alternative dispute resolution mechanisms to resolve disputes arising in community associations in appropriate cases.

■ COMMUNITY ASSOCIATION BUDGETS AND RESERVES CAI believes it is imperative for all community associations to adopt and use a financial planning and budget process which accurately reflects projected

■ ALTERNATIVE DISPUTE RESOLUTION

22 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter Insects Bees, Wasps, Ants, Spiders Rodents Gophers, Mice, Rats, Ground Squirrels Trapping Raccoons, Coyotes, Skunks, Opossums Specialty Birds,Rabbits,Bats Call Today For a FREE Consultation 888 344 6567 Solve Your Damaging Pest Problems with Guaranteed Results. Animal & Insect Pest Management Inc., has a team of experts to help you manage all your pest problems large or small. All of our Urban Wildlife Professionals are State Certified Pesticide Applicators, extensively trained in pest identification, damage recognition, management methods and safety. In addition, our Biologist develops precision pest management programs that ensure the most humane, ecologically sound and legal methods are used to guarantee results Visit us online www.animalinsectpm.com Questions? info@animalinsectpm.com FOR ALMOST 40 YEARS, CAI HAS BEEN THE LEADER IN PROVIDING EDUCATION AND RESOURCES TO THE VOLUNTEER HOMEOWNERS WHO GOVERN COMMUNITY ASSOCIATIONS AND THE PROFESSIONALS WHO SUPPORT THEM. ■ CAI ALSO ADVOCATES FOR LEGISLATIVE AND REGULATORY POLICIES THAT SUPPORT RESPONSIBLE GOVERNANCE AND EFFECTIVE MANAGEMENT. WE REPRESENT THE INTERESTS OF OUR MEMBERS BEFORE THE U.S. CONGRESS, FEDERAL AGENCIES AND OTHER POLICY-SETTING BODIES ON ISSUES SUCH AS TAXES, INSURANCE, BANKRUPTCY REFORM AND FAIR HOUSING.

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 23 Over 75 Offices throughout California Partner with Strength. Partner with Pacific Western Bank. Annette Abernethy Vice President | (310) 996-9105 | aabernethy@pwbonline.com Tonya Guyot Assistant Vice President | (310) 996-9106 | tguyot@pwbonline.com 11150 W. Olympic Boulevard, Suite 100, Los Angeles, California 90064 HOA Banking Solutions CashSolutionsManagement MultipleOptionsPaymentOnline Access and Research Innovative Lockbox Processing Capabilities HomeownerLoansAssociation Member FDIC www.pacificwesternbank.com annual operating costs and long-term capital or major expenses (“reserves”) and results in a balanced budget. CAI believes that the developer and developer-controlled board should prepare and disclose the initial budget to assure accurate estimation of projected operating costs and reserves. CAI also supports full and open disclosure to owners and the opportunity for participation by owners in the development of the budget. Further, CAI opposes laws which would mandate how community associations fund and maintain reserves. ■ COMMUNITY ASSOCIATION MANAGER LICENSING POLICY CAI encourages the national certification of community association managers. In states that propose mandatory regulation of community association managers, CAI will support a regulatory system that incorporates adequate protections for homeowners, mandatory education and testing on fundamental management knowledge, standards of conduct and appropriate insurance requirements. CAI opposes the licensing of community association managers as real estate brokers, agents or property managers. ■ COMMUNITY ASSOCIATION MEMBERS’ AND RESIDENTS’ BILL OF RIGHTS CAI supports a balance of the rights of an individual owner in a community association with the need for effective management of the affairs of the association for the benefit of all the owners. Reasonable association procedures which empower the board CONTINUED ON PAGE 24

CAI believes that homeowners should be informed about association matters that may impact their decision to purchase a home/unit and will educate them about their personal rights and responsibilities with regard to the community association. Disclosure documents/resale certificates are invaluable consumer information tools because it is vital that buyers know what they are buying.

CAI strongly supports the elimination of community association restrictions that prohibit the display of a reasonably sized, removable American flag from a resident’s exclusive use or limited common element areas, so long as the flag is displayed in accordance with the Federal Flag Code, 36 U.S.C. Sections 171-178, as amended. CAI further believes that community associations – not a state law – are best suited to determine the appropriate size, placement and installation of a flagpole.

■ DISPLAY OF THE AMERICAN FLAG

■ COMMUNITY ASSOCIATION TAXATION

■ EFFECTIVE COLLECTION OF COMMUNITY ASSOCIATION ASSESSMENTS

CAI supports effective, fair and reasonable collection methods, including lien rights and due process protections, and opposes government limitations on their efforts. CAI also supports reasonable procedures to accommodate unit owners experiencing temporary financial difficulties.

■ DISCLOSURE BEFORE SALES IN COMMUNITY ASSOCIATIONS

SUMMARY OF PUBLIC POLICIES CONTINUED FROM PAGE 23

CAI supports the elimination of the residential requirements of Code Section 528; the gross revenue of 60% test of Code Section 528; the 90% expenditure test of Code Section 528; the flat 30% tax rate of Code Section 528 and replacement with an average marginal tax rate, paid by individual taxpayers.

24 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter of directors and staff of the community association to perform their obligations efficiently must take into account the rights of an individual owner to privacy, enjoyment of his or her home and full participation in the community association.

■ ENVIRONMENTAL QUALITY

■ FAIR DEBT COLLECTION PRACTICES ACT CAI supports legislative, regulatory or judicial actions to establish that community association assessments are not “consumer debt” as defined by the Fair Debt Collection Practices Act or similar state statutes.

CAI strongly supports protection of the health and well-being of all individuals residing or working in common-interest communities by increasing sensitivity to environmental quality; and environmental quality in common-interest communities and remediation of environmental pollution, including harmful substances contained in building materials and landfills.

Experience professional delinquent assessment recovery. 8 8 8 - 8 4 5 - 8 8 0 8 w w w . w i t k i n a n d n e a l . c o m

■ FAIR HOUSING CAI supports the right of all individuals to be free from illegal discrimination on the basis of race, creed, color, sex, national origin, familial status or handicap. CAI also supports the right of community associations to enforce their covenants, by-laws and rules provided they do not illegally discriminate against any protected class. CAI will progressively pursue fair and reasonable interpretations and administration of, or changes to, Fair Housing Acts and related legislation and regulations.

■ FAIRNESS IN FEDERAL DISASTER RELIEF Community Associations Institute (CAI) supports a legislative or regulatory change to the Robert T. Stafford Disaster Relief and Emergency Assistance Act so that community associations are eligible for federal assistance following a disaster, including but not limited to debris removal and cleanup.

CONTINUED ON PAGE 26

■ FEDERAL HOME LOAN MORTGAGE CORPORATION PROPOSED REQUIREMENTS FOR CERTAIN CONDOMINIUMS IN CALIFORNIA CAI supports a one-year delay in implementation of the Federal Home Loan Mortgage Corporation (Freddie Mac) Bulletin No. 95-2 and the appointment of an industry task force to develop better ways to protect Freddie Mac’s interests without adverse impact on the availability of financing for condominium housing.

EARTHQUAKE

CAI supports effective state legislation–when it is deemed necessary for consumer protection, conversion limitations, protections for ongoing operations or other additions to existing statutes or common law, to ensure that community association housing is developed and maintained consistently with legitimate public policy objectives and standards that protect individual consumers, balancing the legitimate rights of the development industry. Local legislation concerning

SUMMARY OF PUBLIC POLICIES CONTINUED FROM PAGE 26

CAI urges the promotion by federal lending-related agencies and the secondary market to promote the availability of adequate financing programs for community association housing. CAI supports the development of consistent national legal and underwriting standards for community associations, and reciprocal approval of community associations by federal agencies and the secondary mortgage market and urges federal lending-related agencies and the secondary market to promote the availability of financing for community association housing.

26 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter

■ FINANCING AVAILABILITY FOR COMMUNITY ASSOCIATION UNITS OR LOTS

■ FLOOD INSURANCE

CAI urges the insurance industry to be responsive to the flood insurance needs of community associations by providing the necessary coverage based on need, risk, and the practical considerations of community associations, both in general and as an optional alternative to government provided flood insurance under the National Flood Insurance Program (NFIP). At the same time CAI urges FEMA to review the terms, conditions, zone maps, and rating structure of the flood insurance coverage it provides community associations, under the NFIP, and revise them as necessary, to reflect the need, risk, financial and practical considerations of community associations.

CAI believes that flood insurance should be available to all community associations, either through primary carriers or through a federally supported program. Such coverage should be made available at rates that are appropriate to the risk without a coinsurance requirement and on a basis that recognizes the ownership structure of the community association involved. Such insurance coverage shall be provided in a manner that is fitting for the exposure faced by the association that distinguishes between the insurance responsibilities of the association and the individual residents and/or owners, and in accordance with the insurance responsibilities of the individual community associations, whether they are condominiums, cooperatives, homeowners associations, or PUDs.

■ GOVERNMENT REGULATION OF COMMUNITY ASSOCIATIONS

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 27

■ HOME-BASED BUSINESSES IN COMMUNITY ASSOCIATIONS

CONTINUED ON PAGE 28

the creation or governance of community associations is antithetical to a balanced, well-considered weighing of all issues and interests affecting community associations, encourages a patchwork of regulations within an individual state and is, therefore, better dealt with at the state level.

CAI supports environmental and energy efficiency policies that recognize and respect the governance and contractual obligations of community association residents as the best mechanism to enact sustainable environmental policies.

■ CONSERVATION, SUSTAINABILITY & GREEN ISSUES

CAI supports legislative protections against unwarranted legal liability for volunteers serving as members of a community association board of directors or committee, to enable them to make responsible judgments without fear of personal loss interfering with the judgment or decision making process. CAI further supports indemnification of community association volunteers and the provision of directors and officer’s insurance coverage as a common expense.

■ HOMEOWNER INVOLVEMENT IN COMMUNITY ASSOCIATIONS

CAI believes in direct homeowner involvement and participation in community associations and should be encouraged throughout the developmental process and operational phases of community associations.

CAI encourages the secondary mortgage market to implement the addition of an Insurance Trustee endorsement requirement for community association property insurance policies for new projects in order to provide protection to the assets of the community association in the event of a major catastrophe, and opposes naming Freddie Mac or other secondary mortgage market entity as a loss payee on a community association insurance policy.

■ INSURANCE TRUSTEE ENDORSEMENT REQUIREMENT

■ LIABILITY OF COMMUNITY ASSOCIATION VOLUNTEERS

CAI recognizes and supports the rights of residential commoninterest communities to regulate the nature of commercial activities within their communities, including the option to choose whether or not individual residences can be used as home-based businesses. CAI encourages associations that regulate commercial activities to restrict only those activities that the associations have reasonably determined have an adverse effect on the community and to permit childcare facilities, home office use and other home-based businesses that do not have an adverse effect. CAI supports the amendment of covenants to allow home-based businesses that do not have an adverse impact on the community. CAI opposes legislation that would supersede any covenant restrictions on home-based commercial activities.

CAI believes that common interest communities should not be taxed for municipal not provided. Separate assessment and taxation of common property is unjust double Homeowners should be allowed to deduct association attributable to the of public functions.

services

restricting lending institutions

taxation.

performance

■ QUALITY CONSTRUCTION AND RIGHTS OF ASSOCIATIONS AND BUILDERS IN THE EVENT OF DEFECTS

for regularly paid assessments and

28 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter Our dedicated experts understand the needs of associations. We can Finance your essential projects, including: • Building Repairs • Improvement Projects Contact Larry 714-864-5171Hooper lhooper@bpop.com Imagine a bank that enhances and protects the financial health of your community association. ©2010 A Division of Banco Popular North America. Member FDIC. associationbankers.com We offer state-of-the-art Lock Box services as well as a full array of other depository services. ■ LIMITED LIEN PRIORITY FOR COMMUNITY ASSOCIATION ASSESSMENTS

CAI believes that builders and construction professionals should deliver a product made with quality workmanship and free from defects. CAI also recognizes that homeowners must be reasonable in their expectations of the quality of construction of their homes. CAI supports legislation and regulations concerning construction defects that adequately balance the rights and responsibilities of community associations, their boards and homeowners, and of builders and construction professionals.

CAI supports a six-month priority lien over the first mortgage modification of laws from loans which to the community association assessment lien priority. LOCAL TAXATION FOR COMMUNITY

ASSOCIATIONS

assessments

■ PRIVATE PROPERTY PROTECTION

CAI supports protections that enable property owners to challenge and resolve efforts to take common property. CAI opposes legislative, regulatory or judicial actions that would limit or restrict the ability and rights of community associations to maintain control over association common property.

are subject

SUMMARY OF PUBLIC POLICIES CONTINUED FROM PAGE 27

any

■ REASONABLE OCCUPANCY STANDARDS

CAI supports the right of community associations to establish reasonable occupancy standards. CAI opposes the implementation and enforcement of the Federal Fair Housing Act in a way that treats reasonable occupancy standards as discrimination on the basis of familial status. Under no circumstances should an occupancy standard of two persons

AND PUBLIC SERVICES

making

CAI supports and urges that Congress amend 38 U.S.C. 1810, to allow the same veteran’s benefits to a housing cooperative purchaser as it does to a purchaser of condominium.

■ TELECOMMUNICATIONS

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 29 Southern California’s Most Trusted Construction Service Provider • RECONSTRUCTION PROJECTS • HIGH-RISE SPECIALISTS • WATERPROOFING SYSTEMS & LEAK REPAIRS • WOOD REPLACEMENT & STRUCTURAL REPAIRS • DECK SYSTEMS, REPAIRS & MAINTENANCE • WINDOW & DOOR REPLACEMENT • STUCCO, MASONRY & EFIS • PAINTING & EXTERIOR COATINGS • CONCRETE, ASPHALT & EPOXY INJECTION • POOL AND SPA REPAIRS & REPLACEMENT • ROOF SYSTEMS, REPAIRS & TITLE 24 ROOF COATINGS • INTERIOR AESTHETIC UPGRADES & TENANT EXTRAORDINARYIMPROVEMENTSSERVICE ~ EXCEPTIONAL RESULTS 981 W. 18th Street ~ Costa Mesa, California 92627 949.548.9969 ~ FAX customerservice@pcwservices.com949.548.9711 License # 699611 HIGH COMMERCIALRISEHOAVISITOUR NEW WEBSITE AT PCWSERVICES.COM per bedroom plus infants constitute discrimination under the Federal Fair Housing Amendments Act. ■ RENTERS IN COMMUNITY ASSOCIATIONS CAI supports a balanced approach to the treatment of tenants in community associations, while protecting traditional property rights, including reasonable regulation of transient occupancy, tenant compliance with association standards, and the integration of tenants into the community on an equal basis.

Please check CAI National’s Web site at www.caionline.org annually for the latest updates or additions.

■ TRANSITION OF COMMUNITY ASSOCIATION CONTROL FROM THE DEVELOPER TO HOMEOWNERS

However, CAI opposes governmental regulation that would require community associations to permit telecommunications providers, video programming providers or individual association residents to install equipment or wiring on common property without prior association approval and control. CAI also opposes any federal or state initiatives that would limit a community association’s ability to enter into telecommunications or video programming contracts.

■ RULES DEVELOPMENT AND ENFORCEMENT

■ SUPPORT FOR THE UNIFORM ACTS CAI supports and recommends consideration and adoption of the one or more of the Uniform Community Association Acts by all states. In those states where it is not appropriate, practical or possible to adopt one or more of these uniform acts in their entirety, the Institute supports and recommends consideration of appropriate portions of these laws.

CAI supports the growth of competition in the telecommunications and video programming marketplace among telephony, cable, satellite, television broadcast, wireless cable, and other providers so that community association residents will have access to advanced, innovative services.

For additional information and more detail, please contact CAI’s Government & Public Affairs Department by phone (703.970.9220), fax (703.970.9558) or e-mail (g&pa@caionline.org).

CAI recognizes that successful transition is the responsibility of the developer, through continuing training, education programs, and homeowner involvement in association governance.

■ VETERANS ADMINISTRATION GUARANTEEING LOANS SECURED BY SHARES OF STOCK IN A HOUSING COOPERATIVE

Public policies are subject to change and may be amended from time to time.

CAI supports legally sound, fair and equitable rules development and enforcement procedures in community associations.

30 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter Page 29 Action Property Management Email: Karen Dubose to kdubose@actionlife.com ABM Property www.abmpropertymgmt.comManagement Page 30 CALCO Management, LLC 1100 S. Hope St. #103 Los Angeles, CA 90015 Page 34 J & N www.homeownersassociationmanagementla.comRealty Page 36 Optimum Property Management, Inc. www.optimum.com Page 40 Tandem Property Management, Inc. Torrance,21151UNYGLOBEwww.lyonspm.comManagementS.WesternAve.#100CA90501 Page 45 Margaret DominguezAllenHills Village COA is in Carson Page 56 Sasoon Mananian 2534 Honolulu Ave. Montrose, CA 91020-1806 Page 61 Haney Accountants Inc. Email: lharris@haneyinc.com Page 65 Levitt Group www.levittgroup.orgArchitects Pages 68, 76 & 83 Roseman & Associates, APC Fax: 818-380-6710 Page 76 Procter, Slaughter & Reagan, LLP Is now Slaughter & Reagan, LLP Bevin Berube, Esq. 625 E. Santa Clara St. #101 Ventura, CA www.pariserandpariser.comPariserwww.srllplaw.comberube@srllplaw.com93001-2820&Pariser,LLP Page 93 PCW Contracting Services, Inc. ad Phone: 949-548-9969 Page 98 Community Archives 387 Magnolia Street #103-218 Corona, CA 92879 Page 103 Servpro of Santa Clarita Valley/Palmdale/ NewActon/LancasterContact:Claudia claudia.sheridan@servpro9209.comSheridan Additions & Corrections to 2012 Membership Directory Condominium Exterior High - Rise Commercial H.O.A. Water Proofing Commercial Exterior Apartment CondominiumExteriorExterior Commercial Exterior Commercial Exterior Commercial Exterior Commercial Exterior H.O.A. Exterior H.O.A. Exterior H.O.A. DuplexExteriorExterior Water Proofing Water Proofing WaterTennisProofingCourt HI-TECH Painting and Water Proofing www.hitechpainting.com 1-800-750-8423 Lic. # B, C-33 866801 Pages 104, 139 & 156 ProTec Building Services is in #1205 Page 106 Condo Approvals, LLC Patricia Eberhardt 879 W 190th St #400 Gardena CA 90248 Pages 106 & 181 Saddleback Fence & Vinyl Products 23120 Pullman Street #B Costa Mesa, CA 92626 Phone: 888-498-4695 Fax: www.saddlebackvinyl.comJfergusan@saddlebackvinyl.com714-975-5259 Page 128 Timothy Cline Insurance Company, Inc. is in #100 Page 133 Allstate Landscape Services, Inc. Jay McMullen P.O. Box 7434 Mission Hills CA 91346 Page 140 AppFolio, Inc. 50 Castilian Drive Goleta, CA 93117-3026 Page 169 Absolute Security & Technologies, Inc. 4615 Industrial Street #1-W Simi Valley CA 93063

CAI-Greater Los Angeles Chapter January/February 2012 | www.cai-glac.org 31 BUSINESS PROFESSIONALS RECRUITER Allana Buick & Bers, Inc,. CAI National AT&T Connected Communities CAI National BELFOR Property Restoration Jeanie La Croix CommerceWest Bank, N.A. CAI National Dinyari, Inc. CAI National Eagle Roofing Products CAI National ENVIROCHECK, INC. April Tronson Guard-Systems, Inc. CAI National Hosp, Gilbert, Bergsten & Hough CAI National LPS Field Services, Inc. CAI National MeterNet Sub-Metering & Billing Solutions CAI National Play Safe Inspection, Inc. Gail Jones, CCAM®, CMCA®, AMS®, PCAM® Oasis Pool Service Michael Sukey, CMCA® Pacific Vista Landscape Services, Inc. CAI National Restoration Management Company Nathalie Ross SouthData, Inc. CAI National Terminix International CAI National Urban Tree Care CAI National COMMUNITY ASSOCIATIONS HarborPlace Tower HOA CAI National Marina City Club Susan Larson, CCAM® COMMUNITY MANAGERS Amy Danner Lindsey Knoten, CMCA® |The Ritz-Carlton at L.A. Live Kristen Hicks Jim Bucks, CMCA® Premier Property Services, Inc. Tacie Jares CAI National Seco Canyon HOA Candi Kocher CAI National Four Seasons HOA Donyelle La-Key, CCAM Barbara Freeman Condominium Administration Co., Inc. Diciembre Vaca Donyelle La-Key, CCAM® Condominium Administration Co., Inc. Donovan Bowes Jose Glez, CIRMS® National Property Management Group, Inc. Rommel Rivas Brad Watson, CMCA®, AMS® Property Management Professionals, LLC Sarah Taylor CAI National Active Property Management NEW CAI-GLAC MEMBERS! WELCOME AS OF JANUARY 31, 2012 TO RENEWING MEMBERS! OUR THANKS AS OF DECEMBER 31, 2011 BUSINESS PROFESSIONALS Anthony Elliot Insurance Agency, Inc. Coinmach Corp. Condo Approvals, LLC Dapper Janitorial Gayle G. Gould, CPA Har-Bro Emergency Service & JMCReconstructionConstruction and Painting Kilowatt, Air Conditioning, Heating, Electric & Solar Law Offices of Laura J. Snoke Mister WitkinSkyRosemanRonaldPopularParliamentarianAssociationBankingS.Stone,Ph.D.,CPA&Associates,APCSecurityServices,Inc.&Neal,Inc. COMMUNITY ASSOCIATIONS 20th Street Harbor View Villas HOA Corning Court HOA Hancock Plaza HOA Heritage Townhomes Owners Assn. South Bayport HOA Valencia Fairways HOA Villa Barcelona HOA COMMUNITY MANAGEMENT COMPANIES CALCO Management, LLC Manhattan Management Corporation Miller & Desatnik Management Co, Inc. Property Management Professionals, LLC Property Management Solutions, Inc. Ross Morgan & Company, Inc., AAMC COMMUNITY MANAGERS John Burton Le Parc HOA Paul Cannings, CMCA® Beven & Brock Lynne Collmann, CMCA®, AMS® Savoy Community Association Manuel Diaz, CMCA®, AMS® 10560 Wilshire Condominium Assn. Chuantesee Evans, CCAM®, CMCA® Hollywood Regis HOA Michelle Gibson Condominium Administration Co., Inc. Christine Greengrass, CCAM®, CMCA®, AMS®, PCAM® Azzurra HOA Brandon Grosh, CMCA®, AMS® Property Management Professionals, LLC Vanda Hembree Wellman Property Management, Inc. Ariel Hess, CMCA®, AMS® Scott Management Company Barbara Q. Offer, Ph.D., CCAM® Le Faubourg St. Louis Jacob Parvino, CMCA® Regatta Seaside HOA Larry Pfander Elleven HOA Melanie Reesing Palos Verdes Bay Club, Inc. William Reimbold, MBA, CMCA®, AMS® Bowker & Roth Property Services Diane Rossiter, CMCA® Tara Hill HOA Barabra Schwartz Glen Towers Owners Assn. Michelle Sesto, CCAM® Horizon Management ®Company Maria Tiscareno Franklin Towers HOA

32 www.cai-glac.org | January/February 2012 CAI-Greater Los Angeles Chapter ADVERTISERS INDEX ADVERTISING INFORMATION Dimensions & Rates: Artwork must not exceed the exact dimensions of that size ad. For more information, call the Chapter office: 323/254-9526. Ad Size Ad Dimensions Members Non-Members ⅛ page 3½" wide x 2" (Horizontal)high $200 $400 ¼ page 3½" wide x 4¾" high (Vertical) $300 $600 ½ page 7½" wide x 4¾" (Horizontal)high $425 $850 Full Page 7½" wide x 10" high (Vertical) $800 $1,400 Payment: Rates are subject to change without notice. By credit card, check or cash. Minimum three-insertion contract. Rates subject to change without notice. Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 323/254-9526. 22 Animal & Insect Pest Management, Inc. 15 Association Reserves, Inc. 28 Cacho MaintenanceLandscapeCo.,Inc. 26 Fenton Grant Mayfield Kaneda & Litt, LLP 24 Ferris Painting, Inc. 21 First Bank Assoc. Services 29 First Bank Assoc. Services 29 Gayle G. Gould, CPA 30 Hi Tech Painting & Decorating 15 Mutual of Omaha Bank/ CondoCerts 23 Pacific Western Bank 14 Payne Pest Management 29 PCW Services,ContractingInc. 24 Play Safe Inspection, Inc. 32 Poindexter & Company, CPAs 28 Popular BankingAssociation 26 Preferred Commercial Painting 20 R.W. Stein Painting, Inc. 25 Reserve Studies Inc. 19 Richardson Harman Ober PC 7 Ross Morgan & Company, Inc. 15 Royal Roofing.com 27 Salsbury Industries 11 Sandra InsuranceMcdonald 9 Select Painting 8 Steven G. InsuranceSegalAgency 21 Swedelson & Gottlieb 23 Timothy InsuranceClineAgency, Inc. 25 Witkin & Neal, LLC 13 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP 2012 UPCOMING EVENTS MARCH16 Chapter Board of Directors Meeting – 8:30 a.m. Pickwick Center, Burbank 21 Educational Luncheon – 11:30 a.m. Skirball Cultural Center, Los Angeles 23 Common Interest Development 8-Hour Law Seminar – 8:00 a.m. Sherman Oaks 28 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m. Bridgeport HOA Clubhouse, Valencia 29 South Bay Evening Program for HOA Boards and Manager – 7:00 p.m. Location TBD APRIL14 Essentials of Community Leadership Workshop – 8:15 a.m. Location TBD 15-16 CA Day in the Capitol & Community Plus Sacramento 19 San Gabriel Valley Evening Program for HOA Boards and Managers– 7:00 p.m. Location TBD 20 Chapter Board of Directors Meeting – 8:30 a.m. Pickwick Center, Burbank 25 Educational Luncheon – 11:30 a.m. Skirball Cultural Center, Los Angeles MAY2-4 CAI National Conference Caesar’s Palace, Las Vegas 13 Chapter Board of Directors Meeting – 8:30 a.m. Pickwick Center, Burbank 23 Educational Luncheon – 11:30 a.m. Skirball Cultural Center, Los Angeles

CAI – Greater Los Angeles Chapter 2012 Golf Tournament Woodland Hills Country Club 21150 Dumetz Road Woodland Hills, CA 91364 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Registration ................ 8:00 a.m. Shotgun Start ............... 9:00 a.m. 19th Hole .................. 2:30 p.m. Dinner Raffle, Awards ........ 4:00 p.m. $200 per player Includes green fees, cart, goodie bag, lunch, dinner and awards/prize drawings $55 Dinner & Social Only Includes dinner and awards/prize drawings Prize for the best Las theme-decoratedVegastee!

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