Focus Magazine - September/October 2012

Focus

September/October 2012

L.A.’s Premier Source of Information for Community Associations

Rights & Responsibilities for Better Communities About FHA Approval Preserve & Protect Property Maintenance

SAVE THE DATE:

Casino Night November 3

Get Your Game On

Anything can happen when The Dark Side takes over for an evening…

When witches & warlocks assemble… When the guest list includes Count Dracula, Frankenstein & his bride, Elvira, the Addams Family & the Phantom of the Opera.

Monsters’Ball Casino Night November 3, 2012 Park Plaza Hotel

607 South Park View Street, Los Angeles 6:00 p.m.

Hosted Cocktail Hour 7:00 p.m.

Dinner and Entertainment 8:00 p.m.

Gaming and Dancing 10:45 p.m.

Raffle Tickets: $125 Per Person or $1,250 Table of 10 Formal Attire/Theme Costumes Are Encouraged Cash Prizes for Best Costumes

Come join them for an evening of music, dancing, dinner, gaming & raffle.

Sign up now for a sponsorship and tickets at www.cai-glac.org.

We’ll be expecting you!

Current Sponsors Potions (Happy Hour) Securitas Security Services USA, Inc.

Broomstick (Parking) Hi-Tech Painting & Decorating, Inc.

Queen of the Damned Pacific Western Bank

Creep Show Photo Booth Rodent Pest Technologies, Inc.

Eerie Tunes from the Crypt Preferred Commercial Painting, Inc.

Jack of the Lantern Mutual of Omaha Bank Vinyl Concepts, Inc.

Deadly Treats Shoppe Boyd & Associates ENDURA Painting Corporation

2012 BOARD OF DIRECTORS OFFICERS Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998 Catherine Gemind, CMCA®, AMS®, PCAM®, President Elect Valencia Management Group, 661-295-9474 Matt D. Ober, Esq., Vice President Richardson Harman Ober, PC, 626-449-5577 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 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® The Wilshire Condominiums, 310-446-5333 Robert Ridley, Esq. Castlegate HOA, 213-626-0291 Lynn Ruger Warner Club Villas HOA, 818-703-7090 David C. Swedelson, Esq. Swedelson & Gottlieb, 310-207-2207

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2012 COMMITTEE CHAIRS COMMUNITY OUTREACH Meigan Everett, CMCA®, Power Property Management EDUCATION Gregg Lotane, CCAM®, PCAM®, The Wilshire Condominiums FINANCE Jolen Zeroski, CMCA®, Union Bank GOLF TOURNAMENT Teresa Agnew, Gifted... creative marketing solutions Daisy Vasquez, Securitas Security Services USA, Inc. LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE Catherine Gemind, CMCA®, AMS®, PCAM® Valencia Management Group April Tronson Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley MEMBERSHIP Vanessa Acosta, Mission Valley Bank 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., Richardson Harman Ober PC FOCUS Magazine Sherry Branson, Kevin Davis Insurance Services Matthew Gardner, Esq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.

SOCIAL Pamella De Armas, SAX Insurance Agency, Inc. Alba Monroy, ABM Property Management WINE NIGHT Joanne Pena, CCAM, CMCA, AMS, PCAM, Horizon Management Co. Jolen Zeroski, CMCA®, Union Bank

CAI-Greater Los Angeles Chapter

NEWSWORTHY 4 For Board Members: Ways To Promote Volunteerism 5 CAI Membership Benefits for the HOA Volunteer Leader 6 Rights and Responsibilities 7 Rights and Responsibilities for Better Communities 8 What’s Your Fraud IQ? 10 About FHA Approval 12 NEWS FROM SACRAMENTO: History of CLAC Series Interview with Dick Fiore — CLAC Chair from 1991-1994 16 Construction Defect Litigation Has Reached Its Pinnacle – And Now Moves To Arbitration 21 “Preserve and Protect” Property Maintenance 24 Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets

CHAPTER UPDATE 2 Note From the Editor’s Desk 3 President’s Message

NOTEWORTHY 20 Homeowners Association Marketplace 26 Wine Night Highlights

FYI 30 32 32 32

CAI-GLAC Membership News 2012 Upcoming Events Advertisers Index Advertising Information

Save the Date: C asino Night November 3

This publication seeks to provide CAI-GLAC’s 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 author 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

On the Cover

Doheny West Towers HOA Photo Courtesy of Wes Frye Photography

STAY CONNECTED:

130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Office: 818-500-8636 Fax: 818-500-8638

September/October 2012 | www.cai-glac.org

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2012 CAI-GLAC Super Sponsors PLATINUM

Get Your Game On!

F

ALL HAS ARRIVED, THE SUMMER IS over and the presidential election is right around the corner! As usual, fall is a very busy time as summer comes to a close. It’s time again for the CAI Annual Homeowners Association Marketplace, and this year it proves to be better than ever.

daunting prospect since the rules and requirements change on a regular basis.

Natalie Stewart provides the latest news and insightful information which will help to save associations time and money when it comes to the FHA approval process.

A big change in the world of construction defect litigation has taken place. Construction defect litigation has moved from civil courtrooms to the world of binding arbitration. In his article, Dennis Althouse, Esq. explains what this means to us.

Preserving and protecting real estate values is now more important than ever. How is this accomplished? Deena Kanoff writes about all of the things an association FROM THE EDITOR’S DESK needs to do to protect an association’s property values through curb appeal and maintenance Finding new board members is planning. challenging at times for many associations. A very helpful and Jim Griego then writes about preserving informative article on ways to promote an association’s most valuable landscape volunteerism at associations and to asset—trees—through smart and encourage residents to sit on their timely pruning. boards is written by Alexandria Spargo.

Have a safe autumn and enjoy the Protecting association assets is the educational seminars and Homeowners focus of an article by Lisa Ann Rea, Association Marketplace. I look forward CMCA, AMS. Lisa writes about to seeing you there! safeguarding associations from — Sherry Branson embezzlement and cyber crime, and Editor she gives tips on what associations should be doing in their quest to protect themselves from crime.

NOTE

Navigating through the world of FHA mortgage regulations is a

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.

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www.cai-glac.org | September/October 2012

Anderson Group Int’l Restoration & Remediation Contractor Animal & Insect Pest Management, Inc. Duramax Building Products Pacific Western Bank Payne Pest Management Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP GOLD Beaumont Gitlin Tashjian Behr Paint Corp./THE HOME DEPOT USA CertaPro Painters Ltd. Farmers Insurance Group— Steven G. Segal Insurance Agency, Inc. Fenceworks, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. First Bank Association Services Hi Tech Painting & Decorating, Inc. Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc. Popular Association Banking Rodent Pest Technologies, Inc. Ross Morgan & Company, Inc. Securitas Security Services USA, Inc. Select Painting Sky Security Services, Inc. The Edward Group SILVER Accurate Termite & Pest Control Association Reserves, Inc. Collins Builders, Inc. Marina Landscape Painting Unlimited, Inc. Reconstruction Experts, Inc. Reserve Studies Incorporated S.B.S. Lien Services SAX Insurance Agency Stay Green Inc. Swedelson & Gottlieb Three Phase Electric Timothy Cline Insurance Agency, Inc. Union Bank

BRONZE Action Duct Cleaning Company Advanced Painting, Wood Repair & Wrought Iron Berg Insurance Agency, Inc. City National Bank DM Construction Services LPS Field Services Mission Landscape Services Patriot Environmental Laboratory Services, Inc. Poindexter and Company, CPAs Professional Services Construction, Inc. Richardson Harman Ober PC Sherwin-Williams Paint Silldorf & Levine, LLP We thank our 2012 sponsors who have made a substantial contribution to ensure our continued success this year.

Contact the Chapter Office at 323-254-9526 to sponsor a program or an event.

CAI-Greater Los Angeles Chapter

MESSAGE

FROM THE PRESIDENT

Better.

Together.

“ Coming together is a beginning; keeping together is progress; working together is success.” — Henry Ford

I

t’s true what they say, two heads are better than one. In the same vein, two-thousand(plus!) voices are clearly stronger as one, as demonstrated by the successful enactment of Assembly Bill 2273, the foreclosure notification bill that we co-sponsored with the Conference of County Bar Associations.

We came together this year to lend our voices to the industry—and Sacramento listened. Our voices (many from our chapter) joined as one, leading to success, as evidenced

by Governor Brown signing AB 2273 into law on September 7, 2012. The law as amended will require recordation of foreclosure within 30 days of the sale of property within a common interest development. Moreover, the foreclosing parties must mail notice to the association within 15 days following the date of the trustee’s sale, provided the association has recorded a request for notification pursuant to amended Civil Code Section 2924(b). This allows the association to gain almost immediate notice of the identity of the new owner, allowing it to promptly levy assessments. Under existing law, this process can take years!

Since we are clearly better working together towards a common goal, please join us for our annual CAI Legal Forum: California Communities on October 19, 2012 in Temecula. This day-long legal forum will bring together outstanding individuals from across the industry to facilitate education and understanding of the issues faced daily by community managers and homeowner volunteer leaders. Sessions will be led by government and industry experts, including members of our great chapter. To learn more about the State Legal Forum, or to register online, please visit www.caionline.org/events/ CALaw. Let’s continue to strive toward industry excellence.

Because together, we are better.

Very truly yours, � Jeffrey A. Beaumont, Esq. 2012 Chapter President

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.

Cost: Cost: $80/Member; $100/Non-member $80/Member; $100/Non-member Next Class: Next Class: April 14, 2012 November 10, 2012

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Course fee includes course course materials, materials,continental continentalbreakfast breakfastand andlunch. lunch. Workshops Workshops are are held on Saturdays.

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CAI-Greater Los Angeles Chapter

To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.

September/October 2012 | www.cai-glac.org

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For Board Members: Ways To Promote Volunteerism

By Alexandria Spargo, CMCA®

A

s a portfolio manager for 20 associations in the Los Angeles area, I am often asked, “How do we get more people to volunteer for the board?” This question is usually asked in exasperation by worn out board members. In many associations the same people volunteer over and over and over again. In some instances this is because the homeowner truly enjoys it.

More often it is because they feel if they don’t do it, no one will. Board members who serve for long periods of time often get burnt out and need a break. How do you get new people to step up to the plate and volunteer? Here are a few ideas.

LIFT THE VEIL Many homeowners who are not actively involved in the community have no clue about what the board of directors actually does. They know the basics: The board sends violation letters about your barking dog; they increase the assessments; they make sure the lawn gets mowed.

However, homeowners do not really understand the details. I recently went through my CAI course materials and compiled a list of basic duties for each director position. This brief description is mailed to all the homeowners with the nomination forms. Homeowners are more likely to volunteer if they have a clear understanding of the duties and

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expectations associated with serving on the board.

OFFER AN OLIVE BRANCH TO “PROBLEM HOMEOWNERS” Every homeowners association has at least one “problem owner” who questions everything, quotes Civil Code (sometimes correctly) and just generally gripes. As crazy as it sounds, try to get these people to run for the board! In my experience, most of these “problem owners” simply do not understand enough about the process.

They do not understand why their architectural request isn’t resolved overnight or why they cannot have an eighteen-foot satellite dish nailed to the roof. Persuading them to run for the board can do two important things: 1) help them understand the complexity of the decisions the board makes, and 2) add some fresh blood and perspective to the mix.

GIVE RECOGNITION FOR A JOB WELL DONE Next time you create your budget, allocate some funds for a community party. At this party, set aside some time to talk about all the board has accomplished that year. A little public recognition can go a long way. Praising

www.cai-glac.org | September/October 2012

the board in front of their neighbors and peers can help the other homeowners recognize all the hard work the board puts in and, if not make them want to volunteer themselves, at least promote some appreciation!

MAKE A GOOD FIRST IMPRESSION Ask most homeowners about their first interaction with the board of directors and they’ll tell you it came in the form of a violation letter. Make a better first impression by putting together a welcoming committee. If putting together a committee is too formal for your association, take it upon yourself as a board member to say hello to the new neighbor and explain a little about your community. Remember, each homeowner is a potential volunteer.

As always, work with your manager to come up with ways to promote and implement volunteerism. If you have any good ideas, or if your community has an innovative way of recruiting volunteers, I would love to hear about them. E-mail me at alexandria@ mpimail.net.

Alexandria Spargo is a community manager at Management Professionals, Inc. She can be reached at alexandria@mpimail.net.

CAI-Greater Los Angeles Chapter

CAI Membership Benefits for the HOA Volunteer Leader

CAI

is committed to helping volunteers enrich their communities. With membership in CAI, you also get the benefits of the Center for Community Association Volunteers (CCAV). Through this specialized member group, you can learn about innovations in other communities, access time and moneysaving tools and information and have a forum to share knowledge.

CREATE A CULTURE OF KNOWLEDGE. While joining CAI on your own is important, getting your entire board connected to CAI is the best way to ensure you are making informed decisions—and an excellent way to help your board members achieve the results, respect and recognition they deserve.

Your community will be better served if board members come to your deliberations with the same knowledge, information and perspective. CAI membership for each board member is the ideal way to provide support and resources to each dedicated volunteer, and build consensus on critical governance issues.

HERE ARE THE SERVICES YOU’LL RECEIVE AS A CAI MEMBER:

■■ Board Member Tool Kit—A “howto” kit filled with tools, knowledge and information that help you do a better job and make it easy to serve in your role as a community association leader.

■■ Online tools and resources— available 24 hours a day—including: zz Downloadable standardized templates, sample notices, letters and forms that can be adapted for use in virtually any community. zz Governance questions and answers —Find out specific information related to governance issues (meetings, statutes, assessments and more) in your state.

CAI-Greater Los Angeles Chapter

zz An extensive Research Library containing thousands of articles for reference.

antagonists at meetings, dealing with renegade board members and so much more.

zz A Discussion Board where you can find out how your peers are dealing with similar issues.

■■ Fast Tracks—A CAI member newsletter delivered monthly to your in-box with industry and CAI news that will keep you up to date on the latest resources to help you better run your community.

zz Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members. zz HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents.

■■ Finding the Right Professional— Whether you are looking for professional community managers, legal advice, a reserve study, technology, bank loans, an audit, or insurance coverage, CAI is your portal to the professionals who serve community associations. Go to www.cai-glac.org for a list of local service providers dedicated to this industry.

■■ Common Ground—An awardwinning, bimonthly national magazine offering information on topical issues affecting you and your association.

■■ Focus Newsmagazine—An awardwinning, bi-monthly local chapter magazine offering information on topical issues affecting you and your association.

■■ Publications—Receive substantial discounts on more than 100 titles on a variety of topics, such as drafting and obtaining compliance with reasonable rules, evaluating reserves, hiring the right professionals and more in our Bookstore.

■■ Minutes—A CCAV Governance Newsletter—delivered bimonthly to your in-box with strategies, trends, and news on how to run better board meetings, tips on dealing with

■■ Local Seminars and Educational Expos— Our local chapter offers regular education programs geared toward community leaders.

■■ Essentials of Community Association Leadership Workshops—The Greater Los Angeles Chapter is proud to offer its popular 8-hour HOA new board member orientation workshop facilitated by industry experts six times per year at various locations through Los Angeles County. This workshop ($80 members, $100 nonmembers) is approved by the California Department of Real Estate as a proper use of association funds. It includes modules on fiduciary duty, rule enforcement, reserves, insurance, finance, maintenance and board meetings.

■■ Advocacy Center—An online resource where you can find your representatives, take part in calls to action that will help protect your interests, and read about the latest bills before Congress.

■■ Member Discount Programs— Take advantage of our CAI Member Discount Programs. CAI members receive exclusive discounted rates on a wide array of products and services from participating companies including Dell, DHL, Hertz, and more.

■■ CAI Direct Use our toll-free number (888-224-4321) to get quick and free assistance from our exceptional customer care specialists who can point you toward the right resources for your particular interests.

September/October 2012 | www.cai-glac.org

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Rights and Responsibilities PRINCIPLES FOR HOMEOWNERS & COMMUNITY LEADERS

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ORE than a destination at the end of the day, a community is a place you want to call home and where you feel at home. There is a difference between living in a community and being part of that community. Being part of a community means sharing with your neighbors a common desire to promote harmony and contentment.

This goal is best achieved when homeowners, non-owner residents and association leaders recognize and accept their rights and responsibilities.

In all cases, this entails striking a reasonable, logical balance between the preferences of individual homeowners and the best interests of the community as a whole. It is with this challenge in mind that Community Associations Institute (CAI) developed Rights and Responsibilities for Better Communities.

Community associations exist because they offer choices, lifestyles, amenities and efficiencies that people value. Yet, with all of their inherent advantages, community associations face complicated issues, none more common than the challenge of balancing the rights of the individual homeowner with those of the community at large.

Managing this critical and delicate balance is often the essence of effective community leadership.

By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership. In the process, we make life better for the more than 60 million Americans who live in community associations.

LET RIGHTS AND RESPONSIBILITIES HELP YOUR COMMUNITY The process of formally adopting Rights and Responsibilities will give

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communities an excellent opportunity for the kind of dialogue that facilitates awareness, builds consensus, and promotes greater community involvement.

Once adopted, Rights and Responsibilities will serve as an important guidepost for all those involved in the community— board and committee members, managers, homeowners and non-owner residents. The document will also serve as an excellent tool to educate new homeowners and residents about their own rights and responsibilities.

As greater numbers of associations adopt Rights and Responsibilities—and adhere to its principles—there will be less potential for conflict within communities.

Ultimately, this will improve the image of managed communities across the nation, leading more people to understand the nature and value of community association living.

Adopting Rights and Responsibilities can also create positive publicity for your community—and reduce the kind of negative publicity often created by conflict.

HOW YOU CAN MAKE IT HAPPEN Adopting Rights and Responsibilities for Better Communities is easy!

■■ Download the Rights and Responsibilities document (PDF) from our chapter Website at www.cai-glac.org under the For Homeowners section.

■■ Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered.

■■ Explain why this is important to your community and the benefits it can create.

■■ Review and discuss the merits of the principles at an open meeting of your board.

■■ Solicit input from homeowners.

www.cai-glac.org | September/October 2012

■■ Have your board vote to adopt a resolution endorsing Rights and Responsibilities for Better Communities. The principles will be more meaningful to homeowners and community leaders if they are formally adopted.

ANNOUNCE YOUR COMMITMENT Once you have adopted Rights and Responsibilities, please share the good news with CAI by completing the simple online adoption form at the CAI National Website www.caionline.org.

That way we know you have joined other community associations realizing the benefits of enlightened governance and involved and engaged residents.

Like any endeavor involving people, community living cannot be free of conflict. Utopia does not exist. With all of their inherent advantages—and there are many—community associations often face difficult issues. While adopting Rights and Responsibilities will not eliminate all conflict, its adoption can stimulate communication, promote trust and cooperation, clarify expectations and build a greater sense of community. CAI urges you to take advantage of this opportunity.

Rights and Responsibilities was developed as an ideal standard to which communities could aspire, a goal-based statement of principles designed to foster harmonious, vibrant, responsive and competent community associations. The principles were not designed to be in complete harmony with existing laws and regulations in 50 states, and in no way are they intended to subsume existing statutes.

Where there are inconsistencies, community associations should adhere to the spirit and letter of all applicable laws. If you have a question, we suggest you consult with your attorney.

CAI-Greater Los Angeles Chapter

C O M M U N I T Y A S S O C I AT I O N S I N S T I T U T E

Rights and Responsibilities for Better Communities Principles for Homeowners and Community Leaders Homeowners Have the Right To: 1. A responsive and competent community association.

2. Honest, fair and respectful treatment by community leaders and managers.

3. Participate in governing the community association by attending meetings, serving on committees and standing for election.

4. Access appropriate association books and records.

5. Prudent expenditure of fees and other assessments.

6. Live in a community where the property is maintained according to established standards.

7. Fair treatment regarding financial and other association obligations, including the opportunity to discuss payment plans and options with the association before foreclosure is initiated.

8. Receive all documents that address rules and regulations governing the community association—if not prior to purchase and settlement by a real estate agent or attorney, then upon joining the community.

9. Appeal to appropriate community leaders those decisions affecting non-routine financial responsibilities or property rights.

Homeowners Have the Responsibility To: 1.

2.

3.

4.

5.

6.

Read and comply with the governing documents of the community.

Maintain their property according to established standards.

Treat association leaders honestly and with respect.

Vote in community elections and on other issues.

Pay association assessments and charges on time.

Contact association leaders or managers, if necessary, to discuss financial obligations and alternative payment arrangements.

7. Request reconsideration of material decisions that personally affect them.

8. Provide current contact information to association leaders or managers to help ensure they receive information from the community.

9. Ensure that those who reside on their property (e.g., tenants, relatives, friends) adhere to all rules and regulations.

Community Leaders Have the Right To: 1. Expect owners and non-owner residents to meet their financial obligations to the community.

2. Expect residents to know and comply with the rules and regulations of the community and to stay informed by reading materials provided by the association.

3. Respectful and honest treatment from residents.

4. Conduct meetings in a positive and constructive atmosphere.

5. Receive support and constructive input from owners and nonowner residents.

6. Personal privacy at home and during leisure time in the community.

7. Take advantage of educational opportunities (e.g., publications, training workshops) that are directly related to their responsibilities, and as approved by the association.

Community Leaders Have the Responsibility To: 1. Fulfill their fiduciary duties to the community and exercise discretion in a manner they reasonably believe to be in the best interests of the community.

2. Exercise sound business judgment and follow established management practices.

3. Balance the needs and obligations of the community as a whole with those of individual homeowners and residents.

4. Understand the association’s governing documents and become educated with respect to applicable state and local laws, and to manage the community association accordingly.

5. Establish committees or use other methods to obtain input from owners and non-owner residents.

6. Conduct open, fair and well-publicized elections.

7. Welcome and educate new members of the community—owners and non-owner residents alike.

8. Encourage input from residents on issues affecting them personally and the community as a whole.

9. Encourage events that foster neighborliness and a sense of community.

10. Conduct business in a transparent manner when feasible and appropriate.

11. Allow homeowners access to appropriate community records, when requested.

12. Collect all monies due from owners and non-owner residents.

13. Devise appropriate and reasonable arrangements, when needed and as feasible, to facilitate the ability of individual homeowners to meet their financial obligations to the community.

14. Provide a process residents can use to appeal decisions affecting their non-routine financial responsibilities or property rights— where permitted by law and the association’s governing documents.

15. Initiate foreclosure proceedings only as a measure of last resort.

16. Make covenants, conditions and restrictions as understandable as possible, adding clarifying “lay” language or supplementary materials when drafting or revising the documents.

17. Provide complete and timely disclosure of personal and financial conflicts of interest related to the actions of community leaders, e.g., officers, the board and committees. (Community associations may want to develop a code of ethics.)

Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, responsive, competent community associations. Founded in 1973, CAI represents association-governed communities, such as condominium and homeowner associations, cooperatives, and planned communities. To learn more about CAI and its local, regional and state chapters, visit www.caionline.org or call (888) 224-4321.

Sponsored by CAI’s President’s Club

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

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What’s Your Fraud IQ? ▶▶▶By Lisa Ann Rea, AMS, CMCA afeguarding the funds of associations is a critical role for association boards and community management companies entrusted to handle a community’s assets.

Those hired or elected for this key responsibility have the daunting task of developing and implementing controls designed to keep their association’s money secure.

S

Businesses and organizations of all sizes are targeted by professional cyber criminals and embezzlement schemes perpetrated by those with access to the financial information of the entity; however, criminals recognize small companies and organizations tend to be more vulnerable due to limited resources. It is important for small organizations, such as association boards and management companies to recognize the inherent risk they face due to fewer resources. There are easy, low cost ways for associations and management companies to avoid money being misappropriated from an association.

AVOIDING EMBEZZLEMENT Experts recommend companies and organizations review financial records and bank statements on a monthly basis. It is essential to develop processes and procedures requiring the involvement of more than one individual. It can be as simple as assigning one person to write checks, another to reconcile bank records and financials, and a third person to review invoices to determine if the payment amount and recipient can be validated. Keeping the checkbook or check stock in the possession of someone other than the check signer is another suggested control designed to minimize risk.

Spyware can be difficult to detect and remove because it may not degrade the performance of your system. It may not appear as a running program in the Task Manager, and it either may not include a removal option, or may not remove all components when removal is initiated.

Experts suggest that all computer users install adequate protection programs on your computer system, including firewalls, anti-virus and anti-spyware software. It is imperative that these programs be updated regularly, as new malware appears and is disseminated daily. Adjusting the browser settings to prompt the user whenever a website tries to install a program or Active-X control is a great tip to lessens the likelihood of a computer takeover.

The FDIC Web site (www.fdic.gov) offers a wealth of information on this and related topics. The FDIC has also produced an excellent video directed at consumers which is available on YouTube. Search “Don’t be an Online Victim.”

While no method is foolproof, the diligent implementation of risk based controls by those entrusted to manage an association’s funds is a key step in avoiding losses. Regular audits, consisting of procedures that will prevent or identify inaccurate, incomplete, or unauthorized transactions will help safeguard an association’s assets.

I have been asked by an insurance agent to remind board members and managers to contact their insurance carriers for information on specific coverage for cyber theft/crime. This is typically an added rider at a reasonable cost… certainly worth it in the event the worst happens.

Lisa Ann Rea is a vice president at Mutual of Omaha Bank/CondoCerts. She can be reached at lisa.rea@MutualofOmahaBank.com.

Board members are advised to request online view access to their bank accounts with their financial institution to validate the transactions posting to their bank accounts. Regular reconcilement of bank account activity and the association’s financials, along with the separation of duties is a low cost and effective method to reduce the likelihood of embezzlement.

AVOIDING CYBER CRIME Cyber crime occurs when the victim’s computer is the tool used in a theft. Experts advise all those responsible for an organization’s computers establish and maintain controls to restrict users from downloading software from the Internet. It is highly recommended that computer users not open e-mails or attachments or click links.

Community Association Loans

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ABOUT

FHA APPROVAL

BY NATALIE STEWART ■ IN 2010, THE FHA MADE SIGNIFICANT CHANGES TO THE WAY THEY APPROACH INSURING MORTGAGES FOR LOANS MADE TO PURCHASE CONDOMINIUMS. PRIOR TO THIS DATE, CONDOMINIUM COMMUNITIES WERE GIVEN AN “FHA APPROVAL” STATUS THAT NEVER EXPIRED. IF A COMPLEX WAS NOT APPROVED, LENDERS WERE ABLE TO “SPOT APPROVE” SINGLE UNITS WITHIN IT. FHA FINANCING, AND REVERSE MORTGAGES WERE AVAILABLE TO ANY UNIT THAT WAS APPROVED USING THESE METHODS. IN 2010, THE FHA CREATED A NEW, STRICTER SET OF GUIDELINES FOR CONDOMINIUM COMMUNITIES THAT ARE NOW IN EFFECT. ONCE APPROVED, A COMMUNITY WILL HAVE AN EXPIRATION DATE TWO YEARS FROM THE DATE OF APPROVAL. AT THAT POINT THE COMMUNITY MUST REAPPLY WITH THE FHA.

MAJOR ISSUES AFFECTING APPROVAL When discussing the FHA guidelines, community managers are typically aware of the major eligibility requirements.

Delinquency rates and owner occupancy limits typically come to mind. And while those requirements are very important, there are other issues that can be more challenging to overcome.

These are issues within the governing documents themselves.

Anyone who has tried to restate and re-record a section of CC&Rs will know how challenging it can be. The meetings, mailings, voting requirements, and not to mention the attorney’s fees, can be costly and time consuming. Unfortunately for many communities, their governing documents may preclude them from ever achieving FHA approval, unless properly amended and re-recorded. Here are examples:

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LEASING RESTRICTIONS: The FHA does NOT allow for the following leasing restrictions within the CC&Rs: • The condominium association may not prohibit leasing altogether.

• T he condominium association may not require that a prospective tenant be approved by the condominium association and/or its agent(s), including but not limited to meeting creditworthy standards.

• Leasing restrictions that allow for a rental period of less than 30 days.

• Leasing restriction that includes an age restriction.

At first glance, you might think your community is okay.

And even if these restrictions are in the CC&Rs the board of directors does not enforce them, so it should be fine… Right?

Wrong! The FHA will not budge on these. The only way to remedy this situation would be to amend the CC&Rs and modify the leasing restriction to meet the FHA’s criteria.

Age Restrictions The FHA will not approve a community with an age restriction.

Senior communities are permitted; however, the CC&Rs must state that the community is intended for age 55 plus. Simply stating “Adult Community” is not sufficient, and prohibiting children or people under a specified age will prevent a community from achieving FHA approval. The FHA believes that these types of restrictions are clear violations of Fair Housing laws, and they will need to be officially amended and re-recorded.

Live/Work Units and Mixed-Use Developments: The conditions set forth for live/work units and mixed-use properties have prevented many communities from becoming FHA-approved.

The main reason involves the following requirements: • T he condominium declaration must state that the non-residential (work) space may not exceed 25% of the unit’s total floor area.

• The work space may not exceed 25% of the project’s total floor area.

Although many condominiums meet the 25% requirements, it is rare to find this stated in the governing documents. All live/ work or mixed-use developments must have the above verbiage within their CC&Rs or must amend them accordingly. There are currently rumors of changes regarding these requirements, but we have yet to see them.

Affordable Housing Condominium associations with affordable housing units must also meet specific requirements. Having affordable housing units does not ruin your chances of obtaining FHA approval, but the following requirements have to be met: • The government or eligible nonprofit program restriction meets the exceptions defined in 24 CFR 203.41(c) and (d); or • T he recorded condominium declarations contain the affordable housing program requirements, including defining the specific units that are covered under the program.

Affordable housing restrictions are very common, although the specific units are not always called out in the CC&Rs. Often the CC&Rs read that a certain percentage of the units must be sold as affordable housing units. If the units are not defined within the recorded condominium declarations, an amendment to the legal documents must be prepared and recorded. Another option is to record an executed (signed and dated) document identifying the affordable units issued by the Affordable Housing Program’s staff.

Summary Communities are often unaware that their CC&Rs contain some of these restrictions. In many cases the governing documents were created more than 40 years ago and contain outdated information. The FHA does not allow for shortcuts.

Board resolutions and letters from attorneys are not sufficient.

The documents must be amended and recorded.

Knowing the FHA guidelines and how they relate to a community’s governing documents is an important aspect of the FHA approval process. Many HOAs enter into contracts, raise fidelity bonds, write off delinquent accounts, and spend association funds just to find out they will be rejected based on their governing documents.

Amending the governing documents is a big decision for a community, and the process takes many months and considerable funds.

If you manage any condominium associations, it is highly recommended to have your communities prequalified for FHA approval.

Natalie Stewart is the president of FHA Review, which is a division of Association Vendor Solutions. She has been involved in the HOA industry for over 10 years and can be reached at natalie@fhareview.com.

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

11

NEWS

FROM SACRAMENTO

History of CLAC Series INTERVIEW WITH DICK FIORE — CLAC CHAIR FROM 1991-1994 How did you first get involved with the California Legislative Action Committee?

In the early 1980’s interest developed in providing legislative advocacy for CAI’s members in California. This was due, in part, to the California Association of Realtors introducing a bill in the legislature that would have required all association property managers to be licensed as real estate brokers. CAI was strongly opposed, as the skill set for being a realtor and being a property or association manager were quite different, and CAI did not feel a real estate licensing requirement would ultimately serve its members. However, no organizational structure existed to

respond to that bill as a unified front. Informally, leaders of CAI in California went to Sacramento to oppose the bill, and were successful - the bill did not pass. In this process it became apparent that while the legislators were aware of HOAs, it was usually from a negative perspective —the perceived problems and ills of community associations. In the mid 1980’s, CAI leaders in California decided to organize a group that could be more cohesive in responding to legislation introduced in the California legislature. They met in the San Fernando Valley to discuss the formation of an organization that ultimately became the CAI California Legislative Action Committee (CLAC). Its initial organizational structure remains largely in place today, with two delegates from each chapter and additional at-large delegates. Though not yet very active in CAI, I attended the organizational meeting, and later became a delegate.

California formed CAI’s first Legislative Action Committee. An initial role of the committee was to educate legislators about community associations – especially the benefits. We offered ourselves as a resource. We were not in a position at the time to propose legislation, but were able to have some input on pending legislation. The delegates would go to Sacramento annually and walk the halls and talk to legislators. Term limits had not yet been enacted, so many of the legislators had been there for years (some on the all-important Housing Committee). CLAC began to make an impact with these annual visits as well as communications with legislators in the interim.

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CAI National was originally not sure how to react or interact with CLAC. Initially, CAI National gave CLAC an annual $3,000 stipend which was used to retain a firm in Sacramento to provide administrative services – organizing monthly telephonic meetings, preparing written agendas, arranging for a room for our meetings in Sacramento, etc., which helped CLAC to become more organized.

What made this organization something that you considered valuable enough to spend your time and energy on?

As a lawyer interested in the legal process, I found that, of the various opportunities for involvement in CAI, legislation was the one that interested me the most, and the one where I felt I could make the most significant contribution. I also enjoyed working with other leaders in CAI – some of whom were members of CLAC and leaders in their chapters.

My firm began the practice of community association law in the 1970’s. I found I really enjoyed being involved in an industry that included a variety of people from various occupations, not just lawyers. I liked the environment and the industry. CAI was the only formal organization at the time promoting the growth of the community association industry as a whole, and I felt it was a good organization to participate in as it focused on education and programs designed to enable all its members to improve their own skills and better serve their clients.

CAI-Greater Los Angeles Chapter

What were your “dreams” for the organization at that point?

As CLAC’s Chair, I had an overall goal to “beef up” the finances and organizational structure of CLAC. We prepared a position paper and presented it to CAI National in 1991, which proposed that each member of CAI in California contribute $15 per year to support CLAC and legislative action, and that, if CLAC could receive $15 per member, it would not need the $3,000 annual stipend from CAI National. The proposal was approved by the Board of Trustees so we were able to develop additional funding for CLAC and its legislative activities in Sacramento.

Realizing that we needed a stronger administrative staff, as well as someone who could provide advocacy in Sacramento, we prepared an RFP and sent it to several administrative and advocacy firms in Sacramento. Skip Daum, CLAC’s current advocate, was one of those who received and responded to the request for proposal.

Many things in Skip’s initial proposal appealed to us: cost, availability, and how interested and excited Skip was about CAI and CLAC on paper. I interviewed Skip in San Francisco at a CAI law conference and felt that he could provide the administrative services that CLAC needed as well as be an effective advocate for CLAC. Skip saw CLAC as a client that had the opportunity for long-term growth and purpose. He made us feel like we were not just another client.

CONTINUED ON PAGE 14

September/October 2012 | www.cai-glac.org

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NEWS FROM SACRAMENTO: Interview with Dick Fiore CONTINUED FROM PAGE 13

Skip helped to provide input on pending legislation while CLAC committee members were spread out over the state. He provided organization in grassroots letter-writing and getting the word out to California’s CAI members. Skip also helped with marketing CLAC to legislators by pointing out that HOAs represented six million homeowners… who vote!

Which of those dreams were easier to fulfill than others? Why? Once we obtained approval of the $15 per member contribution from CAI National to fund CLAC, and Skip Daum came on board, we were able to improve our finances, organization, marketing, and communication with legislators regarding community associations, and our goal of being an effective resource to legislators became much more of a reality.

Without membership funding and Skip’s support, those things would have been much harder to accomplish.

Which of those dreams were harder to fulfill than others? Why? A challenge we had at the outset was getting CAI National to recognize the importance of legislative action at the state level. While CAI National, through its Public Policy Committee and Board of Trustees, had adopted and published public policies, it really had no effective structure in place to pursue those policies at the state level. Today, legislative action at the state level is a cornerstone of what CAI offers its members across the country.

programs for CAI members at the Legislative Day at the Capitol, are part of what we had hoped would come from CLAC’s growth and increasing importance in CAI and in Sacramento.

What is the one main thing you think will help this organization move forward from where it is today, and continue to be a strong voice for homeowners, managers and business partners in the community association industry?

I think CLAC will benefit by working together with other organizations as much as possible. Maintaining open communication is important to building partnerships that can make a difference in Sacramento.

Looking back and forward, I can truly say: CLAC is effective – it should continue to do what it is doing.

Richard Fiore is the president, founder and managing director of Fiore Racobs & Powers law firm, specializing in providing legal services to community associations. He can be reached at rfiore@fiorelaw.com.

Another challenge early on was to convince each of the eight California CAI chapters to approve the $15 per member per year CLAC contribution, which National required before it would give its approval.

A challenge that will probably always exist is that it is harder to have the “ear” of legislators in Sacramento because CAI and CLAC do not contribute to their campaigns. Early on, CLAC provided information and educational material to legislators about homeowners associations, but it was not as easy to get them to turn to CLAC for counsel on pending legislation as it would have been if it had contributed to their campaigns.

With the development of CLAC’s stature and presence in Sacramento over time, this has become less of a challenge in recent years.

How has the path diverged from your previous vision? Why do you think it changed course?

It hasn’t really diverged… it has merely expanded along the path I had pretty much envisioned. CLAC activities that have been added in more recent years, like the educational

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CAI-Greater Los Angeles Chapter

OUR THANKS TO 2012 CLAC CONTRIBUTORS JANUARY 1 – AUGUST 31, 2012

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15

Construction Defect Litigation Has Reached Its Pinnacle – And Now Moves To Arbitration By Dennis L. Althouse, Esq.

W

ith its recent decision in Pinnacle Museum Tower Association v. Pinnacle Market Development (US) LLC, et al. (2012 WL 3516134), the California Supreme Court has decisively moved the forum of construction defect litigation from civil courtrooms to the relatively unknown world of binding arbitration and private arbitrators.

Before Pinnacle, associations seeking redress for construction defects had been able to pursue those claims in civil courtrooms, regardless of the provisions calling for binding arbitration in CC&Rs and purchase agreements. This was true UBM207_May1_LA_FocusNews_7.5 X 4.75_4C

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CAI-Greater Los Angeles Chapter

despite the fact that developers had been trying for years to move such claims to binding arbitration by placing irrevocable binding arbitration provisions in CC&Rs and purchase agreements. Prior to Pinnacle, these efforts had uniformly failed. (See, Villa Milano Homeowners Assn. v. Il Davorge (2000), 84 Cal.App.4th 819) In Pinnacle, the Supreme Court held that binding arbitration provisions within CC&Rs are enforceable against associations, thereby disapproving Villa Milano. In reaching its decision, the Court decided that an association, although not yet formed and, once formed, completely under the control of the developer, can consent to waive its right to a jury trial and agree to binding arbitration of construction defect disputes.

In reaching its decision, the Supreme Court looked at three major issues: 1) the rules governing compelled arbitration of claims; 2) the principles relating to the contractual nature of CC&Rs recorded pursuant to the Davis-Stirling Act; and 3) the doctrine of unconscionability. We look at each briefly in turn.

1. The Rules Governing Compelled Arbitration.

The CC&Rs in Pinnacle stated that construction disputes were to be resolved by binding arbitration pursuant to the CONTINUED ON PAGE 16

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

17

Construction Defect Litigation Has Reached Its Pinnacle…

CONTINUED FROM PAGE 17

Federal Arbitration Act (“FAA”; 9 U.S. C. §1 et seq.) and the California Arbitration Act. (“CAA”; Code of Civil Procedure § 1280, et seq.) Since the FAA applies in any instance involving interstate commerce, and given the liberal policy favoring arbitration, exceptions from FAA are rare. Added to this is the FAA’s pre-emption of state laws which discriminate against arbitration. With the latter in mind, the Supreme Court also ruled out the application of Code of Civil Procedure § 1298.7, which excludes construction defect claims from arbitration in real estate contract arbitration. Thus, the Court decided that the principles of general contract law would determine whether the binding arbitration provision was enforceable.

2. The Contractual Nature of CC&Rs. In reviewing CC&Rs, the Court distinguished between what is required to be included in CC&Rs and what could be. In drawing this distinction, the Court noted that that a developer may include “any other matters the original signator of the declaration [e.g., the developer] or the owners consider appropriate.” (Civil Code § 1353 (b).; Cal.Code Regs., tit. 10, § 2792.8 (a).) In other words, if developers want something in CC&Rs, as long as it is not unreasonable, it is enforceable.

Here, the Court leaned heavily on the theory that owners had expectations, derived from the CC&Rs, that any construction defect dispute would be arbitrated. Giving force to arbitration clauses, it reasoned, protects owners’ expectations, the community as a whole and the developer.

In light of these expectations, the Court held the terms in the CC&Rs reflected written promises and agreements that are enforceable against the association.

3. Contractual Unconscionability.

The closing analysis addresses whether an arbitration provision may be unenforceable due to contractual unconscioniability. In California, there are two kinds of contractual unconscionability — procedural and substantive.

Procedural unconsionability concerns the circumstances of contract negotiation and formation, focusing on oppression or surprise due to uneven bargaining power. (See Armendariz v.

Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 114.) Substantive unconscionability concerns the fairness of the actual terms of the agreement and whether they are overly harsh or one-sided. (Armendariz at 114.) However, to be deemed substantively unconscionable, the term must be “so one-sided as to ‘shock the conscience.’” (24 Hour Fitness, Inc. v. Superior Court (1998) 66 Cal.App.4th 1199, 1213.) The party resisting arbitration has the burden of proving unconscionability.

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Here, there was no surprise and the arbitration provisions did not “shock the conscious.” Further, since the developer procedurally complied with the Davis-Stirling Act in preparing the CC&Rs, the claim of procedural unconscionability was rejected.

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If your association is more than 10 years old it means nothing as your association’s construction claims, if any, are already barred by the applicable statutes of limitations.

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The associations which will be affected most by this decision are those in the initial stages of pursuing a construction defect claim or who are considering such a claim. While the decision does not change the pre-litigation (now pre-arbitration) steps outlined in Civil Code §§ 895, et seq. or 1375, it decidedly changes the forum in which the claims will be tried and decided.

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October 3

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Skirball Cultural Center • 2701 N. Sepulveda Blvd., Los Angeles VISIT MORE THAN 80 LEADING COMPANIES DEDICATED TO SERVING THE COMMUNITY ASSOCIATION INDUSTRY (Exhibit Hall Open 5:00 to 8:30 p.m.)

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Topics and issues include: • Insurance Claims • Collecting Past Due Assessments • Enforcing Governing Documents • Disclosure and Transparency • E-mail Communication • And your questions.

To allow panelists to answer your questions to the fullest, please e-mail your questions in advance to joan@cai-glac.org.

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PEST CONTROL Accurate Termite & Pest Control Animal & Insect Pest Management, Inc. Payne Pest Management Rodent Pest Technologies, Inc.

PROMOTIONAL ITEMS Gifted…Creative Marketing Solutions RESERVE STUDIES Reserve Studies Incorporated RESERVE STUDIES, INC. Association Reserves, Inc.

SECURITY Guard-Systems, Inc. Securitas Security Services USA, Inc. Security Specialists SKY Security Services, Inc. SECURITY HARDWARE Absolute Security & Technologies, Inc. Mulholland Security Centers, Inc. WATER TREATMENT W.C. Service Company, Inc.

September/October 2012 | www.cai-glac.org

21

“Preserve and Protect” Property Maintenance By Deena Kanoff

I



n these economically-challenged times, how does a board of directors maximize its hard-earned reserve dollar? The board targets obvious problems relating to maintenance issues and fixes them. When it comes to increasing and maximizing property values, that’s a lesson any community can apply.

Here are a few places to start:

VISIBILITY

A question to ask yourself — How desirable is your community to live in?

New or potential owners are often influenced by something as tangible as good old-fashioned curb appeal, or what they see when they first look around.

The first key to strong property values is, therefore, also the most obvious: keep your focal points well-maintained!

22

www.cai-glac.org | September/October 2012

ASSESSMENTS

“You get what you pay for” The most direct correlation for a community may be between its property values and its assessment level. It’s not that people have to be convinced that a higher assessment rate always equals higher values, but rather, they usually have to be convinced that a lesser rate doesn’t equal higher values.

There’s a mindset among owners that if an assessment fee is too high, it is going to (adversely) affect the value of the units and turn away potential buyers.

In fact, whatever superficial appeal your community tries to gain from keeping its assessments too low is quickly squandered away by the damage of an underfunded budget and a reactive maintenance program that simply

CAI-Greater Los Angeles Chapter

cannot address the repair maintenance needs throughout the community.

prioritized to insure the most important issues are addressed starting with life/safety and health.

Simply stated: If you do not have enough money in your reserves to take care of maintenance issues within the community, all you do is begin to attract similar buyers in the marketplace who are interested in perpetuating the same low, depleted reserve budget. Maintenance issues become worse, and available funding becomes non-existent, which equals a very bad combination in maintaining property values.

A well-maintained property is key!

The association needs an annual “cost of living raise” in order to maintain the integrity of the components within the community. When you have an assessment rate that is realistic, the other financial objectives will fall into place: a full operating budget, necessary to maintain the building structures and repair issues within the community and common areas. It is easier to move forward with repairs when you have readily-available funding.

PLANNING

Tomorrow is a new day, but so is the “day after” In today’s economy, can you plan for property values to go up…or down?

Even with a crystal ball, you cannot determine what will be.

What you can do is implement all common area repairs that enhance property values. At the same time, work should be

There should be short-term and long-term goals set up during the project’s planning phase that identifies the remaining useful life of common area components and components that are beyond repair and should be replaced. This is the most cost-effective way to maintain the community, reduce resident complaints and maintain property values. Your property is the most valuable investment.

This well-forecasted, disciplined planning program offers greater economic return, and in turn, money in the bank.

Global planning can provide a framework of strategies and endpoints joining one board to the next, as well as stability, even when board members leave and new ones come on board.

Board members need to see the big picture and how a properly-maintained property is clearly the most economical choice in preserving their maintenance dollar!

COMMUNICATION

“Hear Ye—Hear Ye”

Assuming your board sees the big picture and your association is doing well, the important question is: “Do your residents all know what is going on in the association”? Do they know about the improvements and how maintenance dollars are being spent wisely now in order to secure the future maintenance integrity of the property?

How about prospective buyers? By nature, people don’t usually seek out good news; you have to deliver it to them!

A newsletter that features the maintenance planning and upcoming projects helps in sending a positive message. A friendly and inviting newsletter would increase the chances of a potential new buyer wanting to purchase into that particular community.

A newsletter is a great tool to review the accomplishments of the previous year, and it also helps to forecast what’s to come.

This type of “community tracking” aids the HOA in keeping the maintenance schedules up-to-date and is a way to address future needs within the community.

In today’s real estate arena, with so many properties on the market, you have to create a way to stand out from the rest and provide information of what’s going on in your community.

Whether it is capital improvement programs or full maintenance renovations that are taking place, “keeping the community involved” adds to the “emotional value” of the community and promotes a positive community experience.

Deena Kanoff is the director of business development at Jon Wayne Construction and Consulting. She can be reached at deenak@jwcconstruction.com.

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

23

Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets MAKE THE CUT WITH PROFESSIONAL PRUNING By Jimmy Griego

24

www.cai-glac.org | September/October 2012

P

rofessional pruning keeps an HOA community’s trees healthier and better looking today, and it can prevent all sorts of problems in the future. Depending on the age, size, species, condition and location of trees, a variety of pruning techniques may be utilized.

Tree care professionals should always take HOA board and manager objectives and budget into consideration before recommending any type of pruning at a community. To help managers make a more informed decision, here are some explanations of the various pruning types available.

CAI-Greater Los Angeles Chapter

CLEARANCE PRUNING: Lower limbs are elevated so that signage, structures, roadways and walkways are not blocked.

PRUNING FOR PLANT HEALTH: Diseased or pestinfested branches are removed to reduce pesticide use and prevent the problem from spreading to healthy parts of the tree.

PRUNING TO PROTECT STRUCTURES: Branches that rub against walls or windows are removed to prevent friction damage. This also helps to reduce pest access to buildings.

HAZARD REDUCTION PRUNING: Dead, dying, broken or hanging branches are removed to prevent them from falling and causing property damage or personal injury.

PRUNING TO PREVENT STORM DAMAGE: Selected interior branches are pruned to reduce the potential for branch breakage. This allows for better wind flow through the canopy, decreasing wind resistance.

MAINTENANCE PRUNING: Selected branches are removed to give the tree the desired shape and to promote good air movement and light distribution throughout the canopy. This also helps to control growth in limited spaces.

PROACTIVE APPROACH TO PLANT HEALTH It’s a fact: healthy trees are less likely to suffer damage from insects and diseases. To keep a property’s trees at the peak of health, consider instituting an ongoing Plant Healthcare program.

Inspections are critical to ensuring maximum plant health.

More than just a “walk-through,” Plant Healthcare inspections provide a systematic and scientific approach to safeguarding a property’s trees. The first step is to identify the tree species and varieties present in a landscape. Environmental conditions must be considered because they may be affecting trees. These include: • Soil type • Soil compaction • Watering patterns • Rainfall (or lack thereof) • Mechanical damage • Branch breakage from excessive fruiting • Damage from rodents or other animals • Evidence of previous insect or disease activity Timing makes a significant difference to determine when and what action is required. If inspections reveal a past or potential threat to tree health, prompt action can prevent CONTINUED ON PAGE 26

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

25

Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets CONTINUED FROM PAGE 25

major and potentially costly problems from occurring down the road. Recommendations should be based on the unique needs of an HOA’s specific trees. For example: • Trees at risk of branch breakage due to excessive fruit production may benefit from growth-regulating spray treatments.

• If signs of disease activity are present, a bark injection of systemic fungicide may be necessary.

Through Plant Healthcare programs, knowledgeable and experienced tree care specialists can provide quick response and equipment necessary for beautiful, healthy trees year-round.

TREE REMOVAL SERVICES In the instance when tree care professionals have exhausted every solution possible to save trees, circumstances beyond their control can sometimes lead to tree death or decline. This can cause serious liability on a property, making removal the only option.

If removal is necessary, experience is a key differentiator. Tree removal specialists should be trained how to remove trees properly and safely, without injury or damage to surrounding plants and

nearby structures. This is a difficult and dangerous operation that requires attention to detail from start to finish, including: • Clearance of the surrounding area for branches and tree trunks to fall.

• Use of ropes to guide large branches after cutting.

• Stump grinding/removal once the tree has been cut down.

• Proper and timely disposal of branches and trunk so that normal activities can resume as quickly as possible at a community.

• Full compliance with all national and local safety regulations.

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www.cai-glac.org | September/October 2012

CAI-Greater Los Angeles Chapter

PRUNE TO MAXIMIZE PALM POTENTIAL Palm health, beauty and safety can all be compromised without pruning on a regular basis. To keep a community’s palms in top shape, follow simple tree care industry best practices for pruning.

This includes focusing palm pruning efforts where new growth occurs at the large terminal bud at the top of the tree.

As new fronds develop, older (and lower) fronds dry out. Also, remove dead fronds, along with any seed stalks, fruit stalks or frond stubs. These steps result in the following: • Decrease the risk of pest or fire damage (which can increase when dead fronds are left in palms).

tailored to match the age, size, condition and location of the palms on a property.

By adhering to the tree care industry’s best practices for tree pruning, health, or removal, tree care services providers are able to make a dramatic impact on the appearance and safety of an HOA community.

Jimmy Griego is a business developer with ValleyCrest Landscape Tree Care Service. He can be reached at jgriego@valleycrest.com.

• Improve the appearance of palms and the overall landscape (some palms will retain dead fronds for years if they aren’t removed).

• Make an HOA property safer (certain palm varieties will shed old fronds, seeds and fruit, which can cause personal injury or property damage).

Palms rely on green, healthy fronds to produce food for new growth, so avoid removing them whenever possible. One exception is when healthy fronds are interfering with traffic, blocking signage or encroaching on building structures. These fronds may be removed for clearance purposes. As with any of the tree care services provided, the pruning done is custom-

WE REPRESENT COMMUNITY ASSOCIATIONS

Since 1987 we have limited our practice to providing a full range of legal services for • Condominiums • Planned Developments • Cooperatives • Homeowner Associations There is no substitute for experience! www.lawforhoas.com www.hoalawblog.com

Ventura County 805.650.7899 Orange County 949.476.3789

CAI-Greater Los Angeles Chapter

Los Angeles 310.207.2207 California 800.372.2207

September/October 2012 | www.cai-glac.org

27

Hot August Saturday, August 18, 2012

S

e im T d un ha A Fwas All! by

Wi ne

eventy CAI-GLAC Chapter members and friends attended the “Hot August Wine Night” wine tasting on August 18 in Malibu to benefit our California Legislative Action Committee (CLAC) in Sacramento. Everyone loved the casual atmosphere with great conversation, wonderful Rosenthal wines and gourmet tacos catered by Komodo. We couldn’t have done it without the generous sponsorship of those companies listed on this page. Our thanks also to the Wine Night Committee: Joanne Pena, ccam®, cmca®, ams®, pcam® (Horizon Management), Jolen Zeroski, cmca® (Union Bank) and Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP) for their planning and production. This evening’s success allowed us to send $4,026 to CLAC toward our annual contribution goal.

28

www.cai-glac.org | September/October 2012

Nightat the

Garden of the Rosenthal-Malibu Estate Wine Tasting Room

Thanks to our Sponsors CORPORATE SPONSOR

Horizon Management Company HORS D’OEUVRES SPONSORS

Data Systems Services Heritage Construction Taylor Painting and Roofing WINE BASKET SPONSOR

AMARR Studios

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

29

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Meigan Everett (Gold Coast Property Pros) and Jeanie LaCroix (BELFOR Property Restoration) delivered school supplies donated by CAI-GLAC members to Operation School Bell headquarters and helped package them for the children. Operation School Bell is a non-profit organization that provides school supplies to low-income children throughout the Los Angeles area. Each year nearly 6,000 LAUSD children ages 4-18 visit one of two Operation School Bell facilities to receive much-needed clothing, supplies, and shoes, giving them a valuable opportunity to improve school attendance and enhance their self-esteem.

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CAI-Greater Los Angeles Chapter

Great Workshop for HOA Board Members Twenty-five members of the Greater Los Angeles and Channel Island Chapters attended the Essentials Of Community Leadership Workshop on September 15 to learn about their roles as community leaders. Topics included fiduciary duty, rule enforcement, finances, insurance, maintenance and board meetings. Go to www.cai-glac.org to learn more about our educational opportunities.

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CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

31

Oct. 19, 2012 | Temecula, CA

cai

Legal

Forum california communities

a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development.

Critical updates on important legal requirements that impact how you work.

Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee

CAI LEGAL FORUM: California Communities Oct. 19, 2012 | Temecula, CA EVENT SPONSORS

EXHIBITORS

La Rocque Better Roofs, Inc. Accurate Termite & Pest Control McDonnell Roofing, Inc. Adams Kessler PLC EVENT Mutual of Omaha Bank: Community Association American Geotechnical Banking/CondoCerts McDonnell Roofing, Inc. AMS Paving, Inc. Pacific Western Bank Association Lien Services PCW Contracting Services, Inc. AT & T Connected Communities NAME BADGES Popular Association Banking ATC Assessment Collection Group Richardson Harman Ober PC Prendiville Insurance Agency Beaumont Gitlin Tashjian PrimeCo Painting & Construction Cardinal Property Management, CMF TOTE BAG Rey Insurance Services, Inc. CertaPro Painters, Ltd. Amber Property Management Richardson Harman Ober PC CommerceWest Bank, N.A. Roseman & Associates, APC Common Area Maintenance Services, Inc. Boyd & Associates SCT Reserve Consultants, Inc. Design Build Associates Professional Community Management Seacoast Commerce Bank Diversified Waterscapes, Inc. Seacoast Commerce Bank Securitas Security Services USA, Inc. DM Construction Services South Shore Building Services, Inc. Dunn-Edwards Corporation COCKTAIL RECEPTION Sunwest Bank Elliott Katzovitz Insurance Agency The Inspectors of Election Empire Painting & Construction Associa The Judge Law Firm, LLC ePipe Restoration a one-day event for california community managers, association board Epsten Grinnell & Howell APCinstitute—theThree Phase Electric NETWORKING BREAKFAST members and other homeowners from community associations Timothy Cline Insurance Agency, Inc. Fenceworks, Inc. Cardinal Property Management, CMF and professional leader in HOa education, advocacy development.

U.S. Bank Fenton Grant Mayfield Kaneda & Litt, LLP DeNichilo & on Lindsley, LLP legal requirements Fiore Racobs Powers how you work. Union Bank Critical updates important that&impact Urban Tree Care, Inc. First Bank Association Services Essential information on key legal developments that impact where HOA Elections of California, Inc. you live. Vista Paint Corporation Ivey Engineering, Inc.

cai

Legal

Forum california communities

for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

32

www.cai-glac.org September/October 2012 Hosted by CAI’s| California Chapters and CAI’s California Legislative Action Committee

CAI-Greater Los Angeles Chapter

COMMUNITY ASSOCIATIONS INSTITUTE (CAI), the world-wide leader in community association education, advocacy and professional development, invites you to a special, one-day event on key legal topics that affect every common interest community in California.

With almost 40 years of industry experience and a member network of homeowners, managers, attorneys and other business partners greater than 32,000 strong, CAI is in a unique position to deliver both a local focus and a global perspective on the issues that shape community association governance and operations.

The CAI Legal Forum offers two education programs—one for community managers and one for board members and other homeowner leaders. Sessions are presented by expert panels, including government officials, seasoned management professionals and members of CAI’s prestigious College of Community Association Lawyers (CCAL), a professional organization that represents the very best attorneys in the industry.

Anyone who lives in, works for or provides services to a California community association will leave the event more informed, more engaged and better able to contribute to a successful community.

ASK THE ATTORNEYS Get your questions answered by some of the very best association attorneys. This session offers you the opportunity to ask a panel of experts about your community’s legal issues.

NETWORKING RECEPTION Get to know your California peers. In addition to a full program of education sessions, the CAI Legal Forum ends with a networking reception to make contacts and build resources to further support your community.

COMMUNITY MANAGER & HOMEOWNER EDUCATION PROGRAM Limos, Lawyers & Ladies of the Night: Challenges to Rule Enforcement What could possibly go wrong with allowing owners to run businesses out of their homes? This session examines potential pitfalls and offers practical approaches to avoid liability.

ADRIAN J. ADAMS, ESQ., ADAMS KESSLER PLC and TIMOTHY CLINE, CIRMS, TIMOTHY CLINE INSURANCE AGENCY INC.

Take the Guesswork out of Liability and Responsibility Who is responsible for what when managing common interest developments? This session looks at the pros and cons of shifting liability and responsibility from financial and maintenance perspectives.

JAMIE HACKWITH, CMCA®, AMS®, PCAM®, AMBER PROPERTY MANAGEMENT and STEVEN A. ROSEMAN, ESQ., ROSEMAN & ASSOCIATES APC

What Mediators Wish We Knew Before Mediation Learn strategies to improve the chances of successful dispute resolution through mediation. This panel includes an attorney and a professional ma nager experienced in mediation for associations, as well as a practicing mediator who will guide you through the process.

DENNIS M. BURKE, ESQ. FIORE RACOBS & POWERS; DONNY DISBRO, PROFESSIONAL COMMUNITY MANAGEMENT and LAURA J. SNOKE, ESQ., LAW OFFICES OF LAURA J. SNOKE

CAI-Greater Los Angeles Chapter

KEYNOTE SPEAKER: CHARLES MARSHALL The Seven Powers of Success™: How to Harness, Develop and Apply Your Seven Powers to Enrich Every Area of Your Life One of the most popular humorous motivational speakers today, Charles Marshall’s animated delivery and original observations have captivated more than 1,000 audiences during the past two decades.

A nationally syndicated humor columnist, Marshall is the author of the motivational classic, Shattering the Glass Slipper, and the popular humor book, I’m Not Crazy, But I Might Be a Carrier. He has released two full-length comedy videos, Fully Animated and I’m Just Sayin’!

In his hilarious and fun-packed presentation, Marshall shows how The Seven Powers™ can enrich the life of any individual or organization. Using humor and real-life examples, he relates inspirational stories of everyday underdogs who have overcome obstacles and achieved success.

HOMEOWNER EDUCATION PROGRAM How to Avoid Recall Elections Recall efforts destroy association budgets, morale and cohesiveness.

This session presents tried-and-true methods for avoiding recall elections 90 percent of the time and offers strategies that won’t break the bank when recalls are unavoidable.

BETH A. GRIMM, ESQ.*, BETH A. GRIMM PLC and NATHAN MCGUIRE, ESQ., NEUMILLER BEARDSLEE

Governing Documents: Allies Not Foes Having an effective set of governing documents will save you time, money and headaches. This session provides a comprehensive approach to restating your governing documents, including smoking bans, assignment of rents, lease restrictions, maintenance matrices and more.

YVETTE HUFFMAN, DC PROPERTY MANAGEMENT INC.; LAURIE S. POOLE, ESQ., PETERS & FREEDMAN LLP and DEON R. STEIN, ESQ., THE LAW OFFICES OF DEON R. STEIN

COMMUNITY MANAGER EDUCATION PROGRAM Social Media for HOAs Why and how should community associations use social media?

This session takes an in-depth look at the benefits of using social media to market your association. It also offers tips and hints on how to overcome challenges and use social media most effectively.

LORI ALBERT, ALBERT MANAGEMENT CORPORATION and JAMES MCCORMICK JR., ESQ., PETERS & FREEDMAN LLP

Reasonable Accommodations Pets + People + Parking = Problems! This session helps you understand and navigate the complex laws covering discrimination claims and requests for reasonable accommodations.

JEFFREY A. BEAUMONT, ESQ., BEAUMONT GITLIN TASHJIAN; JENNIFER JACOBSEN, ESQ., BAYDALLINE & JACOBSEN LLP; MATT OBER, ESQ.*, RICHARDSON HARMAN OBER PC and BRUCE RATLIFF, ACTION PROPERTY MANAGEMENT

HUD Approvals & Recertifications: What Managers Need to Know HUD and FHA have disallowed “spot approval” for FHA loans on condominium units. Instead, an entire condominium project must be approved. This session takes you through the approval and recertification processes step by step, outlining risks and highlighting best practices.

JAMES C. HARKINS IV, ESQ., CANE, WALKER & HARKINS LLP and MICHAEL R. PERRY, ESQ., THE PERRY LAW FIRM and MANAGEMENT COMPANY

*CCAL member September/October 2012 | www.cai-glac.org

33

WELCOME

NEW CAI-GLAC MEMBERS! AS OF SEPTEMBER 15, 2012

BUSINESS PROFESSIONALS Aqua Creations FHA Review by a | v | s Reserve Study People Security Specialists, Inc. Vasin Sign Solutions Waste Management

RECRUITER CAI National Kimberly Lilley, CIRMS, CMCA® CAI National CAI National Michelle Urbina CAI National

COMMUNITY ASSOCIATIONS Santa Rosalia 71 HOA

CAI National

2012 Recruiters of the Month JANUARY

Jose Glez, CIRMS Timothy Cline Insurance Agency, Inc.

FEBRUARY

Neda Firouz, CMCA® HOA Organizers, Inc.

JUNE

Focus Salsbury Industries

MARCH

COMMUNITY MANAGERS Arbi Amirkhanian Ross Morgan & Company, Inc.

Brian Davidoff, CMCA®, AMS®

Scott Long

Kelly Richardson, Esq.

Elizabeth Orellana Rockpointe HOA

Carol Brockhouse, AMS®

Candi Kocher, CCAM® Four Seasons HOA

Steven A. Roseman, Esq. Roseman & Associates, APC

JULY

Keith Leedom, CMCA® Sky Security Services, Inc.

AUGUST

Kimberly Lilley, CIRMS, CMCA® Berg Insurance Agency, Inc.

APRIL

Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company

Runs in: MAY Mar/Apr, Jul/Aug, Nov/Dec Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company

34

www.cai-glac.org | September/October 2012

1/2 Page Horizontal

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF JUNE 30, 2012

BUSINESS PROFESSIONALS Accurate Termite & Pest Control Allana Buick & Bers, Inc. American Technologies, Inc. Animal & Insect Pest Management, Inc. Bethco Builders BuildingLink.com CommerceWest Bank. N.A. Eagle Roofing Products ENDURA Painting Corporation Ferris Painting, Inc. Gothic Grounds Management Hickey & Petchul, LLP John R. Sinner Insurance Agency, Inc. Jon Wayne Constructin & Consulting Loewenthal, Hillshafer & Carter, LLP Minuteman Parking Company National Cooperative Bank Nu Flow America Oakridge Landscape, Inc. ProTec Building Services, Inc. Reconstruction Experts, Inc. Restoration Management Company Richardson Harman Ober PC Robert W. Little Insurance Agency, Inc. S.B.S. Lien Services Sandra Macdonald Insurance Seacoast Commerce Bank Securitas Security Services USA, Inc. Slaughter & Reagan, LLP SouthData, Inc. Suntrek Industries Unified Protective Services, Inc. Van Dijk & Associates, Inc. COMMUNITY ASSOCIATIONS 4230 Stansbury Association, Inc. Beverly Hills at Doheny Keith HOA Breakers at Del Amo HOA Century Woods COA Douglas Park Townhomes HOA Frazee Paint & Wallcovering Harbor Ridge Towne Homes Assn.

Regatta Seaside HOA Renaissance HOA Tierra Verde V HOA Wilson Summit HOA

COMMUNITY MANAGEMENT COMPANIES Berro Management Campion and Company Condominium & Community Specialists, LLC Condominium Administration Co., Inc. Coro Community Management & Consulting Harris Properties Horizon Management Company Paragon Property Management Group, LLC Professional Community Management Scott Management Company COMMUNITY MANAGERS Sara Atha, CMCA® Concept Seven, LLC Ben Bar, CMCA® EHM/Association Property Management, Inc. Malcolm Bennett International Realty & Investments

Dan Nakari, CCAM®, CMCA®, AMS®, PCAM® Century Park Place Condo Assn.

Gerry Suenram, CCAM®, CMCA®, PCAM® EVO HOA

Melvin Norell, CMCA®, AMS® Hollywood Versailles Towers HOA

Ida Worth, CMCA®, AMS® Ross Morgan & Company, Inc.

Vicki Olson, AMS® Property Management Professionals, LLC

Lori Ziegler, CCAM®, PCAM® Century Woods COA

Martha Perkins Hancock Park Terrace Condo Assn.

Lance Sandman, CCAM®, CMCA®, AMS® Prado Community Association Marcie Schell, CCAM®, CMCA®, AMS® Remington Plaza HOA

COMMUNITY ASSOCIATION LEADERS Bill Harder Albert Nichols Richard Reece Mary Totten

Deborah Schneider, CMCA® Bali Management Group David Spector, CMCA® The Ritz-Carlton Residences at L.A. Live Diana Stiller, PCAM® 101 Ocean Condominiums HOA

Gail Bowman, CMCA®, AMS® Westview Towers HOA Nancy Brown Studio Village HOA Tina Crago International Tower Owners Association Donna Currie, CCAM® The Beverly West Condominiums Karen Dubose, CMCA®, AMS® Action Property Management Richard Egan CCAM®, CMCA®, AMS®, PCAM® Briarcliffe Towne Homes Association Donna Ferrell, CMCA®, AMS® CALCO Management, LLC Carol Ford, AMS®, PCAM® Catherine Gemind CMCA®, AMS®, PCAM® Valencia Management Group Danielle Glass-Hays, CCAM® Hays Management Group Nichole Hoffman, CCAM® The Churchill Condo Assn.

Lorna Leviste, CCAM®, PCAM® Promenade West OA Jonathan Mitchell Bel-Air Chalet HOA Melissa Mills Doheny Plaza Association

CAI-Greater Los Angeles Chapter

September/October 2012 | www.cai-glac.org

35

ADVERTISERS INDEX 15 Anderson Group International

2012 UPCOMING EVENTS OCTOBER 03

Homeowners Association Marketplace –4:00 p.m. – 9:00 p.m.

Skirball Cultural Center, Los Angeles

10 Educational Luncheon – 11:30 a.m.

Skirball Cultural Center, Los Angeles

12 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office

16 Long Beach Evening Program – 6:00 p.m.

AQUA 388/488 Community Associations, Long Beach

19 State Legal Forum – 8:00 a.m.

Pechanga Resort & Casino, Temecula

31 Valencia Educational Breakfast – 8:30 a.m.

Bridgeport HOA, Valencia

NOVEMBER 03 “Monsters Ball” Casino Night – 6:00 p.m.

Park Plaza Hotel, Los Angeles

07 San Gabriel Valley Evening Program – 6:00 p.m.

10 Animal & Insect Pest Management, Inc. 30 Association Reserves, Inc. 23 Cacho Landscape Maintenance Co., Inc. 25 Collins Builders, Inc. 14 Fenton Grant Mayfield Kaneda & Litt, LLP

E ssentials of Community Leadership Workshop – 8:15 a.m.

Regatta Seaside HOA, Marina del Rey

14 Educational Luncheon – 11:30 a.m.

Skirball Cultural Center, Los Angeles

16 Chapter Strategic Planning Meeting – 8:30 a.m.

Regatta Seaside HOA, Marina del Rey

27 Westside Evening Educational Program – 7:00 p.m.

Regatta Seaside HOA, Marina del Rey

DECEMBER 07 Holiday Happy Hour – 4:00 p.m.

Bel Air Crest Master Association Clubhouse, Los Angeles

14 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office

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www.cai-glac.org | September/October 2012

17 Preferred Commercial Painting 22 R.W. Stein Painting, Inc. 35 Reserve Studies Inc. 17 Richardson Harman Ober PC 9 Ross Morgan & Company, Inc. 34 Salsbury IndustriesMailboxes.com

26 Ferris Painting, Inc.

19 Sandra Mcdonald Insurance

19 First Bank Assoc. Services

13 Select Painting

36 First Bank Assoc. Services 36 Gayle G. Gould, CPA

31 Steven G. Segal Insurance Agency

18 Hi Tech Painting & Decorating

27 Swedelson & Gottlieb

8 Mutual of Omaha Bank/ CondoCerts 12 Payne Pest Management 31 PCW Contracting Services, Inc. 27 Poindexter & Company, CPAs

11 Timothy Cline Insurance Agency, Inc. 16 Union Bank 30 Witkin & Neal, Inc. 24 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

ADVERTISING INFORMATION Dimensions & Rates:

Pasadena Senior Center, Pasadena

10

26 Popular Association Banking

Artwork must not exceed the exact dimensions of that size ad.

For more information, call the Chapter office: 818-500-8636.

Ad Size

Ad Dimensions

Members

Non-Members

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$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: 818-500-8636.

CAI-Greater Los Angeles Chapter

Help BUILD CAI-GLAC And Reward Yourself by Recruiting New CAI-GLAC Members in 2012 Help BUILD And Reward Yourself by Grand Recruiting New Prize Members in 2012

3-day/2-night Weekend Getaway on the Central California Coast

RULES

GRANDContest PRIZEruns for 12 months and is The Build CAI-GLAC Recruiter designed so that current CAI members can earn valuable 3-day/2-night Weekend Getaway on the Central Californiaprizes Coastfor sharing the benefits of CAI membership with friends and colleagues.

The 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.

The following rules apply to the campaign: Members in good standing can compete to recruit new members and earn points RULES toward the Grand The following rules applyPrize. to the campaign: • Members in good standing can compete new members and earnfor points toward the To receive credit, you must be listed to as recruit the CAI member responsible Grand Prize. recruitment on the printed application form submitted, or be identified • To receive you must be listed as reports. the CAI member responsible for recruitment on throughcredit, CAI National membership the printed application form submitted, or be identified through CAI applicants National membership All completed applications and membership dues for qualified must reports. be received at CAI between January 1, 2012 and December 31, 2012.

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

THREE CONTESTS...THREE THREE CONTESTS … THREE PRIZES PRIZES

RECRUITER-OF-THE-MONTH RECRUITER-OF-THE-MONTH The month will be Themember memberwho whohas hasrecruited recruitedthe themost mostnew new memberships memberships in in the the previous previous month recognized at the next luncheon and awarded a FREE LUNCH. In the case a tie, will be recognized at the next luncheon and awarded a FREE LUNCH. In the of case of a arandom drawing will determine the winner. tie, a random drawing will determine the winner.

GRANDGRAND PRIZE ($1,000 value)value) PRIZE ($1,000 Member wilI receive receive Memberwith withthe thehighest highestnumber numberofofpoints pointsas asofofDecember December 31, 31, 2012 2012 wilI the Grand Prize.

In cases where there are two or more members with equal points, the Grand Prize. In cases where there are two or more members with equal points, those thosenames nameswill willbe beput putinto intoaabowl bowland andrandomly randomlydrawn drawn to to determine determine the winner. winner.

Pointswill willaccrue accruefrom fromJanuary January11through throughDecember December 31, 31, 2012 2012 for Points for the the Grand GrandPrize.

Prize.

Membersearn earnpoints pointsbased basedon onthe themembership membershipcategory. category.

Members • SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE. SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE. Participating members will receive: Participating members will receive:

One(1) point for each business partner member recruited in a category ★ One (1) point for each business partner member recruited in a category already existing in already existing in Directory, the 2012 Membership Directory, the 2012 Membership Two(2) points for a business partner in a sector of business not yet wo (2) pointsinfor business partner in a sector of business not yet ★ Trepresented thea Chapter, represented in the Chapter, Two(2) points for an individual HOA board member or community wo (2) points ★ Tmanager, and for an individual HOA board member or community Three(3) points forarecruiting a management manager, Three(3)and points for recruiting management company. company.

RECRUITER RAFFLE RECRUITER RAFFLE

2012 recruiters (except the Grand Prizewill winner) go into a raffle AllAll 2012 recruiters (except the Grand Prize winner) go intowill a raffle drawing helddrawing in early January (when all the2013 2012 results win anresults Evening held in2013 early January (when are all in) theto2012 areOut in)on to the winTown an ($500 value).

Evening Out on the Town ($500 value)

CURRENT SPONSORS:

Adams Kessler PLC AMARR Studios

City National Bank Concrete Hazard Solutions

DM Construction Services Scott Litman Insurance Agency

Silldorf & Levine, LLP Ronald S. Stone, CPA PhD

CAI-GLAC 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203

PRSRT STD U.S. POSTAGE

PAID

SAN BERNARDINO, CA PERMIT #1

Change Service Requested

Order Your 2012 Condominium Bluebook Today!

Price: $25.00 per copy, tax and shipping included.

Order copies online at: www.cai-glac.org.

Did You Know…

CAI-GLAC has an Adopt an HOA Program?

Is your HOA looking run down…a little tired?

Our ADOPT AN HOA program is here to help!

COMMUNITY ASSOCIATIONS INSTITUTE now has a program to help your association maintain its curb appeal in these hard times. Apply now to be considered for the first wave of projects. Project selection will depend on the type and extent of work needed, vendors available to work on the project, and the HOA’s ability to contribute financially to the project. Participating homeowners associations must be in the Los Angeles County area and a member of CAI‐Greater Los Angeles Chapter.

Examples of the types of projects being considered are paint touch ups (no scaffolding), planting, sprinkler head replacement, gate tune‐ups, power washing, changing light bulbs to energy efficient lighting, minor repairs, cleaning, etc.

Learn more about the program and download the Adopt an HOA application at www.cai‐glac.org. As part of the application CAI will be asking for 12 months of financial statements, bank statements, most recent reserve study. (All information will be kept strictly confidential and used only for purposes of determining financial need.) A CAI‐GLAC membership application can also be found on our Web site under Join CAI.