Focus L.A.’s Premier Source of Information for Community AssociationsSeptember/October 2012 Rights & Responsibilities for Better Communities About FHA Approval Preserve & Protect Property Maintenance SAVE THE DATE: Casino NovemberNight3 Get GameYourOn
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. Raf fle Monsters’BallCasinoNight November 3, 2012 Park Plaza Hotel 607 South Park View Street, Los Angeles 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. Come join them for an evening of music, dancing, dinner, gaming & raffle. Sign up now for a sponsorship and tickets www.cai-glac.org.at We’ll expectingbeyou! Potions (Happy Hour) Securitas Security Services USA, Inc. Queen of the Damned Pacific Western Bank Eerie Tunes from the Crypt Preferred Commercial Painting, Inc. Deadly Treats Shoppe Boyd & Associates ENDURA Painting Corporation Broomstick (Parking) Hi-Tech Painting & Decorating, Inc. Creep Show Photo Booth Rodent Pest Technologies, Inc. Jack of the Lantern Mutual of Omaha Bank Vinyl Concepts, Inc. Current Sponsors Tickets: $125 Per Person or $1,250 Table of 10 Formal Attire/Theme Costumes Are Encouraged Cash Prizes for Best Costumes
Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group
Pamella De Armas SAX Insurance Agency, 310-740-4274
DIRECTORS Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 Matt Davidson, CCAM® Action Property Management, 800-400-2284
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 1
EDUCATION
CHAPTER EXECUTIVE
FINANCE Jolen
2012 BOARD OF DIRECTORS
LEGISLATIVE ACTION
Sherry Branson, Kevin Davis Insurance Services
Teresa Agnew, Gifted... marketing
Daisy Vasquez, Securitas Security Services USA, Inc.
National
2012
GOLF TOURNAMENT
Gregg Lotane, CCAM®, PCAM® The Wilshire Condominiums, 310-446-5333 Robert Ridley, Esq. Castlegate HOA, 213-626-0291 Lynn WarnerRugerClub Villas HOA, 818-703-7090 David C. Swedelson, Esq. Swedelson & Gottlieb, 310-207-2207 DIRECTOR
Gregg Lotane, CCAM®, PCAM®, The Wilshire Condominiums Zeroski, CMCA®, Union Bank
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
creative
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. Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org 130 N. Brand Blvd., Ste. 305 Glendale, CA
Lynne Collmann, CMCA®, AMS®, Savoy Community Association PROGRAMS
Directory
Gitlin Tashjian MARKETPLACE Catherine Gemind, CMCA®, AMS®, PCAM® Valencia Management Group April ServproTronsonofBurbank, 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
SATELLITE
Matthew Gardner, Esq., Richardson Harman Ober PC Membership
Joan Urbaniak, MBA, CMCA® COMMITTEE
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
CHAIRS COMMUNITY OUTREACH
solutions
Web Site
Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.
PUBLICATIONS
OFFICERS Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998
Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine
Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® Concept Seven, LLC, 310-622-7012
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
91203 Office: 818-500-8636 Fax: 818-500-8638 STAY CONNECTED: 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 CAI-GLAC Membership News 32 2012 Upcoming Events 32 Advertisers Index 32 Advertising Information Save the Date: Casino NovemberNight3 On the Cover Doheny West Towers HOA Photo Courtesy of Wes Frye Photography
Stephen S. Grane, Alante/MCS Insurance Services
Lisa Tashjian, Esq., Beaumont West Landscape Maintenance
Meigan Everett, CMCA®, Power Property Management
— Sherry Branson Editor
FALL 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. Finding new board members is challenging at times for many associations. A very helpful and informative article on ways to promote volunteerism at associations and to encourage residents to sit on their boards is written by Alexandria Spargo. Protecting association assets is the focus of an article by Lisa Ann Rea, CMCA, AMS. Lisa writes about safeguarding associations from embezzlement and cyber crime, and she gives tips on what associations should be doing in their quest to protect themselves from crime. Navigating through the world of FHA mortgage regulations is a 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 needs to do to protect an association’s property values through curb appeal and maintenance Jimplanning.Griego then writes about preserving an association’s most valuable landscape asset—trees—through smart and timely pruning. Have a safe autumn and enjoy the educational seminars and Homeowners Association Marketplace. I look forward to seeing you there!
2012 SuperCAI-GLACSponsors PLATINUM 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 PaintingLandscapeUnlimited, 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. FROM THE EDITOR’S DESK NOTE CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. Get Your Game On!
2 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
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.
$80/Member;Cost: $100/Non-member Next Class: April 14, 2012
GoTBDLocation:towww.cai-glac.org for more details and registration. RegattaLocation:Seaside HOA, Marina del Rey Go to www.cai-glac.org for more details and registration.
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!
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 3
FROM THE PRESIDENT Together.Better.
Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 323.254.9526 for a Workshop schedule. The location varies - if you can guarantee 10 attendees, we’ll come to your association! Have You Just Been Elected to Your Board... Or Are Contemplating Running for a Board Seat? CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.
$80/Member;Cost: $100/Non-member Next NovemberClass:10, 2012 Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 818.500.8636 for a Workshop schedule. The location varies — if you can guarantee 10 attendees, we’ll come to your association!
To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.
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 Becauseexcellence.together, we are better. Very truly yours, � Jeffrey A. Beaumont, Esq. 2012 Chapter President “Coming together is a beginning; keeping together is progress; working together is success.” — Henry Ford
MESSAGE
I
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!
Alexandria Spargo is a community manager at Management Professionals, Inc. She can be reached alexandria@mpimail.net.at
By
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
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.
As 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.
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.
4 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
MAKE A GOOD FIRST IMPRESSION
LIFT THE VEIL
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.
For Board Members: Ways To Promote Volunteerism Alexandria Spargo, CMCA®
OFFER AN OLIVE BRANCH TO HOMEOWNERS”“PROBLEM
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 expectations associated with serving on the board.
■ Local Seminars and Educational Expos — Our local chapter offers regular education programs geared toward community leaders.
z An extensive Research Library containing thousands of articles for reference. z A Discussion Board where you can find out how your peers are dealing with similar issues.
CAIis 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.
■ 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.
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.
■ 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. Volunteer Leader
CAI Membership Benefits for the HOA
z HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents.
■ Focus Newsmagazine —An awardwinning, bi-monthly local chapter magazine offering information on topical issues affecting you and your association.
■ 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.
■ Online tools and resources available 24 hours a day—including: z Downloadable standardized templates, sample notices, letters and forms that can be adapted for use in virtually any community. z Governance questions and answers —Find out specific information related to governance issues (meetings, statutes, assessments and more) in your state.
■ 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.
■ 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.
■ Member Discount Program s— 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.
■ Minute s—A CCAV Newsletter—deliveredGovernancebimonthly to your in-box with strategies, trends, and news on how to run better board meetings, tips on dealing with antagonists at meetings, dealing with renegade board members and so much more.
■ Common Ground—An awardwinning, bimonthly national magazine offering information on topical issues affecting you and your association.
z Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members.
■ 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.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 5
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 Yourdeserve.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.
■ Explain why this is important to your community and the benefits it can create.
Adopting Rights and Responsibilities can also create positive publicity for your community—and reduce the kind of negative publicity often created by conflict.
Onceinvolvement.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.
■ Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered.
■ Review and discuss the merits of the principles at an open meeting of your board.
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.
Rights and Responsibilities PRINCIPLES FOR HOMEOWNERS & COMMUNITY LEADERS
HOW YOU CAN MAKE IT HAPPEN
ANNOUNCE COMMITMENTYOUR
Adopting Rights and Responsibilities for Better Communities is easy!
■ 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.
LET RIGHTS RESPONSIBILITIESAND HELP YOUR COMMUNITY
■ Solicit input from homeowners.
The process of formally adopting Rights and Responsibilities will give communities an excellent opportunity for the kind of dialogue that facilitates awareness, builds consensus, and promotes greater community
6 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter MORE 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.
■ Download the Rights and Responsibilities document (PDF) from our chapter Website at www.cai-glac.org under the For Homeowners section.
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.
1.Read and comply with the governing documents of the community.
6.Contact association leaders or managers, if necessary, to discuss financial obligations and alternative payment arrangements.
6. Conduct open, fair and well-publicized elections.
15.Initiate foreclosure proceedings only as a measure of last resort.
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.
1.A responsive and competent community association.
Community Leaders Have the Right To:
Homeowners Have the Right To:
5.Pay association assessments and charges on time.
4.Conduct meetings in a positive and constructive atmosphere.
Principles for Homeowners and Community Leaders
2.Honest, fair and respectful treatment by community leaders and
2.Maintain their property according to established standards.
3.Treat association leaders honestly and with respect.
ASSOCIATIONS INSTITUTE Rights and Responsibilitiesfor Better Communities
5. Prudent expenditure of fees and other assessments.
6.Live in a community where the property is maintained according to established standards.
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.
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.)
7.Take advantage of educational opportunities (e.g., publications, training workshops) that are directly related to their responsibilities, and as approved by the association.
8.Encourage input from residents on issues affecting them personally and the community as a whole.
Sponsored by CAI’s President’s Club
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.
7.Request reconsideration of material decisions that personally affect
7.Welcome and educate new members of the community—owners and non-owner residents alike.
10.Conductmunity. business in a transparent manner when feasible and
11.Allowappropriate.homeowners access to appropriate community records, when 12.Collectrequested.allmonies due from owners and non-owner residents.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 7
3.Participatemanagers. in governing the community association by attending meetings, serving on committees and standing for election.
9. Appeal to appropriate community leaders those decisions affect ing non-routine financial responsibilities or property rights.
3. Respectful and honest treatment from residents.
1.Expect owners and non-owner residents to meet their financial obligations to the community
8.Providethem.current contact information to association leaders or managers to help ensure they receive information from the community.
5. Establish committees or use other methods to obtain input from owners and non-owner residents.
Homeowners Have the Responsibility To:
3.Balance the needs and obligations of the community as a whole with those of individual homeowners and residents.
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.
4. Vote in community elections and on other issues.
5.Receive support and constructive input from owners and nonowner
9. Encourage events that foster neighborliness and a sense of com
16. Make covenants, conditions and restrictions as understandable as possible, adding clarifying “lay” language or supplementary materials when drafting or revising the documents.
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.
2. Expect residents to know and comply with the rules and regula tions of the community and to stay informed by reading materials provided by the association.
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.
4.Access appropriate association books and records.
6.Personal privacy at home and during leisure time in the community.
COMMUNITYresidents.
9.Ensure that those who reside on their property (e.g., tenants, relatives, friends) adhere to all rules and regulations.
Community Leaders Have the Responsibility To:
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.
▶▶▶By
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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.
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.
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 EMBEZZLEMENT
8 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
Safeguarding 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.
Victims of cyber crime are often targeted by the introduction of malware, including spyware, Trojan Horse programs, and keystroke loggers onto their computer system. The malware gives criminals access to a user’s computer. The malware loaded onto a computer can be received from a number of sources. It can be downloaded with other Internet downloads, called “bundling,” even in accordance with terms of a licensing agreement. It can be directly downloaded by an unsuspecting user who may perceive a benefit to the technology. Free screen savers or programs which claim to improve computer efficiency or virus scanning are often a method used by cyber criminals to introduce malware. 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 Expertsinitiated.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.
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.
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.
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.
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.”
Lisa Ann Rea is a vice president at Mutual of Omaha Bank/CondoCerts. She can be reached at lisa.rea@MutualofOmahaBank.com. Lisa Ann Rea, AMS, CMCA
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10 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter 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: Insects Bees, Wasps, Ants, Spiders Rodents Gophers, Mice, Rats, Ground Squirrels Trapping Raccoons, Coyotes, Skunks, Opossums Specialty Birds,Rabbits,Bats Call Today For a FREE Consultation 888 344 6567 Solve Your Damaging Pest Problems with Guaranteed Results. Animal & Insect Pest Management Inc., has a team of experts to help you manage all your pest problems large or small. All of our Urban Wildlife Professionals are State Certified Pesticide Applicators, extensively trained in pest identification, damage recognition, management methods and safety. In addition, our Biologist develops precision pest management programs that ensure the most humane, ecologically sound and legal methods are used to guarantee results Visit us online www.animalinsectpm.com Questions? info@animalinsectpm.com FHAAPPROVALABOUT
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:
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.
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.
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.
• The 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.
• Leasing restrictions that allow for a rental period of less than 30 days.
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?
Age Restrictions
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.
• The 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.
• The government or eligible nonprofit program restriction meets the exceptions defined in 24 CFR 203.41(c) and (d); or
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:
If you manage any condominium associations, it is highly recommended to have your communities prequalified for FHA approval.
LEASING RESTRICTIONS: The FHA does NOT allow for the following leasing restrictions within the CC&Rs:
• Leasing restriction that includes an age restriction.
• The recorded condominium declarations contain the affordable housing program requirements, including defining the specific units that are covered under the program.
• The condominium association may not prohibit leasing altogether.
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.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 11
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.
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.
12 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter The Only Choice for Your Protection 818.787.7370 fax: 818.787.7387 www.paynepestmgmt.com LOS ANGELES • SAN DIEGO • ORANGE COUNTY ReplacementDamageGuaranteeRealEstateInspections LiabilityAccurateCustomerGreatServiceInvoicing$2,000,000Insurance 877.277.3970 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.
FROM SACRAMENTO NEWS
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.
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.
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.
PAGE 14
What made this organization something that you considered valuable enough to spend your time and energy on?
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 13
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
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.
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. with Dick Fiore
Which of those dreams were harder to fulfill than others? Why?
14 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
Which of those dreams were easier 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. 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.
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!
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.
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 Capitol, are part of what we had hoped would come from CLAC’s growth and increasing importance in CAI and in Sacramento.
Looking back and forward, I can truly say: CLAC is effective – it should continue to do what it is doing.
CONTINUED FROM PAGE 13 NEWS FROM SACRAMENTO: Interview
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 15 Southern California (818) 760-4500 Email:www.goagi.comInfo@goagi.com 24-Hour Emergency Response (800) 994-7575 • Smoke, Fire, Water Mitigation • Mold, Asbestos and Lead Abatement • Sewage and Biohazard Clean Up • Reconstruction and Repair • Forensic Consulting • Emergency Preparedness & Disaster Planning • LED Lighting Conversion & Retrofits • Electric Vehicle Charging Stations California State Contractors License Number 778068 “Local Is Being There When You Need Us” 826 2nd Street HOA 1144 Seventeenth Street HOA 2050 Artesia HOA 2641 4th Street HOA 11767 Sunset Blvd. Assn. Adams Kessler PLC ALI Condo OA Bodger Park Condo HOA Bougainvillea Townhomes HOA Budlong Villas HOA Inc. Campion and Company Cardiff Court O.A. Inc. Carson Villas I HOA Casa Loma Assn. Inc. Casa de Oro Condo HOA Centinela Townhomes II HOA Century Woods Chalmers/WoosterCOAPlaza HOA Chateau Delgany Estates COA Culver Centrale HOA Del Rey Manor OA El Segundo Las Brisas HOA Inc. El Segundo Villa Capri HOA Five Ten Forty Inc. Florwood Estates HOA Inc. Galaxy HOA Gorham Park HOA Inc. Goshen Colony HOA Hacienda HOA Inc. Harbor Village OA Hayworth OA Heritage Townhomes OA Hillcrest Meadows OA Idaho Villas HOA Kelton Arms COA La Grange Townhomes HOA Las Casitas en Santa Monica HOA Lawford HOA Los Robles Condo Assn. Marine Village HOA Oak Hill Condo HOA Oak Street HOA Old Orchard I HOA Pacific Colony HOA Pacific Grove Association Pacific Sands Inc. HOA Park Crest HOA Playa Pacific HOA Polynesian S.B.S.RoxburyRancho-GlenOAHOAParkHOALienServices Seascape – Redondo HOA Inc. Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Crest HOA South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shores Mediterranean HOA Southern Oaks Society Tara Hill HOA Textile Building OA The 558 Evergreen St. HOA The Brentwood at Kiowa HOA The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Pacifica T.C. HOA Villa Serena C.A. Inc. Vista Townhomes HOA West Del Amo Pacific C.A. Westgate Townhomes COA Westside Townhomes HOA Wilshire Selby Towers East C.A. Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Yukon Townhomes I COA Yukon Townhomes II COA OUR THANKS TO 2012 CLAC CONTRIBUTORS JANUARY 1 – AUGUST 31, 2012 CURRENT CONTRIBUTION TOTAL: $16,210 GOAL: $23,295 of70%goal as of 8/31/2012
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877-839-2947 Team Leaders: Pamela Hazard,
Tower Association v.
(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 ©2012 Union Bank, N.A. To put our HOA Banking expertise to work for you, visit us at HOAbankers.com or call us Relationshiptoday.Managers:
Arbitration By
Construction Defect Litigation Has Reached Its Pinnacle And Moves To Dennis L. Althouse, Esq. Museum Pinnacle Market Development (US) LLC, et al. Beth Anama, CTP, 866-679-6764 Zeroski, CMCA®, “Sammy” Sami, CTP, CMCA®, Hill, CTP, Sales: Mickel Graham, PCAM®, Manager: Mark Reider, CMCA®,
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16 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
800-669-8659 Michelle
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 17
CONTINUED ON PAGE 16
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
18 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter 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.
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.
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.
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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.
Dennis L. Althouse, Esq., a partner with Richardson Harman Ober PC, defect,
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 19
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. So what, really, does this mean for associations? 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. 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.
has extensive experience in handling construction
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20 www.cai-glac.org | September/October 2012 CAI- Greater Los Angeles Chapter HOA BOARD MEMBER/ HOMEOWNER EDUCATION TRACK 4:00 & 7:15 p.m. Free Legal Advice Sessions for HOA Community Leaders Attorneys specializing in common interest development law will address current issues and hot topics through the ever-popular Q & A format. 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. VISIT MORE THAN 80 LEADING COMPANIES DEDICATED TO SERVING THE COMMUNITY ASSOCIATION INDUSTRY (Exhibit Hall Open 5:00 to 8:30 p.m.) SPONSORED BYCommunity AssociationsInstitute For Communities.governedAssociation-livingHomeownersManagersMembers,AssociationCommunityBoardHOAandin ($40 admission per person for General Public; no service.)tooverpermitted;solicitingmustbe18toattendduealcoholicbeverage required.Registration OnlineRegisterNow! www.cai-glac.orgMANAGEREDUCATION TRACK 6:30 TO 7:15 PM “THERE IS NO “I” IN KINGS” Jim Fox is a retired former professional ice hockey player who played nine seasons for the Los Angeles Kings. Eighth on the all-time scoring list, in 1984-85 his best NHL season, he scored over a point a game, finishing with 30-53-83 in 79 games. A severe knee injury brought Jim’s playing career to an end. He has been a color commentator for the Kings since 1990, partnering with Bob Miller on Fox Sports West/Prime Ticket. Fox is well known for his creative way to end sentences, in which his voice goes higher for the final few words. DISTINGUISHED GUEST SPEAKER: Jim Fox TV Color Commentator for the L.A. Kings October 3 4:00 – 9:00 p.m. CAI Exhibition & Education Skirball Cultural Center • 2701 N. Sepulveda Blvd., Los Angeles
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22 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter In 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 Hereapply.area few places to start: VISIBILITY A question to ask yourself — How desirable is your community to live in?
“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 By Deena Kanoff
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!
ASSESSMENTS
“Preserve and Protect” PropertyMaintenance
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.
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.
prioritized to insure the most important issues are addressed starting with life/safety and health.
Deena Kanoff is the director of business development at Jon Wayne Construction and Consulting. She can be reached at deenak@jwcconstruction.com.
Simplycommunity.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.
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
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!
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 Acommunity.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.
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?
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 23 cannot address the repair maintenance needs throughout the
COMMUNICATION “Hear Ye—Hear Ye”
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.
A well-maintained property is key!
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. and an By Jimmy Griego
Protecting
24 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
Preserving
HOA Property’s Most LandscapeValuableAssets
MAKE THE CUT PROFESSIONALWITHPRUNING
Professional 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.
• Damage from rodents or other animals
CLEARANCE
PRUNING: Lower limbs are elevated so that signage, structures, roadways and walkways are not blocked.
HAZARD REDUCTION
PROACTIVE APPROACH TO PLANT HEALTH
•
• Branch breakage from excessive fruiting
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.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 25
• 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
•
PRUNING: Dead, dying, broken or hanging branches are removed to prevent them from falling and causing property damage or personal injury.
•
•
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.
CONTINUED ON PAGE 26
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.
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 Inspectionsprogram. 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
• Full compliance with all national and local safety regulations.
• If signs of disease activity are present, a bark injection of systemic fungicide may be necessary.
• Proper and timely disposal of branches and trunk so that normal activities can resume as quickly as possible at a community.
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:
• Stump grinding/removal once the tree has been cut down.
• Use of ropes to guide large branches after cutting.
• Clearance of the surrounding area for branches and tree trunks to fall.
TREE REMOVAL SERVICES
26 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter 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.
Through Plant Healthcare programs, knowledgeable and experienced tree care specialists can provide quick response and equipment necessary for beautiful, healthy trees year-round.
CONTINUED FROM PAGE 25 Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets Our dedicated experts understand the needs of associations. We can Finance your essential projects, including: • Building Repairs • Improvement Projects Contact Larry 714-864-5171Hooper lhooper@bpop.com Imagine a bank that enhances and protects the financial health of your community association. ©2010 A Division of Banco Popular North America. Member FDIC. associationbankers.com We offer state-of-the-art Lock Box services as well as a full array of other depository services.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 27 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.
• Decrease the risk of pest or fire damage (which can increase when dead fronds are left in palms).
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:
• 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-
• Improve the appearance of palms and the overall landscape (some palms will retain dead fronds for years if they aren’t removed).
Jimmy Griego is a business developer with ValleyCrest Landscape Tree Care Service. He can be reached at jgriego@valleycrest.com.
Seventy 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. 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 Hot August NightAugustSaturday,18,2012 AFunTimewashadbyAll! Wine at the Garden of the Rosenthal-Malibu Estate Wine Tasting Room 28 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 29
Experience professional delinquent assessment recovery. 888-845-8808 www.witkinandneal.com media: Focus Size: 1/2 Page Horizontal Issue: Sept/October 2011 Client: Witkin & Neal CAI-GLAC Community Outreach Committee Delivers School Supply Collection to Operation School Bell 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.
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 31 Southern California’s Most Trusted Construction Service Provider • RECONSTRUCTION PROJECTS • HIGH-RISE SPECIALISTS • WATERPROOFING SYSTEMS & LEAK REPAIRS • WOOD REPLACEMENT & STRUCTURAL REPAIRS • DECK SYSTEMS, REPAIRS & MAINTENANCE • WINDOW & DOOR REPLACEMENT • STUCCO, MASONRY & EFIS • PAINTING & EXTERIOR COATINGS • CONCRETE, ASPHALT & EPOXY INJECTION • POOL AND SPA REPAIRS & REPLACEMENT • ROOF SYSTEMS, REPAIRS & TITLE 24 ROOF COATINGS • INTERIOR AESTHETIC UPGRADES & TENANT EXTRAORDINARYIMPROVEMENTSSERVICE ~ EXCEPTIONAL RESULTS 981 W. 18th Street ~ Costa Mesa, California 92627 949.548.9969 ~ FAX customerservice@pcwservices.com949.548.9711 License # 699611 HIGH COMMERCIALRISEHOAVISITOUR NEW WEBSITE AT PCWSERVICES.COM 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.
Association
CommerceWest
Critical updates on important legal requirements that impact how you work.
DM Construction Services Dunn-Edwards Corporation Elliott Katzovitz Insurance
Beaumont Gitlin
Design Build Associates Diversified Waterscapes,
Adams Kessler PLC Geotechnical Paving, Inc. Lien AT & Group Tashjian CMF Ltd. Bank, N.A. Area Inc. Inc. Agency APC Inc. Grant Mayfield Kaneda &
Fenceworks,
32 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter
Forum Legalcai Forum Legalcai
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).
American
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.
california communities california communities
CertaPro Painters,
Common
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).
Litt, LLP Fiore Racobs & Powers First Bank Association Services HOA Elections of California, Inc. Ivey Engineering, Inc. La Rocque Better Roofs, Inc. McDonnell Roofing, Inc. Mutual of Omaha Bank: Community Association PCWPacificBanking/CondoCertsWesternBankContractingServices, Inc. Popular Association Banking Prendiville Insurance Agency PrimeCo Painting & Construction Rey Insurance Services, Inc. Richardson Harman Ober PC Roseman & Associates, APC SCT Reserve Consultants, Inc. Seacoast Commerce Bank Securitas Security Services USA, Inc. South Shore Building Services, Inc. Sunwest Bank The Inspectors of Election The Judge Law Firm, LLC Three Phase Electric Timothy Cline Insurance Agency, Inc. U.S. UrbanUnionBankBankTreeCare, Inc. Vista Paint Corporation EXHIBITORS CAI LEGAL FORUM: California Communities EVENTEVENTSPONSORS McDonnell Roofing, Inc. NAME BADGES Richardson Harman Ober PC TOTE BAG Amber Property Management Boyd & Associates Professional Community Management Seacoast Commerce Bank COCKTAIL RECEPTION Associa NETWORKING BREAKFAST Cardinal Property Management, CMF DeNichilo & Lindsley, LLP
Maintenance Services,
AMS
Empire Painting & Construction ePipe EpstenRestorationGrinnell&Howell
Cardinal Property Management,
Oct. 19, 2012 | Temecula, CA Oct. 19, 2012 | Temecula, CA 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.
T Connected Communities ATC Assessment Collection
Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee Accurate Termite & Pest Control
Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee
Services
Fenton
ASK THE ATTORNEYS
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.
BETH A. GRIMM, ESQ.*, BETH A. GRIMM PLC and NATHAN MCGUIRE, ESQ., NEUMILLER BEARDSLEE
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 33
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.
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.
COMMUNITY MANAGER & HOMEOWNER EDUCATION PROGRAM
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.
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.
HOMEOWNER EDUCATION PROGRAM How to Avoid Recall Elections
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.
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.
KEYNOTE SPEAKER: CHARLES MARSHALL
NETWORKING RECEPTION
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.
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.
JAMES C. HARKINS IV, ESQ., CANE, WALKER & HARKINS LLP and MICHAEL R. PERRY, ESQ., THE PERRY LAW FIRM and MANAGEMENT COMPANY *CCAL member
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.
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
JAMIE HACKWITH, CMCA®, AMS®, PCAM®, AMBER PROPERTY MANAGEMENT and STEVEN A. ROSEMAN, ESQ., ROSEMAN & ASSOCIATES APC
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.
The Seven Powers of Success™: How to Harness, Develop and Apply Your Seven Powers to Enrich Every Area of Your Life
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.
Limos, Lawyers & Ladies of the Night: Challenges to Rule Enforcement
LORI ALBERT, ALBERT MANAGEMENT CORPORATION and JAMES MCCORMICK JR., ESQ., PETERS & FREEDMAN LLP
DENNIS M. BURKE, ESQ. FIORE RACOBS & POWERS; DONNY DISBRO, PROFESSIONAL COMMUNITY MANAGEMENT and LAURA J. SNOKE, ESQ., LAW OFFICES OF LAURA J. SNOKE
Reasonable Accommodations
Pets + People + Parking = Problems! This session helps you understand and navigate the complex laws covering discrimination claims and requests for reasonable accommodations.
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.
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’!
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
34 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME AS OF SEPTEMBER 15, 2012 BUSINESS PROFESSIONALS REC RUITER Aqua Creations CAI National FHA Review by a | v | s Kimber ly Lilley, CIRMS, CMCA® Reserve Study People CAI National Security Specialists, Inc. CAI National Vasin Sign Solutions Mic helle Urbina Waste Management CAI National COMMUNITY ASSOCIATIONS Santa Rosalia 71 HOA CAI National COMMUNITY MANAGERS Arbi Amirkhanian Brian Davidoff, CMCA®, AMS® Ross Morgan & Company, Inc. Scott Long Kelly Richardson, Esq. Elizabeth Orellana Car ol Brockhouse, AMS® Rockpointe HOA 2012 Recruiters of the Month JANUARY Jose Glez, CIRMS Timothy Cline Insurance Agency, Inc. FEBRUARY Neda Firouz, CMCA® HOA Organizers, Inc. MARCH Steven A. Roseman, Esq. Roseman & Associates, APC APRIL Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company MAY Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company JUNE Candi Kocher, CCAM® Four Seasons HOA JULY Keith Leedom, CMCA® Sky Security Services, Inc. AUGUST Kimberly Lilley, CIRMS, CMCA® Berg Insurance Agency, Inc. 1/2 Page Horizontal 7.5” W x 4.5” H 4C Runs in: Mar/Apr, Jul/Aug, Nov/Dec Focus Salsbury Industries
Homes Association
Donna Ferrell, CMCA®, AMS® CALCO Management, LLC Carol Ford, AMS®, PCAM® Catherine Gemind CMCA®, AMS®, PCAM® Management Group
Lance Sandman, CCAM®, CMCA®, Schell, CCAM®, CMCA®, Schneider, CMCA® Spector, CMCA® Ziegler,
Action
HOA Melissa Mills Doheny Plaza Association
Management
AMS® Remington Plaza HOA Deborah
OA Jonathan Mitchell
Lorna Leviste, CCAM®, PCAM® Promenade West Bel-Air Chalet
Nichole Hoffman, CCAM® The Churchill Condo Assn.
Vicki Olson,
AMS® Prado Community Association Marcie
Valencia
The Ritz-Carlton Residences at L.A. Live Diana Stiller, PCAM® 101 Ocean Condominiums HOA Gerry Suenram, CCAM®, CMCA®, PCAM® EVO HOA Ida Worth, CMCA®, AMS® Ross Morgan & Company, Inc. Lori
Condominiums
CCAM®, PCAM® Century Woods COA COMMUNITY ASSOCIATION LEADERS Bill MaryRichardAlbertHarderNicholsReeceTotten
Danielle Glass-Hays, CCAM® Hays Management Group
Bali Management Group David
Dan Nakari, CCAM®, CMCA®,
Melvin Norell, CMCA®,
CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 35 TO RENEWING MEMBERS! OUR THANKS AS OF JUNE 30, 2012 BUSINESS PROFESSIONALS Accurate Termite & Pest Control Allana Buick & Bers, Inc. American Technologies, Inc. Animal & Insect Pest Management, Inc. Bethco CommerceWestBuildingLink.comBuildersBank. 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 OakridgeAmericaLandscape, 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 CondominiumCampionManagementandCompany&Community Specialists, LLC Condominium Administration Co., Inc. Coro Community Management & Consulting Harris HorizonPropertiesManagement Company Paragon Property Management Group, LLC Professional Community Management Scott Management Company COMMUNITY MANAGERS S ara Atha, CMCA® Concept Seven, LLC Ben Bar, CMCA® EHM/Association Property Management, Inc. Malcolm Bennett International Realty & Investments Gail Bowman, CMCA®, AMS® Westview Towers HOA Nancy Brown Studio Village HOA Tina Crago International Tower Owners Association
Richard Egan CCAM®, CMCA®, AMS®, PCAM® Briarcliffe Towne
Karen Dubose, CMCA®, AMS® Property
Donna Currie, CCAM® The Beverly West
AMS®, PCAM® Century Park Place Condo Assn.
AMS® Hollywood Versailles Towers HOA
AMS® Property Management Professionals, LLC Martha Perkins Hancock Park Terrace Condo Assn.
Bel Air Crest Master Association Clubhouse, Los Angeles Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office
Pasadena Senior Center, Pasadena 10 Essentials 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
“Monsters Ball” Casino Night 6:00 p.m. Park Plaza Hotel, Los Angeles 07 San Gabriel Valley Evening Program – 6:00 p.m.
ADVERTISERS INDEX 15 Anderson Group International 10 Animal & Insect Pest Management, Inc. 30 Association Reserves, Inc. 23 Cacho MaintenanceLandscapeCo.,Inc. 25 Collins Builders, Inc. 14 Fenton Grant Mayfield Kaneda & Litt, LLP 26 Ferris Painting, Inc. 19 First Bank Assoc. Services 36 First Bank Assoc. Services 36 Gayle G. Gould, CPA 18 Hi Tech Painting & Decorating 8 Mutual of Omaha Bank/ CondoCerts 12 Payne Pest Management 31 PCW Services,ContractingInc. 27 Poindexter & Company, CPAs 26 Popular Association Banking 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 Mailboxes.comIndustries19 Sandra Mcdonald Insurance 13 Select Painting 31 Steven G. InsuranceSegalAgency 27 Swedelson & Gottlieb 11 Timothy InsuranceClineAgency, Inc. 16 Union Bank 30 Witkin & Neal, Inc. 24 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP
36 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter ADVERTISING INFORMATION Dimensions & Rates: 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" (Horizontal)high $200 $400 ¼ page 3½" wide x 4¾" high (Vertical) $300 $600 ½ page 7½" wide x 4¾" (Horizontal)high $425 $850 Full Page 7½" wide x 10" high (Vertical) $800 $1,400 Payment: Rates are subject to change without notice. By credit card, check or cash. Minimum three-insertion contract. Rates subject to change without notice. Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 818-500-8636. 2012 UPCOMING EVENTS OCTOBER03Homeowners 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
NOVEMBER03
DECEMBER07
Holiday Happy Hour – 4:00 p.m.
14
To receive credit, you must be listed as the CAI member responsible for recruitment on the printed application form submitted, or be identified through CAI National membership reports.
RECRUITER RAFFLE All 2012 recruiters (except the Grand Prize winner) will go into a raffle drawing held in early January 2013 (when all the 2012 results are in) to win an Evening Out on the Town ($500 value)
• All completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012 to be counted toward the Grand Prize.
RECRUITER-OF-THE-MONTH
GRAND PRIZE ($1,000 value) Member with the highest number of points as of December 31, 2012 wilI receive the Grand Prize. In cases where there are two or more members with equal points, those names will be put into a bowl and randomly drawn to determine the winner. Points will accrue from January 1 through December 31, 2012 for the Grand Prize. Members earn points based on the membership category.
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 member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a FREE LUNCH. In the case of a tie, a random drawing will determine the winner.
RECRUITER-OF-THE-MONTH
RULES
The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a FREE LUNCH. In the case of a tie, a random drawing will determine the winner.
THREE CONTESTS...THREE PRIZES
RECRUITER RAFFLE All 2012 recruiters (except the Grand Prize winner) will go into a raffle drawing held in early January 2013 (when all the 2012 results are in) to win an Evening Out on the Town ($500 value). Help BUILD CAI-GLAC And Reward Yourself by Recruiting New Members in 2012
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
THREE CONTESTS … THREE PRIZES
All completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012. to be counted toward the Grand Prize.
Participating members will receive: One(1) point for each business partner member recruited in a category already existing in the 2012 Membership Directory, Two(2) points for a business partner in a sector of business not yet represented in the Chapter, Two(2) points for an individual HOA board member or community manager, and Three(3) points for recruiting a management company.
Help BUILD CAI-GLAC And Reward Yourself by Recruiting New Members in 2012 Grand Prize 3-day/2-night Weekend Getaway on the Central California Coast Build CAI-GLAC Recruiter Contest runs for 12 months and is designed so that current CAI members can earn valuable prizes for sharing the benefits of CAI membership with friends and colleagues.
SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE.
GRAND PRIZE 3-day/2-night Weekend Getaway on the Central California Coast
• To receive credit, you must be listed as the CAI member responsible for recruitment on the printed application form submitted, or be identified through CAI National membership reports.
Participating members will receive: ★ One (1) point for each business partner member recruited in a category already existing in the 2012 Membership Directory, ★ Two (2) points for a business partner in a sector of business not yet represented in the Chapter, ★ Two (2) points for an individual HOA board member or community manager, and Three(3) points for recruiting a management company.
The following rules apply to the campaign: Members in good standing can compete to recruit new members and earn points toward the Grand Prize.
The following rules apply to the campaign:
• Members in good standing can compete to recruit new members and earn points toward the Grand Prize.
• SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE.
GRAND PRIZE ($1,000 value) Member with the highest number of points as of December 31, 2012 wilI receive the Grand Prize. In cases where there are two or more members with equal points, those names will be put into a bowl and randomly drawn to determine the winner. Points will accrue from January 1 through December 31, 2012 for the Grand Prize. Members earn points based on the membership category.
CAI-GLAC 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Change Service Requested PRSRT STD U.S. POSTAGE PAID SAN BERNARDINO, CA PERMIT #1 Did You AdoptCAI-GLACKnow…hasananHOAProgram? Order Your 2012 Condominium Bluebook Today! Price: $25.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org. 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. Is your HOA looking run down…a little tired? Our ADOPT AN HOA program is here to help!
