Focus Magazine - September/October 2013

Focus L.A.’s Premier Source of Information for Community Associations SAVE THE DATE: “An NovemberCasinowithEveningtheStars”Night2 September/October 2013 Ways to Promote Volunteerism New Look at Pet Policies Why FHA Approval Is Important Special MarketplaceHOA Issue

CAI-GLAC 14th Annual Casino Night Dine with Marilyn Monroe, gamble with Hugh Hefner or dance with Katy Perry on this Special Night To reserve a hotel room call 800.950.7667 and mention “CAI-GLAC Room Block” for $219 rate until October 4. If you enjoyed Monsters Ball Casino Night last year...or heard about the fun you missed... you’ll want to both Sponsor and Attend this year...We expect to sell out early... DON’T MISS IT!! Hollywood Roosevelt Hotel 7000 Hollywood Blvd, Los Angeles Saturday, November 2, 2013 $125/Person or $1,250 table of 10 Formal Attire and Celebrity Costumes are encouraged Dress up as you favorite Celebrity, Movie/TV Character or Recording Artist Red Carpet & Champagne Dinner & Entertainment Gaming & Dancing Raffles & Prizes6 7 8 11 Red Carpet Corporate A. Allbright Painting, Inc. Playing Cards Seacoast Commerce Bank Humphrey Bogart Happy Hour Bar Securitas Security Services USA, Inc. Rare Cork Wine Sponsor General Pavement Management, Inc. Centerpieces FRESHCO Painters, Inc. Gaming Chips G4S Secure Solutions (USA) Inc. Steve McQueen Pacific Western Bank Preferred Commercial Painting, Inc. Park My Car Hi-Tech Painting & Decorating, Inc. Jack Nicholson Fenton Grant Mayfield Kaneda & Litt, LLP Mutual of Omaha Bank/CondoCerts Take Two Photo Booth Data Systems Services Current Sponsors:

CHAPTER

to provide

Meigan Everett, CMCA®, Gold Coast Property Pros

statements.

MEMBERSHIP

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 1 2013 BOARD OF DIRECTORS

Alan Denison, Stay Green Inc.

DIRECTORS Jeffrey A. Beaumont, Esq. Beaumont Gitlin Tashjian, 818-884-9998

Katy Krupp, Vice President Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800

Gerry Suenram, CCAM®, PCAM®, Property

industry. National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Office: 818-500-8636 Fax: 818-500-8638 STAYCONNECTED: SAVE THE DATE: “An Evening with the Stars” Casino Night November 2 On the Cover Corta Bella Homeowners Association Pasadena NEWSWORTHY 4 For Board Members: Ways to Promote Volunteerism 6 CAI Membership Benefits for the HOA Volunteer Leader 8 Rights and Responsibilities for Better Communities 10 Ready, Set, Go! Is your HOA Ready for a Brush Fire? 12 Comfort Pets Breed a New Look at Pet Policies 14 Maximizing Values Via Water Conservation 20 NEWS FROM SACRAMENTO 22 Shouting Fire In A Crowded Chat Room: Homeowners Associations & Censorship 24 Court Holds That The Prevailing Party May Recover Attorneys Fees Incurred In Pre-Litigation Alternative Dispute Resolution Proceedings 26 Why FHA Approval Is Important! CHAPTER UPDATE 2 Note From the Editor’s Desk 3 President’s Message NOTEWORTHY 3 Essentials of Community Leadership Workshop 16 Homeowners Association Marketplace 18 Wine Night Highlights 28 Operation School Bell 30 CAI Legal Forum: California Communities FYI 34 CAI-GLAC Membership News 36 2013 Upcoming Events 36 Advertisers Index 36 Advertising Information

in articles.

statements

Carol Brockhouse, AMS® Tokyo Villa HOA Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 Pamella De Armas SAX Insurance Agency, 310-740-4274

Larry Hooper, Popular Association seeks CAI-GLAC’s developing the logic of their expressed and for the authenticity of all facts presented CAI-GLAC does not necessarily endorse or approve of fact or opinion made in these pages and assumes no responsibility for those By submission of editorial content to CAI-GLAC, the author acknowledges and agrees to abide by the editorial and policy guidelines. Copyright © 2013. 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

Jolen Zeroski, CMCA®, Union Bank GOLF TOURNAMENT

membership with information on community association issues. Authors are responsible for

CHAIRS COMMUNITY

LEGISLATIVE ACTION

MARKETPLACE

opinions

2013 COMMITTEE OUTREACH

EDUCATION

Banking MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner & Senet, LLP PROGRAMS/LUNCHEONS Linda Healey, PCAM®, The Californian on Willshire PUBLIC RELATIONS Darin Sherlock, Marina Landscape PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Sherry Branson, Kevin Davis Insurance Services Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn. SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, Torrance-Windemere HOA Angel Fuerte, FRESHCO Painters WINE NIGHT Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company Jolen Zeroski, CMCA®, Union Bank Homeowners Association Services This publication

Joanne Pena, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Gregg Lotane, CCAM®, PCAM®, Treasurer 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 EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

Action

OFFICERS Matt D. Ober, Esq., President Richardson Harman Ober, PC, 626-449-5577

Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® Concept Seven, LLC, 310-622-7012

Teresa Agnew, Roseman & Associates, APC Daisy Vasquez, Securitas Security Services USA, Inc.

Management FINANCE

Lisa Tashjian, Esq., Beaumont Gitlin Tashjian

Select Painting Union Bank

GOLD Beaumont Gitlin Tashjian Behr Paint Corp/THE HOME DEPOT USA

SAX Insurance Agency ServiceMaster by Eddie South Shore Building Services, Inc.

FROM THE EDITOR’S DESK

Richardson Harman Ober PC Silldorf & Levine, LLP Stonemark Construction Management The Termite Guy Three Phase Electric U.S. ValleyCrestBank Landscape Maintenance We thank our 2013 sponsors who have made a substantial contribution to ensure our continued success this year. Contact the Chapter Office at 818-500-8636 to sponsor a program or an event.

Popular Association Banking Securitas Security Services USA, Inc.

Reserve Studies Incorporated S.B.S. Lien Services

QwikResponse Restoration & Construction Reconstruction Experts, Inc.

Nautilus General Contractors, Inc.

Mutual of Omaha Bank/CondoCerts

Mission Landscape Services Pacific Premier Bank PCW Contracting Services, Inc. Poindexter and Company, CPAs Professional Services Construction, Inc.

Stay Green

Association Reserves, Inc. Berg Insurance Agency, Inc. CommerceWest Bank Milstein Adelman, LLP

The first article is on a topic to which everyone can relate. How do you promote volunteerism at your community? Alexandria Spargo, CMCA® gives great advice for ways to encourage people to volunteer as board members as well as ways to show appreciation to the people who currently volunteer their time on the Withboard.brush fire season upon us, it’s more important than ever to have a fire safety plan at your association. This article by the Los Angeles County Fire Department (LAFD) gives valuable information on Ready, Set, Go, which is an LAFD educational program available to the public to encourage homeowners to keep their homes and communities as fire-safe as possible. Insurance industry professionals are seeing a rising new trend in insurance claims—those involving “comfort pets.” What exactly is a “comfort pet?” I write an article explaining this new phenomenon and what associations should know about this trend, including how they can best be prepared to deal with it. Painting, Inc.

TimothySwedelsonGottliebInc.ClineInsurance Agency, Inc.

Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Fenton, Grant, Mayfield, Kaneda & Litt, LLP

Horizon Management Company

NOTE

Chapter 2013 SuperCAI-GLACSponsors PLATINUM Animal & Insect Pest Management, Inc. Farmers Insurance Group—Steven G. Segal Insurance Agency, Inc. General Pavement Management, Inc. Pacific Western Bank Payne Pest Management Preferred Commercial Painting, Inc. R.W. Stein

SILVER Adco Roofing, Inc.

Seacoast Commerce Bank

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. Water conservation and how making this issue a priority can greatly benefit home values at associations is the topic of this article by Ashley Garrison. Chat rooms are popular ways for people to communicate and get things off their chests. When a chat room revolves around community association issues and the topic gets heated, should the forum be censored? Steve Roseman, Esq. poses this question in an article about whether censorship should be enacted during HOA chat room discussions. A recent California legal case held that attorneys fees incurred by a prevailing party during mediation can be included in the attorneys fee award. This case is significant in that most CC&Rs provide a right to recover fees if the parties engage in litigation and do not allow a basis for recovery of pre-litigation fees. Debra Sheppard, Esq. writes this article detailing the case.

Is FHA Approval important for community associations? Natalie Stewart answers this questions and talks about the current situation association’s face and why educating oneself about the process is more important than ever.

Fenceworks, Inc.

Ferris Painting, Inc. First Bank Hi Tech Painting & Decorating, Inc.

Orange Coast Building Services, Inc.

Bethco Builders Boyd & Associates DM Construction Services Dunn-Edwards Paints

I’m very proud to mention that the CAI Community Outreach Committee organized a school supplies drive for the Operation School Bell program in which clothing, school supplies, backpacks and dictionaries were collected for hundreds of school children from across Los Angeles County. Bravo! Have a wonderful fall and enjoy the lovely seasonal—events.Sherry Branson, Editor

Best Alliance Foreclosure and Lien Services

2 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

BRONZE Accurate Termite & Pest Control

SUMMER IS OVER, AND HEADING into a busy fall we are excited because lots of great events are taking place this season!

Whether at an educational luncheon, a social event or at a Homeowners Association Marketplace, our members enjoy being together. Truly our Chapter’s wealth is in you, our members, and what each of you brings to our programs and events. Despite the undeniable fact that we enjoy hanging out together, we are mindful of the reason you are a member: you belong to CAI-GLAC to educate yourself on the latest trends, services and products, or to refine your leadership skills as a community leader, or to network with industry colleagues and share the particular benefits your company has to offer the community association industry. These are the benefits of membership in CAI.

The Value of Membership directory will be available only to members. Access to members-only resources will require a login username and password, so please contact the Chapter Office for login assistance. We will re-evaluate the effectiveness of the members-only access and welcome your feedback on this new approach to Web site resources. In addition, in an ongoing effort to assimilate new members into our chapter, we will augment our new member orientation with some Board outreach. Your directors will be in contact with each new member, as well as those who have joined within the last year just to check in, offer assistance and be available as a point of contact for the new members in order to ease their entry into the Chapter. We recognize that getting to know a community of 728 members can be a overwhelming,little but CAI-GLAC is a warm, welcoming group, and we hope our Toiscentralizedmembersservinggeographically,largeSincetoourtheeaseourprogramBoardnew-memberliaisonwillhelpnewmemberstheirwayintomanybenefitschapterhasoffer.weareachapterallourinavenueachallenge.meetthis challenge, we are stepping up our efforts to bring CAI to you, so to speak. With our expanded satellite educational programs in Valencia, South Bay, San Gabriel Valley and Long Beach, we are providing communities in the four corners of our chapter’s boundaries greater access to valuable programs in relevant topics. By most accounts we are succeeding. Our regional Homeowners Association Marketplaces are drawing greater numbers from more remote locations, and our recent Long Beach educational program attracted the largest attendance we’ve had from the area. We will continue to evaluate ways to enhance the value of your membership to give you the greatest return on your investment of time and money. So please let us know how we are doing and what we can do to meet your expectations.

Membership value is of the utmost importance to the Board of Directors, so I would like to share with you some efforts being made to ensure that you receive the greatest possible value from your Beginningmembership.thismonth we have restructured the CAI Web site so that the most valuable resources are available to members only. Rest assured that CAI remains a resource for the general public; however, we believe that there are some resources and services that should be provided to members only, in order to encourage the public to join. For example, our online educational Webinars, the FOCUS Magazine archive and membership FROM THE PRESIDENT

— Matt D. Ober, Esq. 2013 Chapter President To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.

MESSAGE

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 3

LIFT THE VEIL Many homeowners who are not actively involved in the community have no clue about what the board of directors actually does. They know the basics: The board sends violation letters about your barking dog; they increase the assessments; they make sure the lawn gets mowed. However, homeowners do not really understand the details. I recently went through my CAI course materials and compiled a list of basic duties for each director position. This brief description is mailed to all the homeowners with the nomination forms. Homeowners are more likely to volunteer if they have a clear understanding of the duties and expectations associated with serving on the board.

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

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.

4 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

FOR BOARD MEMBERS: By Alexandria Spargo, CMCA® er Chapt WAYS TO PROMOTE VOVOLUNTEERISMISM

Ask most homeowners about their first interaction with the board of directors and they’ll tell you it came in the form of a violation letter. Make a better first impression by putting together a welcoming committee. If putting together a committee is too formal for your association, take it upon yourself as a board member to say hello to the new neighbor and explain a little about your community. Remember, each homeowner is a potential volunteer. As always, work with your manager to come up with ways to promote and implement volunteerism. If you have any good ideas, or if your community has an innovative way of recruiting volunteers, I would love to hear about them. E-mail me at alexandria@ mpimail.net.

OFFER AN OLIVE BRANCH TO “PROBLEM HOMEOWNERS”

MAKE A GOOD FIRST IMPRESSION

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 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!

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.

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 5 In the face of security company acquisitions, we are still a boutique security company LARGE enough to handle any account yet SMALL enough to offer outstanding customer service. Is your old security service company starting to miss a few pieces since it became part of a mega-merger? Are you feeling like the security picture is falling apart at your association? THE CENTURION GROUP brings all the pieces together!

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

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.

CAI Benefits for the HOA Volunteer Leader

CAI-Greater Los Angeles Chapter

Membership

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.

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

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. HERE ARE THE SERVICES YOU’LL RECEIVE AS A CAI MEMBER:BoardMember Tool Kit—A “howto” kit filled with tools, knowledge and information that help you do a better job and make it easy to serve in your role as a community association leader. Online tools and resources available 24 hours a day—including: Downloadable standardized templates, sample notices, letters and forms that can be adapted for use in virtually any community. Governance questions and answers —Find out specific information related to governance issues (meetings, statutes, assessments and more) in your state. An extensive Research Library containing thousands of articles for reference. A Discussion Board where you can find out how your peers are dealing with similar issues. Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members. HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents. Finding the Right Professional Whether you are looking for professional community managers, legal advice, a reserve study, technology, bank loans, an audit, or insurance coverage, CAI is your portal to the professionals who serve community associations. Go to www.cai-glac.org for a list of local service providers dedicated to this industry. Common Ground—An awardwinning, bimonthly national magazine offering information on topical issues affecting you and your association. Focus Newsmagazine —An awardwinning, bi-monthly local chapter magazine offering information on topical issues affecting you and your association. Publications —Receive substantial discounts on more than 100 titles on a variety of topics, such as drafting and obtaining compliance with reasonable rules, evaluating reserves, hiring the right professionals and more in our Bookstore. 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. 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.

6 www.cai-glac.org | September/October 2013

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 7

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

LET RIGHTS AND RESPONSIBILITIES HELP YOUR COMMUNITY

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.

ANNOUNCE YOUR COMMITMENT

Adopting Rights and Responsibilities for Better Communities is easy! Download the Rights and Responsibilities document (PDF) from our chapter Website at www.cai-glac.org under the For Homeowners section. Distribute the document throughout your community, announcing and publicizing where and when adoption will be Explainconsidered.whythisis important to your community and the benefits it can Reviewcreate. and discuss the merits of the principles at an open meeting of your Solicitboard. input from homeowners. 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.

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

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HOW YOU CAN MAKE IT HAPPEN

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.

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’sgoverning documents.

1.A responsive and competent community association.

3.Respectful and honest treatment from residents.

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

3.Treat association leaders honestly and with respect.

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

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. Tolearn more about CAI and its local, regional and state chapters, visit www.caionline.org or call (888)224-4321.

5.Prudent expenditure of fees and other assessments.

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

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

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

7.Request reconsideration of material decisions that personally affect

4.Conduct meetings in a positive and constructive atmosphere.

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

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

5.Pay association assessments and charges on time.

1.Expect owners and non-owner residents to meet their financial obligations to the community.

Community Leaders Have the Responsibility To:

11.Allowappropriate.homeowners access to appropriate community records, when

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

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

4.Vote in community elections and on other issues.

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

Homeowners Have the Responsibility To:

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.

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

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

12.Collectrequested.allmonies due from owners and non-owner residents.

9.Encourage events that foster neighborliness and a sense of com-

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.

Sponsored by CAI’s President’s Club

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

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

4.Access appropriate association books and records.

9.Appealcommunity.toappropriate

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

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 Leaders Have the Right To:

community leaders those decisions affecting non-routine financial responsibilities or property rights.

10.Conductmunity. business in a transparent manner when feasible and

1.Read and comply with the governing documents of the community.

Principles for Homeowners and Community Leaders

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.

Homeowners Have the Right To:

2.Maintain their property according to established standards.

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

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

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 9

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

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

ASSOCIATIONS INSTITUTE Rights and Responsibilitiesfor Better Communities

PREPARESET!

YOUR FAMILY Create a family disaster plan that includes meeting locations. Ensure that your family knows where your gas, electric, and water main shut-off controls are and how to use them. Have fire extinguishers on hand and train your family on how to use them. Plan several different escape routes. Designate an emergency meeting location outside of the fire hazard area. Assemble an emergency supply kit as recommended by the American Red AppointCross.an out-of-area friend or relative as point of contact so that you can communicate with family members who have relocated. Maintain a list of emergency contact numbers posted near your phone and in your emergency supply kit.

DOORS – Embers can enter gaps in doors, including garage doors. Plants or combustible storage near windows can be ignited from embers and generate heat that can break windows and/or melt combustible frames.

CREATEREADY!ADEFENSIBLE HOME A defensible home is a home that has the greatest potential for surviving a wildfire. Defensible homes are those homes that are in compliance with the County of Los Angeles Brush Clearance requirements or have been through the Fire Department’s Fuel Modification Program and have been constructed with the latest building standards for the fire zones. What is fuel modification? The Fuel Modification Program is a plan designed to help homeowners identify and reduce the dangerous fuel (brush) for homes located in high-risk brush areas. The plan helps protect homes and a neighborhood by requiring vegetation planted in zones around structures to be selected from an approved list of plants and identifies areas surrounding the home that require brush clearance or Thethinning.abilityof your home to survive a wildfire depends on its construction materials and the quality of the “defensible space” surrounding it. In addition to making sure your home has the recommended amount of “defensible space” around it, there are also many measures you can take to safeguard your home’s structure from wildfire. The most vulnerable areas to protect are the roof, the vents, the walls, the windows and doors, and balconies and decks.

ROOF – The roof is the most vulnerable part of the home which can easily catch fire from blown embers. Fire-resistant roof materials such as composition, metal, or tile are the best materials for a fire-safe roof. Wood shake and shingle roof materials are at a higher risk of being destroyed during a fire than homes with fire-resistant roofs. VENTS – Vents on homes are very vulnerable to flying embers. All vent openings should be covered with 1/8 inch or smaller metal mesh. Do not use fiberglass or plastic mesh because they can melt and burn.

10 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

WINDOWS – Heat from a wildfire can cause windows to break even before the home ignites. Dual-paned windows are the most fire-resistant windows, singlepaned and large windows are the most vulnerable type of windows when a fire approaches. WALLS – Wood products (boards, panels, or shingles) are common siding materials; however they are combustible and not good choices for fire-prone areas. You should use fire-resistant building materials such as brick, cement, masonry, or stucco and make sure you extend the materials from foundation to roof.

Courtesy of the Los Angeles County Fire Department

FIRE SEASON is here and already Los Angeles County has seen several large and dangerous brush fires sweep through the region. How can homeowners protect themselves from brush fires? The Los Angeles County Fire Department has developed an educational program named Ready, Set, Go, which guides homeowners to create their own personal wildfire action plan.

BALCONIES AND DECKS – Embers also collect in or on combustible surfaces or the undersides of decks and balconies, ignite the material, and enter the home through walls or windows.

IS YOUR HOA READY FOR A BRUSH FIRE?

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 11 Keep an extra emergency supply kit in your car in case you can’t get to your home because of fire. Have a portable radio or scanner so that you can stay updated on the fire. MAKEGO!A KIT Keep a pair of old shoes and a flashlight ready for a night evacuation. Keep the six “P’s ready in case an immediate evacuation is required: People and pets Papers, phone numbers and important Prescriptions,documentsvitamins and Pictureseyeglassesand irreplaceable memorabilia Personal ATM“Plastic”drive(informationcomputersonhardanddisks)(creditcards,cards)andcash You should always make sure you leave early enough to avoid being caught in fire, smoke, or road congestion. Don’t wait to be told by authorities to leave. In an intense wildfire they may not have time to knock on every door. If you are advised to leave don’t hesitate! For more fire safety information or if you have any questions about the program, call the LA County Fire Department Public Information office at 323-881-2411.

There are several important features to look for when considering a Directors and Officers Liability policy.

Coverage for directors, officers, trustees, employees, volunteers, and committee members, as well as the community association, with a broad definition of claim Duty to defend feature that provides legal defense for allegations of wrongful acts and covers associated defense Coveragecostsfor monetary and non-monetary claims

Sherry Branson is Marketing Project Manager at Kevin Davis Insurance Services, a nationwide full-service insurance agency. She can be reached at sbranson@kdins.com.

Comfort Pets Breed a New Look at Pet Policies

12 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

A “comfort pet” or “emotional support animal” is an animal which a homeowner keeps as a result of a doctor’s note due to either medical or emotional needs. Associations are seeing more and more of these claims. A comfort pet could be anything from a squirrel to a dog to a pot belly pig!

Directors and officers are usually not covered under general liability policies for their professional responsibilities. State immunity statutes may not provide adequate protection for directors, officers and trustees.

Coverage for punitive and exemplary damages where insurable under applicable law

When claims are made against an association, the association’s assets are at risk, as well as the personal assets of the board members. As a director, officer, trustee, or even a volunteer of a community association, you can be held personally liable for decisions and actions made on behalf of your association.

It’s also important to pay attention to the exclusions in D & O Liability policies; in some policies the community association itself is not covered. If you have any questions about the type of policy your association currently has in place, speak to your broker.

Another example of a recent claim involving comfort pets involved a homeowner who filed suit against the association and board president regarding the association’s refusal to recognize her disability and allow her to keep her emotional support service dog. The parties attempted to mediate these claims several times, but could not come to an agreement and the matter was brought to trial. Despite a favorable decision for the association, the defense costs exceeded $60,000. This claim of discrimination filed by the homeowner against the association and board of directors triggered the Association’s Directors and Officers Liability policy. Directors and Officers Liability is the type of insurance that would cover claims made against the board of directors or the community association when a resident files a claim regarding a dispute over a comfort pet. By Sherry Branson

Optionalorganizationcoverage for the builder/developer while acting as a member of the board

Coverage for lawsuits and allegations involving wrongful termination, discrimination, and general breach of fiduciary duty Coverage for the community association management

Have you ever forgotten to take your medication? It’s happened to all of us at some point. In a recent community association Directors and Officers Liability insurance claim, a woman says that when she forgets her medication, her pet squirrel reminds her to take it. She claimed that when she got a headache the squirrel also would lay across her head to help get rid of the headache. Her pet squirrel is known as a “comfort pet,” a new trend which is affecting pet policies at community associations around the country.

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 13 We’ll start by providing you a dedicated relationship manager to help streamline your operations, a customized HOA lockbox, 24/7 online account access, and customized proposals to meet your banking needs. If that’s not enough, know that a bank with nearly twenty years of industry expertise is on your side, as focused on your success as you are. To put our homeowners association services experience to work for you, contact us at 866-210-2333 HOAbankers.com WE’D LIKE TO GIVE YOU SOMETHING YOU CAN USE: OUR EXPERIENCE. ©2013 Union Bank, N.A. All rights reserved. Member FDIC.

Adopting a smart water management program now is a critical component to operating a community at peak efficiency at all times, not just when irrigation restrictions exist. Cutting costs through sustainable practices makes financial sense as well. HOAs throughout the country are learning that landscape management can enhance the bottom line in a number of ways, including making the grounds more aesthetically pleasing and more sustainable, which plays a role in improved homeowner retention.

Garrison, ValleyCrest Landscape Maintenance

Homeowners association (HOA) boards must examine all aspects of a budget to find ways to maximize the value and curb appeal, yet still achieve the highest standards of operational performance. Water efficiency programs can help create value, improve the environment and produce impressive results for the bottom line. For many HOAs, water conservation is a fact of life. But for others, water may not be perceived as a precious resource simply because it seems to be plentiful in their area. Even though water is relatively inexpensive, it is a limited natural resource. As the population increases, the earth’s available fresh water remains constant, thus as demand increases, so too will the price.

T

ODAY, MORE THAN EVER, SMARTER WATER MANAGEMENT PLANS ARE REQUIRED at properties across the Southern California region.

By Ashley

Maximizing Values Via Water Conservation

14 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter ALLISON DISARRO Vice President HOA Banking Division 619-988-6708 Mobile 858-312-7030 adisarro@sccombank.comFax PROPERTY MANAGEMENT & HOA BANKING Seacoast Commerce Bank provides our Property Management and Homeowner Association clients the ability to maximize their use of bank services. We understand the unique Banking needs of our Property Management and Association clients, providing industry specific products and customer service that you have grown to expect and deserve. MANAGEMENTPROPERTY & HOA BANKING SOLUTIONS Depository Services Cash OnlineHOAACHLockboxCaptureRemoteManagementDepositServicesOriginationFinancingDuesProgram 11939 Rancho Bernardo Rd, Suite 200 San Diego CA www.sccombank.com92127 Seacoast Commerce Bank offers a full range of comprehensive banking and financial services for Homeowner Associations and property management companies.

These tips and examples show that positive results occur when HOA boards treat their community’s landscape as an asset and practice sustainable principles, such as water and waste reduction. The value of the landscape increases, spending on maintenance decreases, less water is used and more environmentally-friendly processes are integrated into standard operations. Ultimately, a smart water management program can help a community run more efficiently, which is good news for the environment and annual budget.

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 15

The landscape program may also encompass a plant density reduction plan, resulting in the removal of some plants that required significant amounts of water. Plants that required watering five days can be replaced with shrubs requiring only two days of irrigation.

Ashley Garrison is a Business Developer with ValleyCrest Landscape Maintenance and can be reached at agarrison@valleycrest.com.

Other water smart measures included practicing hydrozoning, converting shallow-rooted ground cover into drought tolerant shrubs with a drip rather than spray irrigation system, and reducing turf areas under canopy trees.

Water-conserving drip irrigation systems can be systematically installed and properties can be retrofitted with smart, weatherbased controllers, which lower irrigation water usage on average 24 percent a year. Despite the initial investment, programs can contribute significant reductions. For instance, one customer saved more than 81 million gallons of water.

WHERE TO START Smart water conservation programs could include adopting more eco-friendly landscape programs and reducing landscape operating costs at the same time. A good starting place is to create a landscape management plan that focuses on three components: horticultural improvements, reducing water consumption and sending less waste to landfills. Initially, that means determining water consumption and maintenance costs required to sustain the current level of landscape, identifying plants that require the most water, and determining fertilizer needs — all of which can reveal some opportunities for improvement.

TIPS FOR AN EFFECTIVE WATER MANAGEMENT PROGRAM

16 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter CAI-Greater Los Angeles Chapter presents FEATURING (Must be present to win) NEW THIS YEAR! SCHEDULE5:30p.m. Meet & Greet with Exhibits 7:00 p.m. Dinner with PresentationEducational PRESENTATIONEDUCATIONAL Free Legal Advice with Davis-Stirling Act Highlights Richardson Harman Ober PC Debra L. Sheppard & Associates APLC Kulik Gottesman & Siegel, LLP Law Offices of Laura . Snoke ATURING SCHEDULE EDUCATIONAL Grand Prize Sponsors BELFOR Property Restoration McDonnell Roofing Table Wine Sponsors Debra L. Sheppard & Associates APLC Kulik Gottesman & Siegel, LLP Law Offices of Laura J. Snoke Presentation Event Sponsors

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 17 Service Providers in the following areas will be on hand to showcase their products and services and answer your questions. ASSESSMENT RECOVERY Association Lien Services S.B.S. Lien Services Witkin & Neal, Inc. ATTORNEYS Beaumont Gitlin Tashjian Debra Sheppard & Associates APLC Richardson Harman Ober PC Roseman & Associates APC SwedelsonGottlieb BANKING CommerceWest Bank First MutualBankofOmaha Bank/CondoCerts U.S. UnionBankBank CONSTRUCTION MANAGEMENT Bethco Builders Design Build Associates Stonemark Construction Management CONTRACTORS ASR Construction ELECTION SERVICES Mister Parliamentarian ELEVATOR SERVICE Performance Elevator Contractors, Inc. FENCING Fenceworks, Inc. FIRE & WATER CLEANUP & RESTORATION StateServproRestoration FOUNTAINS & WATER FEATURES California Waters HVAC DUCT CLEANING Action Duct Cleaning INSURANCE Anthony Elliot Insurance Agency, Inc. Steven G Segal Insurance Agency Timothy Cline Insurance Agency, Inc. LANDSCAPING Gothic Grounds Management Mission Landscape Stay Green ValleyCrestInc.Landscape Maintenance MAILBOXES, LOCKERS Salsbury Industries METERING PRODUCTS & SERVICES MeterNet Sub-Metering & Billing Solutions MOLD, ASBESTOS, LEAD PAINT American Technologies, Inc. PAINT SUPPLIER Vista Paint Corporation PAINTING CONTRACTORS A.Allbright Painting, Inc. CertaPro Painters Ltd. Ferris Painting, Inc. R.W. Stein Painting, Inc. Select Painting PEST CONTROL Accurate Termite & Pest Control Animal & Insect Pest Management Payne Pest Management P ET WASTE PooPrints West RESERVE STUDIES Association Reserves Reserve Studies Inc. ROOFING Adco Roofing, Inc. Allied Roofing & Waterproofing Systems, Inc. Biltwell Roofing SECURITY Boyd & CenturionAssociatesGroup S ECURITY H ARDWARE Mulholland Security Centers, Inc. TREE SERVICE Urban Tree Care

18 www.cai-glac.org | July/August 2013 CAI-Greater Los Angeles Chapter Garden of the Rosenthal-Malibu Estate Wine Tasting Room Saturday, August 17, 2013 THANKS TO OUR SPONSORS CORPORATE Horizon Management CompanySIPSAVORatRosenthal EPICUREAN Nautilus StevenPacificOCBS,ContractorsGeneralInc.WesternBankG.SegalInsuranceAgency,Inc. DESSERT Fenton Grant Mayfield Kaneda & Litt, LLP WINE STEWARD Fenton Grant Mayfield Kaneda & Litt, LLP General MutualHeritageManagement,PavementInc.ConstructionofOmahaBank/CondoCerts RAFFLE BASKETS AMARR Studios, Inc. The Termite Guy & IRC Services Seventy-two chapter members and friends gathered in the garden of the Rosenthal Wine Tasting Room in Malibu on August 17 for a wonderful evening of fine wine paired with gourmet tacos, burgers and melt-in-your-mouth desserts. It was an excellent opportunity to get together with industry friends in a casual setting. Our thanks to all of sponsors listed here and to the Wine Night Committee for organizing the event: Pamella De Armas (SAX Insurance Agency), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Joanne Peña (Horizon Management Company) and Jolen Zeroski (Union Bank Homeowners Association Services).

CAI-Greater Los Angeles Chapter July/August 2013 | www.cai-glac.org 19

NEWS

Finally, CLAC’s Assembly Bill 1360 will be reactivated in January following our research into electronic balloting programs and security safeguards. California’s Secretary of State opposes our bill even as electronic voter registration is permitted and encouraged by her office.

The $150 “Fire Prevention Fee” is still being challenged in court as an illegal tax by the Howard Jarvis Tax Organization. CLAC testified that the application of the fee discriminates against condo owners in “designated rural areas” by not applying the fee “per structure” as they do with apartment building owners. A public hearing is set for November 21 in Sacramento.

FROM SACRAMENTO

CLAC supported and helped develop SB 752 which creates separate code sections for commercial and mixed-use associations and will assuredly be signed by the Governor.

Skip Daum is our veteran Legislative Advocate for CAI's California Legistlative Committee and may be reached at caiclac@aol.com.

The legislative session recesses on September 13 until January when it reconvenes for the second half of the 2013-2014 session. In the interim, CLAC will be working on new legislative proposals and will keep you informed. Our ability to keep you up-to-date on the changes in Sacramento, as well as our ability to represent your interests to our legislators rely completely on donations from you. Please encourage your associations to participate in the Buck-A-Door program, which has been included in a CLAC mailer sent to all CAI California members.

SB 298 passed to the Governor. It allows Orange County and its cities to contract out vehicle law enforcement services to HOAs under negotiated terms. We supported the bill and expect it to be signed by the Governor. SB 652 requires sellers to disclose all construction defect claims to buyers and will be signed by the Governor. CLAC was neutral on the measure.

CLAC is taking an OPPOSE position on Senate Bill 391, which mandates a $75 fee on practically every recorded document to fund affordable housing (totaling $375 in foreclosure cases) after researching statistics in key legislators’ districts to reveal the negative impact on constituents. Due to this research and our joining forces with realtors, credit unions and land title organizations, we stopped the forward momentum of the bill, and it will not be acted upon this year.

Consider joining us for a CLAC fundraising dinner on Thursday, October 17, in Irvine, held in conjunction with the CAI 2013 Legal Forum: California Communities. Registration and sponsorship opportunities are available at www.caiclac.com.

20 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 21 101 Ocean Condominium HOA 1144 Seventeenth Street HOA 826 2nd Street HOA 2050 Artesia HOA 2641 4th Street HOA 11767 Sunset Blvd. Assn. ALI Condo OA Bodger Park Condo HOA Bougainvillea Townhomes HOA Budlong Villas HOA Inc. Cardiff Court O.A. Inc. Casa de Oro Condo HOA Casa De Valley View OA, Inc. Centinela Townhomes II HOA Chalmers/Wooster Plaza HOA Chateau Delgany Estates COA, Inc. Chateau Goshen HOA Culver Centrale HOA Del Mar Terrace HOA Galaxy GorhamHOAPark HOA Inc. Hayworth OA Hillcrest Meadows OA Hillcrest Rolling Hills HOA Idaho Villas HOA Kelton Arms COA Las Casitas en Santa Monica HOA, Inc. Lawford HOA Marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Pacific Sands Inc. Park Crest HOA Parkview Manor-Lockland Inc. Polynesian SeascapeRoxburyRancho-GlenOAHOAParkCOA–Redondo HOA Inc. Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shore Mediterranean HOA Southern Oaks Society Diana Stiller, Stratford-ComptonPCAM Park Townhouses OA, TextileInc.Building OA 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. Westgate Townhomes COA Westside Townhomes HOA Wilshire Selby Towers East C.A. Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Yukon I Townhomes COA Yukon II Townhomes COATOTAL:CONTRIBUTIONCURRENT$16,573 GOAL: $23,081 of72%goal as of 9/18/13 OUR THANKS TO 2013 CLAC CONTRIBUTORS JANUARY 1 – SEPTEMBER 18, 2013 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 IInn CaAntsBees,llT 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 Applicators, extensively trained methods and safety. develops precision pest that ensure the most methods are used to guarantee results Visit us online www.animalinsectpm.com Questions? info@animalinsectpm.com

22 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

Shouting Fire In A Crowded Chat Room: Homeowners Associations

An HOA’s use of social media can increase transparency and efficiently place volumes of information a mouse click away from interested HOA members. HOAs can also use social media to provide a platform for HOA members to voice their opinions and exchange their views regarding their HOA and community, in message boards and in chat rooms. HOAs have been called “minidemocracies,” and it is tempting to expound upon that analogy by likening chat rooms to virtual “town hall meetings” where citizens peaceably exercise their First Amendment rights and discuss their views and opinions regarding matters affecting their community.

Another reason the chat room/town hall meeting analogy is inapt is because the tone and content of an unrestricted chat room can easily and quickly veer far beyond a peaceable exchange of ideas and into a venomous pit of member frustration or rage. Defamatory statements can be made, false and misleading information and innuendo can be communicated, foul language used, personal attacks launched, and suddenly what seemed like a great idea—providing owners with a platform to discuss issues affecting their community—can seem like a horrendous mistake. Against such a backdrop, the word “censorship” can suddenly take on positive connotations, and certainly HOAs can— and many would argue should—engage in censorship of chat rooms. Indeed, for the reasons noted above, censoring member posts does not carry with it any constitutional or “free speech” implications.

As to the how — an HOA’s board should enact specific guidelines pertaining to posted content, such as restrictions against foul language and personal attacks. The situation to be avoided is for a board to simply designate a manager or board member, sans specific guidelines, to “do what they think is best” in monitoring and controlling the content of the website. Such a scenario is problematic for several reasons. First, the board would effectively be entrusting a single director with the a power to be unilaterally yielded pursuant to his or her own conceptions of “right and wrong,” a scenario antithetical to the notion that HOAs and boards should act within defined parameters. Second, providing a person with such authority could grant such person carte blanche to improperly censor posts based upon the content of such posts, as opposed to based upon objective standards which operate independently of the views being communicated in such post.

While tempting, it is not really an apt analogy. To begin with, members participating in HOA chat rooms are not, in the truest sense, participating in a “free speech” activity governed by the First Amendment. This is so because constitutional prohibitions against the restraint of free speech, whether founded upon the U.S. Constitution or the California Constitution, generally apply only to governmental entities and not to corporations such as HOAs. This fundamental concept was illustrated when disputes arose in California

By Steven A. Roseman, Esq.

T

regarding HOA restrictions operating to prohibit the display of political signs and the American flag. Such restrictions were not invalidated by the courts on First Amendment or “free speech” grounds. Such restrictions were invalidated because the California Legislature passed Civil Code Sections 1353.5 and 1353.6, and thereby gave HOA members certain affirmative rights with respect to signs and flags which they did not enjoy under the U.S. or California Constitutions.

& Censorship

So how, then, should an HOA so-inclined go about censoring chat rooms and what limitations, if any, are HOAs subject to when engaging in such censorship?

he benefits of social media to homeowners associations (HOAs) and management companies are indisputable.

Steven A. Roseman, Esq. is the principal of Roseman & Associates, APC, an attorney firm specializing in common interest development law and construction defect litigation. He can be reached at Roseman@raattorneys.com.

The Davis-Stirling Act does not address HOA chat rooms, and there is no law or legal authority specifically pertaining to an HOA’s ability to monitor and censor chat rooms. That said, Civil Code Section 1363.03 quite arguably prohibits HOAs from engaging in any censorship of certain content during an election cycle, i.e., the period of time between the nomination of directors and the election of directors. Section 1363.03 provides that HOAs must enact rules ensuring that “if any candidate or member advocating a point of view is provided access to association media… or Internet Web sites during a campaign, for purposes that are reasonably related to that election, equal access shall be provided to all candidates and members advocating a point of view…”

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 23

Of course, even with guidelines, whether to censor a particular post will invariably require a subjective determination be made at some point. However, HOAs may well find that such subjective determinations cannot be entirely avoided as simply a “necessary evil” inherent in acting to ensure that chat rooms remain a place for the respectful and cordial exchange of ideas and opinions.

Section 1363.03 further provides that HOAs “shall not edit or redact any content” from member communications made on the association media or Web site. Based upon the foregoing, a strong argument can be made that during an election cycle HOAs cannot validly edit or redact chat room posts which are “reasonably related” to the pending election.

The argument could be made that Section 1363.03 does not apply to chat rooms because such do not constitute “Internet Web sites” to which specific candidates are specifically “provided access”—rather, every member can decide for himself or herself whether to access and post on such site. Additionally, it could be argued that Section 1363.03 was not intended to apply to chat rooms, the contents of which are generally unsanctioned by HOAs. Rather, it was intended to apply HOA-sanctioned content and to prevent HOAs from publicizing the views of one candidate and not another. That said, the chief flaw in such arguments is that not applying Section 1363.03 to chat rooms could give rise to the very scenario such section seeks to avoid, i.e., one candidate or interested members use an HOA Web site to express views while other candidates and members are not given such an opportunity. Accordingly, if an HOA intends to censor chat rooms, the more prudent approach is to enact guidelines which address periods of times that are likely governed by Section 1363.03, so as to avoid any disputes or challenges as to whether such section is being violated.

In Grossman v. Park Fort Washington Association (2012-modified January 15, 2013) 212 Cal. App. 4th 1128, decided by the Court of Appeal for the 5th Appellate District in Fresno, the Grossmans filed a lawsuit against their Association following the denial of a request for a variance for a cabana and fines which were levied each day that the cabana and fireplace remained. The Grossmans built a cabana and fireplace in their backyard without prior approval from the Association. The Grossmans prevailed in the lawsuit and filed a Motion for Attorneys Fees for 331.9 hours that their attorney spent on the case, including 38.1 hours incurred in connection with the mediation, as well as the mediator’s fee. The Association opposed the Motion, in part, by arguing that the pre-litigation fees were not authorized by Civil Code Section 1354. The Court granted the Motion for Attorneys Fees and allowed the pre-litigation fees. The Theappealed.AssociationCourtofAppealupheld the trial court’s granting of the Motion explaining that the attorneysAssociation’sdidnotoffer any evidence of a legislative intent to exclude prelitigation fees from an attorneys fees award nor did the Association identify a public policy which would support such exclusion.

The recovery of attorneys fees from an opposing party is a topic of extreme interest to most associations. The majority of the older Covenants, Conditions and Restrictions only provide a right to recover attorneys fees if the parties engage in litigation and do not allow a basis for recovery of pre-litigation fees. However, a recent California case held that attorneys fees incurred by a prevailing party during mediation can be included in the attorneys fee award.

COURT HOLDS THAT THE PREVAILING PARTY MAY RECOVER ATTORNEYS FEES INCURRED IN PRELITIGATION ALTERNATIVE DISPUTE PROCEEDINGSRESOLUTION “…a recent California case held that attorneys fees incurred by a prevailing party during mediation can be included in the attorneys fee award."

By Debra L. Sheppard, Esq.

24 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

The Court reading the plain language of Civil Code Section 1354 stated that two conditions must be satisfied in order to claim attorneys fees: (1) the action must be one to enforce the governing documents and, (2) there must be a prevailing

Debra L. Sheppard, Esq. is the principal of Debra L. Sheppard & Associates APLC, a law firm representing common interest developments for more than 25 years. Also a member of CAI-GLAC’s mediator team, she can be reached at dsheppard@sheppard-law.com.

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 25 CBI – Collins Builders, Inc 18342 Gothard St. Huntington Beach, CA 92648 www.collinsbuilders.com ca license 525783 TOLL FREE 800 699 1644 TEL 714 FAX EMAIL info@collinsbuilders.comWEBcollinsbuilders.com CONSTRUCTION SERVICES DESIGN BUILD EXPERTS DECK COATING & RECONSTRUCTIONWATERPROOFING&RENOVATIONSTRUCTURALREPAIRSOLUTIONS REMODELING SPECIALISTS HARDI SIDING RATED Quality Construction Since 1959 party. The Court stated that the Grossmans satisfied both conditions to recovering all of their fees. The Court noted that the determination of whether a party is entitled to pre-litigation attorneys fees is the same as with fees incurred in the lawsuit itself, and that is whether or not they are reasonable. The Court discussed the interaction between Civil Code Section 1354 and Civil Code Section 1369.510 to 1369.590, which requires that a party participate in alternative dispute resolution (ADR) prior to filing a lawsuit to enforce the governing documents. Since ADR is mandatory, the time spent preparing for and participating in ADR is reasonable. Additionally, Section 1369.580 states that a party’s refusal to participate in ADR can affect the amount of attorneys’ fees awarded, promoting a strong public policy toward the use of ADR to attempt to settle disputes. As long as the attorneys fees incurred during the ADR process are otherwise reasonable, they may be recovered as part of the attorneys’ fees awarded to the prevailing party in an action to enforce the governing documents.

Q: WHAT TYPE OF COMMUNITY NEEDS FHA APPROVAL?

Although the level of awareness of the FHA Condo Approval process has increased dramatically, most condominium associations are not FHA Approved. With the recent upswing in the housing market, having your condominium FHA Approved is more important than when the market was down. Condo units that are not approved sit on the market for a longer period of time and have a severely limited buying pool. FHA financing is most prevalent and, if your condo is FHA approved, nearly 100% of potential buyers will be able to purchase it. This gives the seller more negotiating power and helps the condo associations retain higher property values. If it is not FHA Approved, it is estimated that only 30-40% of the prospective purchasers will be able to finance it. Even potential buyers with the ability to utilize a conventional mortgage often look for FHA Approved condominiums. Many savvy buyers know that for potential resale in the future or refinancing options FHA Approval is key. However, with that being said, we still get many calls and questions about the FHA and the approval process. In an attempt to clarify some of the most important issues:

26 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

By Natalie Stewart Since the removal of the Spot Approval process and the overhaul of the FHA Condo Approval guidelines in 2009, condominium owners nationwide have been struggling with the FHA Approval process. While there have been many changes to the guidelines over the past four years, one thing has remained the same—the importance of being FHA Approved. FHA Approval is often not given consideration until a current owner attempts to sell their unit to an FHA buyer, or obtain a reverse mortgage. Being proactive by getting your condo community FHA Approved will save your current owners a lot of time, money and aggravation.

The approval process requires a lot of paperwork. Using a professional service expedites the process and will reduce the

Why FHA Approval Is Important

Q: IS FHA APPROVAL STILL IMPORTANT?

FHA Condo Approval is only necessary for condominiums. Communities that are classified as Planned Unit Developments (PUDs), Single Family Homes (SFR), and Site Condos do not need to go through this process. This concept confuses some realtors and lenders who assume all attached houses are condos, which can lead to many headaches. As an industry professional or homeowner, it is very important for you to know how your community is legally classified. This information can be found in your governing documents.

This question is asked everyday by Board Members, Community Managers and Homeowners. The answer is YES. To understand why, you must first understand what FHA Insurance is. The FHA is not a lending institution; therefore, they do not finance individual loans. They insure loans, which often allows lenders to offer better financing options. When the FHA insures a loan the lender assumes less risk—therefore, they are able to offer lower down payments and closing costs. As a result, the market is open to more potential buyers.

Q: WHY IS THE PROCESS SO DIFFICULT?

Q: OUR CONDO PROJECT IS EXPIRING SOON. IS THERE A QUICK WAY TO KEEP US APPROVED? Quick? No. The FHA does not keep any information on file. The Re-Certification process is virtually the exact same as the initial Approval. In addition, some changes have been made to the guidelines over the past two years, and there could be new issues that need to be cleared up. While these are the questions we hear most often, the FHA recently released some good news for thousands of condominium unit owners. There was a policy regarding Transient Leasing found in the Declarations/CC&Rs of an alarmingly high number of communities. The FHA has decided to allow for a condo association to provide a statement that affirms that there are “no units in the project currently rented for less than 30 days and/or pursuant to the lessor providing any services normally associated with a hotel.” Prior to this change, the only option was to amend the documents, a timely and costly procedure that turned off many Boards from wanting to gain approval. In addition, there are some new changes being made to the popular HECM (Reverse Mortgage) program that are on the horizon. As of October 1, 2013 new rules will be in place. This will likely result in a scramble for lenders to get all the paperwork in to the FHA in a hurry, and will cause some headaches for a few months to come.

amount of work done by the Board and Manager. Most often a Manager or Board Member can get the necessary paperwork together quickly. An experienced FHA submission company should be able to gauge the condominiums eligibility quickly and advise your community on how to proceed efficiently.

Q: WHAT ARE THE DOWNFALLS OF BEING FHA APPROVED?

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 27

Our dedicated experts understand the needs of associations. We can Finance your essential projects, including: Contact Larry 714-864-5171Hooper lhooper@bpop.com Imagine a bank that enhances and protects the financial health of your community association.

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 more than 10 years and can be reached at natalie@fhareview.com.

©2010 A Division of Banco Popular Northassociationbankers.comAmerica. We offer state-of-the-art Lock Box services as well as a full array of other depository services.

There are no true negatives to being FHA Approved. The argument most often heard is that FHA Insured loans give buyers the opportunity to purchase using low down payments, which increases the risk of foreclosure. While this statement is potentially true, the FHA has raised its standards over the past few years. The reality is that 5-7 years ago there were sub-prime loans being given to people a single day out of bankruptcy, or to individuals with low credit scores. These were the “bad loans” of the past that caused the real estate crisis. The FHA Insured loans of today are actually helping with the overall health of the real estate market.

28 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter JUDY REMLEY, Vice President 2797 Agoura Rd., Westlake Village, CA 91361 (888) 539-9616 www.FirstBankHOA.comJudy.Remley@fbol.com Specialized banking for community associations & management professionals ASSOCIATION BANK SERVICES NoNoNoShirt,Shoes,EducationSchoolOperationBell OPERATION SCHOOL BELL (OSB) PROVIDES NEW SCHOOL CLOTHES TO NEARLY 5,000 LOS ANGELES UNIFIED SCHOOL DISTRICT STUDENTS FROM IMPOVERISHED CIRCUMSTANCES. BY WORKING WITH THESE CHILDREN, THIS PROGRAM IMPROVES SCHOOL ATTENDANCE, PROMOTES LEARNING AND ENHANCES SELF-ESTEEM.

OSB on Wheels is our fully outfitted 53′ trailer which travels to a school site once a month. The trailer’s modern layout with private dressing areas are designed for the purpose of outfitting students in a safe and friendly environment. The one-on-one attention the youngsters receive from our caring volunteers helps build self-confidence and makes a visit to OSB a happy experience.

Children with special needs, or those needing plus-sized clothing, can also be accommodated.

Each child aboard OSB on Wheels receives the following new AAitems:jacketpairof new athletic shoes

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 29

The school is selected based on certain criteria: proximity to OSB/Hollywood, ability of school personnel to bring students into our Hollywood facility, or number of students in need of service.

Specializing in: Exterior Painting & Waterproofing of Condominium Complexes, Apartment Buildings, Office Buildings & Large Commercial Buildings Fax: 661-268-0900

F or the past forty-seven years, volunteers for Anne Banning Auxiliary (ABA) of Assistance League of Los Angeles have given underserved and at-risk children new clothing to wear to school through OSB. Volunteers provide well-fitting shoes, uniforms, jackets, grooming kits, backpacks and school supplies, offering students a greater chance to succeed.

OSB on Wheels delivers powerful support, bringing clothing and supplies to upwards of 200 children per day. When you consider that it takes one school counselor a full year to bring 60 children into the OSB/Hollywood facility, OSB on Wheels is an efficient response to children in extreme need — and gets them back to their classroom in a fraction of the time needed for a visit to our Hollywood location.

This is the second year that CAI-GLAC has supported Operation School Bell because we believe in OSB’s mission and, as a community-based organization, we endeavor to give back to communities whenever possible.

Pictured with school supply donations are Miranda Legaspi (Platinum Security), Ashley Garrison (ValleyCrest Landscape Maintenance), Joanne Peña (Horizon Management Company), Nathalie Ross (Adams Kessler PLC) and Committee Chair Meigan Everett (Gold Coast Property Pros).

Our thanks to the CAI-GLAC Community Outreach Committee for organizing this school supplies drive.

Five pairs of socks Five sets of underwear Polo SchoolAAASchoolshirtsuniformsgroomingkitbackpackdictionarysupplies& a book

30 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter Accurate Termite & Pest Control Adams Kessler, PLC Adco Roofing & Waterproofing, Inc. Alante/MCS Insurance Services AMS Paving, Inc. Angelo Termite & Construction Co. Animal Pest Management Services, Inc. Artistic Maintenance, Inc. Association Lien Services Association Reserves, Inc. Beaumont Gitlin Tashjian Cardinal Property Management AAMC/ACMF California Sub-Meters CertaPro Painters, Ltd. CommerceWest Bank Design Build FentonEpstenElliotDunn-EdwardsAssociatesCorporationKatzovitzInsuranceAgencyGrinnell&Howell,APCGrantMayfieldKaneda&Litt, LLP Fiore, Racobs & Powers Firstline Security Services Flood GothicProGrounds Management Hughes Reserves & Asset Management The Inspectors of Election, LLC Jon Wayne Construction and Consulting LaBarre/Oksnee Insurance Law Offices of Michael A. Hearn McIntyre Law Group The Miller Law Firm Mutual of Omaha Bank – Community Association Banking & CondoCerts Nautilus General Contractors, Inc. Nelson Paving & Sealing PCW Contracting Services The Perry Law Firm Pacific Premier Bank Pacific Western Bank Park West Landscape Management Popular Association Banking PrimeCo Painting & Construction Richardson Harman Ober PC Roseman & Associates, APC SAX Insurance Agency SBS Lien Services Scott English Plumbing, Inc. Seacoast Commerce Bank ServiceMaster AAA Restoration Sherwin-Williams Company Timothy Cline Insurance Agency, Inc. Union Bank Homeowners Association Services ValleyCrest Landscape Maintenance WICR, Inc. Waterproofing & Decking EXHIBITORS CAI LEGAL FORUM: California Communities EVENT SPONSOR Antis Roofing & Waterproofing Tote Bag Seacoast Commerce Bank United Paving Company, Inc. Cocktail Reception Tuff Kote Systems International Parking DeNichilo & Lindsley LLP Firstline Security Services Hughes Reserves & Asset Management LaBarre/Oksnee Insurance ServiceMaster Total Restoration

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 Anyoneindustry.wholives 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.

LAURA V. KWIATOWSKI, ESQ., LAW OFFICES OF LAURA KWIATOWSKI; DAN NORDBERG, ESQ., NORDBERG | DENICHILO, LLP AND ROBERT A. FELIX, CMCA®, LSM, PCAM®, RS, INNOVIA CMC®

*CCAL member CONTINUED ON PAGE 32

COMMUNITY MANAGER EDUCATION PROGRAM Are You Ready for the Arbitration Arena? In light of recent court decisions and significant court funding cutbacks, are you prepared to address arbitration with your associations? Do you understand the arbitration process? Should an association agree to an arbitration provision in a contract? Should associations consider amending out arbitration provisions in CC&Rs? This session moves beyond the introductory level to cover comprehensive arbitration issues related to association enforcement, contractual disputes and CC&R provisions.

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 WithCalifornia.almost

SANDRA L. GOTTLIEB, ESQ.,* SWEDELSONGOTTLIEB AND JERRY STORAGE, CMCA®, AMS®, PCAM®, PROFESSIONAL COMMUNITY MANAGEMENT

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

Association Lawsuits and the Manager: Navigating the Twists and Turns Lawsuits involving HOAs, such as personal injury/property damage claims and enforcement actions, are increasing. Such actions can take up significant time and energy for the manager. We will walk you through a typical lawsuit and the manager’s role—from the association’s learning of the claim/lawsuit to notifying the insurance carrier, advising and guiding the board, manager deposition, potential cross claims between the management company and the association, indemnity and exculpatory clauses in the management contract and more. This is not an introductory course, but rather an in-depth look into the litigation process and a manager’s duties and responsibilities.

KEYNOTE SPEAKER: DAWN M. BAUMAN State of the Industry CAI offers a comprehensive picture of the industry informed by community association volunteer leaders, professional managers, community management firms and other professionals and companies that provide products and services to associations, as well as Legislative Action Committees that support responsible governance. Hear about the challenges, opportunities and trends affecting community associations and their management professionals.

Dawn M. Bauman, CAE, Senior Vice President, Government & Public Affairs, Community Associations Institute

Balancing the Three S’s: Safety, Security and Surveillance Are you often placed in the position of responding to owner concerns regarding safety, security and emergency preparedness? Is there an expectation that residents in common-interest developments are protected from criminal activity? This session addresses balancing the desire to provide safety and security against exposing boards and associations to liability. Examine cases regarding foreseeability with respect to third-party criminal acts, and gain tips for dealing with threats between homeowners and against board members. In addition, hear practical suggestions for emergency preparedness and response plans.

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 31

Hoarders, Smokers & Harassers, Oh My! Associations today are increasingly faced with complicated nuisance issues and evolving trends including hoarding, second hand smoke as a health and nuisance concern and harassment of association employees/contractors. Due to state laws, local ordinances and California city and county requirements, an individual’s right to privacy, fair housing considerations and potential exposure for legal and financial liability, managers and boards of directors need to be prepared to address these complex (and often thorny) nuisance issues. This thought-provoking program will be the starting point for associations to develop “next level” nuisance policies and practices.

LAURIE S. POOLE, ESQ., PETERS & FREEDMAN LLP; AMY K. TINETTI, ESQ., HUGHES GILL COCHRANE PC AND OLGA MENENDEZ-RONCAL, SURE PATH EMERGENCY SOLUTIONS

DAVID A. LOEWENTHAL, ESQ., LOEWENTHAL, HILLSHAFER & CARTER LLP AND RUTH CEDERSTROM, PCAM®, CONCORD CONSULTING & ASSOCIATION SERVICES INC.

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.

HOMEOWNER EDUCATION PROGRAM

There Must Be Another Way: Resolving HOA Disputes Without Litigation… Beyond Mediation and Arbitration Considering the high cost of, the difficulty of access to, and the limited remedies available through the court system, this session explores binding alternatives to full-blown litigation for boards and owners that can save time and money. Learn about solutions other than mediation and arbitration, including summary remedies, which are available through small claims and superior courts. Discuss the use of judicial reference services in lieu of arbitration, and theoretical solutions, such as an administrative process to deal with a broader range of issues confronting associations and their members.

If you missed this at the chapter level or just want to make sure you’re ready, this program provides another chance to learn about the new codes, new costs and important changes to the DavisStirling Act before these revisions take effect on January 1. You will also get a better understanding of the “whys and wherefores” of the rewrite so you can communicate to your board and community how it impacts them and why compliance is so important. There will be an open Q&A period following the presentation.

32 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter

Sometimes it’s not enough just to do what seems right. An innocent mistake, or even a well intentioned act, can expose board members and their associations to claims and lawsuits. Directors face ever-increasing legal requirements imposed by the Davis-Stirling Act, the Corporations Code and the courts. Learn how to identify ethical issues and how to deal with them in a practical way. This session provides real-life examples of ethical issues and the legal way to respond to them.

MARY GOODHUE DEUTSCH, ESQ., DEUTSCH & ASSOCIATES AND STANLEY FELDSOTT, ESQ., FELDSOTT & LEE

Board Member Ethics: A How-To Manual for Directors

ADRIAN J. ADAMS, ESQ., ADAMS KESSLER PLC AND STEVEN A. ROSEMAN, ESQ., ROSEMAN & ASSOCIATES APC

of experts about your community’s legal issues. JANET L.S. POWERS, ESQ.,* FIORE, RACOBS & POWERS; KELLY G. RICHARDSON, ESQ.,* RICHARDSON HARMAN OBER PC; RICH NEULAND, ESQ.,* NEULAND & WHITNEY APC AND STEVEN SHUEY, PCAM®, PERSONALIZED PROPERTY MANAGEMENT CO. CONTINUED FROM PAGE 31 CAI Legal Forum: California Communities National Corporate Member of Community Associations Institute CACM Affiliate Member How will you fund your next community project? Get the job done right with the Community Association Loan toolkit. You’ll get custom financing that’s perfect for your budget and your community. Your Community Association Loan toolkit includes: Get the cash you need today. Lisa Ann Rea VP/Regional Account Executive lisa.rea@mutualofomahabank.com805.907.8452 Community Association Loans All the right tools for your next project. *CCAL member

Ask the Attorneys Get your questions answered by some of the very best association attorneys. This popular session offers you the opportunity to ask a panel

CLINT ATHERTON, CMCA®, AMS®, PCAM®, WESTCHESTER BAY HOA/SEAGATE LAGOONS ASSOCIATION; JOHN R. MACDOWELL ESQ., FIORE RACOBS & POWERS AND NATHAN R. MCGUIRE, ESQ., NEUMILLER & BEARDSLEE

The Davis-Stirling Act Has Changed: Be Ready for 2014

ADVANCED

Reasonable

Handling Bad-Boy Board Members and Out-of-Bounds Owners Sticky disciplinary situations and due process “gray areas” challenge even the most experienced community association managers and boards. From the censure and removal of directors to the risky pitfalls of failing to dot the i’s and cross the t’s of disciplinary due process requirements (and more), this session addresses how to deal effectively with some of the most awkward, yet oh-so-frequent scenarios involving difficult board members and owners.

Continuing Education Units (CEUs) for professional credentials, including CMCA, AMS, PCAM and LSM, are awarded for attendance at the CAI Legal Forum: California Communities. Visit www.caionline.org/education for *CCALdetails.member

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 33

Experience professional delinquentrecovery.assessment EDUCATION PROGRAM Accommodations 2.0 Pets + People + Parking = Problems! Since this topic was the most popular session last year, we are bringing it back with new content and different scenarios to help you further understand and navigate the complex laws covering discrimination claims and requests for reasonable accommodations. Be ready for a lively discussion of “believe it or not” cases that will help you and your communities deal with various situations and avoid liability.

JEFFREY A. BEAUMONT, ESQ.,* BEAUMONT GITLIN TASHJIAN; TRACIE BLANKENSHIP, CMCA®, AMS®, PCAM®, FIRSTSERVICE RESIDENTIAL AND CHARLES R. FENTON, ESQ., FENTON GRANT MAYFIELD KANEDA & LITT LLP

ROBERT M. DENICHILO, ESQ., NORDBERG | DENICHILO, LLP AND SUSAN M. HAWKS MCCLINTIC, ESQ., EPSTEN GRINNELL & HOWELL APC

Disclosure: Know When to Hold ‘Em, Know When to Walk Away, Know When to Fold Explore what can and should be disclosed by board members, management and vendors and how far matters can and should be disclosed. Discuss a variety of disclosure scenarios requiring some form of action, including escrows, disciplinary actions, communications with third parties (non-owners), special assessments, lender/realtor inquiries, pending claims and more. The session also includes an outline of best practices for managing risk created by the disclosure of information.

LINDA HEALEY, PCAM®, THE CALIFORNIAN ON WILSHIRE HOA; AND MATT D. OBER, ESQ.*, RICHARDSON HARMAN OBER PC

34 www.cai-glac.org | September/October 2013 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME AS OF SEPTEMBER 15, 2013 BUSINESS PROFESSIONALS RECRUITER 3M Corporation CAI National Critter Busters, Inc. CAI National Finley Tree and Landscape, Inc. Joanne Pena, CCAM®, CMCA®, AMS®, PCAM® MANAGEMENT COMPANIES International Realty & Investments CAI National COMMUNITY ASSOCIATIONS The Collection at Downtown Burbank Karen CCAM®,Kokowicz,CMCA®,AMS®, PCAM® Mendocino Villas Homeowners Association CAI National Palos Verdes Bay Club, Inc. CAI National COMMUNITY MANAGERS Cathy Hammond Brad Watson, CMCA®, AMS® Property Management Professionals, LLC Eric John O’Neil Ron Prechtl Prellis Property Management Evelyn Polizzi Tina Chu, Esq. Joan Ring CAI National COMMUNITY ASSOCIATION LEADERS Steven Holston Angelique Madrigal 2013 Recruiters of the Month JANUARY April Tronson Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley FEBRUARY Annette Abernethy Pacific Western Bank MARCH Shanne Ho, CCAM®, PCAM® Seabreeze Management Company APRIL Ray Echlin Behr Paint Corporation MAY Michelle Urbina Dunn-Edwards Corporation JUNE Kelly G. Richardson, Esq. Richardson Harman Ober PC JULY Brad Watson, CMCA®, AMS® Property Professionals,ManagementLLC AUGUST Karen Kokowicz, CCAM®, CMCA®, AMS®, PCAM® Coro Community Management & Consulting

CAI-Greater Los Angeles Chapter September/October 2013 | www.cai-glac.org 35 BUSINESS PROFESSIONALS Action Duct Cleaning Company American Heritage Landscape Antis Roofing & Waterproofing City National Bank Creighton Tevlin, CPA DM Construction Services Eagle Roofing Products Ferris Painting, Inc. FHA GothicReviewGrounds Management Hickey & Petchul, LLP Integrated Risk Management Jackson Insurance Services John R. Sinner Insurance Agency, Inc. Nautilus General Contractors, Inc. Performance Elevator Contractors, Inc. Prendeville Insurance Agency Qwik Response Restoration & RobertRick’sConstructionRainGuttersW.LittleInsurance Agency, Inc. Sandra Macdonald Insurance Silldorf & Levine, LLP Stay Green Inc. TJS Services, Inc. U.S. Bank Van Dijk & Associates, Inc. COMMUNITY ASSOCIATIONS 4230 Stansbury Association, Inc. Beverly Hills at Doheny Keith HOA Breakers at Del Amo HOA Harbor Gate HOA Pinon Springs HOA Renaissance HOA Summerwind HOA Tierra Verde V HOA Wilson Summit HOA COMMUNITY MANAGEMENT COMPANIES Berro CammarataManagementManagement, Inc. Campion and Company Coro Community Management & Consulting FirstService Residential Harris ParagonPropertiesProperty Management Group, LLC Prellis Property Management SK Management Company, LLC COMMUNITY MANAGERS Ben Bar, CMCA® EHM/Association Property Management Ermias Berhanu, CCAM® Park Plaza HOA Nancy Brown Studio Village HOA Karen Dubose, CMCA®, AMS® Action Property Management Dirk Foster, CCAM®, CMCA®, AMS®, PCAM® Two Eleven Spalding Condo Association Catherine Gemind, CMCA®, AMS®, PCAM® Sharon Hanson, CMCA®, AMS®, PCAM® Regatta Seaside HOA Mayra Gomez EGL Properties, Inc. Debra McGary, CCAM® Horizon Management Company Julie Nicholson, CMCA® Empire West HOA Elizabeth Orellana Rockpointe HOA Kristen Raig, CMCA®, AMS® Rolling Hills COA Richard Strober Collinwood AssociationCondominium Gerry Suenram, CCAM®, PCAM® EVO HOA Laurel Sylvanus Ontrack Asset Management Victoria Wylie Pabst, Kinney & Associates, Inc. Lisa Yoo EGL Properties, Inc. TO RENEWING MEMBERS! OUR THANKS AS OF AUGUST 31, 2013

36 www.cai-glac.org | September/October 2013 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 SizeAd DimensionsMembersNon-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. ADVERTISERS INDEX 21 Animal & Insect Pest Management, Inc. 25 Association Reserves, Inc. 26 Berg Insurance Agency 32 Cacho MaintenanceLandscapeCo.,Inc. 5 Centurion Group 25 Collins Builders, Inc. 15 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 33 Ferris Painting, Inc. 28 First Bank 36 First Bank 34 Gayle G. Gould, CPA 28 Milstein Adelman, LLP 32 Mutual of Omaha Bank/ CondoCerts 36 Poindexter & Company, CPAs 27 Popular Association Banking 34 Preferred Commercial Painting 7 Ross Morgan & Company, Inc. 20 R.W. Stein Painting, Inc. 27 Reserve Studies Inc. 23 Sandra Macdonald Insurance 14 Seacoast Commerce Bank 29 Select Painting 11 SwedelsonGottlieb 35 Timothy Cline Insurance Agency, Inc. 13 Union Bank 33 Witkin & Neal, Inc. 2013 UPCOMING EVENTS OCTOBER 2013 02 San Fernando Valley HOA Marketplace – 5:30 p.m. Marriott Hotel, Woodland Hills 11 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 18 CAI State Legal Forum – 8:00 a.m. Irvine Marriott Hotel, Irvine 23 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, Los Angeles 30 Valencia Educational Breakfast for HOA Boards and Managers –8:30 a.m. Bridgeport HOA Clubhouse, Valencia NOVEMBER 2013 02 Casino Night – 6:00 p.m. Hollywood Roosevelt Hotel, Hollywood 07 San Gabriel Valley HOA Marketplace – 5:30 p.m. Location TBD 12 Westside Evening Program for HOA Boards and Managers –8:30 a.m. Regatta Seaside HOA, Marina del Rey 15 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 16 Essentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, Marina del Rey 20 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, Los Angeles DECEMBER 2013 16 Holiday Happy Hour – 4:00 p.m. Bel Air Crest Master Association Clubhouse, West Los Angeles 13 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

The arecognizedmembrandomd GRAND PRIZE ( Member wi the Grand P those MembersPointsnamewillae SLI Par THREE CONTESTS … THREE PRIZES Help BUILD CAI-GLAC And Reward Yourself by Recruiting New Members in 2013 AMARR Studios, Inc. GRAND PRIZE 3-day/2-night Weekend Getaway Concrete Hazard SolutionsDM Construction Services Ronald S. Stone, CPA PhD City National Bank Professional Services Construction, Inc. Popular Association BankJenkins Properties Management Co., Inc. Ross Morgan & Company, Inc. Mulholland Security Centers, Inc.

Have you just been elected to your board of directors or are contemplating running for a board seat? You can now access our Community Leadership Series online by subject. Learn the basics that you need to govern your community association more effectively and efficiently — anywhere at your own pace and time. From the time you register online, you will have two weeks to view the class. If you are unable to finish it in one sitting, you can log back in anytime within the two-week period through your account in the Members Only area. Chapter Introduces Online Learning for Community Association Boards and Managers! Classes are available to CAI-GLAC members and non-members. $25 for chapter members $35 for non-members Modules Online Fiduciary Duties and Responsibilities Steven A. Roseman, Esq., Roseman & Associates, APC Rules and Regulations: Adoption & Enforcement Kelly G. Richardson, Esq., Richardson Harman Ober, PC Learn more and register now at www.cai-glac.org 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 Order Your 2013 Condominium Bluebook Today! Price: $26.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org. OP