Focus Magazine - March/April 2014

Focus L.A.’s Premier Source of Information for Community Associations SAVE THE DATE: Ponies, Prizes & Play Santa Anita Park May 31 March/April 2014 Navigating the 2014 California Drought All Shook BeStrengthensEarthquakeUp?PreparednessCommunityTiesPrepared

• Meet & Greet • HOA Industry Experts on hand • HorsComplimentaryd’oeuvres • Opportunity to Win $100 Cash Prizes during Meet & Greet • Raffle Prizes CAI-Greater Los Angeles Chapter Presents DoubleTree by Hilton Hotel Torrance – South Bay 21333 Hawthorne Blvd. • Torrance, CA 90503 Admission and Self Parking is complimentary for HOA Board Members and Managers Reservations – HOA Board Members & Managers: Complimentary* *HOA Member Guests will pay a discounted price of $20 per person for dinner Please RSVP before April 26 — Dinner Capacity Limited • Online: www.cai-glac.org • E-mail: joan@cai-glac.org • Phone: 818-500-8636 • Fax: 818-500-8638 EVENT SPONSORS Elliot Katzovitz Insurance Agency, Inc. General Pavement Management, Inc. International Realty Investments Popular Association Banking Rose Paving Company, Inc. GRAND PRIZE SPONSOR Accurate Termite & Pest Control 5:30 p.m. Meet & Greet Industry Service Providers 7:00 p.m. Dinner with PresentationEducational marketplaceassociationhomeowners cinco deThursday,mayoMay 1, 2014 FEATURING AGAINSCHEDULETHIS YEAR! you are invited! Complimentary Dinner with Education Presentation, following Meet & Greet for HOA Boards & Managers

Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Management 310-543-1995 Lotane, CCAM®, PCAM®, Treasurer Wilshire 310-446-5333

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

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 1 NEWSWORTHY 4 Navigating the 2014 California Drought 12 Successful Ingredients to Redesign & Redecorate Common Areas 14 Lien Collection in Bankruptcy: Charge Ahead, Don’t Charge Off 18 An Opportunity For Recovery In Difficult Economic Times 22 NEWS FROM SACRAMENTO 24 All Shook Up? How to Prepare for the Next Big One 26 Earthquake Preparedness Strengthens Community Ties CHAPTER UPDATE 2 Note From the Editor’s Desk 3 News from the Executive Director NOTEWORTHY 3 Essentials of Community Leadership Workshop 16 PCAM® Designees Gather FYI 30 CAI-GLAC Membership News 32 2014 Upcoming Events 32 Advertisers Index 32 Advertising Information 33 CAI-GLAC's 2014 Membership Recruiter Contests 2014 BOARD OF DIRECTORS OFFICERS

Condominiums,

PCAM®, The Californian on Willshire PUBLIC RELATIONS TBD PUBLICATIONS

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

Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.

Jolen Zeroski, CMCA®, Union Bank Homeowners Association Services

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

issues.

opinions

Pamella De Armas SAX Insurance Agency, 310-740-4274

Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280

articles.

Joan Urbaniak, MBA, CMCA®

Matthew Grode, Esq.,

Stay Green Inc. MEMBERSHIP TBD MEDIATION SERVICES

Richardson Harman Ober PC Membership Directory Stephen

SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, Wilshire Regent HOA Angel Fuerte, FRESHCO Painters, Inc.

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

Richardson

WINE NIGHT Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company

Park May 31 On the Cover The Californian on

Los PhotoAngelescourtesy

This publication seeks to provide CAI-GLAC’s membership with information on community association Authors are responsible for developing the logic of their expressed and for the authenticity of all facts presented in CAI-GLAC does not necessarily endorse or approve statements 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 © 2014. All rights reserved. Reproduction in whole or in part without written permission is prohibited. CAI is a national, not-for-profit association created in 1973 to educate and represent America’s residential community association industry. Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Office: 818-500-8636 Fax: 818-500-8638 Anita Wilshire of Victor Mariscol

SATELLITE PROGRAMS

CHAPTER EXECUTIVE DIRECTOR

statements.

National

Horizon

Beaumont Gitlin Tashjian MARKETPLACE Alan

Linda Healey, CCAM®,

Matthew Gardner, Esq., Harman Gardner, Esq., S. Grane, Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association

Action Property Management FINANCE Jolen

Gibbs, Giden, Locher, Turner & Senet, LLP PROGRAMS/LUNCHEONS

Bank HOA Services GOLF TOURNAMENT

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Lisa Tashjian, Esq. Beaumont Gitlin Tashjian, 866-788-9998

LEGISLATIVE ACTION

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STAY CONNECTED: SAVE THE DATE: Ponies, Prizes & Play Santa

DIRECTORS Carol Brockhouse, DonaldCoastManagement.netAMS®Campbell,CCAM®,CMCA®,

Company,

Gerry Suenram, CCAM®, PCAM®, Zeroski, CMCA®, Union

The

Robert Ridley, Esq. Castlegate HOA, 213-626-0291 Lynn WarnerRugerClub Villas HOA, 818-703-7090

Lisa Tashjian, Esq., Denison,

Ober PC FOCUS Magazine Matthew

Pros EDUCATION

Meigan Everett, CMCA®, PCAM®, Gold Coast Property

2014 COMMITTEE CHAIRS COMMUNITY OUTREACH

R.W. Stein Painting, Inc. S.B.S. Lien Services

The most recent round of earthquakes in Southern California seemed to catch everybody by surprise. Darlene Kimbell of State Restoration Inc. brings us back to reality with those basic guidelines for earthquake preparedness.

TimothySwedelsonGottliebClineInsurance Agency, Inc.

Action Duct Cleaning Cleaning Co., Inc.

FRESHCO Painters, Inc.

2014 SuperCAI-GLACSponsors PLATINUM Accurate Termite & Pest Control Fenceworks, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, HiGuard-Systems,Inc.Inc.TechPainting&Decorating, Inc. Pacific Western Bank Payne Pest Management

Steven G. Segal Insurance Agency, Inc.

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. what they are missing. Attorney Mark Garber revisits some bankruptcy basics and offers insights on how associations should address the balances left behind. Even as the economy slowly improves, associations continue to struggle with the after-shock of delinquencies. Even more frustrating can be those delinquent owners who have tenants paying rent. Attorney Brian D. Moreno lays out the issues for associations dealing with delinquent rentals and proposes alternative approaches to attempt payment, including the assignment of rents.

Associations that try to spruce up the common area often make improvements during the spring. Linda Healey shares her redecorating tips as general manager of The Californian on Wilshire, and offers some guidance on how to avoid the typical issues that trip up the projects.

CommerceWest Bank

2 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc.

Neda Nehouray uses the recent earthquake experience to remind us how communities can benefit from facing challenges. By working together on common goals, owners can rediscover the sense of community and purpose that is the foundation of your Pleaseassociation.takeamoment to review these articles, and use these tips from the pros to take the sting out of the spring season for your community.

Reserve Studies Incorporated SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc.

Union Bank HOA Services GOLD Adco Roofing and Waterproofing AIPM, Inc.

NOTE

BRONZE Accell Property Management, Inc., AAMC

S

Mission Landscape Services Poindexter and Company, CPAs Richardson Harman Ober PC Rose Paving Company, Inc. Silldorf & Levine, LLP South Shore Building Services, Inc.

Popular Association Banking Preferred Commercial Painting, Inc.

SILVER A.ALLBRIGHT 1-(800)-PAINTING Association Reserves, Inc. Beaumont Gitlin Tashjian Berg Insurance Agency, Inc.

ValleyCrest Landscape Maintenance Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

— Matthew Gardner,EditorEsq.

California Waters Critter Busters, Inc. General Pavement Management, Inc. Marina Landscape, Inc.

FROM THE EDITOR’S DESK

The Termite Guy & IRC Services Three Phase Electric We thank our 2014 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.

Best Alliance Foreclosure & Lien Services

Stonemark Construction Management

Bankruptcy is a challenging maze for even the most experienced managers and directors. Those associations who are quick to write off debts after bankruptcy may be surprised to find

Select Painting

International Realty & Investments MeterNet Sub-Metering & Billing Solutions

PRING SHOULD BE THE TIME to emerge from the winter gloom and look forward to the beauty of the outdoors. Living in California means that isn’t always as easy as it seems. It is also time to get ready for all the other joys of springtime, from cleaning to maintenance demands. Eric Santos and Richard Restuccia from ValleyCrest Landscape Maintenance tackle the issue of water usage. With the latest drought figures, associations will need to re-evaluate what they plant and how they allocate their water for common area landscaping. Valleycrest tells associations and managers what to look for in an efficient system, and suggests some ways to cut costs.

California Safety Agency Cardinal Property Management, AAMC/ACMF CBI-Collins Builders, Inc.

Joan ExecutiveUrbaniakDirector

To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636. Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 323.254.9526 for a Workshop schedule. The location varies - if you can guarantee 10 attendees, we’ll come to your association! Have You Just Been Elected to Your Board... Or Are Contemplating Running for a Board Seat? CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 3

GoTBDLocation:towww.cai-glac.org for more details and registration. RegattaLocation:Seaside HOA, Marina del Rey Go to www.cai-glac.org for more details and registration.

AS YOU KNOW, educating both community managers and boards of directors is one of our primary missions. I am very pleased that more managers than ever before are obtaining their Certified Manager of Community Associations (CMCA®) certification. We are also seeing record numbers of HOA board members registering for our Essentials of Community Leadership Workshops, thanks to our manager members and community leaders who have either attended a Workshop or heard great things about it from others. Knowledge really is power in our industry. Our courses lay the groundwork and help answer the basic questions so that managers can provide the necessary guidance to their boards and board members can run their community’s operations effectively, efficiently and equitably.

I would like to remind you that we do offer four individual modules of our Essentials of Community Leadership Series online for those with busy weekend schedules. For a nominal fee, you can learn about Rule Enforcement, Fiduciary Duties and Responsibilities, Reserve Funding and Insurance. If your board’s insurance policy is coming up for renewal, why not encourage your board members to watch the Insurance module in advance so that you all have the same basis of knowledge before looking at your association’s specific policy. The Reserve Funding module describes reserve studies, defines what “percent funded” means and addresses the disclosures necessary to meet legal requirements. This module may be a good refresher for your board in advance of ordering the reserve study. We also suggest that you invest in those who are new to your board by encouraging them (or possibly requiring them) to watch the Series. Giving a new board member this basic knowledge may save hours of basic orientation. Visit our Web site at www.cai-glac.org to learn about all of our educational offerings. We are constantly creating new programs to provide you with useful tools and resources.

NEWS

FROM THE EXECUTIVE DIRECTOR isKnowledgePower

$80/Member;Cost: $100/Non-member Next Saturday,Class:July 19, 2014 Approved by Department Real a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 818.500.8636 for a Workshop schedule. The location varies — if you can guarantee 10 attendees, we’ll come to your association!

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

Consider EfficiencyHigh-Nozzles and Pressure Regulation. High-efficiency nozzles are designed to apply water with more uniform coverage at low application rates which minimizes the potential of runoff. When coupled with pressure-regulated sprinklers, irrigation efficiencies can improve by 20%. Remember that even though highefficiency nozzles apply water more efficiently, they do so at low application rates which require slightly longer runtimes.

4 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

TIPS TO MEET 20%30% RESTRICTIONSMANDATORY Use SchedulingAdvancedPractices. Advanced techniques such as programming smart irrigation controllers with short runtimes and multiple-cycle starts, commonly referred to as “cycle and soak” allows water to infiltrate the soil while minimizing runoff. By reprogramming a spray zone to run for four minutes with two start times instead of one long 10-minute runtime you can easily reduce watering by 20% by reducing runoff. Use the Smarts of a Smart Controller. Smart controllers are designed to apply precise amounts of water to the landscape by modifying watering schedules on a daily basis. They can typically consumptionreduceby15% to 20% in comparison to conventional controllers. Before additional percentage reductions are applied to smart controllers, please be aware that this will highlight areas of weak irrigation coverage resulting in slight visual signs of landscape stress.

Amid timecertainwateringmightintomaycitiesthisuseCalifornians17,emergencyofficiallyGov.driestCalifornia’syearonrecord,JerryBrowndeclaredadroughtonJanuary2014.Heaskedalltoreducewaterbyatleast20%.Whileisvoluntary,manylocalandwateragenciesdecidetotakemeasurestheirownhands.Somedecidetobanoutdoororallowitondaysonly.Nowisthetoputtogetheraplan that keeps your property looking its best while conserving water. There are a few things your landscape provider can do to lessen the impact of the drought and help you use the water you do have more efficiently. Understanding your local water district’s outlook and response to the recent drought declaration is the first step to manage the situation. Some water districts will one-day-per-weekimplementwatering restriction; some will call for 20% mandatory reductions, while others will simply suggest voluntary Onceconservation.yourlocal water agency’s policy is clearly understood, your landscape provider will need to understand your community and what role the landscape plays. Each HOA is unique and may have different priorities that your landscape provider must understand so that they can satisfy needs and Thereexpectations.aremany positive things that havecommunityCaliforniamanagersbeendoingalready to manage their water wisely and achieve their goals and objectives under the current restrictions implemented by their water agency. The following are tips on how to deal with watering restrictions and mandatory watering reductions.

Navigating the 2014 By Eric Santos and Richard Restuccia

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 5 RESIDENTIAL OUTDOOR • Cutting back irrigation schedules • Drought tolerant plants • Irrigation equipment upgrades • Cash for Grass • New settingscontrollers"weather-based"ondrought California Drought Check Regularly.ConsumptionOperationSystemand During a drought, since catching problems early is vital, frequent irrigation inspections are recommended. Tracking water consumption is an important part of any water management program because it allows your landscape provider to chart usage and proactively make adjustments to controller schedules. Utilization of a flow meter is a great way to monitor consumption and catch abnormally high flows which can indicate leaks, breaks or equipmentmalfunctioninginthesystem. Replace Turf with Low Water Use Plantings. Turf conversions are an easy way to reduce significant amounts of water. Turf typically requires twice the amount of water required by shrubs. Converting turf to low-water use shrub plantings in difficult-toirrigate areas, such as slopes or narrow strips, not only saves water but makes financial sense. Convert IrrigationIrrigationOverheadtoDrip Replacing overhead sprinklers with low-flow, high-efficiency drip irrigation is an excellent way to save water especially in sparselyplanted shrub beds. When drip conversions are added to turf conversions, water savings can be as high as 60% to 75%. By applying water directly to the plant where it is needed and not to bare soil, water usage is more efficient and runoff is eliminated. Eric Santos is a LandscapewithManagementandLeader,DivisionIrrigationWaterValleyCrest Maintenance and can be reached at esantos@valleycrest.com.RichardRestuccia is Director, LandscapeValleyCrestSolutionsManagementWaterwith Maintenance and can be reached at rrestuccia@valleycrest.com.  Residential  Commercial, Institutional, Industrial  Large Landscape & Other  System Water Loss (leaky pipes) RESIDENTIAL INDOOR CONSCIOUS BEHAVIORS: Repair Leaks (AMI leak notices) • Shut off water • Shorter showers • Full loads, etc. • Graywater UPGRADE EQUIPMENT: • Showerheads•2.5gpm> 1.8 gpm • Faucets•2.2gpm > 1.5 gmp • Clothes Washers • Water Factor 11 > 4.5 • 44 gpl > 15 gpl • Toilets•3.5 gpf > 1.28 gpf Look for the WaterSense Label: gpm = gallons per minute gpf = gallons per flush gpl = gallons per load 60%20%10% TYPICAL10% URBAN WATER DEMANDS CALIFORNIA DROUGHT OUTLOOK

 Snowpack: In much of California, snow pack is less than 50% of normal to date. The snowwater equivalent as of Feb. 1 is the lowest measurement in 32 years of data. Snowwater content is 20% of normal statewide for this time of year.

 Little change expected: NOAA’s Climate Prediction Center indicates drought conditions, already severe, will persist or intensify at least through the end of April.

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 Government action: On Jan. 17, 2014, Gov. Jerry Brown declared a drought State of Emergency for California, as the state was experiencing its driest year in recorded history.

 Intensification of drought: More than 65% of the state is in extreme (D3) or exceptional (D4) drought. None of California was at either level a year ago. At the beginning of 2014, none of the state qualified for the most severe level of drought (D4). Currently more than 14% of the state is at D4 level.

 Affected areas: More than 94% of California is experiencing some level of drought conditions, about the same level as the start of the year. This compares to 47% a year ago.

 Current conditions: Almost 85% of the state is undergoing drought conditions to some degree. The rest of the state is “abnormally dry,” according to the U.S. Drought Monitor (see map at left.)

 Recent weather: Six to twelve inches of precipitation fell on parts of central California and the northern Sierra Nevada between Feb. 6-13, the first significant storm since October 1. An average year sees five such events. Subnormal precipitation since 2011 has left large liquid deficits in rivers, lakes, reservoirs, and snow packs as well.

THE ENTIRE WEST COAST OF THE UNITED STATES IS CHANGING COLOR AS THE DEEPEST DROUGHT IN MORE THAN A CENTURY UNFOLDS. ACCORDING TO THE U.S. DEPT. OF AGRICULTURE AND THE NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION (NOAA), DRY CONDITIONS HAVE BECOME EXTREME ACROSS MORE THAN 62% OF CALIFORNIA’S LAND AREA AND THERE IS LITTLE RELIEF IN SIGHT.

“UP AND DOWN CALIFORNIA, FROM OREGON TO MEXICO, IT’S DRY AS A BONE,” COMMENTS JPL CLIMATOLOGIST BILL PATZERT. “TO MAKE MATTERS WORSE, THE SNOWPACK IN THE WATER-STORING SIERRAS IS LESS THAN 20% OF NORMAL FOR THIS TIME OF THE YEAR.” drought Information courtesy of the Toro Group and The National Drought Mitigation Center.

CALIFORNIA DROUGHT OUTLOOK PROPORTION OF LAND AFFECTED BY DROUGHT 53.68%4.62% 5.46%3.72%22.62% ■ D0: Abnormally dry ■ D1: Moderate drought ■ D2: Severe drought ■ D3: Extreme drought ■ D4: Exceptional

INTENSITY OF CONDITIONS AS OF FEB. 20, VIA U.S. DROUGHT MONITOR

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org As pioneers in HOA Management, we are constantly striving to provide the highest quality service to our clients while acting in the most professional and courteous manner; conducting our business with genuine care and regard for the communities we serve. Being one of the biggest has not made us the best; being the best has made us one of the biggest! REPRESENTING HOMEOWNER ASSOCIATIONS THROUGHOUT SOUTHERN CALIFORNIA SINCE 1982: We provide our clients with a full range of services including: • FINANCIAL MANAGEMENT • ADMINISTRATIVE MANAGEMENT • FULL SERVICE HOA MANAGEMENT

8 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter CALIFORNIA DROUGHT OUTLOOK SoCal Water$mart is a region-wide program brought to you by the Metropolitan Water District of Southern California. For more information go to www.bewaterwise.com. Follow these simple steps to participate in the SoCal Water$mart program: Go online to initiate your application and determine the right qualifying product for your home: CompletePurchasewww.socalwatersmart.comaqualifyingproducttheonlinerebateapplication and mail the required documentation within 60 days You will receive your rebate check by mail. Rebates are offered on a first-come, first-served basis and may be terminated without prior notice. Estimate Your Rebate To confirm the rebate available in your district, please visit www.socalwatersmart.com/EstimateYourRebate and in 2 simple steps, you’ll find out how much you can save. IMPORTANT INFORMATION: Only one rebate application per product category, per customer Rebates available while funding lasts. Please check program website for updates on funding status. Required documentation must be postmarked within 60 days of submission confirmation; this includes a copy of your water bill, sales receipt, and a signed rebate application confirmation page Rebate amounts vary by participating water agency and are subject to change without notice Metropolitan reserves the right to verify and inspect rebated devices. If installation cannot be verified, the applicant must reimburse Metropolitan, including all associated processing costs Check the SoCal Water$mart website for program funding updates Save Water, Save Money Rebates are available! www.socalwatersmart.com or call: (888) 376-3314 Save water and money with the following qualified water-efficient products: High Efficiency Clothes Washers High Efficiency Sprinkler Nozzles Rain Barrels Soil Moisture Sensors Smart Irrigation Timers Turf Removal Why conserve? Every drop counts. Choosing water-efficient products helps reduce water consumption. Saving water is easy. Products eligible for rebates enhance performance and make it simple to conserve. Dive Into Savings Homes are the largest urban water users in California, consuming more than 2.2 trillion gallons of water each year—enough water to fill 26,000 Rose Bowl stadiums.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 9 KEY ALL STAR BREAK HOME AWAYEXHIBITIONGAMEGAME KEY HOME GAME AWAY GAME (AUSTRALIA SERIES) AWAY GAME MLB ALL STAR GAME

A: LADWP asks customers to reduce their Tier 1 water use by 15%. All customers get a specific Tier 1 water budget determined by a formula and the type of customer they are -- single family, multi-family, commercial, industrial or governmental. The formula is based upon the amount of hundred cubic feet (HCF) of water provided to each customer at the lower price point, Tier 1. If the customer exceeds the Tier 1 budget, he/she goes into Tier 2 pricing, which is more costly.

ASKED QUESTIONS: SHORTAGE YEAR WATER RATES

A: With shortage year rates, LADWP reduces a customer’s water budget by allotting less water at the cheaper rate, known as Tier 1. Those who conserve will not be penalized. Those who exceed their budgets at the lower water price will see their water bills rise.

The Tier 1 water budget for multi-family, commercial and industrial customers is based on a percentage of the customer’s maximum daily average during winter (December through March) over the past three years, reduced by 15%. The allocation is applied year-round. For multi-family units, the formula is calculated for each individual meter. Commercial and industrial customers’ water budgets work out to be 97.75% of three-year winter high averages.

A: Look at your bill. If you have exceeded your Tier 1 water budget, there will be a line that shows Tier 2 pricing. If there is no reference to Tier 2, you have stayed in your allotted Tier 1 water budget.

A: No. Water rationing means allotting a certain amount of water for each customer and no more. The LADWP is not doing this. The Department has enacted shortage year rates as an incentive for people to save money by cutting their water use. Under shortage year rates, each customer is allotted 15% less water at the lowest price, called Tier 1. If the customer stays 15% or more below this water budget, he/ she will avoid paying more. When the Tier 1 water budget is exceeded, the customer will be subject to Tier 2 prices, which are considerably higher. This “price signal” is intended to encourage customers to conserve water.

Southern California is facing a water supply shortage for the third year in a row. Most of Los Angeles’ water supplies are imported and the sources of this water are impacted by drought and regulatory restrictions. As a result, more water conservation is urgently needed. Under shortage year rates, the amount of water you are able to purchase at the lowest price – indicated on your bill as “Tier 1” – will be reduced by 15%. Customers already conserving 15% below their Tier 1 allotment will not be affected. Customers who exceed the reduced Tier 1 allotment, and go into the more expensive Tier 2, will pay a higher rate for every gallon over Tier 1. These customers will see their water bills rise.

April

First & Second Tier Rates 2014 Tier 1 Tier 2 January $4.695 $5.805 February $4.695 $5.805 March $4.695 $5.805 $4.735 $5.846 May $4.735 $5.846 June $4.735 $5.846 LADWP Multi-Dwelling Residential Water Rates

CALIFORNIA DROUGHT OUTLOOK

Q: WHAT ARE SHORTAGE YEAR RATES?

IMPACT OF SHORTAGE YEAR RATES

10 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

SHORTAGE YEAR WATER RATES

Q: HOW LONG WILL SHORTAGE YEAR RATES BE IN EFFECT? A: Shortage year rates will be in effect until the Board of Water and Power Commissioners determines they are no longer necessary.

Customers already conserving 15% below their Tier 1 allotment will not be affected and those who reduce by more than 15% will actually see their bills go down. Conversely, customers who usually stay within their regular allotment and do not reduce their water use by 15% will pay a higher rate for each gallon they use beyond their new reduced water allotment. Customers who exceed their regular allotment and pay Tier 2 rates routinely, and do not significantly cut their water use under shortage year rates, will see their water bills increase.

Shortage Year: Two or more dwelling units served by one meter Total charges per HCF (HCF = Hundred Cubic Feet, one HCF = 748 gallons) of metered water for Schedule B customers are as follows For more information regarding rate calculation, visit www.ladwp.com

Q: HOW DO I KNOW IF I EXCEED TIER 1?

SHORTAGE YEAR WATER RATES EXPLAINED

MANDATORY WATER CONSERVATIONFREQUENTLY

Q: HOW MUCH DO I HAVE TO CONSERVE TO AVOID BEING PENALIZED?

Q: ARE SHORTAGE YEAR RATES THE SAME THING AS WATER RATIONING?

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 11 Gate #6 - Arcadia, CA Saturday, May 31, 2014 11:30am - 5pm Sponsorships still Available. Visit www.cai-glac.org to sign up for sponsorships for this event $50 per Person includes Food, 1 Drink Ticket, Parking & Handicapper Doors open at 11:30am. Horse Races start at 12:30pm. Fancy Hat Contest - Pick the Pony Live Horse Racing, Games, Raffles, Food, Drinks & more... Join us for Fun, Games & Networking! Ponies, Prizes & Play Pick the Pony Contest Har-Bro Emergency service & Restoration Wristbands The Termite Guy & IRC Services Game CurrentGuard-Systems,BoothsInc.Sponsors

1. Structure a design committee that is small and chaired by a strong, experienced and knowledgeable owner. We had a committee of three women homeowners, all of whom had years of experience building and furnishing beautiful homes. The chair of the committee also had a design business at one time and knew the intricacies of successfully staging a project in a “public area” of this size. She had the confidence of the Board of Directors and the homeowners.

SUCCESSFUL INGREDIENTS TO Redesign & Redecorate COMMON AREAS

4. Select a reasonable fee program. Our designer agreed to a “design fee” plus reimbursement for direct costs as well as for the new items purchased on our behalf, taxes and delivery. This pleased a lot of owners because she did not demand the typical “cost plus 30%” fee structure. (I have always wondered why a decorator or designer would pick a $2,000 chair instead of a $5,000 chair if they were being paid a commission.)

3. Seek approval from the Board of Directors and move forward. The Board members also did not approve or disapprove the designer’s recommendations. They had trust in the committee and the chair. The designer presented the collective vision to the Board, which was accepted by the directors who then gave the project a green light.



For one reason or another, we were never successful at finding someone who was on the same page with us. Whether a design conflict, cost issue or contract deal breaker, we were never able to move the project forward, until last year. At last, we found the perfect ingredients for a successful remodeling/redesign project. Here they are:

By Linda Healey, CCAM®, PCAM®

12 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter ONE OF THE BEST PARTS OF BEING A COMMUNITY ASSOCIATION MANAGER FOR ME HAS BEEN THE VARIETY OF PROJECTS THAT I GET TO MANAGE. THE LIST IS LONG AND COLORFUL, BUT THE ONE PROJECT I HAVE ALWAYS FOUND ESPECIALLY CHALLENGING AND NOT PARTICULARLY ENJOYABLE WAS REDECORATING THE COMMON AREAS. HOWEVER, MY MOST RECENT PROJECT OF THIS KIND WAS GREAT FUN AND WAS A BIG SUCCESS.

2. Empower the committee to select the designer. The committee was empowered to select a designer in whom they had confidence. The committee did not pick out decorative items. They understood they were creating a public space and did not try to make it their own. They reviewed the designer’s vision but let her do her job which was recommending furniture, fabrics, styles, carpets and colors.

5. Present the vision to the homeowners. With a strong designer who obviously knew what she was talking about, and appropriate “public area” ideas (nothing too extreme or experimental), we wanted to get the homeowners onboard with the design plan. We invited all of our residents to a special evening presentation meeting where we had five renderings to show them. Our designer also said she wanted to rework and recover certain chairs and sofas where appropriate rather than change everything to new. This pointof-view was greatly appreciated by everyone since it was so reasonable instead of saying “everything had to be new.”

Since 2006, I have been the manager of The Californian on Wilshire HOA, an 80-unit luxury high rise on the Wilshire Corridor. After working with the developer for a few months to open the building, I had the pleasure of continuing my work in this beautiful Art Deco building with the homeowners association. The building was brand new and, in addition to a grand entry lobby, the common areas rooms included a library, media/card room, conference room, catering kitchen and large reception/ meeting room, a gym and two separate first-floor elevator lobbies serving the east and west sides of the residential units. And although everything was brand new in 2006, many of the new homeowners wanted a more sophisticated and elegant look in these rooms. The first design/redecorating committee was formed about a year after we opened the building. We searched for a designer to help define a new image for The Californian. Over the next several years, we interviewed and met four different designers.

8. Stage an auction to sell the “old” items. We had numerous chairs, tables, vases, lamps, étagères, large-scale planters and plants to dispose of to make room for the new look. So we staged an auction to sell the items. We invited homeowners, employees and managers and board members from other buildings in the area to bid on our “old” items. The best part of this was that the “old” items were in excellent condition. They just did not fit in the new design scheme. We made a tidy sum on the auction and many people were pleased with their purchases.

MEET A BANK WITH 20 YEARS IN NEIGHBORHOOD.THE

6. Present the budget. It can be no secret as to what the budget is since homeowners are entitled to know such things. The Californian was lucky to be more than fully funded in reserves so the directors had the ability to authorize an appropriate budget for the project. And they stuck to it with only a couple of changes.

9. Installation and Next Steps The installation was magical and went without a snag. It was another example of the value of diligent preparation. The residents were delighted with the changes and the overall improvement in the entrance and lobby areas. We are now preparing the plans and budget for Phase II, which will complete the new look of The Californian.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 13

TIME FRAME: 6 months

Linda Healey is general manager of The Californian on Wilshire in Los Angeles. She can be reached at lhealey@californianhoa.com.

The RedesignLobbyforIngredientsPerfectour

DESIGNER: Judith Lance, Judith Lance, Inc. Los Angeles, CA BUDGET: $400,000

7. Stage a “Hollywood” installation. We live in the entertainment capital of the world. The board insisted that 95% of the changes (new furniture, rugs, accessories, planters & plants) be installed at the same time so the homeowners would see every item working together and not cast judgment on new items that arrived one piece at a time. As items were completed and delivered, they were carefully stored out of sight until the day of the major installation.

©2014 Union Bank, N.A. All rights reserved. Member FDIC. Smartstreet is a registered mark of Union Bank, N.A. No matter what size your community is, managing it can be a daily challenge. Union Bank ® Homeowners Association Services is here to help. For over 20 years, we’ve streamlined the assessment collections process for community associations with specialized tools and services powered by Union Bank product solutions and our proprietary Smartstreet® technology platform. We offer a customized HOA lockbox with same-day processing to accelerate payment collection, reduce mail-in times for checks, and provide homeowners with convenient online payment options. Whatever your needs, Union Bank’s capabilities make it easier to control your daily financial operations. Contact us today at 866-210-2333 to learn more. HOAbankers.com Smartstreet.com

DESCRIPTION OF PROJECT: Painted all interior trim; added new sconces & chandeliers; purchased new chairs, tables, planters, plants, entry mat, benches; redesigned & recovered some existing chairs & sofa; reorganized, reframed & hung association existing art program; designed new area rug & carpets.

The answer: when it gets avoided in a Chapter 13 bankruptcy proceeding. Chapter 13 is a consumer bankruptcy proceeding in which an individual or husband and wife reorganize their debts. The reorganization of the personal finances in the Chapter 13 context usually involves paying some debts and not paying other debts. One tool in the debtor’s arsenal is to avoid junior liens, including a junior mortgage, judgment, tax—and yes, even home owners association (“HOA”) liens—so as to avoid having to pay said liens. In common parlance, this is referred to as lien stripping. Neither California nor bankruptcy law accords an HOA lien any special protection from being stripped off in a bankruptcy proceeding. For a lien against the debtor/ homeowner’s real property to be stripped off, there must be absolutely no equity in the property to support the existence of said lien. In truth, a lien only functions as a lien if it attaches to equity in the property which is secured by the lien. By way of example, if a debtor’s primary residence is worth $500,000, and the first mortgage (and/ or the first mortgage plus accrued property taxes) exceeds $500,000, then any junior lien—regardless of the type of lien—is entirely unsecured because there is no equity in the property to which the lien could, or did, attach.

WHEN IS A LIEN NOT A LIEN?

By Richard Mark Garber, Esq.

Third, when appropriate, file a proof of claim, detailing the amount of HOA assessments owed, and what portion, if any, already is subject to a lien, and hence is secured. This is especially important in Chapter 13 cases. If the HOA wants to get paid in a Chapter 13 case, it must timely file a claim detailing what it is owed and must include adequate proof of the existence of its lien. In some cases, the failure of the HOA to file a claim before the claims deadline could result in the HOA not getting paid.

▶▶▶

Chapter 13 is a payment plan. Typically liens get paid in Chapter 13. It is important for the HOA creditor to be proactive, to file its claim early, and to object to the debtor’s plan if it does not adequately provide for the HOA’s claim, including interest where appropriate.

The first thing to know—and to remember—is that post-petition HOA assessments are not dischargeable!

Charge

From the date the debtor files a bankruptcy petition, the debtor/ homeowner is liable for all HOA assessments that accrued postbankruptcy for as long as he or she remains on title [11 U.S.C. 523(a)(16)]. This is true regardless of the chapter. The second thing to know and remember is that a lien survives bankruptcy unless and until it is stripped. Since HOA liens cannot be stripped in Chapter 7 cases, the HOA still may foreclose on its lien once the stay terminates on its own (by operation of law) or once it is terminated by the court at the creditor’s request.

Lien Collection

14 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

The percentage of cases in which confirmed plans are fully consummated over a term of three-to-five years is extremely small; that being so, being proactive in a Chapter 13 case is the best way for an HOA to maximize the likelihood of payment. Not infrequently, debtor/home owners file bankruptcies (especially Chapter 13 proceedings) that lack good faith. Good in Bankruptcy: Ahead,Don’t Charge Off

HOA liens are involuntary liens. That means the amount of the lien can be crammed down (i.e. reduced) to the value of the real property. By way of example, if the debtor’s primary residence is worth $500,000, but his first mortgage encumbrance (or first mortgage plus accrued property taxes) totals only $490,000, and there is an HOA lien of $20,000 recorded against the debtor’s residence, then the amount of the HOA lien can be crammed down (i.e., reduced) from $20,000 to $10,000, because there is only $10,000 in equity to support the lien. The remainder of the lien is unsecured. So what’s a poor HOA to do? What remedies does it have? Well, the HOA has more remedies than one may think. The first piece of advice is NOT to lie down and take the financial punishment the debtor is dishing out.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 15 faith always is a plan requirement; in other words, proposed plans that lack good faith cannot be confirmed. A skilled bankruptcy attorney can determine whether the required good faith exists for the plan to be confirmed. In some cases, the HOA may be able to attack the debtor’s bankruptcy filing, and have it dismissed early on, for lack of good faith. Thus, if the debtor defaults on his or her post-petition HOA dues, a Motion for Relief from Stay becomes appropriate.

A Motion for Relief from Stay is used to obtain court permission to foreclose on the property, or to take any other collection action that would have been appropriate before the bankruptcy was filed. Similarly, if a debtor is repaying some or all of his delinquent HOA assessments through his plan, and defaults on said plan payments at some point during the case, a Motion for Relief from Stay also is appropriate. It also is important to know that, even if an HOA lien is stripped off in a Chapter 13 case, the lien remains “of record”—that is, it remains a recorded lien until the debtor completes all of his or her plan payments and gets a discharge. Since only a minimal percentage of confirmed plans are ever fully consummated, it is very likely that the debtor/homeowner’s Chapter 13 case will be dismissed for some plan failure. If that happens, the debt and lien are revived; it is as if the lien was never avoided. Likewise, if the debtor attempts to sell or refinance his or her property during the Chapter 13 case, the stripped-off HOA lien is treated as still being a valid, recorded lien; the HOA will be entitled to (some) payment from the proceeds of the sale or refinance. In conclusion, the proactive, aggressive HOA does possess a number of powerful tools to combat a bankruptcy case filed by one of its residents. If a bankruptcy is filed that stays an HOA’s pending collection action against a homeowner, the HOA should not sit by idly, waiting for events to overtake it. Since, by the time most HOAs begin their collection activity, they already are owed a significant debt, allowing the HOA’s financial condition vis-a-vis a particular debtor/ homeowner to deteriorate even further in bankruptcy generally is not the answer. Inaction on the part of the HOA to take all appropriate steps in bankruptcy to collect its HOA debt and/or to foreclose on its lien—especially in the context of a Chapter 13 case—will only result in the HOA accruing more debt. Richard Mark Garber, Esq. is the principal of the Law Offices of Richard Mark Garber, a firm emphasizing homeowners association collection issues in and out of bankruptcy. He can be reached at rickgarber@ sbcglobal.net.

Acosta

Adrian Adams

Cyndi

Ramona

16 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

Chris GailMichaelRussellDianeElvinLindaLionelLaurieGeorgeMickelCatherineDirkLynetteJohnSteveMeiganFarrahRichardLisaTamiJudyDaveSaraMargaretAlbrechtAllenBarryBrockCampionChavinDaleEganEsquerEverettFeistelFelderFindlayFosterGemindGrahamGralGralHarrisHealeyHidalgoHilliardHoffmanHuffmanJones

Koester Karen Kokowicz Susan Larson Lorna LoriTracyConnieJillMichelleGerryDianaMarianneRobertAlexandriaCraigJoannePeteJeffreyDanTinaJuliusNancyRuthErikGreggEvelynMichaelLevisteLewisLiftonLotaneMendezMoffittMohniNagyNakamuraNakariOlsenOng,Jr.PeñaPhillipsPollockSidesSimekStillerSuenramUnderwoodVanZeebroeckVohdenWolinZiegler Chapter Members Holding the PCAM® Designation PCAM ® DesigneesPCAM®More than 35 Professional Community Association Manager (PCAM®) designees and Chapter Board of Directors members gathered at The City Club LA in downtown Los Angeles on March 7 to enjoy each other’s company and celebrate the achievement of new designees Meigan Everett of Gold Coast Property Pros and Alexandria Pollock of Seabreeze Management Company, AAMC. (See photo at left with designees and Katy Krupp, Chapter President Elect). The PCAM® designation is the pinnacle of professional achievement for managers with advanced skills and experience. A PCAM® candidate must pass: 1) the CMCA® examination; 2) pass all six 200-level courses; 3) have five years or more of direct community manager experience; 4) successfully complete a challenging case study analysis of a community association; 5) comply with the CAI Professional Manager Code of Ethics; and 6) participate in a minimum level of chapter service activities.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 17 GatherDesignees Gather

By Brian D. Moreno, Esq., CCAL IT GOES WITHOUT SAYING THAT A MAJORITY OF HOMEOWNERS ASSOCIATIONS IN CALIFORNIA ARE STRUGGLING WITH UNPRECEDENTED INCREASES IN DELINQUENT ASSESSMENT ACCOUNTS. SOME ASSOCIATIONS SPEND THOUSANDS OF DOLLARS CHASING UNPAID ASSESSMENTS. A SIGNIFICANT PORTION OF THESE DELINQUENT OWNERS ARE LEASING THEIR PROPERTIES AND COLLECTING RENT WHILE NOT PAYING THEIR ASSESSMENTS.

Section 2938, however, does not clarify whether the CC&Rs document on its own creates a lien and enforceable assignment right. Moreover, a deed of trust is much different than a set of CC&Rs, in that the deed of trust creates a lien against the trustor’s property upon recordation, while a homeowners association would not have a lien until an owner becomes delinquent with his or her assessments and the association records an assessment lien against the property. Therefore, depending on the scope of the assignment of rents provision in the CC&Rs, a homeowners association would likely need to record an assessment lien first before pursuing rents from a tenant. Moreover, even after a lien is recorded, But the homeowners association is not without options.

First, an association could pursue a lawsuit and after judgment is entered, file a motion for an assignment order. Second, the association could amend its CC&Rs and/or rules and regulations to include a restriction that requires all tenants to personally agree to be bound to the association’s governing documents, thus exposing the tenant(s) to personal liability in the amount of the delinquency. The third option and focus of this article is enforcing the assignment of rents provision contained in the CC&Rs prior to filing a lawsuit.

18 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

An ▶▶▶EconomicInForOpportunityRecoveryDifficultTimes

In California, Civil Code Section 2938 regulates the formation and enforcement of the assignment of rents and profits generated by a lease agreement relating to real property. It provides that “[a] written assignment of an interest in leases, rents, issues, or profits of real property made in connection with an obligation secured by real property… shall, upon execution and delivery by the assignor, be effective to create a present security interest in existing and future leases, rents, issues, or profits of that real property…” Once a written assignment of rents is properly authorized and formed, the law creates a security interest (i.e., lien) against the rents and profits paid by a tenant.

The question then is whether the association’s CC&Rs, by itself, creates an assignment of the right to a tenant’s rent payment in favor of the association. Indeed, Section 2938(b) provides that the assignment of an interest in leases or rent of real property may be recorded in the same manner as any other conveyance of an interest in real property, whether the assignment is in a separate document or part of a mortgage or deed of trust. Since a homeowners association’s CC&Rs is a recorded document and contains covenants, equitable servitudes, easements, and other property interests against the development, it follows that the assignment of rents relief provided in Section 2938(b) can be extended to community associations provided the CC&Rs contains an appropriate assignment of rents provision.

homeowners associations should consider adding a provision in the assessment lien giving notice to the delinquent owner that an assignment right is in effect upon recordation of the assessment Nevertheless,lien.association

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 19

boards should consult with legal counsel to ensure proper compliance with the law.

Truly, the initial pre-lawsuit demand for rents may persuade the landlord-owner to resolve the delinquency with the association in the face of the potential disturbance of the landlord-tenant relationship. Even if the tenant fails to comply with the demand and/or the owner fails to bring the account current, the association could nonetheless pursue foreclosure remedies and/or seek to have a receiver appointed to specifically enforce the assignment of rents provision.

Tonya

Whiletime.homeowners associations have the option of pursuing a lawsuit against the delinquent owner and seeking to collect the rent payments after a judgment has been obtained, there are obvious advantages to enforcing the assignment of rents provision prior to pursuing litigation. A pre-lawsuit assignment of rents demand may prove to be more effective and cheaper. Additionally, the tenant affected by the assignment of rents demand may place additional pressures on the delinquent owner/landlord having received such a demand. Given this, the options available pursuant to Section 2938, including the pre-lawsuit demand for rents, should at least be considered and analyzed before action is taken.

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Once the assignment right becomes enforceable, the next issue is how the association can and should proceed. Section 2938(c)(3) allows the association to serve a pre-lawsuit demand (a sample of which is included in the statute) on the tenant(s), demanding that the tenant(s) turn over all rent payments to the association. This can be a powerful tool for homeowners associations. Moreover, if the tenant complies, the association will receive substantial monthly payments that can be applied towards the assessment debt, and collecting the funds does not appear to preclude the association from pursuing judicial or non-judicial foreclosure proceedings at a later

Brian D. Moreno, Esq., CCAL, is a Senior Associate at Richardson Harman Ober PC, a law firm with offices in Costa Mesa, Pasadena and Riverside. He can be reached at bmoreno@rhopc.com.

In sum, if a delinquent homeowner is leasing the property to a tenant, the homeowners association should consider making a pre-lawsuit demand for rent payments. If the association’s CC&Rs does not contain an assignment of rents provision, the board of directors should consider amending the CC&Rs to include an appropriate provision. Without question, the pre-lawsuit demand for rents could provide an excellent opportunity for recovery of unpaid assessments during these difficult economic times.

20 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter More than 75 chapter members and friends attended the March 26 breakfast in Valencia to hear Scott Clements, RS®, PRA, CMI (Reserve Studies Inc.) and Russell Hoffman, CMCA®, AMS®, PCAM® (Valencia Management Group) discuss how reserve funding and budgets work together. &BudgetingIntelligentReserves

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 21 Current TheFinley’sAllianceAmericanR.W.THEPacificServicesSecuritasTitleSponsorsSecurityUSA,Inc.ChampionshipWesternBankBeverageCartBehrPaint/HOMEDEPOTUSAValleyCrestLandscapeMaintenanceBloodyMarysServproTouringProSteinPainting,Inc.ContestHoleTechnologies,Inc.Guard-Systems,Inc.Meet&GreetHoleEnvironmentalGroupDunn-EdwardsPaintsTreeandLandcare,Inc.Har-BroEmergencyService&RestorationHiTechPainting&DecoratingMissionLandscapeReconstructionExpertsRosePavingCompany,Inc.S.B.S.LienServicesSherwinWilliamsPaintTermiteGuy&IRCServicesUnionBankHOAServicesVistaPaintCorporationClubProPreferredCommercialPainting. SCHEDULERegistration & Putting Contest 8:00 a.m. Shotgun Start 9:00 a.m. Lunch & Putting Contest 11:00—1:00 p.m. 19th Hole 2:30 p.m. Dinner, Raffle, Awards 4:00 p.m. ENTRY FEE/ REGISTRATION $200 per player—18 holes Includes green fees, cart, goodie bag, box lunch, dinner and awards/prize drawings. $ 55 Dinner & Social Only Includes dinner and awards/prize drawings. Register online www.cai-glac.orgat or Mail check to: CAI, 130 N. Brand Blvd. #305 Glendale, CA 91203 Prize for the bestdCereal-themeecoratedtee! CAI Golf TournamentCAI Golf Tournament Monday, June 16, 2014Monday, June 16, 2014Monday, June 16, Woodland Hills Country Club 21150 Dumetz Road Woodland Hills, CA 91364

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But… that was then… and this is now. CLAC will need to tread softly on these bills in an attempt to create alternatives that satisfy HOAs and their members… and the 120 legislators from both parties. CLAC has published a resource for association members entitled, “10 Tips to Maintain Your Landscape and Conserve Water” on www.caiclac.com, which may be placed in your association newsletters.

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A few days later the Assembly Housing Committee called with an inquiry as well. My response to both callers was to point to CAI’s upcoming webinar on xeriscape landscape planning and drought-tolerant plants. I immediately suspected that we’d see legislation regarding this. Sure enough—we now have five bills that prohibit such fines and one even authorizes artificial turf. As you may recall, CLAC succeeded in killing two artificial turf bills in recent years.

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There are fifteen election bills. Of course, our Assembly Bill 1360 is most important. It ALLOWS optional electronic balloting in HOAs. The hearing on our bill will probably be the day after we all converge on the Capitol to lobby bills on Monday, April 7.

22 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter association that fined a member for not watering his lawn. The owner reported he hadn’t watered in order to conserve water despite the association’s governing documents, which require all lawns to be properly maintained… i.e., green. The Governor’s representative was, and I quote, “shocked” in light of the real and officially-proclaimed drought.

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CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 23 What is CLAC? THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI) CONSISTING OF HOMEOWNERS AND PROFESSIONALS SERVING COMMUNITY ASSOCIATIONS. CAI IS THE LARGEST ADVOCACY ORGANIZATION IN AMERICA DEDICATED TO MONITORING LEGISLATION, EDUCATING ELECTED STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA. ABOUT THE ORGANIZATION  Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters.  Represents over nine million homeowners and property owners in more than 45,000 associations throughout California.  Comprises association homeowners, board members and the professional business partners that service them.  Is NOT a PAC (Political Action Committee) and makes no financial campaign contributions.  Depends solely on the donations of the community associations, their boards of directors and those who serve HOA members. CLAC’S MISSION To safeguard and improve the community association lifestyle and property values by advocating a reasonable balance between state statutory requirements and the ability and authority of individual homeowners to govern themselves through their community associations. 826 2nd Street HOA 909 El Centro, Inc. 914 Lincoln Blvd. HOA 948 20th Street HOA 1242 Berkeley Street HOA 2050 Artesia HOA 446 San Vicente HOA 11767 Sunset Blvd. Assn. Avis BodgerHOAPark Condo HOA Cardiff Court O.A. Inc. Casa De Valley View OA, Inc. Casa Loma Associations, Inc. Chateau Goshen HOA Culver Centrale HOA Eight on Twenty HOA Florwood Estates HOA Galaxy HOA Gorham Park HOA Inc. Harbor Knolls HOA Hillcrest Meadows OA Hillcrest Rolling Hills HOA Hopi IdahoHOAVillas HOA Kelton Arms COA Lawford HOA Marine Village HOA Oak Hill Condo HOA Ocean West COA Park Crest HOA Parkview Manor-Lockland Inc. Polynesian RidgeleyRancho-GlenOAHOAVistaChateau HOA Seascape – Redondo HOA Inc. Shoreham Villas HOA Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shore Mediterranean HOA Textile Building OA The 558 Evergreen Street HOA The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Capri Townhomes HOA Villa Pacifica T.C. HOA Villa Serena C.A. Inc. Vogue Condominiums Association, Inc. Westside Townhouses I HOA Wilshire Regent HOA Wilshire Selby Towers East C.A. Inc.TOTAL:CONTRIBUTIONCURRENT$5,432 GOAL: $22,192 25% of goal as of 3/31/14 OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY 1 – MARCH 31, 2014 This bill faces tremendous opposition from voting rights groups and the Secretary of State. You will be asked to help by communicating with your Senator on this measure… so be sure to sign up for our CLAC-TRAC email alerts at www.caiclac.com. There’s another bill regarding sale transfer disclosure obligations and fees being sponsored by the Realtors. It would make sellers responsible for paying for the documents and will touch upon “bundling” documents. In sum, there are now more than 2,500 bills to be pushed through the process in six months. 578 were gutted and amended with altogether new provisions and the rest will all be amended at least twice. That’s 21- per- day to be acted upon within 120 business days. On the Senate and Assembly floors, hundreds will be voted on in a single afternoon or late into the night. In short, it’s heads-up time for CAI-CLAC. Your awareness of these bills and the legislative process will help us win at law making. All these measures will be active when we ALL convene in Sacramento for our 22nd Annual Legislative Day at the Capitol. Skip Daum is our veteran Legislative Advocate for CAI's California Legislative Action Committee and may be reached at caiclac@aol.com.

FOR THE

During an earthquake, DROP, COVER and HOLD ON.  When at home during an earthquake, protect yourself from falling objects, stand in a doorway or take cover under a heavy table, move away from windows that could break, or go to the identified safe spot in the room you are in. TO PREPARE NEXT BIG ONE  By Darlene Kimbell

 Keep a kit in your car.  Identify a safe spot in each room of your home and make sure everyone in your home knows the location.

 Make sure your water heater is strapped in place.

 Know where your water, gas and electrical shut-offs are located.  Keep your important documents together and accessible should you have to leave your home.

ALL SHOOK UP? HOW

 Do not hang objects over your beds.  Put safety latches on your cabinets. Place larger items on lower shelves.

 Secure gas appliances to the wall.

As the recent earthquakes in California and South America have shown us again, earthquakes and natural disasters can, do and will continue to happen at any time. As always, the best course is to be prepared, make a plan and follow your plan when necessary.

 Include cash in your earthquake kit in case ATMs are not working.

 Store a few cases of bottled water for emergencies.  Have a fire extinguisher and flashlight(s).

Have an emergency earthquake survival kit ready to go. You can put together your own or purchase a kit. Kits are available to purchase online, or you can obtain a list of suggested items online.

24 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

Secure your home. You may not sustain any damage, minor or major, but prepare your home in advance. You can visit www.lafd.org/eqbook.pdf for a very good preparedness guide published by the Los Angeles Fire Department.

 Place the kits in a location(s) that all family members know and can access.

 Use the American Red Cross Web site, www.redcross.org, for the Safe & Well to let family members know that you are safe. After an earthquake, limit your driving as much as possible. There are emergency vehicles that need to help others. Avoid any downed power lines, broken water mains or any buildings that have sustained damage. Be aware of the condition of the street or freeway, and be careful of any damage along your route. Be prepared for aftershocks. As with any disaster, there are people who are there to help you and those who are ready to take advantage of you. Do not make rash or impulsive decisions. Wait and talk with family, friends or your insurance carrier. Be prepared and plan ahead. Be prepared. Be prepared.

Once you and all of your family members are safe, assess any damages you have sustained.  Wear protective gloves to move or pick up any damaged items.

 Contact a local contractor should you need assistance in protecting your property and boarding up windows or doors.

 Contact your insurance carrier. If family members are away from your home:  Have a plan to meet at a specified location.

 Have a contact outside of your immediate area that you can use to send messages through.

 If unsure, sit on the floor against an inside wall; cover your head and neck with your arms.

 Secure your pets.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 25

Once the shaking has stopped, remain calm and reassure others.

 Check yourself and family for any injuries—have a first aid kit. If needed and possible, call 911 to report and get assistance. Remember everyone in your area has experienced the earthquake too, and it may take time to get the assistance you need.

 Get your earthquake kit(s).  If your house is unsafe, get everyone out.

 Move away from block or brick walls which could fall.  DROP, COVER and HOLD ON until the shaking as stopped.

Check for any immediate danger from gas leaks; purchase and keep a shut-off key at your gas meter. Know where your water shut-off valve is into the house and at the street. Know where your main electrical panel is and how to turn off the main.

Darlene Kimbell is the owner of State Restoration Inc., a restoration and recovery company serving Southern California. She can be reached at darlene.kimbell@ staterestoration.com .

 If you are outside during an earthquake stay in an open area, move away from power lines and objects that could fall.

COMMUNITYSTRENGTHENSPREPAREDNESSEARTHQUAKETIES Contact our Southern California Commercial Relationship Officer today! Larry Hooper, Vice President (714) 864-5171 Toll Free: www.associationbankers.comLHooper@bpop.com800-233-7164 Our DEDICATED experts understand the needs of community associations. We offer: • Financing for building repairs/improvement projects • Competitive fixed rates with terms up to 15 years • Excess FDIC insurance coverage limits Lockbox, cash management, and other depository services are also available. ©2013 Banco Popular North America. Member FDIC.

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In light of what we as Americans were going through, how was I going to get through the day? For that week, I remember feeling like people were relating to one another, sympathizing and trying to establish some unification. My clients called the office about their normal concerns, but the first thing said was, “I know this is not a big deal in comparison to what has happened, so when you have the chance to get to this….”

Although we were here in Los Angeles and directly unaffected by what had happened, the appalling incident united us and instilled compassion and tolerance for one another. What we in Los Angeles do frequently experience are the unpleasant and terrifying earthquakes. We have recently had several earthquakes that have really shaken us up both physically and mentally. There are obvious, significant values in establishing emergency procedures for earthquakes and other catastrophes. A community is not just a building or structure; it is also the daily experiences, perceptions and interactions of those who reside within the structure. Because we are focusing on common interest developments, the safety of the residents within the community truly rely on the cooperation of many residents as opposed to just one or two.By Neda Nehouray, CMCA®

26 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter

I remember the tragedy of the Twin Tower terrorist attacks on September 11, 2001 like it was yesterday. The nation was shaken and devastated. After watching the events unfold on the news that morning, I had to get myself in the car and to the office to carry on through the day as a property manager.

When setting these steps up, residents are getting to know each other, understanding their neighbors’ needs, and committing to go out of their way to ensure safety for each other. We have also seen more turnout at our board meetings, residents who are willingly exchanging information with each other, and cooperation within the community residents. Ultimately, while it may seem unfortunate that catastrophes may be one of the few things that joins people together, I can understand why. We are in a society where ages vary, interests differ quite extremely, and many people just do not see eyeto-eye. When it comes to safety in an emergency, however, the consensus throughout the community and something that all can agree on is that safety and security come first.

Neda Nehouray, CMCA® is the CEO and President of HOA Organizers, Inc., a full-service management company located in Lake Balboa. She can be reached at info@hoaorganizers.com.

There are many instances that unify people, but it is evident that catastrophes really bring communities together. While establishing emergency preparedness plans creates organization and safety procedures, it also bonds people and requires that residents rely on one another for the success of the plan. If we are to experience a significant earthquake, there are so many factors that need to be considered. The management office, or several people on the premises will not be able to handle all of the various items that need to be covered in the event of a serious earthquake.

We have communities that have really come together and set up some wonderful emergency procedures. After being earthquake-free for some time, it was easy for people to go about their lives and put emergency procedures on the back burner. Now that we have been reminded what earthquakes feel like and what they can do, our community residents have been seemingly more receptive to dedicating their time and energy in coming together to plan. For the communities with multiple buildings, we have established a minimum of one building leader per building. The role of each building leader is to reach out to each resident to ensure evacuation if/when possible. The building leader is also made aware of anyone who may need assistance to establish help for those in need. Furthermore, there are volunteers in each building to check the gas lines to make sure that the gas has been shut off in a significant emergency situation. We expect power outages in major earthquakes, so we also have established volunteers to manually open vehicle gates if possible. We have also suggested that each resident maintain their own emergency supplies, but we have also created emergency supplies to leave in common area storage spaces when possible. These supplies have included first aid kits, flashlights and water.

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 27

28 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter Specializing in: Exterior Painting & Waterproofing of Condominium Complexes, Apartment Buildings, Office Buildings & Large Commercial Buildings Fax: 661-268-0900 Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® (International Tower Owners Association) and David Swedelson, Esq. (SwedelsonGottlieb) talk to community association volunteer leaders and their association managers in Long Beach about the finer points of rule enforcement. Playing By The Rules

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 29 Experience professional delinquentrecovery.assessment 888-845-8808 www.witkinandneal.com 1/28/13 5:04 PM Page 1 Questions to Ask Yourself Regarding The Rules How Good Is Your Association’s Enforcement Policy? Are The Rules Reasonable? A Reasonable Rule or Restriction is Logical.  It is directed to all owners.  It benefits the community.  It addresses a specific problem.  It has a solution to that problem.  The solution is rational.  The solution is fair. An Unreasonable Rule Is Illogical Or Unfair.  Promotes illegitimate goals.  Is too broad or severe.  Does not benefit the community as a whole.  I know an unreasonable rule when I see it — like defining what is obscene. Are They Enforceable? A Rule Or CC&R Violation Is Not Enforceable If:  The rule is more restrictive than the CC&Rs.  It has not been consistently enforced. Examples: — A prohibition on hard-surface flooring, washing machines, waterbeds, unreasonable pet restrictions — Rule regarding tree trimming inconsistent with CC&Rs and protection of views held not enforceable (Eckstrom v. Marquesa at Minorca Beach HOA – 2009)

30 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME AS OF MARCH 15, 2014 BUSINESS PROFESSIONALS RECRUITER CiraConnect CAI National Pro Touch Construction, Inc. Dan Nakari, CCAM®, CMCA®, AMS®, PCAM® The Toro Company CAI National Westcoat Specialty Coating Systems CAI National MANAGEMENT COMPANIES CoastHaven Management, Inc. CAI National COMMUNITY ASSOCIATIONS Azzurra HOA Christine Vanderbeck-Alfieri Niagara Riverside Condominium Assn. CAI National COMMUNITY MANAGERS Mary Carpenter Carol Brockhouse, AMS® Park Wellington HOA Carol Collins Shanne Ho, CCAM®, PCAM®, AAMC® Seabreeze Management Company, Inc. Helen Essayan-Cook Neda Nehouray, CMCA® HOA Organizers, Inc. Marie Gomez Paul Policarpio Cabrini Villas HOA Carmen Harper Neda Nehouray, CMCA® HOA Organizers, Inc. Julianne Jeffries David Mayemura, CMCA® Partners Community Management Sandra LaBelle Neda Nehouray, CMCA® HOA Organizers, Inc. Fardad Nehouray Neda Nehouray, CMCA® HOA Organizers, Inc. Michelle Rodrigues Shanne Ho, CCAM®, PCAM®, AAMC® Seabreeze Management Company, Inc. Marcia Soedjono Neda Nehouray, CMCA® HOA Organizers, Inc. Tija Teteris Sharon Topping, CMCA® First Service Residential Fallon Turner Michelle Underwood, CCAM®, Plaza Towers Condo Assn. CMCA®, AMS®, PCAM® Joy Wei Shanne Ho, CCAM®, PCAM® Seabreeze Management Company, Inc., AAMC® COMMUNITY ASSOCIATION LEADERS Shane Park CAI National take that to the bank. Member FDIC Equal Housing Lender mutualofomahabank.com Lisa Ann Rea VP/Regional Account Executive Toll805-907-8452Free866-800-4656, ext. lisa.rea@mutualofomahabank.com7500 pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right. AFN46039_0913

CAI-Greater Los Angeles Chapter March/April 2014 | www.cai-glac.org 31 BUSINESS PROFESSIONALS Adco Roofing, Inc. Alliance Association Bank Allied Trustee Services AlliedBarton Security Services, Inc. Andre Landscape Service, Inc. Anthony Elliot Insurance Agency, Inc. Association Reserves, Inc. Associations Insurance Agency, Inc. BEHR PAINT/THE HOME DEPOT USA CAM CertaProCenturionServicesGroupPainters, Ltd. Concrete Hazard Solutions, Inc. Critter Busters, Inc. Debra L. Sheppard & Associates, A PLC Design Build Associates Elliot Katzovitz Insurance Agency, Inc. Fenceworks, Inc. General Pavement Management, Inc. HOA Elections of California, Inc. HSG, ImperialInc.Paving Company, Inc. Law Offices of Daniel B. Spitzer Kasdan Simonds Weber & Vaughan, LLP Metropolitan Satellite-Fiber OpticsWireless DIRECTTV Michael T. Chulak & Associates MTECH Exterminator Company NorthStar Moving Corporation PCW Contracting Services, Inc. Personal Touch Cleaning & Maintenance, Inc. Professional Services Construction, Inc. Rodent Pest Technologies Schonwit & Company, CPAs Smokefree Apartment House Registry South Shore Building Services, Inc. Steve D. Reich Insurance Agency Steve Little State Farm Insurance Agency Stonemark Construction Management TimothySwedelsonGottliebClineInsurance Agency, Inc. TruGreen ValleyCrestLandcareLandscape Maintenance Western Area Security Services COMMUNITY ASSOCIATIONS Croydon Park HOA Escadrille HOA Golden Colonial Owners Association International Tower Owners Association North Gardner HOA Palos Verdes Bay Club, Inc. Rancho Glenbrook HOA Rockpointe HOA Royal Palms HOA Sandside Villas HOA Tarzana Woods Owners Association Villa Vallarta HOA Westmont North HOA #3 COMMUNITY MANAGEMENT COMPANIES Accell Property Management, Inc. ConceptAAMC Seven, LLC Encore Enterprises, Inc. J & N Realty, Inc. LB Property Management National Property Management Group, Inc. Ontrack Asset Management Pacific Real Estate Management, Inc. Prime Association Services Property PropertyProfessionals,ManagementLLCManagement Solutions, Inc. COMMUNITY MANAGERS James Altschuler Karen Ansell, CMCA®, AMS® Omni Association Management Bea Blessley, CMCA® Jenkins Properties Management Company, Inc. Carol Brockhouse, AMS® CoastManagement.net Jennifer Cleveland Gold Coast Property Pros Matt Davidson, CCAM® Action Property Management, Inc. Vicki Egan Seco Canyon HOA Roman Esparza Beven and Brock Sabrina Fuentes Blair House HOA Brandon Grosh®, AMS® Property Professionals,ManagementLLC Elvin Hidalgo, CCAM®, CMCA®, AMS®, PCAM® Century Park Place Condo Assn. Evelyn Lifton, CCAM®, CMCA®, AMS®, PCAM® The Brentwood at Kiowa HOA Sascha Macias, CMCA®, AMS® FirstService Residential Erik Mendez, CMCA®, AMS®, PCAM® Beven & Brock Melissa Mills Elleven HOA Fernando Morales, CMCA® Sea Colony HOA Peggy O’Donoghue, CMCA®, AMS® Valencia Management Group Bob MichellePrescottUnderwood, CCAM®, CMCA®, AMS®, PCAM® Plaza Towers Owners Association COMMUNITY ASSOCIATION LEADERS Jan EleanorCarolBartholomewGoldmanYavarone TO RENEWING MEMBERS! OUR THANKS AS OF FEBRUARY 28, 2014

32 www.cai-glac.org | March/April 2014 CAI-Greater Los Angeles Chapter ADVERTISING INFORMATION Dimensions & Rates: Artwork must not exceed the exact dimensions of that size ad. For more information, call the Chapter office: 818-500-8636. Ad Size Ad Dimensions Members Non-Members ⅛ page 3½" wide x 2" (Horizontal)high $200 $400 ¼ page 3½" wide x 4¾" high (Vertical) $300 $600 ½ page 7½" wide x 4¾" (Horizontal)high $425 $850 Full Page 7½" wide x 9.75" 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 20 A.ALLBRIGHT 1-(800) PAINTING 22 AIPM, Inc. 29 Association Reserves, Inc. 30 Berg Insurance Agency 15 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 26 Ferris Painting, Inc. 30 Mutual of Omaha Bank/ CondoCerts 19 Pacific Western Bank 32 Poindexter & Company, CPAs 26 Popular Association Banking 31 Preferred Commercial Painting, Inc. 24 R.W. Stein Painting, Inc. 20 Reserve Studies Inc. 7 Ross Morgan & Company, Inc. 27 Sandra Macdonald Insurance 28 Select Painting 25 SwedelsonGottlieb 9 The Termite Guy 13 Union Bank 29 Witkin & Neal, Inc. APRIL01 Westside Evening Educational Program – 7:00 p.m. Regatta Seaside HOA 6-7 Legislative Day at the Capitol Hyatt Regency, Sacramento 18 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 23 Luncheon Program for HOA Boards and Managers – 11:30 a.m. S kirball Cultural Center, Los Angeles MAY01 Westside Homeowners Association Marketplace – 5:30 p.m. DoubleTree by Hilton Hotel, Torrance 15-17 CAI National Conference Loews Royal Pacific Hotel, Orlando 21 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Courtyard by Marriott, Sherman Oaks 30 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 31 Ponies,Prizes & Play at Santa Anita Park – 11:30 a.m. Santa Anita Race Track, Arcadia

JULY18

Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 19 Essentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, Marina del Rey 30 Valencia Educational Breakfast for HOA Boards and Managers –8:30 a.m. Bridgeport HOA Clubhouse, Valencia

Westside Evening Educational Program – 7:00 p.m. Regatta Seaside HOA 5-7 M-100 PMDP Course Los Angeles, LAX Area 16 Annual Golf Tournament – 8:00 a.m. Woodland Hills Country Club, Woodland Hills 20 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 25 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, Los Angeles 26-27 M-202 PMDP Course Los Angeles, LAX Area

AUGUST16Wine Night – 5:00 p.m. Location TBD 20 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, Los Angeles 22 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

2014 UPCOMING EVENTS

JUNE03

$50RECRUITER-OF-THE-MONTHGiftCertificate

• To receive recruiter credit, you must be listed as the CAI member responsible for recruitment on the printed application form submitted, or be identified through CAI National membership reports.

RULES

All 2014 recruiters (except the Grand Prize winner) will go into a raffle drawing held in January 2015 (when all the 2014 results are in).

Member with the highest number of points as of December 31, 2014 will be awarded the Grand Prize. (Minimum 20 pts. needed to qualify.) RECRUITER RAFFLE EveningOutOnTheTown($500Value)

• Completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2014 and December 31, 2014 to be counted toward the Grand Prize.

One (1) point for each business partner member recruited in a category already existing in the 2014 Membership Directory. Two (2) points for a business partner in a sector of business not yet represented in the Chapter.

The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a $50 gift certificate. Los Angeles Events

THE GREAT ESCAPE

Two (2) points for an individual HOA board member or community manager.

Three (3) points for recruiting a management company.

Whether it’s a chance to win a weekend away or an evening out, you can win BIG by sharing the benets of CAI membership with colleagues and friends during 2014!

Three Contests...Three Prizes CAI‐GLAC’s 2014 Membership Recruiter Contests

GRAND PRIZE 3-Day,2-NightVacationPackage($1,000Value)

• In the case of a tie, a random drawing will determine the Grand Prize winner.

The following rules apply to the campaign: Each time you recruit a new member, you receive points toward your membership recruitment total. Points will accrue from January 1 through December 31, 2014. The more members you recruit, the more you'll increase eligibility for the Grand Prize. Points are based on the following membership categories:

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 Reserve Studies Les Weinberg, RS, MBA, Reserve Studies Inc. Insurance Issues for Common Interest Developments Kimberly Lilley, CMCA®, CIRMS®, Berg Insurance Agency, Inc 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 2014 Condominium Bluebook Today! Price: $26.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org . Learn more and register now at www.cai-glac.org .