Focus Magazine - November/December 2014 by CAI Greater Los Angeles Chapter

Focus L.A.’s Premier Source of Information for Community Associations SAVE THE DATE: Ponies, Prizes, & Play Santa Anita Park March 21 November/December 2014 MediationUnexpectedAlwaysStagesUnderstandingforTheMediation:BestAlternativeResolutiontheofaMediationExpectthe

CAI‐GLAC OUTREACH COMMITTEE SEASON OF GIVING ‘Tis the Season of Giving here at CAI-GLAC. Please join us in helping our community during the holiday season. ToyCALENDARCollection/Food Collection Friday, December 5 CAI-GLAC Holiday Happy Hour Bel Air Crest Master Association **See amazon.com & toysRus.com wish lists for CAI-GLAC. On Toys-R-Us site, use CAI-GLAC as last name.** Stuff -a-Bus Toy Delivery Friday, December 12 5:00 Meeta.m.atStarbucks at 5:00 a.m. 22815 Victory Blvd., West Hills 91307 We818-883-0567willdecorate our cars and deliver the toys to Garth Kemp (ABC7) at the Westfield Topanga Mall. Dress up and bring garlands, lights, etc. to decorate your car for the caravan!! Volunteer at the LA Food Bank Saturday, December 13 1734 E. 41st Street, Los Angeles 90058 8:30 a.m.—12 noon Registrations and waivers must be done electronically this year, please sign up on the CAI Website and follow waiver instructions www.cai-glac.org. STUFF-a-BUS!!! Let’s get enough toys to caravan on TV!!! Join us as we dress up and deliver the toys to Garth Kemp & ABC 7’s Stuff-a-Bus event! JOIN US!

PROGRAMS/LUNCHEONS

818-500-8636

Linda Healey, CCAM®, PCAM®, The Californian on Willshire

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

SERVICES

Robert Ridley, Esq. Castlegate HOA, 213-626-0291 Lynn WarnerRugerClub Villas HOA, 818-703-7090 Lisa Tashjian, Esq. Beaumont Gitlin Tashjian, 866-788-9998 EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA® 2014 COMMITTEE CHAIRS Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP COMMUNITY OUTREACH Meigan Everett, CMCA®, PCAM®, Gold Coast Property Pros EDUCATION Gerry Suenram, CCAM®, PCAM®, Action Property Management

MARKETPLACE

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 1 2014 BOARD OF DIRECTORS

Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Gregg Lotane, CCAM®, PCAM®, Treasurer The Wilshire Condominiums, 310-446-5333

DIRECTORS

Matthew Gardner, Esq., Richardson Harman Ober PC Jacklyn Wolf, Stonemark Construction Management

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

SATELLITE

National 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: Fax: 818-500-8638

Stephen S. Grane, Alante/MCS Insurance Services

WINE NIGHT Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company Jolen Zeroski, CMCA®, Union Bank HOA Services

MEDIATION

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

Magazine

CHAPTER

This publication seeks to provide CAI-GLAC’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. By submission of editorial content to CAI-GLAC, the author acknowledges and agrees to abide by the editorial and policy guidelines. Copyright © 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.

Carol Brockhouse, DonaldCoastManagement.netAMS®Campbell,CCAM®,CMCA®, AMS® Wilshire Regent HOA Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280

Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP

Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association PROGRAMS

AWARDS

Jolen Zeroski, CMCA®, Union Bank HOA Services GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC

LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian

Alan Denison, Stay Green Inc.

Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS

PUBLICATIONS

Ruth Moffitt, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn. SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, Wilshire Regent HOA Angel Fuerte, FRESHCO Painters Inc.

STAY CONNECTED: SAVE THE DATE: Ponies, Prizes, & Play Santa Anita Park March 21 On the Cover Oakhurst Homeowners Association NEWSWORTHY 4 Mediation – The Best Alternative for Resolution of Common HOA Disputes 6 Understanding the Stages of a Mediation from a Mediator’s Perspective 8 Always Expect the Unexpected 10 Getting Past Emotional Barriers in Homeowner Mediation 12 The Art of Negotiation 14 Changes to IDR Procedures 18 Take Advantage of CAI-GLAC’s Low-Cost Mediation Service 22 Summary of New Legislation - 2014 28 NEWS FROM SACRAMENTO CHAPTER UPDATE 2 Note from the Editor’s Desk 3 Message from the President NOTEWORTHY 3 Essentials of Community Leadership Workshop 5 PMP Receives AAMC® Designation from CAI 16 Homeowners Association Marketplace Oktoberfest Highlights 20 Homeowners Association Marketplace Salute To Our Veterans Highlights FYI 31 CAI-GLAC Membership News 32 2015 Upcoming Events 32 Advertisers Index 32 Advertising Information

Membership Directory

FINANCE

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

Union Bank HOA Services

Popular Association Banking Preferred Commercial Painting, Inc.

BRONZE Accell Property Management, Inc., AAMC Action Duct Cleaning Cleaning Co., Inc. California Safety Agency Cardinal Property Management, AAMC/ACMF CBI-Collins Builders, Inc.

2 www.cai-glac.org | November/December 2014

Mediation WHEN THE COMMITTEEPUBLICATIONS

Los

Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts

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.

Securitas Security Services USA, Inc.

Marina Landscape, Inc.

Reserve Studies Incorporated

SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc.

Payne Pest Management

S.B.S. Lien Services

Steven G. Segal Insurance Agency, Inc.

decided to tackle the topic of Mediation, we also had an ulterior motive: to promote our chapter’s Low Cost Mediation Service. We are extremely fortunate to count as Chapter members several experienced mediators who have contributed excellent articles for this issue. As you read them, we hope you will appreciate the mediation process and consider it as a positive course of resolution for your next dispute. We lead off with a mediation overview by Barry Ross, Esq. Mr. Ross explains how the mediation process, with an impartial neutral party as mediator, can be instrumental in resolving common HOA-related disputes and bringing a community back into harmony. I wish we would all adopt Barry’s perspective that, through mediation, participants can create better attitudes towards one another while creating thoughtful, mutually-acceptable solutions, with a harmonious outcome. Debra Sheppard, Esq. then leads us through the progressive steps of a mediation and emphasizes how valuable good preparation is to the outcome. She discusses the role that expectations and attitudes play in resolving disputes. Laura Snoke, Esq. offers great mediation advice: expect the unexpected because there are FROM THE EDITOR’S DESK NOTE always surprises. In her experience, a good mediator must be ready to handle any situation that arises with patience, flexibility and a sense of humor. Wendy Fassberg, Esq. dives directly into the heart of conflict, discussing how emotions are one of the greatest impediments to successful conflict resolution. Lisa Ann Rea’s article focuses on basic negotiation fundamentals as a way to strategize success and achieve your goal.

Pacific Western Bank

Beaumont Gitlin Tashjian Berg 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.

Chapter

Animal & Insect Pest Management, Inc.

TimothySwedelsonGottliebClineInsurance Agency, Inc.

GOLD A.ALLBRIGHT 1-(800)-PAINTING Adco Roofing and Waterproofing

Stonemark Construction Management

We thank our 2014 sponsors who have made a substantial

Select Painting

PCW Contracting Services, Inc.

Wow! It’s impossible to read these articles and not be impressed by how skillful a good mediator must be. Hopefully, you are also thinking that mediation could be a positive experience. So where do you sign up? See “Take Advantage of CAI-GLAC’s Low-Cost Mediation Service” for details. Since FOCUS always closes out its publishing calendar with a legislative update, Michael Rabkin, Esq. summarizes new 2014 laws which will affect all HOAs. Whether you are in an uncomfortable board meeting or having a strained conversation with your neighbor, the guidelines for mediation in this issue are practical tools for communicating effectively while maintaining positive relations. Good luck practicing your new skills! Warm regards, Jacklyn Wolf, Editor

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

R.W. Stein Painting, Inc.

CommerceWest Bank FRESHCO Painters Inc. International Realty & Investments MeterNet Sub-Metering & Billing Solutions Mission Landscape Services Poindexter and Company, CPAs Richardson Harman Ober PC Rose Paving Company, Inc. Silldorf & Levine, LLP South Shore Building Services, Inc. The Termite Guy & IRC Services Three Phase Electric contribution to ensure our continued success this year. Contact the Chapter Office at 818-500-8636 to sponsor a program or an event.

CAI-Greater Angeles

When a homeowner has a dispute with his or her association involving their rights, duties, or liabilities under the Davis-Stirling Act, an association is required to provide “internal dispute resolution (IDR).” Denise Iger, Esq. explains when and why IDR should be used, the impact of Assembly Bill 1728, and why associations should take a critical look at their IDR polices.

SILVER Association Reserves, Inc.

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

Best Alliance Foreclosure & Lien Services

MESSAGE

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 3

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

—Matt D. Ober, Esq. Chapter1-877-446-2529President

AS MUCH AS IT HAS BEEN AN HONOR to guide this Chapter as President for the past year, I look forward with great anticipation to passing the torch to Katy Krupp and her impressive Chapter Executive Committee of the Board that includes Lisa Tashjian as President Elect, Mike Lewis as Vice President, Joanne Peña continuing as Secretary, and Meigan Everett as Treasurer (and of course “yours truly” will join this esteemed group as Past President!). Stay tuned for great things to come.

The Executive Committee and Chapter Board of Directors will be guided by the goals set at the Chapter’s recent Strategic Planning meeting during which a select group of Chapter Leaders met and developed an action plan that will carry the Chapter into 2015. We started by reviewing the Chapter’s 2014 accomplishments, which included:

1) increased use of technology and social media to better connect with existing and potential members; 2) increased presence in regional locations to encourage member involvement in outlying areas of Los Angeles County; 3) membership enhancement in terms of our numbers and demographics— evening out the manager-to-business partner ratio; and 4) acknowledgement of the contributions of our volunteers through annual industry excellence awards and recognition for service throughout the year. Moving forward, we will continue increasing our use of social media FROM THE PRESIDENT FORWARDMOVING and finding more ways to encourage members to connect with the chapter. In addition, we will expand our regional presence by holding educational lunch programs in regional locations in addition to continuing our regional HOA Marketplaces. And finally, we will look at ways to increase membership value and benefits by offering programs and services based on generational characteristics, looking at what is of interest to our different demographic membership groups and how each prefers to engage, to learn, to connect. Of course, we will continue to attract new members wherever and whenever possible, but not merely for the sake of becoming a larger Chapter. Our growth will be measured and meaningful, focused on developing our core by improving on the programs and services — “the value” that Chapter membership provides. And since it’s “all about you” our members, we look forward to your input in all matters. Look for greater opportunities to tell us what you think and how we’re doing through committees, focus groups, educational workshops and social media and, of course, faceto-face communication. We can only improve your Chapter if you tell us what you want. We’re listening. On behalf of the 2014 Chapter Board of Directors, I wish you a meaningful Holiday Season with family, friends and colleagues, and a most successful beginning to 2015.

4 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter MEDIATION –

In the past, the old cry “Litigate!” was often heard in an effort to resolve conflicts within a community association neighborhood. However, today many HOA boards and community members facing disputes are electing to go the “mediation route” instead of litigation. Mediation is the facilitated dialogue and negotiation of disputes where the parties are at cause over the outcome. This is done by utilizing the services and expertise of a trained “neutral” called a mediator. Mediation, a form of Alternative Dispute Resolution (ADR), can be instrumental in resolving common HOA-related disputes and bringing a community back into harmony.

In a recent dispute I helped resolve between a homeowner and an HOA in a condominium complex, the HOA had claimed the homeowner was not properly maintaining his balcony which was exclusive use common area, thus causing water damage to the neighbor’s unit below. The homeowner, on the other hand, claimed that the damage was due to a construction defect. Both sides had become entrenched in their positions over time prior to opening a constructive dialogue in mediation. But as a result of the mediation, after each side was invited to calmly listen to one another and their experts, discuss options and consider the possibility of the cost and potential outcomes of a trial, both parties became motivated to work together for a common solution. The HOA and homeowner then decided

A good mediator does this by acting as a prism, inspiring participants to causatively dissect and examine their disagreements, find common ground and new, previously unseen paths to resolution. The participants are encouraged to innovate, discover and share a variety of fresh, enlightened viewpoints in a more comfortable, less formal setting than a court room. Therefore, mediation is most often far less expensive and is faster than litigation, and usually leads to a satisfying, collaborative resolution in a confidential setting.

The Best Alternative for Resolution of Common HOA Disputes

In mediation, the mediator renders no decision, but helps the participants reach a mutually agreeable decision. The mediator simply assists the participants, along with their respective legal counsel, to personally take on the responsibility of solving their disagreement themselves, without a judge or jury.

It has often been said, “Good fences make good neighbors.” Fences can bring peace, or conveniently isolate or separate people when disagreements flare. But in the case of neighbors bound together in a community association relationship who are in a dispute, neighbors cannot easily isolate themselves from each other and the community of which they are members and share common ownership. There are no “fences,” figuratively speaking, in an HOA situation, to reduce tensions or block out problems. So problems must be confronted and handled quickly to bring peace amongst neighbors and restore equilibrium to the community at large.

>>> By Barry Ross, Esq.

Mediation is effectively used in a variety of HOA-related disputes such as disputes between neighbors, matters regarding HOA fines, penalties, and violations, disagreements over governing documents, architectural review committee issues, assessments and dues, voting rights and privileges, association elections, pet, smoking and noise matters, signs and flag disagreements, construction defect litigation, and even third party vendor disputes with contractors, architects, and other HOA vendors.

The mediator is called a “neutral” because he or she is impartial and unrelated to the parties, the dispute and the HOA, and does not have a stake in the outcome other than the success of the process.

PMP has been an active CAI member since 2009. The company’s portfolio of association clients number more than seventy throughout the Los Angeles area. To earn the accreditation, companies must meet financial management and reporting requirements for client associations’ bank accounts, reserve funds, budgets and expenditures, and must maintain fidelity, liability and workers compensation insurance. The company must have three years of experience managing client community associations, and at least fifty percent of the company’s qualifying managers must hold a PCAM®, AMS®, CMCA® or Certified Property Manager (CPM®) credential. AAMS-accredited companies must commit to continuing education for all management staff and adhere to CAI’s Professional Code of Ethics. Less than 300 management companies in the United States have earned the highest level of professional recognition in the community association field.

Annette Abernethy Vice President | (310)

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 5 CashSolutionsManagement MultipleOptionsPaymentOnline Access and Research Innovative Lockbox Processing CapabilitiesAssociationHomeownerLoans Member FDIC pacificwesternbank.com HOA Banking Solutions Responsive. Experienced. Creative.

Congratulations to Property Management Professionals, LLC.

aabernethy@pacificwesternbank.com996-9105

This full-service management company with offices in Valencia, Los Angeles and Westlake has been awarded the Accredited Association Management Company (AAMC®) designation from CAI. This is the only “Company” designation of distinction in our industry. It is the ninth company in the Greater Los Angeles area to receive this national designation.

Tonya Guyot Assistant Vice President | (310) tguyot@pacificwesternbank.com996-9106

Barry Ross, Esq. is a full-time mediator based in Los Angeles with more than 40-years of experience in the real estate and community association fields. He can be reached at barryross@ROSSmediation.com.

Vice President | (310) aabernethy@pacificwesternbank.com996-9105

Vice President | (310) tguyot@pacificwesternbank.com996-9106

PMP RECEIVES AAMC® DESIGNATION FROM CAIto share repair costs and open better communication lines between each other to ensure the repairs were done correctly and to more quickly mitigate any future disagreements. Similar to a goal often sought by participants in family mediation, one of the key purposes of community association mediation should be to protect and preserve community association relationships. Like family bonds that need to be preserved for future collaboration, community association members also need to guard their relationships that invariably will continue long after the dispute has ended. By working together with the mediator and their respective counsel in a team effort, the participants can create better attitudes towards one another while creating thoughtful, mutuallyacceptable solutions, rather than feeling left in the upset and resentment of a contentious trial. Mediation is collaborative in nature, with a goal of a harmonious outcome. It is the perfect venue for HOA-related participants to dissipate rancor and put disputes behind them so they can enjoy living together within their community environment once more.

THE STAGES OF A MEDIATION FROM A MEDIATOR’S PERSPECTIVE  By Debra L. Sheppard, Esq.

THE NEXT STAGE is presenting options for resolving the dispute. Preparation by the parties is paramount. The parties should be prepared to present information about the cost of various options. For example, if the dispute is about hardwood floors maintained in a unit which drive the owner or resident below crazy, the parties should be prepared to discuss options for other flooring and the cost of the alternative option. Additionally, there may be an option to insulate the ceiling and the cost of that should be explored before the mediation. If possible, the parties should have an expert measure or determine the sound rating of these various options. If the parties are not prepared with this information, it is unlikely that the parties will resolve their dispute. As the mediation progresses, the parties should begin to fine tune their most important demands and what is acceptable and what is not acceptable. The parties should settle in to realistic expectations and demands. For example, it is unrealistic and illegal to expect a neighbor who has five children to keep the children inside all of the time. It is realistic to require that the children be instructed not to throw rocks at windows and not to engage in other nuisance conduct. If the parties are unable to focus on their primary goals in resolving the dispute and focus on minutiae or continually change the provisions of the agreement they are negotiating, the other party may dig in his or her heels, go back to stage one, and walk away.

THE FIRST STAGE is for each party to express their feelings and initial position about the dispute. A resolution cannot be reached if the parties fail to divulge their thoughts of and emotions concerning the dispute. Sometimes this stage does not end and a resolution cannot be achieved.

THE LAST STAGE OF MEDIATION IS ACCEPTANCE.

The parties have agreed in principle to promises they feel they can live with. Settlement agreements should not be unduly complicated but should attempt to cover various scenarios because humans are involved and circumstances change. The agreement should be in writing, concise and not too long or involve too many steps or contingencies to accomplish the desired result. The agreement should be signed by both parties at the conclusion of the mediation. If the parties leave the mediation without signing an agreement, the dispute will most likely not be resolved because the parties may go back to a previous stage and be unable to move forward toward resolution. Debra L. Sheppard, Esq. is the principal of Debra L. Sheppard & Associates A PLC, a full-service law firm, located in Woodland Hills, which handles all aspects of community association representation. Debra can be reached at dsheppard@sheppard-law.com.

6 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

The mediation process requires the parties to a dispute to go through various stages of emotions in order to arrive at a settlement. All disputes are emotion-driven and when the mediator can determine what emotions are driving the dispute, there is a good chance of settling the dispute. Will the party have his or her position validated by receiving money? Does the party want some kind of action from the other party?

UNDERSTANDING

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 7

There was a great deal of acrimony and all sides needed to express their positions, many vehemently. However, despite all of the heated feelings, none of the parties had considered whether modifications to the buildings could solve the problem.

Always Expect theUnexpected 

A s an attorney and mediator for many years, I have learned the most important lesson for mediation: always expect the unexpected. Whether the parties send formal, lengthy briefs, replete with numerous citations to both facts and legal authorities, or whether they simply show up at the mandated start time, there are always surprises. A good mediator must be ready to handle any situation that arises with patience, flexibility and a sense of humor. Ideally, the participants in the mediation should also exhibit these qualities to insure a successful outcome.

8 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

Once all the parties had the opportunity to have their positions heard, the dispute was ultimately resolved. The association agreed to investigate ways to insulate the non-smoker’s unit, and the smoker agreed to pay a portion of the cost of the insulation.

In addition to confronting an unusual and emphatic pro-smoking community, I was unprepared for the onslaught of people who attended the mediation. The participants included all 5 members of the board of directors, the association’s attorney, the complaining homeowner, her attorney, and 3 other homeowners who were her allies, the smoker, her attorney, her property manager, and her two grown children, for a total of 16 participants! While I knew I would be faced with 3 parties, and had arranged for rooms for them, I did not anticipate the need for so many additional people.

I have been on the mediation panel for CAI since its inception. I recently mediated a case through the CAI program involving a complaint from an owner that second-hand smoke was permeating her unit from the unit next door, causing detrimental health effects and generally causing a nuisance. With the understanding that second-hand smoke is a declared carcinogen by the State of California, and knowing that many community associations and even entire cities have banned smoking completely, I assumed that the parties might consider forming a smoke-free complex as a way to resolve the dispute. I was wrong. The complex happened to be composed of many smokers and others who took the “don’t tread on me” slogan to heart and did not believe anyone had the right to take away another’s right to smoke. The board of directors’ position reflected the sense of the community.

In mediation, the facilities are extremely important. All sides to the dispute must be able to state their positions without being rushed, and feel that their positions are heard. Since discussions among the separate parties are to remain confidential, the facilities must allow for each side to have their own space. They must also be comfortable. The sheer number of participants in this mediation presented a challenge; finding enough chairs alone took some time. I was ultimately able to find an empty office, use of an alternate coffee room, and the necessary number of chairs to allow all sides to be able to have their comfort and their privacy.

Another interesting mediation involved an individual who owned many condominium units throughout Southern California. This owner was using the units for short-term rentals and as hotel rooms. He also had an airport pick-up business, to transport his tenants either to their “hotel” rooms in the units he owned in various condominium complexes, or By Laura J. Snoke, Esq.

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 9 to one of his units which served as a temporary way-station until their other, more traditional lodging was available.

In this case, the board had issued a multitude of fines for many months against the owner for using his unit as a hotel, but had not attempted to collect the fines which had risen to many thousands of dollars. Early in the mediation, the board told me that the fines were not important: what was important was obtaining the owner’s compliance, and they agreed to waive the fines. However, when all of the other issues had been resolved, the board then changed its mind and wanted to collect 100% of the fines. This could have derailed the resolution of this conflict, but after discussion with both sides, I recommended a solution that both parties agreed to, and the dispute was resolved. Both of these mediations had unexpected twists and turns on the way towards resolution. In the first example, I was forced to respond quickly to accommodate the sheer number of participants and put aside my initial assumptions to accommodate their prosmoking position. In the second, either one of the challenges — the inability of some of the key participants to speak English, and the 11th hour refusal of the board to compromise on the issue of the fines—could have jeopardized the mediation altogether. In both cases, I was able to adjust to the circumstances, keep the parties engaged, and facilitate a resolution.

Some people believe that a successful mediation ends where both sides are unhappy, but forced to live with their compromise. I choose to strive for a resolution that leaves both sides satisfied with the result, and pleased that the conflict is over. In my experience, when the parties feel their positions are heard and given respect, and are a part of the solution, they end up satisfied with the outcome.

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The board of directors of one of the associations in which the owner was conducting this business was fed up, and demanded that the owner comply with the CC&Rs which prohibited use of units for transient or hotel purposes. While the facilities for this mediation were appropriate, with each side having their own private, comfortable space, unexpectedly, some of the parties did not speak English, which led to difficulty in communication. All mediators will agree that the ability to communicate is instrumental in mediation and essential toward achieving a resolution of the dispute. Fortunately, one of the participants did speak both languages, and was an unexpectedly good interpreter. Often the most difficult stage in achieving resolution of a conflict is at the end of the process. When parties see that the conflict is on the way toward resolution, they sometimes have trouble letting go. The mediator’s job is to facilitate the parties’ ability to let go and see another, better way to interact.

Laura J. Snoke is an attorney and mediator, a longstanding member of CAI and a member of the CAI panel of mediators.

Laura can be reached at lsnoke@snokelaw.com

The mediator must then coax the participants back to a place where they can rationally evaluate their options and their alternatives. For example, because mediation is conducted in a somewhat informal setting relative to arbitration and litigation, but one which is nonetheless overseen by a mediator, the parties can feel free to express their emotions during mediation. This can sometimes provide a path toward rational decision making. It is the ability of a party to “let it all out” that clears the way for them to compromise and reach a settlement.

10 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter Getting

MediationHomeownerBarriersEmotionalPastin

Sometimes people just want to be heard. Some are satisfied to tell their story and vent to the mediator, and some demand that the other parties hear what they have to say. Once having been heard, these parties are often ready to ramp down and look at practical solutions.

DISPUTES ROUTINELY ARISE BETWEEN NEIGHBORS in common interest developments, whether they are condominium communities, gated communities, mixed use developments, or single family residences. So often, disputes that involve homeowners are emotionally-charged. The parties come to the table angry, resentful, hurt, fearful, or feeling vengeful. Paradoxically, since these emotions can be present even in a purely business, market relationship, they are understandably a factor in many homeowner disputes where the issues are typically very personal. One of the greatest impediments to the successful resolution of conflict is emotion. Under a behaviorist approach, it is posited that because the parties are in conflict, they are so embroiled in that conflict that they experience a high level of stress, which causes them to put blinders on and to hyper-focus only on the conflict. They have no peripheral vision which would allow them to see how this conflict integrates into the rest of their lives. They have the selectivity of considering only their own position, often consulting family and friends for opinions that are, of course, guaranteed to boost their sense of confidence. This leads to an inflated sense of power. And sometimes the attorneys get just as invested in the conflict as their clients. But, if there is so much emotion involved, can mediation actually be effective in connection with these disputes? There are several ways that emotion-laden parties can improve the chances of resolving their dispute at mediation. The first is to recognize when emotion rather than reason is directing their actions. Once having acknowledged this important fact, there needs to be an understanding that when trying to resolve a dispute, the existence of emotion as a driving factor generally works against one’s own interests. Therefore, ideally emotions should be checked at the door before entering the mediation. This can be accomplished by stepping back from the controversy, and thinking through the ramifications of moving forward with litigation or other similarly costly alternatives. Sometimes parties can do this on their own before mediation, and sometimes they need help. The mediator is hired to be the one who is not in a state of conflict, and who is charged with remaining clear and mindful of the big picture. Under these circumstances it is the mediator’s job to help shift and change the parties’ thought process. This includes working to bring the parties to the understanding that there are emotions present and how those emotions affect their decision making.

Timing can also play an important role in getting past emotional barriers in mediation. If it is convened prematurely, and one or both parties’ emotions are still raw and exposed, the mediation can fail to yield a settlement. On the other hand, given just a little time and space, and an intuitive mediator who ➥ Wendy J. Fassberg, Esq.

Wendy Fassberg, Esq. is the president of Fassberg Mediation Services, Inc. She is a private commercial mediator with a comprehensive background in real estate, construction and common interest development matters. She can be reached at wfassberg@fassbergmediation.com.

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CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 11 understands the dynamic of the situation and who recognizes very quickly the frame of mind of each party, most of these disputes can be resolved. Another common problem with parties who enter mediation emotionally charged is that they are constantly “looking sideways.” Looking sideways is where a party is more interested in how the other side is benefiting than in whether their own interests are being met. This can serve as a severe obstacle to settlement. It is important when this happens for the mediator to get the party to step back and focus on their own portion of the settlement, and how they will benefit from resolution. At the end of the day the dispute belongs to the parties. Assuming that they want to resolve their dispute, it is incumbent upon those parties to do everything they can, including controlling their emotions, to try to achieve a resolution that best satisfies their interests taking into account all of the relevant circumstances. But it is up to the mediator to read the situation and to utilize the most appropriate tools with which to help the parties to get past their emotional barriers and to make rational, informed decisions.

• Ineffective communication

What is the best action if negotiations fail? How do you respond to a negotiation you did not “win?” Are you willing to revisit? Have you learned from this particular “loss” for future negotiations?

This can explain some of the differences in the negotiation style between men and women. Each excels in his/her own way. These following terms are used when discussing negotiation techniques and are a good reminder of what we are looking for in a negotiation:

According to college professors, there are two types of strategies when talking about negotiation. They are: DISTRIBUTIVE STRATEGY: win-lose, competitive negotiation, where a long-term relationship is not important —typically attributed to the male gender.

12 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

The typical negotiation experience is about someone waiting on you to tip your hand. Are they getting impatient, are they upset; do they want what they want right now?

The

• Inflexibility of one or both parties.

BATNA – Best Alternative To a Negotiated Agreement

Goals parties have in common. Is there an agreement on both sides with both parties feeling like they “won?”

INTEGRATIVE STRATEGY: win-win, competitive negotiation, where a long-term relationship is important— typically attributed to the female gender.

• Unreasonableness of one or more parties

• Incompatible goals

DID YOU KNOW THAT NEGOTIATION IS ABOUT ART RATHER THAN SCIENCE?

ZOPA – Zone of Possible Agreement

Negotiationof

Some of these failures may be caused by the following barriers: cultural norms, self-esteem and ego, personality disorders, age, gender, language. In the world of emails, texts and new languages being created and words or phrasing having different meanings, the age of the parties can make communication more difficult. For instance, what do you think of when you hear the phrase “hook up?” The Art  By Lisa Ann Rea

Science is fact driven, while art is interpretive or how you feel, rather than looking at the facts presented. If you play blackjack, do you always hit on 16 as the books (science) say or do you go with how you feel (interpretive) and vary on whether you hit or not. What is a negotiation? It is a bargaining (give and take) process between two or more parties (each with its own aims, needs and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual interest or resolve a conflict.

ARE YOU LOOKING FOR A BETTER WAY TO NEGOTIATE WITHOUT GIVING AWAY YOUR HAND UP FRONT? DO YOU HAVE A GOOD POKER FACE OR DO YOU PUT YOUR CARDS OUT ON THE TABLE WITH NO WIGGLE ROOM? YOU MAY NEED SOME HELPFUL HINTS ON THE ART OF NEGOTIATION.

As many of you probably already know, sales trainers talk about learning to flinch and recognize the flinch in the party with whom you are negotiating. He who flinches first loses the deal. Work on that poker face and find out what the other person is seeking. What good is the theory/ technique if you do not have an understanding of the basic fundamentals to negotiate? Why do negotiations fail?

The Davis-Stirling Common Interest Development Act requires an association to provide a “fair, reasonable, and expeditious procedure” for resolving a dispute between an association and a member involving their rights, duties, or liabilities under the Act, relevant portions of the Corporations Code, or the association’s governing documents.

14 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

4. The default procedures used when an association does not adopt its own procedures must indicate that the Board will designate a director to meet and confer with the homeowner. Most associations that have adopted IDR policies of their own likewise indicate that one or two directors will meet with the homeowner.

In that IDR is usually an informal meeting between one director and one complaining homeowner, there has always been a concern that the resolution will be something the other directors would not have agreed upon or that the director participating in the IDR will enter into an agreement that goes beyond the discretion provided to that director by the rest of the Board.

An association is permitted to develop its own procedure for IDR, as long as the procedures include minimum standards. Those standards include the following:

2. There must be prompt deadlines in the IDR procedure, including a maximum time for the association to respond to a request for IDR.

CHANGES TO IDR PROCEDURES

By Denise D. Iger, Esq. certain that the agreement is not going to be something the directors will later regret and to ensure that it is reduced to writing in a manner that makes sense. There has been a dispute as to whether the IDR procedure could be considered “fair” if one party had legal counsel present and whether the legislative intent of providing a quick, cheap way of resolving disputes could be met if attorneys were permitted to be involved in the Thisprocess.issuehas been resolved by Assembly Bill 1728 which makes it clear that under the default procedures or under a specificallycrafted IDR procedure, the member and the association may choose to be assisted by an attorney or another person in explaining their positions (presumably a translator or friend with good speaking skills) if they so desire. The cost for the attorney “or other person” is borne by the person requesting their attendance. This bill was intended to “level the playing field,” while also meeting the original legislative intent of providing “low-cost” options for dispute resolutions before an issue became “serious.” The legislature acknowledged that formally requiring a party be permitted to have an attorney would increase the cost of IDR, but apparently, the idea that a party would have the option of assistance (legal or otherwise) outweighed the concern regarding increased costs for the participants. a result

3. If the homeowner participates, but there is no resolution, the homeowner may still “appeal” to the Board.

of this Statement.PolicythecontainedIDRlookaneedassociationshomeownersbill,totakecriticalattheirpoliciesinAnnual

Perhaps what has been most troubling to many attorneys is the fact that the Civil Code provides that any resolution reached during IDR will be binding on the association and “judicially enforceable” if it is not in conflict with the law or the governing documents.

As a result of this concern, many associations have been insisting that the association’s legal counsel participate in the more contentious IDRs in order to be

1. Either the association or the homeowner may invoke IDR, but the association, unlike the homeowner, is compelled to participate if it receives a request for IDR. The request must be in writing.



This procedure is called “internal dispute resolution” commonly referred to as “IDR.”

Denise D. Iger, Esq. is a senior attorney at Hickey & Petchul, LLP, a law firm serving community associations throughout Southern California. She can be reached at diger@hplaw.net.

Additionally, now is a good time for boards that have not previously adopted a customized policy to consider whether doing so would be in the best interest of the membership.

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 15

As a result of this bill, homeowners associations need to take a critical look at their IDR policies contained in the Annual Policy Statement. Amendments to the policy are likely required so that the policy reflects the changes in the law. Ideally, this should be done in advance of sending out the Annual Policy Statement so as to avoid two mailings.

Originally, the bill required prior notice be given to the other party informing them that additional people (like an attorney) would participate in the IDR, but the requirement was removed during the bill drafting process. However, the law does not prevent some kind of notice requirement from being added to the IDR procedure drafted for a specific association. Further, Assembly Bill 1728 provides additional clarification on what resolutions may be enforced. The law has been amended to make it clear that any agreement reached by the parties must be in writing and must be signed by both of the parties in order to be judicially enforceable.

©2014 Mitsubishi UFJ Financial Group, Inc. All rights reserved. Union Bank and Smartstreet are registered trademarks of MUFG Union Bank, N.A., Member FDIC. 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 provides solutions that make it easier to control your daily financial operations. Contact us today at 866-210-2333 to learn more. HOAbankers.com Smartstreet.com

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AIR DUCT CLEANING Action Duct Cleaning Co., Inc. ASPHALT PAVING, MAINTENANCE & SEAL COAT Rose Paving, Inc. ASSESSMENT RECOVERY S.B.S. Lien Services ATTORNEYS Beaumont Gitlin Tashjian Law Offices of Michael A. Hearn Richardson Harman Ober PC Roseman & Associates APC Silldorf-Levine, LLP BANKING Mutual of Omaha Bank/CondoCerts Pacific Premier Banking & HOA Services U.S. Bank CONSTRUCTION MANAGEMENT Bethco Builders Design Build Associates Stonemark Construction Management CONTRACTORS ASR Construction DECKING WICR, Inc. Waterproofing and Decking ELECTION SERVICES Mister Parliamentarian ELEVATOR SERVICES Performance Elevator Contractors, Inc. FENCING Fenceworks, Inc. FINANCIAL MANAGEMENT SERVICES Mission Association Financial Management, Inc. FIRE & WATER CLEANUP & RESTORATION Servpro of Burbank, Chatsworth, Van Nuys & Crenscenta Valley State Restoration, Inc. FIREPLACE CLEANING/MAINTENANCE/RESTORATION Fireplace & Venting Solutions by The Chimney Sweeper INSURANCE SAX Insurance Agency Steven G. Segal Insurance Agency, Inc. Timothy Cline Insurance Agency, Inc. IRRIGATION SERVICES The Toro Company JANITORIAL Personal Touch Cleaning & Maintenance, Inc. LANDSCAPING Mission ValleyStayOakridgeLandscapeLandscapeGreenInc.CrestLandscape Maintenance METERING PRODUCTS & SERVICES MeterNet Sub-Metering and Billing Solutions DDM Metering Systems, Inc. PAINT SUPPLIERS Behr Paint Corporation/THE HOME DEPOT USA PPG Architectural Coatings Vista Paint Corporation PAINTING CONTRACTORS A. ALLBRIGHT 1-(800) PAINTING CertaPro Painters Ltd. Ferris Painting, Inc. R.W. Stein Painting, Inc. Select Painting Super Painting Co. PEST CONTROL Animal & Insect Pest Management, Inc. Critter Busters, Inc. Payne Pest Management POOL MAINTENANCE Aqua Creations POWER WASHING/WINDOW WASHING West Coast Maintenance, Inc. RESERVE STUDIES Association Reserves Inc. ROOFING Adco Roofing & Waterproofing, Inc. SECURITY Guard-Systems, Inc. Securitas Security Services USA, Inc. SECURITY HARDWARE Mulholland Security Centers, Inc. EVENT SPONSORS A.ALLBRIGHT 1-(800) PAINTING FirstService Residential Law Offices of Michael A. Hearn Silldorf-Levine, LLP Stay Green Inc. BAR SPONSORS Bethco Builders Pacific Premier HOA & Property Banking DINNER WINE SPONSOR BELFOR Property Restoration PARKING SPONSOR Securitas Security Services USA, Inc. OctoberThursday,2,2014 Hilton Woodland Hills Homeowners Association Marketplace Community Association Institute Greater Los Angeles Chapter Presents EXHIBITORS THANK YOU

SAN FERNANDO VALLEY HOMEOWNERS MARKETPLACE HIGHLIGHTS

More than 120 HOA board members and managers attended our October 2 Homeowners Association Marketplace at the Woodland Hills Hilton. This was the second of three regional events planned this year to provide an opportunity for local managers and boards to first network with service providers in a relaxed Meet and Greet reception, and then attend a hosted dinner and educational presentation. Moderated by Matt Ober, Esq. (Richardson Harman Ober PC), guest speakers Jeffrey Beaumont, Esq. (Beaumont Gitlin Tashjian) and Jasmine Fisher, Esq. (Adams Kessler PLC) presented new developments in the law and answered questions.

We sincerely appreciate the hard work of our HOA Marketplace Committee members who planned this event: Committee Chair Alan Denison (Stay Green Inc.), Carol Brockhouse (CoastManagement.net), Dori Kagan (Pacific Premier HOA Banking & Property Services), Sascha Macias (FirstService Residential), Jeremiah Masopust (Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley), Lisa Ann Rea (Mutual of Omaha Bank/ CondoCerts), Mike Roberts (Oakridge Landscape) and Rickey Teems (Securitas Security Services USA, Inc.)

ASSOCIATION

eliminate one candidate from the list. A mediator is selected by the Chapter Office based upon the parties’ choices and mediator availability, and the mediator is then notified.

● Place & Time: After the mediator is selected, the mediator’s office will contact all parties to establish a place and time for the mediation. They will also explain the fee structure: $400 for the first three (3) hours of mediation. If the parties wish to continue the Mediation beyond three (3) hours, the cost must be mutually agreed to between the parties and the Mediator, which rate shall be fully disclosed to the parties prior to the commencement of the Mediation session . After the first three hours, the Mediator’s fee may not exceed $300 per hour. Most often, the parties agree to split the mediation cost. This cost is paid at the time of mediation, usually by check made payable to the mediator.

HOW WILL THE MEDIATION TAKE PLACE?

18 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

STARTING MEDIATIONTHEPROCESS

THE CAI-GLAC MEDIATION SERVICE was established several years ago to provide an economical and efficient means to resolve disputes between community associations and their members The Service utilizes qualified, experienced and knowledgeable mediators who have agreed to provide their services at a reduced rate. This service is available to both members and non-members, to community associations, community managers and industry service providers.

To initiate the mediation process, one of the parties completes a Request for Mediation Form and sends this Request along with a $100 administrative fee to the Chapter Office (130 N. Brand Blvd., Suite 305, Glendale, CA 91203. Note: Both parties must agree to go to mediation prior to submitting the Request. A response letter is then generated, which provides the parties with a choice of three mediators. Each party must

OFADVANTAGETAKECAI-GLAC’SLOW-COSTMEDIATIONSERVICE

● Mediation Rules: At the mediation, the Mediator will provide an explanation of the Mediator’s role, in addition to the rules, policies, and procedures to be followed in the mediation. Some basic rules include: 1) one person speaks at a time; 2) no name calling; and 3) be ontime.

● Finding Agreement: The Mediator is not empowered to make a decision in the case or impose a resolution. The Mediator will attempt to point out common ground and help the parties create options for resolution. However, it will be up to the participants to select what solutions will work best for resolving the conflict. For this

Simply call the CAI –Greater Los Angeles Chapter Office at (818) 5008636, and they will put you in touch with one of our mediation experts. To schedule a mediation or obtain more information, visit the Chapter’s Web site at www.cai-glac.org.

● Mediation Summary: Prior to the mediation, each participant will be contacted by the mediator and either interviewed briefly over the phone or asked to submit a mediation summary form outlining the nature of the dispute.

If the parties reach a consensus for resolving the dispute, the Mediator will assist the parties in writing out their agreement. A written agreement signed by the parties at the conclusion of the mediation may prevent future conflict or confusion.

● Parties Statements & Witnesses: Mediation is a structured but not highly formal process, and each party will be encouraged to speak openly regarding the issues. At the beginning, each party will be given an opportunity to make an opening statement following reason, the mediation should include principals representing each party that are empowered with sufficient decision making authority to resolve the dispute.

which the Mediator will ask questions and begin the process towards finding a resolution. Participants may invite witnesses, experts, legal counsel, and other pertinent parties or individuals, but it is not necessary to do so. Participants should notify the Mediator of all individuals planning to attend the mediation session. In mediation, importance lies in communication… communicating your concerns clearly to the other party, and just as important, listening to their concerns as well.

What if I have more questions?

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 19

20 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter M Community Associations Institute Greater Los Angeles Chapter Presents MORE THAN 70 HOA BOARD MEMBERS and managers attended our November 6 Homeowners Association Marketplace at the Glendale Hilton. Local community managers and boards had the opportunity to first network with service providers in a relaxed Meet and Greet reception, and then attend an educational presentation where attorneys Matt Ober, Esq. (Richardson Harman Ober PC) and David Wankel, Esq. (Hickey & Petchul, LLP] presented new developments in the law and answered questions posed by Dave Brock, PCAM® (Beven & Brock). We sincerely appreciate the hard work of our HOA Marketplace Committee members who planned this event: Committee Chair Alan Denison (Stay Green Inc.), Carol Brockhouse (CoastManagement.net), Dori Kagan (Pacific Premier HOA Banking & Property Services), Sascha Macias (FirstService Residential), Jeremiah Masopust (Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley), Lisa Ann Rea (Mutual of Omaha Bank/ CondoCerts), Mike Roberts (Oakridge Landscape) and Rickey Teems (Securitas Security Services USA, Inc.) Salute To Our Veterans HOMEOWNERS ASSOCIATION MARKETPLACE

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 21 ★★★★★★★★★★★★★★★★★★ SPONSORS ★★★★★★★★★★★★★★★★★★★ BAR Popular Association Banking PARKING Securitas Security Services USA, Inc. ASSESSMENT COLLECTION S.B.S. Lien Services ATTORNEYS Richardson Harman Ober PC The Miller Law Firm BANKING Mutual of Omaha Bank/CondoCerts Union Bank HOA Services CONSTRUCTION MANAGEMENT Design Build Associates CONTRACTORS CBI-Collins Builders, Inc. FENCING Duramax Building Products FOUNTAINS California Waters INSURANCE Steven G. Segal Insurance Agency, Inc. Timothy Cline Insurance Agency, Inc. LANDSCAPE MAINTENANCE & DESIGN Marina ValleyCrestStayMissionLandscapeLandscapeGreenInc.Landscape Maintenance METERING PRODUCTS & SERVICES MeterNet Sub-Metering & Billing Solutions PAINT SUPPLIERS Dunn-Edwards Paints Vista Paint Corporation PAINTING CONTRACTORS CertaPro Painters Ltd. EmpireWorks Reconstruction & Painting Ferris Painting, Inc. FRESHCO Painters, Inc. Super Painting Co. PAVING Rose Paving Company, Inc. PEST CONTROL Accurate Termite & Pest Control ROOFING Adco Roofing & Waterproofing, Inc. SECURITY Guard-Systems, Inc. Platinum Security, Inc. Securitas Security Services USA, Inc. SECURITY HARDWARE Mulholland Security Canters, Inc. WATERPROOFING WICR, Inc. Waterproofing & Decking Thank You To Our Sponsors & Exhibitors

bills related to

associations.

22 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter ★★★ By Michael W. Rabkin, Esq. Governor Brown signed into law numerous bills which affect all homeowners associations. Unless otherwise indicated, these new laws become effective January 1, 2015. I. NEW LAW: Urgency Drought Relief Legislation Regarding Owner Reduction or Elimination of Watering of Landscaping (AB 2100-Campos); Elimination of Turf (AB 2104 –Gonzalez); and Recycled Water and Pressure Washing (SB 992 -Nielsen

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In order to conserve water during California’s historic drought, this summer Governor Brown signed into law three landscaping homeowners AB 2100 became effective on July 21, 2014, and AB 992 became effective on September 18, 2014, as “urgency legislation.” AB 2104 will become effective on January 1, 2015.

NO FINES OR ASSESSMENTSAB 2100 (CAMPOS) Under existing law, governing documents of a homeowners association are void and unenforceable if they do any of the following: (1) prohibit or include conditions that have the effect of prohibiting low water-using plants as a group; (2) restrict compliance with a water-efficient landscape ordinance adopted by a local government; or (3) prohibit compliance with any regulation or restriction on the use of water due to severe water shortage.

Although an association may not be able to fine an owner who allows his or her lawn to go brown, we believe that an association can (and should) send one notice of violation to an owner who appears to have reduced or stopped watering his or her landscaping, informing the owner that while the owner may be excused temporarily by law from watering his or her landscaping, as soon as the declaration of drought is lifted, the owner will be obligated to restore his or her landscaping to an attractive condition. In this way, it will be clear that the association has not waived its right to enforcement, and it permits the association to disclose the unresolved violation during escrow to a new owner. Additionally, it is important to note that nothing in the new law releases an owner from complying with other landscaping maintenance requirements in an association’s governing documents, such as keeping landscaping neatly trimmed and free of weeds. An association can still impose a fine (after notice and hearing) against an owner if the owner does not mow his or her lawn as may be required by the association’s governing Unfortunately,documents.leftunanswered by the new law is whether an association can take other enforcement action besides a “fine or assessment” (e.g., a suspension of voting rights and/or an action for injunctive relief) against an

CONTINUED ON PAGE 24

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 23

AB 2100 builds on these existing protections related to water-saving plants and ordinances by adding a new protection for owners desiring to reduce water usage during the drought. As revised by AB 2100, Civil Code Section 4735 now prohibits an association from imposing “a fine or assessment” against an owner for reducing or eliminating the watering of vegetation or lawns during any period for which either the Governor or a local government has declared an emergency due to drought (unless, as described below in SB 992, the association uses recycled water for landscape irrigation). So, if an owner in a homeowners association decides to reduce or stop watering his or her landscaping in order to help drought efforts, the owner cannot be fined for the resulting unattractive appearance of such landscaping (e.g., a brown lawn).

24 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter

ABILITY TO REPLACE EXISTING TURF WITH LOW WATER-USING PLANTS –AB 2104 (GONZALEZ) As mentioned above, under existing law, the governing documents of a homeowners association may not effectively prohibit the use of low waterusing plants as a group. As revised by AB 2104, Civil Code Section 4735 states that the governing documents of a homeowners association may not prohibit, or include conditions that have the effect of prohibiting low water-using plants as a group or as a replacement of existing turf. Accordingly, a homeowners association may no longer prohibit (or enforce restrictions that prohibit) an owner from replacing his or her lawn with low water-using plants; however, we believe that the Board of Directors of a homeowners association may determine which specific low water-using plants may be used.

This bill also adds a new Civil Code Section 4736 which declares as unenforceable any provision in an association’s governing documents which mandates pressure washing of the exterior of a separate interest and any exclusive use common area appurtenant thereto during a declared drought, unless non-potable water is used.

Summary of New Legislation owner who elects not to water his or her landscaping in response to the declared drought. Most likely, the author of AB 2100 intended to prohibit all enforcement action by a homeowners association against an owner for reducing or eliminating watering, but that is not how the new law is drafted. Nevertheless, we believe associations should proceed with caution before taking any enforcement action (other than a notice of violation).

EXCEPTION TO BAN ON FINING FOR RECYCLED WATER; PRESSURE WASHINGSB 992 (NIELSEN) This is the third bill in two months signed by Governor Brown which revises Civil Code Section 4735. This bill clarifies (as mentioned above) that an association may impose “a fine or assessment” against an owner for reducing or eliminating the watering of vegetation or lawns during any period for which either the Governor or a local government has declared an emergency due to drought if the association uses recycled water for landscape irrigation.

CONTINUED FROM PAGE 23

TYPE OF SOLAR ENERGY SYSTEM EXISTING LAW NEW LAW Solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law “Significantly” means an amount exceeding 20% of the cost of the system or decreasing the efficiency of the solar energy system by an amount exceeding 20%, as originally specified and proposed “Significantly” means an amount exceeding 10% of the cost of the system, but in no case more than $1,000, or decreasing the efficiency of the solar energy system by an amount exceeding 10%, as originally specified and proposed

Photovoltaic systems that comply with state and federal law “Significantly” means an amount not to exceed $2,000 over the system cost as proposedoriginallyexceedingefficiencyorspecifiedoriginallyandproposed,adecreaseinsystemofanamount20%asspecifiedand

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 25 PACIFIC UTILITY www.PacificUtilityAudit.comAUDIT1-800-576-1010Since1989 • Determine whether or not you are entitled to refunds as a result of utility company over charges, and secure those refunds for you... retroactively. • Enable you to enjoy on-going utility savings as you avoid needless overcharges and utility billing errors in the years ahead. • Obtain the lowest possible water, sewer, telephone, trash, gas and electric utility bills in the Whatfuture.We Can Do For You: EXPEDITING INSTALLATION OF SOLAR ENERGY SYSTEMSAB 2188 (MURATSUCHI)

“Significantly” means an amount not to exceed $1,000 over the system cost as proposedoriginallyexceedingefficiencyorspecifiedoriginallyandproposed,adecreaseinsystemofanamount10%asspecifiedand

CONTINUED ON PAGE 26

Furthermore, existing law requires that an owner’s application for approval to install a solar energy system be approved in the same manner as other requests for architectural improvements and requires that the approving entity (e.g., the board of directors or the architectural committee) provide a written decision

It has been the longstanding policy of the State of California to promote the use of solar energy systems and to minimize obstacles to their use. To this end, existing law provides that the governing documents of a homeowners association cannot effectively prohibit or restrict the installation of a solar energy system; however, a homeowners association may impose “reasonable restrictions” on such installation that do not “significantly” increase the cost of the solar energy system or “significantly” decrease the efficiency of such system.

TRANSFER DISCLOSURES –AB 2430 (MAIENSCHEIN)

The lowering of the threshold for what constitutes an unreasonable restriction on solar energy system installation is likely to make it more difficult for associations to influence where and how solar energy systems are installed on an owner’s lot. Additionally, the new law streamlines the architectural review process by reducing the review period from 60 days to 45 days under the new law. Likewise, under this new law, local governments will be required to adopt an expedited permitting process for small residential rooftop solar energy systems.

26 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter to the owner within 60 says or the application shall be deemed approved in most Undercircumstances.thenewlaw,it should be even easier for owners in homeowner associations to install solar energy systems. Notably, the new law revises the definition of “significantly.”

CHANGES TO INTERNAL DISPUTE (CHAU)PROCEDURESRESOLUTION-AB1738

The new law also makes clear that agreements reached through the IDR process must be in writing and signed by both parties to be judicially enforceable.

Existing law requires that, upon request from an owner, an association must provide certain specified documents relating to the transfer disclosures which an owner is required to provide to a prospective purchaser of the owner’s unit, and provides that an association may collect a reasonable fee for the delivery of such documents. This bill makes significant changes to the existing disclosure process and fee structure. Specifically, under the new law:

Summary of New Legislation CONTINUED FROM PAGE 25

Under existing law, each homeowner association must provide a fair, reasonable and expeditious procedure for resolving a dispute between the association and a member involving their rights, duties and liabilities under the Davis-Stirling Common Interest Development Act (the “Act”), the California Nonprofit Mutual Benefit Corporation Law and the association’s governing documents. An association can craft its own internal dispute resolution (“IDR”) policy which must meet certain minimum standards or it can rely, by default, on the statutory IDR procedures set forth in the Act. Existing law is silent as to whether a member or an association may have legal counsel or other person present when the parties meet and confer. This law clarifies that, regardless of whether an association drafts its own IDR policy or follows the default statutory IDR procedures, the member and the association may be assisted by an attorney or other person (at their own cost) to explain their positions.

PERSONAL AGRICULTURE ALLOWED IN BACKYARDSAB 2561 (BRADFORD) The intent of this law is to remove obstacles to the practice of growing edible fruits and vegetables in urban and suburban residential neighborhoods for personal and community use or consumption. Under the new law, any provision in an association’s governing documents which effectively prohibits or unreasonably restricts the use of a homeowner’s backyard for personal agriculture is void and unenforceable. Owners will be permitted to cultivate edible fruits and vegetables (not including marijuana or illegal or unlawful crops or substances) for personal use or donation in yards that are designated for the owner’s exclusive use, subject to reasonable restrictions which may be imposed by the homeowners association. For purposes of this new law, “reasonable restrictions” are restrictions that do not significantly increase the cost of engaging in personal agriculture or significantly decrease its efficiency, and include, without limitation, rules and regulations that require that dead plant material and weeds (with the exception of straw, mulch, compost, and other organic materials intended to encourage vegetation and retention of moisture in the soil) are regularly cleared from the backyard.

● A seller must provide to a prospective purchaser, at no cost, current copies of any documents specified by Civil Code Section 4525 that are in the possession of the seller.

● Fees for any documents required to be provided to the seller shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction

MAINTENANCE AND REPAIR RESPONSIBILITIES – AB 968 (GORDON)EFFECTIVEJANUARY

This bill, which does not go into effect until January 1, 2017, attempts to clarify the responsibility to maintain, repair and replace common area, separate interests and exclusive use common areas. Beginning in 2017, unless otherwise provided in an association’s CC&Rs:

● The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser

● An association must send the estimate of the fees to be assessed for providing the requested documents prior to processing the request

1. The association is responsible to maintain, repair and replace the common area, and to repair and replace the exclusive use common area.

2. Each owner is responsible to maintain, repair and replace such owner’s separate interest and to maintain any exclusive use common area allocated to his or her separate interest.

It should be noted that the foregoing clarification of responsibilities is consistent with the position currently taken by most lawyers practicing in this area so we do not anticipate this law making any meaningful difference in the operation of most associations. Michael W. Rabkin, Esq. is a partner at Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, a law firm specializing in providing counsel to associationscommunityinCalifornia and Nevada. He can be reached at mrabkin@wrslawyers.com

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 27

● Any documents not expressly required by Civil Code Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided by the association with other documents relating to the transaction is prohibited

1, 2017

● The seller is responsible to pay the association’s fee

CAI-Greater Los Angeles Chapter have in organizing an effective education campaign aimed at informing them about the benefits of community associations, an especially important change is that there will be new committee chairmanships appointed by the new political leaders in both the Senate and Assembly. This is important, as all HOA bills must pass through two primary committees: the Housing and Community Development Committee and the Judiciary Committee before they are voted on by the full houses. New chairs mean new leadership, new direction, and possibly new staff drafting new bills affecting California housing public policy.

NEWS OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY – NOVEMBER 2014 GOAL: $22,192 100%of goal as of 11/30/14 4424 Whitsett Avenue HOA 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. Adams Kessler PLC American Technologies, Inc. Avis BeaumontHOA Gitlin Tashjian Best Alliance Foreclosure & Lien CasaCarolwoodCardiffCabriniBodgerBirndorfServicesLawOfficesParkCondoHOAVillasHOACourtO.A.Inc.HOADeValleyViewOA, Inc. Casa Loma Associations, Inc. Chalmer/Wooster Plaza HOA Chateau Delgany Estates COA Chateau Goshen HOA Concept Seven, LLC Condominium Administration Co. Coro Community Management & CulverConsultingCentrale HOA Diana Stiller, PCAM® Eight on Twenty HOA Evelyn Lifton, PCAM® Fenton Grant Mayfield Kaneda & Litt, FlorwoodLLPEstates HOA Fourth Street HOA Galaxy HOA Gold Coast Property Pros Gorham Park HOA Inc. Hacienda HOA, Inc. Harbor Knolls HOA Harbor Manor HOA Harbor Village HOA Hayworth Owners Association Hillcrest Meadows OA Hillcrest Rolling Hills HOA Hopi IdahoHOAVillas HOA Joanne Peña, PCAM® Kelton Arms COA La Grange HOA Lawford HOA Linda Healey, PCAM® Lisa Tashjian, Esq. Los Robles Condo Owners Assn. Marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Old Orchard I HOA Oro Condo HOA Pacific Sands Inc. Park Crest HOA Parkview Manor-Lockland Inc. Polynesian RichardsonRancho-GlenOAHOAHarman Ober PC Ridgeley Vista Chateau HOA Roseman & Associates APC Ross Morgan & Company, Inc. Sascha Macias, CMCA, AMS Seascape – Redondo HOA Inc. Shoreham Villas HOA Silver Spur Court HOA Silverview Townhomes HOA Inc. SK Management Company, LLC South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shore Mediterranean HOA Textile Building OA The 558 Evergreen Street HOA The Californian on Wilshire The Vista Pacifica HOA Valencia Management Group V.I.P. Goshen Assn. Inc. Villa Capri Townhomes HOA Villa Cynthia HOA Villa Pacifica T.C. HOA Villa Serena C.A. Inc. Vogue Condominiums Assn., Inc. Westside Townhouses I HOA Wilshire Regent HOA Wilshire Selby Towers East C.A. Inc. Wolf Rifkin Shapiro Schulman & Rabkin, LLP Yukon II Townhomes COA

28 www.cai-glac.org | November/December 2014

As CLAC alerts us to support or oppose bills, it is in our collective self-interest to promptly respond. There are, in certain issues, numerous other advocacy organizations working against HOAs. Our membership numbers should overcome them and will prevail if we act in concert. We will continue to inform you about pending legislation through our Web site, and occasionally by email alerts. Your response can make all the difference.

You and your colleagues and neighbors have an important role to play in educating our state legislators who need to hear from you as their constituents loud and clear … and regularly… if we are to prevail in this new session beginning December 1.

Finally, a huge thank you to everyone who attended the 2014 CLAC Benefit Dinner during the California State Legal Forum in San Diego and helped make the event a wonderful success. Next up, the 2015 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. FROM SACRAMENTO

Mark your calendars for Sunday, April 12, and Monday, April 13, in Sacramento, when we visit our legislators. Registration and sponsorship opportunities are available on CLAC’s Web site under the Events Tab.

New laws have recently been passed with which all 50,000 California community associations must comply. Many of them have been well thought-out and benefit our HOAs. At the same time, many others are pushed through the lawmaking process by marketing tactics that are politically effective or which state completely erroneous scenarios—and the hype they get causes legislators to vote in favor of them.

Contributors not pictured: Adams Kessler PLC, Cabrini Villas HOA, Savoy Community Association, Valencia Management Group

Top Row (Left to Right): Joanne Peña, Michael W. Rabkin, Esq. (Wolf Rifkin Shapiro, Schulman & Rabkin, LLP), Diana Stiller, Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Teresa Agnew (Roseman & Associates APC), Matt D. Ober, Esq. (Richardson Harman Ober PC), Tayler Walden (Concept Seven, LLC), Sascha Macias, Diane Hilliard (Ross Morgan & Company, AAMC), Lisa Tashjian, Esq. (Beaumont Gitlin Tashjian).

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 29

Bottom Row (Left to Right): Linda Healey (The Californian on Wilshire), Debbie Birndorf Zeiler, Esq. (Birndorf Law Offices), $6,700: Our Sincere Thanks to Challenge Contributors

CLAC CHALLENGE YIELDS

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.

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. Skip Daum, CAI’s Legislative Advocate in Sacramento, and Michael W. Rabkin, Esq. (Wolf Rifkin Shapiro Schulman & Rabkin, LLP) presented new California legislation passed this year and recent case law at the November Educational Luncheon.

What is CLAC?

Pauline MacLean (American Technologies, Inc.), Sid Richman (Best Alliance Foreclosure & Lien Services), Barbara Freeman (Condominium Administration Co., Inc.), Evelyn Lifton, Skip Daum (CAI-CLAC), Meigan Everett (Gold Coast Property Pros), Dina Lopez (SK Management Company, LLC), Karen Kokowicz (Coro Community Management & Consulting), Cynthia Croy (SK Management Company, LLC).

30 www.cai-glac.org | November/December 2014 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME AS OF NOVEMBER 15, 2014 BUSINESS PROFESSIONALS RECRUITER A-One Construction CAI National Burdman & Ward CAI National Code 4 K9 Security CAI National Fassberg Mediation Service, Inc. Ida Worth, CMCA®, AMS® Mission Paving & Sealing, Inc. CAI National Revo Payments CAI National Sotomayor Law Timothy Howett, Esq. The Miller Law Firm CAI National COMMUNITY ASSOCIATIONS New Horizons – South Bay Association CAI National Northridge Country Community Association Alba Monroy Northstar Condominium Owners Association CAI National Pacific Pines – Torrance HOA Ariel Hess, CMCA®, AMS® COMMUNITY MANAGERS Michelle Atkinson Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Anna Bloomfield Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Jan Christy Karen Kokowicz Coro Community Management & Consulting CCAM®, CMCA®, PCAM® Carrie Field Neda Firouz, CMCA®, AMS® HOA Organizers, Inc. Ted Loveder, CMCA®, AMS®, PCAM® CAI National The Westholme HOA Angel Maldonaldo Lisa Dale, CCAM®, PCAM® Seabreeze Management Company, Inc. Angela Nazari Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Michelle Phelps Russell Hoffman Valencia Management Group, AAMC CMCA®, AMS®, PCAM® Pam Sabo Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Nikki Sookzi Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Christopher Stuckey CAI National Lori Tamboline Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Sunil Watumull CAI National The Century Janice Wilson Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® Sarah Zemer Diane Hilliard Ross Morgan & Company, Inc. AAMC CCAM®, CMCA®, AMS®, PCAM® COMMUNITY ASSOCIATION LEADERS Steven Boettcher CAI National Jane Eiduson Lillian Schneider Experience professional delinquentrecovery.assessment 888-845-8808 www.witkinandneal.com 1/28/13 5:04 PM Page 1

CAI-Greater Los Angeles Chapter November/December 2014 | www.cai-glac.org 31 B USINESS PROFESSIONALS ABC Builds, Inc. Action Duct Cleaning Co. All Valley Washer Service Allana Buick & Bers, Inc. Allegra Professional Group, Inc. Allied Roofing and Waterproofing Systems, Inc. Birndorf Law Offices CID Insurance Programs, Inc. CommerceWest Bank, N.A. Creighton Tevlin, CPA DM Construction Services Duramax Building Products Eagle Roofing Products FHA Review By a|v|s Finley’s Tree and Landcare, Inc. Golden West Security Incorporated Gothic Grounds Management, Inc. Guard-Systems, Inc. Har-Bro Emergency Service & JohnJacksonIntegratedHOAHickeyReconstruction&Petchul,LLPSpecialistsRiskManagementInsuranceServicesR.SinnerInsuranceAgency, Inc. Jon Wayne Construction & Consulting LaBarre/Oksnee Insurance Agency, Inc. Law Offices of Laura J. Snoke Liftech Elevator Services, Inc. Minuteman Parking Company, Inc.\ Mission Association Financial Management, Inc. Mulholland Security Centers, Inc. Nautilus General Contractors, Inc. Oakmont Builders, Inc. PariserOut-Fit & Pariser, LLP Performance Elevator Contractors, Inc. Platinum Security, Inc. Prendiville Insurance Agency, Inc. ProTec Building Services Robert W. Little Insurance Agency, Inc. Servpro of Santa Monica & Marina del Sherwin-WilliamsRey Paint State Restoration, Inc. The EV Structure Co. W.C. Service Company, Inc. WICR, Inc. Waterproofing & Decking COMMUNITY ASSOCIATIONS 4230 Stansbury Association, Inc. Century Hill HOA C OMMUNITY MANAGEMENT COMPANIES Appleby Real Estate Brokerage & Property Management Cammarata Management, Inc. Condominium Administration Co., Inc. EGL Properties, Inc. Porter Ranch Community Association SeabreezeManagementManagement Company, Inc., AAMC SK Management Company, LLC UNYGLOBE Management COMMUNITY MANAGERS Yuriy RobertAmiragovAvila,CCAM®, CMCA®, AMS® Bel Air Ridge HOA Sabrina Badalich Property Professionals,ManagementLLC,AAMC Ben Bar, CMCA® Allstate HOA Management Ermias Berhani, CCAM® Park Plaza Community Association John Burton Le Parc HOA Claire KristenCarafelloEvans

Brian Fleming Seabreeze Management Company, Inc., AAMC Mayra Gomez EGL Properties, Inc. Vanda Hembree Adore

Sierra Property Management

Property Management Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc. Linda Lang, CCAM® Concept Seven, LLC Diane Lortie-Dudasik, CCAM® All West Management Debbie McClean Heather Village Association Nancy Mohni, CCAM®, AMS®, PCAM® Remington Plaza HOA Sue Nelson, CCAM® Horizon Management Company, Inc. Vicki Olson, CMCA®, AMS® Property Professionals,ManagementLLC,AAMC Jacob Parvino, CMCA® Bunker Hill Tower Condo Assn. Kristen Raig, CMCA®, AMS® Rolling Hills Community Association J acquie Smith, CCAM®, CMCA® Horizon Management Company, Inc. Diane Rossiter, CMCA®, AMS® Bell Canyon Association Kathy Roberts, CCAM® La Tour Wilshire Residential Community Michelle Gibson Lakeside Village HOA Corinne Michaud, CCAM® Scott Management Company Alana Ellis Cardinal Real Estate Group, Inc. Stella Rothluebbers, CMCA® Horizon Management Company Mervyn Ward Bunker Hill Tower Condo Assn. Tracy Wolin, CCAM®, CMCA®, AMS®, PCAM® The Diplomat COA Lisa Yoo EGL Properties, Inc. COMMUNITY ASSOCIATION LEADERS Michael MaryEdieLynnDickValerieBillJeffLaverneBarthBoethlingGausepohlHarderPannellPruessRugerStovallTotten TO RENEWING MEMBERS! OUR THANKS AS OF OCTOBER 31, 2014 Building Quality Building Relationships Building Confidence 800-844-9240 www.stonemarkcm.com We manage large, complex projects and are proud to have achieved successful results for 7000+ homes, while saving community associations time & money. • Design & Construction Management • Expert Investigation & Planning • Capital Improvements • Defect Analysis & Repairs • Risk Management • Fixed Fees for Services

Luncheon Program for HOA Boards and Managers – 11:30 a.m.

DoubleTree by Hilton Los Angeles Westside, Culver City 23 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 24 Essentials of Community Leadership Workshop – 8:15 a.m. Summerwind HOA, Torrance 28-31 CAI National Law Seminar San Francisco, CA

JANUARY14

MARCH18

Tricks of the Trade for Business Partners – 9:00 a.m. Blair House, West Los Angeles 10 Long Beach Educational Program for HOA Boards – 6:00 p.m. Renaissance Marriott Hotel, Long Beach 13 PCAM Luncheon – 11:30 a.m. City Club LA, Downtown Los Angeles 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. Woodland Hills Marriott, Woodland Hills

Luncheon Program for HOA Boards and Managers – 11:30 a.m. DoubleTree by Hilton Torrance, Torrance 20 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale 25 Ponies, Prizes & Play – 11:30 a.m. Santa Anita Race Track, Arcadia 25 Valencia Educational Breakfast for HOA Boards and Managers –8:30 a.m. Bridgeport HOA Clubhouse, Valencia 27 Common Interest Development 8-Hour Law Seminar – 8:00 a.m. Sherman Oaks EVENTS

32 www.cai-glac.org | November/December 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 23 A.ALLBRIGHT 1-(800)-PAINTING 22 AIPM, Inc. 25 Association Reserves, Inc. 27 Berg Insurance Agency 7 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 15 Ferris Painting, Inc. 13 Mutual of Omaha Bank/ CondoCerts 7 NPG Asphalt 25 Pacific Utility Audit 5 Pacific Western Bank 32 Poindexter & Company, CPAs 11 Popular Association Banking 27 Preferred Commercial Painting, Inc. 24 R.W. Stein Painting, Inc. 30 Reserve Studies Inc. 9 Sandra Macdonald Insurance 11 Select Painting 31 Stonemark ManagementConstruction 19 SwedelsonGottlieb 15 Union Bank 30 Witkin & Neal, Inc.

2015 UPCOMING

FEBRUARY04

2015 PMDP National Course Schedule

SEPTEMBER 2015 9-10 Northern Virginia M-201 10-11 Northern Virginia M-202 10-11 Pleasanton, CA M-202 10-11 Destin, FL M-201 10-11 Arlington Heights, IL M-206 10-11 Seattle/Bellevue, WA M-202 10-11 Honolulu, HI M-204 30-10/2 Northern Virginia M-100 OCTOBER 2015 1-2 Palm Springs, CA M-206 1-2 Denver, CO M-204 1-2 Minneapolis, MN M-206 1-2 Somerset, NJ M-201 1-2 Nashville, TN M-350 1-3 Phoenix, AZ M-100

JANUARY 2015 22-24 Santa Ana, CA M-100 21-24 Denver, CO M-100 22-23 Orlando, FL M-206 22-23 Minneapolis, MN M-205 22-23 Portland, OR M-202 22-23 Richmond, VA M-203 22-23 Seattle/Bellevue, WA M-201 22-24 Atlanta, GA M-100

Date Location Class

FEBRUARY 2015 19-21 San Diego, CA M-100 19-20 Denver, CO M-201 18-21 Colorado Springs, CO M-100 19-21 Arlington Heights, IL M-100 19-20 Greensboro, NC M-310 19-20 Dallas, TX M-202 19-20 Houston, TX CASE 19-20 Northern Virginia M-203 26-28 Phoenix/Tempe, AZ M-100 26-28 Charleston, SC M-100 26-27 Panama City Beach, FL M-202 26-27 Richmond, VA M-206 26-27 Seattle/Bellevue, WA M-350

Date Location Class MAY 2015 27-28 Houston, TX M-201 28-29 Houston, TX M-202 28-29 St. Petersburg, FL CASE 28-29 Atlanta, GA M-203 28-29 Seattle/Bellevue, WA M-203 JUNE 2015 4-5 Phoenix/Tempe, AZ M-360 4-5 Palm Springs, CA M-205 4-6 Lancaster, PA M-100 4-5 Northern Virginia M-370 4-5 Charlotte, NC M-202 4-5 Cleveland, OH M-204 4-6 Dallas, TX M-100 22-23 Arlington Heights, IL M-201 23-24 Arlington Heights, IL M-202 25-26 Arlington Heights, IL M-204 25-26 Denver, CO M-202 25-26 Edison, NJ CASE JULY 2015 16-17 Clearwater, FL M-202 16-17 Baltimore North, MD M-202 16-18 Lisle, IL M-100 16-17 San Diego, CA M-206 15-17 Northern Virginia M-100 16-17 Orlando, FL M-204 23-24 Oxnard, CA M-204 23-24 Santa Ana, CA M-370 23-24 Wilmington, NC M-201 23-24 Houston, TX M-310 23-24 Sarasota, FL M-205 30-31 Sturbridge, MA M-330 30-31 Dallas, TX M-203 30-31 Atlanta, GA M-201 AUGUST 2015 6-8 Los Angeles, CA M-100 6-8 Boca Raton, FL M-100 6-7 Sarasota, FL M-320 6-7 Virginia Beach, VA M-204 6-8 Waterbury, CT M-100 13-14 Santa Ana, CA M-206 13-14 Colorado Springs, CO M-203 13-14 Baltimore North, MD M-204 13-14 Chicago, IL CASE 20-21 Houston, TX M-203 20-21 Raleigh/Durham, NC M-203 20-21 Myrtle Beach, SC M-201 20-22 Ontario, CA M-100

MARCH 2015 5-6 Honolulu, HI M-201 5-6 Baltimore, MD M-205 5-6 Chicago, IL M-205 2-3 Santa Ana, CA M-201 3-4 Santa Ana, CA M-202 5-6 Santa Ana, CA M-204 18-21 Denver, CO M-100 19-21 Raleigh/Durham, NC M-100 19-20 Sandy, UT M-201 19-21 Seattle/Bellevue, WA M-100 26-27 Ontario/Riverside, CA CASE 26-27 Phoenix/Tempe, AZ M-202 26-28 Natick, MA M-100 26-27 Columbus, OH M-203 26-27 Richmond, VA M-330 26-27 Kansas City, MO M-206 26-28 Houston, TX M-100 APRIL 2015 9-10 Natick, MA M-206 8-10 Northern Virginia M-100 9-10 Columbia, SC M-204 9-10 Denver, CO M-340 9-10 Indianapolis, IN M-203 9-10 St. Louis, MO M-205 9-11 Minneapolis, MN M-100 27-29 Las Vegas, NV M-100 27-28 Las Vegas, NV M-201 27-28 Las Vegas, NV M-202 27-28 Las Vegas, NV M-203 27-28 Las Vegas, NV M-204 27-28 Las Vegas, NV M-205 27-28 Las Vegas, NV M-206 27-28 Las Vegas, NV CASE 27-28 Las Vegas, NV M-400 MAY 2015 14-15 Birmingham, AL M-201 14-15 Santa Ana, CA M-205 13-16 Vail, CO M-100 14-15 Portland, ME M-201 14-16 Baltimore North, MD M-100 14-15 Edison, NJ M-360 14-16 Chicago, IL M-100 14-15 Cincinnati, OH M-204

Date Location Class OCTOBER 2015 22-23 Sacramento, CA M-205 22-24 Orlando, FL M-100 22-23 Racine, WI M-202 22-23 Wilmington, NC M-204 22-24 Sandy, UT M-100 22-23 Northern Virginia CASE 22-24 Virginia Beach, VA M-100 29-30 Santa Ana, CA M-203 28-31 Denver, CO M-100 29-30 Dallas, TX M-201 29-31 Honolulu, HI M-100 29-30 Valley Forge, PA M-202 29-30

Baltimore North, MD M-206 NOVEMBER 2015 5-6 Natick, MA M-202 5-6 Northern Virginia M-205 5-6 Fort Myers, FL M-202 5-7 Baltimore North, MD M-100 5-7 Long Island, NY M-100 5-6 Austin, TX M-350 12-13 Los Angeles, CA M-320 12-14 Lisle, IL M-100 12-14 Seattle/Bellevue, WA M-100 12-13 Phoenix/Tempe, AZ CASE DECEMBER 2015 3-5 Santa Ana, CA M-100 3-5 Myrtle Beach, SC M-100 3-4 Northern Virginia M-206 3-4 Greensboro, NC M-205 3-5 Houston, TX M-100 For current www.caionline.org/pmdpinformationcoursevisitor call a member of our customer service team at 888-224-4321

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 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 2015 Condominium Bluebook Today! Price: $26.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org