Focus Magazine - September/October 2014

Focus

September/October 2014

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

What’s Your Board’s Legacy?

Leadership Within the Community Becoming a Remarkable Leader

SAVE THE DATE:

Casino Night & Awards Gala November 15

Community Leadership

2014 BOARD OF DIRECTORS OFFICERS Matt D. Ober, Esq., President Richardson Harman Ober, PC, 626-449-5577 Katy Krupp, President Elect Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 Michael Lewis, CCAM®, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012 Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995

NEWSWORTHY 4 Community Vision Planning: What’s Your Board’s Legacy?

6 Leadership Within the Community 8 Rights and Responsibilities for Better Communities 10 CAI Membership Benefits for the HOA Volunteer Leader 12 Becoming a Remarkable Leader

Gregg Lotane, CCAM®, PCAM®, Treasurer The Wilshire Condominiums, 310-446-5333

18 Blessed Are the Peacemakers: Helpful Tips For Successful ADRs

DIRECTORS

20 Financial Lessons Learned: An Overview

Carol Brockhouse, AMS® CoastManagement.net

22 CC&Rs: Comfortably Broken In or Time to Replace?

Donald Campbell, CCAM®,CMCA®, AMS® Wilshire Regent HOA

24 NEWS FROM SACRAMENTO

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

26 COMMUNITY OUTREACH NEWS: CAI-GLAC Believes In Giving Back To Communities In Los Angeles County

Pamella De Armas SAX Insurance Agency, 310-740-4274 Robert Ridley, Esq. Castlegate HOA, 213-626-0291

CHAPTER UPDATE

Lynn Ruger Warner Club Villas HOA, 818-703-7090

2 Note from the Editor’s Desk

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

3 Message from the President

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2014 COMMITTEE CHAIRS AWARDS 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 FINANCE Jolen Zeroski, CMCA®, Union Bank HOA Services GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE Alan Denison, Stay Green Inc. MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP

NOTEWORTHY 3 Essentials of Community Leadership Workshop 14 Homeowners Association Marketplace 16 Wine NIght Highlights 31 CAI Legal Forum: California Communities

FYI

On the Cover

31 CAI-GLAC Membership News 32 2014 Upcoming Events 32 Advertisers Index 32 Advertising Information

PROGRAMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire

Briarcliffe Townehomes Association, Inc. Reseda

SAVE THE DATE: Casino Night & Awards Gala November 15

PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Matthew Gardner, Esq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.

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.

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

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.

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

National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org

CAI-Greater Los Angeles Chapter

STAY CONNECTED:

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

September/October 2014 | www.cai-glac.org

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five essential skills for a leader, and roles that those leaders will play in achieving success. Boards that follow those guidelines can expect to find members eager to assist in carrying out their community vision.

T

HE APPROACH OF FALL AND WINTER means that our communities are already looking at planning for next year’s budget and repairs.

But planning is about more than just checking items off of a list. This issue asks our members to take a step back and think about how we are planning for better communities.

NOTE

There is no better time for an effective leader than when we face a problem or dispute. The Honorable Larry Stirling, co-author of the Davis-Stirling Act, shows how leadership is an important element in resolving disputes through ADR. Engaging in a good faith attempt to eliminate problems can cement the sense of community and avoid alienating those who continue to be our neighbors.

Sue Nelson, of Horizon Management Company, and Les Weinberg, of Reserve Studies, Inc., remind us FROM THE EDITOR’S DESK why leadership plays a role Lesley Millender-Irwin, of Seabreeze in financial planning. Implementing Management Company, presents a a successful financial plan requires topic that is often overlooked in many a board that is willing to make the communities: creating a legacy. Instead tough choices. A community with a of getting wrapped up in the day-to-day strong financial foundation pays lasting functions that overwhelm many boards, dividends for its members.

Lesley reminds us that service on a Jeanne McDonald, of the Law Offices board gives directors an opportunity of Jeanne McDonald, reviews the role to plan for the long term. Those boards that governing documents should play that come in with a vision are working in planning. Members rely on their to build a thriving community. documents to help them make the right Creating a community with a vision decisions. Bringing those documents requires effective leaders. Sascha in line with our communities’ needs Macias, of FirstService Residential, gives boards the opportunity to build a offers her take on how managers can stronger foundation. work to nurture a positive working As always, Skip Daum brings us the relationship with their boards. By latest from Sacramento and illustrates providing boards with the knowledge why CAI is so vital to our communities. and information to do their job Read up on the latest updates regarding correctly, managers can do their part to IDR, maintenance, energy, and drought ensure that strong leaders emerge. legislation. Please remember to do Kevin Davis, of Kevin Davis Insurance your part to support our California Services, provides us with the basics Legislative Action Committee. needed for leadership. Kevin sets out

— Matthew Gardner, Esq.

Editor

CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles.

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www.cai-glac.org | September/October 2014

2014 CAI-GLAC Super Sponsors PLATINUM

Accurate Termite & Pest Control Fenceworks, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Pacific Western Bank Payne Pest Management Popular Association Banking Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. S.B.S. Lien Services Securitas Security Services USA, Inc. Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services GOLD A.ALLBRIGHT 1-(800)-PAINTING

Adco Roofing and Waterproofing Animal & Insect Pest Management, Inc. Best Alliance Foreclosure & Lien Services Select Painting SILVER Association Reserves, Inc. Beaumont Gitlin Tashjian Berg Insurance Agency, Inc. California Waters Critter Busters, Inc. General Pavement Management, Inc. Marina Landscape, Inc. Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc. Reserve Studies Incorporated SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc. Stonemark Construction Management SwedelsonGottlieb Timothy Cline Insurance Agency, Inc. ValleyCrest Landscape Maintenance Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

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

CAI-Greater Los Angeles Chapter

Message

and Twitter to instantaneously maximize and connect our social audience.

from the President and reaching out via e-mail and social media. We have passed the 800 mark in membership and I think that is a testament to the power of the work we’ve been doing here.

P

lease join me in welcoming to our staff Tatiana Zaza. Many of you have met Tatiana at one of our events or programs but we wanted to take this opportunity to share with you a little more about Tatiana and why we are thrilled to have her as part of our team.

Membership and Social Media go handin-hand. One of our goals this year was to expand the Chapter’s presence on Social Media and to begin using Social Media to communicate more effectively with our existing and potential members.

Tatiana’s skills and experience with Social Media have helped us reach our goal and break through the 800-member threshold. I look forward to posting, messaging or tweeting with each of you in the near future.

Best, —Matt Ober, Esq. Chapter President

F

or those of you who don’t know me, I’m Joan’s assistant at the GLAC office. Since starting six months ago, I was handed the task of liaison to the Membership Committee, therefore working with them to grow and build our numbers.

I’ve been looking for newer, innovative and greener ways of retaining our members and attracting new ones, and while I do believe in reaching out via a good old-fashioned phone call, I am a big proponent of digital connection

CAI-Greater Los Angeles Chapter

Social Media takes a break from the traditional marketing and advertising strategies and allows organizations, from radio stations to mortgage companies to the White House, to express some of the color, opinion and personality of their company that ordinarily you wouldn’t get to know or see unless you worked there or were a longtime client. People instantly communicate on a global scale today via our Social Media-based world, with sites such as Facebook, Instagram and Twitter; we have no choice but to join in and keep up, lest we lose touch with what’s going on with our members!

We have managed to create a steadily growing Facebook user membership and a small but steady group of engaged FB fans.

The same goes for Instagram where there are now 200 million active monthly users.

Not only is this a great potential networking pool, but it is also a simple, fun way to keep building our community relationships; after all that’s what CAI is about— Community. We cross post these from Instagram to our Facebook feed

My next goal is to capture our members’ Instagram and Twitter handles so that we may tag them in posts in which they may appear. In this way we are capturing more of an online audience and growing our CAI-GLAC family’s presence through a fun, modern, and VERY popular way of communicating.

Regarding events we post, if you’re already connected, join them! Invite your business partners, managers and board members, and share on your pages.

If you haven’t found us already please take a moment and add us to your Facebook family.

If you tweet, follow us on Twitter @cai_glac.

If you are on Instagram we are @caiglac.

And share, share, share!

Sincerely, — Tatiana Zaza

Have You Just Been Elected to Your Board...

Or Are Contemplating Running for a Board Seat?

CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.

Cost: Cost: $80/Member; $100/Non-member $80/Member; $100/Non-member Next Class: Next Class: April 14,November 2012 Saturday, 8, 2014

Location: Location: SummerWind HOA, Torrance TBD Go to www.cai-glac.org more Go to www.cai-glac.org forfor more details and registration. details and registration.

Approved by the Department of Real Estate as a proper use use of of association association funds. funds.

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

Saturdays. Call the Chapter Office at 323.254.9526 818.500.8636 for a Workshop Workshop schedule. schedule.

The location varies varies — - ififyou youcan canguarantee guarantee10 10attendees, attendees,we’ll we’llcome come to to your association!

September/October 2014 | www.cai-glac.org

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A

rarely discussed, but sorely needed conversation boards and members should be having is “How will this board be remembered by the community?” and “What did this board do during their tenure to improve the community?” The creation of a board’s legacy is an active, participative process which starts from the moment the board is seated. Whether the board makes a conscious decision to start the process of creating their legacy or not, the process of creating board legacy still occurs.

have the obligation to act within the scope of their authority, engage in reasonable investigation, and act in good faith and with ordinary care that they believe to be in the best interests of the community association. Boards that create negative legacies are disorganized and unprofessional in how they conduct their affairs. These boards often display hostility towards management and/or fail to provide management with clear direction and authority. Worse yet, these boards are often secretive and resist communicating with the members.

There are three distinct types of legacies which community association boards can choose to leave behind.

Third, there are boards that passively go through the motions during their terms. Through their inaction, these boards create legacies of nothingness and ineffective leadership. Two of the biggest “red flags” of an ineffective board are their inability to make tough financial decisions and consistent deferred maintenance throughout the community. Such “do nothing” boards believe it is a point of pride to keep assessments at the same amount for year after year, even in the face of deteriorated common areas.

Community Vision Planning:

Having outlined the types of legacies boards can leave, next we’ll discuss the types of control boards have in creating positive legacies.

One way a board can control its legacy is through appropriate governance.

Board governance provides the framework >>>By Lesley Millender-Irwin, CMCA®, PCAM® to increase harmony, reduce conflict and build stronger communities. By properly governing their communities, boards can ensure First, there are boards who make the conscious decision their associations are in compliance with the governing to leave a legacy of positive accomplishment and focus on documents, state and federal laws; they act as good stewards building up their communities. These boards are passionate, of the association’s financials, and they are transparent in forward-thinkers. Boards that leave positive and long-lasting communicating with the members. legacies see themselves as leaders, not just policymakers and rule enforcers. While some boards view community apathy Next, boards who want to leave a long-lasting and positive as an indicator their members are happy, boards who seek to legacy utilize strategic planning. Strategic planning requires leave a legacy of positive accomplishment work to eliminate the board to project where the association expects to be apathy and encourage member participation. in five, ten or fifteen years, and how to get there. Without strategic planning, boards cannot identify where their Second, there are boards that leave a legacy of financial association is going nor would they know how or if they ever mismanagement and can even destabilize the foundation arrive. Boards who utilize strategic planning create a positive of their associations. Board members are fiduciaries who

What’s Your Board’s Legacy?

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www.cai-glac.org | September/October 2014

CAI-Greater Los Angeles Chapter

legacy by engaging all stakeholders in the community — management, members, committees and business partners — to work together to ensure the association’s long-term goals are accomplished.

Boards who wish to leave a positive legacy embrace their roles as leaders. As leaders, they establish a clear vision, communicate that vision to members, and encourage the members to support it. These boards are adept at balancing the sometimes-conflicting interests of all stakeholders, while still moving toward the “big picture” goals. In addition to embracing their roles as leaders, effective boards also understand they serve something larger than themselves.

Servant leaders are servants first and leaders second. Boards who embrace this philosophy create positive legacies by placing the community’s interests and needs first. These boards value diverse opinions, cultivate cultures of trust, develop other leaders in the community, and act with humility and compassion. Thus, an important component of legacy requires current boards to cultivate future leaders.

Serving on an association board offers many opportunities for members to become active participants in the life and success of their communities. Board service allows members the opportunity to work collaboratively to determine the future administrative, financial, legal and operational direction of the community. The policies implemented by

CAI-Greater Los Angeles Chapter

OUR LEGACY

and the decisions made by boards have long-lasting effects and implications. From the moment a new board is seated, they should thoughtfully consider their legacy and make a commitment as a unified body to leave their association better than it was before. “Leadership is the act of making things better for others.” —Andrew Thorn Lesley Millender-Irwin, CMCA®, PCAM®, is a general manager with Seabreeze Management Company in Aliso Viejo and a member of CAI-Orange County Regional Chapter, where she also serves as a member of the Public Relations Committee. She can be reached at lmillender@seabreezemgmt.com.

September/October 2014 | www.cai-glac.org

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WITHIN THE COMMUNITY  By Sascha Macias, CMCA®, AMS®

B

y definition, a board of directors is an elected body that governs a common interest development. However, in order to maintain and foster a successful community attitude, there is more to the “job” than governing. A community association has components of a business, a government, and most importantly (and sometimes easily forgotten), a community. Homeowners not only look to the board of directors to run the business of the association, but also to lead the community in a positive direction and look out for the best interest of the members. So how can a director demonstrate good leadership? How does effective leadership affect a community? And what can managers do to foster this behavior in our volunteer directors?

While there are many definitions of leadership, in 2013, an article in Forbes Magazine defined leadership as a process of social influence, which maximizes the efforts of others, towards the achievement of a goal. This is a good description for the type of leadership that is effective in the homeowners associations that we all manage. Rather than having a board that dictates the way a community is run, I have often found

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www.cai-glac.org | September/October 2014

boards that influence or encourage members to foster a sense of community have been more successful at achieving a common goal or specific “community spirit.” Leading from a place of membership and harmony, rather than a place of authority, is often more effective in this arena.

A successful board leader should base decisions and strategies on rational judgment and accurate analysis of professional advisement, as well as base decisions on reality and the needs of the membership rather than self-interest. A leader should have an understanding of how external events will affect the organization, and should embrace and adapt to change.

In order to support the membership, this leader should be transparent, honest, and ethical, and empathize and care about implications of their actions as a board. Effective leadership can change the direction and overall atmosphere of a community. A community led with overbearing authority, lack of transparency, and/or self-serving attitudes will likely result in frustrated, angered members. This will lead to tumultuous meetings, lack of compliance, and a lack of community spirit. Conversely, a well-led community can

CAI-Greater Los Angeles Chapter

become a great source of peace for residents. Neighbors will likely have more concern for the community they live in and for the organization as a whole.

What can community managers do, to encourage volunteer board members to lead their communities in a positive direction?

Simply put— education. Our boards are made up of volunteers, some who may not know anything about association governance, policy or direction. Ensuring that we educate our volunteer members upfront will aid them in having a positive effect on their community. This may come in the form of a separate board orientation, or by providing materials for review or one-on-one time to discuss the community. Encouraging community involvement (stemming from the board) is also a great way to build a sense of trust and community. This might include participating in a local charity, or holding events

within the community to encourage neighbor interaction.

Finally, participation in industry events, such as Community Associations Institute (CAI) luncheons or educational seminars, encourages managers, and board members alike to remain involved in current legislation, education and community trends. Staying well informed of events that affect the organization, and staying connected to a community-friendly leadership organization such as CAI, will encourage continued improvement for all of us as community leaders.

...Forbes Magazine defined leadership as a process of social influence, which maximizes the efforts of others, towards the achievement of a goal.

CAI-Greater Los Angeles Chapter

What can you do to lead your community in a positive direction?

Sascha Macias, CMCA®, AMS®, is a regional director in Santa Clarita for FirstService Residential, a national fullservice management company. She can be reached at sascha.macias@fsresidential.com.

September/October 2014 | www.cai-glac.org

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RIGHTS AND RESPONSIBILITIES PRINCIPLES FOR HOMEOWNERS & COMMUNITY LEADERS

M

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

■■ Solicit input from homeowners.

www.cai-glac.org | September/October 2014

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

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

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

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

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

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

CAI-Greater Los Angeles Chapter

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

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

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

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

4. Access appropriate association books and records.

5. Prudent expenditure of fees and other assessments.

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

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

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

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

Homeowners Have the Responsibility To: 1.

2.

3.

4.

5.

6.

Read and comply with the governing documents of the community.

Maintain their property according to established standards.

Treat association leaders honestly and with respect.

Vote in community elections and on other issues.

Pay association assessments and charges on time.

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

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

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

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

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

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

3. Respectful and honest treatment from residents.

4. Conduct meetings in a positive and constructive atmosphere.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sponsored by CAI’s President’s Club

CAI-Greater Los Angeles Chapter

September/October 2014 | www.cai-glac.org

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CAI Membership Benefits for the HOA Volunteer Leader

CAI

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

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

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

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volunteer, and build consensus on critical governance issues.

HERE ARE THE SERVICES YOU’LL RECEIVE AS A CAI MEMBER: ■■ Board Member Tool Kit—A “howto” kit filled with tools, knowledge and information that help you do a better job and make it easy to serve in your role as a community association leader.

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

www.cai-glac.org | September/October 2014

zz An extensive Research Library containing thousands of articles for reference. zz A Discussion Board where you can find out how your peers are dealing with similar issues. zz Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members. zz HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents.

■■ Finding the Right Professional— Whether you are looking for professional community managers, legal advice, a reserve study, technology, bank loans, an audit, or insurance coverage, CAI is your portal to the professionals who serve community

CAI-Greater Los Angeles Chapter

associations. Go to www.cai-glac.org for a list of local service providers dedicated to this industry.

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

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

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

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

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

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

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

■■ Essentials of Community Association Leadership Workshops—The Greater Los Angeles Chapter is proud to offer its popular 8-hour HOA new board member orientation workshop facilitated by industry experts six times per year at various locations through Los Angeles County. This workshop ($80 members, $100 nonmembers) is approved by the California Department of Real Estate

as a proper use of association funds.

It includes modules on fiduciary duty, rule enforcement, reserves, insurance, finance, maintenance and board meetings.

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

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

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

What We Can Do For You: •

Determine whether or not you are entitled to refunds as a result of utility company overcharges, and secure those refunds for you... retroactively.

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Enable you to enjoy on-going utility savings as you avoid needless overcharges and utility billing errors in the years ahead.

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Obtain the lowest possible water, sewer, telephone, trash, gas and electric utility bills in the future.

PACIFIC UTILITY AUDIT www.PacificUtilityAudit.com 1-800-576-1010 Since 1989

CAI-Greater Los Angeles Chapter

September/October 2014 | www.cai-glac.org

11

What are the five skills needed to become a remarkable leader?

1. CHARACTER. Good character is one of the main components needed by outstanding leaders. If your employees and colleagues trust you and they believe you have their best interest at heart, they see your actions in a different manner than if they believe they are just simply doing your bidding. When you have good character people believe in you and want to help you succeed as a leader.

Becoming a Remarkable Leader

>>> By Kevin Davis, CIRMS™

LEADERSHIP COMES IN MANY FORMS. IN THE WORKING WORLD, IN SCHOOLS, AND IN POLITICAL OFFICES WE HAVE LEADERS OF ALL TYPES WHO MAKE DECISIONS THAT AFFECT THOUSANDS OF PEOPLE. WHAT DOES IT TAKE TO BECOME A REMARKABLE LEADER AND ONE WHO STANDS OUT FROM THE CROWD? Four basic leadership roles are required in order to be an effective and top leader: 1. CREATE A VISION. A leader needs to have a clear idea of what he/she wants to accomplish and what his/her ultimate goals are. Without this clear understanding of the vision and goals, there is no direction for people to follow.

2. DEVELOP A STRATEGY TO TURN THE VISION INTO REALITY. Once the leader has a clear vision and goals, now he/she needs to have a plan to turn that vision into reality.

3. EXECUTE THE VISION. When the strategy is in place, it’s time to execute the vision. The leader should follow up on the strategy to see make sure the vision and plan is taking hold.

4. CELEBRATE THE SUCCESS. It’s time to celebrate! Now that the leader’s plan is in place and working and there are positive results, it’s time to share that success with employees and the rest of the company. Include everyone in the success and they will feel empowered—and also feel like they played a role in the helping the company to succeed.

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2. CONNECTION. It’s important to connect with people and really make them feel important; this is how long-term relationships are built. Staying connected and in-tune with what’s going on with people helps to build strong ties and an overall better feeling with employees and customers.

3. COLLABORATION. Teamwork is an essential value and ethic required in most industries. Most experts believe that when morale is high and everyone is working together, success will follow. it’s important for employees to be team players, whether assisting co-workers on a project, teaching new hires or by following the instructions of a supervisor.

4. ENGAGEMENT. A leader with a vision for their company needs to engage employees and customers with their optimism and excitement for the future. By engaging employees in your vision you become a strong force and work together to make the vision into a reality.

5. CREDIBILITY. Building credibility happens when people believe you can help them grow and get better. In order to do this you need to provide a fresh perspective, ask key questions and be focused on their growth. It’s better to not act like a “know-it-all” because we lose credibility and become less influential than if we just ask questions and lead from a place of getting to the best answer.

One final point!

It’s tempting for some bosses to claim all the credit for great projects. However, if that happens, productivity and morale will suffer if efforts go unrecognized for good work.

The best bosses are quick to identify employees who played notable roles in an important project.

If you are a fair and trustworthy boss who recognizes and appreciates what each employee brings to the table, you will reap the benefits of loyalty from a productive and happy staff.

Kevin Davis, CIRMS™, is the president of Kevin Davis Insurance Services, an insurance agency specializing in D & O Liability, Crime, and Umbrella for the Community Association Industry. Also a past president of CAI-GLAC, he can be reached at kdavis@kdins.com.

CAI-Greater Los Angeles Chapter

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 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!

CAI-Greater Los Angeles Chapter

September/October 2014 | www.cai-glac.org

13

Community Association Institute Greater Los Angeles Chapter

Presents

Thursday, October 2, 2014

Homeowners Association Marketplace

Hilton Woodland Hills 6360 Canoga Avenue Woodland Hills, CA 91367

FEATURING

SCHEDULE

EDUCATIONAL PRESENTATION

• Meet & Greet HOA Service Providers dedicated to our industry

5:30 p.m.

Meet & Greet Service Providers to talk about present & future projects.

Enjoy Complimentary Hors d’oeuvres.

Moderator

• Free Legal Advice from a panel of experts • Opportunity to Win $100 Cash during Meet & Greet (must be present to win) • Raffle Prizes

EVENT SPONSORS

7:00 p.m.

Complimentary Dinner with Educational Presentation.

Panel of legal experts will present new developments in the law and answer questions.

BAR SPONSORS

A.ALLBRIGHT 1-(800) PAINTING Bethco Builders FirstService Residential Pacific Premier HOA & Law Offices of Michael A. Hearn Property Banking Silldorf-Levine, LLP Stay Green Inc. 14

www.cai-glac.org | September/October 2014

Matt Ober, Esq. Richardson Harman Ober PC Panelists Jeffrey Beaumont, Esq. Beaumont Gitlin Tashjian Jasmine Fisher, Esq. Adams Kessler PLC

DINNER WINE SPONSOR

BELFOR Property Restoration PARKING SPONSOR

Securitas Security Services USA, Inc. CAI-Greater Los Angeles Chapter

Service Providers in the following areas will be on hand to showcase their products and services and answer your questions.

AIR DUCT CLEANING Action Duct Cleaning Co., Inc.

FENCING Fenceworks, Inc.

ASPHALT PAVING, MAINTENANCE & SEAL COAT Rose Paving, Inc.

FINANCIAL MANAGEMENT SERVICES Mission Association Financial Management, Inc.

ASSESSMENT RECOVERY S.B.S. Lien Services

FIRE & WATER CLEANUP & RESTORATION Servpro of Burbank State Restoration, Inc.

ATTORNEYS Beaumont Gitlin Tashjian Debra Sheppard & Associates APLC 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.

CAI-Greater Los Angeles Chapter

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

METERING PRODUCTS & SERVICES MeterNet Sub-Metering and Billing Solutions 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

JANITORIAL Personal Touch Cleaning & Maintenance, Inc.

POWER WASHING/WINDOW WASHING West Coast Maintenance, Inc.

LANDSCAPING Mission Landscape Oakridge Landscape R.K. Allen Landscape, Inc. Stay Green Inc. Valley Crest Landscape Maintenance

RESERVE STUDIES Association Reserves Inc. ROOFING Adco Roofing, Inc. SECURITY Guard-Systems, Inc. Securitas Security Services USA, Inc.

September/October 2014 | www.cai-glac.org

15

OUTDOOR WINE TASTING & LIGHT MEAL AUGUST 16, 2014 EIGHTY-ONE CHAPTER MEMBERS AND FRIENDS gathered in the Santa Monica mountains at Malibu and Vine on August 16 for a wonderful evening of fine wine, sliders with smashed potato bar, and melt-in-your-mouth desserts.

It was an excellent opportunity to get together with industry friends in a casual setting. Our thanks to all of the sponsors listed here and to the Wine Night Committee for organizing the event: Co-chairs Joanne Peña (Horizon Management Company) and Jolen Zeroski (Union Bank HOA Services) and Committee Members Pamella De Armas (SAX Insurance Agency), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Pauline MacLean (American Technologies, Inc.) and Kim Province (CBCI Construction, Inc.).

Net proceeds benefit the California Legislative Action Committee



THANKS TO OUR SPONSORS 

Cordon Bleu

Wine Steward

Steven G. Segal Insurance Agency

Sommelier

Horizon Management Company

A-One Construction CBCI Construction, Inc. Guard-Systems, Inc. Marina Landscape

Epicurean

Dessert

OCBS, Inc. Pacific Western Bank

Fenton Grant Mayfield Kaneda & Litt, LLP

Raffle Prizes

Adams Kessler PLC American Technologies, Inc. Nu Air Services, Inc. Reconstruction Experts, Inc. SAX Insurance Agency

BLESSED ARE THE PEACEMAKERS:

Helpful Tips For Successful ADRs  By The Honorable Larry R. Stirling

“Blessed are the peacemakers for they shall be called the children of God.” (Matthew 5:9 from the St. James version of the Holy Bible)

I

t is not an accident that the Prince of Peace abjured all of us down through the ages to seek peace and to favor those that help us do so.

This is especially true for those estimated 14.5 million Californians presently estimated to live in homeowners associations. When more than 14 million people live in such proximity, they bring with them over 140 million toes that are easily stepped on.

I remember when my wife and I were first dating. She lived in an association in San Diego. She received a notice to appear for a disciplinary hearing because the dog doo doo in the common areas bore an incredible likeness to the dog products in her back yard. No kidding.

Fortunately, a few days later, I was playing around with a new camera and just happened to take a snapshot of a woman who was allowing her Fido to relieve himself in the common area. She turned out to be the wife of the president of the association’s board. End of my wife’s citation.

There are other ways to resolve disputes among association members besides a lucky snapshot. First, everyone can have their day in court—but before you rush to file a case, let me tell you, as a long-time municipal and superior court judge who presided over thousands of criminal and civil cases, the last place you want to be is in court. If you promise not tell anyone I mentioned this to you, I will let you in on the secret of the judicial process.

Each year millions of lawsuits are filed in California courts.

The seriousness of the cases range from first-degree murder to

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the most petty civil actions. I was once assigned a civil motion dealing with an attractive young associate lawyer who sneaked into one of the three partners’ offices after hours to steal back a love letter she had written to him because she was now dating another partner (the third!). The amount in controversy was $2.80 for the stamps and stationery, and the case would not settle because of the hard (really hurt) feelings that were embroiled.

Filing in court is expensive, time consuming, enervating, and worst of all… it’s public.

And now for the secret method for encouraging case settlements: the court simply grinds down the litigants with costs, delays, and enervating procedures until the burden of litigating begins to outweigh the cost of swallowing one’s pride and settling the case. In San Diego, fully 93% of both criminal and civil cases settle before trial for good reasons.

Why go through that if you don’t have to?

In light of the time and burden that court filing creates, procedures known as alternative dispute resolution (ADR) have been developed and adopted by governing documents.

Those procedures have been upheld as valid in the case of Mansouri v. Superior Court. Also, the Davis-(ahem) Stirling Act (as rewritten) provides that ADR should be offered in listed circumstances. (See, Civil Code Section 5930(a)).

ADR is not required prior to going to Small Claims for money damages, injunctive relief, or disputed assessments. I don’t know why not—the law just says they aren’t.

CAI and other organizations now offer low-cost ADR services in the interest of serving their membership in order to seek as much peace as possible in associations. ADR can take several forms: binding or non-binding mediation or arbitration.

CAI-Greater Los Angeles Chapter

Mediation is the friendly form where Uncle Larry tries to talk sense into everyone after hearing their concerns.

Arbitration looks much more like a court hearing including oaths, testimony, and cross examination ultimately resulting in a “ruling” by the arbiter. NEVER undertake binding anything.

Doing so gives up substantial rights available in court.

My own experience with ADR is that if it comes too early in the dispute, everyone’s nerves are still raw. Parties usually have not yet been able to vent their proverbial spleens over the latest toe to be stepped on and thus are not quite ready to settle the matter. Often, ADR is the first time the disputants have been in the room together and have not heard the other side. Thus more than one session may need to be tried before giving up and running to court.

Finally, everyone should remember, after this dispute is over, they will have to live with the other people for many years to come. Ancient wisdom tells us that we say things in haste that we will repent in leisure over many years.

So just remember… “Blessed are the peacemakers…”

The Honorable Larry Stirling is co-author of the Davis-Stirling Act and is Of Counsel at Adams Kessler PLC, a law firm serving community associations throughout California. He can be reached at LStirling@AdamsKessler.com.

CAI-Greater Los Angeles Chapter

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

September/October 2014 | www.cai-glac.org

19

FINANCIAL LESSONS LEARNED: AN OVERVIEW

By S ue Nelson, CCAM®, AMS® and Les Weinberg, RS, MBA

SOME “OLD-TIMERS” MAY RECALL the days when homeowners associations in California were a relatively new phenomenon. In the 60’s, 70’s and early 80’s—the “Wild West” days— developers would often set exceedingly low homeowners fees, apparently either to entice potential buyers or because they didn’t know better. Some boards didn’t raise fees for years on end, and homeowners came to expect minimal or no increases. What have we learned since then?

To confront the concern of insufficient funding for future needs, the 1992 Davis-Stirling Act revision legislated Reserve Studies. Up through about 2007, most Reserve Studies generally had line items only for the replacement of components with less than a thirtyyear useful life. However, as the condos

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built in the 1960’s–early 80’s aged, some “lifetime” components (such as siding, distribution piping and sewer lines) started to fail and there was no reserve funding in place for them.

Reserve Study preparers adapted to include items with less than thirty years of remaining useful life. Subsequently, many HOAs’ reserve contributions saw a significant increase. Some boards increased the HOA fees to accept this new reality, and some ignored it.

deferred. Reserve transfers aren’t made monthly or at all, and reserve cash doesn’t increase to cover upcoming needs. Reserve component replacements are deferred, and this compounds the problem. For instance, if the trim paint is put off for a few years, then instead of just re-painting, dryrotted boards and sometimes balconies and beams will need to be replaced at an exponentially higher cost. It is shortsighted to defer maintenance.

Some boards feel pressure to keep a lid on the HOA fees for a variety of beliefs, such as: low HOA fees are a hallmark of a well-run HOA; people on fixed incomes can’t afford an increase; higher HOA fees negatively impact re-sales; they personally don’t want to pay more; it would hurt their re-election chances; fully funding the reserves benefits future owners, not current owners.

If the HOA fees are insufficient to cover operating expenses and reserve transfers, then the fees should be increased and/or a special assessment levied. However, if the HOA fees have not been adequate for an extended period of time and the association is facing a deferred maintenance crisis, then a loan may be the only viable solution. To pay for the loan, the HOA fees will need to be increased or a multiyear special assessment will be needed.

The loan gives the HOA funds to fix the current deferred maintenance but does not address reserve funding for the next cycle of replacements. Many boards are hesitant to also increase the HOA fees for the next cycle while the loan is being paid off, but if they don’t, the HOA may find itself in the same boat again and need another loan in a few years’ time.

However, the board is charged with the fiduciary duty to properly assess to maintain the complex regardless of the above. To paraphrase CAI’s M-206 class, as a rule of thumb, operating cash should equal at least one month’s operating expenses plus prepaid assessments. That, plus the Reserve Study should be followed and monthly transfers made. If the HOA cannot do both, then the HOA fees are probably too low.

Reserve transfers should be viewed as paying for the depreciation while current owners have use of the facilities.

For instance, if the roof is supposed to last twenty years, then owners during that 20-year period should be putting 1/20th of the cost of the next new roof each year into reserves, as they had the benefit of the roof for that period of time. It’s pay-as-you-go… not giving money to the future owners. If the reserves are 45% funded, then prior owners only paid in 45% of what they effectively used.

When the HOA fees are too low, operating cash decreases. First, there is difficulty paying the bills. Some invoices are aged. Maintenance is

www.cai-glac.org | September/October 2014

All board members should understand and review the financials on a regular basis. Regardless of who is appointed treasurer, ALL board members are equally charged with the responsibility.

The board needs to react quickly with a mid-year special assessment if there is insufficient cushion in the operating fund to absorb unexpected overages due to increases in utilities, insurance, legal fees, mold remediation, bad debt or other items that significantly affect the bottom line.

At the very first sign that money is running short, the board and management need to open the lines of communication with the membership. It is the owners’ right to know vital information that affects

CAI-Greater Los Angeles Chapter

their investments so that they can start making financial plans for the potential impact on their personal cash flow. Plus, the more open the lines of communication, the more likely the membership will support the board’s difficult financial decisions.

As the “lowest-fees-on-the-block” properties are forced to raise their assessments due to failing components that have not been properly budgeted for, the pressure on surrounding buildings to keep fees artificially low will diminish. More owners may come to realize that in most situations it’s much less expensive to maintain a condominium unit versus a single-family home of the same size—due to the “shared” nature of most of the components. Those on fixed incomes will start to base their purchases on more realistic budgets. And, with a little more proactive communication, concepts such as “contributions to reserves are for what each owner is using while they live there, versus paying for the next owners’ roof or pool heater” will serve to make owners less resistant to paying the proper fees!

Sue Nelson, CCAM®, AMS®, is co-owner of Horizon Management Company in Torrance.

Les Weinberg, RS, MBA, is Chief Financial Officer of Reserve Studies Inc. in Simi Valley.

They can be reached at sue@horizonmgmt.com and les@reservestudiesinc.com, respectively.

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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

©2014 Mitsubishi UFJ Financial Group, Inc. All rights reserved. Union Bank and Smartstreet are registered trademarks of MUFG Union Bank, N.A., Member FDIC.

CAI-Greater Los Angeles Chapter

September/October 2014 | www.cai-glac.org

21

CC&Rs: Comfortably Broken In or Time to Replace? ➤➤➤ By Jeanne H. McDonald, Esq.

WHEN SHOULD AN ASSOCIATION HAVE ITS CC&RS REWRITTEN? THERE IS NO SET EXPIRATION DATE; WHETHER THE DOCUMENT HAS REACHED THE CRITICAL POINT DEPENDS ON MANY DIFFERENT FACTORS. HERE ARE SOME POINTS TO CONSIDER. Commercial CIDs. The Commercial and Industrial Common Interest Development Act, effective as of January 1, 2014, relieves these CIDs from the burden of complying with many requirements placed on residential CIDs. Every CID comprised exclusively of commercial or industrial units should seriously consider restating their CC&Rs to remove requirements they are no longer obligated to meet.

Old CC&Rs. It is well-known that older CC&Rs are out of compliance with current law. CC&Rs that predate the DavisStirling Act, which took effect in 1986, probably conflict with statute even in some of their most basic provisions.

Since the mid-1990s, there has been a steady stream of new statutes governing CIDs. Statutes from the past 12 years alone regulate signage, flags, electric vehicle charging stations, solar panels, low water-using plants, adoption of rules, and architectural approval procedures; these provisions are often incorporated into newer CC&Rs. Also, CC&Rs have gotten better overall as time has gone by. Since 1970, the number of CIDs in the United States has increased by over 3,000 percent. Experience gained over years of working with CIDs has resulted in more specific, better drafted CC&Rs. Generally, CC&Rs drafted before about 1995 tend to be too vague and can leave out important provisions.

CC&Rs prepared by the developer. Developer CC&Rs are usually due for a rewrite years before restated CC&Rs of the same age. The California Department of Real Estate

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(“DRE”) must approve the CC&Rs prepared by a CID’s developer. To speed up the process, developers can have the DRE pre-approve their boilerplate CC&Rs, then just fill in the most basic of blanks for their different properties. These CC&Rs do not take into consideration any unique features of a particular project. Worse, they tend to include exactly what the DRE requires of them and no more.

Very small CIDs. Because developers typically use the same boilerplate CC&Rs for all of their projects, the original CC&Rs for a very small CID can be a very poor fit. However, even though many attorneys offer a price break, cost is always a big factor. Small associations may choose the less expensive option of preparing a few amendments to address the worst of their CC&R problems.

Problematic CC&R provisions. An association’s CC&Rs may have provisions that block their project from FHA certification, or discriminate illegally against children or families, or require the association to insure unit interiors when the board expects the owners to insure their build-outs.

Other potential CC&R problems are confusion over the division of maintenance and repair responsibility, no control over hardwood floor installations or other architectural alterations, procedural requirements that conflict with statute, etc. Other issues include leasing and pet restrictions, reducing the percentage of owner approval needed for future amendments. The Board, without owner approval, can adopt amendments correcting the statutory cites to the 2014 renumbered Davis-Stirling Act, and delete discriminatory provisions and certain provisions relating to the developer.

These problems can be corrected by an amendment, but multiple amendments can be more expensive than redoing the entire document, and they create a complicated mass of overlapping documents. Still, an individual amendment or two may be the best solution, especially where cost is a factor.

Cost; likelihood of success. Cost is probably the first factor to consider. Also, there is no point in preparing new CC&Rs if it will be impossible to get the required owner approval for the document. Associations with contentious factions who will generate a strong opposition, or projects with many off-site owners who do not respond to any calls to action, may decide not to even attempt this project. However, with aggressive follow-up, associations are usually able to get the necessary owner approval.

Bylaws. I have to mention that Bylaws should be restated at the same time as the CC&Rs to eliminate conflicts or CAI-Greater Los Angeles Chapter

gaps between them. Also, the enactment in 2006 of statute requiring the secret mail-in ballot procedure means that large chunks of every set of Bylaws prepared before that date are out of compliance.

Benefits of new documents. All of these factors must be balanced against the benefits of having governing documents that comply with the law and offer as many protections as possible, especially the protections that come from clearly defining the parties’ rights, responsibilities and procedures.

That will minimize owner disputes over ambiguous obligations. Also, a good set of governing documents can act as a reference manual for the board and the owners, which helps keep down legal costs.

If you’re not sure whether you are due for a rewrite, your attorney will can tell you how out of date your CC&Rs are.

But if you have had to ignore your CC&Rs and follow the law instead, or if your CC&Rs cannot clarify who is responsible for what, these are signs that it’s time to seriously consider an update.

Jeanne H. McDonald, Esq. is the principal of Law Offices of Jeanne McDonald, an legal firm specializing in common interest development law and serving HOAs throughout Southern California. She can be reached at jhmcdonald@jhmlawoffice.com.

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September/October 2014 | www.cai-glac.org

23

NEWS

FROM SACRAMENTO

By Skip Daum

T

he legislature adjourned for the year after considering 2,540 bills and sending 808 to the Governor for his signature or veto. His deadline to act is September 30.

Bills now on his desk that concern community associations are: Assembly Bill 2561, which allows members to plant personal food gardens in their back yards. CAI-CLAC successfully lobbied to amend the bill which originally allowed gardens in the front yards. We believe the Governor will sign the measure, so be sure to plan ahead to enforce placement and maintenance of these gardens. Since the bill will take effect January 1, 2015, you may wish to adopt reasonable restrictions beforehand.

Five bills clamped down on HOAs that fine members for not watering during the Governor’s proclaimed drought. Of those, we amended Senate Bill 992 during the final week of session to promote the use of nonpotable water for landscape irrigation.

HOAs that use recycled water may continue to enforce their watering standards and rules without restriction. We expect the Governor to sign this measure, as well as its companion bill, AB 2104. Both will take effect the day he signs them as “urgency” bills.

AB 2188 expedites solar installation approvals by local governments. We tried to get an exemption for HOAs, especially when they have existing contracts with local governments regarding architectural standards for solar equipment. Because the bill’s author refused our amendment we are now urging a veto since we believe that the bill violates the constitutional ban on laws which impair existing contracts. If signed, the bill would take effect next January.

Saving the worst for last, Assembly Bill 1738 encourages members to bring their attorneys to informal dispute resolution meetings. The bill is sponsored by the California Alliance of Retired Americans and the Center for California Homeowners Association Law, a small group of “anti-HOA” people and plaintiff attorneys that assist people when suing their association.

We urge a veto because existing law already allows this, and it will increase members’ assessments as every “lawyered up” IDR will now cost an estimated $900 per meeting. In addition, AB 1738 contains no notice to either party regarding whether they will have their attorney present, and anything said in this meeting may be admissible in future lawsuits.

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

OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY – AUGUST 2014

GOAL: $22,192

69% of goal as of 8/31/14

CURRENT CONTRIBUTION TOTAL:

$15,188

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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.

Avis HOA Bodger Park Condo HOA Cardiff Court O.A. Inc. Casa De Valley View OA, Inc. Casa Loma Associations, Inc. Chateau Delgany Estates COA Chateau Goshen HOA Culver Centrale HOA Eight on Twenty HOA Florwood Estates HOA Galaxy HOA Gorham Park HOA Inc.

www.cai-glac.org | September/October 2014

Hacienda HOA, Inc. Harbor Knolls HOA Harbor Village HOA Hayworth Owners Association Hillcrest Meadows OA Hillcrest Rolling Hills HOA Hopi HOA Idaho Villas HOA Kelton Arms COA La Grange HOA Lawford HOA Los Robles Condo Owners Assn.

Marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Pacific Sands Inc. Park Crest HOA Parkview Manor-Lockland Inc. Polynesian OA Rancho-Glen HOA

Ridgeley Vista Chateau 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 Cynthia 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. Yukon II Townhomes COA

CAI-Greater Los Angeles Chapter

What is CLAC? THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (C AI) 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.

CAI-Greater Los Angeles Chapter

 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.

September/October 2014 | www.cai-glac.org

25

COMMUNITY OUTREACH

NEWS

CAI-GLAC Believes In Giving Back To Communities In Los Angeles County During the spring and summer months, members of our chapter generously donated their time and money to two worthy causes: Operation School Bell and the American Cancer Society.

We sincerely thank our Community Outreach Committee for organizing the school supplies drive and the Relay for Life event: Chair Meigan Everett (Gold Coast Property Pros) and members Noel Davis (WICR, Inc. Waterproofing and Decking) Jeanie LaCroix (BELFOR Property Restoration), Miranda Legaspi (Platinum Security), Angelique Madrigal (Ross Morgan & Company, Inc.), Joanne Peña (Horizon Management Company), Katie Swaine (Servpro of Burbank) and Ashley Swartzlander (ValleyCrest Landscape Maintenance).

RELAY FOR LIFE Each year, more than 4 million people in over 20 countries raise much-needed funds and awareness to save lives from cancer through the Relay For Life movement, which benefits the American Cancer Society. CAI-GLAC was a major participant in this year’s local 24-hour relay walk at Santa Monica College track on July 26. Meigan Everett and Joanne Peña set up camp for the Chapter and stayed overnight while members and friends joined them to walk during the 24-hour marathon. The Chapter raised $5,054 through donations to the team, a benefit raffle and item sales. Sincere thanks to all who contributed and participated!

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www.cai-glac.org | September/October 2014

2/10/14 12:08 PM

CAI-Greater Los Angeles Chapter

WE REPRESENT COMMUNITY ASSOCIATIONS

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

Ventura County 805.650.7899

www.lawforhoas.com www.hoalawblog.com

CAI-Greater Los Angeles Chapter

Orange County 949.476.3789

Los Angeles 310.207.2207 California 800.372.2207

San Francisco 415.762.1889 September/October 2014 | www.cai-glac.org

27

COMMUNITY OUTREACH

NEWS

Meigan Everett, Ashley Swartzlander and Katie Swaine are pictured with school supply donations collected at the August luncheon.

Operation School Bell

witkinad new size_Layout 1 1/28/13 5:04 PM Page 1

OPERATION SCHOOL BELL This is the third year that CAI-GLAC has supported Operation School Bell, a 47-year-old nonprofit organization managed by volunteers for the Anne Banning Auxiliary (ABA) of Assistance League of Los Angeles. Operation School Bell (OSB) provides new school clothes to nearly 5,000 Los Angeles Unified School District students from impoverished circumstances. By working with these children, this program improves school attendance, promotes learning and enhances self-esteem.

Thanks to Guard-Systems, Inc., Jenkins Properties Management, Inc., Management Professionals, Inc., NPG Asphalt and Sherwin-Williams Paint for meeting Michael Huffman’s Operation School Bell Donation Challenge that raised $1,000 at the August luncheon.

Experience professional delinquent assessment recovery.

Meigan Everett and Jeanie LaCroix deliver donations to Perri Kranzdorf and Robyn Kofsky at Operation School Bell headquarters.

28

www.cai-glac.org | September/October 2014

888-845-8808 www.witkinandneal.com CAI-Greater Los Angeles Chapter

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CAI-Greater Los Angeles Chapter

September/October 2014 | www.cai-glac.org

29

WELCOME

NEW CAI-GLAC MEMBERS! AS OF SEPTEMBER 10, 2014

BUSINESS PROFESSIONALS Benjamin Moore & Co. Fernald Law Group Regency General Contractors, Inc.

RECRUITER CAI National CAI National Katy Krupp

MANAGEMENT COMPANIES SF Valley Management, Inc. Vines Management, Inc.

CAI National Les Weinberg, RS

COMMUNITY ASSOCIATIONS Canyon Village HOA Rustic Glen HOA COMMUNITY MANAGERS Rita Augustine Edgewater Tower HOA Robert Bellucci Seabreeze Management Company Alicia Glorioso True Community Management, Inc. Patricia Ramirez Mariners Park Village HOA Aaron Takumi Scorecard Management Cindy Yan Appleby Real Estate Brokerage & Property Management Services Nancy Yamaoka Valley HOA Management, Inc.

CAI National CAI National CAI National Shanne Ho, CCAM®, PCAM® CAI National CAI National CAI National CAI National

Jim Bucks, CMCA®

COMMUNITY ASSOCIATION LEADERS Hans Hagenmayer CAI National Patsy Okada Joanne Peña, CMCA®, AMS®, PCAM®

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www.cai-glac.org | September/October 2014

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF AUGUST 31, 2014

BUSINESS PROFESSIONALS Advanced Reserve Solutions, Inc. Alliance Environmental Group, Inc. American Heritage Landscape California Sub-Meters CBCI Construction, Inc. City National Bank Crank Brothers Roofing Company, Inc. DDM Metering Systems, Inc. Ferris Painting, Inc. G4S Secure Solutions USA, Inc. Gotham Playgrounds & Surfacing Gothic Grounds Management Hoffman Brown Company Kulik Gottesman & Siegel LLP Landscape Development, Inc. Loewenthal, Hillshafer & Carter, LLP McGowan Program Administrators Oakridge Landscape, Inc. Preferred Commercial Painting, Inc. QwikResponse Restoration & Construction Ross Mediation Services Sandra Macdonald Insurance Sonnenberg & Company, CPAs Stay Green Inc. The Termite Guy & IRC Services U.S. Bank COMMUNITY ASSOCIATIONS Breakers at Del Amo HOA Del Prado HOA Highland Terraces HOA Old Orchard I HOA Regatta Seaside HOA Santa Rosalia HOA Summerwind HOA The Collections at Downtown Burbank HOA The Colony at Westwood HOA Tierra Verde V HOA Wellworth Townhomes HOA COMMUNITY MANAGEMENT COMPANIES Action Property Management Campion and Company Cardinal Property Management, AAMC®, ACMF® CoastManagement.net Coro Community Management & Consulting Gold Coast Property Pros Horizon Management Company International Realty & Investments

CAI-Greater Los Angeles Chapter

Paragon Property Management Group, LLC Partners Community Management COMMUNITY MANAGERS Margaret Allen, CCAM®, PCAM® Dominguez Hills HOA Sarah Atha, CMCA®, AMS® FirstService Residential Jerson Barcelon, CCAM® Regatta Seaside HOA Gail Bowman, CMCA®, AMS® Westview Towers HOA Tina Crago, CCAM® International Tower Owners Association Donna Currie, CCAM® Beverly West Residences Karen Dubose, CCAM®, CMCA®, AMS® Action Management Company Richard Egan, CCAM®, CMCA®, AMS®, PCAM® Briarcliffe Towne Homes Renee Espinoza Bali Management Group Dirk Foster, CCAM®, CMCA®, AMS®, PCAM® Two Eleven Spalding HOA George Gral, AMS®, PCAM® Encore Enterprises, Inc Kevin Haegele, CMCA® Property Management Professionals, LLC Mikaela Haley, CMCA®, AMS® Property Management Professionals, LLC Cathy Hodek, CMCA®, AMS® Del Prado HOA Donyelle La-Key, CMCA®, AMS® Property Management Professionals, LLC Uther Lai, CMCA®, AMS® Pro/Service Realty & Management Norman Malk, CMCA® Ironstone Property Management, Inc. Laurie Mark, CMCA®, AMS® Valencia Management Group Al Masters, CCAM® Rockpointe HOA Debra McGary, CCAM® Horizon Management Company Keila Miramontez, CMCA® FirstService Residential

Jonathan Mitchell Bel-Air Chalet HOA Tina Nakamura, CMCA®, AMS®, PCAM® Property Management Professionals, LLC Martha Olvera, CCAM®, CMCA® Horizon Management Company Danny Padilla Cardinal Management Group Joanne Peña, CMCA®, AMS®, PCAM® Horizon Management Company Evelyn Polizzi

Alexandria Pollock, CCAM®, CMCA®, AMS®, PCAM® Bunker Hill Tower Condo Assn.

Diana Stiller, PCAM® 101 Ocean Condominium HOA Gerry Suenram, CCAM®, PCAM® Evo HOA Ida Worth, CMCA®, AMS® Ross Morgan & Company, Inc. COMMUNITY ASSOCIATION LEADERS David Meyer John Nicholson Barbara Walker

Our Sincerest Apologies…

We welcome Shedrick Nance as a new member.

Christine Albrecht, CMCA®, AMS®, PCAM® is with Valencia Management Group.

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Lisa Ann Rea VP/Regional Account Executive 805-907-8452 Toll Free 866-800-4656, ext. 7500 lisa.rea@mutualofomahabank.com

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Member FDIC Equal Housing Lender

September/October 2014 | www.cai-glac.org

EQUAL HOUSING

LENDER

31

Recently Retired Community Managers…

W

e would like to sincerely thank three of our manager members for their dedication to this industry and loyalty to our chapter.

Jim Altschuler, AMS started managing rentals in 1989 and then HOAs in 1994.

During his 30-year career in our industry, Jim worked as a portfolio manager and as an onsite manager at several different complexes in Los Angeles County. He was definitely the “go-to guy” when another manager needed information or help with a problem. Jim is now enjoying life and his family.

Gail Jones, CCAM, CMCA, AMS, PCAM started out on the board of directors of her HOA and was soon managing her association and then others. During her 20+year career, Gail worked as an onsite manager and as a portfolio manager. For the last 7-1/2 years she has been at Valencia Management Group. Gail was very active in CAI-GLAC as a volunteer at luncheon check-in and as co-chair of the Satellite Programs Committee. She is now having fun with her grandkids.

2014 UPCOMING EVENTS SEPTEMBER 13 Essentials of Community Leadership Workshop – 8:15 a.m.

Summerwind HOA, Torrance

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

Skirball Cultural Center, Los Angeles

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

Chapter Office, Glendale

OCTOBER 02 San Fernando Valley Homeowners Association Marketplace – 5:30 p.m.

Hilton Woodland Hills, Woodland Hills

17 CAI State Legal Forum San Diego Marriott, San Diego

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

Skirball Cultural Center, Los Angeles

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

Location TBD

28 Long Beach Educational Program for HOA Boards – 6:00 p.m.

Renaissance Long Beach Hotel, Long Beach

29 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m.

Bridgeport HOA Clubhouse, Valencia

NOVEMBER 06 San Gabriel Valley Homeowners Association Marketplace – 5:30 p.m.

Location TBD

08 Essentials of Community Leadership Workshop – 8:15 a.m.

Location TBD

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

Chapter Office, Glendale

11 Westside Program – 7:00 p.m.

Location TBD

DECEMBER 05 Holiday Happy Hour – 4:00 p.m.

Bel Air Crest Master Association Clubhouse, Los Angeles

12 Spark of Love Toy Drive Delivery – 5:30 a.m.

Canoga Park Mall, Canoga Park

32

www.cai-glac.org | September/October 2014

Barbara Offer, Ph.D. enjoyed 20 years in the CID industry as an onsite manager at complexes on the Westside. Most recently she was the general manager at Le Faubourg-St. Louis in Beverly Hills. Just back from her honeymoon, Barbara now lives in Lake Forest.

ADVERTISERS INDEX 23 A.ALLBRIGHT 1-(800)-PAINTING 29 Popular Association Banking 25 ACCELL Property Management 30 Preferred Commercial Painting, Inc. 26 AIPM, Inc. 29 R.W. Stein Painting, Inc. 29 Association Reserves, Inc. 21 Reserve Studies Inc. 23 Berg Insurance Agency 13 Ross Morgan & Company, Inc. 7 Farmers Insurance Group – 10 Sandra Macdonald Insurance Steven G. Segal Insurance Agency, Inc. 5 Select Painting 11 Ferris Painting, Inc. 30 Mutual of Omaha Bank/ CondoCerts

30 Stonemark Construction Management 27 SwedelsonGottlieb

19 NPG Asphalt

21 Union Bank

11 Pacific Utility Audit

28 Witkin & Neal, Inc.

32 Poindexter & Company, CPAs

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" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 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.

CAI-Greater Los Angeles Chapter

Oct. 17, 2014 | San Diego, CA

CAI

Legal

Forum CALIFORNIA COMMUNITIES

A one-day event for California community managers, association board members and other homeowners from Community Associations Institute—the leader in HOA education, advocacy and professional development.

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

Essential information on key legal developments that impact where you live.

For event details and registration, visit www.caionline.org/events/CALaw or call CAI Member Services at (888) 224-4321 (M–F, 9–6:30 ET).

CAI LEGAL FORUM: California Communities CURRENT SPONSORS Tote Bag Fiore, Racobs & Powers Nordberg|DeNichilo, LLP Tinnelly Law Group Parking CBCI Construction, Inc. LOCATION Marriott Marquis – San Diego Marina 333 West Harbor Drive San Diego, CA 92101 619-230-8301 ROOM RATES Standard $229 Bay View Room $259 Please ask for the CAI Legal Forum group rate when reserving your room.

EXHIBITORS

AMS Paving, Inc. Animal Pest Management Services, Inc. Association Reserves, Inc. Crank Brothers Roofing Company Design Build Associates Epsten Grinnell & Howell APC Fenton Grant Mayfield Kaneda & Litt, LLP Ivey Engineering, Inc. Mutual of Omaha Bank/CondoCerts O’Connell Landscape Maintenance Pacific Premier Bank Popular Association Banking

Prendiville Insurance Agency PrimeCo Painting and Construction ProTec Building Services Reconstruction Experts, Inc. SwedelsonGottlieb Sunwest Bank The Inspectors of Election, LLC The Law Offices of John Chaix The Miller Law Firm The Perry Law Firm Timothy Cline Insurance Agency, Inc. Union Bank HOA Services

REGISTRATION COST CAI MEMBERS $129 • Register by Oct. 1 ($104 per 3rd and additional registrant from same association or management company)

EVENT SCHEDULE

$149 • Register after Oct. 1 ($124 p er 3rd and additional registrant from same association or management company) NONMEMBERS $169 • Register by Oct. 1 $189 Register after Oct. 1

8:00 – 8:30 a.m. Registration, Breakfast and Trade Show 8:30 – 9:15 a.m.

State of the Industry

9:15 – 10:00 a.m.

Trade show

10:15 – 11:15 a.m.

Concurrent Sessions

11:30 a.m. – 12:30 p.m.

Concurrent Sessions

12:30 – 2:00 p.m. Buffet Lunch and Trade Show 2:15 – 3:15 p.m.

Concurrent Sessions

3:30 – 4:30 p.m.

Concurrent Sessions

4:30 – 6:00 p.m.

Networking Reception

CAI-GLAC

PRSRT STD U.S. POSTAGE

PAID

130 N. Brand Blvd., Ste. 305 Glendale, CA 91203

SAN BERNARDINO, CA PERMIT #1

Change Service Requested

Chapter Introduces Online Learning for Community Association Boards and Managers!

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.

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.