Focus L.A.’s Premier Source of Information for Community Associations SAVE THE DATE: Casino Night & Awards Gala November 15 September/October 2014 What’s Your Board’s RemarkableLeadershipLegacy?WithintheCommunityBecomingaLeader LeadershipCommunity
Michael Lewis, CCAM®, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012
GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC
Jolen Zeroski, CMCA®, Union Bank HOA Services
SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, Wilshire Regent HOA Angel Fuerte, FRESHCO Painters Inc.
Stephen S. Grane, Alante/MCS Insurance
OFFICERS Matt D. Ober, Esq., President Richardson Harman Ober, PC, 626-449-5577
CHAPTER
Pamella De Armas SAX Insurance Agency, 310-740-4274
Katy Krupp, President Elect Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800
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
MEDIATION
LEGISLATIVE ACTION
Linda Healey, CCAM®, PCAM®, The Californian on Willshire
91203 Office: 818-500-8636 Fax: 818-500-8638 STAY CONNECTED: SAVE THE DATE: Casino Night & Awards NovemberGala15 On the Cover Briarcliffe ResedaAssociation,TownehomesInc. 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 18 Blessed Are the Peacemakers: Helpful Tips For Successful ADRs 20 Financial Lessons Learned: An Overview 22 CC&Rs: Comfortably Broken In or Time to Replace? 24 NEWS FROM SACRAMENTO 26 COMMUNITY OUTREACH NEWS: CAI-GLAC Believes In Giving Back To Communities In Los Angeles County CHAPTER UPDATE 2 Note from the Editor’s Desk 3 Message from the President NOTEWORTHY 3 Essentials of Community Leadership Workshop 14 Homeowners Association Marketplace 16 Wine NIght Highlights 31 CAI Legal Forum: California Communities FYI 31 CAI-GLAC Membership News 32 2014 Upcoming Events 32 Advertisers Index 32 Advertising Information
SATELLITE PROGRAMS
Lisa Tashjian, Esq., Beaumont Gitlin Tashjian
MARKETPLACE Alan Denison, Stay Green Inc.
Carol Brockhouse, DonaldCoastManagement.netAMS®Campbell,CCAM®,CMCA®, AMS® Wilshire Regent HOA Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280
SERVICES
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 1 2014 BOARD OF DIRECTORS
FINANCE
Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP
Matthew Gardner, Esq., Richardson Harman Ober PC
Membership Directory
Services
Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Gregg Lotane, CCAM®, PCAM®, Treasurer The Wilshire Condominiums, 310-446-5333
Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association
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 Brand Blvd., Ste. 305 Glendale, CA
130 N.
DIRECTORS
Magazine
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.
Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS
PUBLICATIONS
PROGRAMS/LUNCHEONS
Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.
EDUCATION Gerry Suenram, CCAM®, PCAM®, Action Property Management
AWARDS
SILVER Association Reserves, Inc.
Select Painting
SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc.
Lesley Millender-Irwin, of Seabreeze Management Company, presents a topic that is often overlooked in many communities: creating a legacy. Instead of getting wrapped up in the day-to-day functions that overwhelm many boards, Lesley reminds us that service on a board gives directors an opportunity to plan for the long term. Those boards that come in with a vision are working to build a thriving community. Creating a community with a vision requires effective leaders. Sascha Macias, of FirstService Residential, offers her take on how managers can work to nurture a positive working relationship with their boards. By providing boards with the knowledge and information to do their job correctly, managers can do their part to ensure that strong leaders emerge.
Marina Landscape, Inc.
PCW Contracting Services, Inc.
Read up on the latest updates regarding IDR, maintenance, energy, and drought legislation. Please remember to do your part to support our California Legislative Action Committee. — Matthew Gardner,EditorEsq.
Reserve Studies Incorporated
Popular Association Banking Preferred Commercial Painting, Inc.
GOLD A.ALLBRIGHT 1-(800)-PAINTING Adco Roofing and Waterproofing
TimothySwedelsonGottliebClineInsurance Agency, Inc.
CAI-Greater
Beaumont Gitlin Tashjian Berg Insurance Agency, Inc.
Kevin Davis, of Kevin Davis Insurance Services, provides us with the basics needed for leadership. Kevin sets out FROM THE EDITOR’S DESK NOTE 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. 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.
California Waters Critter Busters, Inc. General Pavement Management, Inc.
2 www.cai-glac.org | September/October 2014
S.B.S. Lien Services
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 thank 2014 contribution to ensure our continued success this year. Contact the Chapter Office at 818-500-8636 to sponsor a program or an event.
Pacific Western Bank
R.W. Stein Painting, Inc.
Securitas Security Services USA, Inc.
Union Bank HOA Services
Best Alliance Foreclosure & Lien Services
Steven G. Segal Insurance Agency, Inc.
sponsors who have made a substantial
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.
Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts
Los Angeles Chapter
Animal & Insect Pest Management, Inc.
THE 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.
Jeanne McDonald, of the Law Offices of Jeanne McDonald, reviews the role that governing documents should play in planning. Members rely on their documents to help them make the right decisions. Bringing those documents in line with our communities’ needs gives boards the opportunity to build a stronger foundation. As always, Skip Daum brings us the latest from Sacramento and illustrates why CAI is so vital to our communities.
Sue Nelson, of Horizon Management Company, and Les Weinberg, of Reserve Studies, Inc., remind us why leadership plays a role in financial planning. Implementing a successful financial plan requires a board that is willing to make the tough choices. A community with a strong financial foundation pays lasting dividends for its members.
ValleyCrest Landscape Maintenance Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP
We
Stonemark Construction Management
our
Payne Pest Management
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.
GoTBDLocation:towww.cai-glac.org for more details and registration. SummerWindLocation: HOA, Torrance Go to www.cai-glac.org for more details and registration.
$80/Member;Cost: $100/Non-member Next Saturday,Class:November 8, 2014 Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 818.500.8636 for a Workshop schedule. The location varies — if you can guarantee 10 attendees, we’ll come to your association!
$80/Member;Cost: $100/Non-member Next Class: April 14, 2012
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
If@cai_glac.youareon Instagram we are @caiglac. And share, share, share! Sincerely, — Tatiana Zaza Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops are held on Saturdays. Call the Chapter Office at 323.254.9526 for a Workshop schedule. The location varies - if you can guarantee 10 attendees, we’ll come to your association! Have You Just Been Elected to Your Board... Or Are Contemplating Running for a Board Seat? CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 3
Message
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 ourfromcrossCommunity.CAIallrelationships;ourtosimple,butnetworkingaNotmonthlyactiveusers.onlyisthisgreatpotentialpool,itisalsoafunwaykeepbuildingcommunityafterthat’swhatisabout—WeposttheseInstagramtoFacebookfeed and Twitter to instantaneously maximize and connect our social audience. 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.
Please 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 For 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 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.
Next, boards who want to leave a long-lasting and positive legacy utilize strategic planning. Strategic planning requires the board to project where the association expects to be in five, ten or fifteen years, and how to get there. Without strategic planning, boards cannot identify where their association is going nor would they know how or if they ever arrive. Boards who utilize strategic planning create a positive
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.
Community VisionWhat’sPlanning:Your Board’s Legacy?
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.
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. 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 strongerreducetoprovidesgovernancetheframeworkincreaseharmony,conflictandbuildcommunities.By
>>>By Lesley Millender-Irwin, CMCA®, PCAM®
Second, there are boards that leave a legacy of financial mismanagement and can even destabilize the foundation of their associations. Board members are fiduciaries who
First, there are boards who make the conscious decision to leave a legacy of positive accomplishment and focus on building up their communities. These boards are passionate, forward-thinkers. Boards that leave positive and long-lasting legacies see themselves as leaders, not just policymakers and rule enforcers. While some boards view community apathy as an indicator their members are happy, boards who seek to leave a legacy of positive accomplishment work to eliminate apathy and encourage member participation.
Ararely
properly governing their communities, boards can ensure their associations are in compliance with the governing documents, state and federal laws; they act as good stewards of the association’s financials, and they are transparent in communicating with the members.
4 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 Boardsaccomplished.whowishto 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 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.
OUR LEGACY
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 5
6 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter
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 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 By Sascha Macias, CMCA®, AMS®
WITHIN THE COMMUNITY
By 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?
Forbes Magazine defined leadership as a process of social influence, which maximizes the efforts of others, towards the achievement of a goal.
What education.Simplydirection?incommunitiestoboardvolunteertomanagerscommunitycando,encouragemembersleadtheirapositiveput—Our
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.
organization, and staying connected to a community-friendly leadership organization such as CAI, will encourage continued improvement for all of us as community leaders.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 7
What can you do to lead your community in a positive direction?
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 educationalaffectofwelltrends.communityeducationcurrentinvolvedalikeboardmanagers,encouragesseminars,andmemberstoremaininlegislation,andStayinginformedeventsthatthe
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.
...
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.
AND RESPONSIBILITIES PRINCIPLES FOR
■ Review and discuss the merits of the principles at an open meeting of your board.
ANNOUNCE YOUR COMMITMENT
That way we know you have joined other community associations realizing the benefits of enlightened governance and involved and engaged residents.
COMMUNITY LEADERS
Onceinvolvement.adopted, Rights and Responsibilities will serve as an important guidepost for all those involved in the community— board and committee members, managers, homeowners and non-owner residents. The document will also serve as an excellent tool to educate new homeowners and residents about their own rights and responsibilities.
RIGHTS HOMEOWNERS &
Adopting Rights and Responsibilities for Better Communities is easy!
8 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter MORE than a destination at the end of the day, a community is a place you want to call home and where you feel at home. There is a difference between living in a community and being part of that community. Being part of a community means sharing with your neighbors a common desire to promote harmony and contentment. This goal is best achieved when homeowners, non-owner residents and association leaders recognize and accept their rights and responsibilities. In all cases, this entails striking a reasonable, logical balance between the preferences of individual homeowners and the best interests of the community as a whole. It is with this challenge in mind that Community Associations Institute (CAI) developed Rights and Responsibilities for Better Communities.
As greater numbers of associations adopt Rights and Responsibilities—and adhere to its principles—there will be less potential for conflict within communities.
■ 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.
The process of formally adopting Rights and Responsibilities will give communities an excellent opportunity for the kind of dialogue that facilitates awareness, builds consensus, and promotes greater community
■ Solicit input from homeowners. ■ Have your board vote to adopt a resolution endorsing Rights and Responsibilities for Better Communities. The principles will be more meaningful to homeowners and community leaders if they are formally adopted.
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.
HOW YOU CAN MAKE IT HAPPEN
Community associations exist because they offer choices, lifestyles, amenities and efficiencies that people value. Yet, with all of their inherent advantages, community associations face complicated issues, none more common than the challenge of balancing the rights of the individual homeowner with those of the community at large. Managing this critical and delicate balance is often the essence of effective community leadership. By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership. In the process, we make life better for the more than 60 million Americans who live in community associations.
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.
LET RIGHTS AND RESPONSIBILITIES HELP YOUR COMMUNITY
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.
9. Appeal to appropriate community leaders those decisions affecting non-routine financial responsibilities or property rights.
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.
Community Leaders Have the Right To:
6.Contact association leaders or managers, if necessary, to discuss financial obligations and alternative payment arrangements.
ASSOCIATIONS INSTITUTE Rights and Responsibilitiesfor Better Communities
3.Balance the needs and obligations of the community as a whole with those of individual homeowners and residents.
5. Establish committees or use other methods to obtain input from owners and non-owner residents.
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 com-
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.
5.Pay association assessments and charges on time.
2. Expect residents to know and comply with the rules and regula tions of the community and to stay informed by reading materials provided by the association.
Sponsored by CAI’s President’s Club
4. Vote in community elections and on other issues.
Principles for Homeowners and Community Leaders
5.Receive support and constructive input from owners and nonowner
Community Leaders Have the Responsibility To:
COMMUNITYresidents.
7.Take advantage of educational opportunities (e.g., publications, training workshops) that are directly related to their responsibilities, and as approved by the association.
11.Allowappropriate.homeowners access to appropriate community records, when 12.Collectrequested.allmonies 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.
2.Exercise sound business judgment and follow established management practices.
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.
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.)
4.Access appropriate association books and records.
Homeowners Have the Right To:
2.Maintain their property according to established standards.
2.Honest, fair and respectful treatment by community leaders and
3.Participatemanagers. in governing the community association by attending meetings, serving on committees and standing for election.
1.Read and comply with the governing documents of the community.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 9
9.Ensure that those who reside on their property (e.g., tenants, relatives, friends) adhere to all rules and regulations.
16. Make covenants, conditions and restrictions as understandable as possible, adding clarifying “lay” language or supplementary materials when drafting or revising the documents.
4.Conduct meetings in a positive and constructive atmosphere.
6.Live in a community where the property is maintained according to established standards.
5. Prudent expenditure of fees and other assessments.
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.
6. Conduct open, fair and well-publicized elections.
10.Conductmunity. business in a transparent manner when feasible and
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.
1.Expect owners and non-owner residents to meet their financial obligations to the community
15.Initiate foreclosure proceedings only as a measure of last resort.
Homeowners Have the Responsibility To:
7.Request reconsideration of material decisions that personally affect
7.Welcome and educate new members of the community—owners and non-owner residents alike.
6.Personal privacy at home and during leisure time in the community.
3.Treat association leaders honestly and with respect.
8.Providethem.current contact information to association leaders or managers to help ensure they receive information from the community.
3. Respectful and honest treatment from residents.
1.A responsive and competent community association.
■ 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 Membership Benefits for the HOA Volunteer Leader
10 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter
z An extensive Research Library containing thousands of articles for reference.
CAIis committed to helping volunteers enrich their communities. With membership in CAI, you also get the benefits of the Center for Community Association Volunteers (CCAV). Through this specialized member group, you can learn about innovations in other communities, access time and money-saving tools and information and have a forum to share knowledge.
z Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members.
■ Online tools and resources available 24 hours a day—including: z Downloadable standardized templates, sample notices, letters and forms that can be adapted for use in virtually any community. z Governance questions and answers —Find out specific information related to governance issues (meetings, statutes, assessments and more) in your state.
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 volunteer, and build consensus on critical governance issues. HERE ARE THE SERVICES YOU’LL RECEIVE AS A CAI MEMBER:
z A Discussion Board where you can find out how your peers are dealing with similar issues.
z HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents.
■ 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.
■ Member Discount Program s— Take advantage of our CAI Member Discount Programs. CAI members receive exclusive discounted rates on a wide array of products and services from participating companies including Dell, DHL, Hertz, and more.
■ 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.
■ 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.
■ Local Seminars and Educational Expos — Our local chapter offers regular education programs geared toward community leaders.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 11 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: associations. Go to www.cai-glac.org for a list of local service providers dedicated to this industry. ■ Common Ground—An awardwinning, bimonthly national magazine offering information on topical issues affecting you and your association. ■ Focus Newsmagazine —An awardwinning, 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. ■ Minute s—A CCAV Newsletter—deliveredGovernancebimonthly to your in-box with strategies, trends, and news on how to run better board meetings, tips on dealing with antagonists at meetings, dealing with renegade board members and so much more.
■ 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.
■ 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.
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.
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. What are the five skills needed to become a remarkable leader?
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.
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?
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.
>>> By Kevin Davis, CIRMS ™
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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.
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.
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.
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 LeaderRemarkablea
Four basic leadership roles are required in order to be an effective and top leader:
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.
One final point!
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.
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.
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.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org As pioneers in HOA Management, we are constantly striving to provide the highest quality service to our clients while acting in the most professional and courteous manner; conducting our business with genuine care and regard for the communities we serve. Being one of the biggest has not made us the best; being the best has made us one of the biggest! REPRESENTING HOMEOWNER ASSOCIATIONS THROUGHOUT SOUTHERN CALIFORNIA SINCE 1982: We provide our clients with a full range of services including: • FINANCIAL MANAGEMENT • ADMINISTRATIVE MANAGEMENT • FULL SERVICE HOA MANAGEMENT
14 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter FEATURING • Meet & Greet HOA Service dedicatedProviderstoour industry • 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 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. SCHEDULE 5:30 p.m. Meet & Greet Service Providers to talk about present & future projects. Enjoy Complimentary Hors d’oeuvres. 7:00 p.m. Complimentary Dinner with Educational Presentation. Panel of legal experts will present new developments in the law and answer questions. Thursday,October2,2014 Hilton Woodland Hills 6360 Canoga Avenue Woodland Hills, CA 91367 Homeowners Association Marketplace Community Association Institute Greater Los Angeles Chapter Presents EDUCATIONAL PRESENTATION Moderator Matt Ober, Esq. Richardson Harman Ober PC Panelists Jeffrey Beaumont, Esq. Beaumont Gitlin Tashjian Jasmine Fisher, Esq. Adams Kessler PLC
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 15Sep tember/October 2014 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. ASPHALT PAVING, MAINTENANCE & SEAL COAT Rose Paving, Inc. ASSESSMENT RECOVERY S.B.S. Lien Services 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. FENCING Fenceworks, Inc. FINANCIAL MANAGEMENT SERVICES Mission Association Financial Management, Inc. FIRE & WATER CLEANUP & RESTORATION Servpro of Burbank State Restoration, Inc. FIREPLACE RESTORATIONCLEANING/MAINTENANCE/ Fireplace & Venting Solutions by The Chimney Sweeper IN SURANCE 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 R.K.OakridgeLandscapeLandscapeAllenLandscape, Inc. Stay Green Inc. Valley Crest Landscape Maintenance METERING PRODUCTS & SERVICES MeterNet Sub-Metering and Billing Solutions PAINT SUPPLIERS Behr Paint Corporation/ THE HOME DEPOT USA P P G 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, Inc. SECURITY Guard-Systems, Inc. Securitas Security Services USA, Inc.
OUTDOOR WINE TASTING & LIGHT MEAL AUGUST 16, 2014 Net proceeds benefit the California Legislative Action Committee 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.).
Cordon Bleu Steven G. Segal Insurance Agency Sommelier Horizon Management Company Epicurean OCBS, Inc. Pacific Western Bank Wine Steward A-One Construction CBCI Construction, Inc. Guard-Systems, Inc. Marina Landscape Dessert Fenton Grant Mayfield Kaneda & Litt, LLP THANKS TO OUR SPONSORS Raffle Prizes Adams Kessler PLC American Technologies, Inc. Nu Air Services, Inc. Reconstruction Experts, Inc. SAX Insurance Agency
Helpful Tips For SuccessfulADRs
18 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter
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.
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.
“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) It 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 zzz By The Honorable Larry R. Stirling BLESSED ARE THE PEACEMAKERS:
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.
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)).
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.
To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.
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.
Mediation is the friendly form where Uncle Larry tries to talk sense into everyone after hearing their concerns.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 19
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.
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 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.
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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.
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.
LEARNED:LESSONSFINANCIAL AN OVERVIEW
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.
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
By Sue Nelson, CCAM®, AMS® and Les Weinberg, RS, MBA
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
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 Reservelow.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 21 MEET A BANK WITH 20 YEARS IN NEIGHBORHOOD.THE
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.
©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 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!
BrokenComfortablyInorTimetoReplace?
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.
Bylaws. I have to mention that Bylaws should be restated at the same time as the CC&Rs to eliminate conflicts or By Jeanne H. McDonald, Esq.
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 (“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.
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.
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.
WHEN SHOULD AN ASSOCIATION HAVE ITS CC&RS REWRITTEN?
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.
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CC&Rs:
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.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 23 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.
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.
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.
FROM SACRAMENTO NEWS 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 BodgerHOAPark 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 GorhamHOAPark HOA Inc. Hacienda HOA, Inc. Harbor Knolls HOA Harbor Village HOA Hayworth Owners Association Hillcrest Meadows OA Hillcrest Rolling Hills HOA Hopi IdahoHOAVillas 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 Rancho-GlenOAHOA 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 TOTAL:CONTRIBUTIONCURRENT$15,188 GOAL: $22,192 69% of goal as of 8/31/14 OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY – AUGUST 2014
Skip Daum is our veteran Legislative Advocate for CAI's California Legislative Action Committee and may be reached at caiclac@aol.com.
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.
24 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 25 What is CLAC? THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI) CONSISTING OF HOMEOWNERS AND PROFESSIONALS SERVING COMMUNITY ASSOCIATIONS. CAI IS THE LARGEST ADVOCACY ORGANIZATION IN AMERICA DEDICATED TO MONITORING LEGISLATION, EDUCATING ELECTED STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA. ABOUT THE ORGANIZATION Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters. Represents over nine million homeowners and property owners in more than 45,000 associations throughout California. Comprises association homeowners, board members and the professional business partners that service them. Is NOT a PAC (Political Action Committee) and makes no financial campaign contributions. Depends solely on the donations of the community associations, their boards of directors and those who serve HOA members. CLAC’S MISSION To safeguard and improve the community association lifestyle and property values by advocating a reasonable balance between state statutory requirements and the ability and authority of individual homeowners to govern themselves through their community associations.
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).
26 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter Insects - Bees, Wasps, Ants, Spiders l Rodents – Gophers, Mice, Rats, Ground Squirrels Trapping – Raccoons, Coyotes, Skunks, Opossums l Specialty – Rabbits, Birds, Bats Visit us online www.myaipm.com Questions? info@myaipm.com Animal & Insect Pest Management, Inc. Your Complete Pest Control Company AIPM New image, same people,same great service, Guaranteed Results!
With over 30 years of dedicated business, Animal & Insect Pest Management, Inc. introduces its new brand. Our new look encompasses our clients’ experiences and adapts to their demands while celebrating AIPM’s values: Integrity, Communication, Experience and Safety. We continue to operate with vast industry experiences, along with our staff’s education and knowledge; allowing us to offer quality and deliver guaranteed results in the residential, HOA and commercial markets. To learn more visit www.myaipm.com or call us at 888-344-6567. PE S MT A NAGEMENT INC PM
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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!
RELAY FOR LIFE
COMMUNITY OUTREACH LosCommunitiesInCAI-GLACNEWSBelievesGivingBackToInAngelesCounty
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 27
28 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter Experience professional delinquentrecovery.assessment 888-845-8808 www.witkinandneal.com witkinad new size_Layout 1 1/28/13 5:04 PM Page 1 COMMUNITY OUTREACH OPERATIONNEWSSCHOOLBELL 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. OperatiOn SchOOl Bell Meigan Everett and Jeanie LaCroix deliver donations to Perri Kranzdorf and Robyn Kofsky at Operation School Bell headquarters. Meigan Everett, Ashley Swartzlander and Katie Swaine are pictured with school supply donations collected at the August luncheon.
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 29 Contact our Southern California Commercial Relationship Officer today! Larry Hooper, Vice President (714) 864-5171 Toll Free: www.associationbankers.comLHooper@bpop.com800-233-7164 Our DEDICATED experts understand the needs of community associations. We offer: • Financing for building repairs/improvement projects • Competitive fixed rates with terms up to 15 years • Excess FDIC insurance coverage limits Lockbox, cash management, and other depository services are also available. ©2013 Banco Popular North America. Member FDIC.
30 www.cai-glac.org | September/October 2014 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME AS OF SEPTEMBER 10, 2014 BUSINESS PROFESSIONALS RECRUITER Benjamin Moore & Co. CAI National Fernald Law Group CAI National Regency General Contractors, Inc. Katy Krupp MANAGEMENT COMPANIES SF Valley Management, Inc. CAI National Vines Management, Inc. Les Weinberg, RS COMMUNITY ASSOCIATIONS Canyon Village HOA CAI National Rustic Glen HOA CAI National COMMUNITY MANAGERS Rita Augustine CAI National Edgewater Tower HOA Robert Bellucci Shanne Ho, CCAM®, PCAM® Seabreeze Management Company Alicia Glorioso CAI National True Community Management, Inc. Patricia Ramirez CAI National Mariners Park Village HOA Aaron Takumi CAI National Scorecard Management Cindy Yan CAI National Appleby Real Estate Brokerage & Property Management Services Nancy Yamaoka Jim Bucks, CMCA® Valley HOA Management, Inc. COMMUNITY ASSOCIATION LEADERS Hans Hagenmayer CAI National Patsy Okada Joanne Peña, CMCA®, AMS®, PCAM®
Donna Currie, CCAM® Beverly West
Uther Lai, CMCA®,
Dirk Foster, CCAM®, CMCA®, AMS®, PCAM® Two Eleven Spalding HOA
Sarah Atha, CMCA®, Barcelon, CCAM® Regatta Seaside Gail Bowman, CMCA®, AMS® Tina Crago, CCAM®
George Gral, AMS®, PCAM® Encore Enterprises, Inc
Cathy Hodek, CMCA®, AMS® Del Prado HOA Donyelle La-Key, CMCA®, AMS® Property Professionals,ManagementLLC
International Tower Owners Association
Richard Egan, CCAM®, CMCA®, AMS®, PCAM® Briarcliffe Towne Homes
Renee Espinoza Bali Management Group
Residences
Margaret Allen, CCAM®, PCAM® Dominguez
HOA
Westview Towers HOA
Company
CAI-Greater Los Angeles Chapter September/October 2014 | www.cai-glac.org 31 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 & U.S.TheStaySonnenbergSandraRossConstructionMediationServicesMacdonaldInsurance&Company,CPAsGreenInc.TermiteGuy&IRCServicesBank 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®, CoroCoastManagement.netACMF®CommunityManagement & GoldConsultingCoastProperty Pros Horizon Management Company International Realty & Investments Paragon Property Management Group, LLC Partners Community Management COMMUNITY MANAGERS
Kevin Haegele, CMCA® Property Professionals,ManagementLLC
AMS® FirstService Residential Jerson
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 Professionals,ManagementLLC 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 BarbaraNicholsonWalker TO RENEWING MEMBERS! OUR THANKS AS OF AUGUST 31, 2014 take that to the bank. Member FDIC Equal Housing Lender mutualofomahabank.com Lisa Ann Rea VP/Regional Account Executive Toll805-907-8452Free866-800-4656, ext. lisa.rea@mutualofomahabank.com7500 pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right. AFN46039_0913 Our Sincerest Apologies… We welcome Shedrick Nance as a new member. Christine Albrecht, CMCA®, AMS®, PCAM® is with Valencia Management Group.
Hills HOA
Mikaela Haley, CMCA®, AMS® Property Professionals,ManagementLLC
Karen Dubose, CCAM®, CMCA®, AMS® Action Management
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
Renaissance Long Beach Hotel, Long Beach 29 Valencia Educational Breakfast for HOA Boards and Managers –8:30 a.m. Bridgeport HOA Clubhouse, Valencia
DECEMBER05Holiday 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 2014 UPCOMING EVENTS
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.
Skirball
19
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.
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.
NOVEMBER06
32 www.cai-glac.org | September/October 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 25 ACCELL Property Management 26 AIPM, Inc. 29 Association Reserves, Inc. 23 Berg Insurance Agency 7 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 11 Ferris Painting, Inc. 30 Mutual of Omaha Bank/ CondoCerts 19 NPG Asphalt 11 Pacific Utility Audit 32 Poindexter & Company, CPAs 29 Popular Association Banking 30 Preferred Commercial Painting, Inc. 29 R.W. Stein Painting, Inc. 21 Reserve Studies Inc. 13 Ross Morgan & Company, Inc. 10 Sandra Macdonald Insurance 5 Select Painting 30 Stonemark ManagementConstruction 27 SwedelsonGottlieb 21 Union Bank 28 Witkin & Neal, Inc.
Essentials
17 Luncheon Program for HOA Boards and Managers
SEPTEMBER13 of Community Leadership Workshop – 8:15 a.m. Summerwind HOA, Torrance – 11:30 a.m. Cultural Center, Los Angeles Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale
OCTOBER02
Recently Retired Community Managers… We would like to sincerely thank three of our manager members for their dedication to this industry and loyalty to our chapter.
CALIFORNIA COMMUNITIES For um Leg a lCAI Oct. 17, 2014 | San Diego, CA A one-day event for California community managers, association board members and other homeowners from Community Associations Institute—the leader in HOA education, advocacy and professional development. 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). 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. TheSunwestSwedelsonGottliebBankInspectorsofElection, LLC The Law Offices of John Chaix The Miller Law Firm The Perry Law Firm Timothy Cline Insurance Agency, Inc. Union Bank HOA Services EXHIBITORS CAI LEGAL FORUM: California Communities CURRENTToteSPONSORSBag 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 619-230-830192101 ROOM RATES Standard $229 Bay View Room $259 Please ask for the CAI Legal Forum group rate when reserving your room. REGISTRATION COST CAI MEMBERS $129 • Register by Oct. 1 ($104 per 3rd and additional registrant from same association or management company) $149 • Register after Oct. 1 ($124 per 3rd and additional registrant from same association or management company) NONMEMBERS $169 • Register by Oct. 1 $189 Register after Oct. 1 EVENT SCHEDULE 8:00 – 8:30 a.m. TradeBreakfastRegistration,andShow 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
& Enforcement Kelly
Kimberly Lilley, CMCA®, CIRMS ™ , Berg
Studies Les
Steven A. Roseman, Esq., Roseman & Associates, APC Adoption G. Richardson, Esq., Richardson Harman Ober, PC Reserve Weinberg, RS, MBA,
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
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
Reserve Studies Inc. Insurance Issues for Common Interest Developments
Rules and Regulations:
