Focus Magazine - July/August 2015

Focus L.A.’s Premier Source of Information for Community Associations Save the Date: Casino Night & awardsNovemberGala14 July/August 2015 • Curbing • Regulating • Insurance Concerns Short-term Rental Challenges

Current SponSorS JameS Bond Sherwin-Williams Paint playing CardS Guard-Systems, Inc. CaSino ChipS G4S Secure Solutions USA, Inc. Shaken not Stirred happy hour Securitas Security Services USA, Inc. diamondS are Forever r aFFle ALLBRIGHT 1-800-PAINTING SkyFall Souvenir photoS Pacific Western Bank 007 entertainment Preferred Commercial Painting, Inc. oCtopuSSy Wine McKenzie Rhody, LLP thunderBall aWardS Law Offices of Michael A. Hearn aSton martin parking Hi-Tech Painting & Decorating, Inc. golden eye photo Booth Allegra Professional Group, LLC CenterpieCeS On Time Building Maintenance, Inc. not For your eyeS only SWeet Shoppe FRESHCO Painters, Inc. DiamonDs are Forever Casino Night & Awards Gala GreaterAssociationsCommunityInstituteLosAngelesChapter Presents go to www.cai-glac.org to register Saturday, november 14, 2015 Los Angeles Athletic Club 431 W. 7th Street Los Angeles, CA 90014 6:00 p.m. Cocktails 7:00 p.m. Dinner & Awards 8:00 p.m. Gaming & Dancing 10:30 p.m. Raffle $125 Per person $1,250 Table of 10 Special room rate through September 15: $189 +tax Call the Los Angeles Athletic Club during business hours at (213) 625-2211 Mention code: CAI

m eigan e verett, PCA m ®, Treasurer Gold Coast Property Pros, 424-238-2333

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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 © 2015. 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.

D irec TO rs Greg Borzilleri PCW Contracting Services, 949-285-7802

Baldwin Real e state m anagement, 626-821-5204 Pamella De Armas SAX Insurance Agency, 310-740-4274 Linda Healey, CCA m ®, PCA m ® The Californian on Wilshire, 310-234-5905 Dick CastlegatePruessHOA, 626-584-0000 Lynn WarnerRugerClub Villas HOA, 818-703-7090 ChapteR eXeCutIVe dIReCtoR Joan Urbaniak, mBA, C m CA® 2015 CoMMIttee ChaIRs

rds Katy Krupp, Fenton, Grant, m ayfield, Kaneda & Litt, LLP COMMUNITY OUT r EACH m eigan e verett, C m CA®, PCA m ®, Gold Coast Property Pros E d UCATION Anda Bewhite, mBA, CCAm®, CmCA®, AmS®, PCAm®, All West management FINANCE Jolen Zeroski, C m CA®, Union Bank HOA Services GOLF TOU r NAMENT Teresa Agnew, Roseman & Associates, APC Ryan Dudasik, e mpireWorks Reconstruction & Painting LEGI s LATIVE ACTION Lisa Tashjian, e sq., Beaumont Gitlin Tashjian MA r KETPLACE Alan Denison, Stay Green Inc. ME d IATION s E r VICE s m atthew Grode, e sq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP P r OG r AM s /LUNCHEON s Linda Healey, CCA m ®, PCA m ®, The Californian on Willshire Brian m oreno, e sq., SwedelsonGottlieb PUBLICATION s m

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CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 1 NewswoRthy 4 Curbing Short-Term Rentals (Or It’s Finally Working Against Us) 8 To Airbnb? 10 Short-Term Rental Challenges 12 Regulate Short-Term Rentals with a Well-Reasoned Amendment or Rule 20 Ne WS F ROm S ACRA meNTO 24 Security Tips Concerning Short-Term Rentals 26 Short-Term Rentals Present Insurance Concerns for the Association and Unit Owner Alike 28 e V101 — The Challenges of Aging HOA Buildings — AND Your electrical Distribution System ChapteR update 2 Note from the editor’s Desk 3 message from the President NotewoRthy 15 PCA m ® Pride 16 Highlights from Ultimate Tailgate Party CAI Golf Tournament 22 Summer Fun Homeowners Association marketplace Recap FyI 31 CAI-GLAC membership News 32 2015 Upcoming events 32 Advertisers Index 32 Advertising Information 2015 BoaRd oF dIReCtoRs Officers Katy Krupp, President Fenton, Grant, m ayfield, Kaneda & Litt, LLP, 949-435-3800 Lisa Tashjian, e sq., President e lect Beaumont Gitlin Tashjian, 866-788-9998 m ichael Lewis, CCA m ®, C m CA®, A m S®, PCA m ®, Vice President Concept Seven, LLC, 310-622-7012 Joanne Peña, C m CA®, A m S®, PCA m ®, Secretary Horizon m anagement Company, 310-543-1995

AwA atthew Gardner, e sq., Richardson Harman Ober PC FOCUS Magazine m atthew Gardner, e sq., Richardson Harman Ober PC Directory Stephen S. Grane, Alante/ m CS Insurance Services Web Site Lynne Collmann, C m CA®, A m S®, Savoy Community Association s ATELLITE P r OG r AM s Ruth moffitt, CmCA®, A mS®, PCA m®, Valencia management Group AA mC® Craig Phillips, CCA m ®, C m CA®, A m S®, PCA m ® International Tower Owners Assn. s OCIAL Donald Campbell, CCA m ®, C mCA®, A m S®, PCA m ®, Baldwin Real e state management Angel Fuerte, FR e SHCO Painters Inc. w INE NIGHT Joanne Peña, C mCA®, A m S®, PCA m ®, Horizon management Company Jolen Zeroski, CmCA®, Union Bank HOA Services

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Donald Campbell, CCA m ®, C m CA®, A m S®, PCA m ®

2 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter 2015 CaI-GLaC Super Sponsors PlaTinum ALLBRIGHT 1-800-PAINTING A-One AccurateConstructionTermite& Pest Control Animal & Insect Pest management, Inc. Behr Paint Corporation Benjamin moore & Co. Best Alliance Foreclosure & Lien Services Fenton, Grant, mayfield, Kaneda & Litt, LLP Ferris Painting, HiGuard-Systems,Inc.Inc.TechPainting&Decorating, Inc. NPG—Nelson Paving Pacific Western Bank Payne Pest management Popular Association Banking Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Securitas Security Services USA, Inc. Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services GO lD Beaumont Gitlin GeneralCritterBrickman/ValleyCrestTashjianBusters,Inc.Pavementmanagement, Inc. Law Offices of michael A. Hearn miller Law Firm S.B.S. Lien Services Select Painting Stay Green Inc. Tinnelly Law Group silver American Technologies, Inc. Association Reserves, Inc. California Waters mission Landscape Services m utual of Omaha Bank/CondoCerts PCW Contracting Services Professional Services Construction, Inc. Reserve Studies Incorporated SAX Insurance Wolf,UniversalSwedelsonGottliebSherwin-WilliamsAgencyPaintProtectionServiceRifkin,Shapiro,Schulman & Rabkin, LLP BrO nze American Heritage Landscape ASR CBI-CollinsConstructionBuilders, Inc. Design Build Associates FR e SHCO Painters, Inc. Poindexter and Company, CPAs Seacoast Commerce Bank Silldorf & Levine, LLP Stonemark Construction m anagement Timothy Cline Insurance Agency, Inc. Vista Paint Corporation We thank our 2015 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.

Finally, Todd Ritter wraps up our summer issue with some key tips on maintaining your electrical system. As with all of our reserve items, Todd shows why aging systems require more frequent and meaningful attention. Please take the time to review this information and see how it can help your community. And above all else, enjoy the rest of your summer. Warm regards, Matthew Gardner,EditorEsq.

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.

RELA x ATION ANd VACATIONs become a priority in the midst of summer for many of us. For those on the business side of communities, we may experience delayed responses from our customers who have difficulty finding enough bodies for a board meeting. On the community side, there may be new distraction during summer in Los Angeles: Short-Term Rentals. Communities have been dealing with limitations on rentals for years. However, as Internet home-sharing options have increased, so has the interest in casual vacation rentals. Recently, the City of Santa Monica passed a Home Sharing ordinance that is designed to limit the spread of short-term rentals in a vacation-friendly destination. Success in Santa Monica might spread this type of ordinance to other cities and communities. The issues in this article address some of these new challenges. Leading off our issue is an article by Phil Silver. A community association board member in Santa Monica, Phil sees the benefits of the ordinance firsthand. He details the reasons behind the push for short-term restrictions in Santa Monica, and some of the steps that his association took to enforce the community standards. Together with their management team from Concept Seven, LLC, they developed a game plan for communicating the standards and successfully enforcing the changes. F rOM THE EdITOr’s dE s K nOTe

Lori Lacher writes about her experience as a manager with an owner who listed a unit on a short-term rental site. She writes about some of the challenges in dealing with owners who are turning toward these Websites and creating businesses. Neda Nehouray shares her experience as a manager who has seen multiple communities deal with short-term rentals. Neda reminds us that every community has different expectations for their residents, so it helps to know your owners and stay up-to-speed on how they want to address these scenarios.

Brandon C. Fernald, Esq. follows up with some legal advice on dealing with short-term rentals. By using amendments or rules, Brandon reminds us that communities already have the tools needed to tackle these issues. Finding the right solution means looking to your community for guidance. Besides the administrative and management issues that short-term rentals raise, the most basic concern for most communities is about safety and security. Miranda Legaspi outlines what communities can do to face the problem head-on and limit the security risk from these types of visitors. Tim Cline and Jose Glez complete the picture on short-term rentals by pointing out some basic questions to raise with your insurance carrier. Recognizing possible gaps in coverage will allow communities to better plan and prepare for these types of rentals.

F rOM THE

In order to Form a More Perfect Union... and hope that you will come to me when you feel like you need a resource or an answer to a question relating to our little CAI world here in Los Angeles. Remember, history relies on tradition and tends to be written by those who are victorious. So, let’s be victorious with our endeavors together! If you listen to the news lately, there’s a new trend in town…and it’s called Airbnb. The general public is devising creative ways to make money fast by renting or leasing desirable property on a short-term basis. This issue will address short-term rentals and the challenges to homeowners associations from a management, insurance and security perspective. We have provided real-life scenarios from our members and how their associations have handled this everpopular trend. This issue will also address a key subject relating to the fiscal health of an association: energy. Our author will provide tips on electrical distribution system maintenance. And last but certainly not least, a special acknowledgement goes to Laurie Mark and Donyelle La-Key, for earning their PCAM® (Professional Community Association Manager) designation. This designation requires many hours of classroom time, work and life experience. We are very proud of you two! Congratulations and welcome to the PCAM Club. We have been a very busy chapter. The month of May started with a great luncheon program on Mediation. Ryan Gesell and his cast of characters: Kimberly Lilley, Debra Sheppard, Esq. and Laura Snoke, Esq. led a lively interpretation on how to mediate a neighbor-to-neighbor dispute. The Golf Committee produced another successful golf tournament at TPC Valencia on May 18. Players and sponsors enjoyed this Ultimate Tailgate Party with In-NOut Burgers for lunch and raised almost

IT HA s BEEN AN E xCITING FIrs T HALF OF THE YEA r. I can honestly say that our Greater Los Angeles Chapter has been very busy with education, philanthropy and, of course, having fun with social networking events. It sounds cliché to say, but how has this year whizzed by so fast when there is so much more to be accomplished? The theme of this edition of my President’s Message will focus around the word Union; the act or instance of uniting; an alliance of persons or entities for mutual interest or advantage. Good grief, isn’t that one of the basic tenets of a homeowners association? The more I break down the preamble, the more I realize that our forefathers were on to something and we, the People are still relying on their wisdom. Who knew how insightful their writings of so many years ago would still be relevant today. Living in a homeowners association is not always easy. There will be a moment when an individual homeowner wants more than their equal share of the pie. This is where CAI comes to their aid. w ho do we go to for help? w hat circumstances qualify for executive decisions? w hen is it necessary to take action? w here do we find qualified companies and individuals we can trust? And, most important of all, w hy are rules necessary? In other words, why can’t we all just get Sometimesalong?thecircumstances are more challenging than an episode of Game of Thrones. While I do not profess to be as stabilizing an influence as Daenerys Targaryen, The Mother of Dragons, I am quite content serving as your President PrE s

— Katy Krupp 2015 Chapter President

Our June 2 Westside program entitled, “Directors Gone Wild” had more than 40 managers and HOA board members learning how to deal with rogue board members, conduct unbecoming of a board member, recent case law and a spirited question-and-answer period.

$25,000 for the chapter. Thank you Teresa Agnew, Ryan Dudasik and your committee members for a great job and wonderful day of golf.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 3

The June 17 luncheon entitled, “Keeping Summer Fun under Control” presented by Adrian Adams, Esq. and Kevin Davis, CIRMS, was both hilarious and a little disturbing. The do’s and don’ts of community pool safety along with their humorous and detailed PowerPoint left little to the imagination on how important it is to follow the rules and regulations set forth by community associations. I encourage anyone who enjoys wine to register for our Annual Wine Night, Saturday, August 15 at The Aquarium of the Pacific in Long Beach. This outdoor rooftop wine tasting offers a chance to sample some great wines, wonderful tasty treats and share a warm summer’s evening with friends at a unique setting. Tickets can be purchased at the chapter office or online for $75 per person. All proceeds will go to our fund-raising efforts on behalf of CLAC (California Legislative Action Committee).

IdENT messaGe

Unions are created in all different sizes and shapes. Whether they are a small five-unit condo complex, an urban highrise or a massive 5,000 single-family home village, each Union must abide by the same governing principles that everyone is equal and we need to get along. I hope you enjoy this summer issue. Our editor has worked hard to provide timely subjects for you to read about and offer tips on how to handle difficult situations. Have a wonderful summer, and I look forward to writing my next message. Will it be Liberty or Justice? You will have to wait and see!

As board members of a 61-unit condo community four blocks from the beach in Santa Monica, it was inevitable that sooner or later we would have to deal with owners trying to rent their units on a short-term basis to vacationers via Airbnb, VRBO, and other so- called home sharing rental sites. This past year we had three owners attempt to engage in shortterm vacation rentals in various capacities. One was listing her unit only a couple weeks out of the year during periods she planned to be away on vacation, one was filling in a few months in between extended stays by his parents, and one attempted to convert a long-term rental unit into a short-term vacation rental unit with the goal of generating as much income as possible. None of these owners sought permission from the HOA to rent in this fashion, but we became aware of it when we witnessed strangers coming and going from the units and subsequently found the owners’ listings Fromonline.the start, the HOA was not keen on the notion of a constant stream of strangers coming and going, given that we value the otherwise quiet, tranquil atmosphere in our intimate courtyard complex. Putting aside short-term renters for a moment, from past experience we knew that even turnover of long-term residents could be potentially disruptive to our community. In a small, compact building like ours, new residents often don’t realize just how much their behavior impacts other residents. First and foremost, noise in the courtyard carries and can be heard in almost every unit. And in most instances each unit shares walls, floors and ceilings with up to four other units. New residents need to learn how to co-exist with neighbors living in close proximity, and it usually takes a couple weeks (if not months) for new residents to adapt to the physical realities of our building and become considerate, respectful members of our Beyondcommunity.noiseissues there is a whole range of other activities that require some thought, consideration and awareness so as not to create a nuisance for other residents. For instance, Santa Monica has strict andthepoolareasuserulesneedFinally,materials,recycling,handlehowneedsmoke.thatnuisancehowtheycannotwhereneedsmoke.haveandregardinglawssmokingyetwedoresidentsthatResidentstoknowtheycanandsmoke,andneedtolearnnottocreateaforthosechoosenottoResidentstoknowtoproperlytheirtrash,compostetc.residentstoknowtheregardingtheofourcommonsuchastheandcourtyard,laundryroomthegym.

Now, against this backdrop, imagine a constant stream of vacationers, some single, some couples, some whole families with children, arriving from all over the country and the world, excited to be in Santa Monica and looking forward to fun and relaxation at the beach. There’s no doubt we live in a desirable location—our property values and monthly rental

>>> By Phil Silver it’s finally Working against us

>>> By Mike Lewis, CCAM®, CMCA®, AMS®, PCAM® It doesn’t make any sense. I’ve spent 12 years of my life trying to refine the services we provide to our clients. In turn, my goal is to help the industry develop as a whole both via my interaction with clients and other industry professionals—in almost all cases, reliant on the development of new technologies. Although our ideas and processes are based on industry standards, we don’t lock our managers into a single mindset. Rather, we allow them to explore new ways of doing things. Whatever makes our clients happy, within reason, is a common tagline at our office. But then you get the call. “Mike, we have a problem.”— Not too distant from “Houston, we have a problem” from our standpoint. And so begins the day that technology works against you and your professional aspirations. Airbnb has found its way into our community. This isn’t a timeshare community, and it’s not steps from the beach; real people with real jobs actually live here. They aren’t on vacation, and most of them will be here one, three and five-plus years from now. Our concern? What we once thought were short-term rentals (less than 365 days), have turned into even shorter-term rentals (7 days and less). All thanks to a new technology. Now, don’t get me wrong, this is an amazing application. If you want to spend a few days in Paris (and don’t mind being on the terms of living in someone’s home), it’s all good. This company was not built to bring down community associations. Yet, like many for-profit and politically-oriented ventures, it hits us, and now we have to deal with it, or find a way to make it work for us. If not, we have to fight it. And, that is exactly what Phil Silver did at one of our communities in Santa Monica. ■

4 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter

curbing short-Term rentals (Or it’s finally Working against us)

Our board goes to great lengths to provide information and orientation for our new residents, owners, as well as renters, to facilitate a smooth transition into our community.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 5

C

ONTINUeD ON PAGe 6 rates are a testament to that fact. Given that the hotels a few blocks away routinely charge $500 a night for a room, we understand the temptation for owners to try to make some money by renting out their condos for a few days or weeks at a time. But the key question is: are they doing so at the expense of their neighbors? Our experience over the past year indicates that owners renting via Airbnb, VRBO and other home-sharing sites are motivated first and foremost by allure of high daily/weekly rental rates with very little consideration regarding the impact such rental activities have upon their neighbors. Let’s face it, the notion that anyone is “sharing” their home is a misnomer. No one is sharing their home out of generosity. “Home sharing” is a business being operated for profit but without any of the regulations, safeguards, staffing, and provisions found in traditional hotel/motel operations. Home-sharing owners are typically not hospitality industry professionals; in fact, most have little experience as landlords since they normally live in their units, and few are properly licensed or insured to engage in rental operations. In terms of managing their guests, home-sharing owners are not inclined to emphasize common-sense restrictions on the activities of their guests. They are advertising all the benefits of their property without conveying any of the corresponding community responsibilities. They want to maximize their rental days and their rental rates. Under a normal longterm rental scenario any sane landlord wouldn’t rent a onebedroom condo to a family of four, but as an Airbnb host, are they going to turn away a family of four that wants to rent their unit for $1500 per week? Not likely. By the same token, while some vacationing guests are respectful of our community, there are nevertheless other guests who arrive with attitudes and expectations that create problems. By and large, vacation renters have absolutely no stake in the long-term quality or character of the community

If you live in a city with clear laws against home sharing, then city enforcement is an option, but it takes time. Enforcement staff are dealing with a lot of these complaints these days, and we will still have to participate in the enforcement effort by closely monitoring and reporting ongoing rental activity to the enforcement authorities.

FRequeNtLy asked questIoNs

On May 12, 2015 the Santa Monica City Council adopted the “Home-Sharing Ordinance,” adding Chapter 6.20 to the Santa Monica Municipal Code clarifying prohibitions against short-term Vacation Rentals and imposing regulations on Home-Sharing. This law became effective by June 12, 2015. It allows eligible Residents (owners and tenants) to apply for a business license through the City’s Business License program.

• “Home-Sharing”

Based on our experience, the most effective approach is for an association to take strong, proactive, preventive measures to prohibit home-sharing rentals. If you have a consensus among your board members and your community-at-large on this issue, then it makes sense to enact a few key restrictions that will Overview of the Santa Monica home-Sharing Ordinance

Curbing Short-Term Rentals C ONTINUeD FROm PAGe 5

— Courtesy of City of Santa Monica Planning & Community Development

This Home-Sharing Ordinance provides for regulations of two types of Short-Term Rentals:

When our association decided to take action against the three owners engaged in short-term vacation rentals we started by making them aware of the laws prohibiting such activity in our residentialzoned neighborhood. Two of the three immediately took down their listings and ceased all short-term rental activity. The owner most deeply engaged in this activity, however, tried to continue renting her unit to vacationers under the guise that her paying guests were her “friends.” It was for that reason we filed a formal complaint with the city code enforcement office. The investigation took about two months during which the code officer had numerous conversations with the owner. He first issued her a warning, but when she continued renting via home-sharing sites, he finally issued her a citation with fine of $575. She immediately filed an appeal, but the citation and the fine were ultimately upheld. Only then did she decide to give up the short-term vacation rental activity and once again rent her unit to long-term residents on a minimum one-year lease.

It’s certainly possible for nine homesharing guests to stay without incident, but what should the HOA do when the 10th guest creates some type of disturbance for the other residents, all of whom have a right to enjoy the community we’ve created and pay a substantial amount to be part of it? Our community has decided to take all necessary actions to prevent short-term vacation rentals in our building. So what can we do to prevent shortterm rental activity from taking place? First, check your local laws to see if there are any restrictions on short-term vacation rentals in your city. In our case, Santa Monica has long-standing zoning restrictions on the books that prohibit short-term rentals in residential-zoned areas. Until recently, however, enforcement had been spotty at best, and the code enforcement office had limited resources available to investigate complaints.

– The new law authorizes Home-Sharing, which is an activity whereby a resident hosts visitors in their home, for periods of 30 consecutive days or less, while at least one of the primary residents lives on-site throughout the visitor’s stay. The guest enjoys the non-exclusive shared use of the unit with at least one of the persons who is domiciled at the location.

• “Vacation Rental” – The new law continues the City’s long-standing prohibition against Vacation Rentals. A Vacation Rental is a rental of any dwelling unit, in whole or in part, to any persons for exclusive transient use of 30 consecutive days or less, whereby the unit is only approved for permanent residential occupancy and not approved for transient occupancy. The guest enjoys the exclusive private use of the unit.

Why did the Council adopt the Home-Sharing Ordinance?

The number of Vacation Rentals has increased over the last few years, with the growth of online hosting platforms. This has reduced the number of rental units that would otherwise be available for long-term rentals. In some cities, entire apartment buildings have begun to only offer vacation rentals, essentially turning an apartment building into a hotel in a residential neighborhood. However, Council wanted to still allow individuals to rent out a room or couch to a guest in their home, whether that be an apartment or house.

What will happen to Vacation Rentals that are currently operating?

The City will be establishing a proactive enforcement program to identify Vacation Rentals that are operating. This is where an entire unit is rented out without a host on site. Vacation Rentals that are operating illegally may be issued fines of up to $500 per day, and could even face criminal prosecution if they do not cease operating.

6 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter as a whole. What do they care if they disturb a neighbor? They’ll never see them again. And even though they’re paying a lot less than they would at a hotel, some home-sharing vacationers maintain a sense of consumer entitlement: “We’ve paid for this place and we’re going to do whatever we want—this is our vacation.”

➤➤➤ By Lori Lacher, CCAM To Ai R bnb or no T to Ai R bnb? That is the question that many HOA boards are discussing with their attorneys since Airbnb’s Website was created. The answer for HOAs and Planned Developments is— absolutely not! For those of you who are unfamiliar with Airbnb, it is a Website that allows off-site owners to list their homes as short- term vacation rentals. The benefit to the off-site owner is that they make more money renting their home out as a vacation rental than they would if they leased their home. The benefit to the vacationer is that, for a lot less money, they get to stay in a home, townhouse or condo rather than a hotel. This new trend has sparked interest to some off-site owners who own in HOAs and Planned Developments because of the benefits to them. But, they are not looking at the big picture and how it affects the complex negatively as a whole. In addition, they don’t realize that they are accountable for the conduct and behavior of all visitors, guests and invitees. There are many reasons that HOAs should not allow homeowners to rent their units out as vacation rentals on Airbnb or any other similar Website. The main reason is that most governing documents require homeowners to rent their units for a minimum of twelve months. By using a unit as a short-term vacation rental, the homeowner is violating the governing Liabilitydocuments.isanother very important factor that HOAs need to consider. If a vacationer slips and falls in the common area, the HOA is liable for the damage, not the unit owner. This could increase the cost of the HOA’s insurance drastically. Another very important reason is security. If you live in a gated or secured community, allowing short-term rentals means that the common area keys and remotes will always be changing hands, giving strangers access to the complex and all common area amenities, which could result in increased theft and a security breach of the complex. If there is a breach of an HOA’s security, the cost to reprogram access codes, purchase new keys, etc. is borne by the HOA. Excessive noise and nuisances are also issues that HOAs would have to deal with by allowing short-term vacation rentals. All governing documents state that owners are entitled to quiet enjoyment in their community and that illegal, offensive and obnoxious behavior plus noxious odors are prohibited. Since shortterm rentals on Airbnb are normally used for vacationers who will not receive the HOA’s rules and regulations, you can bet that they will violate these rules. They have no concern for neighbors, as they are staying in the residence for a short time.

There is a homeowner in an HOA that I manage who was very delinquent on his regular assessments and rented his unit out on Airbnb to supplement his income. He was making a lot of money using his unit as a short-term vacation rental and started bringing his account current. At the same time, homeowners noticed that there were different people residing in the unit each week and hanging out by the pool. They also noticed that the owner of the unit was constantly in the laundry room washing all of the sheets, towels, etc. The board was notified, found the ad on Airbnb, got an attorney’s opinion advising the HOA to send a Cease and Desist letter and to request a hearing with the owner. After the hearing, the board voted not to allow the owner to use his unit as a short-term vacation rental because of the violation of the governing documents, even though they knew that the owner may no longer be able to bring his account current.

I have received feedback from on-site homeowners, and they do not support shortterm rentals in their HOA. They feel that it is a breach of their security and safety and a violation of their quiet enjoyment. I recommend if this issue arises in your HOA, ask the board of directors to get an attorney’s opinion on how to deal with short-term vacation rentals.

To Airbnb?

Lori Lacher is a community manager at Beven & Brock in Pasadena. She can be reached at lori@bevenandbrock.com.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 9 REPRESENTING COMMUNITY ASSOCIATIONS IN ALL AREAS OF REAL ESTATE LAW • Drafting and enforcement of Bylaws and CC&Rs • General litigation, including mediation and arbitration of disputes with owners • Construction defect litigation • Insurance bad faith litigation • Collection of delinquent assessments • Providing general business advice to homeowners associations. 11400 West Olympic Boulevard Ninth Floor • Los Angeles, CA 90064 (PH.) 310.478.4100 • (FAX) www.wrslawyers.com310.478.6363

Ifirst heard about Airbnb when a friend was traveling out of the country and explained she had found a great deal and would be staying in someone’s home for a week. I thought, “what a great idea and resource this is! People can make some extra money when their home might be vacant for a while.”

the wE LIVE IN A d AY ANd AGE w HEr E NE w TECHNOLOGY, qUICK TUr NA r OUNd ANd INNOVATIVE IdEA s A r E FLYING BY U s ALL THE TIME wITH THE s E TECHNOLOGICAL A d VANCEMENT s COME s OME GOOd, ANd s OME NOT-s O GOOd I ss UE s. ONE OF OUr MOr E r ECENT CHALLENGE s I s IN THE E xCHANGE Or THE LI s TING OF YOUr HOME ONLINE FOr s HOr T PEr IOds. ONE s ITE THAT HA s r ECENTLY PICKEd UP qUITE A BIT I s A Ir BNB. COM. ChallengesRentalShort-Term ■■■ B Y NEd A NEHOUr AY, CMCA®, AM s ®

The site instantaneously lists available locations in the city of choice for better pricing than local hotels and offers a fullyfurnished and spacious place to stay! While I still feel this is a wonderful option for travel, it has left us in the community management industry with some serious challenges to face. I have now had about a half a dozen of my communities encounter an owner within the community who has listed their unit on Airbnb.com. For those communities with governing documents that specify that short-term rentals are not permitted, the problem is resolved quickly. The association has called the unit owner to a hearing and reminded owners that short-term rentals violate the Association’s governing documents. For other associations who do not have any restrictions on short-term rentals, stopping owners from listing their units and renting the units out for weeks at a time has been very challenging.

My associations that are located in the heart of the city—like West Hollywood, Beverly Hills or Hollywood—seem to be more susceptible to these short-term rentals and unit exchanges. The area makes the units more desirable for tourists, so people tend to book these units for their stay quite regularly. When association do not have rental restrictions in place, they have not had a clear-cut method of handling this issue. After all, most of these rentals are a severe nuisance to the other residents and create security breaches. When people rent these units, they are in a vacation mind-set. They usually stay out until late hours of the night, perhaps indulge in alcoholic beverages, are more rambunctious then a normal resident, and may not be conscientious that others around them are living and have normal routines for work. This leaves the rest of the residents in the community dealing with the behaviors of a group who are in for the week to have a great time but have no regard for the property or others around them. For owners who are partaking in these short-term rentals, there must be a distribution of keys to the common areas that is regularly occurring, thereby exposing the community to many people. In communities where this has taken place, we have had issues like people smoking in the common areas when smoking is prohibited, midnight pool parties when our pool closes at 10 p.m., alcohol bottles out by the pool when our rules prohibit glass and drinking alcohol by the pool, gates being propped open for friends, common areas being damaged by these people inviting others back to the unit for late night partying, etc. When we have the unit rented out to these types of individuals, we must aggressively pursue the owner and enforce our governing documents. As mentioned earlier, unfortunately, many associations do not have restrictions on short-term rentals, so we pursue unit owners in other ways. First, the action of these “renters” is a nuisance to

CAI-Greater Los Angeles

10 www.cai-glac.org | July/August 2015

Chapter

Neda Nehouray , CmCA, A mS, is the owner of HOA Organizers, Inc., a full-service management company in Lake Balboa. She can be reached at info@hoaorganizers.com.

O VEr ALL , this matter has not been made easy for associations. As the concept of short-term rentals and easy access through the Internet becomes more prevalent, this issue will become more commonplace. I believe this is something that requires the attention of community managers so that all are prepared to handle this as quickly as possible. Within the last few months, there was a recent case, Watts vs. Oak Shores, that specifically dealt with short-term rentals. The association was successful in this case, and I believe managers should read the case and become familiar with how to handle this matter should this become an issue in their community. It can save a lot of trouble for the rest of the residents. As this technology wave brings us the capabilities to communicate rapidly with our community and handle things much more efficiently, we must also be prepared to deal with the new challenges that we encounter regularly.

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CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 11 community, so we do issue violation notices and fines for all infractions of the governing documents. Furthermore, most CC&Rs state that owners are prohibited in running a business. In engaging in short-term rentals, one is arguably running a business and can then be pursued on these grounds.

wHILE U s E OF r E s I d ENCE s A s r ENTAL PrOPErTY HA s ALwAYs BEEN AN IssUE FACING COMMON INTErEs T dEVELOPMENTs, THE AdVENT OF ONLINE VACATION rENTAL sErVICEs sUCH A s AIrBNB (www. AIrBNB.COM) ANd V r BO (www.V r BO.COM) HAVE Br OUGHT THE I ss UE TO THE FOr EF r ONT FOr HOMEO w NErs A ss OCIATION s ANd LOCAL MUNICIPALITIE s ALIKE . sHOr T TEr M VACATION rENTAL s CAN HAVE A s IGNIFICANT IMPACT ON LOCAL COMMUNITIE s IN TEr M s OF T r AFFIC , NOI s E ANd INC r EA s Ed U s E OF TYPICAL HOA s Er VICE s. T HE POPULA r ITY OF s HOr T TEr M VACATION r ENTAL s I s PA r TICULA r LY NOTICEABLE IN sOUTHEr N C ALIFOrNIA w ITH IT s rEA dY ACCE ss TO BEACHE s, AMU s EMENT PA r K s ANd OTHEr ENTEr rEGULATETAINMENT. sHOr T-TErM rENTAL s w ITH A wELL-rEA sONEd A MENdMENT Or rULE

HOAs have traditionally dealt with property usage issues in the Declaration or CC&Rs. Thus, many CC&Rs contain language limiting the use of property to a “single-family residence” and mandating residential or noncommercial use. Courts have generally upheld such restrictions as long as they are rationally related to the protection, preservation or proper operation of the development, and are enforced in a fair and nondiscriminatory manner. The broadly-worded restrictions found in many CC&Rs, however, are generally insufficient to preclude short-term vacation rentals. As AN E x AMPLE, in a case before the Washington State Supreme Court, the court rejected an HOA’s argument that short-term vacation rentals violated language in the HOA’s CC&Rs limiting lot use to “single-family residential use consisting of single residential dwelling” and precluding “industrial or commercial use.” According to the court, “[i]f a vacation renter uses a home ‘for the purposes of eating, sleeping, and other residential purposes,’ this use is residential, not commercial, no matter how short the rental duration.” the CC&Rs for an affordable housing project. Thus to the extent that an HOA’s CC&Rs already contain a rental duration restriction, and some do, such can be utilized by the HOA to immediately limit short-term vacation rentals. This leaves the many HOAs that have only the general single-family dwelling use restriction and nothing restricting rentals. One would imagine, especially in light of the unpopularity of short-term vacation rentals in many communities, that it would be a matter of simply amending the CC&Rs to restrict short-duration rentals. Setting aside the fact that such requires approval of at least a majority or, depending upon the CC&Rs, up to 75% of the members, via secret ballot, such an amendment would only apply to future buyers in the community. Section 4740 of the Davis-Stirling Act specifically exempts homeowners from rental restrictions adopted after January 1, 2012, unless they expressly agree to be bound by the restriction or the restriction that was in effect prior to the date the owner bought his or her property. In other words, an HOA can vote to restrict future owners from engaging in short-term rentals, but not current owners. A BETTEr APPrOACH may be to regulate short-term rentals via rules, fees and fines, which avoids the need for a member election. Rules may be adopted by the HOA’s Board so long as they are reasonable and do not conflict with the HOA’s governing documents (e.g., CC&Rs and Bylaws). HOAs are also permitted to impose fees, so long ■ ■ ■ By Brandon C. Fernald, Esq. Wilkinson v. Chiwawa Communities Ass’n, 180 Wn.2d 241 (2013). While this case does not apply to California communities, it does show that courts are still struggling with how to handle these new types of leasing arrangements. That said, renting rooms in a home to multiple tenants may be precluded by general residential dwelling restrictions.

The California Court of Appeal upheld a complete ban on rentals contained in

Existing restrictions on the duration of rentals are also generally enforceable. An example of such a restriction is as follows: Each Lot or Condominium shall be used as a dwelling for a single Family and for no other purpose. An Owner may rent his Lot or Condominium to a single Family provided that the Lot or Condominium is rented pursuant to a lease or rental agreement [which is (i) in writing, (ii) for a period of not less than thirty (30) days.

In Colony Hill v. Ghamaty, 143 Cal. App.4th 1156 (2006), the California Court of Appeal upheld an injunction enjoining a homeowner from renting rooms to multiple tenants in violation of a single-family dwelling use restriction.

12 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter

as the fee does not exceed the amount necessary to defray the costs for which it is levied, or fines to deter violations.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 13

The Court’s conclusion is telling: That short-term renters cost the Association more than long-term renters or permanent residents is not only supported by the evidence but experience, and common sense places the matter beyond debate. Short-term renters use the common facilities more intensely; they take more staff time in giving directions and information and enforcing the rules; and they are less careful in using the common facilities because they are not concerned with the long-term consequences of abuse.

tedious CC&Rs amendment process, by taking a measured and studied approach. Before implementing new fees or rules, the Board should make an effort to determine the number of short-term rentals occurring in the community and the relative impact on the HOA and its members.

Brandon C. Fernald, e sq. is the name partner in Fernald Law Group, a litigation boutique with offices in Los Angeles and Las Vegas that regularly advises HOA board members and management companies on legal issues affecting common interest developments. Brandon may be reached at brandon.fernald@fernaldlawgroup.com.

At issue in Watts v. Oak Shores Comm. Ass’n, 235 Cal.App.4th 466 (2015) were rules implemented by the HOA that limited rentals to a minimum of seven days and imposed various fees with respect to short-term rental activity.

A new fee or rule is much more likely to survive a challenge if there is a wellreasoned, factual basis for it. In short, gather the facts, make a record, and then put rules in place designed to directly address the impact of short-term rental activity in your particular community.

While an HOA may not be able to ban short-term rentals outright via rules (to the extent there is no such existing restriction in the CC&Rs), one recent California Court of Appeal decision suggests that with a little planning, an HOA can successfully regulate shortterm rental activity.

The court upheld the rules, based upon evidence presented by the HOA that short-term renters taxed the HOA’s resources far more than long-term renters and permanent residents: The Association’s general manager testified that, based on his discussion with Board members, staff and code enforcement officers, as well as his review of gate and patrol logs, shortterm renters cause more problems than owners or their guests. The problems include parking, lack of awareness of the rules, noise and use, and abuse of the facilities.

The Watts ruling suggests that HOAs can successfully regulate short-term rentals, without engaging in the often

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14 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter Sharing our withexperiencecommunity August 15, 2015 5:00 – 9:00 p.m. The Aquarium of the Pacific 100 Aquarium Way Long Beach, CA 90802 $75 per BusinesspersonCasual Attire Outdoor Rooftop Wine Tasting & Light Meal Bes T O f CLA CHorizonssManagementCompanyORdOnBLeu Pacific Western Bank sOMM e L ie R steven G. segal insurance Agency, inc. sO uVeni R W ine GLA sses nu Air services, inc. PARK in G ALLBRiGHT 1-800-PAinTinG ePi Cu R e WineA-OneAnConstructionsTeWARd Fenton Grant Mayfield Kaneda & Litt, LLP Law Offices of Laura J. Snoke Law Offices of Michael A. Hearn sandra Macdonald insurance Cen T e RPie Ces On Time Building Maintenance, inc. d esse ThreeRTPhase e lectric s ign up now at CAi -GLAC.org

Laurie has worked in the community association management field for the past 23 years. She spent the first 14 years as the on-site manager for a 264 unit condominium community in Valencia, California and has been a portfolio manager with Valencia Management Group for the past nine (9) years, managing six (6) associations and a total of 1,405 units. In addition to recently achieving her PCAM designation, Laurie also holds a Certified Manager of Community Associations (CMCA®) certification, an Association Management Specialist (AMS®) designation, and a California Real Estate Sales License.

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CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 15

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Donyelle La-Key, CMCA®, CCAM®, AMS®, PCAM® Property Management Professionals, LLC Donyelle La-Key brings more than fifteen years of association experience. She has been a member of Community Associations Institute (CAI) for many years starting in the Greater Inland Empire Chapter and then migrating to the Greater Los Angeles Chapter. Donyelle participates in ongoing educational programs to stay current with association trends, laws, news and business. This educational track has led her to the professional credentials of Certified Manager of Community Associations (CMCA®), Certified Community Association Manager (CCAM®), Association Management Specialist (AMS®) and most recently the prestige Professional Community Association Manager (PCAM®). A native of Los Angeles, Donyelle graduated with honors from California State University of Dominquez Hills achieving a Bachelors of Arts degree in Behavioral Science and a Masters Degree candidacy. In her spare time she volunteers for D-WAC, the Downtown Women’s Action Coalition, and works closely with Los Angeles women’s shelter programs.

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We are very proud of two managers who have recently earned the Professional Community Association Manager (PCAM®) designation after successfully completing CAI’s Professional Management Development program.

Low

Chris Albrecht with John Walters-Clark C onte S t SP on S oRed B y nPG-neLS on PAVInG Closest to the Pin #9 ( women’s) Katy Krupp with ernie Mendoza C onte S t SP on S oRed B y GUARd -S y S teMS InC. Closest to the Pin #4 (Men’s) Geoff Lloyd with John Walters-Clark C onte S t SP on S oRed B y nPG-neLS on PAVInG Closest to the Pin #9 (Men’s) Marc Roest with ernie Mendoza C onte S t SP on S oRed B y GUARd -S y S teMS InC. Re V eRS e R AFFL e W InneR Linda Klem Re V eRS e R AFFL e t oP t en

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HowardJeffTonyaGreenbergGuyotmattPerryStephens Contest w inner Aaron Bovberg with Jill Nathman C onte S t SP on S oRed B y MCK en ZIe RHody, LLP Closest to the Pin #16 ( women’s) Bonnie Stoeppelman C onte S t SP on S oRed B y SILL doRF & L e VIne , LLP Closest to the Line #1 ( women’s) Jennifer Cleveland with teresa Agnew & Ryan dudasik C onte S t SP on S oRed B y A.ALLBRIGH t 800-(PAInt InG) Net Foursome Steve t innelly Anda Bewhite Matt RobertPlaxtonGavela Closest to the Pin #16 (Men’s) Al Masters with teresa Agnew C onte S t SP on S oRed B y SILL doRF & L e VIne , LLP Closest to the Pin #11 ( women’s) Melissa Weissman with teresa Agnew C onte S t SP on S oRed B y HI teCH PAInt InG & deC oRAt InG

16 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter Honesty Award

Low Gross Foursome Joe Bolich drewKatySchlegelKrupp Chuck Fenton (not pictured) F enton GRA nt MAy FIeL d KA ned A & LI tt LLP F oURS oMe Closest to the Pin #4 ( women’s)

BE s T dECOr ATEd T EE Longest drive w inner ( women’s) mic montalvo Ti T le NPG-Nelson Paving 19 T h h O le PPG Paints S O uvenir Ph OTOS Securitas Security Services USA, Inc. Cham P i O n S hi P Pacific Western Bank Preferred Commercial Painting Universal Protection Service Pu TT ing CO n T e ST McKenzie Rhody, LLP Beverage Car TS Behr Paint Corporation Benjamin Moore & Co. BlOO dy m aryS Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley B rea KFa ST Sherwin-Williams Paint C lu B P r O Colarossi Painting, Construction & Rain Gutters g O l F C ar T TOW el S ASR Construction S C h Wag Bag S Universal Protection Service TailgaT e CO n T e ST hO le S ALLBRIGHT SilldorfNPG-NelsonHiGuard-Systems,1-800-PAINTINGInc.TechPainting&DecoratingPaving&Levine,LLP TailgaT e hO le S A-One VistaUnionTinnellyReconstructionPlatinumMeterNetHAR-BRO,Dunn-EdwardsBurdmanBELFORAmericanAmericanConstructionHeritageLandscapeTechnologies,Inc.PropertyRestoration&WardLawOfficePaintsInc.Sub-Metering&BillingSolutionsSecurity,Inc.Experts,Inc.LawGroupBankHOAServicesPaintCorporation W e T TOW el S Paint Squad, LLC Great Day for Golf! CAI members and guests thoroughly enjoyed this year’s Golf Tournament at TPC Valencia on May 18. Tee sponsors carried out the “Ultimate Tailgate Party” theme with innovative decorations and offerings. Our thanks to the Golf Committee for its great planning and hard work: Co-chair Teresa Agnew (Roseman & Associates, APC), Co-chair Ryan Dudasik (EmpireWorks Reconstruction & Painting), Jeff Koscher (HAR-BRO, Inc.), Gary Lieberman (Payne Pest Management, Inc.), Jay McMullen (Allstate Landscape Services, Inc.), Billy Merrill (Universal Protection Service), Mic Montalvo (Golden West Security), Ashley Neff (HAR-BRO, Inc.) and Jeff Stephens (Preferred Commercial Painting, Inc.). Thanks To Our SponsorsFore!TeeUp! Winners Not Pictured Longest drive (Men’s) – Greg Borzilleri Closest to the Line #1 (Men’s) – John Burton C onte S t SP on S oRed B y A.ALLBRIGH t 800-(PAInt InG) Closest to the Pin #11 (Men’s) – Adriann Carroll C onte S t SP on S oRed B y HI teCH PAInt InG & deC oRAt InG CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 17

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CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 19 At The Ultimate Tailgate Party!

20 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter Apassed the Senate Housing Committee unanimously despite our efforts to amend it in several places. The overwhelming response from legislators is that “we are in a new world” and nothing should impede our effort to use less water. Hence, the bill moves ahead despite cautions raised by CAI and others. AB 1448 allows clotheslines and drying racks to be installed. We supported the recent amendment that limits placement to back yards and restricts them from attaching to any portion of the buildings. The bill also allows associations to adopt reasonable restrictions. s enate Bill 655 would have managers and board members pay fines and go to jail if they refused to remedy mold in the buildings. The bill is also opposed by apartment building landlords. CAI is objecting to various provisions in the bill. AB 1335 levies a $75 to $225 fee on recorded documents to pay for more affordable housing. CAI supports constructing more affordable housing but the funding source is excessively high compared to only ten other states that use this source; they charge as little as $4.00 per recordation. CLAC launched a grassroots email campaign opposing this feature and the bill is being held up by the Republicans who control enough votes in the Assembly to stop its progress. We may be asking YOU to help this year by communicating with your own Senator and Assembly Member. Please sign up for our free email alerts on our web site www.caiclac.com. Your email address will not be shared with anyone else. Skip Daum is our Legislative Advocate for CAI's California Legislative Action Committee and may be reached at caiclac@aol.com. F rOM s AC r AMENTO neWs Our THanks TO 2015 clac cOnTriBuTOrs January 1 – June 30 GoaL: $24,645 42%ofgoal as of 6/30/15 118 Wadsworth Ave. HOA 1144 Seventeenth Street HOA 11767 Sunset Blvd. Assn. 20th Street HOA 2nd Street HOA 3rd Street, Inc. 4th Street HOA 446 San Vicente HOA 558 evergreen Street HOA 7th Street HOA 826 2nd Street HOA 909 el Centro, Inc. 914 Lincoln Blvd. HOA ALI Condominiums OA Artesia HOA Avis BerkeleyHOA Street HOA Berkeley Townhouse HOA Bodger Park Condo HOA Bougainvillea Townhomes HOA Burbank Blvd. HOA California Ave HOA Cardiff Court OA, Inc. Casa De Valley View OA, Inc. Casa Loma Association, Inc. Chateau Delgany estates COA Chateau Goshen HOA Continental Court HOA Coro Community management & CulverConsultingCentrale HOA eight on Twenty HOA el Centro, Inc. Florwood estates HOA Forest Park Village HOA Galaxy GorhamHOAPark HOA Inc. Harbor Knolls HOA Hayworth OA Heritage Townhomes OA Hermosa Surf Condos Hillcrest meadows HOA Hillcrest Rolling Hills HOA Hopi IdahoHOAVillas HOA Idaho West Town Homes HOA Kelton Arms COA Lawford HOA marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Pacific Regency HOA Park Crest HOA Polynesian RidgeleyRancho-GlenOAHOAVistaChateau HOA Roxbury Park COA S. manhattan Place Seascape-RedondoHOAHOA, Inc. Shoreham Villas HOA Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay estates HOA South Hermosa Townhomes HOA Inc. Stratford-Compton Park Townhomes OA Textile Building OA The Angels Landing Group 7 Fountains The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Cordoba HOA Villa Cynthia HOA Villa Pacifica Condo HOA Villa Serena CA Vogue Condominiums Association, Inc. Westside Townhouses I HOA West Wind Townhomes HOA Whitsett Avenue HOA Wilshire Regent HOA Woodbury maintenance Corp. Yale St. HOA c cOurrenTnTriBuTiOn TOTal:$10,449 What is clac? T He C ALIFORNIA LeGISLATIV e A CTION C OmmITT ee (CLAC) IS A VOLUNT eeR COmmITT ee OF THe C OmmUNITY A SSOCIATIONS INSTITUT e (CAI) CONSISTING OF HO me OWN e RS AND PROF e SSIONALS S e RVING CO mm UNITY ASSOCIATIONS

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 21 CALIFORNIA COMMUNITIES For um Leg a lCAI Oct. 16, 2015 | Long Beach, 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 a.m.–6 p.m. ET). Accurate Termite & Pest Control Adams Kessler PLC All Counties Fence and Supply Alliance environmental Group, Inc. A m S Paving, Inc. Animal Pest management Services,Inc. Antis Roofing & Waterproofing, Inc. Association Reserves, Inc. Beaumont Gitlin Tashjian Benjamin moore & eDesignCommerceWestChaixCaliforniaBurdmanBrickman/ValleyCrestCo.&WardCoastalPatrolLawBank.,N.A.BuildAssociateslliotKatzovitzInsuranceAgency, Inc. empireWorks Reconstruction & Painting epsten Grinnell & Howell, APC The e V Structure Co. Fenton Grant mayfield Kaneda & Litt, LLP FHA Fiore,ReviewRacobs & LaBarre/OksneePowersInsurance Agency Inc. The Law Offices of michael A. Hearn meterNet Sub-metering & Billing Solutions The miller Law Firm mutual of Omaha Bank Nautilus General Contractors NPG-Nelson Paving O’Connell Landscape maintenance Orange County mailboxes Pacific Premier HOA & Property Banking Patrol masters Pilot Painting & Construction Professional Services Construction, Inc. ProTec Building ReconstructionServicesexperts, Inc. Roseman & Associates, APC Roy Palacios Insurance Agency, Inc. S.B.S. Lien Services Securitas Security Services USA, Inc. TimothyThreeSwedelsonGottliebPhaseelectricClineInsurance agency, Inc. Tinnelly Law Group Union Bank HOA Services Universal Protection Service Vista Paint Corporation W.C. Service Company, Inc. West Coast maintenance, Inc. WICR, Waterproofing and Decking Witkin & Neal, Inc. E x HIBITOrs CAI L EGAL F OrUM: California Communities CUrrENT s PON s Ors EVENT Berding | Weil Richardson Harman Ober PC NAME BA d GE Antis Roofing & Waterproofing, Inc. TOTE BAG CardinalBrickman/ValleyCrestPropertymanagement AA mC PA r KING Association Lien Services COCKTAIL r ECEPTION Fiore, Racobs & Powers LaBarre/Oksnee Insurance Agency Inc. Securitas Security Services USA, Inc. NET w Or KING Br EAKFA s T OCBS, SunwestInc.Bank EVENT BANNE r APP Associa-PC m E VENT sCHE d ULE 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 L OCATION Hilton Long Beach Hotel • (562) 753-2107 701 West Ocean Blvd., Long Beach, CA 90831-3102 rOOM rATE s Please ask for the CAI Legal Forum group rate of $189 when reserving your room. Use Group Code CAC2. The group rate will be available until September 23 or until the room block is sold out, whichever comes first. rEGI s T r ATION C O s T CAI MeMbers $129 Register on or before Sept. 30 $149 Register after Sept. 30 $124 per third and subsequent registrants from same association or management company NoNMeMbers $169 Register on or before Sept. 30 $189 Register after Sept. 30 Oct. 16, 2015 | Long Beach, CA

22 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter Thursday, June 4, 2015 hilton Woodland hills CAI-Greater Los Angeles Chapter Presents Homeowners AssociAtion mArketpl Ace

More than 100 HOA board members and managers attended our June 4 Homeowners Association Marketplace at the Hilton Woodland Hills. This was the second of three regional events planned this year to provide an opportunity for local managers and boards to first network with service providers in a relaxed Meet and Greet reception, and then attend a hosted dinner and educational presentation. During the dinner Jeff Beaumont, Esq. of Beaumont Gitlin Tashjian and Matt Ober, Esq. of Richardson Harman Ober PC spoke about current legislation and answered legal questions from the audience. sincerely appreciate the ingenuity and hard work of our HOA Marketplace Committee members who planned this event: Committee Chair Alan Denison (Stay Green Inc.), Carol Brockhouse, Michael Huffman (Management Professionals, Inc. AAMC), Sascha Macias (FirstService Residential), Jeremiah Masopust (Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley), Lisa Ann Rea (Mutual of Omaha Bank/CondoCerts), Mike Roberts (Oakridge Landscape) and David San Filippo (Critter Busters, Inc.).

We

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 23 Thanks To Our Sponsors & e xhibitors evenT SPOnSOrS A-One Construction, Inc. RoseCritterAssocia-PCMBusters,Inc.GeneralPavementManagement,Inc.PavingCompany, Inc. Sky Painting grand PriZe SPOnSOr FirstService Residential ShOW BagS Vista Paint Corporation e xhibitors Accurate Termite & Pest Control Action Duct Cleaning Co., Inc. ALLBRIGHT 1-800-PAINTING American Heritage Landscape American Technologies, Inc. Animal & Insect Pest Management, Inc. Archon Protection, Inc. ASR AssociationConstructionReserves Inc. Beaumont Gitlin Tashjian Behr Paint Corporation Benjamin Moore & Co. Brian Berce Insurance Agency, Inc. DebraCoinmachCritterCertaProCoolCommerceWestCaliforniaBrickman/ValleyCrestWatersBankPlanetPaintersLtd.Busters,Inc.CorporationSheppard&Associates, APLC Design Build EmpireWorksAssociatesReconstruction & Painting Ferris Painting, Inc. General Pavement Management, Inc. Golden West MeterNetGuard-Systems,SecurityInc.Sub-Metering and Billing Solutions Miller Law Firm, The Mission Association Financial Management, Inc. Mulholland Security Centers, Inc. Mutual of Omaha Bank/CondoCerts Oakridge Landscape Payne Pest Management Pierre Landscape Rose Paving Company, Inc. Richardson Harman Ober PC Roseman & Associates APC R.W. Stein Painting, Inc. S.B.S. Lien Services Select Painting & Construction Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley Sky Painting Stay Green Inc. Super Painting Co. Timothy Cline Insurance Agency, Inc. Tinnelly Law Group Union Bank HOA Services Universal Protection Service Vista Paint Corporation WICR, Inc. Waterproofing and Decking

Acknowledge the Visitors If you see someone new in your community, say hello! Make eye contact. If you’re up to it, introduce yourself. Getting to know the people around you increases your awareness. If the visitors are violating any of the community rules outlined on the CC&Rs, let your Board know immediately so the issue can be addressed it before it gets out-ofhand. It is not recommended that you confront the visitors directly. If there are parties or extreme noise coming from the rented units/house, you can call LAPD’s Noise Enforcement Team at 213-996-1250. LAPD may issue a “quality-of-life infraction” ticket to your neighbor for a raucous party that is a nuisance to you or the community.

tips For owners renting short-term If you are renting out to VRBO & Airbnb and your guest wants to extend their stay beyond what they had originally booked through the official VRBO or Airbnb Website, be aware that, if you extend their stay outside of official VRBO or Airbnb Website, you are not covered for any damages that may be Miranda Legaspi

24 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter MEET A BANK WITH 20 YEARS IN NEIGHBORHOOD.THE

Don’t be reluctant to report what is happening around you; by being involved you can make a difference in your community. There’s a reason why they said: “It takes a village.”

©2015 MUFG Union Bank, N.A. All rights reserved. Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A. Smartstreet is a registered mark of MUFG Union Bank, N.A. No matter what size your community is, managing it can be a daily challenge. Union Bank ® Homeowners Association Services is here to help. For over 20 years, we’ve streamlined the assessment collections process for community associations with specialized tools and services powered by Union Bank product solutions and our proprietary Smartstreet® technology. 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 HOAbankers.commore.

Smartstreet.com T HE T r ENd OF U s ING A Ir BNB & V r BO I s UNFOr TUNATELY NOT GOING TO GO AwAY ANYTIME s OON. wHAT I s A HOMEO w NEr TO dO w HEN YOU HAVE s T r ANGErs COME ANd GO THr OUGH YOUr COMMUNITY ?

sctsecurityipsoncerninghort-termrentals ▶▶▶ By

You may also want to consider changing the locks periodically if you use a traditional key to gain access to your property. If you haven’t done so, you may also want to consider placing cameras inside your rental property—in the living room, hallways and dining room.

If you are renting your property out, make sure that your guests are aware of the rules and regulations of your community, especially the quiet hours and other rules that can cause headaches for you down the line with your neighbors and the Board. miranda Legaspi is the marketing director at Platinum Security, Inc. in Los Angeles. She can be reached at mlegaspi@platinumsecurity.com.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 25

caused by your tenant/guest. If they want to stay longer than their original reservation, direct them to the Website so that you are covered should there be any damages to your unit/property.

I would suggest assigning a code to each guest that they can use as an access code to your alarm system. This way, after they have left, you can cancel their access code to your property. It will not be wise to give your guest the same code that you use for yourself; some systems have the capability of programming multiple codes that can be assigned to other people.

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 27

■ THE Ass OCIATION’s M A s TEr P OLICY rATE s C AN BE A FFECTEd

■ BU s INE ss Ow NErs P OLICY (BOP). Arguably, the unit owner who lists their home on a short-term rental Website is operating a business and should contact his/ her agent or broker about procuring a Business Owners Policy or “BOP.” This is the type of coverage placed for any small business owner and such coverage, when written correctly, would properly address the liability exposure (providing both bodily injury and property damage coverage) and protect the unit owner for Loss of Income should there be a covered loss which renders the unit uninhabitable. Theft and vandalism coverage could also be addressed with a BOP, and the transient, revolving door nature of the house guests won’t scare the BOP carrier away.

■ A Ir BNB s TO THE r E s CUE ? “HO s T Pr OTECTION C OVEr AGE ”

The meaning of the word “rental” now includes both shortterm and long-term activity. By reaching a certain threshold of rentals, the association may find their annual premium surcharged. In certain extreme cases, the carrier may feel that the exposure is more akin to a motel/hotel operation and choose not to continue to offer coverage.

With these types of rental situations becoming more and more popular, it’s a good idea for any association to remind their owners of any restrictions the HOA’s governing documents may have on the matter, and to make their owners aware of the types of risks this exposure presents to both the individual owner, and to the association.

Rental activity can impact the insurability of a condominium association. While each carrier addresses this issue differently, nearly every carrier asks about the percentage of rentals.

Since January 15, 2015, Airbnb has provided some protection for homeowners who rent their homes through the Website. The limit offered is $1,000,000, but it is secondary to any coverage the owner may have, and there are considerable exclusions. The policy does not apply to liability arising from (1) Intentional Acts (of the host or any other insured party), (2) Loss of Earnings, (3) Personal and Advertising Injury –including defamation of character, mental anguish, wrongful eviction, or any (4) Insured vs Insured (i.e. Host sues Airbnb or vice versa) claims. Additionally, there has to be an actual stay in order for the coverage to apply.

The issue for the Master Policy carrier is the increased guest activity which presumably would lead to more claims, including slip-and-fall losses—and potentially more losses for which recovery attempts (such as subrogation) are eliminated or eroded because of revolving door of visitors.

Timothy Cline, CIRmS, is the owner of Timothy Cline Insurance Agency, Inc. and Jose Glez, CIRmS, is an insurance broker at that agency. They can be reached at tim@timothycline.com and jose@timothycline.com, respectively.

■ preventive As described in the manufacturer’s operating manuals or instruction bulletins. Examining each of these areas: ■ life Safety risks Your facility is more likely to burn down because of an electrical hazard than any other cause. Preventive maintenance on your Electrical Distribution System is risk management and critical for safety. The National Fire Protection Agency (NFPA) says: “Nearly two thirds of all electrical distribution systems fail due to fire losses that could have been prevented.”

28 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter

Electricity is distributed throughout the facility and feeds many of the critical services that provide us with the benefits required to live comfortably. Elevator systems require electricity. Fresh water and waste systems throughout any facility and pumps require electricity. The cost of a large Electrical Distribution System replacement can be overwhelming. Your Electrical Distribution System has an average life expectancy of 30-35 years and requires preventive maintenance as prescribed in the manufacturer’s operating manuals. However, many responsible parties do not understand that preventive maintenance on electrical distribution systems is a requirement. As attention is focused elsewhere, the Electrical Distribution System is aging, and the requirements for maintenance become extremely critical. variouS approaCheS to maintenanCe: ■ reactive (Fix-on-Fail)

Many of the HOAs in California were built during the 1970’s. These buildings along with their major systems are aging. The Electrical Distribution System can be one of the most costly and complicated replacements in any facility. If this major system is not properly maintained, the ramifications of a failure could range between the loss of the electrical service up to an electrical fire and any associated liability. Who is Electricityresponsible?from the utility is distributed to your facility via overhead or underground transmission lines. High voltage is reduced to voltages suitable for end users through either a utilityowned or customer-owned transformer. In most cases the primary transformer is owned by the utility.

Slowly destroys the integrity of your system as failures create chain reaction and weaken other components. This will reduce the system’s useful life.

■ Business interruptions When the lights go out, it is very inconvenient for owners, tenants and managers. It may also be hazardous and costly. Businesses (if applicable) at the bottom of your building can lose revenue and may request for rent-relief and additional compensations. The high cost of emergency repair impacts on the elderly and disabled. Without power, they must climb stairs instead using the elevators. Think about the person who needs power to still live safely.

■ utility Costs Without preventive maintenance, the Electrical Distribution System itself can waste 1% to 4% in electricity utility cost, and this happens naturally over By Todd Ritter C.E.M.

THE CHALLENGES OF AGING HOA BuiLdings — And YOUR ELECTRICAL DISTRIBUTIONSYSTEM ■■■

■ power distribution EvStructure has been in over 900 HOA buildings performing transformer load assessments for Electric Vehicle charging stations and has found that the average HOA can only handle six Level 2 EVSEs. An overwhelming majority of powerquality problems are created within your own facility or by your homeowners with electric vehicle charging.

firm that helps

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 29 take that to the bank. Member FDIC Equal Housing Lender 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 COASTCENTRALCOUNTYKERNEMPIREINLANDCOUNTYORANGEANGELESLOS A FULL SERVICE COMMUNITY ASSOCIATION LAW FIRM General Legal Counsel Governing DocumentDisputeLegalAmendmentsEnforcementOpinionsContractsResolution Civil Litigation InsuranceEnforcementBad Faith Construction Assessment Collections JudicialJeffreyForeclosureA.Beaumont, Esq.IntoTurningwww.bgtlawyers.com866.788.9998CommonInterestsCommonGround time. The metal in the system expands and contracts during normal operation. This leads to loose connections, which must be tightened properly during preventive maintenance at planned electrical outage times. ■ asset management As previously mentioned, the Electrical Distribution System has an average life expectancy of 30 to 35 years with preventive maintenance. Typically, the replacement cost of electrical equipment can range between 10–15% of the facility’s conduction cost. Your electrical distribution system can easily be over $1,000,000. ■ insurance certification By reducing your risk of an electrical fire with a comprehensive maintenance program you reduce the risk for your insurance company. Many insurance companies today require maintenance. Proper documentation may help you qualify for additional discounts. ■ manufacturer’s recommendations All manufacturers require periodic maintenance on electrical distribution equipment. The advantages of regular maintenance are many: X Helps with the budgeting process X Helps your reserve fund by extending the forlife,DistributionSystem’sElectricalusefulallowingmoretimetosavereplacement X Reduces Liability X Reduces the occurrence of electrical fires X Requires you to document your system components and helps with repairs/replacements In summary, your call to action is to ensure that your Electrical Distribution System is operated properly. Your utility company is only responsible for providing power to the building. From that point the responsibility goes back to the HOA.

manage their utilities. He can be reached at tritter@evStructure.com. variouS approaCheS to maintenanCe

electrical

Todd Ritter is the CeO of evStructure, an engineering HOAs

30 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter NE w CAI- GLAC MEMBErs! WelcOme A s OF JULY 11, 2015 BU s INE ss P r OFE ss IONAL s r EC r UITE r Berding & Weil, LLP CAI National Cool Planet CAI National mcKenzie Rhody, LLP CAI National Revolution Pest Solutions CAI National SageWater CAI National Whitestone Painters CAI National COMMUNITY A ss OCIATION s Doran Gardens HOA e rik mendez C mCA®, A m S®, PCA m ® e ncino Gardens HOA CAI National Pacifica Villas HOA CAI National Playa Pacific HOA martha Olvera, C mCA® Sherman Townhomes Association, Inc. Donyelle La-Key C mCA®, A m S®, PCA m ® Tract 2578 COA CAI National Village Green Owners Association CAI National COMMUNITY MANAGEMENT COMPANIE s Realmanage CAI National Serrano Asset management CAI National COMMUNITY MANAGE rs Melissa Bailey Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Benjamin Beckman michael Huffman management Professionals, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Michael Black CAI National marina West management Tatiana Brunstad Sascha macias, C mCA®, A m S® FirstService Residential Tanya Carias Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Monica Cooper Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Albert davoudi CAI National Janet Garcia Sue Nelson, CCA m ® Ocean Terrace HOA Norma Gonzalez Russell Hoffman, Valencia management Group, AA mC C mCA®, A m S®, PCA m ® Marcus Hernandez Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Carla Linares Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Marc Loge Nathalie Weinstein Cardinal management Group Linda radtke CAI National Friendly Valley Recreational Association Monica Trautman Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® Cari w illiams Diane Hilliard Ross morgan & Company, Inc., AA mC CCA m ®, C mCA®, A m S®, PCA m ® COMMUNITY A ss OCIATION LEA dE rs Lisa Alexander CAI National Jerri Allyn CAI National Coco Clayman-Cook Linda Healey, CCA m ®, PCA m ® Laura Crescentini Jamie Hackwith CCA m ®, C mCA®, A m S®, PCA m ® Phyllis Kramer Bruce Hobbs Nancy Taylor CAI National Community Association Homeowners And Board Members! CAI’s educational workshop, The Essentials of Community Association Volunteer Leadership, provides the perfect opportunity for board members and homeowners living in community associations to learn essential, relevant, and timely information that an help you lead your communities to harmony and prosperity. COuRse TOPi C s i nCLude: ● Maintenance ● Rules ● Finance ● Reserve Funds ● Meetings You’ll leave the eight-hour Saturday workshop with new ideas, solutions to problems, handouts for future reference, and the knowledge that there are resources and people to help you with your leadership responsibilities. 2015 dATes September 26 – Torrance November 7 – Marina del Rey The eSS e NTIA l S o F communityassociation volunteer leadership Approved by the Department of Real e state as a proper use of association funds. Visit www.cai-glac.org for details and registration

J erson Barcelon, CCAM® Regatta Seaside HOA Brian Barr Shoreham Towers HOA Omar Bayter Village Northridge HOA Leonardo Beard, CMCA®, AMs® 100 S. Doheny Condo Assn. Jennifer Brunston, CCAM® Action Property management doug BarbaraByrdCarter, CCAM® Sierra Towers HOA Adriana Cortes, CMCA® Property Professionals,managementLLCAAmC Tammy Gamblin, CMCA® Ross morgan & Company, Inc., AA mC Jeff Hayward Associa-PC m wendy Heffernan, CMCA®, AMs® Property Professionals,managementLLCAAmC Carmel Hehr Care Property management California, LLC Audrey Herman, CMCA® Ross morgan & Company, Inc., AA mC JoAnn Jelin, CMCA® Property management Solutions Bill Johnson Trade Winds 53433 HOA Mia Kim Gold Coast Property Pros Lorna Leviste, CCAM®, PCAM® Promenade West HOA Erica Llanos Ross morgan & Company, Inc., AA mC scott Long, CMCA® e ncore e nterprises, Inc. Edgar JonathanMelendezMitchell Bel-Air Chalet HOA dan Nakari, CCAM®, CMCA®, AMs®, PCAM® Century Park Place HOA Ann Parhms, CMCA®, AMs® Joanne Peña, CMCA®, AMs®, PCAM® Horizon management Company Alexandria Pollock, CCAM®, CMCA®, AMs®, PCAM® marina City Club Matthew quinn, CMCA® Seabreeze management Company, AA mC darcella reeves Briarwood HOA #2, Inc. Alex roman, CMCA®, AMs® Los Feliz Towers HOA Marcie schell, CCAM®, CMCA®, AMs® Remington Plaza HOA robert sides, CCAM®, PCAM® Regatta Seaside HOA Jill Van Zeebroeck, PCAM® malibu management Services, LLC Ida worth, CMCA®, AMs® Ross morgan & Company, Inc., AA mC Nancy Yamaoka Valley Association management, Inc. Cindy Yan Appleby Property management reina Zuckerman, CCAM®, AMs® Ross morgan & Company, Inc., AA mC COMMUNITY A ss OCIATION LEA dE rs Deborah Dahan Teresa JaniceRichardCharlesVirginiaHamesKempLovemanReeceYates TO rENE w ING MEMBErs! Our THanks As OF JUNE 30, 2015

CAI-Greater Los Angeles Chapter July/August 2015 | www.cai-glac.org 31 BU s INE ss P r OFE ss IONAL s Accurate Termite & Pest Control Allstate Landscape Services, Inc. American Heritage Landscape Aqua Creations Bay Alarm Company Beaumont Gitlin Tashjian Best Alliance Foreclosure & Lien Services BRS Roofing, Inc. California CornerstoneWatersPreferred Insurance DataServicesSystems Services David e . Lazarus, CPA Fenceworks, Inc. Fireplace Cleaning & Venting Solutions by The Chimney Sweeper GibbsGetDocsNow.comGidenLocher Turner Senet & Wittbrodt LLP Ian H. Graham Insurance Law Offices of michael A. Hearn mission Association Financial management, Inc. Nu Air Services, Inc. Poindexter and Company, CPA Pacific Western Bank Park West Landscape management Payne Pest management, Inc. Reconstruction e xperts, Inc. SKY StreamlinePaintingBuilding Corporation The Judge Law Firm U.S. UnifiedBankProtective Services, Inc. COMMUNITY A ss OCIATION s 4277 N. Coldwater Canyon HOA Bel Air Crest master HOA Briarwood HOA #2, Inc. Bridgeport COA Century Woods COA Hacienda HOA Harbor Gate Nine-FourteenHOALincoln Blvd. HOA Park Crest HOA Playa Pacific HOA Royal Palms Association Rustic Glen WellworthSummerWindHOAHOATownhomes HOA West Ocean Association Woodley Village HOA COMMUNITY MANAGEMENT COMPANIE s Action Property management, Inc. Beven & Brock Cardinal Property management, AA mC, AC mF

COMMUNITY MANAGE rs rita Augustine edgewater Towers HOA

LBJenkinsGoldCTCoastmanagement.netPropmanagement,Inc.CoastPropertyProsPropertiesmanagementCompany,Inc.PropertymanagementLordonmanagementSFValleymanagement,Inc.TandemPropertymanagement,adiv.ofLyonsWestcomPropertyServices,Inc. Cecil Barber, CMCA® Ross morgan & Company, Inc., AA mC

16 Westside Luncheon Program for HOA Boards and managers –11:30 a.m. DoubleTree by Hilton Westside, 6161 W. Centinela Blvd., Culver City, CA 90230

18 Chapter Board of Directors meeting – 8:30 a.m. Chapter Office, Glendale 26 e ssentials of Community Leadership Workshop – 8:15 a.m. SummerWind HOA, 2800 Plaza Del Amo, Torrance, CA 90803

managers Only Breakfast Workshop – 8:00 a.m. The Wilshire, 10580 Wilshire Blvd., Los Angeles, CA 90024

19 SF Valley Luncheon Program for HOA Boards and managers –11:30 a.m. Warner Center Marriott, 21850 Oxnard Street, Woodland Hills, CA 91367

Long Beach educational Program for HOA Boards – 6:00 p.m. Renaissance Long Beach Hotel, 111 E. Ocean Blvd., Long Beach, CA 90802

16 CAI State Legal Forum Hilton Long Beach Hotel, 701 West Ocean Blvd., Long Beach, CA 90831

30 Chapter Board of Directors meeting – 8:30 a.m. Chapter Office, Glendale

20 Chapter Board of Directors meeting – 8:30 a.m. Chapter Office, Glendale

28 Valencia educational Breakfast for HOA Boards and managers –8:30 a.m. Hyatt Regency, 24500 Town Center Drive, Valencia, CA 91355

32 www.cai-glac.org | July/August 2015 CAI-Greater Los Angeles Chapter 2015 CALENd A r OF EVENT s 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. AUGU s T 6-8 m -100 P mDP Course Sheraton Gateway Los Angeles Hotel, 6101 West Century Blvd., Los Angeles, CA 90045 11 managers Only Breakfast Workshop – 8:00 a.m. The Californian on Wilshire, 10800 Wilshire Blvd., Los Angeles, CA 90024 15 “Sipping by the Sea” Wine Night – 5:00 p.m. Aquarium of the Pacific, 100 Aquarium Way, Long Beach, CA 90802

21 Chapter Board of Directors meeting – 8:30 a.m. Chapter Office, Glendale s

San Gabriel Valley Homeowners Association marketplace –5:30 p.m. Embassy Suites, 800 N. Central Ave., Glendale 91203 07 e ssentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

18 Westside Luncheon Program for HOA Boards and managers –11:30 a.m. DoubleTree by Hilton Westside, 6161 W. Centinela Blvd., Culver City, CA 90230

EPTEMBEr15

14 Casino Night – 6:00 p.m. Los Angeles Athletic Club, 431 W. 7th St., Los Angeles, CA 90014

NOVEMBEr04

10 Westside Program – 7:00 p.m. Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

OCTOBEr06

aDverTisers i n Dex 5 ALLBRIGHT 1-800-PAINTING 34 Animal & Insect Pest management Inc. 25 Association Reserves, Inc. 29 Beaumont Gitlin Tashjian 27 CBCI Construction, Inc. 15 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 26 Ferris Painting, Inc. 11 Law Offices of michael A. Hearn 29 mutual of Omaha Bank/ CondoCerts 32 Poindexter & Company, CPAs 18 Pacific Utility Audit 26 Popular Association Banking 11 Preferred Commercial Painting, Inc. 25 R.W. Stein Painting, Inc. 18 Reserve Studies Inc. 13 Sandra macdonald Insurance 19 Select Painting & Construction 14 Sky Painting 7 SwedelsonGottlieb 24 Union Bank HOA Services 31 Witkin & Neal, Inc. 9 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Wednesday, November 4, 2015 Embassy Suites 800 N. Central Avenue • Glendale, CA 91203 Fe Aturi NG % Meet & Greet HOA Service Providers dedicated to our industry % Free Legal Advice from a panel of experts % Opportunity to Win $100 Cash during Meet & Greet (must be present to win) % Raffle Prizes SC h E du LE 5:30 p.m. Meet & Greet Service Providers to talk about present & future projects. Enjoy complimentary hors d’oeuvres. 7:00 Educationalp.m. Presentation Panel of legal experts will present new developments in the law and answer questions. Ad M i SS ioN & SelF PArki NG Complimentary for HOA Board Members and Managers *Spouses and Guests $10 Per Person Reservations Required Please register by November 3 PhoNe: 818-500-8636 ONLiNE : www.CAi- Gl AC .orG Community Associations institute Greater los Angeles Chapter Presents Email your legal questions for the panel to joan@cai-glac.org for chances to win a Special Prize!

CaI-GL aC 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Change Service Requested PRSRt StD U.S. PoStage PAID San BeRnaRDino, Ca PeRmit #1 order your 2015 Condominium Bluebook today! Price: $26.00 per copy, tax and shipping included. order copies online at: www.cai-glac.org GET RID OF TODAY!YOURPesky Pests GET RID OF YOUR Peoviding SolutionsProviding Solutions... TODAY!Pesky Pests INSECTS SpidersWaspsBeesAnts RODENTS GroundMiceGophers&RatsSquirrels TRAPPING OpossumsRaccoonsCoyotesSkunks SPECIALTY RabbitsBirdsBats Get Your FREE Ebook! What to Know Before You Get Stung! www.myaipm.com/beesting Licenses: SPCB/ PR 5460 | DPR/ No. 33431 | OPR 11559 | PCA 74409 Questions? happytohelp@myaipm.com www.myaipm.com