Focus Magazine - July/August 2015

Focus

July/August 2015

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

Save the Date:

Casino Night & Awards Gala November 14

• Curbing • Regulating • Insurance Concerns

Short-Term Rental Challenges

Community Associations Institute Greater Los Angeles Chapter

Presents

Current Sponsors James Bond

Diamonds Are Forever Casino Night & Awards Gala

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 Raffle

ALLBRIGHT 1-800-PAINTING Skyfall Souvenir Photos

Pacific Western Bank 007 Entertainment

Saturday, November 14, 2015 Los Angeles Athletic Club 431 W. 7th Street Los Angeles, CA 90014

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

6:00 p.m.

Cocktails

7:00 p.m.

Dinner & Awards

CENTERPIECES

8:00 p.m.

Gaming & Dancing

On Time Building Maintenance, Inc.

Raffle

NOT FOR YOUR EYES ONLY SWEET SHOPPE

10:30 p.m. $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

Go to www.cai-glac.org to register

Allegra Professional Group, LLC

FRESHCO Painters, Inc.

2015 BOARD OF DIRECTORS Officers Katy Krupp, President Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 Lisa Tashjian, Esq., President Elect Beaumont Gitlin Tashjian, 866-788-9998 Michael Lewis, CCAM®, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012 Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Meigan Everett, PCAM®, Treasurer Gold Coast Property Pros, 424-238-2333 Matt D. Ober, Esq., Past President Richardson Harman Ober, PC, 626-449-5577 DIRECTORS Greg Borzilleri PCW Contracting Services, 949-285-7802 Donald Campbell, CCAM®, CMCA®, AMS®, PCAM® Baldwin Real Estate Management, 626-821-5204 Pamella De Armas SAX Insurance Agency, 310-740-4274 Linda Healey, CCAM®, PCAM® The Californian on Wilshire, 310-234-5905 Dick Pruess Castlegate HOA, 626-584-0000 Lynn Ruger Warner Club Villas HOA, 818-703-7090

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2015 COMMITTEE CHAIRS Awards Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP COMMUNITY OUTREACH Meigan Everett, CMCA®, PCAM®, Gold Coast Property Pros EDUCATION Anda Bewhite, MBA, CCAM®, CMCA®, AMS®, PCAM®, All West Management FINANCE Jolen Zeroski, CMCA®, Union Bank HOA Services GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC Ryan Dudasik, EmpireWorks Reconstruction & Painting LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE Alan Denison, Stay Green Inc.

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 News From Sacramento 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 PCAM® Pride 16 Highlights from Ultimate Tailgate Party CAI Golf Tournament 22 Summer Fun Homeowners Association Marketplace Recap

FYI 31 32 32 32

CAI-GLAC Membership News 2015 Upcoming Events Advertisers Index Advertising Information

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

PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC

Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Ruth Moffitt, CMCA®, AMS®, PCAM®, Valencia Management Group AAMC® Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Assn.

This publication seeks to provide CAI-GLAC’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. By submission of editorial content to CAI-GLAC, the author acknowledges and agrees to abide by the editorial and policy guidelines. Copyright © 2015.

SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, PCAM®, Baldwin Real Estate Management Angel Fuerte, FRESHCO Painters Inc.

All rights reserved. Reproduction in whole or in part without written permission is prohibited. CAI is a national, not-for-profit association created in 1973 to educate and represent America’s residential community association industry.

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

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

CAI-Greater Los Angeles Chapter

Village Court Del Amo Homeowners Association Torrance, CA Photo courtesy of Scott Management Company

Save the Date: Casino Night & Awards Gala November 14

PROGRAMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire Brian Moreno, Esq., SwedelsonGottlieb

FOCUS Magazine Matthew Gardner, Esq., Richardson Harman Ober PC

On the Cover

Stay Connected:

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

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

1

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.

R

elaxation 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

Note

from the Editor’s Desk

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.

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.

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.

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.

2

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

Warm regards, — Matthew Gardner, Esq. Editor

2015 CAI-GLAC Super Sponsors Platinum

ALLBRIGHT 1-800-PAINTING A-One Construction Accurate Termite & 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, Inc. Guard-Systems, Inc. Hi Tech Painting & 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 Gold Beaumont Gitlin Tashjian Brickman/ValleyCrest Critter Busters, Inc. General Pavement Management, 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 Mutual of Omaha Bank/CondoCerts PCW Contracting Services Professional Services Construction, Inc. Reserve Studies Incorporated SAX Insurance Agency Sherwin-Williams Paint SwedelsonGottlieb Universal Protection Service Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Bronze American Heritage Landscape ASR Construction CBI-Collins Builders, Inc. Design Build Associates FRESHCO Painters, Inc. Poindexter and Company, CPAs Seacoast Commerce Bank Silldorf & Levine, LLP Stonemark Construction Management 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.

CAI-Greater Los Angeles Chapter

Message

FROM THE President

I

In Order to Form a More Perfect Union...

t has been an exciting first half of the year. 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. Who do we go to for help? What circumstances qualify for executive decisions? When is it necessary to take action? Where do we find qualified companies and individuals we can trust?

And, most important of all, Why are rules necessary? In other words, why can’t we all just get along?

Sometimes the circumstances 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 CAI-Greater Los Angeles Chapter

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

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

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.

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).

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!

— Katy Krupp 2015 Chapter President

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

3

Curbing Short-Term Rentals (Or It’s Finally Working Against Us)

A

s 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.

>>> By Phil Silver

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 community.

This past year we had three owners attempt to engage in shortterm vacation rentals in various capacities. One was listing Beyond noise issues there is a whole range of other activities that her unit only a couple weeks out of the year during periods require some thought, consideration and awareness so as not to she planned to be away on vacation, one was filling in a few create a nuisance for other residents. For instance, Santa Monica months in between has strict laws extended stays by regarding smoking his parents, and and yet we do one attempted to have residents that >>> By Mike Lewis, CCAM®, CMCA®, AMS®, PCAM® convert a long-term smoke. Residents It doesn’t make any sense. I’ve spent 12 years of my life trying to refine the rental unit into a need to know services we provide to our clients. In turn, my goal is to help the industry develop short-term vacation where they can and as a whole both via my interaction with clients and other industry professionals—in rental unit with the cannot smoke, and almost all cases, reliant on the development of new technologies. Although our goal of generating they need to learn 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. as much income how not to create a Whatever makes our clients happy, within reason, is a common tagline at our office. as possible. None nuisance for those But then you get the call. “Mike, we have a problem.”— Not too distant from of these owners that choose not to “Houston, we have a problem” from our standpoint. And so begins the day that sought permission smoke. Residents technology works against you and your professional aspirations. Airbnb has found from the HOA to need to know its way into our community. This isn’t a timeshare community, and it’s not steps from rent in this fashion, how to properly the beach; real people with real jobs actually live here. They aren’t on vacation, and but we became handle their trash, most of them will be here one, three and five-plus years from now. aware of it when we recycling, compost Our concern? What we once thought were short-term rentals (less than 365 days), witnessed strangers materials, etc. have turned into even shorter-term rentals (7 days and less). All thanks to a new coming and going Finally, residents 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 from the units and need to know the home), it’s all good. This company was not built to bring down community subsequently found rules regarding the associations. Yet, like many for-profit and politically-oriented ventures, it hits us, the owners’ listings use of our common and now we have to deal with it, or find a way to make it work for us. If not, we online. areas such as the have to fight it. And, that is exactly what Phil Silver did at one of our communities pool and courtyard, in Santa Monica.

■ From the start, the laundry room the HOA was not and the gym. keen on the notion of a constant stream of strangers coming Our board goes to great lengths to provide information and and going, given that we value the otherwise quiet, tranquil orientation for our new residents, owners, as well as renters, to atmosphere in our intimate courtyard complex. facilitate a smooth transition into our community.

Putting aside short-term renters for a moment, from past Now, against this backdrop, imagine a constant stream of experience we knew that even turnover of long-term residents vacationers, some single, some couples, some whole families could be potentially disruptive to our community. In a small, with children, arriving from all over the country and the compact building like ours, new residents often don’t realize world, excited to be in Santa Monica and looking forward to just how much their behavior impacts other residents. First fun and relaxation at the beach. There’s no doubt we live in a and foremost, noise in the courtyard carries and can be heard desirable location—our property values and monthly rental

It’s Finally Working Against Us

4

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

CAI-Greater Los Angeles Chapter

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

Friendly & Affordable!

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 Continued on page 6

Free Detailed Proposals!

#paintinghappiness

Lic.# 665826 | Fully Insured | Uniformed

AALLBRIGHT.COM 1-800-410-5444 CAI-Greater Los Angeles Chapter

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

5

Curbing Short-Term Rentals Continued from page 5

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.”

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.

Overview of the Santa Monica Home-Sharing Ordinance

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.

This Home-Sharing Ordinance provides for regulations of two types of Short-Term Rentals: • “Home-Sharing” – 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.

Frequently Asked Questions 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.

— Courtesy of City of Santa Monica Planning & Community Development When our association decided to take action against the three owners engaged up the short-term vacation rental activity and once again rent in short-term vacation rentals we started by making them her unit to long-term residents on a minimum one-year lease. aware of the laws prohibiting such activity in our residentialzoned neighborhood. Two of the three immediately took down If you live in a city with clear laws against home sharing, then their listings and ceased all short-term rental activity. The city enforcement is an option, but it takes time. Enforcement owner most deeply engaged in this activity, however, tried to staff are dealing with a lot of these complaints these days, and continue renting her unit to vacationers under the guise that we will still have to participate in the enforcement effort by her paying guests were her “friends.” It was for that reason we closely monitoring and reporting ongoing rental activity to filed a formal complaint with the city code enforcement office. the enforcement authorities.

The investigation took about two months during which the Based on our experience, the most effective approach is for an code officer had numerous conversations with the owner. He association to take strong, proactive, preventive measures to first issued her a warning, but when she continued renting via prohibit home-sharing rentals. If you have a consensus among home-sharing sites, he finally issued her a citation with fine of your board members and your community-at-large on this $575. She immediately filed an appeal, but the citation and the issue, then it makes sense to enact a few key restrictions that will fine were ultimately upheld. Only then did she decide to give

6

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

CAI-Greater Los Angeles Chapter

essentially render home sharing unpractical for your owners.

First, via either your rules or regulations or perhaps even your CC&Rs, establish a minimum rental term. In most instances a 30-day minimum will suffice. It will prevent most causal home-sharing There are new rules in Santa activities because on Short-Term Rentals Did You Monica few people are and Home-Sharing.

Know gone for such a long period and it Learn more at is hard for them www.smgov.net/homeshare to find renters for such a long stay. In our case a 30-day minimum would mirror the city’s regulations. We may actually take it further and enact a three- or six-month minimum term. Enacting such minimums does take some effort to properly implement, but it is worth the investment to prevent future problems.

In conjunction with minimum rental terms, we require that all residents, and especially landlords, report who is occupying their unit at all times and back up this obligation with the power to fine any owners who do not comply with the reporting requirements. We realize that people do have actual friends visit and use their units from time-to-time, and that is fine as long as the HOA has contact information in the event of an emergency and the legitimate guests have been properly briefed by their hosts regarding community rules and obligations. As actual

friends, they will have an obligation not to cause disturbances given their ongoing relationship with their hosts.

By placing this reporting responsibility squarely on the shoulders of the hosts, it will reinforce their sense of duty to the community to ensure their guests behave properly. It will also make it very hard for them to sneak-in paying short-term renters because each time they report a guest they will be attesting that their guest is their personal friend. We suggest creating a form for this reporting function since people tend not to feel comfortable perjuring themselves in writing, given the potential legal ramifications for doing so.

Home sharing, while a novel idea, is something that our HOA chooses not to allow at our building. As various news stories from New York, San Francisco, Paris, and many other destination cities indicate, there are many impacts arising out of home sharing that have yet to be resolved. It will be interesting to see how these cities and communities deal with such issues in the coming years.

Phil Silver is the treasurer of 2311 Fourth Street HOA in Santa Monica.

Mike Lewis, CCAM®, CMCA®, AMS®, PCAM®, is the president and CEO of Concept Seven, LLC, a full service management company in Torrance. He is also Vice President of the CAI-GLAC Board of Directors. Mike can be reached at mike@c7properties.com.

WE REPRESENT COMMUNITY ASSOCIATIONS

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

Ventura County 805.650.7899

www.lawforhoas.com www.hoalawblog.com

CAI-Greater Los Angeles Chapter

Orange County 949.476.3789

Los Angeles 310.207.2207 California 800.372.2207

San Francisco 415.762.1889 July/August 2015 | www.cai-glac.org

7

To Airbnb? ➤➤➤ By Lori Lacher, CCAM

To Airbnb or not to Airbnb? 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 documents.

Liability is another 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

8

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

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.

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

CAI-Greater Los Angeles Chapter

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) 310.478.6363 www.wrslawyers.com

CAI-Greater Los Angeles Chapter

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

9

Short-Term Rental Challenges

■■■ By Neda Nehouray, CMCA®, AMS®

We live in a day and age where new technology, quick turnaround and innovative ideas are flying by us all the time. With these technological advancements come some good, and some not-so-good issues. One of our more recent challenges is in the exchange or the listing of your home online for short periods. One site that has recently picked up quite a bit is Airbnb. com.

I

first 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 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 the

10

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

CAI-Greater Los Angeles Chapter

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.

Overall, 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.

Neda Nehouray , CMCA, AMS, is the owner of HOA Organizers, Inc., a full-service management company in Lake Balboa.

She can be reached at info@hoaorganizers.com. ad-(W7.5xH4.75).pdf 1 11/7/2014 9:28:55 AM

Superior Representation C

M

Y

Free Initial Investigation

CM

MY

CY

CMY

K

Contact us for an on-site inspection, meeting and multi-phase investigation concerning a potential construction defect at no cost.

Contact Us T 949.341.0030 michaelhearnlaw.com

Stucco Cracks • Cracked Concrete Interior Wall Cracking • Water Leaks

CAI-Greater Los Angeles Chapter

Since 1979, the firm has represented home owners associations, single family residences, commercial, industrial and property owners affected by construction defects.

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

11

Regulate Short-Term Rentals with a While use of residences a s r ental

Well-Reasoned

Amendment or Rule

property has always been an issue facing common interest developments, the advent of online vacation rental services such as Airbnb (www.airbnb.com) and VRBO (www.vrbo.com) have brought the issue to the forefront for homeowners associations and local municipalities alike. Short-term

vacation rentals can have a significant impact on local communities in terms of traffic, noise and increased use of typical HOA services. The popularity of short-term vacation rentals is particularly noticeable in Southern California with its ready access to beaches, amusement parks and other entertainment.

■ ■ ■ By Brandon C. Fernald, Esq.

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.

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.

As an example, 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.”

12

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

That said, renting rooms in a home to multiple tenants may be precluded by general residential dwelling restrictions.

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.

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.

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

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 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.

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.

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 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.

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.

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

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

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.

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.

Brandon C. Fernald, Esq. 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.

Sandra Macdonald Insurance Agency License: 0573169 Condominium Associations

Office Buildings

Apartment Buildings

Workers Comp

Shopping Centers

Life Insurance

Builders Risk

Earthquake

(800) 237-2669 17141 Ventura Blvd. #202 Encino, CA 91316 smacdonald@farmersagent.com http://farmersagent.com/smacdonald

CAI-Greater Los Angeles Chapter

Risk Management Solutions…

Professionally it’s what we know; Personally it’s what we do!

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

13

August 15, 2015 5:00 – 9:00 p.m.

The Aquarium of the Pacific 100 Aquarium Way Long Beach, CA 90802 $75 per person Business Casual Attire Sign up now at CAI-GLAC.org

Outdoor Rooftop Wine Tasting & Light Meal

Best of Class

Horizon Management Company Cordon Bleu

Pacific Western Bank Sommelier

Steven G. Segal Insurance Agency, Inc. SOUVENIR WINE GLASSES

Nu Air Services, Inc. PARKING

ALLBRIGHT 1-800-PAINTING Epicurean

A-One Construction Wine Steward

Fenton Grant Mayfield Kaneda & Litt, LLP Law Offices of Laura J. Snoke Law Offices of Michael A. Hearn Sandra Macdonald Insurance CENTERPIECES

On Time Building Maintenance, Inc. Dessert

Three Phase Electric

Sharing our experience with community

14

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

CAI-Greater Los Angeles Chapter

PCAM PRIDE ®

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.

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.

Laurie Mark, CMCA®, AMS®, PCAM® Valencia Management Group 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.

The Professional Community Association Manager (PCAM®) designation is the pinnacle of professional achievement for managers with advanced-level skills and experience. To earn the PCAM® designation, managers must have five years of community association management experience and complete more than 100 hours of coursework, including a challenging case study analysis of a community association. In addition, PCAM designees must fulfill continuing education and service requirements and adhere to a code of ethics.

STEVEN G. SEGAL INSURANCE AGENCY, INC. Over 37 years of experience specializing in: Condominium Associations • Planned Unit Developments • Hard to Place Associations Earthquake Coverage • High Rise Condominiums • Workers Compensation

Toll Free: 800-345-8866 • Toll Free Fax: 800-262-0973 Email: steve@segalins.com • www.farmersagent.com/ssegal

License No. 0E24660

CAI-Greater Los Angeles Chapter

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

15

Low Net Foursome

Low Gross Foursome

Steve Tinnelly Anda Bewhite Matt Plaxton Robert Gavela

Joe Bolich Drew Schlegel Katy Krupp Chuck Fenton (not pictured) FENTON GRANT MAYFIELD KANEDA & LITT LLP FOURSOME

16

Reverse Raffle Top Ten

Reverse Raffle Winner Linda Klem

Putting Contest Winner

Honesty Award

Closest to the Line #1 (Women’s)

Closest to the Pin #4 (Women’s)

Closest to the Pin #4 (Men’s)

Aaron Bovberg with Jill Nathman

Jennifer Cleveland with Teresa Agnew & Ryan Dudasik

Chris Albrecht with John Walters-Clark

Geoff Lloyd with John Walters-Clark

CONTEST SPONSORED BY MCKENZIE RHODY, LLP

Howard Greenberg Tonya Guyot Matt Perry Jeff Stephens

CONTEST SPONSORED BY A.ALLBRIGHT 800-(PAINTING)

CONTEST SPONSORED BY NPG-NELSON PAVING

CONTEST SPONSORED BY NPG-NELSON PAVING

Closest to the Pin #9 (Women’s)

Closest to the Pin #9 (Men’s)

Closest to the Pin #11 (Women’s)

Closest to the Pin #16 (Women’s)

Closest to the Pin #16 (Men’s)

Katy Krupp with Ernie Mendoza

Marc Roest with Ernie Mendoza

Melissa Weissman with Teresa Agnew

Bonnie Stoeppelman

Al Masters with Teresa Agnew

CONTEST SPONSORED BY GUARD-SYSTEMS INC.

CONTEST SPONSORED BY GUARD-SYSTEMS INC.

CONTEST SPONSORED BY HI TECH PAINTING & DECORATING

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

CONTEST SPONSORED BY SILLDORF & LEVINE, LLP

CONTEST SPONSORED BY SILLDORF & LEVINE, LLP

CAI-Greater Los Angeles Chapter

Great Day for Golf!

Thanks To Our Sponsors Title

GOLF CART TOWELS

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.

NPG-Nelson Paving

ASR Construction

19th HOLE

Universal Protection Service

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.).

Securitas Security Services USA, Inc.

PPG Paints

Tailgate Contest Holes

Souvenir Photos Championship

Pacific Western Bank Preferred Commercial Painting Universal Protection Service Putting Contest

McKenzie Rhody, LLP Beverage Carts

Behr Paint Corporation Benjamin Moore & Co. Bloody Marys

Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley BREAKFAST

Sherwin-Williams Paint CLUB PRO

Schwag Bags

Colarossi Painting, Construction & Rain Gutters

ALLBRIGHT 1-800-PAINTING Guard-Systems, Inc. Hi Tech Painting & Decorating NPG-Nelson Paving Silldorf & Levine, LLP Tailgate Holes

A-One Construction American Heritage Landscape American Technologies, Inc. BELFOR Property Restoration Burdman & Ward Law Office Dunn-Edwards Paints HAR-BRO, Inc. MeterNet Sub-Metering & Billing Solutions Platinum Security, Inc. Reconstruction Experts, Inc. Tinnelly Law Group Union Bank HOA Services Vista Paint Corporation WET TOWELS

Paint Squad, LLC Best Decorated Tee NPG-Nelson Paving

Longest Drive Winner (Women’s) Mic Montalvo

Tee Up!

Fore!

Winners Not Pictured Longest Drive (Men’s) – Greg Borzilleri Closest to the Line #1 (Men’s) – John Burton CONTEST SPONSORED BY A.ALLBRIGHT 800-(PAINTING) Closest to the Pin #11 (Men’s) – Adriann Carroll CONTEST SPONSORED BY HI TECH PAINTING & DECORATING

CAI-Greater Los Angeles Chapter

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

17

Hanging Out With Friends...

What We Can Do For You: •

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

•

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 future.

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

18

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

CAI-Greater Los Angeles Chapter

At The Ultimate Tailgate Party!

CAI-Greater Los Angeles Chapter

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

19

news

landlords. CAI is objecting to various provisions in the bill.

from sacramento

Here is the latest news on legislation from Skip Daum

A

ssembly Bill 349 prohibits associations from preventing owners who wish to install artificial turf. It passed 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.

Senate 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

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.

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.

OUR THANKS TO 2015 CLAC CONTRIBUTORS January 1 – June 30

Goal: $24,645

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. 42% 914 Lincoln Blvd. HOA of goal as ALI Condominiums OA of 6/30/15 Artesia HOA Avis HOA Berkeley Street HOA Current Contribution Berkeley Townhouse HOA Bodger Park Condo HOA Total: 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

$10,449

20

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

Continental Court HOA Coro Community Management & Consulting Culver Centrale HOA Eight on Twenty HOA El Centro, Inc. Florwood Estates HOA Forest Park Village HOA Galaxy HOA Gorham Park HOA Inc. Harbor Knolls HOA Hayworth OA Heritage Townhomes OA Hermosa Surf Condos Hillcrest Meadows HOA Hillcrest Rolling Hills HOA Hopi HOA Idaho Villas 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 OA Rancho-Glen HOA Ridgeley Vista Chateau HOA Roxbury Park COA S. Manhattan Place 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. 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

CAI-Greater Los Angeles Chapter

Oct. 16, 2015 | Long Beach, CA

Oct. 16, 2015 | Long Beach, CA

CAI

Legal

Forum CALIFORNIA COMMUNITIES

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

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

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

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

CAI Legal Forum: California Communities CURRENT SPONSORS EVENT

Berding | Weil Richardson Harman Ober PC NAME BADGE

Antis Roofing & Waterproofing, Inc. TOTE BAG

Brickman/ValleyCrest Cardinal Property Management AAMC PARKING

Association Lien Services COCKTAIL RECEPTION

Fiore, Racobs & Powers LaBarre/Oksnee Insurance Agency Inc. Securitas Security Services USA, Inc. NETWORKING BREAKFAST

OCBS, Inc. Sunwest Bank EVENT BANNER APP

Associa-PCM

EXHIBITORS Accurate Termite & Pest Control Adams Kessler PLC All Counties Fence and Supply Alliance Environmental Group, Inc. AMS Paving, Inc. Animal Pest Management Services,Inc. Antis Roofing & Waterproofing, Inc. Association Reserves, Inc. Beaumont Gitlin Tashjian Benjamin Moore & Co. Brickman/ValleyCrest Burdman & Ward California Coastal Patrol Chaix Law CommerceWest Bank., N.A. Design Build Associates Elliot Katzovitz Insurance Agency, Inc. EmpireWorks Reconstruction & Painting

Epsten Grinnell & Howell, APC The EV Structure Co. Fenton Grant Mayfield Kaneda & Litt, LLP FHA Review Fiore, Racobs & Powers LaBarre/Oksnee Insurance 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.

Location Hilton Long Beach Hotel • (562) 753-2107 701 West Ocean Blvd., Long Beach, CA 90831-3102

CAI-Greater Los Angeles Chapter

Event Schedule

Room Rates 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.

Registration Cost 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

ProTec Building Services Reconstruction Experts, Inc. Roseman & Associates, APC Roy Palacios Insurance Agency, Inc. S.B.S. Lien Services Securitas Security Services USA, Inc. SwedelsonGottlieb Three Phase Electric Timothy Cline Insurance 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.

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

State of the Industry

9:15 – 10:00 a.m.

Trade show

10:15 – 11:15 a.m.

Concurrent Sessions

11:30 a.m. – 12:30 p.m.

Concurrent Sessions

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

Concurrent Sessions

3:30 – 4:30 p.m.

Concurrent Sessions

4:30 – 6:00 p.m.

Networking Reception

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

21

CAI-Greater Los Angeles Chapter Presents

Homeowners Association Marketplace Thursday, June 4, 2015

M

Hilton Woodland Hills

ore 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.

We 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.).

22

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

CAI-Greater Los Angeles Chapter

Thanks To Our Sponsors & Exhibitors EVENT SPONSORS

A-One Construction, Inc. Associa-PCM Critter Busters, Inc. General Pavement Management, Inc. Rose Paving Company, Inc. Sky Painting GRAND PRIZE SPONSOR

FirstService Residential SHOW BAGS

Vista Paint Corporation Exhibitors

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 Construction Association Reserves Inc. Beaumont Gitlin Tashjian Behr Paint Corporation Benjamin Moore & Co. Brian Berce Insurance Agency, Inc. Brickman/ValleyCrest California Waters CommerceWest Bank Cool Planet CertaPro Painters Ltd. Critter Busters, Inc. Coinmach Corporation Debra Sheppard & Associates, APLC Design Build Associates EmpireWorks Reconstruction & Painting Ferris Painting, Inc. General Pavement Management, Inc. Golden West Security Guard-Systems, Inc. MeterNet 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

CAI-Greater Los Angeles Chapter

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

23

▶▶▶ By Miranda Legaspi The trend of using Airbnb & VRBO is unfortunately not going to go away anytime soon. What is a homeowner to do when you have strangers come

Security

Tips Concerning Short-Term Rentals

and go through your community?

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.

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.”

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

MEET A BANK WITH 20 YEARS IN THE NEIGHBORHOOD. 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 more.

HOAbankers.com Smartstreet.com

©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.

24

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

CAI-Greater Los Angeles Chapter

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.

Do You Need Reserve Budget and Disclosure Solutions?

Hire the experts at...

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.

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

• Save Money with our 3-year plan • Access your Reserve Study Online • See a Video of your results • Free preparation of Disclosure Form 1365.2.5

Call or go to our website for more information, samples or Free bid

800.733.1365

www.reservestudy.com

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

25

S

hort-Term Rentals present Insurance Concerns for the Association and Unit Owner Alike / The sun, the sea, the Mouse, West Hollywood and Hollywood! These are just a few of the many alluring attributes which makes Southern California an appealing destination for out-of-town guests. If you’re a condominium unit owner in a desirable location, you may have fantasized of generating revenue by renting out your spare room or even your whole condo using Websites like Airbnb, HomeAway or VRBO Vacation Rental. ■ By Tim Cline, CIRMS & Jose H. Glez, CIRMS

And this may indeed help you fulfill your financial goals and satisfy the travel dreams of some perfect strangers. But often overlooked are the insurance ramifications for you and for you condominium association.

won’t bother suing the short-term tenant (who may not even reside in the United States). Instead, they will go after you as the unit owner (regardless of the fact that you have no liability coverage to protect you because of the aforementioned exclusion).

■ Condominium Unit Owner (HO6) Policies have restrictions on allowable business activity conducted by the policyholder. An individual unit owner may have to be careful that the revenue generated by the short-term rentals doesn’t exceed the limits outlined in the policy (sometimes as little as a $1,000 or $2,500 annually) or they may well find that they have no liability coverage should a guest be injured or, if through the guest’s negligence, a loss occurs resulting in damage to properties of others. Even if you have a good relationship with your neighbors, their insurance carrier may nonetheless be unhappy with you after a loss, and they

■ What about the Owner’s property?

What if these overnight guests became intoxicated and vandalize the unit—or leave a candle burning, resulting in a catastrophic fire? Will the HO6’s property coverage respond to the damage to real property and contents—even though you’re effectively operating a business? And even assuming there was coverage for this incident, you could imagine the carrier would waste no time in notifying the owner of their intent to cancel coverage—since you’ve “increased the hazard” by turning your condominium unit into a hotel operation.

DEDICATED

Our 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.

Contact our Southern California Commercial Relationship Officer today!

Larry Hooper, Vice President (714) 864-5171 Toll Free: 800-233-7164 LHooper@bpop.com www.associationbankers.com

©2013 Banco Popular North America. Member FDIC.

26

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

CAI-Greater Los Angeles Chapter

■ Business Owners Policy (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.

■ Airbnbs to the rescue? “Host Protection Coverage” 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.

CAI-Greater Los Angeles Chapter

■ The Association’s Master Policy Rates Can Be Affected 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.

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.

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.

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.

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.

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

27

M

any 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 responsible?

Electricity 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.

The Challenges of Aging HOA Buildings — AND Your Electrical Distribution System

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

■■■ By Todd Ritter C.E.M.

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.

28

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

Various Approaches to Maintenance: ■ Reactive (Fix-on-Fail) Slowly destroys the integrity of your system as failures create chain reaction and weaken other components. This will reduce the system’s useful life.

■ 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.”

■ 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.

■ 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.

■ Utility Costs Without preventive maintenance, the Electrical Distribution System itself can waste 1% to 4% in electricity utility cost, and this happens naturally over CAI-Greater Los Angeles Chapter

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.

Various Approaches to Maintenance ■ Manufacturer’s Recommendations All manufacturers require periodic maintenance on electrical distribution equipment. The advantages of regular maintenance are many: XX Helps with the budgeting process XX Helps your reserve fund by extending the Electrical DistributionSystem’s useful life, allowing more time to save for replacement XX Reduces Liability XX Reduces the occurrence of electrical fires XX Requires you to document your system components and helps with that point the responsibility goes back repairs/replacements to the HOA. In summary, your call to action is to Todd Ritter is the CEO of ensure that your Electrical Distribution EvStructure, an electrical System is operated properly. Your engineering firm that helps utility company is only responsible for HOAs manage their utilities. providing power to the building. From He can be reached at

LOS ANGELES

ORANGE COUNTY

INLAND EMPIRE KERN COUNTY CENTRAL COAST

tritter@EvStructure.com.

A FULL SERVICE COMMUNITY ASSOCIATION LAW FIRM General Legal Counsel Governing Document Amendments Enforcement Legal Opinions Contracts Dispute Resolution

Civil Litigation Enforcement Insurance Bad Faith Construction

pick the right tools for your next project.

With community association lending expertise like ours, you’ll get the job done right.

take that to the bank.

Assessment Collections Judicial Foreclosure

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

Turning Common Interests Into Common Ground 866.788.9998 www.bgtlawyers.com

CAI-Greater Los Angeles Chapter

mutualofomahabank.com Jeffrey A. Beaumont, Esq.

AFN46039_0913

Member FDIC Equal Housing Lender

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

EQUAL HOUSING

LENDER

29

welcome

New CAI-glac Members! as of July 11, 2015

BUSINESS PROFESSIONALS RECRUITER 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 ASSOCIATIONS Doran Gardens HOA Erik Mendez CMCA®, AMS®, PCAM® Encino Gardens HOA CAI National Pacifica Villas HOA CAI National Playa Pacific HOA Martha Olvera, CMCA® Sherman Townhomes Association, Inc. Donyelle La-Key CMCA®, AMS®, PCAM® Tract 2578 COA CAI National Village Green Owners Association CAI National COMMUNITY MANAGEMENT COMPANIES RealManage Serrano Asset Management

CAI National CAI National

COMMUNITY MANAGERS Melissa Bailey Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Benjamin Beckman Michael Huffman Management Professionals, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Michael Black CAI National Marina West Management Tatiana Brunstad Sascha Macias, CMCA®, AMS® FirstService Residential Tanya Carias Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Monica Cooper Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Albert Davoudi CAI National Janet Garcia Sue Nelson, CCAM® Ocean Terrace HOA Norma Gonzalez Russell Hoffman, Valencia Management Group, AAMC CMCA®, AMS®, PCAM® Marcus Hernandez Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Carla Linares Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Marc Loge Nathalie Weinstein Cardinal Management Group Linda Radtke CAI National Friendly Valley Recreational Association Monica Trautman Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® Cari Williams Diane Hilliard Ross Morgan & Company, Inc., AAMC CCAM®, CMCA®, AMS®, PCAM® COMMUNITY ASSOCIATION LEADERS Lisa Alexander CAI National Jerri Allyn CAI National Coco Clayman-Cook Linda Healey, CCAM®, PCAM® Laura Crescentini Jamie Hackwith CCAM®, CMCA®, AMS®, PCAM® Phyllis Kramer Bruce Hobbs Nancy Taylor CAI National

T h e Ess e ntia l s o f

community association volunteer leadership

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 Topics Include: ● 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 Visit www.cai-glac.org for details and registration

30

September 26 – Torrance November 7 – Marina del Rey

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

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

CAI-Greater Los Angeles Chapter

Our Thanks to Renewing Members!

As of June 30, 2015

BUSINESS PROFESSIONALS 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 Waters Cornerstone Preferred Insurance Services Data Systems Services David E. Lazarus, CPA Fenceworks, Inc. Fireplace Cleaning & Venting Solutions by The Chimney Sweeper GetDocsNow.com Gibbs Giden Locher 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 Experts, Inc. SKY Painting Streamline Building Corporation The Judge Law Firm U.S. Bank Unified Protective Services, Inc. COMMUNITY ASSOCIATIONS 4277 N. Coldwater Canyon HOA Bel Air Crest Master HOA Briarwood HOA #2, Inc. Bridgeport COA Century Woods COA Hacienda HOA Harbor Gate HOA Nine-Fourteen Lincoln Blvd. HOA Park Crest HOA Playa Pacific HOA Royal Palms Association Rustic Glen HOA SummerWind HOA Wellworth Townhomes HOA West Ocean Association Woodley Village HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Action Property Management, Inc. Beven & Brock Cardinal Property Management, AAMC, ACMF CoastManagement.net CT Prop Management, Inc. Gold Coast Property Pros Jenkins Properties Management Company, Inc. LB Property Management Lordon Management SF Valley Management, Inc. Tandem Property Management, a div. of Lyons Westcom Property Services, Inc. COMMUNITY MANAGERS Rita Augustine Edgewater Towers HOA Cecil Barber, CMCA® Ross Morgan & Company, Inc., AAMC Jerson 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 Byrd Barbara Carter, CCAM® Sierra Towers HOA Adriana Cortes, CMCA® Property Management Professionals, LLC AAMC Tammy Gamblin, CMCA® Ross Morgan & Company, Inc., AAMC Jeff Hayward Associa-PCM Wendy Heffernan, CMCA®, AMS® Property Management Professionals, LLC AAMC Carmel Hehr Care Property Management California, LLC Audrey Herman, CMCA® Ross Morgan & Company, Inc., AAMC 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., AAMC Scott Long, CMCA® Encore Enterprises, Inc. Edgar Melendez Jonathan Mitchell 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, AAMC 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., AAMC Nancy Yamaoka Valley Association Management, Inc. Cindy Yan Appleby Property Management Reina Zuckerman, CCAM®, AMS® Ross Morgan & Company, Inc., AAMC COMMUNITY ASSOCIATION LEADERS Deborah Dahan Teresa Hames Virginia Kemp Charles Loveman Richard Reece Janice Yates

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

31

Advertisers Index 5 ALLBRIGHT 1-800-PAINTING

2015 CALENDAR OF EVENTS AUGUST 6-8 M-100 PMDP 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

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

Warner Center Marriott, 21850 Oxnard Street, Woodland Hills, CA 91367

34 Animal & Insect Pest Management Inc.

18 Pacific Utility Audit 26 Popular Association Banking

25 Association Reserves, Inc.

11 Preferred Commercial Painting, Inc.

29 Beaumont Gitlin Tashjian

25 R.W. Stein Painting, Inc.

27 CBCI Construction, Inc.

18 Reserve Studies Inc.

15 Farmers Insurance Group – Steven G. Segal Insurance Agency, Inc.

13 Sandra Macdonald Insurance

26 Ferris Painting, Inc. 11 Law Offices of Michael A. Hearn 29 Mutual of Omaha Bank/ CondoCerts 32 Poindexter & Company, CPAs

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

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

Chapter Office, Glendale

SEPTEMBER

Advertising Information Dimensions & Rates:

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

Renaissance Long Beach Hotel, 111 E. Ocean Blvd., Long Beach, CA 90802

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

SummerWind HOA, 2800 Plaza Del Amo, Torrance, CA 90803

OCTOBER 06 Managers Only Breakfast Workshop – 8:00 a.m.

The Wilshire, 10580 Wilshire Blvd., Los Angeles, CA 90024

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

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

Artwork must not exceed the exact dimensions of that size ad.

For more information, call the Chapter office: 818-500-8636.

Ad Size

Ad Dimensions

Members

Non-Members

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 9.75" high (Vertical)

$800

$1,400

Payment: Rates are subject to change without notice. By credit card, check or cash.

Minimum three-insertion contract. Rates subject to change without notice.

Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 818-500-8636.

Hyatt Regency, 24500 Town Center Drive, Valencia, CA 91355

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

Chapter Office, Glendale

NOVEMBER 04 San Gabriel Valley Homeowners Association Marketplace – 5:30 p.m.

Embassy Suites, 800 N. Central Ave., Glendale 91203

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

Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

10 Westside Program – 7:00 p.m.

Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

14 Casino Night – 6:00 p.m.

Los Angeles Athletic Club, 431 W. 7th St., Los Angeles, CA 90014

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

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

Chapter Office, Glendale

32

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

CAI-Greater Los Angeles Chapter

Community Associations institute Greater los Angeles Chapter Presents

Wednesday, November 4, 2015 Embassy Suites

800 N. Central Avenue • Glendale, CA 91203 FeAturiNG

SChEduLE

AdMiSSioN & SelF PArkiNG

% Meet & Greet HOA Service

5:30 p.m.

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

Enjoy complimentary hors d’oeuvres.

Complimentary for HOA Board Members and Managers

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

*Spouses and Guests $10 Per Person

7:00 p.m.

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

Email your legal questions for the panel to joan@cai-glac.org for chances to win a Special Prize!

Reservations Required Please register by November 3 PhoNe: 818-500-8636 ONLiNE: www.CAi-GlAC.orG

CAI-GLAC

PRSRt StD U.S. Postage

PAID

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

San Bernardino, CA Permit #1

Change Service Requested

Order Your 2015 Condominium Bluebook Today!

Price: $26.00 per copy, tax and shipping included.

Order copies online at: www.cai-glac.org.

Providing Solutions...

Peoviding Solutions

GET RID OF YOUR

Pesky Pests

INSECTS

TRAPPING

RODENTS

SPECIALTY

Bees Wasps Ants Spiders

TODAY!

Gophers Mice & Rats Ground Squirrels

Raccoons Coyotes Skunks Opossums Rabbits Birds Bats

Questions? happytohelp@myaipm.com

www.myaipm.com

Get Your FREE Ebook!

What to Know Before You Get Stung!

Go to Our Website and Download Today!

www.myaipm.com/beesting Licenses: SPCB/ PR 5460 | DPR/ No. 33431 | OPR 11559 | PCA 74409