Focus Magazine - November/December 2016 by CAI Greater Los Angeles Chapter

November/December 2016

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

SAVE THE DATE:

South Bay HOA Marketplace April 6

2016 Case Law & Legislation

2016 California Case Law Amended Civil Code §4775 — Are You Ready? 2017 Top Five Employment Issues

CAI-GLAC 2017 Marketing Opportunities

2017 CAI-GLAC CALENDAR OF EVENTS JULY 19 20-21 21 22

JANUARY 19-20 CAI National 13 Board MeetingLaw Seminar 25 Educational Luncheon (Skirball) 19-20 Westside CAI National Law Seminar 27 Board Meeting 25 Westside Educational Luncheon (Skirball) 28 28 Essentials of Community Leadership Workshop 31 Managers Only Breakfast Workshop Worshop

25 26 28

FEBRUARY 01 Tricks of the Trade 07 Long Beach Evening Program 09-10 M-201 Facilities Management 10 GLAC PCAM Luncheon 15 SF Valley Educational Luncheon 24 Board Meeting MARCH 02 09 22 24 29 31 APRIL 06 08 19 21 23-24 28

AUGUST 02 12 17-19 23 25

OCTOBER 04 Managers Only Breakfast Workshop 10 South Bay Evening Program 20 CAI Legal Forum 25 Valencia Educational Breakfast 27 Board Meeting

South Bay HOA Marketplace Essentials of Community Leadership Workshop Westside Educational Luncheon (Skirball) Board Meeting Day at the Capitol CMCA Review CAI National Conference South Bay Ask an Expert SG Valley Evening Program Annual Golf Tournament Downtown Educational Luncheon Board Meeting

JUNE 01 07 21 23

SF Valley HOA Marketplace Managers Only Breakfast Workshop South Bay Educational Luncheon Board Meeting

SG Valley Ask an Expert Wine Night M-100 Essentials of COA Management Westside Educational Luncheon (Skirball) Board Meeting

SEPTEMBER 16 Essentials of Community Leadership Workshop 22 Board Meeting 27 Downtown Educational Luncheon

SG Valley Evening Program CEO Summit South Bay Educational Luncheon Board Meeting Valencia Educational Breakfast CID Law Course

MAY 3-5 09 11 15 24 26

SF Valley Educational Luncheon M-360 Leadership Practices Board Meeting Essentials of Community Leadership Workshop Long Beach Evening Program Valencia Educational Breakfast Bowling Tournament

NOVEMBER 02 SG Valley HOA Marketplace 04 Essentials of Community Leadership Workshop 11 Casino Night 15 Westside Educational Luncheon (Skirball) 17 Board Meeting DECEMBER 01 Holiday Happy Hour 08 Spark of Love 22 Board Meeting

Please Note:

• Must be a current member in good standing to sponsor an event. • All prices listed are CAI-GLAC member prices. • Non-member pricing is an additional 100% over the member price. • No refunds will be given for sponsorships or advertising, but the Executive Director will endeavor to work with the sponsor to move the funds to another event, if notified at least 30 days prior to that event and pending availability. • Per Chapter Policies & Procedures, tabletop sponsorships are only open to business partner members, unless otherwise approved by the Chapter Board of Directors.

Note: Dates may be subject to change. Please visit our website for current event dates, times and locations. (4)

2016 BOARD OF DIRECTORS OFFICERS Lisa Tashjian, Esq., President Beaumont Gitlin Tashjian, 866-788-9998 Joanne Peña, CMCA®, AMS®, PCAM®, President Elect Horizon Management Company, 310-543-1995 Michael Lewis, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012 Donald Campbell, CMCA®, AMS®, PCAM®, Secretary Cabrini Villas HOA, 818-504-9600 Meigan Everett, PCAM®, Treasurer Gold Coast Property Pros, 424-238-2333 DIRECTORS Teresa Agnew Roseman & Associates APC, 818-380-6700 Greg Borzilleri PCW Contracting Services, 949-285-7802 Angel Fuerte FRESHCO Painters, Inc., 626-482-2698 Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc., AAMC, 818-907-6622 Sascha Macias FirstService Residential, 310-574-7426 Matt Ober, Esq., CCAL® Richardson Harman Ober PC, 626-449-5577 Dick Pruess Castlegate HOA, 626-584-0000 Lynn Ruger Warner Club Villas HOA, 818-703-7090

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2016 COMMITTEE CHAIRS COMMUNITY OUTREACH Meigan Everett, PCAM®, Gold Coast Property Pros EDUCATION Anda Bewhite, MBA, CCAM®, CMCA®, AMS®, PCAM®, Metropolitan Property Services, LLC FINANCE Michael Lewis, CMCA®, AMS®, PCAM®, Concept Seven, LLC GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC Ryan Dudasik, Whitestone Painters HOA MARKETPLACE Alan Denison, ALLBRIGHT 1-800-PAINTING LEGISLATIVE SUPPORT Kimberly Lilley, CMCA®, CIRMS®, Berg Insurance Agency, Inc. MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP PROGRAMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire Brian Moreno, Esq., CCAL, SwedelsonGottlieb PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Matthew Gardner, Esq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Ruth Moffitt, CMCA®, AMS®, PCAM®, Valencia Management Group AAMC® Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Assn. SOCIAL Leslee Jones, Alliance Environmental Group Angelique Madrigal, Ross Morgan & Company, Inc. AAMC SOCIAL MEDIA Diane Lortie-Dudasik, CCAM-PM, Metropolitan Property Services, LLC Lindsay Morstad, ASR Restoration & Construction WINE NIGHT Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP Jolen Zeroski, CMCA®, Union Bank HOA Services

CAI-Greater Los Angeles Chapter

NEWSWORTHY 4 2016 California Case Law 8 Does Your California Community Association’s Budget Address the Cost of Maintenance and Repair Responsibilities As a Result of Amended Civil Code §4775? 12 2017 Top Five Employment Issues 14 News From Sacramento 20 Meet the Smartest Guy in Your Neighborhood 24 News From Washington 29 Congratulations to Our 2016 Recruiter of the Month Winners

CHAPTER UPDATE 2 Note from the Editor’s Desk 3 Message from the President

NOTEWORTHY 16 Highlights from Arabian Nights Casino Party & Awards Gala 22 Wild West HOA Marketplace Highlights

FYI 30 32 32 32

CAI-GLAC Membership News 2017 Upcoming Events Advertisers Index Advertising Information

SAVE THE DATE: South Bay HOA Marketplace April 6 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 © 2016. 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. National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org

On the Cover

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November/December 2016 | www.cai-glac.org

2016 CAI-GLAC Super Sponsors PLATINUM

OR THE FINAL ISSUE OF THE YEAR, we decided to look back and offer a wrap-up issue on some of the topics and legislation impacting our communities. We also wanted to add our thanks to all of those who continue to make this Chapter a success, and who work tirelessly to stay on top of the latest to keep you informed.

NOTE

FROM THE EDITOR’S DESK

Our outgoing president, Lisa Tashjian, reminds us of the benefits that all of your time and energy brought us. As a final gift, she also leads with her take on the latest cases that impacted our industry this year. This was a good year for associations, because we saw courts affirm the authority to carry out duties under governing documents and the Civil Code. The Rancho Mirage case and the Almanor Lakeside case are both great examples of associations appropriately using their authority. David Swedelson follows up with his analysis on the new cost and repair responsibilities outlined in Civil Code 4775. Since the law goes into effect starting January 2017, communities are going to have to be familiar with how this change will affect maintenance responsibilities. Unless your documents are clear, you are going to want to be familiar with these changes.

Ted Dokko focuses on some of the latest employment issues. Although some of the state and federal legislation on employment may only directly impact larger communities with employees, there are helpful tips for all associations. We bid a fond farewell to Skip Daum after his 30 years of service. Skip has been an incredible resource for all of our Chapters, and an outstanding advocate for all of our communities in California. All of us at FOCUS Magazine are indebted to him for his regular updates that keep us connected to Sacramento. Taking over for Skip, CAI is now excited to be working with Louie Brown. We include a short piece of introduction on Louie’s past work and accomplishments. We hope that you will help us demonstrate our commitment to CAI by taking time to welcome Louie as part of our team. If you haven’t signed up for CLAC-TRAC to receive regular email updates on legislative issues, please do so today at www.caiclac.com. Our final thanks to Lisa for another great year with CAI-GLAC, and hope you all have a safe and happy 2016, and a better 2017. Warm regards, — Matthew Gardner, Esq. Editor

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

www.cai-glac.org | November/December 2016

Accurate Termite & Pest Control ALLBRIGHT 1-800-PAINTING Alliance Association Bank Animal & Insect Pest Management, Inc. Critter Busters, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Pacific Western Bank Paint Squad, LLC Payne Pest Management Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Select Painting & Construction, Inc. Silicon Beach Insurance Services Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services Universal Protection Services GOLD Beaumont Gitlin Tashjian Behr Paint Corporation Best Alliance Foreclosure & Lien Services Kasdan Lippsmith Weber Turner LLP Law Offices of Michael A. Hearn McKenzie Rhody LLP NPG Asphalt SAX Insurance Agency Tinnelly Law Group SILVER American Heritage Landscape ASR Restoration & Construction Association Reserves, Inc. Brickman/ValleyCrest FRESHCO Painters, Inc. General Pavement Management, Inc. Jackson Insurance Services Miller Law Firm Mutual of Omaha Bank/CondoCerts ProTec Building Services Reserve Studies Incorporated Stay Green Inc. SwedelsonGottlieb Timothy Cline Insurance Agency, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

BRONZE Action Duct Cleaning Co., Inc. Associa-PCM Bentley Community Management, Inc. Berding|Weil CBCI Construction, Inc. Design Build Associates Fenceworks, Inc. Poindexter and Company, CPAs PPG Paints Professional Services Construction, Inc. S.B.S. Lien Services Sherwin-Williams Paint Three Phase Electric Vista Paint Corporation We thank our 2016 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

opportunity to thank them for the selfless dedication to our Chapter and to our industry.

Lastly, the end of the year brings an opportunity to reflect and spend time together as we strategically plan for 2017. We had a great time at the Holiday Happy Hour sharing laughter, friendship and holiday cheer. And once again, our generous members participated in the Spark of Love Toy Drive, and our Chapter was featured on ABC Channel 7! Fabulous work, everyone—as our community outreach extends beyond the communities we live in and benefits the entire Greater Los Angeles area.

FROM THE PRESIDENT

OW, CAN YOU BELIEVE IT, here we are ending another wonderful year! I have been so fortunate and blessed to lead our members alongside an amazing board, committee chairs and volunteer members. Thank you, thank you, thank you, everyone for your countless hours of service to make 2016 the successful year it was. We had recordbreaking attendance at our Chapter events, including most notably our “Arabian Nights” Awards and Casino Night! A special thank you to the Social Committee for planning this memorable evening and congratulations to all the award nominees and recipients. You are all worthy of recognition and each and every one of you is a winner! Our Chapter Educational Luncheons, held regionally, continued to be a hit, as we were able to reach many members and potential new members. Our Marketplaces were great forums that allowed our business partners to highlight their services and products throughout the Greater Los Angeles area. It is also my sincere pleasure to announce that, at our Legislative Update Luncheon in November, we raised $9,400 through the CLAC Challenge — which you all know is my favorite fundraising event! It always inspires me to see our members step up and contribute to help fund our lobbying efforts in Sacramento. I want to thank each of our contributors for their outstanding generosity!

CAI-Greater Los Angeles Chapter

When I wrote my first President’s message in the beginning of 2016, I could not imagine what the year would bring us. I am proud of the goals we set and the accomplishments we made together. In an ever-changing industry, I am extremely pleased with the election of our newest members to serve on this great Chapter’s board — Neda Nehouray and Jose Glez. Although new to our board, Neda and Jose are definitely not new to the industry Thank you for allowing me to serve as and with that comes their experience, your president. I have been humbled passion and dedication to serve the by this experience, and I have enjoyed Chapter. Along with our returning every moment. board members, the Chapter will I wish you all health, happiness and continue to have the strong leadership prosperity in the New Year. necessary to further the momentum we and past boards have established Your Chapter President, with high expectations and individual —Lisa A. Tashjian, Esq. accountability. It is also equally important to recognize our retiring board members and acknowledge the contributions they made to our Chapter — Matt Ober and Mike Lewis. These gentlemen have gone over and above their duties as board members. They have both made such an impact on our Chapter and have helped guide the board through important decisions. I want to take this To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.

November/December 2016 | www.cai-glac.org

2016 CALIFORNIA CASE LAW ¡¡¡ By Lisa A. Tashjian, Esq.

“PUBLISHED” COURT DECISIONS ARE LAW, AND BINDING, WHILE “UNPUBLISHED” COURT DECISIONS ARE NOT LAW. ALTHOUGH NOT LAW, UNPUBLISHED DECISIONS ARE EXTREMELY VALUABLE AS THEY ILLUSTRATE HOW COURTS ADDRESS VARIOUS ISSUES COMMONLY FACED BY COMMON INTEREST DEVELOPMENTS.

■ PALM SPRINGS VILLAS II HOMEOWNERS ASSOCIATION, INC. V. PARTH

by the Bylaws; and (4) she secretly renewed a 1-year contract with their existing security company, even though the Board was actively obtaining bids from other security companies.

In this case, the Association’s president and member of the Board of Directors took several actions: (1) she hired a roofing company to perform repairs, without notice or approval by the Board and without confirming whether the company held a roofing license; (2) she signed three promissory notes for $1,775,000, secured by Association assets, for a project to repave walkways and make other repairs without giving notice to or obtaining approval by the Board or obtaining a vote of the majority of the members as required by the CC&Rs; (3) she hired a landscaping company by entering into a 5-year contract without a majority vote of the members as required

The court in this case found that, even though corporate directors are not supposed to be held personally liable, as long as they acted in good faith, in the best interests of the Association, and based on a reasonably inquiry (also known as the “business judgment rule”), this rule has its limits. Here, the president’s failures to investigate, for example, the roofing company’s license, amounted to “willful ignorance.” Association directors should remember that they have a duty to exercise diligence when making decisions for the association. The business judgment rule will not protect them from dereliction of this duty.

248 Cal.App.4th 268 (2016)

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

■ ALMANOR LAKESIDE VILLAS OWNERS ASSOCIATION V. JAMES CARSON 246 CAL.APP.4TH 761 (2016) In this case, homeowners purchased two properties to use for short-term vacation rentals. These properties were subject to the Association’s CC&Rs, which provided that the properties could be used for commercial or residential purposes. However, the CC&Rs also provided that lots could not be used for transient or hotel purposes or renting for fewer than thirty days, unless the owners provided the board with the rental agreement at least seven days before the rental period. Nonetheless, the homeowners proceeded to rent the properties to transient guests without providing the Association with the rental agreement. The Association fined the homeowners for the violation, and also fined them for overdue assessments, as well as interest, amounting to a total of $54,000. The court found that the vast majority of these fines were not enforceable, but still awarded the Association $101,803 for its attorney’s fees. This demonstrates that even if the court denies the association its fines, it may still be considered the “winner” in a lawsuit. In this case, the court argued that even though most of the fines were disallowed, the Association was still the winner in the lawsuit, because ultimately, their right to adopt and enforce “reasonable” rules was upheld.

■ R ANCHO MIRAGE COUNTRY CLUB HOMEOWNERS ASSOCIATION V. HAZELBAKER 2 Cal.App.5th 252 (2016)

In this case, the homeowners applied for, and received approval from, the Association’s architectural committee to make improvements to their patio area. After the homeowners made these changes, the Association felt that the changes exceeded the scope of what they approved the owners to do. The parties then mediated, and agreed that the homeowners would make modifications to their changes within 60 days of the date of the agreement. The homeowners subsequently failed to make these changes. In short, the Association sued the homeowners for specific performance of the mediated agreement. The parties again settled, and the homeowners agreed to make the modifications; however, the parties disagreed about who should bear the costs litigation. Ultimately, the court found that the Association is entitled to appellate attorney fees, because it was the “prevailing party.” Again, this case demonstrates that even when an association and homeowner(s) come to a settlement, the court still considers a prevailing party the one who “achiev[ed] its main litigation objectives.” CONTINUED ON PAGE 6

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2016 CALIFORNIA CASE LAW CONTINUED FROM PAGE 5

FEDERAL CASE LAW - PUBLISHED

■ PFLUGH V. 2-4-6-8-10-12 STEINER STREET

■ C ASTILLO CONDOMINIUM ASSOCIATION V. U.S. DEPT. OF HOUSING & URBAN DEVELOPMENT

In this case, three condominium owners in the Association (the Plaintiffs) sued the Association for amending the CC&Rs to change the common area into an exclusive-use common area specifically for two assigned parking spaces. A majority of owners approved the change via vote, but the Plaintiffs argued that converting this common area to an exclusive-use common area changed the permanent character of each unit’s common interest; therefore, a unanimous vote should have been required.

In this case, the homeowner was keeping a dog in his Puerto Rico condominium, in violation of Castillo Condominium Association’s pet prohibition. The homeowner insisted that the dog was an emotional support animal that assisted him with his depression and anxiety, but the Board refused to make an exception to their no-pets rule. The homeowner moved out of the Association, but sued it for violating the Fair Housing Act, which prohibits discrimination in housing based on a person’s disability.

Not Officially Published – May Not be Cited (NOT LAW) – (2015) WL 6736702

The court held that because this area had already been used as two separate parking spaces for many years prior by the two units adjacent to it, unanimous vote was not required. Furthermore, the restated/amended CC&Rs did nothing to change the percentage interest assigned to each unit. On these grounds, the Plaintiffs lost, a unanimous vote was not required to change the CC&Rs, and the parking spaces remained. The lesson to be learned from this case is, generally, boards should be careful to amend the CC&Rs so as to alter the “permanent character” of each unit’s common interest. It is prudent to seek legal advice when amending or restating the CC&Rs to avoid these disputes.

821 F.3d 92 (2016)

The Secretary for the U.S. Department of Housing and Urban Development awarded the homeowner $20,000 in emotional distress damages, and imposed a fine upon the Association of $16,000. The court affirmed and found that there was ample evidence that the homeowner was disabled under the FHA’s criteria and that the Association knew or had notice of the disability. Therefore, the Association should have provided the homeowner with a reasonable accommodation and adhered to his request for an exception to their no-pets rule. Courts take alleged FHA violations very seriously, and boards should always make sure the governing documents are being enforced in a way that is fair and nondiscriminatory.

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CAI-Greater Los Angeles Chapter

■ DESERT PINE VILLAS HOMEOWNERS ASSOCIATION V. KABILING IN RE KABILING (551 B.R. 440) After homeowners filed a Chapter 7 bankruptcy petition and left their unit in the Desert Pine Villas Homeowners Association, the Association acquired their unit through a foreclosure sale. Upon filing for bankruptcy, the homeowners were discharged from their outstanding Association debt, and the court ordered all creditors to cease attempting to collect any discharged debts from them. The Association then sued the homeowners seeking to confirm that it held good title to the unit, and to demand from the homeowners its attorney’s fees. By suing and alleging that the homeowners failed to pay assessments, seeking attorney’s fees from them, and otherwise complaining based on pre-discharge circumstances, the court held that the Association violated the court’s discharge order. Consequently, it is vital that associations and their boards consult with an attorney to help understand their rights in the event that a homeowner files for bankruptcy.

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Lisa Tashjian, Esq. is a partner with Beaumont Gitlin Tashjian, a law firm providing legal expertise to community associations throughout California. Lisa is also 2016 CAI-GLAC President and can be reached at ltashjian@ bgtlawyers.com.

CAI-Greater Los Angeles Chapter

November/December 2016 | www.cai-glac.org

Does Your California Community Association’s Budget Address the Cost of Maintenance and Repair Responsibilities as a Result of Amended Civil Code §4775?

committee had been taking the position that exclusive use common area was just about anything that serviced one unit and was the owner’s maintenance, repair and replacement responsibility. Since that time I have learned that many California associations were operating on this basis, and others were applying the law as was intended and now clarified by the new law. To be fair, there were ambiguities in Civil Code §4775 (formerly 1364), which prompted the legislature to finally address and act on the issue. And it was because so many associations apparently needed to change how they dealt with the maintenance, repair and replacement of exclusive use common area that the legislature gave all California community associations two years to prepare. So, has your association(s) prepared? For many associations this update required changing their policies on exclusive use common area repair and replacement. This will undoubtedly require that they increase the assessments levied to the owners to cover the additional repair and replacement work that will be required, especially for what many associations were mistakenly calling exclusive use common area. As the Court in the 2010 Dover Village v. Dennison case reminded us, exclusive use is not anything that serves one unit; it is what is defined as such in the association’s CC&Rs, usually the balcony and parking space.

t has been two years since the Governor signed into law changes to Civil Code Section 4775 relating to the maintenance, repair and replacement of exclusive use common area. Those changes go into effect January 1, 2017. The two years was provided to allow those associations that were not in compliance time to revise their documents and/or procedures to be in compliance with the new law.

SO, YOU ASK, how did this situation come to be, where some associations were making owners responsible for the repair and replacement of common area components? The answer is that many associations’ CC&Rs, particularly those in older communities, do not adequately identify or define maintenance and repair responsibility for exclusive use common area components such as patios, balconies, exterior doors and similar components. (You need to check your CC&Rs to determine exactly what is defined as exclusive use common area for each association.) This can and has led to disputes.

Just prior to the legislation being passed, I was involved in a discussion with a legislative action committee I sit on that is made up of industry professionals, including many managers and attorneys. I was surprised by how many of those on the

To resolve these ambiguities in CC&Rs, we look to Civil Code §4775 which currently states that the association is responsible for repairing, replacing, or maintaining the common area, other than exclusive use common area, and the

❱❱❱ By David Swedelson, Esq.

I 8

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

owner of each separate interest is responsible for maintaining their separate interest (unit) and any exclusive use common area appurtenant to the separate interest. The problem with this language is that it is not clear to many owners and board members who repair or replace the exclusive use common area. Because exclusive use common area is still common area, and because all the owners own is the exclusive right to use the airspace in that area, the common area remains common area and the association’s obligation to repair and replace as necessary. But many board members, managers and attorneys have misinterpreted this language to mean that owners are responsible for the repair and replacement their exclusive use common area. The California legislature finally addressed this situation by amending Civil Code §4775 adding section (a) (3), which takes effect January 1, 2017. The clarified language provides that unless otherwise provided in the declaration of a common interest development: zThe z owner of each separate interest is responsible for maintaining the exclusive use common area appurtenant to that separate interest. zThe z association is responsible for repairing and replacing the exclusive use common area. CONTINUED ON PAGE 10

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Does Your California Community Association’s Budget Address the Cost of Maintenance and Repair Responsibilities as a Result of Amended Civil Code §4775?

if the CC&Rs do not otherwise provide. The change to this code section obligates associations to examine their CC&Rs to determine whether the CC&Rs define exclusive use common area maintenance and repair responsibility. If an association’s CC&Rs are not specific (and many are not), boards may want CONTINUED FROM PAGE 9 to consider seeking owner approval to amend their CC&Rs to either keep the maintenance and repair responsibility consistent This revised language certainly makes it clear and clarifies with the association’s custom and practice, or, to shift repair the distinction between maintenance of the exclusive responsibility for use common patios and area, and repair So, has your association(s) prepared? For many associations this update balconies, similar exclusive use and replacement components to the of exclusive use required changing their policies on exclusive use common area repair owner. common area. But and replacement. This will undoubtedly require that they increase the amendment Otherwise, the doesn’t really language of the new the assessments levied to the owners to cover the additional repair change the law, as amended Civil Code many attorneys §4775 will control, and replacement work that will be required, especially for what many and managers have leaving associations always interpreted associations were mistakenly calling exclusive use common area. responsible to repair the current statute (and fund) what as only obligating an owner to maintain their exclusive use could be costly exclusive use common area repairs. common areas. The amendment merely makes clear what Maybe maintenance can be interpreted in different ways, many of us have always interpreted to be the case. and so we will have to see how the associations deal with the Amended Civil Code §4775, like the existing law, defers to the definition of maintenance in light of the amendments in Civil CC&Rs and dictates maintenance and repair responsibility Code §4775.

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

As stated in the introduction, newly clarified Civil Code §4775 may likely result in some associations taking on repair responsibility for exclusive use common area components that in the past were thought to be the owner’s responsibility. This will require that those associations review their reserve and operating budgets to make sure that the added repair or replacement expenses are budgeted for and included in the assessment calculation. Associations also need to review what they are defining as exclusive use common area, as there are some associations that have been calling anything that serves one unit exclusive use common area and that is not the way the law works. David Swedelson, Esq. is a founding partner of SwedelsonGottlieb, a law firm serving common interest developments throughout California. David can be reached at dcs@sghoalaw.com.

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¡¡¡ By Theodore H. Dokko, Esq. Labor and employment issues continue to be a trap for the unwary, and ignorance of the evolving law and regulations can lead to serious consequences for those who are unaware. As we enter into the New Year, here are the top five issues that employers, especially communities that employ a staff or management companies that staff communities, must be familiar with:

1. FAIR PAY ACT ¡ In 2016, the Legislature enacted

2017

Top Five Employment Issues

significant changes to the Labor Code to address gender wage inequality. Prior to the amendments, there had to be “equal pay” for “equal jobs” at the “same establishment.” Employers are now burdened with the affirmative duty to reasonably justify any pay differentials between their male and female employees who do “substantially similar work,” when viewed as a composite of skill, effort, and responsibility under similar working conditions. Starting in 2017, employers must also be able to reasonably justify pay differentials of employees who are of different races and ethnicities. An intention to discriminate is not necessary for there to be liability. While a minor difference in pay may be disregarded, job titles, job locations, and salary history, by themselves alone are not sufficient justifications. There must be a “bona fide factor other than” sex or race.

2. SEXUAL HARASSMENT ¡ Previously, employers had the

discretion to determine what reasonable steps they would take to prevent and correct sexual harassment and discrimination. New regulations of the Fair Employment and Housing Act take that discretion away and mandate employers to have written and disseminated anti-discrimination and antiharassment policies that list all current protected categories and establish a complaint process that ensures an impartial and timely investigation while assuring that no employees will be exposed to retaliation. If the workforce includes more than 10% non-native English speaking employees, the policies must be distributed in that language as well. All employers must not only have such procedures in place but must ensure that supervisors are properly trained to address potential complaints related to these policies and procedures. A failure to comply with these new regulations can lead to a claim that the employer has failed in its affirmative duty to prevent harassment and discrimination.

3. MANDATORY PAID SICK LEAVE ¡ All California

employers are required to grant their employees paid sick leave. Full-time employees are to minimally receive three paid days per year. Consistent with required usage and accrual methods, employers can either allow their employees to accrue one hour of sick leave for every 30 hours worked or can grant the annual sick leave in one lump sum. Employers using the accrual method may place a cap on the accrual of such sick leave to six days per year and may similarly cap usage of sick

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

leave to three days per year. Despite offering paid sick leave prior to the law’s enactment, many employer’s current sick leave policies do not comply with the Labor Code.

4. DISABILITY ACCOMMODATION ¡ Once an employee’s

disability becomes known to the employer, the employer is obligated to determine whether a reasonable accommodation that will allow for the employee to maintain employment can be made by engaging in a good-faith interactive process with the employee. Failure to do so can bring additional liability to the employer as a separate violation of the Fair Employment and Housing Act. Often times, an employee will complain about stress from the job. Disability is broadly construed, and complaints of stress must be considered to be a disability that requires the employer conduct an interactive process. A Court of Appeals recently expanded an employer’s accommodation requirements when it found that an employer had to accommodate an employee when a member of his immediate family had a disability that affected that employee’s schedule.

5. WAGE/HOUR AND OVERTIME ¡ The minimum wage

increased in 2016 and will increase again in 2017. Beginning January 1, 2017, employers with 26 or more employees must pay a their employees as minimum wage of $10.50 per hour while employers with 25 employees or less must pay their employees at least $10.00 per hour. These increases practically impact which employees can be classified as exempt from

CAI-Greater Los Angeles Chapter

overtime. Any employee who earned less $41,600 in 2016 must be classified as non-exempt. In 2017, the figure will rise to $43,680. Theodore H. Dokko, Esq, oversees Richardson Harman Ober’s Employment Law Practice Group. Richardson Harman Ober PC is a law firm that provides legal expertise to common interest developments throughout California. Ted may be reached at tdokko@rhopc.com.

November/December 2016 | www.cai-glac.org

NEWS

FROM SACRAMENTO

Meet LOUIE BROWN CAI’S CALIFORNIA LEGISLATIVE ADVOCATE CAI’s California Legislative Action Committee has engaged Louie A. Brown Jr. as its legislative advocate in Sacramento to replace Skip Daum, who retired at the end of September. CAI-GLAC was very happy to get a chance to personally meet and welcome Louie at the November 16 Educational Luncheon. Louie is a partner with the law firm of Kahn, Soares & Conway, LLP. He manages the firm’s Government Relations Team representing clients before the California State Legislature and various state administrative agencies.

Louie specializes in providing clients with expert advice in maneuvering through California’s complex legislative and administrative process. He testifies regularly in the Capitol before many legislative committees on behalf of clients and has written numerous laws and played key roles in many of the Legislature’s major accomplishments and budget negotiations over the last decade. Louie earned his Bachelor of Science Degree from California Polytechnic State University in San Luis Obispo, California and his Juris Doctor from the McGeorge School of Law. In 1991, the National Future Farmers of America elected Louie to serve its 400,000-student membership as the Western Region Vice President. In addition to his work with the firm, Louie is deeply committed to agriculture education and youth sports. He chairs the Cal Poly AgriBusiness Department’s Advisory Committee and serves as member of the California Future Farmers of America Foundation Board of Directors. Louie also serves as President of the Elk Grove Youth Baseball League, Board Member of the Marauders Baseball Club and has volunteered as a youth soccer coach.

2016 CLAC Challenge $9,400 Total Sets Record! OUR THANKS TO CHALLENGE CONTRIBUTORS

Left to Right: Les Jillson (Design Build Associates), Sandra Gottlieb, Esq. (SwedelsonGottlieb), Dennis Brooks (Design Build Associates), Tom Ware II, Esq. (Kulik Gottesman Siegel & Ware LLP), Nels Atha (Common Interest Services, Inc.), Joe Glorioso and Alicia Glorioso (True Community Association Management, Inc.), Karen Kokowicz (Coro Community Management & Consulting), Ray Echlin (Behr Paint Corporation), Pauline MacLean (American Technologies, Inc.), Michael Huffman (Management Professionals, Inc. AAMC), Michael Lewis (Concept Seven, LLC AAMC), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt LLP), Sue Bartley (Sherwin-Williams Paint), Joanne Peña (Horizon Management Company), Lisa Tashjian, Esq. (Beaumont Gitlin Tashjian), Louie Brown, Esq. (CAI California Legislative

www.cai-glac.org | November/December 2016

Action Committee), Gina Roldan (ProTec Building Services), Niki Bossonis (WICR, Inc. Waterproofing & Decking), Les Weinberg (Reserve Studies Inc.), Teresa Agnew (Roseman & Associates, APC), Sascha Macias (FirstService Residential AAMC), Steve Little (Steve Little Insurance Agency—State Farm Insurance), Jennifer Martin, Esq., Michael W. Rabkin, Esq. and Dan Shapiro, Esq. (Wolf Rifkin Shapiro Schulman & Rabkin, LLP), Greg Borzilleri (PCW Contracting Services) and Matt Ober, Esq. (Richardson Harman Ober PC). Not pictured: Adams Stirling PLC, Gold Coast Property Pros, Ross Morgan & Company, Inc. AAMC, Silicon Beach Insurance Services, The Californian on Wilshire HOA and Valencia Management Group. CAI-Greater Los Angeles Chapter

What is CLAC?

ABOUT THE ORGANIZATION

THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (C AI) CONSISTING OF HOMEOWNERS AND PROFESSIONALS SERVING COMMUNITY ASSOCIATIONS. CAI IS THE LARGEST ADVOCACY ORGANIZATION IN AMERICAN DEDICATED TO MONITORING LEGISLATION, EDUCATION ELECTED STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA.

CLAC’S MISSION To safeguard and improve the community association lifestyle and property values by advocating a reasonable balance between state statutory requirements and the ability and authority of individual homeowners to govern themselves through their community associations.

$25,380

100% of goal as of 11/30/16

100 Marina Shores HOA 100 South Doheny CA, Inc. 101 Ocean Condominium HOA 118 Wadsworth Ave. HOA 446 San Vicente HOA 515 San Vicente HOA 826 2nd Street HOA 909 El Centro, Inc. 914 Lincoln Blvd. HOA 948 20th Street HOA 1050 3rd Street, Inc. 1144 Seventeenth Street HOA 1242 Berkeley Street HOA 1331 Berkeley Street HOA 15206 Burbank Blvd. HOA 1715 California Ave. HOA 1835 7th Street HOA 2050 Artesia HOA 2641 4th Street HOA 4424 Whitsett Avenue HOA

CAI-Greater Los Angeles Chapter

 Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters.  Represents over nine million homeowners and property owners in more than 45,000 associations throughout California.  Comprises association homeowners, board members and the professional business partners that service them.  Is NOT a PAC (Political Action Committee) and makes no financial campaign contributions.  Depends solely on the donations of the community associations, their boards of directors and those who serve HOA members.

OUR THANKS TO 2016 CAI-CLAC CONTRIBUTORS JANUARY 1 – NOVEMBER 30

4820 Bellflower HOA Adams Stirling PLC American Technologies, Inc. Armour Lane CondominiumAvis HOA Avis HOA Avocado Glen HOA Beaumont Gitlin Tashjian Behr Paint Corporation Bell Canyon Association Berkeley Townhouse HOA, Inc. Beverly-Westwood Condominium HOA, Inc. Bodger Park Condominiums HOA Bougainvillea Townhomes HOA Brittany Park HOA Budlong Villas HOA Cardiff Court OA, Inc. Carl Burleigh Carolwood HOA, Inc. Casa De Valley View OA, Inc. Casa de Suenos CA Cedar Glen HOA Chalmer/Wooster Plaza HOA Chateau Delgany Estates COA, Inc. Chateau Goshen HOA Chatelaine Condo Association Common Interest Services, Inc. Concept Seven, LLC Continental Court HOA Coro Community Management & Consulting Country View Homes, Unit 2 Culver Centrale HOA Culver City Gardens Dana Mathey Del Prado HOA Design Build Associates DJ Conlon Eight on Twenty HOA Eight Seventeenth Sixth Street HOA El Segundo Peppertree HOA Fenton Grant Mayfield Kaneda & Litt, LLP FirstService Residential Five Ten Forty Inc. Florwood Estates HOA Gold Coast Property Pros

Gorham Park HOA, Inc. Hacienda HOA Harbor Manor HOA, Inc. Harbor Walk Terrace HOA Heritage Townhomes OA Hermosa Surf Condos, Inc. Hillcrest Meadows HOA, Inc. Hillcrest Rolling Hills HOA, Inc. Hopi HOA Horizon Management Company Idaho Villas HOA Idaho West townhomes HOA Irena Vista HOA James McCormick Jr., Esq. Jason Marquez Jennifer Caress Joanne Peña, CMCA®, AMS®, PCAM® Kay Ladner Kelton Arms COA Ketch to Jib Townhouses HOA, Inc. Kulik Gottesman Siegel & Ware, LLP La Pointe MA Lawford HOA Linda Healey, PCAM Lisa Tashjian, Esq. Main at the Beach HOA Management Professionals, Inc. Marina Shores HOA Marine Village HOA Monterey Pines HOA Oak Hill Condominium HOA Oak Street HOA Oakbridge HOA Ocean West COA Pacific Colony HOA Pacific Regency HOA Pacific View Condominiums HOA Park Crest HOA PCW Contracting Services Polynesian OA ProTec Building Services Rancho Glen HOA Reserve Studies Inc. Richardson Harman Ober PC

Roseman & Associates APC Ross Morgan & Company, Inc. AAMC Roxbury Park HOA S. Manhattan Plaza HOA Seascape-Redondo HOA, Inc. Sherwin-Williams Paint Silicon Beach Insurance Services Silver Spur Court HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Springwood CA, Inc. Stratford-Compton Park Townhouses OA Inc. Steve Little Insurance Agency SwedelsonGottlieb Textile Building OA The 558 Evergreen Street HOA The Brentwood at Kiowa HOA The Californian on Wilshire The Collection at Downtown Burbank The Galaxy HOA The Vista Pacifica HOA True Community Association Management Valencia Management Group Villa Capri HOA Villa Cordoba HOA Villa Cynthia HOA Villa Del Sol Villas HOA Villa Serena CA, Inc. Villa Vallarta HOA VIP Goshen Association Vogue Condominium Association Wadsworth Ave. HOA Westchester Playa del Sol West Del Amo Pacific CA West Wind Townhomes HOA Westside Townhouses HOA WICR, Inc. Decking & Waterproofing Wilshire Regent HOA Wilshire Selby Towers East CA, Inc. Windsor Estates HOA Wolf Rifkin Shapiro Schulman & Rabkin, LLP Woodbury Maintenance Corp. Yale St. HOA

November/December 2016 | www.cai-glac.org

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

November/December 2016 | www.cai-glac.org

Meet the Smartest Guy in your Neighborhood

HOW TECHNOLOGY & STREET LIGHTS ARE THE PATHWAY TO THE FUTURE ♦♦♦ By Kimberly Weiss Do you manage a Smart Community? Think about it. Your community has minimized expenses, maximized reserves, tackled the Davis-Stirling Act rewrite—no problem. It has inspectors of election, the governing documents have been modernized, the CDs are monitored, insurance protections are in place, and the delinquencies of 2010 have been conquered. Well done. You plot the course to help your community navigate the obstacles and stay up-to-date. You stay on the cutting edge of everything that’s good for your community because you care. And so, in this day of smart phones and smart TVs, you are about to discover the dawn of the Smart Community. The Internet of Things (IoT) is upon us. The Internet of Things (IoT) is a network of physical objects or “things” that are embedded with four attributes: electronics, software, sensors and connectivity. By utilizing the IoT, we can achieve greater value and service by exchanging data with the manufacturer, operator and/or other connected devices. Each “thing” is uniquely identifiable through its embedded computing system but is able to interoperate within the existing Internet infrastructure. This allows “things” to work independently or corroborate with other “things” or people for greater effect.

www.cai-glac.org | November/December 2016

The Internet of Things has been greatly used within the industrial, retail and consumer world for improvements of every kind. Think about your Smart Phone—it is a prime example of The Internet of Things. Loaded with sensors, Smart Phones have changed our lives and will be recorded as one of the foundational inventions of the century. The Smart Phone has been the heir of the perfect storm in that all of the conditions were right, but one of the key factors to its success was the perfect platform provided by the cell phone. It’s with you all the time, it has power, it has electronics. It works. Innovation has now paved the way for progressive cities to profit from the Internet of Things through transformation into Smart Cities. Product developers have realized that we have the capability to connect systems and things and that there is much that cities can gain by doing so, but they had to come up with a platform to host the Internet of Things in public areas. Enter the rebirth of the light pole. It, like the cell phone, is the perfect platform. Light poles are connected to power 24/7 (whether the light is on or not) and are strategically placed, so they’re in the right place at the right time. They have height, allowing the equipment to be out of harm’s way. LED lighting is electronic, so electronics are present, allowing it to be connected to the Internet. Sensors and software can easily be added. One Smart System opens the door for more. From a glance at their computer monitor, managers of Smart Cities can know the quality of the air compared to this same day last year and for the last 100 years, that there is a cracked water line on Main Street at risk of rupturing, and a streetlight is showing power irregularity on First Street. More importantly, due to shared data, the water company also knows about the stressed water line and can take action promptly before it is a major problem, and the electrical maintenance department can investigate the streetlight before the impending outage even occurs. City managers can use data to make their environments more inviting, comforting, cost effective and safe—ultimately attracting more residents and providing an improved quality of life. Cities like San Diego, Los Angeles, Oceanside, Carlsbad and San Jose are leading the movement by harnessing the benefits of their existing streetlights to begin the transformation into Smart Cities. Like cities, our community associations can also benefit by the new technology. Harnessing the power of our existing light poles, we can now easily incorporate networked controls into a planned LED conversion project. The system consists of one hub or control box, located in a central location, and a “node” on each light pole. The nodes communicate with the hub and the hub transmits data through the Cloud. The community manager or lighting maintenance contractor then logs into a secure Website to access the data, evaluate energy usage, make changes to the control system, etc. CAI-Greater Los Angeles Chapter

The networked lighting control system allows control of the on/ off times to the minute, allows variances to individual poles, identifies outages by a marker on a map due to embedded GPS, identifies potential outages before they occur, allows the lights to be dimmed or turned off when no one is present or, at a certain hour, turns the lights back on when someone comes, dims just one light that might be shining in someone’s window, calculates exact power consumption and more. The system can act even as an emergency alert system by turning on all the street lights at once to their brightest, or by flashing to get people’s attention. A speaker system can be installed on key poles to broadcast alerts and give information to the community about what’s going on and where to find help. California’s perpetual wildfires are a perfect example of where a system like this could not only alert residents of the need for evacuation, but tell them where to go. Installation of a networked lighting control system provides the platform for a plethora of optional add-ons based on community needs, playing a key role in the development of a truly Smart Community. Security surveillance, WiFi hot spots, speakers for music or messages, digital banners for community announcements or advertising, and nearly any other sensors imaginable can be added. The sensor development platform has been opened up to individual companies (similar to smart phone apps), so individual creativity and need are the only limits.

project. While you have a man on site replacing the fixture head, there is literally no additional labor required to install the control system. There are substantial maintenance and energy savings available along with the LED upgrade, so cities are using the savings to finance and justify the addition of connectivity, thus enhancing the quality of life among residents and providing numerous added benefits. In addition, the Smart Controls themselves have given them the ability to cut power consumption even further due to their dimming capability, saving energy and money, and extending their equipment life by a long shot. Outdoor lighting is now a tool that can provide much more than nighttime visibility. Due to the incredible opportunities available by adding connectivity and sensing capabilities, lighting professionals and community managers ought to be eager to present this exciting prospect to community decision makers. After all, creating a safer, more intelligent environment for people to live and thrive is a bright idea and the true mark of a California Smart Community. Kimberly Weiss is the CEO and President of Three Phase Electric, a lighting and electrical company serving Southern California since 1989, with offices in Orange County, San Diego and the Coachella Valley. Kim can be reached at kim@hoalighting.com.

The way cities are financing these upgrades, and the way HOAs can too, is by incorporating them into an LED lighting Licenses #664779

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CAI-Greater Los Angeles Chapter

November/December 2016 | www.cai-glac.org

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

November/December 2016 | www.cai-glac.org

NEWS

FROM WASHINGTON

The Department of Labor Overtime Rule Implementation Date Is Pushed Back Indefinitely

The rule, released by the Labor Department in May, would nearly double the threshold at which executive, administrative and professional employees are exempt from overtime to $47,476 from $23,660.

By Dawn Bauman, CAE

In September, the U.S. House of Representatives passed a bill (along party lines) to delay the implementation of the Department of Labor Overtime Rule for six months. While the bill would need to pass the Senate and be signed by the President, it passed the house in late September and there is still time left in the year for the bill pass the Senate. However, President Obama has threatened to veto the bill.

In a game of Chutes and Ladders, the U.S. Department of Labor’s Overtime Rule was heading toward the winner’s circle when it took the chute half way back to the beginning. A federal judge blocked the new rule making millions more Americans eligible for overtime pay. As a result, the December 1 effective date is indefinitely pushed back. Twenty-one states challenged the overtime expansion, arguing that Congress never intended to set any salary threshold for the exemptions or to allow the threshold to be raised every three years, as the Labor Department’s rule specifies. The decision by U.S. District Judge Amos Mazzant in the Eastern District of Texas to grant a preliminary injunction affects an estimated 4.2 million workers who were to be newly eligible for time-anda-half wages for each hour they put in beyond 40 a week.

www.cai-glac.org | November/December 2016

For now, the December 1 Implementation Deadline for the Overtime Rule is delayed indefinitely. President-Elect Trump will likely create additional problems for the Overtime Rule after his inauguration in January 2017. Dawn Bauman is Sr. Vice President of Government & Public Affairs at Community Associations Institute. She can be reached at dbauman@ caionline.org.

CAI-Greater Los Angeles Chapter

Ham Radio Legislation Fails In The 114th Congress By C. Scott Canady The 114th Congress has finished all legislative business and H.R. 1301 (legislation concerning HAM radio in community associations) was not approved by the Senate. This means the bill is dead and the legislation’s sponsors must begin the process again in the 115th Congress, which will be sworn in on January 3, 2017. CAI successfully amended H.R. 1301 from its original language, securing a compromise that permitted HAM radio in associations, but required prior approval by the association and protected association architectural prerogatives. The legislation was opposed by Sen. Bill Nelson (D-FL) both in its original and amended forms and this opposition

prevented Senate approval of the compromise legislation. In the 115th Congress, Sen. Nelson is expected to continue in his leadership position as Ranking Minority Member of the Senate Commerce Committee, which has jurisdiction over legislation and statutes concerning federal communications policy. Sen. Nelson was instrumental in forcing proponents of H.R. 1301 to negotiate with CAI, but in the end opted to oppose any legislative action on H.R. 1301. In the House, U.S. Rep. Greg Walden (R-OR), a licensed HAM radio operator and chief proponent of H.R. 1301, has been selected as the new chairman of the Energy and Commerce Committee, which also has jurisdiction over federal communications policy. CAI negotiated with Chairman Walden’s office to achieve the compromise version of H.R. 1301 that passed the House with CAI support. Chairman Walden is now in an even greater position to press for H.R. 1301-type legislation and it is expected he will do so, moving the legislation in early 2017. In similar manner, it is expected Senate supporters of H.R. 1301 will introduce new legislation in the 115th Congress. CAI will engage with congressional offices in December and January and work to protect the gains achieved in the compromise legislation negotiated with Chairman Walden. C . Scott Canady is CAI’s Federal Affairs Consultant in Washington D.C. He can be reached at c.scott.canady@tambalastrategy.com

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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

CAI-Greater Los Angeles Chapter

November/December 2016 | www.cai-glac.org

CAI Files Comments On Proposed Regulations To Encourage A Process That Allows More Condominiums To Qualify For FHA Certification By Dawn Bauman, CAE There are approximately 145,000 to 155,000 condominium projects in the U.S., according to the Foundation for Community Association Research (FCAR). As of October 2016, 9,866 condominiums— less than 7 percent of condominium projects nationwide—were Federal Housing Administration (FHA) certified. If a condominium project is FHA certified, that means prospective buyers interested in individual units within a condominium may qualify for an FHA insured mortgage. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The U.S. Department of Housing and Urban Development (HUD) released a new proposed rule to implement HUD’s authority under the National Housing Act to set the basic standards condominium projects must meet to be approved as condominiums in which individual units would

be eligible for FHA insured mortgages. The rule provides a method by which certain approval standards could be varied efficiently to meet market needs while providing for public comment where appropriate. Currently, single-family condominium project approval is provided under HUD’s Condominium Project Approval and Processing Guide and related Mortgagee Letters. CAI reviewed and analyzed the proposed rule with a team of subject matter experts; including community association attorneys, managers and condominium project approval consultants. On behalf of CAI members, the team, led by CAI’s federal advocate, Scott Canady of Tambala Strategies, composed a comment letter to represent the interests of CAI member condominiums to ensure appropriate access to FHA insured mortgages in condominium projects. CAI expects the final rule to be released in the middle of 2017. Dawn Bauman is Sr. Vice President of Government & Public Affairs at Community Associations Institute. She can be reached at dbauman@caionline.org.

Sharing our experience with community

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

HOA Board Members and Managers Meet to Learn the Essentials of Community Association Volunteer Leadership Dedicated HOA board members and managers attended CAI’s popular eight-hour board orientation workshop at SummerWind Homeowners Association in Torrance on November 12. Topics included fiduciary duty and board responsibilities, rule enforcement, insurance issues, finances and reserves, maintenance, problem solving and constructive ways to conduct board meetings.

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CAI-Greater Los Angeles Chapter

Risk Management Solutions… Professionally it’s what we know; Personally it’s what we do!

November/December 2016 | www.cai-glac.org

THE ESSENTIALS OF

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.

Visit www.cai-glac.org for details and registration

UPCOMING DATE January 28, 2017 – SummerWind HOA, Torrance

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

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take that to the bank. Lisa Ann Rea VP/Regional Account Executive 805-907-8452 Toll Free 866-800-4656, ext. 7500 lisa.rea@mutualofomahabank.com 17315 Studebaker Rd., Suite 213 Cerritos, California 90703 800.485.8056¡Fax 800.485.8057 www.ReserveStudiesInc.com

www.cai-glac.org | November/December 2016

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CAI-Greater Los Angeles Chapter

Congratulations to Our 2016 Recruiter of the Month Winners JANUARY

Russell Hoffman, CMCA®, AMS®, PCAM® Valencia Management Group FEBRUARY

MAY

Sascha Macias, CMCA®, AMS®, PCAM® FirstService Residential JUNE

JULY

Vesta Budhu Friendly Valley Community Association

Jeff Hayward, CMCA® Solera at Kern Canyon Community Association

Don Campbell, CMCA®, AMS®, PCAM® Cabrini Villas Homeowners Association

MARCH

Tina Nakamura, CMCA®, AMS®, PCAM® PMP Management

APRIL

Tina Nakamura, CMCA®, AMS®, PCAM® PMP Management

Lynelle Glysson, CMCA®, AMS®, PCAM® Empire West HOA

OCTOBER

Joanne Peña, CMCA®, AMS®, PCAM® Horizon Management Company Sascha Macias, CMCA®, AMS®, PCAM® FirstService Residential NOVEMBER

AUGUST

Joanne Peña, CMCA®, AMS®, PCAM® Horizon Management Company

SEPTEMBER

Tina Nakamura, CMCA®, AMS®, PCAM® PMP Management

Recruiter of the Month Prize

Recruiter Contest Sponsored by: American Technologies, Inc., Horizon Management Company, Infinity Property Services, MG Skinner & Associates, Naumann Law Firm PC, SAX Insurance Agency, Valley Association Management, Inc., Witkin & Neal, Inc.

CAI-Greater Los Angeles Chapter

November/December 2016 | www.cai-glac.org

WELCOME

NEW CAI-GLAC MEMBERS! AS OF DECEMBER 15, 2016

BUSINESS PROFESSIONALS Arboristas Inc. CGSystems Inc. – California Gate KB Construction Company Maxi Serve Water Damage Restoration Vet-Sec Protection Agency

RECRUITER CAI National CAI National Jeanie LaCroix CAI National CAI National

COMMUNITY ASSOCIATIONS Chatelaine Community Association Correction: Joanne Peña, CMCA®, AMS®, PCAM® COMMUNITY MANAGERS Richard Appel Kitt Boodayaskul FirstService Residential Roger Crumrine FirstService Residential Michelle Honeyman FirstService Residential Cynnthia Johnson FirstService Residential

Eron Kaylor Seabreeze Management Company, Inc. AAMC Christopher Moran FirstService Residential David Zimmerman Bear Valley Springs HOA COMMUNITY ASSOCIATION LEADERS Barbara Groves Stephen Shepard

Alexandria Pollock, CMCA®, AMS®, PCAM® Sascha Macias, CMCA®, AMS®, PCAM® CAI National

Vesta Budhu CAI National

CAI National Sascha Macias, CMCA®, AMS®, PCAM® Sascha Macias, CMCA®, AMS®, PCAM® Sascha Macias, CMCA®, AMS®, PCAM® Sascha Macias, CMCA®, AMS®, PCAM® AAB_Innov_CAI-GLAC_Cardoza_QtrPg_120115.pdf 1 12/1/2015 5:14:16 PM

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

OUR THANKS

TO RENEWING MEMBERS! AS OF NOVEMBER 30, 2016

BUSINESS PROFESSIONALS ACE Duraflo Pipe Restoration, Inc. Advanced Painting Contractors Co., Inc. Alante/MCS Insurance Services ALLBRIGHT 1-800-PAINTING Allegra Professional Group, LLC Animal & Insect Pest Management, Inc. Atlas Consulting Berding Weil LLP Birndorf Law Offices Broadband Planning Duramax Building Products Eagle Roofing Products Fenton Grant Mayfield Kaneda & Litt, LLP FHA Review G4S Secure Solutions USA, Inc. Gayle G. Gould, CPA Golden West Security Inc. Gothic Landscape Management Hi Tech Painting & Decorating, Inc. John R. Sinner Insurance Agency, Inc. Jon Wayne Construction and Consulting La Rocque Better Roofs, Inc. Law Offices of Laura J. Snoke McDonnell Roofing, Inc. Miller Law Firm, The Mulholland Security Centers, Inc. Paradise Pool & Spa Service Pariser & Pariser, LLP Rick’s Rain Gutters Ronald S. Stone PhD, CPA, CFE Rose Paving Company ServiceMaster by Advanced Restoration Specialists Sherwin-Williams Paint Super Painting Co. Urban Tree Care, Inc. VanDerPol & Company Whitestone Painters Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP COMMUNITY ASSOCIATIONS North Hollywood Terrace Owners Association Northstar Condominium Owners Association Palos Verdes Bay Club, Inc. Pasadena Live Oak Condominium Association Playa Pacific HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Associa-PCM Beven & Brock Manhattan Management Corporation On-Site HOA Management Prellis Property Management R.E.A. Advisors, Inc. Seabreeze Management Company, Inc. AAMC Wall Street Realty Property Management COMMUNITY MANAGERS Yuriy Amiragov Ontrack Asset Management Michelle Atkinson Ross Morgan & Company, Inc. AAMC Ann Bitter, CMCA® Common Interest Services, Inc. James Boutross Blair House HOA John Burton Le Parc HOA Susan Calhoun, CMCA® Valencia Management Group AAMC Donald Campbell, CMCA®, AMS®, PCAM® Cabrini Villas HOA Paul Cannings, CCAM®, CMCA® Beven & Brock Tina Crago, CCAM® International Tower Owners Association Mindy Dent, CMCA®, AMS® Evo HOA David Diers The Village Community Association Gregg Evangelho PMP Management AAMC Michelle Gibson Glen Towers Owners Association Ariel Hess, CMCA®, AMS® Scott Management Company Lisa Hoffman, CMCA® Valencia Management Group AAMC Miste Holloway PMP Management AAMC Catriona McCarthy, CCAM® Marina City Club HOA Nancy O'Donnell, PCAM® Martha Perkins, CMCA® Associa-PCM Michelle Phelps, CMCA® Valencia Management Group AAMC

Michelle Rodrigues, CMCA®, AMS® Seabreeze Management Company, Inc. AAMC Pam Sabo, CCAM® Ross Morgan & Company, Inc. AAMC Maria Tiscareno Franklin Towers HOA Cookie Valente, CMCA®, AMS Manhattan Management Corporation Sarah Zemer, CMCA® Ross Morgan & Company, Inc. AAMC Fang Zhu Beven & Brock COMMUNITY ASSOCIATION LEADERS Alan Balch Claire Carafello Jeff Gausepohl Tom Hiatt Queene Taylor Christopher Wade Phillip Watkins

November/December 2016 | www.cai-glac.org

2017 CALENDAR OF EVENTS JANUARY 19-21 CAI National Law Seminar Las Vegas, NV

25 Skirball Luncheon Program for HOA Boards & Managers – 11:30 a.m. Skirball Cultural Center, 2701 N. Sepulveda Blvd., Los Angeles 90049

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

28 Essentials of Community Leadership Workshop – 8:15 a.m. Summerwind HOA, 2800 Plaza del Amo, Torrance, CA 90503

31 Managers Only Breakfast Workshop – 8:30 a.m. Location TBD

FEBRUARY 01 Tricks of the Trade for Business Partners – 9:30 a.m. Bel Air Crest Master Association Clubhouse, Los Angeles

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

ADVERTISERS INDEX 30 Alliance Association Bank 34 Animal & Insect Pest Management Inc. 7 Association Reserves, Inc. 10 Bentley Community Management, Inc. 6 Farmers Insurance Group – Steven G. Segal Insurance Agency, Inc. 30 Ferris Painting, Inc. 29 Fireplace Solutions by The Chimney Sweeper 28 Mutual of Omaha Bank/ CondoCerts 21 NPG Asphalt 31 Pacific Utility Audit 5 Pacific Western Bank

32 Poindexter & Company, CPAs 25 Popular Association Banking 29 Preferred Commercial Painting, Inc. 24 R.W. Stein Painting, Inc. 28 Reserve Studies Inc. 27 Sandra Macdonald Insurance 7 Select Painting & Construction 26 SKY Painting 9 SwedelsonGottlieb 13 Timothy Cline Insurance Agency, Inc. 11 Union Bank HOA Services 25 Witkin & Neal, Inc. 19 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Courtyard Marriott Long Beach, 500 E. 1st St., Long Beach, CA 90802

09-10 M-201 PMDP Course – Facilities Management Sheraton Gateway Hotel, Los Angeles

10 PCAM Luncheon – 11:30 a.m. City Club LA, 555 S. Flower St, 51st Floor, Los Angeles 90071

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

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

MARCH 02 San Gabriel Valley Educational Program for HOA Boards – 6:00 p.m. Pasadena Senior Center, 85 E. Holly Street, Pasadena, CA 91103

09 CEO Summit – 8:30 a.m. Terranea, Palos Verdes

22 South Bay Luncheon Program for HOA Boards & Managers – 11:30 a.m. DoubleTree by Hilton Torrance-South Bay, 21333 Hawthorne Blvd., Torrance, CA 90503

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

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

ADVERTISING INFORMATION Dimensions & Rates:

Artwork must not exceed the exact dimensions of that size ad. For more information, call the Chapter office: 818-500-8636. Ad Size

Ad Dimensions

Members

Non-Members

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 9.75" high (Vertical)

$800

$1,400

Payment: Rates are subject to change without notice. By credit card, check or cash. Minimum three-insertion contract. Rates subject to change without notice. Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 818-500-8636.

Location TBD

31 California Common Interest Development 8-Hour Law Course – 8:00 a.m. The Wilshire, 10580, Wilshire Blvd., Los Angeles, CA 90024

APRIL 06 South Bay HOA Marketplace – 5:30 p.m. DoubleTree by Hilton Torrance-South Bay, 21333 Hawthorne Blvd., Torrance, CA 90503

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

19 Skirball Luncheon Program for HOA Boards & Managers – 11:30 a.m. Skirball Cultural Center, 2701 N. Sepulveda Blvd., Los Angeles 90049

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

23-24 Legislative Day at the Capitol Hyatt Regency, Sacramento

28 CMCA Review – 8:30 a.m. Rockpointe HOA, 22350 Devonshire St., Chatsworth, CA 91311

www.cai-glac.org | November/December 2016

CAI-Greater Los Angeles Chapter

got credentials? If you have credentials, you have credibility. More than just letters after your name, CAI credentials identify you as the right professional for the job. They give employers confidence that you have the knowledge, experience and integrity to provide the best possible service to their associations. CAI provides opportunities for industry professionals to fast-track their companies and careers and stand out from the competition. If you hold a CAI credential, you are automatically listed in CAI’s online Directory of Credentialed Professionals, where potential employers and clients can find you—and see that you stand above the rest.

CrEdEnTIALs For ProFEssIonALs: z association management specialist (ams®) z Professional Community association manager (PCam®) z large-scale manager (lsm®)

z reserve specialist (rs™) z Community insurance and risk management specialist (Cirms®) CrEdEnTIALs For MAnAGEMEnT CoMPAnIEs: z accredited association management Company (aamC®)

Learn how to earn CAI credentials today . . . visit www.caionline.org/credentials or call (888) 224-4321 (M-F, 9–6:30 ET) for more information.

m-201 Facilities Management February 9-10, 2017 Sheraton Gateway Hotel 6101 W. Century Blvd. Los Angeles, CA 90045

LEARN HOW TO PRESERVE AND ENHANCE YOUR ASSOCIATION’S PROPERTY AND PREPARE FOR EMERGENCIES. This course provides a hands-on approach to help you analyze, evaluate, communicate and plan for property maintenance. Your community will benefit from your increased understanding of the various types of maintenance—routine, previous, emergency, corrective and scheduled. ADVANCE REGISTRATION IS REQUIRED

» Visit www.caionline.org/m201 to register for this course online. Register online four weeks ahead and receive a $25 discount.

coming

soon

OFFICIAL 2017 SPONSORS

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