Focus Magazine - April 2017 by CAI Greater Los Angeles Chapter

April 2017

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

Spring is Here: Spruce Up Your Career • All In To Win

A Taste of the Conference

• Take Time to Earn Professional Credentials • Is Your Debt Collection Process Fair?

SAVE THE DATE:

SFV HOA Marketplace June 1

CAI Golf Tournament MondAy, MAy 15, 2017

TPC Valencia

Pr for theize themebest decor at tee! ed

26550 Heritage View Lane • Valencia, CA 91381

SCHEDULE Registration & Putting Contest Putting Contest Shotgun Start Lunch Space Cantina Happy Hour Dinner, Raffle, Awards

8:00 – 9:00 a.m. 8:00 – 9:00 a.m. 9:00 a.m. 11:00 – 2:00 p.m. 2:30 p.m. 4:00 p.m.

ENTRY FEE / REGISTRATION

Sponsors

$200 per player—18 holes

SOUVENIR PHOTOS

Includes green fees, cart, swag bag, lunch, dinner and awards/prize drawings.

Securitas Security Services USA, Inc.

$55 Dinner & Social Only

CHAMPIONSHIP

Includes dinner and awards/prize drawings.

Pacific Western Bank STARSHIP LUNCH

MeterNet Sub-metering and Billing Solutions Tinnelly Law Group

CONTEST HOLE

CertaPro Painters of Pasadena Guard-Systems, Inc. Hi Tech Painting & Decorating SKY Painting Valley Alarm SWAG BAGS

Sherwin-Williams Paint MEET & GREET HOLE

ALLBRIGHT 1-(800) PAINTING American Technologies, Inc. Alliance Association Bank Animal & Insect Pest American Heritage Landscape Management BLOODY MARYS Dunn-Edwards Paints Servpro of Burbank, LandCare Chatsworth, Van Nuys Master Property Improvement & Crescenta Valley Co., Inc. Park West Landscape BREAKFAST Management Select Painting & Construction ProTec Building Services, Inc. PUTTING CONTEST SAX Insurance Agency McKenzie Rhody LLP Steve Little Insurance Agency Vet-Sec Protective Agency, Inc. CHEWBACCA BUFFET Vista Paint Corporation Steven G. Segal Insurance Whitestone Painters Agency BEVERAGE CART

GOLF TOWELS

Rose Paving Company

CLUB PRO

Nu Air Services, Inc. Valencia Management Group

2017 BOARD OF DIRECTORS OFFICERS Joanne Peña, CMCA®, AMS®, PCAM®, President Horizon Management Company, 310-543-1995 Greg Borzilleri, President Elect PCW Contracting Services, 949-285-7802 Donald Campbell, CMCA®, AMS®, PCAM®, Vice President Cabrini Villas HOA, 818-504-9600 Sascha Macias, CMCA®, AMS®, PCAM®, Secretary FirstService Residential, 310-574-7426 Meigan Everett, PCAM®, Treasurer Gold Coast Property Pros, 424-238-2333 DIRECTORS Teresa Agnew Roseman & Associates APC, 818-380-6700 Angel Fuerte FRESHCO Painters, Inc., 626-482-2698 Jose H. Glez, CIRMS™ Cline Agency Insurance Brokers, 800-966-9566 Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc., AAMC, 818-907-6622 Neda Nehouray, CMCA®, AMS® HOA Organizers, Inc., 818-778-3331 Dick Pruess Castlegate HOA, 626-584-0000 Lynn Ruger Warner Club Villas HOA, 818-703-7090 Lisa Tashjian, Esq. Beaumont Gitlin Tashjian, 866-788-9998

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2017 COMMITTEE CHAIRS COMMUNITY OUTREACH Miranda Legaspi, Platinum Security, Inc. Angelique Madrigal, Ross Morgan & Company, Inc. AAMC EDUCATION Linda Healey, CCAM®, PCAM®, The Californian on Wilshire Gregg Lotane, CCAM-HR®, PCAM®, The Wilshire FINANCE Michael Lewis, CMCA®, AMS®, PCAM®, Concept Seven, LLC GOLF TOURNAMENT Ryan Dudasik, Whitestone Painters Katie Mokhlessin, BrightView Landscape Services HOA MARKETPLACE Alan Denison, Elements Landscape Management LEGISLATIVE SUPPORT Matthew Plaxton, Esq., Tinnelly Law Group MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP PROGRAMS/LUNCHEONS Brian Moreno, Esq., CCAL, SwedelsonGottlieb Neda Nehouray, CMCA®, AMS®, HOA Organizers, Inc. 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 Teresa Agnew, Roseman & Associates APC 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 10 Ways to Improve Property Values 5 Support Your Local Government 6 Friend or Foe 7 Transgender in Common Interest Developments 10 News From Sacramento 18 Take Time to Earn Professional Credentials and Stand Out from the Crowd! 22 Is Your Debt Collection Process Fair?

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

NOTEWORTHY 12 14 16 20

CEO Summit 2017 Kick-Off Highlights from the South Bay HOA Marketplace Well Suited for the Job March 22 South Bay Luncheon

FYI 17 Super Heroes Bowling Tournament 25 CAI National Manager Education Course Schedule 26 Membership News 28 2017 Upcoming Events 28 Advertisers Index 28 Advertising Information 29 June 1 San Fernando Valley HOA Marketplace

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 © 2017. 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

Beach City Bungalows HOA Torrance, CA Photo Courtesy of Select Painting & Construction

STAY CONNECTED:

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

April 2017 | www.cai-glac.org

2017 CAI-GLAC Super Sponsors PLATINUM

and make sure that your communities’ needs are just as important, if not more, than the individual voters.

OW THAT SPRING IS HERE, it would be easy to simply focus on spring cleaning and upcoming maintenance (we will do that too!). But in this spring issue, we would also like to offer a sneak peek into the upcoming National Conference, and some of the issues that will be covered by our Chapter members who will be presenting.

NOTE

FROM THE EDITOR’S DESK

First, Robert Nordlund leads with 10 Ways to Improve Property Values. Robert offers a short list of immediate steps that associations can take to improve the value they display to potential buyers. Not only will it connect well with the current owners, but you can position yourself well with buyers too. Thomas Ware summarizes his presentation on why associations should support local governments. Often there will be some issues where association and government interests overlap. Reaching out to cities for their assistance could save association resources, and provide additional muscle in achieving association goals. Steven Roseman adds more to the association government analogy. Since associations are often treated as small cities or governments, it makes sense to learn how cities address similar problems. After making connections within your local government, associations can increase their presence

Jeffrey Beaumont leads us into a developing topic on how to address transgender issues within your community. While there are existing laws that require your community’s compliance, there are also practical issues which can help you manage risk and better serve your community. If you want more information on any of the above presentations, make your way to Las Vegas for the “All In to Win” Conference to hear your local heroes in person. Further on, Louie Brown continues to educate us all on the news from Sacramento. Take a look at some of the latest legislation and what CAI will be accomplishing at the Day at the Capitol. The next article reminds us of the importance of keeping your skills sharp. This article offers the benefits of the Coaching to Credentials manager mentoring program offered by CAI-GLAC. To wrap up the issue, I dusted off my keyboard to write a short article on the latest on association collections requirements. As if following the Civil Code procedures weren’t enough, a recent case from the Federal docket shows why you need to coordinate both state and federal collection practices. Otherwise you risk denying your owners with ALL the protections afforded to them under the law, both state and federal.

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 | April 2017

Warm regards, — Matthew Gardner, Esq. Editor

Accurate Termite & Pest Control ALLBRIGHT 1-800-PAINTING Alliance Association Bank Critter Busters, Inc. Ferris Painting, Inc. Fireplace Solutions The Chimney Sweeper Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Kasdan Lippsmith Weber Turner LLP Pacific Western Bank Payne Pest Management Preferred Commercial Painting, Inc. ProTec Building Services Select Painting & Construction, Inc. Sherwin-Williams Paint Silicon Beach Insurance Services Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services Whitestone Painters GOLD Beaumont Gitlin Tashjian Behr Paint Corporation Best Alliance Foreclosure & Lien Services Dunn-Edwards Paints Fenton, Grant, Mayfield, Kaneda & Litt, LLP McKenzie Rhody, LLP MeterNet Sub-metering & Billing Solutions Mutual of Omaha Bank/CondoCerts SKY Painting Steve Little Insurance Agency SwedelsonGottlieb Tinnelly Law Group Vista Paint Corporation SILVER

American Heritage Landscape Animal & Insect Pest Management, Inc. ASR Restoration & Construction Association Reserves, Inc. Benjamin Moore & Co. BrightView Landscape Services CertaPro Painters of Pasadena CertaPro Painters of Sherman Oaks Cline Agency Insurance Brokers Fenceworks, Inc. FRESHCO Painters, Inc. General Pavement Management, Inc. Miller Law Firm NuAir Services, Inc. Park West Landscape Management Rose Paving, Inc. Reserve Studies Incorporated SAX Insurance Agency Securitas Security Services USA, Inc. WICR Inc. Decking & Waterproofing Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

BRONZE

Association Lien Services Bentley Community Management, Inc. Berding & Weil, LLP Design Build Associates Master Property Improvement Co., Inc. Nautilus General Contractors Oakridge Landscape Poindexter and Company, CPAs R.E.A. Advisors, Inc. We thank our 2017 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

E STARTED THE YEAR OFF with an enlightening presentation at the Skirball Center in January with nationally-known communications specialist, Dr. Lillian Glass, who provided attendees with ways to deal with Toxic People. February’s luncheon was dynamic, bringing together three great speakers on the topic of earthquake retrofitting requirements in the City of Los Angeles. The March luncheon entitled “The Price is Right – HOA Edition” was both entertaining and educational with business partner cast members from different industry segments presenting current industry trends in a game show format. Our Annual PCAM® Luncheon in February recognized all of our Chapter’s PCAMs and celebrated seven new PCAM inductees. Our Coaching to Credentials program has been effective in bringing together a number of seasoned professionals with newer

managers interested in pursuing their PCAM® designation, and we look forward to celebrating another group of new inductees at the PCAM® luncheon next year. CAI-GLAC hosted its first CEO Summit on March 9 at the Terranea Resort in Rancho Palos Verdes, with a beautiful view of Catalina Island from our conference room and the adjoining patio area. The response from those in attendance was overwhelmingly positive, and plans for next year’s CEO Summit are already in the works. The first step on the Path to PCAM is obtaining the CMCA® certification. Managers, if you have taken CAI’s M-100 course or have five years of community association management experience, and want to prepare for the CMCA exam, CAIGLAC is offering a free CMCA review session on May 12 at Rockpointe HOA in Chatsworth. CAI’s Annual Conference and Exposition at Caesars Palace in Las Vegas on May 3-6 will provide attendees with a variety of educational sessions, as well as a number of networking opportunities and social events. As always, there will be a Chapter Dinner on Thursday evening, May 4, to bring the members of CAI-GLAC together. If you plan to go to Conference, be sure to sign up for this dinner at TREVI Italian Restaurant in the Forum Shops at Caesar’s Palace. Our Annual Golf Tournament will be held on Monday, May 15, at TPC Valencia, and this year’s theme is Space Wars – Galaxy of Golf. Tee sponsors are encouraged to be creative, as there will be a prize for the best theme-decorated tee. And everyone will undoubtedly enjoy exceptionally beautiful scenery from the course after our recent rains. I hope to see you there! — Joanne Peña 2017 Chapter President

Outstanding Board Member Leadership Award Betsy Koehler Wins National Outstanding Board Member Leadership Award

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

CAI-Greater Los Angeles Chapter

CAI’s National Community Association Volunteers Committee (CAVC) is proud to announce that Betsey Koehler of Harbor Gate Homeowners Association in San Pedro is one of six recipients of the 2017 Outstanding Board Member Leadership Award. The CAVC received more than 150 nominations for this coveted award! This year’s volunteers were nominated by their community associations, colleagues, clients, and acquaintances as homeowners who go above and beyond to serve their communities. Betsy will be honored at the CAI National May Conference in Las Vegas. April 2017 | www.cai-glac.org

10 Ways to Improve Property Values By Robert M. Nordlund, PE, RS Author’s note: This article is condensed from a longer article published in CAI’s Common Ground magazine (Jan/Feb 2017), and is a summary of what will be presented live at the CAI National Conference in Las Vegas, NV on May 4.

Are you coming to the Conference? Keeping up-to-date with current industry trends and information is the foundation of professional and responsible community management. The CAI National Conference this year in Las Vegas on May 3-6 is a great opportunity to gain a wealth of knowledge on a variety of subjects. There will be something for everyone. To give you a taste of what is to come, we invite you to read the next four articles authored by experts presenting at the Conference who are also members of our chapter.

After 30 years in this industry educating other professionals, clients, and prospects about how to make wise decisions with respect to reserve funding, I’m considering a different, age-old strategy: Change behavior by providing a financial incentive! While it’s hard to dispute the adage, “In real estate, only three things matter: location, location, and location,” there are actions a community association board can and should take to enhance the value of its owners’ homes. Since, for most homeowners, housing is their largest single asset, when the board and owners focus on this end result (let’s improve property values!), it creates a strong and unifying incentive that draws the community forward. A board that acts to maximize home values makes a large and lasting difference in the financial best interests of its members. What can a board do?

CAI Annual Conference & Exposition May 3–6, 2017 Caesars Palace Las Vegas 4

www.cai-glac.org | April 2017

Budget accurately & honestly (Operating and Reserves). Assess the funds necessary to maximize curb appeal, minimize or eliminate (costly) deferred maintenance, and thrive. A dated lobby or a regularly-broken entry gate leaks more money than a broken pipe. Fortunately, the result of slightly higher assessments (hundreds of dollars per year) is rewarded with thousands of dollars of improved home value. But more on that later. Avoid special assessments. They are disruptive and divisive, and in most cases are predictable years in advance. Real estate agents familiar with your neighborhood know what goes on in your association, and they

discourage strong sales offers for homes in associations with a history of special assessments. Manage well (professionally and transparently). The association belongs to the owners, not to the board or management. Create a smooth, well-oiled machine. Publish meeting agendas, minutes, budgets, newsletters, etc. Schedule social events and create a culture of community, with active volunteers being trained up to be board members, all contributing

“ In real estate, only three things matter: location, location, and location,” there are actions a community association board can and should take to enhance the value of its owners’ homes.”

to maximized home values and the improved future of the association. Employ a credentialed manager who helps move the association forward, not just a professional “babysitter.” Treat real estate agents as your sales representatives, not adversaries. All of these things take time or money, but a healthy, well-run community is inviting. Buyers will pay more to join such a welcoming community. CAI-Greater Los Angeles Chapter

Hire knowledgeable business partners. Remember that your goal is not to save a few bucks here or there. Your goal is to raise home values by thousands of dollars. Use business partners and vendors who are experts in their field, familiar with community associations, and who are appropriately licensed or credentialed. Think of your association as a team. Only hire “varsity” players… all-stars who can contribute to your success. Much of the above is just general “good advice,” but we’ve been able to conclusively measure the influence of one specific aspect of association behavior on home values. In a controlled study recently completed, we found that home values in associations with well-funded reserves (above 70% Funded) averaged 12.6% higher than similar homes in associations with poorly-funded reserves (0-30% Funded). Well-funded reserves mean maximized curb appeal instead of ugly and budget-draining deferred maintenance and a history of special assessments. “Strong Reserves” typically exist in associations that are managed well. The evidence shows that buyers are willing to pay more for homes in a well-run and financially stable association. It may cost an extra $20 to $60/month in homeowner assessments ($240 to $720 per year), but it leads to increased home values. A 12.6% increase in a $325,000 condo is a sweet $40,950. What a tremendous return on investment from an owner’s additional $240 to $720 per year. Now that’s a nice financial incentive! Robert Nordlund, RS, PE is the founder and CEO of Association Reserves, Inc., a full-service reserve studies company based in Calabasas with regional offices scattered throughout the United States. He can be reached at rnordlund@reservestudy.com.

CAI-Greater Los Angeles Chapter

Support Your Local Government: Synchronizing with Municipalities to Enforce HOA Governing Documents By Thomas M. Ware II, Esq. Homeowners associations are in effect “a quasi-government entity paralleling in almost every case the powers, duties, and responsibilities of a municipal government.” (Cohen v. Kite Hill Comm. Assn. (1983) 142 Cal.App.3d 642, 651 [citations omitted].) “As a ‘minigovernment,’ the association provides to its members, in almost every case, utility services, road maintenance, street and common area lighting, and refuse removal.” (Id.) Like a municipality, homeowners associations can be charged with regulating construction, use restrictions analogous to zoning regulations, traffic and parking, nuisances, and resident safety. Despite their similarities, many associations view their local municipalities suspiciously. They limit their interactions to complaining about governmental decisions. Associations adopting such an approach may be missing the boat. Local municipalities often are interested in fostering a symbiotic relationship with homeowners associations. As stated by Patrick Muñoz, Co-Chair of Rutan & Tucker’s Government Relations Department and City Attorney for multiple cities in Southern California, “while cities generally are not bound by community associations’ governing documents, cities recognize that homeowners associations are comprised of constituents. Furthermore, there is a public interest in their effective selfgovernance as they carry out traditional governmental services.”

Local municipalities have professional expertise, resources, and enforcement options that can be used to aid l ay directors’ enforcement of deed restrictions and operating rules. For example, the increase of short term

rentals including Airbnb recently has become a topic of consternation in many communities. 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. Shortterm 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 longterm consequences of abuse. (Watts v. Oak Shores Community Assn. (2015) 235 Cal.App.4th 466, 473.) These concerns often are shared by the local municipalities. CONTINUED ON PAGE 6

April 2017 | www.cai-glac.org

All In To Win... Are You Coming to the Conference?

tools can be a viable method to abate nuisances associated with transient use.

CONTINUED FROM PAGE 5

City intervention also can be useful in addressing problems associated with sober living homes, i.e., drug and alcohol rehabilitation centers. The discovery of a sober-living home uniformly results in homeowner demands to prohibit such business operations in order to protect the safety of members and their respective property values. Unfortunately, associations typically cannot enforce deed restrictions prohibiting business operations and/or limiting occupation to single family use to bar sober living homes. A licensed sober-living home that serves six or fewer persons is deemed to be a “residential” use irrespective of whether the center is a for-profit operation. (See, Health & Safety Code §§ 11834.01 & 11834.25.) Cities, however, have enforcement options that homeowners associations do not. Cities can adopt zoning laws regulating where such homes may be located, requiring that soberliving operations comply with licensing

Some cities have adopted “model ordinances” which provide that the city will permit such enterprises only “if the homeowners association permits” such use. (These types of ordinances also can be used to withhold certain types of building permits if the proposed construction violates the association’s governing documents.) Zoning laws may prohibit transient rentals in certain residential communities. Municipalities can, and often do, prohibit short term rentals if the owner fails to obtain a business license. Furthermore, cities have the power to impose bed/hotel taxes on owners who derive short term rental income. Such taxes will discourage many owners from renting their units for thirty days or less. For those associations that do not have restrictions that expressly bar such activity, enlisting a sympathetic municipality to exercise its enforcement

requirements, and even enforce parking laws that severely curtail the profitability of such businesses (i.e., the equivalent of convicting Al Capone on tax evasion charges). These are just a few examples of how cities can help homeowners associations address operational problems. The key is opening up a constructive line of communication, and developing a working relationship, with the local municipality. Doing so can provide the association with additional tools to effectively address many other troublesome issues including granny flats (second or accessory dwelling units), landscape maintenance, traffic, safety, and neighbor disputes. Thomas M. Ware II is a partner in the law firm of Kulik Gottesman Siegel & Ware LLP. Since 1989, Tom’s practice has focused on the representation of non-profit corporations, homeowners associations, and their volunteer directors and officers. He can be reached at tware@kgswlaw.com.

Friend or Foe Working with Government Agencies at a State or Local Level  By Steven A. Roseman, Esq. As the number of homeowners associations grows in California, and more and more individuals live within those communities, the influence and voting power yielded by those residents increases accordingly. Laws at all levels, and the need to micromanage homeowners associations at almost all governmental levels, has led to situations that are sometimes prejudicial and adverse to the efficient and effective management of homeowners associations. It is inevitable that the directors and managers of homeowners associations are required to interact with government agencies, whether at a city, county, state or federal level. Understanding the inner workings of these bureaucracies and forging relationships within those agencies, will

www.cai-glac.org | April 2017

ensure that homeowners associations are dealt a fair hand at all levels of government and that the “foe” can be your “friend.” There is often a misconceived notion that the sphere of influence of local communities cannot impact legislation at a state level. Often, legislation is crafted on the experiences of a few that convince legislators that a new law is needed to address a situation. Legislation, without the involvement and input of homeowners associations, leads to adverse unintended consequences and bad law. The only effective way to combat this situation, is for homeowners associations to actively participate in the legislative process. Signing up for and participating in the California Legislative Action Committee (CLAC),

will provide homeowners associations with tools necessary to impact and make a difference at the state level of government. There are certain services which are provided and maintained by the local government which have a significant impact on, and benefit the community and the residents. Maintenance of street lights, sewer, electricity, sidewalks and garbage pickups are a few of the services that directly impact communities. The adequate performance of those CAI-Greater Los Angeles Chapter

services can be greatly enhanced when community members and homeowners association boards of directors are able to seek assistance from local city and county agencies. Communities and homeowners associations can turn to these agencies for a wide variety of reasons ranging from asking for help from local law enforcement to laws that regulate solicitation and short term rentals, and with sufficient involvement, place measures on the local ballot to be approved by the voters in such community. Public safety, including fire department, law enforcement, health and social services, and animal services are likely handled at a county level. Those departments are helpful with enforcement of animal nuisance issues, hoarding and nuisance/ disturbances-of-the-peace (trespassing, noise, etc.). At a local city level, a typical city structure includes the following departments: Public Works/Public Services, Community Development/Planning, Recreation/ Community Services, City Clerk, City Manager’s Office and City Attorney’s Office. Every city is organized a little differently but typically, the first

place to contact a city on matters that will likely affect homeowners associations is the Public Services/Works Department. Lease laws, smoking ordinances, red curb demarcations, speed bumps etc. and matters relating to hoarding and health and safety will likely be handled by the city code enforcement department, unless specifically designated to county fire department or health. A good relationship with those agencies will result in the ability of the homeowners association to ensure items, such as those previously discussed, are addressed. City representatives, whether city council members or city employees, at the invitation of a homeowners association board of directors, will attend board meetings to address community concerns. Also, attendance at the city council meetings, as a board member, whose homeowners association represents “X” number of voting residents, will provide a platform for voicing that HOA’s matters of concern that the elected officials will take seriously. The power of the vote at local level is significant in “persuading” local government officials to work with homeowners associations.

Most cities have a listing of all the homeowners associations within such city. Seeking local government assistance in enforcement and approval of architectural standards and covenants by homeowners associations before a city will issue building permits can prove to be an invaluable enforcement tool available to a homeowners association. Establishing and nurturing relationships at all levels of government, but specifically local government, will ensure that when that need arises, homeowners associations will have those allies that will work together to better their community and its residents. In this way, homeowners associations can harness their power, and seek to ensure that the voice of homeowners associations are heard, and dealt a fair hand at all levels of government, and that the “foe” will be your “friend.” Steven Roseman, Esq. is the founder and managing partner in the law firm Roseman & Associates, APC, which specializes in representing community associations in Southern California, and serves as Planning Commissioner for the City of Calabasas. He can be reached at roseman@ raattorneys.com.

Transgender in Common Interest Developments By Jeffrey A. Beaumont, Esq., CCAL In an ever-changing and accepting society, transgender is a relevant issue that should be understood by communities and the volunteer directors and managers that operate and manage them. Although the word “transgender” is certainly not new to our vocabulary, we are hearing and learning more about transgender individuals through the news, social media and celebrities going public with their gender identity. Transgender people come from all walks of life: from moms and dads, to brothers and sisters, to sons and daughters. Transgender people can be your neighbors, fellow board members, coworkers and the vendors you work with. As professionals and volunteers serving associations, we need to learn how to CAI-Greater Los Angeles Chapter

communicate with transgender persons serving on the board, vendors working with the board and transgender residents living in the community. It is important to understand what transgender is and proper terminology. Transgender is a person’s internal sense of gender, which may be different from one’s assigned sex at birth. The Los Angeles LGBT (Lesbian, Gay, Bisexual, and Transgender) Center suggests that transgender should always be used as an adjective. For example, “Susan is a transgender woman.” When unsure of the correct pronoun to use, stick to the person’s first name or “they.” Anti-discrimination laws protect transgender persons, and associations must take steps to limit exposure to

liability for claims of discrimination, balancing the need to make transgender people feel welcome in the community with privacy concerns of other residents. Recent changes to Federal law may now place an affirmative duty on associations, as housing providers, to take action to prevent “hostile environment harassment.” With that background, what do community leaders need to know and understand with respect to transgender people in their community? There are the obvious issues such as access to: amenities, restrooms, showers and locker rooms, saunas and steam rooms and spa services. Unequal CONTINUED ON PAGE 8

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All In To Win... Are You Coming to the Conference? CONTINUED FROM PAGE 7

treatment of transgender persons exposes the association, board members and management to liability for claims, such as failure to enforce the governing documents, selective enforcement of the governing documents, failure to provide services, failure to provide reasonable accommodations and/or discrimination. Then there are the not-so obvious issues, such as preventing hostile living environments, disparate impact (i.e., a policy that is not, on its face, discriminatory, but has a disproportionate, adverse impact on a protected class, such as sex, race, religion, gender expression, etc.) and employment discrimination. To manage risk to the association, and the individuals serving the community, the first step is to treat people fairly and with respect. The second step is to ensure everyone (board members, management and residents) is aware of association

policies regarding transgender people, which policies and procedures should be memorialized in writing and distributed to the membership, through the adoption of rules, policies or board resolutions. Boards should also evaluate the association’s forms, solicitation of information, confidentiality and birth names/chosen names. Boards should consider taking proactive steps to educate directors and members on transgender issues. Education is key to staying ahead of the curve and reducing risk. Directors, staff and management should learn proper etiquette when interacting with residents, fellow directors, colleagues, staff, and vendors. Boards should learn about, and understand, anti-discrimination and anti-harassment laws to avoid unintentional violations of law. Associations with employees should consider working with legal counsel to update employee handbooks and policies and procedures to address these issues. This article touches briefly on the relevant issues that transgender

“ Education is key to staying ahead of the curve and reducing risk.” individuals have in associations. To learn more, join us at CAI’s Annual National Conference in Las Vegas and at the Chapter’s August Luncheon to hear Drian Juarez, a recognized expert on transgender issues, and I identify best practices for association operations that accommodate transgender residents and their legal right to live free from discrimination. You don’t want to miss this cutting-edge program! Jeffrey A. Beaumont, Esq., a senior partner with Beaumont Gitlin Tashjian, has focused his entire legal career on the representation of community associations. A past president of CAI-GLAC, Jeff may be reached at jbeaumont@ bgtlawyers.com.

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CAI-Greater Los Angeles Chapter

REPRESENTING HOMEOWNER ASSOCIATIONS THROUGHOUT SOUTHERN CALIFORNIA SINCE 1982:

We provide our clients with a full range of services including: • FINANCIAL MANAGEMENT • ADMINISTRATIVE MANAGEMENT • FULL SERVICE HOA MANAGEMENT As pioneers in HOA Management, we are constantly striving to provide the highest quality service to our clients while acting in the most professional and courteous manner; conducting our business with genuine care and regard for the communities we serve. Being one of the biggest has not made us the best; being the best has made us one of the biggest!

CAI-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

NEWS

FROM SACRAMENTO

egislators in Sacramento have been very busy with nearly 2,400 bills introduced this session. Any bill introduced in 2017 with the goal of becoming law this season must be heard in a policy committee no later than April 28, 2017. As such, our CLAC Legislative Team is pouring over these bills to determine if there are any of concern to common interest developments (“CID”). To that end, here are a number of bills affecting CIDs: AB 534 (Gallagher) – CID Mechanics Liens This bill would prohibit a mechanics lien from being filed against any other owner in a CID unless consent was provided or a request was made, except in the case of emergency repairs. Additionally, this bill would deem the association to be an agent of the owners of the separate interests in the CID with respect to work on common area. AB 690 (Quirk-Silva) CID: managers: conflicts of interest This bill would require management firms to disclose certain information about potential conflicts of interest and whether the management firm receive any referral fees or financial benefits from service providers. It requires disclosure of all fees during the life of the contract and requires certain disclosures be made to all of the membership, as opposed to just the HOA board. AB 731 (Chen) – Personal income taxes: deductions; homeowners’ association assessments The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in computing the income that is subject to the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2017, would provide a tax credit of up to $3,000 for assessments paid by a qualified tax payer, which is defined as an individual with gross taxable income of less than $150,000 per year. AB 1412 (Choi) – Common interest developments; volunteer officers; liability Currently, volunteer officers or directors of a residential CID are generally immune from liability if certain criteria are met. This bill would extend the limitation on the personal liability to a volunteer officer or director of a development that is mixed use in which a volunteer officer or volunteer director does not own more than two residential separate interests. AB 1426 (Irwin) – Common interest developments; association governance; elections This bill is a re-introduction of AB 1799 from last session and addresses the issue of uncontested board elections. In sum, this bill would amend Civil Code section 5100 to

www.cai-glac.org | April 2017

exempt associations from having to comply with the balloting procedures set forth in the Davis-Stirling Common Interest Development Act where an election of directors is uncontested. SB 407 (Wieckowski) CID: noncommercial solicitation This bill would prohibit an association from enacting a rule or restriction prohibiting an owner from contacting other owners for the purpose of providing information about a candidate for public office or an office within the association. Louie Brown is our Legislative Advocate for CAI’s California Legislative Action Committee and may be reached at lbrown@kscsacramento.com.

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

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

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

CAI-Greater Los Angeles Chapter

How can I get involved?

n addition to making a donation and your community making a donation, you may consider joining one of the various committees:

a. L egislative Strategy & Research Committee: The Legislative Strategy & Research Committee (LSRC) has been created to support the legislative agenda of CLAC through forward planning, development of strategy, and research. The LSRC plays a lead role in supporting CLAC’s legislative agenda by soliciting, tracking and evaluating ideas from CAI supporters in California. The LSRC will also handle research projects as needed in order to support CLAC’s more ambitious long-term goals. As supporters of

CLAC, your input, suggestions, and ideas for legislation are vital to the success of the LSRC. Please email any questions, comments, suggestions and/or ideas to LSRC@caiclac.com or complete the “There Ought to be a Law” suggestion form. b. Public Relations Committee: This committee is responsible for increasing public awareness of CLAC through use of social and traditional media, and for mobilizing grass roots emergency responses to pending legislation. They also help to plan and organize our annual Legislative Day at the Capitol. If you are interested in participating in this committee, please contact our PR Chair at PRChair@caiclac. com c. Topic Subcommittees: Topic Subcommittees have been established to take a leadership role in analyzing legislation assigned to them by the Legislative Advocate, recommending amendments and a position on each assigned legislation, and staying in close communication with the Legislative Advocate. The various topics include Assessments & Foreclosures; Board Rights & Responsibilities; Builder, Developer, Contractor; CA Law Revision Commission; Dispute Resolution; Environment & Conservation; Management; and Governing Documents. d. Ad Hoc Committees: New committees are formed as needed to participate in discussions regarding new bills that affect community associations in California.

OUR THANKS TO 2017 CAI-CLAC CONTRIBUTORS JANUARY 1 – MARCH 31

GOAL: $24,543

46%

of goal as of 03/31/17 $11,314

CAI-Greater Los Angeles Chapter

100 Marina Shores HOA 101 Ocean Condominium HOA 446 San Vicente HOA 515 San Vicente HOA 909 El Centro, Inc. 914 Lincoln Blvd. HOA 948 20th Street HOA 1030 3rd Street, Inc. 1242 Berkeley Street HOA 1715 California Ave HOA 1835 7th Street HOA 2050 Artesia HOA 2641 4th Street HOA 4424 Whitsett Avenue HOA 4820 Bellflower HOA 11767 Sunset Blvd. Association 15206 Burbank Blvd. HOA Armour Lane Condominium Avis HOA Avocado Glen HOA Bodger Park Condominiums HOA Budlong Villas HOA, Inc. Cardiff Court HOA, Inc. Casa de Suenos CA Casa De Valley View OA, Inc.

Cedar Glen HOA Culver Centrale HOA Culver City Gardens (Lincoln Archways) Design Villas HOA Eight on Twenty HOA Florwood Estates HOA Gorham Park HOA Hermosa surf Condos, Inc. Hillcrest Meadows HOA, Inc. Hillcrest Rolling Hills HOA, Inc. Hopi HOA Idaho Villas HOA Irena Vista OA Kelton Arms COA Kester Villas HOA Lawford HOA (Hayvenhurst CA) Longfellow Village OA Marina Village HOA Monterey Pines HOA Oak Hill Condominium HOA Ocean West HOA Pacific Colony HOA Pacific View Condominiums HOA Park Crest HOA Polynesian OA

Rancho Glen HOA S. Manhattan Place HOA Seascape-Redondo HOA, Inc. Silver Spur Court HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Textile Building OA The 555 Evergreen Street HOA The 3219 Colorado Assoc. The Angels Landing Group 7 Fountains The Vista Pacifica HOA Villa Cordoba HOA VIP Goshen Association Virgil Courts HOA Vogue Condominium Association West Wind Townhomes HOA Westside Townhouses HOA Wilshire Selby Towers East CA, Inc. Windsor Estates COA Woodbury Maintenance Corp. Yale St. HOA

April 2017 | www.cai-glac.org

or the first time, CAI-Greater Los Angeles Chapter (CAI-GLAC), a leader in building better communities and educating professional community managers, hosted a special, one-day high level summit for management company CEOs and senior executives at the Terranea Resort in Rancho Palos Verdes. Experts updated 48 attendees on the latest management and technology trends and provided practical tips to improve their day-to-day operations and keep them competitive. Our thanks to the sponsors listed below who made this day possible. GRACIOUSLY SPONSORED BY:

Alliance Association Bank Berding & Weil LLP BrightView Landscape Services Broadband Planning CINC Systems Kasdan Lippsmith Weber Turner LLP MeterNet Metering & Billing Solutions Mutual of Omaha Bank/CondoCerts Pacific Premier HOA & Property Banking Tinnelly Law Group Union Bank HOA Services

www.cai-glac.org | April 2017

CAI-Greater Los Angeles Chapter

THE GREAT ESCAPE Three Contests… Three Prizes

CAI-GLAC’s 2017 Membership Recruiter Contests Share the benefits of CAI membership with colleagues and friends during 2017 and win!

GRAND PRIZE 3-Day, 2-Night Vacation Package ($1,000 Value) Member with the highest number of points as of December 31, 2017 will be awarded the Grand Prize. (Minimum 20 pts. needed to qualify.)

RECRUITER RAFFLE: Evening Out On The Town ($500 Value) All 2017 recruiters (except the Grand Prize winner) who have achieved a minimum of 10 points will go into a raffle drawing held in January 2018 (when all the 2017 results are in).

RECRUITER-OF-THE-MONTH: $50 Gift Certificate The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a $50 gift certificate.

For rules and more information, visit www.cai-glac.org CURRENT SPONSOR Fenton Grant Mayfield Kaneda & Litt, LLP

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

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CAI-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

Community Associations Institute Greater Los Angeles Chapter Presents

THURSDAY APRIL 6

te on Ho l t l i H ay Dou eTree by outh B bl -S e c n Torra 21333 Hawthorne Blvd. Torrance, CA 90503

ore than 115 HOA board members and managers attended our April 6 Homeowners Association Marketplace at the DoubleTree Hotel-Torrance/South Bay. This was the first 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, Sandra Gottlieb, Esq. of SwedelsonGottlieb and Tracy Neal, Esq. of Beaumont Gitlin Tashjian talked about ways to handle discrimination situations in community associations.

We sincerely appreciate the ingenuity and hard work of our HOA Marketplace Committee members who planned this event: Committee Co-chairs Alan Denison (Elements Landscape Management) and David San Filippo (Critter Busters, Inc.), Omar Bayter (Village Northridge HOA), Jose Glez, CIRMS™ (Cline Brokers Insurance Agency), Sascha Macias, CMCA®, AMS®, PCAM® (FirstService Residential), Jeremiah Masopust (Servpro of Burbank, Chatsworth, Stevenson Ranch, Van Nuys & Crescenta Valley) and Michael Valenzuela (Vista Paint Corporation).

OUR THANKS TO OUR SPONSORS

EVENT SPONSOR

A.ALLBRIGHT 1-(800) PAINTING

BAR SPONSORS

LandCare Mulholland Security Centers, Inc

SHOW BAGS

Vista Paint Corporation

OUR THANKS TO OUR EXHIBITORS ASPHALT PAVING, MAINTENANCE & SEAL COAT

Rose Paving Company, Inc. ASSESSMENT RECOVERY

S.B.S. Lien Services ATTORNEYS

Beaumont Gitlin Tashjian Berding & Weil LLP Kasdan Lippsmith Weber Turner LLP Roseman & Associates APC SwedelsonGottlieb Tinnelly Law Group BANKING

Alliance Association Bank Mutual of Omaha Bank/CondoCerts Union Bank HOA Services CHIMNEY CLEANING

Fireplace Solutions The Chimney Sweeper CONCRETE REPAIR

BPR, Inc.

CONSTRUCTION MANAGEMENT

Design Build Associates CONTRACTORS

Alliance Building & Construction Services CBCI Construction, Inc. DECKING

WICR Inc. Decking & Waterproofing INSURANCE

Brian Berce Insurance Agency, Inc. Cline Agency Insurance Brokers SAX Insurance Agency Silicon Beach Insurance Services Steven G. Segal Insurance Agency, Inc. LANDSCAPING

American Heritage Landscape BrightView Landscape Services LandCare METERING PRODUCTS & SERVICES

MeterNet Sub-Metering and Billing Solutions PAINT SUPPLIERS

Behr Paint Corporation Benjamin Moore & Co. Dunn-Edwards Paints Sherwin-Williams Paint Vista Paint Corporation PAINTING CONTRACTORS

ALLBRIGHT 1-800 PAINTING CertaPro Painters of Sherman Oaks FRESHCO Painters, Inc. Preferred Commercial Painting, Inc. Select Painting & Construction Whitestone Painters PEST/TERMITE CONTROL

Accurate Termite & Pest Control Critter Busters, Inc. Payne Pest Management POOL/PATIO FURNITURE

Patio Products USA RESERVE STUDIES

Association Reserves Inc. Reserve Studies Inc. SECURITY

Guard-Systems Inc. SECURITY CAMERAS

Mulholland Security Centers, Inc. TELECOMMUNICATIONS

Kings III Emergency Communications

Well Suited for the Job

nce again CAI-GLAC ran a very successful clothing drive at its January, February and March luncheons to benefit Well Suited for the Job, gathering more than 250 professional outfits, suits, shoes and accessories for donation. Well Suited® is a nonprofit organization that provides free interview-appropriate clothing, apparel, shoes and advice to both men and women in Los Angeles County and surrounding areas. Its purpose is to promote professional development to low-income individuals seeking professional growth. Well Suited® provides professional wardrobes, career consultations, and operates career centers to provide its clients with the tools necessary to thrive in their job search.

Our thanks to Community Outreach Committee members for organizing this drive: Co-chairs Miranda Legaspi (Platinum Security, Inc.) and Angelique Madrigal (Ross Morgan & Company, Inc. AAMC), Niki Bossonis (WICR Inc. Decking & Waterproofing) Meigan Everett, PCAM® (Gold Coast Property Pros), Angel Fuerte (FRESHCO Painters, Inc.), Laurie Hargrove (KONE, Inc.) and Jeanie La Croix (Environmental Testing Associates, Inc.).

Gain an HOA banking team that’s been around the block With over 25 years of experience in the community association industry, our team delivers the solutions and the support to meet your unique needs. From accelerated payment processing to the latest in fraud protection, we help simplify the overall management of your associations’ banking on our easy-to-use 24/7 online platform.

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Learn how we can help streamline your financial operations at HOAbankservices.com.

Financing subject to credit and collateral approval. Other restrictions may apply. Terms and conditions subject to change.

www.cai-glac.org | April 2017

CAI-Greater Los Angeles Chapter

Bowling Tournament

Friday, July 28, 2017

Bowlmor

Come and be part of a team… No one is a serious bowler… Just out to have a good time with industry friends.

3545 E. Foothill Blvd. Pasadena, CA 91107

Current Sponsors SOCKS

Rose Paving Company, Inc. SOUVENIR PHOTOS

Nu Air Services, Inc. Park West Landscape Management

6:00 p.m. Registration 6:30 p.m. Tournament

NAPKINS

Guard-Systems, Inc.

No Host Bar FREE PARKING & hors d’oeuvres

BUFFET

Alliance Association Bank

Team of 4 $400 Single Bowlers $100 pp Spectators $ 50 pp

Bowling Teams Alliance Environmental Group American Heritage Landscape Association Reserves, Inc. CertaPro Painters of Pasadena CertaPro Painters of Sherman Oaks Dunn-Edwards Paints

CAI-Greater Los Angeles Chapter

FRESHCO Painters, Inc. Jackson Insurance Services ProTec Building Services, Inc. Reconstruction Experts, Inc. Select Painting & Construction

April 2017 | www.cai-glac.org

A TAKE TIME TO EARN

T THE LAS VEGAS CAI NATIONAL CONFERENCE we will be honoring managers from all over the country who have earned their professional credentials. Earning these credentials is no easy task. It takes time, perseverance and the dedication to making community management a career choice.

PROFESSIONAL

CREDENTIALS AND STAND OUT FROM THE CROWD!

But look around…with so many job opportunities at all management levels just in the Los Angeles area, why not take the necessary steps to ensure a solid future in this industry? CAI-GLAC wants to help you succeed. About a year ago we introduced Coaching to Credentials as a resource

to our community manager members. The goal of the program is to encourage managers (through peerto-peer mentorship) to achieve CAI designations—ultimately the PCAM® designation. Through the program, an experienced professional manager is paired with a manager newer to the industry or one looking simply for guidance. The scope and duration of the mentoring relationship is determined between the mentor and the protégé. We encourage you to take part in this program, whether you are just starting out, don’t know the next step, or need a push to submit your PCAM application for the case study. It often helps to have a “buddy” to advise and motivate you, and we have more than 60 managers with PCAMs who are experienced and able to do this. STEP ONE. Take the plunge and pass the M-100 course (Introduction to Community Association Management), which qualifies you to sit for the CMCA® certification exam.

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

www.cai-glac.org | April 2017

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

CAI-Greater Los Angeles Chapter

STEP TWO. Prep for the CMCA exam. If you are not sure that you have studied enough for this exam, plan to attend our CMCA Review Session on May 12 at Rockpointe Homeowners Association in Chatsworth. This is an 8 a.m. – 2 p.m. review of materials that you might expect to see on the exam. No guarantees that there won’t be additional subjects on that exam, but this will give you a good idea of what areas may require more study. We also offer an online practice test that you can take twice to measure your success before the big event.

WHAT DOES A MENTOR DO? ■■ Helps to identify

specific goals.

■■ Provides career

guidance.

■■ Provides vision

and insight.

■■ Offers support and

advice about CAI courses.

STEP THREE. Schedule and pass your CMCA exam at a local test center or plan to sit for the pencil and paper version in our Chapter Office on June 2. Oh…those letters will look beautiful after your name and on your business card!

■■ Promotes the value

of credentials.

■■ Serves as a solid

role model.

STEP FOUR. Join our Coaching to Credentials to talk about next steps and our scholarship program for 200-level courses taken in the Los Angeles area. And take it away from there…

See 2017 Manager Course Schedule for the rest of 2017 on page 25.

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Martha Martinez, Relationship Manager 310.887.8515 | mlmartinez@pacificwesternbank.com

pacificwesternbank.com

CAI-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

March 22

South Bay Luncheon

www.cai-glac.org | April 2017

CAI-Greater Los Angeles Chapter

The March luncheon entitled “The Price is Right -- HOA Edition” was both entertaining and educational with business partner cast members from different industry segments presenting current industry trends in a game show format.

CAI-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

Is Your Debt Collection Process Fair?

California Civil Code vs. FDCPA  Matthew A. Gardner, Esq.

www.cai-glac.org | April 2017

IT ISN’T OFTEN THAT COMMUNITY INTEREST DEVELOPMENTS IN THE STATE OF CALIFORNIA FIND THEMSELVES WORRYING ABOUT FEDERAL COMPLIANCE. BUT THERE ARE TIMES WHEN IT HELPS TO REMEMBER THAT LAWS ENACTED AT THE NATIONAL LEVEL CAN IMPACT HOW WE WORK IN OUR COMMUNITIES. THIS YEAR, THAT MIGHT MEAN LOOKING AT YOUR COLLECTION ACTIONS AND HOW YOU COORDINATE YOUR CALIFORNIA RESPONSIBILITY WITH THE FEDERAL REQUIREMENTS. IT ARISES FROM A CASE FROM THE NINTH CIRCUIT COURT OF APPEALS PUBLISHED IN JANUARY 2017 (MASHIRI V. EPSTEN GRINNELL & HOWELL, NO. 14-56927 (9TH CIR. 2017)).

CAI-Greater Los Angeles Chapter

The facts of the case would not shock anyone familiar with Civil Code collection actions. A community association located in San Diego proceeded with standard collection practice, and notified the owner about the existence of a delinquent assessment. As part of the initiation of the California Civil Code Section 5660 notice, the letter stated that the owner had 35 days to bring the account current before a lien would be recorded against the property. In a separate paragraph, the letter also stated that the owner had the right to dispute the validity of the debt within 30 days. Both sections accurately reflect the requirements for debt collection under both California and Federal law. Within 20 days of the mailing of the letter, the owner requested the Association to validate the debt, and show proof that the Association properly notified the owner about the missing assessment. Although the owner did receive a response to the request for validation, there was no new information or proof of notice. When the account remained delinquent 48 days after the initial notice, a lien was recorded against the property. According to Civil Code Section 5675, the owner received a copy of the recorded lien within 10 days. The owner filed suit in Federal Court, alleging both California and Federal violations of respective debt collection requirements. Initially, the trial court agreed with the association’s position. The notices all complied with both

CAI-Greater Los Angeles Chapter

California and Federal debt collection practices, and the Association did not threaten to take any action it was unable to take to collect upon that debt. The trial court dismissed the owner’s claims, and so the owner appealed to the Ninth Circuit Court of Appeals. The Appellate Court sided with the owner. Essentially, the Court found that California common interest developments could not merge State and Federal requirements to streamline collection. Although California and Federal requirements are complimentary and consistent, they are not identical. By overlapping the standard pre-lien notice from Civil Code Section 5660 and the right to dispute a debt from the Federal Fair Debt Collection Practices Act (“FDCPA”), the Association was not clearly stating owner’s rights. In this case, giving an owner only 35 days to bring the debt current meant that an owner’s right to request validation of the debt was effectively eliminated. As a result, the Appellate Court held that a letter cannot simply contain the statutory language in order to comply. Notices to owners must clearly communicate the rights respective to both California and FDCPA. So with this case, now what? How do Associations respond? Although it is important to note that this ruling only sent the case back to the Federal Trial Court, it is also important CONTINUED ON PAGE 24

April 2017 | www.cai-glac.org

Is Your Debt Collection Process Fair? California Civil Code vs. FDCPA CONTINUED FROM PAGE 23

to remember the Appellate Court was clear: reciting the California Civil Code does not ensure compliance with the FDCPA. Associations should take a look at their collection policies and make sure that they are compliant with FDCPA requirements. First, what is the process for notifying owners about their delinquencies? Courts at all levels are looking at whether Associations are complying with proper notice procedures. Some Associations or their management companies will initiate contact with owners after one missed payment. Do those notices contain the required language about the right to dispute a debt? If not, the Association may want to look at revising their collection policy to see whether there are similarities with the Mashiri case.

Second, how does the Association (or its management company or collection company) work with owners to validate and verify the amount of debt? It is important to look at the delinquent account, and be able to identify the basis for each amount demanded. Everyone who works with delinquencies should know what categories can and cannot be included on a lien. However, you also have to know where those amounts came from and provide the supporting documentation for any reimbursement assessment or special assessment. Before shooting out a demand letter, make sure that you have the proper foundation so you don’t have to untangle any knots later. Associations should work with their vendors so that everyone knows how these issues will be addressed. Communication among working partners is key. Involve your management company and your attorney in the discussions. Make sure that everyone is comfortable with how you communicate with owners about their debt, and that both California and FDCPA requirements are fulfilled. Matthew A. Gardner, Esq. is a Senior Associate with Richardson Harman Ober PC, a full-service law firm serving community associations through Southern California. He can be reached at mgardner@rhopc.com.

Insuring Common Interest Developments Throughout The West

www.cai-glac.org | April 2017

CAI-Greater Los Angeles Chapter

CAI National Manager Education Course Schedule June-December 2017 – Western United States

DATE

LOCATION

CLASS

JUNE 2017 8-9 8-9 22-23 22-23 22-23

Phoenix, AZ Santa Ana, CA San Diego, CA Beaver Creek, CO Palm Springs, CA

M-370 M-206 M-203 M-201 M-202

JULY 2017 13-15 20-21 20-21 27-28 27-28

Riverside, CA Los Angeles, CA Dallas, TX Houston, TX Pleasanton, CA

M-100 M-360 M-201 CASE M-205

AUGUST 2017 10-11 10-11 10-11 17-19 23-26 24-25 24-26

Dallas, TX Virginia Beach, VA Santa Ana, CA Los Angeles, CA Broomfield, CO San Diego, CA Sandy, UT

M-204 M-203 M-201 M-100 M-100 M-206 M-100

DATE

LOCATION

CLASS

SEPTEMBER 2017 7-8 Santa Ana, CA 7-8 Honolulu, HI

M-202 M-206

OCTOBER 2017 19-20 Broomfield, CO 19-20 San Diego, CA 26-28 Seattle, WA 26-27 Colorado Springs, CO

M-204 M-202 M-100 M-350

NOVEMBER 2017 2-3 Austin, TX 2-4 Palm Desert, CA 16-17 Santa Ana, CA 16-18 Phoenix, AZ 30-12/1 Santa Ana, CA 30-12/1 Seattle, WA 30-12/2 Pleasanton, CA

M-320 M-100 M-204 M-100 CASE M-203 M-100

DECEMBER 2017 7-8 Houston, TX

M-201

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CAI-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

WELCOME

NEW CAI-GLAC MEMBERS! AS OF APRIL 15, 2017

BUSINESS PROFESSIONALS ClickPay Key Partners Insurance Services, Inc.

RECRUITER CAI National Omar Bayter

COMMUNITY MANAGERS Alissa McMurrin HOA Organizers, Inc. Susan Rainer Ross Morgan & Company, Inc. AAMC

Diane Hilliard, CCAM® CMCA®, AMS®, PCAM®

COMMUNITY ASSOCIATION LEADERS Gary Burns Pamela Graves Arthur Leonard

Neda Nehouray, CMCA®, AMS® CAI National CAI National

Neda Nehouray, CMCA®, AMS®

17315 Studebaker Rd., Suite 213 Cerritos, California 90703 800.485.8056Fax 800.485.8057 www.ReserveStudiesInc.com

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

mutualofomahabank.com AFN46039_0913

www.cai-glac.org | April 2017

Member FDIC Equal Housing Lender

EQUAL HOUSING

LENDER

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF MARCH 31, 2017

BUSINESS PROFESSIONALS Aeroscopic Environmental, Inc. Beaumont Gitlin Tashjian BrightView Landscape Services CINC Systems, Inc. Elliot Katzovitz Insurance Agency, Inc. EmpireWorks – Reconstruction & Painting Fenceworks, Inc. First Citizens Bank FRESHCO Painters, Inc. General Pavement Management, Inc. HAR-BRO, Inc. Kevin Davis Insurance Services Mailboxes.com McKenzie Rhody, LLP Mission LandscapeNaumann Law Firm Naumann Law Firm Nu Air Services, Inc. On Time Building Maintenance, Inc. Professional Services Contruction, Inc. Selecting Painting & Construction Servpro of Hollywood Hills/Los Feliz

Servpro of Santa Clarita Valley, Lancaster, Palmdale/Action Smoke Free Apartment Registry Three Phase Electric Tinnelly Law Group Vet-Sec Protection Agency, Inc. Vista Paint Corporation Western Magnesite COMMUNITY ASSOCIATIONS Mira Verde HOA Rockpointe HOA Village Court Del Amo HOA West Ocean Association COMMUNITY MANAGEMENT COMPANIES Accell Property Management, Inc. AAMC Classic Property Management, Inc. Concept Seven, LLC AAMC HOA Organizers, Inc. J & N Realty, Inc. Optimum Property Management, Inc.

COMMUNITY MANAGERS Hasmik Akopyan Ross Morgan & Company, Inc. AAMC Christine Albrecht, CMCA®, AMS®, PCAM® Valencia Management Group Shanna Alvarez Marina City Club HOA Gilda Curry, CMCA® Scott Management Company Vicki Egan Seco Canyon HOA Kelle Ellebroek, CMCA® Horizon Management Company Jasmine Garcia Community Association Specialists, Inc. Kevin Gatewood Optimum Property Management Inc. Vanda Hembree Adore Property Management Sharon Levine, CMCA® Horizon Management Company Ingrid Lazzaretti W Residences Melissa Mills, CCAM®, AMS® Mirabella HOA Matthew Nelson, CMCA® Horizon Management Company Pete Ong, CMCA®, AMS®, PCAM® Partners Community Management, Inc.

Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Association Shawn Pinkney Two Eleven Spalding Condominium Assn. Alyson Pourat HOA Organizers, Inc. Tracy Robinson, CCAM® The Management Trust Gina Sesto, AMS® Horizon Management Company Robert Sides, CCAM®, PCAM® Regatta Seaside HOA Cheryle Stites, CMCA® Bali Management Group Connie Vohden, CMCA®, AMS®, PCAM® Community Association Specialists, Inc. COMMUNITY ASSOCIATION LEADERS Lisa Alexander Andrew Carrollman Tecumseh Coleman Teresa Hames Stewart Sexton Michael Torres

Oct. 20, 2017 | Universal City, 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-Greater Los Angeles Chapter

April 2017 | www.cai-glac.org

2017 CALENDAR OF EVENTS

ADVERTISERS INDEX 30 Animal & Insect Pest Management, Inc. 8 Association Reserves, Inc. 8 Beaumont Gitlin Tashjian 20 Bentley Community Management 24 Cline Agency Insurance Brokers

MAY 3-5 CAI National Conference Caesar’s Palace Hotel, Las Vegas, NV

09 South Bay Ask an Expert Evening Program – 6:30 p.m. DoubleTree by Hilton Torrance-South Bay, 21333 Hawthorne Blvd., Torrance, CA 90503

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

15 Annual Golf Tournament – 8:00 a.m. TPC Valencia, 26550 Heritage View Lane, Valencia, CA 91381

19 Pacific Western Bank 28 Poindexter & Company, CPAs 26 Preferred Commercial Painting, Inc. 26 Reserve Studies Inc. 9 Ross Morgan & Company, Inc. AAMC 18 Sandra Macdonald Insurance

23 Critter Busters, Inc.

22 Select Painting & Construction

21 Ferris Painting, Inc.

13 Steven G. Segal Insurance Agency, Inc.

21 Fireplace Solutions The Chimney Sweeper 26 Mutual of Omaha Bank/ CondoCerts

16 Union Bank HOA Services 25 Witkiin & Neal, Inc.

25 Pacific Utility Audit

24 Downtown Luncheon Program for HOA Boards and Managers & Annual Meeting – 11:30 a.m. City Club, 555 S. Flower, 51st Floor, Los Angeles, 90071

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

JUNE 01 San Fernando Valley Homeowners Association Marketplace – 5:30 p.m. Woodland Hills Hilton

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

07 Managers Only Breakfast Workshop – 9:00 a.m. Location TBD

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

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

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

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

20-21 M-360 PMDP Course – Leadership Practices Sheraton Gateway, Los Angeles

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

22 Essentials of Community Leadership Workshop – 8:15 a.m. SummerWind HOA, 2800 Plaza Del Amo, Torrance, CA 90503

25 Long Beach Educational Program for HOA Boards – 5:30 p.m. Location TBD

26 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m. Hyatt Regency Valencia, 24500 Town Center Drive, Valencia, CA 91355

28 Bowling Tournament Bowlmor, 3545 E. Foothill Blvd., Pasadena, CA 91107

www.cai-glac.org | April 2017

CAI-Greater Los Angeles Chapter

Community Associations Institute • Greater Los Angeles Chapter Presents

Around TheWorld

HOMEOWNERS ASSOCIATION MARKETPLACE

Featuring

• Meet & Greet HOA Service Providers dedicated to our industry • Opportunity to Win $100 Cash during Meet & Greet (must be present to win) • Raffle Prizes

Schedule • 5:30 p.m.

Meet & Greet Service Providers to talk about present & future projects. Enjoy Complimentary Hors d’oeuvres.

• 7:00-8:30 p.m.

Complimentary Dinner & Educational Presentation:

“…ism”: Avoiding Discrimination & Its Legal Consequences

• Guest Speakers:

Sandra L. Gottlieb, Esq. CCAL, SwedelsonGottlieb Lisa A. Tashjian, Esq., Beaumont Gitlin Tashjian

Thursday

~June 1~ Hilton Woodland Hills 6360 Canoga Avenue, Woodland Hills, CA 91367

Admission & Valet Parking Complimentary for HOA Board Members & Managers* *HOA Member Guests will pay a discounted price of $20 per person for dinner. Please RSVP before May 25 — Dinner Capacity Limited • Online: www.cai-glac.org • E-mail: joan@cai-glac.org • Phone: 818-500-8636

Current Sponsors Event

ALLBRIGHT 1-800-PAINTING General Pavement Management, Inc. Master Property Improvement Company, Inc. Bar Silicon Beach Insurance Services Parking SKY Painting Show Bags Mulholland Security Centers, Inc.

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 2017 Condominium Bluebook Today! Price: $26.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org.

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