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September/October 2017

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Home… Not So Sweet Home

• Homelessness: A Challenge to Community Associations • Dealing With Outsiders • Keeping the Peace

Save the Date:

“An Evening in Paris” November 11

Community Associations Institute-Greater Los Angeles Chapter Presents

Saturday, November 11, 2017

An Evening In Paris 6:00 p.m. 7:00 p.m. 8:00 p.m. 10:30 p.m.

Cocktails Dinner Gaming & Dancing Raffle

$125 Per person $1,250 Table of 10 To register and buy discounted drink tickets go to www.cai-glac.org. Formal Attire requested

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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, CMCA®, 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, MBA, 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 Steven A. Roseman, Esq., Roseman & Associates Apc PROGRAMS/LUNCHEONS Brian Moreno, Esq., CCAL, SwedelsonGottlieb Neda Nehouray, CMCA®, AMS®, HOA Organizers, Inc. PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Chair Karen Kokowicz, CCAM®, CMCA®, PCAM® Coro Communty Management & Consulting Editor 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 6 8 10 12 14 22

Homelessness: A Challenge to Community Associations Dealing With Outsiders Keeping the Peace Take Note of New Disclosure Requirements News from Sacramento Are You Reserving Enough for Plumbing? Condominium Ownership: The Good News!

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

NOTEWORTHY 16 Highlights from the Superheroes Bowling Tournament 20 Uncork & Unwined at the Bandshell Wine Tasting Recap 26 CAI Legal Forum: California Communities

FYI 25 2017 Recruiter Contest 29 California Common Interest Development Law Course 30 Membership News 32 2017 Upcoming Events 32 Advertisers Index 32 Advertising Information Our thanks to the Focus Magazine Committee: Chair: Karen Kokowicz, CCAM®, CMCA® PCAM®, Coro Community Management & Consulting Editor: Matthew Gardner, Esq., Richardson Harman Ober PC Teresa Agnew, Roseman & Associates, APC Nels Atha, CMCA®, AMS®, Common Interest Services, Inc. Lynne Collmann, CMCA, AMS, Savoy HOA Sascha Macias, CMCA®, AMS®, PCAM®, FirstService Residential AAMC® Neda Nehouray, CMCA, AMS, HOA Organizers, Inc. Gina Roldan, ProTec Building Services 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

Stay Connected:

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September/October 2017 | www.cai-glac.org

big “Thank You!” to all of our readers and supporters. We continue to hear from you on topics you want us to cover, and appreciate being your resource on all things topical and challenging about community living in Los Angeles County.

Note

from the Editor’s Desk

Danny Padilla leads with an issue that more and more of our communities see daily: the increase in the homeless population. Cities and counties may (and should) be looking at bigpicture solutions. Danny looks at what challenges communities might expect, and how they can consider responding on a smaller scale. Steve Roseman follows with the legal challenges communities face when responding to those outside the community. Depending on the nature of the offense, there are both criminal and civil remedies to consider protecting property and persons within the community. Dealing with infractions within a community can be just as challenging. Christopher Moran weighs in on how to prioritize enforcement. Not all types of violations are created equal, but the Board needs to make sure that it has a consistent reliable approach. Tightening up the Rules and Regulations leaves less to chance, and ensures that the Board avoids the claims of arbitrary enforcement.

AB 690 is now law. Those communities getting ready for disclosures may see new information from their managers. Nels Atha reports on the new disclosures that apply specifically to management companies. These new requirements will be in the Civil Code, and disclose prices for documents, as well as relationships to other community vendors. These disclosures are designed to increase transparency between owners, directors and business partners. Brian McCaffery changes tack and dives into reserves. Plumbing is one of the more common expenses within communities, but does it take center stage in your reserve study? Allocating money for unexpected plumbing repairs in the operating budget is not the same as planning for adequate replacement down the road. Look at your routine plumbing expenses and decide when your community should be ready to retire those pipes, or how to prolong their life. And now for something completely different: Good news! Dave Brock talks about all those overlooked advantages to community living. Too often managers, board members, vendors, (and yes) lawyers spend time on the negatives. Use Dave’s optimism to show your communities and owners why they should enjoy and appreciate all that common interest development living has to offer. We even offer you Twitter to share your joy: #ilovemyhoala! This Chapter continues to work hard to deliver you the best that our members have to offer. Stay active! Stay involved! And tell your communities about the importance of supporting theCalifornia Legislative Action Committee through our Buck-A-Door challenge. 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 | September/October 2017

2017 CAI-GLAC Super Sponsors Platinum

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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 Dunn-Edwards Paints 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 Horizon Management Company Master Property Improvement Co., Inc. 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

ur members came together for two social events this summer, giving everyone in attendance the opportunity to mingle and get to know each other better in casual settings. The Social Committee planned and coordinated a fun Super Heroes Bowling Tournament in July, with just about everyone wearing some kind of Super Hero costume or attire. And, the Wine Night Committee hosted “Uncork and Unwined” at a new venue this year, The Bandshell in Playa Vista. The weather cooperated with a delightful breeze, and everyone enjoyed the menu choices offered by The Slummin’ Gourmet food truck, while sipping wines from two different wineries in Paso Robles. Several years ago the CAI-GLAC Board of Directors made the decision to dedicate proceeds from Wine Night to the California Legislative Action Committee, and this year more than $7,000 was raised. Thank you to Co-chairs Jolen Zeroski

and Katy Krupp and committee members Pamella DeArmas and Pauline MacLean for planning and executing a terrific event, and thanks to Kimberly Lilley and Natalie Stewart for selling raffle tickets to help raise funds for CLAC! Let’s not forget what Community Associations Institute is all about – providing its members with educational resources and legislative advocacy. This year’s CAI Legal Forum will be held on Friday, October 20th at Universal City at the Sheraton Universal Hotel. This one-day event brings together manager members and association board members from all eight of CAI’s California chapters for educational sessions, and a luncheon/trade show. The California Legislative Action Committee Benefit Fundraiser will be held the night before, Thursday, October 19th in the Starview Ballroom on the 21st floor of the Sheraton Universal Hotel, offering views of the Hollywood Hills. Proceeds from the dinner, and from the silent auction at Legal Forum, will benefit CLAC and their efforts in Sacramento on behalf of common interest developments throughout California. We have two more social events to look forward to this year: Casino Night at The Millennium Biltmore Hotel in Downtown Los Angeles on Saturday, November 11th, and Holiday Happy Hour on Friday, December 1st. The Board and the Social Committee have decided to separate Casino Night and our Annual Achievement Awards into two separate events to ensure that Casino Night attendees have more opportunity to visit over dinner before hitting the tables, and if you attended Casino Night at The Biltmore a few years ago, you know what a fabulous venue The Biltmore is! And, our Holiday Happy Hour is always a fun evening with industry friends and a great way to kick-off the holiday season. I hope to see you at a CAI-GLAC educational luncheon or social event soon! — Joanne Peña , PCAM® 2017 Chapter President

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

September/October 2017 | www.cai-glac.org

Homelessness: A Challenge to Community Associations ¡¡¡ By Danny Padilla, CMCA©

s a community manager, primarily doing business in Los Angeles and the San Gabriel Valley, I have noticed a significant increase in the homeless population over the last two years. Many of the properties are within close proximity to Downtown and the Los Angeles River area. Needless to say, it has been challenging. This has created some unique problems at my associations, and we have tried to come up with creative ways to deal with them. One example is a mixed-use community, with townhouses, condominiums and commercial units. Underneath the complex is also a public garage for the Metro Line. As a result, many homeless people try to use this area for shelter and, unfortunately, as a public restroom. Because this garage is public, it is wide open and does not have a controlled-access gate. Owners are constantly having to call the police to report people camping out, and management has had to ask the janitorial staff to clean up bio waste. The association has also reported higher bicycle thefts and vehicle damage from the public garage. We are working with the City to discuss a game plan for how we can address this problem. However, coordinating with the City takes extra effort and requires more follow-up. The

www.cai-glac.org | September/October 2017

City has communicated in writing that they understand that this is a problem and they are considering installing more gates to prevent access to certain areas. In the interim, we have had to spend money installing a security camera system, and the association had to upgrade to coded locks for their protection. To date, this problem has probably cost the association about $20,000 in the past year. Another community sits right above the Los Angeles River near the 110 Freeway. Since this association is located near Downtown and the River, it is a prime area for homeless encampments. We went through a oneyear period where some of the homeless moved behind one of association’s buildings. Owners reported additional break-ins to their vehicles, as well as mail theft. To be safe, this community decided to hire a security company to patrol their community for $600 per month. This service cost them $7200 a year for peace-of-mind, but it seems to have reduced the reports of theft and vehicle damage.

In another association in the same area, owners reported that homeless individuals were tapping into common area and owners’ individual water spigots for bathing. The association was able to put locks on the water spigots so that a special key is needed to turn the water on and off. It reduced the easy access to free water, and reduced reports from owners about finding people using their common areas for bathing. The increase in the homeless population has been challenging for communities, especially those areas located near freeways or public parks. Money that should be going towards the upkeep of the community, maintenance and improvements, is being spent targeting problems that need to be addressed at City and State levels. There are still small things that associations can do for themselves. I recommend that my communities do a walkthrough of the property with specialists to see what points of access need to be reinforced, and to find out what suggestions they have for increasing the level of security for the common area and utilities. For example, just making sure all of your doors and locking mechanisms are working properly is helpful. Also, it is important to remind owners to take responsibility for their own security. Asking homeowners not to leave valuables in their cars or not to leave their garage remotes in their cars can CAI-Greater Los Angeles Chapter

also reduce damage or theft. Creating a community awareness committee can be helpful as well. There are also the obvious, but more expensive options, like installing surveillance cameras or hiring or increasing patrol services. Whatever surveillance you implement on a community level, it always makes sense to speak to the closest police station or community patrol. Alert them to some of the recurring reports from your owners and ask them to increase their own patrols in the area. The more police that can be seen, the less likely homeless will want to go there. Often, homeless are looking for out-of-the-way places where they won’t be bothered.

their owners. Work with your communities, your owners, and your neighboring cities to find solutions that help reduce some of the day-to-day challenges. The more that cities and government hear and see your communities struggling with these issues, the more likely we are to see longer-term solutions.

I recommend that my communities do a walkthrough of the property with specialists to see what points of access need to be reinforced, and to find out what suggestions they have for increasing the level of security for the common area and utilities.

We understand that this is just a microcosm of what is going on across the entire Los Angeles region. It is sad to see some people who need obvious help, but the associations need to protect

CAI-Greater Los Angeles Chapter

Danny Padilla, CMCA®, is the CEO of Cardinal Management Group in South Pasadena. He has been managing properties in the Greater Los Angeles area for a decade. Danny can be reached at dannyp@cardinalmg.com.

September/October 2017 | www.cai-glac.org

Dealing With Outsiders The Homeless, Transients & Gangs

obstruct the property or property rights of another (Pen. Code §602(k). Simply put, when someone enters onto property unauthorized, they are trespassing.

Vandalism Vandalism, a criminal offense, occurs when a person defaces, damages, or destroys real or personal property (Pen. Code §594). Similarly, conversion, a civil offense, occurs when a person intentionally and substantially interferes with personal property of another, by taking possession or destroying the property. Damaging common area property (like pool furniture or a basketball court) or spraying graffiti on property, are typical examples of vandalism committed on association property.

Disorderly Conduct Disorderly conduct occurs when a person engages in lewd conduct in any place exposed to public view, or “lodges” in any building, vehicle, or place, without the permission of the owner (Pen. Code §647).

Criminal Threats

¾¾¾ By Steven A. Roseman, Esq.

ith the significant shortage of affordable housing in Southern California and the rise in the homeless population, homeowners associations are faced with a tough dilemma: how to protect residents and their communities from transients who may utilize common area facilities and/or threaten harm to residents, while dealing with the sensitive issues of the homeless crisis. This article discusses some legal tools available for communities to use to address this dilemma. Associations should keep in mind that these tools should always be used in conjunction with law enforcement. Generally, the violations that occur within homeowners associations include: (1) trespass; (2) vandalism; (3) disorderly conduct; (4) criminal threats; and (5) nuisance (private and public).

Trespass Trespass can be both a civil and criminal offense. A trespass occurs when a person enters onto any land, public or private, with the purpose or intent to injure, interfere with, or

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When a person makes a threat to commit a serious crime— i.e., one that would result in death or great bodily injury—he or she may be guilty of making a criminal threat (Pen. Code §422). To be actionable, the threat must have been made with the intent to be taken as a threat, even if the person never actually intended to follow through with the threat. If a criminal threat is made, the person may also be civilly liable for intentional infliction of emotional distress, which requires outrageous conduct, such as making a criminal threat, which causes a person to suffer severe emotional distress.

Nuisance A public nuisance is anything injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property, and must interfere with the comfortable enjoyment of life or property by an entire community, neighborhood, or by a considerable number of people (Pen. Code §§ 370 and 372). A private nuisance is similar, and may be found where less than an entire community is affected.

Tools to Protect Association Property Boards of directors and management, in conjunction with legal counsel, should be familiar with the foregoing Penal Code sections in order to evaluate whether a transient person or anyone entering onto the property may be violating any criminal laws. If any criminal violations are suspected, local law enforcement should be contacted. CAI-Greater Los Angeles Chapter

Associations can attempt to prevent trespass by installing signs at various locations on the property, stating, among other things, that the property is closed to the public, and in accordance with the specific requirements of Los Angeles Municipal Code Section 41.24. If the signs are posted, and the remainder of Section 41.24 is followed, then an intruder would be guilty of trespass. Associations can file a Section 41.24 Trespass Arrest Authorization form with the Los Angeles Police Department division closest to their property. The Authorization is valid for 12 months and gives the LAPD permission to enter onto a community’s property and enforce Section 41.24. Further, if associations are aware of a particular time when that individual enters into the community, or a particular location on the property where he/she enters, the association representative should recommend that local law enforcement arrive at a particular time or place, in order to witness and catch the violation in real time. Even if associations are faced with a person lodging in the common area, associations should be careful of “trashing” personal belongings of the lodger. Management or the Board should contact law enforcement or legal counsel prior to removing any property.

call the police, they should make sure to provide as much information as reasonably possible. For example, if property has been vandalized with graffiti—and even if the vandal cannot be found—take pictures of the graffiti. The police may be able to link the graffiti on your property with graffiti on another. Moreover, if a person is engaging in disorderly conduct, creating nuisances or disturbances, or living in a common area, try to take videos or pictures, or keep a diary/ log of what you observe. Law enforcement may be able to use what you have observed as a basis to make an arrest. However, make sure to keep a safe distance. Do not put yourself at risk trying to obtain evidence. While the police may not be able to obtain a criminal conviction without adequate evidence, they will still respond to calls, prepare reports, and take steps to ensure the safety of your community. Finally, establish a relationship with local law enforcement. Invite them to attend a board meeting or owner town hall meeting. Establishing a preexisting relationship will assist the community when an issue does arise that warrants law enforcement involvement. Steven A. Roseman, Esq. is the principal of Roseman & Associates, APC, a law firm with offices in Los Angeles and Orange Counties dedicated to serving community associations throughout California. He can be reached at roseman@raattorneys.com.

Finally, the criminal violations may not be actionable by the police unless they are provided with evidence. As a result, when homeowners or management observe a violation and

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CAI-Greater Los Angeles Chapter

September/October 2017 | www.cai-glac.org

It’s Friday.

Keeping the Peace Avoiding Selective Violation Enforcement uuu By Christopher Moran

Been a long week. It’s three o’clock in the afternoon and you’re just about ready to start ignoring your desk phone. All the proposal requests have been sent, and you haven’t seen your boss since lunch, so you’re feeling pretty good about sneaking home early. All that’s left to do is to say a quick prayer to the God of Plumbing Leaks to ensure you have a fright-free weekend. Right as you’re about to step away, the Board President of your most-favorite association emails you with photographic evidence of a moving violation. STOP WHAT YOU’RE DOING. AN ILLEGAL MOVE IS IN PROGRESS. You immediately do the responsible thing: you call the local police to arrest these criminals. They’ll likely receive three-to-five years and be out in two with good behavior. Perhaps. Or, maybe you stick to the normal protocol and calmly advise the Board President that you will gladly give the owner/tenant a call, in addition to sending them a formal invitation to a hearing for the violation of an explicitly-stated association policy. The Board President refutes your strategy and asserts that, rather than inviting them to a hearing, he would like you to assess a fine immediately. You respectfully inform Mr. President that homeowners are entitled to due process, no matter the situation. He further asserts that this homeowner knows the rules and is deliberately flouting them. You continue down the path of explanation, but as the President has worked himself into a frenzy, no new information is being allowed to enter and thus no amount of reasoning will be heard, at least in the moment. Most managers have probably experienced a scenario wherein a board member, or in some cases an entire board, requests that a homeowner be disciplined in a manner inconsistent with their violation policy. As alluded to above, it may come in the form of the Board requesting a homeowner be fined immediately, or it may come in

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the form of the Board requesting an excessive fine, for what they feel is a particularly egregious violation. While every community will undoubtedly have situations wherein a homeowner or tenant seems to forget common decency to the point of being offensive, it is important that the Board stay grounded and go by the book.

Setting expectations So how does one avoid having the Board President set fire to the violation policy in a fit of rage? Start by setting expectations. While every director should be familiar with the violation policy, it doesn’t hurt to give them a brush-up every now and again. A great way to achieve this goal is to add “Rule Revisions” to the agenda once per year, preferably not long after your annual election. The Board can use the opportunity to tweak any and all rules that may have become dated and are no longer necessary, as well as add new rules for consideration. Your community’s violation policy can be reviewed and revised as a part of this conversation. Once your rule revisions are complete, the Board can ratify their new community guidelines as a whole, after the required owner review period, setting expectations for the balance of the year. In times of crisis, this process will allow the manager to be able to refer back to the recently-ratified violation policy that the Board agreed upon. Furthermore, the Board is more likely to be agreeable to the enforcement procedures if they personally had a hand in ratifying them.

Consistency Is Key One final tip to help navigate through the world of community enforcement is that consistency is key. Every board of directors is different, and certain violations will annoy some more than others. You may find the Board asking you to send courtesy notices to homeowners who store personal items in the public parking garage, but not to those who have their dogs off leash, CAI-Greater Los Angeles Chapter

though both are technically against the rules. Picking and choosing which rules to enforce is of course a “no-no” from a legal standpoint. But beyond just ensuring that the community is held to the same standards across the board, consistently enforcing all rules will increase the Board’s familiarity with how the community’s violation procedures should operate.

Rules

Consistent and unbiased enforcement will limit community rule violations overall and have the added benefit of also limiting the amount of angry calls from your Board President, demanding you to toss out the enforcement policy. After all, breaking the rules yourself is no way to enforce them! Christopher Moran is a portfolio manager at FirstService Residential, a full-service management company serving community associations nationwide. He can be reached at chris. moran@fsresidential.com.

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Since 1987 we have limited our practice to providing a full range of legal services for • Condominiums • Planned Developments • Cooperatives • Homeowner Associations There is no substitute for experience! Ventura County 805.650.7899

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Los Angeles 310.207.2207 California 800.372.2207

San Francisco 415.762.1889 September/October 2017 | www.cai-glac.org

Take Note of

New Disclosure Requirements

So what does management need to disclose that, perhaps, was not being disclosed before? This is a bill for transparency, so the answer largely depends on the management company’s billing practices and operating policies. Civil Code Section 5375 provides management companies with disclosure requirements prior to the start of the management agreement. This has now been amended to add the following: 5375(d): Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent. 5375(e): Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530. This amendment is reiterated in Section 11504 of the Business and Professions Code, adding: 11504(f): A common interest development manager or common interest development management firm shall disclose information required in Civil Code Section 5375. 11504(g): Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Civil Code Section 5300.

¾¾¾ By Nels Atha, CMCA®, AMS®

It’s that time of year again: time to prepare your budgets and annual disclosure packages. Whether you’re in management, or a volunteer community leader, or an association member, it is important to understand the changes to your disclosures this year. In addition to the usual annual disclosures, a new Assembly Bill, AB690, has added new disclosure requirements this year related to transparency of management and escrow fees.

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11504(h): An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Civil Code Sections 4528 and 5300, and all documents provided thereunder, are the property of the association and not its managing agent or the agent’s managing firm. In the management of community associations, transparency is one of the most important and often-overlooked aspects of management. The board of directors needs to know exactly what is happening with the association’s assets. If there is any conflict of interest that might sway the board’s decisions, including relationships between management and the association’s service providers, the board needs to know about it. As members of CAI, we operate under a Code of Ethics to protect our communities from being taken advantage of, and to protect our managers from harsh legal repercussions. This bill aims to expand this practice to all community managers by requiring the disclosure of any side agreements that management may have with third parties. Don’t get me wrong, third party agreements aren’t always bad. Many management companies partner with third parties to keep costs low and remain competitive or to CAI-Greater Los Angeles Chapter

provide higher levels of service. This may include anything from financial services, such as payment processing and billing, to maintenance services, such as general contracting services and construction management. Because of increasing legislation governing unit sales and association disclosures, many management companies subcontract or refer escrowrelated requests to specialized third parties. If management received a referral fee or other monetary incentives from this, they are now required to disclose this to potential clients. This raises the question: if management pays a third party directly to provide escrow services on its behalf and that third-party vendor collects managements’ transfer or document fee, does management still need to disclose this? Well, as the saying goes, when in doubt disclose, disclose, disclose. These disclosures now all need to be made annually as well. Most management companies send these disclosures along with or at about the same time as the pro-forma budget. Board members should pay special attention to these disclosures this year. Civil Code Section 5300 (the annual membership disclosures) has been amended as well. Starting this year, the association needs to include with its annual disclosures or annual policy statement, a copy of the completed Charges For Documents Provided disclosure identified in Civil Code Section 4528. For purposes of this section, “Completed” means that the “Fee for

Document” section of the form individually identifies the costs associated with providing each document listed on the form. While many management companies already provide this disclosure page on their Website, sending out this disclosure directly may help some members by providing advanced knowledge of some of the costs involved with the refinancing and selling of their units. In addition to the disclosures, AB690 has made a change to Civil Code 5430(d), adding that “A seller may request to purchase some or all of the (typical escrow) documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.” This means that if management companies have been charging a flat fee to provide a “document package,” they must now also provide an option for the purchase of individual documents. This will likely affect management companies that recoup escrow costs by charging by-the-page for documents. However, many management companies nowadays provide electronic documents for free and instead charge for completion of a “condo cert” or charge a transfer fee. Nels Atha, CMCA®, AMS®, is the founder and CEO and of Common Interest Services, Inc., a financial and full-service management company located in Torrance. He can be reached at info@cishoa.com.

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888.909.7403 | 916.550.9488 fax | www.caiclac.com

A Buck a Door or More Makes Sense!

CAI-CLAC is working toward legislative solutions that are right for California homeowner associations with the ongoing and generous support of HOA communities across the state. Join CAI’s award winning “2013 Legislative Action Committee of the Year” and do your part by contributing a “Buck a Door or More” from your association.

OUR THANKS TO 2017 CAI-CLAC CONTRIBUTORS January 1 – August 31

Goal: $24,543 90%

of goal as of 8/31/17 $22,025

100 Marina Shores HOA 101 Ocean Condominium HOA 118 Wadsworth Ave. HOA 446 San Vicente HOA 515 San Vicente 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 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 Berkeley Townhouse HOA, Inc. Bodger Park Condominiums HOA Bougainvillea Townhomes Budlong Villas HOA, Inc. Cardiff Court HOA, Inc. Casa de Suenos CA Casa De Valley View OA, Inc. Cedar Glen HOA

www.cai-glac.org | September/October 2017

Chateau Delgany Estates COA, Inc. Culver Centrale HOA Culver City Gardens (Lincoln Archways) Design Villas HOA Eight on Twenty HOA Eight Seventeen Sixth Street HOA El Segundo Peppertree HOA Florwood Estates HOA Glendon Manor HOA Gorham Park HOA Grand Kansas HOA Hermosa surf Condos, Inc. Highlands OA 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 Roxbury Park COA S. Manhattan Place HOA Seascape-Redondo HOA, Inc. Silver Spur Court HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Stratford-Compton Park Townhomes Textile Building OA The 555 Evergreen Street HOA The 3219 Colorado Assoc. The Angels Landing Group 7 Fountains The Estates COA The Vista Pacifica HOA Villa Capri Townhomes HOA Villa Cordoba HOA Villa Cynthia HOA Villa Del Sol Villas HOA Villa Serena CA, Inc. VIP Goshen Association Virgil Courts HOA Vogue Condominium Association West Wind Townhomes HOA Westside Townhouses HOA Wilshire Regent HOA Wilshire Selby Towers East CA, Inc. Windsor Estates COA Woodbury Maintenance Corp. Yale St. HOA

CAI-Greater Los Angeles Chapter

Your donation gives you a voice. CLAC’s legislative advocacy efforts are entirely dependent upon the opinions and experience of the industry’s professionals and CID homeowners. CLAC serves the interests of approximately 9,000,000 people who live in and work with CIDs in the state of California. CLAC communicates with legislators and other elected and appointed officials, and CLAC members educate government officials about CID concerns through letters, phone calls and personal visits.

2 3

CLAC is dedicated to monitoring and influencing legislation that affects common interest developments in California. CLAC researches and reviews proposed legislation and takes positions on bills affecting CIDs. CLAC reviews and tracks bills related to CIDs in California throughout the year.

Why You Should Donate to CLAC Every Year

CLAC meets regularly with lawmakers to help advance issues. CLAC educates and visits with lawmakers, legislative and executive staff, and other organizations, and testifies before legislative bodies. In addition, CLAC visits legislators annually and holds an annual Legislative Day at the Capitol in Sacramento to get to know legislators; inform them of issues affecting CIDs; ensure that the voice of community associations is heard.

The California Legislative Action Committee (CLAC) is a committee of Community Associations Institute (CAI), a national not-forprofit educational and resource organization dedicated to fostering vibrant, competent, harmonious community associations. CLAC is dedicated to monitoring and influencing legislation that affects community associations in California. CLAC is proactive in introducing and advocating for legislation that is beneficial to CIDs and is active in opposing legislation that may have an adverse impact on CIDs. CLAC has influenced legislation affecting many aspects of the Davis-Stirling Act, including covenant enforcement, elections, board meetings, assessment collection, electronic voting, resale disclosure, etc. The following are 12 strong reasons why you should donate to CLAC every year.

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CLAC is NOT a PAC (Political Action Committee) and does not give money to legislators or their campaigns. CLAC operates solely from contributions made by California members of CAI and other donations.

CLAC provides immediate action alerts and input on bills that affect CIDs. CLAC’s input on breaking issues enhances its ability to effectively influence the formulation and outcome of public policy. Additionally, CLAC provides timely information on bills related to CIDs at www.caiclac.com. CLAC organizes “grass-roots” letters, emails and phone communications with legislators regarding important CID-related issues and proposed laws.

CLAC exercises members’ constitutional right to participate in the political process. CLAC builds important relationships with government officials and develops a network of peers that will benefit the CID community and profession. Giving is easy and can be done online at www.caiclac.com or fill out and return the Buck A Door or More donation form.

It is legal for CID boards to donate money from the assessments collected. The board may spend community funds on protecting the association and its owners by supporting constructive – and opposing offensive – state legislation. Donations are for LEGISLATIVE ADVOCACY, NOT POLITICAL CONTRIBUTIONS. CLAC expenses include printing and mailing information to CAI members and CLAC contributors, lobbyist fees and administrative services; providing legislative information to the CLAC volunteers and more.

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Senate and Assembly committees ask our advocate (lobbyist) for input as housing legislation is proposed and debated. Moreover, the Governor’s Office often contacts CLAC to ask its position on a bill prior to the Governor signing the bill! CLAC has become the recognized resource for providing accurate, timely and influential input to California legislators. CLAC is comprised of representatives from three CAI membership categories: Volunteer Leaders (i.e., homeowners, board members); Business Partners (e.g., attorneys, developers, reserve analysts, contractors, accountants, insurance representatives, etc.) and Community Managers. This provides a diverse perspective on how bills may impact CIDs.

CAI-Greater Los Angeles Chapter 888.909.7403

2017 | www.cai-glac.org | 916.550.9488 fax | September/October www.caiclac.com

1809 S Street | Suite 101-245 | Sacramento, CA 95811

uuu By Brian McCaffery, RS

A major component that I see missing from many reserve studies is plumbing. Almost every association is responsible for some type of common plumbing. Even detached single-family homes with a private street can be responsible for the main line that connects the association with the city lines. Most attached condos have a great deal of common plumbing, including all distribution and drain lines that run throughout the building. Plumbing lines are something that most associations don’t think about because they are not visible components like the painting of the building exterior or the roof of the building. But plumbing lines will not last forever and need to be considered when an association performs their reserve study. If associations don’t plan for plumbing expenses, it can have major financial implications. Associations that plan for plumbing expenses

Are You Reserving Enough for Plumbing?

www.cai-glac.org | September/October 2017

in advance and include them in their reserve study should be able to budget and save for such expenses and have the funds necessary when the expenses arise. Associations that don’t will could face large special assessments or be forced to take out a loan. Loans are especially problematic because they can be difficult to obtain and will cost the association even more in in terest payments over the long term. In addition, if an association doesn’t have the funds to replace plumbing, it may cause them to defer the repairs which can lead to additional failures and costly repairs to the building and homeowners’ units. During the early years of an association plumbing is typically not an issue. But as associations age, many find it necessary to start budgeting for plumbing failures. Many associations will begin to put a line item in their operating budget each year for plumbing failures and will adjust each year as the plumbing gets older. In addition to the operating budget, it’s important to include plumbing as part of the reserve study. Even if you are budgeting for plumbing in the operating budget, it’s a smart practice to have a plumbing contingency in your reserve study in case one year you have more failures than expected. In addition to that, every association should be looking down the road and planning for major plumbing replacements. California Civil Code requires that all components with a remaining life of 30 years or less be included in reserve studies. So even if your association is brand new, you should be including plumbing in your reserve study. Copper and cast-Iron piping can have a very long useful life. But in many cases the water being

CAI-Greater Los Angeles Chapter

provided by the city will decrease the life of this piping. Chemicals used to treat the water and the pH levels can all contribute to a shorter useful life of plumbing.

plumbing cannot be inspected since it is located behind the walls. A reserve specialist can do their best to estimate costs based on the size and age of the property. Associations should understand that a reserve study specialist is not a plumbing expert. We recommend that associations work with plumbing vendors to get an When reserve assessment of their plumbing and study inspections to estimate future cost associated are conducted, the with repairs and replacements. This information should then be shared with the reserve specialist so that he can incorporate it into the reserve study. The best way to get an accurate reserve study is for the board, management, vendors and reserve specialist to all work together to customize each association’s long-term plan. Not only is the cost of replacing plumbing very expensive, but since it located behind walls the price is greatly increased because of the need to demolish walls to gain access. This also is a great inconvenience to homeowners. There are some other options to

complete pipe replacement, such as lining the interior of the pipes. Although this is typically less than complete replacement, it can still be very expensive. Associations should also consider preventive maintenance to help increase the life of their plumbing. Options like hydro jetting the pipes can decrease failures and extend the life of you plumbing. Hydro jetting of lines is also an item that could be included in your reserve study. Annual expenses should be included in your operating budget, but any item that is completed every two or three years should be in the reserve budget. So, if you are hydro jetting annually it should be in the operating budget but if it’s every two years it should be in your reserve study. Other options such as water softeners can treat the water so it won’t negatively affect the life of the plumbing. Keep in mind that water softening systems also have a useful life and need to be included in your reserve study. The purpose of a HOA reserve study is to plan and budget for long term major expenses. Plumbing is a major component for most associations just like a roof or asphalt streets. It important that every association makes sure they are planning for plumbing repairs and replacements in their reserve study. Brian McCaffery, RS, is the President of McCaffery Reserve Consulting, a company that has performed more than 5,000 reserve studies for associations throughout Southern California. Brian, who holds the Reserve Study Specialist designation, is an active member of four CAI Chapters. He can be reached at brian@mccafferyreserveconsulting.com.

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September/October 2017 | www.cai-glac.org

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CAI-Greater Los Angeles Chapter

M Friday, July 28, 2017

ore than 65 CAI-GLAC members and friends turned out to Bowlmor Lanes in Pasadena on July 28 for our Super Heroes Bowling Tournament. Many attendees came in costume, carrying out the “Super Heroes” theme. The A Plus Tree team brought in the highest score, and Erik and Calista Mendez of ONIT Property Management (Batman and Robin), Guillermo Amador of Guard-Systems, Inc. (Batman) and Gina Roldan of ProTec Building Services (SpiderWoman) won the Best Costume contest. This event not only provides for great networking and fun, but also helps the Chapter fund CAI educational programs for HOA board members and their managers. Our thanks to the Social Committee for planning and producing such an awesome event. Co-chairs Leslee Jones (Alliance Environmental Group, Inc.) and Angelique Madrigal (Ross Morgan & Company AAMC), Steven Beltramo (Association Reserves, Inc.), Don Campbell (Cabrini Villas HOA), Alison Kronebusch (Reconstruction Experts, Inc.), Erik Mendez (ONIT Property Management) and Sharon Asadoor (U.S. Security Associates).

Thanks to our Sponsors Socks

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LandCare Nu Air Services, Inc. Park West Landscape Management Napkins

Guard-Systems, Inc. Buffet

A Plus Tree Inc. Alliance Association Bank Reconstruction Experts, Inc.

CAI-Greater Los Angeles Chapter

September/October 2017 | www.cai-glac.org

www.cai-glac.org | September/October 2017

CAI-Greater Los Angeles Chapter

pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right.

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September/October 2017 | www.cai-glac.org

CAI-GLAC Wine Tasting & Light Meal

August 19, 2017 Central Park Bandshell at Playa Vista

Thanks to all who sponsored and attended our recent Wine Night! More than 100 Chapter members and friends gathered at Central Park in Playa Vista on August 19 for a wonderful evening of fine wine, gourmet tacos and sliders… and melt-in-your-mouth desserts. It was an excellent opportunity to get together with industry friends in a casual setting. This is a very important fundraiser for CAI-GLAC because it provides 20% of our annual contribution to CAI’s California Legislative Action Committee. Each year California chapters strive to meet a contribution goal based on chapter membership size. Our goal this year is $24,543. Thanks to Wine

Night net proceeds of $7,371, we have now met 90% of that goal. Contributions are used to support our legislative advocate’s efforts to promote or fight bills affecting common interest developments, pay his assistant, use a public relations/marketing firm, underwrite April Day at the Capitol Conference activities and cover general office expenses. As you know, with more than 53,000 common interest developments in California, it is crucial to exercise our voice in Sacramento!

Thanks to our Sponsors Best of Class

Horizon Management Company AAMC Cordon Bleu

Steven G. Segal Insurance Agency, Inc. Souvenir Photos

Pacific Western Bank Wine Glasses

R.E.A. Advisors Epicurean

LandCare Park West Landscape Management Wine Steward

Berg Insurance Agency The Miller Law Firm Naumann Law Firm, PC ProTec Building Services Napkins

Silicon Beach Insurance Services Centerpieces

Nu Air Services, Inc. Dessert

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CONDOMINIUM OWNERSHIP: THE GOOD NEWS! ¡¡¡ By David F. Brock, PCAM

Don’t underestimate the advantages of living in a common interest development.

The advantages of living in a homeowners association are often overlooked, as it seems that the hard stories of HOA ownership are what we usually hear. But, yes, there are some great benefits to HOA ownership. It is always good to look at the positive side to our life. If we don’t, it is easy to become frustrated and see only the negative aspects of living in an HOA. First, consider the affordability factor. There is little doubt that, for many people, buying a condominium is a far more affordable choice than buying a single-family home in the same area. Currently, the price for a single-family home is 40% per square foot higher than the price of a condominium. Or to state it another way, if you were looking to buy a condo or a house, and you were able to spend $600,000, you could buy a house of 868 square feet, or a condo of 1,217 square feet. That extra 349 square feet is significant—like having an extra bedroom and bath.

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CAI-Greater Los Angeles Chapter

Secondly, there is the important issue of lifestyle. A large number of people who choose to purchase a condominium have recently sold a house that they have lived in for a number of years. Perhaps a spouse died recently and they don’t need that much house, or perhaps the kids are gone, or they just want to be free of the responsibility for the maintenance of a single-family home. The lifestyle choice for these folks is clear: they want a simpler life, and they want to lock the door and travel. Freedom from the daily tasks involved with property ownership and responsibility is very important for anyone who wants to travel. Finally, there is the element of sharing expenses. Simply put, you get the use of the amenities, such as pool, Jacuzzi®, security—and you only have to pay a portion of the maintenance. Continued on page 24

CAI-Greater Los Angeles Chapter

September/October 2017 | www.cai-glac.org

Condominium Ownership: The Good News! Continued from page 23

A good friend of mine owns a sailboat with someone else. As fun as owning a boat can be, no one is going to use their boat 100% of the time. So sharing the cost of upkeep makes perfect sense. Condominium ownership is a lot like this. The owners of an association get to share expenses, and consequently pay a lot less for the use of the property. The swimming pool is a perfect example. You can use the pool pretty much like it’s your pool, but if it needs a new piece of equipment, you don’t have to pay that expense by yourself. If you live in your own single-family home, then you are 100% responsible for all the costs. Don’t underestimate the advantages of living in a common interest development. It’s the best way to begin investing in real estate and your best chance to own in a neighborhood that you may have thought was too expensive. David F. Brock, PCAM®, is co-owner of Beven & Brock, a full-service management company providing services to more than 200 common interest developments in Los Angeles County. David can be reached at dave@bevenandbrock.com.

#ilovemyhoala Do you live in a common interest development in Los Angeles County? We want to hear from you! Submit a short story (about 300 words) telling us why you like your HOA and win a $50 gift card if it is chosen for publication in FOCUS Magazine. Send it to ilovemyhoala@gmail.com.

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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 SponsorS Fenton Grant Mayfield Kaneda & Litt, LLP Reconstruction Experts, Inc.

CAI-Greater Los Angeles Chapter

Tinnelly Law Group

September/October 2017 | www.cai-glac.org

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 Legal Forum: California Communities EVENT SPONSORS

Name Badge Sponsor

Lunch Sponsor Tote Bag SponsorS Associa-PCM PMP Management AAMC Ross Morgan & Company AAMC Cocktail Sponsors FirstService Residential AAMC The Miller Law Firm 26

www.cai-glac.org | September/October 2017

EXHIBITORS Accurate Termite & Pest Control Adams Stirling Professional Law Corporation Alliance Association Bank Alliance Environmental Group, Inc. Allied Trustee Services AMS Paving, Inc. Animal Pest Management Services, Inc. Association Reserves Association Services Network Beaumont Gitlin Tashjian BEHR & KILZ Paints & Primers Ben’s Asphalt, Inc. Berding & Weil, LLP Bergeman Group BPR, Inc. Broadband Agreements by MFC Burdman & Ward City National Bank Cline Agency Insurance Brokers Comet Lighting & Electric, Inc. Critter Busters, Inc. Design Build Associates Diversified Asphalt Products, Inc. Elliot Katzovitz Insurance Agency, Inc. EmpireWorks Reconstruction & Painting Epsten Grinnell & Howell, APC Fenton, Grant, Mayfield, Kaneda & Litt, LLP FHA Review Fiore, Racobs & Powers APLC First Foundation Bank General Pavement Management

Gothic Grounds Management Kasdan LippSmith Weber Turner, LLP KB Construction Company LaBarre/Oksnee Insurance Agency, Inc. McKenzie Rhody, LLP MeterNet Sub-Metering & Billing Solutions Mission Association Financial Management, Inc. Mutual of Omaha Bank/CondoCerts The Naumann Law Firm Nautilus General Contractors, Inc. Newman & Associates, Inc. CPA Pacific Premier Bank PatioShoppers Commercial Outdoor Furnishings Popular Association Banking ProTec Building Services Richardson Harman Ober PC Roseman & Associates, APC S.B.S. Lien Services SAX Insurance Agency SCT Reserve Consultants, Inc. Silldorf Law, LLP Silicon Beach Insurance Services Strategic Reserves SwedelsonGottlieb Three Phase Electric Tinnelly Law Group Union Bank Homeowners Association Services W.C. Service Company, Inc. Westcoat Specialty Coating Systems Witkin & Neal, Inc.

CAI-Greater Los Angeles Chapter

Fast Facts

Location Sheraton Universal Hotel 333 Universal Hollywood Drive • Universal City, CA 91608 (818) 980-1212 Please ask for the CAI Legal Forum group rate of $225/night when reserving your room. The group rate will be available until September 30th or until the room block is sold out, whichever comes first. Reservations may be made online at https://www.starwoodmeeting.com/Book/2J15AA. Cost CAI Members $135 | R egister on or before Sept. 30 ($110 per third and subsequent registrants from same organization) $155 | R egister after Sept. 30 ($130 per third and subsequent registrants from same organization) Nonmembers $175 | Register on or before Sept. 30 $195 | Register after Sept. 30 Event Schedule Thursday, Oct. 19–OPTIONAL PRE-FORUM SESSIONS 8:00 a.m.–5:00 p.m. California Common-Interest Development (CID) Law Course 1:00 p.m. –3:00 p.m. Educated Business Partners Prep Course 6:00 p.m. – 9:00 p.m. California Legislative Action Committee (CLAC) Benefit Fundraiser Friday, Oct. 20 8:00 – 10:00 a.m. Registration, Breakfast and Trade Show 8:30 – 9:15 a.m. General Session: Legislative Trends 10:15 –11:15 a.m. Concurrent Sessions 11:30 a.m. – 12:30 p.m. Concurrent Sessions 12:30 – 2:00 p.m. Luncheon and Trade Show 2:15 – 3:15 p.m. Concurrent Sessions 3:30 – 4:30 p.m. Concurrent Sessions 4:30 – 6:00 p.m. Cocktail Reception

Education Programs ● Crazy California Cases Join this interactive presentation for a fun and entertaining look at some of the strange and crazy community association cases decided by the California court system. Listen to open discussion about the cases, and laugh and learn from the mistakes of others. Roger Grant, esq., Fenton Grant Mayfield Kaneda & Litt, llp; Dave Potter, cmca®, ams®, FirstService Residential AAMC

● Recreational Marijuana Use: New Laws and HOA Issues Recreational marijuana use is one of the most controversial issues for community associations, managers, and management companies, especially with the constant changes in the law regarding medical and recreational purposes. Learn the basics of federal and state marijuana laws and find out how to handle issues involving use of marijuana in the communities you manage. Richard Salpietra, esq.,* Law Offices of Richard Salpietra; Jon H. Epsten, esq.,* Epsten Grinnell & Howell, apc

● Are Your Governing Documents Outdated? Is your community association struggling with outdated legal documents? Do they conflict with the Civil Code of California and Corporations Code? Do your boards waste hours trying to figure out whether the association or homeowners are responsible for certain obligations? Learn about the importance of maintaining updated documents, the difference between amending and restating your documents, and which membership requirements allow for successful document approval. Sandra Gottlieb, esq.,* SwedelsonGottlieb; Karen Holthe, cmca®, ams®, Cardinal Property Management aamc

● Nightmare on Wisteria Lane Join a hair-raising discussion of the spooky, startling, and strange tales of life (and death) in common-interest developments. Hear macabre stories stolen from the headlines (and the speakers’ experiences) and learn about common difficult issues faced by managers, including host-liquor liability; how to exercise right of entry; procedures to seek reimbursement for common area damages; enforcement of use restrictions, including nuisance and commercial operations; and reduction of liability for holiday events. Denise Iger, esq., Iger Wankel & Bonkowski, llp; Robert DeNichilo, esq., Nordberg | DeNichilo, llp

● Getting the “Yes” Vote: A Case Study in Success! Ocean Hills Country Club, a master association with 1,632 homes, obtained enough votes to approve their restated CC&Rs and bylaws in just three months! This case study explores the techniques used to gain membership participation and approval. Learn how to assemble the right team, find out how overcoming past challenges leads to future success, and the importance of member involvement. *CCAL member

CAI-Greater Los Angeles Chapter

Continued on page 28

September/October 2017 | www.cai-glac.org

CAI Legal Forum: California Communities Continued from page 27

The outstanding effort made by this community to educate, communicate, and respond to their members is an example for every association! Laurie S. Poole, esq.,* Peters & Freedman, llp; Becky Groenewold, ams®, pcam®, Keystone Pacific Property Management, llc, aamc; Don Lopez, Ocean Hills Country Club

● Eleven Years after SB 61: 11 Advanced Voting and Elections Issues In 2006, the law regarding how elections and many member votes are conducted in associations changed. Even though we’ve been utilizing the “dual envelope secret ballot” system for 11 years, we still field questions about elections almost daily. Learn about 11 advanced issues and the ways that the issues could be addressed by election rules and amendments to bylaws. Kelly G. Richardson, esq.,* Richardson HarmAn Ober, pc; Amy Tinetti, esq., Hughes Gill Cochrane Tinetti, pc

● How to Survive Getting Sued: A Manager’s Guide to Protecting the Association, Board, and Management Associations, board members, managers, and management companies get sued—and the actions taken in the days and weeks that follow can have a dramatic financial, contractual, and political impact on all involved. This presentation provides experienced managers with a roadmap of considerations and actions to be taken in the days and weeks following the receipt of a summons and complaint. Shanne Ho, pcam®, ProActive Professional Management; Patrick Prendiville, cirms™, Prendiville Insurance Agency; Dirk Petchul, esq., Berding | Weil, llp

● Is Your Wish My Command? Responding to Requests In today’s information age, association members need to request and receive information instantly. Association managers and directors are challenged to discern which requests are legitimate and how best to respond to demands for information and documents. Learn how to categorize and respond to such inquiries as document requests; lender, escrow, and broker requests; requests for other information about owners; and requests for information about security concerns. Melissa B. Ward, esq., Hughes Gill Cochrane Tinetti, pc; Laura Ravazza, cmca®, Homeowners Management Co., llc

● Liability Exposure: How Boards Stay Protected Board members in association-governed communities are responsible for maintaining, protecting, and enhancing association assets. A board’s power to act is provided inthe association’s governing documents and their decisionsare protected by the business judgment rule. Learn about board protections and review key areas where a board takes on significant liability exposure due to the most common things they don’t decide or do! Jeffrey A. Beaumont, esq.,* Beaumont Gitlin Tashjian; Robert Nordlund, pe, rs, Association Reserves, Inc., Lights, Camera, Action: Film Licensing, Building

● Trademarks, and Intellectual Property Issues Associations are subject to legal requirements when allowing motion pictures to be shown in common area facilities, when playing music in a clubhouse or lobby, when using other business’ logos and marks in association media, and when disclosing information of third parties that is not commonly known. Learn about core and nuanced intellectual property issues that will help association board members and managers make prudent business decisions relating to the associations they govern and manage. Alex Noland, esq.,* Noland Law PC; Tracy Neal, esq., Beaumont Gitlin Tashjian

● The NEW DFEH Regulations: How Are Associations Affected? The California Department of Fair Employment and Housing (DFEH) is in the process of adopting fair housing regulations for the first time in California’s history. The new regulations will be a very important and critical part of the DFEH’s analysis and enforcement process for fair housing complaints and associations will be impacted greatly. Learn about the DFEH’s intentions and interpretations of the new regulations and what they mean for your community association. Janet L.S. Powers, esq.,* Fiore, Racobs & Powers, a plc; Department of Fair Employment and Housing Representative

● Security in Associations With the general uptick in crime, owners are requesting that association boards introduce measures to help prevent or discourage crimes and protect their association. Learn about security options and discussion surrounding the topic, like the association’s role in preventing crimes; benefits and liabilities for neighborhood watch programs; the value of security cameras and common concerns; security agreements; local government policing assistance for associations; and more. Joanne A. Peña, cmca®, ams®, pcam®, Horizon Management Company; Steve Roseman, esq., Roseman & Associates, apc

*CCAL member

www.cai-glac.org | September/October 2017

CAI-Greater Los Angeles Chapter

CAI Presents its

CALIFORNIA COMMON INTEREST DEVELOPMENT LAW COURSE Thursday, October 19, 2017 8:00 a.m.-5:00 pm. Sheraton Universal Hotel 333 Universal Hollywood Drive Universal City, CA 91608

WHO SHOULD ATTEND • Community Association Managers • HOA Board Members/Homeowners • Attorneys Practicing CID Law

The most comprehensive legal course available for professionals managing community associations. Participants will be provided with a comprehensive review of California and Federal laws affecting community associations, including the Davis-Stirling Act, California Corporations Code, Common Interest Law and specifics relating to common interest developments.

INSTRUCTORS

REGISTRATION C AI Member $95 CAI Nonmember $130

Lisa Tashjian, esq. is partner of the law firm Beaumont Gitlin Tashjian. She has devoted her career to representing community associations. While she provides the firm’s clients with legal advice on all areas of CID law, she focuses her practice on litigation, including dispute resolution, arbitration and trial work, and supervises the firm’s attorney-managed assessment collections department. Lisa is a past president of the Channel Islands and Greater Los Angeles Chapters and serves on the CAI-GLAC Legislative Support Committee.

Registration fee includes: Continental breakfast, lunch and a comprehensive manual to save as a valuable resource. This course satisfies the 8-hour California Law Course requirement for California manager certification.

CAI-Greater Los Angeles Chapter

Matthew Gardner, esq. is a senior associate with Richardson Harman Ober PC where he has specialized in real estate law and the exclusive representation of community associations throughout Southern California for more than 15 years. Matt serves as Chair of the CAI-GLAC Publications Committee, Editor of Focus Magazine and Facilitator at Essentials of Community Leadership Workshops.

September/October 2017 | www.cai-glac.org

welcome

New CAI-glac Members! as of August 31, 2017

BUSINESS PROFESSIONALS CSG Protective Services, Inc. Newman & Company, CPAs Nularis, Inc./Ledegance Shaw, Moses, Mendenhall Insurance Strategic Termite & Pest Control V3 Insurance Partners COMMUNITY ASSOCIATIONS Granville Towers Hollywood Condominiums COMMUNITY MANAGERS Brianne Ackerman FirstService Residential AAMC Alicia Aitken Cabrini Villas HOA Breanne Atha Common Interest Services, Inc. Emily Case HOA Organizers, Inc. Jocelyn James The Diplomat COA

RECRUITER Brian Fleming CAI National CAI National Timothy Howett, Esq. Omar Bayter CAI National

Isha Joseph Cameo Woods HOA Matt Meadors HOA Organizers, Inc. Priscilla Naiman Partners Community Management, Inc. Nelly Penalonzo Manhattan Village HOA Rose Rivera CAI National HOA Organizers, Inc. Tracy Vees Horizon Management Company AAMC Sascha Macias, CMCA®, AMS®, PCAM® Christian Radu FirstService Residential AAMC Donald Campbell, CCAM®, CMCA®, Cecil Rucker AMS®, PCAM® FPI Management Nels Atha, CCAM®, CMCA®, AMS®, John Peter Silva PCAM® Neda Nehouray, CMCA®, AMS® CAI National

HOMEOWNER LEADER Donna Coffey

Gina Roldan Neda Nehouray, CMCA®, AMS® Pete Ong, CMCA®, AMS®, PCAM® CAI National Neda Nehouray, CMCA®, AMS® Joanne Peña, CMCA®, AMS®, PCAM® Sascha Macias, CMCA®, AMS®, PCAM® Bridget Bell Reed Angela Nazari, CMCA®, AMS® CAI National

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

www.cai-glac.org | September/October 2017

CAI-Greater Los Angeles Chapter

Our Thanks to Renewing Members! As of August 31, 2017

BUSINESS PROFESSIONALS Accurate Termite & Pest Control ADT Security All Valley Washer Service American Technologies, Inc. Association Reserves, Inc. Bay Alarm Company Berding & Weil, LLP BPR, Inc. BRS Roofing, Inc. Data Systems Services Creighton Tevlin CPA Fireplace Solutions The Chimney Sweeper GetDocsNow.com Master Property Improvement Co. McGowan Program Administrators MG Skinner & Associates Mulholland Security Centers, Inc. Oakridge Landscape, Inc Pacific Premier Bank Payne Pest Management, Inc. Preferred Commercial Painting, Inc. ProTec Building Services Richardson Harman Ober, PC S.B.S Lien Services Sandra Macdonald Insurance Securitas Security Services USA, Inc. Sherwin-Williams Paint Sonnenberg & Company, CPAs Stan Smith Associates Tinnelly Law Group U.S. Bank Van Dijk & Associates, Inc. Vet-Sec Protection Agency WICR, Inc., Waterproofing & Decking COMMUNITY ASSOCIATIONS Bedford Parc HOA Bel Air Crest Master HOA Breakers at Del Amo HOA Bridgeport HOA Chatelaine Condominium Association Del Prado HOA Fusion at South Bay COA Harbor Gate HOA Hermosa Surf Condominiums, Inc. Marineland Community Association Northstar COA Old Orchard I HOA SummerWind HOA Tarzana Woods HOA The Collections at Downtown Burbank The Colony at Westwood HOA Tierra Verde V HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Appleby Property Management, Inc. Associa-PCM Cardinal Management Group Condominium Administration Co., Inc. Coro Community Management & Consulting International Realty & Investments Prime Association Services S.K. Management Company, LLC Valencia Management Group AAMC COMMUNITY MANAGERS Ben Bar, CMCA® Allstate HOA Management Bianca Berredo, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC Christina Bielfelt HOA Made Easy Management Co. Sylvia Castro PMP Management, AAMC Monica Cooper Ross Morgan & Company, Inc. AAMC Corinne Crawford, CMCA® The Management Trust David Diers, CMCA® The Village Condominium Owners Association Alana Ellis Cardinal Real Estate Group Inc. Carrie Field Valley Association Management, Inc. Danielle Glass-Hays Hays Management Group Lynelle Glysson, CMCA®, AMS®, PCAM® Empire West HOA Kevin Haegele, CMCA®, AMS® PMP Management, AAMC Wendy Heffernan, CMCA®, AMS® Belcaro Garden Society Diane Hilliiard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc. AAMC Cathy Hodek, CMCA® Del Prado HOA Brittany Joseph Seabreeze Management Company AAMC John Ko, CMCA® Janes Management Donyelle La-Key, CCAM®, AMS®, PCAM® Horizon Management Company AAMC Uther Lai Pro/Service Realty & Management Beau Leaman, CMCA®, AMS® National Property Management Group, Inc.

Ted Loveder, CMCA®, AMS®, PCAM® Crown Towers HOA Laurie Mark, CMCA®, AMS®, PCAM® Valencia Management Group AAMC Debra McGary, CCAM®, AMS® Horizon Management Company Corinne Michaud, CCAM® Scott Management Company Heather Miller, CMCA® Rubin Properties, Inc. Keila Miramontez, CMCA®, AMS® PMP Management, AAMC Vicki Olson, CMCA®, AMS® PMP Management AAMC Martha Olvera, CMCA® Horizon Management Company AAMC Joanne Peña, CMCA®, AMS®, PCAM® Horizon Management Company AAMC Yami Perez ICON Realty Services, Inc. Evelyn Polizzi, CMCA® EDP Services Linda Radtke, CMCA®, AMS®, Friendly Valley Recreational Assoc.

Kristen Raig, AMS® Rolling Hills Community Association Vickie Sellman, AMS® Sky Community Association Diana Stiller, PCAM® 101 Ocean Condominium HOA Monica Trautman Oak Park Calabasas HOA Michelle Underwood, CCAM®, CMCA®, AMS®, PCAM® Briarcliffe Towne Homes Association Cari Williams, CMCA® Encino Oaks HOA Ida Worth, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC COMMUNITY ASSOCIATION LEADERS Jerri Allyn Wayne Baldasso Jeff Gausepohl Jeff Goodwin Lynn Ruger Mary Totten

September/October 2017 | www.cai-glac.org

Advertisers Index 23 Pacific Utility Audit

29 Association Reserves, Inc.

32 Poindexter & Company, CPAs

29 Beaumont Gitlin Tashjian

31 Preferred Commercial Painting, Inc.

11 Bentley Community Management 19 Cline Agency Insurance Brokers 14 Critter Busters

2017 CALENDAR OF EVENTS SEPTEMBER 16 Essentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

22 Chapter Board of Directors Meeting & Strategic Planning – 8:30 a.m. Centerpointe Club, Playa Vista, CA 90094 27 Downtown Luncheon Program for HOA Boards and Managers & Annual Meeting – 11:30 a.m. Millennium Biltmore Hotel, 506 S. Grand Ave., Los Angeles, 90071

OCTOBER 10 South Bay Educational Program for HOA Boards – 6:30 p.m. DoubleTree by Hilton Torrance-South Bay, 21333 Hawthorne Blvd., Torrance, CA 90503

25 Nularis, Inc./Ledegance

34 Animal & Insect Pest Management, Inc.

23 Ferris Painting, Inc. 19 Fireplace Solutions The Chimney Sweeper 24 Hi-Tech Painting and Water Proofing 19 Mutual of Omaha Bank/ CondoCerts

18 R.W. Stein Painting, Inc. 30 Reserve Studies Inc. 5 Sandra Macdonald Insurance 15 Select Painting & Construction 22 Steven G. Segal Insurance Agency, Inc. 9 SwedelsonGottlieb 7 Union Bank HOA Services 30 Witkiin & Neal, Inc.

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.

11 Luncheon Program for HOA Boards and Managers – 11:30 a.m. Olympic Collection, 11301 W. Olympic Blvd.., Los Angeles 90064

Ad Size

Ad Dimensions

Members

Non-Members

19 California Common Interest Development 8-Hour Law Course – 8:00 a.m.

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

20 CAI State Legal Forum Sheraton Universal Hotel, 333 Universal Hollywood Dr., Universal City, CA 91608

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

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

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 9.75" high (Vertical)

$800

$1,400

Sheraton Universal Hotel, 333 Universal Hollywood Dr., Universal City, CA 91608

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

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

November 04 Essentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

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.

08 New Member Welcome Reception – 3:00 – 7:00 p.m. Chapter Office, Glendale 11 Casino Night – 6:00 p.m. Millennium Biltmore Hotel, 506 S. Grand Ave., Los Angeles, CA 90071 15 Skirball Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, 2701 N. Sepulveda Blvd., Los Angeles 90049

DECEMBER 01 Holiday Happy Hour – 4:00 p.m. Bel Air Crest Master Association Clubhouse 06 San Gabriel Valley Homeowners Association Marketplace – 6:00 p.m. Pasadena Hilton, 168 S. Los Robles Ave., Pasadena, CA 91101

08 Spark of Love Toy Drive Delivery – 5:30 a.m. Location TBD 15 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

www.cai-glac.org | September/October 2017

CAI-Greater Los Angeles Chapter

Community Associations Institute Greater Los Angeles Chapter Presents

m A r k e t p l Ac e n o i t A i c o s s H om e ow n e r s A

Wednesday, December 6, 2017 Pasadena Hilton 168 S. Los Robles Ave. Pasadena, CA 91101

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

Admission & Self Parking • Complimentary for HOA Board Members and Managers

• Spouses & Guests: $10 Per Person

With the Gift of Free Legal Advice—A Guide to HOA Law

Schedule

BaR SPOnSOR

6:00 p.m. Meet & Greet Service Providers

to talk about present & future projects. Enjoy complimentary hors d’oeuvres.

7:30 - 8:30 p.m. Educational Presentation

Navigating the Waters: A Guide to HOA Law This presentation explores multiple scenarios and case studies about the everyday governance in community associations and offers essential strategies for navigating related legal issues such as insurance, liability, and arbitration. Key takeaways include practical theories, remedies, and defenses for both associations and managers.

Reservations Required.

Speakers:

Please Register by December 1

Karen Kokowicz, CCAM®, CMCA®, PCAM® Coro Community Management & Consulting

Phone: 818-500-8636 Online: www.cai-glac.org

Steven A. Roseman, Esq. Roseman & Associates, APC

ShOW BaG SPOnSOR

ge r Mana A board h c a for e re HO Prize s 5 or mo uests. ge r g bring ge r wh o o r m a n a Mana sts e h t t gue e for l Priz the mos a i c e p e. S p ig ns u da nc s n e o t t h w in a

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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