Focus Magazine - September/October 2021 Issue

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

September/October 2021

plan to action

FOCUS MAGAZINE

ART CONTEST

Rise Together

VOTE FOR YOUR FAVORITE!

In January the CAI-GLAC Publications Committee introduced the Rise Together Art Contest, inviting chapter members to reveal their artistic talents and submit a personal work of art suitable for print that would illustrate this year’s theme “Rise Together.” The Committee encouraged submissions that would inspire, engage our members, and provide a sense of community. The contest winner’s artwork will be featured on the cover of Focus Magazine’s November-December 2021 issue.

Please vote for one of the submissions below by using this QR Code or visiting www.cai-glac.org.

Voting Deadline: Friday October 8, 2021.

Firefall, Yosemite I took this shot several years ago after waiting for the right conditions. Firefall is only possible when several factors come together. Enough snowfall so that melting snow creates the waterfall, the sun has to be in the right spot to illuminate the waterfall at sunset, a warm day to melt the snow, and a clear horizon at sunset so that clouds do not block the sun from hitting the granite cliff and illuminate the waterfall and spray in that warm glow that makes it look like lava. It is these factors rising together that create the scene. If any one of them is missing, the magic of Firefall cannot happen.

Robert DeNichilo, Esq. CCAL Richardson Ober DeNichilo, LLP

Pride. Freedom. Unity. Life. Strength. Hero.

The moment I saw this eagle it called my name.

The timing could not be more perfect considering the 244th Marine Corps birthday was approaching.

This picture was inspired and given to a Veteran in the Marine Corps as a Thank you for his service.

Jennifer Silva Dunn-Edwards Paints

Together We Rise: Light at the End of the Tunnel.

This was taken in Antelope Canyon, a slot canyon on Navajo land east of Page, Arizona. These canyons are formed deep below the ground over millions of years by water rushing through and cutting its way through sandstone or limestone.

The resulting sculpture formed typically extends through to the light above, as shown in this photograph. No matter how low you may go or how dark things may seem, together we always find the light at the end of the tunnel.

Matt D. Ober, Esq. CCAL Richardson Ober DeNichilo, LLP

2021 BOARD OF DIRECTORS

NEWSWORTHY

OFFICERS Teresa Agnew, President Roseman Law, APC, 818-380-6700 Alexandria Pollock, CMCA®, AMS®, PCAM® , President Elect BuildingLink.com, LLC, 310-925-9001 Isaac Camacho, Vice President Accurate Termite & Pest Control, 310-837-6483 Angelique Madrigal, Secretary Ross Morgan & Company, Inc. AAMC®, 818-907-6622 Brian Fleming, CMCA®, AMS®, Treasurer 619-347-5123

6 Champlain Collapse: Structural Lessons to be Learned 8 Decisive Action: How One Local Community Prevented Its Own Tragedy 10 Deferred Landscape Maintenance 12 Disaster Strikes Again!

14 Is That Covered? The Most Common Question Posed to an HOA Insurance Professional 16 Do You Know What Disclosures Are Required?

20 Before Disaster Strikes 30 Avoiding Communication Roadblocks with Managers and Board Members

DIRECTORS Gary Burns, Mulholland Heights HOA, 818-326-2000 Matt Davidson, CCAM-HR®, CMCA®, AMS®, Action Property Management AAMC®, 800-400-2284 Angelique Madrigal, Ross Morgan & Company, Inc. AAMC®, 818-907-6622 Matt Meadors, CMCA®, AMS® HOA Organizers, Inc., 818-778-3331 Kim Province, Advanced Election Services, 714-783-8646 Erik Rivera, CMCA®, AMS®, PCAM®, Manhattan Pacific Management, Inc., 844-511-0644 Diane Schoolsky, Lingate HOA, 323-640-1277

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2021 COMMITTEE CHAIRS COMMUNITY EXPO Michelle Caldwell, ePipe Pipe Restoration Jennifer Silva, Dunn-Edwards Paints COMMUNITY OUTREACH Angelique Madrigal, Ross Morgan & Company, Inc. AAMC® Patti Specht, ServiceMaster Recovery by C2C Restoration EXECUTIVE RETREAT Alexandria Pollock, CMCA®, AMS®, PCAM®, BuildingLink.com, LLC FINANCE Nels Atha, CMCA®, AMS®, PCAM®, Common Interest Services, Inc. GOLF TOURNAMENT Julia Gomes, Accurate Termite & Pest Control Jeff Koscher, BluSky Restoration Contractors, LLC HOA EDUCATION Leslie Barton, CMCA®, PRECISION PAINTING Laura Aguilar, CMCA®, AMS®, Beven & Brock LEGISLATIVE SUPPORT Erik Rivera, CMCA®, AMS®, PCAM®, Manhattan Pacific Management, Inc. MANAGER EDUCATION Helen Cook, CMCA®, AMS®, HOA Organizers, Inc. Martha Perkins, CMCA®, AMS®, Action Property Management AAMC® MEDIATION SERVICES Steven A, Roseman, Esq., Roseman Law, APC MEMBERSHIP Mimi Cortes, SAX Insurance Agency Tracy Robinson, CCAM®, PMP Management AAMC® PROGRAMS/LUNCHEONS/WEBINARS Sascha Macias, CMCA®, AMS®, PCAM® Neda Nehouray, CMCA®, AMS®, PCAM®, HOA Organizers, Inc. PUBLICATIONS Jamilla Davis, Dunn-Edwards Paints Jennifer Schuster, Valley Alarm SOCIAL Ashley Hibler, McKenzie Rhody LLP Michael Valenzuela, Vista Paint Corporation SOCIAL MEDIA Alana Walker, Reconstruction Experts, Inc. Scott Mikelonis, PMP Management AAMC® WINE NIGHT Pamella De Armas, Silicon Beach Insurance Services Elaine Gower, The Naumann Law Firm, PC

CAI-Greater Los Angeles Chapter

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

NOTEWORTHY 18 24 26 28 32 33

Dodger Night Recap Happy Hour Recap Dinner at Favorite Bistro Recap Executive Retreat 2021 Recap News From Sacramento PCAM® Pride and AAMC® Award

FYI

4 34 36 36

2021 Upcoming Events Membership News Advertisers Index Advertising Information

Our thanks to the Focus Magazine Committee: Co-chairs: Jamilla Davis, Dunn-Edwards Paints Jennifer Schuster, Valley Alarm Sean Allen, Esq.,Roseman Law, APC Suvany Cowie, West Hills West Creek HOA Elaine Gower, The Naumann Law Firm, PC Joshua Grass, Fenn Termite & Pest Control Miranda Legaspi, Platinum Security Jocelle Maliwanag, American Heritage Landscape Lesley Millender-Irwin, CCAM®, CMCA®, AMS®, PCAM®, Excelsior at the Americana at Brand HOA Diane Rossiter, CMCA®, AMS®, Bell Canyon Association 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 STAY CONNECTED: 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 © 2021.

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

1010 N. Central Avenue, #316 Glendale, CA 91202 Office: 818-500-8636

September/October 2021 | www.cai-glac.org 1

NOTE

FROM THE EDITOR’S DESK

PLAN TO ACTION AS AN ASSOCIATION OF PROFESSIONALS AFFORDED THE OPPORTUNITY TO SERVE AND MANAGE OUR LOCAL HOA COMMUNITIES, THE RECENT TRAGEDY OF CHAMPLAIN TOWERS HAS PROVIDED A FRIGHTENING LESSON TO OUR COMMUNITIES REGARDING THE POTENTIAL HARM THAT CAN ARISE WHEN A BUILDING IS FALLING APART AND A BOARD FAILS TO ACT. This issue of Focus deals with various proactive steps volunteer leaders in our communities can take to help deter the potential for disaster. You will find the recent story of the catastrophe in Florida; there is a detailed overview of what happened. Next, we will learn about a local community that faced some tough decisions after being visited by Los Angeles Building & Safety and see how that board took action to protect their community.

We will also cover the risks of deferring maintenance and how the tragedies in Berkeley and Florida might have been avoided. Our contributors have targeted specific topics such as landscaping,

structural maintenance, and how to protect your community and its future budget. Preparing for the worst is always smart, and we will learn about various methods of emergency planning. We discuss concerns of insurance and liability and how a homeowners association can become well versed in protecting their assets.

You will also find an article covering disclosures and how they protect your community from a legal perspective. Finally, we will demonstrate in this issue how to facilitate the communications process between managers, board members, and homeowners to streamline the decision-making process.

There are many lessons to be gained from these tragic events, and it is our hope that our communities will come together to study the mistakes made and use this knowledge to protect themselves and future residents. As George Santayana so aptly stated, in Reason and Common Sense, 1905: — Those who cannot remember the past are condemned to repeat it.

I hope everyone has a wonderful Summer!

Focus Magazine Co-Editor Jennifer Schuster, Valley Alarm

Legal FORUM CAI

CALIFORNIA COMMUNITIES

A LIVE VIRTUAL EVENT | OCT. 13–15, 2021 Register today: www.cailegalforumca.org 2

www.cai-glac.org | September/October 2021

CAI-Greater Los Angeles Chapter

MESSAGE

FROM THE PRESIDENT

HAPPY FALL, CHAPTER MEMBERS! FALL IS ONLY A FEW WEEKS AWAY; PUMPKIN SPICE LATTES ARE IN SEASON; IT’S BUDGET SEASON FOR OUR MANY OF OUR COMMUNITY MANAGERS AND BOARD MEMBERS; AND THE CHAPTER IS LOOKING AT SLOWING RESUMING “IN-PERSON” EDUCATIONAL EVENTS. OUR BOARD OF DIRECTORS AND STAFF CONTINUE TO MONITOR THE COUNTY MANDATES AND, AS ALWAYS, WILL CONTINUE TO PUT THE SAFETY OF OUR MEMBERS FIRST. Just as many communities start planning for the upcoming year with budgeting and strategic planning, our board of directors held its annual strategic planning session under the leadership of our President Elect Alexandria Pollock. It was a collaborative session with renewed goals for the Chapter, fiscal responsibility, and an optimistic look for 2022.

I am excited to announce our first in-person educational luncheon will be held on September 22nd outdoors at the Skirball Center celebrating our theme “Rise Together” with past presidents and a panel of industry leaders. They will be sharing their success stories—professional growth in the industry, how peers helped them along the way, how to define one’s brand and valuable career tips.

Get Ready! The season is buzzing with several upcoming events.

Get the golf clubs out! Our Golf Committee has been working hard to plan the 2021 Annual Golf Tournament to be held on Monday, October 18, at Porter Valley Country Club. If you want to get in some practice sessions, they are holding two FREE Golf Clinics prior to the event. Check out our website www.cai-glac. org for more information. “The Hills are Alive” Wine Night will be held on Saturday, October 23, at 1:30 p.m. at the beautiful Saddlerock Vineyards in the Malibu mountains. Come for stunning views, fine wines, and networking with fellow chapter members.

You can never say “Thank You” enough! I want to continue to acknowledge the leaders of the Chapter, our board, our committee co-chairs, committee members, our program speakers and each one of you who have continued to support the Chapter through sponsorships, contribution of your time and attendance at our events. Your support is much appreciated, and I am proud to serve and work side-by-side such a dedicated group of people.

Mark your calendars! Our Awards Gala “Walk On The Wild Side” will be held on Saturday, November 13. The Social Committee is thrilled to bring our chapter an evening of awards, dinner, and dancing under the stars at the L.A. Zoo’s Treetop Terrace. Look for nomination forms coming out in the next few weeks and nominate a colleague as we recognize our volunteers with our “Industry Excellence Awards.”

Follow us on our social media platforms and website www.cai-glac.org, and look out for email blasts from the Chapter with more information.

In closing, thank you for embracing our chapter theme “Rise Together,” which is to support, motivate and inspire one another. “Surround yourself with positive people that lift, motivate and inspire you.” Excited to see many of you at our upcoming chapter events!

Be well, 2021 Chapter President Teresa Agnew Roseman Law APC

One of our goals for 2021 was to provide additional information for our members. Check out our “new” chapter blog “HOA Community Now” for industry best practices written by our Chapter Executive Director, Joan Urbaniak.

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.

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 3

2021 UPCOMING CHAPTER EVENTS

2021 CAI-GLAC Super Sponsors

SEPTEMBER

¢ PLATINUM

OCTOBER

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Board Leadership Workshop (Part 1) – 9:00 a.m.

17

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

18

Board Leadership Workshop (Part 2) – 9:00 a.m.

22

In-person Committee Chair Strategic Planning – 9:00 a.m.

22

In-person Educational Luncheon/Annual Meeting – 11:00 a.m.

24

Virtual CMCA Review – 8:30 a.m.

05

Virtual Managers Only Workshop – 1:00 p.m.

13-15 Virtual State Legal Forum (6 hours of credit) – 9:00 a.m.

NOVEMBER

DECEMBER

18

In-person Golf Tournament (Porter Valley CC) – 8:00 a.m.

23

In-person Wine Night (Saddlerock Ranch) – 1:30 p.m.

27

In-person Valencia Breakfast (Bridgeport COA) – 8:00 a.m.

29

Trunk-or-Treat (San Fernando Valley) – 3:00 p.m.

30

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

03

Virtual HOA Evening Webinar – 7:00 p.m.

06

Virtual Board Leadership Workshop-Part 1 – 9:00 a.m.

10

Virtual Reverse Trade Show – 1:00 p.m.

13

In-person Awards Celebration (L.A. Zoo) – 6:00 p.m.

13

Virtual Board Leadership Workshop- Part 2 – 9:00 a.m.

17

In-person Educational Luncheon (Skirball Cultural Center) – 11:00 a.m.

19

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

03

In-person Holiday Happy Hour (DoubleTree by Hilton Downtown) – 4:00 p.m.

17

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

Berding | Weil Critter Busters, Inc. Dunn-Edwards Paints Manhattan Pacific Management, Inc. Pacific Western Bank PRECISION PAINTING The Naumann Law Firm, PC Whitestone Industries ¢ GOLD Association Reserves-CA/Los Angeles BEHR PAINT COMPANY Diversified Asphalt Products Fenton Grant Mayfield Kaneda & Litt, LLP Life Specialty Coatings Popular Association Bank ProTec Building Services Securitas Security Services USA, Inc. Sherwin-Williams Paint Company Tinnelly Law Group Vista Paint Corporation ¢ SILVER ADAMS | STIRLING PLC ADCO Roofing & Waterproofing CertaPro Painters of Pasadena CIT-Community Association Banking Division General Pavement Management, Inc. GNG Vinyl Fencing, Inc. Nu Air Services, Inc. Oakridge Landscape Owens, Moskowitz & Associates ProAM Construction Riley Pasek Canty, LLP Segal Insurance Agency, Inc. Select Painting & Construction, Inc. Silicon Beach Insurance Services ¢ BRONZE ALLBRIGHT 1-800 PAINTING Alliance Association Bank Centurion Group Beaumont Tashjian Enhanced Landscape Management Ferris Painting, Inc. Landsystems—A Monarch Landscape Company Poindexter and Company, CPAs Reserve Studies Incorporated Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP We thank our 2021 sponsors who have made a substantial contribution to ensure our continued success this year.

Events subject to change, see website for possible updates.

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www.cai-glac.org | September/October 2021

CAI-Greater Los Angeles Chapter

REPRESENTING COMMUNITY ASSOCIATIONS IN

ALL AREAS OF REAL ESTATE LAW

• Drafting and enforcement of Bylaws and CC&Rs • General litigation, including mediation and arbitration of disputes with owners • Construction defect litigation • Insurance bad faith litigation • Collection of delinquent assessments • Providing general business advice to homeowners associations.

11400 West Olympic Boulevard Ninth Floor • Los Angeles, CA 90064 (PH.) 310.478.4100 • (FAX) 310.478.6363 www.wrslawyers.com CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 5

CHAMPLAIN COLL APSE : STRUCTURAL LESSONS TO BE LEARNED  By Dr. Dilip Khatri, PhD, SE

CH A MPL A IN H A S BROUGHT THE “UGLY” TO THE FOREFRONT. AN ENTIRE BUILDING COLLAPSES FOR SEEMINGLY “NO REASON?” HARDLY THE CASE; THIS AUTHOR DOES NOT BELIEVE IN “SUDDEN COLLAPSE.” NOTHING ABOUT BUILDINGS IS SUDDEN. EVERY DISASTER OF THIS TYPE IS THE CUMULATIVE RESULT OF PRIOR WARNINGS AND MISCALCULATIONS IGNORED. THINK BACK TO MANY OF THE BAD CIRCUMSTANCES YOU HAVE EITHER LEARNED ABOUT OR BEEN A PARTY TO. MISSED FLIGHTS, MISROUTED LUGGAGE, LOST SPACECRAFT BY NASA, COLLAPSED BUILDINGS, AND CAR ACCIDENTS OFTEN INCLUDE AS A PART OF THEIR STORY SOME ELEMENT OF HUMAN ERROR CAST AS “BAD LUCK,” OR “A SERIES OF SMALL MISTAKES GONE TERRIBLY WRONG.” MURPHY’S LAW IS ACCURATE BUT CAN AND MUST BE MANAGED. Concrete structures are noted for their longevity and have an excellent record of accomplishment related to fire resistance, earthquake survival, corrosion protection, and providing a “rock solid” feeling of impenetrable existence, or so we thought. But as I learned from a beloved late Professor, Taylor Meloan [Dean, USC School of Business], “Nothing lasts forever.” Everything has a timeline.

1 University of Michigan, Center for Sustainable Studies: 257 Billion SF of Residential Space (2020); 87 billion SF of Commerical Space (2020) 2 Everlasting: The age of the Earth is 4.5 billion years, and humankind has been walking the planet for approximately 50,000 years. The oldest structures [Stonehenge] are estimated at 10,000 years. For our time horizon, anything over 100 years is exceptional.

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Four basic materials constitute the building blocks of civil engineering: Masonry, Concrete, Steel, and Wood.

Within the United States, there is 344 billion square feet of building space [commercial buildings + residential space]1. Of that, 257 billion [75%] consists of wood structures [residential space comprising single family homes and multi-family apartments/ condominiums]. Masonry/Stone has the longest history as building material that is still commonly used, dating back 5,000 years to the Pyramids of Egypt. Concrete is modern man’s invention to simulate stone/rock and was developed in the 1700s. Steel is the relative newcomer, getting its start in the 1700s and proliferating in the late 1800s with the blending of carbon, silicon, and iron to create iron alloys. Wood has been around for ages (1000+ years) but has never dominated the architectural horizon because of its low relative strength compared to the other three materials.

These four building blocks all represent different service time horizons. Masonry has a lifespan of beyond 50 centuries in certain recorded instances and continues to be the “everlasting” material [as for humankind, “everlasting” is a philosophical construct]2 . Concrete has shown to be reliable beyond 200 years but has a diminished performance rating because of corrosion and its limited ability to withstand earthquakes. Steel has performed up to 100 years reliably, but as we observe with our fractured steel bridges, the long-term effects of rust eventually will render every steel building and bridge inoperable. One day our beloved national treasure, The Golden Gate Bridge [100% steel bridge] will reach the end of its life. Wood rarely survives beyond 80 years, but there are examples of 200-yearold historic wood structures that have managed to survive with maintenance. The point is, EVERYTHING has a timeline. Every building has a service life. Just like your favorite movie, there is a beginning, middle, and end.

CAI-Greater Los Angeles Chapter

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hamplain Towers collapsed after years of neglect. The official cause of collapse remains under investigation, but I personally visited the site, reviewed the structural plans, examined the visible evidence, and reached some basic conclusions. First, the building experienced years of neglect and obvious signs of structural failure in-process were noted by the Association’s experts. Secondly, there is no doubt that soil was a major factor in this event. The foundation comprises driven concrete piles of which the depth was not specified on the structural engineer’s drawings. Looking at the public documents, the Association Board was faced with a $9 million repair cost which was knowingly ignored or “tabled for further discussion.”

As a structural engineer that works with HOAs regularly, I understand this political and financial stalemate that confronts many associations and have experienced this firsthand in many geographical locations. These include but are not limited to such areas as Northern and Southern California, Texas, Florida, and Nevada. The ugly truth from Champlain is that many owners simply assumed their building would continue to serve them faithfully without the need for routine maintenance, periodic testing, and structural examination, and without appropriate ongoing investment in this, their most valued asset: their home.

Cars need an oil change every 3,000 to 5,000 miles. Your teeth need to be cleaned at least once a year. Jacuzzis and pools need to be drained and washed periodically in accordance with

professional recommendations. Italian marble requires special buffing with expertise to keep its luster. Lawns need to be mowed. But what do we do with our building structures? What do we do about them? Do we wait until they crack, fall, or an earthquake brings the whole castle crumbling down? That is hardly the right spirit for life’s most critical priorities! As an HOA expert for 30 years, I have seen associations spend millions of dollars on upgrading a putting green while structural repairs on garage roofs near collapse were put off. Structural Engineers do not deliver cosmetics for your facial treatment, we are the bones that keep you walking.

Residential multi-family property owners [i.e., homeowners associations] must face the “ugly” and deal with these issues to put life and limb above their new chandeliers, velvet carpet entryways, stone masonry party walls, new pool decks, and charming facades that are beautiful but do not last, while meanwhile the footings are sinking. The buried residents of Pompei can attest to this lesson.

Dr. Khatri is a Structural Engineer with 39 years of experience in structural design, construction, and project management. He has worked with HOA clients for 30 years and is an active member of CAI in seven chapters. Dilip can be reached at dkhatri2006@gmail.com.

WALNUT CREEK COS TA MESA SANDIEGO

714.429.0600 W W W.BERDINGWEIL .COM

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 7

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HE AIR WAS WARM ON THAT FATEFUL MORNING OF JUNE 24, 2021. News of the partial collapse of the beachfront condominium complex, Champlain Towers, in Florida, was heard around the country. It was initially announced that one person was known to be dead and 99 remained unaccounted for. The immediate question burning in everyone’s minds was, “How could this have happened?”

DECISIVE ACTION: How One Local Community Prevented Its Own Tragedy  By: Marcia Coppola, CMCA®, AMS®, PCAM®

News reports state that this tragic event was likely the combined result of poor planning, underfunded reserves, dissension amongst board members, and tension between homeowners.

Engineers warned that the community was plagued with crumbling concrete and corroded rebar. It even appeared that the Association had known about the major structural repairs for at least three years prior to the deadly collapse and was merely days away from collecting on a $9 million-dollar special assessment in an effort to make major repairs to the community.

This tragedy immediately caused an uproar throughout the community association management industry. Condominium complexes and board members everywhere contacted their community managers to inquire about what they could do to help prevent something of this magnitude from happening to them. Industry professionals quickly held question-and-answer sessions to help folks understand and navigate next steps. Little by little, we saw communities taking action to protect their residents and investments. This type of proactivity from Board

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Members is what we could only hope for to aid in preserving aging and failing communities.

The situation reminded me of a community located in Encino, CA, which I managed years ago; they, too were faced with failing common area components, pending litigation, and looming special assessments in the millions.

This community had numerous common area components in danger of failing, as identified by the Los Angeles Department of Building and Safety (LADBS). The issues included a leaking pool and spa area with water going through the garage ceiling, a podium deck in need of waterproofing, and elevators in immediate need of modernization, just to name a few. At the time, the association was experiencing legal issues with a contractor who walked off the job prior to completion and was currently in litigation. The homeowners within the community had differing opinions on what needed to be done and many were very vocal about their points-of-view. In a short period of time, a new board of directors was elected, and they got to work at once.

The board immediately collaborated with their management team to interview quite a few construction managers, bank loan representatives, and vendors to properly vet and obtain information which would allow them to effectively tackle the obstacles at hand. They spent months vetting industry professionals until they were able to engage vendors able to complete the pending projects. All the while, the board was the subject of harassment; they were not only disliked but verbally abused by many owners. Clearly there was a high level of stress among the residents, but the board persevered. Once they decided on the vendors and final numbers, announcements were made to inform the Association of the coming assessments. Eventually, it was determined that what was needed to accomplish this project was a bank loan just short of $5 million, a per-unit special assessment of $40,000 and an emergency assessment of approximately $9,000.

As one might imagine, the community was displeased at this news, and there was a significant uproar, but plans continued, and commencement of construction was finally on the horizon. The board held frequent meetings and Town Hall sessions to keep the community informed regarding the project. They exercised their legal rights as board members and voted to levy the emergency special assessments. They made the difficult decision to push through a massive special assessment, approve a bank loan, and spent countless hours working with the construction, legal, and management teams to see this project through. Fortunately, the board did not back down when faced with sustained adversity from the community. What came of this project was a new courtyard and podium deck, new pool and spa area, modernized elevators, and a garage free and clear of any structural issues and car-sized Smitty Pans! This complex was now deemed safe by the Los Angeles Department of Building and Safety, thanks to the board they had in place and the swift action taken.

CAI-Greater Los Angeles Chapter

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S COMMUNITY MANAGERS, WE ARE ALL FACED WITH MANY DIFFERENT CHALLENGES and work with communities which all have their own sets of unique issues. It is our job to help identify potentially dangerous situations and to keep our boards informed. After hearing and seeing the magnitude of what occurred in Surfside, FL, I believe managers and board members will become more astute in their observations and more proactive with the management of their buildings. As we move ahead, I would suggest that we as managers conduct more site inspections and meet frequently with industry professionals, such as construction managers, who are better equipped and qualified to identify potential problems and issues. Many vendors would be happy for the opportunity to do this and in most cases would write up a reports and assessments related to their findings for at most, a nominal fee.

Should any issues, whether observed by the community manager or other vendor of the association seem to be of growing concern, I would encourage the board to meet with and interview the construction consultant or other appropriate professional who can assist in communicating and outlining the severity of the issues at hand. It is advisable at times to seek multiple opinions and obtain a variety of bids so that the association can properly budget for repairs. If funding is required, determine whether items can be replaced using Reserve funds and evaluate whether or not there are adequate funds to do so. A special assessment may be needed, and perhaps seeking a bank loan for funding may be an option. I would suggest reaching out to legal counsel for more guidance on these topics.

Once any community decides to undertake a major project which may impact the quality of life for its residents, not to mention their financial situation, frequent communication is always advisable.

Keep the community informed of the steps being taken by way of notices and Town Hall meetings. The more information that is disseminated, the more educated your homeowners will be.

This will help to keep the project moving more smoothly and help the community to make informed decisions. As always, with any major construction project, it is always advisable for the association to consider employing a construction management company to help with a multitude of tasks. They are helpful in holding contractors accountable through the process, making certain the association stays within budget, and ensuring that the project gets completed in a timely manner. As exemplified by the Encino community, difficult and imperative tasks can be accomplished provided the board stays focused and determined to do what is necessary, despite any challenges encountered.

Tragically, what remains now at 8777 Collins Avenue is an empty space filled with memories. The people lost in this horrific event will forever remain in our hearts, and our industry will be changed forever due to this tragedy.

Marcia Coppola, CMCA®, AMS®, PCAM®, is Vice President of Manager Development at HOA Organizers, Inc., a full-service management company. She has been in the community association industry for more than 15 years and is well versed in complex building and construction issues. Marcia can be reached at marcia@hoaorganizers.com.

Lic.# 665826

1-800-410-5444 For helpful tips and examples of our work: CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 9

Deferred Landscape Maintenance  By Jocelle Maliwanag, MBA

the water needs is critical in order for the plant material to thrive. One way to ensure your system is operational, is having your current landscape vendor run an irrigation audit. This audit can look for broken sprinkler heads, lines, valves and much more. One broken sprinkler head could waste up to 25,000 gallons of water over a 6-month irrigation season.

If your system is not currently on a smart controller, you could look for rebates in your area to possibly convert. Smart irrigation controllers can save up to 25% more water than traditional irrigation controllers. Drip irrigation systems use 20 to 50 percent less water than conventional pop-up sprinkler systems.

In addition, an irrigation system that has a leak can waste thousands of gallons of water. Fixing your irrigation system will lead to cost savings and prevent your plants from dying.

TURF MAINTENANCE

Landscape maintenance and water management is essential for every community. The lack of maintenance and management will lead to deferred maintenance, which could increase future costs and negatively impact your properties.

When deferred maintenance in landscape isn’t handled properly, it is usually placed into a maintenance backlog and dismissed, which can lead to dead plants and subpar irrigation systems, ultimately decreasing the value of your home or complex. In order to avoid deferred maintenance the following must be managed and maintained.

IRRIGATION EVALUATION AND EFFICIENCY Irrigation is the foundation of your landscape community. It is imperative that there is a system and planning in place to make sure your irrigation system is running efficiently. Understanding

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Many of the grasses in Southern California are warm season grasses; these include Bermuda and St. Augustine, which should be fertilized about four times per year.

It is important not to over-fertilize these grasses. Applying too much fertilizer to your turf will cause the nitrogen and salt levels in the soil to increase rapidly, which ultimately kills the grass and turns it brown. Proper irrigation is essential to avoid over-watering and prevent excess moisture which leads to disease. Spring is a good time to dethatch and aerate, which removes build-up of dead plant material and improves the drainage throughout the year. Aeration is extremely useful in areas with clay soil and high traffic areas where soil has been compacted. By loosing the soil, air, water and nutrients will be properly spread throughout the grass, keeping them lush and green throughout the year.

WEEDS Although it is an added expense, mulching is one way to prevent weeds. Mulch keeps the soil moist and cool which minimizes light for weeds to grow. It is important to replenish the mulch as well, to avoid bare spots for weeds to grow. In lawns, minimize soil disturbance and let sleeping weeds lie. Remember to water the plants and not the weeds. One recommendation would be to place drip or soaker hoses beneath the mulch and water the plants

www.cai-glac.org | September/October 2021

you want. If you do need to remove weeds, you can tug them out or kill them at the root to ensure they will not grow back.

ANNUAL/PERENNIALS Annual plants live for one season and die off. Perennial plants grow every spring.

Although many communities have annual plants they change out seasonally, if you are on a tight budget, perennial plants would be more ideal—especially, if you are looking for long term sustainable plants.

In regard to maintenance, many annuals need water daily and one should make sure to water the soil not the plants. Perennials should be watered deeply, usually during the first growing season. Soil should be neither too dry or wet, and it is important to mulch around plants to minimize weeds.

TREES The health care of the trees in your community is vital. Proper pruning, trimming and tree care will ensure a lifetime of benefits. Here are some things to look for to safeguard your trees: V Make sure roots are moist and fibrous.

V Root ball should be firm to touch.

V Soil and roots should be joined firmly.

V Trunk and limbs free from insects and disease.

V Low hanging branches should be taken up to prevent falls and injuries.

In conclusion, properly maintaining your landscape is essential in beautifying your communities, while upholding a safe environment. This will also save you money in expenses that occur from deferred maintenance. It is vital to water and properly prune plants, turf and trees to prevent them from dying and getting disease. Continuing maintenance throughout the turf and planter beds will promote healthy growth. Pruning all shrubs and trees, fertilization, water management, and tree care will provide a vigorous community for years to come.

Jocelle Maliwanag is the Business Development Manager at American Heritage Landscape, a family-owned and operated full-service landscape management company since 1973. She can be reached at jmaliwanag@ americanheritagelandscape.com.

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 11

Disaster Strikes Again!

Disaster Strikes Again! ¢¢¢ By Dennis Brooks

HOAs should plan to maintain their buildings or plan for the consequences associated with the lack of planning!

W

hat do the cities of Berkeley, California, and Surfside, Florida, have in common? I am sure if you are involved in the HOA industry you likely know the answer to this question. They are both sites of major disasters that not only caused tremendous physical damage but also cost the lives of innocent individuals. The question is, was that property damage and loss of life avoidable? I believe that in both cases it was very avoidable.

On June 16, 2015, in Berkeley, California a balcony collapsed five stories above the ground, dumping all the occupants into the street below, severely injuring seven people and killing six. On June 24, 2021, in Surfside Florida, we all know from recent news stories that a twelve-story high-rise collapsed. There are many differences between these two disasters. For example, one building was a wood-framed structure on the West Coast and one was a steelreinforced concrete building on the East Coast. However, there are also some similarities between these two disasters that we should all learn from—or we will likely be forced to tragically repeat these situations in the future. Construction defects were found to contribute to the Berkeley balcony collapse, and there is already some speculation that construction defects may have also played a role in the Surfside collapse. Well-documented conditions at these buildings should have raised a big red flag long before there was a loss of life. In the Berkeley case the court was told that the property management company ignored a “red flag” when students who rented the apartment complained about mushrooms growing on the balcony. In Surfside, existing documentation shows that the building had suffered from major flooding and water intrusion into the garage for years. Water staining on the columns of the building was evident, along with some spalling of concrete and rusted, failing rebar, as well as peeling paint from the ceiling and walls of the garage. The obvious lack of building maintenance coupled with the apparent lack of concern associated with these water intrusion issues is very troubling.

In my experience as a construction manager and consultant for more than 38 years, I can tell you that water intrusion into the structure of a building is the single greatest cause of damage and failure to any structure. A building properly designed and constructed in accordance with building codes is required to keep water out of the structure and away from critical structural components. When there is a failure of the building envelope due to improper design, poor construction or just a lack of maintenance, the structure itself is put in jeopardy. If these conditions are left unabated long enough, not only is the structural integrity of the building at risk but so are the occupants, as was clearly demonstrated in these two tragic cases discussed above.

I have walked through the garages of hundreds of properties, and I am always amazed at how creative the maintenance people and/or

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their contractors have become at creating pans, trays, plastic sheeting, and piping to catch dripping water to keep it from damaging the paint on the cars below. I would suggest here and now that if your garage ceiling has these creative contraptions installed to catch “nuisance” water, you should demand that your HOA begin a real investigation into the source of the water intrusion and immediately set in place a plan to correct the issue.

A ‘Band-Aid’ fix to install sheet metal or a plastic pan to catch the water before it drips on the car below does nothing to prevent the ongoing damage from occurring to the structure itself.

The other issue that has come to light in the Surfside tragedy is that a prior board attempted to pass an assessment to fund the needed repairs to the building, but the membership voted it down and eventually the frustrated and exasperated board resigned. I can tell you from personal experience that it is a daunting task to assist a board of directors to pass a major special assessment. There is always opposition to such an assessment. In my experience it is not uncommon for the board and their experts to be heavily challenged. In some cases they may even be shouted down during town hall meetings and accused of impropriety. There is always someone who knows better than the board and their experts and has a brother-in-law that is a contractor who could make the repairs for less. Over the years we have seen it all. However, the associations we have worked with that have had the most success completing major reconstruction projects typically have several things in common. They generally have a cohesive, determined board of directors focused on seeing the project through to completion and they do not become intimidated or deterred from that goal when opposition arises.

It should also be noted that the Surfside HOA had funded reserves of 6.9 percent. This is extremely low and automatically forces a board into the unfavorable position of having to pass a special assessment to accomplish almost any needed repair project. Any reserve specialist will tell you that with low reserves a special assessment is inevitable. If boards and their associations would work to keep their reserve funds closer to 70 percent funded, most of the time the resources would be there to make the needed repairs and large special assessments would not be necessary or would be greatly diminished.

My takeaway from these two tragedies: ¢ Be proactive and inspect your buildings regularly for signs of water intrusion and distress. ¢ If something of concern is discovered, have an expert render a written opinion. ¢ If there is an issue that needs to be addressed, identify the source of the issue, and fix it correctly and promptly. ¢ Life is precious and tragedies such as these are avoidable if those responsible for the building structures pay close attention and insist on proper, timely maintenance.

Dennis Brooks is the Founder and Owner of Design Build Associates, a Construction Management and Consulting Firm with offices in Los Angeles and Orange Counties.

Dennis can be reached at DennisBrooks@dbuild.com.

CAI-Greater Los Angeles Chapter

Disaster Strikes Again!

DISASTER STRIKES AGAIN! THE DAMAGE SHOWN WITH SPALLING CONCRETE AND FAILING REBAR WAS EVIDENT THROUGHOUT THIS PROPERTY AND THEIR SOLUTION OF CHOICE FOR MANY YEARS WAS TO HANG SHEET METAL BELOW THE CEILING TO CATCH THE WATER TO KEEP IT FROM DRIPPING ON THE CARS BELOW. PRIOR TO OUR INVOLVEMENT THIS SAME ASSOCIATION FAILED TO PASS A MAJOR SPECIAL ASSESSMENT TO CORRECT THESE CONDITIONS, BECAUSE IT WAS TOO EXPENSIVE.

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September/October 2021 | www.cai-glac.org 13

Is That Covered?

The Most Common Question Posed to an HOA Insurance Professional ¡¡¡By Michael Berg, MBA, CIRMS®, CMCA®

The most common question asked of insurance professionals is also sometimes the most difficult to answer.

Putting aside the fear and anxiety that comes with simply saying “no” to our clients, the bottom line is that it is not up to us to determine coverage. So, what then is the question to ask? Well, let’s look at the purpose of insurance in a reverse engineering approach.

A

s the owner of something, that party has a responsibility for the care of that something. Assume it is a house, for example. The homeowner has a responsibility for the care and maintenance of that house. In that process, an exposure exists for monetary loss. It is a risk the homeowner is willing to take in ownership of the home.

Some of the exposure to monetary loss is in the cost of fixing the property after it is damaged. Transferring that risk to another party is called property insurance. Other exposure is to the cost of defense in the event of an allegation of negligence that leads to injury or harm to someone or something else. Transferring that risk is called liability insurance.

Property insurance is straightforward. It involves a finite number of events for which the insurance carrier has agreed to accept the risk of loss. In Southern California, these events (called perils in an insurance policy) are most commonly fire, water damage from a burst pipe, and wind. But liability insurance can be a bit trickier because the application of coverage is broad. That is, while there are certain allegations that will preclude coverage (such as knowingly doing something wrong), an insurance carrier will often provide a defense to its policy holder. In my experience, it is extremely rare for an insurance carrier to completely decline defense of any sort.

Let us use a common allegation as an example. Assume we are the Board of Directors for a condominium association. We have a responsibility to maintain the roofs. For years if not decades,

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our process has been to address roof leaks on a case-by-case basis. When one of our unit owners contacts us about a roof leak, we pay to fix the roof and any damage on the interior of a unit. We have successfully addressed our responsibility of roof maintenance, right?

Well, maybe. What if an owner one day discovers a leak that has been unknown for an extended period of time? It has finally been identified as the reason there is a musty smell in the unit, and why the wallpaper and wood floors are discoloring and warping.

The owner has been diagnosed with a health condition brought on by fungus, and they have sued the association for $3 million.

Got that money in the bank? Probably not, but we do have an insurance carrier to whom we have transferred the risk of an loss in an allegation of negligence.

I am going to generalize the discussion here but know that both general liability insurance and directors and officers liability insurance will be triggered in this defense. And, the statements below are made directly, for effect.

The board has not knowingly done anything knowingly wrong, but it can be argued that not enough was done: Rather than a spot-and-treat approach to roof leaks, should we have implemented a regular inspection of the roofs through a professional? YES. Should we have followed the professional’s advice on a maintenance schedule to address potential problems before they arise? YES. CAI-Greater Los Angeles Chapter

Because that proactive approach was not taken, is it likely we will be seen as negligent in the maintenance of the roof, and therefore liable for the damage caused from the perspective of the unit owner? YES. An acceptance of negligence leads to a carrier paying defense cost for its policy holder, prevailing party fees to the representative of the unit owner, and the cost to mitigate the damage caused by the roof leak. The HOA pays the cost of repair to the roof itself because the roof is HOA property. The HOA insurance carrier then reevaluates the risk it is accepting through insurance of this community. Premium is increased if the carrier is to remain on the risk. But, due to increasing cost of defense and nuclear verdicts, it is more likely in today’s market that the carrier will simply non-renew. This forces the HOA to place coverage in the surplus market, where premium is much higher than traditional cost. If the association was paying $50,000 annually for insurance, it is not out of the realm of possibility to see a $150,000 to $250,000 cost of insurance going forward, depending on the characteristics of the community.

The argument we often hear about proactive maintenance programs is that they cost money. Yes, they do. But if something like the example above occurs (and this is not an imagined scenario, this is real life), the “savings” on the proactive program is gobbled up in excess by the additional cost of insurance. Also, the additional cost of insurance is not only paid once; it is paid for three to five years, because that is how long it takes for most

preferred insurance carriers to become comfortable with a risk once it has entered the surplus market.

Now, take roof leak out of our example. Replace it with common area drainage, handrails on stairways, gaps in balcony railings, foundation-related, and structural issues, and Champlain Towers in Surfside, Florida. Property maintenance has, for many communities, been a reactive process. But dramatic events such as the Florida disaster are raising red flags on the need to address deferred maintenance. Loss control inspections and recommendations from insurance carriers are not things to be ignored or tabled. When one is delivered, it is not a suggestion to go out and find a cheaper insurance company that will not require the recommended property improvements. Failure to address these conditions can lead to costly, devastating, and life-altering disasters.

Insurance is a transfer of risk. When that risk cannot be transferred, it is accepted. To minimize the exposure to damage from risk that must be accepted, a property owner needs to proactively address exposure through maintenance programs.

This manages the risk and controls the exposure to loss. This process is the foundation of a risk management program which should be implemented and followed by every property owner.

Michael Berg, MBA, CIRMS®, CMCA®, is the owner of Berg Insurance Agency. He has served CAI in various capacities for more than 20 years, current serving on the national Business Partners Council. He can be reached via email at michael@berginsurance.com.

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September/October 2021 | www.cai-glac.org 15

Do You Know What Disclosures Are Required?

By Sascha Macias, CMCA®, AMS®, PCAM®

ANNUAL BUDGET REPORT Pro Forma Budget. This is a summary page of your budget. If this is not distributed 30-90 days before the end of the fiscal year, any budget changes cannot be enforced. This means, if you raise dues, but you did not notify the owners 30-60 days in advance, you cannot legally collect those dues. This is why deadlines are so important! Don’t forget to make sure your budget was approved in an open and properly noticed meeting!

Many of the disclosures that follow are simple to include: Reserve Summary. This is provided by your reserve analyst,

with your annual packet.

Reserve Funding Plan. This is provided by your reserve

analyst, with your annual packet.

ARFDS (assessment and reserve funding disclosure). This

is provided by your reserve analyst, with your annual packet after you confirm how much you will be funding.

Major Component Repairs. This is a statement if the board

will defer any major repairs, including a reason. This can be very simple; I generally include it on my cover letter.

Anticipated Special Assessments. If you know you may

have a special assessment, it is important to disclose the possibility here. If a special assessment is later imposed that could have been foreseen and was not noticed, this could be of concern.

Reserve Funding Mechanism. Generally, this is through

regular assessments. Sometimes, there is a special assessment or repayment plan to be noted.

Reserve Calculations. This formula can be found in

Section 5570 of the Civil Code. You will need your financials and your reserve study.

Loan Disclosure. Include this statement if there are any

DISCLOSURES! WHAT AN EXCITING TOPIC—ESPECIALLY WITH BUDGET SEASON UPON US! WELL, MAYBE NOT THE MOST EXCITING, BUT A VERY IMPORTANT ASPECT OF COMMUNITY ASSOCIATION MANAGEMENT AND COMPLIANCE—AND ONE THAT OFTEN CAUSES STRESS AND CONCERN FOR MANAGERS… OR CONFUSION FOR BOARD MEMBERS. HOW OFTEN DO WE HEAR FROM HOMEOWNERS OR BOARD MEMBERS THAT THEY RECEIVE THIS THICK PACKET OF INFORMATION THEY DON’T UNDERSTAND OR DON’T READ? IF YOU’RE LIKE ME, YOU HEAR IT ALL THE TIME! WHY ARE THERE SO MANY PAGES? WHY ARE THERE DIFFERENTSIZED FONTS? THE THOUGHT OF HOW TO ACCOMPLISH ALL THESE DISCLOSURES CAN BE A DAUNTING ONE, ALTHOUGH ACTUALLY REALLY SIMPLE! LET’S GO THROUGH WHAT WE ARE REQUIRED TO PROVIDE ANNUALLY AND A BRIEF DESCRIPTION OF WHY AND WHERE TO GET THE DOCUMENTS OR WHY THEY ARE IMPORTANT.

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outstanding loans.

Insurance Summary. This is a summary of all the coverages

the association holds; generally, your broker can prepare a one-page document for you.

VA/FHA certification if applicable (for condos only). This

is a simple document stating if the association is certified by these agencies—must be in 10 pt. font and on two pages (So specific, right?!)

Document Charge Disclosure. This outlines the costs

an owner may incur if they request documents. Many management companies have this disclosure standard.

If you do not disclose it annually, you may have issues enforcing it when the time comes to charge.

ANNUAL POLICY STATEMENT Designated Recipient. This is the name and address of

the person to receive official communications. This can be management, a board member, or a legal representative – if someone were to serve the Association, this is the appropriate CAI-Greater Los Angeles Chapter

address. If this address is not correct or disclosed, there may be a delay in service which could inhibit appropriate deadlines.

Right to Two Addresses. Essentially just letting the owners

know they can request up to two notices at two addresses.

General Notice Location. This is VERY important. This is

the legal location you will post meeting notices. Anything that falls under “general delivery” can be posted here. If you do not post at the location you disclose, this can have ramifications such as challenging or invalidating meetings or meeting decisions.

Right to individual Delivery.

Right to Receive Copies of Minutes.

Collection Policy. (note, if this is not disclosed, collection

actions can be invalidated)

Lien Policy. Same as above. If you do not disclose, it can

inhibit enforcement when the time comes.

Rule Enforcement Policy. This does NOT mean you have

to include your entire rule packet—simply the enforcement policy (often a letter, hearing, fine policy etc.). This is part of due process.

Dispute Resolution Procedures. Associations are

encouraged to have individualized dispute procedures when a conflict arises. Properly disclosing this sets a precedent for how owners can utilize this mechanism.

Architectural Procedures. Again, you do not have to

include the entire packet. You want to include the submittal and appeal process, namely.

Overnight Payment Address.

Many associations or managers choose to disclose the annual policy statement along with the annual budget report, both of which need to be distributed 30-90 days before the start of a new Fiscal Year. Since they align, I find it makes sense to send in one packet, so owners have one set of information for reference.

The above annual disclosures, generally done with your annual budget, are not all-encompassing. It is important to refer to your governing documents for any additional disclosures required, as well as other potential timelines and disclosures. Think—your annual financial statement (120 days after FYE), Secretary of State filings, meeting notices, mid-year increases, special assessments, litigation disclosures and more! Don’t forget to check in to all the educational resources available to you through CAI and other avenues to further your understanding of these disclosures!

Sascha Macias, CMCA®, AMS®, PCAM® has been a community manager for more than 15 years. She is a past president of this chapter and Co-chair of the Programs Committee. Sascha can be reached at (661) 510-7160.

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September/October 2021 | www.cai-glac.org 17

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September/October 2021 | www.cai-glac.org 19

Before Disaster Strikes

What Boards and Managers Should Know ¢¢¢ By Michael Sukey, AMS®, PCAM®

RECENT EVENTS OF TRAGEDY, LOSS OF LIFE, SEVERE PROPERTY DAMAGE AND FORECASTED POSSIBILITIES OF WORSENING NATURAL DISASTERS DUE TO CLIMATE CHANGE BRING DEEPER RESPONSIBILITIES ON CONDOMINIUM ASSOCIATION BOARD MEMBERS’ FIDUCIARY DUTY TO PROTECT THEIR COMMUNITIES. FEDERAL AND STATE AGENCIES, SUCH AS FEMA AND CAL-OES, ARE COMMISSIONED TO RESPOND TO SUCH EVENTS AND HAVE ESTABLISHED DISASTER RESPONSE PLANS AND PROGRAMS TO AID ASSOCIATIONS IN FORMING THEIR OWN SPECIFIC DISASTER PLANS. Take Initial Steps in Evaluation There are several initial steps board members or managers can take to evaluate whether the community is safe: ¢ Determine if an inspection(s) is needed: expert vendor or insurance risk. ¢ Determine if there are any signs of structural concerns that need to be addressed to determine whether the building is safe. ¢ Conduct or review the Reserve Study using best practices. ¢ Review the Reserve Funding Plan and fund accordingly. ¢ Provide transparent information to your community homeowners regarding the Reserve Study/Plan/Schedule and Funding. ¢ Take proactive action required in the Reserve Study. ¢ Maintain frequent communication with residents/ homeowners about these important issues. Be transparent with homeowners about how much repairs might cost and whether a special assessment may be necessary.

Plan for Potential Disasters CAI’s National Office encourages all associations to arm themselves with a range of resources to help residents prepare, survive, recover, and rebuild if a disaster occurs in their community. No matter what type of disaster, community leaders should be prepared to oversee and lead the recovery process.

Creating and maintaining a comprehensive up-to-date disaster plan is crucial for community resiliency and sustainability.

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CAI recommends these key components in every community’s natural disaster preparedness plan: ¢ Advanced Planning ¢ Planning Resources ¢ Adopt and Share the Plan: Practice drills ¢ Mitigation: Emergency management ¢ Recovery ¢ Claims Support ¢ Temporary Relocations ¢ Contractor Support: Restoration ¢ Getting Back to Normal: Financial Recovery ¢ Assessment Collections ¢ Reserve Funding Planning Every community association should have a comprehensive emergency plan that becomes a detailed guide for community leaders and residents to work together to prepare, respond, and recover from all types of disasters. A detailed plan should be formally adopted by the association board and incorporated as a community’s “Continuity of Operations Plan.”

The Planning stage starts by addressing the five W’s: ¢ WHAT disasters are likely to happen in your geographical location? ¢ WHO could be impacted by such emergencies? ¢ WHO will respond in and/or to our location? Have key response tasks been prioritized? ¢ WHEN should we notify residents and staff? Be informative and detailed. ¢ WHERE do we go during and after a disaster, if temporary relocation necessary?

Additional planning considerations are: ¢ How to educate and prepare the community to react. ¢ Review insurance coverages.

CAI-Greater Los Angeles Chapter

Planning Resources Reference these online resources for planning support: ¢ Debris Removal Guideline for Communities with Private Roads​ ¢ www.ready.gov/natural-disasters ¢ www.dhs.gov/topic/plan-and-prepare-disasters ¢ NCDP.columbia.edu ¢ Natural Disasters: How Community Associations Protect Themselves ¢ Risk Management: How Community Associations Protect Themselves Adopt and Share the Community Emergency Plan A community association’s emergency plan should be reviewed by experts (e.g., insurance agents, recovery contractors, local police or fire) and formally approved by the association’s board.

Upon approval, management should implement timelines and responsibility charts and provide residents with information about the plan so they can plan and act accordingly, if necessary.

Conducting practice drills with staff and community leaders is suggested on a periodic basis. The Plan should also be reviewed annually and appropriately updated where necessary. The Plan should be distributed to the community with annual disclosure information and be part of new owner escrow packages.

CAI-Greater Los Angeles Chapter

Mitigation It seems each year the number of natural disasters increases, yet it has been recorded that only half of impacted communities qualify for federal assistance. Mitigation activity can help communities reduce infrastructure damage and minimize recovery time after a disaster. Communities seeking to reduce disaster impact should follow these types of mitigation activity: ¢ Identify hazards and assess vulnerabilities to persons and property ¢ Take advance action to minimize damage to infrastructure ¢ Use and share Mitigation Best Practices: See FEMA resource below.

Learn about disaster mitigation resources, including your state or regional mitigation plan, at www.fema.gov/hazardmitigation-planning-contacts.

Disaster Preparedness and Recovery When certain natural disasters are imminent, it’s time to implement the community emergency plan and notify residents to get ready for impact. Managers can help community residents prepare for emergency situations by promoting awareness, personal planning, and training.

CONTINUED ON PAGE 22

September/October 2021 | www.cai-glac.org 21

Before Disaster Strikes CONTINUED FROM PAGE 21

A. Community and Individual Preparedness The community’s emergency plan and basic evacuation procedures should be widely known and communicated.

Residents should always have a personal emergency plan. Ask yourselves these questions when making the plan: 1. How will I stay informed?

2. What is MY evacuation plan?

3. What is MY shelter plan?

4. What is MY communication plan?

Disasters vary, and your community should plan for those most likely to happen in your region. The American Red Cross provides detailed resources on how you can prepare and recover from earthquakes, fires and floods. Visit this website to make a plan: www.ready.gov/plan or www.redcross.org.

B. Recovery Depending on the type and severity of the disaster, recovery is usually an incremental and extended process. Here are the initial response tasks: ¢ Account for whereabouts of all residents. ¢ Secure the entrance and key facilities/common areas. ¢ Notify residents about access to their residence. ¢ Inspect damaged areas and develop priority lists for repairs.

¢ Create site map showing damage with photo and send to your insurance agent. ¢ Contact FEMA/local government official to determine what you must do before removing debris from site. ¢ Advise residents when to expect restoration of utilities.

Financial Loss and Insurance Claims Support Follow these insurance claim tips: ¢ Compile property loss information promptly, including photographs. ¢ File a claim timely. ¢ Inform the Board of Adjuster assignment and contact information.

Temporary Relocations of Residents It may seem impossible to pay for a temporary relocation and the mortgage loan payment on a destroyed residence, but do not be too quick to give up on your home. Advise homeowners to contact their lender. They may be able to obtain relief—such as a temporary moratorium on payments. Find out what options are available.

Contractor Support 1 Depending on the type and severity of the disaster, a contractor may be needed immediately. After major disasters, contractors seem to be everywhere, soliciting repair contracts. However, advanced Response Agreements can be negotiated with primary

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CAI-Greater Los Angeles Chapter

contractors. It is suggested to contact those primary vendors before a disaster strikes.

If new contractors are needed to support recovery, the following best business practices are recommended: ¢ Confirm the contractor’s license with the appropriate state or local government agency. ¢ Confirm that the contractor holds current insurance for liability, completed works and worker compensation. ¢ Some contractors may try to win business by promising the amount of the insurance deductible will not have to pay them.

That suggestion would be considered insurance fraud and should be rejected. ¢ Will the new contractor agree in advance to accept what the insurer will pay for repairs, plus the deductible amount?

Rather than arguing with the insurer over the amount of the repair cost, it is best to focus on the extent of repairs and hire a good contractor who will work within the insurer’s cost guidelines. ¢ Seek bids from several contractors, preferably from those who have been in business for more than a few years. ¢ Get the entire contract in writing. Do not accept any unwritten guarantees or promises.

Getting Back to Normal Natural disasters impact homeowners in different ways.

Depending on the type and severity of the disaster, the impact could affect the association’s financial condition quickly. CAI suggests a review of current insurance coverage for Loss of Revenue coverage. Where that clause is absent, make inquiry with the insurance agent whether that clause could be added and for what amount of premium. ¢ Assessments may be severely impaired, and collections could be negotiated on a case-by-case basis with homeowners. ¢ Reserve Funding should continue on a regular basis in order for the association to be in the strongest financial condition as soon as possible.

While we never know when a disaster will strike, being prepared is a key component to making things less stressful in the event of a disaster. For more information visit www.fema.gov or www.caionline.org.

Michael Sukey, AMS®, PCAM®, has been a community manager for more than 15 years and an active member of this chapter. He is currently a management consultant in the real estate industry helping companies achieve high levels of service excellence, productivity and profitability.

You can reach him at wficonsulting@yahoo.com.

1

Note: This information was extracted from a document developed by CAI Member Kelly G. Richardson, Esq., CCAL, Richardson Ober DeNichilo, LLP, Pasadena, CA.

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 23

More than 40 CAI-GLAC members gathered for the first in-person Happy Hour of 2021 at Public School 310 in Culver City to enjoy each other’s company. Our thanks to the Membership Committee for organizing this event: Co-chairs Mimi Cortes (SAX Insurance Agency) and Tracy Robinson (Market Lofts HOA),

Coaching to Credentials

Manager Mentor Program Would you like to be able to talk to another manager about their educational path and experience—get their advice about next steps?

CAI-GLAC is proud to offer the Coaching to Credentials Manager Mentor Program as a resource to our community manager members.

Our goal is to encourage you 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.

A Mentor can: l Help to identify your specific goals. l Provide career guidance. l Provide vision and insight. l Offer support and advice about CAI courses. l Explain the value of credentials. l Motivate you to progress to the next level of professionalism.

For additional information about the CAI-GLAC Manager Mentor Program, please contact the Chapter Office at 818-500-8636.

24

www.cai-glac.org | September/October 2021

and members Miste Holloway (Encino Oaks HOA), Tiffany McCall (Metropolitan Property Services), Kim Province (Advanced Election Services), Erin Rose (Specialized Pipe Technologies), Eric Sasala (BluSky Restoration Contractors), and Emma Zaboth (Roseman & Associates APC).

HOA Premium Reserve Solution Put your funds to work with the leading community association bank: • Choose from the Premium Sweep Account, Premium CD, Premium Ladders CD and Premium Money Market • Enjoy the ease of dealing with one bank to serve all your HOA banking needs • Get a competitive rate of return to grow your reserve funds • Access your funds when needed with the flexibility of investment options With our HOA Premium Reserve Solution, you get the security of knowing your funds are protected by a surety bond.

Let’s get started. Visit cit.com/CABReserves Jolen Zeroski 213.604.1746 Jolen.Zeroski@cit.com

Brendan Concannon 619.261.6643 Brendan.Concannon@cit.com

Premium reserve products are for new money only (money not currently held by CIT Bank, N.A.) Funds in excess of FDIC insurance coverage limits are covered by a third-party issued surety bond. Such excess funds are not subject to FDIC deposit insurance. The surety bond providing excess coverage over FDIC insurance may be cancelled at any time upon 30 days’ written notice. Should a notice of cancellation be given, CIT will contact the client to discuss alternatives to provide for the continued safety of funds.

May not be available in every state. ©2020 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc. Deposit and loan products are offered through CIT Bank, N.A., the FDIC-insured national bank subsidiary of CIT Group Inc. MM#9174

CAI-Greater Los Angeles Chapter

W

e truly appreciate the companies listed below who sponsored the sumptuous snacks.

SPONSORS A.R.M. Construction Services Advanced Election Services ALLBRIGHT 1-800-PAINTING BluSky Restoration Contractors, LLC BrightView Landscape Services HOA Construction Consulting Naumann Law Firm, PC Roseman & Associates APC Vista Paint Corporation

Zoom to Room!

smacdonald@farmersagent.com www.farmersagent.com/smacdonald License #:0573169

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 25

Photo by James Walsh on Unsplash.com

Favorite Bistro Restaurant Welcomes CAI-GLAC During CAI National Conference in Las Vegas

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with the CAI-GLAC invites you to enjoy fine wines in a hilltop rustic setting overlooking the Saddlerock vineyards Annual Wine Tasting & Light Supper $95 per person

Casual attire/Comfortable shoes

Sat., October 23, 2021 1:30-5:30pm

SOUND OF MUSIC

Horizon Management Company AAMC DO RE MI

Segal Insurance Agency, Inc. MY FAVORITE THINGS (Souvenir Glasses)

Riley Pasek Canty, LLP

SO LONG FAREWELL (Souvenir Photos)

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Register at www.cai-glac.org

VON TRAPP SPECIAL GIFT

Silicon Beach Insurance

GETTING TO KNOW YOU (Wine)

Net proceeds to benefit the California Legislative Action Committee

Call our chapter office (818-500-8636) for special hotel rates

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SPONSORS

Abir Cohen Treyzon Salo, LLP ALLBRIGHT 1-800-PAINTING First Onsite Restoration Nu Air Services, Inc.

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Fenton Grant Mayfield Kaneda & Litt LLP

CAPTAIN’S NAPKINS

The Naumann Law Firm, PC BARONESS’S HAND TOWELS

BluSky Restoration Contractors LLC MARIA’S CENTERPIECES

Securitas Security Services USA, Inc.

CAI-Greater Los Angeles Chapter

September/October 2021 | www.cai-glac.org 27

CAI-GLAC FOURTH ANNUAL

LEADERSHIP EVENT EXLUSIVELY FOR MANAGEMENT COMPANY CEO s, EXECUTIVES and DIRECTORS

JULY 29 EVENING RECEPTION and JULY 30 EVENT A RECORD TURNOUT AT THIS YEAR’S EXECUTIVE RETREAT record fifty management company executives and business partner sponsors attended the Executive Retreat on July 29-30, 2021, at Calamigos Ranch in the Malibu mountains. The event began on July 29 with an evening “Meet the Speakers” networking reception at the Calamigos Beach Club. July 30 was a full day of activities—including a teambuilding scavenger hunt on Ranch property, followed by educational sessions and networking. Topics included inclusive leadership, a real estate industry economic forecast, an employment law update, how to employ interns and best-practice management tips.

A

Our sincere thanks to all those who supported this event and to the following committee members for their excellent organization and production: Chair Alexandria Pollock, CCAM-HR®, CMCA®, AMS®, PCAM® (BuildingLink.com LLC), Isaac Camacho (Accurate Termite & Pest Control), Linda Cardoza (Alliance Association Bank), Meigan Everett, PCAM® (SwedelsonGottlieb), Jerri Gaddis, CCAM®, CMCA®, AMS® (FirstService Residential, AAMC), Neda Nehouray, CMCA®, AMS®, PCAM® (HOA Organizers, Inc.), and Wendy Weber (Insurance Services of the West).

THANKS TO OUR SPONSORS Accurate Termite & Pest Control Alliance Association Bank Association Services Network Axela Technologies Beaumont Tashjian Berding|Weil BuildingLink.com, LLC CIT-Community Association Banking Division City National Bank Fenton Grant Mayfield Kaneda & Litt, LLP iMail Tracking, LLC Insurance Services of the West The Naumann Law Firm, PC Tinnelly Law Group Union Bank HOA Services Whitestone Industries

EVENING RECEPTION

28

www.cai-glac.org | September/October 2021

CAI-Greater Los Angeles Chapter

SC AV E N G E R H U N T

R E T R E AT E D U C AT I O N A L S E S S I O N S •

CAI-Greater Los Angeles Chapter

LUNCH •

NETWORKING

September/October 2021 | www.cai-glac.org 29

Avoiding Communication

Roadblocks with Managers

and Board Members

By Gary Choppé, CMCA®, AMS®, PCAM®

It really makes sense if you look at this from a perspective that we are leading the pack and the communication we take in daily needs to be assimilated, digested, and sent out to the necessary parties involved. This means deciding what information goes from our homeowners to our vendors, and from there, to our boards.

Achieving this starts with getting clear and precise information from calls that come in, such as that angry homeowner that wants us to stop the neighbor’s dog from peeing in front of their house.

In most cases, I feel that the board does not want to know about all the details of everyday HOA life; however, some are interested in knowing every detail of every minute spent managing the account. In fact, one board member wanted me to keep a log when I was on the property inclusive of bathroom breaks!

The best boards, as we all know, are the ones that look at the “global issues” and understand that their jobs are to take care of the direction of the community, such as projects, employees, or collections—not the more routine day-to-day activity.

How do we effectively reduce the noise and carry on as the captain of the ship? One approach is to consider providing a biweekly report. I think that these reports should be brief in nature

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ne aspect of my training as an Eagle Scout (when I used to wear those wonderful green shorts, knee length socks, and neckerchief) was that an integral part of leadership is communication. As community managers, this holds true for us as well; we need to consistently develop these skills so we can lead our boards of directors in the right direction.

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www.cai-glac.org | September/October 2021

3/10/20 4:07 PM

CAI-Greater Los Angeles Chapter

and organized by category. Sample categories would be Security, Landscape, Violations, Collections, etc. Discuss this plan with your boards to determine which areas interest them most.

THE CHALLENGING THING FOR SOME OF US IS TIME MANAGEMENT on a consistent basis, especially in the real world when you are being hit from all sides from the moment your day starts until well after the sun goes down and beyond.

But just like taking the time to exercise, if we block out time in our calendars each day, then when it matters most, we might eliminate the following scenario: It’s 7:55 a.m., just five minutes before my day starts, and my phone rings; it’s a call from a New Board Member Joe. “Gary, it’s Joe, it goes to voice mail, call me back? I need to talk to you right now, like immediately because it’s an EMERGENCY!” You know, everyone in HOA-LAND has an EMERGENCY and we as managers must make everything all right. We are masters of stopping leaks, finding those dogs that poop in the middle of the night, and dealing with that neighbor pounding on the wall next door!

Now, it’s 8:00 a.m. and Joe is “blowing up the phone,” so I take my first drink of many cups of coffee and return his call. “Good morning, Joe, how are you today?” I ask, always remembering that a major component of customer service is being nice to all. “Gary, when are you going to get that tree cut in front of my place? The landscapers know that it is blocking my view and I must see what all those homeowners are doing because I am on the board, and they are breaking our rules… I have a parking

violation on my car, doesn’t Security know that I am a Board Member? Why did I get a late charge—doesn’t your accountant know that I am on the Board? Yes, probably a run on sentence but that is what it sounded like!

In the end, part of the job of a good manager is to try to be ahead of the game and remove those “roadblocks” by creating a process to put into place that all board members know and understand relative to the flow of communication. It should be a part of your yearly Team Board Training Session, and I also suggest that you sit down with each board member and find out what they are really interested in and what motivates them to do the job… especially new board members like Joe. For your sanity, you need to remove as many obstacles as possible by giving them the tools for smoother sailing, because the board and manager should be like a marriage—a 50/50 relationship that needs lots of TLC and effective communication!

Gary Choppé, CMCA®, AMS®, PCAM® is Vice President of HOA Management of Santa Clarita AAMC, a full-service management company serving the Santa Clarita and San Fernando Valleys. Gary can be reached at garychoppe@aol.com.

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September/October 2021 | www.cai-glac.org 31

NEWS

FROM SACRAMENTO

However, debt collectors that apply for a license before January 1, 2022, will be allowed to operate pending the approval or denial of the application.

The DFPI will begin accepting applications starting September 1, 2021. Applications will be available at https:// nationwidelicensingsystem.org/.

Did You Know? ¢¢¢ By Jennifer Kennick

E

ffective January 1, 2022, SB 908, the Debt Collection Licensing Act, requires debt collectors to apply for a California Department of Financial Protection and Innovation (DFPI) license by December 31, 2021. All debt collectors and debt buyers operating in California are required to apply for a license.

SB 908 impacts those that manage HOAs involved in collecting delinquent assessments. The licensing requirement applies to natural persons, partnerships, corporations, limited liability companies, trusts, estates, cooperatives, Associations and their similar entities.

Debt collectors will be prohibited from operating in California until a license is issued. Should a debt collector continue operating without a license, the DFPI can take legal action.

HOAs should confirm that the company that handles their delinquent assessment collection is licensed by January 1, 2022.

The Department of Financial Protection and Innovation solicited comments on proposed licensing regulations governing who must be licensed and the licensing process. CLAC previously sent comments on the proposed regulations. The deadline to submit additional comments is October 1, 2021.

The draft regulations and the solicitations for comments can be found at: https://dfpi.ca.gov/regulations-rulemaking/laws-andregulations-debt-collection-licensing-act/.

Jennifer Kennick is Executive Vice President of S.B.S. Lien Services, a company headquartered in Westlake Village that provides foreclosure services in California, Arizona and Nevada. She can be reached at jkennick@sbstrustdeed.com.

OUR THANKS TO CAI-CLAC 2021 CONTRIBUTORS

January 1 – July 31 GOAL: $26,016

As of 07/31/21 $10,664

41% of goal

32

100 Marina Shores HOA 101 S. Manhattan Place HOA 11767 Sunset Boulevard Association 118 Wadsworth Ave. HOA 122 Guadalupe HOA 1242 Berkeley Street HOA 1827 Greenfield HOA 2050 Artesia HOA 2138 Stewart Street HOA 253370-72-1/2 Malibu Road HOA 446 San Vicente HOA 515 San Vicente HOA 656 West Knoll Condominium Association, Inc. 720 Shoreham Drive HOA 909 El Centro, Inc. ALI Condominiums HOA Aliso Village HOA Armour Lane Condominium Avis HOA Avocado Glen HOA Berkeley Townhouse HOA, Inc. Blossom Vanderbilt HOA Bodger Park Condominiums HOA Border and Lincoln Villas HOA Bougainvillea Townhomes California Ave HOA Casa de Suenos CA Casa Loma Association, Inc. Casita De La HOA Catalina Plaza HOA

www.cai-glac.org | September/October 2021

Centinela Townhomes HOA Channel View Terraces HOA Culver Centrale HOA Design Villas HOA El Segundo Peppertree HOA Erik M. Rivera Flower Street Lofts HOA Golden Palms HOA Gorham Park HOA Grand Lofts HOA Harbor Ridge HOA Hermosa Surf Condos, Inc. Hilllcrest Meadows HOA, Inc. Irena Vista OA John DeBord Kelton Arms COA Kester Villas HOA Lake at Walnut HOA La Palma Estates HOA Lawford HOA Longfellow Village OA Los Cerros HOA Monterey Island HOA Oakbridge HOA Oak Hill Condominium HOA Oak Street HOA Ocean West COA Pacific Bougainvillea, Inc. Pacific Colony HOA Pacific View Condominiums HOA

Park Crest HOA Polynesian OA Primera Terra HOA Seascape-Redondo HOA, Inc. Seasons West HOA Sequoia Village HOA Silver Spur Court HOA SiSi Villas HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Terra Bella HOA Textile Building OA The Granvillas HOA Inc. The Vista Pacifica HOA Toluca Hills Apartment Corporation Villa Capri Townhomes HOA Villa Del Sol Villas HOA Villa Redano HOA Villa Serena HOA Villagio at Brentwood HOA VIP Goshen HOA Virgil Courts HOA Vista Catalina HOA Vita Bella HOA Vogue Condominium Association, Inc. Westside Townhouses HOA Wilshire Regent HOA Wilshire Selby Towers East CA Yukon II Townhomes COA

CAI-Greater Los Angeles Chapter

PCAM PRIDE ®

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

MARCIA COPPOLA, CMCA®, AMS®, PCAM®

Marcia Coppola, who has been in the community association industry since 2006, is currently the General Manager at Westford Homeowners Association in Los Angeles. As part of the HOA Organizers, Inc. team, 8/13 5:04 PM Page 1 Marcia also works closely with all of the community managers within the organization by providing guidance, coaching, and contributing to the overall success of the company.

Prior to joining HOA Organizers, Marcia worked for several property management companies in both the Los Angeles and Orange County areas and has experience in community association management and apartment management. Marcia is a Certified Manager of Community Associations (CMCA®), holds an AMS® designation, and has recently obtained her PCAM®. During her downtime, Marcia enjoys spending time with her husband, family, friends, and dogs.

HOA Management of Santa Clarita Receives AAMC® Designation from CAI

C Experience professional delinquent assessment recovery.

888-845-8808 www.witkinandneal.com CAI-Greater Los Angeles Chapter

ongratulations to HOA Management of Santa Clarita! This full-service Santa Clarita Valley management company has been awarded the Accredited Association Management Company (AAMC®) designation from CAI. This is the only “Company” designation of distinction in our industry. They are the fifteenth company in the Greater Los Angeles area and one of only thirty companies in California to receive this national designation.

Co-owned by Robin and Gary Choppé, HOA Management of Santa Clarita has been an active CAI member since 2017.

Robin Choppé, CMCA®, AMS® has been working managing communities for more than twelve years. Gary Choppé, CMCA®, AMS®, PCAM® is the company’s “Community Liaison,” as well as the communities’ diplomat , vendor coordinator, webmaster and project manager.

To earn the accreditation, companies must meet financial management and reporting requirements for client associations’ bank accounts, reserve funds, budgets and expenditures, and must maintain fidelity, liability and workers compensation insurance. The company must have three years of experience managing client community associations, and at least seventyfive percent of the company’s qualifying managers must hold a PCAM®, AMS®, CMCA® or Certified Property Manager (CPM®) credential. AAMC-accredited companies must commit to continuing education for all management staff and adhere to CAI’s Professional Code of Ethics. Only 267 management companies in the United States have earned the highest level of professional recognition in the community association field.

September/October 2021 | www.cai-glac.org 33

WELCOME

NEW CAI-GLAC MEMBERS! AS OF AUGUST 15, 2021 Certified Public Accountant

BUSINESS PARTNERS HOA Repay Tortuga Construction Solutions

CAI National CAI National

COMMUNITY ASSOCIATIONS Clover Manor HOA Highlands Owners Association Idaho Square HOA Encino Towers HOA

Ivy Chang Victor Perez, CMCA®, AMS® Bonnie Lubow Cynthia Brown, CMCA®, AMS®

COMMUNITY MANAGERS Brenda Avila Jeremy Wilson, CMCA®, AMS®, PCAM®, LSM® Associa-PCM AAMC® Nicole Cardenas Brandon Grosh, AMS®, PCAM® The Galaxy HOA Mark Johnson Matt Davidson, CCAM-HR®, CMCA®, AMS® Action Property Management AAMC® Karen Morgan Victor Perez, CMCA®, AMS® The Highlands HOA Bryanna Ramirez Jeremy Wilson, CMCA®, AMS®, PCAM®, LSM® Associa-PCM AAMC® Maria Ramos Brandon Grosh, AMS®, PCAM® PMP Management AAMC® Paul Stimmler, CMCA®, AMS® Jeremy Wilson, CMCA®, AMS®, PCAM®, LSM® Associa-PCM Lisette Vieyra Jeremy Wilson, CMCA®, AMS®, PCAM®, LSM® Associa-PCM AAMC® Hae Yoon David Mayemura, CMCA® Partners Community Management, Inc. HOMEOWNER VOLUNTEER LEADERS Larry Jacobs CAI National CAI National Steven Wong

A Professional who understands Community Associations Member of CAI, American Institute of CPA's and California Society of CPA's Post Office Box 4488 Ventura, California 93007 Phone: 805 659-3600 Fax: 805 659-1136 Email: mark@poindexterandco.com Web: www.poindexterandco.com

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34

www.cai-glac.org | September/October 2021

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF JULY 31, 2021

BUSINESS PROFESSIONALS ADAMS|STIRLING PLC Alliance Environmental Group, LLC Bethco Builders CM Squared, Inc., Architectural Design & Project CondoCerts Data Systems Services Donley Construction Consultants Duramax Building Products First Onsite Restoration Gibbs Giden Locher Turner & Senet, LLP HOA Inspector of Elections HomeWiseDocs.com Kevin Davis Insurance Services KONE, Inc. Oakridge Landscape, Inc. Pacific Association Collections Pacific Premier Bank Pacific Western Bank Paramount Waterproofing and Restoration, Inc. Payne Pest Management Pilot Painting & Construction, Inc. Quality Street Service, Inc. R.W. Stein Painting, Inc. S.B.S. Lien Services Sandra Macdonald Insurance Sherwin-Williams Paint Company Silicon Beach Insurance Services SKY Painting, Inc. Stay Green Inc. Sun Country Playgrounds, Inc. TOPS Software, Inc. Unified Protective Services, Inc. Van Dijk & Associates, Inc. WelcomeLink Whitney|Petchul COMMUNITY ASSOCIATIONS Azzurra HOA Bedford Parc HOA Bel Air Crest Master Association Bordeaux Homeowners Association Century Woods Community Association, Inc. College Park Townhomes HOA Harbor Gate HOA Harbour Walk Terrace HOA New Horizon Condominium Association Park Ocean Condominium Association Pasadena Villa Marengo HOA Regatta Seaside HOA Sherwood Townhomes Association, Inc. Villa Vallarta HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Appleby Property Management, Inc. Bartlein & Company, Inc. Beven & Brock BRS Roofing, Inc. SF Valley Management, Inc. Metropolitan Property Services, LLC PMI Antelope Valley ProActive Professional Management AAMC® Scott Management Company Westcom Property Services, Inc.

Carrie Ann Rettberg Tammy Gamblin, CMCA®, AMS® Horizon Management Company AAMC® Ross Morgan & Company, Inc. AAMC® Kayla Reynolds, CMCA® Wendy Heffernan, CMCA® Belcaro Garden Society Valencia Management Group AAMC® Monica Heredia, CCAM® Ron Salgado TEN50 Los Feliz Towers HOA Elvin Hidalgo, CCAM®, CMCA®, AMS®, PCAM® Luc Sasseville, CCAM® Century Park Place HOA EVO HOA Randi Johnson Deborah Schneider, CMCA®, AMS® Management Professionals, Inc. AAMC® Bali Management Group, Inc. Arielle Jones, CCAM®, CMCA® Vickie Sellman, CMCA®, AMS® COMMUNITY MANAGERS Action Property Management AAMC®.

Doheny West Towers HOA Sean Abbott Erin Jones, CCAM® Derek Silva Village Green Owners Association Empire West HOA PMP Management AAMC® Jenifer Antonelli, CMCA® Josef Kanapi, CMCA®, AMS® Karlin Van Rossen, CMCA®, AMS® Cove Community Association Trilliant Property Management PMP Management AAMC® Jerson Barcelon, CCAM®, CMCA® Diane Kennedy, CMCA®, AMS® Ruby Vivas Regatta Seaside HOA Kennedy Real Estate Management HOA Organizers, Inc. Brian Barr, CMCA®, AMS® Jennifer Knauff-Sanchez, CCAM®, Mirela Volden The Californian on Wilshire HOA CMCA®, AMS® International Tower Owners Association Omar Bayter Campus View Condo HOA Alexandra Walmsley, CMCA® Village Northridge HOA Uther Lai, CMCA®, AMS® PMP Management AAMC® James Beard, CMCA®, AMS®, PCAM® ProService Management Cheryl Wolfe, CMCA® Valencia Management Group AAMC® Erica Llanos, CMCA® Icon Realty Services, Inc. Nancy Beltran Portuguese Bend Club HOA. Marnie Woodward, CMCA® Icon Realty Services, Inc. Arian Manalo Horizon Management Company AAMC® Shawn Bieber, CMCA® Karla Mariscal Ida Worth, CMCA®, AMS® The Broadway Hollywood Valencia Management Group AAMC® Ross Morgan & Company, Inc. AAMC® Christina Bielfelt Matt Meadors, CMCA®, AMS® Nathan Wright, CMCA® HOA Made Easy Management Company HOA Organizers, Inc. Horizon Management Company AAMC® Kimberly Bloomer, CMCA® Laurent Melin, CMCA® Lori Ziegler, PCAM® Beven & Brock Century Plaza Master Association Century Woods HOA Christine Borland, CMCA® Mariesa Montiel Latitude 33 COMMUNITY ASSOCIATION LEADERS SF Valley Management, Inc. Korwin Anderson Walter Branch, CMCA®, AMS® Scott Moore, CMCA®, AMS® Jeff Goodwin Torrance-Windemere HOA Valencia Management Group AAMC® Peter Goldberg Barbara Carter, CCAM-HR® Vicki Olson, CMCA®, AMS® Denise Kurtzer Sierra Towers HOA PMP Management AAMC® Albert Nichols Josef Kanapi, CMCA®, AMS® Brandon Patterson, CCAM-HR® Mark Rataj Trilliant Property Management Eastern Columbia HOA Mary Totten Maria DeLira, CMCA® Joanne Peña, CMCA®, AMS®, PCAM® Icon Realty Services, Inc. Horizon Management Company AAMC® Traci DeRago, CMCA®, AMS® Victor Perez, CMCA®, AMS® Management Professionals, Inc. AAMC® The Highlands HOA Xochtle Esquerdo Roberta Plach, CMCA®, AMS® Horizon Management Company AAMC® Valencia Management Group AAMC® Irina Filipyeva, CMCA® Mary Ann Plescia Icon Realty Services, Inc. Sea Colony III – Barnard Way HOA Shaun Fury Christina Ravelo Action Property Management AAMC® HarborPlace Tower HOA, Inc.

September/October 2021 | www.cai-glac.org 35

ADVERTISERS INDEX 15 Action Property Management 9 ALLBRIGHT 1-800-PAINTING 30 Animal & Insect Pest Management, Inc. 26 AQUAGUARD LLC 34 Association Reserves-CA/Los Angeles 7 Berding | Weil 24 CIT–Community Association Banking Division 36 Ferris Painting, Inc. 34 GNG Vinyl Fencing, Inc. 25 Macdonald Insurance Agency 23 Optimum Professional Property Management Inc., ACMF®, AAMC® 31 Pacific Utility Audit 22 Pacific Western Bank 34 Poindexter & Company 36 Popular Association Banking 17 R.W. Stein Painting, Inc. 31 Reserve Studies Inc. 21 Select Painting & Construction, Inc. 13 Segal Insurance Agency, Inc. 11 Shaw, Moses, Mendenhall & Associates Insurance Agency 33 Witkin & Neal, Inc. 5 Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP

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.

Talk to us about your community association needs. We can help.

Popular Association Banking exclusively serves the community association industry. We offer:1 • Financing for building repairs and capital improvements.

• Competitive fixed rates with terms up to 15 years.

Plus, your deposits are eligible for multi-million dollar FDIC insurance with ICS® and CDARS®.2 Contact our Southern California Relationship Manager today!

Larry Hooper, V.P. Office: 714.864.5171 Cell: 949.842.6161 Toll free: 800.233.7164 LHooper@popular.com

Lic. #872494 7228 Remmet Ave. Canoga Park CA 91303 www.FerrisPainting.com

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www.cai-glac.org | September/October 2021

www.popularassociationbanking.com

1. Subject to credit approval. 2. ICS® and CDARS® are registered service marks of IntraFi Network, LLC. Copyright © 2021 Popular Bank. Member FDIC.

CAI-Greater Los Angeles Chapter

CAI-GLAC PRESENTS

WA L K O N T H E

Side

IN DUS TRY E XC E LLE N C E AWA RDS G A L A

Treetop Terrace Los Angeles Zoo 5333 Zoo Drive • Los Angeles, CA 90027

Saturday, November 13, 2021 6:00 p.m.

7:00 p.m.

8:00 p.m.

9:30 p.m.

10:00 p.m.

Cocktail Hour Dinner & Awards Social & Dancing Raffle Conclusion

Tickets $150 pp • Table of 6 $900 • Formal Attire Requested Purchase tickets at www.cai-glac.org MAJOR SPONSORS CORPORATE (AWARDS)

Guard-Systems, Inc. CHAMPAGNE

CENTERPIECES

ALLBRIGHT 1-800-PAINTING

Nu Air Services, Inc.

PHOTO BOOTH

VALET/SHUTTLE

Accurate Termite & Pest Control Hi-Tech Painting & Decorating, Inc. Pacific Western Bank HAPPY HOUR BAR Ocean Breeze Cleaning

SWEET SHOPPE

SOUVENIR PHOTOS

Naumann Law Firm, PC Vista Paint Corporation

DJ/ENTERTAINMENT

Dunn-Edwards Paints Segal Insurance Agency, Inc.

CertaPro Painters of Pasadena PRECISION PAINTING Servpro of Burbank

HORS D’OEUVRES

DECOR

American Heritage Landscape EmpireWorks Reconstruction & Painting McKenzie Rhody, LLP Vista Paint Corporation

#caiglac

CAI-GLAC 1010 N. Central Ave., #316 Glendale, CA 91202

Change Service Requested

Have you just been elected to your board of directors or are contemplating running for a board seat? You can now access our Community Leadership Series online by subject.

Learn the basics that you need to govern your community association more effectively and efficiently — anywhere at your own pace and time.

From the time you register online, you will have two weeks to view the class.

If you are unable to finish it in one sitting, you can log back in anytime within the two-week period through your account in the Members Only area.

Classes are available to CAI-GLAC members and non-members. $25 for chapter members • $35 for non-members

Modules Online Fiduciary Duties and Responsibilities Steven A. Roseman, Esq., Roseman Law, APC Rules and Regulations: Adoption & Enforcement Kelly G. Richardson, Esq. CCAL, Richardson|Ober PC Reserve Studies Les Weinberg, RS, MBA, Reserve Studies Inc. Insurance Issues for Common Interest Developments Kimberly Lilley, CMCA®, CIRMS™ , Berg Insurance Agency

Learn more and register now at www.cai-glac.org.