Community Bulletin: Volume 1, Issue 4 July 2016

COMMUNITY BULLETIN

A Quarterly Dispatch by CAI Oregon

Volume 1, Issue 4 July 2016

The Budgeting Process •Tips for easing the stress

Deferred Maintenance Opportunities •Are you covering all your bases?

Your Friendly HOA Banker •HOA Banking 101

Plus: • CAI Oregon Event Calendar • Around Town • Association Spotlight • Legal Eagles

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American Benefits, Inc.

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Serving Oregon and Washington Condominium and Homeowners Association Insurance Specialist.

American Benefits, Inc. abipdx.com 4800 SW Griffith Dr., Suite 300, Portland, OR 97005 main: (503) 292-1580 • fax: (503) 467-4600

Contents EDITOR

Sara Eanni Marketing Committee Chair

TEAM Jed Spera, Layout & Design Tysen Bodewig Jacqueline Gores Laura Hall Cole Hamilton Matt Maher Laura McDermott Renee McFarland Nathanial Palone Sara Spera

ADVERTISE Interested in advertising in Community Bulletin? Contact communitybulletin@caioregon.org

WEBSITE www.caioregon.org This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all represented facts in articles. CAI Oregon nor CAI necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of CAI Oregon or Community Associations Institute. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services and the information contained within should not be constituted as a recommendation for any course of action regarding financial, legal, accounting or other professional services by CAI, the Oregon Chapter, or its authors or

President’s Message.......................................................................................4 CED Message.................................................................................................... 6 Event Calendar................................................................................................. 7 CAI News............................................................................................................ 9 Editor’s Message............................................................................................. 10 Educational Resources.................................................................................. 11 Around Town..................................................................................................... 12 Ask & Answer.................................................................................................... 14 Business Partner Spotlight........................................................................... 16 “Enclosure Renewals”.................................................................................... 18 “Friendly HOA Banker”................................................................................24 Legal Eagles......................................................................................................28 Once In A Blue Moon...................................................................................33 “The Budgeting Process”.............................................................................34 Service Directory..............................................................................................38 Ask a Busy Person..........................................................................................44 CAVL Spotlight.................................................................................................46 Association Spotlight.....................................................................................47

advertisers. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

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President’s Message A question was asked of me recently that I thought was interesting. “What makes a competent community manager?� As a former manager, and a current community member volunteer, I have asked myself the same question a few times, usually without having a clear answer. As I thought about it over the course of the next several days, I came to the same conclusion; competence is knowing that, despite how much you may think you know about this industry, you have to continue to learn more. Competence is about knowing that education is a life-long process.

However long you have been in this industry, whether you have been managing homeonwer associations for thirty years, or whether this is your first month on your association board of directors, there is always an opportunity to learn something new and to improve your knowledge.

We still have many education events to come this year, including our monthly luncheons and our homeowner roundtables. Keep learning and keep asking questions!

Jed Spera 2016 CAI Oregon Chapter Board President

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Board Committees Legislative Action Committee BOARD OF DIRECTORS

Denise Bower Deana Doney

Jed Spera | President

Karna Gustafson

Sara Eanni | President-Elect

David Schwindt

Angela Shinn | Vice-President Kathleen Profitt | Secretary Andrea Klopfenstein | Treasurer Briana Buck | CAVL Director

Cheryl Brendle Richard Thompson Richard Vial Scott Barrie - Lobbyist

Brad Finson | Manager Director

Central Oregon Regional Council

Jason Grosz | Business Partner Director

Stephen Herr | Council President

Connie Plowman | CAVL Director

Greg Coxey| Past President

Barb Casey | Past President

Terrie Harris | Treasurer Tami MacLeod | Secretary

Jed Spera Awards Committee jspera@chnw.org

Mark Seigal Membership Committee siegelm@peoplepc.com

Angie Bagby CA Day Committee angie@bagbylegal.com

Jed Spera Sponsorship Committee jspera@chnw.org

Kyle Grant Education Committee kyle.grant@vf-law.com

Barb Casey Personnel Committee barb@kennedyres.com

Barb Casey Events Committee barb@kennedyres.com

Sara Spera Welcome Committee saraespera@gmail.com

Sara Eanni Marketing Committee sara@abipdx.com

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Notes from the Oregon Chapter Executive Director Thanks for reading our 4th edition of The Community Bulletin! We are very excited to be offering this new resource for our members. You can access this issue and all previous issues online at www.caioregon.org. Also, if you would like to receive hard copies of our magazine, you can always contact me at the office or pick one up at our monthly luncheons every second Friday at the Multnomah Athletic Club.

In addition to having our magazine available, our website is full of resources. By clicking the member resources tab you can access our luncheon slides, articles

by CAI Oregon members, legal resources, helpful CAI National links and special links for managers and homeowners. You can also learn all you need to know about our Chapter. CAI Oregon’s Bylaws, Chapter policies, and Board meeting minutes are available on our website as well. You can also learn about all our fantastic committees and how you can volunteer on a committee that is perfect for you! Another perk of membership is your log in for the CAI National website.

This website is chalk full of resources for HOA Homeowners, Business Partners and Managers. There is even a very popular link for copyright free newsletter articles for HOA members to use in their respective newsletters.

If you ever have any questions about how to access any of these great resources, never hesitate to call or email me directly at the office. Thanks for reading!

contact us

Laura McDermott | Executive Director CAI-Oregon 503.635.0742 | contactus@caioregon.org For Inquiries/Comments/Feedback for this magazine, please contact the Community Bulletin staff at communitybulletin@caioregon.org

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Upcoming Events Visit www.caioregon.org for our event calendar, more information about our events, and to register.

JULY

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Networking River Cruise Join us for an afternoon of sun and friendly networking

AUGUST

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August PDX Luncheon Our topic for August will be Vendor Relationships.

AUGUST

Manager PMPD Class Be sure to visit caionline for information and registration for this Facilities Management Class

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SEPT

16

CORC Golf Tournament Head to Central Oregon for a great day of golf with our area membership.

JULY

20 AUGUST

19 SEPT

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SEPT

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Homeowner Roundtable Calling All Homeowners! This exclusive education event is for our homeowner volunteer leaders only. Industry experts and peers will answer your burning questions.

Portland Golf Tournament It’s always sunny at our golf tournament at Charbonneau Golf Club! Enjoy a day with friends, prizes and dinner after the nine hole tournament

September PDX Luncheon Spend lunch with us for a financial check-up! We’ll review best practices for financial management, budgets, audits, and reviews.

Homeowner Roundtable Another Homeowner-Only roundtable with industry experts.

You’ve got questions; we’ve got answers!

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New Faces at CAI Oregon

Please join us in welcoming our new members and thanking our renewing members for their continuing support.

Are you interested in becoming a member of CAI Oregon, or know of someone that should join? Go to www.caioregon.org/ join-cai for more information.

New Members

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Mr. Jerald Crane * Volunteer Leader

Mr. Stephen Frank * Volunteer Leader *University Park Condominiums

Mary Innocenti * Volunteer Leader

Ms. Barbara Blackstone * Volunteer Leader

Ms. Catherine Marlow * Volunteer Leader

Mr. Kenneth Kaufmann * Volunteer Leader

Mr. Matt Baron * Multi-Chapter Business Partners * Sperlonga Data & Analytics

Ms. Judith Ramaley * Volunteer Leader *Corbett Bancroft

Ashley Mooney * Manager Membership * Aperion Management Group

Ms. Nikki Affinito * National Corporate Membership *Union Bank HOA Services

Ms. Kaitlin Runge * Manager Membership * Aperion Management Group

Mr. Walter Berninger * Multi-Chapter Management *Kappes Miller Management

Mr. Wes Finchum * Manager Membership * Community Association Partners

Mr. Justin Dilley * Multi-Chapter Membershi*p for Business Partners *BuildingLink.com

Mr. Seth Schade, Jr. * Manager Membership * Community Management, Inc.

Ms. Christine W. White, RS * Multi-Chapter Business Partners *Reserve Study Group

Mr. Rick Zinda * Manager Membership * CommunityRight, LLC

Mr. Will Conroy * Multi-Chapter Membership for Business Partners *Wave G

Ms. Jennifer Evans * Manager Membership * Superior Community Management

Mr. James H. Main, PCAM * Manager Membership

Mr. Brian Hess * Manager Membership * The Management Trust – Northwest

Ms. Kerry Ann O’Halloran * Manager Membership

Mr. Rick Zinda * Management Company * CommunityRight, LLC

Mr. John Ballas * Manager Membership *Ballas & Partners Management, LLC

Mrs. Amanda Anderson, Esq. * Business Partners * Anderson Ballard, LLC

Mr. Bryce Butcher * Manager Membership *Bluestone & Hockley Real Estate Services

Renewing Members

Ms. Aprildawn Holden * Manager Membership *Community Management, Inc.

Ms. Susan Stevens * Manager Membership *Charbonneau Country Club Ms. Maria T Arbuckle, CMCA, AMS * Manager Membership *Maria T. Arbuckle, EA

Mr. Craig Brown * Volunteer Leader *Broken Top Community Association

Mr. James Hambrick, CMCA * Manager Membership *Multi-Services, Inc.

Mr. Mike Chrystal * Volunteer Leader *Broken Top Community Association

Mrs. Christine McGowan * Manager Membership *Salishan Leaseholders, Inc.

Mr. Terry Cochran * Volunteer Leader *Broken Top Community Association

Ms. Pamela Hill * Management Company *Bluestone & Hockley Real Estate Services

Mr. Peter Deuel * Volunteer Leader *Broken Top Community Association

Mr. Ed Hamilton * Management Company *Community Association Partners, LLC

Ms. Alexis Scharff * Volunteer Leader *Broken Top Community Association

Ms. Denise Bower * Management Company *Community Management, Inc.

Mr. Gary Slater * Volunteer Leader *Broken Top Community Association

Ms. Kaye Youngren * Management Company *Community Management, Inc.

Mr. Don Turnage * Volunteer Leader *Broken Top Community Association

Ms. Daphne Brix * Management Company *Crystal Lake Property Management

Mr. Mitchell Neriah * Volunteer Leader *McNary Highlands Condo Association

Ms. Terrie Harris * Management Company *HOA Management, Inc.

Mr. Kenneth Sutton * Volunteer Leader *McNary Highlands CondoAssociation

Mr. Gordon Harwell-Spaulding * Management Company *Jenna’s Place Condo

Ms. Allison Giffin * Volunteer Leader *Powder Village HOA

Mr. Phillip E. Joseph * Business Partners *Ball Janik, LLP

Mr. Dennis M Gray * Volunteer Leader *Powder Village HOA

Ms. Susan Glen * Business Partners *Dunn Carney Allen Higgins & Tongue LLP

CJ Fredricksen * Volunteer Leader *Promenade at Bethany Village

Mr. Dylan Aune * Business Partners *Great Northern Window and Door

Ms. Donna Fredricksen * Volunteer Leader *Promenade at Bethany Village

Mr. Eric Johansson * Business Partners *Landscape East & West, Inc.

Board Member * Volunteer Leader *Promenade at Bethany Village

Mr. J. David Bennett, Esq. * Business Partners *Landye Bennett Blumstein, LLP

Mr. Jerry G. Desler * Volunteer Leader *University Park Condominiums

Ms. Renee McFarland * Business Partners *Pacific Landscape Management

Ms. Mary Jo Durand * Volunteer Leader *University Park Condominiums

Mr. David T. Schwindt, RS * Business Partners *Schwindt & Co

CAI Oregon News Who said summer was for relaxing?...

We had a successful Community Association Day and Trade show on May 14th. If you weren’t able to be there this year, make sure you can join us in 2017! Also, your local Chapter was well represented at the National CAI Conference in Orlando, Florida this year and we received two awards for our marketing program and our sponsorship package and program.

Don’t miss our annual summer networking cruise on the Willamette Star on July 15th.

This is a great event to enjoy the Portland sights and meet CAI members. All CAI Oregon homeowner members attend for FREE! Our Chapter will be holding another homeowner roundtable on July 20th. This is a great opportunity to meet other Board members and ask HOA experts your burning questions. Please check the website for event details.

Keep your eyes open for our 2016/2017membership directory. You can access it online, pick up a hard copy at the office or snag one at our educational events. If you have any changes in your homeowner association or company representative, you can email National directly at addresschanges@caionline.org.

Vendors and Management Companies: Keep your eyes out for our Sponsorship packet to be distributed in September. We’ll be having a sponsorship kick-off this year with full breakfast, an informative presentation, and great discounts for you when you attend.

Be sure to start thinking about your CAI Sponsorship budget now!

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Editor’s Message Wow! 4 publications already!

It is quite a joy to continue to produce the magazine so that community members have another resource where they can leverage useful information and stories for their own association. The goal of Community Bulletin is to provide those answers and stories for communities around Oregon and SW Washington. We have had tremendous support from business partners, managers, and community volunteers of CAI-Oregon with sponsorships and content. The magazine also wouldn’t be successful without the efforts from managers and board members who also provide content and spread the word about the magazine.

As always we encourage the community, regardless of being a member of CAI-Oregon, to get involved. It doesn’t have to be a huge time commitment but even something as simple as writing an article or answering a question another association has. You never know who else is going through something similar that can gain from others past experiences.

We appreciate the support!

Sara Eanni | Community Bulletin Editor | sara@abipdx.com

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Educational Resources

CAI Oregon is dedicated to the education of homeowners and managers.

Below is a small sampling of educational resources available to members.

• CAI Online has introduced an online forum for members!

This is a great resource for members, offering the ability to ask questions about HOA governence to all of CAI National’s online membership. This is an incredibly valuable resource for members that have difficult questions, or would like to learn about the experiences of other members. Follow the link from the Resources page on CAI Oregon’s website at www.caioregon.org.

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• Get on the Road! Would you like to have our CAI Oregon Executive Director speak with your board about the benefits of being a CAI member and our education resources? We’re here to help! We also have homeonwer members that have been CAI members for years that can speak directly to your homeonwers about their experiences and the benefits of CAI membership.

Contact our Executive Director, Laura McDermott, at contactus@caioregon.org.

• Don’t miss out on our Homeowner Roundtables in July and September (see event calendar or our website at www.caioregon.org). These events are exclusively for volunteer homeowners, and an opportunity to meet and share experiences with your peers.

New for 2016!

All CAI Oregon Member Community Association Volunteer Leaders attend our Portland Luncheons, Board Development Classes, and Roundtable Events for FREE!! But you MUST be a MEMBER to take advantage of this exciting opportunity. Visit www.caioregon.org for more information!

Do you have an educational resource that you’d like to share? Let us know by e-mailing us at communitybulletin@caioregon.org.

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Around Town 2016 Community Association Day & Trade Show

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Executive Director Laura McDermott welcomes attendees to the event.

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The trade show hall was busy all day long!

Jed & Sara Spera took some time out to pose for the camera while at the information booth.

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Cherly Brendle of CMI, and Vern Newcomb of ABI are just about to begin their insurance presentation.

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A packed main event room listens to the midday remarks and prize give-a-ways.

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Kathleen Smith of RDH, Jeanne Crouch of Charter Construction, and Brad Finson of CMI present.

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Around (Another) Town

CAI Oregon is represented at the 2016 CAI National Conference in Orlando May 1-3, 2016

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2 5 The entrance to the exihibit hall at the 2016 CAI National Conference at the Rosen Shingle Hotel in Orlando, Florida.

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Sara Eanni and Jed Spera prep for their presentation entitled, “The Data Doesn’t Lie: Using Metrics to Govern Successful Communities” 2

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Thank you Florida Chapter for the hospitality!

Sara Eannit, Laura McDermott, and Jim Main accept the CAI Oregon Chapter Awards for the 2015 Sponsorship Package and the 2016 Marketing Plan.

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Laura McDermott, Sara Eanni, and Jed Spera take a breather from the exibit hall at the conference.

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Q: A:

What are the consequences of a rejected annual condo budget?

It reflects to the owners that the Board is not actively performing its fiduciary responsibilities by maintaining the Association’s budget. The Association would have to use retained earnings or tap into their reserves, which is a violation of Oregon Revised Statutes, to make up for the deficit caused by the loss of income. Future budgets could prospectively result in a significantly steeper increase in owners assessments to recapture funds lost to unbudgeted expenses.

The unfortunate reality is that costs are going up everywhere.

With the new increases in minimum wage, contracts with Landscapers, elevators, pool maintenance, etc have all spiked.

To top that off, the cost for utilities have also increased at a significant rate. By rejecting, or not approving, a budget to reflect said increases, boards are setting themselves up for failure, while opening themselves up to potential liability by knowing this information and not acting accordingly.

Cole Hamilton, Community Association Partners

Do you have a burning question you would like Community Bulletin to answer?

Send us your most difficult HOA related questions and the Community Bulletin staff will find a local expert to answer.

Industry Experts.

Peers.

Great Education for Homeowners.

Homeowner Rountable July 20, 2016 www.caioregon.org for more information

2016 River Cruise & Networking

Fun. Join us on the Willamette Star for an afternoon of networking as we sail down the Willamette River. Chat with Business Partners, Managers and Community Volunteers while enjoying great food, great drinks, and great weather!

July 15, 2016 2:30pm-5:00pm

Opportunities in Deferred Maintenance with Enclosure Renewals David C. Young, P.E., RDH Building Sciences

C

ommunities with aging buildings are increasingly faced with deferred maintenance projects relating to outdated components and failed systems. The enclosure is one of the most common deferred maintenance components of the building, due to exposure, aging, and the high cost of repairs. These renewal projects can be daunting and typically begin with recommendations from a condition assessment. However, HOAs often move too quickly from the condition assessment, through construction documentation development and into construction, often missing the greatest opportunities to evaluate alternatives that can provide large downstream cost benefits. Evaluating these opportunities is the purpose of the early design phase of a project.

Design Phase

Large construction projects can be daunting; its important to make sure you’re considering all aspects of the project before you start to write checks

Building enclosure condition assessments may include general repair recommendations that require further refining before a repair or renewal scope is documented for construction. During the design phase the owners are provided with information allowing them to confirm that their expectations of the project are aligned with the designer’s intent. It is imperative that the specifics of the renewals program (scope of work, extent, details, and refined project cost estimates) are synchronized prior to moving into costing analysis and construction document development. Together with the owners, a qualified design professional considers alternate ways of addressing existing problems. The owners need to be fully involved in this key step considering the benefits, risks, and costs of various approaches and phasing alternatives.

Additionally, an enclosure rehabilitation project provides a unique opportunity to consider updates and enhancements to the performance and appearance of the building, which may otherwise not be practically implemented from a cost-benefit perspective. In the case of older buildings, a building enclosure upgrade can have a positive impact on property values. Energy retrofits are often times not feasible as stand-alone projects since return on investment usually doesn’t pencil out financially.

When combined with a larger project, however, the incremental costs of such upgrades can often be easily recovered in short order.

There are several design opportunities a community may consider when approaching an enclosure renewal. These are not limited to: • Implementing Code changes • Improving energy performance

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• Improving aesthetics

Code Changes In general, new and replacement materials need to meet the provisions of the current Codes. Some consultants and HOAs approach deferred maintenance or renewal projects in a manner that will avoid triggering requirements to meet current Code provisions.

A qualified design professional will be able to help the HOA navigate the various Code provisions that can be both challenging to meet and confusing to understand.

The design professional should also meet with the local Code official early on to determine if there will be any other upgrade requirements the jurisdiction may impose.

These could be items such as more bicycle racks, or landscaping enhancements. As such, reviewing current Code requirements is an important first step in the design process.

“Some consultants and HOAs approach deferred maintenance or renewal projects in a manner that will avoid triggering requirements to meet current Code provisions.” upgrading the water-resistive barrier (WRB) behind the cladding from building paper to an improved WRB that can also function as an air barrier. Designing a WRB to function as and air barrier results in a more airtight assembly that can result in: • Fewer drafts (occupant comfort and energy performance) • Better acoustics (occupant comfort) • Higher durability (Life cycle cost savings) These enhancements still need to be carefully evaluated by a qualified professional to avoid unintended consequences.

Fig 1

An increasingly common Code upgrade may be to include a drainage plane behind new cladding (rainscreen). While an original cladding assembly may not have incorporated a drainage plane behind the cladding, upgrading the assembly to incorporate a rainscreen will add significant durability to the new wall assembly at a marginal increase in cost.

Energy Improvements Embarking on an enclosure energy retrofit as a standalone project usually cannot be justified by the energy savings payback period alone. However, if aging components require replacement, small enhancements in new components and how they are installed can have significant benefits both in energy savings and occupant comfort. One such example is

Fig 2

Window replacements are low-hanging fruit when it comes to energy improvements. Old single pane aluminum windows can be cold, drafty and often allow significant noise into the units. Design options for new windows include double or triple pane glazing, vinyl, fiberglass or aluminum frames in many different colors, energy performances, and different coatings on glass surfaces that reduce the solar heat gain. Different inner and outer pane glass thicknesses in an insulating glass unit (IGU) will also improve the acoustic performance of

the options and make informed decisions about how they want the final project to look. Figures 2, 3 and 4 illustrate the transition from original façade to presentation board with options to the final project.

See Figure 2 - Before/Figure 3 Presentation Board/Figure 4 After photos of completed project

Fig 3

the window. This may be critical in elevations fronting a highway, railroad tracks or an airport. Figure 1 illustrates the improved thermal properties between a double pane aluminum window and a triple pane fiberglass window.

Figure 1 – Comparison of double-glazed aluminum frame and triple glazed fiberglass frame.

Fig 5

Old rotten wood-framed balcony guard walls often require significant work in deferred maintenance projects. Replacing guard walls to match the existing condition can be expensive, particularly when there is damage to the underlying wood sheathing and framing. Wood guards generally consist of a woodframed wall assembly sheathed with OSB or plywood with a WRB and cladding on both sides of the wall Fig 4

Aesthetics Code changes, air barriers, and energy upgrades are great from a performance and occupant comfort perspective, but homeowners can’t see these changes.

One of the greatest opportunities derived from the need to perform enclosure renewals is the ability to improve aesthetics and subsequently overall value in a community. This is the time when the homeowners can provide the greatest input to the design process in defining overall project objectives. The HOA can work with the design professional to flesh out the current problems and arrive at creative solutions to solve those problems. Options are considered and narrowed down with the HOA to arrive at a final set of project requirements. At that point, it is critical for the HOA to get buy-in from the community before moving forward with the overall plan and construction documentation.

The design professional can prepare various options in the form of presentation boards, computer renderings, or other visual aids, allowing the HOA to visualize

Fig 6

and a wood or metal cap (coping) on top. Significant improvements in aesthetics can be achieved, often at an overall cost savings, by removing the original guard walls and installing new guard rails with infills of pickets, glass or wood. The opportunities for design changes are extensive. Figures 5, 6 and 7 illustrate the before, presentation board and after conditions of a balcony renewal project.

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Figure 5 - Before/ Figure 6 - presentation board/ Figure 7 - After photos of completed balconies Conclusion In a recent project, using these and other design optimization strategies during the design phase, our team was able to achieve a 19% annual energy savings with about a 6 year payback period on the enhancements over a baseline enclosure rehabilitation.

of the project. Working with a qualified design professional, who understands and engages in the design process, will help the HOA sift through the myriad of Code requirements, material and product choices, and potential performance enhancements to hone in on an overall system that optimizes the performance and aesthetics of the enclosure. Efficiently planning to integrate energy savings options in the design phase will minimize the impact on overall construction costs and result in long-term energy savings, value, and occupant comfort.

David C. Young, P.E., Building Science Specialist, Principal RDH Building Science Inc., Portland, OR David Young has focused his 25-year career on building enclosure consulting, from the east to west coasts with the past decade in Portland, Oregon. His experience ranges from single-family homes to large high-rise commercial, institutional, and multifamily residential buildings in new construction as well as building enclosure rehabilitation, repair, maintenance and forensic investigation.

Fig 7

As older communities increasingly face the daunting task of enclosure renewals due to deferred maintenance it is crucial to not skip the design phase

David holds a bachelor’s degree in Civil Engineering from Carleton University in Ottawa, Canada, and is a licensed professional engineer.

He is a principal of RDH Building Science Inc. and past Chair of the Portland Building Enclosure Council and is currently on the CAI Education Committee.

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For over 20 years, we’ve streamlined the assessment collections process for community associations with specialized tools and services powered by Union Bank product solutions and our proprietary Smartstreet® technology. We offer a customized HOA lockbox with same-day processing to accelerate payment collection, reduce mail-in times for checks, and provide homeowners with convenient online payment options.

Whatever your needs, Union Bank provides solutions that make it easier to control your daily financial operations. Contact us today at 866-210-2333 to learn more.

HOAbankservices.com

©2016 MUFG Union Bank, N.A. All rights reserved. Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A. Smartstreet is a registered mark of MUFG Union Bank, N.A.

SAVE THE DATE! Friday October 7, 2016 8:00am - 9:30am

2017

Building Relationships.

Sponsorship Catalog

Business Partners & Management Companies Join us for our annual sponsorship sign-up event this year and take advantage of a one-time only opportunity to receive a discount on your sponsorship purchases. We’ve beefed up our sponsorships this year with extra advantages; not to mention a free breakfast will be provided for the event.

Stayed tuned for more information as well as copies of the sponsorship catalog available mid-September.

RESPONSIVE FOCUSED PROVEN

Attorneys • www.barkermartin.com

Making Your HOA Banker Your Friend

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Judy Nordstrom

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eople are very protective of their homes. They are also very protective of their money. HOA banking has the challenge and distinction of dealing with both! HOAs present many challenges–often daily–for property management companies and homeowner association boards. Banking is an important component of HOA management and operations. Choosing the right financial partner will go a long way towards minimizing fiscal difficulties and make the task of HOA management easier.

This article explains the various functions the bank will provide to management companies and associations as well as offer some helpful insights and tips. This is not meant to be all-inclusive or to take the place of professional advice. Instead, this article is deemed “level 101” and designed to get you thinking. What other questions do you have? Make notes as you read through – think through what more you need to know. At the end of the article, you’ll be ready to ask some key questions and move forward.

Understanding the needs of your HOA management company and finding a financial partner that fits those needs is critical.

While there are numerous considerations for each management company and association, there are only three main categories of financial offerings to HOAs: • Deposit Solutions - HOA operating, reserve, and special assessment accounts • Cash Management - CD’s, Money Market account, CDARS, ICS, ACH • Loans - construction line of credit and term loans When considering a banking partner, technology is key. Quality banking software will have robust security features and fully integrate with accounting programs. Integration is critical to maximize efficiency in the accounting process and provide the greatest impact to the user. Labor will be significantly reduced for tasks such as processing Lockbox, pulling bank statements and payment images, and performing transfers.

Other benefits include greater accuracy, transparency, and a reduced risk of fraud.

copy reporting and may take up to two weeks to receive notification. Dedicated customer service representative (other than your account executive).

• Specialized technology solutions.

• Online assessment payments (e-check, debit card, and credit card).

• Automatic home owner assessment reporting.

CD’s, loans and Money Market accounts are all represented in basis points. A basis point is 0.001 of one percent. For a thorough explanation of what a basis point represents, please see this tutorial by visiting the following link: http://www.investopedia.com/terms/b/basispoint.asp?layout=infini&v=5A&orig=1&adtest=5A. Many banks are glad to offer a demonstration of their services. Prior to the demo, the banker will have a consultation to analyze the client needs. The demo will show a custom solution with processes and features the client may expect and projected costs.

Acting in a fiduciary capacity it is essential to understand the rights of the HOA and what the association can and cannot do. The HOA Declarations will delineate the legal financial rights of the association; providing such details as: the association have the right to borrow, special assessments, required FDIC insured funding, and how payments are allocated for loan or special assessment repayment.

The Federal Deposit Insurance Corporation (FDIC) provides coverage for loss of funds on deposit up to $250,000 per tax ID numbers. Operating, Reserve and Special Assessment Accounts, CDs and Money Market accounts in aggregate

Banking services that are common and should be taken into consideration include: • Lockbox is a dedicated processing system that accepts, processes and posts checks and coupons from homeowners. Automated Clearing House (ACH) is an electronic platform for managing on-line payments.

• In-house check scanners help reduce the time and risk of going to a physical location to make a deposit.

• 24-Hour online access for board members permits viewing of account balances on a read-only basis.

• Auto reconciliation integrates the bank’s software with the management company’s accounting software and using matching rules automatically reconciles the account entries. This allows for easier and more efficient accounting service.

• Timely notification of returned items (insufficient funds) is a designated system some banks offer that have daily online reporting of NSF checks. Other banks offer hard

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may not exceed this limit. To remain protected, then either CDARS and or ICS services should be utilized. CDARS and ICS offers a mechanism to protect funds that exceed FDIC limits by placing them with membership banks which provide security by extending coverage.

All Homeowners Associations (HOA), Condominium Owners Associations (COA), Residential Owners Associations (ROA) have non-profit status. Even though they are different entities and those differences matter, for the purposes of discussion, HOA, ROA, and COA will all be considered the same and referred to as HOAs in this article.

Deposit Solutions

HOA accounts have specific needs. They are non-profits, governed by the HOA Declarations and state regulations and or statutes.

OPERATING ACCOUNT is used for daily business, they accept payments from homeowners and expense payments are deducted from.

Payment options for accepting Assessments include: debit card, credit card, ACH (Automated Clearing House), and e-check.

Auto Reconciliation automatically matches the bank transaction to the Operating account and marks the item as matched. All reconciled balances are real-time and assist in identifying irregularities in account transactions. Auto reconciliation increases efficiency and also reduces exposure to fraud because of the availability of daily and weekly account reconciliation.

Lockbox is a very helpful service to have. Utilizing Lockbox for daily deposits eliminates the chance for human error. A daily report will be e-mailed even if no transaction occurs.

The Lockbox report may be downloaded and or printed.

Fees may vary for usage.

Sweep accounts protect funds on deposit that exceed FDIC limits per institution. These Insured Cash Sweep accounts are especially useful when monthly assessments exceed the limit of $250,000. They are able to “Sweep� both ways (move funds in or out of the account depending on the needs). Designated sweep accounts are typically not interest bearing.

RESERVE ACCOUNT is typically held as a money market account. The reserve account serves as a place to keep funds allocated for projects. Projects that have been identified are noted in a reserve study. Other funds are held as a contingency plan for deferred maintenance or events not yet identified.

Signature cards are used for Board Members verification and authorization related to reserve accounts. It allows for Board Members to communicate with the bank and view

the operating and reserve account on a read-only basis.

Banks keep these cards on file.

To avoid problems with new Board Members having banking access, update HOA signature cards after every annual/election HOA meeting.

SPECIAL ASSESSMENT ACCOUNT is an effective way to track specific funds for a project. This allows for concise and efficient auditing of an HOA financials.

Cash Management

Automated Clearing House (ACH) is the process of moving money electronically. Money is moved directly from one account to another for the purposes of either direct deposit or direct payment. These activities are referred to as Electronic Funds Transfer (ETF) debit and credit transactions. They may be one-time (such as a payment to vendor/trade) or they may be a scheduled event (such as an automatic monthly assessment from a home owner).

CDs are an asset offering a specified fixed rate and duration. Theses instruments offer a higher rate of return to a checking or reserve account. Once a CD is created, no more deposits may be made to that CD. CDs offer the highest rate of return because they provide a predicable income stream from those assets to the bank.

CDs offer a higher rate of return than money market because they are restricted by date for liquidation without incurring a cost penalty. This provides the bank with a predictable income stream.

An effective strategy for providing accessibility to liquidity with CDs is laddering. This is done by staggering of maturities so funds may be more readily available throughout the year if needed without incurring an early withdrawal penalty.

Money Market accounts offer more flexibility because up to 6 withdrawals per month by the depositor are allowed.

Money Market accounts also have the feature of the ability

to make deposits at will.

Certificate of Deposit Account Registry Service (CDARS) offers a mechanism to protect funds that exceed FDIC limits by placing them with membership banks.

CDARS has a master enrollment form that allows for ease of access without engaging in cumbersome paperwork each time you wish to remit new funds.

CDARS has set dates to open a CD and to liquidate without penalty.

CDARS has the convenience of not having to directly engage many financial institutions for additional FDIC coverage.

If you change banks you have to restart CDARS. Insured Cash Sweep (ICS) may be utilized as a swap account or Money Market account.

Loans

Loans are often a necessity for communities. There are several reasons a community needs them including to preserve the quality of life in the community at the standard which residents expect.

• Construction deficit litigation • Capital improvements- new construction of amenities such as club house, pool, and play area • Maintenance- deferred maintenance and /or common area repairs • Acquisition of common areas When searching for a loan, there are many factors to take into consideration. What are the lenders guidelines and parameters related to the type of loan being requested? Details such as minimum loan amount, the ratio of number of units to loan amount, and the type of loan- Construction Line of Credit (LOC) or Term loan.

Construction LOC are utilized for drawing funds down as needed during construction phase. Only interest is paid, no principle, on the funds drawn. The funds are typically on a fixed interest rate. Once construction has concluded the loan converts to a rate and term loan. Payments then commence making principal & interest payments typically 30 days after locking loan.

timely manner will greatly aid in getting through the process as quickly and painlessly as possible.

Some salient facts about HOA loans are that they are commercial loans which are non-recourse. The loans have a lien position on HOA payments to satisfy the underlying debt but doesn’t use any individual property as collateral. This means no individual(s) is directly responsible for satisfying the commitment. In real people terms this means that homeowner’s properties are never at risk in the event of default. The bank gets its money solely from the homeowner assessments.

There is never a restriction on resale or refinance of a homeowner’s property due to a HOA loan.

Closing

Taking on a project the size and scope of changing banks is time consuming and can feel daunting. If there isn’t an immediate need, then timing should be a consideration for planning to embark on this effort. Because of annual HOA board meetings and year-end financial reports, March through October is an ideal window to put on your calendar to dig into this undertaking.

Time spent analyzing the financial needs of the home owner association and management company will pay off in the long run. Choosing the right banking partner can result in time savings and reduced costs. If chosen poorly, the relationship can lead to frustrations and cost escalations. Many banks will offer a demo and are very helpful in educating the client. The service the banks provide should be utilized. The information they provide is invaluable for making informed decisions. The goal is to forge a lasting banking relationship and give managers more time to focus on managing the community.

Ms. Nordstrom is VP for the NW Region of Alliance Association Bank, a division of Western Alliance Bank. Member FDIC. Prior to joining AAB, her 20 years tenure included managing associations, master planned communities and in residential construction. As an association financial partner, Judy’s experience assists HOAs make prudent decisions regarding their financial operations and futures.

Here are a few helpful considerations and tips to get your loan process off on the right foot: • Are there costs associated with the loan application process such as commitment fee or legal and documentation fee. Is there a pre-payment penalty of loan is paid off prior to maturity?

• What is the community delinquency percentage? Most lenders require 10% or less of total number of units to be in arrears.

• Owner occupied units 60% minimum and Investor owned 40% maximum.

The small details are important when applying for a loan.

Providing your lender with complete information and in a

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O

L E

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agles

ur panel of legal experts is here to take on your most difficult (and ambiguous) legal questions...

One of our unit owners wants to see our condominium bank records. Do we Q:have to let them see the records?

AB:

Yes, bank records are considered association records that owners are entitled to review.

ORS 100.480 sets out the requirements for maintaining association records and states that the association “shall keep financial records sufficient for proper accounting purposes”. In other words, if it is a record that you provide your accountant or bookkeeper for use in preparing your financials, then it is an association record. All association records must be reasonably available for examination and copying by an owner as long as the owner’s request is made in good faith and for a proper purpose. Only certain types of records can be withheld such as contracts currently under negotiation, attorney-client privileged communication, documents considered in executive session, and files of individual owners. There is no legal reason to withhold bank records from review by an owner. However before you make the records available for review, you can and should redact any information that would allow someone to access the association’s funds. You should also redact any information on the bank records that constitutes confidential member information (such as members’ bank accounts associated with deposits).

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KG:

The Condo Act technically only requires associations to disclose an annual financial statement, which consists of a balance sheet and income and expense statement. These documents generally should be enough information to allow owners to understand the association’s financial position. However, bank records are also association records and should be available to owners for examination, provided they request an examination in good faith and for a proper purpose. Since bank statements contain potentially sensitive information like account or routing numbers, bank statements should be redacted before allowing owners to inspect them. The Board should consider adopting a Records Resolution to establish guidelines on how owners make requests to examine records and when personnel fees may be assessed to owners who request examination.

Our Panelists (AG) Angie Bagby | Bagby Law Firm | Portland, OR: Angie is the founding attorney at Bagby Law Firm LLC. Angie has been practicing law for over fifteen years with an emphasis on construction defect litigation and community association law. Prior to forming the Bagby Law Firm, Angie was a partner at Barker Martin, PS. (KG) Kyle Grant | Vial Fotheringham | Lake Oswego, OR: Kyle, a native of Portland, Oregon, has been practicing law with Vial Fotheringham since 2011, providing general counsel to condominiums and homeowners associations. He recently was elected to the Board of his own homeowners association at Edgewater on the Tualatin where he currently serves as president. He also serves on the Education Committee for CAIOregon.

(DW) Dan Webert | Barker Martin | Portland, OR : In addition to his litigation focus, Dan serves as general counsel for community associations, often for former litigation clients who have come to rely on his advice. As general counsel, he advises regarding the interpretation, compliance, and amendment of governing documents; risk management and insurance; operating budgets and reserves; vendor selection and contract

There is a shortage of handicapped parking at my condo. Can I make the Q:board add more spaces so I do not have to park so far away from my unit?

AB

: The best way to address this with your Board would be through a request for an accommodation based on your disability. Most associations have policies for responding to such requests that include requesting medical verification of the disability and requesting a description of the requested accommodation and how it is related to the disability. After you present that information to the board, the board must consider whether your request is reasonable or whether it would create an undue financial or administrative burden for the association. The Fair Housing Council of Oregon has a lot of good resources for helping people make these types of requests. For more information, you should visit fhco.org.

KG

: Associations are required to grant reasonable accommodations to owners with disabilities. This can sometimes include providing handicapped parking spaces.

Depending on how the condominium was created, parking spaces may be individual units or limited common elements assigned to specific owners.

Associations have no way of compelling an owner to give up a parking space that is assigned to them. But the Association can—and would be required to—assign what is otherwise a visitor or general common element parking space to an owner who demonstrates that they have a disability and that the handicapped parking space is necessary because of the disability. Boards faced with accommodation requests should always consult their attorney on how to ensure they are complying with fair housing accommodation/modification requests.

DW

: Probably not. An association is not required to have or maintain a particular number of accessible parking spots under any building or other codes. However, an owner can make a request to the Association for accommodation by asking for assistance in obtaining a closer parking spot under the Americans with Disabilities Act. The problem is that parking areas are often limited common elements or areas assigned to specific lots are units, such that there is no additional parking to provided. Similarly, guest parking is likely characterized as common elements or common areas, which would require an amendment to the declaration and vote to be able to convert it to a limited common element or area. Thus, while the association may want to accommodate this request, it may not legally be able to. If an owner believes they need a closer parking spot (not a larger spot) to accommodate a disability, the best idea would be to see whether an owner with a closer spot would be willing to swap. Once there is an agreement between owners, the request for accommodation can be made to have the associations’ attorney draft the parking swap amendment at the owner’s expense.

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Is there a statute that governs how often a condo association needs to be Q:audited?

If so how often does this need to occur?

KG:

There is no annual audit requirement, but some associations must do an annual review.

The Oregon Condominium Act at ORS 100.480 provides that associations with an annual budget over $75,000 must do an annual review by an independent certified public accountant. In the accounting worlds, there are three types of financial analyses: 1) compilation, 2) review, and 3) audit. The legislature had these types of analyses in mind when they adopted ORS 100.480. The intent was for associations meeting the budget requirement to do a yearly accounting review. Audits, however, are optional under the Condominium Act, but may be required under the association’s governing documents.

The opinions above present general information only. It is not intended to be a source for legal advice and readers should not rely on this article for legal advice. The Oregon Chapter of CAI, CAI National, the panel attorneys or their law firms make no representation that the information in this article is reliable, accurate, or current. This article should not be used as a substitute for obtaining legal advice from an attorney who is qualified and informed about your specific legal issue.

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AB:

No, but there is a requirement for an annual financial “review” by a certified public accountant. Under ORS 100.480(4), an association that has annual assessments of $75,0000 or more must have a “review” by an independent certified public accountant within 180 days of the end of the fiscal year. It is important to look at your governing documents for additional requirements because many associations have audit requirements in their governing documents and those requirements must be followed. It is also important to remember that even if it is not legally required, there are some events that should make a Board consider having an audit; for example, an audit is a good idea at turnover from declarant control and also can be useful if an association moves from one management company to another or switches from self-management to professional management.

DW:

There is no statute governing whether or how frequently a community association should be audited. However, be sure to check your governing documents for any requirement. In addition, an indication of financial irregularity may be circumstances sufficient to trigger a fiduciary obligation to undertake an audit. A consultation with an appropriately qualified attorney and/or CPA may assist in any decision to perform an audit. Though not an audit per se, many Oregon community associations are required to have and to update their reserve studies on a regular basis. An association is required to annually conduct a reserve study or review and update an existing study to determine the reserve account requirements (ORS 94.595(3)(a); ORS 100.175(3)(a)).

Whether a condominium or a planned community, all associations created after October 23, 1999 must have a reserve study (ORS 94.595(5)(a); ORS 100.175(6)(a)). Associations formed prior to October 23, 1999 that have a reserve fund can opt into the reserve study requirement.

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Once in a blue moon Tales of Terror From community associations...

Let’s Do the TIme Warp Again...

Each year, the Irving Street Lofts in Portland hosts an annual summer party on the roof. While enjoying the nice weather and catching up with the residents, I overheard someone mention something about the unit on the 3rd floor they called “the time warp”. Naturally it caught my attention, I love a good story, so I started asking questions. An owner who happens to also be the onsite staff person, had realized that he had never told me about this unit’s unfortunate abandonment.

Apparently, a woman inherited the unit in the mid 1980’s, she lived there for a few years, just as an average occupant of a condo would live. One Portland rainy day she left, never to return. One might worry or question her absence, however her assessments had always been paid on time, without one peep from her. So, I asked if I could see the unit.

Walking into the unit gave me the full grasp of the situation. This unit was not only abandoned, it was literally never cleaned out. The first thing you see as you enter is a set of rad roller blades straight from the late

80’s sitting on the stairs next to the stack of Oregonian newspapers dated 1987. Apparently, she didn’t feel the need to take her closet full of sequined dress gowns and over-sized hats. As we turned the corner into the open concept kitchen, I could not believe what I was seeing, food was still in the sink. If you ever doubted that McDonald’s doesn’t grow mold, this is the place to prove it. At some point they had to break in the door and change all of the locks so they could clean out the refrigerator that still had items in it. Everything was exactly how it was the day the occupant had decided to leave...never to return.

When we finally contacted the owner, she said that she didn’t have plans to sell, and that she often forgot that she still owned the unit. It just goes to show that in a nice building with not so cheap assessments, you might just find yourself going back in time...because that darn auto pay only turns off if you initiate it. - Cole Hamilton, CAP

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The Budgeting Process Recognizing Potentials, Foreseeing Plans, and Avoiding Pitfalls

Preparing an association’s budget for the upcoming year can be a stressful time, both for HOA board and community manager. Especially for managers, September through November can be an especially intense time as they are multi-tasking the creation and revisions of budgets for each association they manage. Additionally, the number of meetings they attend is usually the highest during this time frame. The combination of these two elements can make for a very exhausting and frustrating experience, especially in the cases where managers have created several revisions of a budget for one association. For the community board, it’s stressful in a different way; they are in a position of approving a budget that continues to be affordable for the owners, but also incorporates the appropriate increases that will cover expenses. The stress can come in the form of how they will adequately explain to the owners that their dues are increasing.

The aim of this article is for boards to budget efficiently and – as this article is subtitled - foresee plans, recognize potentials, and avoid pitfalls. Hopefully this will also help the board have a more inside understanding on the manager’s role and challenges throughout the process as this is the most important season for the board and manager to truly partner together.

Recognizing Potentials: Timing is Important Traditionally, the budget “season”, as we like to call it in the industry, begins in September. For a manager, the goal has usually been to have the first draft to the board by the end of September, schedule the budget meeting by mid-October, and have an approved budget by the end of October. If there is no approved budget by the end of October, there is still enough time to get the revised budget to the board for a second look for an approved budget by the end of November. Remember, for those associations where the fiscal year is a calendar year (January 1st to December 31st), notices for the new

“For the community board, it’s stressful in a different way; they are in a position of approving a budget that continues to be affordable for the owners, but also incorporates the appropriate increases that will cover expenses.” budget should be mailed out to owners no later than November 30th in order to comply with the common requirement that owners be given a 30-day notification of when the budget takes effect. This is especially true if an active dues increase over the prior year will take place. There are also some associations where the fiscal year is something different than a calendar year. For an association where the fiscal year starts on July 1st, the notification would need to be sent out no later than May 31st. Other fiscal years may start in March, April, September or October. Whatever the fiscal year is, you can adapt the same time line to when the budget takes effect.

As I’ve described what the “traditional” budget season start date is, let me suggest a different way of mapping the process out in terms of timing. This applies to a January 1st fiscal year. Again, adapt it accordingly to a fiscal year that starts on a different month. The first step would be to have the first draft of the budget completed by the end of July. Although this sounds like it’s too soon, it can be useful so that the board can begin channeling their attention towards beginning to think about what budget line items may change based on their expenses year-to-date, as well as starting to research potential service fee increases for the next year. This version of the budget does not need to be elaborate – it can be a “first sketch” and can indicate areas where increases or changes may be necessary. For example, there are some vendor services such as landscaping and janitorial that may already know what their increases will be for the next year. This is something you can already easily enter into the budget as most of the time they give you what their flat rate will be for the next year (not including out-of-contract services of course). Utility services may also have approved their increases for the next year.

One important utility to be aware of is water. A lot of water districts sometimes have enough of an increase to impact the HOA’s budget substantially. Also, look out for notifications of fee increases from some of the other utility providers such as trash and cable services – a lot of those companies send those out in the summer. (You can always call them if you don’t want to wait.) If they announce a percentage increase, you can calculate that against the year-to-date expenses and remaining months and be able to get close to what the budget will be for those respective services.

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Also be sure to inquire of the insurance carrier how much their premium will increase. If you’d really like to have an accurate budget, be sure to ask each of those providers when the increase will take effect. The yearly budget for that line item can be based on the months that reflect the current fee until the date it increases. For example if your landscaping contract is currently $580 a month through next June, and $590 starting in July, your budget for landscaping next year would be a total of $7,020. As to the reserve allocation line item, this is determined by the reserve study.

The reserve study is required to be updated each year per statute. It’s recommended it be ordered no later than August for the next year in order for it to be completed and approved by the board in time for budget approval. If you have the first draft of the budget to the board prior to the reserve study being drafted, you can temporarily use the recommended allocation to reserves for the next year from the reserve study update you have now. (A completely separate article could be dedicated to the proper preparation of a reserve study update.)

Another reason to start the process earlier in the year is that it gives the board the sense that they have four months to consider the budget for the next year while not having the feeling of urgency at the same time. If you do this, by the time the traditional budget season does begin, the board already has an educated grasp on where their draft budget stands. It also gives the manager the sense that they’re already far along in the process when the season begins. This will help ensure the board that approval of the budget will not take place too far down to the wire… like mid-November! (Keep in mind here that, even though we said budget notices should be sent by November 30th, a lot of management companies require that the budget be approved by mid-November to allow time for entering the new budget into their database, preparing notice packets, and mailing. Having too many budgets approved that close to the deadline creates administrative issues.)

Lastly, beginning the budget process early gives the board the opportunity to have more than one or two pre-budget approval meetings where they can encourage owners to attend and be able to ask questions/give input on the process. Most times the board has the sole authority to approve the budget, but owners still have a voice.

Foreseeing Plans: Detail is Important There are certain items in a budget that are not always determined by a service contract or within the boundaries of

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a set percentage increase such as a utility service. These are things such as maintenance or plumbing. During the budget process, it’s important for the board to consider what expenses they’ve had year-to-date and whether or not they need to budget for it again for the next year…or if they need to adjust the amounts of certain line items based on actual year-to-date expenditures. Another issue is expenditures that were spent but that don’t yet have a line item in the budget assigned to it. For example, there was $100 spent for replacing the lock for the clubhouse, but it was applied to the “Maintenance and Repair” line item. This is where the board can forecast for possible future expenditures and add a “Doors and Locks” line item in the budget. Other examples of things that typically get absorbed into the general maintenance budget are chimneys, dryer vents, gutters, lighting, and roofs. The reason it’s best to assign a specific line item to each of these things is so you have a clear view of what kind of maintenance your spending funds on each year. By doing this you have a more fine tuned budget that accounts for each of these things and reflects specific expenses you should be prepared for year to year.

The same principle applies to your landscape line items. Should you budget only for expenses related to your landscape contract and irrigation repairs? Or does the board wish to plug in extra line items for soil additives, bark mulch, plant replacement, or tree pruning? This can be an opportunity to appoint a landscape committee to propose a budget structure to the board for landscaping.

Of course keep in mind that the more that’s added to the budget, the more the dues will increase unless you can prudently decrease other line items in the budget to make up for the additions.

Avoiding Pitfalls: Caution is Important Something I’ve found with associations to be a controversial issue is whether or not to utilize prior year cash surplus funds (i.e. operating funds collected that weren’t spent) to keep assessment increases down. While technically associations can do this with their surplus, I’ve seen this practice result in short-term relief but long-term harm. An illustration of this is where an association needs a 3% increase, but uses the surplus to get around the increase. Let’s say the year after that they need another 3% increase and they again use surplus to buffer the increase. The next year they need another 3% and they again use surplus. The association now has a cumulative 9% increase over a three-year period that they’ve used their surplus to cover. If the practice continues, at some point they will run their surplus low (or deplete it), then will be in the position of facing a massive increase to

impose on owners that will in essence require them to make up the entire cumulative increase they’ve been avoiding for years. There could be ways to strategically manage a certain amount of surplus combined with a small dues increase on some years where there may be an unusually high increase in expenses. But without staying in the reality of increasing your dues each year to match exactly what the increased expenses will be, you’re taking a gamble. The only true way to avoid the situation described above is to increase dues without using surplus. It’s always good to keep a healthy surplus of funds that is not part of your capital reserve fund. As to how best to use it, this is a discussion between the board and community manager.

Another pitfall that a lot of boards overlook is how much your fidelity insurance premium should increase based on your budget changes. Over the last several years, real estate firms and banks that are assisting owners with sales and refinancing are requiring the association’s fidelity bond to cover at least the sum of three months of owner assessments, as well as the entire balance of the capital reserve fund.

(For those associations that have gotten a settlement, some are requiring the fidelity bond to cover that entire amount as well.) If your budget calls for an increase, you will want to notify your insurance carrier of what the resulting total of three months of regular assessments will be, as well as the current balance of your reserve fund. The fidelity insurance premium will increase, and should be calculated into what the overall premium increase will be for next year.

Lastly, be sure to check your governing documents to make sure there is no specific requirement regarding assessment increases. Some documents allow the board to increase the assessment however much they see fit, where some docs require the owners to vote on an assessment increase above a certain percentage.

Wes Finchum is on the Community Association Partners team and has served the Community Association industry for over twelve years. He has assisted numerous associations through their yearly budget process, which includes creative solutions when they need to raise their assessments to meet increasing administrative and maintenance costs. He has also frequently assisted associations that find themselves with an underfunded budget after turnover from the developer. Recently, Wes has worked closely with associations that have gone through major construction rehabs as a result of deferred maintenance stemming from years of an underfunded budget.

Wes holds the CMCA (Certified Manager of Community Associations) and CAMP (Community Association Management Professional) designations, has served on several CAI and OWCAM committees, and periodically speaks at CAI functions. Wes also holds a Bachelor of Arts in Communication from Lee University in Cleveland, Tennessee.

Service Directory Accounting Services Ihde CPA Mr. Ryan Ihde 14845 SW Murray Scholls Dr Ste 110 Beaverton OR 97007-9237 (503)475-6478 ryan@ihdecpa.com http://www.ihdecpa.com Schwindt & Co Certified Public Accountants & Consultants Mr. David T. Schwindt, RS 3407 SW Corbett Ave Portland OR 97239-4621 (503)227-1165 dschwindt@schwindtco.com http://www.schwindtco.com Williamson & Associates, LLP Ms. Kandi Hudspeth 4949 Meadows Rd Ste 375 Lake Oswego OR 97035-3162 (503)303-5007 kandih@williamsoncpa.com Building Scientists/Engineering/ Architectural Consultants Forensic Building Consultants Ms. Kari Abbott 1200 NW Naito Pkwy Ste 100 Portland OR 97209-2831 (503)772-1114 (234) kari@forensicbuilding.com http://www.forensicbuilding.com Morrison Hershfield Corporation Mr. Caleb Vandermolen 5100 SW Macadam Ave Ste 500 Portland OR 97239-3831 (503)595-9128 cvandermolen@morrisonhershfield.com http://www.morrisonhershfield.com

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Building Scientists/Engineering/ Architectural Consultants RDH Building Science Inc. Mr. David Young 2101 N 34th St Ste 150 Seattle WA 98103-9158 (503)243-6222 dyoung@rdh.com http://www.rdhbe.com Concrete Safe Sidewalks, LLC Mr. John S. Mulliner PO Box 22174 Milwaukie OR 97269-2174 (971)275-0885 john@safesidewalks.com http://www.safesidewalks.com Financial Services Alliance Association Bank Ms. Judy Nordstrom 227 Bellevue Way NE # 531 Bellevue WA 98004-5721 (206)327-0496 jnordstrom@allianceassociationbank. com http://www.allianceassociationbank. com Columbia Bank Mr. Andrew McKechnie 805 SW Broadway Ste 2700 Portland OR 97205-3366 (503)314-1160 amckechnie@columbiabank.com http://www.columbiabank.com First Citizens Bank Ms. Katie Halliday PO Box 27131 RWN-45 Raleigh NC 27611-7131 (919)716-4923 Katie.Halliday@girstcitizens.com http://www.firstcitizens.com/propertymanagement

Financial Services Mutual of Omaha Bank Mr. Kris Gjylameti 10002 Aurora Ave N Ste 36 # 615 Seattle WA 98133-9348 (206)650-1368 Kris.Gjylameti@mutualofomahabank. com http://www.mutualofomahabank.com Northwest Bank Ms. Jenny Tester 4900 Meadows Rd Ste 410 Lake Oswego OR 97035-3298 (503)906-3955 jenny.tester@northwest-bank.com Pacific Premier Bank Mrs. Terri Hamilton, CMCA 19011 Magnolia St Ste 103 Huntington Beach CA 92646-2262 (714)415-4857 thamilton@ppbi.com http://www.ppbi.com Popular Association Banking Ms. Molly Hime 7900 Miami Lakes Dr W Miami Lakes FL 33016-5816 (800)233-7164 mhime@bpop.com http://www.associationbankers.com U.S. Bank Ms. Karen J Rodriguez 950 17th St Fl 8 Denver CO 80202-2815 (303)585-4430 karen.rodriguez@usbank.com http://www.usbank.com Union Bank Homeowners Association Services Ms. Nikki Affinito, PCAM 17 San Benito Ct Walnut Creek CA 94598-4101 (925)297-9838 Nik8tnite@gmail.com http://www.hoabankservices.com

Service Directory General Contracting

General Contracting

General Contracting

Charter Construction, Inc. Ms. Jeanne Crouch 3747 SE 8th Ave Portland OR 97202-3701 (503)546-2600 jcrouch@chartercon.com

Kennedy Restoration Ms. Barb Casey 315 SE 7th Ave Portland OR 97214-1233 (503)234-0509 barbc@kennedyres.com http://www.kennedyres.com

SERVPRO of NW Portland SERVPRO of Lake Oswego/West Linn Mr. Matt Korshoj 2725 NE Columbia Blvd Portland OR 97211 (503) 283-3658 mkorshoj@servpronwportland.com http://servpro.com

Gores Construction Inc. Mr. Nathaniel Palone PO Box 1519 Clackamas OR 97015-1519 (971)717-1825 nathaniel@goresinc.com http://www.sgores.com GreenPointe Design & Construction, Inc. Mr. Daniel Green 14781 SE 82nd Dr Clackamas OR 97015-8688 (503) 756-2404 dan@greenpointedc.com I & E Construction, Inc. Mr. Karl Ivanov 9550 SE Clackamas Rd Clackamas OR 97015-9074 (503)655-7933 jeff@iandeconstruction.com http://www.iandeconstruction.com Indigo Contracting NW, LLC Matthew Brubaker 5331 SW Macadam Ave # 258-104 Portland OR 97239-6104 (877)845-2870 mbrubaker@indigocontracting.com indigocontracting.com J.R. Johnson, Inc. Ms. Alika Nee 9425 N Burrage Ave Portland OR 97217-6966 (503)913-1173 alikan@jrjohnsoninc.com http://www.jrjohnsoninc.com

Laurus Management Inc dba Certapro of Portland Mr. Charles Fletcher 16869 65th Ave Ste 441 Lake Oswego OR 97035-7865 (503)715-3595 cfletcher@certapro.com http://www.west-linn.certapro.com Lifetime Exteriors Mr. Christopher Disbrow 6807 NE 79th Ct Ste A Portland OR 97218-2800 (503)719-6644 info@lifetime-exteriors.net http://www.lifetime-exteriors.net

General Maintenance Finnmark Property Service, LLC Ms. Sara Fleeman 8383 NE Sandy Blvd Ste 206 Portland OR 97220-4948 (503)704-6951 adminassist@finnmarkps.com http://www.finnmarkps.com/ Insurance

LP Building Products Mr. Tom Conchuratt 19000 SW Mobile Pl Tualatin OR 97062-7736 (503)807-5141 tom.conchuratt@lpcorp.com http://www.lpcorp.com Pete Fowler Construction Services Ms. Sue Lewis 931 Calle Negocio Ste J San Clemente CA 92673-6224 (503)246-3744 sl@petefowler.com http://www.petefowler.com Portland Painting & Restoration Mr. Benjamin Friberg 924 SE Stephens St Portland OR 97214-4648 (503)236-7003 info@paintpdx.com http://www.paintpdx.com

American Benefits, Inc. Mr. Vern Newcomb 4800 SW Griffith Dr Ste 300 Beaverton OR 97005-8716 503-292-1580 vern@abipdx.com American Family Insurance Mr. Larry Thompson 15573 Bangy Rd Ste 220 Lake Oswego OR 97035-3396 (503)924-2200 larry.thompson@amfam.com http://www.larrythompsonagency.com

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Service Directory Insurance

Landscaping Services

Landscaping Services

Fournier Group Mr. Dirk Fournier 510 SW 5th Ave Ste 701 Portland OR 97204-2140 (503)251-2255

Dennis Seven Dees Landscaping, Inc. Mr. Craig Broberg 7355 SE Johnson Creek Blvd Portland OR 97206-9329 (503)777-7779 craigb@dennis7dees.com http://www.dennis7dees.com

Willamette Landscape Services Mr. Randall McManus 18480 SW Pacific Hwy Tualatin OR 97062-6971 (503)625-9600 rmcmanus@willamettelandscape.com

HUB International Northwest Ms. Janine Wilson 16555 Boones Ferry Rd Ste 200 Lake Oswego OR 97035-4123 (971)224-1933 joseph.edwards@hubinternational.com http://www.theunitygroup.com Ian H. Graham Insurance Ms. Sylvia Tagle 15303 Ventura Blvd Fl 12 Sherman Oaks CA 91403-5817 (818)742-1430 sylvia.tagle@aon.com http://www.ihginsurance.com McGowan Program Administrators Ms. Kate Medve 20595 Lorain Rd Ste 300 Fairview Park OH 44126-2053 (440)333-6300 kmedve@mcgowanprograms.com http://www.mcgowanins.com Timothy Cline Insurance Agency, Inc. Mr. Timothy Cline, CIRMS 725 Arizona Ave Ste 100 Santa Monica CA 90401-1734 (800)966-9566 (22) timcline@timothycline.com http://www.timothycline.com Landscaping Services BrightView Mr. Joseph Harrison PO Box 20937 Portland OR 97294-0937 (503)621-4101 joseph.harrison@brightview.com http://www.brightview.com

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Landscape East & West, Inc. Mr. Eric Johansson PO Box 430 Clackamas OR 97015-0430 (503)256-5302 (117) ericj@landscapeeast.com http://www.landscapeeast.com Northwest Landscape Services of Oregon, LLC Mr. Andrew Balderrama 1800 NW Cornelius Pass Rd Hillsboro OR 97124-6598 (503)486-5154 andrewb@nlswa.com www.nlswa.com Pacific Landscape Management Ms. Renee McFarland 21555 NW Amberwood Dr Hillsboro OR 97124-6928 (503)703-3834 reneemcfarland@pacscape.com Showplace Landscape Services Mr. Ed Doubrava PO Box 746 Wilsonville OR 97070-0746 (503)682-6006 office@showplacelandscape.net Springtime Landscape & Irrigation, Inc. Mr. Bill Schumacher 62990 Plateau Dr Bend OR 97701-5874 (541)389-4794 bills@springtimeirrigation.com http://www.springtimeirrigation.com

Legal Services Anderson Ballard, LLC Mrs. Amanda Krismer Anderson, Esq. 1455 NW Irving Street Ste 200 Portland OR 97209 (503)974-8555 (701) amanda@andersonballardlaw.com www.andersonballardlaw.com Bagby Law Firm, LLC Ms. Angie Bagby 10260 SW Greenburg Rd Ste 400 Portland OR 97223-5514 (503)621-2774 angie@bagbylegal.com Ball Janik, LLP Mr. Phillip E. Joseph 101 SW Main St Portland OR 97204-3228 (503)944-6037 pjoseph@balljanik.com http://www.balljanik.com Barker Martin, P.S. Mr. Dan Webert 319 SW Washington St Ste 420 Portland OR 97204-2621 (206)381-9806 dwebert@barkermartin.com http://www.barkermartin.com Dunn Carney Allen Higgins & Tongue LLP Ms. Susan Glen 851 SW 6th Ave Ste 1500 Portland OR 97204-1352 (503)417-5373 sglen@dunncarney.com

Service Directory Legal Services

Legal Services

Management Services/Software

Landye Bennett Blumstein, LLP Mr. J. David Bennett, Esq. 1300 SW 5th Ave Ste 3500 Portland OR 97201-5641 (503)224-4100 dbennett@lbblawyers.com

Wyse Kadish LLP Mr. Bruce Orr 621 SW Morrison St Ste 1300 Portland OR 97205-3816 (503)517-8115 bho@wysekadish.com http://www.wysekadish.com

CINC Systems Ms. Vickie Johnson, CMCA, AMS 3055 Breckinridge Blvd Ste 310 Duluth GA 30096-7562 (404)314-0682 vickie@cincsystems.com http://www.cincsystems.com

Management Services/Software

Community Association Partners, LLC Mr. Ed Hamilton PO Box 2429 Beaverton OR 97075-2429 (503)546-3400 info@capartners.net http://www.capartners.net

Profitt Law PC Ms. Kathleen Profitt, Esq. 13568 SE 97th Ave Ste 203B Clackamas OR 97015-6668 503-908-1229 kathleen@profittlaw.com Rafel Law Group, PLLC Mr. Anthony Rafel, Esq. 600 University St. Ste. 2520 Seattle WA 98101 (206)838-2660 arafel@rafellawgroup.com http://www.rafellawgroup.com Schwabe, Williamson & Wyatt, P.C. Ms. Tamara MacLeod 360 SW Bond St Ste 300 Bend OR 97702-3540 (541)749-4044 tmacleod@schwabe.com http://www.schwabe.com Stoel Rives, LLP Mr. Eric Grasberger 600 University St Ste 3600 Seattle WA 98101-4109 (503)294-9439 eric.grasberger@stoel.com http://www.stoel.com Vial Fotheringham, LLP Mr. Camron Hamilton 515 S 400 E Ste 200 Salt Lake City UT 84111-3570 (503)684-4111 cah@vf-law.com http://www.vf-law.com

Aperion Management Group Mr. William C. Anderson, CMCA 20310 Empire Ave Ste A103 Bend OR 97701-5723 (541)389-3172 wanderson@aperionmgmt.com http://www.aperionmgmt.com Ballas & Partners Management, LLC Ms. Susan K. Camarda-West, CMCA, AMS, PCAM 1800 SW 1st Ave Ste 1 Portland OR 97201-5321 503-334-2198 susan@bpmmgmt.com Bluestone & Hockley Real Estate Services Ms. Pamela Hill 9320 SW Barbur Blvd Ste 300 Portland OR 97219-5405 (503)222-3800 (348) phill@bluestonehockley.com BuildingLink.com Mr. Justin Dilley 85 5th Ave Fl 3 New York NY 10003-3019 (212)501-7117 (520) justin@buildinglink.com http://www.buildinglink.com Cascadia Management Incorporated Mr. Julien Cayton 805 SW Industrial Way Ste 9 Bend OR 97702-1093 (541)617-3863 julien@mycascadia.com http://www.cascadiamgmt.com

Community Management, Inc. Ms. Denise Bower, CMCA, AMS, PCAM 2105 SE 9th Ave Portland OR 97214-4653 (503)710-1116 deniseb@communitymgt.com http://www.communitymgt.com Community Management, Inc. Ms. Kaye Youngren 2105 SE 9th Ave Portland OR 97214-4653 (503)233-0300 kayey@communitymgt.com http://www.communitymgt.com CommunityRight, LLC Mr. Rick Zinda PO Box 1809 Clackamas OR 97015-1809 (503)919-0797 rick@communityright.com www.communityright.com CPM Real Estate Services Inc. Mr. David Wright 718 Black Oak Dr Unit A Medford OR 97504-8580 (541)773-6400 dwright@commercialpm.com

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Service Directory Management Services/Software

Management Services/Software

Management Services/Software

Crystal Lake Property Management Ms. Daphne Brix PO Box 8550 Bend OR 97708-8550 (541)318-2636 daphneb@crystallakecm.com http://www.crystallakepm.com

Kappes Miller Management Mr. Walter Berninger 50 SW Pine St Ste 400 Portland OR 97204-3535 (425)688-2042 http://www.kappesmiller.com

The Management Trust – Northwest Mr. Marshall Fant, CMCA PO Box 23099 Portland OR 97281-3099 (503)718-5205 marshall.fant@managementtrust.com

Paydici Mr. Boz Menzalji 319 SW Washington St Ste 801 Portland OR 97204-2616 (855)729-3424 (3) info@paydici.com www.paydici.com

Turner Northwest Community Management Mr. John Turner 10725 SW Barbur Blvd Ste 350 Portland OR 97219-8681 (503)297-1014 hoa@turnernorthwest.com http://turnernorthwest.com

Fieldstone Management, LLC Ms. Teresa Payne, CMCA, AMS PO Box 700 Bend OR 97709-0700 (541)385-7799 (1) teresa@fieldstonemanagement.com http://fieldstonemanagement.com HOA Management, Inc. Ms. Terrie Harris 335 NE Lafayette Ave Bend OR 97701-4555 (541)323-3033 terrie@hoa-bend.com Home Owners Association Management, LLC Mr. Johann Manuel Canjura 229 N Bartlett St Ste 206 Medford OR 97501-6016 (541)200-6320 info@homeownersam.com www.homeownersam.com Invest West Management Mr. Chris Barber, CMCA, AMS 12503 SE Mill Plain Blvd Ste 260 Vancouver WA 98684-4008 (360)254-5700 cbarber@iwminfo.com http://www.iwmhoa.com Jenna’s Place Condominium Mr. Gordon Harwell-Spaulding PO Box 25469 Portland OR 97298-0469 (503)292-4305 gordonharwellspaulding@gmail.com

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Resort Resources, Inc. Ms. Karen Smith 516 SW 13th St Ste 201 Bend OR 97702-3442 (541)383-1586 karen@resortresources.com http://www.resortresources.com Spectrum Real Estate Advisors, Inc Mr. Mark Floistad 1125 SE Division St Ste 209 Portland OR 97202-2567 (503)235-5743 mfloistad@spectrumrea.com www.spectrumrea.com Sperlonga Data & Analytics Mr. Matt Baron 400 Memphis Dr Campbell CA 95008-0310 (408)680-4778 m.baron@sperlongadata.com http://www.sperlongadata.com Sterling Community Management, Inc. Ms. Doris Pascoe, CMCA PO Box 25469 Portland OR 97298-0469 (503)292-4305 mailbox@sterlingcmi.com http://www.sterlingcmi.com

Painting BEHR & KILZ Paints & Primers Ms. Jill Marlatt 12010 Slater Ave NE Apt E5 Kirkland WA 98034-8607 (425)761-9077 jmarlatt@behrpaint.com http://www.behrpro.com CertaPro Painters Ms. Vee Sloan 1501 SE 121st Ave Vancouver WA 98683-6244 (360)260-1460 vsloan@certapro.com http://www.certapro.com PPG Paints Mr. Michael McKernan 1911 Post Oak Park Dr Apt 5125 Houston TX 77027-3318 (816)283-6859 mmckernan@ppg.com http://www.ppgpaints.com Verhaalen Painting, Inc. Mr. Ken Verhaalen PO Box 910 Oregon City OR 97045-0910 (503)657-5570 verhaalenpainting@yahoo.com http://verhaalenpainting.com

Service Directory Painting

Roofing

Tree

Webfoot Painting Co. Mr. Gavin Hepp 20585 Brinson Blvd Ste 4 Bend OR 97701-8741 (541)420-4140 gavin@webfootpainting.com http://www.webfootpainting.com

Carlson Roofing Company, Inc. Mr. Greg Carlson 550 SW Maple St Hillsboro OR 97123-5614 (503)846-1575 greg@carlsonroof.com http://carlsonroof.com

Bartlett Tree Experts Mr. Lyle J. Feilmeier 11814 SE Jennifer St Clackamas OR 97015-9012 (503)519-9001 lfeilmeier@bartlett.com www.bartlett.com

Property Products/Supplies

Northwest Quality Roofing, LLC Mr. Jake Woodruff PO Box 2237 Bend OR 97709-2237 (541)647-1060 gretchen@nwqualityroofing.com http://www.nwqualityroofing.com

Zumar Industries, Inc. Mr. Derek Behnke 12015 Steele St S Tacoma WA 98444-1300 (253)536-7740 derek@zumar.com http://zumar.com Reserve Study Specialists Advanced Reserve Solutions, Inc. Mr. Albert J. Portune, RS 64682 Cook Ave Ste 109 Bend OR 97701-9033 (541)389-1768 aportune@arsinc.com http://www.arsinc.com Reserve Studies by Reserve Funding Mr. Daniel Lawrence Huntley, RS 16869 65th Ave Ste 366 Lake Oswego OR 97035-7865 (800)301-3411 dan@hoareserves.com Reserve Study Group, LLC Ms. Christine W. White, RS 701 5th Ave Ste 4200 Seattle WA 98104-7047 (888)315-2843 christine@reservestudygroup.com http://www.reservestudygroup.com

Security AlliedBarton Security Services Mr. Bill Traughber 2110 SW Jefferson St Ste 200 Portland OR 97201-7702 (503)283-5952 bill.traughber@alliedbarton.com http://www.alliedbarton.com Technology Wave G Mr. Will Conroy 400 2nd Ave W Ste 210 Seattle WA 98119 (425) 947-1623 wconroy@wavebroadband.com http://www.gowaveg.com/g

Vendor Eligibility Verification NetVendor, LLC Mr. Anthony Renaldo 7589 SW Mohawk St Bldg N Tualatin OR 97062-9189 (503)922-1111 sales@netvendor.com http://www.netvendor.net Window/Door Great Northern Window and Door Mr. Dylan Aune 20585 Brinson Blvd Ste 3 Bend OR 97701-8741 (541)382-9615 info@gnwad.com http://www.greatnorthernwindowanddoor.com

Ask A Busy Person

Community Bulletin takes a moment to celebrate the managers that make community associations great.

Karina Haley Community Management, Inc. Portland, OR

How do you deal with difficult situations?

When I find myself in a difficult situation with a client (or vendor) I do my best to be empathetic and draw on past experience or skills to help navigate the conversation to a mutually beneficial solution. Being mindful of the owner’s investment and putting yourself in their shoes can go a long way at shedding perspective on their side; logic doesn’t always win out, but staying calm and compassionate does! I guess the moral of the story is to keep your cool! I have been complimented on being “unflappable” but my experience has been that panicking doesn’t serve either party. When communities hire a management company one service they are paying for is that of a level-headed individual to help them through the emotional imbalances that often accompany issues within communities. Conducting oneself with integrity is a tenet of community management, carry that with you and you will earn the trust and respect of everyone you work with.

What are some communication issues that you face?

Community managers encounter numerous communication issues on a daily basis. There may be language, or cultural barriers that make it difficult to quickly resolve or communicate an issue. I am first generation American and have a degree in Linguistics so those two factors have also helped me broaden my perspective and helped me navigate this truly unique industry. I try my best to consider where the other party is coming from and whether we’re having a misunderstanding due to semantics, language or cultural barriers. If any of those

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are the case stepping back and exhibiting patience can go a long way in demonstrating you’re committed to resolving the problem at hand. To my experience, my goals, and that of the communities with whom I partner, are the same, and moving past any type of communication barrier is sometimes the first step in reaching our mutual goals. With the Pacific Northwest becomes increasingly diverse, I imagine the community management industry will see an increase for a need of bilingual and multi-lingual community managers.

I am fluent in Portuguese and proficient in Spanish so at times that leaves me fielding phone calls in the office that are unrelated to my own portfolio when translation services are needed. That being said, my “HOA” vocabulary could use some improvement, but I have literally been in their position and lived as a non-native speaker trying to traverse a perhaps complex situation amplified by a language barrier (try high school chemistry in Portuguese!). And while I survived high school chemistry in Portuguese, I would still struggle to understand a complex set of laws, rules, and procedures in Portuguese. I always try to remember that struggle when I am trying to help a frustrated client who is frustrated on multiple levels—culturally, linguistically, all while trying to navigate the processes of buying, selling, and living within a HOA governed community.

How do you do it all?

I get asked this question often and the simple answer is, you don’t. The goal is always to be proactive and prioritize projects and tasks. The reality is that things change so quickly in this industry that you’ll never have “nothing to do” or be “fully

caught up.” This is because for portfolio managers queries and requests from clients are constantly rolling in all the while meeting attendance, financial statement preparation and maintenance calendars require a fair amount of your time as well. The solution is to prioritize those tasks and ask for help when needed. The technology we have available to us today is definitely a bonus in that we can help more people at once and enhance our customer service, however it certainly speeds up the rate at which things come in!

So the key for me is to roll with it and change gears when necessary, the challenge in that is to not lose track of the “small things.” As managers we have to not only delegate tasks, but ask for help when needed and rely on others to support us.

Remember, the key to a community manager’s success is teamwork whether that team is within the office in the form of a manager-assistant relationship or outside with the support of Boards and homeowners, vendors, law firms and insurance agents. Call on your team to cement your success!

What is your biggest challenge?

I would say my biggest challenge is feeling like there is always something more to learn! I have been in this industry for 4 years and every day I run into a new situation that I may not be familiar with or have the answer ready on the tip of my tongue.

Instead of letting that fact intimidate me I let it drive me to continue learning from each experience I have, classes that I take and professional designation that I earn. Having recently completed the CMCA* exam as well as the CAMP* test I am excited to continue expanding my skillset and knowledge base to become a more skilled and experienced Community Manager.

What’s your favorite part of your job?

Budgets and financial statements! Although I never thought of myself as a “numbers person” I have always had a head for them and enjoy the puzzle-like nature of putting a budget together or analyzing a financial statement. Further, the budget for any community is a critical tool that helps boards strike a balance between needs and wants. It is also a way for owners to evaluate the health of their community, as well as gain a snapshot of one of the products that a board is critical in developing. Communities that have years of balanced budgets, well-funded reserves, and also leave a little room for amenities are far better equipped to handle a set-back than those that have not done their due diligence over years of operation. If your community has not had a major financial set-back, congratulations. But, most communities do encounter some form of an emergency situation during the life of the community. Whether it’s a lawsuit, a major replacement of a component, or a difficult to negotiate insurance claim, your community needs to be prepared. A reputable management company and certified, competent manager can help you chart those rough waters.

Community management may not be for the faint of heart but it can be a truly rewarding profession that will always keep you on your toes. I’ve definitely never heard a community manager say they were bored!

I have not only met amazing people and made lifelong friends but have also learned a LOT!

A Little More About Karina Haley, CMCA, CAMP Karina Haley was born in Portland and attended Portland State University where she earned a degree in Applied Linguistics and a minor in Spanish. She has an extensive background in customer service, retail, and business administration. She completed a year-long exchange program in Brazil during high school and is fluent in Portuguese and conversationally fluent in Spanish. Karina started her community management carreer with CMI in 2012 as a Community Administrator and was promoted to manager in January 2015. Recently, Karina completed the required course work and a treacherous exam associated with earning her CMCA credential. In an effort to satisfy her life-long thirst for learning, she also completed an accounting class as well as the coursework and test needed to earn her CAMP designation. Karina is hopeful to further her certifications to one day include the highest designation of PCAM. Karina enjoys playing soccer, spending time with Fredo her 12 year old basenji/cattle dog mix, and visiting wineries and Black Butte Ranch with her husband of almost 6 years, Garin.

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Community Association Volunteer Leader Spotlight The volunteers that serve on community association boards are amazing people.

Join us in celebrating their stories!

Tony Daguanno Royal Arms Condominium Association

“My wife and I bought our condo several years ago. We did not spend much time looking. We wanted to live at the Royal Arms when we first saw it.

Being among the first units sold, I landed a spot on the transitional board during our first year. At the time that we bought the unit, there were only a handful of units that had been sold by the developer. Once the balance of the units sold reached a certain benchmark, it was up to the group to ensure that the transition between the developer and the HOA went smoothly.

It is quite remarkable that I had agreed to join. I was still suffering from Post Resident Manager Stress Disorder. I was only two years out from my last on-site property management gig and I was still checking the peephole about 83 times before I stepped out into our hallway for fear of getting an earful from a neighbor about the length of the washer’s spin cycle.

Fortunately, the transitional board was more about bonding over beers with fellow owners than it was about dealing with property-related issues. However, by the time the HOA started having its first few meetings, and we were ready to elect officers, I knew that it was time for me to fly. The email subject lines began sounding like a prospective title for a Perry Mason episode: The Case of the Noisy Neighbors; The Case of the Leaky Roof; The Case of the Dirty Laundry Room, etc.

Have you heard about the cobbler’s kids having no shoes? After years of receiving late night calls from people locking themselves out of their apartments (never put keys in checked luggage) and reading long notes incorporating the history of world into their argument for waiving their late rent fee, the last thing I wanted was to feel that pain again. I decided not to put my name out there for a board position.

Last year, I received an email from our HOA board president. Our management company had given us notice. She asked if I would join the search committee. How could I resist? Shortly after that time, a board member resigned from the position and I was asked if I could fill in for a bit. Of course I could.

Since then, I have now become a fully elected board member. Sure it is stressful. There are few subjects for discussion that are not met with some disagreement. The purchase of $160 rug for the lobby generated more dialogue than the most recent episode of Game of Thrones did. But, though there are the occasional conflicts, there a far more laughs.

What does all this mean? When I was managing a building, I was always alone. I felt isolated and of no relation to those around me. Being a part of the board, sharing the experiences with other homeowners and being challenged in my way of thinking about things has given me a new perspective on what it means to manage a building.

It can be fun.”

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Association Spotlight

Perspective buyers fell in love with the location and views of Hilltop Condos at Uptown. However all the elements of an urban melodrama lurked in the shadows.

One wouldn’t suspect that a ticking crisis quickly put a damper on the incredible view of Mt. Hood, Mt. St Helen’s, and Mt Adams, downtown Portland to Vancouver, WA, and the Willamette. The fact that this complex of 16 buildings began as apartments in 1990 gave us little caution to it’s new conversion.

Conversions were all the thing in Portland.

All was well…at first. Moving trucks cycled up and down the steep driveway and the first novice elected HOA board settled in to steer the new association forward. Excitement spiked the air.

Then came the first of many complaints of water intrusion problems. Inexperienced in condo governing, the fledgling board sought advice about how to deal with the mounting crisis’ of mold, dry rot, flooded condos, and possible law suits. Suggestions flowed freely.

6 years passed by. The HOA’s agenda stuck in the mire of failed promises to fix the now complex-wide issues of poor drainage, seals, and other construction woes. Current boards sought help from engineers, construction contractors, attorneys, and the property management company. Lots of dead ends, false starts, and financial sacrifices of special assessments and lower property values by the owners raised the level of distrust and tempers.

The association struggled mightily to find a construction partner who could deliver superior value. First was the one who insisted on a budget that would have broken the association members for years to come. Next came the “bargain basement” contractor who was quickly discovered to cut corners and deliver woefully shoddy workmanship. Just as the association was falling into a legal civil war, a board member heard from a friend whose condos had experienced similar problems and had great success with Gores Construction. We quickly contacted them and were delighted to find that they had a stellar reputation. They listened carefully to our situation and needs, made a thorough analysis, and proposed a solution that completely addressed the key remediation problems in a way that met our budget.

Now that the condos are healthy and our property values high, we’ve put our melodrama behind us.

Now we enjoy the sweep of the mountains, city, and Willamette from our wonderful perches on the cliff without the worry of going over it.

Hilltop Condominiums at Uptown Portland, OR

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Because you have more important things to worry about.

• Response • Service • Experience • Recovery

www.kennedyres.com