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community bulletin

A quarterly Dispatch by CAI Oregon

January 2016 Volume 1 Issue 2

Reducing Risk with Reserve Studies Theories & Best Practices

Listening to Your Building

Assessing Needs Through Inspection

Be Reasonable

Accommodating Special Needs

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

Contents t EDITOR Sara Eanni

Marketing Committee Chair


page 24

h TEAM Jed Spera, Layout & Design Tysen Bodewig Jacqueline Gores Ed Hamilton Matt Maher Laura McDermott Nathanial Palone Sara Spera


Interested in advertising in Community Bulletin? Contact us at community

There are lots of ways to limit liability, but reserve studies could be the most important for your community association.


CAI News........................................................... 9

This publication attempts to provide

Educational Resources...................................... 11

CAI’s membership with information on community association issues. Authors

Around Town..................................................... 12

are responsible for developing the logic of their expressed opinions and for the

Ask & Answer.................................................... 14

authenticity of all represented facts in articles. CAI Oregon nor CAI necessarily

“Are You Listening” - Topic Spotlight................. 16

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 understand-


ing that the publisher is not engaged in rendering legal, accounting or other contained within should not be constituted action regarding financial, legal, accounting or other professional services by CAI, the Oregon Chapter, or its authors or advertisers. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Once In A Blue Moon........................................ 23 “Be Reasonable” - Governance Spotlight.......... 30 Service Directory............................................... 32

professional services and the information as a recommendation for any course of

Legal Eagles...................................................... 20

page 7

Ask a Busy Person............................................. 38 CAVL Spotlight.................................................. 40 Association Spotlight........................................ 41


President’s Message New Challenges & Opportunities for 2016 For all of our members, 2016 brings a year of exciting opportunities, along with many challenges. As we continue to look for ways to grow and expand the educational and networking opportunities for our members, we are also considering how CAI Oregon can do things better, and in a way that brings value to our current members, as well as encourage the members of the over 3,800 condominium and planned development communities in Oregon to join our organization and gain knowledge from our educational programming. Along with this magazine, we have committed to continuing our homeowner education events, including our Roundtable event, that I hope will bring a fun and interactive aspect to our educational programming. Our Community Association Day Trade Show continues to grow and expand, and we have a new format for our Board education series that we hope will create a more substantive experience for those that attend this program. Remember that all of our Community Association Volunteer Leader members may attend our luncheon, roundtable, and Board education programs free this year! I hope that 2016 is an excellent year for you and that CAI Oregon is a part of that excellence. As always, we encourage your feedback on all of our events and programs so that we can continue to grow. Have a fantastic year and enjoy the rest of your winter!

Jed Spera 2016 CAI Oregon Board President


BOARD OF DIRECTORS Jed Spera President Sara Eanni President-Elect Angela Shinn Vice-President Kathleen Profitt Secretary Andrea Klopfenstein Treasurer Briana Buck CAVL Director Brad Finson Manager Director Jason Grosz Business Partner Director Connie Plowman CAVL Director Barb Casey Past President


Central Oregon Regional Coucil Stephen Herr | Council President Greg Coxey| Past President Terrie Harris | Treasurer Tami MacLeod | Secretary

Honesty Transparency

& Commitment

That’s Who

We A r e ! Portland OR 503.546.3400



Jed Spera Awards Committee

Kyle Grant Education Committee

Barb Casey Sponsorship Committee

Denise Bower Deana Doney Karna Gustafson David Schwindt Cheryl Brendle Richard Thompson Richard Vial Scott Barrie - Lobbyist

Angela Shinn CAVL Taskforce angela@

Barb Casey Events Committee

Barb Casey Personnel Committee

Sara Eanni Marketing Committee

Sara Spera Welcome Committee

Legislative Action Committee

Angela Shinn CA Day Committee angela@

Mark Seigal Membership Committee

Notes from the Oregon Chapter Executive Director Happy New Year 2016 is bringing many new and exciting things to CAI Oregon.   This year, all educational programs are FREE to homeowner members with your paid CAI membership. We’re also gearing up to have another amazing CA Day, our national awardwinning event, which is scheduled for May 14th.  The cost for board members to attend is only $15, and in addition to the all day education, it also includes two CAI National publications to take home.   There are three more brand-new magazines coming out this year (in April, July and October).  Our magazines are always available on the CAI Oregon website, but if you’d prefer a hard copy, please let us know using the link on our website in the “Community Bulletin” section.   Additionally, CAI Oregon is now holding HOMEOWNER-ONLY roundtable programs.  These evening programs are FREE to all participants and geared towards homeowners that want a casual environment to ask questions and learn from industry experts and one another. Our chapter continues to hold monthly educational luncheons every second Friday at the Multnomah Athletic Club, as well as our popular social events:  charity casino/poker night in March, Portland Spirit cruise in July, and our August golf tournament.  Please visit our website http://www. or contact the chapter with any questions.   I look forward to seeing you in 2016!  

Laura McDermott Oregon Chapter Executive Director


contact us Laura McDermott Executive Director CAI-Oregon 503.635.0742 For Inquiries/Comments/Feedback for this magazine, please contact the Community Bulletin staff at


UPCOMING EVENTS Portland Casino & Poker Night March



6pm Cornelius Pass Roadhouse Our 3rd Annual Casino and Poker Night is our annual charity tournament supporting the Good Neighbor Center of Tigard. Please join us for an evening of games and prizes where all proceeds benefit CAI Oregon and the Good Neighbor Center.

2016 Kick-Off Event

Portland Monthly Luncheon

12pm Multnomah Athletic Club

5:30pm Tiffany Center January



A new year, a new format for this exciting event! This year, our Kick-off will introduce our upcoming education and networking offerings for the year. Additionally, we will have a short legislative update, Chapter Awards, raffle prizes, sponsorship sign-up discounts, and much more! Best of all, it’s free!




Fostering Community in Your Association Apathy can not only be a turn-off to potential buyers, but it can also encourage bad governance and bad communication. Join us to hear ways to combat apathy in your community.

CORC Events

Portland Monthly Luncheon

2016 CORC Kick-Off Event

12pm Multnomah Athletic Club February

12 Friday

Marijuana & Community Associations The legalization of marijuana creates many new considerations for community associations. Issues may arise regarding rulemaking and enforcement for both using and growing marijuana.

6pm Oxford Hotel, Bend March



CORC Boot Camp

Portland Monthly Luncheon March

11 Friday

12pm Multnomah Athletic Club Crisis Management - Deferred Maintenance Comes Calling Deferred maintenance can lead to expensive, controversial and divisive repair projects for communities.

Join us for the kick-off to our year. Our kick-off event will include prizes, a legislative update, and our “Ask An Association Attorney” panel.




8:30am Oxford Hotel, Bend In today’s complex community environment, there are many difficult issues that homeowner associations face. Join us as we present a series of comprehensive special seminars that provide specific resources and knowledge to homeowner and condominium boards of directors.

New Faces at CAI Oregon NEW MEMBERS Community Association Volunteer Leaders Individual Memberships Larry Meissner, American Plaza Towers Mary Cash, Flintridge Village Condos Manager Members Aperion Management Group Asa Hammon Kathy Oberst Rhiannon Schmidt Community Management, Inc. Ross Holtry Fieldstone Management Cydney Janes Invest West Management Melissa McDowell Pinnacle Jessica Gardiner Superior Community Management Karen Alvarez

Professional Property Management Lelly Clairmont-Steele

Manager Members

Superior Coommunity Management Angela Shinn

Fieldstone Management Teresa Payne Invest West Chris Barber Resort Resources Karen Smith Spectrum Real Estate Advisors Mark Floistad Sterling Community Management Doris Pascoe Turner Northwest Community Management John Turner Aperion Management Group Katie Anderson

Business Partner Members Carlson Roofing Company Greg Carlson

Claremont Civic Association J. Patrick Moore

LP Building Propducts Tom Conchuratt

Community Management, Inc. Denise Bower Cheryl Brendle Lisa Campbell Brad Finson Keenan Hall Nancy LaVoie Tom LaVoie Joel McDonell Steve Mayer Carra Pewsey

Community Association Volunteer Leaders River Canyon Estates Randall Brady Victoria Kessler Chrin Morin Ken Schmitz The Quintet Condominium Brigatta Carlson Thomas Cherry The Gregory Condominiums Patricia Bellamah Micheal Feldman


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

Individual Memberships Douglas Caudell Briana Buck, Arbor Crossing at Quatama Randy Arthur, Lake Oswego Corporation Margaret York, Treehill Park HOA

Ballas & Partners Management Julie Balestreri

Renewing Members

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

Kappes Miller Management Ben Weaver Little Whale Cove HOA Michael Ryan Northview Community Services Debra Hahn Curt Heimuller Genevieve Herrera

Riverside Management Company, Inc. Skip Anderson

The Management Group Dominica Culer Sandra Enbysk The Management Trust - Northwest Stacy Bloos Worldmark by Wyndham Tinaka Difani Amie Heslen Business Partner Members Rafel Law Group Anthony Rafel Dennis Seven Dees Landscaping Craig Broberg I&E Construction Karl Ivanov Ihde CPA Ryan Ihde Morrison Hershfield Corporation Portland Painting & Restoration Benjamin Friberg Profit Law PC Kathleen Profitt Resere STudies by Reserve Funding Dan Huntley Sprintime Landscape Bill Schumacher Webfoot Painting Gavin Hepp

CAI Oregon News Just because it’s winter, it doesn’t mean that we slow down!... • Some exciting internal additions to the Chapter are two new committees that will focus on member services. Our first addition is the Welcome Committee that will concentrate on welcoming new members and fostering community. This committee’s job is to make new members feel comfortable and included in all Chapter programs. Our second new addition is the Awards Committee that will have the duty of bestowing awards on deserving CAI Oregon members and Associations. This committee will help streamline the requirements and process for selecting our award winners. Stay tuned for more information on our new committees! • More exciting Chapter news is our very own President, Jed Spera and President elect, Sara Eanni, will be speaking at

this year’s National Conference in Orlando Florida! Their program, entitled “Data Doesn’t Lie: Using Statistics and Metrics to Develop a Successful Board and Community” will focus on using metrics to measure your community’s success. Our Chapter is very excited to have Oregon representation at the National conference. You can sign up for the conference on CAI National’s website, • Lastly, our Chapter will be holding it’s third annual Charity Poker and Casino Night on March 3rd. This event helps our surrounding community by donating proceeds to CAI Oregon’s local partner charity, Good Neighbor Center. To learn more about joining this fun and charitable event with great prizes, visit the CAI Oregon website at www.caioregon.

We want to thank the authors from our last issue: “Is Your Money Safe” Sara Eanni, American Benefits “First-Party Insurance Claims for Property Damage: A Potential Alternative to Special Assessments for Major Repairs” Dan Webert & Jim Guse, Barker Martin “Defining the Successful Community” Jed Spera, Merlo Station Townhomes Owners Association


Since the initial release of Community Bulletin, we have received amazing feedback from CAI members and community leaders. Community Bulletin is designed to be a resource for associations and a center where communities can come together, share experiences, and encourage positive changes in their associations. Building stronger, more successful communities only make them more attractive and better for owners and perspective buyers. The potential risks are not going away, but the way that boards and directors handle these issues can make all the difference. An imperative issue that is commonly seen within associations is the amount of reserves versus their capital maintenance needed in the future years. The best thing an association can do is to be proactive and prepare themselves for these future expenditures. This edition will dive deep into how an association can plan ahead and protect themselves by adequately analyzing the amount of reserves needed. As always, we encourage our communities to share both the good and not so good stories. Let us use these stories as learning experiences to implement positive changes in the New Year.

Sara Eanni Community Bulletin Editor


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

EducationAL Resources

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

Finding the Right Manager

Are you currently looking to hire a professional and credentialed community manager for your community? Be sure to review the list of credentialed management professionals. These individuals have gone through extensive training through CAI National’s training courses and have the knowledge and experience to meet your community’s needs. Go to: aspx

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. for more information!

Fair Housing And Community Associations

Despite what you may have heard, community associations are not immune from the laws that govern fair housing. Don’t get yourself caught in a situation where you owe a fine due to ignorance of this legislation. Check out the Fair Housing Guide for Homeowners located in the Member Resources section of the CAI Oregon website (www.caioregon. org), and visit the Fair Housing Council of Oregon for more information. You may also want to check out our Fair Housing class being offered at our Community Association Day Trade Show on May 14th!

2016 CAI National Conference

In additional to the Oregon Community Association Day Trade Show, CAI National holds an annual conference that offers several seminars, keynote speakers and a large vendor trade show for the education of its members. This year CAI National has added a Board Member Development track to their conference programming. And guess what? CAI Oregon Board President Jed Spera, and President Elect Sara Eanni, will be speaking at this year’s event! For more information, visit

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


Around Town

2015 Gala Event - Sara & Jed Spera, Jason Grosz and Jennifer Green take a moment for a picture during registration 2015 Gala Event - Chapter Executive Director and Chapter President Barb Casey check guests in.

October 2015 Homeowner Roundtable - Attendees learn from industry experts in the first of this event.

2015 October Luncheon - Rich Vial and Eric Gordon present on Fair Housing and HOAs

2015 Gala Event - Barbara Kanz accepts her Michael Levine Lifetime Acheivement Award for service to CAI Oregon.

2015 Gala Event - Sara Eanni accepts her award as Volunteer of the Year

What were you doing 66 years ago January 1?? If you were a young man with the name of Stan Kennedy, you were just starting a new window- washing company. In a couple of years, he would start Kennedy Cleaning and Decorating, which slowly morphed into Kennedy Construction. As time marched on, an insurance adjuster friend asked Stan to fix a kitchen fire in a house; at the conclusion of the job and discussions with the adjuster, Stan felt this was the forecast of the future and Kennedy Restoration was born. For the ensuing years, Kennedy Restoration has specialized in property damage restoration, including water mitigation, contents cleaning and storage, fire, mold and biohazard cleanup. If something destroys your home, condominium building, multifamily property or commercial property, Kennedy Restoration can put it back together to pre-loss condition, many times in better shape than the building was before the damage. Kennedy Restoration has been in this industry for so long that they are well accepted and respected by almost all insurance carriers and independent adjusters. While Kennedy does not interpret insurance policy coverages and leaves that aspect to the professionals, Kennedy Restoration understands the insurance process and works very closely with the adjusters, while always acting as advocates for you, the client. You are Kennedy’s customer. Restoring lives and rebuilding properties is more than just a slogan to Kennedy Restoration. It is the mission through all work is performed. Property damage is a very traumatic event and it takes a lot of caring and training to help lives and properties get back to normal. All employees are trained in the latest state -of -the art techniques through the I.I.C.R.C., the industry’s standard for training and development. But, at times, mistakes can happen and when they do, Kennedy Restoration makes every effort to improve communication to the client and make good on every promise. So what’s new for 2016? Stan Kennedy’s two sons, Larry Goldade and Tanner Kennedy, who have been working at Kennedy Restoration for 30 years, will become the new owners of the company. Stan has been retired for several years but has decided to officially turn over the reins starting January 1. It is important to note that the customer service expectations and work quality will not change. Kennedy Restoration is determined to get better and better as the years go on. Here’s to an exciting and profitable 2016 to all of you at CAI Oregon. Happy New Year!!

Kennedy Restoration 315 SE 7th Avenue Portland,Oregon 97214 503-234-0509


“The new management company cannot seem to find all our files; What can we do?”


A recent complaint expressed is but one of many echoing the same cry for help.





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 wil find a local expert to answer.

This is a major problem for Associations, but where does the onus lie: the management company or the Association? The answer, unfortunately, is both. Most home owners are cautious on moving day. You want to ensure your possessions are packed properly, you receive an inventory of what is boxed, loaded on the moving van, and upon arrival you check again to ensure all your possessions have arrived and have been delivered undamaged. The same rule applies when a new management company takes possession of your Association’s records and files. A management company that is competent usually provides to the Association that they have recently contracted with a “Transition List” or a “New Client Start-Up” to be completed by the Association. Some of the information requested would be: •

A list of all unit owners, addresses, relevant contact information, and should include a request to determine the percentage of investor owned units and if the community is a tax district.

A list of all vendors/contractors used by the Association.

The number of bank accounts [loan information to ensure due date for payment], business checking, and savings including verification of authorized signatures.

All governing documents of the association

Insurance information to include the agent, carrier, policy period end date.

Request information on any pending lawsuits

Emergency information

A copy of the association’s operating budget and common fee schedule in effect when the new management company takes over and the late fee policy.

A competent management company will check the Secretary of State to determine if the Association is current in its file. In addition, they will prepare and submit the new change forms.

Most important is receipt of all accounting records in order to bring their accounting system current.

Some management companies will flash drive written documents and accounting files. Although the prior management software may be entirely different; the new management company will have full records and could, in some instances, retrieve these files if necessary.

Security Codes for buildings, if applicable, the Alarm Company and the first and second responders.

Change of Agent Form and a Change of Business Address Form with the Office of the Secretary of State.

In one instance, a new management company filed a Change Of Agent form with the Secretary of State six [6] months after contracting with the Association, but never changed the mailing address or new board member names, hence information was still being sent to the former management company and a board president who was no longer on the Board of Directors. Management companies retain the current year files and in some cases the prior year files nearby. Remaining files are archived. Critical files that should be turned over and signed for by the new management company are: 1. 2. 3. 4. 5. 6. 7. 8.

Unit Owner files Contract file containing all completed contracts Insurance files containing past claim history Governing documents for Association Pending quotes Pending work orders Pending payables Audit file [containing past approved audits of association’s financial status]

Every Association is different, therefore the above outline would differ depending on the scope of your common

interest community. So what steps should your Association follow to ensure that your records and files, the history of your Association, is not misplaced, mislabeled, or simply just placed in a storage area? Or worse, the complaint from the new management company is “I have yet to find a current contract file in 40+ boxes of records that I was given. The files are all askew?“ If your new management company cannot or does not provide the Association with a document to account for the files they will be taking, then develop one. This will ensure that either the former or new management company does not play the “blame game” with missing files. The only entity that faces problems with the ‘blame game’ is the Association. A reputable management company should willingly comply when turning over their records, thereby ensuring they have met their obligation to the Association and this leaves them fault free when records cannot be found by the new management company. In addition, a member or members of the Board of Directors may also want to be on site when records are moved or could before hand go through their Check List to verify what records will be turned over. Advise your new management company to follow your transition list and state that you want each line items to be initialed, indicating they have taken possession of your records, and request that a signed copy by the property manager is to be returned to the Association. Gail Egan Central Oregon Community College

Are You Listening?

Ignoring the signals of deterioration or needed repairs can prove to be a costly mistake...

What does Your Building Say? Exterior Building Indicators It can be difficult to tell if there is damage behind the exterior components of your building. Many problematic issues can be discovered and resolved early if key visual indicators are observed and swift action is taken to correct them. If these visual indicators are ignored, the cost to repair will increase exponentially. It is easy to ignore the exterior of your buildings, but it is vital to keep a sense of how your buildings are performing. KEY INDICATORS TO LOOK FOR DAMAGED BUILDING COMPONENTS When building components are damaged, it puts the entire building at risk. If there are any reports of exterior cladding damage, it should be investigated as soon as possible to determine the level of damage. The following are important signs to look for that may result in underlying issues: • Siding: Broken, warped, or cracked siding allows for water and moisture to penetrate the exterior cladding. If the components behind the cladding were not properly installed, the moisture will get stuck and could cause components to deteriorate. • Stucco: Cracks, bulged, discoloured or has algae growth. • Trim: Swollen, cracked, or soft. ( See Ex. 4) • Decks: Cracked deck boards, failed waterproofing membranes, and railing attachments that are loose.

Concrete: Cracked or lifting. Damaged galvanized pan decking (Ex 3) used to hold the concrete at walkways. Concrete poured over siding, masonry, or stucco. Algae Growth: Algae on siding, stucco, and masonry are an indicator that water is not draining off of these building components as required (See Ex. 1). This could be a sign that there might be a bigger issue behind these components that are keeping these areas wet. Cleaning the exterior of buildings is an important factor in keeping the building’s exterior healthy and looking good.

IMPROPER CONSTRUCTION All exterior building components must be properly installed to avoid water intrusion behind the cladding. The following are the most common defects that we observe in the Oregon and SW Washington Area. Flashings: Metal flashings are required at all window and door heads, above all trim ledges, at deck ledger boards, at deck perimeters when the deck is waterproof, at all terminations of siding to stone or brick areas, at gutter to wall terminations (Ex 1), under door thresholds, and at concrete to cladding terminations (Ex. 2 & 3 are Underlying damage a result of improper deck flashing). Other flashing may be required

to meet the specific needs of a building. Important places to look for flashing: • Above windows and doors and penetrations • Above Belly-bands and trim • Roof to wall transitions (Where the roof intersects a wall) • At all deck areas (Waterproof decks and Flow-Thru decks have different flashing requirements.) • Between stucco and dissimilar materials • Between siding and stone • Behind concrete when the concrete is poured over the stucco, siding or masonry Caulking/Sealant: Walk around the exterior of the building and examine the caulking around the windows, doors, and utility penetrations. If there are areas where the caulking is loose, cracking, discoloured, or deteriorating, it is important to have them re-caulked. These are signifiers of water effecting the caulking. If left ignored they can cause significant damage. If the trim or siding around the window is showing signs of damage (See Ex. 4), ask an expert to inspect the area in question. This example shows an extreme case in which the water intrusion has caused fungal growth behind the trim. Keep an eye out for signs of wear such as fading paint, trim deteriorating and broken trim or siding. If there isn’t any caulking around the windows or doors (minimum of a 3/8” caulk joint), then have the building inspected as soon as

possible. Proper caulking and maintenance can go a long way in keeping water out. Deck Coatings: Waterproof deck coatings must incorporate perimeter flashings in order for them to work correctly. Doors leading to decks must have flashing at the threshold in order to keep water out of the wall assemblies. The decks must also be sloped to create positive drainage away from the doors and walls. Deck coatings must be checked on a regular basis. If coatings have failed, it could result in water penetrating the deck framing assembly. If deck framing has been compromised, it could lead to dry rot repairs being required. Under normal conditions, deck coatings have a life span of 6-7 years and must be re-coated to keep water out.

Railings that are attached through the deck membranes must also be sealed on a yearly basis. The shifting of railing from pedestrians leaning on the rails causes movement of the membrane. With enough movement, the membrane can become damaged and no longer effective. CONCLUSION With proper visual inspection, the buildings you manage or live in will give you signs if something is wrong. Be aware of the signs that are being displayed. Visual indicators go a long way in saving owners thousands of dollars in repairs if they are addressed

Sean Gores, President Gores Construction, Inc.

“Visual indicators go a long way in saving owners thousands of dollars in repairs if they are addressed early.”

early. The longer an indicator is ignored, the more it will cost to repair. A great way to stay upto-date with your building is to have a maintenance plan put into place. Have your building components routinely checked. If there are indicators identified, make sure to have them checked out as soon as possible by a building professional. Along with the maintenance plan, a reserve study should be generated for all associations to allow them to prepare financially for the expected and unexpected costs of building upkeep and construction repairs. There are many companies that can provide a maintenance plan and reserve study. Be sure to do your research and have multiple companies provide proposals for these services. The more time spent waiting to address a visual indicator is the potential for more damage to take place.

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


What and where is the Management Company/Board’s liability in holding keys for entering a unit?


: Holding unit owner keys cuts both ways. Holding keys allows for quick access in the case of an emergency (e.g., fire or water leak), but that is usually only the case for an on-site manager. Plus, if there is a fire or major water leak, the fire department will not wait for someone to unlock a door. Holding keys also opens a host of liability issues, including lost or stolen keys, inadequate logging, and potential claims for misuse. For these reasons, holding keys is sometimes disfavored. With respect to accompanying a vendor inspect or enter a home, your concern is warranted. Preliminarily, the association must have sound authority for entry. Next, sufficient notice must be provided. Last, if the owner ignores or refuses access, then the most conservative approach would


be to seek a court order. The purpose of the entry and level of hazard (e.g., life safety versus aesthetic issue) will likely play into any analysis. If the association desires to proceed based on its governing documents alone, we recommend seeking legal counsel to ensure compliance and minimize liability.


: Often, it comes down to a matter of safety. If the owners gives the manager their keys for their own convenience, then I think the potential liability is very minimal. If the Association needs to use a locksmith to gain entry, the potential for claims increases, but as long as the Association carefully follows all procedures in its governing documents before using the right of entry, then I believe the risks to the manager are minimal. For protection, the Association and manager should make sure their insurance policies would provide coverage if there are claims of damage relating to entry into the unit.


: With regard to liability – the biggest and most common problem with the Board or Manager entering an owner’s unit is having an owner, after the fact, accuse the Board member or Manager of theft or damage to property. For that reason, I always suggest that a manager send a letter encouraging the homeowner to be present during the inspection. Failing that, I think it’s a good idea to have a Board member or some third party present as a second set of eyes and ears (a witness) during the entry. Ultimately, if an owner accuses the manager of theft or damage to property it is a classic “he said, she said” type dispute. It’s better if you have another witness present to corroborate your version of the inspection and verify that no theft of property or damage was done. Liability associated with holding keys is a complicated issue. Some managers do that but I have never been comfortable with it. I’d rather

Our Panelists 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. Jason Grosz | Vial Fotheringham | Lake Oswego, OR: Jason joined VF Law in 2003 and currently represents homeowner associations in various types of litigation including construction defect, land use, architectural review, and rules enforcement. Jason also provides counsel relating to HOA governance, document amendment, turnover, and development issues. 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 review; dispute resolution; collections; and, other general advice.

see you have the owner facilitate access (open the door) or access the unit using a locksmith if and only if absolutely necessary.


:How does a Board properly hold a hearing when there’s been a rules violation - both when the owner shows up, and a default hearing when they don’t?


: The best practice is for the Board to adopt a resolution with a hearing procedure that will be applied to all hearings. Some of the things that should be included in the resolution are: 1. How does an owner request a hearing or is a hearing automatically set before any fine is imposed? 2. If hearings are conducted in open session, is there a way an owner can request that the hearing be held in a closed session to protect confidential information such as medical information? 3. How much time will be allowed for the hearing? 4. Can the person requesting the hearing bring witnesses to make statements on his/her behalf? 5. Can the person requesting the hearing submit written materials instead of attending (or in addition to attending) 6. What happens if the person requesting the hearing does not show up? (Typically, the fine will be imposed) 7. How will the Board issue its decision? {Typically, in writing within a set number of days following the hearing)


: Under both the Condominium and Planned Community Acts, homeowners are entitled to “notice and

an opportunity to be heard” prior to the imposition of a fine. (ORS 100.405(4) (k), ORS 94.630(1)(m)). That doesn’t mean that every owner must have an actual hearing. Instead, it means that, before you can impose a fine, you must give the owner the opportunity to be heard. Homeowners are most often informed of this via a rules violation notice from the Board of Directors or the Community Manager. An owner that does not request a hearing during the applicable response period has waived their opportunity to be heard. You can impose the fine at the expiration of the response period noted in the violation letter. To formalize that, the Board of Directors

rules pertaining to the violation. Both the manager/Board member handling the violation process, and the owner in violation, should have a set amount of time to present evidence, along with time for questions from the Board. As many of you know, rules violation hearings can easily go off the rails. Owners challenging the violation/fines will sometimes veer off course and use the hearing to air grievances about the complaining owner or the Board. In these situations, the Chair needs to bring the conversation back on track; having set time limits is beneficial in these instances. At the conclusion of the evidence or the time limitation the Chair (or manager) ought to propose a motion that encompasses the decision of the Board. The motion should be carefully crafted to reflect the Association’s decision – particularly where there is a reduction or elimination of the fine based on the alleged rules violator’s promise to fix the violation.


need only make a motion that passes in a properly noticed, open meeting. An owner that does request a hearing but does not show up to that hearing also waives their opportunity to be heard. You would follow the same procedure. I would ask the Secretary of the Association or minute-taker to note in the minutes that the homeowner who is receiving the fine did not show up to the rules violation hearing. Then I would again make a motion to impose the fine in that open meeting. When an owner requests a hearing and does show up, the chair should ensure that the violation is clearly stated, along with reference to the

: There are very few statutes and cases we can look to for direct guidance. As with many questions affecting community associations, the starting place is in the governing documents. If the governing documents provide standards for a hearing, you should of course comply. If not, consider a resolution to set forth some basic rules so rules are there when you need them most. Unfortunately, most governing documents are silent on the procedure for holding a rules violation hearing. The touchstone in these circumstances then becomes “due process”, which, broadly defined, means fairness. Assuming the rules the community seeks to enforce have been properly adopted and published and that proper notice of the hearing has been provided to the owner (both prerequisites for due process), the hearing itself should be held according to commonly understood


and fundamental concepts of due process: The owner should hear the evidence against him/her and be provided an opportunity to present evidence in his or her defense. The evidence may include documents, photos/video, written statements, and live testimony among other things. The board can set reasonable time limitations on the length of the hearing and the time provided to present evidence. To comply with due process, the board should ultimately make its decision based on the evidence. We typically recommend that the decision, and the evidence relied on in the decision, be reduced to writing to have a clear record in the event of any later dispute.

of management the association and management company have agreed to). Managers and management companies may vary in their comfort level in agreeing to hold keys or make themselves available to accompany inspections. Unless otherwise set forth in the governing documents, there is no requirement for an inspector to be personally accompanied by another association representative, though condominium and planned community statutes require that the owner be given notice of any

A common question is whether the hearing should be open to the community? We typically recommend that the hearing be open since Oregon community association statutes do not expressly provide that hearings may be closed. If the owner requests a closed meeting or if the hearing concerns obviously sensitive matters, it may be wise to consult with counsel.

present for inspections, there will be additional effort needed to coordinate.


: This answer is going to depend on the particular community. It sounds like this is a PUD where the Association has maintenance responsibility for the fire system and where there are shared walls. If that is the case, then the Association probably is going to have responsibility for coordinating the testing as well,but the Association should ask its lawyer for specific advice on this issue. Even though this is very expensive and difficult to coordinate, the life safety concern outweighs the inconvenience. The costs of coordination should be included within the Association’s future budgets if they are not already included. The Association likely has the power to charge the owners for not showing up for inspections, and should notify the owners about those potential costs and fines in advance. The Association can probably also identify the cost of having a locksmith gain entry and let owners know about that cost in advance to encourage owners to keep their appointments.


:Who is responsible for the interior system inspections? The management, the Board, the owner?


: You will definitely need to refer to your governing document as a lot of this will turn on who has legal maintenance responsibility for the fire systems. If the owner, then yes, you can inspect and also impose fines. If the Association, you can inspect but it’s the Association’s maintenance responsibility so no fines.


: This question raises a number of issues. Fundamentally, responsibility for the various facets of interior system inspections should be set forth in the community’s governing documents and its management contract. In most cases, the community association itself is responsible for interior inspections to the extent set forth in the governing documents. The board and community manager then are typically responsible for seeing to it that the inspections are scheduled and coordinated (depending on the level


inspection requiring entry in units to, among other things, afford the owner the opportunity to be present. If a board and management company elect not to hold keys or otherwise accompany the inspections, the owners may be required to facilitate access to their units. However, an owner should only be “fined” for noncompliance if there is a published, applicable rule. If an owners’ failure to appear results in additional cost, it may be possible for those fees to be borne by the owner. You will need to consult your governing documents. As a practical matter, anytime you require the owners to be personally

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.

Once in a blue moon

Tales of Terror From Community Associations... It’s not every day that two of my favorite topics intersect: Science fiction and HOA law. But here is a story about a sci-fictional time and space travel device and a homeowner’s association. Yes, I am a childhood convert to Dr. Who (a TV show on which the Doctor travels through space and time and solves problems). And frankly, I find it pretty neat that a family built a TARDIS. TARDIS stands for Time And Relative Dimension(s) in Space, and it’s the travel device that allows the Doctor to move through time and space. I mention all of this because the resolution of the situation with the HOA in the article mentioned above would make the Doctor proud. The TARDIS showed up in the owner’s driveway one day. The HOA was clearly not amused and found it was in violation of the CC&R’s. While I’m sure there’s no specific restriction against TARDIS’, there most likely are catch-all provisions that would prohibit parking a big blue box in your driveway.

When the HOA sent a letter to the owners, the owners held a TARDIS moving party, and moved it to the backyard. Now, the reason I think this is great is because the whole thing was resolved with a little humor and some respect. The HOA wrote a letter respectfully asking for the TARDIS to be moved. The owners respected the HOA and the CCR’s enough to understand that it needed to be moved; and everyone won. Whether it’s a TARDIS in the front yard or any other nuisance, depending on your documents, associations may be allowed to ask owners to move it. And owners, remember, you bought into an HOA to preserve property values, and while I love a TARDIS, not all people find that having one in the front yard increases property values.

Ashley Yorra Vial Fotheringham, LLP

Reserve Funding AND the Risk Mitigation Matrix

Reserve Funding and the Risk Mitigation Matrix by Dave Schwindt


eserve studies involve two distinct phases - the physical analysis and the funding analysis. The physical analysis includes, but is not limited to, determining the association’s legal responsibility of repairing, replacing and maintaining association property (components) and identifying components and their condition, cost and useful life. The funding analysis includes preparing a funding model that considers the cost and frequency of repairs/replacements/maintenance procedures. This funding model generally includes provisions for inflation on future expenditures, interest earned on reserves and income taxes.


unding Theory - The theory behind funding is simple: determine how much money the association should set aside in the replacement reserve bank account each year so there is always enough money to pay for needed repair, replacement and maintenance expenses and assess accordingly. Since this funding model is based on numerous assumptions, many association professionals prefer to include a contingency amount in the funding model. Although the theory of funding is relatively simple, the calculation of the required contribution to reserves is complicated by the various methods of funding and the determination of the appropriate contingency. For purposes of this article, contingency is defined as “the amount of cash set aside in the replacement reserve over and above the calculated amount needed to fund l00% of needed expenditures”. In other words, it is extra cash to

fund unbudgeted expenditures or “surprises”.


ommunity Association Institute (CAI) Reserve Specialist and Association of Professional Reserve Analyst standards include three acceptable funding models - baseline, threshold and the fully funded model. (Note that there are other terms that describe these models; for sake of simplicity I am using the above terms).


he baseline method involves preparing a funding model that funds all expected costs over a specified period, in many cases thirty years. Although this model funds the replacement reserve bank account for all expected costs, it does not include a contingency amount should any components cost more than expected. Proponents of this method only want to fund expected costs to maintain, repair and replace common area components. Note that this model is the bare minimum of funding and assumes there will be no surprises. Over a thirty year period, the baseline funding model would show a cash flow projection that funds all expenditures and at some point the cash balance in the replacement fund bank account would drop close to a zero balance and then start building cash for the next major expenditure. The year the cash balance drops close to zero is risky to the association since there is no extra cash to pay for surprises.


he threshold method involves preparing a funding model which funds all expected costs much like the baseline method but also includes a contingency amount for surprises. Reserve study specialists refer to this contingency as the “threshold”. The threshold method would provide an amount that the projected replacement reserve cash balance would not fall below, say $100,000. The $100,000 is called the threshold and provides needed funds to pay for surprises. Proponents of this method

realize that over a thirty year period, unexpected costs may arise and it may be prudent to have extra cash to pay for these surprises. The challenge for reserve study providers is determining the amount of the threshold or extra cash.


he fully funded method uses a formula for computing the threshold. This formula mirrors the method used for computing depreciation. It computes a threshold that in some cases allows funding for twice the amount of expected costs. Knowing that the fully funded method, if 100% funded, provides for a very large threshold, reserve study providers often use a funding target of less than 100%. Please note that the higher the percent funded, the more extra cash is kept in the replacement reserve bank account as a contingency, over and above the amount necessary to pay for all expected repairs and replacements. Proponents of this method realize associations have “surprises� and it is prudent to have as much cash as you can as a contingency to provide for these costs.


isk of Special Assessment - Many reserve study professionals present statistics that show the risk of a special assessment based on the percent funded. For instance, if an association is 50% funded, these statistics indicate there would be an 11.6% chance of a special assessment. The higher the percent funded, the lower the potential of a special assessment. Please be aware that these statistics have been compiled by a reserve

study provider and not vetted by CAI. However, if the contention is that the more extra cash an association has in the bank, the less likely the association will be likely to special assess due to surprises, then the underlying theory appears reasonable.


f our funding goal is to fund for all expected expenditures and to allow funding for surprises, how can we mitigate the risk of surprises thus lowering the contingency amount?


include plumbing and irrigation systems, water/sewer lines, dry rot, windows and doors, deck assemblies, asphalt, major landscaping projects, concrete issues including spalling/ rusted rebar and replacement of siding and trim. Failure to include all components will likely lead to a special assessment to pay for unbudgeted repairs.


hat are some of the surprises that associations experience? The following list includes but is not limited to events that may require additional cash: •

The design, materials or workmanship on original construction is not adequate thus requiring repairs, remediation or this may result in a significant reduction in the estimated useful life of components. A complete building envelope inspection may catch issues early on that may reduce the cost of repairs and may allow the association to bring an action against the developer or contractor. This investigation may include intrusive openings around decks, windows, roofs and siding.

The association does not adequately maintain the components which may lead to unexpected repairs or significantly reduced estimated useful lives. A maintenance plan consistently followed by the association may help components last longer with fewer repairs.

The association does not perform ongoing inspections of components. Ongoing inspections may catch issues before they become worse and cost more to repair.

The reserve study does not include all components that need to be funded. Missing components may


The reserve study is not updated annually to account for increase in prices, changes in cash reserves, application of adjusted inflation in funding model and/or change in estimated useful lives. Failure to update the reserve study on an annual basis may lead to unbudgeted expenditures.

The RFP (request for proposal) for repair and replacement projects is not written correctly resulting in specifications that are either inadequate or do not address issues. Using a construction professional to assist with RFPs can help assure that repair/ replacement projects are performed by qualified professionals and includes all needed costs and procedures.

The association does not use a construction consultant on major projects to assure that work is performed properly. The danger of not using a consultant increases the chance of substandard materials and workmanship and the possibility of requiring re-repairing/replacing the components or

may significantly reduce estimated useful lives.


ince it appears that the threshold and fully funded model expect surprises, should associations that have procedures that address the risk of surprises be governed by the same funding rules as associations that do not?


raph II illustrates the relationship between employing best practices and the probability of surprises.


any reserve study providers recommend a percent funded of at least 70%. The matrix below shows that if associations follow best practices in maintaining common area components, the percent funded could be much lower because the likelihood of a surprise is diminished. Note that this matrix addresses the fully funded percentage but can also be used as a tool to determine the required threshold using the threshold method.


ssociations that adopt best practice procedures and spend a little more each year on maintenance, inspections, reserve study updates and construction oversight can reduce the amount that is assessed to

overfond the replacement reserve bank account to pay for unexpected costs.


s always, associations should look to the credentialed reserve study provider for guidance.

David T. Schwindt is a CPA and credentialed reserve study provider and is the owner of Schwindt & Co. Schwindt & Co provides accounting, tax and reserve study services to over 500 Associations in the Pacific Northwest. Comments should be directed to:

Be Reasonable Christina Morgan & Eric DiGiacmo


he media has covered cases across the United States involving homeowners associations running into conflict and legal problems over wheelchair ramps. The media featured the Broadnax family who retrofitted their house with a wheelchair ramp in an upscale neighborhood in Brentwood, Tennessee. After Mr. Broadnax returned home from rehabilitation following brain surgery, his family received a letter which told them, “The association demands that within 14 days of the date of this letter, you remove the wheelchair ramp and restore the exterior of your home.” Mr. Broadnax’s HOA found itself at the center of a media firestorm and quickly issued an apology. According to the HOA, the Board’s initial intent was to solely inform the homeowners that the ramp required a city permit and architectural committee approval and that they never intended to sue.


imilarly in Aurora, Colorado a few years ago, homeowner Charlotte Vaile rented a wheelchair ramp at her own expense when the elevator to her condominium complex broke down. Her HOA promptly removed the wheelchair ramp, saying they wanted to take time and review her request before she put it up. The fire department quickly restored the wheelchair ramp, but other disabled residents complained that they are still unable to access the second and third floors of the condominiums. The HOA President was asked what would be done for disabled people in a fire and responded, “The fire department will get them out, that’s their job.”


n Raleigh, North Carolina, homeowner Cindy Block installed a wheelchair ramp for her disabled mother after getting approval from her HOA. Not long after Ms. Block’s mother died, the HOA ordered her to remove the wheelchair ramp. Ms. Block, who is legally blind, asked the HOA if she could keep the wheelchair ramp. The

HOA agreed to let the wheelchair ramp remain, but HOA reminded Ms. Block that she would have to remove the ramp if she sold her home to someone without a disability. After years of litigation, the parties finally came to a settlement this spring which terms included a $20,000 payment to Ms. Block and the Board taking sensitivity training and courses in Fair Housing.


here are a few general takeaways from the cases in the media. Federal and state fair housing laws require HOAs to allow disabled homeowners to install wheelchair ramps when it is necessary to access their homes. Who maintains and who can remove the wheelchair ramp will depend if it’s being used by one homeowner on their property or if the wheelchair ramp is being used by multiple residents on common area. HOAs can require that owners submit plans prior to the installation of the wheelchair ramp. HOAs may further require architectural specifications for the wheelchair ramps, but only if it has no additional cost to the owner and still meets their needs. Finally, once an owner does not need the wheelchair anymore, they do not have any responsibility to restore the property to its original condition.


ack Holtzman, co-director of Legal Aid of North Carolina’s Fair Housing Act, commented on the Block case and his quote summarizes the overarching lesson: “Homeowners associations are obligated to follow Fair Housing laws and must grant reasonable accommodations that enable individuals with disabilities to fully use and enjoy their homes.” If you have questions regarding HOAs and Fair Housing laws as these pertain to wheelchair ramps or other modifications, please contact us!

Service Directory Accountants/Accounting Services Ihde CPA 14845 SW Murray Scholls Dr Ste 110 Beaverton, OR 97007-9237 Tel: (503) 475-6478 Schwindt & Co. Certified Public Accountants 3407 SW Corbett Ave Portland, OR 97239-4621 Tel: (503) 227-1165 Williamson & Associates, LLP 4949 Meadows Rd Ste 375 Lake Oswego, OR 97035-3162 Aldrich Eike, P.C. 621 SW Morrison St Ste 1050 Portland, OR 97205-3822 Tel: (503) 226-7045 Bagby Law Firm LLC 10260 SW Greenburg Rd Ste 400 Portland, OR 97223-5515 Tel: (503) 931-2601

Attorneys/Legal Services Ball Janik, LLP 101 SW Main St Ste 1100 Portland, OR 97204-3219 Tel: (503) 228-2525 Dunn Carney Allen Higgens & Tongue LLP 851 SW 6th Ave Ste 1500 Portland, OR 97204-1352 Tel: (503) 417-5373

Attorneys/Legal Services Elasser Law Office 7327 SW Barnes Rd #117 Portland, OR 97225-6119 Tel: (503) 477-9116 Karnopp Petersen et al. 1201 NW Wall St Ste 300 Bend, OR 97701-1957 Tel: (541) 382-3011 Landerholm P.S. 805 Broadway St Ste 1000 Vancouver, WA 98660-3343 Tel: (360) 696-3312 Landye Bennett Blumstein, LLP 1300 SW 5th Ave Ste 3500 Portland, OR 97201-5641 Tel: (503) 224-4100 Office of Gregory W. Byrne 4248 Galewood St #3 Lake Oswego, OR 97035-2405 Tel: (503) 323-9100 Profitt Law PC 10121 SE Sunnyside Rd., Ste 300 Clackamas, OR 97015 Tel: (503) 908-1229 Rafel Law Group, PLLC 600University St Ste 2520 Seattle, WA 98101-3302 Tel: (206) 838-2660 Vial Fotheringham, LLP 17355 SW Boones Ferry Road, Suite A Lake Oswego, OR 97035 Tel: (503) 684-4111

Service Directory Attorneys/Legal Services Stoel Rives, LLP 900 SW 5th Ave, Ste 2600 Portland, OR 97204-1235 Tel: (503) 294-9215 Wyse Kadish LLP 621 SW Morrison St Ste 1300 Portland, OR 97205-3816 Tel: (503) 517-8115

Construction/Maintenance/ Repair Services Charter Construction, Inc. 3747 SE 8th Ave Portland, OR 97202-3701 Tel: (503) 546-2600 GreenPointe Design & Construction, Inc. 16313 Oak Tree Terrace Oregon City, OR 97045 Tel: (503) 756-2404 I & E Construction, Inc. 9550 SE Clackamas Rd Clackamas, OR 97015-9074 Tel: (503) 655-7933 J.R. Johnson, Inc. 9425 N Burrage Ave Portland, OR 97217-6966 Tel: (503) 240-3388 Lifetime Exteriors 6807 NE 79th Ct, Ste A Portland OR 97218 Tel: (503) 719-6644

Construction/Maintenance/ Repair Services Pete Fowler 9320 SW Barbur Blvd Ste 170 Portland, OR 97219-5439 Tel: (503) 246-3744 Sean Gores Construction, Inc. PO Box 1519 Clackamas, OR 97015-1519 Tel: (503) 723-7500 Summit Reconstruction 818 SW 3rd Ave #145 Portland, OR 97204-2405 (503) 403-9270

Concrete Safe Sidewalks, LLC PO Box 22174 Milwalkie, OR 97269-2174 Tel: (971) 275-0885

Building Scientists/ Engineers/Architects Alliance Project Engineers & Construction Consultants 123 NE 3rd Ave Ste 308 Portland, OR 97232-2992 Tel: (503) 810-1585 Energy Trust of Oregon 620 SW 5th Ave, Suite 400 Portland OR 97204-1419 Tel: (503) 243-7377 Forensic Building Consultants 1200 NW Naito Pkwy Ste 100 Portland, OR 97209-2831 Tel: (503) 772-1114

Service Directory Building Scientists/ Engineers/Architects Hays Consulting, LLC 1206 NE 75th Portland, OR 97213 Tel: (503) 757-3286 J2 Building Consultants Inc. 17 SW Gibbs St Portland, OR 97239-4660 Tel: (503) 546-8212 Morrison Hershfield 5100 SW Macadam Ave Ste 500 Portland, OR 97239-3831 Tel: (503) 595-9128 RDH Building Sciences 2101 N 34th St Ste 150 Seattle, WA 98103-9158 Tel: (503) 243-6222

Banks/Lending Institutions Columbia Bank 805 SW Broadway Ste 2700 Portland, OR 97205-3366 Tel: (503) 478-1700 First Citizens Bank 309 SW 6th Ave Ste 100 Portland, OR 97204-1764 Tel: (503) 276-6000+ Northwest Bank 4900 Meadows Road, Suite 410 Lake Oswego, OR 97035-3298 Tel: (503) 906-3955 U.S. Bank Property Management – HOA Division 10800 NE 8th St Ste 1000 Bellevue, WA 98004-4464 Tel: (866) 375-8615

Garage/Gate Metro Overhead Door 2525 NE Columbia Blvd Portland, OR 97211 Tel: (503) 595-4716

Insurance/Risk Management


American Benefits, Inc. 9755 SW Barnes Rd Ste 290 Portland, OR 997225-6609 Tel: (503) 292-1580 American Family Insurance Larry Thompson Agency 15573 Bangy Rd Ste 220 Lake Oswego, OR 97035-3396 Tel: (503) 924-2200 American Family Insurance Michael Jenkins 15630 Boones Ferry Road, Ste 5 Lake Oswego, OR 97035 Tel: (503) 699-2575 Andrew Stearns Agency American Family Insurance 124 NW Franklin Ave Bend, OR 97701 Tel: (541) 312-4444

Service Directory Insurance/Risk Management Fournier Group 510 SW 5th Ave, Suite 701 Portland OR 97204-2140 Tell: (503) 251-2255 Hays Companies 5285 SE Meadows Rd Ste 451 Lake Oswego, OR 97035-3166 Tel: (503) 624-4751 Timothy Cline Insurance Agency, Inc. 121 SW Salmon St. 11th floor PMB #1218 Portland, OR 97204 Tel: (503) 345-8005

Internet/Technology Wave G 2200 6th Ave, Ste 905 Seattle, WA 98121 Tel:(206) 777-6666

Landscpape Services Pacific Landscape Management 21555 NW Amberwood Dr Hillsboro OR 97124-6928 Tel: (503) 648-3900 Showplace Landscape Services PO Box 746 Wilsonville, OR 97070-0746 Tel: (503) 682-6006 Signature Landscape Care 21375 NW Cherry Ln Hillsboro, OR 97124-6691 Tel: (503) 673-0142 Springtime Landscape & Irrigation, Inc. 62990 Plateau Bend, OR 97701-5874 Tel: (541) 389-4794

Landscpape Services

TruGreen LandCare, LLC 22901 NE Sandy Blvd Fairview, OR 97024-9655 Tel: (503) 867-7741

Dennis’ Seven Dees Landscaping 7355 SE Johnson Creek Blvd Portland, OR 97206-9329 Tel: (503) 777-7779

ValleyScapes 150 NE Hogan Dr Gresham, OR 97030-7910 Tel: (503) 492-4736

Landscape East & West, Inc. PO Box 430 Clackamas, OR 97015-0430 Tel: (503) 256-5302

Willamette Landscape Services 18480 SW Pacific Dr Tualatin, OR 97062-8057 Tel: (503) 625-9600 www.willamettelandscape.c

Northwest Landscape Service 19350 SW 89th Ave Ste B Tel: (503) 486-5154

Maintenance-General Finmark Property Services, LLC 8383 NE Sandy Blvd, Suite 208 Portland OR 97220-4948 Tel:(503) 704-8951

Service Directory Management Services & Software

Management Services & Software

Aperion Management Group 20310 Empire Ave Ste A 103 Bend, OR 97701-5723

Community Management, Inc. 2105 SE 9th Ave Portland, OR 97214-4653 Tel: (503) 233-0300

Bluestone & Hockley 9320 SE Barbur Blvd Ste 300 Portland, OR 97219-5405 Tel: (503) 222-3800 BPM Management 1800 SW 1st Ave Ste 180 Portland, OR 97201-5362 Tel: (503) 595-3041 Bridgetown Community Management 7106 SW Terwilliger Blvd Portland, OR 97219-2255 Tel: (971) 258-2826 695 Pylant St NE Unit 231 Atlanta, GA 30306-3728 Tel: (212) 501-7117 Cascadia Management, Inc. 805 SW Industrial Way, Ste 9 Bend, OR 97202 Tel: (541) 617-3863 Commercial Property Management 718 Black Oak Dr Unit A Medford, OR 97504-8580 Tel: (541) 773-6400 Community Association Partners, LLC PO Box 2429 Beaverton, OR 97075-2429 Tel: (5063) 546-3400

Crystal Lake Property Management 204 SE Miller Ave Bend, OR 97702-1304 Tel: (541) 617-7006 Fieldstone Management, LLC PO Box 700 Bend, OR 97709-0700 Tel: (541) 385-7799 HOA Management, Inc. 335 NE Lafayette Ave Bend, OR 97701 Tel: (541) 382-3033 Invest West Management 12503 SE Mill Plain Blvd Ste 260 Vancouver, WA 98684-4008 Tel: (360) 245-5700 Jenna’s Place Condominium PO Box 25469 Portland OR 97298 Tel: (503) 292-4305 Kappes Miller Management 50 SW Pine St Portland, OR 97204-3535 Tel: (503) 296-0428 The Management Trust Northwest PO Box 23099 Tigard OR 97281 Tel: (503) 718-5205 www.

Service Directory Management Services & Software

Management Services & Software

Multi-Services, Inc. 1500 NE Irving St Ste 414 Portland, OR 97232-4208 Tel: (503) 222-7073

Turner Northwest Community Management 10725 SW Barbur Blvd Ste 350 Portland, OR 97219-8681 Tel: (503) 297-1014

RealManage 9601 Amberglen Blvd, Ste 150 Austin, TX 78729 Tel: (512) 219-5696

Woollard Ipsen Management, LLC 132 W Main St Ste 201A Medford, OR 97501-2703

Resort Resources, Inc. 516 SW 13th St Ste 201 Bend, OR 97702-2688 Tel: (541) 639-8094 Spectrum Real Estate Advisors, Inc. 1125 SE Division St Ste 209 Portland, OR 97202-2567 Tel: (503) 235-5743 Sperlonga Data & Analytics PO Box 461987 Aurora, CO 80046 Tel: (303) 720-2610 Sterling Community Management, Inc. PO Box 25469 Portland, OR 97298-0469 Tel: (503) 292-4305 Superior Community Management PO Box 4585 Tualatin, OR 97062 Tel: (503) 684-1832

Metering Services MeterNet 145 E Fig St Ste C Fallbrook, CA 92028-2872 Tel: (800) 985-1179

Painting/Paint Supply Behr Paint and Kilz Primers 11135 SW Novare Place Tigard, OR 97223-3946 Tel: (503) 332-5393 CertaPro Painters, Ltd. 1501 SE 121st Ave Vancouver, WA 98683-6244 Tel: (360) 260-1460 Laurus Management, Inc. dba CertaPro of West Linn 2050 Beavercreek Rd Ste 101-233 Oregon City, OR 97045-4301 Tel: (866) 537-1742 Portland Painting and Restoration 924 SE Stephens St. Portland, OR 97214-4648 Tel: (503) 238-7003

Service Directory Painting/Paint Supply

Reserve Study/Services

Verhaalen Painting, Inc. PO Box 910 Oregon City, OR 97045-0910 Tel: (503) 657-5570

Reserve Studies by Reserve Funding 16869 65th Ave Ste 366 Lake Oswego, OR 97035-7865 Tel: (800) 301-3411

Webfoot Painting Company 20685 Brinson Blvd, Suite 4 Bend, OR 97701-8741 Tel: (541) 420-4140


Reserve Study Group, LLC 701 5th Ave, Ste 4200 Seattle, WA 98104 Tel: (888)316-4587

Reliant Plumbing & Mechanical 11575 SW Pacific Hwy #219 Portland, OR 97223-8671 Tel: (503) 246-1201 LLC PO Box 66778 Portland, OR 97290-6778 Tel: (503) 862-9349

Pest Control

Restoration/Emergency Mitigation Services

Alpha Ecological 1200 NE 112th Ave Vancouver, WA 98684-4953 Tel: (360) 885-4000

Reserve Study/Services Advanced Reserve Solutions, Inc. 392 Fir Ave Ste 101 Reedsport, OR 97467-4400 Tel: (541) 271-1292 BRG Northwest, LLC PO Box 633 Emmett, ID 83617-0633 Tel: (208) 365-0977 Regenesis, Inc. PO Box 19605 Portland, OR 97280-0605 Tel: (503) 977-7974

Alegis Restoration, Inc. 6900 SW Atlanta St Ste B Portland, OR 97223-2514 Tel: (503) 427-6065 Har-Bro West 10898 SW Tualatin Sherwood Rd Tualatin, OR 97062-7575 Tel: (503) 863-0945 LP Building Products 19000 SW Mobile Pl Tualatin, OR 97062 Tel: (503) 807-5141 Kennedy Restoration 315 SE 7th Ave Portland, OR 97214-1233 Tel: (503) 234-0509

Service Directory Restoration/Emergency Mitigation Services From Havoc to Harmony When Disaster Strikes, YOU

Water Damage

Fire Damage

Natural Disaster

24/7 Onsite Emergency Response 503.822.5539

Tree Bartlett Tree Experts 11814 SE Jennifer St Clackamas, OR 97015-9012 Tel: (503) 519-9001 Treecology, Inc. 23506 S Bonney Rd Colton, OR 97017-8524 Tel: (503) 804-7866

Vendor Credentialing Restoration Portland 13565 SW Tualatin Sherwood Rd. Ste 100 Sherwood, OR 97140-9741 RWC Restoration, Inc. 5520 SW Macadam Ave, Suite 200 Portland, OR 97239-3779 Tel: (503) 477-7286 Servepro 547 N 4th Ave Cornelius, OR 97113-9140 Tel: (503) 648-8513

Roofing Carlson Roofing Company, Inc. 550 SW Maple St Hillsboro OR 97123 Tel: (503) 846-1575

Roofing Northwest Quality Roofing, LLC PO Box 2237 Bend, OR 97709-2237 Tel: (541) 647-1060

Net Vendor, LLC 7589 SW Mohawk St, Bldg N Tualatin, OR 97062-9189 Tel:(503) 922-1111


Great Northern Window & Door 20685 Brinson Blvd, Suite 3 Bend OR 97701-8741 Tel: (541) 382-9615

i ask a busy person From the desk of a COMMUNITY manager

Please call me a Community Manager…..Not a Property Manager... A community manager is a professional who deals with the responsibilities of maintaining the quality of life in a homeowner or condominium owner’s association. They execute board decisions and ensure that the owners, as well as the board comply with the governing documents and state laws. A community manager needs to have a good understanding of human resources, contracting, accounting, psychology, insurance, general maintenance and the law. They need to know the limits of their expertise and when it is necessary to advise the board to seek further information from other professionals. A community manager has a fiduciary responsibility to always do what is best for the board and the association. They take responsibility for their actions at all times and are fair, truthful and show respect to the board and homeowners alike. A property manager deals with tenants and rental property and answers not to a board but the individual owner of the rental unit or a group of investors. The majority of time these owners have purchased the property as a source of income and thus are “monetarily” involved with the property not emotionally. In Oregon one must be a licensed property manager or work for a licensed property management company, and follow State


laws pertaining to property management and real estate. One does not need a license in order to manage Community Associations. The Board and manager need to be on the same page in order to function successfully. This means providing clear and concise communication. A good manager answers and returns phone calls and emails promptly. They make use of all sources of communication available such as newsletters, websites and notices to enhance open communication within their communities. They are relationship builders, working daily to maintain and build relationships with workers, vendors, board members, owners and other association professionals. They stay in tune with what is happening with their boards and communities. This enables them to change and adapt in order to meet the constantly changing needs of an association. A good community manager needs to make full use of time management and other organizational skills to stay ahead of the game. When an association is looking for a manager, they should look for a management company that employs managers with one of the three nationally recognized certifications offered by the Community Association Institute. CMCACertified Manager of Community Associations, AMS- Association Manager Specialist and PCAMProfessional Community Association Manager.

How many years have you been a manager? Seventeen years. I started in the property management field in 1999, moving into management of community associations in 2001. I realized early on the importance that education plays in making a good manager, first going to real estate school to get my property managers license and then becoming involved with CAI, attending luncheons, taking classes whenever they were offered and finally becoming a CMCA. The field of Community Management is constantly changing and in order to stay current, a manager must keep educating themselves. What does a manager need from a Board? Board members should respect our time. They should be prepared for their board meetings, start the meetings on time and follow the agenda. If there are questions that need to be dealt with, provide them to managers ahead of time so that we can research the information and be prepared with an answer. The Board should remember they represent their entire community, and that all rules should be enforced equally. Encourage a positive exchange of ideas and opinions. Be a diplomat; seek to find the common ground. Minimize risk and plan for the future. Establish clear guidelines of who the manager’s point of contact is. Read and understand the management contract so that you know what the scope and services are to be provided and what services may require an additional charge. Provide strong leadership to the manager and to the membership. Why are you a community manager? I enjoy people. I am never bored. Each day is totally different from the day before. I get the opportunity to use multiple skills, skills that will help me in my life not matter where I may go or what I end up doing. I think being a community manager is one of the hardest but most rewarding jobs anyone can ever have. Each day is a new and different venture and there times when things can happen that you totally would never imagine or could even have planned for! For example, how often is a cat going to turn on the water in a 4th floor high rise sink and then also close the plug? (Causing water to run down to the 1st floor) These are just a few of the things that can happen in the day to day life of a community manager. Do you have suggestions for dealing with the day to day stress that comes from being a manager? Try to find balance in your life, get exercise and plenty of rest, set priorities, keep focused, don’t

be afraid to ask for help, and focus on one task at a time. Stay cool even when you feel like crying. Strive to be the best, know that since you wear many hats with this job, there are some that will fit better than others. Above all find the humor in the difficult issue. Why do you support CAI? I think that everyone involved with community associations, from managers to vendors to board members should become a member. Where else are you going to get information on trends in the association industry? A place that provides a resource for educating yourself on day to day and long term issues that associations face? A network of colleagues that can help you resolve issues being faced in your community? Above all a chance to discuss problems with others who have to face the same issues.

A Little More About Julie... I was born and raised in Corvallis, Oregon, graduating from Oregon State with a degree in Speech. I come from a huge Beaver believer family. Between aunts, uncles, brothers and sisters, children, son-in laws and other relatives there are at least 15 Beaver Believers in my immediate family. Orange and Black looks good on us! I married Ted Balestreri (who many of you know due to his attendance at CAI social functions) in 1993. Together we have four daughters, three granddaughters and two grandsons, and love being PaPa and Grammy. After a successful career in sales, I decided I wanted to slow down (Ha!) and took a parttime job with a property management firm that specialized in single family homes. After becoming a licensed property manager, I took a position with a company that also did association management, and found that I had a knack for working with owners and boards and for helping solve all the many day to day issues that come with life in a community association. I received my CMCA in 2011, and have successfully managed everything from an eight unit condo association to high rises in the Pearl, from a 35 lot HOA to large mixed used communities. I have been active in CAI-OR since day one of my career as a community manager. I actually went to a CAI dinner on the first day of my first job with a community management company!

Community Association Volunteer Leader Spotlight The volunteers that serve on community association boards are amazing people. Join us in celebrating their stories! and business, including her new husband, Tom Nestell.

Kathy Peck-Nestell joined the Board of Directors for the Lakewood Loft & Condominium Association in Lake Oswego’s First Edition neighborhood within a few years of buying her first condominium. Shortly after she became a new condominium owner, the HOA filed a construction defect lawsuit. Kathy, an attorney by profession, was asked to join the Board of the HOA as a fifth member and agreed to serve. Soon later, she was elected President. After an extended period of litigation, a settlement was obtained and the repair phase began. Kathy and the other Board members guided the homeowners through completion of the repairs, including moveouts and extensive internal and external repairs. Once completed, Kathy resigned from the Board to focus on her family

Kathy’s hiatus from HOA service was, however, short-lived. In September 2010, she agreed to return to the Board. At that time, she intended to focus on beautification of HOA property, fostering volunteerism to keep monthly dues low and building reserves. Again, Kathy agreed to assume the role of President of the HOA. Her plan to serve the HOA by performing duties of routine nature changed abruptly when concerns arose regarding the repairs completed following the settlement in the first defect litigation. A second lawsuit was filed and yet another legal battle unfolded. Again, Kathy undertook efforts to guide the homeowners through this painful experience to a resolution. Gores Construction, Inc. was hired to complete the necessary repairs. With those repairs successfully completed, Kathy looks forward to serving the Board in the capacity

that she intended when she returned to the Board in September 2010. Kathy is the managing partner in the law firm of Peck, Rubanoff & Hatfield. Her firm limits its practice to the representation of employers in labor and employment matters, including union negotiations, ULPs, arbitrations, policy writing, training and related matters. Kathy’s philosophy is to be a business asset to clients by providing well-founded, strategic and prompt legal advice. She strives to provide the same level of responsiveness when serving the HOA. As with business matters, Kathy believes that progress to attain a particular goal requires building a consensus founded on trust and respect. She looks forward to sharing what she has learned with the other members of CIA Oregon. When Kathy is not busy working or serving as a HOA volunteer, she enjoys time with her husband Tom and their merged family of seven children and their spouses and 10 grandchildren. She is an avid water enthusiast and has travelled extensively.

Association Spotlight Riverpark Condos is a 48 unit association located on the

bank of the Willamette River, just North of the Sellwood Bridge. Our condominium is comprised of 39 units in a 4-story tower and 9 townhouses located along the bank of the high bank of the Willamette river. 2015 has been a very eventful year starting in January when their community manager moved out of the area. Karina Haley of CMU was assigned to be the new manager. Issues that this Board was faced with resolving were: Tower Deck Project - A depression on a 4th floor exterior deck was reported and was investigated. A project that involved significant rebuilding of the 4th , 3rd and 2nd floor decks was identified. The repairs were designed by the Association’s consulting engineer, bids sought and an “easy repair” turned into a large scale, expensive, months-long project. Impact on Budget Due to Unexpected Expenses - The off-schedule tower deck repairs, the ongoing odor issues with the patios on 2 townhomes, the townhome attic organic matter investigation and gutter flashing repairs, resulted in a significant amount of money spent from the Reserve Funds that were unplanned but urgent. The Board hired a new consultant to update a building condition assessment and to prepare a comprehensive reserve study and maintenance plan. The Board has worked closely with its consultant to set 2016 goals that include reducing the amount spent on third party consultants, and increasing the 2016 reserve contribution 6.3% per year for the next several years. The Building Condition Assessment included an evaluation of the health of the building and a revised five year plan for maintenance. This included a revised maintenance agreement for aging heating and air conditioning systems and enhanced supervision by a newly hired Building Maintenance Coordinator. In the coming year the Building Maintenance Coordinator will be reviewing and updating all existing service contracts for building systems as well as supervising and implementing the maintenance plan as designed by the

consultant. Another 2016 goal is to proceed with the replacement of the CPVC water shutoff valves with valves of stainless steel or copper. Owners will be given the option of installing in unit shutoff valves as a part of this project so that future repairs will not require the shutting down of an entire stack of units. Welcoming New Residents & Redecorating the Community Room The Association has an active Stewardship Committee. This group is finalizing an Orientation Packet (aka Welcome Packet) and its implementation will include hiring a move-in coordinator to conduct a thorough walk thru of the building when a new resident comes to Riverpark. The Association has a beautiful Community Room on the 1st floor of the tower. It was spruced up and refurnished and redecorated though the talent and toil of a very hard-working committee. New reservation guidelines have been implemented, which have made the reservation and cleaning process more streamlined and easier to monitor by the Community Room Committee and the community manager. Security Enhancements – The condominium is located in an urban area, just north of a major bridge. While the townhouses are self-contained, the tower units are accessed though secured doors and a garage gate. There have been issues with people trying to break into the garage and the secured common area doors. The Board and several active volunteers have addressed these security concerns and replaced one security camera and adjusted others. The common garage gate below the tower units had one of its “arms” replaced, expanded metal mesh welded to the door frame and was modified to reduce tampering opportunities of wouldbe thieves. The security vendor worked

with the committee members to design and install a unique side panel that should thwart reaching an arm around the side of the gate to interfere with the electronic eye or prying the gate open. We are cautiously optimistic that the 2015 modifications have successfully reduced break-ins. THE BRIDGE – Did we mention that while all of this was going on, Multnomah County continued to build a new bridge? Riverpark has always been close to the bridge, but the reconstruction plans involved temporarily moving the bridge to the north (closer to Riverpark) and it has literally been looming over our building. Riverpark hosts a regular monthly (was weekly) “bridge meetings” that our residents and neighbors from Sellwood Harbor attend with representatives from Multnomah County and the bridge contractor to receive updates and to listen to complaints about traffic and construction noise, and dust! A recent issue has been an onslaught of ants that emerged in droves as the bridge project disturbs the land adjacent to our building. We even “lost” one of our townhouse units (through condemnation), and the County owns a second unit while work is underway. Riverpark residents have been exceptionally patient but they’re really looking forward to seeing this project finally come to fruition.


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Community Bulletin: January 2016  

The January 2016 of CAI Oregon's quarterly publication.

Community Bulletin: January 2016  

The January 2016 of CAI Oregon's quarterly publication.