Vision Magazine Winter 2021

WI N T E R 2 0 2 1 THE VOICE OF THE CALIFORNIA COMMUNITY MANAGEMENT INDUSTRY

Back In Person DETAILS ON PAGE 18

22

INDUSTRY EXPANSION

You Won’t Believe How Much HOAs Have Grown (2021)

26

LEGAL MATTERS

Gov. Newsom Signs New Laws Affecting HOAs

50

SNIPING THE UNEXPECTED Fighting Scope Creep

Vision Winter 2021 • Vol. 30, no. 4

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President & CEO | Thomas Freeley

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Chief Editor | Lynette Bertrand lbertrand@cacm.org | 949.916.2226, ext. 323

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THE VOICE OF THE CALIFORNIA COMMUNITY MANAGEMENT INDUSTRY

Todd Greisen, CCAM Contra Loma Estates

Dean Jackson, CCAM-HR Collins Management, ACMC

Andrew Hay, CCAM-ND.PM The Helsing Group, Inc., ACMC

Frank Jauregui, CCAM The Management Trust Southern California, ACMC

Scott Swinton Unlimited Property Services, Inc. Hamlet Vazquez, MCAM-HR Action Property Management, Inc., ACMC

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Rob Buffington East West Building Works Jessica Melvin, CCAM The Management Trust Northern California, ACMC

SUPPORT@ASN4HOA.COM

Vision Magazine is released digitally by CACM four times annually to members, industry partners and supporters of the California Association of Community Managers.

Magazine content copyrighted 2021. All rights reserved. No part of this publication may be reproduced without written permission from CACM. Opinions expressed by authors do not necessarily reflect the policies of CACM. Mention of any product or service does not constitute an endorsement by CACM. CACM assumes no responsibility for return of photos or art and reserved the right to reject any editorial or advertising materials. CACM does not assume responsibility for the accuracy of articles, events or announcements listed.

Please address comments and suggestions to: California Association of Community Managers, Inc. 23461 South Pointe Drive, Ste. 200, Laguna Hills, CA 92653 949. 91 6 . 2226 | communications@cacm.org

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Vision Winter 2021 | cacm.org

in this issue WI N T E R

2021

OF THE VOICE NIA THE CALIFOR COMMU NITY MENT MANAGE Y INDUSTR

on the cover Back In Person

PAGE 18 DETAILS ON

22

INDUS TRY EXPAN SION

How Much You Won’t Believe (2021) HOAs Have Grown

26

LEGAL MATT ERS

Signs New Gov. Newsom HOAs Laws Affecting

50

We’re back in person next year for our annual Law Seminars and to celebrate CACM’s 30th Anniversary.

SNIPIN G THED UNEX PECTE Fighting Scope Creep

features 18

EDUCATION SPOTLIGHT: LAW SEMINAR 2022 SESSIONS YOU WOULDN’T WANT TO MISS!

21

NEW CAMEX: JEREMY WILSON, PROUD TO BE A CACM MEMBER

22

54

news bits 36 6

Members in the News

YOU WON’T BELIEVE HOW MUCH HOAS HAVE GROWN (2021)

By Ryan Kwon, Communications Manager, CACM

30

IN THE BOARD ROOM: VOLUNTEERS WANTED

By Frank Jauregui, CCAM

34

YEAR-END REVIEW

By Jessica L. Melvin, CCAM

36

DIVERSIFY YOUR SKILLSET

By Andrew Hay, CAMEx, CCAM-ND.PM

38

HOME IS WHERE DIVERSITY CAN THRIVE

By Todd Greisen, CCAM

40

SUPPLY & DEMAND, LOSSES DRIVE RISE IN INSURANCE

By Hamlet Vazquez, MCAM-HR

42

4 SKILLS THAT HELP MOVE OUR INDUSTRY FORWARD

By Scott Ford

14

You Said It

24

Congratulations Managers

26

California Legislative Update

28

New Industry Partner Members

32

New Individual Manager and Management Company Members

44

WHAT IS YOUR CORE COMPETENCY?

By Scott Swinton

59

Thank You Sponsors

46

DIVERSIFYING THROUGH PROJECT MANAGEMENT

By Dean Jackson, CCAM-HR

48

ENVIRO VIEWS TAKES THE NOISE OUT OF LANDSCAPING

By Ryan Kwon, Communications Manager, CACM

50

FIGHTING SCOPE CREEP

By Lynette Bertrand, Director of Marketing & Communications, CACM

52

ORANGE COUNTY GOLF RECAP

54

HIGH RISE & LARGE SCALE SUMMIT RECAP

departments 5

President’s Message

16

From the Roundtable

58

Course Calendar

52

cacm.org | Vision Winter 2021

3

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Vision Winter 2021 | cacm.org

Directors & Officers Liability Business Office Insurance Workers’ Compensation Third Party Discrimination

president’s message T

his edition’s operative word is “value,” because diversity is truly valuable. Hmm…that word can be taken in so many ways, yet every way is a positive.

As managers and industry partners, we add value to our clients through the services we provide them and each other.

Industry partners add value to a manager day-in and day-out. Managers add value to your clients every day along with many nights and weekends as well. Employers add value to your teams through the tools, technology, training support, mentorship through challenges, and benefits you provide and offer them.

I want to help you provide your teams with some additional value. We can bring value to your team through in-house education. Our events add value by allowing your team to network with industry colleagues and each other. Our partnership with Cal State Fullerton will add value by increasing the potential talent pool of candidates who will already be educated in our industry.

But to quote a popular play, “I’m not satisfied” and “not throwing away my shot” to find ways to add value to you. So I’m super excited to announce that the CACM Board of Directors has approved my plan to offer our members access to a 401K retirement plan.

This plan, available in the coming weeks, will allow any CACM company member, whether you’re a management or industry partner company or work in leadership at a self-managed association, access to a 401K plan known as a Multiple Employer Aggregate Plan (MEAP).

Say “what?” Yes, it’s confusing, but a huge benefit to those companies that either don’t want to administer their own plan or don’t offer a plan because of the administrative and fiduciary responsibilities or costs. Please be on the lookout for additional information or feel free to email me directly for more information as the plan rolls out.

Law Seminars We are back to in-person Law Seminars. We’ll also be celebrating Vision Award recipients on the Friday morning of our Law Seminars. It’s also our BIRTHDAY. CACM celebrated 30 years this past September, and we’ll be celebrating in style at our Law Seminars. Registration is open, so do it early to save money.

Lastly, I have a question. What else can CACM do to add value to you or your company? Have an idea? Please share it. We are here for one reason, you.

Until I see you again, please stay healthy and have a wonderful holiday season!

Wow, is it really that time of year already?!

Thomas Freeley, CAMEx, CCAM, President & CEO

cacm.org | Vision Winter 2021

5

members in the news Hughes Gill Cochrane Tinetti Adds Attorneys to Team Hughes Gill Cochrane Tinetti has hired attorneys Zer Iyer, Esq., and Peter C. Lyon, Esq. Iyer has represented HOAs and other common interest developments for over 16 years. She will continue to assist her clients as the Principal of the firm and fulfill their corporate needs with her legal expertise. Lyon has over 25 years of experience in litigation and arbitration along with 7 years of environmental engineering and consulting. He is versatile in dealing with complex and technical issues like construction defect litigation, real estate matters, environmental issues, and insurance claims.

Isaiah Henry

Seabreeze Management Company Expands Through Acquisitions Seabreeze Management Company, Inc. has acquired Apex Management Group and Fidelity Management Services.

Isaiah Henry, CEO of Seabreeze, will assume the role of CEO at Apex. Apex will operate under Seabreeze but will remain independent in name. Through these acquisitions, Seabreeze now consists of more than 500 team members, serving over 500 associations and 100,000 homes. Seabreeze is a full-service property management firm based in Aliso Viejo and has been in the industry for over 34 years.

Zer Iyer

Peter C. Lyon

California Builder Services Launches New Website California Builder Services has launched DREPublicReports.com, providing public access to nearly 600,000 Department of Real Estate subdivision, development, and completed development public reports in California, archived over the past few decades. “We saw a need for this service in our industry as the current state site with this information can be difficult to navigate and cumbersome,” said Scott Ford, President of California Builder Services. “By creating a free resource we manage, we know the site will continue to stay maintained and serve everyone who needs access to this information. Our business lives and breathes DRE reports and HOA assessments, so it was only fitting to launch this site.” The site offers multiple search options, such as file number, report number, tract number, county name, issued date, and subdivision name, for users to obtain reports. Users are also able to print these reports or download/export them as an Excel or CSV file. Through a California Public Records Act (CPRA) request, California Builder Services accessed public records needed for its development team to compile, creating DREPublicReports.com. California Builder Services will be updating and monitoring its database while archiving and maintaining current records.

“It’s crucial for those of us managing HOAs in California to keep an eye on public reports for our communities,” said Pamela Ciapessoni, Executive Vice President and Co-owner of Riverside Management. “The records on DREPublicReports.com help us ensure the public reports that show the HOA dues for phasing schedules are properly filed with California—it’s required in our state.”

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Vision Winter 2021 | cacm.org

members in the news Vantaca LLC Promotes Five Congratulations to several employees at Vantaca LLC on their recent promotions, including: Alyssa Herlocker Alyssa Herlocker

to Data Migration Lead,

Aidian Morrow

Aidian Morrow and Stuart Wilson to Implementation Managers, and Anna Driscoll and Grayson Hollar to Senior Implementation Consultants. Awesome work, everyone!

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cacm.org | Vision Winter 2021

7

members in the news Associa Northern California Promotes Doreen Tejeda

Associa Northern California recently promoted Doreen Tejeda to Senior Vice President. Tejeda has been with Associa Northern California since 2001 and is transitioning from the role as Vice President of Integrated Services to Senior Vice President. In this role, she will oversee the San Francisco and Pleasanton offices, the Associa On Call department, project services, and the reserve departments. “Since

Doreen Tejeda

CM Squared Acquires Myles F. Corcoran Consulting

CM Squared, Inc. has acquired Myles

she joined Associa, Doreen has demonstrated a

F. Corcoran Consulting, Inc. (MFC).

passion for educating and helping team members

With this acquisition, CM Squared

advance, a leadership quality that has truly helped

retains the talent of MFC employees

our branch succeed,” said Scott Hubbard, Associa

and creates a seamless transition,

Northern California Branch President. “Her approach

enabling itself to continue its high

to management and ability to drive our team forward

standard of service to the clients that

is an asset that we rely on daily. We look forward to

MFC nurtured and fostered throughout

watching her grow in this new role.”

the years. The organizations’ new structure “is expanding and adding new technology that will continue

Powerstone Announces Executive Promotions

to add value to the full service of

Powerstone Property Management, ACMC recently promoted Kendrah Kay to Chief Client

opportunities while, maintaining the

Officer, Karen Kannen to Executive Vice President of Management Systems and Kristin

client centric integrity both MFC and

Hobson to Vice President of Community Management. Powerstone’s CEO, René Decker,

CM Squared are known for in the

stated, “Kendrah’s compassion and ability to listen to the needs of others, in combination

construction industry,” said Myles

with her dedication and diligence, have resulted in her steady rise in the company, all while

Corcoran, the former owner of MFC.

increasing her level of responsibility and playing a critical role in Powerstone’s success.”

CM Squared has been assisting clients

Kay will continue to work with the company’s executive team to promote growth and

navigate construction projects and

career path opportunities for employees. Meanwhile, in her new role Kannen will develop

providing architectural design services,

innovative new systems and programs to better serve Powerstone’s expanding markets.

forensic investigations, building

She will also continue in her role as General Counsel. Hobson has worked for Powerstone for

assessments, reserve studies, asset

five years and amassed devoted and loyal clients during that time while delivering creative

management studies, engineering,

solution for difficult client issues. Congratulations to everyone!

and construction oversite of multifamily development communities for the last decade. Myles and the MFC team provide design, litigation support, forensic estimating and investigations, mediation, arbitration, and destructive testing analysis. In addition, they offer custom services to meet the individual needs of their clients for 31 years.

Both companies provide construction management, architecture design, expert witness, and consulting services and operate primarily out of California’s Central Coast, with a home office in

Kendrah Kay

8

Vision Winter 2021 | cacm.org

Karen Kannen

Kristin Hobson

Santa Cruz.

members in the news efforts via video conferencing during the Covid pandemic, our firm was able to resolve this case in less than 1 year. The settlement payout from TIG Insurance

The Miller Law Firm Wins Construction Defect Case

The Miller Law Firm recently recovered $140,000 per unit for the Oceanside HOA 10 months after filing a complaint for construction defects, which included window frame distortion, major water intrusion at window locations, corrosion of doorframes, elevated deck waterproofing issues, cracked tiles at private decks, and reverse sloping at private decks. All of this resulted in interior unit flooding, water intrusion at various locations of the building, corrosion, rusting and staining, and excessive cracking. “By focusing on expert investigations and early mediation

Company will be used to restore this beachfront property to the luxury units that the Oceanside owners believed they were buying,” said the Founding Partner and CEO, Thomas E. Miller. “Boutique, luxury condo buildings are not immune to shoddy

Thomas E. Miller

workmanship and construction defects.

Had these beachfront owners and its association board of directors not held the builder and its insurance responsible, they would have faced hundreds of thousands of dollars in special assessments or the use of HOA reserve funds for significant repair needs. They now have the funds to restore their community and preserve their owners’ investments,” said Senior Partner, Rachel

Rachel Miller

M. Miller.

cacm.org | Vision Winter 2021

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members in the news Pacific Western Bank Acquires HOA Services Division From MUFG Union Bank, N.A. PacWest Bancorp announced that its banking subsidiary, Pacific Western Bank has acquired MUFG Union Bank, N.A.’s HOA Services Division. This acquisition expands Pacific Western Bank’s existing HOA banking practice, which provides lockbox, electronic receivables processing and other financial services to HOA management companies. The HOA Services Division provides a full range of banking services to community

Pejman D. Kharrazian

Epsten, APC Names New Shareholder Effective October 1, 2021, Epsten, APC announces Pejman D. Kharrazian as the firm’s newest shareholder. “We are happy to promote from within our firm, and Pejman’s dedication to our clients, hard work, and proven leadership have

management companies and their HOAs. “We are very pleased

Matt Wagner

to complete this acquisition, which significantly enhances our position catering to the specialized banking needs of community management companies and the HOA clients they serve,” said Matt Wagner, PacWest’s President and CEO. “The HOA business unit’s high-quality, low-cost deposits will further diversify the bank’s existing core deposits and provide an additional attractive funding source in a rising rate environment.” PacWest Bancorp is a bank holding company with over $34 billion in assets and provides community banking products including lending and comprehensive deposit and treasury management services to small and medium-sized businesses. It has 69 full-service branches located in California.

earned him the position of shareholder,”

S.B.S. Hires New Client Relationship Manager

said Susan Hawks McClintic, Managing Shareholder. “We look forward to Pejman’s continued service to our

Bringing many years of experience from the default services

clients.” Kharrazian joined the firm in

industry, Hank Lopez will act as a Client Relationship Manager

2012 and has established and

for both S.B.S Trust Deed Network and S.B.S. Lien Services. In

maintained numerous key relationships

this role, Lopez will be responsible for maintaining current client

with clients and community association

relationships as well as introducing prospects to a dedicated and

managers. He frequently provides

focused team of industry professionals at the S.B.S. family of

educational programs for community

companies. Lopez began his career in the default management

association board members and

industry working as the Bankruptcy Manager for Countrywide

managers, maintains active

Home Loans. He also has had the unique experience of being

membership in CACM, and has served

both a client and a vendor. As a vendor, he has experience in the

as an adjunct law professor at Thomas

foreclosure publication and posting arena, marketing manager

Jefferson School of Law. Hank Lopez

for bankruptcy, and foreclosure legal services and author of default training materials.

CINC Systems Acquires HOAst

CINC Systems has completed the acquisition of HOAst, Inc., merging software and e-voting platforms for HOAs. “Our partnership with HOAst transforms the e-voting space, because we take the headache away from homeowners and boards, and we give them the ability to achieve quorum in a manner that is safe, fast, and efficient,” says Ryan Davis, CEO of CINC Systems. CINC Systems serves more than 17,000 HOAs and 2 million homes. CINC Systems was founded in 2005 as an Internet-based integrated accounting and property management system. “It’s a new and exciting time for HOAst,” said Elieen McCrady, President of HOAst. “Our deal with CINC enables us to provide our solution to more boards across the U.S., ensuring that more homeowners are able to have their voice heard within their community.” As part of CINC Systems, HOAst will be Ryan Davis

10

positioned to accelerate and extend its mission of providing a safe and secure online voting solution.

Vision Winter 2021 | cacm.org

members in the news Homeowners Management Company Sold, Joe Price now SVP at Powerstone

Joe Price

Tasha Parmelee

Homeowners Management Company (HMC)

CCAM, is the President of Next Step Community

announced in late October the departure of Joseph

Management and has more than 16 years of community

Price, CAMEx, CCAM, President of HMC. Price presided

association management experience in a variety of

over the recent acquisition of Homeowners

property types, including residential, condominium, and

Management Company by Next Step Community

commercial. “I am honored for having such a

Management, effective Nov. 1. Price subsequently joined

distinguished business partner such as Joe Price,” said

Powerstone Property Management, ACMC, as the

Parmelee. “He has been a great mentor and friend and

Senior Vice President. He previously held multiple

I’m thankful for this amazing opportunity. Having such a

executive level positions at some of the largest property

great team with astounding experience and talent will

management companies in the country and is very

make this endeavor most exciting!” René Decker, CEO of

involved in the industry serving as the Vice Chair on the

Powerstone, said, “Anybody that knows what success

board of directors for CACM and as a speaker and

looks like in our industry, knows Joe Price, and we’re

educator at many industry events. “I have a unique

excited that he will join our leadership team as we

opportunity to focus on my true passion for mentoring,

continue to expand by finding new and innovative ways

education, and acquisitions within our industry as well

to serve our clients. I’ve known Joe for quite some time

as focusing on my work with CACM’s board of directors

and I know he will be a perfect fit for our winning

in Southern California – yes, relocation, too. It is also

culture. We are at a stage in our growth where someone

important that we thank all the team members at HMC

with Joe’s years of experience and professionalism can

and Next Step for everything that they have done to aid

bring the business acumen and positive perspective

in the acquisition process,” Price said. Tasha Parmelee,

that will help take our company to the next level.”

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Member FDIC cacm.org | Vision Winter 2021

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members in the news Antis Roofing Celebrates 500,000 Nails

Antis Roofing and partner Eagle Roofing Products drove their 500,000th nail into donated roofing in October at their Habitat Team Build event, establishing their longterm commitment to Habitat for Humanity in Southern California and translating into more than 90 donated roofs distributed in numerous Southern California neighborhoods. “The work continues,” says Charles Antis, Founder and CEO of Antis Roofing & Waterproofing. “But we had to pause and commemorate this huge milestone.

We’ve donated these roofs so that families can attain a better quality of life.” The Habitat Team Build included Charles Antis, Aaron Antis, Cori Vernam, Angel Beltran, Travis Pettit, Narciso Alarcon, Jesus Zermeno, Jovan

a fully licensed, bonded and insured provider of roofing, waterproofing and

Pardo, and Antis roofing technicians, Eagle Roofing

decking services for homeowner’s associations and multi-family residential

Products’ Greg Morrow, Blake Williams, and Travis Rozas.

communities that operates in operates in Orange, San Diego, Los Angeles,

Founded in 1989, Antis Roofing and Waterproofing is

Riverside and San Bernardino Counties.

Don’t see your news listed? Update us at communications@cacm.org

12

Vision Winter 2021 | cacm.org

LET ’ S CELEBRATE!

Holiday Parties CACM is delighted to bring holiday parties to multiple locations

throughout California. Let’s celebrate the successes of 2021 together!

From music and dancing to connecting with other professionals, these are celebrations you don’t want to miss.

Thank You Sponsors NORCAL HOLIDAY PARTY SPONSORS PREMIER SPONSOR FIRST ONSITE Property Restoration BAR SPONSORS AWT Construction Group, Inc. BluSky Restoration Contractors IQV Construction & Roofing ENTERTAINMENT SPONSOR CM Squared, Inc. DESSERT SPONSORS AWT Construction Group, Inc. Frank Bonetti Plumbing, Inc. Statcomm, Inc.

We have teamed up with Ronald McDonald House Charities this year. Members can donate any amount directly to a local house in their community to help fund crucial programs which provide lodging, meals, economic relief, toys and other resources to families and critically ill children in medical crisis.

Learn more at CACM.org.

Northern California

DECEMBER 7, 2021 5:00 PM TO 7:00 PM Claremont Club & Spa A Fairmont Hotel 41 Tunnel Road Berkeley, CA 94705

NETWORKING SPONSORS Arborwell Avelar Citadel Roofing and Solar GB Group Construction and Painting Giuliani Construction & Restoration, Inc.

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LA HOLIDAY PARTY SPONSORS NETWORKING SPONSORS Bergeman Group Precision Painting and Reconstruction

Richardson l Ober l DeNichilo LLPcom Roseman Law, APC

SOCAL HOLIDAY PARTY SPONSORS PREMIER SPONSOR Antis Roofing & Waterproofing BAR SPONSORS 20th Century Motor & Mechanical ADCO South Roofing & Waterproofing SafePark Playground Services Sherwin Williams ENTERTAINMENT SPONSOR CM Squared, Inc. NETWORKING SPONSORS Community Legal Advisors, Inc Fiore, Racobs & Powers A PLC Payne Pest Managment Precision Painting & Reconstruction

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cacm.org | Vision Winter 2021

13

you said it!

FALL VISION MAGAZINE FEEDBACK I loved the latest issue of the magazine. Personable, great editorials from our peers, news updates and Jennifer Wada!

— Caroline McCormick, CAMEx, CCAM, OMNI Community Management, LLC

Thank you for highlighting such an amazing woman, career and mentor! Love the advice and candid honest answers- true leadership! I am inspired!

— Jacqueline DiMaio, Senior Core Account Sales Representative at AvidXchange, Inc. I love this woman!

— Christine Greengrass, General Manager at Seabreeze Management Company, Inc.

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Vision Winter 2021 | cacm.org

Officially certified! Thanks Powerstone Property Management for helping me succeed! #CCAM #CACM — Paige Sofka, CCAM, Community Manager at Powerstone Property Management

High Rise and Large Scale Summit

Thank you for a great event! Such fun photos!

— Lisa McCollough, Regional Account Manager, FIRST ONSITE

I wanted to take the opportunity to thank Tom Freeley, Melissa Hurtado, Debbie Griffiths, Lynne Robinson Freeley and all the other CACM staff for putting on such a wonderful High Rise and Large Scale Summit. The venue was spectacular, the education ever on point and relevant, and the camaraderie amongst our colleagues and business partners stronger than ever.

Congratulations and we all look forward to next year! #CACMStrong #cacmhighrisesummit2021 #fairmontsonoma — Robert L. Smith, CCAM-HR

VISION AWARDS We are so excited to announce that our own Jamie Kim and Melinda Young have been nominated for the 2021 Vision Award by the California Association of Community Managers. The Vision Awards are the highest distinction bestowed upon California community managers and showcase those who exemplify the very best in the profession. Melinda has been nominated for an Educational Excellence Award and Jamie has been nominated for a Leadership Award. As true professionals, we are proud to recognize Melinda and Jaime in their respective roles. #waltersfamily #2021visionawards #cacm — Walters Management

you said it!

Fall Forums

CACM GOLF TOURNAMENT San Diego Shea Kelly was a rockstar! Thank you #CACM for an epic event! Rain or shine we know how to have fun.

— Amanda Porter, Business Development Director at All County Environmental and Restoration

Orange County

Team Powerstone’s very own, Monica Alvarado, served on the panel at the CACM Coachella Valley Fall Regional

Thank you @CACMchat for an amazing event! We had such a great time sponsoring Hole 2, and seeing so many old friends on the course!

— S.B.S. Lien Services

Forum to present and discuss on the topic of Solutions on Managing Difficult Personalities to over 50 attendees. Monica and her colleagues discussed handling matters professionally amongst Boards and homeowners, homeowner and board

Super fun event! Thank you #CACM #goblusky — David Carino, Business Development Manager, BluSky Restoration Contractors

member code of conduct, methods of education for Board members (I.e., educational boot camps), cautions of social media, and many many more. In addition, they gave personal and real-life examples of situations they have faced and provided

Great day for Golf! @cacmchat @antisroofing #golftournament #cacm #alisoviejocountryclub — Victoria Gish, CCAM

We found our inner “Super Hero” at the CACM Golf Tournament!!! @cacmchat @rosemanlaw @emmazaboth #lifeisgood #thegolflife #teamroseman #superhero — Teresa Agnew

solutions to learning managers. We know that all managers who attended benefited from their insight and problem-solving techniques and would be able to apply them in their own communities they manage. We were honored to have Monica represent Team Powerstone at the CACM Regional Forum and couldn’t be prouder

Shout out to this team winning the overall lowest score at the CACM – OC golf tournament! And to @tinnelly for winning the men’s longest drive!!

— FentonGrant

of the presentation she made. Way to go Monica! #TeamPowerstone #powerstonepm #powerstone #CACM #CACMchat #CACMstrong #poweredup #speaker #regionalforum #forum #colleagues #presentation #greatjob #education #HOAmanagement #management #HOAs #community #solutions #team #learning — Powerstone Property Management, ACMC

cacm.org | Vision Winter 2021

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from the roundtable A MESSAGE FROM THE BOARD

As another difficult year comes to an end, it has been inspiring to reflect on where we have come and what we can expect for the CID industry in 2022. CACM has had to continually adapt to all the challenges that have been presented over the last two years, and it has made us more resilient and united as ever.

Your CACM board of directors has been thrilled to watch the CACM team step up to difficult tasks and adapt accordingly time after time again. Even when times are problematic, I believe that we continue to bring value to our members by adding private session classes, online offerings, virtual networking opportunities, and events.

CACM continues to be the premier leader of education in the CID industry and has accomplished a lot over the last year by being innovative, creative, and open minded.

We are fully prepared for 2022! CACM is in full planning mode for riveting educational sessions for the 2022 Law Seminars. We are focusing on diversity, new legislation, and will be touching on hard hitting topics, such as ADUs, in our breakout sessions.

Additional class topics will include fair housing, nuisance issues, reserve funding, time management, and the ever-important balcony legislation. We hope that everyone can attend as we are thrilled to see everyone back in person.

As I conclude my second year as the chair of CACM, I am reminded of how blessed we all are to have had such an amazing organization at the helm of our industry for the last 30 years. CACM has provided me with incomparable education, the opportunity to come together with the leading industry partners, and lifelong friendships.

I am extremely proud to be a member of CACM, and I am so excited to see what 2022 brings for our organization! Cheers to 30 Years!

Kendrah Kay, CAMEx, CCAM CACM Board Chair Powerstone Property Mgmt., ACMC

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Vision Winter 2021 | cacm.org

New ar Ye s n o i t a r Celeb CACM is delighted to bring New Year Celebrations to Coachella Valley and San Diego! Celebrate the New Year and new opportunities with us and your colleagues.

Join CACM to say goodbye to 2021 and hello to 2022.

CACM invites you to ring in the new year and to remember the successes of 2021.

These exclusive events are open to managers and sponsors only.

COACHELLA VALLEY JANUARY 11, 2022 5:00 pm - 7:00 pm

Classic Club Bellatrix 75200 Classic Club Blvd Palm Desert, CA 92211

Register Now

SAN DIEGO Bernardo Heights Country Club JANUARY 13, 2022 16066 Bernardo Heights Parkway 5:00 pm - 7:00 pm San Diego, CA 92128

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MANAGERS INVITE A CO-WORKER FOR FREE* As the saying goes, the more the merrier. In that spirit, managers who register have an opportunity to invite another community manager to attend for free. That’s right! Register and bring a teammate for free! So what are you waiting for? Join the festivities and enjoy live music, appetizers and drinks with your colleagues and friends.

*Guest must work as a community manager in the industry; CACM membership not required.

Register online and send an email to registration@cacm.org with your teammate’s first & last name, company, and email or fill out a paper registration form for your guest.

DOWNLOAD PAPER REGISTRATION FORM

INDUSTRY PARTNERS: Interested in sponsoring one of CACM’s New Year Celebrations? Contact marketing@cacm.org for more information.

VIEW SPONSORSHIP OPPORTUNITIES cacm.org | Vision Winter 2021

17

spotlight on education

2022 Law Sem You Don’t W In terms of legislation, a lot has happened throughout the year of 2021. In preparation for the Law Seminars in 2022, our Law Seminar Advisory Committee has come up with timely topics and discussions that are relevant to all managers, from veterans to those who just joined the industry. Every attendee will walk away with tangible and practical ideas to implement in their day to day. Here are the topics and details we will cover at next year’s events. All managers who attend the Law Seminar will earn 8 CEUs for recertification (or up to 12 if you take the pre-seminar Ethics courses being offered the day before the event).

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Vision Winter 2021 | cacm.org

NUANCES OF NUISANCES

Living in multifamily units presents challenges including noise, smoking, parking, etc. Through this session, you’ll understand what constitutes as a nuisance, when an HOA needs to step in or if it should involve itself in a neighbor-to-neighbor dispute, if nuisances are handled differently in condos vs. PUDs, and when a nuisance overstep its bounds and becomes harassment to neighbors, board members, and management. A sample nuisance policy and a tool to outline the nuisance process will be provided during the session.

TIME MANAGEMENT: DO MORE, STRESS LESS

Do you find there is not enough time to complete the ever-demanding tasks of this industry? This session will teach you tips from experts that they use to stay on track with minimal stress, how to create a schedule and communicate expectations for your board and membership, how to make the best use of annual calendars, action lists, etc., how to rely on your support team for help and assistance, and the best practices for time management.

A cheat sheet for tips and strategies including delegation responsibilities within your team, a sample annual calendar, and action list will also be provided.

minar Sessions Want to Miss!

BALCONY 101

SB 326, otherwise known as the Balcony Bill, has presented a lot of questions and clean-up legislation. We’ll go over what the new changes are with the bill, what impacts it will make on your communities, what exactly “majority” (majority of stairs, decks, balconies, etc.) pertains to in terms of inspection, who inspects, what reports are needed, what to do if replacements are required, the timeline from inspection to completion of repairs, which balconies, decks, stairs, etc. that don’t require inspection, and if the bill only addresses balconies instead of other components. Similar to the previous topic, this session will also cover the liabilities that associations have to tackle if they’re unable to afford or secure a Special Assessment via owner approval and if an emergency assessment could be used to offset the liabilities at hand.

PLAYING REF IN CIDs

Knowing how to handle conflict without taking it personally is crucial for long term success in this industry. Whether it is conflict between neighbors or within the board of directors, there are tips you can use in order to achieve a “win-win” outcome. This session will cover two types of conflicts that a manager deals with, the steps for resolving conflicts, when a manager should engage in conflict resolution, contact legal counsel/insurance company, what an IDR and ADR are and when they should be used, and the proactive steps to take when resolving member issues and with governance that should be communicated to the board of directors to avoid conflicts. Strategies used to resolve conflicts and tips for guidance on where to learn more on this subject will be provided.

AVOID CATASTROPHE AND PLAN PROPERLY

To reserve or not to reserve? Learn Civil Code requirements for reserves along with learning strategies on how to educate your board on the reserve study, how to use it for strategic budgeting for upcoming projects, the timelines to start getting them done and approved, and what to do if components are not listed (i.e., balconies). We’ll also cover the different types of funding models, what percent funded means, how to address issues balcony repairs immediately, borrowing from reserves or failure to fund reserves, the current cost of components vs. what’s in the study, how to handle transitions from DRE Budgets, and the disclosures needed to provide to homeowners.

Continues on page 20

cacm.org | Vision Winter 2021

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2022 Law Seminar Sessions, Continued from page 19

NEW CASE LAW & SURFSIDE CONDO COLLAPSE

NAVIGATING FAIR HOUSING

A growing challenge for managers and boards of directors is the consistent pursuit of rule enforcement without triggering a claim of discrimination. Learn how to avoid a claim (from the most common to the most complex), process a claim (should you receive one), the fines and appeal process of the claim, and the proper procedures to prevent, mitigate, and manage a claim. This session will also cover how to educate your board regarding what Fair Housing Laws are, how and when it began, and how long it takes for Fair Housing to come up with a determination. We’ll also go over what a protected class is, who falls under that category, if an HOA has to comply with ADA or provide a reasonable accommodation, if they are required to allow a service or companion animal, and how to distinguish between a service and companion animal. Timeline and checklists of the claim process will be provided as well.

Hear the latest on new laws and cases that impact our industry and the communities we manage. A comprehensive review of the laws that affect CIDs and recent litigation.

The recent condo collapse is an ever-changing situation. This session will prepare you on how to educate a board to understand the importance of a situation as unpredictable as this, how a manager/management company can protect themselves, how an association can plan ahead (mandatory reserve funding, budget, reserves, etc.), how a board can apply the business judgement rule if they don’t want or have the ability to spend money, and what impacts this collapse could have on future legislation. We’ll also discuss what liabilities an association could helm if they can’t afford and secure a Special Assessment through owner approval and if an emergency assessment would be sufficient in shielding the association from those liabilities.

You’ll learn what kind of impact this situation could have on insurance (property, liability, D&O) for your communities.

COVER YOUR ASSETS

Poorly drafted contracts can present significant legal and financial issues for community associations. Contracts drafted by vendors will often protect their own best interests, and the boilerplate language they include could expose the association to liability or limit its right to recover in the event of unsatisfactory work. This session will explore the proactive steps an association should take prior to executing their next contract in an effort to mitigate its risk exposure. The most common (or most litigated) liability exposures and issues found in contracts, the bare minimum provisions and indemnifications that every contract should have to mitigate liability, special considerations for insurance policies, special coverages that reduce liability in contracts, thresholds that a community should have its legal counsel review or draft a contract, “template contracts” used to fill in gaps and liability exposure in the proposal and bids produced by vendors, the board’s role and what can be done to set clear expectations regarding contractual obligations prior to ratification, and additional best practices managers and boards can employ to limit potential contract breaches and liability exposure will be covered as well. A checklist of provisions that every contract should include will be provided.

ALL YOU NEED TO KNOW ABOUT ADUs Designed to help alleviate the affordable housing crisis, a new law in California was established to authorize owners to convert their garage or even add a small accessory dwelling unit to their yard despite the rule of their HOAs. However, HOAs aren’t powerless, and there are proactive steps that can be taken to mitigate some of the adverse effects. Managers who attend this session will be educated on AB 670 and its requirements of Common Interest Developments, its impacts on existing restrictions in the governing documents,

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and the challenges that it raises. They will also learn its effects on amenity usage and wear and tear on common areas, how governing documents should be amended to comply with it, and a reflection of what we have learned since its implementation and the blurred lines that still remain. We’ll also cover the effects in assessments and whether or not additional assessments are required. A checklist of what to look for within a HOAs’ governing documents to ensure compliance with AB 670 will be provided.

New CAMEx, Jeremy Wilson, Proud To Be A CACM Member Jeremy Wilson, Vice President of Associa PCM, recently achieved the CAMEx designation. Being certified as a CAMEx demonstrates that a community manager adheres to not only maintaining a healthy, ethical, and orderly community management organization, but also to possessing the highest level of decision-making authority within a management business. The designation also signifies that those who are awarded it are responsible for the strategic direction of their organization, such as oversight of public policy and keen awareness of macroeconomic factors affecting the community management industry.

To obtain a CAMEx, managers must hold and maintain a CACM certification (CCAM, CAFM, MCAM) in good standing and be one of the following: a community association management business owner, full-time onsite community association general manager, or a member of the CACM Board of Directors.

The CAMEx designation is valid for one year and perpetually renews until one of the eligibility conditions is no longer met, and in order to maintain this designation, a minimum of 9 “leadership” participation points per year are

required. These points can be earned by speaking, teaching, or participating in selected CACM events or programs.

Wilson says that the benefits of being a CACM member are extensive. “From networking to education to industry growth, I could and would not be the person I am today without the influence from CACM. I am honored to be a member, CAMEx, as well as a faculty member,” Wilson said.

Wilson originated from the hospitality industry and was later recruited into the community management industry and started at a semiprivate, self-managed community. He also managed luxury resorts in San Diego and was the Director of Operations for a large private university in Orange County. He now works for Associa PCM as the Vice President of Client Success and has been with the company for over a decade.

Wilson has served self-managed communities, management companies, and in a variety of capacities, including leading business development, client retention, and education and training for both team members and clients. He has worked in almost all aspects of management and back office functions for more than 25 years.

DURABLE SIDING. NOW IN SMOOTH.

®

cacm.org | Vision Winter 2021

21

YOU WON’T BELIEVE HOW MUCH HOAs HAVE GROWN (2021)

By Ryan Kwon, Communications Manager, CACM

According to the Levy, Erlanger & Company’s latest tracked data, approximately 600 new HOAs were added to the state of California (100 fewer compared to 2020), representing an approximate 1.1% increase.

Compared to 2020’s HOAs’ gross revenue of $13.7 billion, 2021’s revenue has increased by a whole 3%, totaling an approximate $14.1 billion. “Although, percentage wise, there is a minimal change, HOAs and their units have been growing by the thousands,” said David Levy, founding partner of the Levy, Erlanger & Company.

California currently has around 55,000 (55,399 associations to be exact) HOAs residing inside of it, and according to Levy’s statistics, around 66% (36,409 associations) of those associations are located in Southern California while the remaining 34% (18,990 associations) can be found in Northern California.

Amongst those HOAs, approximately 60% of them are managed by management companies, 37% of them are self-managed, and 3% of them are on-site managed.

According to the Levy’s statistics, most of the self-managed and on-site managed associations are typically smaller than company managed ones (majority being no bigger than 25 units in size).

When dealing with preference, “management companies prefer to work with larger associations rather than smaller ones, because there’s more profit to be made,” Levy said.

“It’s better to work with a board with 5 members with 20 associations than a board with 20 members with 5 associations. It’s simple economics.”

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1. Subject to credit approval. 2. ICS® and CDARS® are registered service marks of IntraFi Network, LLC. © 2021 Popular Bank. Member FDIC. 22

Vision Winter 2021 | cacm.org

In terms of development types, condos and condo conversions are sweeping the majority with 65% (33,258 associations) while planned unit developments remains in the minority with 34% (17,752 associations). The other 1% (4,389 associations) is inhabited by cooperatives and timeshare and unclassified developments.

Although no particular trends have caught Levy’s eyes, he’s “keeping tabs on the continued growth of larger management companies by merging/acquiring smaller companies as older owners head for retirement.”

Currently, the counties that are seeing significant growth in HOAs are Napa, San Bernardino, Placer, and Santa Clara. Other counties seeing moderate growth in HoAs are Alameda, Butte, Contra Costa, El Dorado, Fresno, Kern, Los Angeles, Mono, Monterey, Riverside, Sacramento, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Sonoma, Tulare, and Ventura.

Levy obtains his data for his statistics from various sources that include: California’s Department of Real Estate public reports and Secretary of State, over 1,500 Northern Californian managers, other state sources, and the internet. Annually, Levy compiles his statistics in September using a program that pulls all the necessary information for his statistics from his sources.

Levy, Erlanger & Company has been compiling its annual statistics book for more than 13 years but began tracking the number of HOAs in California for a much longer period of time. David Levy, founding partner of the firm, has been building the firm’s database since 1985.

INCREASES BY COUNTY 2021

4

55,399

+1

%

2020

54,782

3

%

66 % 34 $ 14.1B $ 13.7B % %

SOCAL

NORCAL

2021

GROSS REVENUE

GROWTH

AVERAGE ASSOCIATION SIZE

ASSOCIATIONS GROWTH SOCAL

NORCAL

36,409

18,990

36,066

18,716

+1%

+1.5%

2021

2020

2021

%

Alameda Butte Contra Costa El Dorado Fresno Kern Los Angeles Mono Monterey Riverside Sacramento San Diego San Francisco San Joaquin San Luis Obispo San Mateo Sonoma Tulare Ventura

Napa San Bernardino

+3

2

TO

Placer Santa Clara

GROWTH

ASSOCIATION LOCATION

1

%

%

TOTAL CALIFORNIA ASSOCIATIONS

2020

93

UNITS

65% CONDOS/ CONDO CONVERSIONS 34%

PLANNED UNIT DEVELOPMENTS

1%

COOPERATIVES/ TIMESHARE DEVELOPMENTS

2020

Source: Levy, Erlanger & Company LLP, San Francisco, CA Source: Levy, Erlanger & Company LLP, San Francisco, CA

cacm.org | Vision Winter 2021

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achieving professional excellence

Congratulations Managers It is with great pride that we recognize managers who have taken the next step in their professional career by pursuing advanced educational opportunities. Congratulations to our newest Certified Community Association Managers (CCAM) and Specialty Certificate recipients for the period of September 1, 2021 through November 12, 2021.

NEW CCAMs Alex J. Burge, CCAM Leilani D’Amico, CCAM

SPECIALTY CERTIFICATES HIGH RISE Sergie Bokov, CCAM-PM.HR

Tania Fino, CCAM Heather Kearney, CCAM Jamie Hansen, CCAM

NEW DEVELOPMENT Jeffrey Farnsworth, CCAM-PM.ND

Scott Humberstone, CCAM Joydawn Jackson, CCAM Jason Kellogg, CCAM

CCAM-EMERITUS Kathleen Zechmeister, CCAM-Emeritus

Saeed Khan, CCAM Stefanie Landeros, CCAM Lucy Limon, CCAM Scott Matas, CCAM Wendy Miller, CCAM Christine Padilla Ramirez, CCAM Rick Rapp, CCAM Zenaida Rivera, CCAM Kelly E. Ray, CCAM Jessika Rubalcava, CCAM Tiffani Santiago, CCAM Sheri Santospieve, CCAM Fred Scaglione, CCAM Jessica Sewell, CCAM Paige R. Sofka, CCAM Zachary Thayer, CCAM Gabriela Torres, CCAM Natalie Toyer, CCAM

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Vision Winter 2021 | cacm.org

Easily Update Your Member Profile!

Updating your member profile is quick and easy. Go online to www.cacm.org, click on Log In at the top right of the Home Page, and enter your email and password. On the Member Portal landing page, click on your photo on the top right, then click on My Profile. You can select My Info, then enter your new information. Click on Update Information at the bottom. You’re done!

ADVERTISE IN THE MOST READ PUBLICATIONS OF THE INDUSTRY

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designed to provide managers with easy-to-understand interpretations of legal matters. An interactive Legal Directory and interactive display ads, give managers easy access to your company’s contact information. The Law Journal is distributed electronically each quarter to over 4,000 industry professionals. Plus, each issue is also added to CACM’s Members Only online section for managers to access electronically, giving your listing an added shelf life!

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2022 ADVERTISING DEADLINES • Spring (Digital): 01/14/2022 • Summer (Digital): 04/15/2022 • Fall (Digital): 07/22/2022 • Winter (Digital): 09/23/2022

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cacm.org | Vision Winter 2021

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Newly Signed Laws Impact HOA Elections, Finances, Meetings and More

By Jennifer Wada, Esq.

The governor’s deadline to sign or veto legislation was October 10. Having just won the recall election by a landslide, Governor Newsom seemed emboldened as he acted on bills sent to him by the legislature. In total, lawmakers sent 836 proposals to his desk, and out of those proposals, he signed 770 and vetoed 66.

By this time of year, you are all well aware of the CID bills that have made their way through the legislature. So how did they fare at the hand of Governor Newsom?

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AB 502 (Davies) – Signed This bill would apply elections by acclamation to all associations and was a priority bill for CACM. This is a big win for the industry. The author’s office contacted CACM as soon as they learned of the signature to thank the organization for its efforts.

Our own President/CEO, Tom Freeley, was a key witness for this bill as it moved through the legislature. Key provisions have been outlined in previous editions, but they include an additional 90-day notice that must contain, among other things, a “heads up” that if there are fewer candidates than vacancies, the board may use acclamation.

The bill also requires the association to confirm receipt of a candidacy submission and whether the person is qualified to run. We have already discussed the idea of clean-up legislation with the author in the event there are clarifications or improvements that need to be made next year but getting the law on the books is great progress.

AB 1101 (Irwin) – Signed This is CAI-CLAC’s clean up measure to AB 2912 (Irwin, 2018). It would clarify the types of financial institutions an association may use to hold its funds and modify when board approval is needed for electronic transfers.

Such transfers would be prohibited unless the amount of the transfer is the lesser of $10,000 or 5% of the estimated income in the annual operating budget for associations with 50+ separate interests or the lesser of $5,000 or 5% of the estimated income in the annual operating budget for associations with less than 50 separate interests.

The bill also removed the provision that allowed managing agents to commingle funds if done before February 26, 1990. CACM supported this measure.

AB 1584 (Committee on Housing) – Signed This is the housing omnibus bill, which contains language that would allow the governing document amendment requirement in AB 3182 (Ting) to be done through a board vote only and would push the compliance date to July 1, 2022.

The bill also continues to contain cleanup to the CID ADU law (AB 670, Friedman, 2019) by clarifying it applies to all CIDs since some associations were construing it as not applying if they did not have undivided interests in common area. CACM supported the proposal to allow AB 3182 governing document amendments to be done by a board vote.

SB 391 (Min) – Signed Because this bill was an urgency measure, it became law immediately upon signature. SB 391 now allows, during a state of emergency, meetings to be conducted entirely by teleconference (this is defined to include videoconference) without any physical location needed if gathering in person is “unsafe or impossible.” CACM supported this measure.

SB 392 (Archuleta) – Signed This bill was sponsored by the California Association of Realtors and would require members to provide the association their preferred methods of delivery, which can be both email and mail. Members must provide their email, mailing address, secondary email, and secondary mailing address.

The website requirement was eliminated entirely. A provision was also added that explicitly prohibits a managing agent from selling a member’s personal information to a third party without consent unless required to

do so by law. CACM just monitored this bill and provided technical assistance.

SB 432 (Wieckowski) – Signed This is the cleanup measure to SB 323.

It contains numerous noncontroversial provisions, including clarifying that the felony candidate disqualification applies if the felony compromises the association’s ability to get any kind of insurance (not just fidelity as stated in current law).

It also clarifies that board members are subject to the same qualification requirements as candidates and that associations must maintain election materials for one year. It further clarifies that to be a qualified candidate, an individual that is delinquent in assessments must be in compliance with a payment plan, as opposed to the old law requiring an individual just to have entered into one.

The bill also clarifies that any individual appointed by the inspector of elections to count and tabulate votes also meet the same independent third-party requirements as the inspector of elections. The most substantive change made by the bill appears to be the definition of “enhanced associations records” being amended to include bank statements.

SB 9 (Atkins) – Signed This would allow most homeowners in California to build two houses or a duplex where now only one house is allowed. It would also permit eligible homeowners to split their lot and add two more units on the second parcel as long as it’s at least 1,200 square feet and outside fire hazard zones or historic districts. Owners would have to stay in their homes for at least three years after splitting their lots. CACM monitored this bill.

SB 10 (Wiener) – Signed This would let a local government rezone single-family parcels to allow as many as 10 units near public transit hubs and within urban areas. CACM worked with CAR and others to oppose provisions that directly impacted CIDs and would have explicitly prevented them from imposing any restrictions. The author has already indicated an interest in revisiting how this law operates in CIDs next year.

What’s Next?

Now that the 2021 session is behind us, legislators and interest groups are busy cooking up proposals for 2022. CACM has already been contacted by one legislator inquiring about potential legislation in response to the Florida condo collapse, so we can expect more to be done in this area.

We have also been contacted about potential changes with respect to earthquake insurance, and we should anticipate wildfire legislation that could impact CIDs. There will surely be more action regarding housing density, possible attempts to ensure HOA restrictions do not interfere with more housing, and of course, the seemingly never-ending CID bills that love to pop up every year.

As we prepare for the year ahead, we encourage your engagement and thank you for your contributions in crafting important policies that impact managers throughout the state.

Jennifer Wada, Esq., is an attorney, CACM’s legislative advocate and principal of Wada Government Relations in Sacramento.

cacm.org | Vision Winter 2021

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serving your communities

New Industry Partner Members CACM members further their success in the industry and benefit by partnering with colleagues to share new ideas and best practices. Join us in welcoming these new members from the third quarter of 2021 (July 1 – September 30.)

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cacm.org | Vision Winter 2021

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in the board room

Volunteers Wanted

By Frank Jauregui, CCAM

C

alifornia has been and continues to be a bastion of cultural and ethnic diversity. There’s truly no state within our national melting pot that holds such a large sampling of multigenerational family units, robust cultural wealth, and economy that, in spite of a pandemic, rivals and supersedes most countries in the world.

HOAs are but a microcosm of our golden state. More and more, we are seeing an influx of culturally diverse owners. No longer is the HOA a final destination for those who are looking to retire and spend their remaining days in comfort.

Instead, our communities are injected with new vigor as young professionals and young families bring a vitality to these neighborhoods when they move in, bringing with them fresh ideas of what makes a community great!

But with the influx of so many different types of people with their own particular worldviews and values, how can a

30

Vision Winter 2021 | cacm.org

Seek out members who are professionals in their fields. Showcase their achievements and successes to keep them engaged. community attract these diverse people to serve in one of the most selfless fiduciary positions within an association (i.e. serving on your friendly neighborhood board of directors)?

You can do two things: 1. You attract great owners into becoming board members by showcasing how gifted they are.

2. You retain great board members by telling them how valuable their uniqueness is to the board.

SHOWTIME As community managers, we all know and are aware that being a board member carries a paradox of sorts with it – it is the most powerful job anyone in the association can have yet it comes with zero “thanks” and a pay of zero dollars to match.

So how do you attract your most gifted and talented members to even consider running for the board?

Encourage your current board members to be as transparent as possible on community needs by inviting neighbors to join a committee. Which committee? Any committee? Most of my board members were elected to their positions after serving as a volunteer on a committee to fulfill a need in their community.

On those committees, try to encourage board members to partner up with talented non-board, committee members who can lend their gifts to the board in solving difficult issues. Especially seek out owners who are professionals in their

fields, such as architecture, finances, and construction.

those unique individuals to serve on our boards.

Make sure to showcase the achievements and successes of each committee member.

Everyone wants to know that they have done a good job and that their work has been recognized for the value and benefit that it brought to the table. Showcase them in your newsletters and lavish upon them sincere thanks for their work, and in no time, you’ll have a lot of them come forward to ask, “What can I do next for you?”

No matter how hard you try, board members all too often can become discouraged and feel the heavy weight of their position. So much so that they burn out from donating themselves over and over again.

The main reason people in committees make the transition into a board is because they are appreciated and openly thanked for their specific brand of excellence.

But once you have the preferred board members seated on your board, you need to start working on retention.

ATTENTION TO RETENTION Every hard-fought battle in world history has its normal course of action of working to retain the great gains that have been made. Likewise, in association management, we work to retain the great gains we accomplish when we attract

What I have found to help in preventing board members from burning out and keeping excellent directors from leaving is by having management take a proactive approach. I have stated in board meetings to both incumbent and prospective board members that management is here to make their time on the board as productive and as smooth as possible.

Management seeks to let their board members know that we are here to relieve them of having to worry about the dayto-day burdens of executing mundane activities for an association. Not only this, but I believe that we can help retain board members by truthfully outlining the importance and value that these people bring to the board.

See. Know. Secure.

We want to make sure all board members realize the importance of their gift and how much they are appreciated by other board members, the membership, and management for the abilities they have.

I believe this two-pronged approach works well in most scenarios to attract and retain talented board members, but much like jazz, it can be a work of improvisation confined by defined parameters.

What methods do you incorporate to scout for talented board member prospects and what systems do you have in place to harness the power of your valuable board members?

Frank Jauregui, CCAM is the Senior Community Association Manager at The Management Trust – Southern California, ACMC.

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31

maintaining high standards

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32

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Vision Winter 2021 | cacm.org

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cacm.org | Vision Winter 2021

33

YEAR-END REVIEW

LOOKING BACK ON THE OBSTACLE COURSE KNOWN AS 2021.

Here’s my summary of the highs and lows this year.

It’s been a challenging 365 days, but we’re coming out of it all with growth and transformation.

By Jessica L. Melvin, CCAM

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OBSTACLE 1:

Breakneck Legislation With 13 bills approved and several more waiting in the wings, 2021 was quite the unprecedented year for legislation. While not all bad, there were quite a few headache-inducing and unfavorable bills in the mix.

Reeling from the effects of a previous legislation, we now have even more legislation that generally infuriate our communities and makes our professional lives a little more colorful.

For example, AB-68 permitting ADUs (Accessory Dwelling Units) like granny flats, shipping containers, converted anything, really, now allows homes to add up to three ADUs or be transformed into four-unit dwellings.

Initially, managers didn’t think that ADUs would affect their communities, but later on, many of us found ourselves navigating through many ADU-related processes with committees, boards, and homeowners

over the last year. We even saw additional bankruptcy protections from our collection efforts with AB-1885 and scrambled to comply with rental restriction modifications of AB-3182.

The major takeaway is that you can smell where the industry is headed just by taking a whiff of the laws passed. Because some of these changes came with short compliance deadlines, many associations weren’t prepared to spend funds on document amendments and additional mail outs.

Legislative changes are becoming more numerous and cumbersome by the year. Several associations are increasing operating costs to cover them as the trend shows no sign of letting up anytime soon.

OBSTACLE 2:

Socioeconomic Effects Compared to other states this past year, California seems to have had more issues with socioeconomic

customer service background had a hard time stomaching the extra helping of angry customers.

We lost vendors who couldn’t stay afloat, paid a 1000% mark up for wood (if you could even find it), weathered through an increase in crime in our communities, sidelined projects, and closed facilities. If you were able to manage under these circumstances, you could certainly do anything you ever dreamed of doing. Even on your best sunny day, working in this industry is hard enough, and this year just felt like being trapped in a fictional dystopian world.

OBSTACLE 3:

Labor Shortages Another major wrench in our day-to-day plans as a manager is labor shortages. Competing bids are becoming more and more difficult to obtain as many contractors will flat out tell you that they’re declining due to a lack of workers and supply for the overabundance of demand for their work.

This isn’t just your favorite roofer either; this issue spreads across from landscaping all the way up to specialized soil engineers. The problem isn’t a lack of desire to work. The problem is that people take their time to be picky due to not only the high demand of work out there but also because of the programs that help them save a little or a lot during the pandemic.

effects. Perhaps it is due to not only our state’s diverse ethnic, political, economic landscape and unique climate issues, but it can also be the fact that we’re a huge and populous state. We’ve had it all: social and political unrest, fires galore, 90% of them being caused by humans, drought, homelessness, and oh, one last thing, a viral pandemic.

Those glimmers of hope we had at the end of 2020 were quickly shattered as the world continued to struggle with the rapid informational changes and the new variants of the Coronavirus. As managers, we all felt the additional stress throughout our communities.

Many people are at home feeling nervous, frustrated, and uncertain about what was in store for the future. Some people were just downright angry, and no matter how nice that letter about their trash can you sent them was, it could have been the absolute last straw for them. Even managers who come from a hospitality or

Some vendors have been proactive and stayed ahead of the curve by implementing programs like providing incentives in the form of sign-on bonuses, beefing up their benefits packages, or even offering additional vacation time to attract suitable new workers and keep their talent where they are. Of course, others were still hesitant to jump on the worker revolution train.

The exaggerated process of bidding and executing projects has put a major strain on managers as many soaring golden opportunities were shot down due to facilities being closed and unavailable in servicing their needs for those projects. Management companies have lost so much needed revenue from project management and extra billables, and even our clients lost out on higher property values.

spice lattes that 2022 will be the year of an awesome change. As frustrating and complicated as 2021 has been, it has also brought us some much-needed reflection on how to assess our roles as managers in our communities, boards, and even within our own companies.

Many of us went to remote work and found whole new ways to manage our time and enjoy our coworkers. We connected more with our environment, got pandemic pets we never even knew we needed, and came up with innovative and creative ways to bond within our workforce.

We left jobs we felt stagnant in for greener pastures (many of us even came crawling back when the green spray paint wore off on that grass) or received promotions to fill new roles that never existed before.

Technology definitely took a front seat in our careers and streamlined a lot of processes that kept us from utilizing our time for bigger and better things for our communities. Boards got to test new technology with Zoom meetings or figured out hybrid alternatives that allowed homeowners to have more access and participation.

Committees were formed to tackle unique issues, and with newfound accessibility, it was simple to attain participation. Homeowners embraced new and convenient ways to manage their association relationships and became more involved.

We may still face some lingering struggles and growing pains. The result as people, an industry, and professionals is growth. We all experienced new things and got blown in a direction we never thought we’d go in, but it’s certainly a direction that will guide us to a transformative industry.

Sometimes, these “bad” years end up being the best years in retrospect.

FINISH LINE: Silver Linings

Don’t despair! This year is nearly at an end, and we can all be hopeful while sipping our pumpkin

Jessica L. Melvin, CCAM, is the Portfolio Community Manager for The Management Trust, Nor-Cal division, serving Yolo, Solano, and Contra Costa counties since 2016.

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DIVERSIFY YOUR SKILLSET

By Andrew Hay, CAMEx, CCAM-ND.PM

Expanding your personal skillset will help you advance in your career while allowing your employer to explore new offerings and potentially increase profitability.

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“ Managers and management companies are expected on the daily to handle properties and matters that are more complicated and complex than meets the eye, but more often than not, it’s difficult to quantify or even value these issues to our clients.

For us managers, it’s important to recognize the skills that you develop as your career progresses and to identify when those developing skills can be translated into a versatile and diverse skillset that can act as an aid in advancing your career.

For example: let’s say that you have a good handle on reserve components and reserve studies. Because you have that skillset under your belt, you are no longer just a manager. You are now also capable of being a professional Reserve Analyst and performing services relating to reserves for the company or association that you directly work for.

With a bit of certification and extra training, there are many tasks that managers administer daily that can be converted from everyday tasks into billable work. In order to diversify your skillset, try to look for opportunities within your day-to-day job. Doing so will not only increase your value and worth to both your company and your clients, but it will also be a powerful asset in helping you get that raise, promotion, or new job that you’ve been working towards.

Having trouble identifying opportunities either as a manager or management company? For managers, talk with your board members and residents about both their current and past experiences in the association and in other communities.

It’s one thing to come up with an original idea and try to market it, but it’s another to draw on the experience of others to implement a community program or offering that you know has already had success in other communities.

For management companies, talk to your staff and find out what interests them or what topics come up regularly at meetings beyond the standard association discussions. Someone could be underperforming as an assistant or a manager, because their skillset does not fit their current position, but they could also be a rockstar at understanding financial statements and budgets.

Think! Is there an opportunity to create a position that fits that employee’s strengths while complimenting the weaknesses of others? Without talking to your employees and finding out what interests and motivates them (even if they are less than stellar at their current role), this is a question that would definitely be difficult to answer.

Management companies, ask yourself this: “How often do we overlook the potential of employees within our company and what opportunities are we missing out on to transform and expand that potential into practicality?” The answer is “too often.”

BUSINESSES, HELPING US REACH OUR BOTTOM LINE.

“

I was once told that a perfect manager is someone who is a jack of all trades and a master of none, and there is certainly some truth to those words. As managers, it’s expected of us to sit in a board meeting and explain why a large special assessment is being levied, and on the same day, we have a two-hour onsite walk with a committee and a landscaper, a call with the CPA to finalize an annual review, and to top it all off, a companywide meeting to understand how a virus causing a global pandemic is going to affect our communities and workplaces.

IT’S TIME TO INVEST IN OUR EMPLOYEES’ DEVELOPMENT, SO THEY CAN BRING TRUE VALUE TO OUR

What services do your clients pay for that you believe your company can perform (e.g. tot lot inspections, fitness equipment review, reserve studies, inspection of elections for nonmanaged clients)? Is there any training needed to perform these services and what would the cost be for learning that new skill?

Instead of relying on our well-trained staff members and accessible in-house resources, we frequently look toward third parties to handle and perform certain tasks or services. It’s time to invest in our employees’ development, so they can bring true value to our businesses, helping us reach our bottom line.

We must continue to look for ways to diversify the skillsets of our employees and our service offerings, ultimately leading to better customer satisfaction and more profitable businesses.

Andrew Hay, CAMEx, CCAM-ND.PM, is the Chief Operating Officer of The Helsing Group, Inc.

cacm.org | Vision Winter 2021

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Home Is Where Diversity Can Thrive

By Todd Greisen, CCAM

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Vision Winter 2021 | cacm.org

Among the early acts of Congress, in 1782, E pluribus unum was adopted as our national motto. Although in 1956, In God We Trust replaced it. “Out of many, one,” however, still remains on our U.S. national seal and on several of our coins to this day.

Great waves of immigrants from many cultures, race, and of all ages have made America their home. They include the wealthy, the impoverished, and yes, even those who were indentured or slaves. Regardless of who, what, or where they come from, they all share a common ground – living within the shores and boundaries of this nation. This is one of many things that has made this country a highly desired place to live.

In the context of our modern national motto, the second greatest commandment is to “love your neighbor,” according to ancient scripture.

It’s a good rule to live by regardless of your belief system. And even if you can’t love your neighbor, our laws tell us to respect them without regard to skin color, age, social status, or other differences.

Who is your neighbor? Everyone you come in contact with - period. A restaurant patron should treat the wait staff as an equal. In a company setting, a CEO should treat the receptionist no differently than fellow board members. Likewise, community boards and

management leaders should treat everyone equally and with respect, including their neighbors in the community.

Managed communities often become modern microcosms of our national heritage, where a variety of ethnicities, cultures, and demographics are melded together. The very nature of an HOA or CID brings people physically closer together as a community, where commonality can or cannot be fostered.

Author and speaker, Dania Santana, describes diversity well - as it relates to associations. “A successful community in which individuals of different race, ethnicity, religious beliefs, socioeconomic status, language, geographical origin, gender, and/or sexual orientation bring their different knowledge, background, experience, and interest for the benefit of their diverse community.”

She continues – “As they all contribute to the success of the community, individuals in a healthy diverse society practice daily understanding and respect of the different ideas, viewpoints and unique perspectives of those who are somewhat different from them, as they recognize that those individuals share and are actively working towards achieving many common goals for the benefit of the community as a whole.”

“Even if you can’t love your neighbor, our laws tell us to respect them without regard to skin color, age, social status, or other differences”.

Common areas can become common threads in building a sense of community, neighborly, or even lifelong friendships. Yet, the American promise of life, liberty and the pursuit of happiness can be interrupted by our neighbor on the other side of the fence, across the street, or in the condo above.

Fences can provide a sense of ownership and privacy, while being shared with a close neighbor. An example comes to mind. Those of you who watched TV during the 90’s will recall one of the decade’s most popular comedy shows – Home Improvement. One frequent character was a mysterious neighbor named Wilson, whose full face was never seen over the backyard fence.

Throughout the series, Wilson’s neighborly over-the-fence advice, given to the main character, Tim, often provided the moral lesson of the episode’s story.

But we know the media doesn’t always reflect real life. Maybe there’s a young neighbor across the street who drives a loud, annoying car that’s meant to impress his girlfriend. In more densely populated communities, such as condominiums where walls or floors are shared, diversity clashes are even more likely to occur. A condo dweller upstairs could play beating music that may not fit the cultural or generational palette of those living below. As condo

association managers can attest, this proximity doesn’t always foster neighborly behavior, and sometimes, it’s complicated by diverse backgrounds, ages, and lifestyles.

In our pursuit of our best life, some find their home in a place that intentionally minimizes these differences, such as a 55+ community.

Due to evolving populations who move in, some communities lose their diversity over time, because they share common bonds or languages with neighbors. Eventually, others become unwillingly excluded by their appearance or other behaviors.

So, what role should a community take in creating an environment of diversity?

Getting wrapped up in the day-to-day management of an association, board, and management can easily cause us to lose sight of the value of diversity amongst the people who live in our communities. Can everyone always get along? Of course not! But creating an environment where diversity is not the main cause of inherent issues associated with living in proximity is possible.

For starters, I would like to add physical diversity to Santana’s definition of social diversity. Are disabilities accounted for in your community? Think A.D.A. compliance. What else can an association do on a practical level to

enable diversity, thereby mitigating conflict?

A 2020 survey of hundreds of community managers and residents gives us an indication of other areas to consider. The results show accusations of discrimination are prompted most often by: 1. Collection Notices 2. Violation Letters 3. Social Media The first two are under direct control of the association.

Need I say this? Collection notices must be handled without favoritism or bias of any kind.

CC&R enforcement should cross all diversity lines – all rules apply to all residents (and guests), all the time. Document your exceptions. Clear and fact-based notices should have little to no opinions within them. Opinions open the door to assumed biases.

The third, social media, could also be under the control of an HOA when its board members or managers are the ones typing on the keyboard.

You, managers and leaders, set the tone. Be a model of diversity through your words and actions by looking past the differences and focus on what we all have in common.

Todd Greisen, CCAM, is the General Manager of Contra Loma Estates in Antioch, California. cacm.org | Vision Winter 2021

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SUPPLY AND DEMAND, LOSSES DRIVE RISE IN INSURANCE Managing risk and investing in proactive safety measures are ways to secure better rates.

By Hamlet Vazquez, MCAM-HR

Over the course of the past year, insurance premiums have skyrocketed. For many homeowner associations it’s also become harder to acquire insurance coverage either because of previous claims history or their geographic location in an area considered to be of high risk for catastrophic losses.

To understand the growing challenges of insurance coverage and rising premiums, I spoke with Jonathan Naranjo, Senior Vice President and Regional Real Estate Practice Leader of HUB International.

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As a number of associations were finalizing their budgets for 2022, they noticed quite the uptick in their insurance premiums. What is driving these increases in insurance premiums?

There are a myriad of factors driving rates and premiums up for all insureds regardless of industry. The market continues to be hard, and habitational real estate has been one of the hardest hit industries due to the frequency of losses (e.g. water damage) and insurers pulling out of the market, creating a supply and demand issue.

Catastrophic (CAT) losses continue to cost insurers multi-billions of dollars each year, impacting rates. For example, 2020 was the costliest wildfire season for California (well over $20 billion) and the fifth consecutive year of multi-billion insurable losses due to the fires.

In addition, hurricanes and floods continue to impact the Midwest and East coast. Hurricane Ida, for example, is now projected to cost insurers between $25 billion to $35 billion in losses. Although CAT factors do not directly impact HOAs, insurance companies are well diversified. When they pay billions in losses each year, their entire portfolio is scrutinized, and they increase rates to help mitigate the financial hemorrhaging or pull out of the market.

Another area that is increasing in pricing is litigated defense claims (e.g. D&O claim).

California is one of the most litigious states nationally, and there’s been a huge uptick in “nuclear verdicts.” In other words, large settlements that are costing insurance companies an excess of $10 million are piercing the umbrella (a.k.a. excess lines) that would traditionally be “protected.”

By showcasing proactive measures and making investments in some, if not all, recommendations during the outlined plan of time or policy period builds a tremendous amount of goodwill with insurers and in turn, will not only help mitigate the HOA’s risk of loss but also the underwriting team will provide a more preferential rating compared to other peers in the industry.

Lastly, in order to comply with the ever-rising cost to rebuild property and to follow insurers’ compliance standards, exposures, such as property values, continue to be heavily scrutinized in today’s hard market. Lumber, glass, steel, material, and even labor are just a few examples of increasing costs to rebuild property, which in turn, requires HOAs and communities to increase their Total Insurable Values (TIVs), equating to higher premiums.

Lastly, more is more in this precarious market, and underwriters are asking for more. In other words, the more documentation outlining the safeguards and investments made and demonstrating great risk management in your community that you can provide an underwriter, the better chances that an HOA will receive priority underwriting and preferred rates. The integrity and accuracy of the underwriting information is also crucial.

Most CC&Rs require that the master property policy insures the HOA at a 100% replacement cost determined by the board of directors.

Each year, values must be reevaluated to keep up with the rising costs and inflation.

Accurate replacement values, square footage, upgrades and renovations (e.g., seismic retrofit or recent waterproofing), and installations of safeguards, such as water detection systems, Seismic Gas Shut-Off Valves (SGSVs), security cameras and monitoring, and hard-wired vs. batteryoperated smoke detectors, are examples of data that are divulged in helping your broker negotiate preferred terms with the marketplace and respective insurers.

What can associations do to become a more attractive client and secure better rates?

Have a well-documented, updated risk management and safety response plan. A great example would be something like a Domestic Water Emergency Response Plan or DWERP. Since the number one culprit of claims for high-rise HOAs is water and escaped liquids, it’s important to have an updated plan that all staff and stakeholders are familiar with in order to take immediate action when losses occur.

Keeping with the theme of water damage, it’s highly recommended to consider an investment in wireless water detection technology. Wireless water detection is gaining tremendous popularity, and many of the top insurers are asking if HOAs have these installed as a proactive measure to identify potential leak sources before they exacerbate.

What’s often forgotten but remains important is the fact that HOAs and insurance companies are partners. In the first year of the relationship and every two to three years afterwards, the insurers are going to conduct a loss control and site engineering visit. HOAs and their board of directors need to take the recommendations outlined in their engineering reports seriously.

What future challenges do you foresee for both the insurance industry and HOA industry?

CAT losses are predicted to climb and continue given the climate change factors.

Continued litigation and large jury award settlements will continue to rise especially in states like California. In the near-term, especially for Habitational Real Estate (HOAs) risks, supply and demand will continue to be an issue with fewer new entrants offering adequate and comprehensive insurance solutions in the marketplace, which will put pressure on rates and pricing. There is a bit of price moderation happening, but the term used by property brokers right now is 10% increase is the new “flat.”

How can associations and the insurance industry best work together?

Mentioned previously, work with your insurers. They are your partners and have every incentive to mitigate their risk along

with your community’s. Work hand-in-hand with your broker, partner, and risk management team. Make sure that investments around risk management and safety are being communicated to your broker, so they can update your insurance partners.

As board of directors and HOAs, if your safety and risk management plan is outdated or needs to be created, that is a perfect time to partner with your broker and insurer to create proactive guidelines that can guide your HOA in navigating a loss event.

Lastly, communicate. Insurance exposures are continuous, and it’s important to communicate material changes that may reduce or increase the risk profile of your association.

Any final words of advice or encouragement to boards and their managers?

Document everything and consider your broker and respective insurance companies as an extension of your HOA (i.e., risk management division). The best practice would be to ask your broker to provide helpful data, so the board and managers can make educated decisions. Examples include valuation models, risk meter, soil, and flood reports, and Probable Maximum Loss (PML) studies to help identify earthquake exposures, etc.

Remember, when it comes to risk management, there is no such thing as a stupid question, and it’s important to have a strong and solid partnership with your risk management team.

Hamlet Vazquez, MCAM-HR, is the General Manager with Action Property Management, Inc., ACMC in Long Beach.

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FOUR SKILLS

THAT HELP MOVE OUR INDUSTRY FORWARD

By Scott Ford

T

here are benefits to having team members with diverse backgrounds.

When we say “diverse” we’re not only referring to race or gender; diversity also comes in the form of skills that team members bring to the table. This includes everything from their unique professional background to their personal attributes.

A good community manager, for example, wears many hats and plays a crucial role in keeping residential communities safe and sound.

Community managers work closely on tasks and decisions with HOA boards, making sure those tasks are completed and that everything is done in accordance with our state laws.

People who have gained skills from several experiences may know how to handle more difficult circumstances—and as any of us know, working with HOAs has its share of challenges and difficult situations at times. Having a team of exceptional customer service managers who are all diverse will make a difference in helping both customers and the company see all the options available to them.

As the President of California Builders Services, I work closely with community managers and developers as well as the state of California. We see this industry from a unique lens and realize the complex, nuanced role that a community manager plays.

Here are four skills that can come from diverse backgrounds and help in community management: 42

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1.

CUSTOMER SERVICE

Relationships mean everything in our industry— we must be great with customer service to meet the demands of the HOAs that we work with.

Customer service skills can be refined in many ways.

For example, someone with a retail background who has learned to deal with customers or demanding managers will learn valuable skills which can carry over and apply to overcoming hiccups or challenges as they navigate HOAs and community members.

A big part of customer service is learning how to be patient, show empathy, and listen. These are three crucial components of being a great community manager. Customer service entails being relational and building relationships.

Knowledge and expertise can be refined with time in the industry, but a successful career starts with the ability to connect at a human level.

Providing great customer service and finding people with these skill sets—whether it is from

retail, sales, marketing, or other areas—helps your organization grow lasting relationships with the communities you serve and develop future communities. When thinking about finding people with great customer service, broaden your horizons and look outside the box. You may be surprised at what you discover.

For example, you may find your next great community manager from the aviation industry.

Flight attendants must adapt to different locations when traveling, as all passengers come from different countries where they have their own rules, cultures, and lifestyles.

They also need to be extremely patient—as viewing one of those viral videos online of an unruly passenger would showcase. The transition from flight attendant to a community manager of an HOA may not be obvious up front, but people with great customer service can learn the industry, adapt, and leverage their previous experience to bring about a stronger industry moving forward.

4.

2.

COMMUNICATION

Adding to the first point, communication is also very important in community management. In many ways, being an effective communicator goes hand-in-hand with excellent customer service.

Community managers are in constant contact with HOA members and other key players in the industry.

When we’re developing reserve studies, we’re working closely with community managers every step of the way and those that are crisp, effective communicators help the entire process run smoothly.

Speaking clearly with eye contact and the correct body language—even when on a Zoom call—is important when communicating key messages

to HOAs. Additionally, having communication skills means that you are calm under pressure and think on your feet.

Several jobs can help produce these skills, such as TV journalists. These types of reporters must communicate with the audience to inform them of a current topic at hand. Remaining unbiased, clear, and poised is a prerequisite to delivering news.

Encouraging people with great communication skills to become community managers is helpful for our industry and for the HOAs that we all service. A good communicator can think on their feet and answer questions from board members efficiently and effectively.

3.

Being “numbers-oriented” and having skills such as knowing how to use or interpret a spreadsheet or software programs to keep track of accounts and budgets are very helpful.

Roles that consist of forecasting future budget requirements for contracts with third-party suppliers of

Creating tasks, scheduling meetings, and organizing events are other important aspects of community management. Staying organized and on top of new budgets through every phase of the project is essential for these types of professionals working on new developments.

Project management skills—such as balancing schedules and being able to keep up with lengthy to-do lists for numerous vendors—are crucial to the job. When community managers are able to remain organized and precise, it helps everyone involved in the HOA. Turn-around time is also important in this industry. Being able to respond quickly and getting the information you need when you need it demands extreme attention to detail.

Community managers need to be collaborative and flexible. They must find partners to work with who share these core values. While project management skills could come from a role as an actual project manager, the skills needed to manage projects

FINANCIAL KNOWLEDGE Although community managers don’t need to be full-fledged accountants, they still need to have adequate knowledge of finance—having a firm understanding of HOA budgets and helping the board make sound financial decisions is an important part of the role.

PROJECT MANAGEMENT

goods and services—this could come from several different places—would help in community management. Or, someone with an associate’s degree (or some training in accounting after high school) has the potential to be an excellent community manager, assuming they have the necessary communication skills to go along with it.

My path towards this industry was not a straight line. It was very much a meandering pathway. I spent time in the military and in law enforcement before finding my way into this industry. I love numbers and data, which led me to pursue my MBA and specialize in real estate finance.

with HOAs could come from elsewhere. For instance, someone working as a project manager for a marketing firm or website development company will need to do this to achieve successful ends.

This happened with us. Working as a general contractor, one of our key team members who was a project manager in the construction industry had to balance major construction projects. He balanced many different people, timelines, and budgets. That experience helped him create reserve studies for HOAs and now, manage every project we take on.

You can find project managers in other industries too. As an example, a grocery store manager balancing different departments, scheduling staff, and on top of it all, dealing with the changes in COVID restrictions over the past year and a half would know what it takes to work in a fastpaced, customer-facing environment with many moving parts. They would have the project management chops to take on responsibilities delegated over to HOAs.

When thinking about how to expand our industry, start with identifying people that have the skills discussed in this article.

Training them up to know the industry can help us develop a more diverse, well-rounded community of our own.

Scott Ford is the President of California Builder Services, a single-source consulting firm specializing in the services that homeowner associations and developers need.

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R U O Y s I t Wha

Cor

Once you’ve identified what you are great at, you gain the ability to diversify from that point onto tangents that fit your core competency and values.

By Scott Swinton

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p m o C e

I took an acting class in college, because I needed the credits. I was pathetic, and I still cringe at my interpretation of the prologue to Henry V – “Oh for a muse of fire…” As if remembering the lines wasn’t hard enough, emoting them was a burden almost too great to bear. I still recall a young man with the last name Peacock, no joke, self-confidently strutting about the stage. I met some nice girls in the class but was quickly drawn back to the blunt reality that I was only there for the credits.

? y c n e t e

What are you good at? You manage HOAs and a high rise in Oakland. You’re the owner of a management company. You’re a painting contractor. You’re a tech analyst with a 1% interest in an HOA and have been elected to the board of directors. Who are you? What are you? To borrow a phrase, what is your core competency?

At your core, who are you? You are the mother of three kids and a poodle. You’re a wife, chef,

“

This more robust list of roles may be closer to the truth, but when you boil yourself down to fond at the bottom of the pot, who and what are you? I sit here with my fingers hovering over the keyboard asking myself the same questions ripening in front of me. Who and what am I? I’m not going to go all Nietzsche and Freud on you, but the exercise is worth spending time on if you haven’t really sat back and asked yourself lately this basic question – Who am I? What good do I bring to the world around me?

Pause and partake in the exercise - or don’t, your call. But now that I have guided you in a direction where I want you to head, let’s take a short walk and chat about our industry for a little.

You, at your core, are not an HOA manager, receptionist, or business owner. You know this.

You feel this. When someone pigeonholes you as such, you instinctively reach out beyond the walls of the box and demonstrate that you have more nuance than that pigeonhole might suggest.

This is normal. You’re probably amazing, and possibly, I am too. But what’s this untapped potential hidden inside us at our core that makes us really amazing, and why hasn’t anyone seen it? Have I stumped you? If I have, then, it’s time for you to dabble into a piece by Jim Collins, Good to Great.

HOA managers, management company owners, and service providers alike need to stop and consider what Collins means when he says: “Good is the enemy of great. And that is one of the key reasons why we have so little that

“

taxi driver, and manager for an HOA management company.

Good is the enemy of great.

Few people attain great lives, in large part because it is just so easy to settle for a good life.

becomes great. We don’t have great schools, principally because we have good schools. We don’t have great government, principally because we have good government. Few people attain great lives, in large part because it is just so easy to settle for a good life.”

In directing us towards greatness, Collins addresses my previous question of “What is your core competency?” or rather “What is your “one big idea?” Collins calls this your “hedgehog principle,” and I’ll let you read his book to learn where that truly manifests from.

But for now, ask yourself this: Without all your fur and feathers, what’s the one definite characteristic that remains as the final you, your core?

With your feathers and fur stripped, all that remains is your core confidently and defiantly facing you. Bring it to the board meeting. Let it sign up for the next event. Let that core find employment, relationships, an artistic outlet, or the joy where it longs to be.

Interestingly enough, you may find that your defiant core was rather clever all along and has been sitting right where it desired to be, employed where it wants to work and living where it wants to live. You may be right where you should be but ready for an awakening or unburdening, or you may just have some plumage to offload.

If this is you, listen up! It’s time to go be amazing within the industry that you’re already intimate with. Are you a coach? Align yourself with a management company that loves to coach their clients. Do you prefer to be more executive? Align yourself with a management company that directs their boards more

formally. Are you a leader? Start a management or service providing company or lead from your swivel chair.

Only after you define your own core principles can you begin to confront the topic of this issue. Diversity. Diversity, you say? I thought we were trying to boil ourselves down to the core over here. How does diversity work from the fond at the bottom of the pot?

Beautifully, that’s how. Once you’ve identified what you are great at and can define who you really are, you gain the ability to diversify from that point onto tangents that fit your core competency and values. You will add accoutrement to your work and life which complements your core rather than confusing it. You won’t be as tempted to take on projects which seem good but don’t seem to fit into the stream of what you can make great.

“How do I become really amazing?,” you might ask. Start by sorting through the expectations and obligations that you’ve been peddled, and ask yourself once again the hard questions, “Who am I?” and “What am I?” When you feel like you have reached the answer, realign what you do based on your new understandings. Afterwards, branch out and then along the way, teach someone else how to be really amazing too.

Scott Swinton is the General Contractor and Certified Construction Manager at Unlimited Property Services, Inc.

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Diversifying Through Project Management Having dedicated project managers on staff is a growing trend at management companies. What are the benefits and is this business model worth a try?

By Dean Jackson, CCAM-HR

A

s management companies continue to strive to differentiate themselves from the competition, the services that they offer have started to become more diverse and specialized. This diversity and specialization can provide unique services to HOAs and can provide more efficiency and uniformity inside a management company.

A newer trend, one that you probably haven’t seen even a decade ago, is management companies having project managers on staff or even having a project management division.

Throughout our industry, the community association manager usually manages the various projects in their portfolio of associations or in the case of a General Manager, at a single association under their care.

For example, at any given time a manager may have two siding projects, a roofing project with several water intrusion issues and a paving project.

This variety of work will make an experienced manager into also a

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good project manager in their own right, and this model continues to be the norm. This model can also monopolize a manager’s time, take away from the day-to-day management of the community, and in some cases, cost the association more in billable management hours.

Project management can easily be confused with construction management, but while related, they are not the same thing. While the construction manager is a trained professional focused specifically on the construction portion of the project, the advent of in-house project management services allows the project management staff to carve out some of the responsibilities and tasks that are normally on the community manager’s plate.

These responsibilities and tasks are focused on the overall project from inception to planning and budgeting and finally to the final piece, construction. This transfer of responsibilities from the community manager to the project manager can benefit the community association managers, management company, HOA, and homeowners.

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So what are the benefits of having a project manager or project management division?

BENEFITS TO THE MANAGER When the manager’s project load is lightened, they can be less stressed and focus on their service to their client. They may even have the bandwidth to take on additional clients.

BENEFITS TO THE CLIENT Associations will have a more focused manager with more time to respond to emails and calls and a greater attention to detail. The client also benefits in situations where the project may require the management company to bill for hours.

As the project manager or the project management division repeatedly work on similar projects for many associations, they develop templates, shorthand communication with contractors and construction managers, and processes which save (billable) time, increase efficiency, and result in more uniformity, quality control, and better communication.

The managers no longer need to constantly reinvent the wheel.

BENEFITS TO THE INDIVIDUAL HOMEOWNER The project manager has the capacity to work with the homeowner, as do the manager and the contractor as well to come up with solutions to issues, often with more consistent and compassionate communication.

This can bring confidence and assure homeowners that things are being addressed and that they have a line of communication when things might not have been addressed properly.

BENEFITS TO THE MANAGEMENT COMPANY The managers may have the time to manage larger portfolios and bring in more revenue. Projects throughout the company are of uniform quality, and additional revenue can be generated through the billable hours on those projects that the community managers may not have had time to address. The company also has a service that they can market to prospective clients.

ADDITIONAL BENEFITS The project management professionals within a management company are typically more available than the managers for special projects. The

team can be collaborative, teaching and learning from each other, with each person knowing all the systems.

This is an “iron sharpens iron” situation where each person makes the team greater than the sum of its parts. There is also accountability, both to the client and the company. If projects are suffering or successful, it is easy to shine a light on the reasons as to why.

Companies can consider whether this approach will be a benefit to their individual team of managers.

While project management has a growing role in management companies, it is far from common and may not be right for every company.

It’s one of the many ways that companies can diversify their services for their own benefit along with the benefits of their employees and clients.

Special thanks to Stephanie Silver of Collins Management, ACMC, for contributing to this article.

• Would the managers prefer to continue under the normal model or would they see value in a new approach?

• Would the company be better served by hiring a project manager who comes from the construction industry or one who started as a manager and has an understanding of the HOA’s perspective?

• Is a single person (and maybe an assistant) appropriate or does the size of the company justify growing the project management services into a division?

Dean Jackson, CCAM-HR, is the Director of Project Management at Collins Management, ACMC.

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ENVIRO VIEWS TAKES THE NOISE OUT OF LANDSCAPING

By Ryan Kwon, Communications Manager, CACM

A

s technology advances, machinery that wasn’t thought to be possible charged its way into modern-day reality. In October 2021, Governor Gavin Newsom signed a new law that would outlaw the sales of gas-powered lawn mowers, leaf blowers, and chain saws as early as 2024, but one landscaping business is already one step ahead, Enviro Views, Inc. Enviro Views is a landscaping business with over 50 years of collective maintenance experience. What sets this landscaping business apart from the others lies within its equipment. Instead of running on gas, all pieces of their equipment run fully on electricity.

During the pandemic, Armando Vega, CEO of Enviro Views, would come home during lunchtime to see his wife who worked from home as a realtor and his kids who were attending classes virtually, but every one of his visits were greeted with the roaring sound of a leaf blower from outside of his closed window. He then gained the perspective of this is how him and his team sounded to his clients and realized it was time for a change.

Vega researched further into the sound issue and confirmed from various property managers that the number one complaint from the Bay Area HOA communities is how loud the leaf blowers are. This newfound knowledge ultimately led him to launch Enviro Views as a zero-emission service.

Within the landscaping business, there’s a lingering stigma of electric-powered equipment being weaker than gaspowered equipment, so there was some hesitation within Vega’s team at the start of his business’s conversion to zero-emission equipment. But after using the new equipment and realizing the miniscule to non-existent power gap between the electric-powered and gas-powered equipment, his team adapted quickly to the transition and became very efficient in managing the battery life of the new equipment throughout the day.

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According to Yale University, the United States alone annually uses around 600 million gallons of gas for lawn mowing, estimating about two gallons of gas for every man, woman, and child or five gallons per household.

Some of you might ask, “Transitioning to zeroemission is great and all, but what does that have to do with mitigating the earth shattering noise HOAs are complaining about?” I’m glad you asked. The main difference in sound between gas-powered and electric-powered equipment is frequency. With the gas-powered equipment, you’ll notice more of a low frequency, the rumble, bass, and air-puncturing sound, emitting from the equipment. On the electric-powered side, you’ll hear more of a high frequency, which holds virtually none of the annoying qualities that its counterpart does and functions much more quietly.

After over a year of transitioning to a zero-emissions service, Enviro Views is now working on releasing a new product called the “Zero-Emissions Division.”

This new product has been in development since the start of their transition and has seen several stages of improvements:  It first started out as an enclosed trailer that held all the essential electric-powered landscaping tools (lawn mower, line and hedge trimmer, leaf blower).  It later evolved into a trailer with the functionality of both a charging and storage unit in its second revision.

Rene Vega Armando Vega

 In its third and current revision, it has become more compacted, practical, and efficient in its charging and storage space.

Enviro Views is currently working on its fourth revision of its new product which will have a completely new design and be even more compact and efficient than the last.

Armando Vega is the CEO of Enviro Views and has more than 25 years of experience as a landscaping contractor. Enviro Views is located in Richmond, but the company also provides service in the greater Bay Area from San Francisco to Brentwood, Oakland, and Vallejo.

Ryan Kwon, Communications Manager, CACM

!

S R E B M A LL ME

G N I L L A C Serve on Vision’s Editorial Advisory Committee Do you have a knack for and enjoy writing?

Do you have time for a one-hour meeting a month? Then consider joining the editorial committee for Vision Magazine, published quarterly.

Help shape editorial content and write articles for THE industry trade publication for the California community management industry. As a committee member you will: • Learn what’s transpiring in our industry • Showcase your gifts and receive the recognition you deserve • Positively impact the industry INTERESTED? Email Lynette Bertrand, Director of Marketing & Communications, at lbertrand@cacm.org. cacm.org | Vision Winter 2021

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FIGHTING

Scope Creep Getting a handle on services and time spent on your clients helps you grow profitability and retain your managers.

By Lynette Bertrand, Director of Marketing and Communications, CACM

Profitability is hard to come by these days. Boards and associations want more services, but they’re also looking for bargain basement prices and often shop around to find them. This has put an increasing amount of pressure on management companies that find competition to be only getting fiercer by the day. This is affecting all areas of their business from hiring and paying staff to keeping them to operating a profitable business.

But one thing that’s overlooked often in this scenario is scope creep and its impact on the bottom line. What is scope creep? In short, it’s overservicing a community. It’s not billing for services offered beyond the scope of the management contract — not charging for overtime, and it happens to the best of them.

the same size or share enough business similarities.

“Overservicing a community is the biggest issue and one of the hardest to get in check,” Balkcom said. “When does customer service go too far? In what ways has scope creep been damaging to your company?”

What’s all too common is for community managers to spend too much time on certain properties, beyond what is specified in management contracts. This not only eats at profitability, as managers don’t bill for this extra time, but also results in manager burnout with many feeling they have too much on their plate or not enough time to get their job done.

Balkcom said it comes down to finding the balance of

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Adam Balkcom, Senior Vice President and Consulting Manager for Association Prime powered by Southstate Bank, said that scope creep is one of the key challenges that comes up and is tackled during meetings of CEO groups that he has formed and leads. These groups are made up of owners and executives of management companies from across the nation, who meet monthly to address diverse business challenges from hiring and retaining staff to training to building company culture and vision, business development, and yes, profitability.

offering great service while also operating a great company.

That means holding boards and managers accountable to adhere to the scope of work.

Balkcom was hired by Association Prime to consult with and help grow HOA clients’ businesses and launched the first CEO group more than two years ago. Now he facilitates three groups, soon to be four. Groups are carefully assembled to ensure members are able to exchange ideas

While profitability is not an exact science and can be quite subjective, there are ways to help measure and improve this metric. One key way is to review contracts and ensure that not only the communities and boards are aware of what is covered in them, but also the manager so that they can

with others who are not direct market competitors but are

communicate when boards ask for time and services that

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“You can’t be the low-cost leader and the high-service leader,” he noted. “If you’re going to be the Mercedes Benz of HOA management, then you will need to build more time, services, and cost into the contract. But if you’re going to be low-cost leader, then you have to be very tight on the contract. There is a cost to offer a service.”

“You can’t be the low-cost leader and the highservice leader. If you’re going to be the Mercedes Benz of HOA management, then you will need to build more time, services, and cost into the contract. But if you’re going to be low-cost leader, then you have to be very tight on the contract.

There is a cost to offer a service.” go beyond what they are contracted to provide.

Balkcom recommends that a short, one-page version covering the scope of work be drafted, so it’s easy for a board and manager to refer to. Then it’s making sure that the entire company is aware of scope creep and ways in which it happens.

“Holding boards and managers accountable for the scope of work frees up managers to take up properties and also helps companies not lose managers, because they’re burnt out,” he said.

In one of the CEO groups, guest speaker, Cat Carmichael with Strategy 1-2-3, trains group members on how to do Contract College with managers on a regular basis. It involves picking terms in the contract and making sure everyone understands what they are. The group also talks about tactics to keep boards in check and manage communities based on these agreements.

Companywide discussions and education about scope creep are important, as well as reviewing how much time managers are spending with clients to ensure that it’s within the range it needs to be. By reviewing regularly, problems like too much time can be detected and resolved by either changing processes to increase efficiency or billing for that service. Also, educating managers on ancillary ways the company can bring in revenue by providing an additional service or product.

Management contracts must be brushed up every few months to a year and also need to be part of the training and discussion for onboarding new managers, who may not know what your contract is, as well as new board members, who might not be familiar with the contract.

Balkcom calls scope creep the hidden enemy that lurks and must be kept in check constantly.

“Price of management services has been flat for years and in many areas, is trending down while payroll costs continue to increase, so you have to make sure how that person is using their time is very efficient,” Balkcom said.

Aside from keeping a tight handle on the scope of work, companies also need to evaluate properties and whether they are contributing to the bottom line, and sometimes, that involves making some hard decisions. If a particular community isn’t profitable, it may mean letting them go. This requires a change in mindset – from growing through addition of doors to growing through retaining and maintaining profitable clients.

“There needs to be a shift away from taking pride in the total number of communities under management to the overall profitability of your portfolio,” Balkcom said. “Midsize companies don’t want attrition, but you have to be willing to let go of communities that are not profitable and burning out your managers. Take a short break from adding communities and take some time to focus on making what you have more profitable.”

Adam Balkcom

Bring the Board Around to Change So how do you bring the board around to stick to a contract when you’ve been overservicing for some time?

Balkcom offers these ideas: Sit down with board and review scope of work and current contract.

Show the gap – what’s been provided above and beyond the contract.

Invite the board to be part of the process or solution by forming a committee to take on the scope of work or paying for the management company to provide the service.

Start invoicing for the additional work but zero it out to show the service provided for free this time but will be charged for next time.

Lynette Bertrand, Director of Marketing and Communications, CACM

Bring in leadership to have those tough conversations with the board.

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21

October 4, 20

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Thank You Sponsors Premier

SECURITAS Security Services USA, Inc.

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Steve Tinnelly, Esq. Tinnelly Law Group Charles Fenton, Esq., Fenton Grant Mayfield Kaneda & Litt, LLP Mike Perlof, Fenton Grant Mayfield Kaneda & Litt, LLP Sarah Basko, CCAM, Powerstone Property Management, ACMC

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Scott Sakai Spencer Edgett, Esq., Chapman & Intrieri Kristen Raig, CCAM, Rolling Hills Community, Assn.

Scott Collins

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Fairmont Sonoma Mission Inn & Spa October 7 - 8, 2021 Sonoma, CA High rise and large scale managers escaped to the beautiful wine country for two days of networking and learning about the challenges of managing these specialized properties, as well as how to lead during chaos from sessions led by experts with experience in operational and fire safety.

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THANK YOU SPONSORS PREMIER SPONSOR SESSION SPONSOR

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