Community Contact | Spring 2019

Spring 2019

Community

CONTACT A Resource For Homeowners Associations, Condominiums, Townhomes, and Cooperatives

Featuring: *Tax Exempt Status for your Associations *The Price of Insurance vs. the Cost of Insurance www.dfwcai.org

Protecting your largest investment and your peace of mind for years to come?

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The most successful associations know that fair governance, responsible budgeting and community maintenance are the cornerstone of sound community management because they understand that focusing on these core initiatives is vital to protecting—and even raising—the value of their largest investment: their home.

It takes more than just a provider to deliver the core services and customized solutions necessary to keep a community functioning at the highest level – it takes an experienced partner.

Associa’s national resources and local expertise have uniquely positioned us to help you accomplish your community’s goals. Top-tier management, bulletproof finances, comprehensive maintenance and a customizable menu of additional services ensure your community thrives, and our local, qualified team members are committed to being your trusted advisors every step of the way. You deserve a team that has seen it all and is ready to help your community achieve its vision.

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More members of the College of Community Association Lawyers than any other law firm in America

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A Full Service Community Association and Business Law Firm Aggressive Enforcement | General Counsel | Collections | Construction Defects Litigation/Insurance Defense | Free Education | Legislative Advocates

Austin | Dallas | San Antonio Arizona | California | Colorado | Texas | Utah

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Serving The Metroplex For Over 90 Years

Hail Season is coming!

Make sure you & your roof are prepared.

Stay on top of your roof’s maintenance and care.

Storm season is approaching - severe storms, hail, and high winds can wreak havoc on your roof. Classic Construction is there for you and will respond immediately with the resources and expertise to handle any size disaster, residential or commercial. We also offer a range of restoration services to accommodate all your other restoration and construction need.

No matter what storms may bring, Classic Construction’s got you - and your home - covered!

Give us a call for a free estimate or more information.

406 South Yale Drive Garland, Texas 75042 ClassicConstruction.com 972.437.0909 2 • CONTACT, SPRING 2019

Community

CONTACT

Spring Cleaning and Reserve Study Upkeep

12

Hail Damage and You: The Texas Hail Season

14

Fresh Thoughts: The Latest Tips, News and Resources

16

The State of Neighborhood Security

19

The Benefit of Updating Your Reserve Study Annually

20

Tax Exempt Status for Your Association

22

The Price of Insurance vs. the Cost of Insurance

28

How to Prepare for Mosquitos, Flees and Ticks

32

Give Your Community a Pool Checkup

36

2019 Upcoming Events

38

North Texas Food Bank Day

46

Membership Report

50

By Andrew Stoutenburg. PE, RS Reserves Advisors

by Classic Construction

by Complete Landscuplture

by Flock Security

by Elon Goldman, RS, President Association Reserves

by Dan Estep, CMCA, AMS Association Manager RTI/Community Associations, Inc., “CMA”

by Joel W. Meskin

by Lee Woodham

by Amy Dillard

Community Associations Institute is a national, non-profit, membership organization dedicated to the successful creation and operation of community associations. The Dallas/Fort Worth Chapter was established in 1980 to provide support for the North Texas area. Community Contact is published by the Dallas/Fort Worth Chapter of Community Associations Institute and is issued with the understanding that the publisher is not engaged in rendering financial, legal, accounting or other professional services, or be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services by Community Contact or its authors or advertisers. The services of a competent professional should be sought where professional services are required. The articles appearing in Community Contact do not necessarily reflect the opinion of CAI or the DFW Chapter, and acceptance of advertising does not constitute an endorsement of the products or services.

All contents of Community Contact are protected by copyright. Reproduction in whole or in part without written permission is expressly prohibited. AAMC, AMS, and PCAM are registered trademarks of Community Associations Institute. CMCA is a registered trademark of the Community Association Managers International Certification Board. Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Use of a term in this publication should not be regarded as affecting the validity of any trademark or service mark.

2019 BOARD OF DIRECTORS PRESIDENT Bruce Crawford, AMS, PCAM Insight Association Management, AAMC bcrawford@insightam.com PRESIDENT-ELECT Kevin Cavanaugh Cavanaugh and Company, PLLC kcavanaugh@cavanaughcpas.com VICE PRESIDENT Anne Bernhardt Park Towers Condominium Association anneb972@gmail.com SECRETARY Chris Broach, CMCA, AMS, PCAM SBB Management, Company, AAMC c.broach@sbbmanagement.com TREASURER Robin Anderson Reconstruction Experts, Inc. robina@reconexp.com DIRECTORS Clayton Hearn Roberts Markel Weinberg Butler Hailey, PC chearn@rmwbhlaw.com John Shaffer john@summitparc.com Worth W. Ross, CMCA, AMS Worth Ross Management Company, AAMC worth@worthross.com

MANAGEMENT James Nicholson, Chapter Executive Director DFW Community Associations Institute 14070 Proton Road, Suite 100 Dallas, TX 75244-3601 (972) 246-3540 www.dfwcai.org office@dfwcai.org

2019 DFW CAI Chapter President Bruce Crawford, AMS, PCAM Hopefully you were able to attend TCAA Rally Day this year. I would like to think all those who went down to Austin to represent the industry and the local chapter. We had over 70 people in attendance. In addition to the rally day, we had over 100 people volunteer to serve at the local food bank. It’s always great to see so many in the chapter giving back to the community.

We have several other exciting events coming this summer as well as many educational opportunities. I hope everyone is able to participate and take advantage of what the chapter has to offer.

I would to announce something new that chapter is working on this year that I think will be a great addition to our many successful events that we currently have. The Chapter has created a Gala Committee. This committee will be organizing an evening awards gala where we will be able to recognize those in our industry for their many contributions and successes. It is anticipated that the first gala will be held in the first quarter of 2020. Please stay tuned for further updates on this new event.

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THANK YOU TO OUR 2019 ANNUAL SUPER SPONSORS!

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2019 ANNUAL SPONSORS Diamond Sponsors

Gold Sponsors

BB&T Association Services Davis-Dyer-Max, Inc. Yellowstone Landscape Henry Oddo Austin & Fletcher, P.C. Inspections ‘R’ Us Masix Construction Pavecon, Ltd. RealManage South River Restoration

Paul Baker Insurance Company Castle Group CCMC, AAMC CertaPro Painters RTI/Community Management Associates, Inc. “CMA”, AAMC Insight Association Management, AAMC Kilowatt Partners McKenzie Rhody, LLP Neighborhood Management, Inc., AAMC Roberts Markel Weinberg Butler Hailey, PC Texas Disaster Restoration

Silver Sponsors

Bob Owens Electric Co., Inc. Cornerstone Association Management Services Excel Association Management, Inc., AAMC Riddle & Williams, PC Union Bank

Platinum Sponsors

Bronze Sponsors

ACME Roof Systems, Inc. Alliance Association Bank Benson Kerrane Storz & Nelson Blackmon Mooring / BMS CAT Brightview Landscape Services Five Star Pools Globus Management Group Magnolia Fisheries and Lonestar Fountains Mutual of Omaha Bank Pavement Services Scarbrough, Medlin & Associates SOLitude Lake Management Timothy, DeVolt & Company, P.C.

Advanced Association Management, Inc. Allegra Marketing Print Mail Canady & Canady, PC Cavanaugh & Company, PLLC Classic Property Management, AAMC Horizon Security Kraftsman Playground and Park Equipment Master Systems Courts SBSA, Inc. Education Sponsors

Education Sponsors

Classic Property Management, AAMC HomeAdvisor RBFCU Southern Botanical

This “Deep In The Heart of Texas” logo recognizes our Business Partners who are a part of all four CAI Texas Chapters.

2019 DFW CAI COMMITTEES Ambassadors of Fun

High Rise Managers Forum

Community Affairs

Magazine

Expo

Membership

Committee Chair: Olivia Hurtado, CMCA

Committee Chair: Wendy Hazlewood

Committee Co-Chairs: Olivia Hurtado, CMCA & Cindy Martin, CMCA, AMS, PCAM

Golf Tournament

Committee Chair: Jeff Higgins

Committee Co-Chairs: Kathy Epperson, PCAM and Matt Kopchak

Committee Chair: Betty Crudden, CMCA, AMS, PCAM

Committee Chair: Cindy Martin, CMCA, AMS, PCAM

Programming

Committee Chair: Beverly Coghlan, CMCA, AMS, PCAM 77••CONTACT, CONTACT,SPRING WINTER2019 2019

retail | office | mixed-use | multi-family | civic | education healthcare | lodging & hospitality

www.cleanscapes.net | info@cleanscapes.net 8 • CONTACT, SPRING 2019

9 • CONTACT, SPRING 2019

Professional Service in Custom Pools, Outdoor Living, Pool Repair, and Ongoing Maintenance Robert’s Pools offers an entire suite of services surrounding your backyard or commercial pool needs.

Whether you’re interested in getting a new pool to suit your needs and budget, or simply want a care-free maintenance plan for your existing pool, we are here to take care of your every need. Our mission is to provide the best possible service to our customers making pool ownership easy and rewarding!

Customer Service/Accounting/Employment accounting@robertspoolservice.com General Any Questions, Requests, or Concerns rps@robertspoolservice.com After Hours Pool Emergency Line: T: 972.345.2511 www.robertspoolservice.com

10 • CONTACT, SPRING 2019

455 S. Railroad St. Lewisville, TX 75057 T: 972.436.0360

People are our passion.

Communities are our service.

Teamwork is our focus.

Access Your HOA - Anytime, Anywhere

AAMC®

Find us on

Accredited Association Management Company

8360 LBJ Freeway, Suite 300 • Dallas, TX 75243 • Phone (972) 960-2800 • Fax (972) 991-6642 www.sbbmanagement.com • emailus@sbbmanagement.com

11 • CONTACT, SPRING 2019

Spring Cleaning and Reserve Study Upkeep

By Andrew Stoutenburg. PE, RS Regional Executive Director Reserves Advisors

With 2018 behind us, our budgets are finished, we’re recovering from the holidays, and bluebonnets are ready to bloom. As much as we’d like to take a break, we all know that being a community manager or board member requires hard work yearround. Spring cleaning doesn’t just apply to our homes, but also our reserve studies.

Whether your community’s reserve study was just completed or is a number of years old, the beginning of the year is a great time to review the report and see what it tells you.

1. Will the common element last until the planned date, or does it possibly need to be accelerated? (again, consult with your specific vendors for their input) 2. Would it make sense to accelerate the replacement to coordinate with other projects? (an example would be accelerating replacement of the pool furniture to coordinate with a new plaster finish at the pool) 3. Do we have the reserve funds necessary to pay for this project earlier than initially planned?

Old study, new projects

When to update

A reserve study provides a community with a great roadmap of their upcoming capital projects and typically is updated every three to five years. That means, even as a reserve study is becoming dated, it provides valuable information to help guide an association’s decisions. There are three different ways an older study should be examined.

A common question asked of a reserve specialist is “When do I need to update the reserve study?”. It’s a simple question, with a challenging answer, and the quickest way to make a reserve specialist sound like a lawyer with their response of “It depends”.

First, take a look at what projects were expected to be completed. As an example, if your reserve study was completed in 2016, you’d want to take a look at what was projected to occur in years 2016, 2017, and 2018. If these projects did occur, great!

You can use the reserve study estimate of costs to compare against what the actual project costs were. This information will be extremely valuable when updating your study, as the reserve specialist can incorporate these true, actual costs to improve future projections. However, you will likely also find projects identified in these past years that did not occur. Hopefully, they didn’t occur because the common elements were in better condition than expected and didn’t need replacement, and not simply overlooked. Regardless of the reason, you’ll want to take a closer look at these skipped projects and make a determination as to whether they should be budgeted for the near-term, possibly even this year, or deferred into the future.

After finishing the review of prior years, you’ll want to review the current year and identify any planned capital projects. Similar to the projects depicted in past years, you’ll want to make a determination if the project needs to be completed.

Remember, a reserve study provides you with a roadmap, or general guideline for the future, but you as a community manager or board member need to take into consideration as much information as possible prior to embarking on a large capital project. Some questions to ask include: 1. Is the common element truly at the end of its useful life, and in need of replacement?

2. Do your vendors agree the element needs replacement, as they commonly are the most familiar with the element? (pool vendor, roof contractor, etc.)

3. Do we have the reserve funds necessary to pay for this project?

4. Has the association been following the funding amounts recommended in the reserve study?

5. Has the association incurred any unplanned expenses in prior years that have reduced the available funds for this project?

Finally, take a look at upcoming projects depicted in the reserve study. Typically, looking out over the next three years is a good window. If, while reviewing years 2020, 2021, and 2022 in the reserve expenditure schedule, you identify planned projects, you’ll want use a similar review process as above, but evaluate these projects from a slightly different perspective: 12 • CONTACT, SPRING 2019

However, that’s the best answer that can be given in a broad context. If we look at the prior advice in this article, we see that there are many moving parts to a reserve study: projects planned don’t occur, projects not planned do occur, funding contributions are lower than anticipated, replacement costs are higher; the list goes on and on. Management best practice is to update every three-to-five years.

If you review your reserve study for the points mentioned earlier, you can typically identify a logical time to consider getting an update. A few pointers of when it’s best to target a reserve study update: 1. Either before or after major projects are completed. (roof replacement, road repaving, etc.)

2. If large projects have been accelerated, the sooner an update is performed, the better. This is due to the accelerated cash-flow likely having a significant impact on funds available for subsequent projects.

3. If the funding levels have significantly departed from your reserve study’s recommendation, the sooner an update is performed, the better. You are more likely to experience a shortage of funds once large capital projects are encountered, and the sooner a reserve study update is completed, the more time the association has to get back on track with proper funding levels.

All too often reserve studies are completed to address an association’s immediate need. Examples of this include, but are not limited to, fulfilling requirements to obtain a construction loan or to determine funding needs to address critical projects that were recently deferred. Maximizing the ROI of your reserve study requires regular engagement to help guide your board in making the best decisions for the association’s future. As your current reserve study becomes another year older, consider the volume and significance of the changed made over time and consult with your professional reserve specialist to discuss your update needs, ensuring they realign your long-term goals with adequate funding.

Andrew Stoutenburg is Reserve Advisors’ West Regional Executive Director. Since joining the company in 2013, Mr. Stoutenburg has received and currently holds his Reserve Specialist (RS) designation along with his Professional Engineering license in Texas, Arizona and Florida. He has worked with community association managers and board members across 15 states and the District of Columbia to prepare more than 350 comprehensive reserve studies, which serve as a key part of their associations’ long-term planning process. He can be reached at 512-906-0745 or andrew@reserveadvisors.com.

13 • CONTACT, SPRING 2019

Hail Damage and You: The Texas Hail Season

Texas storm season is upon us, and with that comes hail and hail damage. Hail is often underestimated as to how much damage it can cause. It has the same damaging effects as someone throwing rocks at multiple areas of your home, so don't treat hail damage lightly. If not treated correctly and quickly, it could have lasting effects to your home.

What Exactly IS Hail?

Hail forms when thunderstorm updrafts are strong enough to carry water droplets well above the freezing level. This freezing process forms a hailstone, which can grow as additional water freezes onto it. Eventually, the hailstone becomes too heavy for the updrafts to support it and it falls to the ground, sometimes causing slight to severe damage.

How Do I Know If I Have Hail Damage?

When there is a fear of hail damage, every homeowner needs to look for some of the telltale signs of hail damage. This can range anywhere from the most obvious, such as leaks caused by holes in the roof, to the smallest dings and dents in your gutters.

One tip that Classic Construction recommends is that if you don’t have a way to see if you have hail damage to the roof of your home, check other areas to see if they are affected. Some areas you can easily check are: -

Window panes Drainage systems and gutters Outdoor patio and/or furniture

If these areas suffered hail damage, it’s a safe bet that you may have some damage on your roof. It’s better to be cautious now, rather than have a leak when the next storm rolls through.

I’ve Got Hail Damage. What Do I Do Now? It is highly recommended that you call a professional, such as Classic Construction, to come and assess the damage further. While there are telltale signs of hail damage, it can be more extensive than you think. For example, with roof damage, there is risk of having water damage inside of the roof or the walls of your home if not addressed immediately.

But don’t worry: Classic Construction is a team of trained professionals who are prepared for this year’s hail season in Texas. So, if you think that you have hail and storm damage to your home or property, give Classic a call.

14 • CONTACT, WINTER 2019

DISCOVER THE NEIGHBORHOOD DIFFERENCE NMI is an Accredited Association Management Company that has been expertly managing a variety of community associations, including master planned, single family, condos and townhomes, in the DallasFort Worth metroplex for nearly two decades.

We are dedicated to building better communities!

NeighborhoodManagement.com NMI@NeighborhoodManagement.com Beverly Coghlan, CMCA, AMS, PCAM Beverly@nmitx.com 972.359.1548 15 • CONTACT, SPRING 2019

FRESH THOUGHTS The latest news, tips and resources just for you

By Complete Landsculpture

Planting Time We often get asked “When is the best time to plant trees or shrubs?” With the climate in North Texas we can plant year-round; any time is a good time to plant. We also know that we live in North Texas and never know what mother nature will throw at us each summer. If I had to pick a time of year that I recommend, it would be spring. Now is a great time of year to plan any landscape improvements so the plants are in early. This is great for the plants but also allows you to enjoy your investment all summer long.

Irrigation System Checks and Repairs Just like your air conditioner, when you need it most it seems to break down.

The same for your irrigation system. Don’t delay on getting the irrigation system checked and make any of the recommended repairs. We all know how valuable and expensive water can be so let’s not waste it. In the heat of the summer licensed irrigators are busy working from sun up to sun down. It can be a challenge to get any repairs done quickly.

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Summer Flowers

March Landscape Task

My favorite time of year. Warmer temperatures, lots of sunshine and beautiful flowers everywhere. It may seem early to most people but the time of year to plan your summer color is now! Growers only produce a set quantity of flowers and when they are gone we need to wait for the second crop, which could be weeks. If we plan in advance and get our orders in early, we get the best selection of flowers and don’t have to wait for the second crop. We like to start planting our summer color in April. That’s right around the corner. If you’re like me and can’t wait, there are flowers that can be installed for the spring. They typically are flowers that don’t like the heat so when summer arrives they need to be replaced with something that can take the heat. There are many varieties of flowers available and new colors that come out every year.

Preparing your landscape for the upcoming season begins in the winter. Here are a couple of key tasks to make sure are done before the end of March.

• • •

• •

Pre-emergent applied to the turf to prevent those weeds from popping up in the summer.

This needs to be done by mid- March Lower the mower height slightly to remove the winter killed brown stubble.

This allows sunlight to warm the ground a little quicker which in turn will help the lawn green up a little quicker.

Finish any dormant season pruning. Prune ornamental grasses back, roses should be trimmed (except climbers) about 50%. Shade trees- any broken or crossing branches as well as any branches hitting the building. Do not top Crape Myrtles. Spring flowering plants should be trimmed right after they finish flowering.

Trim any ground covers (Asian Jasmine and Liriope) to remove winter browning on the tips.

March and April are a great time to fertilize your trees. Trees begin to push out new growth in the spring and greatly benefit from the added fertilization. We prefer an organic fertilizer for your trees and shrubs. Contact us and

17 • CONTACT, WINTER 2019

What does it mean to be Board Certified?

“Within the Texas legal community, Board Certification means an attorney has substantial, relevant experience in a select field of law as well as demonstrated, and tested, special competence in that area of law.” - Texas Board of Legal Specialization

103,342 Licensed Attorneys statewide 7,406 TBLS Board Certified® attorneys statewide 266 TBLS Board Certified® Residential Real Estate Attorneys statewide, 9 at RMWBH 32 TBLS Board Certified® Property Owners Association Law Attorneys statewide, 7 at RMWBH

Rick Butler

Marc Markel

Clint Brown

Clayton Hearn

Cliff Davis

Brady Ortego

Rahila Sultanali

Sipra Boyd

Jane Janecek

Is your attorney board certified? *Statistics courtesy of State Bar of Texas Membership: Attorney Statistical Profile (2018-2019) and Texas Board of Legal Specialization Active Certificicates of Special Competence by Area by Year

Houston | Fort Bend | Austin | Dallas | San Antonio

18 • CONTACT, SPRING 2019

Call us at (214) 365-9290 or visit www.rmwbh.com

The State of Neighborhood Security

By Flock Safety

People don’t often think about neighborhood security until it’s too late. While property crime has been decreasing over the last decade, it’s still the top-reported crime in the US.

communities with a false sense of security.

Some estimates say one burglary occurs every 13 seconds in the US. However, because there is no witness or little actionable evidence in property crime cases, police can only solve 13% of property crimes reported.

one Property Manager we spoke to at a recent event.

What is property crime?

According to the FBI, property crime includes offenses that damage property or involve theft without an explicit threat of violence against victims. Some of the top property crimes include the following: • • • • •

Burglary (entering with the intent to commit a felony) Home theft Motor vehicle theft Illegal dumping Vandalism

Researchers from UNC Charlotte interviewed ex-burglars and published a study that provides some insights into habits and motivations of burglars--and what deters them.

A Jacksonville State University study found that most home invasions and burglaries take place during daylight hours when people are at work and school.

Most commonly, home burglaries occur between 10 in the morning and 3 in the afternoon.

If a burglar wants to get into your house, he or she will find a way. Most of the time they’re not “breaking” anything at all. Unlocked back doors or windows, easy to open garage doors, pet access doors, etc. all provide easy access.

Burglars are most attracted to homes that do not have home security systems in place. The UNC study concluded that,

“When selecting a target, most burglars said they considered the close proximity of other people - including traffic, people in the house or business, and police officers; the lack of escape routes; and signs of increased security – including alarm signs, alarms, dogs inside, and outdoor cameras or other surveillance equipment.”

What Can Property Managers Do? Many property managers we’ve spoken to have said they’re hesitant to provide security or surveillance solutions to neighborhoods because they feel like it provides

“I don’t want my neighborhoods to leave their fronts doors unlocked because they think security is taken care of,” said However, study after study shows that security measures neighborhood-wide and house-by-house decrease property crime dramatically. For example, 83% of interviewed burglars admitted that they specifically look to see if there's an alarm, and 60% would change their minds if there was one installed.

The key to dispelling the “leave my doors unlocked” attitude is communication and expectation setting. While security measures help prevent crime and keep watch for potential perpetrators, it’s not an all-in-one solution.

More neighborhoods are hiring private security guards. However, for many neighborhoods, the ongoing cost of private security guards or gate agents isn’t within their annual budget.

Another issue with gate agents is, if a crime does occur, there’s still a potential lack of evidence to help police actually solve the crime.

There are roughly 2.5 million burglaries a year and 66% of those are home invasions. However, police only solve 13% of reported burglary cases due to lack of a witness or physical evidence.

Solutions like an automatic license plate reading camera can be part of a neighborhood’s overall security plan. This secure camera gives police the evidence they need to both solve and prevent crime. This solution coupled with other security efforts like home alarms, doorbell and other outdoor cameras, and other personal security systems can work together to increase neighborhood safety and reduce property crime.

The most important element of a safe neighborhood is a community that communicates, has each others’ backs, and works together to keep everyone protected.

Flock Safety offers a first-of-its-kind automatic license plate reading camera. Flock cameras come with a sign that lets neighborhood visitors know their license plates are being recorded. There’s even a wanted license plate integration feature into which neighborhoods can opt to let police know when a car with a wanted license plate enters an area. Contact us today. www.flocksafety.com.

19 • CONTACT, SPRING 2019

The Benefit of Updating your Reserve Study Annually

By Elon Goldman, RS, President Association Reserves

Reserve Studies are budget planning and disclosure documents prepared to help the board meet their responsibility to care for the assets of the association. Many of the association’s common area components are so large that the association needs many years to prepare for those expenses financially. So what happens when Boards don’t update their Reserve Study for years, and instead make decisions based on outdated information?

Reserve Studies involve an evaluation of the current physical assets of the association, and a projection forward of ongoing deterioration, contributions, and expenses. This information quickly becomes outdated, perhaps as soon as weeks after it is prepared.This can be attributed to the change in project costs, account balance changes, projects getting deferred, anticipated Reserve Contributions don’t occur, etc.

Many states require Reserve Studies to be updated on a particular basis, with the most common being states that require updates based on a diligent visual site inspection every third year or every fifth year. So are these intervals “good enough”? What happens when we compare associations updating their Reserve Study every three or five years to associations updating this key information annually?

Associations who update their Reserve Studies every five years enjoy a 35.1% decrease in special assessments when they shift to updating their Reserve Study annually.

Associations who update their Reserve Studies every three years enjoy a 28.5% decrease in special assessments when they shift to updating their Reserve Study annually.

It doesn’t matter what your local State Law says: special assessments are disruptive, divisive, and predictable years in advance everywhere. Put time on your side by updating your Reserve Study annually, significantly lowering your exposure to special assessments.

20 • CONTACT, WINTER 2019

Unparalleled Property Services

Who We Are Castle Group is the premier choice for Community Management, specializing in serving the finest Condominium and Homeowner Associations.

To learn more about The Castle Difference contact us today at 972-846-0641. www.castlegroup.com/castle-texas 6860 North Dallas Parkway, Suite 200 Plano, TX 75024 info@castlegroup.com

21 • CONTACT, SPRING 2019

Tax Exempt Status for your Associations Be the hero for your Boards and work toward getting the tax exempt status for the Associations you manage.

This is not a process that works for every association but the savings for any specific HOA can be downright impressive. It does come with a price tag and based on the expenses of the association the ROI can be better than any Wall Street investment…without the risk.

general public. This does not mean you have to post a sign saying come on in! It could mean you are restricted from posting signs that say, “Members Only”.

Not convinced? A real-world example could be an association with 900 units and a budget of $300,000 per year. Easily, $150,000 could be taxable expenses.

That figure results in Texas sales tax of $12,375! Cost to acquire tax exempt status usually runs around $4800 and that includes the $850 the IRS requires for submission of the application. In this scenario the ROI is $7,575 for the first year and thereafter this association pays no sales tax going forward! Think of it, over a 10-year period this could be a savings of $123,750!!

So, the board reviews the options and decides to undertake this money saving venture. What now?

That’s where the manager comes in. You’ve done your homework and feel pretty comfortable answering questions about the process….oh yeah, the process! As I mentioned earlier, this is a two step process. First you must get IRS approval in the form of a letter granting the 501(c)(4) tax exempt status. This is a lengthy process, not for the manager but for the firm the Board enlists to do the IRS application, which when completed is about 1 inch thick. The IRS estimate of average time required to prepare the application is 58 hours. This includes governing documents, budgets, financials, tax forms and IRS forms specific to gaining 501(c)(4) nonprofit status.

Many have expressed concern that tax-exempt status is only available to the large-scale communities with million-dollar budgets, but this is a misconception. All associations should examine the possibility of attaining tax exemption. Maybe you have smaller associations.

Another scenario is an HOA with 250 units with an annual budget of $120,000. Taxable expenses compute to around $56,000 resulting in sales tax of $4,620 minus the cost of $4800 for the registration process.

In this scenario the ROI is a negative $180 for the first year. Every year after would be a savings of $4,620 or over a 10 year period $46,200.

Sound too good to be true? Not really, but there are nuances that the board must consider before deciding to move forward with this two-step process.

The most critical decision regards access. To qualify for tax exempt status, the association must include with its IRS exemption application evidence that it is operated for the benefit of all the residents of the community.

In addition, the association must include evidence that areas such as streets and parks that it owns and maintains are open to the general public and not just its members. It must also show that it does not engage in exterior maintenance of private homes.

This one requirement can scare many boards into not pursuing the tax exempt status. They are concerned that non-homeowners will invade the common areas of the association. Experience has shown this not to be the case. The requirement is that the areas are open to the 22 • CONTACT, SPRING 2019

Boards must determine if not posting “Members Only” signs is worth pretty impressive amounts of cash. As they say, “Money Saved is Money Earned”.

The process from beginning to end can take three months for the federal approval once the IRS receives your application and 30 days for the Texas approval after they receive your AT-206 application. The firm must review specific sections of the governing documents, so they can determine if they contain any language that would prohibit the exemption. Some will but many won’t.

The exception to the rule is gated communities, which are by nature exclusive. Not to say they can never gain tax exempt status, but the process will be uphill. The tax-exempt adviser your Board chooses will make that determination.

Once the application is completed your advisor will deliver the 1 inch bundle to you for board signatures before mailing to the IRS. Now you just wait…. and wait and wait for the IRS to review and make a decision on your application. Minimum 5expectation is you will receive an answer within three months.

The best part is there is no up-front cost by the association. Typically, they pay only if the association gets approved for the exempt status. The exception is when you mail the package the Association will have to pay the $850 fee to the IRS.

Months later the mailroom delivers an envelope from the IRS and you eagerly open to find a letter from the Director of Exempt Organizations which grants federal tax-exempt status to your association. Exciting, but we’re only half way there. Now your tax-exempt advisor will submit the IRS letter along with form AT-206 to the Texas Comptroller of Public Accounts requesting sales tax exemption from the State of Texas.

Not to worry, if your association received federal tax exemption, it’s just a formality to request the exemption from the comptroller’s office. This process should take much less time than the federal exemption.

You will be notified if your Association receives sales tax exemption by an Exemption Verification Letter from the Texas Comptroller of Public Accounts.

Once you have the federal and state exemptions approved and in hand, the next step is informing your vendors. Using form 01-339, provided by the Texas Comptroller, you can now have the vendors remove all sales taxes from their invoices. You will need to provide form 01-339 to each vendor as they will need those to submit to the state as well, showing they are not applying sales taxes to your invoices. Hint: you will need to keep an eye on invoices for a while to ensure they do not charge sales tax. They are not used to this and can easily overlook it.

There you have it in cliff notes form. To really get an education on this process you need to seek a Tax Exempt Advisor (usually a CPA or attorney).

If the Board desires to pursue federal income tax exemption followed by Texas sales tax exemption, seek professional advice to create an action plan. Just Google “Tax Exempt Advisors for HOA's”. This should get you well on your way.

What are you waiting on….it’s a Win, Win, When!

Dan Estep, CMCA, AMS Association Manager RTI/Community Associations, Inc., “CMA”

23 • CONTACT, SPRING 2019

Smiles.

Harmony.

Joy.

PURPOSE

Our industry is about people, not paper. With a service-first mindset, we’ve developed rela�onships and built community in hundreds of neighborhoods through the past 45 years. We’ve worked diligently to build a posi�ve reputa�on as a community management leader and have succeeded in doing so by promo�ng innova�on and crea�ng experiences that connect people. This pursuit has allowed us to discover purpose and meaning in our work.

PASSION

We believe in giving back to the greater community. Through our HomeWorks program, we support charitable organiza�ons in markets across the country. Team members drive these hands-on efforts to serve in-need communi�es. We also encourage team members to follow their own hearts by offering paid volunteer hours.

Together, we make a posi�ve impact and serve the greater good.

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Our 800-plus employees are more than a team; they’re a family. Guided by compassion for the individual, we value integrity, trust and respect. We empower servant leaders by suppor�ng industry-related educa�on and cer�fica�on and offer opportunity for personal and professional growth and development. Together, we aim to transform the way people think and feel about homeowners associa�ons.

Community Associa�on Management | 469-246-3500 | CCMCnet.com 24 • CONTACT, SPRING 2019

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The Price of Insurance vs. The Cost of Insurance: Pay an amount certain now, or be surprised later Copyright © 2018 Joel W. Meskin

Community associations are creatures of budget. The primary purpose of a budget is to provide certainty and avoid surprises as the board complies with its obligation to protect, preserve and enhance the association assets.

More often than not, board members primarily focus on “price” when purchasing insurance. However, “price” is only relevant if the options presented substantially provide the same coverage - apples for apples; or there are never any claims.

Caveat: Remember not all insurance is created equal!

The reality is most boards never make the ultimate insurance decision, because they defer this task to the CAM. Not only do they defer to the CAM for insurance decisions, they do not meet in person with the community association insurance professional. It is one thing to defer the insurance leg work to the CAM, however, it is another thing for the CAM to make the insurance purchase and maintenance decisions on their own. In my humble opinion, focusing primarily on the point of sale premium should be the last decision. The key obligation is to determine whether the insurance proposal is proper coverage to protect, preserve and enhance the association assets.

CAUTION: BOARD MEMBERS BEWARE

professional? Boards are always looking for cheaper anything. Why not obtain counsel from a community association insurance professional who does not charge.

The “cost of insurance” is not the same as the “point of sale premium.” The “cost of Insurance” is the total amount the association incurs at the time of a loss or claim plus the value of peace of mind that the association receives during the claims process. If the board made sure they purchased the best coverage for the association, the cost of insurance will have been a good deal. However, if the focus was the point of sale price as opposed to coverage, there is a very possible reality that the cost of insurance could be significantly higher than the price, because the association will be self-insured for the coverage that was sacrificed for the cheaper price.

Caveat: More important for associations than “point of sale insurance premiums” is not being surprised by uncovered claims!

CAUTION: CAMs BEWARE!

More often than not, the management agreement with the Association requires that the association unilaterally indemnify the Management Company and the CAM for claims arising out of services provided.

Many management agreements expressly provide that the CAMs assume the task of purchasing and maintaining the association’s insurance program. In other situations, many management companies take on this role voluntarily and may involve preferred insurance business partners in the process.

The board is obligated to protect, preserve and enhance the association assets.

Primarily focusing on price in the insurance decision process is counterintuitive to this duty. Where in the governing documents does it provide that the board has a duty to save the association money when purchasing insurance? Nowhere! Rather, the duty is to determine what insurance will best protect the association assets.

This practice in and of itself is not necessarily a problem. However, there are a number of traps for the unwary, including who is ultimately responsible for any errors in the purchase and maintenance of insurance. The key individuals that should be most concerned here are management company “owner” and Boards.

Boards are authorized to seek counsel from professionals when an issue is beyond the knowledge of the average board member. Insurance is one of those issues.

Moreover, why wouldn’t a board always seek counsel from a community association 28 • CONTACT, SPRING 2019

1. Indemnification Most management agreements have an indemnity provision that provides that if the

CAM is sued for something it did for or on behalf of the association, the insured needs to provide the CAM defense and indemnity. Accordingly, the managed association must be able to fund that obligation. Many CAMs and Boards “assume” that this can be funded by the association’s Directors and Officers policy where the CAM is almost certain to be added as an additional insured, or are included in the policy definition of insured. As a result, the funding of the obligation owed the CAM is by the associations assets, special assessments or a loan.

It is also important that the Management Company or CAM understand the indemnity provisions of your state. Not all states will allow indemnification for someone’s active negligence, and many if they do allow indemnity for active negligence, that provision must be expressly set forth in the agreement, and in some states follow a certain formula.

2. Community Association D&O Policy Most Boards, Management Companies and CAMs “assume” that since the management company was working on behalf of the association, and since it is an additional insured on the D&O policy, that the CAM will be covered and that is how the insurance claim against the CAM, for whom the association agreed to provide defense and indemnity will be funded.

Unfortunately, virtually every D&O policy on the market “excludes” coverage for claims by the association against the Management Company or CAM. Even worse is that there are some D&O policies where the Management company or CAM is not even covered under a policy.

3. Management Company/CAM Professional Liability Insurance Virtually all CAM Professional Liability Insurance “expressly excludes” any claims arising out of insurance claims. This should make sense, because a professional liability policy is intended to cover the professional from its industry professional services. CAMs are not licensed Insurance professionals.

4. Conflict of Interest Some management companies or CAMs have their own preferred insurance professional who in turn has its own preferred insurance carrier. There are also some where the insurance is a division, affiliate or subsidiary of a management company. These may in fact provide the best products to protect the association’s assets. However, there are two key requirements. First, any such relationships must be expressly disclosed to the association board. Second, under this scenario, the management company or CAM must still conduct its due diligence as to the best available coverage, and not just the best price.

the management agreement has a unilateral indemnity agreement flowing from the association to the Management Company or CAM. Theoretically, if the CAM does not purchase and maintain the appropriate coverage, it is still protected, because the association must defend and indemnity the management company or CAM. Who will tell the board that we the management company are being sued, but you have to defend us. As long as the management company is not concerned about losing the client, there is no problem. Does the management company and CAM have an obligation to disclose this to the association before the agreement is entered?

Second, what will the neighbor associations or other associations think when they hear about this? What will the impact be on the association property values?

6. Management Company CEOs Beware One of the biggest mysteries I have encountered in my years in this industry is why there are Management Company CEOs, executives and owners who do not make it one of the highest priorities to make sure the association’s insurance program is the best. Management Companies spend so much time making sure they are additional insureds on the association insurance policies, but they do not make sure the association’s policy is not the best. The management company and the CAM’s coverage is only as good as the associations.

TAKE AWAYS • Community Association Insurance Professionals do not charge to meet, counsel or present to your Board. Make the Insurance Professional’s E&O on the line, not the Management Company or CAM. The Insurance Professional, not the CAM is the licensed insurance expert.

• Boards should exploit community association insurance professionals for two reasons. First, boards owe a fiduciary duty to the Association and relying on a licensed community association insurance professional. By doing so, the board develops a strong defense to a strong business judgment defense. Second, the counsel is free.

• CAMS should never sign an application on behalf of an association. The association does not pay the Management Company or the CAM • Always make the board review the application, make any changes they need and have the appropriate board member sign the application.

•

Not all insurance coverage is equal.

5. Business Good Will There are “Good Will” issues that can arise from insurance issues. First, very often 29 • CONTACT, SPRING 2019

Community.

Well Served.

Knowledge. Expertise. Value.

What Are You Looking For in a Management Company?

When it comes to protecting the value of your neighborhood, consider a company that: • Adheres to the highest ethical standards • Possesses an outstanding reputation and more than a quarter century of experience • Employs top-notch, professionally qualified staff • Strives to enhance the appeal and value of your property CMA serves a wide variety of communities including single family, masterplanned communities, condominiums, townhomes, mid-rise, mixed use communities and commercial/retail properties.

Founded in 1983, CMA has grown to be one of the largest locally owned management companies in the Metroplex.

Contact: Jean Sloan (972) 943-2848 or visit us online at: www.cmamanagement.com

Community. Well Served. ©2018 RTI/Community Management Associates, Inc. All rights reserved.

30 • CONTACT, SPRING 2019

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paul@paulbakerinsurance.com 31 • CONTACT, SPRING 2019

Preparing for Mosquitoes, Fleas and Ticks: How to Protect Yourself and Your Community from Diseases

By Lee Woodham Owner | Mosquito Joe of Northwest DFW

With the spring months right around the corner, now is the time to start preparing yourself and the properties you manage for mosquito, flea and tick season.

These pests are often overlooked, so it’s important to be educated on the threat mosquitoes, fleas and ticks can present so your community can prepare to be itchfree and healthy.

We all know that being bitten by mosquitoes is no fun, leaving you itchy and irritated for days. But the annoyance families suffer from mosquitoes and other biting insects can be more than inconvenient – it can be a health risk. Mosquitoes can transmit over ten different diseases and are considered the deadliest animal on our planet, being responsible for over one million deaths each year. When it comes to our beloved furry friends, mosquitoes are also the vector for heartworms.

Mosquitoes will be active around March in our area or once temperatures stay consistently over 50 degrees Fahrenheit, so being prepared before they even arrive is key. Did you know that Dallas was recently ranked among the 10 worst U.S. cities for mosquitoes?

Summer is peak season for ticks in the Dallas-Fort Worth area. Its rural and suburban surroundings make an ideal habitat for the ticks that carry tick-borne illnesses such as Lyme Disease, Rocky Mountain Spotted Fever and Anaplasmosis.

These diseases are major health concerns, reinforcing the need to prevent tick bites.

Ticks can carry the pathogens for ten human diseases and spread illnesses that can cause symptoms such as fever, headache, chills, and muscle aches. Ticks are among the most efficient carriers of disease because they attach firmly to the skin, feed slowly and could go unnoticed for a considerable amount of time while feeding.

Ticks will make their 2018 debut around the month of April, or when the ground temperature is above 45 degrees Fahrenheit, so it’s important to have a plan in place in advance.

There are ways to control the tick population around yards in your area to reduce the risk ticks present to families and their pets:

There are things that you can do to reduce the mosquito population in the communities you manage:

• • •

•

•

• • • • • • •

Hire a licensed and professional mosquito control service to apply a barrier treatment to your area and to larvicide existing water sources to prevent eggs from turning into biting adults.

Regularly empty ponds, bird baths, fountains, potted plants, buckets, barrels, tarps, kid toys, pet water dishes or anything else that may gather water.

Clean out gutters at clubhouses to avoid standing water – examine them for clots and damage that would cause water to collect.

Drill holes in tire swings, trashcans or recycle bins to allow water to drain out.

Use soil to fill in low areas in parks and landscaped areas where rainwater may collect and stand for more than four days.

Keep swimming pools clean, properly circulated and filtered. Keep children’s wading pools empty and on their sides when they aren’t being used.

Repair leaky outdoor faucets.

Cut grass and shrubs short, as adult mosquitoes gather to rest in shady, cool areas. Keep areas weed-free and avoid overgrown vegetation as much as possible.

Are the four-legged residents in your community feeling itchy? It could be fleas small, flightless insects that hide in grass and wood piles until they find a host to feed on. Once fleas find satisfaction in your pets, they feed and lay eggs, creating; you guessed it, even more fleas. They can live for up to 2-3 months and bite up to 400 times a day. These pesky insects are daredevils when it comes to finding a host to feed from, they can actually jump distances up to 13 inches! Fleas spread diseases such as bubonic plague and tularemia and cause medical problems such as tapeworms, hair loss and anemia, especially in puppies and kittens. Fleas love warm temperatures, so expect them to arrive around homes as early as March this year.

There are things that you can do to reduce the flea population in the communities you manage: • • • •

Incorporate cedar chips decoratively in landscaped areas near clubhouses and pools as fleas do not like the smell.

Keep grass short and avoid overgrown vegetation.

Remove standing wood piles and leaf litter.

Trim trees and bushes to allow for maximum sunlight.

32 • CONTACT, SPRING 2019

•

Clear tall grass around homes and at the edge of lawns.

Mow the lawn and surrounding areas frequently.

Keep playground equipment, decks, and patios away from the edge of yards and trees.

Remove trash from common areas as frequently as possible to avoid giving ticks a place to hide.

Remove standing wood piles and leaf litter.

The best solution for keeping these pests away is to call in an expert who specializes in mosquito, flea and tick control services. With these services, trained technicians treat common areas and communities with a barrier spray that eliminates mosquitoes, fleas and ticks, protecting residents against these dangerous pests and the diseases they can spread. The average treatment times vary on the size of the community and the number of common areas treated. After treatment, only 30-minutes is needed to let the product dry, then common areas, clubhouses and playgrounds are ready for kids and pets to resume playtime. Special event treatments are also great for outdoor get-togethers, barbecues and holiday events, protecting residents against unwanted bites.

In addition to educating property management staff and HOA leadership, it is important and beneficial to educate your residents. A mosquito, flea and tick expert can disperse knowledge in a variety of ways including seminars at your community clubhouse, newsletters with important facts, informative collateral and websites, and fun social media communications.

The author, Lee Woodham, is the owner of Mosquito Joe of Northwest DallasFort Worth. He can be reached at 972-584-1641 or his email is lwoodham@ mosquitojoe.com.

“A Texas Company Performing Texas Reserve Studies” LONE STAR RESERVE STUDIES www.lonestrarreservestudies.com 469.712.8075 aruth@lsrsllc.com

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35 • CONTACT, SPRING 2019

Give Your Community Pool a Checkup

by Amy Dillard

As the weather warms it’s time to give some attention to your community’s swimming pool. It’s a good idea to give it an annual “checkup” this time of year. As you prepare to open your pool for the season, take a few minutes to assess all aspects of your swim area’s safety and functionality so your community can maximize the benefits of a neighborhood pool.

Start by making sure you and your pool’s service provider are in agreement about what they will be doing and when. Communication is important so that everyone in the neighborhood association feels that they are getting good value from their service provider.

Robert Sparks, owner of Pool Referees, LLC, says that in preparation for summer, “Your community pool technician can start checking for proper chemistry balance in regards to chlorine or sanitizer, PH balance, water alkalinity, stabilizer and make adjustments as needed. This is a great time to perform routine maintenances that will keep the pool looking and feeling great throughout the swim season. These include but are not limited to: filter maintenance, stabilizer reductions, calcium reductions, pump and plumbing checks and maintenance, sanitizer feeder maintenance and checks as well as automation programs. This ensures that everything is running when it should and how it should.”

Now that you know your pool technician is taking care of water preparation, you can turn your attention to other aspects of the swim area. Are there any spots that need Spring cleaning or a power wash? Do decks or other wood areas need repair or staining? Are there landscaping issues to be addressed?

Next, consider the condition of all chairs, tables, umbrellas, or awnings used in the pool area. Have you budgeted for any repairs or purchases that need to be made? Keeping furniture in good working condition can be a safety issue, so it’s important to remove any broken or malfunctioning items from your recreation area.

Safety in and around your community pool should always be a top priority. In addition to healthy water chemistry and properly working equipment, do a checkup of pool area security. Is your access control system doing its job? Are all keypads and locks working as they should? Some community pools have low fences or inside gate handles that are quite easily breached. If your neighborhood is experiencing frequent unauthorized use of your swim facility it can cause costly problems.

Vandalism, broken glass in the pool, and even theft of furniture are just some of the things that can happen if the pool area is used improperly or after hours.

“We have found that security cameras around the recreation area act as a deterrent for bad behavior,” says Mark Valls, owner of OnGuard Camera Systems. “And if any incident does occur, the community is able to access a record of when it happened and who is responsible. Damage to the pool costs everyone in the neighborhood, so minimizing unsafe or unauthorized use is in everyone’s interest.”

Finally, take this pool preparation time as an opportunity to check that you are still getting good value from all your service providers - pool tech, landscaping, security, and any others - and to create a realistic budget for next year’s Spring prep. Look for ways to spread your costs out over time so your homeowner’s association avoids getting hit with large unplanned expenses. For example, budgeting to replace a portion of furniture each year (cushions one year, tables the next) can prevent the need for a costly total replacement.

“We began lease programs for security camera systems last year in response to the needs we were hearing from HOAs and community groups,” says Valls. “A lease doesn’t require a large outlay of funds and ensures that any damaged cameras will be replaced without additional expense.”

Giving your pool an annual checkup will set you up for a safe and enjoyable summer. Once you’ve done that, Sparks says “You as a community swimmer can help your service company by kindly reporting any changes you see in water condition or feel. Other than that all you need to do is get your beach bod ready for a season of poolside fun! “ POOL REFEREES poolrefs.com 469-215-7733 ONGUARD CAMERA SYSTEMS onguardcamerasystems.com 844-314-2233 36 • CONTACT, SPRING 2019

37 • CONTACT, SPRING 2019

Upcoming Events 2019

SPRING SUMMER

2019 April Members Luncheon | “Ideas into Action - Small Business...BIG Results”

2019 Annual Conference & Exposition (Nat’l Event)

2019 Golf Tournament

April 10, 2019 11:30 AM - 1:00 PM Brookhaven Country Club 3333 Golfing Green Drive Farmers Branch, TX 75234

May 15, 2019 8:00 AM to May 18, 2019 5:00 PM Rosen Shingle Creek 9939 Universal Blvd.

Orlando, FL 32819

April 15, 2019 10:00 AM - 5:00 PM Hackberry Creek Country Club 1901 West Royal Lane Irving, TX 75063

2019 Large-Scale Managers Workshop (Nat’l Event)

2019 May Members Luncheon

Sept. 11, 2019 2:00 PM to Sept. 14, 2019 12:00 PM Marriott Sugar Land Town Square 16090 City Walk Sugar Land, TX 77479

May 08, 2019 11:30 AM - 1:00 PM Brookhaven Country Club 3333 Golfing Green Drive Farmers Branch, TX 75234

Orlando, FL May 15-18, 2019 https://exchange.caionline.org/ac2019/home

As professionals, we all strive to excel by learning more, taking more action, and planning for the future. But it’s time to engage in the moment to ensure we get the most out of each day.

Introducing the new 2019 CAI Annual Conference and Exposition: Community NOW. Every year, community association leaders, managers, and business partners from around the world attend CAI’s Annual Conference and Exposition for face-to-face opportunities to gain knowledge that will support their work year-round. Learn from 30+ education sessions, expand your perspective with inspiring keynotes, and network every day with peers who understand how to be successful and how to support your challenges. Here’s what else you’ll get from the conference: EDUCATION 34 sessions in 6 education tracks, 6 TEDTalk options, and 5 ShopTalks to personalize your conference experience. Pre-conference professional development courses, including the Professional Community Association Manager (PCAM®) Case Study and the Certified Manager of Community Associations (CMCA) Exam.

NETWORKING Exchange ideas, build your professional peer team, and socialize with fellow conference attendees at the annual welcome reception, chapter party, and CAI awards dinner.

DESIGNATIONS Earn continuing education credit for professional certifications and designations.

KEYNOTE SPEAKERS Learn about attracting, engaging, and retaining the best managers and leaders, and discover how nice people finish first in the business world from well-known thought leaders, Peter Sheahan and Linda Kaplan Thaler.

EXPOSITION HALL Discover a world-class exposition hall where you can embrace the latest systems, tools, and technology to improve your community association.

38 • CONTACT, SPRING 2019

WHAT WE DO • Structural • Building Envelope • Grading & Drainage • Mechanical, Electrical & Plumbing • Roofing (all roof types) • Insurance Restoration (fire, water & wind) • Masonry (stucco, stone & brick) • Perimeter Walls • New Builds • Tenant Improvement • Multi-Family • Commercial • Construction Management • Consulting

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214.274.7505 ellis@masixconstruction.com www.masix.net

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Loans are subject to credit approval. Only deposit products are FDIC insured. © 2019, Branch Banking and Trust Company. All rights reserved.

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Magazine How Do I Submit An ArƟcle?

The DFW Chapter welcomes ar�cles! If you have an ar�cle that you believe would be important to our membership, you can send it directly to the DFW Chapter by e-mailing office@dfwcai.org.

Ar�cles can range anywhere from 700 words to several thousand words. We prefer that they be submi�ed in Word format. If you have pictures that accompany the ar�cle, please send them as a�achments instead of inside the body of the ar�cle.

Ar�cles should be informa�ve in nature. You are welcome to provide a brief bio about the speaker, your company or community, along with contact informa�on for inclusion at the end of the ar�cle.

Ar�cles and adver�sements are accepted un�l the middle of the month prior to publica�on. Contact is produced every quarter, in March, June, September, and December, so we would need your ar�cle or adver�sement no later than February 15, May 15, August 15, and November 15 to ensure inclusion in the upcoming magazine.

Contact is mailed to over 500+ ac�ve members each quarter.

How Do I AdverƟse?

Size

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1/8th Page 1/4 Page 1/2 Page

3.625w x 2.325h 3.625w x 4.875h (vert.) 3.625w x 9.875h or (horiz.) 7.5w x 4.875h 7.5w x 10h

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PosiƟoning of adverƟsing is at the sole discreƟon of the Editor. Preferred posiƟons may be available—inquire for availability and price. CancellaƟons or changes of orders are not accepted aŌer the closing date. If proofs are not furnished, reproducƟons and registraƟon quality is at the adverƟser’s risk. AdverƟser and adverƟsing agency assumes liability for all content including text representaƟon and illustraƟons of adverƟsements printed and also assumes responsibility for any claims arising there from made against the publisher. The publisher reserves the right to reject any adverƟsing contract or inserƟon for any reason.

5

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Banking solutions to help your communities thrive At Union Bank®, we offer customized banking and lending solutions to meet the unique needs of the community association industry. With over 25 years of experience, our specialized HOA team applies their in-depth knowledge to help support and grow your business.

Learn how we simplify banking and the financing of your projects at HOAbankservices.com.

Paul Dolfi, CMCA® Director of Sales 678-405-1701 paul.dolfi@unionbank.com

Financing subject to credit and collateral approval. Other restrictions may apply. Terms and conditions subject to change. ©2019 MUFG Union Bank, N.A. All rights reserved.

Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A. 42 • CONTACT, SPRING 2019

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To learn more, talk with a banking professional today:

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clhuntington@allianceassociationbank.com

(888) 734-4567 allianceassociationbank.com 1

All offers of credit are subject to credit approval.

3/19

Your Full Service HOA Partner

We specialize in construction, renovation,and property maintenance All major trades in-house, including: Roofing, Plumbing, Electrical, AC & Heating

Located in the DFW area, Globus offers 24/7 support

972-494-1600 support.

972-494-1600

44 • CONTACT, SPRING 2019

globusmanage.com gloanage.com License license##M40988 M40988TECL175503 TECL175503TACLB00048137E TACLB00048137E

Restoring Balance.

Enhancing Beauty.

The sunshine and warm weather that we love also contributes to nuisance vegetation and algae blooms in our communities’ lakes and stormwater ponds. As part of an annual management plan, our team will not only help restore and maintain balance in your aquatic ecosystem, but also keep your waterbody looking beautiful year-round.

Want to learn more? Download our free guide: “Your Guide to Sustainable Pond Algae and Aquatic Weed Control”

www.solitudelakemanagement.com/balance Water: It’s 71% of your world... 100% of ours.

855.534.3545 • solitudelakemanagement.com For a full list of our superior service offerings, visit www.solitudelakemanagement.com/services

TRANSPARENCY WITH INCREASED SUPPORT AND COMMUNICATION

EVERYTHING YOUR CONDO OR COMMUNITY ASSOCIATION NEEDS

Comprehensive Community Management Solutions

Contact us today at (866) 403.1588 or visit www.realmanage.com 45 • CONTACT, SPRING 2019

CAI Gives Back at the 2019 North Texas Food Bank Day

46 • CONTACT, SPRING 2019

47 • CONTACT, SPRING 2019

Personal Attention.

Proven Results for HOAs. For over two decades, Henry, Oddo, Austin & Fletcher, P.C. has provided clients throughout Texas with trusted counsel. Their experience related to homeowners associations is unmatched – providing guidance, leadership and oversight to community associations. Their attorneys have experience resolving disputes and advising homeowners associations on legal issues.

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Assist developers with drafting governing documents Advise boards on governance and collection issues Assist boards in enforcing bylaws and covenants Attend association meetings to provide explanations of the association’s rights and responsibilities, to help maintain rules of order, and to address issues of concern to members and directors Assist boards in interpreting governing documents

Draft revisions to association governing documents to clarify issues of governance Work with boards and management companies in dealing with property owners Cost effective and creative debt collection methods leading to revenue recovery Active participation and support of Texas Community Association Advocates (TCAA) and Community Associations Institute (CAI)

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Judd A. Austin, Jr. - Shareholder jaamex@hoaf.com

Vinay B. Patel - Shareholder vpatel@hoaf.com

1700 Pacific Avenue, Suite 2700, Dallas, Texas 75201 | (214) 658-1900 | www.hoaf.com

48 • CONTACT, SPRING 2019

MEMBERSHIP

REPORT

New Memberships Aaron Walker (832)588-3819 aswalker323@gmail.com Community Association Volunteer Drew Feger Preston Bend Village 1 Condominiums (407)341-4094 fegera@gmail.com Community Association Volunteer Jordon Street CORE Insurance Group (817)471-1830 jordon@coreins.us Service Provider Judy Haven The Chase at Stonebriar Homeowners Association Inc (214)662-1361 Jghaven@gmail.com Community Association Volunteer Lawrence James Worden Paradiso Homeowners Association (214)364-0119 lworden@ivdlogix.com Community Association Volunteer Michelle Mcfarland (972)359-1548 (171) mmcfarland@nmitx.com Individual Manager Mr. Dale Smith PMG North-Dallas (214)368-4030 dsmith@principal-mgmt.com Individual Manager Mr. Darius Bow (214)422-9341 dariusbow@gmail.com Individual Manager Mr. David Levey The Chase at Stonebriar Homeowners Association Inc (469)888-4001 leveydave@gmail.com Community Association Volunteer Mr. Harold Gold The Chase at Stonebriar Homeowners Association Inc (972)292-9755 hal.gold@sbcglobal.net Community Association Volunteer Mr. Jake Turner SBB Management Company (972)960-2800 (550) J.TURNER@SBBMANAGEMENT.COM Individual Manager Mr. Joel Nyman Pecan Plantation Owners Association (817)573-2641 ji_nyman@yahoo.com Community Association Volunteer 50 • CONTACT, SPRING 2019

Mr. John Milburn Pecan Plantation Owners Association (817)573-2641 johnmmilburn@gmail.com Community Association Volunteer

Mr. Steven Slaughter IntegriBuilt Roofing & Construction (214)405-4159 steven@integri-built.com Service Provider

Mr. John Palmer Craig Ranch Community Association (972)548-9191 jpalmer@gardnercapital.com Community Association Volunteer

Mr. Terry Boles Craig Ranch Community Association (972)548-9191 txtarheel72@gmail.com Community Association Volunteer

Mr. John Sharp Trails Homeowners Association II (972)849-9195 johnsharp78@gmail.com Community Association Volunteer

Mr. William Stewart Powell The Chase at Stonebriar Homeowners Association Inc (310)200-0000 wstewartpowell@gmail.com Community Association Volunteer

Mr. Keith Adams The Chase at Stonebriar Homeowners Association Inc (214)872-2914 keith.adams1015@gmail.com Community Association Volunteer

Mrs. Corrin Dandridge PMG North-Dallas (214)368-4030 cdandridge@principal-mgmt.com Individual Manager

Mr. Larry Dunn Trails Homeowners Association II (972)695-9880 treasurer@trailshoa2.org Community Association Volunteer

Mrs. Jackie Sawyer Two Worlds Apollo DBA Brentwood Village HOA jjsawyer1@verizon.net Community Association Volunteer

Mr. Lonnie Derden Enterprise Risk Control (469)304-3354 lderden@enterpriserc.com Service Provider Mr. Mark Zeck Pecan Plantation Owners Association (817)573-2641 mzeck@protonmail.com Community Association Volunteer

Mrs. Kim R. Henry, CMCA CMA (972)529-8333 khenry@cmamanagement.com Individual Manager Mrs. Kristina Elyese Wynn RealManage (817)424-3027 kristina.wynn@grandmanors.com Individual Manager

Mr. Martin Sinise Two Worlds Apollo DBA Brentwood Village HOA msinise@verizon.net Community Association Volunteer

Mrs. Laura Frary Sinise Two Worlds Apollo DBA Brentwood Village HOA (469)373-6768 Pokerfem@verizon.net Community Association Volunteer

Mr. Patrick Brensinger, CMCA Associa (214)953-3009 (4030) pbrensinger@associaonline.com Service Provider

Mrs. Lori Snelson Blackmon Mooring (817)240-7185 LSnelson@bmsmanagement.com Service Provider

Mr. Reis Alsmiller Robson Ranch Villas No.1 reis@alsmiller.com Community Association Volunteer

Mrs. Mary Torres The Cox Law Firm (817)860-9200 ed@edcoxlaw.com Service Provider

Mr. Scott Carsten Pecan Plantation Owners Association (817)573-2641 Community Association Volunteer Mr. Steven Jimmerson PMG North-Dallas (214)368-4030 sjimmerson@principal-mgmt.com Individual Manager

Mrs. Saundra Guest Two Worlds Apollo DBA Brentwood Village HOA healthcrusader@yahoo.com Community Association Volunteer Ms. Adrienne Brewer Insight Association Management Company abrewer@insightam.com Individual Manager

MEMBERSHIP

REPORT

New Memberships Ms. Alicia Speer Interstate Restoration, LLC (817)653-2442 aspeer@interstaterestoration.com Service Provider

Ms. Michelle O’Keefe Associa (214)272-4109 cokeefe@associaonline.com Individual Manager

Ms. April Murphree PMG North-Dallas (214)368-4030 amurphree@principal-mgmt.com Individual Manager

Ms. Pamela Hackworth CCMC (469)984-7334 phackworth@ccmcnet.com Individual Manager

Ms. Ashley Bernal SoCo Urban Lofts Condominium Association, Inc. (214)747-5638 a.denisebernal@gmail.com Individual Manager

Ms. Sanara Branam CCMC (469)657-0320 sbranam@ccmcnet.com Individual Manager

Ms. Betty Clarady South River Restoration A RESCON Company (469)662-8463 bclarady@srrtx.com Service Provider

Ms. Stephanie Miller Craig Ranch Community Association (972)548-9191 sm75070@att.net Community Association Volunteer

Ms. Cassandra Silva Trails Homeowners Association II (847)331-5728 cmoreno0156@yahoo.com Community Association Volunteer

Ms. Susan Riley Trails Homeowners Association II (646)369-2658 susanriley4@yahoo.com Community Association Volunteer

Ms. Christina Jones Playground Solutions of Texas, Inc. (469)375-4590 christina@pstxi.com Service Provider

Sandra Plunk AmCap Insurance (972)266-1420 splunk@amcapins.com Service Provider

Ms. Cindy Brennan Robson Ranch Villas No.1 jocin8@yahoo.com Community Association Volunteer

Shaun Poe (903)590-6056 shaun@emeraldbayclub.org Individual Manager

Ms. Donna Slater Robson Ranch Villas No.1 dslater@grandecom.net Community Association Volunteer

Sterling Kropp Robert’s Pool Service (972)436-0360 (405) rps@robertspoolservice.com Service Provider

Ms. Jowanna Hill Trails Homeowners Association II (214)708-9669 jowannahill@yahoo.com Community Association Volunteer Ms. Kimberley Melton RTI/CMA Management (972)943-2806 kamelton@cmamanagement.com Individual Manager

Susan Hoelting Craig Ranch Community Association (972)548-9191 susanhcrca@gmail.com Community Association Volunteer

Ms. Kristen Russell PMG North-Dallas 214-280-2664 Krussell@principal-mgmt.com Individual Manager Ms. Marian Gardner (903)216-0073 businessmgr@emeraldbayclub.org Individual Manager 51 • CONTACT, SPRING 2019

MEMBERSHIP

REPORT

New Designations

Mr. Derek Jay Adam, CMCA, AMS Worth Ross Management Mr. Louis John Fontenot, CMCA 4Sight Property Management Mr. Cameron Gschwend, CMCA 4Sight Property Management Ms. Debbie Gschwend, CMCA 4Sight Property Management Mr. Brandon L Hall, CMCA, AMS Worth Ross Management Mr. Brandon L Hall, CMCA, AMS Worth Ross Management Mr. Chris Hoofnagle, CMCA, AMS Assured Management, Inc. Mrs. Jennifer L. Jennings, CMCA Ms. Debbi Kennedy, RS Community Association Reserves Mr. Matthew Mark Kopchak, CMCA, AMS Worth Ross Management Ms. Rosie Morataya, CMCA, AMS Goddard Management, LLC. Ms. Jennifer Shannon, CMCA CrestEdge Association Management Mr. Nathan Watson, CMCA Harwood Lifestyle Management, LLC

AMS CMCA CMCA CMCA AMS CMCA AMS CMCA RS AMS AMS CMCA CMCA

3/12/2019 3/12/2019 3/12/2019 3/7/2019 3/11/2019 3/7/2019 3/11/2019 1/30/2019 2/21/2019 1/11/2019 1/11/2019 1/23/2019 1/11/2019

Congratulations to those members who have achieved designations!

Renewed Members Jeremy Mayes Miss Rachel R Gatlin, CMCA, AMS Mr. Andrew S. Fortin, Esq. Mr. Anthoney J. Martinez, II Mr. Brady Vincent Mr. Brett Wiklund, CMCA, AMS, PCAM Mr. Chris Hoofnagle, CMCA, AMS Mr. Colby Gschwend, CMCA Mr. Dale L. Smith, CMCA Mr. David Garrett, CMCA Mr. David Garrett, CMCA Mr. David Rekerdres Mr. Don Kekstadt, AMS, PCAM Mr. Edward Samuel Simon, CMCA Mr. Jeff Hilz Mr. John Mackenzie Mr. John Pritchett Mr. Mark Middleton Mr. Mark Southall, AMS, PCAM Mr. Matthew Skipper, CMCA Mr. Michael Kan Mr. Monte Irion Mr. Ronald E. Stephens, CMCA, AMS, PCAM Mr. Scott Spilker, CMCA, AMS Mr. Steven C. Grant, RS Mr. Steven Painter Mr. Thomas Landon Miller Mr. Thomas V. Stephen Mr. William Rathburn Mrs. Alyssa Wilson, CMCA Mrs. Andrea Willett Mrs. Angela Frieling Mrs. Catherine Cora Kemp Mrs. Jillian Meers, CMCA, AMS Mrs. Kimberly Musser, CMCA, AMS Mrs. Mallory Nombrano Mrs. Nicole Zaitoon 52 • CONTACT, SPRING 2019

Rejoined Members Mrs. Tara Spivey Mrs. Teresa Muchler, CMCA, AMS, PCAM Ms. Annette McCracken Ms. Brandi Head, CMCA, AMS Ms. Candice Roy Ms. Carol Moore Moran, CMCA, AMS Ms. Carol Owens, PCAM Ms. Chaun Sherman Ms. Chris Munsch, CMCA, AMS Ms. Dodie Slama, CMCA, AMS, PCAM Ms. Emily Susan Law Ms. Esther Marie Herrera Ms. Jacque Jagger Ms. Jane Holtz, CMCA Ms. Katie Marie Hartley, CMCA, AMS Ms. Kelly Jo Stafford Ms. Kristie Gray Ms. Lisa Sanders, CMCA Ms. Margaret Diane Parker, CMCA, AMS, PCAM Ms. Marsha Hove, CMCA, AMS Ms. Marty Whitaker Ms. Megan Shaver Ms. Melissa Peters Ms. Melissa Verde, CMCA Ms. Nancy Wright, CMCA Ms. Sandra Gotterup Ms. Sharon L. Walters Ms. Sheila Lustfield, CMCA, AMS Ms. Susan Garrett Ms. Suzanne Frish, CMCA, AMS Ms. Tammy Hatter, CMCA, AMS, PCAM Ms. Terry L. Jones Ms. Virginia Townley, CPM CCIM

Mr. Brian Wiedenhoeft Mr. Chris Harrison, PCAM Mr. Gary L. Gooch Mr. John Shaffer Mr. Laurence E. Scott, Jr. Mr. Michael Lesku, CMCA, AMS, PCAM Mr. Paul Coggins Mr. Steve Nathan Mrs. Genevieve C. North, CMCA, AMS, PCAM Mrs. Jamie Morris, CMCA, AMS, PCAM Mrs. Linda Razzano, CMCA, AMS Mrs. Marbella Torres Ms. Jamie M Patterson, CMCA Ms. Laura Kurak, CMCA, PCAM Ms. Laurie Lorensen, CMCA Ms. Lori Nelson, CMCA, AMS Ms. Mary Beth Hays Ms. Michele Drain, CMCA, AMS

53 • CONTACT, SPRING 2019

How will you fund your next association project?

Get custom financing that’s perfect for your budget and your association.

No deposit relationship required.

Let us find the financing that’s right for you.

Call me today!

Olivia Hurtado, CMCA Vice President 214-717-2718 866-800-4656 ext.7567 olivia.hurtado@mutualofomahabank.com

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