The Echo Journal – March 2024

MISSION STATEMENT

Fostering a better quality of life in community associations through education, advocacy and networking.

Echo

5669 Snell Ave., #249 San Jose, CA 95123

408.297.3246 | info@echo-ca.org www.echo-ca.org

BOARD OF DIRECTORS & OFFICERS

PRESIDENT Adam Haney

VICE PRESIDENT

Mark Guithues, Esq.

TREASURER

Karl Lofthouse

DIRECTORS

Rolf Crocker

Sarah Dunia

J. Spencer Edgett, Esq.

John Gill, Esq.

David Hughes

David Levy, CPA

Nathan McGuire, Esq., CCAL

Lisa Triplett

Kelly Zibell

BENEFACTOR MEMBER

Donald W. Haney, CPA CID Consortium, LLC

CHIEF EXECUTIVE OFFICER

David Zepponi | dzepponi@echo-ca.org

OPERATIONS MANAGER

Connor Zepponi | connor@echo-ca.org

MEMBERSHIP & SALES MANAGER

Jacqueline Price | jprice@echo-ca.org

PUBLICATIONS EXPEDITOR

Pam Grove | pgrove@echo-ca.org

MEMBER ENGAGEMENT COORDINATOR

Jared Giguere | jared@echo-ca.org

Echo members have exclusive access to our entire library of HOA-focused educational programming including Community Conversations, Educational Seminars, Workshops, Ask the Attorneys and Ask the Experts.

The presentations referenced below are a sampling of what is available to our valuable members. Click a title to watch!

Community Crime Prevention: Protecting YOUR Community

Ask the Experts About Construction Projects and Inspections

Ask the Experts About Insurance

Good Governance: Meetings & Best Practices

Community Conversation: Better Meetings & the Open Meeting Act

Community Conversation: HOA Elections & Understanding the Role of an Inspector of Elections

Community Conversation: Dealing with Homeowner Apathy

Community Conversation: HOA Taxes and Other Accounting Conversations

Where community is at the hear t of ever ything we do.

Your dedicated par tner in community building.

Gets Things Done

Raison d’Etre – The Reason for

What a beautiful phrase, raison d’etre (reason for being). every board member should consider and collectively agree.

Plans & Progress

This month we welcome spring – a time of new growth and new beginnings – and we leave behind the quiet of a cool and soggy winter. Echo has used this time to evaluate its work and prepare for the launch of its annual plan of activities and opportunities for members.

The phrase engenders humanity. The words roll from one’s stark business senses and adds the element of humanity a board: Strategic planning, execution and evaluation; mission management. The business realities should be reflective of common values of individuals in the community.

• Ten in-person local resource panels and 40 small-group gatherings

• Ten Board Members Club meetings for executive peer learning and camaraderie

• Two periodicals: The Echo Insight and The Echo Journal

Communities are imperfect – because they are made of humans. relating. Humans using. Human living. Basically, humans being human, communities sometimes forget that management establish norms for a successful community. In a sense, the community. Its purpose is to establish order and elevate progress and pace by establishing norms and constraints to benefit all.

It seems

It is nice to have the relative calm of winter to consider the past year – what worked and what didn’t work – and how we can improve. Long-time friend and mentor Fred Vetter gave me this advice: “What we work on matters.” Time is our most precious resource, and we must use it wisely and efficiently. Thus, all boards should partake in periodic self-reflection and an honest assessment of work done or work that could have been done better. This seasonal introspection of the leadership group builds cohesion, character, and ultimately a stronger community.

In 2024, Echo has plans for more than 100 programs and activities. Some will be continuing, some are new, and others have been pruned. But all have been designed to serve our members and further our mission to foster a better quality of life in HOA communities.

Welcoming Back

• Online education

• Specialty HOA publications (such as the Echo Statute Book)

New and Refreshed

• Initiation of the Echo HOA University, a tencourse certificate series on board member preparedness

• The new Echo Connection: matching vendors and boards in a fun “speed dating” Zoom meeting format

apparent that board leadership must understand owners in order to orchestrate a sense of community and and protect community values. The purpose of a board, therefore, build community based on common values for the good of

• Expansion of local member engagement via resource panels throughout California including new panels in Sacramento, San Francisco, South Bay, East Bay, and Orange County

• A refreshed and updated website

It takes time to orchestrate a community. It takes time to know time to listen to the voices and build a vision reflective of and you will be more effective as a board member and satisfied your reason for being on the board.

• Large and small in-person meetings

• The 3rd Annual HOA Insurance Seminar (online)

Now that spring is here, it is our role and that of every board leader to ensure planning and implementation toward a better quality of life in the HOA community. Every community should have a mission and a plan, and every board should selfassess their work. Because it matters.

ECHO is committed to helping homeowner boards and residents ing and advocacy – this is our “raison d’etre”.

• Larger-format in-person events, two educational seminars, and the Annual Legislative Event

David Zepponi Executive Director ECHO CHIEF EXECUTIVE OFFICER

Empowering HOAs Through Technology: A Comprehensive Guide

BY ALLEN LIOU

In the dynamic realm of homeowners associations (HOAs), the adoption of technology is not merely a trend; it represents a fundamental shift toward more efficient, transparent, and connected communities. Modern HOAs confront a broad spectrum of challenges, ranging from financial management and legal compliance to community engagement and property maintenance. The evolution of technology offers unprecedented opportunities to address these challenges, simplifying complex operations and fostering a sense of community among residents.

Continued on page 10

The platform should be clear and simple, allowing users to effortlessly navigate to the information and functions they need, such as checking financial statements, submitting maintenance requests, and joining in community discussions.

Empowering HOAs Through Technology...

Continued from page 9

Technological Advancements in HOA Management

The landscape of HOA management technology has significantly evolved, accelerated by the COVID-19 pandemic, which pushed for the rapid adoption of digital solutions to meet unforeseen challenges. Integrated solutions designed to streamline operations have become indispensable, strengthening decision-making processes while accommodating the necessity for virtual board meetings and digital communication channels. This shift has not only enabled HOAs to continue their operations uninterrupted during periods of social distancing, but has also set a new standard for operational efficiency and community engagement through technology.

FINANCIAL MANAGEMENT

TECHNOLOGIES: Modern software solutions transcend basic accounting functions to offer real-time financial reporting, automated billing, and online payment processing. These tools facilitate efficient budget management and ensure financial transparency and accountability. For instance, cloud-based platforms enable board members to access up-todate financial statements anytime and anywhere, making it easier to track expenses, monitor budget compliance, and make informed financial decisions.

LEGAL AND COMPLIANCE TOOLS:

Advanced management software simplifies navigating the complex legal and regulatory framework required for HOA management. It integrates critical features like document management for organizing essential records and real-

time compliance tracking with state laws and regulations. For increasing financial oversight, such software protocols may include requirements for dual signatures to access reserve funds, addressing key financial security measures. Additionally, these platforms automate financial reporting, facilitating compliance with rigorous reporting standards effortlessly. By providing tools for strict adherence to legal standards, this software ensures that HOAs can maintain compliance and reduce risk, streamlining operations for more efficient community management.

MAINTENANCE AND MANAGEMENT INNOVATIONS:

Property management technologies have significantly transformed the approach to handling maintenance requests, vendor management, and project oversight. These systems

facilitate seamless communication across all stakeholders, including residents, management, and service providers, ensuring swift resolution of maintenance issues and the upkeep of properties. For instance, online portals offer a centralized platform where residents can log maintenance requests, track the status of those requests, and receive updates. This digital approach streamlines the request process and enhances transparency and efficiency in how maintenance tasks are managed and completed.

COMMUNITY ENGAGEMENT

PLATFORMS: At the heart of every HOA is its community. Digital platforms have revolutionized how board members communicate with homeowners, promoting engagement through online forums and instant notifications. These tools elevate participation and foster a more informed community by creating a virtual space for residents to voice concerns, share ideas, and actively participate in the community’s life. This digital approach strengthens the community bond, ensuring that every member feels heard and valued, contributing to a more cohesive and vibrant living environment.

Technology and Software: Key Considerations in Choosing an HOA Management Company

While all of the above are significant technological advancements toward more efficient and more transparent HOAs, the HOA management company is the one choosing which software to deploy to their associations. Therefore, evaluating the HOA management company’s

technology is just as important as evaluating the HOA management company itself. Here are the essential factors to consider:

INTEGRATED MANAGEMENT

SOFTWARE: The ideal management company should utilize a comprehensive software platform that encompasses all aspects of HOA management, including financial operations, property maintenance, legal compliance, and community engagement. This integration ensures a streamlined approach to managing the community’s needs, facilitating better communication and operational efficiency.

USER-FRIENDLY INTERFACE:

It is essential that the software provided by the management company be straightforward and easy for everyone to

use, from board members to residents. The platform should be clear and simple, allowing users to effortlessly navigate to the information and functions they need, such as checking financial statements, submitting maintenance requests, and joining in community discussions. Good design means that whether someone is tech-savvy or not, they can easily access and use all features without confusion. This approach ensures that the software enhances community management, engages the community, and is less of a hassle for all involved.

REAL-TIME ACCESS TO INFORMATION:

The ability to access up-to-date information is vital for effective HOA management. The company’s

Empowering HOAs Through Technology...

Continued from page 11 software needs to offer realtime insights into financial data, maintenance schedules, and other relevant management activities. This feature supports timely and informed decision-making by the HOA board.

EFFICIENT PAYMENT AND INVOICING SYSTEM:

The management company’s software should support an integrated system for managing dues payments and invoice processing. Such a system simplifies financial transactions, allowing for efficient tracking and management of the community’s finances.

SECURITY MEASURES AND DATA PRIVACY:

Security and privacy in managing HOA data, particularly for financial dealings, require close scrutiny. It is crucial to evaluate how a management company secures online account passwords, ensuring they are encrypted and protected with multifactor authentication (MFA), especially for accounts related to financial transactions and utilities. This approach, combined with adherence to privacy laws, demonstrates the company’s dedication to safeguarding the HOA’s sensitive information and enhances trust within the community.

CONSOLIDATION OF SYSTEMS AND SERVICES:

The management company’s use of multiple platforms for tasks such as dues payments, invoice approvals, and financial oversight should be evaluated. An optimal management firm integrates these functions into a single system, simplifying access for

homeowners and board members alike. This unified approach streamlines interactions and improves efficiency, ensuring that financial management is both straightforward and consolidated and promoting better community oversight and engagement.

SOFTWARE DEMONSTRATION AND REFERENCES:

Before a decision is made, the management company should request a demonstration of the software to see it in action. Additionally, feedback from current or past clients should be sought to gauge their satisfaction with the software’s performance and the company’s overall service.

By carefully considering these factors, HOAs can select a management company that leverages technology effectively to meet their community’s unique needs, enhancing overall management and resident satisfaction.

Looking Ahead: Emerging Technologies for HOAs

Historically, HOA management software has not been at the forefront of technological innovation; it has often lagged behind in adopting new advancements. However, the landscape is changing rapidly as more HOA systems begin to embrace modern and cuttingedge technologies to enhance their services. This shift includes the integration of advanced workflow automation and the deployment of artificial intelligence (AI) to streamline operations, predict maintenance requirements, and unlock datadriven insights into community dynamics. These developments signal a promising future for

HOA management, moving toward more efficient, intelligent, and responsive community governance.

As HOAs navigate the complexities of community management, it is becoming clear that the choice of technology employed by management companies is crucial. This decision should be a significant driver in selecting a management company, as the right technological solutions are key to achieving efficiency, transparency, and connectivity. For HOA board members, prioritizing management companies that adopt advanced, integrated technological systems is essential for addressing current challenges and ensuring the association’s future success. Embracing such technology simplifies operational tasks and enriches the community experience, contributing to a more vibrant and cohesive environment. The strategic selection of a technology-forward management company enhances day-to-day operations and positions the HOA to adapt and flourish in an everevolving landscape.

Allen Liou is the cofounder of Assembly HOA, a modern HOA management and technology company dedicated to revolutionizing homeowners associations with digital tools, enhanced community transparency, and streamlined operations. His experience in both tech startups and real estate bridges traditional HOA management with the digital era.

CID CONSORTIUM, LLC

Pulling from more than 45 years of business, CIDC has accumulated a wealth of business experience and expertise through a relentless pursuit of perfection.

Since its inception, CID Consortium, LLC (CIDC) strives to provide excellent financial and operational guidance to communities, board members, managers, and owners of communities big and small in an ever-changing environment.

We believe in building relationships by doing our business transparently and keeping our clients informed. Before sending a proposal, we take the time to uncover what success looks like for your community. Once we are aligned, we will propose a combination of Governance, Finance, and Organizational services specific to your unique needs.

Owners and operators Donald (”Don”) W. Haney, CPA, and Adam P. Haney, CPA, are well known for their role in developing homeowner association industry standards and technology. Don originally started in the industry in 1979 when he formed two corporations: CEO, Inc. and Haney Accountants, Inc. Both organizations laid the foundation for CIDC led by Adam P. Haney, CPA.

Today, CID Consortium, LLC has grown into a team armed with passion and expertise for improving the community living experience of its members. Pulling from 45 years of business, CIDC has accumulated a wealth of experience and expertise through a relentless pursuit of perfection. Fueled by technology and incessant process improvement, the team engages with members on a rich platform, ensuring the community living experience continues to be exceptional. For more information about the services we provide, please visit our website at cidcllc.us.

Managed Wi-Fi Network Connectivity

TAKING COMMUNITY INTERNET ACCESS TO

the Next Level

BY KEVIN FISHER

Growing demand for uninterrupted internet connectivity can make overseeing Wi-Fi networks at multifamily properties increasingly challenging. Residents expect technology that provides convenience, connectivity, and security. Community managers need reliable connectivity and 24/7 monitoring of critical systems.

The recent development of managed Wi-Fi network systems provides a high-speed, reliable, and secure way for residents and property managers to stay seamlessly connected, no matter where they are on the property. Residents can enjoy fast Wi-Fi while relaxing poolside, working out at the gym, or simply walking the grounds. And with robust cybersecurity protections, residents can feel at ease knowing their data and devices are safe from open, unsecured networks.

Managed Wi-Fi goes beyond providing internet access to residents. It also enables secure connectivity for the Internet of Things (IoT) devices that are becoming ubiquitous across multifamily properties. With an enterprise-grade network as the backbone, property managers can connect IoT devices throughout their communities to provide smart security, sustainability, convenience, and entertainment.

Security Cameras and Parking Garages

It is typically difficult to provide reliable connectivity for security cameras in underground parking garages. With managed Wi-Fi, security cameras in the most obscure locations can be networked and monitored remotely, providing 24/7 visibility and early detection of suspicious activity. Managed Wi-Fi also solves the problem of connectivity for residents in underground garages, who are often unable to make mobile calls or access online apps because the garages are not conducive to cellular service and the Wi-Fi signals from their home routers do not reach the garage. This can be a nuisance and can make garages a security threat.

EV charging stations, which are also located in remote areas, can be connected to the managed Wi-Fi network to show the availability of charging stations and monitor charging progress and equipment.

Level

IoT-Enabled Devices

Smart-video intercoms enhance visitor screening, and electronic-access control on doors and gates boosts security. IoT-enabled leak detection systems prevent catastrophic water damage by catching faults early. Automated sprinkler systems maintain lush grounds while being weather-aware to prevent waste. Across common areas like clubhouses, pools, and exercise rooms, multimedia entertainment systems deliver immersive experiences. Other critical systems for heating and cooling (including hard-toreach solar panels) can be connected and monitored 24/7 by managed Wi-Fi.

Freedom to Stay Connected

Managed Wi-Fi enables residents to stay securely connected anywhere on the property, even beyond the range of their home routers. With managed Wi-Fi, each resident’s private network follows them seamlessly through common areas like hallways, pools, and garages. Unlike unsecured communal networks at properties in the past, managed WiFi allows residents to remain on their encrypted network everywhere on-site. This continuous connectivity also extends to all internet-dependent critical systems across the property. With a robust enterprise-grade managed Wi-Fi network, owners can readily embrace IoT technologies to elevate safety, sustainability, automation, and luxury services

to meet modern resident expectations. Managed WiFi provides a flexible infrastructure to keep residents and systems connected property-wide.

Benefits of Managed Wi-Fi

• Increases resident approval ratings by providing fast, reliable internet connections in outdoor and indoor spaces

• Provides more value that sets one apart from the competition

• Increases occupancy rates

• Enjoys five-star-rated customer service

• Facilitates advanced security features with the ability to have 24/7 Wi-Fi-enabled connections to critical IoT devices

Potential Applications

• Integrate mission-critical business applications and IoT devices wirelessly.

• Provide Wi-Fi to indoor areas such as clubhouses, lobbies, and fitness centers.

• Extend Wi-Fi coverage to pools and other outdoor recreation areas.

• Connect to security cameras that provide safe parking garages for residents and tenants.

• Connect video and music entertainment systems in common areas.

• Provide monitoring of property infrastructure, including solar panels and heating systems.

Taking Community Internet Access to the Next Level

Continued from page 15

How are Managed Wi-Fi Networks Different?

• Managed Wi-Fi is monitored, optimized, and maintained by a professional IT services

provider. Unmanaged Wi-Fi is set up and left alone.

• Managed networks have robust tools for performance monitoring, security, access control, and troubleshooting. Unmanaged networks lack these capabilities.

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• Managed Wi-Fi allows for granular control over the network, segmentation of traffic, quality of service policies, and user permissions. Unmanaged networks have basic settings with little optimization.

• Updates, bug fixes, and hardware life-cycle management are handled proactively with managed Wi-Fi. Unmanaged networks miss out on updates, and performance degrades over time.

• With managed services, WiFi analytics provide visibility into usage, congestion, and insights for improving the network. Unmanaged networks operate blindly.

• Managed Wi-Fi providers offer 24/7 expert support for issues and can provide service level agreements (SLAs). Unmanaged networks have no support structure.

• Managed networks are designed with redundancy, failover, and disaster recovery systems. Unmanaged networks have single points of failure. Managed Wi-Fi networks provide the benefit of round-theclock professional management, while unmanaged Wi-Fi is a solo DIY operation. Managed Wi-Fi can bring connectivity to previously inaccessible or problematic areas.

Managed Wi-Fi Considerations

sailinternet.com/mwifi

Before a managed Wi-Fi solution is adopted, the unique physical characteristics of

Continued on page 18

Join like-minded colleagues and learn what is needed to prepare an individual for board service or to better serve your HOA clients.

The program covers the essentials, including the HOA legal environment, fiduciary responsibilities and duties, financial management and reserves, meetings (planning and management), election procedures, board ethics, and soft skills needed to deal with people. The curriculum is brought together with a capstone course on the role of HOA vision, mission, strategy, and core values in common interest developments.

The courses will be available in various formats including workshop, lecture, and lecture/lab. Faculty has been recruited from the most successful and knowledgeable companies in the industry. Currently, eight of the ten courses will be recorded and available on demand. All courses will be offered live via webinars. Two workshops require live, online participation: HOA Board Ethics and the capstone strategy course.

Participants will be given three years from the date of enrollment to satisfactorily complete the ten courses and successfully pass the exam for each course with a score of 70% or better. The examinations will be designed to cover the basic knowledge and skills discussed in the course and to encourage the internalization of the curriculum. After successfully completing the examinations, participants will be awarded a certificate of successful completion of the Echo Board Member Preparedness Program. This is a lifetime certificate and will be noted in the permanent Echo records.

Board Member Preparedness Certificate Program Curriculum 2024:

Good Governance Series (100 series)

100 Leadership & Governance

101 Elections, Voting, and Candidacy

102 Meetings and Best Practices

103 Board Evaluation of HOA Management

HOA Legal Environment Series (150 series)

150 Ask the Attorney: Davis-Stirling Act Overview

151 Ask the Attorney: Laws Other than the Davis-Stirling Act

152 Ask the Attorney: Judicial InterpretationHOA Case Law

Board Ethics (120 Series)

120A Foundations of HOA Ethics Workshop

120B Ethics in Practice Workshop

HOA Financial Management & Reserves (170 Series)

170 HOA Financial Management & Reserves

HOA Board Member Preparedness

Capstone Course (199)

199 A Strategic Approach to HOA Management

To enroll or learn more about the program, contact Connor Zepponi, connor@echo-ca.org, or visit www.echo-ca.org and click on the Echo HOA University program tab.

Taking Community Internet Access to the Next Level

Continued from page 16

the property and any internet connectivity issues for critical devices need to be considered. Does the property have common areas, a fitness center, outdoor public areas, a rooftop lounge, a remote sports area, or underground garages? Are there mission-critical devices that need to be connected and, if so, where is their relative location? Heating, cooling, EV charging, solar panels, gates, doors, intercoms, and security cameras are examples to consider.

When selecting a provider, an important consideration when other factors appear to be equal is the quality and location of their support team. The ability to have support on-site quickly is important if and when a situation arises. Waiting several business days for the service technicians to fly in from another state can

exacerbate a minor technical issue.

Potential providers should quote the design, installation, and management aspects based on the unique details identified. Managed Wi-Fi should be a comprehensive and stressrelieving feature that enhances the satisfaction of residents, pleases the property managers, and even adds value to the property.

Modified Managed Wi-Fi Networks

Sometimes communities opt for a modified plan that provides connectivity to certain areas of the property but not all the individual homes. Use cases include covering garages, cameras, heating/cooling systems, and all common areas, both indoor and outdoor. This can be a robust solution for connecting difficult areas while allowing homeowners to choose

their own independent internet carrier.

What a Managed Wi-Fi Plan Looks Like

A managed network plan should be divided into three areas: design, installation, and management. A wireless network should be created that eliminates coverage gaps and works with every device. Advanced, highperformance devices are installed that allow end users to connect reliably and securely, using leading wireless technology. The network is managed 24/7 to ensure the best Wi-Fi access possible, leaving the property management team to focus on other tasks.

Operational Savings

•

•

Managed Wi-Fi enables substantial operational savings for properties through optimized connectivity. Properties can leverage IoT devices to gain visibility into operations, reduce costs, and create efficiencies by providing enterprise-grade wireless network infrastructure. For example, smart HVAC systems can be connected to adjust temperature based on occupancy, resulting in energy savings. Smart lighting reduces electricity usage by automating fixtures. Infrastructure monitoring of elevators, generators, and piping prevents costly downtime. Granular network analytics identify congestion to optimize performance. With real-time insights into operations, issues can be rapidly detected and addressed before becoming major expenses. The cost savings from reduced maintenance, smart

utility usage, and operational efficiencies can generate significant net operating income (NOI) for properties. Enhanced NOI increases asset valuation. Ultimately, managed Wi-Fi is a high-return investment, providing the robust wireless infrastructure to support cost-reducing IoT innovations.

Absorbing the Cost of Implementation

As residents demand connectivity, some HOAs opt to absorb the costs of implementing robust managed Wi-Fi networks. By providing enterprise-grade wireless as an amenity, properties can attract and retain residents without passing expenses directly to homeowners. The HOA uses part of the annual budget to fund the up-front Wi-Fi infrastructure costs, distributing the impact across all owners. Ongoing management fees may be covered through small increases in monthly HOA dues. Absorbing these network costs centrally allows even community members on tight budgets to benefit from high-speed Wi-Fi, strengthening the property’s appeal. This approach also simplifies billing and management, compared to making owners pay separately. While the HOA takes on the investment risk, well-implemented managed Wi-Fi typically improves satisfaction, gains promotional benefits, and can increase property values. By funding managed Wi-Fi networks, HOAs make them accessible additions that support connected living.

Conclusion

Managed Wi-Fi creates a wireless infrastructure that

connects people and things across a property. It provides complete Wi-Fi coverage, from the fitness center to the pool deck, so residents and guests can stay continuously connected outdoors and indoors. The robust network enables clients to integrate business applications, IoT devices, security cameras, and entertainment systems everywhere on-site. For example, parking garage cameras can increase safety through remote monitoring while common area music systems create immersive experiences. Energy systems can also connect to optimize efficiency. With this integrated wireless platform, managed Wi-Fi allows clients to unlock the full potential of smart technologies to

serve people and transform their properties. Comprehensive connectivity supports modern lifestyles by weaving the digital and physical worlds together.

Kevin Fisher has spent his career revolutionizing the high-speed internet access experience for consumers and businesses. He has received more than 20 U.S. patents, and his team developed the core technology behind the awardwinning line of 2Wire HomePortal routers deployed by AT&T/U-verse and other major phone companies. As chief product officer for Sail Internet, Kevin is responsible for strategic product innovation, design, and development of residential and commercial internet solutions.

Navigating Vendor Contracts for Homeowners Associations

Key Considerations and Common Pitfalls

BY CRAIG L. COMBS

One of the critical tasks of managing a homeowners association (HOA) involves negotiating and signing contracts with a wide variety of vendors for services such as landscaping, pool maintenance, security, and (in a timely example used below) balcony inspections. These contracts (or “agreements” – the terms are used interchangeably here) not only ensure the smooth operation of the community but may also have significant financial and legal implications for the HOA. Given the range of complexity of these agreements, it’s crucial to approach vendor contracts with diligence and foresight.

Understanding the Scope of Services

The foundation of any vendor contract is a clear, detailed description of the services to be provided. This clarity prevents misunderstandings and sets the standard for the vendor’s performance. It is essential to specify the work’s scope, including what services will be performed, where, when, and how often. Any special or affirmative obligations of the HOA should

be explicitly stated to avoid assumptions that could lead to disputes.

Assessing Vendor Credentials and Experience

Before entering into a contract, the vendor’s licensing, experience, and reputation should be vetted. This includes checking their references and ensuring they have specific experience in working with HOAs. Vendors familiar with the unique needs and challenges of HOAs are more likely to provide satisfactory service.

Insurance and Liability

The vendor must carry sufficient insurance, including general liability, workers’ compensation, and, if applicable, professional liability insurance. This protects the HOA from loss in case of accidents, damages, or negligence. It is advisable to require the vendor to name the HOA as an additional insured on their policy and to provide proof of insurance before commencing work.

Pricing, Fees, and Payment Terms

A transparent and detailed pricing structure is necessary to avoid misunderstandings and to permit the HOA to budget appropriately. The contract should clearly outline the fees for regular services and specify rates for any additional services required. Payment terms, including invoicing frequency, payment deadlines, and any late fees, should be clear to both parties. Where appropriate, it is also wise to discuss and include terms regarding adjustments to service fees, such as annual increases.

Duration and Termination

The importance of the termination provisions in an agreement cannot be overstated. The contract should specify start and end dates, including any options for renewal. It is critical that both parties understand how and under what circumstances the contract can be terminated. This includes setting out the notice period required for termination by either party and detailing any early termination fees or conditions. Flexibility for the HOA is

essential, especially if the vendor’s performance is unsatisfactory; the HOA should be able to terminate for cause.

Performance Standards and Remedies

Specific performance standards and benchmarks that the vendor must meet should be defined, including quality of work and timelines. It is equally important to outline the remedies available to the HOA if the vendor fails to meet these standards, such as the right to withhold payment or terminate the contract. Including a clause that allows for regular reviews of the vendor’s performance can also be beneficial. Any terms that require the HOA to give the vendor notice and opportunity to cure before the HOA can terminate the contract for cause should be reviewed to ensure that such terms are reasonable.

Indemnification

An indemnification clause is an important inclusion in vendor contracts, since it protects the HOA against losses resulting from the vendor’s

Contract Concepts at Work: Sample Scope of Services of an SB-326 Balcony Inspection Agreement

With a deadline of January 1, 2025, to complete inspections of exterior elevated elements (EEEs), many boards and managers will be vetting vendor contracts for these inspections throughout 2024. Even though various vendor agreements apply to the same project, they can vary widely in their terms and costs.

Scope of Services: A good balcony inspection contract will reflect the number of EEEs at the project and how many of those EEEs will be inspected to provide 95% confidence that the results from the sample are reflective of the whole, with a margin of error of no greater than plus or minus 5%. The contract will specifically state that the scope of work is intended to satisfy the requirements of SB-326 (or Civil Code § 5551).

Where destructive testing is required, the vendor will offer to install prefabricated round metal vents in the cored holes that can be used in future years for inspection to avoid further damage to common areas.

Navigating Vendor Contracts for Homeowners Associations

Continued from page 21

actions, including lawsuits. This clause requires the vendor to defend the HOA and hold it harmless for any damages, liability, or legal expenses arising from the vendor’s negligence or failure to perform according to the contract.

Common Pitfalls

• Vague Service Descriptions: One of the most common pitfalls in vendor contracts is the lack of a detailed service description. This can lead to ambiguity about what is expected from the vendor, which can result in disputes and dissatisfaction with the services rendered.

• Auto-Renewal Clauses: Auto-renewal terms are one of the most common traps for unwary boards. These terms are typically phrased in the form of “Unless written notice is given not less than 60 days prior to the end of the contract term, this contract shall automatically renew for one year.” Especially common in management agreements, automatic renewals without affirmative consent from the board can ensnare the HOA in an undesirable contractual relationship for longer than desired. An active agreement from both parties should be required in order to negotiate a contract renewal. If the vendor insists on automatic renewal terms, then any period for giving notice of termination should be calendared.

• Not Observing Notice Requirements: Agreements sometimes call for a specific method and manner of giving formal notice. For example, the board and management may be used to emailing the vendor, but the contract may require notice to be given using a different method (e.g., certified mail to the vendor’s corporate headquarters).

• Overlooking Conflict Resolution Methods: In the absence of a predefined method for resolving disputes, disagreements can escalate, leading to legal battles. Including mediation and/or arbitration clauses can offer a simpler, less costly way to resolve conflicts (although, depending on the type

of dispute, arbitration is not always less costly). A favorable conflict resolution clause is one that requires the parties to attempt mediation before litigation or arbitration, and if one party unreasonably refuses to participate in mediation, that party loses their right to recover costs and attorneys’ fees.

Negotiating and managing vendor contracts is a challenging but essential part of running a homeowners association. By paying careful attention to the contract terms, ensuring clarity and fairness, and anticipating potential issues, HOAs can establish productive, long-term relationships with their vendors. This not only helps in maintaining

the quality and value of the community, but also safeguards the HOA from unnecessary risks and liabilities. When in doubt, it is always wise to consult with legal counsel specializing in HOA matters to review contracts before signing.

Craig L. Combs is the managing partner of Community Counsel, a law firm specializing in providing general legal counsel and collections services to homeowners associations. Community managers and board members call upon Mr. Combs to draft, review, and negotiate a wide variety of vendor agreements and, when necessary, engage vendors in conflict resolution through mediation or litigation.

Echo Board of Director Candidacy and Election Announcement

Echo will conduct the annual election of its board of directors in early fall. The results of the election will be announced at the Echo annual membership meeting, which will be held on November 21, 2024, from 9:00 to 9:15 a.m. The meeting will be online only.

Candidate nomination application forms can be requested via the following email: elections@echo-ca.org. For the application to be considered by the Echo nominating committee, it must be completed and received by Echo no later than 5:00 p.m. on July 31, 2024.

For more information, contact Dave Zepponi dzepponi@echo-ca.org

Don’t miss an opportunity to get the education you need – and the networking and connection you want. Register today!

Attend an Echo In-Person Event! Resource Panel Meetings

Educational Seminars

Learn from an acclaimed faculty delivering essential knowledge for HOA boards and homeowners.

• Ask your questions of on-site attorneys

• Visit with industry experts at exhibit tables

• Meet and connect with board members from neighboring communities

Northern California Educational Seminar June 22 , 2024 | 9:30 am – 1:15 pm

Come and reconnect with your peers and attend an upcoming Resource Panel in your region. These events are held in a casual atmosphere to enable homeowners, board members, managers, and other professionals to hear about important topics presented by experts in the HOA industry. Click a Resource Panel meeting location below to sign up to receive information.

Click a button or use the link to sign up to receive information on Resource Panel Meetings near you! bit.ly/SanDiegoRP

The Echo Club at Rossmoor

Invite-a-Homeowner

Individual members will receive a one-time discounted annual membership rate of $75 ($95 without discount) if they are invited by another Echo member! bit.ly/centralcoastRP

Register Today for an Echo in-person event!

WELCOME TO ECHO’S

New Professional Service Providers

Management that is refreshingly local, dedicated, and experienced! Citrus HOA Management is a local, full-service HOA Management company located in downtown Redlands, California. We proudly and successfully manage HOA communities of all sizes throughout Southern California. We are experienced in managing Homeowners Associations and Professional Owners Associations.

Our management services include, but are not limited to, the following: billing and collections, an online portal, electronic delivery, an in-house accounting team, dedicated service coordinators, project coordination, in-house maintenance technicians, onsite inspections, board meetings and board packets, 24/7 emergency availability, and insurance.

The Citrus HOA Management team is a close-knit and hardworking team of experienced community managers, diligent financial controllers, dedicated service coordinators, excellent support staff, and inhouse maintenance technicians. They are committed to managing your association with the utmost attentiveness and integrity.

As your neighbor, it matters to us how your community is managed! Upgrade to Citrus HOA Management today!

Jeffrey Gupta

Operations and Team Lead (909) 435-0099 x 403 jeffg@citrushoa.com citrushoa.com

Andersen was founded in 1903 and has remained committed to making windows and doors that are different and better. It has led us to innovate new products, set higher standards for our entire industry, and ultimately be the #1 trusted and recommended window and door brand*.

*2022 Andersen brand surveys of U.S. contractors, builders, architects & homeowners

Kari Funaro

Business Development Rep.

Home Improvement

Andersen Windows (925) 667-5328

kari.funaro@andersencorp.com andersenwindows.com

Please note the updated address information for these Professional Service Providers:

Hughes Gill Cochrane Tinetti, P.C. 1350 Treat Blvd., Ste. 550 Walnut Creek, CA 94597 (925) 926-1200 hughes-gill.com

SwedelsonGottlieb

One Sansome St., Ste. 3500 San Francisco, CA 94104 (415) 762-1889

11900 W. Olympic Blvd., Ste. 700 Los Angeles, CA 90064 (310) 207-2207 lawforhoas.com

Providing Quality Building Management Services To Our Valued Customers

Throughout The Greater San Diego Area.

We are committed to serving multi-unit & commercial properties and are experts at crafting a beautiful, safe, and clean environment for the community to live, work, shop, or play. Our partners are typically the most intelligent and top performers for their companies because they know that we make their job easier and make them look good.

At Building Resource Management, we are your trusted partner for all your construction and building needs.

With a comprehensive range of services, we offer expert solutions in general construction, carpentry, plumbing, electrical work, demolition, maintenance, repair, interior and exterior enhancements, energy services, and more. Whether you’re planning a new project, need repairs, or want to enhance your building’s energy efficiency, our skilled team is here to exceed your expectations.

Daniel O’Reilly Director of Sales

(619) 509-6286

daniel@brmsd.com brmsd.com

CONSTRUCTION PLANNING & MANAGEMENT

Let ADM be your guide through the complex task of construction planning and management.

AD Magellan (ADM) is an Architectural design and project management firm. Specializing in assisting multifamily communities, performing inspections, and developing scopes of repair as it relates to roofs, decking, waterproofing, etc. Our company was founded to advocate for our clients, manage costs, and protect their assets.

We service SD, OC, LA and northern CA

We also specialize in:

• Architectural Design

• Scope Development/Bid Facilitation

• Project Management

• Roof Inspections

• SB326/SB721

Ryan Moldt Business Development (760) 201-3372

ryanm@admagellan.com

Tailored Management Solutions is a private full services community association management firm representing communities throughout the Bay Area. Our staff of senior certified community association managers is committed to offering elite services with a tailored hands-on approach in both management and customer service for directors, members, and vendors. With a comprehensive and compassionate mindset for policy governance and asset management our clients receive services of the highest quality.

Our mission at Tailored Management Solutions is to provide personalized and professional management services that optimize the wellbeing of homeowners and foster a thriving, harmonious community. Our goal is to instill a sense of comfort and unity within the membership by enhancing community standards for an optimum quality of life

Maria Hernandez, CCAM-PM, COO (925) 584-7330

maria@tailoredmanagementsolutions.com tailoredmanagementsolutions.com/

Changes to the Echo Legislation Tracker

BY DAVID ZEPPONI, ECHO CEO

The final date for the introduction of state legislation was February 16. Unfortunately, this was after the production deadline for this magazine. Traditionally, the final day to drop legislation is packed with new bills, and the language contained within them is honed and negotiated until the last minute. Since it takes approximately four weeks to lay out, publish, and distribute the Journal, legislative updates are usually already stale by the time our readers receive them. To this end, Echo has decided to change its legislative reporting process to keep our readers apprised in a timelier fashion of legislation that impacts HOAs.

After wrestling with this problem for several years, we embarked on finding a technological solution. We now have a software application that will keep us up to date and will facilitate comments from our membership. It not only provides easy access to the status and substance of the bill, but it purportedly also will allow us to efficiently track amendments to legislation and receive member comments.

Starting with this issue, we will be posting a report to our website with current analysis, positioning, and bill status. The report will be generated by a few qualified volunteers in the HOA industry who understand the implications of state legislation for HOA boards and communities. The content of this report will be generated behind the curtain of the software that is connected to the legislative process. Our legislative advocates will receive the information they need to make informed, humanbased decisions.

The analyses will be reported in the Echo Journal, Echo Insight, and on the Echo website. The website will be open to all Echo members, and it will be interactive. Members will be able to provide insight into how a particular law might affect them, and they will be able to make recommendations as to how they would like to see the proposed legislation amended.

Echo will continue to have a “Legislative Update” page, but instead of trying to fit the fast-paced schedule of legislation into the lumbering schedule of a paper magazine, the Echo Journal will publish more insightful articles by noted political wonks like Nathan McGuire, Mark Guithues, and, of course, me. These articles will have a longer life and hopefully will be more insightful than what has been traditionally published.

The Echo Insight, a more frequent periodical, will be used to provide readers with timely information and analysis about legislation. We also will be able to answer, compile, and utilize member online comments as powerful content for Insight — and, of course, in the legislature.

This new strategy is a balance between speed and currency, thoughtful analysis, and leveraging different communication modes to better solicit and disseminate information and positions about prospective state legislation relevant to Echo members.

The key here is that Echo will be able to automate much of the mundane by using technology to sort through thousands of bills and track only those most important to our constituency. Leveraging technology allows us to know when a bill will be heard, what changes are proposed, and who supports or opposes the legislation. It also allows us to receive valuable and timely input from our members. So, if the software works well (or, frankly, only partly works well), HOA associations and the community of Echo members will have a more effective and louder voice in the halls of the capitol and within our communities.

The voluntary contributions in time and money of Echo members to help support our advocacy efforts is incredibly important. It is tough (especially in California with a professional legislature) to be effective in representing the interests of our large

community. Maybe, just maybe, we’ll be able to mobilize the silent majority of the 17,000,000 residents living in California HOAs to bring some sense to the laws of this state – laws that will allow us to govern HOAs better and with reasonableness and a lighter load for our volunteer leadership. So, we are taking a step to match our contemporary communication channels with our needs. If a member is interested in the status of a bill, they need only go to our website tab and track the bill there. If they would like a more in-depth analysis, they will find it in the Echo Journal, the Echo Insight, and on the Echo website. No doubt this is an ambitious strategy, but we feel it is best given our size and the needs of our membership.

The following legislation has been introduced and is awaiting our analysis (box right). We likely will remain vigilant and focus on five to ten bills this year. Some bills will not have “legs” to progress in the session, and others are simply nonsensical or ludicrous and are not deserving of a detailed look because they will die. But some legislation will meander its way through the legislative process, both chambers, and will potentially be signed by the governor and become law. For those bills we endeavor on behalf of the Echo membership.

Bills Under Review

The bills listed below are under review. Please look for our position on them in the Echo Insight and on the Echo website.

ASSEMBLY BILLS

• AB-2114: Building standards: exterior elevated elements: inspection

• AB-2159: Common interest developments: association governance: member election

• AB-2453: Weights and measures: electric vehicle chargers and electric vehicle supply equipment

• AB-2460: Common interest developments: association governance: member election

• AB-2969: California Housing Finance Agency: accessory dwelling units

• AB-2996: FAIR Plan Association

• AB-3057: California Environmental Quality Act: exemption: junior accessory dwelling unit ordinances

• AB-3126: Housing: accessory dwelling units

SENATE BILLS

• SB-1055: Accessory dwelling units: regional housing need

• SB-1077: Coastal resources: coastal development permits: accessory and junior accessory dwelling units: parking requirements

• SB-1095: Cozy Homes Cleanup Act: building standards: gasfuel-burning appliances

• SB-1164: Property taxation: new construction exclusion: accessory dwelling units

• SB-1211: Land use: accessory dwelling units

• SB-1470: Construction defect cases

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