ECHO Journal - October 2015

Bank Loans for HOA’s, Part 1 p.8

Working Successfully with Committees

What Should You Do To Prepare For a Disaster

p.16

p.20

Serving Community Associations

Barking Dogs

p.26

Effective Strategies for Handling Mold In Your Community p.30

October 2015 echo-ca.org

Bank Loans for HOA’s

p. 8

news from ECHO

News From ECHO October 2015 Fall’s here, and it’s all about planning.

Your pro forma budgets should be in process. Remember to include ECHO membership in that budget!

If your association requires significant improvements or repairs, plan for how to fund the construction. There are many options, one of which may be a bank loan. Learn from an HOA banker what the considerations are, and how to prepare so the loan is approved.

Committees can be your best approach to tackling tough issues in your association. Learn how to make them work successfully.

Emergencies happen. Are your prepared? Even if your association has a plan, do you? Help is available.

Some things you don’t plan for, they just happen. Like barking dogs.

What to do? We offer some guidance on how to handle this nuisance.

And, handling mold in your community is a job that must be done carefully. Be forewarned and forearmed. Be protected, and safely manage the problem.

Lastly, we announce that our Annual Meeting of Members will be held on November 7 at 9:30 am, at the Hayes Mansion, 200 Edenvale Ave, San Jose, CA 95136. We invite you to join us.

And, most importantly, make sure the ballot recently sent to your Board President is returned to us so your association’s vote is counted.

We thank you for your membership, and desire to ensure it is a great experience. Please let us know how we are doing.

Best,

Brian Kidney Executive Director

October 2015 | ECHO Journal

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CONTENTS

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8

30

16

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Bank Loans for HOA’s, Part 1 Many HOA’s have difficulty in determining how to finance their large (and complicated) repair/reconstruction projects. It can take many months of guessing about (1) paying from reserves (2) raising the regular assessment (3) going to a special assessment (4) applying for a bank loan (5) a combination of options, to come to the right conclusion.

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Working Successfully with Committees “Committee” conjures up to many people images of unproductive meetings where actions bog down because of bickering among the group’s disparate members. But it doesn’t have to be that way. In fact, knowing how to work successfully with committees can facilitate information gathering and expedite decision-making—you just have to know how to utilize committees properly.

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What Should You Do To Prepare For a Disaster?

Whether or not your community has adopted formal plans or protocols for emergencies, there are simple steps that you can, and should, take to become better prepared for these unpredictable and extremely dangerous events.

26

Barking Dogs How much barking is too much? What constitutes a nuisance?

Is the neighbor’s complaint legitimate or is he or she hypersensitive? Boards need a basis for differentiating valid complaints from unreasonable ones. To that end, boards should adopt definitions in their Rules and Regulations regarding nuisance animals.

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Effective Strategies for Handling Mold in Your Community Mold has become a problem affecting many associations, both young and old. Knowing how to handle a mold complaint and having a plan in place could save your association significant money and minimize exposure to personal injury claims.

The ECHO Journal is published monthly by the Educational Community for Homeowners. The views of authors expressed in the articles herein do not necessarily reflect the views of ECHO. We assume no responsibility for the statements and opinions advanced by the contributors to the magazine. It is released with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service.

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

Acceptance of advertising does not constitute any endorsement or recommendation, expressed or implied, of the advertiser or any goods or services offered. We reserve the right to reject any advertising copy.

Copyright 2015 Educational Community for Homeowners. All rights reserved. Reproduction, except by written permission of ECHO is prohibited.

The ECHO membership list is never released to any outside individual or organization.

ECHO 1960 The Alameda, Suite 195 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours Monday-Friday 9:00am to 5:00pm Board of Directors and Officers President David Hughes Vice President Karl Lofthouse Treasurer Diane Rossi

DEPARTMENTS

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News from ECHO

6

2015 ECHO Educational Calendar

7

Featured at echo-ca.org

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Monterey Educational Seminar — October 17th.

36

ECHO Bookstore

39

Advertiser Index

40

ECHO Event Calendar

41

ECHO Volunteers

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Legislation at a Glimpse

Secretary Carly Melius Directors Jerry L. Bowles John Garvic Adam Haney Stephanie Hayes David Levy

Robert Rosenberg Brian Seifert Wanden Treanor Steven Weil

Executive Director Brian Kidney Director of Marketing & Membership Carly Melius Director of Communications Tyler Coffin Legislative Consultant Mazzoni and Associates Design and Production Design Site ECHO Mission Statement Serving Community Associations

October 2015 | ECHO Journal

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2015 ECHO educational calendar

San Francisco

October 17 Monterey Educational Seminar (see page 29) Embassy Suites Monterey Bay Seaside, CA

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featured at echo-ca.org

Timely tips, fresh insights, and legislative updates — always find what you need by visiting our website.

To gain access to all of ECHO’s articles, sign up for a free account: email ECHO at newaccount@echo-ca.org.

Articles California Makes Artificial Grass Permanent

In September, Governor Jerry Brown signed AB 349, a bill that requires HOAs to approve owner requests to install of artificial grass. The bill passed with an urgency clause, making it effective immediately. In addition, a provision of the bill prohibits HOAs from requiring owners to remove artificial grass after the drought and state of emergency is over. Read the latest on our blog.

Visit: Blog

What Should Your Artificial Grass Policy Address?

With a new law requiring HOAs to permit artificial grass, associations should update their landscaping policy to regulate the type of turf, installation process, licensing, insurance, and more. This article lists many aspects of turf installation that boards may want to address in that updated policy.

Educational Topic: Landscaping

Anticipate Roof Drainage Problems

California is experiencing an unprecedented spell of dry weather. HOAs should expect that weaknesses in sun-baked buildings will be exposed when the rains arrive. But neglected gutter and drainage systems will make the problem worse by allowing water to run over damaged walls and seams.

This article offers tips on how to prepare your gutters before the storm.

Educational Topic: Roofs

How to Plan Your HOA’s Budget

The Annual Budget Report must be mailed no later than December 1st! Hopefully your association has begun its budgeting discussions, but this article will help you create a better budget no matter where you are in the process.

Familiarize yourself with HOA budget laws and best practices.

Educational Topic: Budget

Facebook Join Our Facebook Community Want to see pictures from recent events? Comment on our legislative activity? We only put the latest news up on Facebook, and we’d love to hear from you. Share your experiences, read important and amusing HOA news, and connect with your fellow HOA owners on ECHO’s Facebook page. facebook.com/echoorg

ECHO Journal Read the ECHO Journal on the ECHO website before it arrives at your door. We often post the latest issue on or before the beginning of each month. Log in to browse the latest articles, or read from a huge library of past issues.

Find in: echo-ca.org/journal

October 2015 | ECHO Journal

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BANK LOANS FOR HOA‘S PART 1

By Karl Lofthouse

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ssume Elm Street HOA has been planning a roof replacement for several years. The reserve study says it should cost $400,000 and should be replaced this year.

The Assn. has religiously transferred money to the reserve fund over the years and figured that when the time comes, the cost of the new roof would be covered.

They would only need to procure two or three bids, hire a contractor, complete the job, and move on to the next project. Well the time has come and the board has gotten a nasty surprise. The bids have come in at $700,000, making the reserves $300,000 short.

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Let’s assume further, that there are multiple factors that strongly favor replacing the roof now rather than later; serious deterioration problems, cost increases associated with any delay, and other major repair projects looming on the horizon. So Elm Street has decided to go ahead with the roofing project as scheduled. The next decision is how do they pay for this increased cost?

1. Move money from, or delay other projects?

2. Special assess the owners (which might be many thousands of dollars)?

3. Apply for an HOA bank loan?

4. A combination of the above?

Considering the Financial Pre-View Many HOA’s have difficulty in determining how to finance their large (and complicated) repair/reconstruction projects. It can take many months of guessing about (1) paying from reserves (2) raising the regular assessment (3) going to a special assessment (4) applying for a bank loan (5) a combination of options, to come to the right conclusion. There is a better way and the Association’s HOA banker should be able to help.

Can an HOA get a loan approved subject to special assessment approval?

Yes, this certainly is a possibility and happens quite frequently. So instead of doing everything on a linear basis (waiting for the S/A approval, before applying for the bank loan; or vice versa) the loan can be approved “subject to” certain things happening (approval of the S/A, receipt of an attorney opinion letter, or the contractors contracts, etc.). That way multiple things can happen concurrently, thus shortening the total timeline.

And as soon as the “subject tos” are cleared the bank loan can move ahead right away.

Bank Loan combined with a Special Assessment More often than not, the financing solution is a combination of the two options. This makes sense because most of the time it is not possible to collect the entire special assessment at one time. In fact, a special assessment ballot with just one option

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(payment in full) could be doomed to failure. Thus a common idea for most HOA’s would be to give at least two payment options in order to have a good chance at obtaining the owners approval.

1. Pay the S/A up front in a lump sum.

2. Pay the S/A on a monthly schedule, and over several years, with interest.

While employing this combined financing there are several things to keep in mind. Experience has shown that at about ½ of the S/A money would be collected up front. An HOA bank loan, to Elm Street could then be used to accommodate those that would be paying monthly (these monthly S/A payments, collectively, should be about equal to the Assn’s loan payment each month). The Assn. would have enough money in the year of the project to pay contractors, while collecting from the

monthly S/A payers over time. It is a good idea to include a simple, extra question, on the S/A ballot, that being, which method the owner intends to use in paying his/ her S/A. This then could reaffirm the size of the bank loan. Of course, it is also always a good idea to consult with the association’s attorney before sending a ballot, just to make sure that it incorporates all necessary wording and that it is done in accordance with Davis Stirling.

Check the Governing Documents for Hurdles Each HOA’s situation is unique, so check the governing documents (Articles, By Laws, CC&R’s) for legal hurdles, such as: Which aspects of the project might require a vote of the owners? Depending on the way the HOA’s governing documents were written, as many as four votes may be required; the project itself, the special assessment, the bank financing and the pledging of HOA assets as loan collateral. What sorts of votes are

HOA banks love to say YES to HOA loans. They just want to assure themselves that the loan will be repaid within the terms agreed upon.

2015 Condominium Bluebook

Some common loan purposes

A Complete Guide to Condominium Living

Member Price: $17.00 Non-Member Price: $25.00

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Other things to consider Other items of information an HOA bank considers are as follows: Are the owners aware of the desire to get a bank loan?

Is the board legally authorized to commit the HOA to this bank loan? Also, the bank representative will probably visit your beautiful HOA to take pictures.

Amazon customers gave it a five-star rating

This well-known compact guide for operation of common interest developments in California now includes a comprehensive index of the book and a chapter containing more than 200 frequently-asked questions about associations, along with succinct answers.

required for approval? A simple majority, a majority of a quorum or a super-majority of the homeowners may be needed for approval. And is this percentage different for each approval required?

HOA boards may not often refer to these documents in the normal course of business, but when considering a large project, requiring a loan, it is a good idea to do so. And reviewing them early in the process will help the Board craft a plan of action to encourage owner approval and to manage the construction and financing efficiently. It is a good idea to get the Assn. attorney involved since the bank may require an attorney opinion letter.

This letter would give assurance to the bank that all approvals were conducted in accordance with the Assns. governing documents and also within compliance of the California law. If this has not happened appropriately, then the process could be legally challenged and the loan could be at risk.

Order today from ECHO!

Call 408-297-3246, fax at 408-297-3517 or visit us online at store.echo-ca.org

1. Decks/balconies (repair, rebuild, replace) 2. Re-roofing, Re-siding & Painting

3. Structural, termite & dry rot repairs

4. Waterproofing & window replacement 5. Mechanical, Electrical &

Plumbing systems repair/replacement

6. Asphalt repairs 7. Landscaping 8. Seismic repairs

9. Elevator repairs 10. Litigation expenses 11. Co-generation

system installations 12. Solar installations

13. Landslide repairs

Working with trained HOA professionals The bank will be impressed with an HOA that has chosen to work with trained HOA professionals. This will leave fewer items to question and will insure that little has been forgotten. The more the HOA has a tendency to rely on professionals, the more comfort the bank will have when considering the loan possibility.

The Mgt. Company can bring the other professionals to the table, referring to proven companies with good track records. They often have worked with other HOA’s projects and have a sense of which companies do a good job, or which professionals would be a good fit for their HOA client.

Construction Managers will have a good idea of what needs to be done during the project. They can sometimes give a good

preliminary estimate of costs (since they work with contractors all the time) and can quickly get answers to pertinent questions from their contacts. They can create the eventual scope of work, prepare bid documents, send to a list of qualified contractors, conduct the walk-through, receive the contractor’s proposals, compare them against each other, assist the board in the selection process, and then manage the project. It is money well spent.

The Contractor, already a specialist in his field, can be experienced at working with HOA’s, as well. Knowing how to deal with individual homeowners during the disruption of a construction project is a skill that can make the difference between a smooth running project and one that is not so smooth.

The Attorney can check the governing documents to make sure of the different votes needed for each aspect of the project (the project itself, the special assessment, the bank loan, etc.).

He/she, should be utilized to prepare the ballot, making sure that everything was

October 2015 | ECHO Journal

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done in accordance with the law. The Attorney should then be the person that reviews all the contractor’s contracts before being signed by the board.

Of course the attorney will prepare the opinion letter for the bank loan.

And finally, he/she could review the loan documents.

Working with a Banker The HOA banker should be able to create a financial projection that would give a fairly good idea of how a loan combination could work in the financing of the project. He/She should be able to determine:

1. How much could come from reserves.

2. Whether the regular assessments (and by consequence, the reserve

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up with a financing package that will meet the needs of the Assn. while at the same time being a loan that will work for the bank.

4. How a loan could be structured within a combination of the above actions.

This should be done early in the planning of the project as it will then help smooth out some of the decision making later on. As meetings with the CM, Architects, Contractors, etc. progress, and as the cost information changes, feed those changes to the HOA banker as updates to the financial projection and this end product should then become the very basis of the HOA loan. Give the banker the remaining items that are requested. He/She will include these along with a narrative that goes with and explains the numbers and submit the loan for approval. The HOA banker becomes part of the project team though need not attend every meeting.

And along the way the Assn. is assured that what is being contemplated, they can actually finance.

By sharing this information with the HOA board treasurer, or the HOA’s agent, they might be able to add pertinent details that could then be combined into the projection, till together they have come

Karl Lofthouse is vice president of Heritage Bank of Commerce, which specializes in banking and loans for homeowners associations. Karl also serves as vice president of the ECHO Board of Directors.

contribution) could or should be raised, and by how much.

3. Whether a special assessment would be needed and how much it should be.

WORKING SUCCESSFULLY WITH COMMITTEES

By Tim Polk “Committee” conjures up to many people images of unproductive meetings where actions bog down because of bickering among the group’s disparate members. But it doesn’t have to be that way.

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n fact, knowing how to work successfully with committees can facilitate information gathering and expedite decisionmaking—you just have to know how to utilize committees properly. Committees can be the backbone of any community association. Productive and effective committees can mean the difference in a well-run and effective community association.

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oards of community associations can streamline operations by using their committees effectively.

It is important to understand that the purpose of a committee is to gather information and to make recommendations to the board of directors on specific issues or areas of interest.

Coming up with a solution is not necessarily the committee’s objective; rather members should be entrusted with investigating a matter, uncovering options that the board can consider before making a final decision on a situation, and conveying opinions of the homeowners to the board. In this way, committees are useful vehicles to broaden communication between the board and other association members.

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Boards of directors should consider four elements when forming active committees:

1. PURPOSE

be established by the board of directors.

The charter should include:

a. committee purpose b. powers and duties

c. budget

The board must clearly define each committee’s primary objective. It is up to the board members to make the committee aware of the scope of its responsibilities.

Committees make recommendations; they cannot set policy per the association’s bylaws. Using the information and recommendations provided by the committee, the board is responsible for changing policy, if necessary, in order to resolve a situation.

2. COMMITTEE CHARTER

d. structure for reporting to board Specific objectives and deadlines must be set by the board of directors. If the committee loses sight of its goals, it can become fragmented and focused on specific issues. Thus, it is important for committee members to understand the difference between goals of the committee and their personal goals. Committee members must realize that their actions should be based on the goals of the association, not their own personal needs.

3. PROCEDURE A “charter” for each committee needs to

Each committee should adopt a set of procedures and methods by which they conduct their business. These often include adopting Roberts Rules of Order, establishing regular monthly meetings, keeping minutes of each meeting and providing written reports to the board of directors. To be successful, committee meetings must be structured.

4. REWARDS Recognition and appreciation for a committee’s input and hard work surely will lead to successful committees and enthusiastic members. Boards should not overlook the effectiveness of a simple thank-you note, an acknowledgment in the community newsletter, or a plaque presented at an annual meeting. Committees whose contributions are acknowledged are more willing to give their time and effort to their association.

The strength of a committee lies in its chairperson; effective leadership will help members operate as an integrated group. The committee chairperson should prepare for the meetings by laying the necessary groundwork for the assigned tasks, prepare an annotated agenda, review committee’s goals and actions taken to date, and clarify questions with the association president prior to the meeting.

• Providing information relating to the pros and cons of an issue.

• Encouraging all members to voice their opinions.

• Talking to the group, not to individuals.

• Ensuring complete minutes of the meeting are compiled and distributed to members.

Committees provide an excellent opportunity for homeowner involvement. It is the chairperson’s responsibility to recruit volunteers whose interests, job-related skills and previous backgrounds will provide a good mix of mature, successful, experienced and knowledgeable members. Remember to include new residents for their fresh ideas and new perspective as well as long-term residents who can provide balance and guidance.

Committees perform an important function in the effective operation of community associations. The opportunity to participate on committees and meet the challenges of community association living enhance the members’ sense of belonging and contributing.

Working effectively with committees is integral to any association’s success.

Susan Green was formerly the Northern California area manager for The Merit Companies, a statewide management company.

Other helpful guidelines include:

• Finding a convenient meeting room with the equipment needed for the meeting.

• Selecting a time and place to maximize attendance.

• Starting the meeting on time and adhering to a definite agenda.

• Briefly stating the meeting’s purpose at the beginning of the meeting.

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What Should You Do To

by Thomas J. Connelly

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Prepare For a Disaster?

W

hen a disaster or emergency occurs we tend to rely upon our community leaders to have a plan for responding

to and mitigating the effects the event has on the community in general, as well as for expediting the recovery process. In most cases, this means governmental leadership and public safety resources. For common interest communities we also turn to our own community leaders (board members and property managers) when a disaster or emergency occurs. Directors and managers are typically the first ones that we turn to for direction, guidance and support.

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opefully, your community has adopted formal policies and guidelines to follow when an emergency or disaster occurs. I also hope that your community leaders (board members) are trained and prepared to respond and provide sage leadership in these situations.

The focus of this article, however, is not on the role of the board or community leaders when an emergency or disaster occurs. Instead we will examine what you can do as an individual homeowner or resident should do to enhance your ability to survive a disaster event with

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the least amount of personal upheaval and stress.

Whether or not your community has adopted formal plans or protocols for emergencies, there are simple steps that you can, and should, take to become better prepared for these unpredictable and extremely dangerous events.

Let’s take a look at the steps you can follow, not necessarily in the order of importance:

1

First and foremost, you should determine whether or not there is a formal disaster and emergency response plan for your community.

The best way to find this out is to ask the board or your property manager. If there is a formal plan, get a copy of it and familiarize yourself with it. There will be important information in the

plan that you should know and understand, as it will guide your personal planning activities. Hopefully, the community plan addresses communication and information gathering and dissemination along with evacuation protocols for the community. The community plan may also contain critical contact information, evacuation route alternatives, staging areas for displaced residents, community maps, utility shutoff locations, and other helpful information to have when an emergency occurs.

2

If your community has no formal disaster and emergency plan, you should start asking questions!

Why is there no plan? Who will take responsibility within the community if an emergency were to occur? Will an unmanaged event create a state of chaos within the community? Do community leaders demonstrate an acceptable amount of caring and

concern for the residents and community in general? What will happen if residents are displaced? And the list goes on‌ In my experience, I know that any community with the foresight to prepare for emergency and disaster situations and with leaders who are willing to assume an active role in making a coordinated response in disaster or emergency situations provides an elevated level of safety for its owners and residents and enhanced protection of community assets (individual and collective).

3

Know the best and safest escape and evacuation routes from your residence.

This includes egress from your residence and also from the premises if necessary.

When planning these routes, make sure to consider alternative routes and different modes of escape (on foot, in vehicles, bicycle, etc.). You may have considered one escape route, but that route is not

available as a result of the disaster situation (fire, hazards, air quality, etc.).

Or, you may have planned to drive from the premises in an emergency evacuation, but your vehicle is inaccessible because of the emergency circumstances.

If you live in a multi-story building or home, plan escape routes from the upper stories. This might require the staging of a ladder or purchasing an emergency rope ladder to facilitate the escape from harms way.

Once you have determined your best escape routes, discuss them with other family members or roommates and with your neighbors. Unless one is already designated for you, identify several nearby places where you plan to reunite if you ever need to evacuate. Reuniting quickly during emergency evacuations reduces stress and helps responders to focus on the emergency or disaster rather than those who are missing.

In addition to planning and identifying multiple evacuation routes, you should know how to secure your residence should you simply need to shelter in place. In many situations, it is safer to

stay inside and avoid going into the outside environment. Sheltering typically involves staying inside with all windows and doors closed and locked. Examples of situations that might necessitate sheltering include hazardous materials events, air quality incidents, dangerous criminals or animals at-large in the area and certain storm conditions. Should you need to shelter-in-place, you should know how to lock your doors and windows. In some situations, fortification or barricading of exterior doors might be wise. Planning to stack furniture behind exterior doors for fortification and for shading or blocking outside view into the residence through windows and doors are important considerations when the need to shelter in place arises.

4

Assemble a disaster survival kit. Having spare food supplies, toiletries, tools and other items readily available is an important consideration.

How Do You Join ECHO? Over 1,700 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for the membership, sign up online at www.echo-ca.org.

For more information about membership and ECHO, call us at 408-297-3246 or visit the ECHO website.

October 2015 | ECHO Journal

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What can you do to enhance your ability to survive a disaster event with the least amount of personal upheaval and stress?

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There are a number of resources that suggest specific items to include in your survival kit. I suggest consulting the American Red Cross website (www. redcross.org), state and federal agencies’ websites, or local government offices of emergency services websites to access planning information and emergency supply lists that they have developed for public use. In any case, emergency kits should contain important household information (insurance policy numbers and agent contacts, bank account information, and personal contact lists to name a few), a supply of essential medications, reading glasses, emergency cash ($500-1000 is recommended), a spare cell phone charger with a 12v adapter and at least one change of clothing. Don’t forget to include supplies for your precious pets including food, water, medications and waste bags.

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Register for emergency notifications with your local public safety agencies and county offices of emergency services (in Santa Clara County this system is called AlertSCC).

Whether or not your homeowners’ association has adopted formal plans to guide responses to emergencies and disasters, it is always advisable to have a personal or family plan to ensure that you’re ready when a disaster or emergency situation affects your community.

The information in this article is very generic and should provide a good start for your preparedness endeavors. In emergency planning there is a simple rule of thumb…the failure to plan is a plan to fail. Stay safe and be prepared.

Thomas J. Connelly is the president of Connelly Consulting, a public safety consulting company located in Santa Clara, CA. He is a retired Captain from the Los Altos (CA) Police Department and developed the City’s emergency/ disaster response plan. He can be contacted via e-mail: tom@ connellyconsulting.org or at www.connellyconsulting.org.

These agencies provide timely information relative to disaster and emergency situations directly to you via e-mail, text and/or telephone. It is always a good idea to register with these organizations to ensure that you are getting timely and reliable information.

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Remember that there is strength in numbers. It is always a good idea to coordinate your emergency planning to some extent with your neighbors. That way you can collaborate with them if an emergency impacts your residence or community.

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q.

s s, E

dam A n

a

dri A y

B

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G N I K

DOG

S!

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H

ow much barking is too much? What constitutes a nuisance? Is the neighbor’s complaint legitimate or is he or she hypersensitive?

Boards need a basis for differentiating valid complaints from unreasonable ones. To that end, boards should adopt definitions in their Rules and Regulations regarding nuisance animals.

Nuisance Defined.

Definitions can be limited to excessive barking or expanded to include other issues. Following are some examples:

1 2

Nuisance noise from a dog is defined as barking, yelping or whining for more than 5 minutes in any 1-hour period.

Excessive barking is barking that is persistent and occurs for an extended period of time or on a repeated basis.

When determining if barking is a violation, consideration will be given to the time of day, duration and frequency of barking.

• Any dog that chases, runs after,

3

No animal shall be allowed to annoy residents unreasonably, to endanger the life or health of other animals or persons, or to substantially interfere with the quiet enjoyment of others.

Pet owners will be deemed in violation if their pets: • Consistently or constantly make excessive noise;

or jumps at vehicles moving on streets and alleys.

• Any dog that attacks, bites or

injures a person, or snaps, growls, snarls, jumps upon or otherwise threatens persons without provocation. These acts shall be considered a violation whether or not the dog is confined by fence, chain or leash, or under the voice control of a responsible person.

• Any animal that howls, yelps, whines,

or barks in such a manner as to unreasonably disturb any person.

• Any animal that feeds from, turns

over, or disturbs garbage containers.

• Any animal that scratches or digs

• Cause damage to or destruction of another’s property;

in flowerbeds or otherwise damages the common areas or property of another owner.

• Cause unsanitary, dangerous or

• Any dog or cat that goes onto the

offensive conditions, including the fouling of the air by offensive odor emanating from excessive excrement; or

• Create a pest, parasite or scavenger control problem which is not effectively treated.

4

Animals will be deemed a nuisance that commit acts including, but are not limited to, the following:

property of another or onto common areas to attack another animal or fowl.

• Cats or dogs that crawl upon,

sleep on, scratch or otherwise soil the association’s property or the property of another.

Enforcement.

Most associations require owners put their complaints in writing, either in a letter or by filling out a form created by the association.

They will then send a letter to the dog-owner letting him/her know that neighbors have complained about the nuisance. Since the letter is a warning only, there is no requirement to identify the source of the complaint.

If the problem continues, the board must hold a hearing with the owner and make a determination that a nuisance exists. Once that is done, penalties can range from fines, to muzzling aggressive dogs, to banishing nuisance animals from the association.

Adrian Adams is a principal in the Los Angeles firm of Adams Kessler PLC. This article is reprinted from the Davis-Stirling.com Newsletter.

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New For 2015, FREE Attendance for ECHO HOA Members!

Monterey Educational Seminar

SAVE THE DATE! WORKING WITH DIFFICULT MEMBERS Stephanie Hayes, Esq. – Hughes Gill Cochrane, PC

PREPARING YOUR HOA FOR EL NINO RAINS

Saturday, October 17, 2015 8:30 AM to 12:30 PM

Brian Seifert – Cox-Seifert Associates LLC

GETTING YOUR HOA FINANCIALS IN ORDER David Levy, CPA - Levy, Erlanger & Company CPAs

Yes, reserve _____spaces for the ECHO Monterey Seminar Amount enclosed: $______(attach additional names)

SAVE THE DATE!

Name:

Visit echo-ca.org/events for the latest information and online registration.

Email Address: HOA or Firm:

ADDRESS

Address: City: State:

Zip:

Phone:

Embassy Suites 1441 Canyon Del Rey Blvd., Seaside, CA 93955

Visa/Mastercard No. Exp. Date: Signature: Return with payment to: ECHO, 1960 The Alameda, Ste 195, San Jose, CA 95126 Orders will not be processed without payment in full. Fees for cancelled registrations will not be refunded. Phone: 408-297-3246; Fax: 408-297-3517

29 echo-ca.org

Price

FREE for Pre-registered ECHO HOA Members $50 – Nonmembers and Walk-ins July 2015 2015 || ECHO ECHO Journal Journal September

29 29

Effective Strategies for Handling Mold in

M

old has become a problem affecting many associations, both young and old. Knowing how to handle a mold complaint and having a plan in place could save your association significant money and minimize exposure to personal injury claims. This article sets forth some strategies for practically addressing mold in your community.

30 echo-ca.org

by Julie M. Mouser, Esq.

Your Community

October 2015 | ECHO Journal

31

Take Mold Complaints Seriously Many Boards and managers make the mistake of trivializing mold complaints from homeowners. While the idea of “toxic� mold has not garnered much support in the scientific community over the years, mold can certainly have allergenic effects on certain people.

Young children and the elderly with compromised immune systems may be particularly susceptible to mold.

Asthmatics or people with chronic lung disease can also exhibit severe symptoms. We urge Boards and managers to not be dismissive of mold complaints.

Taking these complaints seriously can prevent potentially significant damage to common area and protect the health of residents.

32 echo-ca.org

Pre-Select Vendors

Assessing mold complaints is a timesensitive issue. We recommend that an association pre-select the vendors it will use. Typically, you will need a certified industrial hygienist and licensed mold remediation contractor. A hygienist can assist in formulating the remediation plan and the contractor performs the actual remediation work. Other professionals may be needed later in the process to determine the source of water causing the mold and to recommend the appropriate repair to prevent further water intrusion. Pre-selecting vendors will also allow an association to undertake whatever due diligence it normally would in selecting a vendor. We recommend an association request the vendor’s standard contract and have it reviewed by counsel.

We also recommend the association

confirm the vendors are licensed, if required, and that the vendor has appropriate insurance in place.

Have a Plan

While pre-selecting vendors is important, it is also crucial that an association promptly respond to a mold complaint.

If a Board meets monthly, or even less frequently, it becomes difficult for an association to address mold complaints in a timely fashion. Mold problems do not improve with time. They get worse and even more expensive to handle.

For this reason, we recommend that the Board discuss and delegate certain authority to the manager so that mold complaints can be assessed without undue delay. This way, associations are not hamstrung in promptly dealing with mold complaints that occur between

meetings. Of course, if a mold complaint reveals a significant problem outside of the authority delegated to the manager, we recommend that an emergency meeting be called.

Remediate the Mold Immediately & Without Regard for Who is Responsible After an owner reports mold in their home, many Boards want to debate where the mold came from and whose responsibility it is to clean it up. Unless the association is a planned unit development where the association has no responsibility for any repair or maintenance of components suspected in the water intrusion that caused the mold, rarely are those debates fruitful. While the Board and homeowner go back and

forth, the mold problem grows worse.

Leaving mold in a home while you argue with the homeowner about responsibility only allows the damage to get worse and you may be creating a personal injury claim where none existed before. Do not conduct tests to determine the type of mold prior to remediation. If you can see or smell mold, it needs to be remediated.

Remediation methods are the same regardless of the type of mold. Further, testing for mold will not tell you where the mold is or where the moisture is coming from. In the best case, the test results are meaningless. In the worst case, the test results convince an owner that they should make a personal injury claim against the association.

Consider Relocating the Owners We also urge associations to consider relocating the owners affected by the

mold. The mold remediation process can be very disruptive in that large plastic sheeting containment enclosures are erected within the affected areas.

Sometimes this means entire rooms are closed off and unable to be used by a homeowner. When a kitchen or bathroom is involved, questions of habitability are raised. Further, most remediation protocols require the establishment of negative air which involves the use of HEPA (High Efficiency Particulate Air) air scrubbers. The high powered air filtration machines can be noisy and disruptive. Sometimes mattresses, pillows, clothing and other furniture need to be removed for cleaning or in extreme cases, disposal. All of these factors can be quite stressful to a homeowner. An offer of relocation also becomes important should an owner subsequently make a personal injury claim. It is of great benefit to the association’s defense to demonstrate that it offered to relocate the owners to a hotel during the mold remediation. If an owner refuses and later claims injury due to exposure to mold, the association

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has a good argument that the owner failed to mitigate his damages by refusing to accept the offer of relocation.

If relocation is necessary, select a residence type hotel with a kitchen so the association can avoid a request for meal reimbursement. Many Boards balk at remediation and relocation. However, it is important to keep in mind that the vast majority of governing documents contain provisions for reimbursement assessments. If it turns out the water source which lead to the mold growth is the owner’s responsibility, the association can impose a reimbursement assessment for both the remediation and relocation costs. If the association turns out to be responsible, the problem has already been resolved and the owner is thrilled with the association for being responsive and proactive. Plus, by prompt removal of the mold, the association is eliminating the basis for any future personal injury claim. Whether meritorious or not, defending mold personal injury claims is incredibly costly for an association.

may want to consider insisting that the homeowner perform any repairs. Since there is no longer any health issue, there is less risk to the association from engaging in a dispute with the homeowner at this point.

Other Considerations

Perform Clearance Testing After the Remediation After the mold has been remediated, but before any repairs are performed, have the industrial hygienist return to do clearance testing.

Clearance testing involves taking air samples inside the containment enclosure, outside the containment enclosure, and often times, outside of the unit entirely. Clearance testing establishes that the mold has been fully remediated.

Think of it as a kind of insurance policy.

Identify the Source of Water or Moisture and Correct It Mold requires a water or moisture source to grow. Remediating the mold but failing 34 echo-ca.org

to correct the source or water or moisture is a waste of money as the mold will just come back. If the source of the moisture is readily apparent and the repair is simple, the mold remediation contractor may be able to take of the repair. If there are multiple sources of moisture, the source is not readily apparent or the repair is more involved, the Board may wish to retain an architect or other design professional to evaluate the problem, develop a repair protocol, and oversee the work.

Make the Interior Repairs Once the source of the moisture has been corrected, it is time to repair the interior of the home. If the cause of the mold was a homeowner responsibility, the Board

Should the association tender the mold complaint to its insurance carrier? Many insurance policies now exclude coverage for mold damage to common areas (some policies refer to this as limited fungi or bacteria coverage). In the past, damage to homeowner property and personal injury claims were covered but it is now quite common for policies to exclude all claims related to mold. We have seen some insurance companies cancel or refuse to renew policies for associations who make mold claims—whether or not the claim was covered. Therefore, it is important to consider the likelihood of coverage and the amount of coverage after the deductible before submitting a claim.

Should the association amend its governing documents to include a Marie Antoinette clause? Such a clause essentially makes water damage to a homeowner’s property the responsibility of the homeowner unless the association has been grossly negligent. Such a provision can eliminate disputes between the association and the homeowners and can reduce insurance premiums for the association. What if my association was built before 1980?

If your association was built before 1980, you may have asbestos in the ceilings or walls. If so, you should make sure that the mold remediation contractor is aware of the asbestos and that any disturbance of the asbestos is done under the direction of a licensed asbestos abatement consultant. Absent the appropriate protocols, stiff fines can be imposed if sheetrock containing asbestos materials in cut into or disturbed.

Julie M. Mouser, Esq., is a partner with the law firm of Angius & Terry, LLP, which provides services to homeowners associations throughout California, Nevada and Florida. She can be reached at: jmouser@ angius-terry.com.

Welcome Stephanie Pullos

Let’s give a warm welcome to ECHO’s new Office Manager Stephanie Pullos.

Stephanie recently graduated with a Communication Studies degree from San Jose State University. Prior to joining the ECHO team she interned at Symantec in their video production department where she assisted on several video projects. Stephanie brings years of administrative and customer service experience and looks forward to working with all the members of the ECHO community.

In her free time Stephanie enjoys spending time with her family and being outdoors. If she is not cheering on her favorite sports teams you can usually find her in the kitchen baking delicious treats.

Stephanie is excited to join our growing community, and is ready to direct your HOA questions, help with membership updates and events. Please welcome Stephanie to ECHO when you call!

We welcome Stephanie, and we welcome your involvement with us.

October 2015 | ECHO Journal

35

BOOKSTORE The ECHO Bookstore is your source for publications providing essential information for HOA Board Member service obligations. Order online at echo-ca.org or fill out form on the facing page.

W NETION I ED

Robert’s Rules of Order Member Price: Non-Member Price:

$7.50 $12.50

A step-by-step guide to the rules for meetings of your association, the current and official manual adopted by most organizations to govern their meetings. This guide will provide many meeting procedures not covered by the association bylaws or other governing documents.

Construction Defect Claims Member Price: Non-Member Price:

$19.95 $25.00

New buildings can conceal extensive faults.

It’s a board’s worst nightmare—rainstorms damage buildings and bring owner complaints. Is legal action necessary? With this new book, you’ll learn about the resolution process for construction problems, and how to handle complex claims.

Community Association Statute Book—2014 Edition Member Price: Non-Member Price:

$15.00 $25.00

Contains the current version of the Davis-Stirling Common Interest Development Act, the Civil Code sections that apply to common interest developments and selected provisions from other codes important to associations.

Home and Condo Defects Member Price: Non-Member Price:

$12.95 $17.95

Construction defect litigation can be confusing, expensive and fraught with legal pitfalls. This eye-opening guide, written by accomplished construction-defect attorneys, is an essential tool for board members who need to understand the legal process.

36 echo-ca.org

2015 Condominium Greenbook Member Price: Non-Member Price:

$17.00 $25.00

This companion to the Condominium Bluebook is an in-depth guide to all aspects of association finances, including accounting methods, financial statements, reserves, audits, taxes, investments and much more.

Not for the accounting novice, this is a tool for the treasurer or professional looking for specific information about association finances.

Questions & Answers About Community Associations Member Price: Non-Member Price:

$18.00 $25.00

For 12 years, Jan Hickenbottom answered homeowners’ questions in her Los Angeles Times column on community associations. Now collected in one volume, readers can find answers to almost any question about CIDs.

Board Member Handbook Member Price: Non-Member Price:

$15.00 $25.00

This publication is the essential guidebook for HOA Board members, dealing with governance, finances, insurance and maintenance issues.

Revised and updated in June 2012.

Reserve Fund Essentials Member Price: Non-Member Price:

$18.00 $25.00

This book is an easy to read, must-have guide for anyone who wants a clear, thorough explanation of reserve studies and their indispensable role in effective HOA planning. The author gives tips to help board members mold their reserve study into a useful financial tool.

The Condo Owner’s Answer Book Member Price: Non-Member Price:

$15.00 $20.00

An excellent guide to understanding the rights and responsibilities of condo ownership and operation of homeowner associations. The question-and-answer format responds to more than 125 commonly-asked questions in an easy to understand style. A great resource for newcomers and veteran owners.

ciation o s s A unity Book Comm Statute dition 2014 E

Publications to answer your questions about common interest developments Order Online at www.echo-ca.org Dispute Resolution in Homeowner Associations Member Price: Non-Member Price:

$15.00 $25.00

Bookstore Order Form

EDUCATIONAL COMMUNITY FOR HOMEOWNERS 1960 THE ALAMEDA, STE 195, SAN JOSE, CA 95126 PHONE: 408-297-3246, FAX: 408-297-3517

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SUBTOTAL CALIFORNIA SALES TAX (Add 8.625%) TOTAL AMOUNT

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Board Member’s Guide for Contractor Interviews

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Member Price: Non-Member Price:

Name (please print)

$15.00 $25.00

This report is a guide for directors and managers to use for interviews with prospective service contractors.

Questions to find out capabilities and willingness of contractors to provide the services being sought are included for most of the contractor skills that associations use.

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October 2015 | ECHO Journal

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directory updates

All current listings may be found in our Professionals Directory available online at www.echo-ca.org.

New Members Above All Plumbing, Inc. 30087 Ahern Ave. Union City, CA 94587 Contact: Kimberly Mendez Tel: (510) 475.6114

MightyMite Termite 215 E. Hacienda Ave. Campbell, Ca 95008 Contact: Patrick Becker Tel: (888) 262.2870

Bay Area Asphalt 545 Nipper Ave. San Jose, CA 95133 Contact: Jackey Kolander Tel: (408) 937.0510

Become an ECHO Professional Member and receive the benefits of membership.

To learn more, visit our membership page at www.echo-ca.org

38 echo-ca.org

advertiser index

about ECHO

Ace Property Management..................25 www.acepm.net

Heritage Bank of Commerce...............15 www.HeritageBankofCommerce.com

American Management Services........11 www.amspcam.com

Mutual of Omaha Bank.......................32 www.mutualofomahabank.com

Applied Reserve Analysis....................32 www.AppliedReserveAnalysis.com

PAS: Professional Association Services, Inc..........................................23 www.PAS-INC.com

Associa Northern California M & C Association Management Services...........................2 www.mccommunities.com Benjamin Moore Paint & Company...28 www.benjaminmoore.com Berding Weil..........................Back Cover www.berding-weil.com Community Management Services.................................................14 www.communitymanagement.com Cornerstone Community Management.........................................19 www.cornerstonemgt.biz Eugene Burger Management..............10 www.ebmc.com

PML Management Corporation..........24 www.pmlmanagement.com R.E. Broocker Co...................................11 www.rebroockerco.com Rebello’s Towing..................................13 www.rebellos.net Silicon Valley Civil & Structural Engineers................24 www.Qengineers.com Steve Tingley Painting, Inc..................33 www.tingleypainting.com Union Bank...........................................18 www.HOAbankers.com White & MacDonald, LLP....................25 www.wm-llp.com

WHAT IS ECHO? Serving Homeowners to Build Strong Community Associations The Educational Community for Homeowners (ECHO) is a nonprofit membership corporation dedicated to assisting California homeowner associations. ECHO provides help to homeowner associations on many fronts: finances, legal issues, insurance, maintenance and management. Members receive help through conferences, trade shows, seminars, online education, a monthly full-color magazine and discounted publications.

Who Should Join ECHO? If your association manages condominiums or a planned development, it can become a member of ECHO and receive all of the benefits designated for homeowner associations.

Benefits of Association Membership • Subscription to monthly magazine • Access to members-only online education • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento

ECHO Membership Dues Association Membership HOA 2 to 25 units...........................$130 HOA 26 to 50 units.........................$180 HOA 51 to 100 units.......................$275 HOA 101 to 150 units.....................$375 HOA 151 to 200 units.....................$450 HOA 201 or more units..................$575 Professional Membership.................$500 Association Management Membership.......................................$500 Individual Membership.......................$75 Journal Subscription............................$30

How Do You Join ECHO?

Office 1960 The Alameda, Suite 195 San Jose, CA 95126-2308

Over 1,700 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for the membership, sign up online at www. echo-ca.org.

For more information about membership and ECHO, call us at 408-297-3246 or visit the ECHO website.

August2015 2013 ||| ECHO ECHOJournal Journal February 2014 ECHO Journal October

39 39

ECHO event calendar

RESOURCE PANEL CALENDAR ECHO Resource Panels meet during lunch on weekdays to enable managers, professionals and board members to hear about important topics presented by experts in the industry, and share experiences and issues. The meetings are open to all ECHO members, and those interested in learning about ECHO, offered in a casual atmosphere where the cost of attendance is the price of your lunch. The sessions last about an hour and a half. Check-in with the ECHO Panel Secretary for details and to register.

Please join us: DATE

PANEL LOGISTICS

PANEL SECRETARY

TOPIC

Oct. 9, 11:45 a.m.

East Bay Resource Panel Massimo Restaurant 1603 Locust St., Walnut Creek

Cindy Wall, PCAM 925-830-4580

TBD

Oct. 14, 11:45 a.m.

South Bay Resource Panel Flames Eatery 88 S. 4th Street, San Jose

Geri Kennedy 408-398-4227

Plumbing Issues

Oct. 21, 11:45 a.m.

Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati

Pam Marsh 415-686-9342

Emergency

Nov. 5, 11:45 a.m.

North Bay Resource Panel Contempo Marin Clubhouse 400 Yosemite Dr., San Rafael

Denise Wolford, CCAM 415-458-3537

Elections

Nov. 8, 11:45 a.m.

Central Coast Resource Panel Michael’s on Main 2591 S Main St., Soquel

Ann Thomas 800-537-4098 ext.7530

TBD

Nov. 18, 11:45 a.m.

Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati

Pam Marsh 415-686-9342

Legislative Update

Preparedness

REGULARLY SCHEDULED RESOURCE PANEL MEETINGS Panel

MEETING

location

Maintenance

First Wednesday, Even Months

ECHO Office, San Jose

North Bay

First Thursday, Odd Months

Contempo Marin Clubhouse, San Rafael

East Bay

Second Friday, Even Months

Massimo Restaurant, Walnut Creek

Accountants

Second Monday, Odd months

Scott’s Seafood Restaurant, Oakland

Central Coast

Second Tuesday, Odd months

Michael’s On Main, Soquel

South Bay

Second Wednesday, Even Months

Flames Eatery, San Jose

Wine Country

Third Wednesday, Monthly

Serv-Pro, Cotati

Legal

Quarterly

Varies

40 echo-ca.org

ECHO honor roll

ECHO HONORS VOLUNTEERS Resource Panel Chairs

Seminar Speakers

Recent Contributing Authors

Accountant Panel Adam Haney, CPA 888-786-6000 x317

East Bay John Gill, Esq. Beth Grimm, Esq. David Levy, CPA Andrea O’Toole, Esq. Alex Noland, Esq. Ann Rankin, Esq. David Stompe Mark Wleklinski, Esq.

March 2015 Paul P. Terry, Jr., Esq. Patricia Wendleton David Swedelson, Esq. Robert M. Nordlund, PE, RS Bob Gourley

Central Coast Panel John Allanson 831-685-0101 East Bay Panel Cindy Wall, PCAM, CCAM 925-830-4580 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Judy O’Shaughnessy 408-839-6926 North Bay Panel Diane Kay, CCAM 415-846-7579 Stephany Charles, CCAM 415-458-3537 South Bay Panel Susan Hoffman, PCAM 510-683-8614 Wine Country Panel Pam Marsh 415-686-9342 Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry Bowles Oliver Burford Joelyn Carr-Fingerle, CPA Chet Fitzell, CCAM John Garvic, Esq., Chair Roy Helsing Geri Kennedy, CCAM Wanden Treanor, Esq.

Annual Seminar John Allanson Tyler Berding, JD, PhD Ricky Chu John Garvic, Esq. Sandra Gottlieb, Esq. Matthew Harrington, Esq. Stephanie Hayes, Esq. Julia Hunting, Esq. Zer Iyer, Esq. Ken Kosloff David Levy, CPA Kerry Mazzoni John Neal Andrea O’Toole, Esq. Terin Reeder Amy Tinetti, Esq. Chad Thomas, Esq. Wanden Treanor, Esq. Steven Weil, Esq. David Zepponi

April 2015 Julie Adamen Thomas Connelly Robert Rosenberg Rosalia Burgueño Tapia, Esq. Burt Dean May 2015 John Allanson Sharon Glenn Pratt, Esq. Tom Del Conte Helen Loorya, PCAM, CCAM, CMCA Hanh Pham, Esq. June 2015 Ken Kosloff Tom Fier, Esq. Alex Guy and Rob Rosenberg David Larsen, Esq. Steven S. Weil, Esq. July 2015 Jeffrey A. Barnett, Esq. Kurtis Shenefiel, PCAM, CCAM Tom Fier, Esq. Bob Gourley Tyler P. Berding, J.D., Ph.D. Ann Thomas August 2015 Tyler P. Berding, Ph.D., J.D. Chris Sigler, B.S.C.E., C.D.T. Charlotte Allen Julie Adamen Robert Booty September 2015 Charlotte Allen Brenda L. LeClair, CMCA Debra J. Oppenheimer, Esq. Steve Castle, CMCA, PCAM John Schneider

October 2015 | ECHO Journal

41

legislation at a glimpse

Catch up on 2015 Legislative Session!

The bills below represent the ECHO Legislative Committee’s review of the 2500 bills introduced in Sacramento this year. As we approach the end of this year’s Legislative Session, look closely for bills that may impact your HOA. All bills still under consideration have passed out of the Legislature and must be signed or vetoed by the Governor on or before October

Current Legislation Bill Information

Summary

AB 349

Turf & Synthetic Grass

Oppose

Effective immediately. This bill further narrows the ability of an HOA to restrict low water-using landscaping. It voids any provision of the governing documents or HOA guidelines that prohibit the use of “artificial turf or any other synthetic surface that resembles grass.” A late amendment also prohibits HOAs from requiring an owner to “remove or reverse water-efficient landscaping measures” when California’s state of emergency ends. ECHO supports California’s efforts to reduce water consumption in HOAs, but believes that each HOA should be able to establish its own low water-using landscaping standards.

Author: Gonzalez Status: Signed by Governor

AB 587

Mobilehomes: Nonpayment or Late Payments

Support

Amended 6/23. Current law prohibits the State from issuing a new title to a mobilehome buyer when of any outstanding charges or liens exist as a result of the previous owner’s failure to pay certain fees and penalties, including the vehicle license fee. This bill would waive those fees and allow for the title transfer.

Author: Chau Status: In Senate. Hearing Canelled

AB 596

FHA Approval Disclosure

Oppose Unless Amended

Effective July 1, 2016. This bill requires a common interest development to disclose its status as a Federal Housing Administration (FHA)-approved condominium project and as a federal Department of Veterans Affairs (VA) approved condominium project. This information is publicly available online, making this obligation is unnecessary. It also creates a potential liability for associations. ECHO favored an amended disclosure that would have informed recipients that the information is available from the FHA and VA websites.

Author: Daly Status: Signed by Governor.

AB 786

Recycled Water and Drought Fines

Oppose Status: Sent to Governor

Associations are not permitted to fine homeowners for failing to water their landscaping during a declared state of emergency due to drought. This bill creates an exemption, and would permit fines in associations that use recycled water for all irrigation.

AB 1152

Limiting Construction Defect Lawsuits

Oppose

Now a two-year bill. This bill narrows the options for associations seeking recovery for construction defects. Recent case law allowed associations to recoup damages through sources and methods not outlined in Section 896 of the Civil Code. This bill would establish Section 896 as the sole remedy for construction defect claims.

Author: Levine

Author: Frazier Status: In Assembly Judiciary.

Hearing Cancelled.

42 echo-ca.org

legislation at a glimpse

Current Legislation (continued) Bill Information

Summary

AB 1335

Fees on Recorded Documents

Oppose

Amended 6/3. In order to fund affordable housing, this bill would impose a $75 fee whenever a document is recorded in California. Associations record numerous documents, including governing documents and liens. ECHO believes that recorded documents are not the appropriate instrument to fund affordable housing.

Author: Atkins Status: In Assembly

AB 1448

Clotheslines as Solar Energy Systems

Neutral

Amended 7/15. This bill originally identified clotheslines as a “solar energy system” and prohibited associations from restricting or prohibiting the installation and use of clotheslines. The author worked with ECHO to address safety and oversight concerns, and amended the bill to allow associations to place reasonable restrictions on the use of clotheslines and drying racks.

Author: Lopez Status: Sent to Governor

SB 244

Mobilehomes: Injunctions

Support

This bill would extend, indefinitely, the right of a mobilehome park to petition the court to enjoin a continuing or recurring violation of a reasonable rule or regulation of the park.

Author: Vidak Status: Signed by Governor

SB 290

Substituted Service of Process

Support Status: In Senate Judiciary

Now a two-year bill. In a foreclosure proceeding, associations are required to provide certain notices by personal service. When an owner is unavailable, this bill would allow the association to serve the owner by “substituted service,” a less restrictive process.

SB 328

Notice of Pesticide Use by Landlords

Oppose Unless Amended

Effective January 1st. This bill requires that a landlord or the landlord’s authorized agent provide a current tenant and any tenant of adjacent units (under certain conditions) with notice about the use of pesticides at the dwelling unit if the landlord or authorized agent applies any pesticide without a licensed pest control operator. ECHO supported an amendment clarifying that an association, its officers, directors, agents or representatives would not be considered an “authorized agent” of a landlord.

Author: Vidak

Author: Hueso Status: Signed by Governor

SB 419

Sale Signs in Mobilehomes

Watch Status: Signed by Governor

Effective July 1st, 2016. This bill would permit the use of yard-arm style “for sale” signs and would authorize management to require the use of a step-in L-frame sign in mobilehome parks, some of which are common interest developments.

SB 477

Mobilehomes: Property Tax Postponement

Support Status: Held in Committee

Amended 8/18. This bill would allow qualified individuals and owners of mobilehomes, some of which are common interest developments, to seek postponement of ad valorem taxes. This option is already available to owners of real property.

SB 655

Mold & Substandard Housing

Watch

Amended 8/17. This bill specifies that visible mold growth, excepting mold that is minor and found on surfaces that can accumulate moisture as part of their proper and intended use, is a “substandard condition” and could cause a building in which such a condition is found to be deemed substandard.

Author: McGuire

Author: Leyva

Author: Mitchell Status: Sent to Governor

What Do You Think? Read more about HOA legislation on our website or visit our Facebook page and join the discussion. On the web: echo-ca.org/hoa-advocacy, On Facebook: facebook.com/echoorg October 2015 | ECHO Journal

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