ECHO Journal - May 2017

Balconies, Are Yours Safe? p.8

Ten Ways to Improve Property Values p.18

How to Improve Your Meeting Minutes p.26

Exterior Painting Tips and Summer Heat

Are You Getting Your Maintenance Dollar’s Worth?

p.30

Serving Community Associations

ECHO Santa Clara

p.34

May/June 2017

echo-ca.org

45th Annual Seminar & Trade Show p. 14

ECHO 1960 The Alameda STE 195 San Jose, CA 95126 Change Service Requested

PRSRT STD U.S. Postage PAID Modern Litho 210

news from ECHO

News From ECHO May 2017 It’s that time of year again. ECHO’s Annual Seminar is approaching.

Join us June 10 at the Santa Clara Convention Center.

We have lots of new topics, plus our popular HOA University.

Our best speakers are returning, and we’ve added some new ones.

Whether you have attended before, or this will be your first, our Annual Seminar is the premiere event for Association Board Members in Northern California.

We will have a dozen educational sessions in three concurrent tracks offering experts across the spectrum of association living providing information and advice you need to know.

We will offer our HOA University track, with focused instruction on your legal obligations as a board member, management best practices, insurance requirements and financial duties. As a volunteer, you are responsible for governing a multi-million dollar corporation.

Our experts will help you know how to do that job. We’ll provide a Certificate of Completion to those board members who attend all four sessions, so you can demonstrate your commitment to independent board education.

We’ll offer a Legal track, featuring lawyers from up and down the State speaking on: Marijuana; Inspections of Hazardous Situations; Disability Access Requests; and Election Rules. You’ll never get a better legal value for your investment!

Finally, the Hot Topics track will address: Legislative and Case Law Update; the Art of Negotiations; Reserve Studies; and Communications Software. You’re sure to find the answers to your questions on this diverse array of topics from our industry experts.

Come for the educational sessions. Come to talk with over 100 exhibitors. Come for continental breakfast and buffet lunch. Come share your experiences with fellow board members. Just come. Registration is open now, see pages 14 and 15 for details.

I look forward to seeing June 10!

Best,

Brian Kidney Executive Director

May/ June 2017 | ECHO Journal

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CONTENTS WEEKLY

8

4 q 4 q 4 q

Look for and correct any sprinkler system leaks.

Replace any broken sprinkler risers or heads.

Test and amend pool water quality.

Test and amend spa water quality.

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Balconies, Are Yours Safe?

Over the past few years balconies have made the news with tragedies in Berkeley and Santa Barbara from severe decay. As a result, building codes have changed relating to how balconies are attached to the building structure. The question here is, are your balconies safe and does the HOA have liability for those balconies.

18

Ten Ways to Improve Property Values For most homeowners, housing is their largest single asset. A board that acts to maximize home value makes a large and lasting difference to its members’ wealth. What are the most important things that an association board can do to enhance property values? Based on 30 years of experience in the industry, here’s my Top 10 list.

26

How to Improve Your Meeting Minutes The minutes of a community association are always extremely important. An association is a business, and like any other business it protects its history, preserves and maintains the records and protects itself from possible liability. The secretary needs to be well organized, and committed to the association’s future.

30

Exterior Painting Tips and Summer Heat Exterior painting projects present a variety of challenges, ranging from the type of project and surface to be painted, to geographic location and the spectrum of diverse, outdoor conditions. Despite all these factors, we demand that our built environment be protected by a film that is only a one-thousandth of an inch thick — so how do we ensure good exterior paint performance, especially when applying paint in summer heat?

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Are You Getting Your Maintenance Dollar’s Worth?

Here are a series of schedule-oriented checklists that set out specific maintenance tasks, and how often homeowner committee members (or the community manager) should check to be sure that the tasks are done.

DEPARTMENTS

3 6 7 14

News from ECHO 2017 ECHO Educational Calendar San Francisco Evening Seminar — May 16th, 2017 ECHO Annual Seminar & Tradeshow — June 10th, 2017

17

Nominating Committee Seeks Candidates for ECHO Board of Directors ECHO Professional Directory ECHO Volunteers ECHO Event Calendar ECHO Bookstore Advertiser Index Legislation at a Glimpse

39 40 41 42 45 46

The ECHO Journal is published bi-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 2017 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 Adam Haney Treasurer Diane Rossi Secretary Carly Melius Directors Sandra Bonato Karl Lofthouse Jerry L. Bowles Jeffrey Saarman Rolf Crocker Brian Seifert John Gill

Wanden Treanor David Levy

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

May/ June 2017 | ECHO Journal

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2017 ECHO educational calendar

2017 ECHO Educational Seminars If you’ve ever wished that ECHO would hold a seminar closer to your association, chances are that we’ll be nearby during 2017. Don’t miss an opportunity to get the education you need with guidance from some of California’s top HOA attorneys and professionals. Take a look and mark your calendar. We can’t wait to see you there!

May 16

June 10

San Francisco Evening Seminar (see page 7)

ECHO Annual Seminar (see page 14)

Fort Mason San Francisco, CA

Santa Clara Convention Center Santa Clara, CA

DATE

EVENT

Oct. 28

Monterey Seminar, Embassy Suites, Seaside.

San Rafael

San Francisco

Register today!

Online: www.echo-ca.org;

By Phone: 408.297.3246

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FREE Attendance for ECHO HOA Members!

Join us at the San Francisco Evening Seminar Tuesday, May 16, 2017

/

5:30 PM to 7:30 PM

Register online at www.echo-ca.org or fill out the form below.

TOPICS/SPEAKERS ARE:

What We Wish Board Members Knew By: Steve Weil, Esq. Avoiding Fraud in HOAs By: David Levy, CPA and Geri Kennedy.

Yes, reserve ______spaces for the ECHO SF Evening Seminar Amount enclosed: $______(attach additional names)

SAVE THE DATE

Name:

Hear from lawyers about your fiduciary duty and how to deal with pesky problems in your association.

Email Address:

Light snacks and refreshments will be served.

HOA or Firm:

ADDRESS

Address: City: State:

Zip:

Phone: 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

Fort Mason 2 Marina Boulevard, San Francisco, CA 941 23

PRICE Free for Pre-registered ECHO HOA Members. $50 Nonmembers and Walk-ins.

March/ May/April June 2017 2017 || ECHO ECHO Journal Journal

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Balconies, are Yours Safe?

B

alconies are a common construction feature at many Common Interest Developments (CID). Over the past few years balconies have made the news with tragedies in Berkeley and Santa Barbara from severe decay. As a result, building codes have changed relating to how balconies are attached to the building structure. The question here is, are your balconies safe and does the HOA have liability for those balconies.

By Brian Seifert

May/ June 2017 | ECHO Journal

9

Types of Balconies

T

here are two basic balcony types we see most often, cantilever and structure post and beam.

Both types can become safety hazards from decay; however, most often we see major issues with cantilever types.

A cantilever balcony is designed to extend out from the building wall with no structural support at the outside edge. It is “cantilevered� over the space below. The support for such a structure occurs from extending the support joists at least twice the distance of the exposed framing, into the building itself and fastened to the main structure framing.

The size of the balcony framing members and length they extend past the building wall have to be engineered to withstand both the dead load of the construction components and the live load, people furniture etc.

A post and beam balcony is self descriptive as well. The outside edge of the balcony is supported by a large beam connected to posts typically set in concrete in the ground. The support members, beam, posts and framing joists, must be engineered to withstand both the dead and live load as well.

There are also two basic types of walking surfaces that can be installed on the balcony, a relief deck or full waterproof surface. Each type of surface has its benefits and potential detriments.

However, if constructed properly each should last the expected economic life.

A relief deck is simply boards

installed on the framing joists approximately 1/4 inch apart. This allows water to pass through the deck and not collect or pond. Type of deck boards, and 10 echo-ca.org

Cantilevered Balcony

Post and Beam Balcony

Relief Board Deck

Waterproof Deck waterproof membrane where the boards meet the joist and proper fastening, are all important issues with a relief deck.

Distance between the support joists is critical for support of the walking surface.

It may not be possible to use a relief deck in certain locations where it is necessary to keep the balcony or other construction components located below dry. In these cases a waterproof deck is necessary.

A waterproof deck is constructed by installing plywood sheathing over the balcony support joists and then installing a waterproof system, either elastomeric fluid applied or a cementacious type surface. The result is a completely waterproof system. The thickness of the plywood, proper frame blocking and fastening are all critical components to a successful waterproof

system. Distance between the support joists is also important here as well.

Critical Construction Components The three key areas where balconies typically fail are along the deck to wall junction including doors such as sliders, the outside edge or anywhere on the surface from improper drainage and railings. If any of these components were not installed correctly at original construction, there is a good chance your balcony will fail prematurely.

The horizontal to vertical juxtaposition is the most common area for water intrusion. This junction requires an installation of “L” metal flashing that extends up the wall a sufficient distance to be counter flashed by the building paper and extend onto the deck. This flashing is required for waterproof decks and some relief decks to keep water from

entering the building wall or deteriorating the support joists. As important is a ‘pan” flashing properly installed at the slider or man door on the balcony.

It needs to direct water away from the door and onto the balcony surface.

“L” Metal Flashing at Deck to Wall Junction Drainage is a critical element in the design of any balcony. Although the code only requires ¼ inch per foot slope, over time both the framing and deck surface will deflect, often further than the ¼ inch causing the surface to pond or direct water back towards the building. Although relief decks do not hold water like waterproof decks, it is important to slope these

away from the building as well to avoid water penetrating the building envelope.

Waterproof surfaces in addition to being sloped properly, need to be drained well.

If deck or through wall scupper drains are designed, they need to be sized large

Pan Flashing at Sliding Door Opening enough to handle the watershed during heavy storms. Whether there are drains or the water is simply directed over the outside edge there should be a water delivery system such as gutters and downspouts to carry the water to the ground and away from the building.

Proper engineered and installed railings are a critical safety component on any

May/ June 2017 | ECHO Journal

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term known as “Exclusive Use Common Area”. In other words they are considered common area for use by one or more owners, not every owner. There is a misconception in interpretation of some CC&Rs that appear to be written in such a way that the owner is responsible for these balconies. In many cases this is not so. Although the owner may be responsible for repairs etc, the HOA may have liability and could be sued in the case of an accident. It is important to know and understand how your CC&Rs are written and what the HOAs responsibility might be. Balconies, in most cases, although exclusive use, are common area.

What To Do Perhaps the most important action to be taken by the HOA would be to have an attorney review the CC&Rs to determine liability. If an accident occurs it will be too late to figure that out.

Have the balconies inspected by an expert who can determine if there is any decay of the construction components. Are the flashings installed properly or at all and are they still functioning; is the waterproof surface failing; is there proper drainage. Once the inspection is complete it will be necessary to rebuild or repair the balcony to proper and current engineering that meets current codes.

Properly Installed Railing to Engineer Design and Current Codes

balconies. Today’s code requires railings to be at least 42 inches above the surface and no opening larger than 4 inches so a child’s head cannot fit through. Additionally, the design of the railing attachment to the balcony must resist the minimum code requirement for pounds per square inch if a person leans on the railing. The issue known as “rim roll” or the rolling of the outside rim framing member when pressure is applied becomes the engineering challenge. Railing posts that pass through the waterproof deck can be a 12 echo-ca.org

challenge to keep watertight as it again creates a horizontal to vertical junction.

Responsibility In the case of the Berkeley apartment balcony accident with fatalities the owners were held responsible. In the CID industry liability is not so clear cut.

Typically, balconies fall under a legal

The most important ongoing action is to maintain the balcony. In most cases, once the balcony is constructed properly, the waterproof surface can receive a new coating of the fluid applied material every five years to continue to protect the construction components and keep the owners safe. All wood and metal components such as railings should be painted on a regular basis to protect the component.

Knowing and understanding the legal and construction components of balconies in a CID can help protect the HOA generally as well as each individual owner.

Brian Seifert is a principal with Cox Seifert Total Construction Management, Inc., serving the San Francisco Bay Area. Brian is also a member of the ECHO Board of Directors. He can be reached at bseifert53@gmail.com.

May/ June 2017 | ECHO Journal

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Half Price for ECHO HOA Members!

ECHO ANNUAL SEMINAR 45th Annual Seminar & Trade Show Saturday, June 10, 2017

The 45th Annual Seminar is the premier educational event for California’s HOA board members. Get expert guidance and network with people who appreciate what you do! Have a blast and enjoy all that the Annual Seminar has to offer:

• • • • •

12 classes featuring top industry experts.

Members-only HOA University & Certificate.

Breakfast and a full buffet lunch.

New forms, guides, and awards for HOA boards.

Hundreds of fellow board members and HOA professionals.

Join us! Register soon - prices go up on May 27th.

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Visit the ECHO website or call ECHO for complete event details: Online www.echo-ca.org/events Phone 408.297.3246

EVENT INFORMATION

SESSIONS

LOCATION:

HOA UNIVERSITY

Santa Clara Convention Center 5001 Great America Pkwy Santa Clara, CA 95054

• 9:00-10:10 Finances

David Levy, CPA

• 10:30-12:00 Management Rolf Crocker, CCAM

TIME:

• 1:20-2:40

Insurance

Wendy Weber

8:00 am to 4:30 pm

• 3:00-4:20

Legal

Alex Noland, Esq.

FOOD: Admission includes continental breakfast and a lunch buffet.

PARKING: Free parking is available in the parking structure behind the Santa Clara Convention Center.

LODGING: The Hyatt Regency Santa Clara is connected to the Convention Center. Special rates are available through the ECHO website, or by calling the Hyatt at (408)200-1234.

LEGAL • 9:00-10:10 Marijuana

Sandra Gottlieb, Esq.

• 10:30-12:00 Inspections Tyler Berding, Esq., PhD

of Hazardous Situations

• 1:20-2:40

Disability Access Requests

John Gill, Esq. & Amy Tinetti, Esq.

• 3:00-4:20 Election Deon Stein, Esq. Rules

REGISTER: Before May 27th: Members: $50, Nonmembers: $100 May 27th – June 10th: Members: $75, Nonmembers $125

HOT TOPICS

Registration includes lunch and access to all sessions.

Register online, or return the form on this page.

• 9:00-10:10 Legislative and John Garvic, Esq. &

Case Law Update Jeffrey Barnett, Esq.

Yes, reserve ______spaces for the ECHO Annual Seminar 45th Annual Seminar & Trade Show.

Amount enclosed: $__________ (attach additional names) Name: Email Address: HOA or Firm:

• 10:30-12:00 The Art of Alan Crandall

Negotiation • 1:20-2:40

Reserve Derek Eckert, RS Studies

• 3:00-4:20 Commun-

ications Software

Krishna Yalamanchi & Tyler Coffin

SPONSORS

Address: City: State:

Zip:

Phone: 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

May/ June 2017 | ECHO Journal

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New at the Annual Seminar

Saturday, June 10, 2017

ECHO ANNUAL SEMINAR & TRADE SHOW

At Our 45th Annual Seminar, we’d like to say thanks.

ECHO Members are a dedicated, savvy group, and we’d like to say thanks.

This year we’re giving away new forms and guides, introducing new member awards, and honoring our long-time members.

Learn more about the Annual Seminar on Page 14 or visit the events page: www.echo-ca.org/events

New Forms & Guides Get your first look at our new lineup of board resources and take home a copy (while supplies last).

• Management Selection Guide

• Elections Guide • Short Term Rental Policy • Sample Financials • Investment Policy • Owner Information Form • And many more…

Honoring Years of Dedication More than 500 California associations have been have been ECHO Members for more than 20 years. That’s impressive!

Board members of associations who have maintained their membership for 10 or 20 years will receive pins to recognize their commitment to board education.

ECHO Member Awards We’re honoring remarkable ECHO Members with two new awards. Nominate a deserving association or board member from the event page.

Homeowner Association of the Year This award recognizes an outstanding ECHO Member association that demonstrates continuing commitment to education and excellence in governance.

Board Member of the Year This award recognizes an individual who demonstrates outstanding leadership in his or her community, commitment to education, and works actively to support ECHO’s mission.

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Visit the ECHO website or call ECHO for complete event details: Online www.echo-ca.org/events Phone 408.297.3246

Nominating Committee Seeks Candidates for ECHO Board of Directors

T

he Nominating Committee for the ECHO Board of Directors is seeking expressions of interest from persons who are interested in serving on the ECHO Board of Directors. Four positions on the board will be up for election at the ECHO Annual Meeting that will be held in November. These positions are for three-year terms. Current directors whose terms expire in 2017 are Adam Haney, Diane Rossi and Brian Seifert.

Board members are expected to attend four three-hour board meetings held each year, generally at the ECHO office in San Jose. Each board member also serves on one or more committees that hold regular meetings

throughout the year. In addition board members are expected to attend the Annual Meeting and a two-day board retreat each November. Board members receive no reimbursement for these activities. Nominees must also be members of ECHO, either through their homeowners association or business and have thorough familiarity with the organization and the CID industry.

Persons interested in being considered for nomination should obtain and complete a nomination and qualifications form, available by request from the ECHO office.

Every potential candidate, including incumbents, must submit a full form. All completed forms must be submitted to the ECHO office no later than August 15, 2017, to be considered by the nominating committee. Those requesting nomination may be requested to interview with the nominating committee. The committee will meet in late August to prepare recommendations for board consideration.

May/ June 2017 | ECHO Journal

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Ten Ways to Improve Property Values

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By Robert M. Nordlund, PE, RS

ECHO Journal March/ April 2017 | ECHO Journal

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I

t’s hard to dispute the adage, “In property, three things matter: location, location, and location.” A community association board can’t usually do much about a property’s location, but it can and should do many things to enhance the value of its owners’ homes.

Too many boards waste too much time on urgent, ultimately petty matters like disputes about people, pets, and parking.

This is unfortunate; for most homeowners, housing is their largest single asset.

A board that acts to maximize home value makes a large and lasting difference to its members’ wealth.

What are the most important things that an association board can do to enhance

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property values? Based on 30 years of experience in the industry, here’s my Top 10 list:

1

Budget Accurately & Honestly

A realistic, balanced budget is the foundation of a board’s ability to boost home values. Associations need an operating budget that reflects the cost of running the association and maintaining common areas day-to-day, and a reserve budget that offsets long-term maintenance costs.

Operating budgets show income and expense, including everything from salaries to light bulbs, estimated based on month-to-month experience. Most boards find operating budgets relatively easy to understand.

Reserve budgets are a bit more esoteric.

They project the future cost of the repair, replacement and refurbishment of association common areas. Reserve

budgeting begins with an estimate of costs expected to occur every 2, 5, 10, 20, or even 30 years. Then those costs must be translated into an annual figure that reflects the yearly, ongoing deterioration of the common areas. That yearly figure is the amount that should be transferred out of the operating account into the reserve fund.

Because reserve budgeting is complicated and requires many judgment calls, many boards rely on the results of a formal Reserve Study prepared by an independent, CAI credentialed Reserve Specialist™.

2

Maximize Curb Appeal

Curb appeal is the impression that a property creates, as viewed from the street. Imperfections that insiders learn to ignore appear as glaring flaws to a potential buyer seeing them for the first

time. Here’s a mental checklist I use when I visit an association property for the first time:

• Clean, attractively landscaped grounds. Trash is picked up, grass is freshly mowed, and hedges freshly trimmed.

• Attractive, helpful signage. Signs look good and say clearly what a first-time visitor needs to know.

• A functioning entry gate, well-lit entryways and walkways, and an inviting lobby. You only get one chance to make a first impression!

• A sparking clean pool. The dream of “carefree living” is an attraction of shared-community ownership.

Your most visible play space will reinforce this dream or else refute it.

• Clean carpets and properly maintained asphalt. Walking surfaces create a sense of attractiveness— or its opposite—for everyone who passes.

• Up-to-date paint jobs & colors.

Styles change. If you don’t update the colors, rooms and hallways soon look like your parents’ common areas.

The easiest way to stay on top of such items is through regular inspections and work-order tracking. Neglect these, and your curb appeal will suffer.

3

Avoid Deferred Maintenance Deferred maintenance is the practice of postponing repairs in order to create a false appearance of financial solvency.

Repair, replacement, and refurbishment all need to happen sooner or later. When they are postponed, the cost is almost always greater. Indicators of deferred maintenance include letters missing from an entry sign, plastic tarps covering a roof, faded pool furniture with broken straps, or a leaning mailbox.

Boards are often tempted to underfund reserves. This approach may be popular in the short run, but it is nothing but a way to kick the can down to the unfortunate set of homeowners who will have to pick up an even more expensive tab in the future. With a realistic reserve contribution, major projects can get done when needed. Keeping common areas free of visible (and not-so-visible) defects creates a positive impression on real estate agents and prospective buyers.

4

Avoid Special Assessments

May/ June 2017 | ECHO Journal

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Inadequate reserve budgeting leads to special assessments, most of which can be avoided. Often all it takes to eliminate them altogether is a few more dollars in monthly reserve contributions from each homeowner. An association that imposes frequent and unsettling special assessments soon gets a bad reputation among local real estate agents, who warn potential buyers, who then hesitate to make good offers. A special assessment that has not been disclosed to a new buyer can sometimes even result in a lawsuit.

A strong reserve fund reassures buyers that they are joining a well-managed association and encourages them to pay top dollar. Sound budgeting may require higher fees in the short run, but in the long run it raises the value of all the homes.

5

Create a Culture of Transparency

Homeowners appreciate it when managers and boards conduct association business transparently, making it easy to see what has been done and why.

Owners have an interest in protecting the value of their homes, and they deserve to know about association business. Meeting agendas and minutes, budgets and financial reports, and reserve studies all should be open to homeowners. In many states, homeowners and prospective buyers are legally entitled to inspect association records.

Transparency means more than posting minutes to communicate what has already been decided. Effective leaders also use their websites, newsletters, and bulletin boards to say what will be decided next, so homeowners can contribute to the process.

Perhaps the most important aspect of transparency is the attitude and tone with which association leaders conduct meetings and respond to inquiries.

Transparency builds trust, and trust translates into a reputation that attracts good offers when homes go on the market.

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January/ February 2017 | ECHO Journal

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6

Build Community

Homeowners and board members have a common interest in enhancing their home values. Smart leaders avoid actions that suggest they see themselves primarily as regulators or dispute resolvers. Instead, they invest time, energy, and money in building social networks and connections with and among homeowners. Refreshments at board and association meetings cost very little when compared with their potential to enhance the home values by making your community appealing. Hosting a block party or coordinating group participation in charitable activities benefiting the neighborhood t large are both good ways to create a sense of community.

Don’t forget to invite your local Realtors to some of your community events, so they can spread the word!

7

Adhere to Your Association’s Rules and Standards

Nobody likes rules—except, perhaps, when we invoke them against others!

Rules are a necessity of life, especially for neighbors who share common space.

Rules and architectural standards exist to build up your community, not to punish owners.

Write each rule so it includes, along with the rule itself, the community-building reason why the rule exists:

• “In order to keep our children safe, parents are asked to discourage running on the stairway.”

• “In order to maintain the peaceful quality of our association, pool hours end at 10 pm.”

• “In an effort to protect property values, paint colors need to comply with our approved architectural standards” Rules exist to protect community, not to provide excuses to annoy or punish others. To remind homeowners of this, use words like we and our, and avoid legalistic, top-down terms like shall and must when writing rules. Your neighbors will appreciate it—and your home values will appreciate! at a board meeting to discuss an article is an excellent investment in board training.

8

Employ Accredited, Credentialed Managers

Running a community is complicated and important work that calls for industry-specific training and experience.

Effective association managers are unfailingly civil and prompt when they respond to requests from owners.

They manage the association for the benefit of the owners, not themselves.

This means they strictly avoid underhanded dealings, such as kickbacks or sweetheart deals with vendors. Accreditation from CAI assures associations that they can expect professionalism from their managers.

Effective managers enhance home values in innumerable ways. By striving for excellence in everything they do, managers increase homeowner satisfaction and encourage pride of ownership.

By providing Realtors with prompt and friendly service, they build the association’s reputation where it counts.

9

Train Board Members Strong associations know that effective boards don’t happen by accident, so they encourage members to join CAI, attend CAI board training and subscribe to Common Ground. Taking a few minutes

Well-trained board members help to focus the full board’s attention away from petty squabbles onto critical elements of homeowner value, such as insisting on a disciplined and realistic approach to budgeting. Board-member training shows in effective leadership, community pride, and good financial stewardship of common areas—all of which enhance homeowner value.

10

Team Up with Knowledgeable Business Partners

Even the most professional managers, working with the best boards, don’t know all they need to know to navigate all of technicalities that will arise. To guide the association towards a successful future, leaders need a team of specialists, including an accountant, attorney, banker, insurance agent, and a reserve study professional. In addition to their special skills, professionals who earn CAI’s “Educated Business Professional” distinction demonstrate they know how to help community associations foster excellence and avoid expensive mistakes and conflicts.

Robert M. Nordlund, PE, RS, is Founder/CEO of Association Reserves, a firm providing reserve studies for HOAs in California and the United States. Association Reserves is an ECHO Member. Robert can be reached at rnordlund@reservestudy.com.

May/ June 2017 | ECHO Journal

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How to Improve Your Meeting Minutes

By Colletta Ellsworth-Wicker, PCAM

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May/ June 2017 | ECHO Journal

27

T

he minutes of a community association are always extremely important.

An association is a business, and like any other business it protects its history, preserves and maintains the records and protects itself from possible liability. The secretary needs to be well organized, and committed to the association’s future.

First

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.

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, keeping in mind that meeting minutes serve as the official records of the meeting and can be entered as evidence in a court of law, they need to be concise and unbiased; they need to contain only facts. Since minutes are admissible as evidence, having the minutes reviewed by an attorney will decrease the likelihood of any legal repercussions resulting from the inaccurate recording of actions by a board or subcommittee.

Second

, while conducting association business, issues may crop up that require the board of directors to adjourn to a closed “executive” session. When the necessity for an executive session arises, member of the board must make a motion and state the reason for going into closed session and insure that the reason is recorded in the minutes by the secretary. Closed sessions are most often used to safeguard identities when the board discusses sensitive or confidential issues; state statutes dictate for what reasons a board may discuss issues in private, with the presence of owners.

Any action taken by the board in executive session must be recorded after returning to open session. While minutes can be taken in closed session, most legal counsel will recommend that the discussion occur in a closed session but the vote, and record of such, be entered into the regular board meeting minutes. To protect the confidentially of the association member or issue, the board could assign a case number

much like the current judicial system does, so that the owner’s name and address is not disclosed.

Third, the minutes should state the exact wording of the motions and the name of the person making the motion. It is important to stick to recording these facts and avoid adding discussion or opinion.

Fourth

, when a motion is made in a meeting of the board of directors to implement an action, it is important to record the specific person or committee to which the action is assigned, and from where in the budget the project will be funded. This assists the manager in the preparation of an action list of assigned tasks to be disseminated after the meeting to the board of directors.

This list will serve as a record of all actions to be completed and the individual or committee responsible for completing the actions. In addition, the action list will aid in the accountability of individuals assigned tasked actions and will keep anyone from performing actions not authorized by the board. Further, including the budget impact as part of the motion insures that the project will be funded appropriately and helps eliminate coding errors on the financial statement.

Lastly

, the board should establish an administrative resolution that dictates a standard format for all meeting minutes. Using a standard format to record minutes simplifies the task of taking minutes at every meeting. The first paragraph of the form should state the type of meeting, the complete date and location, the name of the presiding officer, that a quorum was attained, and a record of the members present and those absent. Included in minutes should be the next meeting date, acceptance of the treasurer’s report, management report, committee reports, incomplete business and the time of adjournment. This section should always be signed by the secretary of the board or committee and attested by another board member, usually the president or the presiding officer of the Committee.

IN SUMMARY: The following recommendations will enhance the quality of the minutes recorded

1

Keeping the published minutes concise and to the point will eliminate any emotion that may be misconstrued by the reader.

2 3

Assigning case numbers will ensure that issues of a confidential nature stay private.

4

Documenting the accountability of an action assigned and how it will be funded proves that the directive came from a source empowered to do so, avoids conflict in duties, and defines where financial responsibility is assigned.

Stating the exact wording of the motion spells out the board or committee member’s intent; likewise, recording the name of the persons making the motion will ensure that the person making the motion is an elected or appointed officer of the corporation.

5

The development of an administrative resolution on the format of meeting minutes aids in preserving the history of the association and ensures that the content is concise and comprehensive enough to legally protect the association from potential litigation.

Colletta Ellsworth-Wicker is vice president at the Community Group in Newport News, VA. This article originally appeared in Association Times, published by Associa, a national association management firm.

May/ June 2017 | ECHO Journal

29

Exterior and

30 echo-ca.org

Painting Tips Summer Heat

By Tim Bosveld

May/ June 2017 | ECHO Journal

31

E

xterior painting projects present a variety of challenges, ranging from the type of project and surface to be painted, to geographic location and the spectrum of diverse, outdoor conditions.

Despite all these factors, we demand that our built environment be protected by a film that is only a one-thousandth of an inch thick — so how do we ensure good exterior paint performance, especially when applying paint in summer heat? Here are some things to consider:

FIRST, the key to any good

paint job is always surface preparation. Wash the surface to remove loose dirt and dust. Next, scrape and sand surfaces to remove loose, peeling and flaking paint. Keep in mind that scraping or sanding surfaces of older buildings (especially pre-1978) may release dust containing lead or asbestos.* Once the surface is clean, prime any exposed substrates with the appropriate primer.

NEXT,

choose the right paint for the job. Today's 100 percent-acrylic paint systems offer the best performance on a variety of surfaces; however, not all acrylic paint resins perform the same.

Be sure to check for paint performance properties (e.g., adhesion, flexibility, color fade, gloss loss). Then, check the product’s volume solids, as this is an indicator of the amount of resin and pigment in the paint. A lower percentage means less resin and pigment, which can result in lower performance. Last, simply look at the price. A lower price can indicate inferior performance. Remember: You get what you pay for!

Also, consider how color can affect paint performance. Darker colors absorb more heat and energy, which cause substrate movement that can shatter the bond between previous coats and the substrate — especially wood. Using lighter colors is beneficial, as they reflect more light and do not absorb as much heat and energy; thus, improving film durability. The fact that lighter colors do not absorb as much heat also suggests that lighter colors can improve energy efficiency. A good indicator of how well a color reflects light is to look at its Light Reflectance Value or LRV. Higher values (closer to 100) indicate colors that reflect more light.

In addition, here are some things to consider when applying paint in the summer heat: When painting in warm weather, a latex paint is forced to dry very quickly. When this happens, the paint can be dry but film formation or curing may be incomplete, which will compromise long-term durability.

When painting exteriors, it's best to avoid having more than two or three

32 echo-ca.org

of the following conditions present simultaneously:

• Painting under very hot conditions, above 95º F

• Painting in direct sunlight, especially if the paint is a dark color

• The surface being painted is hot • The surface is very porous • Conditions are breezy or windy One of the best ways to try and stay within these guidelines is a technique called, “chasing-the-shade." Start applying paint on the shady side of a building and follow the shade as the sun moves overhead. Another way to minimize the effects of summer heat is to paint early in the morning when it is cooler.

If anything, try to avoid painting in the late afternoon when surfaces have had a chance to heat up and it becomes too hot to apply paint. Last, keep your brushes and rollers loaded with paint; work in smaller areas; and apply paint at a consistent, steady pace to get a good, uniform finish. * Exposure to lead or asbestos can be extremely hazardous to your health.

For more information, see Dunn-Edwards' brochure on “Surface Preparation Safety," call the EPA's National Lead Information Center at 1-800-424-LEAD, visit www.epa.gov/lead or www.epa.gov/ asbestos, or contact your state or local health department.

May/ June 2017 | ECHO Journal

33

WEEKLY

4 q 4 q 4 q 4 q 34 echo-ca.org

Look for and correct any sprinkler system leaks.

Replace any broken sprinkler risers or heads.

Test and amend pool water quality.

Test and amend spa water quality.

Clean the spa.

Check common area lighting and replace burned out lights.

Are You Getting Your Maintenance Dollar’s Worth?

W

e talk and talk about maintenance in broad terms: landscape maintenance, pool maintenance, lighting maintenance, roofs, gutter, paving, site cleaning and on and on. We never really get into the nitty-gritty details of what the maintenance tasks really are.

We never talk in detail about maintenance schedules, or what should be included in each maintenance contractor’s scope of work.

It is time to correct that oversight.

By Richard Tippett

May/ June 2017 | ECHO Journal

35

H

ere are a series of schedule-oriented checklists that set out specific maintenance tasks, and how often homeowner committee members (or the community manager) should check to be sure that the tasks are done. How frequently the tasks should be checked on also tells you how often your maintenance contractors should be doing the work.

WEEKLY q

Look for and correct any sprinkler system leaks.

q

eplace any broken R sprinkler risers or heads.

q Test and amend pool water quality. q

Test and amend spa water quality.

q

Clean the spa.

q If you separate the tasks by type of work, you will have a basis for drawing up maintenance scopes of work for your association’s various maintenance contractors.

Drawing up these scopes of work does two things:

Check common area lighting and replace burned out lights.

q Inspect and clean laundry rooms, including cleaning dryer filters. q Inspect lawn areas for mowing height, edging, over or under watering. q

1

It allows you to check

that your present main

tenance people are doing all that they should do for you.

2

It provides a basis

for getting competi tive bids for future maintenance contracts.

The Maintenance Inspection/Action Checklists are laid out with weekly, monthly, quarterly, semi-annual, annual and three, four and five year inspection/ action items. They are easily edited or supplemented to tailor them specifically for your association’s facility.

We hope you find them educational as well as useful.

36 echo-ca.org

Clean common area walkways.

q

Clean common area garbage spaces and recycle spaces.

q

Clean the exercise room.

Wipe machines and benches with disinfectant.

MONTHLY q

Inspect ground planting maintenance.

q

Check landscape watering and correct over or under watering.

q

Remove and replace all dead landscape plantings.

q

Clean pool filters.

q

Clean spa filters.

q

Clean common area garages.

q

heck for/remove C abandoned vehicles.

q

Clean common area buildings such as the clubhouse or pool house.

q

Notify owners or tenants who are cluttering the common areas with personal property or debris to remove same.

QUARTERLY q

Replace dead, over-aged or out-of-season ground plantings.

q Check and prune common area shrubs and hedges. q

Service all oil-fired water heaters or hot air furnaces.

q

Treat common area/ garbage areas for pests.

q

e-bait all pest R (termite) bait stations.

q

Check and renew any termite control stations.

q

est all common T area fire alarms.

q Reset any slipped tiles in pools, spas and fountains.

q

Check irrigation system electrical controls and timers for proper operation.

SEMI-ANNUALLY

q

Clean all roofs and gutters.

q

Treat landscaping for pests/disease.

q Inspect pool/spa lining for spalling, tile loss.

May/ June 2017 | ECHO Journal

37

q

Inspect and service gas-fired hot water heaters.

q

Inspect common area hot water heaters for anode and cathode losses.

q

Inspect common area hot and cold water piping anodes and cathodes.

q

Mark common area trees for pruning or canopy thinning.

q

I nspect paint for blistering, peeling, chalking or caulking failure.

q

I nspect siding and trim for cracking, spalling, blistering, rot or delamination

q q

Fertilize lawns and ground plantings.

q Inspect and service all common area electrical hot water heaters.

q

q

Check all solar panel piping and correct all leaks.

q

Ensure that all roof, balcony, walkway or wall leaks previously reported have been repaired.

ANNUALLY

38 echo-ca.org

Paint or stain all wood siding, trim and walkways.

EVERY FIVE YEARS

q

q

q

q

ave all common area fire H extinguishers inspected, tested if necessary and refilled

q

I nspect all common area walkways and decks for rot, damage or other maintenance needs.

q

Inspect/service all common area elevators.

q q

EVERY FOUR YEARS

q

Check that all storm drains are clean and free flowing.

Check roofs and flashings for ageing, maintenance needs.

Repair, reseal and restripe all roads and parking areas.

Winter: check lawn areas for drainage problems to be corrected in the spring.

est all common area T emergency lighting and replace dead or dying batteries.

q

q

q

Inspect and service all common area air conditioners.

Check sidewalks for raising and shifting.

EVERY THREE YEARS

Check paving for and repair any potholes, alligatoring, ruts, spalling, cracking or root damage.

q

eview all maintenance R vendor contracts and make any needed changes.

Recoat all waterproofed walkways, balconies, decks and foam roofs.

Have an arborist inspect all common area trees and make recommendations for action.

Dick Tippett is the principal at ERTECH, Inc., a firm that offers a complete menu of consulting / reconstruction management services for all types of buildings and properties. He is a past member of ECHO’s Board of Directors and former Chair of both the Maintenance Resource and Central Coast Resource Panels.

ECHO Professional Directory

Need Expert Help? Check Out ECHO’s Directory All of our Professional ECHO Members specialize in services for HOAs. Choose from more than 250 companies in over 50 categories including: 73 MANAGEMENT COMPANIES 30 ATTORNEYS 21 ACCOUNTING FIRMS VISIT THE PROFESSIONAL DIRECTORY ON THE ECHO WEBSITE!

www.echo-ca.org

Accountants/CPAs Animal Control Services Arbitrators & Mediators Architects/Architectural review Asphalt Repair & Paving Assessment Collection Services

Attorneys Banking Services Community Association Consulting Concrete Products & Services Concrete Repair Construction Manage- ment Consultants Consulting Electrical Services Fencing Gates & Doors Financial Services Fire Alarms Fire Sprinklers General Contractors Gutters Insurance Services Janitorial & Cleaning Services

Landscape Design Services Landscape Maintenance Leak Detection Maintenance & Repairs Management Company Services Masonry Other Paint Manufacturer & Consultant Painting Contractors Pest Control Services Plumbing & Boiler Repairs Pool Maintenance & Services Pool Repair & Resurfacing Services

Power Washing & Steam Cleaning Reserve Study Firms Restoration & Remediation Services Retaining Walls Roofing Contractors Roofing Products Security Services & Systems Sprinkler Repair Towing & Parking Services Tree Services Utility Auditors Water Conservation Water Management & Services Waterproofing Window

May/ June 2017 | ECHO Journal

39

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 Sandy Bonato, Esq. Geri Kennedy David Levy, CPA Melissa Ward, Esq. Wendy Weber

March/April 2016 Julie Adamen Neal Back, CPA Harvey Radin David Kuivanen, AIA Joel Meskin, Esq., CIRMS, CCAL

Central Coast Panel John Allanson 831-685-0101 East Bay Panel Brian Kidney 408-297-3246 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Judy O’Shaughnessy 408-839-6926 North Bay Panel Kevin Boland 415 898-4370 South Bay Panel Brian Kidney 408-297-3246 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 Jeffrey Barnett, Esq. Tyler Berding, JD, PhD. Tyler Coffin Alan Crandall Rolf Crocker, CCAM Derek Eckert, RS John Garvic, Esq. John Gill, Esq. Sandra Gottlieb, Esq. David Levy, CPA Alex Noland, Esq. Deon Stein, Esq. Amy Tinetti, Esq. Wendy Weber Krishna Yalamanchi

May/June 2016 Steven S. Weil, Esq. Graham Oliver Wayne Scott Steve Saarman Jordan M. O’Brien July/August 2016 Joel W. Meskin, Esq., CIRMS Victoria Cohen Mary Anne Sayler Richard Tippett Tom Fier, Esq. September/October 2016 Sandra L. Gottlieb, Esq. David Swedelson, Esq. Sharon Glenn Pratt, Esq. Glenn H. Youngling, Esq. Berding | Weil Rich Ellenson November/December 2016 Joe Winkler, CMCA Clint McClure, CCAM Cameron Day, Esq. Julie M. Mouser, Esq. Adrian Adams, Esq. Wayne Louvier, Esq. January/February 2017 Sandra L. Gottlieb, Esq., CCAL Burt Dean Cameron Day, Esq. Jo Pope David Levy, MBA, CPA Wayne Louvier, Esq. March/April 2017 Steven Saarman, Jeff Saarman, and David Saarman Dave Heiligenthal Erin Kelly Pat Crosscombe

40 echo-ca.org

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

May 4, 11:45 a.m.

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

Denise Wolford, CCAM 415-458-3537

Short Term Rentals and Drones

May 18, 11:45 a.m.

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

Pam Marsh 415-686-9342

Landscape/Fire Safety

June 14, 11:45 a.m.

South Bay Resource Panel ECHO Office, 1960 The Alameda San Jose

Brian Kidney 408-297-3246

TBD

June 16, 11:45 a.m.

East Bay Resource Panel Massimo Restaurant 1604 Locust St., Walnut Creek

Brian Kidney 408-297-3246

TBD

July 6, 11:45 a.m.

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

Denise Wolford, CCAM 415-458-3537

Community Websites

July 20, 11:45 a.m.

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

Pam Marsh 415-686-9342

Vehicle Charging Stations

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

The Back Nine Grill, Santa Cruz

South Bay

Second Wednesday, Even Months

TBD

Wine Country

Third Thursday, Odd months

Serv-Pro, Cotati

Legal

Quarterly

Varies

May/ June 2017 | ECHO Journal

41

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.

NEW ON TI I D E

Robert’s Rules of Order Member Price: $7.50 Non-Member Price: $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.

Home and Condo Defects Member Price: $12.95 Non-Member Price: $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.

42 echo-ca.org

2016 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.

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.

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.

Condominium Bluebook 2016 Edition Member Price: $17.00 Non-Member Price: $19.95 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 frequentlyasked questions about associations, along with succinct answers.

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

Bookstore Order Form

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

TITLE

QUANTITY AMOUNT

SUBTOTAL CALIFORNIA SALES TAX (Add 9.25%) TOTAL AMOUNT

Yes! Place my order for the items above.

Check

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Credit Card Number Exp. Date

Signature

Name (please print) Association (or company) Email Address City

State

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May/ June 2017 | ECHO Journal

43

directory updates

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

New Members Bryzek CPA 3461 Castro Valley Blvd.

Castro Valley, CA 94546 Contact: Ian Bryzek, CPA Tel: (510) 538.6014

US Metro Bank 1055 N. Tustin Ave. Anaheim, CA 92807 Contact: Claudia Benight Tel: (714) 399.0007

Dagizmo 565 Ortega Ave. #6 Mountain View, CA 94040 Contact: Dani Jordan Tel: (214) 587.0254

Wyman Property Management 2010 Jefferson St. Napa, CA 94559 Contact: Brad Bowles Tel: (707) 224.0400

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

To learn more, visit our membership page at www.echo-ca.org 44 echo-ca.org

advertiser index

about ECHO

Applied Reserve Analysis....................28 www.appliedreserveanalysis.com

Levy, Erlanger & Company..................24 www.hoa-cpa.com

Barcode Automation, inc. ...................13 www.Barcode-Automation.com

Malarkey Roofing Products.................23 www.malarkeyroofing.com

Benjamin Moore Paint & Company...........................................22 www.benjaminmoore.com

Morris & Sons Towing..........................20

Berding Weil...... page 2 and Back Cover www.berding-weil.com The Bridgeport Company....................22 www.bridgeportco.com Cornerstone Community Management.........................................37 www.cornerstonemgt.biz Eugene Burger Management..............21 www.ebmc.com Heritage Bank of Commerce...............11 www.heritagebankofcommerce.com IQV Construction & Roofing, Inc. .......37 www.iqvinc.com

Pacific Utility Audit, Inc.......................29 www.pacificutilityaudit.com PML Management................................32 www.pmlmanagement.com R.E. Broocker Co...................................36 www.rebroockerco.com Rebello’s Towing...................................33 www.rebellos.net Silicon Valley Civil & Structural Engineers............................36 www.Qengineers.com White & MacDonald, LLP....................33 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 bi-monthly magazine • 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............................$15

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.

August 2013 ||| ECHO ECHOJournal Journal February 2014 ECHO Journal May/ June 2017

45 45

legislation at a glimpse

The HOA-related selections below come from our review of thousands of bills introduced in Sacramento this year.

The complete list is available on our website. That list – and the impact of each bill – will change as authors amend the language in their bills.

For the most up-to-date information, visit the HOA Advocacy section at the ECHO website: www.echo-ca.org/hoa-advocacy

Current Legislation Bill Information

Summary

AB 494

Renting Accessory Dwelling Units

Author: Bloom Status: In Assembly Housing & Community Development

Current law requires ministerial, nondiscretionary approval of building permits for accessory dwelling units. This bill would specify that the unit may be rented separately from the main housing structure, and introduces other rules related to these units.

AB 534

Mechanics Liens on HOA Owners

Author: Gallagher Status: In Assembly Housing & Community Development

In a common interest development, would prohibit a mechanics lien from being filed against another owner in the common interest development unless that consent was provided or that request was made, except in the case of emergency repairs.

AB 690

Document Charges & Manager Conflicts of Interest

Author: Quirk-Silva Status: Amended 3/28.

In Assembly Housing & Community Development.

If a management company is contracted to facilitate the delivery of documents, this bill would require the company to inform a seller that he or she is not required to purchase all of the documents on a specified form. Additionally requires the association to disclose any conflicts of interest, as defined.

AB 731

Tax Deduction for HOA Assessments

Author: Chen Status: Amended 3/27.

In Assembly Revenue & Taxation.

This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2023, would allow a deduction in computing adjusted gross income for an amount paid or incurred by the qualified taxpayer during the taxable year, not to exceed $3,000, for qualified homeowners’ association assessments.

AB 786

Statements of Information – Online Filing

Author: Kiley

Would allow common interest developments to submit the biennial statements of information to the Secretary of State online.

Status: In Assembly Banking & Finance

AB 1079

Annual Policy Statement Deadlines

Author: Cunningham

Current law requires requires the association to distribute an annual policy statement between 30 to 90 days before the end of the fiscal year. This bill would change the time requirements for distribution to be within 31 to 91 days before the end of the fiscal year.

Status: Introduced

46 echo-ca.org

legislation at a glimpse

Current Legislation (continued) Bill Information

Summary

AB 1412

Address Disclosure & Personal Liability for Volunteer Officers

Author: Choi Status: Amended 3/23.

In Assembly Housing & Community Development.

When an owners fails to provide the required notice of their current mailing address, this bill would authorize the association to use the last address provided in writing by the owner. It would also extend the current limitation on the personal liability of directors to volunteer officers or directors in mixed use developments if they do not own more than two residential units.

AB 1426

Uncontested Elections

Author: Irwin Status: In Assembly Housing & Community Development

Would provide an exception to current HOA election requirements when the number of directors running for the board does not exceed the number of available positions. Provides procedures to ensure that members may run for the board, and to declare the election uncontested.

AB 1667

Landscape Water Meters

Author: Friedman Status: In Assembly Water, Parks & Wildlife

Requires urban water suppliers to install dedicated landscape water meters on multifamily service connections located in service area if the property has greater than certain amount of square feet of irrigated landscape. Requires an urban water supplier to install dedicated landscape water meters on single-family residential service connections that are located in service area.

SB 407

Owner Noncommercial Solicitations

Author: Wieckowski

Would prevent an association from prohibiting an owner from contacting any other owner or resident for the purpose of providing information about a candidate for public office, or for an office within the association, or on any issue that is the subject of a public or association election or pending public or association legislation or rulemaking.

Status: Introduced

SB 451

Liability for Harassment

Author: Stone Status: Introducedg.

Would prevent an association from being liable for the harassment of a member by another member where the association’s governing documents do not contain a provision to authorize the association to stop the harassment.

SB 721

Deck & Balcony Inspection Requirement

Author: Hill

Requires the inspection of certain decks, balconies, and elevated walkways by a person licensed to perform these inspections by the Department of Consumer Affairs. Would also assess specified civil penalties against a property owner, in the form of a lien against the property, for failure to comply with the provisions of the bill.

Status: Amended 3/27.

To Transportation & Housing.

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