The Echo Journal – Issue 2 2021

Page 1



A natural disaster can strike a community at any time.

Strategies for securing debt when the owner cooperates








Construction Defects


Your HOA

Banking Specialist

Treasury Services • Web-Based Payment Portal • Integration Services • Operating and Reserve Accounts • Local Lockbox Processing • HOA Loans • Placement Services for Excess Reserves •

Equal Housing Lender

Supporting Member of

Equal Housing Lender

A Dedicated HOA Department Here For You

Equal Housing Lender

Give us a call today 844.489.0999

Member FDIC

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

Echo 5669 Snell Ave., #249 San Jose, CA 95123 408.297.3246 |



David Hughes

Jerry L. Bowles


Rolf Crocker Sarah Dunia John Gill, Esq.


Mark Guithues, Esq.

Karl Lofthouse

David Levy, CPA


Diane Rossi Katrina Solomatina, Esq. Wanden Treanor, Esq.





Laura Bertine The Echo Journal is published bimonthly by the Executive Council of Homeowners (Echo). 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 or image.

Echo membership benefits you and your HOA. Join today! OUR MISSION STATEMENT Fostering a better quality of life in community associations through education, advocacy and networking.

© 2021 Executive Council of Homeowners (Echo) All rights reserved. Reproduction except by written permission of Echo is prohibited. Echo member information is never released to any outside individual or organization, unless agreed to by the member.

For more information visit ECHO journal | ISSUE TWO 2021



Click a page number to jump directly to the article!

Features 8

Deconstructing Construction Defects



Emergency Preparedness in California HOAs



The Self-Managed Association: Governance Lessons from the Pandemic



Do’s and Don’ts of Assessment Collection


Happenings 20 28


ISSUE TWO 2021 | ECHO journal


Executive Director’s Message: The Pandemic Strains the Patience of Neighbors & Management



April 22 LiveStream Webinar: The Banking Relationship


Welcome to Our New Professional Service Providers


Index of Advertisers


Legislative Session – 2021


2021 Statute Books Are Available!


2021 Professional Service Provider Resource Directory


May 6 LiveStream Webinar: Identifying Harassment in Your HOA

Your HOA for 2021. And Beyond. Here's to new beginnings and healthier community partnerships. Join the GCM Family. Request a proposal today.  888.277.5580 PREMIER HOA MANAGEMENT SINCE 2003






ECHO journal | ISSUE TWO 2021



Raison d’Etre – The Reason for Bo

What a beautiful phrase, raison d’etre (reason for being). It is a

The Pandemic Strains themember Patience of and collectively agree. every board should consider Neighbors & Management The phrase engenders humanity. The words roll from one’s tong

stark business senses and adds the element of humanity to the a asking board: planning, execution and evaluation; In Echo board meetings, I have begun theStrategic One of the findings of the Echo board sounded mission directors to share their perspectives on management. the current the for me. realities It was a troubling Thealarm business shouldobservation be reflective of com resulting from the COVID-19 pandemic. They HOA world. It is an excellent exercise for our leaders common values of individuals in the community. reported that the pandemic has dramatically affected to share their sense about HOA communities. I

the psyche of our communities. Complaints are wholeheartedly recommend it to you. The diverse are imperfect – because they are made of humans. H skyrocketing, and small issues are now panicking opinions of each member of the board, Communities who work homeowners. Annoyances are no longer dealt with and live in a wide variety of HOAs, help relating. us to pieceHumans using. Human living. Basically, humans being patiently; they are escalating into formal complaints together a current look at the mosaic we call the being human,and communities sometimes forget that manageme major points of conflict. In normal times, they “HOA industry.” This helps Echo to better manage establish norms forbea addressed successful community. In with a sense, the bo would with little passion and within its business environment and make sound professional aplomb. It was reported that email operational and long-term strategic decisions. the community. Its purpose is to establish order and elevate o inboxes of managers have “exploded” during the progress and pace by establishing norms and constraints to b pandemic, and the processes and systems in place to Strategic decisions and operational objectives define the road map to achieving the long-range to benefit all. manage homeowner issues are being overwhelmed. This, in turn, is wearing thin the patience of neighbors vision of an HOA. Note that there is a big difference and threatening neighborhoods. this difficult between a vision and a dream. A dreamIt is seems something apparent that board leadershipInmust understand and time, we need to be extremely vigilant not to allow ethereal, shapeshifting its form as thoughts and owners in order to orchestrate a sense of community and gener small issues to become long-term, perhaps lifelong, feelings influence it. A vision is a long-term picture grievances against HOA or anyone of what the board expects for the organization, and protect community values.the The purpose ofinaleadership. board, therefore complete with a clear idea of how to get there. So it build communityThe based onin common the good of all. danger not dealing values with this for behavior is is extremely important for a board to look outward twofold: (1) Management and relationships within and regularly consider the changes in the industry takes time toleadership orchestrate a community. takesmore time to know yo are being overly taxed,Itforcing and what implications they may have onItthe vision legalistic or strict responses often fail to embody for the association. It is equally important to consider time to listen to the voices and build that a vision reflective of comm human compassion. (2) These breaks or stressors in the operational implications on the long-term vision and you will bedecorum more effective board member and may derail as the apath toward achieving the satisfied to ensure these actions do not cause the association foron thethe association. your reason forvision being board.The short-term impact to veer off-path and potentially cause fatal harm. could create a traumatic response and severely damage the homeowner, manager, board ECHO is committed tohow helping homeowner boards and residents member, or resident feels about the association. ing and advocacy –feelings this is could our “raison d’etre”. These result in the abrupt redirection of daily management and project flow, creating a disruptive hot mess. Unlike with businesses, people

Good luck and stay safe,


David Zepponi Executive Director


ISSUE TWO 2021 | ECHO journal

live in these communities. Their homes are their castles. Association boards are charged with the ongoing success of the HOA. Accordingly, the execution of operational objectives should focus on achieving the strategic vision for the community, and not be distracted or cause permanent harm. Negative behaviors brought on by the pandemic must be nipped quickly before they create an explosive and personal response from the parties. The good thing is that the pandemic is an aberration, something no one expected. It is a major disruption that has heightened the uneasiness of residents. The pandemic will pass. Do not to allow it to affect the long-term viability and quality of life of the association. It will be important to reinforce your leadership with simple reassurances. Communicate frequently with homeowners. Respond quickly to members. Be

cordial and listen, listen, listen. Sublimate their negative energy with a focus on the positive and use a truly empathetic approach to their needs. And always reinforce that “this too shall pass” – it will. In working to build communities, Echo has found that most engaged members of an HOA, including the board members, are very reasonable – and very human. They strip away the pretense of a profession or

career, and they commit personal time to make things better in their communities. That is why Echo stands with you and suggests a sanguine approach to managing the challenges before us during one of the most traumatic periods of human history. Showing leadership with compassion and staying focused on the vision will enable homeowners to stay the course and build a strong community.

(408) 345-4000 We counsel: • Condominium Associations • Planned Unit Developments

• Mixed Use Associations • Commercial Associations

We provide general counsel to Associations including the following services: • Construction Defect and Civil Litigation • Dispute Resolution

• Governing Document Interpretation • Governing Document Revisions • CC&R and Rules Enforcement

ECHO journal | ISSUE TWO 2021


BY J . S P E N C E R E D G E T T, E S Q .




ISSUE TWO 2021 | ECHO journal

In California, the majority of construction defect claims for original residential construction are governed by the Right to Repair Act (Cal. Civil Code §§ 895-945.5) also commonly referred to as SB 800. The statutory framework of SB 800 defines what constitutes an actionable construction defect pursuant to enumerated ‘functionality standards’ for various components of construction. A violation of the functionality standards is actionable under the law and provides homeowners or community associations (hereinafter both referred to as ‘Homeowner(s)’) with a right to monetary compensation for the cost of repair and related damages. Homeowners are also entitled to recover reasonable investigative costs for each established violation. SB 800 additionally requires the parties to participate in a pre-litigation procedure designed to facilitate resolution and allow Continued on page 10

A Real-World HOA Experience In the picturesque San Francisco Bay Area lies a 100+ unit condominium community. Most of the homeowners were very happy with their home purchase and enjoyed the many facilities their community offered. Sure, there were some fixes that needed to be made but no one expected to find hidden construction defects. While there were not many complaints of leaking windows, a few owners noticed and reported what appeared to be a black liquid oozing from the heads and corners of a handful of windows. Further investigation revealed that the oozing black liquid was asphaltic residue from self-adhering flashing materials which were in direct contact with an incompatible sealant used to waterproof the window assemblies within the wall. The incompatibility of the flashing material and sealant caused a chemical reaction that degraded the flashing material, which reduced its waterproofing capabilities and caused water intrusion in and around the windows. At some locations, the extent of hidden damage uncovered was so severe that entire sections of wall sheathing and framing had rotted and decayed, thus requiring replacement. Luckily, the issue was caught in time and a monetary settlement was reached with the developer and its insurance carriers that provided the necessary funds for repairs and avoided a special assessment of the membership, estimated to be $40,000 – $50,000 per unit! This “real world” example demonstrates the need for homeowners to retain a professional forensic consultant to perform an evaluation of their homes (especially newer buildings that may be approaching the 10-year deadline to initiate a claim) as the trained eye of a professional may identify a problem that would not be readily apparent to a layperson. ECHO journal | ISSUE TWO 2021


Deconstructing Construction Defects Continued from page 9

the developer/builder to offer and implement repairs and/or pay monetary compensation to resolve the claim. If construction defects are not discovered early and resolved by way of a claim made to the developer/builder, they can be financially devastating to homeowners, who will be forced to expend substantial funds on unplanned repairs.

SB 800 Functionality Standards With respect to water issues, SB 800 includes, among others, the following functionality standards: EXTERIOR DOORS A door shall not allow unintended water to pass beyond, around, or through the door or its designed or actual moisture barriers, if any. (Cal. Civ. Code Section 896(a)(1))

WINDOWS AND PATIO/DECK DOORS Windows, patio doors, deck doors, and their systems shall not allow water to pass beyond, around, or through the window, patio door, or deck door or its designed or actual moisture barriers, including internal barriers within the systems themselves [and] shall not allow excessive condensation to enter the structure and cause damage to another component. (Cal. Civ. Code Section 896(a)(2) and (3)) ROOFS Roofs, roofing systems, chimney caps, and ventilation components shall not allow water to enter the structure or to pass beyond, around, or through the designed or actual moisture barriers, including, without limitation, internal barriers located within the systems themselves. (Cal. Civ. Code Section 896(a)(4))


Many construction defects are not readily apparent (referred to as ‘latent’ defect i.e., the removal of exterior cladding or trim. However, there are some ‘tell-tale’ s

The presence of efflorescence is often indicative of unintended or trapped water within the building systems. Efflorescence is a white powdery deposit of salts often left behind by water on the surface of stucco, concrete, brick or stone.


ISSUE TWO 2021 | ECHO journal

Foundation cracks, drywall cracks and windows or doors that are difficult to open or close are potential signs of building movement that could suggest a problem with expansion, compaction or settlement of the soil beneath the structure.

Windows with a ‘fogged could indicate a failure Glass Unit (“IGU”) due t seal which has allowed the space between the and/or corrosion of the the glass.

DECKS Decks, deck systems, balconies, balcony systems, exterior stairs, and stair systems shall not allow water to pass into the adjacent structure [or] allow unintended water to pass within the systems themselves and cause damage to the systems. (Cal. Civ. Code Section 896(a)(5) and (6)) EXTERIOR CLADDING Stucco, exterior siding, exterior walls . . . shall be installed in such a way so as not to allow unintended water to pass into the structure or to pass beyond, around, or through the designed or actual moisture barriers of the system, including any internal barriers located within the system itself [and] shall not allow excessive condensation to enter the structure and cause damage to another component. (Cal. Civ. Code Section 896(a)(10) and (11))

SB 800 Prelitigation Procedure Prior to filing an action for violations of the functionality standards, the parties are required to participate in a prelitigation process designed to resolve the dispute. The SB 800 statute provides a default procedure to be followed; however, a builder may attempt to enforce its own alternative contractual prelitigation procedure typically set forth in either the Covenants, Conditions and Restrictions (“CC&Rs”) and/or individual purchase and sale agreements with individual homeowners. The default SB 800 procedure requires, among other things, the homeowner to provide notice of the claimed violations of functionality standards to the builder and allows for the builder to inspect the conditions, make an offer to repair and participate in mediation. Depending on the complexity of the issues, this Continued on page 12


ts) and are not discoverable without performing intrusive testing or investigation, signs that construction defects may exist and thus warrant further investigation.

d’ appearance of the Insulated to a breach of the moisture to enter panes of glass e low-E coating on

Stucco cracks are typical after construction due to the curing process of the plaster and normal expansion or contraction; however, cracks that are significant or excessive in number, width or length could indicate a problem with the system resulting from improper installation, failed flashing conditions or the use of poorly mixed stucco plaster.

Any significant separations in lap siding at the siding butt joints or siding-totrim junctures, as well as siding that is delaminating, buckling, cracking or has a wavy appearance are all signs that the siding was not installed properly, whether due to inadequate/incorrect fastening, failure to leave proper gaps to allow for thermal expansion and contraction, or possible water intrusion.

ECHO journal | ISSUE TWO 2021


Deconstructing Construction Defects Continued from page 11

process can last from 6 to 12 months (or longer).

Time Frame to Bring a Claim (Statute of Limitations and Repose) The absolute deadline to initiate a claim is ten years from substantial completion of the improvement but not later than the recordation of a valid notice of completion (Cal. Civ. Code Section 941). This applies to ‘latent defects,’ i.e., defects that are not readily apparent upon reasonable investigation. However, there is a shorter three (3) year period in which to bring a claim once the defect is discovered (Cal. Code of Civ. Proc. Section 338). In addition, there are mandated

representation is made, or if the representation is less than one year, the period shall be no less than one year. (Cal. Civ. Code Section 896(g)(3).)

deadlines to initiate a claim within SB 800 for specific components including the following:

One-Year Limitations Period

• Irrigation systems and drainage (from close of escrow). (Cal. Civ. Code Section 896(g)(7).) • Noise transmission for attached units (from original occupancy of adjacent unit). (Cal. Civ. Code Section 896(g)(6).) • Manufactured products, including but not limited to windows, doors, roofs, plumbing products and fixtures, fireplaces, electrical fixtures, HVAC units, countertops, cabinets, paint, and appliances that are completely manufactured off-site. If no useful life

Two-Year Limitations Period

• Untreated wood posts in contact with soil causing unreasonable decay (from close of escrow). (Cal. Civ. Code Section 896(g)(8).)

• Dryer duct installation and termination pursuant to manufacturer installation requirements (from close of escrow). (Cal. Civ. Code Section 896(g)(14).) Continued on page 24

HOA Premium Reserve Solution Put your funds to work with the leading community association bank.

Competitive rates, secure deposits and a streamlined banking experience. CIT offers a range of solutions to manage and grow HOA funds safely and effectively: • Choose from the Premium Sweep Account, Premium CD, Premium Ladders CD and Premium Money Market • Enjoy the ease of dealing with one bank to serve all your HOA banking needs • Get a competitive rate of return to grow your reserve funds • Access your funds when needed with the flexibility of investment options And with our HOA Premium Reserve Solution, you get the security of knowing your funds are protected and secured by a surety bond.

Let’s get started. Visit Roxanne Jolicoeur 925.963.9733 |

Premium reserve products are for new money only (money not currently held by CIT Bank, N.A.) Funds in excess of FDIC insurance coverage limits are covered by a third-party issued surety bond. Such excess funds are not subject to FDIC deposit insurance. The surety bond providing excess coverage over FDIC insurance may be cancelled at any time upon 30 days’ written notice. Should a notice of cancellation be given, CIT will contact the client to discuss alternatives to provide for the continued safety of funds. May not be available in every state. ©2020 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc. Deposit and loan products are offered through CIT Bank, N.A., the FDIC-insured national bank subsidiary of CIT Group Inc. MM#7870


ISSUE TWO 2021 | ECHO journal



AXIS COMPANIES HOA Repair and Reconstruction Services Painting There is an art to painting! At Axis, we focus on providing a high-quality, longlasting paint job that won’t break the bank. Axis holds a C33 painting license.

Destructive Testing For over 15 years, Axis has provided destructive testing services to the construction forensic investigation industry. Our experienced destructive testing crews provide unparalleled service by performing cost effective testing and remediation of affected building components.

SB800 Repair Assistance

No matter what size job, our experienced team of professionals can handle it. What We Do Axis is unique in the industry. We are a general contractor with in-house design capabilities and construction divisions including reconstruction, maintenance, painting, electrical and restoration. We specialize in working with homeowners associations, apartments and other occupied structures and are experts in waterproofing repairs to stucco, siding, decks, stairways and balconies.

What We Can Do For You At Axis, we specialize in protecting your investment/home by maintaining and preserving it in peak condition. Sometimes it means the small stuff, like minor stucco and waterproofing or trim repairs. At other times, it may mean a major reconstruction project.

Since the passage of SB800, Axis Construction, in partnership with our sister company, Axis Construction Consulting, Inc., has become the premier SB800 repair contractor and consultant in California. With over 15 years of experience in SB800 repairs under our belts, we are your solution for all your SB800 needs.

No matter what size job, our experienced team of professionals can handle it. Axis can keep your property looking its very best.

Construction Since 1991, Axis has been dedicated to serving the needs of our residential and commercial clients. We hold three separate licenses allowing us to provide varied services to meet our clients’ demands.

Electric Axis Electric holds a C10 license that allows us to perform residential and commercial electrical work providing a wide range of services from minor repairs to complete system replacements. All with a 24-hour emergency response service.

2544 Barrington Court Hayward, CA 94545 (510) 732-6111

ECHO journal | ISSUE TWO 2021


April 22, 2021 | 1:00 pm – 2:30 pm



The Banking Relationship The importance of a strong banking relationship in your HOA



At Echo we know the way market your business haves to changed. Echo’s opp ortu success have nities for business changed to needs! meet your


Homeowner or Board Member: FREE (408) 2973246 www.echo

Professional Service Providers & Managers: $20 Register at

Hi, my name is Kevin Boland and we have probably Hi, my name is Kevin Boland and we have probably met at many ECHO panels over the years. I offer met at many ECHO panels over the years. I offer Guaranteed Replacement Coverage so smart boards Guaranteed Replacement Coverage so smart boards can protect buildings from wild/urban fires no matter can protect buildings from wild/urban fires no matter what the cost is to rebuild today! what the cost is to rebuild today! Give me a call for a professional bid on your HOA Give me a call for a professional bid on your HOA insurance and save! insurance and save!

Kevin Boland, LUTCF, AIC, CIC Kevin Boland, LUTCF, AIC, CIC CA License # 0C33871 CA 1202 License # 0C33871 Grant Ave., Ste. E, Novato, CA 94945 1202 Grant Ave., Ste. E, Novato, CA 94945

Call 415.898.4370 today! Call 415.898.4370 today! Restrictions apply. Discounts may vary. Not available in all states. See your agent for details. Insurance is underwritten by Farmers Insurance Exchange and other affiliated

insurance Visitvary. for a in complete of companies. Not all insurers areisauthorized to provide insurance in allExchange states. Coverage is not available in all states. Restrictions apply.companies. Discounts may Not available all states.listing See your agent for details. Insurance underwritten by Farmers Insurance and other affiliated insurance companies. Visit for a complete listing of companies. Not all insurers are authorized to provide insurance in all states. Coverage is not available in all states.


ISSUE TWO 2021 | ECHO journal

FIRST IMPRESSIONS MATTER But it’s the lasting ones that count Partner with BrightView and be confident about the message your landscape sends. Our landscape experts deliver solutions that are tailor-made for you with dependable service and consistent results. • Landscape Maintenance • Specialty Turf — Sports and Golf • Tree Care Services • Water Management & Irrigation

See how BrightView’s expert solutions can transform your landscape.

Contact Us

844 235 7778

Landscape Services

ECHO journal | ISSUE TWO 2021






ISSUE TWO 2021 | ECHO journal



alifornia is used to wildfires. But the Golden State’s record-breaking 2020 wildfire season was particularly brutal. A blistering heatwave fueled dozens of simultaneous fires – conditions that spurred Gov. Gavin Newsom to declare a statewide state of emergency. Tens of thousands of people were evacuated from their residences. But that was not – and is not – the only threat California residents face. The heavy rains earlier this year caused a collapse of a portion of Highway 1 near Big Sur due to a “debris flow” of trees, boulders, water, and mud, leaving behind a 150-foot-wide gap. Thousands of Monterey County residents were impacted by evacuation orders. The COVID-19 pandemic has also caused many residents to question whether the common facilities they share with others are safe and to consider how to respond to an outbreak in their community.

Continued on page 18



ECHO journal | ISSUE TWO 2021


Emergency Preparedness for HOAs Continued from page 17

A natural disaster can strike a community at any time. It can occur in a moment or gradually over time. In either case, most community associations are illprepared for the consequences. In most associations, disaster insurance is inadequate or nonexistent, and there is often little reserve funding that can be tapped to rebuild the development. Regardless of whether they are dealing with landslides, mudslides, fire, flood, earthquake, civil unrest, or a pandemic, every community association should have a plan in place that is unique to its common-interest community. Most community associations lack the most basic level of response: a written emergency plan.

The End of the Road?

Trusted Paints. Quality Results. Benjamin Moore offers a comprehensive lineup of interior and exterior residential products to suit a wide range of needs, specialties and budgets, along with the best selection of color in the business. Homeowners and paint professionals have trusted our unmatched quality and long-term results since 1883.

Put Benjamin Moore® paints to work for you. Contact Pam Marsh HOA Paint Specialist at 415-686-9342 or ©2017 Benjamin Moore & Co. Aura, ben, Benjamin Moore, Color Lock, Paint like no other, Regal, and the triangle “M” symbol are registered trademarks licensed to Benjamin Moore & Co.

17-15869_Echo Journal Ad_5.1875 x 2.312_v2.indd 1

4/12/17 8:39 AM

If the past year has taught anything, it is that HOAs need to be better prepared for a disaster and that having an emergency plan is the first step on this long, winding road. Identifying exposure, creating a plan, implementing the plan, and updating and practicing the protocols of the plan are all bricks used to be prepared and to build a successful road.


Specializing in Homeowner Associations Property Maintenance • Construction • Free Estimates Interior/Exterior Painting • Wood Rot Repair • Patios & Decks 18

ISSUE TWO 2021 | ECHO journal


CA License #780250

Katrina Solomatina, Esq. serves on the Echo board of directors and is a member of other industry associations.

HOA EMERGENCY PREPAREDNESS CHECKLIST Investigate the Exposure to the Association

Community associations or owners’ associations (referred to here as “association”) are generally defined as nonprofit organizations (either incorporated or unincorporated) formed to manage planned communities, such as condominium or master-planned developments, and to enforce their governing documents. The owners of lots or units are the members of the association. It is important to mention that associations are not organized to benefit individual members. Rather, an association’s duty to its members is to ensure that the property and the common areas (including common structural elements, access points, lobby, and amenities) are safe and secure. In addition, even though an association is not responsible for and cannot guarantee its residents’ personal safety during a time of crisis, the failure to have a community-wide plan to respond to an emergency may create potential liability for the association, as members look to the association’s board for direction in times of disaster. This is where the emergency response plan provides the greatest benefit. Associations looking to create an emergency plan should retain experts to investigate the vulnerability of their project to potential natural disaster, the need for heightened cleaning, vendor and contractor access, and the closure of certain amenities. Consulting with and getting input from the association’s outside property management company is also important. For example, some of the more at-risk developments are older buildings, developments with hillside common areas, proximity to the San Francisco Bay or the ocean, developments constructed on engineered fill or bay mud, and those having only one access road. Therefore, given current events, it is more important than ever that associations spend the time and resources necessary to have a comprehensive plan in place so that it is available to everyone in times of disaster.

Review the Association’s Insurance

A review of the insurance of the association is imperative to prepare for a disaster. If the insurance is inadequate, it is best to make that determination before a disaster. After the disaster, an association will be responsible for repairing the common area regardless of whether it was insured. Even if the association is well funded, major repairs may have to be funded through a special assessment of the members. So, an assessment of the association’s insurance and reserves policy before disaster strikes could potentially prevent major expenses or the need to go through a special assessment at a later time.

Review the Governing Documents

A review of the governing documents of the association will help to identify potential areas of concern, such as whether an association has a right to come onto members’ property to clear debris and other damage or whether there is a specific time frame within which the Association would have to rebuild common areas.

Create an Emergency Plan

An emergency preparedness committee can help an association create, review, and implement an emergency preparedness plan. The members of such a committee may serve as points of contact during the disaster. In addition, they can have access to all the necessary service provider phone numbers to summon immediate help when a disaster strikes. The plan, once in place, should be regularly updated and kept available on the association’s website, at its community management office, and/or at other locations where members can readily access their association’s important documents.

Educate Association Members about the Plan

Once the plan is created and adopted by the board, the association should distribute the plan to its members and consider holding one or more training sessions. The association should also educate members and residents concerning responsibility for their own safety and how to function without community management or services. In addition, an important step for an association is to determine how communications will be handled during an emergency if the power goes out or if there is no internet or phone connection. Associations should look to establish basic owner contact processes, such as a central information hub or notes on residents’ doors.

ECHO journal | ISSUE TWO 2021





ISSUE TWO 2021 | ECHO journal

California’s homeowner associations were not immune to this upheaval and are still impacted significantly by COVID. HOAs have had to navigate challenging situations including closing community amenities, moving meetings online, deferring projects, and holding elections virtually. Adaptability has become a virtue, with new technologies adopted to enhance online meetings and events. Against this backdrop and regardless of the challenges, HOA governance continues, with budgets prepared and approved, reserve studies updated, assessments collected, rules enforced, bills paid, and projects considered. As vaccination rates increase, California businesses are beginning to reopen and consider return-to-work dates and policies. HOA boards of directors are also considering how reopening will affect their communities, association members, and governance. Self-managed HOAs can benefit by reviewing important lessons learned from the pandemic. These lessons include the following: KNOW THE IMPORTANCE OF A RISK MANAGEMENT PLAN. Managing risk is a proactive planning and preparation process. It must be deliberate and scheduled and must result in risk management policies and procedures. Risk management planning can also act as a backstop for board members and staff when they’re faced with member pressure to open amenities or attend meetings and elections in person. A specific policy worth considering is a board and community policy for responding to emergency orders from state and local leaders. This


policy could include provisions for closing or curtailing operating hours for community amenities, reducing staff, and moving meetings and elections to online virtual formats. SCHEDULE A PANDEMIC DEBRIEFING WITH KEY VENDORS AND SERVICE PROVIDERS. As stay-at-home orders are relaxed and businesses begin to return to normal, key vendors and service providers can provide valuable insight to boards as they consider relaxing COVID-inspired rules. Attorneys and insurance agents knowledgeable in HOA governance can inform board members and help them to be up to date on managing insurance risk and exposure, as well as legal considerations for new rules and guidelines for amenity use. Scheduling touch-base meetings with landscape maintenance vendors and janitorial service providers can help boards navigate and manage expectations for community care and post-pandemic cleanliness and sanitizing standards. START PLANNING FOR INPERSON BOARD MEETINGS. California’s Open Meeting Act sets limits and requirements for boards, stating that the board must post the date, time, and place of meetings. The act also sets strict limits for boards meeting electronically or by conference call. As reopening progresses, boards will be under pressure to return to in-person board meetings. Now is a good time to begin a conversation with the community attorney to proactively establish guidelines for reconvening in-person meetings, and hopefully keeping some of the efficiency and productivity afforded by the online meeting

format. This is also a good time to create policies and procedures for how to convene board meetings during declared emergencies. RECONSIDER DEFERRED PROJECTS. During the pandemic, many boards deferred or postponed common-area projects or improvements because of vendor uncertainty and state and county guidelines for essential workers. With skilled workers hard to come by, construction-related trades will be hard-pressed to keep up with demand. Boards that have deferred commonarea maintenance or repair projects should begin as soon as possible requesting updated bids, estimates, and project schedules. If the HOA is due for the threeyear reserve study update, the HOA board should schedule time with a reserve specialist, and adjustments should be made, if necessary, to account for deferred reserve projects. If the HOA is simply doing an annual update and summary disclosure, it may be necessary to disclose that projects have been deferred and in which year the deferred projects will be conducted. Many members are looking forward to returning to exercise rooms, pools, spas, tot lots, bocce courts, and social gatherings. Community amenities and outdoor common areas will need to be inspected and have maintenance and deep cleaning completed before reopening.

requirements for volunteers and staff during emergencies. It is recommended that boards perform an assessment by interviewing volunteers and staff members and holding open discussions that honestly evaluate the challenges encountered and how they were overcome. As part of the assessment, existing technology and tools should be considered – what worked and what didn’t? Are there modest investments in technology and tools that would better prepare the HOA for another emergency? The assessment should take a deep dive into how the association can be better prepared and what investments can be made to facilitate remote work, community communication, and the health and safety of the HOA. The last 12 months have been stressful and demanded outof-the-box thinking from HOA boards and management staff. Overall, California’s homeowner associations have done a great job continuing business as usual. HOA boards of directors and volunteer leaders should take a bow for adjusting, adapting, and continuing good governance. Well done!

John Cligny, AMS, PCAM, CCAM-HR, is a veteran portfolio manager and community association management executive. As co-founder of Association Consulting Group, John is a trusted

CONSIDER AND ESTABLISH POLICIES FOR VOLUNTEER STAFF, EMPLOYEES, AND THE GENERAL MANAGER. As the pandemic crisis recedes and HOA business and activity becomes normalized, this is a good time for the board to discuss its expectations and

advisor primarily focused on educating and advising community association board members on effective governance to promote a positive public opinion of homeowner associations and community management. John is a frequent speaker and panelist on a wide range of community association topics and issues. ECHO journal | ISSUE TWO 2021


Call: 408-292-8300 x2

Private property towing specialists


24 Hours / 7 days a week 20 Minute response time Uniformed, polite, professionals Licensed with indemnity insurance Fire lane tour and tow Parking permit enforcement Insurance compliant with - Compliance depot - Registry monitoring • Customized parking permits • We have a city business license, and a special use permit to perform private property towing.

Our Drivers: • Are licenced with the city of San Jose • Are licenced by Bureau of Security and Investigation • Are paid hourly and never a comission • Must pass a rigorous three month training program • They must pass traffic incident management training

Free to Qualified Property Managers: • Fire lane painting and maintenance • Parking permits to go with your parking program • Omadi login, on our website, for instant access to tow info and pictures

Ask Us How To Reduce Risk, Minimize Complaints and Eliminate Aggressive Towing

22 ISSUE TWO 2021 | ECHO journal

696 Kings Row, San Jose, CA 95112 696 Kings Row, San Jose, Phone: 408-292-8300 x2 CA 95112 408-292-8300 x2


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

Since its inception, CID Consortium, LLC (CIDC) strives to provide excellent financial and operational guidance to communities, board members, managers, and owners of communities big and small in an everchanging environment. We believe in building relationships by doing our business transparently and keeping our clients informed. Before sending a proposal, we take the time to uncover what success looks like for your community. Once we are aligned, we will propose a combination of Governance, Finance, and Organizational services specific to your unique needs. Owners and operators Donald (”Don”) W. Haney, CPA, and Adam P. Haney, CPA, are well known for their role in developing homeowner association industry standards and technology. Don originally started in the industry in 1979 when he formed two corporations: CEO, Inc. and Haney Accountants, Inc. Both organizations laid the foundation for CIDC led by Adam P. Haney, CPA. Today, CID Consortium, LLC has grown into a team armed with passion and expertise for improving the community living experience of its members. Pulling from 45 years of business, CIDC has accumulated a wealth of experience and expertise through a relentless pursuit of perfection. Fueled by technology and incessant process improvement, the team engages with members on a rich platform, ensuring the community living experience continues to be exceptional. For more information about the services we provide, please visit our website at

919 Reserve Drive Roseville, CA 95678 (888) 786-6000 ECHO journal | ISSUE TWO 2021




Deconstructing Construction Defects

displacement in exterior pathways, driveways, hardscape, sidewalls, sidewalks, and patios (from close of escrow). (Cal. Civ. Code Section 896(g)(1).) • Corrosion to untreated steel fences and adjacent components (from close of escrow). (Cal. Civ. Code Section 896(g)(9).)

Continued from page 12

• Landscaping systems installed as to survive for not less than one year (from close of escrow). (Cal. Civ. Code Section 896(g)(12).)

Four Year Limitations Period

• Plumbing and Sewers installed to operate properly and not materially impair the use of the structure (from close of escrow). (Cal. Civ. Code Section 896(e).) • Electrical Systems installed to operate properly and not materially impair the use of the structure (from close of escrow). (Cal. Civ. Code Section 896(f).) • Excessive cracks or significant vertical

Five Year Limitations Period

• Paint and stain causing deterioration of building surfaces (from close of escrow). (Cal. Civ. Code Section 896(g)(10).) If the statute of limitations period has otherwise run during the process, then from the time the homeowner provides the SB 800 Notice to the builder through 100 days after completion


Your HOA Specialists TM

GENERAL CONSTRUCTION Exterior Reconstruction/Decay Repairs Interior Renovations

ROOFING SPECIALTY CA Lic. 963219 (408) 638­5500

Roof Replacement Roofing Repairs

Request a FREE estimate online

(800) 891-7710

License #: 202399

We Know Homeowners Associations Locally owned and operated since 1955 Site walks with your account manager 24-Hour emergency response

Tree Care 24

Landscape Maintenance & Construction

ISSUE TWO 2021 | ECHO journal

Water Management

of repairs (if any), the statute of limitations is tolled/extended (Cal. Civ. Code Section 927).

What to Do if You Suspect Construction Defects? If the issues are minor, homeowners may be able to resolve them with the developer/ builder through their warranty or customer service department. However, if there are more significant/major issues, i.e., typically anything involving water intrusion through the building envelope, window failures, systemic plumbing or electrical problems or site soil settlement, then homeowners should engage competent construction defect counsel for assistance. In addition, homeowners should have an independent forensic consultant evaluate the conditions, which should be coordinated through legal counsel. Many times, the developer/builder will offer to inspect the conditions or even pay for a ‘neutral’ thirdparty evaluation. Homeowners should be wary of allowing the developer/builder to direct or conduct the investigation as they have competing financial interests which do not typically align with the best interests of the homeowners.

J. Spencer Edgett, Esq. is a partner with Chapman & Intrieri, LLP and has represented community associations for more than 15 years, both as general counsel and in pursuing claims against developers and contractors for construction defects. Chapman & Intrieri has offices throughout California, providing practical and cost-effective legal solutions designed to meet our clients’ objectives and exceed their expectations.


Our Values: Service • Professionalism • Integrity • Partnership • Trust

PAS can provide the flexibility and local personal attention that your board is looking for. We believe local is better for our communities. Professional Association Services (PAS) is a locally-owned management company that takes pride in providing proactive professional services for common interest developments in Northern California. Our community managers are credentialed through CAI and CACM and our entire team of Managers and Assistant Managers are enrolled in a continuous educational path in the Association Management industry. Our business is based upon the application of established best practices within the community associations industry. From professional business, governance, bookkeeping and community management services, to leading Internet and software solutions, we offer a complete and unsurpassed solution for our clients. Some of our specialties are: • Tailored solutions for your community

The PAS team does not provide a standard cookie-cutter approach of preformatted policies and recommendations as these very rarely fit an individual community – this is why we examine the facilities, finances, policies, contracts and projects of a community, then partner with each client to determine what works best for that specific community as an individual entity. PAS can provide the flexibility and local personal attention that your board is looking for. We believe local is better for our communities. PAS is a leader in professional management and holds the AAMC accredited management firms designation through Community Associations Institute (CAI), and exists to promote well-managed communities.

• Experienced in facilitating effective board meetings • Modern communication tools, powerful resident web portal, BOD online action item tracking • Electronic records retention • Customer service, walk-throughs, correction letters, follow-up and timely reporting Additional services offered: • Inspector of Elections • Expert Witness • Mediation Services Professional Association Services was founded in 1990 with services focused in the South and East Bay areas. In 2016, PAS acquired a management firm in the Oakmont area of Santa Rosa, expanding our presence into the North Bay with a Santa Rosa branch office.

CORPORATE OFFICE 42612 Christy Street | Fremont, CA 94538 800-371-5598 SANTA ROSA BRANCH 6572 Oakmont Drive, Ste A Santa Rosa, CA 95409 707-539-5810 ECHO journal | ISSUE TWO 2021






New Professional Service Providers Baydaline & Jacobsen LLP is a boutique law firm whose practice focuses exclusively on general counsel representation to community associations. We have over 17 years practicing community association law and are managed by the principal partners Rod A. Baydaline and Jennifer M. Jacobsen. Collectively, the team at Baydaline & Jacobsen has over 40 years of combined experience specializing in the representation of homeowners associations as general corporate counsel. The firm handles a variety of legal issues and challenges facing community associations. As relationship specialists, the firm seeks immediate and long-term effective strategic solutions that are riskaverse and results-oriented. Our attorneys understand the complex issues affecting master associations which include subassociation community boards of directors and the rights and responsibilities of each entity. We represent all types of “common interest developments” including condominium projects, planned developments and stock cooperatives as defined in the Davis-Stirling Common Interest Development Act. As the regional leaders of this specialized and unique area of law, members of this firm serve on the prestigious CACM Legal Steering Committee. The attorneys of Baydaline & Jacobsen are regular contributors to professional publications addressing the concerns of common interest developments. Additionally, our attorneys lecture on common interest developments for the Lorman speaker series and have been invited to speak in various other forums, engagements and seminars throughout California and Nevada. Raihane A. Dalvi, Esq. (415) 677-4219 |

Flanagan Law, APC is a boutique law firm exclusively dedicated to the representation of homeowners associations. We are a full-service HOA law firm, meaning that we provide general counsel, enforcement litigation, assessment collections services, board trainings and everything in between for our HOA clients. It is our firm’s philosophy that legal advice should be as brief as necessary to identify issues and to provide the board and manager with sensible options to help manage the community. Our attorneys are responsive and efficient in providing legal advice. Our firm’s mission is to provide HOA legal communities with top notch legal advice combined with a personal and individualized service. We are dedicated to our client’s best interests and our commitment to provide the highest quality legal services. Our involvement in organizations like Echo is important to us because we believe that board members and homeowners need to be apprised of ever-changing laws and issues that arise with the HOA. This ongoing education will help to better HOA communities throughout the state. Tim Flanagan, Esq. (619) 480-3100 | QUICK & EASY RESOURCE FOR HOA BOARDS & HOMEOWNERS

Check Out Our Professional Service Provider Online Directory! Quick and easy access to more than 200 industry providers who support HOAs and Echo.

Visit and click on Professional Directory 26

ISSUE TWO 2021 | ECHO journal


CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals.

CIT’s Community Association Banking business is a national leader in providing individualized service, customized technology, smart savings solutions and operational efficiency for homeowner associations (HOA) and community association management companies nationwide. The business’ banking solutions include operating and reserve accounts, certificates of deposit, money market accounts, online banking, payments services and HOA loans. For more information on Community Association Banking, see CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company’s commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT’s consumer banking segment includes a national direct bank and regional branch network. Discover more at

6114 La Salle Avenue, 3613 Oakland, CA 94611 (925) 963-9733

ECHO journal | ISSUE TWO 2021




By Beverlee Gordon

DO’S AND DON’TS OF ASSESSMENT COLLECTION Strategies for Securing Debt When the Owner Wants to Cooperate


ISSUE TWO 2021 | ECHO journal


s associations continue to navigate through the do’s and don’ts of assessment collection during this historic time, it is important to review their assessment collection policy and timely follow it. Also, the association must set its payment plan standards and apply them equally to all members regardless of circumstances. The rule of thumb is “what the association does for one, it must do for all.” The legislature continues to propose bills that seek to establish moratoriums that restrict or limit delinquent assessment collections. For example, some may propose no judicial or nonjudicial foreclosure for extended periods, as well as no evictions, garnishments, or bank levies. At the time of this writing, there are no restrictions on recording a notice of delinquent assessment lien against a property; therefore, associations are strongly encouraged to continue recording liens to protect their interests. What should the association do right now?

“DO” REVIEW THE COLLECTION POLICY Successful collection begins with a good collection policy. The policy is the go-to document for collection guidelines and should be based on current laws as well as the association’s covenants, conditions, and restrictions (CC&Rs). Carefully follow the assessment collection policy: • Consistently following the collection policy will eliminate delinquencies from getting out of control; the smaller the debt, the easier it is to collect. Establish a pre-collection timeline: • 30 days – Add a friendly reminder on the billing statement that the account is delinquent. This is a very costeffective way to alert the owner of the delinquency.

• 60 days – Mail one courtesy delinquency notice that gives the owner 10 days to pay in full to avoid the account going into collections. More than one courtesy notice is ineffective, prolongs the collection process, and increases the unsecured debt.

• 70 days – Wait five (5) additional days past the courtesy notice due date. This allows extra time in case a payment is crossing in the mail.

• 75 days – Send the debtor to collections and add the issue to the board meeting agenda. When the board approves the recording of the lien by majority vote, record and approve it in the minutes of the meeting.

“DO” SET PAYMENT PLAN STANDARDS AND FOLLOW THEM Make sure the payment plan standards are reasonable for the owner and that they protect the association membership from having to take on additional financial hardship by recording a lien. Continued on page 30 ECHO journal | ISSUE TWO 2021


The Do’s & Don’ts of Assessment Collection Continued from page 29

• Standards must be in writing for the benefit of all parties and, at a minimum, they should include terms and conditions: start date, payment due date, length of time, monthly payment amount, what happens if the owner defaults, and when a lien will be recorded.

• Establish the length of time, based on the owner’s stated ability to pay; however, reserve the association’s right to reevaluate the plan at any time. The most common payment plans run between 2 and 12 months but can be as long as 24 months, depending on the delinquent balance and the dollar amount of regular assessments that accrue during the payment plan.

• Require a notice of delinquent assessment lien to be recorded to secure the debt against the property on any payment plan that exceeds two (2) months.

California Civil Code not only allows liens to be recorded when a payment plan is necessary, it also allows the association to recover the costs of collection.

Establish payment plan standards: • Standards must be equally followed by all members, regardless of their circumstances.

– Civil Code §5665. Payment Plans. (d) Payment plans shall not impede an association’s ability to record a lien on the owner’s separate interest to secure payment of delinquent assessments. • Late fees will not be added to the account if the payment is received by the due date. If the owner requests that the late fees already assessed to the account be written off, they should not be written off until the end of the payment plan and only if the owner makes all the payments on time. This assures that the write-off is based on the action of the owner’s timely payments throughout the plan. – Civil Code §5665. Payment Plans. (c) … Additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan.

• Interest will be added to the account during the period of the payment plan. If the owner requests that interest not be charged during the plan and/or that the already assessed interest be written off, it should not be written off until the end of the payment plan and only if the owner makes all payments on time. This assures that the write-off is based on the action of the owner’s timely payments throughout the plan.

– Civil Code §5660. Pre-Lien Notice … (b) … and interest, if any.

• Collection charges incurred by the association will be included in the payment plan.

– Civil Code §5660. Pre-Lien Notice … (b) fees and reasonable costs of collection, reasonable attorney’s fees, any late charges, and interest, if any.

• If the payment plan is in default, the association may resume its efforts to collect the delinquent assessments.

– Civil Code §5665. Payment Plans. (e) In the event of a default on any payment plan, the association may resume its efforts to collect the delinquent assessments from the time prior to entering into the payment plan.

“DO” MEET WITH AN OWNER TO DISCUSS A PAYMENT PLAN, IF REQUESTED Plain and simple, the law requires the board to meet with an owner. Meeting with the owner does Continued on page 32


ISSUE TWO 2021 | ECHO journal



TRI COUNTIES BANK Financial Solutions Designed for Property Management Companies Remote Deposit Capture Tri Counties Bank’s Remote Deposit Capture allows you to scan checks and transmit digital images to the bank from your office. Make deposits when it is most convenient for you.

Fraud Protection with Positive Pay Positive Pay provides secure, powerful tools to improve reporting and reduce your risk of check and ACH fraud.

Purchasing Cards Improve purchasing management, reduce costs, prevent fraud and streamline payment processes.

Reserve Cash Solutions Use a Money Market Account to earn a competitive interest rate on funds set aside for future capital expenditures or to earn interest on otherwise idle funds.

Operating Account Solutions Running a homeowners association or a property management company can be demanding. Tri Counties Bank allows you to focus on serving your clients while they focus on helping you with banking. It’s all part of a unique brand of Service With Solutions®, a come-to-you style of relationship banking built to last for years. For more than 45 years, Tri Counties Bank has helped California companies of all sizes grow and thrive with customized financial solutions:

Business Lending Tri Counties Bank offers customized lending solutions including lines of credit, longterm loans, commercial real estate loans, equipment loans and leases and auto loans with local knowledge, service and support.

Trico Treasury Center Tri Counties Bank’s online banking platform includes a user-friendly dashboard summarizing your accounts, along with robust reporting and communication tools plus additional features to enhance your online banking experience.

Manage receivables and payables with an account balance credit to minimize cost of services.

Lockbox Service Collect receivables more quickly and easily with Tri Counties Bank’s Lockbox service. Flexible service allows payments to be processed and credited to your account faster with the imaging technology and fast reporting you expect. Options include electronic data files, check images, paper reports and downloading payment history directly to accounts receivable software.

Switch to better banking. To start, contact: Sandy Rasmussen, CTP (916) 597-3228 Member FDIC

ECHO journal | ISSUE TWO 2021


The Do’s & Don’ts of Assessment Collection Continued from page 30

not mean the association has to deviate from their payment plan standards. It just means the board must meet with the owner and establish the best plan for the owner that is in accordance with the association’s payment plan standards.

– Civil Code §5665. Payment Plan. …a written request to meet with the board to discuss a payment plan for the debt noticed pursuant to §5660. The association shall provide the owners the standards for payment plans, if any exist. – Civil Code §5665. Payment Plan. (b) The board shall meet with the owner in executive session within 45 days of the postmark of the request, if the request is mailed within 15 days of the date of the postmark of the notice, unless there is no regularly scheduled board meeting within that period, in which case the board may designate a committee of one or more directors to meet with the owner.

Now that the do’s are covered, what are the don’ts?

payment plan is needed. An assessment without a lien is an unsecured personal obligation and has no real collection value: it’s worth only pennies. When assessments are secured by a lien, the collection value dramatically increases, making these liens worth dollars. California Civil Code not only allows liens to be recorded when a payment plan is necessary, it also allows the association to recover the costs of collection. Bottom line: Don’t step over dollars to chase pennies – it doesn’t make financial cents! Beverlee Gordon is the Director of Operations and founder of A.S.A.P. Collection Services, a collection service that specializes in California common interest developments, homeowner associations, property owner associations, and commercial & industrial CIDs. A.S.A.P. is the leader in innovative pre-collection payment plan options that are not only cost-effective, but they show owners that their board members and management team care about financial hardship and protecting the membership from additional financial burdens.

INDEX OF JOURNAL ADVERTISERS Click to be taken to the advertisers’ page

AllStar Painting & Maintenance, Inc..............................18 Benjamin Moore Paints......................................................18

“DON’T” REFUSE A PAYMENT PLAN Refusing a payment plan will only cause frustration and turmoil for the board and the owner, which often sparks bigger issues. Instead, establish and accept the payment plan with terms and conditions that reserve the association’s right to reevaluate the plan at any time.


Berding | Weil, LLP..............................................................18 Boland Insurance..................................................................14 Cagwin & Dorward Landscape Contractors.............24 CIT Bank..................................................................................12 Common Interest Management Services..................... 7 Grayson Management......................................................... 5

Deviation causes confusion and inconsistencies in the treatment of delinquencies. Besides, revisiting what has already been decided results in more time and effort for all parties.

Heritage Bank of Commerce............................................ 2


Rebello’s Towing Services, Inc....................................... 22

One of the biggest mistakes a board can make is not recording a lien against a property when a 32

ISSUE TWO 2021 | ECHO journal

IQV Construction & Roofing...........................................24 Levy, Erlanger & Company, LLP.....................................39

White & MacDonald, LLP................................................... 7

Legislation at a Glance 2021 Legislative Session For more information, visit the HOA Advocacy section at the Echo website: 2021 is the first year of the 2021-2022 legislative session. The list below contains new bills introduced this year. This list, and the impact of each bill, will change as authors amend the language in these bills and others. At the time of writing, these bills are winding through the legislative committee process – some will move on, others will die, others will be amended into bills unexpected. Echo is watching. For the most up-to-date information click here to visit the official California legislative website:

2021 Legislation AB-502 - SUPPORT AUTHOR: Davies SUBJECT: Election by Acclamation STATUS: Assembly. Housing and Community Development. In committee process. POSITION: Support – Reasonably streamlines the election process and saves money for HOAs SUMMARY: This bill would allow common interest developments of any size to vote by acclamation. It would delete the requirement that the association include 6,000 or more units. And it would specify that this acclamation procedure applies notwithstanding any contrary provision in the governing documents of the common interest development. AB-1101 - REVIEW AUTHOR: Irwin SUBJECT: Funds Transfers and Insurance STATUS: Assembly. In desk process. Engrossing. POSITION: Review SUMMARY: This bill would require that certain association funds be deposited into a bank, savings association, or credit union with specific insurance. It also prohibits transfers of $10,000 or more without prior written approval from the board. And it requires that the association maintain specified coverage for itself and its managing agent or management company. AB-1410 - OPPOSE AUTHOR: Rodriguez SUBJECT: Restrictions on Rules Enforcement STATUS: Assembly. Housing and Community Development. In committee process.

POSITION: Oppose – This bill is far-reaching, covers

many issues. Not focused enough for good policy.

SUMMARY: This bill would prohibit an association

from restricting a homeowner’s right to rent or lease their separate interest, or any portion thereof. It would also extend a homeowner’s right to use their backyard for personal agriculture to the entire separate interest. It would further require every director and association employee to complete a course in ethics and harassment prevention. And it prohibits any restrictions on discussions critical of the association. It would also prohibit the association from enforcement actions during certain specified conditions. And finally, it would require specific standards for evidence of rules violations and mandate that evidence be made available to the accused. SB-391 - SUPPORT AUTHOR: Min SUBJECT: Meetings and Teleconferencing Procedures During an Emergency STATUS: Senate. Judiciary. In committee process. POSITION: Support – Sensible solution as learned from the COVID-19 pandemic. SUMMARY: This bill would establish alternative teleconferencing procedures for a board meeting or a meeting of the members if the common interest development is in an area affected by a federal, state, or local emergency. SB-392 – SUPPORT AUTHOR: Archuleta SUBJECT: Email Delivery of Documents STATUS: In Senate. Housing. In committee process. POSITION: Support – The requirement to have a website if more than 50 units could be a problem for some. Adds to cost of running the association. SUMMARY: This bill would allow associations to deliver specified documents by email unless a member opts out of email delivery. It requires a member to provide their physical or email address annually, among other requirements. And it requires that associations with at least separate interest to maintain a website, with certain exceptions. It specifies that documents posted to the association website would satisfy the general delivery requirement. Continued on page 34

ECHO journal | ISSUE TWO 2021


Legislation at a Glance Continued from page 33


SB-432 - SUPPORT AUTHOR: Wieckowski SUBJECT: Disqualification of candidates due to term limits in governing documents. STATUS: Senate. Housing. In committee process. POSITION: Support SUMMARY: This bill disqualifies termed-out board members of common interest developments (CIDs) from running for re-election, and requires an individual who is appointed to count and tabulate votes in a CID election to meet specified requirements.


The Statute Book & Legal Directory

AB-919 - OPPOSE AUTHOR: Grayson SUBJECT: Construction defects: actions: statute of limitations. STATUS: Assembly. Judiciary. In committee process. POSITION: Oppose SUMMARY: This bill would shorten the timeframe from 10 years to 5 years in which specified actions against a nonprofit housing corporation, such as a HOA, may be brought for underlying construction projects. AB-611 - WATCH AUTHOR: Quirk-Silva SUBJECT: Confidential addresses – Safe at Home Program exception. STATUS: Assembly. In floor process. Consent. POSITION: Watch SUMMARY: When an association member is a participant in the Safe at Home program – an address confidentiality program that protects victims of violence, assault, stalking, trafficking, or abuse – this bill would require that the association use their designated substitute address, upon the member’s request. Additionally, it would require that the association withhold or redact information that would reveal the name and address of the Safe at Home participant in specified communications.

What Do You Think?

Read more about HOA legislation at and by subscribing to our e-newsletter, Echo Insight. Previous editions are also available. Look for updates and new videos on the Echo YouTube channel and Facebook. Send inquiries to David Zepponi, Echo Executive Director, The Echo Legislative Advisor is HOA resident Robert Chatham. Robert reviews legislation from the perspective of a homeowner and board member.


© 2021 Echo - Executive Council of Homeowners

Education Advocacy Connection

The 2021 Statute Book is now available in an expanded version to include the Davis-Stirling Act and other laws and case citations governing California community associations. This comprehensive reference provides the legal framework for HOA board members, homeowners, and professionals in an easy-to-use coil-bound format. Available to Echo HOA members for download from the online store or as a printed booklet. Order your copies today! MANAGEMENT FIRMS & PROFESSIONAL SERVICE PROVIDERS: A customized, co-branded cover with your logo and contact information is available for management companies and professional service providers. For more information and pricing contact



ISSUE TWO 2021 | ECHO journal


ACCOUNTANTS & CPAS Allen & Cook, Inc. (CPA) 1530 The Alameda, Suite 200 San Jose, CA 95126 (408) 293-3004

CID Consortium, LLC (CPA) Brenda Lynch 919 Reserve Drive Roseville, CA 95678 (888) 786-6000 (707) 484-9729 (Cell) See our Advertorial on page 23

CondoCPA, Inc.

101 Cooper Street, #307 Santa Cruz, CA 95060 (831) 296-0645

HOA Accounting Services 3100 Clayton Road Concord, CA 94519 (888) 854-9444

Homeowner Association Services (CPA) P.O. Box 1999 Mammoth Lakes, CA 93546 (760) 934-8589

Lara Marcello CPA & Consultant

303 Twin Dolphin Drive, Suite 600 Redwood City, CA 94065 (650) 632-4211

Levy, Erlanger & Company LLP (CPA) 290 King Street, Suite 12 San Francisco, CA 94107 (415) 981-9350

Management Cost Controls, Inc. 1057 1st Street Gilroy, CA 95020 (408) 848-5953

McClintock Accountancy Corp.

P. O. Box 6179 Tahoe City, CA 96145 (916) 583-6994

Takemoto & Company CPA 303 Dolphin Drive, #600 Redwood City, CA 94065 (650) 585-2200

Van Sloten & Laranang CPAs, PC 608 Main Street, Suite A Pleasanton, CA 94566 (510) 484-5801

Young, Craig & Co., LLP, CPAs 2570 W. El Camino Real, Suite 150 Mountain View, CA 94040 (650) 209-1800

CONCRETE PRODUCTS & SERVICES Marin Sonoma Concrete Floor Coatings

1370 Trancas Street, #170 Napa Valley, CA 94558 (707) 708-1776

CONSULTANTS Association Consulting Group 12090 N. Thornydale Road, Suite 110 PMB #141 Marana, AZ 85658 (925) 895-2484


AWT Construction Group, Inc.

5751 Buckingham Parkway Culver City, CA 90230 (494) 456-9276

CLEANING SERVICES & BUILDING MAINTENANCE ProTec Building Services 10180 Willow Creek Road San Diego, CA 92131 (858) 569-1080

The G.B. Group, Inc.,

8921 Murray Avenue Gilroy, CA 95020 (408) 848-8118

IQV Construction & Roofing 877 Chestnut Street San Jose, CA 95110 (408) 638-5520

Recon360, LLC

90 Almaden Blvd., Suite 600 San Jose, CA 95113 (408) 444-9303 683 McAllister Street San Francisco, CA 94102 (415) 749-2700

James Kint 77 Solano Square, Suite 300 Benicia, CA 94510 (707) 746-7500

Schryer/Thompson Construction, Inc.

2143 Arnold Industrial Way, Suite 10 Concord, CA 94520 (925) 566-8911

Axis Construction

Dawn Alonzo 2566 Barrington Court Hayward, CA 94545 (510) 732-6111 See our Advertorial on page 13

Skuba Construction Services, Inc.

Construction Services, Inc. P.O. Box 54190 San Jose, CA 95154 (408) 210-6344

840 Williams Street San Leandro, CA 94577 (888) 278-8200

Saarman Construction, Ltd.


EmpireWorks Reconstruction and Painting

5356 Clayton Road, Suite 125 Concord, CA 94521 (925) 689-5900

Velocity Construction Services, Inc. 4123 Pestana Place Fremont, CA 94538 510-657-6432

ECHO journal | ISSUE TWO 2021





Brook Construction Management

1740 West Katella Avenue, Suite L Orange, CA 92867 (619) 920-4049

6475 Camden Avenue, Suite 202 San Jose, CA 95120 (408) 398-6421 cassidy@brookcm.comButner

C.L. Sigler & Associates, Inc. 521 Charcot Avenue, Suite 203 San Jose, CA 95131 (408) 922-0262

CM Squared, Inc. Construction Management 39899 Balentine Drive, Suite 200 Newark, CA 94560 (800) 262-4047

Richard Avelar & Associates 318 Harrison Street, Suite 103 Oakland, CA 94607 (510) 893-5501

Solid Solutions Construction Services, Inc. 1008 Lakewood Avenue Modesto, CA 95355 (209) 602-3240

Total Construction Management, Inc.

305 Vineyard Town Center, Suite 275 Morgan Hill, CA 95037 (831) 708-2916

Unlimited Property Services, Inc.

2250 Central Avenue, Suite A Richmond, CA 94801 (510) 715-0653

B2R Consulting Group


Heritage Bank of Commerce 150 Almaden Blvd. San Jose, CA 95113 (844) 489-0999

HomeRun IQ, Inc.

77 Van Ness Avenue, Suite 101-1204 San Francisco, CA 94102 (844) 474-4747

Pacific Western Bank Professional Association Services, Inc. Pat Gromer, CMCA 42612 Christy Street Fremont, CA 94538 (707) 539-5810, Ext. 352 See our Advertorial on page 25


30 Union Avenue, #200 Campbell, CA 95008 (408) 583-0323

Sayler, Inc.

611 South B Street San Mateo, CA 94401 (650) 348-0100


CIT Bank

Roxanne Jolicoeur, VP NoCal 4950 S. 48th Street Phoenix, AZ 85040 (925) 963-9733 Cell See our Advertorial on page 27

Sheila Adams, VP 895 Dove Street, #425 Newport Beach, CA 92660 (760) 432-1335

Tri Counties Bank

Sandy Rasmussen 3700 Douglas Blvd. Roseville, CA 95661 (916) 597-3228 See our Advertorial on page 31

FIRE SAFETY Statcomm, Inc.

939 San Rafael Avenue, Suite C Mountain View, CA 94043 (650) 988-9508

FIREPLACE SERVICE & MAINTENANCE Dryer Duct Vent and Fireplace Company 1538 San Joaquin Avenue San Jose, CA 95118 (408) 265-1010

INSURANCE SERVICES Allanson Insurance Agency 9500 Soquel Drive Aptos, CA 95003 (831) 685-0101


ISSUE TWO 2021 | ECHO journal

Bay Area Insurance Agency, Inc. 3 Lagoon Drive, #260 Redwood City, CA 94065 (650) 654-9750

Boland Insurance, Inc.

1202 Grant Avenue, Suite E Novato, CA 94945 (415) 898-4370

Cline Agency Insurance Brokers 12400 Wilshire Blvd., #200 Los Angeles, CA 90025 (800) 966-9566

Daniel W. Davis Insurance Solutions LLC 6472 Camden Avenue, #112 San Jose, CA 95120 (408) 600-3100

David Stompe Insurance Agency

100 Galli Drive, Suite 5 Novato, CA 94949 (415) 878-1394

Kevin Davis Insurance Services

725 S. Figueroa Street, 19th Floor Los Angeles, CA 90017 (213) 833-6191

Motus Earthquake Insurance Services 116 W. 23rd Street New York, NY 10011 (212) 851-8433

Socher Insurance Agency, Inc.

1350 Old Bayshore Hwy., Suite 630 Burlingame, CA 94010 (650) 312-9300


Spina Insurance Agency

530A Alameda Del Prado, Suite A Novato, CA 94949 (415) 382-9714

State Farm Insurance 564 Park Street Alameda, CA 94501 (510) 521-1222

LANDSCAPE ENHANCEMENT & DESIGN Landesign Construction & Maintenance, Inc. P.O. Box 2326 Santa Rosa, CA 95405 (707) 578-2657

LANDSCAPE SERVICE & MAINTENANCE Aragon Commercial Landscaping, Inc.

2305 S. Vasco Road Livermore, CA 94550 (408) 998-0600

Alpine Landscapes

8595 Murray Avenue Gilroy, CA 95020 (408) 846-9511

Botanicon, Inc.

P.O. Box 371382 San Diego, CA 92137 (619) 513-0033

Cagwin & Dorward Landscape Contractors P.O. Box 1600 Novato, CA 94948 (800) 891-7710

Del Conte’s Landscaping, Inc. 41900 Boscell Road Fremont, CA 94538 (510) 353-6030

Enviro View, Inc.

2701 Goodrick Avenue Richmond, CA 94801 (510) 672-3333

JPA Landscape & Construction, Inc.

P.O. Box 1292 Pleasanton, CA 94566 (925) 960-9602

K&D Landscaping, Inc. 62-C Hangar Way Watsonville, CA 95076 (831) 728-4018

Park West Landscape Management 836 Jury Court, Suite 10 San Jose, CA 95112 (408) 228-2710

True North Landscapes, Inc. P.O. Box 2823 Santa Rosa, CA 95405 (707) 978-2111

MAILBOXES BrightView Landscape Services

Kelly Hadlock 7039 Commerce Circle, Suite B Pleasanton, CA 94588 (925) 348-4178 See our Advertorial on page 15

Cascade Building, Inc.

PO Box 586 Aptos, CA 95001 (408) 733-9479




Allstar Painting & Maintenance, Inc.

50 Castilian Drive Goleta, CA 93117 (888) 700-8299

10638 Hillside Lane Carmel, CA 93923 (831) 277-7497

HOA Alchemy, LLC

Axis Construction

2751 Chocolate Street Pleasanton, CA 94588 (925) 520-5003


Dawn Alonzo 2566 Barrington Court Hayward, CA 94545 (510) 732-6111 See our Advertorial on page 13

CA Council of the Blind

Ekim Painting

2143 Hurley Way, #250 Sacramento, CA 95825 (916) 441-2100

10200 Imperial Avenue Cupertino, CA 95014 (408) 996-3897

San Francisco-Marin Lawyer Referral & Info Services 301 Battery Street, Third Floor San Francisco, CA 94111-3203 (415) 989-1600

Benjamin Moore & Co

8350 Pardee Drive Oakland, CA 94561 (510) 491-1525

Kelly-Moore Paint Co., Inc.

The Ultimate Coatings Company, LLC 2801-B Vassar Street Reno, NV 89502 (415) 726-0551

2485 Autumnvale Drive, Suite F San Jose, CA 95131 (408) 942-1177

MB Jessee Painting


616 South B Street San Mateo, CA 94401-4121 (650) 339-8523

Flores Painting & Drywall

1552 Beach Street, Suite G Oakland, CA 94608 (510) 851-0050

R. E. Broocker Co., Inc. 1771 Woodside Road Redwood City, CA 94061 (650) 592-5898

Signature Painting & Construction, Inc.

1559 Third Avenue Walnut Creek, CA 94597 (925) 948-0300

Urban Bros. Painting, Inc. 155 E. Campbell Avenue Campbell, CA 95008 (415) 485-1130

ECHO journal | ISSUE TWO 2021





Varsity Painting

1720 Smith Avenue San Jose, CA 95112 (408) 971-4455

1620 Tice Valley Blvd. Walnut Creek, CA 94595 (925) 937-0434

PAVING AND ASPHALT TARC Construction, Inc. 3230 Darby Common, Suite A Fremont, CA 94539 (408) 224-2154

All Seasons Roofing Services

Fidelity Roof Company, Inc. 1075 40th Street Oakland, CA 94608 (510) 547-6330

IKO Roofing


1058 Ashford Lane Lincoln, CA 95648 (916) 995-3948

Presto Pest Control, Inc.

Owens Corning

117 Bernal Road, Suite 339 San Jose, CA 95119 (408) 966-8600

PLUMBING AquaTek Plumbing, Inc. P.O. Box 23271 San Jose, CA 95153 (408) 295-7767

813 Sunset Drive Livermore, CA 94551 (925) 200-7105

Town and Country Roofing & Solar

2155 Elkins Way, Suite H Brentwood, CA 94513 (925) 634-7663


2471 Old Middlefield Way Mountain View, CA 94043 (650) 949-2435

Division 7 Reps/Duro-Last Roofing 755 Baywood Drive, Suite 200 Petaluma, CA 94954 (707) 630-3076

SECURITY CONSULTING RESTORATION & CLEAN-UP Authentic Restoration & Waterproofing, Inc. 25005 Viking Street Hayward, CA 94545 (510) 732-5400


Allied Universal Security Services 2025 Gateway Place, Suite 263 San Jose, CA 95110 (408) 437-1110

ISSUE TWO 2021 | ECHO journal


PO Box 1381 Fremont, CA 94538 (650) 690-5168

TECH SOFTWARE Electronic Innovations, Inc.

21 Parr Blvd. Richmond, CA 94801 (510) 233-2795

TOWING & PARKING SERVICES Morris and Sons Towing 390 E. Gish Road San Jose, CA 95112 (408) 995-6900

Rebello’s Towing Services, Inc. 696 Kings Row San Jose, CA 95112 (408) 292-8300


3490 Buskirk Avenue Pleasant Hill, CA 94523 (866) 815-2525


2337 American Avenue Hayward, CA 94545 (888) 969-8733

Monster Tree Service North Bay 1777 W. Watmaugh Road Sonoma, CA 95476 (707) 484-6339

Monster Tree Services

5205 Prospect Road, #135 & #269 San Jose, CA 95129 (408) 837-7053

Skyline Tree Surgeons, Inc. 2305 S. Vasco Road Livermore, CA 94550 (408) 998-0600




Which enables our professional staff of including 6 CPAs and 6 CPA candidates (growing to almost 20 professionals during “tax season” from January to April) to ...




2 100%

Almost of our clients are homeowners associations, planned unit developments, condominiums, condominium conversions, COOPs, tenancies in common and timeshare projects ...


Since 1977 — more than

40 years’ experience ...


Working with approximately management companies in Northern California out of a total of 300 serving community associations ...



Serving more than community associations (3 to 6,700 units) in Northern California out of a total of approximately 17,000 ...

wide range of services

Provide a to community associations including …

• Financial statements • Annual budget reports (pro • Inspector of election and income tax returns forma budget + assessment/ services — audits, reviews and reserve funding summary) • Board and member compilations • Pro forma operating budgets meeting presentations • Comparative 2-year and PUPM assessment • Litigation support financial statements— computations services (developer more meaningful to readers • Assessment and reserve budget adequacy, • Reserve funding plans, funding disclosure summaries fraud investigation, owner complaints, etc.) or updates

Including some

unique publications & services

• 2020 Condominium Greenbook™, the 290-page financial reference book for Association treasurers • 2020 Community Association Financial Survey of over 1,500 associations

• A Management Fee Survey of more than 1,900 associations • ...and numerous other surveys of reserve study practices, percent funded, etc.


As well as more than 40 years of important business contacts to help associations connect with the


290 King Street, Suite 12, San Francisco, CA 94107 (415) 981-9350 ECHO journal | ISSUE TWO 2021


PRSRT STD US POSTAGE PAID PERMIT NO. 271 85719 5669 Snell Avenue, #249 San Jose, CA 95123-3328

May 6, 2021 | 1:00 pm – 2:30 pm


Identifying harassment in your HOA and what can be done about it

TICKETS Homeowner or Board Member: FREE Professional Service Providers & Managers: $20

In today’s world, people throw around the word harassment at the drop of a hat. But what does the word really mean? What are the legal implications of actions, and how do you know when you are being harassed to the point that may impose legal liability? The presenters will discuss various all-too-common scenarios based on real-life situations and engage the audience in a discussion of what harassment is and what options are available to address harassment both in and out of the courtroom.

Register at