Fall/Winter 2023

THE

BEACON Fall/Winter 2023

les, c i t r a e v mati r o f n i r o on ef n d o i i s t n a i m k r Loo info & s t n e v 023 e 2 r u o m fro tising r e v d a photos hip & s r o s n o p 2024 s ies! t i n u t r o opp 1

In this Issue

EXECUTIVE BOARD President

Presidents Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Welcome New Members . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5 Deeley Insurance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Breakfast Series - “Strange but true...” . . . . . . . . . . . . . . . . . . . . 6 Delmarva Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-9 Sponsorship Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . .9 D.H. Bader Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Delmarva Hidden Treasures . . . . . . . . . . . . . . . . . . . . . . . . . 11 Our Favorite Amenities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Annual Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Annual Symposium & Expo . . . . . . . . . . . . . . . . . . . . . . . . 14-16 Mitigating the Instant Gratification Craze . . . . . . . . . . . . . . . . . 17 Diamond Sponsor Showcase: RoofPRO . . . . . . . . . . . . . . . . . . . 18 Solar Panels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-21 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Interested in Joining a Committee? . . . . . . . . . . . . . . . . . . . . . 21 A Night on Broadway . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-23 Premises Liability - What Associations Need to Know . . . . . . . . . . . 24 Diamond Sponsor Showcase: Sahouri Insurance . . . . . . . . . . . . . 25 How AI Can Be Applied to the Community Association Industry? . . . 26-27 Beacon Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Platinum Sponsor Showcase: Nagle & Zaller, P.C. . . . . . . . . . . . . . 28 How to Comply with Maryland’s Reserve Study Requirements . . . 29-30 Diamond Sponsor Showcase: Pinnacle . . . . . . . . . . . . . . . . . . . 31 Challenges of Homelessness in the Winter . . . . . . . . . . . . . . 32-33 2024 Professional Development Program . . . . . . . . . . . . . . . . . 33 NCB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Platinum Sponsor Showcase: Unlimited Restoration, Inc. . . . . . . . . 34 Beware of HB98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Platinum Sponsor Showcase: WPM Real Estate . . . . . . . . . . . . . . 36 2024 Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

President-Elect Vice-President Secretary Treasurer

DIRECTORS

Hillary Collins, Esq, Rees Broome, PC Cynthia McKoin, Potomac Ridge Condominium, Inc. B.K. Swartwood, CMCA, AMS, PCAM, Montego Bay Civic Association Gary Saylor, Atlantic Maintenance Group

COMMITTEE CHAIRS Social

DelMarva

Education

EXPO

Golf

Legislative

Chesapeake Region Chapter of CAI Valerie Lykins, Executive Director Angela Marsh, Marketing and Events Manager Christina Killian, Office Administrator PO Box 6838, Columbia, MD 21045 Office Line: 410-348-1534 Membership Line: 410-505-8746 Office Email: contact@caimdches.org Membership Email: membership@caimdches.org www.caimdches.org

This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles. CAI does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Permission to reprint articles in Beacon may be granted only after receiving prior written approval from the CED of CRC/CAI.

Rebecca Clemson-Petrik, CMCA, AMS, PCAM FirstService Residential James Anderson, PE Becht Engineering BT, Inc Gail Windisch, CMCA, AMS, PCAM, Tidewater Property Management, Inc. AAMC Noni Roan, CMCA, Pinnacle Financial Partners Vicki Eaton, CMCA, AMS, LSM, PCAM Community Association Services, Inc., AAMC

Membership

Magazine

Communication

Dani Bressler, Chair Toepfer Construction Co., Inc. Carrie Ehart, Vice-Chair Raine & Son, LLC Chad Toms, Chair WHITEFORD Lisa Meck, CMCA, AMS, Vice-Chair Carl M. Freeman Companies Christa Brady, AMS, PCAM, Chair USI Insurance Services Michelle Jones, CMCA, AMS, PCAM, Vice-Chair General Manager, Lake Linganore Association Ellen Throop, Chair Davis, Agnor, Rapaport & Skalny, LLC Joanne Frallicciardi, CMCA, AMS, Vice-Chair Tidewater Property Management, Inc. AAMC Chase Hudson, Chair Sahouri Insurance T.J. Socks, Vice-Chair Becht Engineering BT Cynthia Hitt Kent, Chair, Chair Law Office of Cynthia Hitt Kent, LLC Karen Fooks, CMCA, AMS, Vice-Chair Community Management Corporation/Associa Jennifer Melson, CMCA, AMS, Chair Premier Property Management Beth Bencivenni, Vice-Chair RestoreCore Michelle Baldry, Chair Reserve Advisors Don Plank, PCAM, Vice-Chair EJF Real Estate Services Alicia Menefee, CMCA, AMS, Chair FirstService Residential Vince Scarfo, CMCA, Vice-Chair Clear: Restoration and PreDisaster Consulting

Hello Chapter Members and Future Members,

As this year comes to an end, I wanted to say thank you one last time to all of our members, committee members, sponsors and our outstanding staff. Without everyone, this Chapter would not have had the opportunity for a successful 2023.

This year our Chapter encountered change, loss, and success, and I am honored and grateful to have served as your Chapter President alongside 10 other amazing Board members through it all. This year I’ve had the opportunity to watch our Chapter continue to grow, experience new events and venues, and partner with both our neighboring Chapters to the North and South, expanding awareness and opportunities for our membership. We truly embraced a “No Limits” mentality and (I believe) have learned a lot along the way.

We will end this year with our Annual Meeting and final 2023 Breakfast Seminar on December 13th. I encourage everyone to prioritize this opportunity to network and/or reconnect with other Chapter members before the year ends. Even if you haven’t attended an event this year, prioritize your membership and take this opportunity to potentially meet a new Business Partner or learn something from the Seminar.

This year concludes my third year on the Board of Directors. I am so very appreciative for this opportunity. From working with other board members, to working with committee chairs and members, along with meeting so many members, I have learned so much more then I could have imagined.

Whatever capacity I find myself serving next year I will always value this time with everyone, thank you all!

Yours truly,

Rebecca Clemson-Petrik Rebecca Clemson-Petrik CMCA, AMS, PCAM Chesapeake Region Chapter President Regional Director, FirstService Residential

“The key is not to prioritize what’s on your schedule, but to schedule your priorities”

~Stephen Covey

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Welcome new members

Ms. Martha Alexander Carroll’s Creek Community Association

Kenneth Dunaway Belle Terre Homeowners Association

Ms. Kanisha Laffitte Parkside Condominiums

Mr. Thomas Allen

Mr. Barry Dunkin Canary Creek Homeowner Association

Mr. William Langan Fallston Commons Homeowners Association, Inc.

Ms. Arlene Feleccia Canary Creek Homeowner Association

Ms. Margaret Levatino Shearwater Condominium Association

Robert Feuerstein Belle Terre Homeowners Association

Mr. John Lyons Katchmark Construction

Mr. Michael Filipiak Richardson Mews HOA

Paul Magrath Belle Terre Homeowners Association

Ms. Debbie Fratella Canary Creek Homeowner Association

Mrs. Joni Mahon The Villages of Five Points

Mr. Robert Garcia BuildingLink

Mr. Nick Manning Swan Point At lake Elkhorn Condominium, Inc.

Ms. Diana Gartland

Dianne Marshall Spring Mill Condominium

Ms. Paula Amaker Swan Point At lake Elkhorn Condominium, Inc. Ms. Akua Asa-Awuku Sewells Orchard Community Association Ms. Michelle Bachman Mr. Charles Bagnell Sand Dollar Village Homeowners Association Joan Barrow Belle Terre Homeowners Association Ms. Jessica Benton Metropolis Condominium Management John Berish Ms. Carmela Beverly The Greens II at Leisure World Mrs. Catherine Bloom Sewells Orchard Community Association Mr. Mark Bradley Association Reserves Ms. Meredith Bruce Cross Fox Condominium Mr. John Byrne The Villages of Five Points Ms. Jane Casper The Council of Unit Owners of Kingsgate Condominium, Inc. Ms. Joyce Covert Mr. Stanley Crocker The Greens II at Leisure World Ms. Winsome Daley Parkside Condominiums Mr. Albert Dannes The Villages of Five Points Mrs. Dalhia DeCamp The Villages of Five Points Ms. Donna DeCerchio Canary Creek Homeowner Association 4

Ms. Annie Geiermann Swan Point At lake Elkhorn Condominium, Inc. Spencer Gilason CertaPro Painters Jesse Giugliano Belle Terre Homeowners Association Mr. Bill Gordon Carroll’s Creek Community Association Mr. Harry Hallock The Villages of Five Points Mrs. Diana Halslip Fallston Commons Homeowners Association, Inc. Dr. Johnette Hartnett Canary Creek Homeowner Association Kathleen Hutzell Complete Management Services, Inc. Ms. Naomi Jonas Professional Community Management Mr. Matt Kennedy The Villages of Five Points Ms. Donna Kenny Richardson Mews HOA Mr. Mark King Swan Point At lake Elkhorn Condominium, Inc.

Ms. Erin McClure Cross Fox Condominium Ms. Barbara McKay Fallston Commons Homeowners Association, Inc. Ms. Henrietta Milward Cross Fox Condominium Ms. Margo Nolan Mallard Landing Council of Unit Owners Bill Olsen Belle Terre Homeowners Association Ms. Karen Pascoe Professional Community Management Mr. Eric Perez Parkside Condominiums Mr. Carl Peters Fallston Commons Homeowners Association, Inc. Ms. Alison Pfannenstein Cross Fox Condominium Mr. Dennis Plouff Kendall Overlook Condominium Mr. Thomas Pollock Wallace H. Campbell & Company Ms. Amanda Purol Community Association Services, Inc. THE BEACON

Welcome new members cont.

Mr. Tom Reeder Mallard Landing Council of Unit Owners

Ms. Mary Simmens Cross Fox Condominium

Ms. Laura Violand Swan Point At lake Elkhorn Condominium, Inc.

Mr. Rob Renner The Villages of Five Points

Shomari Slade Community Management Corporation

Denise Waicker Thornhill Properties, Inc.

Jersyann Richards Thornhill Properties, Inc.

Mr. Jeffrey Smith

Ms. Nadia Wasserman Swan Point At lake Elkhorn Condominium, Inc.

Ms. Debra Ritchis Kendall Overlook Condominium Tracey Roe Mr. Mike Roth The Villages of Five Points Mrs. Lea Ruhl Vacasa Community Association Management Mr. William Ruiz Dana Scott Potomac Valley Management Company, LLC

Ms. Martha Spero Jeremy Starrett

Mr. Eric Wells Cross Fox Condominium

Mr. Ian Sydell Canary Creek Homeowner Association

Ms. Bobbi Williams The Elmont Condominium

Ms. Linda Sydell Canary Creek Homeowner Association

Ms. Christy Wilson WPM Real Estate Management/Snowden Overlook Community Association

Morgan Travis VN Management, Inc. Ms. Isabel Van den berg Shearwater Condominium Association

Stanislaw Wolk Shearwater Condominium Association Andrea Wyant FirstService Residential

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Visit deeleyinsurance.com. We’ll audit your existing insurance policies against the governing documents of the Association, help to develop a claims protocol, and create a thoughtfully-tailored program to protect your home and property, so you can Be Sure.

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& 2023 CHAPTER ANNUAL MEETING

“Strange but true...”

Join us as we share real life stories of some of the strangest, yet true, events

Prize for ugliest holiday sweater and best decorated sponsor table will be given!

2024 Chapter Board of Directors will be announced wards Chapter a out! en iv g will be

COORDINATOR: Angela Vazquez, CMCA, AMS, PCAM,

that happen in community associations.

Laughter is guaranteed, along with A RN E

S

REGISTER HERE:

C

EDIT

unique situations!

CE

R

sound advice for handling these most

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Community Association Site Manager, Treover, A Condominium, Inc. Moderators: Brian Fellner, Esq., Fellner Legal Services Elisabeth Kirk, TRC Engineering

DECEMBER 13, 2023 8:30 AM - 11:30 AM TEN OAKS BALLROOM - 5000 SIGNAL BELL LN

IN PERSON

CLARKSVILLE, MD 21029

Building Better Communities caimdches.com #CAICRC 6

THE BEACON

TO OUR DELMARVA EXHIBITORS, SPONSORS, COMMITTEE MEMBERS AND SPEAKERS FOR PUTTING ON A GREAT EXPO ON FRIDAY, NOVEMBER 10TH WHAT IS BREAKING YOUR BUDGET ON THE EASTERN SHORE? Many Thanks to our Delmarva Exhibitors!

20/20 Cleaning Service Inc Allsafe Elevators AmeriTree Experts Ark Systems, Inc. Atlantic Maintenance Group Becht Engineering BT Construction System Group, Inc. Contracting Specialists, Inc. -DC Corecom Commercial Painting Cowie Law Group Criterium-Harbor Engineers Deeley Insurance Group Delaware Elevator DMA Reserves, Inc Duradek MidAtlantic ETC Envirotech Environmental Services First Citizens Bank FirstService Residential Hann & Hann Construction Services Hawkins Electric Kris Konstruction Roofing Professionals Lakesource LLC Legum & Norman MillerDodson Associates, Inc. NFP Insurance Property Diagnostics, Inc. Renovia Reserve Advisors Residential Realty Group, Inc. Ring RoofPro SBC Outdoor Services Standard Pipe Services, LLC Sullivan’s Landscaping & Maintenance, Inc. Sunwest Bank Tecta America East The Witmer Group Tidewater Property Management Trestle Alliance Tributaries, LLC USI Insurance Services Vote HOA Now FA LL / W INTE R 20 23 Whiteford

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Many Thanks to our Delmarva Committee!

Chad Toms, Chair, WHITEFORD Lisa Meck, Co-Chair, Carl M. Freeman Companies, Vice Chair Gary Saylor, Atlantic Maintenance Group, Board Liaison Igor Conev, OC Mann Properties Melissa Esham, Deeley Insurance Stephan Kaganzev, FirstService Residential Tara Laing, Sentry Management Christine McCallister, WHITEFORD Jennifer Melson, Premier Property Management Stefanie Minemier, Community Association Services Michele Nadeau, Legum & Norman Noni Roan, Pinnacle Financial Partners B.K. Swartwood, Forestar Ellen Throop, Davis, Agnor, Rapaport & Skalny Trish Walsh, NFP Property & Casualty Services Gail Windisch, Tidewater Property Management

Many Thanks to our Delmarva Expo Speakers & Moderators General Session Speakers: Todd Fritchman, Envirotech Jeremy Walbert, Becker Morgan Roland Holland, GMB Christa Brady, USI Insurance Services Breakout Session Speakers: MD/DE Legislative update – Chad Toms, WHITEFORD Comprehensive Environmental Management Services and Planning Needs for the HOA Governed Subdivision – Todd Fritchman, Envirotech A panel discussion on the effects of inflation on your budget - Speakers: Noni Roan, Pinnacle Financial Partners, Gary Saylor, Atlantic Maintenance Group, Roland Holland, GMB & Jeremy Walbert, Becker Morgan Communicating the unprecedented increases in your budget – Speakers: Tara Laing, CMCA, AMS, PCAM, Sentry Management, Michele Nadeau, CMCA, AMS, Legum & Norman, Igor Conev, CMCA, AMS, PCAM, CIRMS, Mann Properties

Many Thanks to our Sponsors!

Atlantic Maintenance Group Kris Konstruction Roofing Professionals MillerDodson Associates Trestle Alliance

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THE BEACON

DELMARVA

Check out our website and click here for our

2024 Sponsorship Opportunities!

WWW.CAIMDCHES.ORG/SPONSORSHIPS

2024 2024

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2024

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THE BEACON

DELMARVA HIDDEN TREASURES ELK NECK STATE PARK, MARYLAND

In the 1970’s, National Geographic declared Maryland to be “America in Miniature,” because the small state contains such a wide variety of natural wonders and outdoor experiences. Short of a vast, arid desert—the Long-Term parking lots at BWI don’t count—a visitor to the Free State can enjoy just about every terrain and environment found in the nation. By that same logic, there is a case to be made that Elk Neck State Park is “Maryland in Miniature.”

Spread across 2,370 acres in Cecil County, Elk Neck stands on a peninsula surrounded by the Chesapeake Bay to the west and the Elk River to the east. The Park was formed from land bequeathed to the State of Maryland in 1936

by Dr. William Louis Abbott, a renowned ornithologist, explorer, and field naturalist. For a man who spent his life circling the globe, it’s easy to see why a nature-lover like Dr. Abbott chose to make his retirement home along the shores of the Chesapeake Bay. Among the lush woods and rolling meadows of the park, and along the sandy shores, a wide bouquet of wildlife and natural beauty can be found.

Bald eagles and osprey patrol the skies overhead, rockfish, crabs and oysters inhabit the waters, and foxes, deer, racoons, badgers and more wander the forests.

Nearly equidistant between Baltimore and Wilmington, Elk Neck can be reached easily via the nearby towns of Elkton and North East. Within its confines, you can enjoy all that Maryland can offer. Deep woods, damp marshlands, soaring white clay cliffs, sandy coastlines, rocky outcroppings. Are you a hiker who craves the solitude of a trail? Elk Neck has over 12 miles of hiking paths, some winding so deep into the wilderness you’ll forget you haven’t even left the I-95 corridor. Do you need to feel the sand between your toes as you breathe in salty air? Then head for the large beach along the Bay or take to the Elk River in a canoe or kayak. Do you smile when you think of the nighttime sounds of the woods serenading you to

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sleep? 250 camping sites await. Does that last sentence fill you with dread? Then rent one of more than a dozen cozy cabins!

Finally, for history buffs or anyone who loves a beautiful view, there is the historic Turkey Point Light Station.

Standing sentinel on the southern tip of the peninsula at a height of over 130 ft above the Bay, Turkey Point is the 3rd highest light off the water in the entire Chesapeake Bay. From its construction in 1833 to today, the lighthouse has only gone “dark” for two years—between 2000 and 2002.

The beacon originally used 11 oil lamps and mirrored reflectors to warn mariners away from the cliffs and rocks below, before being electrified in 1943. Over its history, Turkey Point had more women lighthouse keepers than any other lighthouse on the Bay. The final keeper, Fannie Mae Salter, retired in 1948. The work of a lighthouse keeper was lonely and difficult. The prisms had to be cleaned daily, the fuel carried up the tower to the light, the wicks trimmed and maintained, and the lamps lit and extinguished. There were no days off, no holidays, no breaks for bad weather.

The women—and men—who serviced the beacon at Turkey Point were truly special individuals. Today, one doesn’t need such devotion to duty to enjoy the beautiful vista from the top of the lighthouse. It is open to the public on weekends from May through October.

So, the next time you feel the urge to take in all—or just a few—of the natural wonders of “America In Miniature,” you don’t need to make a trek from Ocean City to Deep Creek Lake. You just need to visit Elk Neck State Park…and enjoy “Maryland In Miniature.”

Written by: Jedd Narsavage, LEED AP Vice President of Design & Development, GreenSweep LLC www.greensweepllc.com

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OUTDOOR SPACES

CLUBHOUSES FITNESS

Our Favorite Amenities GOLF Pool IN OUR COMMUNITIES

Many of our communities have amenities that add value and enjoyment to our homes. To better understand which amenities our chapter members value most and why, we asked them to provide feedback. 21 respondents provided valuable information that many others may consider when making upgrades in their own communities.

Of the 21 respondents: • 67% are homeowners or board members • 38% are managers • 5% are Business Partners Except for one community located in Delaware, the rest are in Maryland.

Community type: • 13 are Homeowners Associations • 6 are condominiums

be noted when considering these for other communities.

All these amenities require regular maintenance, which costs money. In some cases, major projects in the maintenance of these amenities can be unforeseen and require large, unbudgeted expenditures. Ultimately though, these potential challenges are outweighed by the benefits they provide to residents. Based on our survey, amenities that bring residents together and encourage them to get out and about are the most valued amenities within the community.

Written by: Dani Bressler, CAS, EBP, Toepfer Construction Co., Inc dbressler@toepferco.com & Elisabeth Kirk, TRC Engineering, EBP ekirk@trc-engineering.com

• 2 are 55+ Active Communities Summary of the most popular amenities: • 7 votes for Clubhouses • 4 votes for pools (indoor and outdoor) • 4 votes for outdoor spaces (views of nature, pocket parks, garden) • 2 votes for golf • 2 votes for fitness (fitness room and tennis courts) The community clubhouse is a gathering place for residents. Of all the respondents that chose the clubhouse as their favorite amenity, a majority noted that gathering with their fellow residents is very important to their sense of community. This is where social events are held and where residents can relax with their neighbors.

The additional amenities within the clubhouse were also noted as the reason for choosing the clubhouse as their favorite amenity.

Respondents noted that their community parks, outdoor spaces, golf courses and gardens are important to their sense of community as these are also gathering places for their fellow residents to meet up and socialize with each other.

While having amenities onsite is a huge benefit to residents, there are some downsides that should always

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THE BEACON

Many Thanks

TO OUR ANNUAL SPONSORS! S!

2023 DIAMOND SPONSORS Atlantic Maintenance Group Becht Engineering BT, Inc. ETC, Inc Hann & Hann Construction Services Kris Konstruction Roofing Professionals Mid Atlantic Asphalt, Inc. MillerDodson Associates, Inc. Minkoff Company North Arundel Contracting, Inc. Pinnacle Financial Partners

2023 PLATINUM SPONSORS Davis, Agnor, Rapaport & Skalny EJF Real Estate Services FirstService Residential Nagle & Zaller, P.C. Palmer Brothers Painting & General Contracting SI Restoration

Rees Broome, PC

Simmerer Insurance LLC

RoofPRO, LLC

Unlimited Restoration, Inc.

Sahouri Insurance

WHITEFORD

The Falcon Group Engineers, Architects & Reserve Specialists

WPM Real Estate Management

Tidewater Property Management, Inc., AAMC

2023 Gold Sponsors Connie Phillips Insurance Condominium Venture, Inc. Pacific Premier Bank Community Association Banking Truist Association Services

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Many Thanks to our Annual Symposium & Expo Exhibitors, Sponsors, Committee Members and Speakers for putting on a great Expo on SECURITY 360: Safer & Smarter in Today’s Communities Many Thanks to our Exhibitors!

Access Granted Systems All Recreation Alliance Association Bank Allsafe Elevator Inspections American Pest APC Hospitality, LLC AquaSafe Pool Management Architectural Support Group, LLC Artistic Landscaping Inc Associa CMC Atlantic Maintenance Group Bank United Becht Engineering Bopat Electric Co., Inc. Building Envelope Consultants and Scientists BYLT Restoration CAI Washington Metro Chapter CertaPro Painters City Clean Inc. Clear: Restoration and PreDisaster Consulting Community Association Underwriters of America Connie Phillips Insurance Contracting Specialists DC, LLC Cooper Roofing CoreCom Commercial Painting DMA Reserves DRD Pool Management, Inc. Ecotek Soft Wash EJF Real Estate Services ETC Falcon Engineering Fellner Legal Services First Century Bank First Citizens Bank FirstService Residential GAF Roofing Material Manufacturer Hann & Hann Construction Services Knott Mechanical Kris Konstruction Roofing Professionals Lakesource LLC Level Green Landscaping LS Systems Metro Engineering Services Mid-Atlantic Asphalt 14 MillerDodson Associates

MONDAY, OCT 2ND AT MARYLAND LIVE! CASINO!

Many Thanks to our Exhibitors!

Minkoff Company Mr. Clean Power Washing Multicorp Commercial Cleaning Services Nagle & Zaller Nania Energy Advisors National Cooperative Bank Nexterior Contracting North Arundel Contracting Oliveri & Larsen Pacific Western Bank Palmer Brothers Painting & General Contracting Paul Davis Restoration Pinnacle Financial Partners Planned Companies Playground Patrol, LLC. Precision Concrete Cutting of DE & MD Prestige Tree Experts Pro Painting & Contracting PTG Enterprises ,Inc. Rees Broome Reserve Studies Residential Realty Group RestoreCore RoofPro Sahouri Insurance Sheldon & Sons SI Restoration SOLitude Lake Management Standard Pipe Services Structural Rehabilitation Group, LLC Sunwest Bank T. Cooper, Inc. Tevis Energy The Witmer Group Thomasville Restoration Tidewater Property Management Toepfer Construction Co, Inc. Trestle Alliance Tri State Restorations USI Insurance Services Vantaca Vote HOA Now Walker Consultants WPM Real Estate Management THE BEACON

Many Thanks to our Expo Committee!

Ellen Throop, Davis, Agnor, Rapaport & Skalny, Chair Joanne Frallicciardi, CMCA, AMS, Tidewater Property Management, Vice-Chair Vicki Eaton, CMCA, AMS, PCAM, LSM CAS, Inc., Board Liaison Ursula Burgess, CCAL, Rees Broome, PC Rebecca Clemson-Petrik, CMCA, AMS, PCAM, FirstService Residential Matt Mericle, CMCA, AMS, Condominium Venture, Inc., AAMC Michael Romano, Community Association Underwriters of America, Inc. Gary Saylor, Atlantic Maintenance Group Christy Stevens, CMCA, AMS, PCAM, Wallace H. Campbell & Co., Inc. B.K. Swartwood, CMCA, AMS, PCAM, Montego Bay Civic Association

Many Thanks to our Expo Speakers & Moderators

Keynote Presentation: “An overall view into personal safety within your community” Colin O’Brien, Director of Operations, T. Cooper, Inc. Officer Jason Goorevitz, Baltimore County Police Department Stephen Simpkins, Executive Director, Planned Companies Breakout Sessions: “Use conflict resolution to build a harmonious community.”

“Maximize your community’s security with cameras and computers.” Speakers - Chris Riismandel, Owner, Epoch, Inc. & David Dick, Sr. Vice President Security Division / Partner, Glessner Technologies “Use conflict resolution to build a harmonious community.” Speakers - Jill R. Eisner, Esq., Attorney and a level 5 Certified Mediator & Karen Wilson, J.D., Level 5 certified mediator, trained conflict coach, and Program Manager of the Mediation Program at the Conflict Resolution Center of Baltimore County “Insurance and legal resources to protect your community.” Speakers – Doug Henken, Vice President of Marketing, Community Association Underwriters of America & Ursula Burgess, Shareholder, Rees Broome, PC

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Many Thanks to our Sponsors Grocery Tote Atlantic Maintenance Group Beverage Cup Thomasville Restoration, Inc. Wi-Fi Condominium Venture, Inc. Onsite Handout Pro Painting & Contracting Bopat Electric Community Association Management Professionals Residential Realty Group, Inc. National Cooperative Bank Passport Atlantic Maintenance Group Architectural Support Group, LLC Community Association Underwriters of America Minkoff Company Oliveri & Larsen Residential Realty Group, Inc. RestoreCore Trestle Alliance Vote HOA Now Wrap Party Community Association Underwriters of America Clear: Restoration and PreDisaster Consulting SI Restoration Education Pinnacle Financial Partners First Citizens Bank Jumbotron Associa® - CMC, SCS, and Legum & Norman Davis, Agnor, Rapaport & Skalny Maryland Premier Exteriors, Inc. Residential Realty Group Exhibitor Prize Drawing Atlantic Maintenance Group Clear: Restoration and PreDisaster Consulting MillerDodson Associates

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THE BEACON

Mitigating the

Instant Gratification We’ve all heard it. “I have called and emailed multiple times, and no one has gotten back to me.” Of course, upon investigation, the customer called at 5:38 pm Friday and again at 8:07 am Monday morning and sent three emails in between. The desire for instant gratification seems to be here to stay. How does your organization manage it? What expectations do you set? How do you, the service provider, cope? Here’s what some of our Chapter Members had to say.

Dawn Lewis, Community Manager with Property Management People, Inc. strives to “check emails three to four times a day for no more than 10 to 15 minutes between reading and answering. If it will take time to respond to the question, I initially reply ‘thank you for contacting me, your questions will need some research, I will reply with an answer within the next 24 to 48 hours’. It doesn’t always make them happy, but they know they are not being ignored.”

Her fellow teammate, Kyle Thomas, Senior Portfolio Manager, reiterated the 48-hour turnaround time.

“While we are experiencing several issues with customer service, I have discussed with our staff here, and not a lot of “instant gratification”, mostly limited to isolated cases. In these cases, most homeowners are quick to call back immediately and/or repeatedly until they reach the desired outcome and or department in our company.

These isolated cases seem to be affected from outside life stressors, and not directly related to the issue they are contacting us about. We do express that due to the nature of our industry: significant amount of daily calls/ emails, frequent appointments outside of the office and internally, and the seasonal demands of our clients, we strive to return all correspondence within two (2) business days from when it was received.”

Others aim for quicker response times while finding a balance to maintain sanity. “Even before COVID, we have always had a 24-hour business day response time regarding emails”, states Angela Vazques, On-Site Manager for Treover, A Condominium, Inc. “Our office hours permit us to close early on Fridays and completely closed on weekends. We try to explain to our residents that we are available during normal business hours and will always be available for them during that time, but our FA LL / W INTE R 20 23

management team works hard during those hours. We want them to be rewarded with a break by leaving early on Fridays. We explain that it allows them to refresh and have some personal time during the week.”

No matter the response time, the demand can be extremely overwhelming at times. Sami Satouri, President of Quest Insurance, shared key strategies. “The sense of urgency of all stakeholders seeking immediate response to all their queries makes it impossible to respond to all requests and can result in burnout and higher anxiety.

Managing expectations and prioritizing tasks are key tools to keeping ahead and remaining sane.”

Samantha Baker, Village Manager with Lake Linganore Association, added, “I try to remind myself that anything someone wants from me is not life or death - thankfully I can say that in this field of work. I set reasonable goals for each day. If I don’t reach those goals, I may need to stay late that day or come in early the next. If things are overwhelming, I communicate that with my team so they are aware. Internal office communication is key in working together to combat residents who demand immediate attention that is not available. When I take time off, I sometimes will add an additional day to my out-of-office, so I have a day back in the office to catch up without residents being aware that I am back. This has been huge for my work-life balance. When residents want to meet, I ask them to set up something for the following week when possible. This gives me time to coordinate my schedule and workload, but also makes them feel heard by having face to face time with me. It typically resolves the issue more amicably too when meeting in person.”

However you and your organization choose to mitigate this never ending demand for instant gratification, the keys to success and sanity seem to be: setting reasonable expectations, prioritizing tasks, maintaining a healthy work-life balance, and great internal communication. With those, at the end of the day, you can walk away knowing you provided the best service possible.

Written by: Michelle Jones, CMCA®, AMS®, PCAM®, LSM® General Manager, Lake Linganore Association, Inc. mjones@lakelinganore.org

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NAVIGATING ENVIRONMENTALLY FRIENDLY TECHNOLOGIES:

Solar Panel Our world today, more than at any other time in history, relies on a consistent and dependable flow of energy to survive. This high demand for energy, a rise in electricity costs, and a renewed focus on sustainable development has led to a search for alternative, renewable, and efficient forms of energy. Among the newer forms of renewable energy, solar panels stand out from the rest in producing clean energy efficiently while being easy to implement. According to the Solar Energy Industries Association (SEIA), the solar panel industry experienced an average annual growth rate of 24% since 2010. The rapid growth rate of solar panels is due in part to their utility and ease of installation but also due to strong federal incentives, such as the solar investment tax credit.

The United States has put a particular focus on expanding its concentrated solar power. Today, the U.S. has a solar capacity of 149 gigawatts, which is enough to power 26 million homes. Moreover, research has shown that a solar panel has a lifespan of 25 years, with a degradation rate of 0.5% per year. In fact, many solar panels built in the 1980s are still functional today, particularly if coupled with EV charging stations. On pages 8&9 of our Summer/ Fall issue here (https://issuu.com/stephen.mcconoughey/ docs/beacon_newsletter_summerfall23_final) you can find an in depth article on EV charging stations.

Additionally, homes powered by solar panels are in higher demand than their non-renewable counterparts.

According to a 2021 Zillow housing trends report, 67% of homebuyers considered energy efficiency to be an important factor for purchasing their next home, willing to pay up to $15,000 more for a solar-powered property.

The growing solar capacity in the United States, federal tax incentives, long-term outlook, and favorable market trends have made the adoption of solar panels a very attractive and popular modern investment.

and condo associations -- are considering installing solar panels at their properties. As an association, it is necessary to identify the steps required to successfully conclude the board approval process for the implementation of this technology. Factors that need to be considered include:

As demand for efficient and clean energy grows, many multi-unit residential buildings -- such as apartment

As the due diligence phase for undertaking such a project commences, the first element for the board to consider

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Due Diligence Phase • Feasibility • Cost benefit analysis • Budget planning and financing • Purchase or lease • Permitting and construction schedule • Application process • Blueprints • Certificate of Insurance • Insurance considerations and impact on replacement cost and premium • Vetting of contractors • Certificate of Insurance from contractors • Board deliberation and approval Undertaking such a project naturally requires the approval of the association’s board. Therefore, keeping the board informed at all times is of utmost importance. Identifying what is outlined in the governing documents for the association with respect to adopting new technology needs to be reviewed and possibly amended. Discussions with the board about building and fire codes, legal considerations, and local, state, and federal regulations must be considered. Moreover, the board and association management must investigate how the costs will be passed along to the community.

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is the cost-benefit analysis. Solar panels may be a great way to help improve building efficiency and comply with the new energy regulations. However, the project’s cost may not be affordable and may cause financial hardship.

A solution to this issue could be to finance the project through a banking institution or lease the equipment from a third party. The third party would own the system and lease it back to the association. The lease option could be a very convenient and effective way of creating a more efficient electrical system and complying with energy regulations, particularly if this is coupled with an EV project.

It may be prudent for the association to form a subcommittee to oversee the project and work towards securing final board approval. That subcommittee may then want to hire a consultant who can survey the marketplace and provide information with respect to procurement successes, challenges, and errors experienced by others who have traveled down this road.

Additionally, the subcommittee would be well served to explore the following: • Verify the existing structure can safely hold panel(s) – structural engineer.

• Verify that the existing roof can sustain the lifespan of the solar panel (25 years) • Verify if electrical systems are compatible with solar panel • Conduct weather-related risk assessment • Confirm compliance with the fire and engineering code It must be considered that most rooftops on high-rise buildings have complicated roof systems that are riddled with equipment. One option that buildings across the country are utilizing is a solar panel canopy system. Solar panels on canopy systems sit on steel structures off the ground. In most cases, high rise buildings can utilize a standard install combined with a canopy system where needed. Solar canopy systems are more expensive than a traditional install but a great way to build a larger robust solar panel system. This is a good idea particularly for associations looking at the feasibility of installing solar canopy systems in parking lots. Large scale associations often have large open parking lots that could be utilized for a canopy solar install.

As the process progresses, the time will come to hire a general contractor to install the panel(s). It is essential that the association seek a well-credentialed contractor (with adequate insurance coverage and bonded) who can demonstrate experience in solar panel construction, electricity, and roofing. When verifying the insurance

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coverage for the contractor, it is important that the contractor carries “products-completed operation” coverage in their general liability insurance which protects against product or service liability claims after the project completion. It is also advisable to secure a surety bond if the project cost exceeds $500,000. This will provide assurance to the association that the project will be delivered according to the contract. This is particularly true in the event of a financial institution’s involvement in the financing. Moreover, the fire department should be part of the planning and design process in order to aid in pre-fire planning strategies and prevent injuries due to electrical shock or electrocution. In all cases, solar panel design should include provisions for access, safe disconnection, and adequate labeling that informs emergency responders of the presence of a solar panel.

From an insurance perspective, it may be easy to assume that the coverage for the solar panel(s) will be automatically added to the condominium’s master policy, but that is not the case. It is important that the property manager consults in advance with their insurance agent to review the solar panel project before proceeding with the approval. Questions such as age and type of roof, replacement cost value of solar panels, capacity, name of the installation contractor, and preventive maintenance service program may need to be verified and shared with the carrier. A supplemental application (Fill - Free fillable Application - Solar Panel Supplemental36-9179 PDF form) must be completed and submitted to the carrier to cover the solar panel(s) properly. Solar panel coverage may or may not be granted depending on insurance carriers. If it is covered, the insurance coverage will be increased to reflect the solar panel value, resulting in a premium increase.

Some of the considerations impacting the risk may include the lack of access to the rooftop in the event of an electric fire and the fact that a solar panel runs continually as long as the sun is available, thus, potentially making it difficult to shut down in the event of a fire. Therefore, special precautions must be taken to shut down the system in case of fire or emergency. Proper insurance coverage can help to adequately cover this risk, as providing training and putting in risk management measures are important in maintaining the longevity of the equipment, building, and association’s owners and tenants.

Once the project has been completed, it is important to update the Reserve Study to reflect all the upgrades undertaken and account for the new equipment.

Moreover, a new maintenance regiment should be put in place to ensure that the solar panels perform at peak performance and ensure the longevity of the equipment.

Once this has been complete, the association should

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then update the board with a summary of all costs incurred as well as savings earned by the association through the installation of the solar panels. One of the hidden benefits could be compliance with the energy requirements that different jurisdictions are putting in place and the possible tax benefits that can be provided (not all associations qualify).

Tax Considerations The biggest tax benefit of the solar panel is the Federal Investment Tax Credit (ITC) which provides a total reduction of 30% of the gross cost of the solar project (consult a tax professional). However, condo associations are not eligible for ITC. The condo owners are considered the legal owners of the roof and the panel so they can file individually based on their share of the cost of the system.

Sources: Home Energy Efficiency, Incentive sand Projects - Department of Environmental Protection, Montgomery County, MD (montgomerycountymd.gov) https://www.dcseu.com/commercial-and-multifamily?g ad=1&gclid=EAIaIQobChMIvdmvrpHz_wIVC6bICh38w6GEAAYASAAEgKgJPD_BwE https://www.energy.virginia.gov/energy-efficiency/InflationReduction-Act.shtml How Long Do Solar Panels Last | Solar Panel Lifespan | Sunrun Do Solar Panels Increase Home Value? (2023 Guide) (architecturaldigest.com) Solar Industry Research Data | SEIA Solar Insurance | Travelers Written by: Sami Satouri, RHU®, ChHC®, President, Quest Insurance Brian Yim, Account Executive – Property & Casualty Division, Quest Insurance Jimmy Suissa, CMCA®, AMS®, PQCE Property Manager

Interested in

joining a committee?

Keep an eye out for information on our virtual Charting Your Course Event on Thursday, January 11th to kick off the year!

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We had a great time at our 2023 Annual Social: Congratulations to our Costume Contest Winners!

Ladies - BK Swartwood Gentlemen - Sam LeBlanc Couple - Noni Roan, CMCA & Don Plank, EJF Real Estate Services Group - Atlantic Maintenance Group team

Many Thanks to our Sponsors!

Capitol Insurance Restorations, LLC EJF Real Estate Services Engineering and Technical Consultants, Inc Mid-Atlantic Asphalt MillerDodson Associates Minkoff Company, Inc. North Arundel Contracting, Inc. Pinnacle Financial Partners Pro Painting & Contracting RoofPRO SBC Outdoor Services Toepfer Construction Company, Inc.

Many Thanks to our Social Committee!

Dani Bressler, Chair, Toepfer Construction Co. Carrie Ehart, Vice-Chair, Raine & Son Rebecca Clemson-Petrik, Board Liaison, FirstService Residential Joe Esposito, Hann & Hann Construction Services Mika Hicks, Hawkins Electric Elisabeth Kirk, TRC Engineering Eddie Ramos, Atlantic Maintenance Group Gary Saylor, Atlantic Maintenance Group Gail Windisch, Tidewater Property Management

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PREMISES LIABILITY WHAT ASSOCIATIONS NEED TO KNOW Slip and fall in the clubhouse? Theft at the gym? What responsibilities do community associations have for accidents and injuries?

To answer this question, we look to premises liability law.

In general, property owners owe a duty of care to people on their property. Community associations that own or control common areas are included in this obligation.

However, the level of care depends on the type of person who is on the property. The range extends from someone who is not supposed to be on the property at all, like a trespasser, all the way to someone who has a vested right to be on the property, like a homeowner. Then there are people who are in between, like licensees, more commonly referred to as “social guests,” who are at the property for convenience, or invitees, such as contractors and vendors who are invited to the property for a special reason or purpose, like a business arrangement.

Under Maryland law, associations owe a duty of ordinary care to invitees, one on the property for a business reason, to keep the property safe for the invitee. For licensees or social guests, the association owes a duty to exercise reasonable care to warn the guest of dangerous conditions that are known, but not easily discoverable, i.e., “Caution: Wet Floors.” To a trespasser, someone on the property without permission, the association owes no duty except to refrain from willfully or wantonly injuring the trespasser. Associations should err on exercising its duty of care for the highest protected person, which is why it is important to maintain premises in a good condition and take measures to warn against hazards through posting signage, erecting barriers to protect against dangerous features, and having adequate lighting.

In addition to these “tort” or “common law” duties, community associations also have contractual and statutory duties to maintain premises as well. If a community association fails to maintain the common area premises pursuant to its obligations under the governing documents (usually an obligation to maintain common areas in good order and condition), then an action can be brought in the form of a breach of the governing documents by an owner.

The association can also be in violation of statutory duties, like Section 11-108.1 of the Maryland Condominium Act 24

pertaining to responsibility for maintenance, repair, and replacement of the common elements, for example.

Associations should work with their insurance brokers to make sure they have adequate commercial general liability insurance (CGL) in place in the event of a personal injury claim on the association premises, like a slip and fall, with coverage of at least $1,000,000 per occurrence and $2,000,000 aggregate. Please note that your general liability policy will provide a defense attorney for the association, if coverage is triggered. Associations will see on their certificates of insurance a line item for “medical expenses coverage” (also referred to as “med pay” or “medical payments” coverage), but most people do not know what that entails and are confused when they see how low that amount is compared to other coverages (in the range of $5,000 or $10,000). “Medical expense” is specific coverage that allows insurers to pay out medical expenses for small, nuisance-style personal injury claims without having to establish fault. It is a way to resolve minor claims easily. Otherwise, the claim has to go through the lengthier adjuster process or possible litigation to establish liability.

Generally, associations do not have an obligation to protect persons from criminal acts of third parties, unless such acts were foreseeable, such as if there was a history of crime at the premises or advance indication of a possible threat of specific harm. Courts will look at how much control is exerted by the association over the common area in question as well. In at least one prominent court case out of Florida, the court also looked at the fact that the association in that instance advertised and marketed that the community had safety features in place, like gates, guards, and protocols for checking visitor IDs, thus setting an expectation that the premises were “safe.”

Issues of duties of care and establishing fault are complicated. Boards and managers are always advised to consult with their legal counsel and insurance broker as soon as possible when faced with a potential liability claim.

Written by: Leslie Brown Shareholder, Rees Broome, PC lbrown@reesbroome.com THE BEACON

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HOW AI CAN BE APPLIED TO THE COMMUNITY ASSOCIATION INDUSTRY

In early 2023, ChatGPT caught everyone’s attention due to its impressive ability to simulate human-like text conversations. AI, short for artificial intelligence, refers to computer systems that mimic human intelligence, and ChatGPT is a unique AI model celebrated for its lifelike text chat abilities.

As time passed, it became clear that ChatGPT, while good for general writing, couldn’t completely meet community managers’ specific requirements.

This is where an Applied AI Assistant, made specifically for the community association industry, truly shines. Let’s explore how an AI Assistant can automate homeowner inquiries, address labor shortages, boost profitability, and attract new clients for management companies.

AI RESPONDS TO HOMEOWNERS’ INQUIRIES 24/7 First of all, an effective AI Assistant can integrate with any HOA software to respond to homeowners’ inquiries 24/7, offloading managers’ burden, and reducing their burnout.

It pulls real-time data to answer questions like account balance, service requests, amenity bookings, etc.

Based on a survey from the Foundation for Community Association Research, 55% of community managers cite homeowners’ unreasonable demands as the top cause of job dissatisfaction. 47% of managers’ time is spent on communication tasks according to our tech report for 2023.

By automating homeowner responses, community managers can spend more time focusing on strategic tasks and enjoying more work-life balance. Happier community managers are less likely to leave the industry, easing the labor shortage issue in the long run.

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AI TOOLS BOOST MANAGERS’ EFFICIENCY Managers can also utilize more AI add-on features to boost productivity and efficiency. ChatGPT notice writer, Text Blaster, Budget Creator, AI maintenance, and Meeting Summarizer are some of the most popular tools that managers use to streamline their daily workflow.

For example, an AI Maintenance tool helps streamline HOA maintenance by identifying and securing the best quotes from vendors. This automated process eliminates the need for manual vendor searches, saving managers valuable time. It empowers management companies to provide better service to their communities while maximizing cost savings and operational effectiveness.

AI SAVES MONEY FOR MANAGEMENT COMPANIES In the meantime, the AI Assistant also improves the manager-to-admin ratio, leading to cost savings by reducing the need to hire administrative assistants.

Based on our survey of 1,500 properties across multiple populous states(California, Washington, Oregon, Arizona, Colorado, Nevada, and Texas), an AI Assistant can lead to a 50% increase in Admin Assistant capacity. It equates to $25k in labor savings per person as the average salary of administrative assistants is between $40k and $50k.

AI INCREASES THE PROFITABILITY Moreover, the AI Assistant can increase the profitability of management companies effectively. According to the reports of ACAM - CEO conference, 25% of CEOs report that ancillary fees consist of more than 40% of their income.

THE BEACON

By incorporating new technologies like an AI assistant into the ancillary services, CEOs can naturally increase the fees to boost profitability and increase homeowners’ satisfaction.

They should not be afraid of updating the agreement about ancillary fees. Customers don’t leave because of fees, but because of service quality.

AI INCREASES HOMEOWNERS’ SATISFACTION Based on our survey, 93% of homeowners want to be able to text with their management team. With an AI Assistant, homeowners can receive instant and accurate responses via text messages, voice, email, and web chat.

An AI Assistant can handle various homeowners’ requests including account balances, upcoming fees, service requests, community rules, CC&Rs, ARCs, amenity bookings, complaints, violations, etc. By responding to those inquiries automatically, AI can reduce residents’ wait time and increase their satisfaction.

Many management companies leverage the white-label option to enhance their branding. By marketing the AI assistant as their own and integrating it into their existing communication, they can increase brand recognition, enhance their value proposition, attract new clients, and drive business growth.

In recent years, the community association industry has encountered various challenges, including labor shortages, escalating interest rates, and inflation.

Nevertheless, the implementation of AI solutions holds the potential to convert these challenges into opportunities.

Written by: Grace Zhu STAN AI Digital Marketing Specialist 647-544-2900

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How To Comply With Maryland’s Reserve Study Requirements And Why Following the aftermath of the collapse of a 12-story, 40-year-old condominium building in Surfside, Florida in 2021, legislators across the country began passing legislation to address safety concerns amid reports that the condominium association lacked the reserve funds necessary to complete repairs that could have prevented the building’s collapse.

Maryland is no exception and in 2022 passed House Bill 107 to amend the statutes governing condominiums, cooperatives and homeowners associations to require community associations throughout the state to conduct reserve studies and fund reserves (previously only required in Prince George’s and Montgomery counties).

House Bill 107 requires a community association that has had a reserved study conducted on or after October 1, 2018, must have the reserve study updated within five years, and every five years thereafter. A community association that has not had a reserve study on or after October 1, 2018, must have undertaken one by October 1, 2023, and that study must also be updated every five years thereafter. Existing statutory provisions specify the time by which reserve studies must be conducted in Montgomery and Prince George’s counties. House Bill 107 does not apply to a homeowners association that has responsibility under its declaration for maintaining and repairing common areas for which the initial purchase and installation costs for such components total less than $10,000. The reserves provided for in a community association’s annual budget must be in the amount recommended in the most recent reserve study. However, while House Bill 107 requires community associations to follow the plan for funding reserves it does not require the associations to also follow their reserve study’s expenditure plan. See examples below:

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House Bill 107 requires community associations to adhere to their reserve study’s funding plan by including the recommended annual reserve contribution in their budget, as shown above, but there is no requirement to follow the reserve study’s expenditure plan. While the reserve funding and expenditure plans do go hand in hand, with the funding plan allowing for the timely following of the expenditure plan, there is no legal requirement to conduct reserve expenditure projects in accordance with the reserve study. As a result, some associations may decide to defer or accelerate maintenance and repair projects.

While there is no legal requirement to follow reserve expenditure projects in accordance with the reserve study, it is highly recommended that associations do so.

Reserve specialists have knowledge and understanding of component life cycles, and deferring maintenance or replacement projects can pose a risk to component integrity and community safety. Additionally, failing to perform repair and replacement projects at the times recommended in the reserve study can impact an association’s ability to follow the reserve funding plan as required. When projects are deferred, associations often back themselves into a retroactive corner. Not only can components experience additional wear and tear, damage, or even failure, but associations will no longer be able to rely on estimated project costs in the expenditure plan. This in turn affects the association’s ability to accurately bid on the projects, and combined with potential higher market prices for materials and labor, can pose serious financial burdens with limited mitigation options. Other possible consequences of deferring capital repair and replacement projects include potential injuries, insurance claims or litigation that could result from failing components, which leads to additional financial burdens from legal costs or increases in insurance premiums.

Not following the reserve funding and expenditure recommendations in a reserve study could also result in the unavailability of financing to purchase or refinance a 30

unit in a condominium or cooperative. Legislators were not the only ones who sought to address safety concerns following the Surfside building collapse. The Federal Home Loan Mortgage Association (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”) revised their lending guidelines for condominiums and cooperatives to be eligible for Fannie Mae or Freddie Mac backed mortgage loans. Fannie Mae and Freddie Mac are government sponsored entities within the secondary mortgage market and buy and guarantee mortgage loans made by lenders to purchasers of homes, including condominium and cooperative units. The homes must meet certain eligibility guidelines. Part of a lender’s eligibility review is to determine if the condominium or cooperative has inadequate reserve funding, significant deferred maintenance, or any evidence of the existence of an unsafe condition, in which case the condominium or cooperative is ineligible for lending approval. Fannie Mae and Freddie Mac have considerable influence over the mortgage lending market, making it very difficult if not impossible to obtain a mortgage for a unit in a condominium or cooperative that does not meet their loan eligibility requirements.

If your association is having a hard time adhering to funding requirements in accordance with your reserve study, we encourage you to contact your reserve study provider to discuss what options are available. In many cases, a Level II Reserve Study (Reserve Study Update with Site Visit) will be recommended as a way to “reset” the study. If your study is recent, your provider may be willing to explore the merits of a report revision or a reserve study update without a site visit.

Written By: Michelle Baldry, Regional Executive Director, PE, PRA, RS, Reserve Advisors, mbaldry@reserveadvisors.com & Judyann Lee, Esq., McMillan Metro, PC, jlee@mcmillanmetro.com

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Plan, Prepare, Protect: Be ready in the event of a disaster When tragedy strikes, we sometimes think, “What would I have done?” or “How can I make sure that doesn’t happen to me?” The Champlain Tower South condominium collapse in Surfside Beach, Fla., in June has given property owners, managers and community associations across the country reason to contemplate risk assessments, remediation and preparedness plans.

What lessons can we take as business partners, board members, and communities? As we move forward and try to make sense of this tragedy, risk reduction and damage prevention are primary objectives. Key steps include: •

Uncovering and assessing maintenance issues, both known and unknown. An overall inspection of common grounds, structures, and shared-use property is a great first step. Don’t defer critical maintenance; the short term savings are not worth the risk.

•

Prioritizing the projects. With the inspection report in hand, you can begin to prioritize, schedule, and get bids for critical and necessary work, scheduling less-urgent remediation and repairs sequentially over a longer period of time.

•

Meeting with a financial advisor. Once the timeline and estimates are reviewed and approved, a meeting with a trusted financial advisor is in order. They can help you map out a financial plan for accomplishing the goal of reducing risk and avoiding damage or disaster. With your timeline and estimates in hand, your financial partner can advise on funding options to keep your projects moving forward toward completion.

•

Considering a reserve study. If the inspection doesn’t uncover any maintenance or remediation issues that’s fantastic news. However, consider a reserve study to ensure your HOA or condo has the funds to protect the community for the foreseeable future.

Pinnacle has served as a valued partner to property management companies and community associations for 20 years.

Our Community Association Program is specifically designed to help clients navigate the numerous challenges they face in today’s fast-paced world.

We offer a competitive loan program specifically tailored to the community association client, which is a unique type of borrower. Pinnacle structures loans to best serve communities and its residents, using a policy designed specifically for this purpose. As a result, our responses are timely, and we partner with communities throughout the life of the loan.

We can help you make a plan to prepare and protect your community for years to come.

Pinnacle Bank is an Equal Housing Lender, and Member FDIC. Loans may be subject to credit approval; reach out to your local Pinnacle office for more questions.

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Challenges of Homelessness in the Winter The issue of homelessness has been on the rise due to economic challenges and escalating housing costs, leading to a growing population of individuals without stable shelter.

According to the United States Interagency Council on Homelessness, in 2022 Maryland had an estimated 6,360 homeless people and Delaware had around 1,165. Individuals face a myriad of challenges daily, including finding a place to sleep and securing their next meal. During warmer months, many individuals experiencing homelessness sleep on the streets or utilize available shelters in their communities. However, as winter approaches and temperatures plummet, the population experiencing homelessness face additional and often life-threatening challenges. So, what happens when the temperatures drop, and the homeless population needs additional support?

Winter Hazards Winter brings with it dangerously low temperatures that can pose severe health risks to those experiencing homelessness. When it becomes unsafe for the homeless to remain outside, they can try to seek refuge at a local shelter. However, often these shelters are full. In some cities, contingencies exist to deal with the increased need for shelter space. Unfortunately, many cities do not have such contingencies. Without access to indoor shelter, the homeless run the risk of illnesses such as frostbite and hypothermia.

Health Disparities People experiencing homelessness already face significant health disparities, with research showing they are three to six times more likely to become ill than their housed counterparts (National Health Care for the Homeless Council 2008). A critical contributing factor to these health disparities is the lack of access to much needed safe shelters. When homeless individuals are forced to endure

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extreme weather conditions on the streets, they are highly vulnerable to the elements. They often lack the necessary clothing, hats, gloves, etc., that keep people warm and dry.

In addition, they often lack the necessary nutrition to keep them healthy.

The National Coalition for the Homeless (NCH) has outlined a comprehensive approach to help localities plan to keep their homeless populations safe from illness during the winter months. The NCH outlined three critical elements to an effective regional or local approach in the prevention of injury and hypothermia: knowledge, networking and temporary seasonal shelter and outreach.

1. Knowledge – timely dissemination of information is critical to keeping the homeless safe. It is important for localities to have a pre-approved plan for the gathering and dissemination of lifesaving information to all critical stakeholders, including those at risk on the streets. This information should include guidelines on how to stay safe, where to find resources, and how to recognize signs of cold-related illnesses such as hypothermia.

Furthermore, the public should be educated on how they can contribute to helping the homeless during these challenging times.

2. Networking – those responsible for the dissemination of information must make sure that information is clear and reaches those that most need it. It should contain the resources available to the homeless, how to recognize the signs of cold-related illness such as hypothermia and should also make clear to the public what they can do to help. Building strong connections among service providers, community organizations, and local authorities can help streamline the response to winter-related challenges.

3. Temporary Seasonal Shelter and Outreach – the plan should focus on preventing illness and injury.

The planned response should be timely and ensure prevention is the primary goal.

THE BEACON

Homelessness during the winter months presents unique challenges that require a coordinated and compassionate response from local communities. Making sure these individuals have access to knowledge, networking opportunities, and temporary seasonal shelter and outreach can make a significant difference in preventing illness and injury. By addressing these critical elements, communities can work together to protect individuals experiencing homelessness and mitigate the risks during the winter.

Sources: https://nationalhomeless.org/winter-homelessness/ https://worldpopulationreview.com/state-rankings/homelesspopulation-by-state https://nationalhomeless.org/wp-content/uploads/2014/02/Winter_ weather_report.pdf Written by: Dani Bressler, CAS, EBP, Toepfer Construction Co., Inc dbressler@toepferco.com & Elisabeth Kirk, TRC Engineering, EBP ekirk@trc-engineering.com

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BEWARE OF HB98

If You Live In A Detached Condominium Unit You May Not Have Adequate Insurance Coverage For Your Unit After October 1, 2023 If you live in a detached condominium unit starting on October 1, 2023, you may not have adequate insurance coverage for your unit. That’s the date that Maryland House Bill 98 took effect and amended the Maryland Condominium Act’s insurance requirements for detached residential condominium units. Prior to the amendment the Maryland Condominium Act (the “Act”) required that condominium associations maintain property insurance against physical loss of the common elements and units, not including any betterments or improvements installed by a unit owner other than the developer. As of October 1st, for any condominium containing detached residential units, the association must maintain property insurance on the common elements and the owner of the detached unit “shall carry homeowners insurance coverage on the entirety of the unit.”

Some insurance carriers started advising unit owners of detached units that the insurance policy for the unit had to be obtained in a separate homeowners insurance policy issued directly to the unit owner. Meanwhile, the Attorney General of Maryland, Office of Counsel to the General Assembly, opined that the required coverage for a detached unit can be satisfied through the condominium association’s master policy that includes the coverage. Similarly, the Maryland Insurance Administration (“MIA”) issued its guidance in Bulletin 23-15, stating that nothing in the amendment to the Act prevents a condominium association from voluntarily providing coverage to the owner of a detached unit through a policy obtained by the association, and nothing in the Act requires the unit owner to identify the association as an additional insured on the unit owner’s policy. If a condominium association elects to purchase a policy that provides the mandated coverage for a detached unit, the unit owner is not also required to purchase a separate policy for the unit (please note that the unit owner will still need to purchase an HO6 “walls-in” policy that covers the betterments and improvements in the unit).

While the foregoing opinion and guidance were meant to clarify House Bill 98, they unfortunately left more questions than answers, such as: • Can a condominium’s master association policy that provided coverage of the detached unit prior to October 1st remain the same or must the policy be modified to ensure coverage under the amendments to the Act?

FA LL / W INTE R 20 23

• If a unit owner obtains a separate homeowner’s insurance policy for their unit, will the policy cover the $10,000 deductible that the unit owner will be required to pay if damage to the condominium originates from the unit?

• If a unit owner’s separate homeowner’s insurance policy is not required to identify the association as an additional insured, how do the exterior components of the unit which are considered common elements, such as the roof, foundation, and exterior walls, get adequate coverage under the association’s policy?

In the event of a casualty to the unit, would the unit owner’s insurer deny coverage on the exterior components of the building and only cover the inside of the unit?

• Do the association’s budget and the detached unit owner’s assessments get adjusted if the association’s master policy no longer includes coverage for the unit?

• Will mortgagees start collecting insurance premiums for the unit owner’s insurance policy as part of the unit owner’s monthly mortgage payments? What if the unit is covered under the association’s master policy?

Hopefully, in the coming months there will be further clarification from MIA and/or the legislature to some of these questions, but in the meantime, if you live in a detached condominium unit it is imperative that you talk with your association’s management agent and board of directors to determine if the condominium association will continue to insure your unit under the condominium’s master policy. If so, you and your condominium association must work with the insurance provider to ensure that the unit is adequately covered. If not, you will need to obtain your own homeowners’ insurance policy, to make sure your unit is adequately covered inside and out.

By Connie Phillips, CIC, EBP, CIRMS, Connie Phillips Insurance, cpi@insurance-financial.net & Judyann Lee, Esq., McMillan Metro, PC, jlee@mcmillanmetro.com You can obtain more information regarding House Bill 98 and Bulletin 23-25 by using the links below: Attachment MIA Bulletin 23- https://insurance.maryland.gov/ Insurer/Documents/bulletins/23-15-Obligation-of-CondominiumOwners-and-the-Council-of-Unit-Owners-of-a-Condominium-toPurchase-Insurance.pdf Attachment HB98 2023 Regular Session - House Bill 98 First Reader (maryland.gov) 35

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CHESAPEAKE REGION CHAPTER OF CAI 2024 EVENTS JANUARY

JULY

Thursday 11th

Tuesday 16th

Charting Your Course – Virtual

The Complete Player Charity - Field Day

Location TBD

Date TBD

Thursday 25th

Homeowner Webinar “Working Together as a Board”

Crab Feast

Sandy Point State Park, Annapolis MD

FEBRUARY

Manager Huddle Webinar

Wednesday 14th

Breakfast Webinar – “Governance”

Sunday 28th - Wednesday 31st

Virginia Leadership Retreat

Tuesday 27th & Wednesday 28th

Hot Springs, VA

Board Leadership Development Workshop

AUGUST

MARCH

Wednesday 14th

Wednesday 20th

Volunteer Day

Breakfast Seminar

Marley Glen School, Glen Burnie, MD

Ten Oaks Ballroom, Clarksville, MD

SEPTEMBER

APRIL

Thursday 12th

Friday 12th

Joint Chapter Social Event

Delmarva Breakfast Seminar, Legal Roundtable Atlantic Sands, Rehoboth, DE

Location TBD

MAY

OCTOBER Monday 7th

Monday 6th

Annual Symposium & Expo

Delmarva Golf

Live! Casino & Hotel Maryland, Hanover, MD

Glen Riddle Golf Club, Berlin, MD

Date TBD

Wednesday 8th – Saturday 11th

Homeowner Webinar

CAI National Conference Las Vegas, NV

NOVEMBER

Wednesday 22nd

Thursday 7th – Friday 8th

Breakfast Seminar

Delmarva Happy Hour & Expo

Ten Oaks Ballroom, Clarksville, MD

Location TBD

JUNE

Tuesday 19th Board Leadership Development Workshop

Monday 24th

Golf Outing

Norbeck Country Club, Rockville, MD

er Building Bett Communities

Location TBD

DECEMBER

Chesapeake Region Chapter of the Community Associations Institute PO Box 6838 | Columbia, MD 21045

410-348-1534 | caimdches.org | #caicrc

Date TBD

Annual Social & Annual Meeting

Location TBD