Summer/Fall 2022

SU MM E R/ FAL L 2 02 2 I SS U E

THE

BEACON A CHAPTER OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI)

Community Budget Tips A Condominium, Homeowner, and Cooperative Association’s annual budget is an important tool to explain the Board’s plan to maintain and improve the community. As communities age, it is important to keep them structurally and physically in shape. Starting at the very beginning and developing good community budgets that address needs allows your Association to be in good shape for the future. Invest now so that your money works best for you.

What information is pulled when developing your budget?

Look for trends in past budgets, as this will assist in anticipating future costs. Refer to the current and December (from the prior year) year-to-date income and expenses.

Refer to the Audit and Reserve Study.

Pull paint schedules, fencing maintenance schedules, schedules for pool repairs, community structures, etc.

What does a typical budget look like?

• Pool/Community Center Rentals • Interest • Misc Operating expenses include those items the community uses throughout the year, such as; • Contracted services—landscaping, snow removal, trash removal; continued on page 4

Look inside for some 2022 Annual Golf Outing Sponsors, Photos & More!

— See Page 14 —

Budgets are made up of Income and Expenses Income includes the following: • Assessments • Legal income Assessments

2022 DIAMOND SPONSORS Atlantic Maintenance Group, LLC Becht Engineering BT E&F Contracting, Inc. Hann & Hann Construction Services Kris Konstruction Roofing Professionals Mid-Atlantic Asphalt Minkoff Company, Inc. Pacific Premier Bank Palmer Brothers Painting & General Contracting Quest Insurance Risk Strategies Company RoofPro, LLC

SageWater SI Restoration Simmerer Insurance The Falcon Group Tidewater Property Management, AAMC TRC Engineering Unlimited Restoration

2022 PLATINUM SPONSORS CIT Davis, Agnor, Rapaport & Skalny, LLC Nagle & Zaller, P.C. Quiza Management, LLC S&K Roofing, Siding & Windows, Inc.

2022 GOLD SPONSORS Building Envelope Consultants and Scientists—BECS Condominium Venture, Inc., AAMC Connie Phillips Insurance FirstService Residential North Arundel Contracting Pro Painting & Contracting Truist Association Services USI Insurance Services Whiteford, Taylor & Preston LLP

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In This Issue Community Budget Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Events 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Platinum Sponsor Showcase—CIT Bank . . . . . . . . . . . . . . . . . . . . . . . . . . 8

EXECUTIVE BOARD

President . . . . . . . . . . . . . . . . S usan Rapaport, Esq. Davis, Agnor, Rapaport & Skalny, LLC President-Elect . . . . . . . . . . . Rebecca Clemson-Petrik, CMCA, AMS, PCAM FirstService Residential Vice-President . . . . . . . . . . . . James Anderson, PE Becht Engineering BT, Inc Treasurer . . . . . . . . . . . . . . . . Vicki Eaton, CMCA, AMS, LSM, PCAM Community Association Services, Inc., AAMC Secretary . . . . . . . . . . . . . . . . Gail Windisch, CMCA, AMS, PCAM Tidewater Property Management, Inc. AAMC

DIRECTORS

A Process-Based Approach to Implementing Security Solutions . . . . . . . 10

Cynthia McKoin, Potomac Ridge Condominium, Inc. Kelly Rae, RoofPro, LLC Steve Randol, Piney Orchard Community Association Gary Saylor, Atlantic Maintenance Group

Diamond Sponsor Showcase—Becht Engineering . . . . . . . . . . . . . . . . . . 12 Complete Player Charity to Foster Mentoring Program . . . . . . . . . . . . . . 13 2022 Annual Golf Outing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Social

COMMITTEE CHAIRS

Diamond Sponsor Showcase—Pacific Premier Bank . . . . . . . . . . . . . . . . 17 Community Association Stress from a Homeowner Perspective . . . . . . . . 19 Diamond Sponsor Showcase—SI Restoration . . . . . . . . . . . . . . . . . . . . . 21

DelMarva

Chad Toms, Chair Whiteford, Taylor & Preston, LLP Lisa Meck, CMCA, AMS, Vice-Chair Carl M. Freeman Companies

Education

Noni Roan, Chair CIT Christa Brady, AMS, PCAM USI Insurance Services

EXPO

Ellen Throop, Chair Davis, Agnor, Rapaport & Skalny, LLC Joanne Frallicciardi, CMCA, AMS, Vice-Chair Community Association Management, LLC, AAMC

Golf

Scott Karam, Chair Kris Konstruction Roofing Professionals Kara Permisohn, Vice-Chair Minkoff Company, Inc.

Legislative

Cynthia Hitt Kent, Chair Law Office of Cynthia Hitt Kent, LLC Karen Fooks, CMCA, AMS, Vice-Chair Community Management Corporation

Membership

Ron Bridge, Chair Risk Strategies Company

Newsletter

Michelle Baldry, Chair Reserve Advisors Sami Satouri, Vice-Chair Quest Insurance

Communication

Alicia Menefee, CMCA, Chair HPS Management

Business Partner Advisory

Austin Haspert, Chair E&F Contracting, Inc. Jason Kingan Atlantic Maintenance Group

Welcome New Members! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Diamond Sponsor Showcase—Palmer Brothers Painting . . . . . . . . . . . . . 24 Diversity, Equity, and Inclusion for Community Associations . . . . . . . . . . 25 Diamond Sponsor Showcase—Hann & Hann Construction . . . . . . . . . . . 27 2022 Maryland Legislative Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Diamond Sponsor Showcase—Sahouri Insurance . . . . . . . . . . . . . . . . . . 30 2022 Summer Crab Feast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Get Social With Us! Be sure to like and share our chapter posts on Facebook and LinkedIn and follow along by using the chapter’s hashtag: #CAICRC

CAI CHESAPEAKE REGION CHAPTER Richard Coppage, 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 Website: 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.

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Dani Bressler, Chair Toepfer Construction Co., Inc. Carrie Ehart, Vice-Chair Raine & Son, LLC

President’s Message Dearest Chapter Members, I hope that you have had the opportunity to meet, either in person or virtually the Chapter’s new executive director, Richard Coppage.

Although new to us, Richard is not new to CAI. Prior to joining our Chapter, Richard served as CED of the Central Virginia Chapter.

Richard has been spending his time getting to know our Chapter, including its committees, programs and events, as well as becoming acquainted with the staff, the Board, committee members and all of the other volunteers. If you have not already done so, please take a moment to introduce yourself to Richard.

Over the summer, the Chapter hosted its second annual crab feast. Although the weather was a balmy 98 degrees that day, all who attended enjoyed the wonderful food, drink, and camaraderie. Thank you to the Social Committee for planning this successful event.

This past summer, the Chapter also held our first event with The Complete Player Charity, which is a non-profit organization dedicated to empowering and unleashing the potential in today’s youth. Several Chapter members donated their time and expertise to introduce a group of middle school students to the many and varied jobs and careers that encompass the community association field. The students had an opportunity to learn, though role playing and hands on experience, what is entailed in being a general contractor, a landscaper and a community manager. The feedback that we received from the

students was that this was the best field trip ever! Many thanks to all who participated in this event and a big thank you to Piney Orchard Community Association who hosted the event and allowed us to use the community’s wonderful facilities. In keeping with this year’s theme of “taking it to the next level” the Strategic Planning Committee is coming up with ideas to grow this program.

By the time this newsletter reaches your inbox, the Annual Golf Outing on the west side of the bridge will have already taken place.

Given the amount of creativity, attention and volunteer enthusiasm that the Golf Committee put into the Golf Outing, I am sure that the event was a huge success and enjoyed by all who attended.

The Expo Committee is hard at work planning our next big Chapter event which is the Annual Symposium and Expo on Tuesday, October 18, 2022, at Martin’s West. This year’s topic is about achieving a work life balance and working smarter not harder. I hope to see you all there.

With the summer behind us, it is a great time to recharge. I hope that you will consider becoming more involved in the Chapter. New ideas and suggestions are always welcome.

Regards, Susan Rapaport, Esq., Partner Davis, Agnor, Rapaport & Skalny, LLC Chesapeake Region Chapter President

Our New Chapter Executive Director, Richard Coppage!

The Board of Directors is pleased and excited to announce that Richard Coppage will be joining the Chesapeake Region Chapter as the Chapter Executive Director (CED).

Central Virginia Chapter since 2020, where he has been solely responsible for all of the Chapter’s operations. His prior work experience includes property and community management, he was a director of a non-profit organization and a marketing administrator. Richard received a BA from and is currently working on his MBA at Mary Baldwin University. He also has a certification in web development.

Although new to our Chapter, Richard is not new to CAI. Richard has served as CED of the

Richard’s first day was on Monday, June 13, 2022. He is excited to join the Chesapeake Chapter and looks forward to collaborating with the membership, Board and staff to take the Chapter to the next level. Please help us in welcoming Richard to our Chapter!

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continued from cover page

• Administrative services—legal fees, insurances, postage and mailings and taxes; • Utility services—gas and electric and water; Maintenance— common area repairs and maintenance, to name a few.

Reserve expenses account for the money that is put into the reserve account to adequately fund for the infrastructure such as; • Elevators, roofs, windows, pool, roadways, walkways, tennis courts, playgrounds, lights etc.

When is a good time for budget development?

Mid June for communities with a fiscal calendar year end.

Community Finance Committees led by the Treasurer typically take into consideration those items that members have requested, the information from the reserve study (must be updated every five years), and any maintenance item from the community maintenance schedules.

By September, a budget working session has been completed and the balanced proposed budget is presented to the Board during a regular Board of Directors meeting.

By late September or early October, the draft budget is forwarded to the members with the date of the open budget meeting. Allowing for any changes decided at the budget meeting, by mid-November the final budget is approved by the Board and the approved budget is sent to the members within 30 to 45 days before January 1st.

consider expense items important to ensuring a well maintained community, preventative maintenance, and keep costs within a reasonable level. It is important to set goals, which should include long term planning (3–5 years). By accurately assessing yearly budget needs as well as addressing long-term planning goals/ needs, you will put your community on a path to being in solid financial shape.

Items adapted from CAI’s How to Draft a Budget

In times like now, where the economy is in a recession, members do not wish to increase the annual dues amount. Unfortunately, the Board must

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BEST PRACTICES Russell Munz

I like to say that best practices are born out of the trials and tribulations of the worst practices.

If you’re a Board Member or Community Manager of HOAs and Condo Communities, the way to learn these best practices is to learn from the mistakes of others. Over the last three years I have researched over 20 case studies of fraud and embezzlement perpetrated by board members, onsite staff, portfolio managers and management companies around the country. In this article we’ll discuss the resulting best practices as well as cover some good housekeeping items.

Financial Reports One embezzlement scheme where the management company controller stole over $2,300,000 from numerous communities was from doctoring the financial reports. The report package did not include a bank reconciliation report which proves what is on the reports matches what is on the bank statements. Besides fraud, getting reports more frequently will help you spot irregularities faster. Use the comparative income and expense report that shows the actual expenses versus budgeted and the variance for the month and year to date. Look at the variances and then ask questions.

Get financial reports monthly and make sure they include a bank reconciliation report.

Bank Information In the case mentioned above the controller also did not include bank statements with the report package so the boards couldn’t verify the funds in the bank and on the reports.

At a minimum, get bank statements as part of your financial report package and even better is for Boards (more than 1 person) to have online access to view bank accounts so you can spot irregularities faster and for greater checks and balances.

Old Bank Accounts In some cases, board members changed banks and an old bank account was not reported on the financial reports. A former board member was spending money from the old account. Even when there

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is no fraud I’ve dealt with Boards where the original signers on the account moved or died and the new board could not access their money until they filled out a lot of paperwork and had to go through numerous phone calls and meetings with the bank for over 9 months!

Plus, fewer bank accounts make the financial reports easier to read and will cost you less to have someone prepare.

Close old bank accounts.

Checks and Balances Another embezzlement case involved a Board President who had the community checkbook and wrote out checks and forged a second board member’s signature and pocketed the money. Even having two signers required for checks did not work.

Systematize your AP. We use an online system where the manager and/or two board members have unique logins to review and approve bills before a payment gets processed. This also increases the Board’s control over expenses and reduces surprises when reviewing the monthly financial reports.

Debit & Credit Cards and Petty Cash One onsite manager in Colorado had a debit card and withdrew money from the ATM at the Black Hawk Casino! The Board did not have access to the bank information and this went unnoticed for several years.

For Debit cards the best practice is to set up a separate account and then limit the amount of money in that account to say $1,000. Otherwise, someone could withdraw the daily limit every day and that can add up. Credit cards are better as you can put a cap on them but make sure you have a process in place to track the credit cards when board members or staff changes. Petty cash is just a bad idea. We recommend not accepting cash as payment as it can easily “get lost.” The best way to avoid all of these scenarios is to use a supply house that will invoice the association, or if the purchases are infrequent, for a Board Member to make the purchase and then submit reimbursement through an online approval system as mentioned above.

Payroll A community had onsite staff and chose to “save money” having that staff use Quicken to run payroll. The person doing payroll ended up giving themselves extra paychecks as well as additional bonus checks!

Additionally, if withholding rates change and you don’t change the rates in your software you may incur a shortfall. Depending on how quick the state notices this, you’ll be liable to pay the shortfall as well as stiff penalties.

Use an outside payroll company to reduce risk.

G O O D H O U S EK EEP I N G eparate Operating Funds from Reserve Funds: Many communiS ties use only one bank account. We recommend you have a second bank account for your reserve funds. This will help you track these more clearly on the balance sheet monthly to see exactly how much you have put aside for capital replacement projects. perating Expenses Paid from Reserve Account: I’ve seen where O communities use the reserve account as a slush fund for operating account shortfalls. If you have to use these funds, we recommend borrowing them for a short term and then replenishing with a special assessment. Do the special assessment quickly after the cause of the budget shortfall so it’s fresh in the owners’ minds— think more snow than anticipated in a year assessed while it’s still cold instead of during mid-summer. ollections: If your community doesn’t have a collection policy C that outlines what will be done at what time and the associated fees owners will pay, put that on your to do list. This will help the Board, management, accounting staff and homeowners be clear on your process. Additionally, a best practice for home loans, car loans and credit cards is reporting delinquent payers to the credit rating agencies, an option that is now available for community associations. This lights a fire under owners to put their association dues bill on the top of the stack of bills to pay and not the bottom.

I hope this opens up some discussion at your community or your management company.

Written by Russell Munz, Licensed/Certified CAM in 7 states and Founder and President of Community Financials, Inc. russell@communityfinancials.com

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A Process-Based Approach to Implementing Security Solutions License plate readers that flag unknown vehicles approaching a private gate, automatically notifying security guards or neighborhood watch groups. Camera systems that communicate with access control systems using facial recognition software, sending alerts to security personnel and providing metrics that help Management and Boards evaluate amenity usage. Cloud-based security solutions with forensic value that allows Boards and Management to be both proactive and reactive in responding to security events. Emerging security technology and increasing market demand have resulted in products reminiscent of Star Trek. How should a community determine which product is the best fit for them?

Boards and Managers should adopt a process-based approach to problem solving before exploring different products. Let’s examine a scenario using the process-based approach.

Step One: Define the Process Ask, “What are the steps in the current security process?”

Residents have complained of long wait times at a gated entrance to the community with cars backed up into a dangerous intersection. Boards and Managers should first list the steps in the current security process.

1. Cars approach gates.

2. Guards greet cars and confirm residency using resident records kept in a paper binder. Guards greet visitors and confirm with an approved guest list. Calls may be required to owner to confirm guest.

3. Guards open gates.

Step Two: Define the Problem Ask, “What empirical data do I need to gather to determine the scope and severity of the problem?”

Is the problem that the gates are too slow to open, onsite guards need to trigger the gate mechanism, visiting cars slowing the process, or a combination of all three? Are the resident complaints valid or based on a perception of how fast the gate process should operate?

Gather data through research and surveys. Determine which step, or steps, are creating a problem and not working as designed.

Conduct resident surveys with both qualitative questions (assessing resident emotions and perceptions to a problem) as well as quantitative questions (providing data that allows you to define the severity

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of the problem.) An example of a qualitative question could be, “Do you feel that the gate system is operating effectively?” An example of a quantitative question could be, “On average, how long do you wait to enter the gate?”

Perform field research to gain further insight into the nature of the problem. In the gated entry scenario, volunteers position themselves to count cars at three critical times: 9AM, 3PM, and 6PM. Counts are taken for how many cars are waiting in line and how long the average wait is. Counts are taken on how many guests vs. residents enter. Incidents in which guests cause longer wait times are also documented.

In defining the problem, it’s important to consider the nature and severity of the problem as well as residents’ perceived beliefs about the nature and severity of the problem.

In the gate scenario, guards spent a lot of time confirming residency, and visitors slowed the process even more. It was determined that there was a problem in both the layout as well as the technology that disrupted the process.

Step Three: Visualize A Scenario Where the Process Works Efficiently

Step Four: Communicate, Communicate, Communicate

Ask, “What should the ideal process look like?”

Ask, “What do I need to communicate to residents, visitors, and business partners about the change in the process as well as the change in the technology?”

Focus on process. Before Boards and Managers research the market to select product solutions, they should be able to describe what the ideal process should look like first.

In the gate scenario, the ideal process allows residents to enter faster while being vetted appropriately. While many security solutions are available on the market, knowledgeable business partners specializing in security software and products will be able to cater the solution to fix the specific problem within the process rather than simply replacing a system which might not solve the problem in the long run.

A gate system may not need to be replaced entirely and may simply substitute one problem for another. New features with all of the ‘bells and whistles’ can be distracting and costly, and Boards need to weigh both the impact on the budget compared to the potential for long term savings. Overall, the priority when implementing security solutions should be keeping everyone safe and limiting liability.

The ideal solution to the gate problem was to create a guest-only lane for guards to vet visitors as well as install a license plate reader in a resident-only lane. There needed to be a change to both the process of vetting cars as well as the product used for the solution to meet the needs of the community.

First, explain the decision-making process used and be sure to share results from surveys and research to justify the change. Communicate clearly why the change is warranted and explain the new steps far in advance of any changes. Determine if signage is required onsite in addition to eblasts, written correspondence, and notices to residents. Decide which information is needed from residents prior to implementation.

Step Five: Reassess Process Effectiveness Ask, “Is the new process working as designed?”

Schedule a post implementation evaluation to determine the success of the system. What is working well? What needs tweaking? This is a great time to perform a follow up survey and field research to compare results with initial findings.

Overall, implementing any change in the security procedures of a community requires time, research, and communication. Partnering with a knowledgeable business partner can help the association follow a process-based approach that integrates technology catered to meet residents’ needs.

Collaboratively Written by Mitch Gyger, President, OPS Security Group https://opssecuritygroup.com Alicia Menefee, CMCA, AMS, HPS Management alicia.menefee@hpsmanagement.com

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Chesapeake Region Chapter of CAI Partners with the Complete Player Charity to Foster Mentoring Program The Chesapeake Region Chapter of CAI (CAICRC) has partnered with The Complete Player Charity (TCP), a youth development and educational nonprofit organization that serves low/moderate income families in northern Anne Arundel County, Maryland. TCP’s mission is to “Unleash the Leader Within” Anne Arundel County youth by providing transformative opportunities that empower and inspire them to reach their full potential.

The inaugural field trip event was held on Wednesday, July 20, 2022 and allowed TCP students to meet with CAI managers, homeowners, and business partners. Working collaboratively, CAICRC and TCP hope to provide career paths and pipelines for students interested in community management or related industry fields.

To learn more about the mentoring program, contact Chapter Staff at contact@caimdches.org, and be sure to visit https://www.caimdches.org to learn more about future events with CAICRC.

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A Great Day at our Annual Golf Outing!

Many Thanks to Our 2022 Golf Outing Sponsors!

Atlantic Maintenance Group Barkan Management Columbia Roofing Community Association Management Complete Landscaping Service Condominium Venture, Inc. E&F Contracting, Inc. Environmental Solutions Inc. Fellner Legal Services FirstService Residential Hann & Hann Construction Services Knott Mechanical Kolb Electric

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Kris Konstruction Roofing Professionals Law Office of Cynthia Hitt Kent Lazo Landscaping Minkoff Company Nagle & Zaller National Cooperative Bank North Arundel Contracting Palmer Brothers Painting & General Contracting Pro Painting & Contracting Property Management People Raine & Son Risk Strategies Company

RoofPro Ruppert Landscape SageWater Sahouri Insurance SBC Outdoor Services SecureCore SERVPRO of Rockville-Olney SI Restoration Simmerer Insurance The Witmer Group Thomasville Restoration Toepfer Construction Co., Inc. Tri State Restorations, LLC Walter Electric

Many Thanks to Our 2022 Golf Committee!

Scott Karam, Chair

Rasneek Gujral

Thomas (T.J.) Socks

Kris Konstruction Roofing Professionals

Rees Broome, PC

Becht Engineering BT

Kara Permisohn, Vice-Chair,

Austin Haspert

Mike Spera

Minkoff Company, Inc.

E&F Contracting, Inc.

Tri State Restorations, LLC

James Anderson, Board Liaison

Chase Hudson

Keith Stains

Becht Engineering BT

Sahouri Insurance

Property Management People

Dave Caplan

Denise Navarrete

Dana Szarko

Community Association Management

SageWater

Atlantic Maintenance Group

Joe Esposito

Linda Sheets

Hann & Hann Construction Services

Kolb Electric

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Congratulations to Our 2022 Golf Outing Winners!

Flight Winners

Longest Drive Men

Flight #1

Eddie Hise

First Place: Nora Bowen, Glenn Loveland, Shawn Carey, Jack Bowen

Longest Drive Women

Second Place: Scott Karam, Jeff Alleman, Todd Warzeniak, Michael Feltenberger

Jennifer Bennett

Closest to the Pin Men Shawn Carey

Flight #2

Closest to the Pin Women

First Place: Chris Cross, Ken Erickson, Ray Megill, Richard Zmuda

Gina Rooney

Second Place: Brian Mohan, Steve Lanciano, Chase Hudson, Chris Petrik

Flight #3 First Place: Scott Duke, Ken Schwebel, Rob Miller, Andy Barnes Second Place: Jennifer Bennett, Staci Gelfound, Sam LeBlanc, Aaron Mindel

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Straightest Drive Men Don Gentry

Putting Contest Richard Zmuda

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Homeowner Stress and Stressors The American Psychological Association (APA) Dictionary of Psychology defines stress as “the physiological and psychological response to internal or external stressors.” They add, “stress involves changes affecting nearly every system of the body, influencing how people feel and behave.”1 Stressors are defined by the APA as “any event, force, or condition that results in physical or emotional stress.”2 Because stress is so pervasive in America, the American Psychological Association with The Harris Poll have conducted and published an annual “Stress in America” survey dating back to 2007.

The surveys show a trend of increasing stress. The APA subtitled their 2020 survey report—the first year of COVID—“A National Mental Health Crisis.”3 What stressors elicit homeowner stress? Each community association has its unique mix of issues.

To tap into a broader pool of homeowner stressors for this article, this author collaborated with the Chesapeake Chapter to survey its homeowner

membership. The survey indicated top stressors for homeowners are: Î Governance issues—Instances of selective enforcement, ignoring governing documents and, possibly, state, and federal statutes. Solutions include: There are several levels of support for concerned homeowners: The community board, the governing documents, the community or property manager and management company, the community attorney, the state Attorney General’s Office and its Consumer Protection Division (Maryland and Delaware). Î Developer governance issues—Attempting to function as a board member when the developer controls the majority votes. One survey respondent reported their community developer has controlled the board and its decisions to the detriment of owners/residents. The respondent continues s/

Community Association Stress from a Homeowner Perspective he is documenting in detail the issues.

Solutions include: The community attorney or the state AG’s office can also offer legal and practical counsel. Î Board personality—“Bullying” or unfair treatment, sarcasm, derision, ignoring board members’ input, conflict of interest and lack of transparency, retaliatory attacks when called out. Solutions include: Bullying is toxic to boards, to residents, and to advancing association business. Everyone in a community deserves to feel safe and valued.

Some personalities—or their agendas—are intractable. The high road is setting conduct limits, both in meetings and in the community. Refer to the community documents, confer with the manager or community attorney. Also consider how to untangle the bully’s points from his/her behaviors.

Managing the behaviors might include a plan of who can most effectively engage him/her outside the meeting (preferably before a meeting?). Legal and ethical violations need to be reported to the manager, the community attorney, the state AG’s office. Î Board meetings—Yelling, anger. Solutions include: Contentious meetings impede associations. Uncivil,

unmanaged conflict robs the board of conducting its business, attendees feel angry and unheard.

For most people, learning to redirect heated conflict into synergistic sharing requires education to master: CAI and Chesapeake offer many educational opportunities. Community events and meetings offer practice opportunities: Several professionals have experienced success setting out meeting expectations at the opening of the meeting, whether in-person or virtual. And follow through with the stated consequences. Some managers report inviting local police to be present for contentious meetings. For virtual meetings, after opening with meeting expectations and consequences, the virtual host can follow through quietly by turning off the offender’s microphone. Î Owners who speak up (critically) once a year but will not volunteer—A frustrating issue, especially when communities need engaged owners to volunteer their skills and time on boards and committees.

Solutions include: Some questions for thought: Is the “annual speak up” the only opportunity the owner can share a rankling issue? Is their non-volunteerism the result of a work schedule, medical or family issues, or other priorities? Does additional responsibility or time come from a lack of personal

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relationship or not personally being invited? Do the tasks align with their interests or expertise? The bottom line—what would make a win-win? One way community leaders can engage neighbors is to be visible in the community. Walking around, meeting and chatting also are opportunities to build friendships, to learn about neighbors, and to extend personal invitations to engage. Î Resident spreading false information about the community’s business—Someone in authority affirmed the true facts to the resident but he/she persisted to gossip about the false information, which frustrated other community residents. Solutions include: Some residents may prefer the gossip of the falsehood.

Others may not truly understand or have another agenda. One step toward the resident might be to meet with a third person, someone neutral who has listening and/or negotiation skills. If there is an agenda’—or distrust—that neutral person can clarify what is said, what is heard\. Perhaps the true agenda or reason(s) for distrust will surface. If such a meeting results in movement toward truth and understanding, both the resident and the community win. Î Manager issues—When a manager is ineffective, not knowledgeable, when his/her responsibilities go uncompleted, a community suffers. One homeowner documented the manager’s performance issues in hopes the documentation would lead the management company to replace the poor performer. Solutions include: The first step is to review the Community’s documents and the manager’s contract. Secondly, get attorney advice regarding the responsibilities of both the association and the manager. Sometimes an informal discussion with the manager is enough. More consequentially, the board may need to meet formally with the manager to discuss the issues and develop a formal performance improvement plan (likely to include better performance elements for both the manager and the community/board). The manager’s supervisor should be included. The plan should include industry education to make up any professional gaps. The manager’s supervisor should be informed. If the plan is not successful, the appropriate body (board, manager’s supervisor) will make the next level decision of the manager’s future with the community.

D.H.BADER MANAGEMENT, INC.

Î Owners without social support becoming a (legal) “nuisance”—Residents with cognitive issues, verbal outbursts and/or hygiene issues. Solutions include: Without legal incompetence rulings, such residents’ needs and neighbors’ concerns are difficult to solve. Families are critical to managing the needs and safety of these residents. Boards/managers also should consult with the community manager and attorney for advice. County Departments of Social Services may be helpful. Î Aging infrastructure, Finances and Reserves—A Board member shared the concern of owner resistance to increasing the monthly assessment in their community. Solutions include: Frequently, monthly assessments may be set low to attract buyers.

Frequently, Boards are tempted not to act against the owners’ resistance and vote to keep assessments low. In the aftermath of the 2021 Surfside FL condominium collapse several states, including Maryland, have passed Reserve laws in 2022. Maryland’s HB107 expands the Reserve legislation applicable to Montgomery and Prince George’s Counties to common association communities in all Maryland counties. Communities must have a Reserve Study every five years by a qualified professional.

The study’s annual projects must be funded in a community’s annual budget. One survey respondent reported education is key to community buy-in. This is especially true in underfunded communities. A second respondent noted stewarding community finances is aided by able residents volunteering around the community; though liability issues need to be considered.

References 1, 2 American Psychological Association. (n.d.) Stress and Stressor definitions. In American Psychological Association Dictionary of Psychology. Retrieved March 2022 from https://dictionary.apa.org.

3 American Psychological Association (2020). Stress in America TM 2020. A National Mental Health Crisis. Retrieved March 2022 from https://www.apa.org.

Written by Cindy McKoin (Condominium owner, Potomac Ridge Association Board president, CAI Chesapeake Chapter Homeowner-Board member)

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Welcome New Members!

New Chapter Members: April–June 2022

Mrs. Simone Adams Mr. Michael Agne Bay Bridge Cove Community Association, Inc. Lesley Ahmuty Nora Alter Middlesex Beach Association Mr. Reid Andrews Hippo Insurance Christina Arnold Property Management People, Inc.

Mr. Richard Destwolinski Bay Bridge Cove Community Association, Inc.

Mr. JR Hodder Canal Corkran Homeowners Association

Mr. William DiMondi Canal Corkran Homeowners Association

Mrs. Wwo Ibbott

Ms. Ramona Drieu Servpro of Rockville-Olney Mr. Mike Dunne The Residence Park Place Condominium

Ms. Marion Bowers Tidewater Property Management

Mr. Alan Escott Canal Corkran Homeowners Association

Mr. Paul Brook Bay Bridge Cove Community Association, Inc.

Mr. David Ferris Forest Landing Community Association, Inc.

Mrs. Stacey Brown Signarama Silver Spring

Ms. Maria Fleischmann Dulaney Towers Maintenance Corporation

Mr. Rob Buffington Gordian Staffing Mr. John Carola The Marina Bay Townhouese Condominium Association Jessica Charters The Marina Bay Townhouese Condominium Association Mr. Joseph Chinnici Canal Corkran Homeowners Association Ms. Nicole Conaway Legum & Norman-Ocean City Mr. Lee Davis Red Brook Condominium Ms. Patricia DeJarnett East Hampton Estates Community Association

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Mr. Paul Fletcher East Hampton Estates Community Association Mr. Jack Gallagher The Residence Park Place Condominium Ms. Christine Garrant Bay Bridge Cove Community Association, Inc. Mr. Charles Gibson East Hampton Estates Community Association Mr. Larry Hanratty Bay Bridge Cove Community Association, Inc. Mr. Chas Haug Canal Corkran Homeowners Association

Mr. Wally Ip The Marina Bay Townhouese Condominium Association Mrs. Amber Jacobsen Ms. Brenda Jones Red Brook Condominium Mr. James Jones Red Brook Condominium Jerry Kafka Middlesex Beach Association Mr. Edward Kelly Harbor Way East Condominium Ms. Katherine Kelly Harbor Way East Condominium Ms. Lisa Kemp Canal Corkran Homeowners Association

Mrs. Deborah Marion Tidewater Property Management Ms. Meredith Marx Dulaney Towers Maintenance Corporation Mr. Richard May Canal Corkran Homeowners Association Ms. Diane Miles Capital Court Homeowners Association Ms. Molly Miller Community Management Corporation Mr. Russell Munz Community Financials Ms. Michelle Murray Mr. John O’Brien Harbor Way East Condominium Erin Oneill MRA Property Management, Inc.

Mr. Bill Keys Dulaney Towers Maintenance Corporation

Mr. Nick Paoli Canal Corkran Homeowners Association

Ms. Lidia Kisslova Dulaney Towers Maintenance Corporation

Mr. Russell Pepin Comsource Management, Inc.

Mr. Thaddus Kittles East Hampton Estates Community Association Ms. Kim Laughlin Dulaney Towers Maintenance Corporation Ms. Susan Lee Red Brook Condominium Ms. Haura Marafie

Ms. Colby Phillips Captain’s Cove Golf & Yacht Club, Inc. Ms. Christina Purcell Harbor Way East Condominium Mr. Denny Rapport Waverly Woods West HOA Ms. Ann Ray Dulaney Towers Maintenance Corporation

Mrs. Dianne Spellberg Canal Corkran Homeowners Association

Nancy Reger Ms. Jane Rice Canal Corkran Homeowners Association

Mr. AJ Steele GAF Roofing Material Manufacturer

Ms. Janet Sansone Wolfe Pointe Property Owners Association

Miss Shanaya Stevenson Sunset Island Community Assoc.

Ms. Dawn Shatley Red Brook Condominium

Mr. Barry Stiefel The Marina Bay Townhouese Condominium Association

Mr. Kenneth Shearer Mr. Byron Smith East Hampton Estates Community Association

Ms. Emma Stokes The Harborview Towers

Ms. Carolyn Smith Carroll’s Creek Community Association

Ms. Nancy Strohminger Joel Sullivan Sullivan’s Landscaping & Maintenance, Inc.

Mr. Obie Sorrell Red Brook Condominium

Mr. Ron Thomas Middlesex Beach Association

Travis Wenrich Triple R Roofing

Jodi Thompson Wilgus Associates, Inc.

Mr. Rick Whelan Canal CorkranHomeowners Association

Ms. Cheryl Timmons Canal Corkran Homeowners Association Mr. Dan Toohey Canal Corkran Homeowners Association

Mr. Charles Whitehead Wallace H. Campbell & Company Ms. Amy Witcover-sanford Middlesex Beach Association

Ms. Natia Twyman Community Association Services, Inc.

Mr. Rick Yale The Marina Bay Townhouese Condominium Association

Ms. Jeanne Upchurch Waverly Woods West HOA

Ms. Carolyn Zollar Canal Corkran Homeowners Association

Ms. Hope Wagner Community Association Services, Inc.

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Diversity, Equity, and Inclusion for Community Associations The Community Associations Institute (CAI) recently issued its Diverse and Inclusive Communities Guide outlining ways Boards and managers can promote diversity and prevent discrimination in community associations.

You would think that an industry that literally starts with the word “community” wouldn’t need to tackle the issue of “inclusion for all” so head on. But even community associations have a dark past to overcome.

Baltimore enacted the first racial zoning ordinance in 1910. It restricted African Americans to living in certain blocks. While the zoning ordinance was struck down by the U.S. Supreme Court, the relegation of minorities to certain locales didn’t stop. Not being able to segregate directly through zoning codes, developers promoted segregation through racially discriminatory private covenants recorded in land records which ran with the title of the property.1 In fact, it was only in 2018 that the Maryland Homeowners Association Act was amended to proactively void, as a matter of law, and require associations to delete, any covenants aimed to restrict homeownership based on race, religious belief or national origin; covenants which, sadly, are still being found in older governing documents.

The Federal Housing Administration, aimed to help everyday Americans achieve the dream of home ownership, also had its hand in this dark past. When it was established in the 1930s, FHA took into account racial occupancy in determining the level of underwriting risk for mortgages.2 This practice is called “redlining”, which is basing credit decisions on the location of a property and surrounding characteristics, including the locale’s racial composition. To put it plainly, mortgages issued for properties in close proximity to black neighborhoods were deemed high risk. The term “redlining” was generated because neighborhoods deemed most risky for mortgage support were outlined in red on maps prepared by now extinct federal offices involved in the lending market after the Great Depression.

The passage of the Federal Fair Housing Act in 1968 was a significant first step in stopping discriminatory practices in housing transactions (sales, rentals, lending, etc.), including the practice of redlining. Since the passage of that Act, the number of protected classes has been expanded beyond the original protected classes of race, national origin, color, religion, and gender. The Federal Act was expanded in 1988 to include disability and familial status as protected classes. Maryland, as a state, recognizes even more protected classes of marital status, sexual orientation, gender identity, and source of income. Many counties and cities within the state expand protections beyond the state protections to include personal appearance, ancestry, and citizenship, to name a few.

In 2016, the Department of Housing and Urban Development, through its regulatory power, imposed a requirement that associations take active measures to address discriminatory housing practices within their communities (hostile environment and quid pro quo discrimination, specifically). But even with the passage of these laws, and expansions to include more protected classes, we still read about claims of discrimination within community associations. There is a federal case on appeal right now regarding an African-American woman who was renting a home in a Maryland homeowners association. She asserted that she was targeted for selective enforcement of various rules and regulations pertaining to parking on the basis of her race and source of income through government assistance programs. While the association prevailed at the district court level, legal practitioners will be watching the appeal of this case very closely. Even if the association continues to prevail in the litigation, it is still never a good look for an association to battle claims of discrimination in federal court.3 One of the courses offered at the recent 2022 CAI Annual Law Seminar in February was entitled “Bias in Our Communities: Strategies for Recognizing, Managing & Eliminating Bias.”4 The presentation recommended a deep look into how community associations may

1­ Lydia Pierce Linsmeier, Esq., “Discrimination, Restrictive Covenants and Community Associations”, LinkedIn (November 2020).

2 Lydia Pierce Linsmeier, Esq., “Redlining: The Echo of Discriminatory Housing Practices”, LinkedIn (January 2020).

3 See Williams v. Arora Hills Homeowners Association, 2021 WL 2226199 (D. Md. June 2, 2021), appeal filed (4th Cir. July 6, 2021).

4 Presented by Melissa Bauman Ward, Esq., Hughes Gill Cochrane Tinetti, P.C., Jennifer L. Martin, Esq., Amherst, and Valerie Farris Oman, Esq., Condominium Law Group, PLLC.

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be creating and propagating bias in rules, policies, and governing documents, in the way associations pursue enforcement, and in its representatives’ everyday interactions with members of the community. For example, we learned that the term “grandfathering”, which, in our industry, refers to an exemption from a provision for owners who took title to their property before a certain date, like we see sometimes with smoking bans or lease cap amendments, has discriminatory origins. The practice was used to describe some southern states’ Jim Crow era laws which required voters to pass literacy tests or meet other voter qualifications, but exempted men who were the descendants of men who were eligible to vote before 1867, i.e. “grandfathers”.

The use of “grandfathering” disenfranchised voters of color whose descendants were former slaves ineligible to vote. Even today, we see some evidence of bias in the use of male only pronouns in governing documents, such as “he/him”, or with director qualifications and eligibility to serve on Boards, such as the candidate needing to be of “good character”—a pretext to weed out undesirable candidates in a discriminatory way.

• Educate boards and managers on relevant state and federal laws on diversity and discrimination issues as well as emerging changes in the way courts are handling these issues.

• Encourage board training on diversity and discrimination issue management and on how to handle resident-to-resident complaints and complaints to the board.

We know more work is needed to create and maintain “inclusion for all” in the community association industry. One first step community associations can take is to sign CAI’s Equality Pledge. This is a set of principles that associations can adopt to show a commitment towards fostering an inclusive and non-discriminatory environment.

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

In another publication entitled Creating Harmony in Diverse Communities, CAI recommends the following approaches for preventing and resolving claims of discrimination: • Establish formal procedures for handling diversity and discrimination issues in associations.

• Promote the importance for continuing active social programs and communications to create a sense of community.

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2022 MARYLAND LEGISLATIVE UPDATE “Of those bills, there are a handful that affect community associations that passed and will go into effect starting October 1, 2022.”

The 2022 legislative session was a busy one with the introduction of over 2,000 bills. Of those bills, there are a handful that affect community associations that passed and will go into effect starting October 1, 2022. The first of these bills is HB 107, which expands reserve study requirements statewide. Montgomery and Prince George’s Counties already had this requirement, but now all community associations in Maryland will be required to obtain reserve studies at least once every five years and budget for and fund their annual reserves in accordance with the recommendations in the reserve study. Any community association that has not obtained a replacement reserve study since October 1, 2018 will be required to do so by October 1, 2023, and then must have sufficient funds to meet the funding level recommendation in the study by the third annual budget cycle following receipt of the reserve study. The Board of Directors has the power to increase assessments in order to achieve the recommended funding level regardless of any restrictions or assessment caps in the association’s governing documents. The law also requires that any professional who prepares reserve studies must be licensed as an architect or engineer or otherwise certified by CAI or the Association of Professional Reserve Analysts and must have prepared at least thirty studies in the preceding three-year period.

The second of these bills is HB 615, which modifies Section 11-113 of the Maryland Condominium Act’s enforcement procedures for violations of the association’s governing documents. It also creates a new Section 11B-110.10 of the Maryland Homeowners Association Act, which now imposes enforcement procedures for homeowners associations starting October 1, 2022. The new law requires condominium and homeowners associations to provide notice of violation to an alleged violator, give the violator 15 days to abate the violation (increased from 10 days previously applicable only to condominiums) and the right to request a hearing before the Board of Directors within 10 days. In addition, the Board’s decision regarding the violation must be included in the Board’s meeting minutes.

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The next bill is HB 40, which requires a condominium Board of Directors to disclose to its unit owners, at least 21 days prior to execution, the terms of any settlement agreement between the condominium association and the condominium developer in settlement of common element warranty claims. The bill also clarifies that Section 11-109.1 of the Maryland Condominium Act, which authorizes a Board of Directors to hold certain meetings in closed session, does not permit the Board to withhold the terms of a legal agreement that the association has entered into.

HB 157 and SB 146 prohibit a person from standing, stopping or parking a vehicle in a parking space that contains electric vehicle charging equipment if the vehicle is not actively plugged into the equipment.

HB 853 and SB 512 establish that non-stock corporations must file only the seven most recent annual reports when filing articles of revival and past-due annual reports.

The legislature also passed SB 528 (the Climate Solutions Now Act), which went into effect on June 1, 2022. This legislation is designed to reduce Statewide greenhouse emissions 60% by 2031. Among other things, it requires certain commercial and multi-family residential buildings to reduce greenhouse emissions 20% by the year 2030 and to achieve net-zero emissions by 2040. The Maryland Department of Environment (“MDE”) has been directed to develop energy performance standards and regulations by June 1, 2023, which will require the owners of these buildings to phase out the use of energy sources, such as

propane, heating oil and natural gas by 2040. Such building owners will also be required to measure and report to the MDE data about their greenhouse gas emissions on an annual basis starting in 2025.

The MDE is required to include in its standards and regulations an alternate method of compliance by the payment of fees for failure to meet emissions reduction targets.

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A couple of bills that affect community associations that did not pass are HB26, which sought to create the State Board of Common Ownership Community Managers in the Maryland Department of Labor.

This bill would have required manager licensing by the Board in order to provide management services to a community association. The bill also sought to impose a per unit/lot fee on all community associations in the state in order to fund the operations of the Board. The other bill that did not pass was HB 140, which would have increased the number of annual membership meetings from one to two, and would have required a condominium developer to appoint a unit owner Board of Directors within 30 days of conveyance of units representing 25% of the votes in the association to members of the public.

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Employee

Benefits:

What are they and how important are they?

“

The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.”

— Steve Jobs, Chairman CEO and co-founder of Apple

We’ve all been witness to the “Great Resignation” that has been underway over the past two years.

We have seen the signs posted indicating “Help Wanted,” and we have all wondered what the heck is going on. How can we attract and retain the This photo by unknown author is valuable talent necessary licensed under CC BY-SA-NC to run our organizations successfully? This is a common problem across the board. As they say, good help is hard to find; and in many cases, even more difficult to keep, especially in today’s employment marketplace.

A comprehensive employee benefits package is a key factor for an individual deciding to accept a job offer or to stay on a job—salary is not the only consideration being measured. Imagine if you have an employee who is diagnosed with cancer and needs access to medical care or access to a particular specialist, but his employer does not offer health insurance or offers subpar options only. This affects the employee and his/her family and may result in many lost days from

work or worse, and the loss of a very talented employee. Alternatively, a number of successful employers not only offer basic health coverage but may also offer wellness programs as a means for promoting a healthy lifestyle which results in This photo by unknown author is decreased employee sick licensed under CC BY-SA-NC time, and less medical related costs for both the employer and employee. Oftentimes, those participating in such programs are rewarded for their healthy lifestyle efforts with reduced premiums for coverage. In a November 22, 2021 article authored by Robert Half (Source: Top 12 Perks and Benefits | Robert Half), the following six benefits are identified as the most sought after by employees: • Health Insurance: This benefit, falling right behind salary, is very important to many job candidates. In a Robert Half survey of 100 candidates, 76% ranked health insurance as an essential benefit.

• Paid Time Off (PTO): Six out of 10 or 57% of employees place paid time off (vacation, illness or bereavement) as third in the rankings of most desired benefits.

• Retirement Savings Plans: 51% of respondents indicated a retirement savings plan as an excellent perk to attract candidates, particularly if an employer match is offered.

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• Dental Insurance: 26% of those polled listed dental insurance as one of the top three benefits.

associations who face a number of challenges. Other considerations faced by small employers include:

• Life and AD&D Insurance: These coverages are very important to those employees looking to feel some comfort about protecting their families.

• In addition to running their association, a manager may have to spend a significant amount of time trying to find the right insurance plan, completing paperwork, making premium payments as well as acting as go-between for the employees and insurance carrier. A great solution to this problem is to choose a knowledgeable broker that can help you navigate the treacherous waters of healthcare!

• Vision Insurance: Because these can be costly expenses, coverage for glasses, contacts and eye exams is a very welcomed employee perk.

The ACA (Affordable Care Act) mandated that large employers must offer benefits to their employees and the coverage has to be AFFORDABLE AND ESSENTIAL. For small employers, while the law does not mandate any employer contribution, the job market may force the employer to think twice before foregoing offering benefits.

As an employer, what are your requirements with respect to providing health insurance to your employees and what are the obligations for large versus small employers? The table below breaks it down.

(Source: What’s the difference between a “large employer” and a “small employer”? [gusto.com]) LARGE EMPLOYER

• Unlike a large employer, small employers cannot negotiate premiums on or off the health exchange • Small employers must cover all of the Affordable Care Act’s 10 Essential Health Benefits (EHB), which are very specific and detailed categories of benefits. Additionally, each state sets additional mandates.

• Small employers may have to shoulder the cost of health insurance to keep premiums affordable, particularly for seasoned employees.

• Digital programs and technologies were previously nonexistent for the small employer group market but are now being offered at competitive pricing.

SMALL EMPLOYER

Definition

50 or more full-time equivalent employees Fewer than 50 full-time equivalent employees

Requirements for Health Insurance

Required to offer health insurance to all employees who work 30 or more hours per week.

Although not required to offer health insurance to any employees, it is quickly becoming apparent to the small employer as a basic requirement to hiring and retaining valuable talent. Many small employers are adding it as a means to stay competitive.

Penalty

If an employer with 50 or more full-time employees doesn’t offer coverage to 95% of those employees, the potential penalty is $2,750 per full-time employee (2022); the first 30 employees are not counted in the penalty calculation. (Source: What Is the ACA’s Employer Mandate? [verywellhealth.com])

No penalty.

Underwritten by carrier.

Community rate.

Premium

• Medical Loss Ratio (MLR, a/k/a the 80/20 rule) which is an important feature of the ACA, is calculated by dividing a health insurance provider’s claim and healthcare quality improvement costs by net premiums received.

Insurance companies must reach an MLR of 80% for individual, family and small group plans, versus an MLR of 85% for large group plans. (Source: What Is a Medical Loss Ratio? [thebalance.com]) For more on the MLR, see Source: questinsurance.us Some of the methods for reducing costs:

Large employers typically pay half or more of an employee’s single premium. Health insurance costs are calculated based on the following criteria: • Demographic and geographic information.

• Type of coverage needed.

Remember, health insurance premiums that employers incur are tax deductible as regular business expenses for both state and federal income taxes. In some scenarios, it may be possible for employers to set health insurance up so that employees can pay premiums with pre-tax dollars, increasing not only an employee’s take-home pay, but also lowering the amount of taxable

• Levels of deductibles and co-insurance.

• Employer’s prior claim history.

The incorporation of digital health plans (wellness, telemedicine and wearable health technologies) by large employers into their benefits portfolio has proven to be a great mechanism for improved employee health results and lower employer and employee premiums.

It is not surprising that the higher cost of health insurance is the number one reason why small businesses opt not to purchase coverage for their employees. However, most small businesses are realizing the necessity of offering health insurance to their employees to attract or retain good staff. This is particularly true for managers of community

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Law Office of Cynthia Hitt Kent, LLC A Baltimore area law firm engaging in the practice of general and real estate related representation for Community Associations, Developers, Small Businesses and Individuals.

Cynthia Hitt Kent ckent@hittkentlaw.com 10 Crossroads Drive, Suite 107 Owings Mills, MD 21117 T: 410.363.9600 | F: 410.363.9601

income for each employee. Employers may also be able to contribute to employees’ premiums with pre-tax dollars. (Source: The Pros and Cons of Offering Employee Health Benefits [smarthustle.com]) Although providing health insurance for staff is increasingly expensive whether you are a small or large employer, it is obvious that health coverage is a necessity. To cope with the cost This photo by unknown author is escalation, some licensed under CC BY-SA-NC employers have resorted to the use of a Health Savings Account or a Health Reimbursement Arrangement Account (HSA/HRA) or other Consumer Driven Health Plans (CDHP). These programs can be very helpful in mitigating health plan costs to both the employer and the employee. However, it is imperative that the employee understand the coverage and plan accordingly by saving to cover the high deductible portion of the benefit.

Although in the past, offering an attractive salary and basic employee benefits to potential candidates is where employers placed their major focus; today, when a record number of employees are voluntarily leaving the property management field, a comprehensive benefits package is critical to employee retention and employee morale.

In the next article, we will address some of the specific employee benefits challenges managers may face and share with you some of the solutions that the marketplace currently offers.

Written by Sami Satouri, RHU, ChHC, President/Owner, Quest Insurance ssatouri@questinsurance.us

In addition to the above-described benefits, recent events—particularly COVID-19—showed us why the implementation of an Employee Assistance Program (EAP) is a good example of a benefit that can make a difference, particularly in the time of crisis/trauma, overwhelming stress, increased financial pressures, etc. An EAP is a benefit that can provide comfort and possible relief to managers and their staff during difficult times.

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BETTER COVERAGE. BETTER OPTIONS. America’s community association insurance partner is upping its game Community Association Underwriters of America (CAU) has joined forces with Munich Reinsurance America, Inc. (Munich Re, US) to deliver an even higher level of strength and sophistication to America’s community associations.

Our solutions are custom-built by industry specialists to address the unique risks facing community associations, and now feature some powerful new options.

High-value policy enhancements ■

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Expanded coverage definitions for various buildings, structures, and personal property Increased coverage limits across multiple exposures, including natural outdoor property, demolition costs, increased cost of construction, debris removal, and property removal

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Simplified valuations for streamlined servicing

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Additional computer virus coverage

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Optional deductible credit endorsement and deductible allowance endorsement for cost savings in the event of certain losses

GET TO KNOW CAU Community Association Underwriters of America (CAU) is a managing general agency and national leader in community association insurance and risk management. Founded in 1989, CAU services community associations, residential and office condominiums, cooperative apartments, and homeowners associations. CAU is based in Newtown, PA and offers property, casualty, fidelity, D&O, general liability, and ancillary products to a nationwide client base.

Exciting new products, including ■

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Liability Plus: A broad-based liability policy custom-designed for community associations Cyber Suite: An affordable cyber insurance solution for community associations providing both first and third party coverage, including forensic IT review, public relations, and data restoration

Coverage you can count on Policies will be issued using A+ A.M. Best-rated primary insurance companies affiliated with Munich Re, US.

CONTACT

CA License No. 0558510 © 2017 Alliant Specialty Insurance Services, Inc. All rights reserved. [2017-3804]

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Michael Romano, CIRMS, CPIA Marketing Specialist D 267 757 7169 MRomano@cauinsure.com

A Great Day at Our 2022 Summer Crab Feast!

Thank you to our Sponsors!

Many thanks to our Social Committee for putting this event together!

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A Special

from the Social Committee We asked and you delivered! The Social Committee wants to thank all our generous members who brought gift cards to our crab feast, donations that will benefit the Marley Glen School.

Early this year, The Social Committee, recognizing that our community members had greater needs than in years past, decided to partner with The Marley Glen School. Marley Glen is a public day school located in Glen Burnie, Maryland. The school is a developmental center that provides a comprehensive half-day pre-school program for students with or without disabilities and full day programs for students 5–21 years of age with moderate to severe intellectual &/or physical disabilities.

To ensure that the students have everything necessary to thrive in school, they need items to supplement what is already received through the county. Thanks to the generosity of our members, The Marley Glen School received over $500 in gift cards to purchase those needed items. Our Social Committee Co-Chairs, Dani Bressler and Carrie Ehart, delivered the gift cards to Jayne Hudson, Principal of Marley Glen. She is incredibly thankful for CAI’s commitment to helping her school.

Written by Dani Bressler, Toepfer Construction Co., Inc.

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Power your business forward with our HOA Premium Reserve Solutions.

Put our expertise to work for you with: • The ease of dealing with one bank for all your HOA banking needs • A competitive rate of return to grow excess reserve funds • The security of knowing your funds are protected and secured by a surety bond

cit.com/CABReserves Let’s get started.

Noni Roan, CMCA, Vice President 301.639.5503 | Noni.Roan@cit.com

THE PROPERTY MANAGERS PREFERRED ELECTRICIAN Service Calls, Infrared Electrical Inspections, Pole Lighting, EV Chargers & MUCH more

COMPETITIVE PRICING

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. Premium reserve products are for new money only (money not currently held by CIT Bank, a division of First-Citizens Bank & Trust Company.) © 2021 First-Citizens Bank & Trust Company. All rights reserved. CIT and the CIT logo are registered trademarks of First-Citizens Bank & Trust Company. MM#10945

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CALL TODAY FOR YOUR COMPLIMENTARY ESTIMATE

(410) 357-6566 Service@cheselectric.com

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The Chesapeake Region Chapter Community Associations Institute PO Box 6838 Columbia, MD 21045 410-540-9831

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