September/October 2012

FocusL.A.’s Premier Source of Information for Community Associations Rights & Responsibilities for Better Communities About FHA Approval Preserve & Protect Property Maintenance

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Sign up now for a sponsorship and tickets at www.cai-glac.org. We’ll be Current Sponsors Potions (Happy Hour) Broomstick (Parking) expecting you! Securitas Security Services USA, Inc. Hi-Tech Painting & Decorating, Inc. Queen of the Damned Creep Show Photo Booth Pacific Western Bank Rodent Pest Technologies, Inc. Eerie Tunes from the Crypt Jack of the Lantern Preferred Commercial Painting, Inc. Mutual of Omaha Bank Deadly Treats Shoppe Vinyl Concepts, Inc. Boyd & Associates ENDURA Painting Corporation 2012 BOARD OF DIRECTORS OFFICERS NEWSWORTHY Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998 4 For Board Members: Ways To Promote Volunteerism Catherine Gemind, CMCA®, AMS®, PCAM®, President Elect Valencia Management Group, 661-295-9474 5 CAI Membership Benefits for the HOA Volunteer Leader Matt D. Ober, Esq., Vice President 6 Rights and Responsibilities Richardson Harman Ober, PC, 626-449-5577 Joanne Pena, CCAM®, CMCA®, AMS®, PCAM®, Secretary 7 Rights and Responsibilities for Better Communities Horizon Management Company, 310-543-1995 Katy Krupp, Treasurer 8 What’s Your Fraud IQ? Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 DIRECTORS 10 About FHA Approval Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 12 NEWS FROM SACRAMENTO: History of CLAC Series Matt Davidson, CCAM® Action Property Management, 800-400-2284 Interview with Dick Fiore — CLAC Chair from 1991-1994 Pamella De Armas SAX Insurance Agency, 310-740-4274 16 Construction Defect Litigation Has Reached Its Pinnacle – Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® And Now Moves To Arbitration Concept Seven, LLC, 310-622-7012 Gregg Lotane, CCAM®, PCAM® 21 “Preserve and Protect” Property Maintenance The Wilshire Condominiums, 310-446-5333 Robert Ridley, Esq. 24 Protecting and Preserving an HOA Property’s Most Valuable Castlegate HOA, 213-626-0291 Lynn Ruger Landscape Assets Warner Club Villas HOA, 818-703-7090 David C. Swedelson, Esq. Swedelson & Gottlieb, 310-207-2207 CHAPTER UPDATE CHAPTER EXECUTIVE DIRECTOR 2 Note From the Editor’s Desk Joan Urbaniak, MBA, CMCA® 2012 COMMITTEE CHAIRS 3 President’s Message COMMUNITY OUTREACH Meigan Everett, CMCA®, Power Property Management EDUCATION NOTEWORTHY Gregg Lotane, CCAM®, PCAM®, The Wilshire Condominiums FINANCE 20 Homeowners Association Marketplace Jolen Zeroski, CMCA®, Union Bank GOLF TOURNAMENT 26 Wine Night Highlights Teresa Agnew, Gifted... creative marketing solutions Daisy Vasquez, Securitas Security Services USA, Inc. LEGISLATIVE ACTION FYI Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE 30 CAI-GLAC Membership News Catherine Gemind, CMCA®, AMS®, PCAM® Valencia Management Group 32 2012 Upcoming Events April Tronson Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley 32 Advertisers Index MEMBERSHIP Vanessa Acosta, Mission Valley Bank 32 Advertising Information Carol Brockhouse, AMS®, Rockpointe HOA On the Cover MEDIATION SERVICES Doheny West Towers HOA Matthew Grode, Esq., Gibbs, Giden, Locher, Turner & Senet, LLP Save the Date: Cas ino Night Photo Courtesy of PROGRAMS/LUNCHEONS Wes Frye Photography Linda Healey, PCAM®, The Californian on Willshire November 3 PUBLIC RELATIONS Robert Gavela, Park West Landscape Maintenance PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine This publication seeks to provide CAI-GLAC’s membership with Sherry Branson, Kevin Davis Insurance Services information on community association issues. Authors are Matthew Gardner, Esq., Richardson Harman Ober PC responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. CAI-GLAC STAY CONNECTED: Membership Directory Stephen S. Grane, Alante/MCS Insurance Services does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association those statements. By submission of editorial content to CAI-GLAC, the author acknowledges and agrees to abide by the editorial and SATELLITE PROGRAMS Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, policy guidelines. Copyright © 2012. Valencia Management Group All rights reserved. Reproduction in whole or in part without written Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, permission is prohibited. CAI is a national, not-for-profit association International Tower Owners Assn. created in 1973 to educate and represent America’s residential SOCIAL community association industry. 130 N. Brand Blvd., Ste. 305 Pamella De Armas, SAX Insurance Agency, Inc. Glendale, CA 91203 National Office Address: Alba Monroy, ABM Property Management Office: 818-500-8636 6402 Arlington Blvd. #500, Falls Church, VA 22042 Fax: 818-500-8638 WINE NIGHT Tel: 888/224-4321 • Web Site: http://www.caionline.org Joanne Pena, CCAM, CMCA, AMS, PCAM, Horizon Management Co. Jolen Zeroski, CMCA®, Union Bank CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 1 2012 CAI-GLAC Super Sponsors PLATINUM Anderson Group Int’l Restoration & daunting prospect since the rules and Remediation Contractor requirements change on a regular basis. Animal & Insect Pest Management, Inc. Natalie Stewart provides the latest Duramax Building Products news and insightful information which Pacific Western Bank will help to save associations time Payne Pest Management Get Your Game On! and money when it comes to the FHA Preferred Commercial Painting, Inc. approval process. R.W. Stein Painting, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP ALL HAS ARRIVED, THE SUMMER IS A big change in the world of GOLD over and the presidential election construction defect litigation has taken Beaumont Gitlin Tashjian Fis right around the corner! As place. Construction defect litigation Behr Paint Corp./THE HOME DEPOT USA usual, fall is a very busy time as summer has moved from civil courtrooms to CertaPro Painters Ltd. Farmers Insurance Group— comes to a close. It’s time again for the the world of binding arbitration. In his Steven G. Segal Insurance Agency, Inc. CAI Annual Homeowners Association article, Dennis Althouse, Esq. explains Fenceworks, Inc. Marketplace, and this year it proves to what this means to us. Fenton, Grant, Mayfield, Kaneda & Litt, LLP be better than ever. Ferris Painting, Inc. Preserving and protecting real First Bank Association Services estate values is now more Hi Tech Painting & Decorating, Inc. important than ever. How is Mutual of Omaha Bank/CondoCerts this accomplished? Deena PCW Contracting Services, Inc. Popular Association Banking Kanoff writes about all of NOTE Rodent Pest Technologies, Inc. FROM THE EDITOR’S DESK the things an association Ross Morgan & Company, Inc. needs to do to protect an Securitas Security Services USA, Inc. association’s property values Select Painting Finding new board members is through curb appeal and maintenance Sky Security Services, Inc. challenging at times for many planning. The Edward Group associations. A very helpful and SILVER Jim Griego then writes about preserving Accurate Termite & Pest Control informative article on ways to promote an association’s most valuable landscape Association Reserves, Inc. volunteerism at associations and to Collins Builders, Inc. asset—trees—through smart and encourage residents to sit on their Marina Landscape timely pruning. Painting Unlimited, Inc. boards is written by Alexandria Spargo. Reconstruction Experts, Inc. Have a safe autumn and enjoy the Protecting association assets is the Reserve Studies Incorporated educational seminars and Homeowners S.B.S. Lien Services focus of an article by Lisa Ann Rea, Association Marketplace. I look forward SAX Insurance Agency CMCA, AMS. Lisa writes about Stay Green Inc. to seeing you there! Swedelson & Gottlieb safeguarding associations from Three Phase Electric embezzlement and cyber crime, and — Sherry Branson Timothy Cline Insurance Agency, Inc. she gives tips on what associations Editor Union Bank should be doing in their quest to protect BRONZE themselves from crime. Action Duct Cleaning Company Advanced Painting, Wood Repair & Wrought Iron Navigating through the world of Berg Insurance Agency, Inc. City National Bank FHA mortgage regulations is a DM Construction Services LPS Field Services Mission Landscape Services Patriot Environmental Laboratory Services, Inc. Poindexter and Company, CPAs Professional Services Construction, Inc. Richardson Harman Ober PC Sherwin-Williams Paint Silldorf & Levine, LLP CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these We thank our 2012 sponsors who have made a substantial pages and assumes no responsibility for those statements. Authors are responsible for developing contribution to ensure our continued success this year. Contact the Chapter Office at 323-254-9526 to sponsor a the logic of their expressed opinions and for the authenticity of all facts presented in articles. program or an event.

2 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter Since we are clearly better working MESSAGE together towards a common goal, please FROM THE PRESIDENT join us for our annual CAI Legal Forum: California Communities on We came together this year to lend October 19, 2012 in Temecula. This our voices to the industry—and day-long legal forum will bring together Better. Sacramento listened. Our voices outstanding individuals from across the Together. (many from our chapter) joined as industry to facilitate education and one, leading to success, as evidenced understanding of the issues faced by Governor Brown signing AB 2273 daily by community managers and into law on September 7, 2012. The law homeowner volunteer leaders. Sessions as amended will require recordation will be led by government and industry of foreclosure within 30 days of the experts, including members of our great “Coming together is a beginning; sale of property within a common chapter. To learn more about the State keeping together is progress; working interest development. Moreover, the Legal Forum, or to register online, together is success.” — Henry Ford foreclosing parties must mail notice to please visit www.caionline.org/events/ the association within 15 days following CALaw. t’s true what they say, two heads are the date of the trustee’s sale, provided better than one. In the same vein, the association has recorded a request Let’s continue to strive toward industry Itwo-thousand(plus!) voices are for notification pursuant to amended excellence. clearly stronger as one, as demonstrated Civil Code Section 2924(b). This Because together, we are better. by the successful enactment of allows the association to gain almost Very truly yours, Assembly Bill 2273, the foreclosure immediate notice of the identity of the � Jeffrey A. Beaumont, Esq. notification bill that we co-sponsored new owner, allowing it to promptly levy 2012 Chapter President with the Conference of County Bar assessments. Under existing law, this Associations. process can take years!

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Approved by the Department of Real Estate as a proper use of associationassociation funds. To learn more about CAl’s newest service and Course fee includes coursecourse materials,materials, continentalcontinental breakfastbreakfast andand lunch. lunch. WorkshopsWorkshops areare how mediation can benefit you, call the held on Saturdays. Call the Chapter Office at at 323.254.9526 818.500.8636 for for a aWorkshop Workshop schedule. schedule. The location varies —- if ifyou you can can guarantee guarantee 10 10 attendees, attendees, we’ll we’ll come come toto your association! Chapter Office at 818-500-8636.

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 3 For Board Members: By Alexandria Spargo, CMCA® Ways To Promote Volunteerism

s a portfolio manager for 20 expectations associated with serving on the board in front of their neighbors and associations in the Los Angeles the board. peers can help the other homeowners area,A I am often asked, “How do we recognize all the hard work the board get more people to volunteer for the OFFER AN OLIVE puts in and, if not make them want to board?” This question is usually asked BRANCH TO “PROBLEM volunteer themselves, at least promote in exasperation by worn out board HOMEOWNERS” some appreciation! members. In many associations the same people volunteer over and over Every homeowners association has MAKE A GOOD FIRST and over again. In some instances this is at least one “problem owner” who IMPRESSION because the homeowner truly enjoys it. questions everything, quotes Civil Ask most homeowners about their first More often it is because they feel if they Code (sometimes correctly) and just interaction with the board of directors don’t do it, no one will. Board members generally gripes. As crazy as it sounds, and they’ll tell you it came in the form who serve for long periods of time often try to get these people to run for the of a violation letter. Make a better get burnt out and need a break. How do board! In my experience, most of first impression by putting together you get new people to step up to the plate these “problem owners” simply do not a welcoming committee. If putting and volunteer? Here are a few ideas. understand enough about the process. They do not understand why their together a committee is too formal for architectural request isn’t resolved your association, take it upon yourself LIFT THE VEIL overnight or why they cannot have an as a board member to say hello to the Many homeowners who are not actively eighteen-foot satellite dish nailed to the new neighbor and explain a little about involved in the community have no clue roof. Persuading them to run for the your community. Remember, each about what the board of directors actually board can do two important things: 1) homeowner is a potential volunteer. does. They know the basics: The board help them understand the complexity of As always, work with your manager sends violation letters about your barking the decisions the board makes, and 2) to come up with ways to promote and dog; they increase the assessments; add some fresh blood and perspective to implement volunteerism. If you have they make sure the lawn gets mowed. the mix. any good ideas, or if your community However, homeowners do not really has an innovative way of recruiting understand the details. I recently went GIVE RECOGNITION volunteers, I would love to hear about through my CAI course materials and FOR A JOB WELL DONE them. E-mail me at alexandria@ compiled a list of basic duties for each mpimail.net. director position. This brief description Next time you create your budget, allocate some funds for a community Alexandria Spargo is a is mailed to all the homeowners with community manager at the nomination forms. Homeowners party. At this party, set aside some Management Professionals, are more likely to volunteer if they have time to talk about all the board has Inc. She can be reached at a clear understanding of the duties and accomplished that year. A little public [email protected]. recognition can go a long way. Praising

4 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter CAI Membership Benefits for the HOA Volunteer Leader

is committed to helping zz An extensive Research Library antagonists at meetings, dealing CAI volunteers enrich their containing thousands of articles with renegade board members and communities. With membership in for reference. so much more. CAI, you also get the benefits of the zz A Discussion Board where you ■■ Fast Tracks—A CAI member Center for Community Association can find out how your peers are newsletter delivered monthly to your Volunteers (CCAV). Through this dealing with similar issues. in-box with industry and CAI news specialized member group, you can z that will keep you up to date on the learn about innovations in other z Homeowner orientation information to help you latest resources to help you better communities, access time and money- run your community. saving tools and information and have a better communicate roles ■ forum to share knowledge. and responsibilities with your ■ Local Seminars and Educational residents and board members. Expos— Our local chapter offers CREATE A CULTURE OF zz HOA member links—Visit the regular education programs geared KNOWLEDGE. While joining CAI toward community leaders. on your own is important, getting your websites of other CAI member ■ entire board connected to CAI is the communities and get ideas ■ Essentials of Community best way to ensure you are making on how to improve your own Association Leadership informed decisions—and an excellent communications with residents. Workshops—The Greater Los way to help your board members achieve ■■ Finding the Right Professional— Angeles Chapter is proud to offer the results, respect and recognition they Whether you are looking for its popular 8-hour HOA new board deserve. professional community managers, member orientation workshop facilitated by industry experts six Your community will be better served legal advice, a reserve study, technology, bank loans, an audit, times per year at various locations if board members come to your through Los Angeles County. This deliberations with the same knowledge, or insurance coverage, CAI is your portal to the professionals who serve workshop ($80 members, $100 information and perspective. CAI nonmembers) is approved by the membership for each board member is community associations. Go to www.cai-glac.org for a list of local California Department of Real the ideal way to provide support and Estate as a proper use of association resources to each dedicated volunteer, service providers dedicated to this industry. funds. It includes modules on and build consensus on critical fiduciary duty, rule enforcement, ■ governance issues. ■ Common Ground—An award- reserves, insurance, finance, HERE ARE THE SERVICES winning, bimonthly national maintenance and board meetings. magazine offering information on YOU’LL RECEIVE AS A CAI ■■ Advocacy Center—An online MEMBER: topical issues affecting you and your association. resource where you can find your ■■ Board Member Tool Kit—A “how- representatives, take part in calls to ■ to” kit filled with tools, knowledge ■ Focus Newsmagazine—An award- action that will help protect your and information that help you do winning, bi-monthly local chapter interests, and read about the latest a better job and make it easy to magazine offering information on bills before Congress. topical issues affecting you and your serve in your role as a community ■ association. ■ Member Discount Programs— association leader. Take advantage of our CAI Member ■ ■■ Online tools and resources— ■ Publications—Receive substantial Discount Programs. CAI members available 24 hours a day—including: discounts on more than 100 titles on receive exclusive discounted rates on a variety of topics, such as drafting z a wide array of products and services z Downloadable standardized and obtaining compliance with templates, sample notices, letters from participating companies including reasonable rules, evaluating reserves, Dell, DHL, Hertz, and more. and forms that can be adapted for hiring the right professionals and ■ use in virtually any community. more in our Bookstore. ■ CAI Direct Use our toll-free number z (888-224-4321) to get quick and z Governance questions and answers ■■ Minutes—A CCAV Governance —Find out specific information free assistance from our exceptional Newsletter—delivered bimonthly to customer care specialists who can related to governance issues your in-box with strategies, trends, (meetings, statutes, assessments point you toward the right resources and news on how to run better for your particular interests. and more) in your state. board meetings, tips on dealing with

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 5 Rights and Responsibilities PRINCIPLES FOR HOMEOWNERS & COMMUNITY LEADERS ORE than a destination at the end of communities an excellent opportunity ■■ Have your board vote to adopt Mthe day, a community is a place you for the kind of dialogue that facilitates a resolution endorsing Rights want to call home and where you feel awareness, builds consensus, and and Responsibilities for Better at home. There is a difference between promotes greater community Communities. The principles will be living in a community and being part involvement. more meaningful to homeowners of that community. Being part of a and community leaders if they are Once adopted, Rights and Responsibilities community means sharing with your formally adopted. will serve as an important guidepost for neighbors a common desire to promote all those involved in the community— harmony and contentment. ANNOUNCE YOUR board and committee members, COMMITMENT This goal is best achieved when managers, homeowners and non-owner homeowners, non-owner residents residents. The document will also serve Once you have adopted Rights and and association leaders recognize and as an excellent tool to educate new Responsibilities, please share the good accept their rights and responsibilities. homeowners and residents about their news with CAI by completing the In all cases, this entails striking a own rights and responsibilities. simple online adoption form at the CAI reasonable, logical balance between the National Website www.caionline.org. As greater numbers of associations adopt preferences of individual homeowners That way we know you have joined other Rights and Responsibilities—and adhere and the best interests of the community community associations realizing the to its principles—there will be less as a whole. It is with this challenge in benefits of enlightened governance and potential for conflict within communities. mind that Community Associations involved and engaged residents. Ultimately, this will improve the image of Institute (CAI) developed Rights and managed communities across the nation, Like any endeavor involving people, Responsibilities for Better Communities. leading more people to understand community living cannot be free of Community associations exist the nature and value of community conflict. Utopia does not exist. With all because they offer choices, lifestyles, association living. of their inherent advantages—and there amenities and efficiencies that people are many—community associations Adopting Rights and Responsibilities can value. Yet, with all of their inherent often face difficult issues. While also create positive publicity for your advantages, community associations adopting Rights and Responsibilities community—and reduce the kind of face complicated issues, none more will not eliminate all conflict, its negative publicity often created by conflict. common than the challenge of balancing adoption can stimulate communication, promote trust and cooperation, clarify the rights of the individual homeowner HOW YOU CAN MAKE IT HAPPEN with those of the community at large. expectations and build a greater sense Managing this critical and delicate Adopting Rights and Responsibilities for of community. CAI urges you to take balance is often the essence of effective Better Communities is easy! advantage of this opportunity. community leadership. ■■ Download the Rights and Responsibilities Rights and Responsibilities was document (PDF) from our chapter By encouraging community associations developed as an ideal standard to Website at www.cai-glac.org under the to adopt Rights and Responsibilities which communities could aspire, a For Homeowners section. for Better Communities, CAI strives goal-based statement of principles to promote harmony, community, ■■ Distribute the document throughout designed to foster harmonious, vibrant, responsible citizenship and effective your community, announcing and responsive and competent community leadership. In the process, we make publicizing where and when adoption associations. The principles were not life better for the more than 60 million will be considered. designed to be in complete harmony Americans who live in community with existing laws and regulations ■■ Explain why this is important to your associations. in 50 states, and in no way are they community and the benefits it can intended to subsume existing statutes. create. LET RIGHTS AND Where there are inconsistencies, RESPONSIBILITIES HELP ■■ Review and discuss the merits of the community associations should adhere YOUR COMMUNITY principles at an open meeting of your to the spirit and letter of all applicable The process of formally adopting board. laws. If you have a question, we suggest you consult with your attorney. Rights and Responsibilities will give ■■ Solicit input from homeowners.

6 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter COMMUNITY ASSOCIATIONS INSTITUTE Rights and Responsibilities for Better Communities Principles for Homeowners and Community Leaders Homeowners Have the Right To: 6. Personal privacy at home and during leisure time in the community. 1. A responsive and competent community association. 7. Take advantage of educational opportunities (e.g., publications, 2. Honest, fair and respectful treatment by community leaders and training workshops) that are directly related to their responsibili- managers. ties, and as approved by the association. 3. Participate in governing the community association by attending Community Leaders Have the Responsibility To: meetings, serving on committees and standing for election. 1. Fulfill their fiduciary duties to the community and exercise dis- 4. Access appropriate association books and records. cretion in a manner they reasonably believe to be in the best 5. Prudent expenditure of fees and other assessments. interests of the community. 6. Live in a community where the property is maintained according 2. Exercise sound business judgment and follow established man- to established standards. agement practices. 7. Fair treatment regarding financial and other association obliga- 3. Balance the needs and obligations of the community as a whole tions, including the opportunity to discuss payment plans and with those of individual homeowners and residents. options with the association before foreclosure is initiated. 4. Understand the association’s governing documents and become 8. Receive all documents that address rules and regulations govern- educated with respect to applicable state and local laws, and to ing the community association—if not prior to purchase and set- manage the community association accordingly. tlement by a real estate agent or attorney, then upon joining the 5. Establish committees or use other methods to obtain input from community. owners and non-owner residents. 9. Appeal to appropriate community leaders those decisions affect- 6. Conduct open, fair and well-publicized elections. ing non-routine financial responsibilities or property rights. 7. Welcome and educate new members of the community—owners Homeowners Have the Responsibility To: and non-owner residents alike. 1. Read and comply with the governing documents of the community. 8. Encourage input from residents on issues affecting them personal- 2. Maintain their property according to established standards. ly and the community as a whole. 3. Treat association leaders honestly and with respect. 9. Encourage events that foster neighborliness and a sense of com- munity. 4. Vote in community elections and on other issues. 10. Conduct business in a transparent manner when feasible and 5. Pay association assessments and charges on time. appropriate. 6. Contact association leaders or managers, if necessary, to discuss 11. Allow homeowners access to appropriate community records, financial obligations and alternative payment arrangements. when requested. 7. Request reconsideration of material decisions that personally 12. Collect all monies due from owners and non-owner residents. affect them. 13. Devise appropriate and reasonable arrangements, when needed 8. Provide current contact information to association leaders or man- and as feasible, to facilitate the ability of individual homeowners agers to help ensure they receive information from the community. to meet their financial obligations to the community. 9. Ensure that those who reside on their property (e.g., tenants, 14. Provide a process residents can use to appeal decisions affecting relatives, friends) adhere to all rules and regulations. their non-routine financial responsibilities or property rights— Community Leaders Have the Right To: where permitted by law and the association’s governing documents. 1. Expect owners and non-owner residents to meet their financial 15. Initiate foreclosure proceedings only as a measure of last resort. obligations to the community. 16. Make covenants, conditions and restrictions as understandable as 2. Expect residents to know and comply with the rules and regula- possible, adding clarifying “lay” language or supplementary mate- tions of the community and to stay informed by reading materi- rials when drafting or revising the documents. als provided by the association. 17. Provide complete and timely disclosure of personal and financial 3. Respectful and honest treatment from residents. conflicts of interest related to the actions of community leaders, e.g., officers, the board and committees. (Community associa- 4. Conduct meetings in a positive and constructive atmosphere. tions may want to develop a code of ethics.) 5. Receive support and constructive input from owners and non- owner residents.

Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, responsive, competent community associations. Founded in 1973, CAI represents association-governed communities, such as condominium and homeowner associations, cooperatives, and planned communities. To learn more about CAI and its local, regional and state chapters, visit www.caionline.org or call (888)224-4321. Sponsored by CAI’s President’s Club

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 7 Spyware can be difficult to detect and remove because it may not What’s Your Fraud IQ? degrade the performance of your system. It may not appear as a ▶▶▶By Lisa Ann Rea, AMS, CMCA running program in the Task Manager, and it either may not include afeguarding the funds of associations is a critical role a removal option, or may not remove all components when removal for association boards and community management is initiated. Scompanies entrusted to handle a community’s assets. Experts suggest that all computer users install adequate protection Those hired or elected for this key responsibility have the programs on your computer system, including firewalls, anti-virus daunting task of developing and implementing controls and anti-spyware software. It is imperative that these programs be designed to keep their association’s money secure. updated regularly, as new malware appears and is disseminated Businesses and organizations of all sizes are targeted by daily. Adjusting the browser settings to prompt the user whenever professional cyber criminals and embezzlement schemes a website tries to install a program or Active-X control is a great tip perpetrated by those with access to the financial information to lessens the likelihood of a computer takeover. of the entity; however, criminals recognize small companies The FDIC Web site (www.fdic.gov) offers a wealth of information and organizations tend to be more vulnerable due to limited on this and related topics. The FDIC has also produced an excellent resources. It is important for small organizations, such as video directed at consumers which is available on YouTube. Search association boards and management companies to recognize “Don’t be an Online Victim.” the inherent risk they face due to fewer resources. There are easy, low cost ways for associations and management companies While no method is foolproof, the diligent implementation of to avoid money being misappropriated from an association. risk based controls by those entrusted to manage an association’s funds is a key step in avoiding losses. Regular audits, consisting of AVOIDING EMBEZZLEMENT procedures that will prevent or identify inaccurate, incomplete, or Experts recommend companies and organizations review financial unauthorized transactions will help safeguard an association’s assets. records and bank statements on a monthly basis. It is essential to I have been asked by an insurance agent to remind board members develop processes and procedures requiring the involvement of and managers to contact their insurance carriers for information on more than one individual. It can be as simple as assigning one person specific coverage for cyber theft/crime. This is typically an added rider to write checks, another to reconcile bank records and financials, at a reasonable cost… certainly worth it in the event the worst happens. and a third person to review invoices to determine if the payment amount and recipient can be validated. Keeping the checkbook or Lisa Ann Rea is a vice president at Mutual of Omaha Bank/CondoCerts. She can be reached at [email protected]. check stock in the possession of someone other than the check signer is another suggested control designed to minimize risk. Board members are advised to request online view access to their bank accounts with their financial institution to validate the transactions posting to their bank accounts. Regular reconcilement of bank account activity and the association’s financials, along with the separation of duties is a low cost and effective method to reduce the likelihood of embezzlement. AVOIDING CYBER CRIME Community Association Loans Cyber crime occurs when the victim’s computer is the tool used in All the right tools for your next project. a theft. Experts advise all those responsible for an organization’s computers establish and maintain controls to restrict users from How will you fund your next community project? Get the job done right with the Community Association Loan toolkit. You’ll get custom downloading software from the Internet. It is highly recommended financing that’s perfect for your budget and your community. that computer users not open e-mails or attachments or click links. Your Community Association Loan toolkit includes: • Competitive interest rates • Flexible payment plans Victims of cyber crime are often targeted by the introduction of • Innovative loan structures • Fixed rate loans malware, including spyware, Trojan Horse programs, and • Non-revolving lines of credit keystroke loggers onto their computer system. The malware gives Get the cash you need today. criminals access to a user’s computer. The malware loaded onto a Lisa Ann Rea CMCA AMS computer can be received from a number of sources. It can be Regional Account Executive 805.907.8452 downloaded with other Internet downloads, called “bundling,” Toll Free 866.800.4656, ext. 7500 even in accordance with terms of a licensing agreement. It can be [email protected] directly downloaded by an unsuspecting user who may perceive a benefit to the technology. Free screen savers or programs which

claim to improve computer efficiency or virus scanning are Member FDIC • Equal Housing Lender often a method used by cyber criminals to introduce malware. National Corporate Member of Community Associations Institute AFN44766_0512

8 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter Ross Morgan Full Page Ad - 3-2012 AH.pdf 1 3/22/2012 1:29:49 PM

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CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 9 ABOUT FHA BY NATALIE STEWART ■ APPROVAL IN 2010, THE FHA MADE SIGNIFICANT CHANGES TO THE WAY THEY APPROACH INSURING MORTGAGES FOR LOANS MADE TO PURCHASE CONDOMINIUMS. PRIOR TO THIS DATE, CONDOMINIUM COMMUNITIES WERE GIVEN AN “FHA MAJOR ISSUES AFFECTING APPROVAL When discussing the FHA guidelines, community managers APPROVAL” STATUS THAT NEVER EXPIRED. IF A COMPLEX are typically aware of the major eligibility requirements. WAS NOT APPROVED, LENDERS WERE ABLE TO “SPOT Delinquency rates and owner occupancy limits typically come APPROVE” SINGLE UNITS WITHIN IT. FHA FINANCING, AND to mind. And while those requirements are very important, REVERSE MORTGAGES WERE AVAILABLE TO ANY UNIT THAT there are other issues that can be more challenging to overcome. These are issues within the governing documents themselves. WAS APPROVED USING THESE METHODS. IN 2010, THE Anyone who has tried to restate and re-record a section of FHA CREATED A NEW, STRICTER SET OF GUIDELINES FOR CC&Rs will know how challenging it can be. The meetings, CONDOMINIUM COMMUNITIES THAT ARE NOW IN EFFECT. mailings, voting requirements, and not to mention the attorney’s ONCE APPROVED, A COMMUNITY WILL HAVE AN EXPIRATION fees, can be costly and time consuming. Unfortunately for many communities, their governing documents may preclude them DATE TWO YEARS FROM THE DATE OF APPROVAL. AT THAT from ever achieving FHA approval, unless properly amended and POINT THE COMMUNITY MUST REAPPLY WITH THE FHA. re-recorded. Here are examples:

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10 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter LEASING RESTRICTIONS: Live/Work Units and Mixed-Use Developments: The conditions set forth for live/work units and mixed-use properties The FHA does NOT allow for the following leasing restrictions have prevented many communities from becoming FHA-approved. within the CC&Rs: The main reason involves the following requirements: • The condominium association may not prohibit leasing altogether. • The condominium declaration must state that the non-residential • The condominium association may not require that a prospective (work) space may not exceed 25% of the unit’s total floor area. tenant be approved by the condominium association and/or its agent(s), including but not limited to meeting creditworthy standards. • The work space may not exceed 25% of the project’s total floor area. • Leasing restrictions that allow for a rental period of less than 30 days. Although many condominiums meet the 25% requirements, it • Leasing restriction that includes an age restriction. is rare to find this stated in the governing documents. All live/ work or mixed-use developments must have the above verbiage At first glance, you might think your community is okay. within their CC&Rs or must amend them accordingly. There And even if these restrictions are in the CC&Rs the board of are currently rumors of changes regarding these requirements, directors does not enforce them, so it should be fine… Right? but we have yet to see them. Wrong! The FHA will not budge on these. The only way to remedy this situation would be to amend the CC&Rs and Affordable Housing modify the leasing restriction to meet the FHA’s criteria. Condominium associations with affordable housing units must also meet specific requirements. Having affordable housing Age Restrictions units does not ruin your chances of obtaining FHA approval, The FHA will not approve a community with an age restriction. but the following requirements have to be met: Senior communities are permitted; however, the CC&Rs must • The government or eligible nonprofit program restriction meets the state that the community is intended for age 55 plus. Simply exceptions defined in 24 CFR 203.41(c) and (d); or stating “Adult Community” is not sufficient, and prohibiting • The recorded condominium declarations contain the affordable children or people under a specified age will prevent a community housing program requirements, including defining the specific units from achieving FHA approval. The FHA believes that these types that are covered under the program. of restrictions are clear violations of Fair Housing laws, and they Affordable housing restrictions are very common, although the will need to be officially amended and re-recorded. specific units are not always called out in the CC&Rs. Often the CC&Rs read that a certain percentage of the units must be sold as affordable housing units. If the units are not defined within the recorded condominium declarations, an amendment to the legal documents must be prepared and recorded. Another option is to record an executed (signed and dated) document identifying the affordable units issued by the Affordable Housing Program’s staff. Summary Communities are often unaware that their CC&Rs contain some of these restrictions. In many cases the governing documents were created more than 40 years ago and contain outdated information. The FHA does not allow for shortcuts. Board resolutions and letters from attorneys are not sufficient. The documents must be amended and recorded. Knowing the FHA guidelines and how they relate to a community’s governing documents is an important aspect of the FHA approval process. Many HOAs enter into contracts, raise fidelity bonds, write off delinquent accounts, and spend association funds just to find out they will be rejected based on their governing documents. Amending the governing documents is a big decision for a community, and the process takes many months and considerable funds. If you manage any condominium associations, it is highly recommended to have your communities pre- qualified for FHA approval. Natalie Stewart is the president of FHA Review, which is a division of Association Vendor Solutions. She has been involved in the HOA industry for over 10 years and can be reached at [email protected].

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 11 respond to that bill as a unified front. Informally, leaders of CAI in California went to Sacramento to oppose the bill, and NEWS were successful - the bill did not pass. In this process it became FROM SACRAMENTO apparent that while the legislators were aware of HOAs, it was usually from a negative perspective —the perceived problems and ills of community associations. In the mid 1980’s, CAI leaders in California decided to organize a group that could be History of CLAC Series more cohesive in responding to legislation introduced in the INTERVIEW WITH California legislature. They met in the San Fernando Valley to DICK FIORE — CLAC CHAIR discuss the formation of an organization that ultimately became FROM 1991-1994 the CAI California Legislative Action Committee (CLAC). Its initial organizational structure remains largely in place today, How did you first get involved with with two delegates from each chapter and additional at-large the California Legislative Action delegates. Though not yet very active in CAI, I attended the Committee? organizational meeting, and later became a delegate. In the early 1980’s interest developed California formed CAI’s first Legislative Action Committee. An in providing legislative advocacy for initial role of the committee was to educate legislators about CAI’s members in California. This community associations – especially the benefits. We offered was due, in part, to the California ourselves as a resource. We were not in a position at the time to Association of Realtors introducing a bill in the legislature propose legislation, but were able to have some input on pending that would have required all association property managers to legislation. The delegates would go to Sacramento annually and be licensed as real estate brokers. CAI was strongly opposed, walk the halls and talk to legislators. Term limits had not yet as the skill set for being a realtor and being a property or been enacted, so many of the legislators had been there for years association manager were quite different, and CAI did not (some on the all-important Housing Committee). CLAC began feel a real estate licensing requirement would ultimately serve to make an impact with these annual visits as well as its members. However, no organizational structure existed to communications with legislators in the interim.

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12 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter CAI National was originally not sure how to react or interact What were your “dreams” for the organization at that point? with CLAC. Initially, CAI National gave CLAC an annual As CLAC’s Chair, I had an overall goal to “beef up” the finances $3,000 stipend which was used to retain a firm in Sacramento to and organizational structure of CLAC. We prepared a position provide administrative services – organizing monthly telephonic paper and presented it to CAI National in 1991, which proposed meetings, preparing written agendas, arranging for a room that each member of CAI in California contribute $15 per year for our meetings in Sacramento, etc., which helped CLAC to to support CLAC and legislative action, and that, if CLAC become more organized. could receive $15 per member, it would not need the $3,000 What made this organization something that you considered annual stipend from CAI National. The proposal was approved valuable enough to spend your time and energy on? by the Board of Trustees so we were able to develop additional funding for CLAC and its legislative activities in Sacramento. As a lawyer interested in the legal process, I found that, of the various opportunities for involvement in CAI, legislation was Realizing that we needed a stronger administrative staff, as the one that interested me the most, and the one where I felt I well as someone who could provide advocacy in Sacramento, could make the most significant contribution. I also enjoyed we prepared an RFP and sent it to several administrative and working with other leaders in CAI – some of whom were advocacy firms in Sacramento. Skip Daum, CLAC’s current members of CLAC and leaders in their chapters. advocate, was one of those who received and responded to the request for proposal. My firm began the practice of community association law in the 1970’s. I found I really enjoyed being involved in Many things in Skip’s initial proposal appealed to us: cost, an industry that included a variety of people from various availability, and how interested and excited Skip was about occupations, not just lawyers. I liked the environment and the CAI and CLAC on paper. I interviewed Skip in San Francisco industry. CAI was the only formal organization at the time at a CAI law conference and felt that he could provide the promoting the growth of the community association industry administrative services that CLAC needed as well as be an as a whole, and I felt it was a good organization to participate effective advocate for CLAC. Skip saw CLAC as a client that in as it focused on education and programs designed to enable had the opportunity for long-term growth and purpose. He all its members to improve their own skills and better serve made us feel like we were not just another client. their clients. CONTINUED ON PAGE 14

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 13 NEWS FROM SACRAMENTO: Interview with Dick Fiore CONTINUED FROM PAGE 13

Skip helped to provide input on pending legislation while programs for CAI members at the Legislative Day at the CLAC committee members were spread out over the state. He Capitol, are part of what we had hoped would come from provided organization in grassroots letter-writing and getting CLAC’s growth and increasing importance in CAI and in the word out to California’s CAI members. Skip also helped Sacramento. with marketing CLAC to legislators by pointing out that What is the one main thing you think will help this organization HOAs represented six million homeowners… who vote! move forward from where it is today, and continue to be a strong Which of those dreams were easier to fulfill than others? Why? voice for homeowners, managers and business partners in the community association industry? Once we obtained approval of the $15 per member contribution from CAI National to fund CLAC, and Skip I think CLAC will benefit by working together with other Daum came on board, we were able to improve our finances, organizations as much as possible. Maintaining open organization, marketing, and communication with legislators communication is important to building partnerships that can regarding community associations, and our goal of being an make a difference in Sacramento. effective resource to legislators became much more of a reality. Looking back and forward, I can truly say: CLAC is effective Without membership funding and Skip’s support, those things – it should continue to do what it is doing. would have been much harder to accomplish. Richard Fiore is the president, founder and managing director of Fiore Racobs Which of those dreams were harder to fulfill than others? Why? & Powers law firm, specializing in providing legal services to community associations. He can be reached at [email protected]. A challenge we had at the outset was getting CAI National to recognize the importance of legislative action at the state level. While CAI National, through its Public Policy Committee and Board of Trustees, had adopted and published public policies, it really had no effective structure in place to pursue those policies at the state level. Today, legislative action at the state level is a cornerstone of what CAI offers its members across the country. Another challenge early on was to convince each of the eight California CAI chapters to approve the $15 per member per year CLAC contribution, which National required before it would give its approval. A challenge that will probably always exist is that it is harder to have the “ear” of legislators in Sacramento because CAI and CLAC do not contribute to their campaigns. Early on, CLAC provided information and educational material to legislators about homeowners associations, but it was not as easy to get them to turn to CLAC for counsel on pending legislation as it would have been if it had contributed to their campaigns. With the development of CLAC’s stature and presence in Sacramento over time, this has become less of a challenge in recent years. How has the path diverged from your previous vision? Why do you think it changed course? It hasn’t really diverged… it has merely expanded along the path I had pretty much envisioned. CLAC activities that have been added in more recent years, like the educational

14 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter OUR THANKS TO 2012 CLAC CONTRIBUTORS JANUARY 1 – AUGUST 31, 2012

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CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 15 Construction Defect Litigation Has Reached Its Pinnacle – And Now Moves To Arbitration By Dennis L. Althouse, Esq.

ith its recent decision in Pinnacle Museum Tower Association v. Pinnacle Market Development (US) LLC,W et al. (2012 WL 3516134), the California Supreme Court has decisively moved the forum of construction defect litigation from civil courtrooms to the relatively unknown world of binding arbitration and private arbitrators. Before Pinnacle, associations seeking redress for construction defects had been able to pursue those claims in civil courtrooms, regardless of the provisions calling for binding arbitration in CC&Rs and purchase agreements. This was true

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16 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter despite the fact that developers had been trying for years to move such claims to binding arbitration by placing irrevocable binding arbitration provisions in CC&Rs and purchase agreements. Prior to Pinnacle, these efforts had uniformly failed. (See, Villa Milano Homeowners Assn. v. Il Davorge (2000), 84 Cal.App.4th 819) In Pinnacle, the Supreme Court held that binding arbitration provisions within CC&Rs are enforceable against associations, thereby disapproving Villa Milano. In reaching its decision, the Court decided that an association, although not yet formed and, once formed, completely under the control of the developer, can consent to waive its right to a jury trial and agree to binding arbitration of construction defect disputes. In reaching its decision, the Supreme Court looked at three major issues: 1) the rules governing compelled arbitration of claims; 2) the principles relating to the contractual nature of CC&Rs recorded pursuant to the Davis-Stirling Act; and 3) the doctrine of unconscionability. We look at each briefly in turn.

1. The Rules Governing Compelled Arbitration. The CC&Rs in Pinnacle stated that construction disputes were to be resolved by binding arbitration pursuant to the CONTINUED ON PAGE 16

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 17 Construction Defect Litigation Has Reached Its Here, the Court leaned heavily on the theory that owners Pinnacle… had expectations, derived from the CC&Rs, that any CONTINUED FROM PAGE 17 construction defect dispute would be arbitrated. Giving force to arbitration clauses, it reasoned, protects owners’ Federal Arbitration Act (“FAA”; 9 U.S. C. §1 et seq.) and the expectations, the community as a whole and the developer. California Arbitration Act. (“CAA”; Code of Civil Procedure § In light of these expectations, the Court held the terms in the 1280, et seq.) Since the FAA applies in any instance involving CC&Rs reflected written promises and agreements that are interstate commerce, and given the liberal policy favoring enforceable against the association. arbitration, exceptions from FAA are rare. Added to this is the FAA’s pre-emption of state laws which discriminate against 3. Contractual Unconscionability. arbitration. With the latter in mind, the Supreme Court also ruled out the application of Code of Civil Procedure § 1298.7, The closing analysis addresses whether an arbitration which excludes construction defect claims from arbitration provision may be unenforceable due to contractual in real estate contract arbitration. Thus, the Court decided unconscioniability. In California, there are two kinds of that the principles of general contract law would determine contractual unconscionability — procedural and substantive. whether the binding arbitration provision was enforceable. Procedural unconsionability concerns the circumstances of contract negotiation and formation, focusing on oppression or 2. The Contractual Nature of CC&Rs. surprise due to uneven bargaining power. (See Armendariz v. In reviewing CC&Rs, the Court distinguished between Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, what is required to be included in CC&Rs and what could 114.) Substantive unconscionability concerns the fairness of be. In drawing this distinction, the Court noted that that a the actual terms of the agreement and whether they are overly developer may include “any other matters the original signator harsh or one-sided. (Armendariz at 114.) However, to be deemed of the declaration [e.g., the developer] or the owners consider substantively unconscionable, the term must be “so one-sided appropriate.” (Civil Code § 1353 (b).; Cal.Code Regs., tit. 10, as to ‘shock the conscience.’” (24 Hour Fitness, Inc. v. Superior § 2792.8 (a).) In other words, if developers want something in Court (1998) 66 Cal.App.4th 1199, 1213.) The party resisting CC&Rs, as long as it is not unreasonable, it is enforceable. arbitration has the burden of proving unconscionability.

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18 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter Here, there was no surprise and the arbitration provisions did not “shock the conscious.” Further, since the developer procedurally complied with the Davis-Stirling Specialized banking for Act in preparing the CC&Rs, the claim of procedural community associations & unconscionability was rejected. management professionals So what, really, does this mean for associations? If your association is more than 10 years old it means nothing as your association’s construction claims, if any, are already barred by the applicable statutes of limitations. AssociAtion BAnk seRVices The associations which will be affected most by this decision • Operating and Reserve Checking are those in the initial stages of pursuing a construction defect • Association Loans claim or who are considering such a claim. While the decision • CD Placement Services does not change the pre-litigation (now pre-arbitration) steps • Business Online Banking outlined in Civil Code §§ 895, et seq. or 1375, it decidedly • Remote Deposit changes the forum in which the claims will be tried • Automated Lockbox Services and decided. • Automatic Assessment Payments Dennis L. Althouse, Esq., a partner with Richardson • Simplified Association Signature Cards Harman Ober PC, has extensive experience in handling construction defect, real estate and business litigation. He can be reached at [email protected]. Judy Remley, Vice President 2797 Agoura Rd., Westlake Village, CA 91361 (888) 539-9616 [email protected] www.FirstBankHOA.com

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CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 21 “Preserve and Protect” Property Maintenance By Deena Kanoff n these economically-challenged ASSESSMENTS times, how does a board of directors “You get what you pay for” maximize its hard-earned reserve I The most direct correlation for a dollar? The board targets obvious problems relating to maintenance community may be between its property issues and fixes them. When it comes values and its assessment level. It’s not to increasing and maximizing property that people have to be convinced that values, that’s a lesson any community a higher assessment rate always equals can apply. higher values, but rather, they usually have to be convinced that a lesser rate Here are a few places to start: doesn’t equal higher values. VISIBILITY There’s a mindset among owners that if A question to ask yourself — How an assessment fee is too high, it is going desirable is your community to live in? to (adversely) affect the value of the units and turn away potential buyers. New or potential owners are often influenced by something as tangible as In fact, whatever superficial appeal your good old-fashioned curb appeal, or what community tries to gain from keeping they see when they first look around. its assessments too low is quickly The first key to strong property values squandered away by the damage of is, therefore, also the most obvious: an underfunded budget and a reactive keep your focal points well-maintained! maintenance program that simply

22 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter cannot address the repair maintenance needs throughout the prioritized to insure the most important issues are addressed community. starting with life/safety and health. Simply stated: If you do not have enough money in your A well-maintained property is key! reserves to take care of maintenance issues within the There should be short-term and long-term goals set up during community, all you do is begin to attract similar buyers in the the project’s planning phase that identifies the remaining marketplace who are interested in perpetuating the same low, useful life of common area components and components that depleted reserve budget. Maintenance issues become worse, are beyond repair and should be replaced. This is the most and available funding becomes non-existent, which equals a cost-effective way to maintain the community, reduce resident very bad combination in maintaining property values. complaints and maintain property values. Your property is the The association needs an annual “cost of living raise” in most valuable investment. order to maintain the integrity of the components within This well-forecasted, disciplined planning program offers the community. When you have an assessment rate that is greater economic return, and in turn, money in the bank. realistic, the other financial objectives will fall into place: Global planning can provide a framework of strategies and a full operating budget, necessary to maintain the building endpoints joining one board to the next, as well as stability, structures and repair issues within the community and even when board members leave and new ones come on board. common areas. It is easier to move forward with repairs when you have readily-available funding. Board members need to see the big picture and how a properly-maintained property is clearly the most economical PLANNING choice in preserving their maintenance dollar! Tomorrow is a new day, but so is the “day after” COMMUNICATION In today’s economy, can you plan for property values to go “Hear Ye—Hear Ye” up…or down? Assuming your board sees the big picture and your association Even with a crystal ball, you cannot determine what will be. is doing well, the important question is: “Do your residents What you can do is implement all common area repairs that all know what is going on in the association”? Do they know enhance property values. At the same time, work should be about the improvements and how maintenance dollars are being spent wisely now in order to secure the future maintenance integrity of the property? How about prospective buyers? By nature, people don’t usually seek out good news; you have to deliver it to them! A newsletter that features the maintenance planning and upcoming projects helps in sending a positive message. A friendly and inviting newsletter would increase the chances of a potential new buyer wanting to purchase into that particular community. A newsletter is a great tool to review the accomplishments of the previous year, and it also helps to forecast what’s to come. This type of “community tracking” aids the HOA in keeping the maintenance schedules up-to-date and is a way to address future needs within the community. In today’s real estate arena, with so many properties on the market, you have to create a way to stand out from the rest and provide information of what’s going on in your community. Whether it is capital improvement programs or full maintenance renovations that are taking place, “keeping the community involved” adds to the “emotional value” of the community and promotes a positive community experience. Deena Kanoff is the director of business development at Jon Wayne Construction and Consulting. She can be reached at [email protected].

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 23 Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets MAKE THE CUT WITH rofessional pruning keeps an HOA community’s trees healthier and better looking today, and it can prevent all sorts of problems in the PROFESSIONAL PRUNING future. Depending on the age, size, species, condition and location of Ptrees, a variety of pruning techniques may be utilized. By Jimmy Griego Tree care professionals should always take HOA board and manager objectives and budget into consideration before recommending any type of pruning at a community. To help managers make a more informed decision, here are some explanations of the various pruning types available.

24 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter CLEARANCE PRUNING: Lower limbs are elevated so that PROACTIVE APPROACH TO PLANT HEALTH signage, structures, roadways and walkways are It’s a fact: healthy trees are less likely to suffer damage from not blocked. insects and diseases. To keep a property’s trees at the peak PRUNING FOR PLANT HEALTH: Diseased or pest- of health, consider instituting an ongoing Plant Healthcare infested branches are removed to reduce pesticide use and program. prevent the problem from spreading to healthy parts of Inspections are critical to ensuring maximum plant health. the tree. More than just a “walk-through,” Plant Healthcare inspections PRUNING TO PROTECT STRUCTURES: Branches that provide a systematic and scientific approach to safeguarding rub against walls or windows are removed to prevent a property’s trees. The first step is to identify the tree friction damage. This also helps to reduce pest access to species and varieties present in a landscape. Environmental buildings. conditions must be considered because they may be affecting trees. These include: HAZARD REDUCTION PRUNING: Dead, dying, broken • Soil type or hanging branches are removed to prevent them from falling and causing property damage or personal injury. • Soil compaction • Watering patterns PRUNING TO PREVENT STORM DAMAGE: Selected interior branches are pruned to reduce the potential for • Rainfall (or lack thereof) branch breakage. This allows for better wind flow through • Mechanical damage the canopy, decreasing wind resistance. • Branch breakage from excessive fruiting MAINTENANCE PRUNING: Selected branches are • Damage from rodents or other animals removed to give the tree the desired shape and to • Evidence of previous insect or disease activity promote good air movement and light distribution Timing makes a significant difference to determine when throughout the canopy. This also helps to control and what action is required. If inspections reveal a past or growth in limited spaces. potential threat to tree health, prompt action can prevent CONTINUED ON PAGE 26

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 25 Protecting and Preserving an HOA Property’s Most Valuable Landscape Assets CONTINUED FROM PAGE 25 major and potentially costly problems from occurring down the road. Recommendations should be based on the unique needs of an HOA’s specific trees. For example: • Trees at risk of branch breakage due to excessive fruit production may benefit from growth-regulating spray treatments. • If signs of disease activity are present, a bark injection of systemic fungicide may be necessary. Through Plant Healthcare programs, knowledgeable and experienced tree care specialists can provide quick response and equipment necessary for beautiful, healthy trees year-round. nearby structures. This is a difficult and dangerous operation that TREE REMOVAL SERVICES requires attention to detail from start to finish, including: In the instance when tree care professionals have exhausted • Clearance of the surrounding area for branches and tree every solution possible to save trees, circumstances beyond trunks to fall. their control can sometimes lead to tree death or decline. This • Use of ropes to guide large branches after cutting. can cause serious liability on a property, making removal the • Stump grinding/removal once the tree has been cut down. only option. • Proper and timely disposal of branches and trunk so that If removal is necessary, experience is a key differentiator. Tree normal activities can resume as quickly as possible at a removal specialists should be trained how to remove trees properly community. and safely, without injury or damage to surrounding plants and • Full compliance with all national and local safety regulations.

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26 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter PRUNE TO MAXIMIZE PALM POTENTIAL tailored to match the age, size, condition and location of the Palm health, beauty and safety can all be compromised palms on a property. without pruning on a regular basis. To keep a community’s By adhering to the tree care industry’s best practices for tree palms in top shape, follow simple tree care industry best pruning, health, or removal, tree care services providers are practices for pruning. able to make a dramatic impact on the appearance and safety This includes focusing palm pruning efforts where new of an HOA community. growth occurs at the large terminal bud at the top of the tree. Jimmy Griego is a business developer with ValleyCrest As new fronds develop, older (and lower) fronds dry out. Also, Landscape Tree Care Service. He can be reached at remove dead fronds, along with any seed stalks, fruit stalks or [email protected]. frond stubs. These steps result in the following: • Decrease the risk of pest or fire damage (which can increase when dead fronds are left in palms). • Improve the appearance of palms and the overall landscape (some palms will retain dead fronds for years if they aren’t removed). • Make an HOA property safer (certain palm varieties will shed old fronds, seeds and fruit, which can cause personal injury or property damage). Palms rely on green, healthy fronds to produce food for new growth, so avoid removing them whenever possible. One exception is when healthy fronds are interfering with traffic, blocking signage or encroaching on building structures. These fronds may be removed for clearance purposes. As with any of the tree care services provided, the pruning done is custom-

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A Funwas Time had Hot by All! W August ine Saturday, Night August 18, 2012 at the Garden of the Rosenthal-Malibu Estate Wine Tasting Room

eventy CAI-GLAC Chapter members and friends attended the “Hot August Wine Night” wine tasting on August 18 in Thanks to our Sponsors Malibu to benefit our California Legislative Action Committee CORPORATE SPONSOR S(CLAC) in Sacramento. Everyone loved the casual atmosphere with Horizon Management Company great conversation, wonderful Rosenthal wines and gourmet tacos catered by Komodo. We couldn’t have done it without the generous HORS D’OEUVRES SPONSORS sponsorship of those companies listed on this page. Our thanks also Data Systems Services to the Wine Night Committee: Joanne Pena, ccam®, cmca®, ams®, Heritage Construction pcam® (Horizon Management), Jolen Zeroski, cmca® (Union Bank) Taylor Painting and Roofing and Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP) for their planning and production. This evening’s success allowed us to WINE BASKET SPONSOR send $4,026 to CLAC toward our annual contribution goal. AMARR Studios

28 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 29 Do You Need Reserve Budget and Disclosure Solutions? Hire the experts at...

CAI-GLAC Community Outreach Committee Delivers School Supply Collection to Operation School Bell Meigan Everett (Gold Coast Property Pros) and Jeanie LaCroix (BELFOR Property Restoration) delivered school supplies donated by CAI-GLAC members to Operation School Bell headquarters and helped package them for the children. Operation School Bell is a non-profit organization Call or go to our website for more • Save Money with our 3-year plan that provides school supplies to low-income children • Access your Reserve Study Online information, samples or Free bid throughout the Los Angeles area. Each year nearly 6,000 • See a Video of your results 800.733.1365 • Free preparation of Disclosure www.reservestudy.com LAUSD children ages 4-18 visit one of two Operation School Form 1365.2.5 Bell facilities to receive much-needed clothing, supplies, and shoes, giving them a valuable opportunity to improve school attendance and enhance their self-esteem.

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Leadership Workshop on September 15 to learn about their HIGH RISE • DECK SYSTEMS, REPAIRS & MAINTENANCE roles as community leaders. Topics included fiduciary duty, • WINDOW & DOOR REPLACEMENT rule enforcement, finances, insurance, maintenance and board • STUCCO, MASONRY & EFIS meetings. Go to www.cai-glac.org to learn more about our • PAINTING & EXTERIOR COATINGS educational opportunities. • CONCRETE, ASPHALT & EPOXY INJECTION COMMERCIAL • POOL AND SPA REPAIRS & REPLACEMENT

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CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 31 Oct. 19, 2012 | Temecula, CA cai Legal Forum california communities a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development. Critical updates on important legal requirements that impact how you work. Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee

CAI LEGAL FORUM: California Communities Oct. 19, 2012 | Temecula, CA EXHIBITORS EVENT SPONSORS Accurate Termite & Pest Control La Rocque Better Roofs, Inc. Adams Kessler PLC McDonnell Roofing, Inc. EVENT American Geotechnical Mutual of Omaha Bank: Community Association McDonnell Roofing, Inc. AMS Paving, Inc. Banking/CondoCerts Association Lien Services Pacific Western Bank caiNAME BADGES AT & T Connected Communities PCW Contracting Services, Inc. Richardson Harman Ober PC ATC Assessment Collection Group Popular Association Banking Beaumont Gitlin Tashjian Prendiville Insurance Agency PrimeCo Painting & Construction TOTE BAG Cardinal Property Management, CMF LegalCertaPro Painters, Ltd. Rey Insurance Services, Inc. Amber Property Management CommerceWest Bank, N.A. Richardson Harman Ober PC Boyd & Associates Common Area Maintenance Services, Inc. Roseman & Associates, APC Professional Community Management Design Build Associates SCT Reserve Consultants, Inc. Diversified Waterscapes, Inc. Seacoast Commerce Bank Seacoast Commerce Bank DM Construction Services Securitas Security Services USA, Inc. Dunn-Edwards Corporation South Shore Building Services, Inc. FoCOCKTAIL RECEPTIONrumElliott Katzovitz Insurance Agency Sunwest Bank california communities Associa Empire Painting & Construction The Inspectors of Election The Judge Law Firm, LLC a one-day event for california community managers,ePipe Restoration association board Three Phase Electric membersNETWORKING and other BREAKFAST homeowners from communityEpsten Grinnell associations & Howell APC institute—the Fenceworks, Inc. Timothy Cline Insurance Agency, Inc. Cardinalleader in Property HOa education, Management, advocacy CMF and professional development. Fenton Grant Mayfield Kaneda & Litt, LLP U.S. Bank CriticalDeNichilo updates & onLindsley, important LLP legal requirementsFiore Racobs that &impact Powers how you work. Union Bank First Bank Association Services Urban Tree Care, Inc. Essential information on key legal developmentsHOA Elections that impact of California, where Inc. you live. Vista Paint Corporation Ivey Engineering, Inc. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

32 www.cai-glac.orgHosted by CAI’s | California September/October Chapters and 2012 CAI’s California Legislative Action Committee CAI-Greater Los Angeles Chapter COMMUNITY ASSOCIATIONS INSTITUTE (CAI), the world-wide KEYNOTE SPEAKER: CHARLES MARSHALL leader in community association education, advocacy and professional development, invites you to a special, one-day The Seven Powers of Success™: How to Harness, Develop and Apply Your Seven Powers to Enrich Every Area of Your Life event on key legal topics that affect every common interest community in California. One of the most popular humorous motivational speakers today, Charles Marshall’s animated delivery With almost 40 years of industry experience and a member and original observations have captivated more than network of homeowners, managers, attorneys and other 1,000 audiences during the past two decades. business partners greater than 32,000 strong, CAI is A nationally syndicated humor columnist, Marshall is the author of in a unique position to deliver both a local focus and a the motivational classic, Shattering the Glass Slipper, and the popular global perspective on the issues that shape community humor book, I’m Not Crazy, But I Might Be a Carrier. He has released association governance and operations. two full-length comedy videos, Fully Animated and I’m Just Sayin’! The CAI Legal Forum offers two education programs—one In his hilarious and fun-packed presentation, Marshall shows how for community managers and one for board members and The Seven Powers™ can enrich the life of any individual or other homeowner leaders. Sessions are presented by organization. Using humor and real-life examples, he relates expert panels, including government officials, seasoned inspirational stories of everyday underdogs who have overcome management professionals and members of CAI’s obstacles and achieved success. prestigious College of Community Association Lawyers (CCAL), a professional organization that represents the very HOMEOWNER EDUCATION PROGRAM best attorneys in the industry. How to Avoid Recall Elections Recall efforts destroy association budgets, morale and cohesiveness. Anyone who lives in, works for or provides services to a This session presents tried-and-true methods for avoiding recall California community association will leave the event more elections 90 percent of the time and offers strategies that won’t informed, more engaged and better able to contribute to a break the bank when recalls are unavoidable. successful community. BETH A. GRIMM, ESQ.*, BETH A. GRIMM PLC and NATHAN MCGUIRE, ESQ., NEUMILLER BEARDSLEE ASK THE ATTORNEYS Governing Documents: Allies Not Foes Get your questions answered by some of the very best association Having an effective set of governing documents will save you time, attorneys. This session offers you the opportunity to ask a panel of money and headaches. This session provides a comprehensive approach experts about your community’s legal issues. to restating your governing documents, including smoking bans, assignment of rents, lease restrictions, maintenance matrices and more. NETWORKING RECEPTION YVETTE HUFFMAN, DC PROPERTY MANAGEMENT INC.; LAURIE S. POOLE, ESQ., PETERS Get to know your California peers. In addition to a full program of education & FREEDMAN LLP and DEON R. STEIN, ESQ., THE LAW OFFICES OF DEON R. STEIN sessions, the CAI Legal Forum ends with a networking reception to make contacts and build resources to further support your community. COMMUNITY MANAGER EDUCATION PROGRAM Social Media for HOAs COMMUNITY MANAGER & HOMEOWNER EDUCATION PROGRAM Why and how should community associations use social media? This session takes an in-depth look at the benefits of using social Limos, Lawyers & Ladies of the Night: Challenges to Rule Enforcement media to market your association. It also offers tips and hints on What could possibly go wrong with allowing owners to run how to overcome challenges and use social media most effectively. businesses out of their homes? This session examines potential LORI ALBERT, ALBERT MANAGEMENT CORPORATION and pitfalls and offers practical approaches to avoid liability. JAMES MCCORMICK JR., ESQ., PETERS & FREEDMAN LLP ADRIAN J. ADAMS, ESQ., ADAMS KESSLER PLC and TIMOTHY CLINE, CIRMS, TIMOTHY CLINE INSURANCE AGENCY INC. Reasonable Accommodations Pets + People + Parking = Problems! This session helps you Take the Guesswork out of Liability and Responsibility understand and navigate the complex laws covering discrimination Who is responsible for what when managing common interest claims and requests for reasonable accommodations. developments? This session looks at the pros and cons of shifting liability JEFFREY A. BEAUMONT, ESQ., BEAUMONT GITLIN TASHJIAN; JENNIFER JACOBSEN, ESQ., and responsibility from financial and maintenance perspectives. BAYDALLINE & JACOBSEN LLP; MATT OBER, ESQ.*, RICHARDSON HARMAN OBER PC and JAMIE HACKWITH, CMCA®, AMS®, PCAM®, AMBER PROPERTY MANAGEMENT and BRUCE RATLIFF, ACTION PROPERTY MANAGEMENT STEVEN A. ROSEMAN, ESQ., ROSEMAN & ASSOCIATES APC HUD Approvals & Recertifications: What Managers Need to Know What Mediators Wish We Knew Before Mediation HUD and FHA have disallowed “spot approval” for FHA loans on Learn strategies to improve the chances of successful dispute condominium units. Instead, an entire condominium project must be resolution through mediation. This panel includes an attorney and a approved. This session takes you through the approval and recertification professional ma nager experienced in mediation for associations, as processes step by step, outlining risks and highlighting best practices. well as a practicing mediator who will guide you through the process. JAMES C. HARKINS IV, ESQ., CANE, WALKER & HARKINS LLP and DENNIS M. BURKE, ESQ. FIORE RACOBS & POWERS; DONNY DISBRO, PROFESSIONAL MICHAEL R. PERRY, ESQ., THE PERRY LAW FIRM and MANAGEMENT COMPANY COMMUNITY MANAGEMENT and LAURA J. SNOKE, ESQ., LAW OFFICES OF LAURA J. SNOKE *CCAL member

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 33 WELCOMENEW CAI-GLAC MEMBERS! AS OF SEPTEMBER 15, 2012

BUSINESS PROFESSIONALS RECRUITER 2012 Recruiters of the Month Aqua Creations CAI National JANUARY JUNE FHA Review by a | v | s Kimberly Lilley, CIRMS, CMCA® Jose Glez, CIRMS Candi Kocher, CCAM® Reserve Study People CAI National Timothy Cline Insurance Four Seasons HOA Security Specialists, Inc. CAI National Agency, Inc. Vasin Sign Solutions Michelle Urbina JULY Keith Leedom, CMCA® Focus Waste Management CAI National FEBRUARY Neda Firouz, CMCA® Sky Security Services, Inc. COMMUNITY ASSOCIATIONS HOA Organizers, Inc. Salsbury Industries AUGUST Santa Rosalia 71 HOA CAI National MARCH Kimberly Lilley, CIRMS, CMCA® COMMUNITY MANAGERS Steven A. Roseman, Esq. Berg Insurance Agency, Inc. Roseman & Associates, APC Arbi Amirkhanian Brian Davidoff, CMCA®, AMS® Ross Morgan & Company, Inc. APRIL Scott Long Kelly Richardson, Esq. Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company Elizabeth Orellana Carol Brockhouse, AMS® Runs in: Rockpointe HOA MAY Mar/Apr, Jul/Aug,Ariel Hess,Nov/Dec CCAM®, CMCA®, AMS® Scott Management Company

34 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter 1/2 Page Horizontal 7.5” W x 4.5” H 4C OUR THANKSTO RENEWING MEMBERS! AS OF JUNE 30, 2012

BUSINESS PROFESSIONALS COMMUNITY MANAGEMENT COMPANIES Dan Nakari, CCAM®, CMCA®, AMS®, PCAM® Gerry Suenram, CCAM®, CMCA®, PCAM® Accurate Termite & Pest Control Berro Management Century Park Place Condo Assn. EVO HOA Allana Buick & Bers, Inc. Campion and Company Melvin Norell, CMCA®, AMS® Ida Worth, CMCA®, AMS® American Technologies, Inc. Condominium & Community Specialists, LLC Hollywood Versailles Towers HOA Ross Morgan & Company, Inc. Animal & Insect Pest Management, Inc. Condominium Administration Co., Inc. Vicki Olson, AMS® Lori Ziegler, CCAM®, PCAM® Bethco Builders Coro Community Management & Consulting Property Management Professionals, LLC Century Woods COA BuildingLink.com Harris Properties Martha Perkins COMMUNITY ASSOCIATION LEADERS CommerceWest Bank. N.A. Horizon Management Company Hancock Park Terrace Condo Assn. Bill Harder Eagle Roofing Products Paragon Property Management Group, LLC Lance Sandman, CCAM®, CMCA®, AMS® Albert Nichols ENDURA Painting Corporation Professional Community Management Prado Community Association Richard Reece Ferris Painting, Inc. Scott Management Company Marcie Schell, CCAM®, CMCA®, AMS® Mary Totten Gothic Grounds Management COMMUNITY MANAGERS Remington Plaza HOA Hickey & Petchul, LLP Deborah Schneider, CMCA® John R. Sinner Insurance Agency, Inc. Sara Atha, CMCA® Concept Seven, LLC Bali Management Group Jon Wayne Constructin & Consulting David Spector, CMCA® Loewenthal, Hillshafer & Carter, LLP Ben Bar, CMCA® EHM/Association Property The Ritz-Carlton Residences at L.A. Live Minuteman Parking Company Management, Inc. Diana Stiller, PCAM® National Cooperative Bank 101 Ocean Condominiums HOA Nu Flow America Malcolm Bennett International Realty & Investments Oakridge Landscape, Inc. ProTec Building Services, Inc. Gail Bowman, CMCA®, AMS® Westview Towers HOA Reconstruction Experts, Inc. Restoration Management Company Nancy Brown Richardson Harman Ober PC Studio Village HOA Robert W. Little Insurance Agency, Inc. Tina Crago S.B.S. Lien Services International Tower Owners Association Sandra Macdonald Insurance Donna Currie, CCAM® Seacoast Commerce Bank The Beverly West Condominiums Securitas Security Services USA, Inc. Karen Dubose, CMCA®, AMS® Slaughter & Reagan, LLP Action Property Management SouthData, Inc. Richard Egan CCAM®, Suntrek Industries CMCA®, AMS®, PCAM® Unified Protective Services, Inc. Briarcliffe Towne Homes Association Van Dijk & Associates, Inc. Donna Ferrell, CMCA®, AMS® CALCO Management, LLC COMMUNITY ASSOCIATIONS Carol Ford, AMS®, PCAM® 4230 Stansbury Association, Inc. Catherine Gemind CMCA®, AMS®, PCAM® Beverly Hills at Doheny Keith HOA Valencia Management Group Breakers at Del Amo HOA Danielle Glass-Hays, CCAM® Century Woods COA Hays Management Group Douglas Park Townhomes HOA Frazee Paint & Wallcovering Nichole Hoffman, CCAM® The Churchill Condo Assn. Harbor Ridge Towne Homes Assn. Regatta Seaside HOA Lorna Leviste, CCAM®, PCAM® Promenade West OA Renaissance HOA Tierra Verde V HOA Jonathan Mitchell Wilson Summit HOA Bel-Air Chalet HOA Melissa Mills Doheny Plaza Association

CAI-Greater Los Angeles Chapter September/October 2012 | www.cai-glac.org 35 ADVERTISERS INDEX 15 Anderson Group International 26 Popular Association Banking 10 Animal & Insect Pest 17 Preferred Commercial Management, Inc. Painting 2012 UPCOMING EVENTS 30 Association Reserves, Inc. 22 R.W. Stein Painting, Inc. 23 Cacho Landscape 35 Reserve Studies Inc. OCTOBER Maintenance Co., Inc. 17 Richardson Harman Ober PC 25 Collins Builders, Inc. 03 Homeowners Association Marketplace –4:00 p.m. – 9:00 p.m. 9 Ross Morgan & Company, Inc.  14 Fenton Grant Mayfield Skirball Cultural Center, Los Angeles 34 Salsbury Industries- Kaneda & Litt, LLP Mailboxes.com 10 Educational Luncheon – 11:30 a.m. 26 Ferris Painting, Inc. Skirball Cultural Center, Los Angeles 19 Sandra Mcdonald Insurance 19 First Bank Assoc. Services 13 Select Painting 12 Chapter Board of Directors Meeting – 8:30 a.m. 36 First Bank Assoc. Services Chapter Office 31 Steven G. Segal 36 Gayle G. Gould, CPA Insurance Agency 16 Long Beach Evening Program – 6:00 p.m. 18 Hi Tech Painting & Decorating 27 Swedelson & Gottlieb AQUA 388/488 Community Associations, Long Beach 8 Mutual of Omaha Bank/ 11 Timothy Cline 19 State Legal Forum – 8:00 a.m. CondoCerts Insurance Agency, Inc. Pechanga Resort & Casino, Temecula 12 Payne Pest Management 16 Union Bank 31 Valencia Educational Breakfast – 8:30 a.m. 31 PCW Contracting 30 Witkin & Neal, Inc. Bridgeport HOA, Valencia Services, Inc. 24 Wolf, Rifkin, Shapiro, NOVEMBER 27 Poindexter & Company, CPAs Schulman & Rabkin, LLP 03 “Monsters Ball” Casino Night – 6:00 p.m. Park Plaza Hotel, Los Angeles 07 San Gabriel Valley Evening Program – 6:00 p.m. ADVERTISING INFORMATION Pasadena Senior Center, Pasadena Dimensions & Rates: 10 Essentials of Community Leadership Workshop – 8:15 a.m. Artwork must not exceed the exact dimensions of that size ad. Regatta Seaside HOA, Marina del Rey For more information, call the Chapter office:818-500-8636. 14 Educational Luncheon – 11:30 a.m. Ad Size Ad Dimensions Members Non-Members Skirball Cultural Center, Los Angeles 3½" wide x 2" high ⅛ page $200 $400 16 Chapter Strategic Planning Meeting – 8:30 a.m. (Horizontal) 3½" wide x 4¾" high Regatta Seaside HOA, Marina del Rey ¼ page $300 $600 (Vertical) 27 Westside Evening Educational Program – 7:00 p.m. 7½" wide x 4¾" high Regatta Seaside HOA, Marina del Rey ½ page $425 $850 (Horizontal) 7½" wide x 10" high DECEMBER Full Page $800 $1,400 (Vertical) 07 Holiday Happy Hour – 4:00 p.m. Bel Air Crest Master Association Clubhouse, Los Angeles Payment: Rates are subject to change without notice. By credit card, check or cash. Minimum three-insertion contract. Rates subject to change without notice. 14 Chapter Board of Directors Meeting – 8:30 a.m. Advertising Sales: Please contact the Chapter office for advertising specifications Chapter Office and deadline information at: 818-500-8636.

36 www.cai-glac.org | September/October 2012 CAI-Greater Los Angeles Chapter Help BUILD CAI-GLAC And Reward Yourself by RecruitingHelp BUILD New CAI-GLACMembers in 2012 And Reward Yourself by RecruitingGrand New PrizeMembers in 2012 3-day/2-night Weekend Getaway on the Central California Coast The Build CAI-GLAC RecruiterGRAND Contest PRIZE runs for 12 months and is designed3-day/2-night so that Weekend current CAIGetaway members on the can Central earn valuableCalifornia prizes Coast for sharingThe Build the CAI-GLACbenefits of RecruiterCAI membership Contest runswith friendsfor 12 months and colleagues. and is designed so that current CAI members can earn valuable prizes for RULES sharing the benefits of CAI membership with friends and colleagues. The following rules apply to the campaign: RULES Members in good standing can compete to recruit new members and earn points The following toward the rules Grand apply Prize. to the campaign: • MembersTo receive in good credit, standing you must can competebe listed toas recruitthe CAI new member members responsible and earn forpoints toward the Grand recruitment Prize. on the printed application form submitted, or be identified • To receivethrough credit, CAI National you must membership be listed as reports.the CAI member responsible for recruitment on the Allprinted completed application applications form submitted, and membership or be identified dues for through qualified CAI applicants National mustmembership reports. be received at CAI between January 1, 2012 and December 31, 2012. • All completedto be counted applications toward theand Grand membership Prize. dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012 to be counted toward the Grand Prize. THREETHREE CONTESTS CONTESTS...THREE … THREE PRIZES PRIZES RECRUITER-OF-THE-MONTHRECRUITER-OF-THE-MONTH TheThe member member who who has has recruited recruited the the most most new new membershipsmemberships inin the previous monthmonth will be recognizedwill be recognized at the next at theluncheon next luncheon and awarded and awarded a FREE a LUNCHFREE LUNCH.. In the Incase the ofcase a tie, of a arandom tie, a random drawing drawing will determine will determine the winner. the winner. GRANDGRAND PRIZE ($1,000PRIZE ($1,000 value) value) MemberMember with with the the highest highest number number of of points points as as of of December December 31,31, 20120122 wilIwilI receivereceive thethe Grand Grand Prize. Prize. In In cases cases where where therethere areare two or more membersmembers withwith equalequal points, points, thosethose names names will will be be put put into into a a bowl bowl and and randomly randomly drawn drawn toto determinedetermine the winner. PointsPoints will will accrue accrue from from January January 1 1 through through December December 31,31, 20120122 forfor thethe GrandGrand Prize. Prize. MembersMembers earn earn points points based based on on the the membership membership category. category. • SLIDING SLIDING SCALE SCALE POINT POINT SYSTEM SYSTE CANM GIVECAN GIVEYOU ANYOU EDGE. AN EDGE. Participating members Participating will receive: members will receive: ★ One (1) point for each+ One(1) business point partner for each member business recruited partner in a membercategory recruitedalready existing in a category in the already2012 Membership existing in Directory,the 2012 Membership Directory, + Two(2) points for a business partner in a sector of business not yet ★ Tworepresented (2) points in for the a Chapter,business partner in a sector of business not yet represented in the Chapter, + Two(2) points for an individual HOA board member or community ★ Twomanager, (2) points and for an individual HOA board member or community +manager,Three(3) and points Three(3) for recruiting points for a recruiting management a management company. company. RECRUITERRECRUITER RAFFLE RAFFLE AllAll 2012 201 recruiters2 recruiters (except (except the Grand the GrandPrize winner) Prize will winner) go into will a raffle go into drawing a raffle held drawing in early Januaryheld in 2013 early (when January all the 201 20123 results(when areall in)the to 201 win2 an results Evening are Out in) on to thewin Town an ($500 value). Evening Out on the Town ($500 value) CURRENT SPONSORS: Adams Kessler PLC City National Bank DM Construction Services Silldorf & Levine, LLP AMARR Studios Concrete Hazard Solutions Scott Litman Insurance Agency Ronald S. Stone, CPA PhD PRSRT STD CAI-GLAC U.S. POSTAGE 130 N. Brand Blvd., Ste. 305 PAID Glendale, CA 91203 SAN BERNARDINO, CA PERMIT #1 Change Service Requested

Order Your 2012 Condominium Bluebook Today! Price: $25.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org. Did You Know… CAI-GLAC has an Adopt an HOA Program? Is your HOA looking run down…a little tired? Our ADOPT AN HOA program is here to help! COMMUNITY ASSOCIATIONS INSTITUTE now has a program to help your association maintain its curb appeal in these hard times. Apply now to be considered for the first wave of projects. Project selection will depend on the type and extent of work needed, vendors available to work on the project, and the HOA’s ability to contribute financially to the project. Participating homeowners associations must be in the Los Angeles County area and a member of CAI‐Greater Los Angeles Chapter. Examples of the types of projects being considered are paint touch ups (no scaffolding), planting, sprinkler head replacement, gate tune‐ups, power washing, changing light bulbs to energy efficient lighting, minor repairs, cleaning, etc. Learn more about the program and download the Adopt an HOA application at www.cai‐glac.org. As part of the application CAI will be asking for 12 months of financial statements, bank statements, most recent reserve study. (All information will be kept strictly confidential and used only for purposes of determining financial need.) A CAI‐GLAC membership application can also be found on our Web site under Join CAI.