CAI-CV October 2022 HOA Living Magazine

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Bringing positive impact and meaningful value to every community.

RENEWING BUSINESS PARTNER MEMBERS

ROOF ASSET MANAGEMENT, INC.

ROB WINKLE (760) 333-9900

Rob@ramroof.com

WHITNEY/PETCHUL ATTORNEYS AT LAW

DIRK PETCHUL (714) 932-3475

Dpetchul@Whitneypetchul.com

NEW MANAGEMENT MEMBERS

WHITESTAR MANAGEMENT

MICHAEL WILSON (760) 773-0123

Michael@WhiteStarMgmt.com

RENEWING MANAGEMENT MEMBERS

ALBERT MANAGEMENT CORPORATION

DAVID PAUL CARTER, AMS (760) 799-9830

DavidCarter67@yahoo.com

DESERT RESORT MANAGEMENT

ROBIN POOLE (760) 346-1161

Rpoole@drminternet.com

ERIC JOHN ZEIVEL (760) 979-7631

ezeivel@drminternet.com

FIRSTSERVICE RESIDENTIAL CALIFORNIA, LLC

BERENICE DEJA (760) 391-4564

Berenice.ceja@fsresidential.com

THE MANAGEMENT TRUST

MARNE LOGAN (760) 340-1703 ext. 6298

Marne.logan@managementtrust.com

NEW VOLUNTEER LEADERS

LA QUINTA FAIRWAYS

ANGIE LAFFERTY

MIRA FLORES HOA

TRACIE BLAKENSHIP

GABRIELA BOTH

ERIC MOSSER

KATIE REIS

THUNDERBIRD COVE HOA

SHIELA COSCO

PATRICK CULHANE

DONALD DELINE

CRAIG FILICE

MARY JANE FILICE

SALLY KOLVER

WAYNE STELMAR

–

SEAN

JENNIFER JAMES, ESQ., CHAIR

HOA Legal Services

RODNEY BISSELL, CO-CHAIR Bissell Design Studios, Inc.

MARILYN RAMOS, CO-CHAIR Guralnick & Gilliland, LLP

STEVEN SHUEY, PCAM BOARD LIAISON

Personalized Property Management (Ret.)

BRIAN BERCE Golden Alliance Insurance

KIMBERLY BURNETT

DSI Security Services

SIERRA CARR, CMCA, AMS, CCAM, PCAM Associa Desert Resort Management

MEAGHAN GAFFNEY-HOWE, CMCA, AMS

The Gaffney Group, Inc.

GREG GRITTERS

Vintage Landscape

CHEYENNE LANDRY

Newman Certified Public Accountant, PC

ASHLEY LAYTON, PCAM, AMS, CMCA Premier Community Association Management

GLENN A. MILLER, CGCS Southwest Landscape & Maintenance, LLC

JAMIE PRICER

Coachella Valley Water District

JASON SAVLOV, ESQ. Adams | Stirling, PLC

CHRIS SIGLER, B.S.C.E, CDT C.L. Sigler & Associates, Inc.

CREATIVE DIRECTOR & GRAPHIC DESIGNER

RODNEY BISSELL

Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749

ARTICLE

HOALiving@cai-cv.org

SUBSCRIBER SERVICES

The Coachella Valley HOA Living Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the Community Associations Institute. Members are encouraged to submit articles for publishing consideration. All articles accepted for publication in HOA Living are subject to editing and rewriting by the HOA Living Committee.

FEATURES

10 How HOA Boards Can Participate in the Legislative Process

11

12

16

17

12 Reasons Why You Should Donate to CLAC

CAI-CLAC 2021 Accomplishments

Community Association Board Resolution for CAI-CLAC Contribution

CLAC Buck-A-Door Campaign Pledge Form

CHAPTER NEWS

4

6

New and Renewing Members

Educated Business Partners

8

President’s Message

9 List of Advertisers

9

Stop Bad Legislation NOW!

26

Chapter Angels

29 Time Honored

Ashley Layton, PCAM, AMS, CMCA

By Meaghan Gaffney-Howe, CMCA, AMS

33 Meet the Committee Chair

Kristin Berryhill-Hood, CCAM

By Marilyn Ramos

33

Welcome Aboard

Armstrong Garden Centers

By Meaghan Gaffney-Howe, CMCA, AMS

35 Titanium Spotlight Associa Desert Resort Management

39 Time Honored

Jeri Mupo, CMCA, AMS, PCAM

By Meaghan Gaffney-Howe, CMCA, AMS

40 Have You Heard?

By Sierra Carr, PCAM

43

CAI-CV Membership Drive

44 Word Scramble

44 Corporate Sponsors

CAI-CV.org

Choose Educated Business Partners

Julie R. Balbini, Esq., Fiore Racobs & Powers, A PLC

Micha Ballesteros, Cartwright Termite & Pest Control, Inc.

Roxi K. Bardwell, Advanced Reserve Solutions, Inc.

Rodney Bissell, Bissell Design Studios, Inc.

Kimberly Burnett, DSI Security Services

Linda Cardoza, Alliance Association Bank

Will Cartwright, Cartwright Termite & Pest Control, Inc.

Todd Chism, PatioShoppers

Tiffany Christian, Epsten, APC

Angel Christina, Delphi Law Group, LLP

Lori Fahnestock, Powerful Pest Management

Dea Franck, Esq., Epsten, APC

Julie Frazier, Frazier Pest Control, Inc.

Elaine Gower, The Naumann Law Firm, PC

Michael Graves, SCT Reserve Consultants

Amanda Gray, Harvest Landscape, Inc.

Matthew Hills, Securitas Security Services USA, Inc.

Jennifer James, Esq., HOA Legal Services

Erin Kelly, Pacific Western Bank

Megan Kirkpatrick, Kirkpatrick Landscaping Services

Jared Knight, Vista Paint Corporation

Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP

Matt Lawton, CIC, CIRMS, Prendiville Insurance Agency

Larry Layton, Kirkpatrick Landscaping Services

Alison LeBoeuf, Sherwin-Williams

Mike Mastropietro, OCBS, Inc.

Chris Meyer, Asphalt MD's

Greg Morrow, Eagle Roofing Products

Fran Mullahy,

2022 COACHELLA VALLEY

CHAPTER BOARD OF DIRECTORS

CLINT ATHERTON, CMCA, AMS, PCAM, LSM

PRESIDENT

Sun City Palm Desert

JULIE R. BALBINI, ESQ. PRESIDENT-ELECT

Fiore Racobs & Powers, A PLC

MATT LAWTON, CIC, CIRMS

PAST PRESIDENT

Prendiville Insurance Agency

ERIN KELLY SECRETARY

Pacific Western Bank

STEVEN SHUEY, PCAM TREASURER

Personalized Property Management (Ret.)

DAN FARRAR, CMCA, AMS DIRECTOR

FirstService Residential

JENNIFER JAMES, ESQ. DIRECTOR

HOA Legal Services

BRUCE LATTA, CMCA DIRECTOR

Parc La Quinta HOA

LILY ORTEGA, CMCA DIRECTOR

Pro Landscaping, Inc.

LOUISE STETTLER DIRECTOR

Palm Desert Greens Country Club HOA

MIKE TRAIDMAN DIRECTOR

Mira Vista at Mission Hills HOA

CAI Coachella Valley Office 75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211

Tel: (760) 341-0559

Fax: (760) 341-8443

Website: www.cai-cv.org

CAL LOCKETT

Executive Director

clockett@cai-cv.org

The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services. The Coachella Valley Chapter has not verified and/or endorsed the contents of these articles or advertising.

Readers should not act on the information contained herein without seeking more specific professional advice from legal, accounting or other experts as required.

UPCOMING EVENTS

18 Oktoberfest – Axes & Ales

Sunshine Landscape Friday, October 28, 2022, 5:30 PM

25 Legislative Update & Mini Trade Show

Sun City Palm Desert Friday, October 21, 2022, 11:15 AM

31 Corks for CLAC Wine Tasting & Auction

Shields Date Garden Friday, November 11, 2022, 5:30 PM

34 Reindeer Games at Boomers Palm Springs

Friday, December 9, 2022, 12:00 PM

41 Desert Cities HOA Council Education

Thursday, 10/20 – Insurance Thursday, 11/17 – Legislative Review

42 CAI-CV Awards NightRat Pack

Agua Caliente Resort Casino & Spa Friday, January 27, 2023, 5:30 PM

44 Upcoming Event Links

PAST EVENT

PHOTOS & SPONSORS

22 Educational Lunch Program & Mini Trade Show

Signs, Flags, Decora and More!Friday, September 16th, 2022

DEPARTMENTS

ACCOUNTING & BUDGETING

19 Minimum Wage Increase 2023

By Kimberly Burnett

28 How Much Should Your Association Have in Reserves?

By Kevin Leonard

BUSINESS

30 How to Grow Your Business or Group Online!

By Sharon Marta

HOA LAW

36 A New Lease on Life: Understanding Recent Leasing Laws Impacting Community Associations

By Cyrus Koochek, Esq. SwedelsonGottlieb

HOMEOWNER LEADERS

37 Application for CAI Board Leader Certificate

LANDSCAPING

24 UC Riverside Cultivates New Drought-Tolerant Grass

By Bruce Latta, CMCA

WATER WISE

20 Water Conservation – A Manager’s Perspective

By Steven Shuey, PCAM, CCAM

40 Let Your Lawn Go Gold

By CVWD

President’s Message

Clint Atherton, CMCA, AMS, PCAM, LSM General Manager

Sun City Palm Desert Community Association

The theme of HOA Living Magazine this month is “legislative action” and brings to mind the impor tance of getting involved in our legislative process. Managers and community board members can testify to the onerous and costly HOA laws that are enacted annually. If you live or work with HOAs, it is important to know how your candidates feel about HOAs before you vote. And, when CAI’s California Legislative Action Committee (CLAC) asks us to weigh in on a piece of legislation, take the time to send your thoughts to our Coachella Valley representatives. CAI makes it simple to get involved. See page 16.

I hope all our members are ready to start gathering. We have some exciting networking events planned this fall, and all three have plenty of outdoor space for visiting.

OKTOBERFEST – AXES & ALES

On Friday, October 28th, we will host our annual Oktoberfest at Sunshine Landscape. This year’s theme is Axes & Ales! There will be axe throwing, along with great beer, incredible food, fun Oktoberfest games, and first-rate networking. See page 18.

CORKS FOR CLAC WINE TASTING & AUCTION

On Friday, November 11th (Veteran’s Day), the Chapter will host its annual Corks for CLAC Wine Tasting & Auction, at Shields Date Garden, as a tribute to courage, honor, and patriotism. Prior to the event, the Education Committee will host a combined Ask the Attorney MOTR (Manager on the Run) and BMW (Board Member Workshop) in the Shields Theater. See page 31.

REINDEER GAMES AT BOOMERS

On Friday, December 9th, the Golf Committee is planning the Reindeer Games at Boomers. We are taking over the entire Boomers park. Attendees will have full access to three miniature golf courses, motorized go-karts, bumper boats, rock climbing, and the arcade. See page 34.

ANNUAL AWARD NIGHT

On Friday, January 27th, the Chapter will host its annual awards ceremony and celebration at Agua Caliente Casino Spa in Rancho Mirage. The theme is “Rat Pack”, and the Committee is planning live entertainment – Rat Pack style! See Page 42.

On October 25th, the Chapter will hold its annual election for five open board of director seats. We will announce the election

results at our annual meeting that afternoon and will send out an eblast announcement the following day.

Our thanks to the Education Committee for two excellent programs in September. On September 2nd, attorney Cang Le, Esq. (Tinnelly Law Group) provided managers an excellent presentation called “Go Ahead, Unleash Your Awesome” that focused on soft skills including attire, speaking, writing and interacting professionally. Thanks, Cang, great job. A special thanks to guest speaker Mike Rey (Rey Insurance Services) for his presentation to board members about insurance issues on September 6th.

Our thanks to the Programs Committee, and guest speakers Christina Baine DeJardin, Esq. (Delphi Law Group, LLP), Bruce Latta, CMCA (Indio Properties) and Jeri Mupo, PCAM (Indian Ridge Country Club) for their presentation called “Signs, Flags, Decor and More!” Your message was timely and important given the upcoming political season.

On Tuesday, October 4th, Damian Jenkins, Division President of The Management Trust will teach a Board Member Workshop (BMW) called “Dealing with Difficult People” via Zoom. Then, on Friday, October 7th, attorney Jeff French, Esq. (Green Bryant & French, LLP) and CAI faculty Steven Shuey, PCAM, will teach a Manager on the Run (MOTR) course called “Fiduciary Duties for Boards vs. Manager.”

LEGISLATIVE UPDATE

On Friday, October 21st, we will hold our largest program of the year, the Legislative Update, where you can hear about the most recent changes in regulations, laws, and case law. This is also our largest trade show of the year. Our esteemed guest speakers are Sandra L. Gottlieb, Esq., CCAL, Senior Managing Partner, for Swedelson Gottlieb, and Lisa Tashjian, Esq., CCAL, Partner at Beaumont Tashjian. See Page 25.

You may find event links on page 44 or each week in the Monday Update. I look forward to seeing you at Oktoberfest!

Clint Atherton, CMCA, AMS, PCAM, is the General Manager of Sun City Palm Desert Community Association. Clint can be reached at 760-200-2224 or

ELECTRICAL

PAINTING

How HOA Boards Can Participate In The Legislative Process

ABOUT CLAC

Each year, the California Legislature proposes dozens of new laws that directly impact homeowners associations (HOAs). Legislation that is signed into law may immediately change the way boards conduct HOA business and may impose fines for noncompliance. The Community Associations Institute (CAI) helps associations stay informed about HOA legislation.

CAI’s California Legislative Action Committee (CLAC) represents HOAs in Sacramento by advocating on their behalf to protect associations from damaging legislation and to promote proactive legislation. CLAC is made up of members from the Community Associations Institute like you. As a member of CAI, you are automatically a member of CLAC. CLAC is directly supported by HOAs through the Buck-A-Door campaign, where HOAs give a dollar per household to CLAC annually.

TO PARTICIPATE

STEP ONE

Add CLAC financial support to your board agenda. This pamphlet will help make the case for your support. CLAC asks each HOA to donate $1 per door annually. CLAC is asking HOAs to make this annual donation part of their annual operating budget.

STEP TWO

Customize the board resolution on page 16 for your specific association and add it to your board packet for the board’s consideration. An electronic version of the resolution is available on the CAI-CV website at www.cai-cv.org.

STEP THREE

Make a motion to approve the enclosed Board Resolution and begin discussion. If you need addi-tional information, please contact the CAI-CV office at 760-341-0559 or go to the CLAC website at www.caiclac.com. After discussion, call for a vote.

STEP FOUR

When approved, ask your treasurer or manager to prepare and send a check directly to CLAC. Make the check payable to CAI-CLAC. The mailing address is 1809 S Street, Suite 101-245, Sacramento, CA 95811. IMPORTANT: Please indicate CAI-CV in the memo line so our local chapter is aware of your donation.

THANK YOU

CAI is grateful to all HOAs who participate in funding our advocacy efforts in Sacramento. CAI-CV will publish your association’s name in HOA Living Magazine and recognize you at our annual Legislative Update.

12 REASONS Why You Should Donate to CLAC

CAI’s California Legislative Action Committee (CLAC) is a nonprofit educational organization dedicated to monitoring and influencing legislation that affects community associations in California. CLAC is proactive in introducing and advocating for legislation that is beneficial to homeowners associations (HOAs) and actively opposes legislation that may have an adverse impact on HOAs. CLAC has influenced legislation affecting many aspects of the Davis-Stirling Act, including covenant enforcement, elections, board meetings, assessment collection, electronic voting and resale disclosure.

1 Your donation gives your community a voice. CLAC’s legislative advocacy efforts are entirely dependent upon the support, opinions and experience of industry professionals and homeowner leaders. CLAC serves the interests of approximately 10,000,000 people who live in and work with HOAs in the state of California. CLAC communicates with legislators and other elected and appointed officials about HOA concerns through letters, phone calls and personal visits.

2 CLAC is dedicated to monitoring and influencing legislation that impacts HOAs in California. CLAC researches and reviews proposed legislation and takes positions on bills affecting HOAs.

3 CLAC meets regularly with lawmakers in their district and Sacramento offices to help advance HOA issues. CLAC educates lawmakers, legislative and executive staff, and other organizations. CLAC also testifies before legislative bodies. CLAC holds an annual Legislative Day at the Capitol in Sacramento where CAI members are invited to meet with legislators and advocate on important HOA issues being considered.

4 CLAC is not a Political Action Committee (PAC) and does not give money to legislators or their campaigns.

ARE

IMPORTANT REASONS

WHY YOU SHOULD DONATE TO CLAC.

5 CLAC provides immediate action alerts and input on bills that affect HOAs. Legislators rely on CLAC input on HOA issues. HOAs rely on CLAC’s input on breaking issues and its ability to effectively influence the formulation and outcome of public policy. CAI members have access to timely information on bills related to HOAs at www.caiclac.com.

6 CLAC organizes “grassroots” advocacy efforts that include letters, emails and phone communications from HOA residents to elected officials on important HOA-related issues and proposed laws.

7 CLAC exercises members’ constitutional right to participate in the political process. CLAC builds important relationships with government officials and develops a network of peers that helps protect HOA home values.

8 Giving is easy and can be done online at www.caiclac.com or by filling out and returning the BuckA-Door donation form on page 6.

9 It is legal for HOAs to donate money from assessments to CLAC. The board may spend community funds on protecting the association and its owners by supporting constructive state legislation and opposing offensive legislation.

10 Donations received are used for legislative advocacy, and may include printing and mailing expenses, lobbyist fees, and administrative services.

11 Senate and Assembly committees ask CLAC for input as HOA legislation is proposed and debated. CLAC is also contacted by the Governor’s Office for input about HOA legislation before it is vetoed or signed into law.

12 CLAC has become the recognized resource for providing accurate, timely and influential input to California legislators. CLAC employs a fulltime contract lobbyist in Sacramento. The CLAC representatives that determine industry positions on proposed legislation include representatives from the three major CAI membership categories: Homeowner Leaders (homeowners, HOA board members); Business Partners (attorneys, developers, reserve analysts, contractors, accountants, insurance representatives, and others) and Community Managers (managers and management companies). Each of the eight California chapters provides two delegates and one liaison to CLAC. If you are interested in serving on CLAC, contact the CAI-CV office.

CAI-CLAC 2021

Accomplishments

ADAPTING TO COVID-19

The 2021 Legislative Session was again impacted by COVID-19 limiting in-person participation in legislative hearings. It also required CAI-CLAC to host its first virtual Legislative Days at the Capitol, which was a huge success and included more than 200 participants over multiple days of meetings.

2021 also turns out to be one of the most successful Legislative Sessions in recent memory for CAI-CLAC. We monitored nearly 50 bills and actively engaged on more than ten.

Below is a list of our accomplishments for 2021 which could not have been possible without the participation of our Chapter Legislative Support Committees and members throughout the State.

AB 502 (DAVIES) – ELECTION BY ACCLAMATION

AS INTRODUCED: AB 502 sought to delete the 6,000-unit limitation for election by acclamation placed into law by SB 754 (Moorlach, 2019). As amended, AB 502 authorizes any association to elect board members by acclamation when the number of candidates is less than or equal to the number of vacancies. However, the Legislature did extend the time for initial notice of an election and requires an additional individual notice to the membership. An association is also limited to no more than three consecutive elections without a secret ballot election.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

AB 1101 (IRWIN) – ASSOCIATION FINANCES

AS INTRODUCED: AB 1101 sought to clarify issues members had with AB 2912 (Irwin, 2018). This bill clarifies the type of insurance an association needs to protect against embezzle ment. The bill also clarifies when a transfer requires board approval.

POSITION: CAI-CLAC Sponsored Legislation.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

AB 1584 (COMMITTEE ON HOUSING) – SHORT TERM RENTAL CLEAN-UP

AS INTRODUCED: AB 3182 (Ting) created new rental restric tions on associations, which requires, among other things, governing documents to be amended in compliance with the new changes by January 1, 2022. AB 1584 includes language allowing the governing documents to be amended in compli ance with the changes in AB 3182 by a vote of the Board and extends the deadline to July 1, 2022.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

SB 9 (ATKINS) – SINGLE FAMILY RESIDENTIAL ZONING – LOT SPLITTING

AS INTRODUCED: SB 9 requires ministerial approval of a housing development of no more than two units in a singlefamily zone (duplex), the subdivision of a parcel zoned for residential use into two parcels (lot split), or both.

POSITION: Opposed unless amended to exclude CIDs.

RESULT: The author submitted a Letter to the Journal clarify ing the bill was not intended to impact the governing docu ments of a common interest development. This bill passed the Legislature with bipartisan support and signed by the Governor.

SB 60 (GLAZER) – SHORT TERM RENTALS – LOCAL ORDINANCE ENFORCEMENT

AS INTRODUCED: SB 60 would raise the maximum fines for violation of an short-term rental ordinance that poses a threat to health or safety, to $1,500 for a first violation, $3,000 for a 2nd violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. The bill would make these violations subject to the process for granting a hardship waiver.

POSITION: Support.

RESULT: The bill passed the Legislature with bipartisan support and was signed by the Governor.

SB 391 (MIN) – VIRTUAL MEETINGS

AS INTRODUCED: SB 391 authorizes common interest devel opment (CID) boards to meet by teleconference, without iden tifying a physical location where CID members may attend, in an area affected by a disaster or emergency which makes it impossible to meet in person.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and signed by the Governor.

SB 432 (WIECKOWSKI) – ELECTIONS

AS INTRODUCED: SB 432 addresses a number of technical issues created by the passage election legislation from 2019, including: requiring (rather than authorizing) a homeowners association (HOA) to disqualify a nominee for a board director slot under specified circumstances; clarifying a candidate for an HOA board must be in compliance with a payment plan for any overdue assessments (rather than simply being required to enter into a payment plan); specifying any requirements placed on nominees must also be placed on existing directors; amending the corporations code for recall elections to be consistent with the election timelines in the Civil Code; and requiring an HOA to retain election materials for one year after the election.

POSITION: Neutral.

RESULT: This bill passed the Legislature with bipartisan support and signed by the Governor.

CAL·CLAC IS ALWAYS LOOKING FOR IDEAS FOR COMMON SENSE LEGISLATION TO SPONSOR. PLEASE SEND IDEAS/FEEDBACK TO OUR LEGISLATIVE STRATEGY AND RESEARCH COMMITTEE AT LSRC@CAICLAC.COM.

Community Association Board Resolution for CAI-CLAC Contribution

Whereas, The Association (hereafter referenced as the “Association”) board serves in the best interests of all owners in the community; and

Whereas, The Association directors have the fiduciary responsibility to manage the assets of the Association according to California law, established business practices and principles, and pursuant to competent, ethical and positive community governance; and

Whereas, Community Associations Institute (CAI) is the leading advocate for common-interest communities before state and federal legislative and regulatory bodies; and

Whereas, CAI's California Legislative Action Committee (CLAC) represents the interests of community associations in California, sponsors legislation which benefits community associations and their members, and disseminates information to California community associations about legislative issues; and

Whereas, Current and future Association residents benefit directly from CLAC's advocacy efforts; and

Whereas, CLAC's efforts are funded solely through contributions from CAI members and fundraising efforts by CAI chapters in California; and Whereas, contributing to the CAI-CLAC will not affect the association’s nonprofit tax status; and

Therefore be it Resolved, That the Association invest in a full or partial board membership package; and

That it is the policy of the Association that the Association make an annual contribution to CLAC for , in the amount of $ , that is, ($1 for each (unit/lot) in the Association, coded to general administration; and

That the Association strongly encourages its manager and directors to take advantage of the information provided by CLAC regarding pending and enacted state legislation that allows them to keep abreast of the rights and responsibilities of community associations under California law.

SO RESOLVED BY THE BOARD OF DIRECTORS on this, the day of in the year

Name Secretary of the Association

Our thanks to the law firm of Richardson Ober | DeNichilo for preparing this sample resolution. An electronic version is available online at www.cai-cv.org.

CLAC Buck-A-Door Campaign

HOA PLEDGE

PLEASE LET US KNOW YOUR CAI CHAPTER

Bay Area Central Califor nia North Channel Islands Coachella Valley Greater Inland Empire Greater Los Angeles

NAME

TITLE

ASSOCIATION NAME

ADDRESS CITY STATE ZIP PHONE E-MAIL

Orange County Regional San Diego

METHOD OF PAYMENT – RETURN THIS COMPLETED FORM TO THE ADDRESS BELOW. Check enclosed payable to cai-clac Credit Card – Amex Visa Mastercard Discover (circle one)

NAME ON CARD

BILLING ADDRESS

CITY STATE ZIP

CREDIT CARD NUMBER

SIGNATURE DATE

75410 GERALD FORD DRIVE, SUITE 102, PALM DESERT, CA 92211

SECURITY CODE EXPIRATION DATE

CAI California Legislative Action Committee (CLAC), is a 501(C)_(6) not-for-profit organization. Contributions or gifts to CAI California Legislative Action Committee are not deductible for federal income tax purposes.

INCREASE 2023

By Kimberly Burnett

Inflation has been hitting everyone’s pocketbooks. Every industry is feeling the strain of the labor market. Is your board ready for what is coming next?

The California Labor Code section 1182.12 requires the state to determine annually if the minimum wage rate should be adjusted for inflation, beginning in 2023. The California Department of Finance is responsible for reviewing U.S. Bureau of Labor Statistics data. This year, although the relevant consumer price index (CPI) increased 7.9 percent, the provisions of section 1182.12 limited the minimum wage increase to 3.5 percent.

A provision in the law allows wages of at least $15 to be raised annually up to 3.5% (rounded to the nearest 10 cents) for any increase in inflation of over 7% as measured by the national Consumer Price Index. And that is what is happening now. Gov. Gavin Newsom announced in May that all employers of every size will begin paying a minimum wage of $15.50 beginning January 1, 2023.

Under an inflation-triggered provision in state law, California's minimum wage, already the nation's highest, is scheduled to rise in January to $15.50 from $15.

As we have experienced in prior years, this increase will affect pay and bill rate of officers throughout the Valley. If an organization is in a multi-year contract, providers may come back and ask for rate increases to compensate for the increase. Since this is state mandated, we all need to work together and help prepare each other. It starts with sharing information with co-workers and boards. Managers need to check with security providers to make sure the bill rates submitted for 2023 accommodate the change.

Kimberly Burnett is the Business Development Manager for DSI Security Services. She can be reached at (909) 238.3827 or by email at kburnett@dsisecurity.com.

Water Conservation –A Manager’s Perspective

By Steven Shuey, PCAM, CCAM

People living in community associations are still won dering about water conservation in the Coachella Valley. There are several water districts in the Valley, and all are under the regulation of the State Water Resources Control Board (SWRCB). This board has given what I would call “Guidelines” to the various water agencies throughout the State.

The CVWD issued a letter that indicated the “Emergency Order” issued in June 2022 by the governor would be active for a year. That tells me that water use restrictions for our communities are still in place and will be into next summer. There are some statewide restrictions that apply to all residents like washing the car or watering after a rain. These may be lifted in January 2023.

The “elephant in the room” has been: How do these water restrictions affect community associations (HOAs)? It is true that fines up to $500 can be issued for failure to comply with local agency mandates that apply to com munities. To better understand what exactly is impacted, I recommend reading the letters and FAQ sheets issued by the agency that provides water to your community. Statewide applicable infor mation can be found at bit.ly/ conservationreg.

My understanding is that “non-functional” turf (grass) areas that are part of the community’s common area, may not be watered. One of the documents I read indicated that “functional” refers to recreational use by residents. Could we make this less confusing? Perhaps, yes.

If your community has large grass common areas that you would like to keep green, they should be identified as “functional recreational areas”. Unoccupied open green space intended for ornamental aesthetics and beauty may not qualify. If you really want to maintain all open turf areas green, you may want to consult with the association’s attorney to obtain information on how to get such areas reclassified from “open space” to recreational use. If you continuously reference open green space as recreational, it would be hard for anyone to refute that.

This same thought process should apply to the usual fall reseeding function most communities get involved in

every year. Many communities are choosing not to scalp and reseed their lawns in an effort to follow the local water agency’s recommendations. Communication should go out to the community so that they understand why some lawn areas will not look as lush and green as they have in the past.

In communities where individual residences have their own landscape areas, these water restrictions do not apply. The governor’s order was intended for commer cial, industrial, and institutional water users, including common interest developments. Individual residences (where landscape areas are part of a unit owner’s lot) were specifically exempted. We should be careful when it comes to condominium communities where landscaping around the home is common area (not part of an individually owned lot). Such common areas likely fall under the order to restrict watering, which may also mean these areas will not be reseeded.

We should expect this trend to continue far into the future. Consideration of changing the community’s think ing about water use is valuable.

Another issue related to water conservation is leakage that causes waste. Community boards should consider articles in their newsletters reminding residents to be alert for water leaks, even those that may be hidden. Faucets and toilets that allow water to run, even a slow drip, can add up to a lot of wasted water. All plumbing fixtures should have periodic maintenance. This will reduce the possibility of leaks or worse yet, floods as a result of plumbing that is wearing out to the point of failure.

If we all do our part, and we teach our children to do their part, our water supplies will last far into the future.

Steven Shuey is a member of the Education Committee, serves on the CAI-CV chapter board of directors, and is a certified professional community association manager (PCAM). He serves on the National Faculty of CAI and a past board member of the CAI Managers Council. He is a community association consultant recently retired from Personalized Property Management in the Coachella Valley. He may be contacted at IslandMgr@aol.com.

"If your community has large grass common areas that you would like to keep green, they should be identified as 'functional recreational areas'"

Here is an excerpt from the State Water Board’s Water Conservation Emergency Regulations of 2022 Frequently Asked Questions. You can read the complete list of FAQs. Click Here or scan the QR code.

Statewide Requirements for Conserving Water

State Water Board’s Water Conservation Emergency Regulations of 2022

Frequently Asked Questions | Updated July 28, 2022

As climate change-induced extreme weather continues to disrupt California’s water system, the State Water Resources Control Board (Board) has adopted two emergency regulations in 2022 that pro hibit certain wasteful water use practices statewide and encourage water suppliers and Californians to monitor water use more closely while building habits to use water wisely and make conservation a way of life. Local water suppliers may have adopted stricter water conservation measures than the State Water Board’s, so water customers should check with local agencies about their current restrictions.

Where can I find information on the State Water Board's water conservation emergency regulations?

You can find updated documents and subscribe to the Water Conservation Regulations email list for announcements on the State Water Board’s Water Conservation Emergency Regulations webpage at bit.ly/conservationreg.

What current water use restric tions apply to all Californians?

State Water Board water con servation requirements are listed in the table below. There are also requirements not listed here. Column A lists prohibitions on the use of potable water that apply to all Californians. Column B lists additional requirements for urban water suppliers.

EFFECTIVE DATE

EFFECTIVE UNTIL

[1]

JANUARY 2023

A. PROHIBITED FOR ALL CALIFORNIANS

Outdoor watering that lets water run onto sidewalks and other areas (except incidental runoff)

· Washing vehicles without an automatic shutoff nozzle

· Washing hard surfaces like driveways or sidewalks that don’t absorb water

Street cleaning or construction site preparation

Filling decorative fountains, lakes, or ponds

Outdoor watering within 48 hours after at least 1/4 inch of rainfall

Watering ornamental turf on public medians

B. ADDITIONAL REQUIREMENTS FOR URBAN WATER SUPPLIEERS

EFFECTIVE UNTIL JUNE 2023

[2]

EFFECTIVE UNTIL JUNE 2023

[2]

Watering non-functional lawns in commercial, industrial, and insti tutional areas, including common areas of homeowners’ associations (HOAs)

Note: Local water suppliers may have adopted stricter water conservation measures than the State Water Board, so check with local agencies about their current restrictions.

· Follow all prohibitions in column A

· If needed, exercise authority to adopt more stringent local conservation measures

Follow all prohibitions in column A

Implement all local Level 2 demand reduction actions*

If needed, exercise authority to adopt more stringent local conservation measures

All of column A water use prohibitions above are “infractions,” and any organization that already has the authority to enforce infractions may do so; this may include local water suppliers and cities. Violations may be punishable by a fine of up to $500 per day. To report a potential water use violation, go to SaveWater.CA.Gov on your phone or computer.

[1] = These requirements are from the first water conservation emergency regulation of 2022 that became effective on January 18, 2022 and is in effect for one year from the effective date, unless the State Water Board modifies, readopts, or ends it before then.

[2] = These requirements are from the second water conservation emergency regulation of 2022 that became effective on June 10, 2022 and is in effect for one year from the effective date, unless the State Water Board modifies, readopts, or ends it before then.

* = “Level 2” refers to the second level of urban water suppliers’ water shortage contingency plan as defined by the State. Local water suppliers may use different words and definitions to indicate water shortage levels, such as stages or phases. Check with your local water supplier to know what is required by your supplier’s Level 2. Local suppliers should have a “crosswalk” diagram that compares the State’s Levels and local levels.

"Local water suppliers may have adopted stricter water conservation measures than the State Water Board’s, so water customers should check with local agencies about their current restrictions."

Guest Speakers

Bruce Latta, CMCA

Property Manager, Indio Properties

Christina Baine DeJardin, Esq.

Delphi Law Group,

Jeri Mupo, CMCA, AMS, PCAM

General Manager,

Trade Show Booth Sponsors

Accurate

Stirling

Allied

Tashjian

UC Riverside Cultivates New Drought-Tolerant Grass

On September 9, 2022, the Los Angeles Times included a story by columnist Gustavo Arellano about UC Riverside's nine-acre Agricultural Experiment Station where a new drought-tolerant grass has been cultivated.

Gustavo visited the campus to see for himself and interviewed Jim Baird Jr., Ph.D. the head of UC Riverside’s Turfgrass Research & Extension program. Dr. Baird is the only faculty member for this specific program in the University of California system.

Baird said this grass, which UCR is about to release, meets the state’s water requirements. It is drought-tolerant to the point that it needs 50% less water than most lawns in Southern California.

It's soft enough for recreation and keeps a healthy green color during the winter when most other lawns go dormant.

Baird’s new grass, currently named UCR17-8 and UCR TP6-3, was selected from more than 400 hybrids. They were planted last year, as a final test before Baird felt confident enough to go public with the news.

At the time, Baird reported that later in September he was to host UC Riverside’s annual Turfgrass and Landscape Research Field Day. It was to include a trade show, a tour, and a lecture to highlight the benefits of UCR17-8 and UCR TP6-3. Coachella Valley’s own West Coast Turf was a sponsor of the event. The month prior, he and his team talked about their work

at the Southern California Golf & Water Summit in Chino Hills.

If all goes according to the plan, the UCR17-8 and UCR TP6-3 grasses will be released in limited supplies by 2024 but they will have no more mar ketable names. If you want to keep up with Baird’s doings his Twitter account handle is @UCRturfgrass.

Bruce Latta, CMCA, is the property manager for Indio Properties in Indio and a member of the board of directors of the Parc La Quinta Homeowners Association. He chairs the Homeowner Leader Committee. He can be reached at PLQHOABLatta@gmail or (760) 285-5617.

By Bruce Latta, CMCA

Dr. Jim Baird at UC Riverside's Agricultural Experiment Station test field to evalute turf specimens. LA Times photo

CAI-CV CHAPTER ANGELS

COVID had a significant impact on the Chapter’s ability to have fundraising and networking events. The following companies have donated all or a portion of their unused 2020 - 2021 sponsorships to the Chapter. Please thank them and call on them when you have a need for their services.

Alan Smith Pool Plastering

Albert Management, Inc.

Alliance Association Bank

AMS Paving, Inc.

Asphalt MD's BPR Inc.

BRS Roofing Inc.

C. L. Sigler & Associates, Inc.

CIT

Conserve LandCare

Delphi Law Group, LLP

DSI Security Services

Dunn Edwards Paints

Eagle Roofing Products

EmpireWorks Reconstruction and Painting

Fiore Racobs & Powers, A PLC

Flood Response Frazier Pest Control, Inc.

Gardner Outdoor and Pool Remodeling

GrandManor

Green Bryant & French, LLP

Harvest Landscape Horizon Lighting Inc.

LaBarre/Oksnee Insurance Agency, Inc.

Pacific Western Bank Patrol Masters, Inc.

Precision Pool Tile Cleaning

Prendiville Insurance Agency Pro Landscaping, Inc.

Rey Insurance Services, Inc.

Roof Asset Management

Seacoast Commerce Bank

Securitas Security Services

Sherwin-Williams Paint Company

Superior Roofing

The Management Trust

The Naumann Law Firm, PC

Vantage Point Construction, Inc.

Vista Paint Corporation

Western Pacific Roofing

How Much Should Your Association Have in Reserves?

By Kevin Leonard

How much should an association have in reserves? What is the “right” amount to be setting aside for all the reserve projects?

The short answer is that a credible reserve study will iden tify that key result. But it is important to understand that the right amount of contributions and the right amount in reserves will be different for each association. If an association has $500,000 in reserves, does that really tell you anything?

An amount of $500,000 may be adequate for one com munity but entirely inadequate for another. To really get to the bottom of how much is enough, associations need to ask two questions:

• Do we currently have enough in the reserve fund today?

• Are we budgeting enough reserve contributions for the future?

To have “adequate reserves” both answers must be “yes!”

To measure the strength of a reserve fund today, reserve study profession als use a term called percent-funded. Across the nation, approximately 30% of association-governed communities are well funded, 40% are mid-range under funded, and 30% are severely underfunded. These figures were gathered from more than 70,000 reserve studies that were analyzed by our nationwide firm, Association Reserves.

These benchmarks are critical because we have also been able to determine that an association’s percent-funded has a direct correlation with the risk of a special assessment. It makes sense intuitively that the closer an asso ciation is to 100% funded, the more prepared the reserve fund is to face upcoming repair and replacement projects, and the closer an association is to 0% funded, the more exposed it is to the risk of cash flow problems (special assessments). Here is a chart that represents this risk. Keep in mind, these numbers only account for when a special assessment is required in the immediate future. Associations in weaker positions will almost certainly face a special assessment at some point if they do not drastically increase their reserve contributions.

It is important to understand the current status of the reserve fund, but percent-funded does not always tell the whole story. The second part of the equation tells the contribution size needed to stay cash positive and to minimize an association’s exposure to special assessments (i.e., stay above 30% funded).

An association’s monthly/quarterly/annual reserve contribution should provide enough funds over time to pay for the inevitable and predictable reserve expenses. More states and lenders are establishing requirements for a minimum reserve contribution, commonly 10% of the total annual budget. That may be a good starting point, but it should be viewed as a minimum requirement, not necessarily what is appropriate for all associations.

TIME HONORED

Ashley Layton PCAM, AMS, CMCA

By Meaghan Gaffney-Howe, CMCA, AMS

Ashley Layton has been in the CID industry for 19 years, getting her start during high school sending mailers and doing filing after school at Desert Resort Management, which was owned by her mother at the time. She was officially hired by Desert Resort Management right out of high school and worked in numerous positions throughout her 18 years with the company, including front desk, accounts receivable, accounts payable, corporate bookkeeping, administrative, assistant manager, manager, and ulti mately community director. In 2021, Ashley left Desert Resort Management to open a California branch of Buck Reynolds Corporation, the parent company of Premier Community Association Management in Palm Desert, where she serves as vice president. She says of the move, “I was excited for the change, to grow this new branch and the chance to work with my mother again, as well as my longtime friend and Vice President, Rhonda Drews.”

Ashley credits her mother as the inspiration behind her career as a community manager. She states her mother not only was “a positive influence on me as a person growing up, but in my career as well. She started her own man agement company in 1987, and it grew to one of the largest in the Valley,” giving Ashley “the drive and courage to do the same 34 years later.”

Citing the education and tools available to managers to succeed, Ashley became a member of CAI 11 years ago, earning her CMCA, AMS, and PCAM designations along the way. She has also given back to the Chapter by serving on numerous committees, including Oktoberfest, Homeowner Leader, California Legislative Action, and HOA Living.

After more than thirty years of continuous analysis, we have determined that 10% is usually not enough. Our data suggests associations should be contributing 15% to 40% of their total budget; 25% is common for the associations we work with. (A reserve study will be able to more accurately determine the appropriate amount for your association.)

Kevin Leonard is the president of Association Reserves - Coachella Valley and author of Understanding Reserves: A Guide to Your Association's Reserve Fund & Reserve Study.

A graduate of La Quinta High School, Ashley has lived in the Coachella Valley her entire life. In her leisure time, she enjoys camping, going to the river, attending concerts, and hanging out with her friends, dog Sebastian, and familywhich consists of her mom in Prescott, Arizona, as well as her brother and sister who reside in the Coachella Valley. Ashley, thank you for your membership in CAI-CV and for your dedication to the CID industry!

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

Ashley Layton

How to Grow Your Business or Group Online!

By Sharon Marta

Do you have a small business you want to grow online but are strug gling to get found by your ideal audience?

Are you confused by social media? Do you post and post on social media but find that only a small group of the same people, mostly family and friends, are engaging with your content?

Before you jump into all things social media, we need to start with the founda tion of all marketing, no matter what the platform.

Step 1 Understand Your Brand

Before you start marketing your business online, get out a pen and paper and write down some business branding basics. This might seem trivial but, trust me, when it comes to mes saging, it is so much easier to create content and so much clearer to communicate your message when you are coming from the right place.

What is the mission of your business? What are the business’s values? If your audience could summarize how they feel about your company, what would they say currently? What do you want them to say about your company?

Write down some adjectives that you want your company to be seen as “relatable, professional, trust-worthy, bold, fun, out-of-the-box, creative, innovative, stable, etc.”

Keeping these values, keywords, and mission front of mind will help you stay clear and focused on what content you create for your brand.

Step 2 Understand Your Audience

Before marketing your business, it is vital to understand your unique audience. This can be referred to as your ideal client or ideal audience. Businesses that try to reach everyone fail to reach the individual. You want to communicate to the heart of the individual person to make that emotional connection. Get really specific with the small group of people you help.

Step 3 Give People A Reason To Follow You

When creating content, remember to keep your ideal

audience in mind. Create content that brings them value. This is where knowing your audience's pain points and what they are looking for help in your marketing. You can be enter taining, informative, inspiring, educational, funny, smart, artistic, and inspirational.

Step 4 Start A Blog

Think of social media as your advertising strategy but you need a home for your leads to come to where they can find more information and actually purchase from you. A blog on your own website will allow you to create content that can get found in Google Search. You’ll build authority with your audience with a blog and be seen as an expert as well as gain authority with Google.

Your blog is also where you can grow your audience by capturing them onto an email list. You don’t want your leads to visit once and never come back again. An email list allows you to stay in contact with your leads. Studies show that conversion rates on emails are around 3% whereas social media has about a .5% conversion rate. So, your blog and email system are a priority to set up before you start bringing in leads via social media.

Step 5 Know How Each Social Media Platform works

Social media is not a one-size fits all solution. Each platform has a different culture and different algorithm. Find out where your ideal audience hangs out and focus on that one platform. You don’t need to be on all of them.

Facebook is perfect for building relationships, ideally within groups. You can generate leads by building relationships in these groups or creating your own group. Instagram is great for inspiration, education, and entertainment. It’s a little harder to build relationships on Instagram but great to get found by new leads. LinkedIn is best for B2B (Business to Business) relationships and making business connections. TikTok is no longer the dancing app from 2020. TikTok is quickly becoming a great way for businesses to find new leads and build relationships at the same time.

Sharon Marta is the owner of SM Creative, LLC, a custom website design company. You can reach her on Instagram, just send Sharon a DM if you have a question, @sharonmarta_creative or on her website at www.SharonMarta.com.

THANK YOU TO OUR SPONSORS:

CHAMPAGNE SPONSOR

EmpireWorks Reconstruction

LIGHTING SPONSOR Fiore Racobs & Powers

BORDEAUX SPONSORS Delphi Law Group, LLP Payne Pest Management (2)

CABERNET SPONSOR Payne Pest Management (2)

AUDIO

Kristin Berryhill-Hood, CCAM

Director of Community Management Desert Resort Management – An Associa Company

By Marilyn Ramos

This article is part of a series featuring CAI-CV board members and committee chairs. Today, we profile Kristin BerryhillHood, who is the Director of Community Management at Desert Resort Management – An Associa Company.

Kristin’s family hails from Oklahoma and moved to California in 1979. She started her career in our industry in the early 90s as an on-site administrative assistant for a large country club in Palm Springs. Later she worked through the ranks of manager, then general manager and now she serves as the Director of Community Management for Desert Resort Management – An Associa Company – which she joined ten years ago.

At home, Kristin has been with her husband for 23 years. They have a daughter and two grandchildren. They love fos tering cats and currently have 9 rescue cats and one tortoise! They used to have horses too, so it is definitely an animal loving family! When not caring for animals, they enjoy country dancing and spoiling the grandchildren. Making life better for her grandchildren and for animals is what motivates her and drives her passion.

It is also important to Kristin to surround herself with people who empower, support, motivate and appreciate you. Those things spill over into her management style.

Kristin says she was initially tricked into joining the CAI-CV chapter (who wasn’t?) but then saw it as a great opportunity to give back to the industry that gave her wonderful career opportunities and to grow in that career when she first started out as a single mom.

Kristin was honored at the 2021 CAI-CV Awards both individually and as part of the Desert Resort Management team. She received the 2021 Community Association Portfolio Manager of the Year.

She is not going anywhere just yet but may author a book about this unique industry – “101 Craziest Requests from Homeowners”. I’d buy a copy! In all seriousness, Kristin shares an important message, “Tomorrow is never a guarantee, enjoy life to the fullest and surround yourself with loved ones.”

CAI-CV thanks Kristin Berryhill-Hood for her involvement with the Chapter and wishes her continued success in our industry.

Marilyn Ramos is a paralegal for Guralnick & Gilliland, LLP. She can be reached at (760) 340-1515 or by email at MarilynR@gghoalaw.com.

Armstrong Garden Centers

By Meaghan Gaffney-Howe, CMCA, AMS

Welcome aboard, Armstrong Garden Centers! For over 130 years, Armstrong Garden Centers has provided California with “Gardening Without the Guesswork.” Armstrong’s landscape design program features this same approach, pro viding landscape design and installations to residential, commercial and HOA clients. With 20 designers and more than 20 certified installers in Southern California, Armstrong Garden Centers provides a highly professional design at an exceptional value.

Armstrong’s growing facility in the Coachella Valley pro vides locally grown and sourced plant material adapted to the desert climate. Their local design team also provides landscape design services with expertise in the local plant palette and style. Their designers connect with the client to familiarize themselves with community design standards, thus serving the community more effectively.

Laura Weaver is the contact for Armstrong Garden Centers in the Coachella Valley. A member of the American Rose Society, Desert Rose Society, and Pacific Horticulture, Laura is a Landscape Designer, a Certified Horticulturist, and a Certified Rosarian. A new Coachella Valley resident (since March of this year), Laura has been visiting the desert with her family for the past 15 years. Prior to her parents moving to the Coachella Valley seven years ago, Laura and her family would come to the desert to watch her son, then an avid golfer, participate in the junior world tournaments that were held here every year. Before her move to the Coachella Valley, Laura lived in Orange County, where she earned her Horticulture Degree from Orange Coast College. Her son is now a junior at UC Santa Cruz and her daughter is a freshman at College of the Desert.

Laura Weaver can be reached at: (626) 422-2891 or Lweaver@armstronggarden.com

Armstrong Garden Centers Mailing Address: 78-325 Hidden River Road Bermuda Dunes, CA 92203

Please visit www.armstronggarden.com for more information on the services that are offered that can benefit your home or community!

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

Berryhill-Hood

Laura Weaver

Winter Wonderland Park Signage Sponsor

TITANIUM SPOTLIGHT

THANK YOU TO ASSOCIA DESERT RESORT MANAGEMENT FOR THEIR GENEROUS SUPPORT OF CAI-CV.

Associa Desert Resort Management is a full-service management company specializing in resort lifestyle communities with a dedicated team of community management experts. From comprehensive HOA and condo management to secure financial services and on-demand maintenance, our full suite of services can help any association thrive.

For us, the central importance of community can never be undervalued. Providing exceptional service to our customers, community members and each other is at the center of everything we do. We operate in an industry built on trust. Honesty, dependability, and accountability are the cornerstones of our reputation as a true partner.

Our Mission: To bring positive impact and meaningful value to every community.

Established in 1987 and part of the Associa management company network since 2010, Associa Desert Resort Management has served the greater Coachella Valley and Big Bear Mountain areas for almost four decades. Our 400 team members in two branch offices lead the industry in professional certifications and designations and have helped hundreds of local associations achieve their vision. Our partnership with Associa has allowed us to serve our clients at an even higher level with world-class resources and robust technology. These resources, combined with our local expertise and personal service, have uniquely positioned us to accomplish community goals and maintain long - lasting relationships with our clients.

Our family environment and culture are fundamental to our success. As a family, we stand firmly behind the concept of a united team, where everyone is valued, respected and above all, empowered to be their best for the good of each other and the communities we serve.

We are pleased to be a Titanium Sponsor for the Coachella Valley Chapter. CAI is the best resource for educational, social, and networking programs for all community management professionals. We hope our continued support helps CAI carry on its important work.

92211 | (760) 346-1161 CAI-CV.org

A New Lease on Life: Understanding Recent Leasing Laws Impacting Community Associations

By Cyrus Koochek, Esq., SwedelsonGottlieb

Leasing is a hot button issue for many community associations, and there are myriad reasons why this is the case. Maintaining an owner-occupied character of community is understandably important for most associations, as is ensuring that tenancy rates do not rise to a number that may negatively impact lender financing or refinancing evaluations or the ability of an association to maintain insurance coverages. Additionally, tenants may not be aware of an association’s rules and regulations (or may not care about them), and thus may be more prone to violating them.

Despite the reasonable concerns associations and their boards of directors have with respect to leasing, the ability to restrict leasing has been significantly impacted by recent changes in the law. Boards and community managers should understand these changes to ensure that their associations are not acting contrary to applicable law or otherwise exposing their associations to liability.

The most well-known changes in the law come by way of AB3182, a bill which created new Civil Code Section 4741 and modified existing Civil Code Section 4740. AB3182 became effective law on January 1, 2021, and the major changes are found in Civil Code Section 4741. This law now prohibits an association from setting a minimum lease term longer than thirty-one days. In other words, an

association can prohibit leases that are fewer than thirty-one days but cannot require that an owner’s lease be longer.

The law also now deems any leasing cap stricter than twenty-five percent of the separate interests as unenforceable. This means that an association may only limit the number of rented separate interests at any given time to twenty-five percent; of course, associations are still able to implement more lenient leasing caps that allow for more of the separate interests to be rented at any time.

now-prohibited rental restriction.

Associations that “willfully” violate Civil Code Section 4741 are subject to civil penalties and can be held liable to a party for their actual damages. If an owner should be entitled to rent but is not allowed to by an association (and loses out on rental income), this could result in a significant financial liability for an association.

For years, associations have voted in governing document amendments to implement minimum lease terms of one year or leasing caps in the ten to twenty percent range. This is simply no longer allowed and now considered an express violation of Civil Code Section 4741. Beyond this, many associations adopted lease waiting periods or residency requirements, requiring an owner to own their separate interest for a period of time, such as one to two years, before being able to lease. This is not expressly allowed under Civil Code Section 4741; therefore, most consider this another

For associations with governing doc uments that are not compliant with the requirements of Civil Code Section 4741, the law itself provides a procedure by which a board may amend the governing documents, without member approval, to either delete the restriction or make the restric tion compliant. For example, a oneyear lease term can be changed to thirty-one days, or a ten percent leasing cap can be changed to twenty-five percent. Remember that other discretionary changes are not allowed to be made without a member ship vote.

Boards should consult with their community managers and association legal counsel regarding the scope and procedure for these amendments. It is important to perform these amend ments as soon as possible; the technical date for compliance was July 1, 2022, but associations should still proceed if they have not done so already. Keep in mind that no association has an automatic right under the law to create a new leasing cap or a thirty-one day

“Despite the reasonable concerns associations and their boards of directors have with respect to leasing, the ability to restrict leasing within community associations has been significantly impacted by recent changes in the law.”

minimum lease term where one does not already exist; these are restrictions that must be in the governing documents, namely the CC&Rs, to be enforceable.

Civil Code Section 4741 also now makes clear that accessory dwelling units and junior accessory dwelling units are not viewed as separate interests for purposes of the rental restriction laws. The law also states that an owner’s separate interest should not be counted as renter-occu pied if the owner occupies their separate interest or their accessory dwelling unit or junior accessory dwelling unit. This is important to remember when tracking rentals, especially for associations with leasing caps.

The law continues to contain language ensuring that current owners are grand fathered in from new leasing restrictions. This means that if a new leasing restric tion, such as a leasing cap, is adopted, it will only apply to future owners who pur chase units after the effective date of the adoption of the leasing cap. It is important to discuss this issue with the association’s legal counsel to ensure proper interpreta tion of the grandfathering requirements under the Civil Code. Because the Civil Code does not allow for prohibitions or unreasonable restrictions on leasing, it is equally important to understand what actually constitutes a reasonable leasing restriction, as opposed to a leasing prohi bition or unreasonable restriction. This is even more important in light of the 2021 case of Brown v. Montage at Mission Hills (2021) 68 Cal.App.5th 124.

Application For CAI Board Leader Certificate Course

BOARD LEADERSHIP CERTIFICATE PROGRAM

New in 2023 – CAI National is offering HOA board members a nationally recognized CERTIFICATE! CAI-CV will offer this five-hour program to our members and the Desert Cities HOA Council members twice in 2023.

DATES:

Saturday, April 15th

9 A.M. to 3 P.M. CIA-CV Classroom

Saturday, September 9th

9 A.M. to 3 P.M. CAI-CV Classroom

THE COST IS REGULARLY:

$99 for members | $199 nonmembers (Individual online class via National)

The Chapter is offering a facilitated class for a cost of $69 (members) and $169 (nonmembers). Most HOA’s pay for their members to attend. It’s a win win for all!

Please provide us with the following information if you are interested in participating in the Board Leadership Certificate Program.

Name: Email:

Cell Number:

HOA Board:

Those board members interested in participating will be contacted with the details of the program.

EMAIL THIS INFORMATION OR CLICK OR SCAN THE QR CODE: admin@cai-cv.org or fax it to (760) 341-8443. If you have questions, call the office at (760) 341-0559.

CAI-CV.org

The California Court of Appeals in this case essentially determined that an owner in a community association was not subject to an association’s new thirty day minimum lease term requirement because the owner owned their unit prior to the association amending its CC&Rs to add the rental restriction. The court viewed the minimum lease term requirement as a rental prohibition, and not a reasonable restriction, and this is certainly an interpretation that complicates things for associations. The practical side of this case means that asso ciations that add a minimum lease term requirement to CC&Rs that do not already address this will potentially have to track when each owner purchased their unit, creating an ongoing administrative burden for associations. There is still debate about the applicabil ity of this case; therefore, boards should consult with association legal counsel to learn more about how this applies.

If there is a silver lining to the recent changes in the law, it is that there is at least some form of specificity as to what is considered a reasonable rental restriction under the law. This also applies to another new law, which does not directly impact community associations, but provides associations with information that can be used in the enforcement of short-term rental violations. SB60 was a 2021 bill that amended the California Government Code to set forth a schedule of monetary penalties for cities and counties to use when pun ishing violations of local short-term rental ordinances. Under this law, when there are short-term rental violations of an ordinance, cities and counties may impose a fine of $1,500

for a first violation, $3,000 for a second violation, and $5,000 for additional violations within a year of the first violation.

This law provides community associations guidance regard ing possible fine amounts that are viewed as reasonable under California law. Although this law does not govern associations, the express fine amounts the law sets forth are instructive for associations looking to increase monetary fine amounts for violations of their short-term rental restrictions. Many outdated fine policies contain low fine amounts that do not serve as a deterrent to rental violations, because the applicable fine is so low as to just be the “cost of doing business,” and this law provides associations some possible direc tion in this regard. Associations should consult with their legal counsel before implementing a fine amount that is significantly higher than what is currently in the association’s fine policy. Monetary fines must always be reasonable.

Creating available housing for California residents is a clear objective of the California legislature. Although people may debate whether community association housing is a good way to accomplish this, the reality is that associations must face the new normal and understand their rights regarding leasing restrictions.

Cyrus Koochek, Esq., is a senior associate attorney at Swedel sonGottlieb who specializes in representing community asso ciations in all areas of community association law. You can reach Cyrus at (310) 207-2207 and/or at ck@sghoalaw.com.

“The court viewed the minimum lease term requirement as a rental prohibition, and not a reasonable restriction, and this is certainly an interpretation that complicates things for associations.”

TIME HONORED Jeri Mupo, CMCA, AMS, PCAM

By Meaghan Gaffney-Howe, CMCA, AMS

Jeri Mupo has been in the CID indus try for 30 years. She began as an assistant manager in 1992, where she was quickly promoted to a portfolio manager within two months. Within two years, Jeri was promoted to division manager until she was given the oppor tunity to manage a mid-rise community in 2008. Jeri was promoted to director of developer operations in 2010, which consisted of transitioning all her employer’s developer accounts to homeowner control. In 2014, following a change in the market resulting in decreased new construction projects, Jeri transferred to the on-site general manager position at K. Hovnanian’s Four Seasons at Beaumont community, which was voted the number one 55+ community in all of California during her time employed there. Jeri accepted a position with Albert Management at Indian Ridge Homeowners Association in 2017, where she serves as the on-site general manager.

Jeri has multiple mentors who have provided motivation and encouragement throughout her CID career, including former employers Jim and Glennon Gray, and Supervisor Liz Williams. Jeri says that they “saw my potential to become a great association management professional. Their encouragement and continual guidance gave me the confidence to succeed as a manager, supervisor, and overall better person.” Jeri adds that she was a very introverted individual prior to her career in association management, noting many who know her today will find that hard to believe!

Citing education and networking oppor tunities, Jeri joined CAI in 1992; she has earned her CMCA, AMS and PCAM des ignations, and has served on the Bowling Committee. Speaking of education, Jeri had a goal to earn her bachelor’s degree prior to reaching the age of 40. She did it – attend ing evening classes and graduating with a Bachelor of Science in Management degree from the University of Phoenix – right before her 40th birthday.

Jeri is a California native, currently resid ing in Yucaipa. A Stephen King fan, Jeri loves a good scary story or mystery novel. She also enjoys listening to David Baldacci and

Michael Stagg audio books, along with alternative, rock, EDM, country, and 60’s music. Her leisure time is spent quilting and scrapbooking, though with their new travel trailer, she and her husband have recently been camping at many of the Southern California parks. Her family consists of her husband, as well as four adult children, three amazing grandchildren, two dogs, one cat, and three fish.

Jeri’s favorite saying is, “Do what you say and say what you do.” She adds, “It is important to me that my clients, team members, and vendors trust that I will do what I say,” adding that, “Trust is important to building a respectful relationship in our industry.”

Jeri, thank you for your membership in CAI-CV and for your dedication to the CID industry!

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

Jeri Mupo

Let Your Lawn

Go Gold

By CVWD

Homeowners, HOAs, businesses and golf courses are encouraged to skip overseeding lawns this fall. It’s a longstanding practice in the Coachella Valley but can be wasteful and unnecessary, especially during the ongoing drought.

Let your lawn go dormant to conserve water and save on seed and extra lawn maintenance. When watered once a month from November to February, most dormant grass grown in the desert will thrive again in the spring.

Also, consider these:

• Current water restrictions prohibit spray irrigation during daylight hours.

• Extra water needed for overseeding can boost your water bill into higher tiers with costly penalties.

• Scalping grass before reseeding kicks up dust, dried grass and pollen into the air causing health problems for some.

• Irrigating nonfunctional turf (decorative mowed grass) is prohibited at commercial, industrial, institutional sites and HOAs. Areas used for recreation or civic events or areas with trees are exempt. Click here for more information on non-functional turf.

Rather than overseeding, take advantage of CVWD’s turf conversion rebate program that gives customers $3 per square foot to replace grass with low-water use, desert-friendly landscaping or artificial turf, CVWD.org/rebates.

For gardeners who insist on overseeding, CVWD offers guidelines to help save water. Other key suggestions include:

• Wait to overseed until mid-November when cooler temperatures call for less water.

• Overseed a small area instead of the entire lawn.

• Water just enough to keep the seeds moist, not soaked.

• Check sprinklers for leaks and proper operation.

• Schedule irrigation time into more frequent two-or threeminute cycles to reduce the chances of wasteful runoff.

• Limit irrigation once seeds sprout.

For more conservation tips: CVWD.org/conservation.

By Sierra Carr, PCAM

Congratulations Robert Coleman on earning his Association Management Specialist (AMS©) designation in August 2022! Robert is with Titan Real Estate Group.

Congratulations Gretchen Redewill on earning her Association Management Specialist (AMS©) designation in July 2022! Gretchen is with Associa Desert Resort Management.

Congratulations to Dilip Khatri, PhD, SE. on celebrating 40 years as a struc tural engineer. Dilip graduated from college in 1983 with a bachelor's in civil engineering from Cal State LA, at the age of 18. In 40 years, Dilip has worked for NASA, JPL, BOEING (formerly Rockwell International), PARDEE Land Development, a construction company, various consulting firms, as a Professor of Civil Engineering at Cal Poly Pomona, and in his own firm for the past 25 years. Dilip has worked on the B-1 Bomber program, designed space satellites to explore the universe, and a long list of building inspections, evaluations, design of new facilities, restaurants, hospitals, mortuary buildings, and of course HOA clients. Congratulations, Dilip!

Sierra Carr, PCAM, CMCA, AMS, CCAM, is a community manager with Associa Desert Resort Management. You can reach Sierra at scarr@drminternet.com.

To submit information to Have You Heard?, send an email to hoaliving@cai-cv.org.

Start recruiting and win cash prizes from CAI-CV and CAI National! Once again, Prendiville Insurance Agency is the title sponsor of the CAI-CV Membership Drive. You can win a $1,000 GRAND PRIZE Travel Voucher to go anywhere you want or turn it in for cash. The $1,000 prize will go to the member who brings in the most recruits during the year. The grand prize will be awarded at the Awards Ceremony on Friday, January 27, 2023.

Additionally, each month, the Chapter will hold a random drawing of all recruiters. The winner will receive a $50 Visa gift card, and they will receive a $25 gift card for their new member. Each month, recruiters will also be enrolled in CAI National’s membership drive where they will be eligible for an additional $100 or $200 prize based on the number of their recruits. They will also be eligible for CAI National’s coveted Recruiter of the Year Award.

This year, if we bring in 50 new members, CAI National will give the Chapter a $20,000 grant!

EVENTS

OCTOBER

CAI-CV’s Board Member Workshop (BMW) (For board members)

TOPIC: Dealing with Difficult People

WHEN: Tuesday, October 4, 2022, 9:00 a.m. WHERE: Virtual Via Zoom

CAI-CV’s Manager on the Run (For managers and assistant managers)

TOPIC: Fiduciary Duties for Boards vs. Manager

WHEN: Friday, October 7, 2022, 8:30 a.m. WHERE: Virtual Via Zoom

CAI-CV’s Educational Lunch Program & Mini Trade Show (for all members)

TOPIC: Legislative Update

WHEN: Friday, October 21, 2022, 11:30 a.m.

WHERE: Sun City Palm Desert TRADE SHOW BOOTHS & SPONSORSHIPS – CLICK HERE

OKTOBERFEST – AXES & ALES

WHEN: Friday, October 28, 2022 WHERE: Sunshine Landscape, Thousand Palms REGISTER: Click Here SPONSORSHIPS: CLICK HERE

NOVEMBER

MOTR & BMW - ASK THE ATTORNEY (For Managers & Board Members)

TOPIC: ASK THE ATTORNEY Attendees Receive Discounted Tickets ($25) for Wine Tasting Event

WHEN: NOVEMBER 11, 2022, 3:30 p.m. WHERE: Shields Date Garden Theater, Indio REGISTER: Click Here

CORKS FOR CLAC WINE TASTING & AUCTION/MOTR & BMW - ASK THE ATTORNEY

WHEN: NOVEMBER 11, 2022 – SHIELDS DATE GARDEN REGISTER: Click Here SPONSORSHIPS: CLICK HERE

DECEMBER

REINDEER GAMES

WHEN: FRIDAY, DECEMBER 9, 2022 –BOOMERS PALM SPRINGS REGISTER: Click Here SPONSORSHIPS: CLICK HERE

CORPORATE SPONSORS