At Associa Desert Resort Management, our top priority is keeping all aspects of your community running seamlessly. Whether it’s our top-tier management, secure financials, on-demand maintenance, or advanced technology, our complete and comprehensive suite of services makes leading and living in a managed community better and easier than ever. Leave the hard work to us, so you can focus on what matters.
Accomplish more with Associa Desort Resort Management. Contact us today!
In high school, Mike was caught digging a pool behind the football field… by hand! Today he remodels pools! Was there ever any doubt?
Remodeling pools and Back yards since 1969
Qualit y work at a fair price
Lic #896061 C-53
NEW AND RENEWING MEMBERS
NEW BUSINESS PARTNERS
BALCONY1
Patty Robledo (323) 225-2669 patty@balcony1.com
PRECISION ROOFING & WATERPROOFING INC.
Mr. Brandon Decker (949) 751-7321 info@precisionroofingoc.com
RB ROOFING LLC
Mr. Ryan Bond (760) 399-0232 ryan.rbroofing@gmail.com
RENEWING BUSINESS PARTNERS
ALL COUNTY ENVIRONMENTAL AND RESTORATION, INC
Mr. Brett Drummond (714) 917-1400 bdrummond@allcounty.us
ALLIED TRUSTEE SERVICES
Mr. Stefan Murphy (916) 960-5363 smurphy@alliedtrustee.com
CARTWRIGHT TERMITE & PEST CONTROL
Mr. Will Cartwright, II (760) 346-6767 wc@cartwrightpc.com
OCBS, INC.
Mr. Mike Mastropietro (800) 834-2323 mike.mastropietro@ocbsonline.com
O'CONNELL LANDSCAPE MAINTENANCE
Mr. Tony Woltman (442) 200-8325 twoltman@oclm.com
PATIO GUYS
Mr. Henry Meza (714) 241-1200 commercial@patioguys.com
PATIOSHOPPERS COMMERCIAL POOL & PATIO FURNITURE
Mr. Todd Chism (951) 500-1803 todd@PatioShoppers.com
VINTAGE ASSOCIATES/ECOWISE LANDCARE
Mr. Kyle Gritters (760) 772-3673 kyleg@thevintageco.com
RENEWING MANAGEMENT COMPANIES
AVAIL PROPERTY MANAGEMENT
Mr. Iyad Khoury (760) 771-9546 iyad@availhoa.com
FIRSTSERVICE RESIDENTIAL CALIFORNIA, LLC
Mr. Michael Allen Marshall, CMCA, PCAM (760) 834-2496
MOUNTAIN VIEW COUNTRY CLUB HOMEOWNERS' ASSOCIATION
Mark Child
Rodney Gentry
Carl Glordano
Scot Woodward
PALM DESERT COUNTRY CLUB HOMEOWNERS ASSOCIATION
Ms. Tina See
RENEWING HOMEOWNER LEADERS
DESERT BREEZES CASAS
Ms. Jennifer Ann Blair
Mr. Frank Kelty
Mr. Stanley Krause
MIRA VISTA AT MISSION HILLS
Ms. Rosalyn Goldstein
Mr. Ron Novak
Mr. Guido Portante
Ms. Paul Sepulveda
Mr. Michael Laurence Traidman
Ms. Carol TrentaCosta
Mr. Jim Wegge
MIRALON COMMUNITY CORPORATION
Ms. Brenda Aranda
Mr. Tim Day
Mr. Bruce Juenger
Mr. Brad Shuckhart
MOUNTAIN VIEW COUNTRY CLUB HOMEOWNERS' ASSOCIATION
Ms. Janalee Arthur
Mr. Tim Breedlove
Ms. Laurie Duncan
Ms. Anne Farnham
Mr. Ed Keegan
Ms. Cheryl Krausfeldt
Ms. Andi Mallen
VICTORIA FALLS HOMEOWNERS ASSOCIATION
Mr. Gerald (Gerry) DeSilva
Mr. William Diedrich
Mr. Steven Friscia
Ms. Jan Hobson
Mr. Phillip Kasparek
Ms. Dana Manciagli
Mr. Dan McCarthy
Ms. Sandra McCarthy
Mr. Mike Piazza
Mr. Robert Pvlone
Mr. Jim Steinhoff
Robin Thomas
Mr. Don Urista
Roz Urlsta
Mr. Tom Weil
2024 HOA LIVING MAGAZINE COMMITTEE MEMBERS
MEAGHAN GAFFNEY-HOWE, CMCA, AMS CHAIR
The Gaffney Group, Inc.
ASHLEY LAYTON, PCAM, AMS, CMCA CO-CHAIR
Premier Community Association Management
JENNIFER JAMES, ESQ. CO-CHAIR
HOA Legal Services
MIKE TRAIDMAN
BOARD LIAISON
Mira Vista at Mission Hills HOA
CHRISTOPHER BAIR
Securitas Security Services
SIERRA CARR, CMCA, AMS, CCAM, PCAM Associa Desert Resort Management
JAMIE PRICER
Coachella Valley Water District
JASON SAVLOV, ESQ. Adams | Stirling, PLC
JOHN SCHUKNECHT
LaBarre/Oksnee Insurance
STEVEN SHUEY, PCAM
Personalized Property Management (Ret.)
CHRIS SIGLER, B.S.C.E, CDT
C.L. Sigler & Associates, Inc.
LORENA STERLING, CAFM Community Association Financial Services
CREATIVE DIRECTOR & GRAPHIC DESIGNER
RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749
PHOTOGRAPHY
MATTHEW LAWTON, CIC, CIRMS, EBP OCV Insurance Services matt@ocvinsurance.com 760-774-2099
JAY JARVIS jayj92260@gmail.com 571-235-5420
ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION 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.
Beaty
Tony Michaelis
PAST EVENT PHOTOS & SPONSORS
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.
Gary Butler, Asphalt MD's
Linda Cardoza, Alliance Association Bank
Will Cartwright, Cartwright Termite & Pest Control, Inc.
Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP
Matt Lawton, CIC, CIRMS, OCV Insurance Services
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, Conserve LandCare
Bridget Nigh, BEHR Paints
Matt Ober, Esq., Richardson Ober DeNichilo LLP
Lily Ortega, Pro Landscape
Chet Oshiro, EmpireWorks
Jed Pannell, Distinctive Restoration
Mallory Paproth, SCT Reserve Consultants
Elisa Perez, Esq., Epsten, APC
Jay Powell, Ben's Asphalt
Dana Pride, Automation Pride
Mike Rey, LaBarre/Oksnee Insurance Agency
Kelly Richardson, Esq., Richardson Ober DeNichilo LLP
Brent Sherman, Animal Pest Management Services, Inc.
Liz Williams, AMS Paving
Taylor Winkle, Roof Asset Management
Bevan Worsham, AMS Paving
Jolen Zeroski, First Citizens Bank
Become an Educated Business Partner
Call the CAI-CV office or go to www.cai-cv.org for more information.
COACHELLA VALLEY
CHAPTER BOARD OF DIRECTORS
PRESIDENT
JULIE BALBINI, ESQ.
Managing Attorney, CV Office, Fiore Racobs & Powers, A PLC
PAST PRESIDENT
CLINT ATHERTON, PCAM
General Manager, Sun City Palm Desert
PRESIDENT-ELECT
MARK DODGE, CMCA, AMS Branch President & CEO Associa Desert Resort Management
SECRETARY
BG (RET) GUIDO PORTANTE Director, Mira Vista at Mission Hills HOA
TREASURER
JOLEN ZEROSKI, CMCA
VP, Regional Account Executive First Citizens Bank
DIRECTOR
ERIN KELLY
AVP, HOA Senior Manager Banc of California
DIRECTOR
BRUCE LATTA, CMCA
Manager, Indio Properties/President, Desert Cities HOA Council
DIRECTOR
MICHELLE LOPEZ, CMCA, AMS Director of Community Management, Powerstone Property Mgmt.
DIRECTOR BRIDGET NIGH
Regional Account Manager, BEHR Paint Company
DIRECTOR
LILY ORTEGA, CMCA Office Manager, Pro Landscape
DIRECTOR
MIKE TRAIDMAN President, Mira Vista at Mission Hills HOA Commissioner, CAMICB
CONTACT US
CAI Coachella Valley 49950 Jefferson Street, Suite 130-117 Indio, CA 92201 (760) 341-0559 | 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.
It is hard to imagine that July is already here. For CAI-CV, it’s time to catch up and start planning for 2025. By the end of the month, we hope to have our entire calendar for next year. July is also a time to relax and celebrate. We start with Independence Day on July 4th, followed by National Hotdog Day on July 17th, National Day of the Cowboy on July 23rd, and National Cheesecake Day on July 30th. Along with all the celebrating, we hope you will join us for two important events.
ANNUAL BOWLING TOURNAMENT – FRIDAY, JULY 12TH, 5:30 P.M.
The Bowling Committee has gone above and beyond to bring you one of the best networking events of the year – CAI-CV’s Annual Bowling Tournament, "Beach Ball Bowling," on Friday, July 12th, at Palm Springs Lanes in Cathedral City. We will be taking over the entire facility, bringing in a top-tier BBQ buffet, full bar, and giving out dozens of door prizes. You may attend as a spectator or as a sponsor. Lane sponsors receive registrations for four bowlers. Email Cal (clockett@cai-cv.org) if you want to bowl. This is a great way to keep the celebrations going in July! (See page 14 for more information.)
CAMDAY – FRIDAY, JULY 26TH, 8:30 A.M.
We hope that all our managers will take advantage of CAMDAY, on Friday, July 26th. This year, we rolled our manager-specific education into one day. You will receive eight hours of education and eight continuing education units (CEUs). CAMDAY will take place at Sun City Palm Desert. (See page 32 for more information.)
Our thanks to the Professional Managers Committee for another fantastic Comedy Night, on June 7th. The crowd was in stitches the entire evening. The food was outstanding, and a great time was had by all, while raising funds for the Carol A. Fulton Scholarship Fund for manager educaiton. See page 36 for photos from the event.
On Friday, June 21st, we had our Educational Breakfast Program & Mini Trade Show, entitled “Managing Landscape, Turf Conversions, and Water Conservation.” Our thanks to guest speakers Indio Mayor Pro Tem, Glenn Miller, Partner, Southwest Landscape, Adam McWey, Conservation Manager, Coachella Valley Water District, and Jerry Parsons, Water Consultant, Palm Desert Tennis Club HOA. (Please see photos and a list of sponsors on page 24.)
You can sign up for CAI-CV events and educational programs at: Community Calendar - CAICV. Also, you can use the links in the Monday Update (emailed to all members every Monday). Please see page 44 for upcoming events and programs.
On behalf of the CAI-CV leadership team, we wish you a fantastic July and look forward to seeing you at our upcoming events!
Julie
ESPLANADE HOMEOWNERS ASSOCIATION
By Ashley Layton, PCAM, AMS, CMCA
Esplanade Homeowners Association is in north La Quinta, located on the corner of Jefferson and Fred Waring. Within walking distance, you will find restaurants, a grocery store, coffee shop, drug store, gym, and a nail salon. Golf can be played nearby at Bermuda Dunes Country Club and public golf at Heritage Palms Country Club. The Association is comprised of 381 Mediterranean-styled single-family homes. These homes feature open floor plans, 3-5 bedrooms, 3-5 bathrooms, 2-3 car garages, and some even have a guest casita. The homes range in size from 1,822 to 3,249 sq. ft. and sit on lots ranging from 8,000 to 17,000 sq. ft. Currently, home values are in the range of $700,000 to $900,000.
"THIS COMMUNITY IS QUIET AND WELL MAINTAINED. IN THE HEART OF THE COMMUNITY IS THE ESPLANADE FOR STROLLING AND MEETING NEIGHBORS."
Board member Jack Keady states, "The Esplanade community is conveniently located in La Quinta with easy access to the freeway, shopping, dining, and medical. This community is quiet and well maintained. In the heart of the community is the esplanade for strolling and meeting neighbors. Desert Resort Management does a great job supporting the board in keeping Esplanade one of the most desirable communities in La Quinta."
AMENITIES IN THE $196 MONTHLY ASSESSMENT INCLUDE:
• Cable and Internet
• Security
• Parks
• Playgrounds
• Two Bocce Lanes
• Community/Family Events
• Vehicle Gates
• Common Area Landscape
The community recently completed a landscape conversion project to help with water conservation efforts. Special emphasis was made to maintain the tranquil beauty of the esplanade, its namesake, that runs the length of the community and is adorned with beautiful landscaping and seating areas for the owners to gather with neighbors.
The board of directors currently relies on help from three committees, Architectural, Newsletter, and the Welcoming Committee. The Association teams with reputable CAI-CV business partners including Delphi Law, LLP, Newman Certified Public Accountant, SCT Reserve Consultants, Frazier Pest Control, Asphalt MD's, Pacific Western Bank (Banc of California), Frontier, and Associa on Call.
Esplanade is a vibrant tapestry of diverse individuals who come together to create a warm and welcoming environment. From the meticulously maintained grounds to the Holiday Cart Parade and a visit from Santa, every aspect of life here is designed to foster a sense of belonging and pride among the residents. The board of directors believes in fostering strong relationships and open communication, ensuring that everyone feels heard and valued. Together, homeowners make Esplanade a community and a place to thrive, not just a place to live.
Esplanade Homeowners Association is managed by Gretchen Redewill, CCAM, CMCA, AMS, Community Association Manager with Associa Desert Resort Management. Gretchen can be reached at 760-346-1161 or via email at gredewill@drminternet.com.
Ashley Layton, PCAM, AMS, CMCA is Vice President of Premier Community Association Management. She can be reached at (760) 345-2449 or email her at ALayton@brcpcam.com. www.brcpcam.com
HCLAC Update
CLAC UPDATE
By Stacie Donnelly, PCAM, CCAM
ello from CLAC! Who and what exactly is CLAC you might be asking? The California Legislative Action Committee (a committee of CAI) is made up of volunteers who care fiercely about the legislative process and laws that govern our industry. These folks commit hours of their time to review legislation that will either hinder or further our efforts as professionals, working to provide excellent services to our clients, common interest developments. They also determine if CLAC should support, oppose, or seek amendments on the legislation.
AB 2460 also passed out of the Assembly and will be heard in the Senate Housing and Judiciary Committees in June. This bill provides clean-up language to existing law found in Civil Code 5115, dealing with a reduced quorum in board member elections.
A major victory for our industry came in the pulling of SB 1470 from consideration, by the AUTHOR himself! This bill would have made changes to SB 800, construction defect law, already in place and already working well. Not even the Builders Association could get behind this bill which would have shifted the burden of construction defect claims to associations and owners. Thank you to everyone for your efforts in educating our legislators on this terrible bill and creating the pressure at the Capitol to get this defeated early!
"THESE FOLKS COMMIT HOURS OF THEIR TIME TO REVIEW LEGISLATION THAT WILL EITHER HINDER OR FURTHER OUR EFFORTS AS PROFESSIONALS, WORKING TO PROVIDE EXCELLENT SERVICES TO OUR CLIENTS, COMMON INTEREST DEVELOPMENTS."
To that end, here is a status update on where we are in the current legislative year.
Our sponsored bills continue to move through the legislative process.
A few other bills we are watching…
CAI-CLAC TWO MINUTE UPDATE ON YOUTUBE:
AB 2114 , which will make balcony inspections and the upcoming deadline easier to achieve by adding civil engineers to the list of professionals approved to complete the inspections, has moved with no opposition, thus far. The next hearings are in June and this bill carries an urgency clause so the hope is to have it on the Governor’s desk before the summer recess in early July, and signed into law, which would take immediate effect.
Two other bills deal with elections. AB 2159 will allow the use of electronic balloting for association elections. This bill has passed out of two policy committees and the Assembly Floor unanimously. It will be heard in the Senate Housing and Judiciary Committee during June. This would be a huge victory for our clients saving time and money, and likely increase participation in elections too!
AB 2149 would increase costs to associations by mandating gate inspections. CLAC is opposing unless amended. We are hoping for a carve out for Associations with this bill.
SB 1095 would void any document or policy that prevents replacement of gas burning appliances with electric. CLAC is opposed unless amended as this would also be costly, and difficult on the electric grid of California.
The Insurance Task Force is very busy and has already served countless hours trying to help find solutions to our insurance crisis. AB 2260 and 2996 have both been introduced and CLAC supports these bills, which would make improvements to the FAIR Plan.
And lastly, SB 900, which in its original form would have been very detrimental to our industry, has made serious improvements through the efforts of our lobbyist and Governance Task Force seeking amendments to make the bill more palatable. This bill would have created strict liability on an association for not starting repairs to broken gas lines in a specific timeframe.
Thank you for taking the time to read this article. It shows you care about the legislation that impacts our clients, and all of us volunteers and professionals too! If any of this fuels passion within, please join CLAC’s efforts at any level you are comfortable with. Follow on socials, join a committee, attend Advocacy Week April 2025… anything helps!
Stacie Donnelly, PCAM, CCAM, is the CFO of Condominium Financial Management, Inc., ACMC in Walnut Creek, California. She can be reached at stacied@condofinancial. com or by phone at (925) 566-6672.
CAI-CV ANNUAL BOWLING TOURNAMENT
B E A C H B A L L
Friday, July 12, 2024, 5:30 PM
Palm Springs Lanes
68051 Ramon Rd, Cathedral City
TITLE SPONSOR
$35 Managers & Community Board Members
$100 Non-sponsor Business Partners
Beach Attire
REGISTRATION: AVAILABLE SPONSORSHIPS:
THANKS TO OUR SPONSORS
LANE SPONSORS
Asphalt MD’s X 2
Associa Desert Resort Management X3
EmpireWorks
Flood Response X2
Frazier Pest Control X2
Hotwire Communications
Ivan’s Painting
Lloyd Pest Control
Precision Roofing & Waterproofing
Pro Landscaping Inc.
RB Roofing LLC
Roof Asset Management
SCT Reserve Consultants
Solar Central Inc.
Sun King Electric X2
Vintage Landscape
GREETING SPONSORS
Coachella Valley Public Safety
Sherwin-Williams Paints
STRIKE SPONSORS
Coachella Valley Public Safety
Epsten, APC
Hotwire Communications
Securitas Security Services
DESSERT SPONSOR
Precision Construction & Painting
BOWLING SHOE SPONSOR
Dunn-Edwards Corporation
BAR SPONSORS
LaBarre/Oksnee
Insurance Agency
MC Builder Corp.
FOOD SPONSOR
Horizon Lighting
LANE ASSIGNMENT SPONSOR
Pro Landscaping, Inc.
WELCOME ABOARD
By Meaghan Gaffney-Howe, CMCA, AMS
Welcome aboard, Precision Concrete Cutting! With over 40 franchises across the United States, Canada, and Australia, Precision Concrete Cutting is a leader in the trip hazard removal industry. Their unique and patented horizontal hazard-slicing service is not only innovative but also cost-effective, at roughly 10% of the cost of fully replacing or repairing sidewalks. Their assessments are completely free, making it easy for CAI-CV members to benefit from their expertise.
Precision Concrete Cutting has worked extensively with community associations, developing a deep understanding of community needs. Their commitment to excellence, innovative solutions, and personalized service sets them apart from other vendors in the market, which ensures a seamless and productive collaboration with CAI-CV members.
An active member of several trade organizations, including CAI, CACM (California Association of Community Managers), MSA (Maintenance Superintendents Association), and APWA (American Public Works Association), Precision Concrete Cutting
Aaron Anderson
Business Development Manager
"PRECISION CONCRETE CUTTING IS A LEADER IN THE TRIP HAZARD REMOVAL INDUSTRY."
keeps up to date on industry matters. In addition, they are a CAI Educated Business Partner and hold six U.S. Patents on their saws and removal methods.
Gary Beneduci and Sue HoonBeneduci are the owners of Precision Concrete Cutting. Aaron Anderson is their Business Development Manager. Aaron has been with the company for 10 years, covering Riverside, San
Bernardino, Coachella Valley, and the Inland Empire. Originally from Valley Center in San Diego County, he has happily called the Coachella Valley home for the past three years with his wife Genina, three daughters Ava, Aria, and Isla, three dogs, and one cat. He graduated from the University of Nevada Las Vegas in 2006 and enjoys spending time with his family, attending concerts, and traveling.
Aaron can be reached at 760-234-2121 (cell), 818-318-0406 (office) or via email at aarona@safesidewalks.com.
Precision Concrete Cutting 5737 Kanan Road #718 Agoura Hills, CA 91301
Please visit www.safesidewalks. com for more information on the services that are offered by Precision Concrete Cutting that can benefit your 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.
CDs vs. U.S. Treasuries: What's Best for Your HOA Reserve Funds? A Fiduciary Financial Advisor Explains
By Lisa Beaty & John Polovick
For HOAs, financial stability and long-term planning are crucial. Funds often sit idle in low-yield accounts due to a lack of proactive investment plans and challenges from regulations like the Davis-Stirling Act. An effective strategy should prioritize both security and growth. U.S. Treasuries, especially T-Bills, provide excellent liquidity, allowing for quick access to funds. This is crucial for funding emergency projects or complying with California's SB 326. Investing in T-Bills helps HOAs not only protect their funds but also may increase yields over other available alternatives. This approach ensures that funds set aside for SB 326 are secure while generating higher returns, balancing reliable income with the immediate liquidity needed for urgent financial needs.
THE APPEAL OF U.S. TREASURIES AND CDS
U.S. Treasuries
Introduced in 1913, U.S. Treasuries are considered one of the safest investments, backed by the "full faith and credit" of the United States. They are ideal for HOA reserve accounts due to their low risk, tax exemptions, and liquidity, often yielding higher tax-equivalent returns compared to CDs.
Disclaimer: The above published rates are as of June 10, 2024, CD and Treasury rates are published weekly through HOA Invest and are subject to change. Rates are based on current market conditions and may fluctuate. Please consult with your financial advisor for the most up-to-date information.
CERTIFICATES OF DEPOSIT (CDS)
Introduced in 1961, CDs are low-risk investments offered by banks with fixed interest rates. Keeping investments under $250,000 ensures FDIC insurance coverage. They are also a suitable choice for predictable returns and meeting HOA needs.
Example: Ensuring FDIC Coverage for a 5.5% CD
To keep principal and interest FDIC insured, an HOA should invest no more than $236,686.50 in a 5.5% CD. The
correct investment varies with yield, so the financial advisor should calculate this amount for investment each time before purchase.
YIELD CURVE INVERSION
As of June 10, 2024, the 3-month Treasury and CD rates are higher than longer-term rates, indicating an inverted yield curve. Assessing and investing in accordance with the yield curve is in our opinion essential for a fiduciary financial advisor managing assets on behalf of an HOA.
A fiduciary financial advisor will consider this and the need for short-term
funds, especially for SB 326 projects or special assessment funds. Investing in short-term T-Bills (1 week to 3 months) can safeguard funds and capture the highest yields with liquidity.
For longer-term funds and regular reserve assets that are not immediately needed, a fiduciary financial advisor may recommend longer-term investments to lock in current rates before they potentially decline. This strategy, aligned with the community manager and reserve study, helps meet the HOA's broader financial needs and goals.
WHEN TO USE EACH INSTRUMENT
Choosing Treasuries or CDs depends on interest rates, tax implications, and HOA needs. Quickly purchasing the right instrument after maturity optimizes returns. This emphasizes the value of working with a financial advisor, who can help navigate boards, community managers, and Davis-Stirling requirements. A well-rounded investment strategy for HOA reserve funds should utilize both Treasuries and CDs, leveraging the strengths of each instrument to optimize returns while maintaining liquidity and safety.
RISING AND FALLING INTEREST RATE ENVIRONMENTS
As a rule of thumb, in rising rates, T-bills adjust quickly and offer better after-tax yields due to tax exemptions. CDs, with fixed rates, may not be as beneficial. In falling rates, CDs can lock in higher yields. However, an advisor needs to evaluate the best option for the HOA before each purchase.
CURBING OPPORTUNITY COST
One of the biggest expenses an HOA can incur is the opportunity cost of having idle cash in a reserve account earning only 0.5% when market rates are over 5.5%. For example, $300,000 sitting idle earns just $1,500 annually at 0.5%, but would earn $16,500 at 5.5%. This $15,000 opportunity cost each year highlights the financial advisor's lack of process and tools to keep funds fully invested, undermining the HOA's financial health and growth potential. Assessment of Reserve Study: A professional reserve study evaluates the expected lifespan and replacement costs of major components within the community. This helps determine the
"AS A RULE OF THUMB, IN RISING RATES, T-BILLS ADJUST QUICKLY AND OFFER BETTER AFTER-TAX YIELDS DUE TO TAX EXEMPTIONS. CDS, WITH FIXED RATES, MAY NOT BE AS BENEFICIAL."
appropriate investment horizon for the reserve funds, guiding whether short-term Treasuries, medium-term Treasuries, or CDs should be used.
LADDERING STRATEGY
Purchasing Treasuries and CDs with staggered maturities ensures HOA funds are always nearing maturity, allowing for regular reinvestment or withdrawal while maintaining liquidity and optimizing returns.
REGULAR REVIEW AND ADJUSTMENT
Market conditions and community needs change, so regular reviews and adjustments are essential. A financial advisor can provide insights and recommendations to keep the strategy aligned with HOA goals and the current economic environment.
BENEFITS OF INVESTING IN TREASURIES FOR HOAS
• Safety and Stability: T-bills are very secure, often considered even safer than CDs, backed by the U.S. government's full faith and credit.
• Predictable Returns: Treasuries provide predictable income with regular fixed interest payments, aiding HOA financial planning.
• Liquidity: T-bills are easily bought and sold on the open market, ensuring quick access to funds. This liquidity benefits both reserve funds and SB 326 funds. Using very short-term T-bills for SB 326 and longer-term T-bills for reserve funds can provide a powerful combination of accessibility and optimal yields.
• Diverse Options:. Treasuries offer various maturities and yields, allowing HOAs to diversify with short-term T-bills and medium-term notes. This balances immediate liquidity with long-term growth. Currently, the highest yields for CDs and T-bills are in short-term options of 12 months or less. A financial advisor tailors the portfolio based on the HOA’s reserve study and input from community managers and the board.
THE YIELD SHOWDOWN: 5.5% CD VS. 5.5% TREASURY YIELD SCENARIO
To illustrate strategic investing, consider a $100,000 investment in a 5.5% CD vs. a 5.5% Treasury yield for HOAs in California's 8.84% state tax bracket. Most HOAs fall into this bracket. T-bills, exempt from state tax, often provide better after-tax returns than CDs. Choosing the correct CD or T-bill based on rates is crucial, and a fiduciary financial advisor can help make the best decision. Consult your CPA for specific tax advice.
CD Investment:
Annual Interest: $5,500
State Income Tax Impact: $486
After-Tax Earnings: $5,014
T-Bill Investment:
Annual Interest: $5,500
State Income Tax Impact: $0
After-Tax Earnings: $5,500
The takeaway? In this example, T-bills can yield a tax-equivalent rate of 6%,
surpassing CDs after taxes. Both are subject to federal tax; consult your CPA for personalized advice. This example highlights the potential tax advantages of T-bills over CDs.
STRATEGIC DECISION-MAKING
Often CDs may offer higher aftertax yields than Treasuries. A financial advisor should calculate the tax-equivalent yield for your HOA before every purchase. A financial advisor can optimize the investment strategy, maximizing yields, ensuring growth. Keeping funds invested, rather than having idle cash, is crucial. Regular monitoring and adjustments are essential for adapting to changing conditions and meeting future needs.
CONCLUSION
For HOAs, optimizing reserve funds with the right mix of CDs and Treasuries is essential. Short-term T-bills provide the necessary liquidity for special assessment funds, including those allocated for SB 326 compliance. Meanwhile, a combination of short and long-term CDs and Treasuries can
help maximize returns for reserve funds. Engaging a fiduciary financial advisor ensures these decisions align with the HOA's financial goals, offering expert, unbiased guidance without hidden commissions. Regular reviews and proactive investment strategies prevent the costly mistake of idle cash, securing the HOA’s financial health. If your HOA requires specialized financial advice, don’t hesitate to reach out.
ABOUT KEYSTONE PRIVATE WEALTH AND HOA INVEST
Keystone Private Wealth is a Registered Investment Advisory firm that offers patented software for HOA Invest and services. Keystone Private Wealth along with its partner Capital CS Group have been helping serve HOA communities for over 15 years and over 25 years for families and individuals. Keystone Private Wealth offers fiduciary services to HOA communities with their Reserve account management. We would love to perform a complimentary review of the HOA community’s financial statement as well as the community’s process for maximizing yield and signature gathering to adhere to Davis-Stirling laws. Please feel free to contact Lisa Beaty or John Polovick at the information below.
Lisa Beaty 760-818-7037
Lisa@KeystonePW.com
73575 El Paseo Ste C-2300 Palm Desert, CA 92260
John Polovick “JP” 760-567-7987
JP@KeystonePW.com
73575 El Paseo Ste C-2300 Palm Desert, CA 92260
Keystone Wealth Services, LLC DBA Keystone Private Wealth is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Keystone Private Wealth and its representatives are properly licensed or exempt from licensure. The information in this article is for educational purposes only and should not be deemed investment advice. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital, returns for Cash Management represent the potential returns of an HOA performing their own investments, they are not net of advisory fees which would be incurred by utilizing the services of a Registered Investment Adviser which would ultimately reduce a client’s potential returns on investment. No advice may be rendered by Keystone Private Wealth unless a client service agreement is in place.
Does Your Lake Need Air?
By Patrick Simmsgeiger
Aeration is the introduction of oxygen into an aquatic ecosystem through various methods, one of them being air compressors. Compressors produce substantial amounts of small bubbles that allow for efficient gas exchange between the water and the bubbles thus raising the dissolved oxygen (DO) levels. Oxygen is one of the most important components of an aquatic ecosystem as it has a profound effect on the most important topics of a healthy body of water such as water quality, fish health, and aesthetics. A low oxygen aquatic ecosystem will suffer from unpleasant odors, unhealthy wildlife, as well as sludge build-up.
When DO levels are low in a body of water, many negative effects arise, which can compound to create a larger problem. The oxygen in the water is used by beneficial bacteria in the natural decomposition process of organic matter. When oxygen levels drop, bacteria use the next best energy source to continue the decomposition process, nitrates. Nitrates are particularly important to aquatic plant survival, however, with both bacteria and plants using this resource, it is quickly used up and will lead to plant death. Once the nitrates are depleted, the beneficial bacteria move on to the next best energy source, which involves reducing sulfates.
A by-product of reducing sulfates is H2S, Hydrogen Sulfide. Hydrogen Sulfide is extremely toxic to fish and wildlife and can cause large fish die-offs. In addition to this, H2S is responsible for the rotten egg smell characteristic of stagnant, unhealthy water. This creates a negative loop wherein dead organic matter is multiplying in the water column and the bacteria which are supposed to be decomposing it are in fact aiding in its multiplication. To further compound this problem, algal blooms generate significant amounts of dead organic matter because each alga has a very short lifespan. This dead organic matter either
depletes oxygen during decomposition or, in low-oxygen environments, accumulates at the bottom. If left unchecked, this organic matter settles at the bottoms of lakes or streams and forms sludge because there are no bacteria present to aid in its breakdown. By introducing adequate oxygen through compressors, the bacteria have enough oxygen to carry out the natural decomposition process without affecting the balance of the water chemistry.
Water stratification is the division of a body of water into layers based on temperature. In deeper lakes, water stratification occurs naturally. Warm
"NITRATES ARE VERY IMPORTANT TO AQUATIC PLANT SURVIVAL, HOWEVER, WITH BOTH BACTERIA AND PLANTS USING THIS RESOURCE, IT IS QUICKLY USED UP AND WILL LEAD TO PLANT DEATH."
water creates a top layer while colder water creates a bottom layer. The top layer is penetrated by the sun and is high in oxygen and wildlife. The bottom layer is nutrient rich but has very low oxygen levels. As seasons change, especially in colder climates, the water temperature may change causing the water layers to flip in what is called inversion. When inversions happen, low oxygen water rises to the top layer and can create huge fish die-offs by suffocating aquatic life. Air compressors aid in preventing this harmful inversion by constantly moving and churning the water column, thus preventing the body of water from forming stratified layers to begin with.
The installation of air compressors greatly improves water quality and wildlife safety. Additionally, the amount of chemicals needed to maintain a natural balance is reduced. When oxygen levels are adequate, we need to only introduce small amounts of our bio-enzyme, as the natural bacteria are already breaking down organic matter. Clarifiers can be
used sparingly as the natural decomposition process, aided by sufficient oxygen levels, keeps the water from becoming murky with organic waste. Muck-reducing pellets would be used occasionally as the bacteria, aided by the oxygen, will naturally break down this sludge. Algaecides will be reduced because algae cannot use the bottom sludge and organic waste as nutrients to bloom if they are unavailable due to the natural bacteria breaking these down first.
Patrick Simmsgeiger, Founder and President of Diversified Waterscapes Inc out of Thousand Palms, CA. He is a Certified Lake Manager (only 80 across the USA), a licensed Aquatic Pesticide Applicator and Landscape Contractor. He is an industry expert on all stages of aquatic treatment; from product development and manufacturing to application and treatment. He can be reached at (760) 837-3700 or by email to m6a2@dwiwater.com.
Enforcing Rules and Conflict Resolution: The Role of Security Officers in Guard Gated Communities
By Christopher Bair
In the secluded environment of a guard gated community, security officers play a pivotal role in maintaining not only safety but also harmony among residents. These communities often come with a firm set of rules aimed at preserving the quality of life and ensuring security. Security officers are at the forefront of enforcing these rules, particularly in areas like conflict management, traffic management, parking enforcement, and the control of residents, visitors and vendors entering the community.
TRAFFIC MANAGEMENT AND SPEEDING
One of the most significant aspects of rule enforcement in these communities is traffic management. Security officers are tasked with monitoring and managing the flow of traffic to ensure the safety of all residents. This includes enforcing speed limits, which is crucial in residential areas where children and pedestrians are frequently present. Officers utilize various tools, such as radar guns and strategically placed speed bumps and camera detectors to deter and catch speeders. Regular patrols and the presence of marked security vehicles also serve as a reminder to drivers to adhere to community speed limits.
PARKING ENFORCEMENT
Parking can often be a contentious issue in any community, and guard gated communities are no exception. Security officers are responsible for ensuring that parking rules are followed, including the prohibition of parking in fire lanes, in front of fire hydrants, or in spaces reserved for residents and guests with disabilities. They issue warnings and citations to violators and, if necessary, arrange for vehicles to be towed. This strict enforcement ensures that parking areas remain accessible and orderly, contributing to the overall aesthetic and functionality of the community.
VISITOR AND VENDOR ENTRY AT THE GATEHOUSE
Controlling who enters the community is another critical responsibility of security officers. Utilizing advanced visitor management software, officers at manned gatehouses can efficiently track and manage the entry of visitors and vendors. This software allows residents to pre-authorize guests and deliveries, streamlining the process and ensuring that only approved individuals gain access. The system logs all entries and exits, providing a robust record that enhances security and accountability. Many communities now implement License Plate Recognition technologies to support the tracking of all entering and exiting vehicles.
CONFLICT RESOLUTION
Despite the best efforts of security officers, conflicts can arise between residents, guests, and vendors. When a situation occurs, the onsite security team is often the first to respond. Guided by community guidelines and detailed post orders, security officers approach conflicts with a focus on de-escalation. Their training includes techniques for calming tense situations, mediating disputes, and ensuring
"THIS
SOLUTION CAN HELP BRIDGE THE GAP BETWEEN BOARDS, MANAGEMENT, AND RESIDENTS WHEN FACED WITH CHALLENGING AND COMPLEX ISSUES. SOME ISSUES CAN SPARK HEATED DEBATES AND STRONG EMOTIONS."
that all parties are heard. Officers document incidents meticulously and, if necessary, involve property management or law enforcement agencies.
By strictly adhering to established protocols, security officers work to ensure that conflicts are resolved in a manner that upholds the community's standards and fosters a peaceful living environment. Their role in enforcing rules and managing conflicts is crucial to maintaining the high quality of life that residents of guard gated communities have come to expect and enjoy.
CAI CIVILITY PLEDGE
Another effective community tool that can be utilized is the CAI Civility Pledge. This group works to provide a framework for effective community conversations. This solution can help bridge the gap between boards, management, and residents when faced with challenging and complex issues. Some issues can spark heated debates and strong emotions. Have your community look into adopting the CAI Civility Pledge. More information can be found on the website at: https://dualauth.caionline. org/HomeownerLeaders/CivilityPledge/Pages/ default.aspx
Have a very safe and happy 4th of July every one!
Christopher Bair is the Business Development Manager at Securitas Security Services in Palm Desert. He can be reached at: (760) 779-0728 or by email at Christopher.Bair@Securitasinc.com.
MANAGING LANDSCAPE, TURF CONVERSIONS AND WATER CONSERVATION
THANK YOU!
Guest Speakers
Adam McWey
Conservation Manager, Coachella Valley Water District
Indio Mayor Pro Tem Glenn Miller
Partner, Southwest Landscape
Jerry Parsons
Water Consultant, Palm Desert Tennis Club HOA
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Friday, September 20, 2024, 11:15 a.m.
CAI-CV EDUCATIONAL PROGRAM & MINI TRADE SHOW
AGING INFRASTRUCTURE
GUEST SPEAKERS
Chris Sigler, B.S.C.E., CDT
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Sigler & Associates, Inc.
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Lunch and Trade Show Included 11:15 AM TO 1:30 PM
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ICooling Tips to Help You Manage Hot Days
By Coachella Valley Water District (CVWD)
t’s July in the Coachella Valley --- with consistent triple-digit temperature days and nights often stuck in the low 90s. How to stay cool during the desert’s hottest month of the year? Here are some ideas. Water is often the key.
• Drink cold drinks regularly, especially water. Avoid alcohol and drinks high in sugar.
• Take cool baths or showers. Splash yourself with cool water.
• Eat healthy foods to keep you hydrated. Chilled fruits and vegetables with high water content such as watermelon, cucumber and lettuce are perfect for hot, sunny days.
• Stay hydrated. If you feel thirsty, you are already dehydrated.
• Drink more water than usual … ½ cup to a cup per waking hour of your day.
• Avoid going outside between noon and 5 p.m., the hottest part of the day.
• If you do go outside, wear loose, cool clothing, a hat, sunglasses, and plenty of sunscreen.
• Save your exercise for early morning or late evenings.
• Check up on friends, neighbors and relatives who may be less able to look after themselves.
And, if you take advantage of the greater accessibility and lower fees at Coachella Valley golf courses during the summer, consider these warm-weather golfing tips:
• Eat light. Choose healthy snacks every 3 to 4 hours to keep your blood sugar levels consistent. Look for protein bars, beef jerky, nuts, and fruit.
• Choose water or a sports drink on the course to replenish your energy.
• Avoid alcohol, caffeine, and sugary drinks.
• Choose an early morning tee time.
• Dress appropriately with synthetic fabrics designed to wick away sweat.
• Wear a hat or visor to shield your face from the sun.
• Apply sunblock to all exposed skin.
• Take a cart instead of walking. Park your cart in shaded areas between strokes.
• Apply a cold compress or wet towel to your neck when you are on the cart to cool down between strokes.
To learn more about wise water use in the Coachella Valley, click on cvwd.org/conservation.
JOIN US UNDER THE STARS AT THE BEAUTIFUL PRO LANDSCAPING NURSERY GARDENS FOR A FESTIVE EVENING
$28 for Managers & Homeowner Leaders (Late Registration and Walk-ins $40)
$70 for Non-sponsor Business Partners (Late Registration & Walk-ins $100)
• Fiesta Buffet
• Assorted Ice Cream Desserts
MEET THE COMMITTEE CHAIR
Briah Castillo, Wine Tasting Committee
By Jennifer James, Esq.
This article is part of a series featuring CAI-CV Board members and committee chairs. This month, we are featuring Briah Castillo, who serves as Chair of the Wine Tasting Committee and Co-Chair of the Bowling Committee.
Briah is responsible for the business development of Ivan’s Painting. This family-owned and locally operated business has over 55 years of combined experience and has proudly served residential and commercial properties in the Coachella Valley since 2017. As Ivan’s daughter, Briah enjoys participating in the family-run business, demonstrating strong leadership skills. She holds a BA in criminal justice from the National University of La Jolla and worked in law enforcement for a few years before joining the family business in 2023.
Although Briah is an only child, she has an enormous extended family. She is very close to her parents, who have been married for over 24 years, and refers to them as her “best friends”. While Briah doesn't have any human children yet, her dog child keeps her and her boyfriend on their toes. When Briah is not busy at
Briah Castillo Ivan's Painting
"As Ivan’s daughter, Briah enjoys participating in the family run business, demonstrating her strong leadership skills."
work, you will find her reading a book, at the gym, or spending time with loved ones. Family, including her dog, is very important to Briah.
As a leader in business development, Briah understands the importance of adapting to each team member’s learning and working style. She fosters a healthy and productive work environment stating, “I have a strong belief in treating others the way I would like to be treated.”
As an outgoing, dedicated team player, Briah demonstrates key qualities of honesty and patience by striving to learn
from everyone’s unique strengths while also helping those who are struggling. She values the happiness and well-being of her team and sincerely cares about her employees. Providing job security for the 30 employees of her company is especially important to Briah.
Briah is an active and dedicated member of CAI-CV, enjoying the friendships she has made along the way. She believes that CAI fosters “a more personal connection with the members of our community” and credits CAI for the immense growth of her company. She believes this growth has resulted from the time and investment Ivan’s Painting dedicates to CAI-CV. Briah is passionate about giving back to our industry and actively seeks opportunities to volunteer.
Briah, thank you for your service to CAI-CV and your dedication to the CID industry!
Jennifer James, Esq., is an attorney with HOA Legal Services. She can be reached at (760) 702-7929 or by email at jennifer@jenniferjameslaw.com
Understanding Loss Assessment Coverage in Your HO-6 Insurance Policy
By John Schuknecht, CMCA, AMS
Let’s outline an important aspect of your HO-6 insurance policy: Loss Assessment Coverage. As a condominium owner, it's crucial to understand how this coverage works and how it can protect you in the event of unforeseen circumstances. So, let's get started!
WHAT IS LOSS ASSESSMENT COVERAGE?
Loss Assessment Coverage is a valuable component of your HO-6 insurance policy that provides protection against special assessments levied by your condominium association. These assessments may be imposed to cover expenses related to shared property damage or liabilities that exceed the association's insurance coverage.
WHY IS IT IMPORTANT?
As a condo owner, you typically share ownership of common areas and community property with other unit owners. This means that you can be held financially responsible for a portion of any damages or liabilities that occur on the shared property, even if the cause of the loss is beyond your control. Loss Assessment Coverage helps safeguard you against these unexpected financial burdens.
HOW DOES LOSS ASSESSMENT COVERAGE WORK?
Loss Assessment Coverage can assist you in two main ways. Coverage for Property Damage: If common areas or shared property are damaged by a covered peril, such as fire or vandalism, and the condominium association requires a special assessment to repair the damage, your Loss Assessment Coverage may help pay for your share of the assessment. The coverage limit for loss assessment is typically set at a specific amount within your policy.
Liability Coverage: In some cases, you may also be held responsible for injuries or property damage caused to others on the shared property. If the association decides to file a lawsuit or make a liability claim against all unit owners, Loss Assessment Coverage can help cover your portion of the costs involved, including legal expenses, settlement amounts, or judgments.
WHAT LIMITATIONS SHOULD YOU BE AWARE OF?
While Loss Assessment Coverage is valuable, there are certain limitations to keep in mind.
Coverage Limit: Your policy will have a specific limit for Loss Assessment Coverage. Ensure you review and understand this limit, as it may vary depending on your policy and insurer. Consider purchasing higher coverage limits if you believe your exposure to potential assessments is greater.
Covered Perils: Loss Assessment Coverage generally applies to perils covered under your individual condo insurance policy. It's essential to review your policy documents to understand the specific risks covered and any exclusions that may apply.
Deductibles: Your policy might include a deductible that applies to Loss Assessment Coverage. Make sure you are aware of this deductible amount, as you would need to pay it out of pocket before your coverage kicks in.
Assessments Predating Coverage: Loss Assessment Coverage typically does not cover assessments imposed before you purchased your HO-6 policy. It's important to verify this with your insurer, as they may offer optional coverage extensions for assessments predating your policy.
*Coverages Vary by Carrier: Make sure to ask your agent if the coverage applies to deductibles or any other specific coverage you are concerned about. Each carrier has their own forms and coverage specifications.
FINAL THOUGHTS:
As a responsible condominium owner, understanding the intricacies of your HO-6 insurance policy, including Loss Assessment Coverage, is crucial. By having this coverage in place, you can protect yourself from unexpected financial burdens arising from shared property damages or liabilities. Review your policy, consult with your insurance agent, and make informed decisions to ensure you have adequate protection.
John Schuknecht, CMCA, AMS is an Account Representative at LaBarre/Oksnee. John can be reached at 657-207-4789 or JohnS@hoa-insurance.com
WELCOME ABOARD
By Meaghan Gaffney-Howe, CMCA, AMS
Welcome aboard, Quality Green Landscape! With over 30 years of experience providing services in landscape architecture, construction, management, and tree care, Quality Green Landscape is a landscape development company that takes projects from initial design to post-completion maintenance. Their Coachella Valley-wide portfolio of commercial landscape includes new construction installations as well as design-build and turf removal projects. The company (consisting of 25 employees – and growing) works closely with homeowners associations in the design process to meet enhancement budgets, water district design requirements, and city approvals.
Quality Green Landscape holds California State licenses C-27 (Landscape Maintenance) and D-49
Chris Martinez, PLA, MBA
Quality Green Landscape
"QUALITY
GREEN LANDSCAPE IS A LANDSCAPE DEVELOPMENT COMPANY THAT TAKES PROJECTS FROM INITIAL DESIGN TO POSTCOMPLETION MAINTENANCE."
(Tree Trimming), as well as the PLA Designation as a Professional Licensed Landscape Architect. They are also active in the ASLA, the American Society of Landscape Architects.
Chris Martinez, PLA, MBA, and Moises Martinez are the primary contacts for Quality Green Landscape. They can be reached at (760) 347-4640 or info@qualitygreenlandscape.com.
A Cathedral City High School graduate, Chris Martinez earned a B.A. in Landscape Architecture from Cal Poly, San Luis Obispo, and holds a master's degree in business administration from the University of Arizona. His hobbies include hiking the local trails, running marathons, and checking out breweries with friends.
Please visit www.qualitygreenlandscape.com for more information on the services that are offered by Quality Green Landscape that can benefit your 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.
ATTENTION COMMUNITY ASSOCIATION MANAGERS AND ASSISTANT MANAGERS SAVE THE DATE FOR CAI-CV’s
Community Association Manager Day
EDUCATION SESSIONS | JULY 26
CAI-CV invites you to CAMDAY, our annual all-day manager educational event, tailored specifically for professional community association managers and assistant managers featuring a lineup of unique and exciting courses, topics, and speakers designed to enhance your professional skills and knowledge taught by industry professionals.
CAMDAY 2024: Be part of a great, fun day with other managers for short 45-minute sessions throughout the day. 8 CEUs!
Goals for the day: Get CEUs!; Hone your professional skills; Interact with others; Learn together in a fun and lively setting; Engage in relationships that will support you and your career.
Education Topics: (1) Wake Up/Welcome Session; (2) Making the Most of Your Day!; (2) Industry Secrets; (3) Expanding Your Comfort Zone; (4) Phone A Friend (Using Your Resources); and (5) Open Forum – Expert Panel. Happy Hour to follow the closing!
Friday, July 26th at Sun City Palm Desert, 38180 Del Webb Blvd., 8:30 a.m.-5:00 p.m.
Please notify Cal at clockett@cai-cv.org if you need assistance with registration fees.
Managers Earn 8 Continuing Education Units (CEUs)
Registration: 8:30 a.m.,
Program: 9:00 a.m. - 5:00 p.m.
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RB Roofing LLC
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United Paving Co.
Vintage Landscape
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CAI Launches Lawsuit to Protect HOAs From Corporate Transparency Act
By Tom Skiba, CAE
This month, the CAI Board of Trustees approved filing a lawsuit to exempt and protect community associations from burdensome requirements outlined in the Corporate Transparency Act. The suit challenging the U.S. Department of Treasury’s restrictive obligations underscores CAI’s unwavering commitment to protecting the community association housing model and its members’ interests.
CAI firmly believes the act’s requirements place an excessive burden on community associations, which operate differently from traditional corporations and small businesses. The lawsuit is expected to be filed this summer. Your involvement and support are crucial as we navigate this legal challenge. Here are several ways you can get involved:
Stay Informed. Visit the dedicated webpage for real-time updates on the lawsuit and related developments. CAI will regularly post news and updates to keep members informed on progress in the case. www. caionline.org/CTA
Join Advocacy Efforts. Reach out to your local representatives and express support for CAI’s position surrounding the act’s requirements. Your voice can make a significant impact.
Community Discussions. Participate in CAI-led online forums and webinars to discuss the lawsuit’s implications and gather member feedback. Your insights and experiences are invaluable.
Spread the Word. Share information about the lawsuit and its impact with your network and community stakeholders. Increased awareness will help build broader support for the case.
CAI is committed to keeping members informed about the suit. Regular updates will be provided through the website, emails, and special briefings. Together, CAI will continue to protect the best interests of community associations and work to generate a fair and reasonable resolution.
Thank you for your continued support and engagement.
Thomas M. Skiba, CAE, is the Chief Executive Officer of CAI.
FROM THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE
WE NEED YOUR HELP! GRASSROOTS SUPPORT FOR ELECTRONIC VOTING
Click or scan the QR code to contact your senators
We need your support to help get the electronic voting bill, Assembly Bill 2159 approved by the Senate Judiciary Committee on July 2, 2024. If passed, this bill would allow your HOA the option of conducting most elections electronically, saving your association money and making it easier for homeowners to participate!
Currently, HOAs rely on a paperbased mail-in-voting system similar to Californian’s vote-by-mail process. While vote-by-mail is a valid method for voting, it suffers from low community participation and significant costs. Additionally, if an association fails to meet the quorum requirement, the election must be postponed and then rescheduled, which increases costs and inconveniences owners.
Transitioning to an electronic balloting system will allow California to join twenty-seven other states and bring the community association election process into the modern era, increasing participation and efficiency. Electronic voting can make it easier for homeowners to vote, leading to higher turnout and more representative elections. In addition to reducing costs associated with printing, mailing, and processing paper ballots, electronic voting is also an environmentally friendly process. Electronic balloting systems are not a new idea, just new to California. Allowing HOAs to vote electronically is long overdue and will increase participation and reduce costs for HOAs.
Email your Senator to urge them to vote in support of AB 2159. Tell your Senator you want AB 2159 to pass the Senate Judiciary Committee!
Isn’t the HOA supposed to take care of that?
The Importance of a Good Maintenance Matrix and the Homeowners’ Responsibilities
By Chris Sigler, B.S.C.E., C.D.T.
From an early age, we’re taught by our parents to “take care of our things.” As owners and residents in an HOA, nothing has changed. We still need to take care of our stuff! But what are we responsible for taking care of at our home when we are members of an association? There are usually clear lines that are drawn as to what the HOA is responsible for, and what the owners need to maintain. These dividing lines are normally outlined in an important part of CC&Rs, our governing document: The maintenance matrix. Depending upon the type of association, there are different levels of what the HOA is responsible for maintaining vs. what the homeowner is responsible for. In most condominium governing documents, the HOA’s maintenance responsibilities include a great deal of things, and the homeowner is responsible “from the sheetrock in.” In other cases, the HOA is responsible for the exterior basics - roofing and paintingand nothing else. Every association type and set of governing documents are different, and it’s important to closely manage what is identified in the maintenance matrix, if the documents have one. Thankfully, most do and if there is none, responsibilities will be stated in another form within the documents. A maintenance matrix is very important to keeping the
association well-kept and in good working order. There are various forms of how a maintenance matrix is shown:
• Written descriptions of obligations within the body of the document in paragraph form
• Lists of components to be maintained
• Charts/tables/spreadsheets showing components
All the different forms of a matrix will have headings to separate out “Association Maintenance Obligations” and “Owner’s Maintenance Obligations” and will usually delineate between the interior and exterior of a unit, common area, and exclusive use common area (such as a balcony or patio). In addition, the document normally contains restrictions that can affect what an owner or their tenants can or cannot do, and many times the CC&Rs and/or Rules & Regulations are developed and legally adopted to maintain order and good conditions around the community.
With the boundaries and obligations delineated in the document, the challenge is to make sure that everyone is doing what they are supposed to do and that rules are being followed! The reserve study will outline the costs of the association’s maintenance responsibilities and timelines, but who will ensure that the owner’s responsibilities are being met?
For a new homeowner who has never owned a home in an association, education and consistency is the key. The board of directors and management are ordained the task of “getting the word out” and making sure that the homeowners know the “dos and don’ts” of their unit, their exclusive use common area, and the common area around their home. The use of newsletters, websites and other methods of communication are the keys to keeping order and making the community clean and well-kept. When rules are broken, enforcement can be a painful process but again, consistency is the key.
A new homeowner may have the age-old belief that “I own a condo now, so I can call management and get things fixed when I need to,” which many times is not the case at all. Just as with any other type of home ownership, it is important to keep things clean and in good working order. Examples of an
owner’s misuse that can many times create problems for an owner and association are when an owner:
• Paints parts of the exterior of their unit in an un-approved color – such as a front door
• Puts up building or unit numbers that are inconsistent with the neighbors
• Installs porch or balcony lights that are not approved
• Uses their exclusive use common area for excessive storage
• Doesn’t clean around or clear drains on their balcony or patio and it backs up and creates damage
• Attaches unapproved artwork or other items to the exterior of the building
• Uses unauthorized charcoal barbeque on their balcony, creating burns and charcoal damage to the balcony surface
"IF THE BOARD HAS DEVELOPED A WELL-DOCUMENTED, CONSISTENT, AND LEGAL PROCESS FOR ENFORCEMENT AND FINES, THIS WILL GAIN THE HOMEOWNERS’ ATTENTION AND WILL CREATE A SENSE OF ORDER AND UNIFORMITY."
There are plenty of other examples, but the examples provided are quite common. If the board has developed a well-documented, consistent, and legal process for enforcement and fines, this will gain the homeowners’ attention and will create a sense of order and uniformity.
Most importantly, keeping the maintenance matrix and rules enforcement as top of mind will help to create a clean, well-kept community for greater enjoyment, and will enhance property values for everyone to benefit from!
No matter how challenging your community’s maintenance obligations may be, an attentive, thoughtful and forward-thinking approach to maintaining your common areas and enforcing your association’s maintenance matrix responsibilities and obligations can minimize unintended damages and enhance the value of the community.
Chris Sigler is the President and Owner of C.L. Sigler & Associates, Inc., a Construction Management and Consulting firm that has exclusively served the HOA industry for 23 years. He is a Civil Engineer by trade with more than 30 years of Engineering and Construction experience and is actively involved in SB 326 inspections throughout the Coachella Valley. Chris is certified with the Construction Specifications Institute (CSI) as a Construction Documents Technologist. Located in Palm Desert, his firm serves the Coachella Valley and Riverside County, while serving the San Francisco Bay Area in Northern California from their San Jose Corporate office. Chris can be reached at 408-210-8003 or by email at chris@siglercm.com www.siglercm.com
CAI-CV's Comedy Night
Cash Levy
The Tonight Show
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Samantha Hale
Laughs on Fox
Comedy Central
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FRIDAY, JUNE 7, 2024
SUN CITY PALM DESERT, SIERRA BALLROOM
Winter Wonderland
Enjoy an evening under the stars at Shields Date Garden. Enjoy holiday shopping at the amazing silent auction and tour the gardens while sipping on extraordinary wines and tequila!
Sips SipsShots Shots & &
TITLE SPONSOR
Friday, December 6, 2024 5:30 p.m.
Shields Date Garden
80225 Hwy 111, Indio (Je erson & 111)
Live & Silent Auction
More than $10K of auction items!
Plan Your Holiday Shopping!
Golf Outings, Coach Purses, Gift Cards, Luxury Items, Jewelry, Christmas Decor, & Much Much More!
$45 Members & Nonmembers
ADMISSION INCLUDES
• Champagne Reception
• Wine & Tequila Tasting
• $10,000 in Silent Auction Items
• Live Auction
• Shields’ Finest Dinner–Appetizers & Bu et
• Door Prizes & Grand Prize
• Self-guided Garden Tours
Community board members and managers receive a discount for attending the board and manager education on December 6th at 3:30 P.M. EDUCATION AND SIP & SHOTS FOR $25
Thanks to our Sponsors
TITLE SPONSOR
Associa Desert Resort Management
WINE TASTING SPONSOR
Hotwire Communications
TEQUILA TASTING SPONSOR
Ivan’s Painting & Maintenance
CHAMPAGNE SPONSOR EmpireWorks
LIGHTING SPONSOR Sun King Electric, Inc.
ENTERTAINMENT SPONSOR
Precision Construction & Painting
RESERVED TABLE SPONSORS
Associa Desert Resort Management
C.L. Sigler & Associates
Harvest Landscape
FOOD SPONSOR LaBarre/Oksnee Insurance Agency
SILENT AUCTION SPONSOR Fiore Racobs & Powers, A PLC
GRAND PRIZE SPONSOR Delphi Law Group, LLP
COCKTAIL NAPKIN SPONSOR Dunn-Edwards Corporation
CLAC SPONSOR Epsten, APC
SCHOLARSHIP SPONSOR NLB Consulting
SPONSORSHIPS
Remembering Surfside
By Thomas M. Skiba, CAE
As we mark the third anniversary of the Champlain Towers South tragedy in Surfside, Florida, I want to take a moment to honor the memory of the victims and reiterate CAI’s commitment to promoting safety and resilience within community associations.
The lessons learned from this devastating event underscore the critical importance of proactive measures such as regular inspections, preventive maintenance, adherence to building codes, and comprehensive emergency preparedness planning in condominiums, cooperatives, and homeowners associations.
CAI responded by initiating a comprehensive effort to supply community association leaders with the knowledge and tools to safeguard their communities and residents. Chief among those efforts has been educating board members and community managers about the importance of prioritizing structural integrity assessments and promptly addressing potential risks. Effective communication regarding maintenance needs and safety protocols also is essential to foster a culture of vigilance and responsibility.
In addition, in the years since the tragedy, CAI has been at the forefront of advocating for legislative changes to enhance building safety standards. We continue to work with lawmakers to introduce and pass legislation mandating regular inspections, transparency in maintenance records, and adequate reserve funding. These measures are designed to ensure all community associations adhere to best practices in building safety and maintenance.
I want to assure the entire community management industry that CAI remains dedicated to providing education, resources, and support to community associations to protect the lives, well-being, and investments of all community residents.
Thank you for your continued support and engagement.
Thomas M. Skiba, CAE, is the Chief Executive Officer of CAI.
Surfside/Condo Safety Resources
By Emily Jennings, CAE
As we mark the third anniversary of the Surfside tragedy this month, CAI has updated resources on condo safety, maintenance, repairs, and reserve funding.
A. UPDATED CONDO SAFETY WEBPAGE: www.condosafety.com
B. HOA RESOURCES FOR CONDO SAFETY: What owners need to know about maintenance and reserves: https://hoaresources.caionline.org/condosafety-surfside-best-practices/
C. ADVOCACY BLOG: https://advocacy.caionline. org/we-remember-and-continue-ourcommitmentto-condominium-safety/
D. LIGHTBOX OF ALL OUR UPDATED CONDO SAFETY AND SURFSIDE IMAGES: https://cai.mediavalet.com/galleries/b57f8ddf-4c934450-bd9f-66e8497e873d_d31a4b66-524c-4e32-8863418b75fa2bc3-ExternalUser
We also encourage you to reach out to your communities to have them share their stories on social media regarding ways the disaster prompted them to change the way safety, maintenance, repairs, and reserve funding are handled.
Here are some questions for your communities to think about as they tell their stories: What are you doing differently? What impact has Surfside had on your community? What challenges have you faced in making changes? What have the changes taught you?
E. HERE IS AN EXAMPLE OF A COMMUNITY’S STORY: https://lscpagepro.mydigitalpublication.com/ publication/?m=20613&i=819074&p=30&ver=html5
F. Your communities can also share their stories directly with us to be used as content in CAI publications, marketing, social media, and media outreach. Send your stories to media@caionline.org Please include your name, community, and contact information.
Anonymous responses will not be considered.
Emily Jennings, CAE, is a CAI Senior Manager of Chapter Support & Development (Southeast) Administrator, FL Legislative Alliance. Emily can be reached at (703) 970-9255 or by email at ejennings@ caionline.org.
Employing Enforcement Strategies with CC&Rs
By Laurie S. Poole, Esq
It is not unusual for board members to ask whether they can adopt a certain rule or CC&R provision. However, one of the questions that needs to be asked is whether the association will be able to enforce that new rule or provision. The ability to enforce an association’s governing documents is as important as having rules to enforce.
When thinking about enforcement, boards and managers need to remember what the goal is – gaining the member’s compliance. In furtherance of that goal, employing an enforcement strategy is key.
The first place to start is understanding the association’s scope of enforcement. Review the language in the CC&Rs to be sure the association can adopt rules covering conduct in the common area, as well as actions within the member’s separate interests. Many violations, such as noise, originate in an owner’s home. Ideally, the language in the CC&Rs should give broad authority for the board to adopt rules concerning the entire development, as well as the ability to enforce those rules.
Essential to developing an enforcement strategy is having an enforcement policy. The policy can either be part of the association’s rules and regulations, or a stand-alone document. It should not be part of the CC&Rs since the policy will contain specific information that may need to be changed from time-to-time. Being able to make changes through the rule amendment procedure without a membership vote is more efficient and cost-effective than amending the CC&Rs. Adopting or amending the enforcement policy needs to be done in conformance with Civil Code §4360, requiring that members be provided with general notice of a proposed rule change.
What should be included in the enforcement policy? Important concepts include:
HOW VIOLATIONS WILL BE REPORTED TO THE ASSOCIATION.
Typically, owners and residents report violations directly to the association. The policy should state that reported violations need to be in writing and anonymous reports will not be considered. Other methods of reporting violations can include noting violations during “walkthroughs.”
The ability to enforce an association’s governing documents is as important as having rules to enforce.
ENFORCEMENT PROCEDURES.
The procedures should include having the board or management investigate the alleged violation, sending notification to the responsible owner(s), imposing discipline, and initiating legal action. Generally, enforcement starts mildly such as sending a “courtesy notice” and increases in consequences if the member doesn’t comply. The The Law Journal Winter 2020 | cacm.org policy should give the board flexibility to take different steps, depending on the severity of the violation. For instance, a courtesy notice may be too “tame” for violations that are more urgent in nature. Rather, a cease and desist letter from legal counsel may be a starting point for more egregious violations.
IMPOSING DISCIPLINE.
Crucial to any enforcement strategy is imposing discipline on violating members. Disciplinary measures may include monetary fines, suspending use of common facilities, or even disabling non-essential services such as cable TV. If monetary fines are going to be imposed, Civil Code §5850 requires that a schedule of the monetary penalties be provided to each
member. The schedule must also be included in the annual policy statement distributed pursuant to Civil Code §5310. Monetary fines need to be effective, yet reasonable. Generally, a range of amounts for each violation (first, second, third) is a good approach, with each fine increment increasing. How about continuous or daily fines? Boards need to understand imposing fines is not a source of revenue. Rather, the objective is to gain member compliance. If a member does not change their behavior after one or two fines have been imposed, rather than continuing to apply fines, associations should consider alternate enforcement approaches, such as sending a letter from legal counsel, inviting the member to internal dispute resolution (IDR), or initiating alternative dispute resolution (ADR).
DUE PROCESS – PRIOR NOTIFICATION AND HEARING.
Civil Code §5855 requires that before disciplinary action can be imposed, including monetary charges, the member must be provided notification and an opportunity to be heard by the board. The statute states that such notice needs to be given at least 10 days before the hearing. However, if the association’s governing documents require a longer time frame, consult with legal counsel as to which time period to use.
HEARING PROCEDURES.
The enforcement policy should include the procedures for how the hearing will be eld. Common questions are whether the member is entitled to see the complaint or other evidence that has been compiled against them and whether they can bring witnesses. There are differing legal opinions regarding those issues, so boards should consult with legal counsel. Addressing those matters in the enforcement policy will set
Having an enforcement POLICY is essential to developing an enforcement STRATEGY.
expectations whatever decision is made. The board will need to notify the member of the decisions made within 15 days after the hearing.
INITIATING LEGAL PROCEDURES.
Key to an enforcement policy is knowing when to initiate legal proceedings. Once a board has exhausted fining, suspension of member privileges and other non-legal remedies, it is time to consider sending a letter from legal counsel, offering IDR and/or ADR. Often, compliance is achieved once the member realizes legal counsel is involved. Also, since a hearing is viewed as an adversarial proceeding, sitting down with the member in an IDR meeting to express views and work in good faith to resolve a dispute can have effective results. Effective enforcement requires governing document support and employing a strategy to reach the goal – member compliance.
Laurie S. Poole, Esq. is the Co-Managing Partner at Adams|Stirling PLC, with offices throughout California, including Palm Desert. You can reach Laurie at lpoole@adamsstirling.com or (760) 620-0747.
"Once a board has exhausted fining, suspension of member privileges and other non-legal remedies, it is time to consider sending a letter from legal counsel."
BOARD MEMBER INSIGHTS FOR A SUCCESSFUL HOA
By Tony Michaelis
I’m in my sixth year serving as a board member and president of my HOA and for the most part, it has been a rewarding and beneficial experience. Although there are many ways an HOA can be successful, having a leadership team that has experience, keeping good records, and training and ongoing networking opportunities can go a long way to ensure positive outcomes for our communities.
EXPERIENCE:
Many HOAs in the Coachella Valley benefit from retired homeowners who serve in their community boards and bring valuable life experience through prior leadership career positions. Many of these homeowners have developed strong financial, communication, and interpersonal skills which are invaluable to being able to effectively address HOA operational, financial, and budget oversight as well as legal, compliance, and conflict resolution issues. We are grateful for the experience of all our homeowner leaders.
PASSING THE BATON:
We all know that the board changes annually and sometimes more often. Having a method for handing down historical knowledge about your HOA is very important. Ideally, outgoing board members would mentor incoming leadership on ongoing and historical HOA activities. Your board can establish a mentoring program, and your management company can help keep accurate records that can help new board members understand the reasoning behind key historic decisions.
"HOA BOARD AND COMMITTEE VOLUNTEERISM AND INVOLVEMENT IS REWARDING AND HAS MANY BENEFITS. IT IS A WAY TO GIVE BACK AND MAKE YOUR COMMUNITY A BETTER PLACE TO LIVE."
TRAINING:
Providing new board members with orientations, augmented by ongoing educational programs is a key ingredient for successful HOA leadership. Many management companies and law firms offer annual board orientation sessions that include modules on governance, operations, budgeting, reserve funding and homeowner relations. In addition, we are fortunate in the Coachella Valley to have an outstanding resource, CAI-CV, which offers ongoing education workshops on a variety of topics. Ongoing training and education are an essential part of a board member’s responsibility. Make sure your board members are signed up for CAI and are receiving their materials and invitations to educational sessions.
NETWORKING:
As a board member, it is invaluable to have a network of HOA leaders and professionals who you can access to
meet your community’s needs. Here in the Coachella Valley, we have two resources to help, the Desert Cities HOA Council and CAI-CV. Through these organizations, sharing information, knowledge and resources within the HOA community helps board members make better decisions in areas like managing landscaping, budgeting, managing reserves, dealing with vendor referrals, contracts, and keeping up to date with constantly changing rules and regulations impacting HOA operations. It is important that board members have the time and inclination to participate in networking for their communities.
CONCLUSION:
Contrary to things you might hear, HOA board and committee volunteerism and involvement is rewarding and has many benefits. It is a way to give back and make your community a better place to live. Having the right experience, training and networking opportunities are important ingredients needed for HOA leadership success. It’s essential to also note that a good association manager is critically important. Membership in CAI-CV, which provides ongoing access to educational programs and outstanding HOA professionals, is also an important component for successful HOA operations.
Tony Michaelis is the Board President of Montage at Mission Hills, a 128-home HOA in Cathedral City. He is a retired hospital administrator at UCLA Medical Center. Tony can be reached at tonymichaelis@icloud.com.
