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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.
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Jolen Zeroski, First Citizens Bank Become an
CHAPTER
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.
Happy October to all our members. Cooler weather is on its way! We hope!
In the news - CAI National has launched a lawsuit to exempt HOAs from the Corporate Transparency Act’s onerous filing requirements. Please take some time to read CAI’s announcement about the Corporate Transparency Act on page 24 from CAI’s CEO, Tom Skiba, CAE. In the meantime, it is important to work with your HOA’s council to comply with the current law.
We are receiving wonderful accolades from HOA residents who are now receiving HOA Living Magazine. They appreciate the education on the back-end management that’s required to make our communities thrive. If you want to share HOA Living with your residents, you can use this link each month: HOA Living Magazine - CAI-CV The electronic version of the magazine is free.
To help you cool off and improve your HOA IQ--and have some fun—we have some fantastic educational and networking events planned for October. Board members and managers are invited to a workshop on Tuesday, October 8th that will address RFPs (Requests for Proposals), Contracts, and the associated legal liabilities. And, of course, there will be an opportunity to ask our experts questions. Here is the link to sign up:
On Friday, October 18th, you are invited to attend our Educational BREAKFAST Program & Mini Trade Show on the topic of Election Nightmares and Board Recalls. Mandie Chlarson (NLB Election Consulting) and I will be the guest speakers. We will discuss recall petitions, cumulative voting in a recall election, the nominations process, disqualification of candidates, election rules, and making sure you have the proper notices. More information can be found on page 12.
Sign up here: https://www.cai-cv.org/events/EventDetails.aspx?id=1872558&group=
Ole! The Oktoberfest Committee is changing things up this year with an amazing OKTOBER-FIESTA, planned at Pro Landscape’s beautiful nursery. There will be plenty of beer, axe throwing, and great food. I hope to see you all there on Friday, October 25th. You can sign up here: https://www.cai-cv.org/events/EventDetails.aspx?id=1869486&group=
The Chapter’s annual Legislative Update will be held as a lunch program at Sun City Palm Desert on Friday, November 15th. If you are a business partner, please consider joining us for the largest trade show of the year. We will bring you up to date on legislation and case law changes that will impact the HOA industry. You don’t want to miss this important program. To participate in the trade show, see page 15. To register to attend, follow this link: https://www.cai-cv.org/events/EventDetails.aspx?id=1872574&group=
Many thanks to our Education Committee and guest speakers for our Lunch Program on September 20th. Chris Sigler, B.S.C.E., CDT (Sigler & Associates) and Jolen Zeroski, CMCA (First Citizen’s Bank), provided an excellent program on Aging Infrastructure at Sun City Palm Desert. Please see the photos on page 16.
You may sign up for CAI-CV events and educational programs at: Community Calendar - CAI-CV. Also, you can use the links in the Monday Update (emailed to all members every Monday). Please see page 32 for upcoming events and programs.
On behalf of the CAI-CV leadership team, we wish you a safe and enjoyable October and look forward to seeing you at our upcoming events!
Julie
The Corporate Transparency Act (CTA) requires many entities doing business in the United States to report information about the people who own or control the businesses. The CTA was enacted because there was no uniform reporting in United States requiring information about the “beneficial owners” of these entities. “Malign actors” can conceal their ownership to facilitate “illicit” activities including money laundering, financing terrorism, and human and drug trafficking. The CTA required the Secretary of the Treasury to maintain the information required to be reported in a secure, nonpublic database. A reporting system has been established by the Financial Crimes Enforcement Network (FinCEN).
United States corporations, limited liability companies (LLCs), and other entities created by filing a document with a secretary of state or similar office are considered “reporting companies” which, unless specifically exempted, must comply with the CTA.
FinCEN has confirmed that homeowners associations that were created by filing a document with the secretary of state and are not recognized by the IRS as section 501(c) organizations or otherwise exempt must comply.
Do Associations Need to Comply with the Corporate Transparency Act?
By Laurie S. Poole, Esq., CCAL
Tax-exempt entities that meet any one of four stated criteria do not have to report under the CTA. One such criteria is that the entity is described in section 501(c) of the Internal Revenue Code of 1986 (Code) (determined without regard to Section 508(a) of the Code) and exempt from tax under section 501(a) of the Code.
To determine whether your association falls under the 501(c) tax-exempt exception, consult with your CPA and/ or a tax attorney.
Also exempt are large operating companies, defined as entities that meet six criteria, including employing more than 20 full-time employees in the United States, filed a Federal income tax or information return in the United States in the previous year demonstrating more than $5,000,000 in gross receipts or sales and has an operating presence at a physical office in the United States.
To determine whether your association falls under the large operating company exception, consult with your legal counsel and CPA.
The CTA applies to entities that are “created” by filing with the secretary of state or similar office. In California, because most unincorporated associations are not “created” by filing
documents with the secretary of state, they may not be considered reporting companies. However, unincorporated associations should consult with legal counsel.
If your association is a reporting company that is not exempt, it will need to comply with the CTA and must report the following:
• Full legal name of the association
• Physical address of the association – this is the street address of the principal place of business, defined as the location where “business” occurs. Determining this address can be problematic if there is no on-site office, clubhouse or other physical address.
• Association’s tax ID number
Beneficial owners must provide:
• Date of birth
• Residential or business address
• Unique identification number from an acceptable document (e.g., passport, driver’s license) along with an image of the document. Acceptable formats are pdf, jpg, jpeg, doc, xls, ppt, png, and gif not to exceed 32 MB per photo.
According to the CTA, a “beneficial owner” is anyone who exercises substantial control over a company; or owns or controls at least 25% of the ownership interests.
For most associations, all current directors are considered beneficial owners. If developers own at least 25% of the separate interests, they may be required to report.
Associations created before January 1, 2024 must report the information by January 1, 2025. FinCEN’s e-filing website for the reporting is: https:// boiefiling.fincen.gov/
The information for the association and all beneficial owners must be submitted at the same time. There is no option on FinCEN’s website to save your information and pick up where you left off.
Third-party companies can file the beneficial owner information for a fee. They will collect all beneficial owners’ information separately and then report it to FinCEN’s website once all information has been collected.
Whenever there is a change in address, change in beneficial ownership, or a correction of previously submitted information, the reporting information must be updated within 30 days.
Therefore, any changes of board members will trigger the need to re-file. This means that each year, or more frequently, associations will need to re-file their reporting information.
The penalties for willful non-compliance are fines ranging from $500 to $10,000 per violation and imprisonment for up to two years.
On September 10, 2024, CAI filed a lawsuit challenging the CTA’s applicability to HOAs. Whether this challenge will result in associations being exempt from the January 1, 2025 reporting deadline is unknown. Associations should NOW start determining if they need to comply, and, if so, develop and
implement a compliance plan. Due to the penalties for non-compliance, associations should also revise their governing documents (i.e., bylaws, election rules, call for candidates/nomination forms, and code of conduct) to mandate that board members cooperate in providing the information to comply with the CTA reporting.
Laurie S. Poole, Esq., CCAL has been a community association attorney since 1993. She is a Co-Managing Partner of Adams|Stirling PLC. Laurie can be reached at Lpoole@adamsstirling.com.
"ASSOCIATIONS SHOULD NOW START DETERMINING IF THEY NEED TO COMPLY, AND, IF SO, DEVELOP AND IMPLEMENT A COMPLIANCE PLAN."
Friday, October 18, 2024, 8:00 a.m.
CAI-CV EDUCATIONAL BREAKFAST & MINI TRADE
SHOW
ELECTION NIGHTMARES AND BOARD RECALLS
Recall Petitions, Cumulative Voting in a Recall Election, the Nominations Process, Disqualification of Candidates, Election Rules, Sending Out the Proper Notices.
GUEST SPEAKERS
Julie R. Balbini, Esq.
Shareholder & Managing Attorney for The Coachella Valley Office, Fiore Racobs & Powers, A PLC
Mandie Chlarson, Principal NLB Consulting & Elections
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HOA Elections and Recalls from an Insurance Perspective
By John Schuknecht, CMCA, AMS
Elections and recalls can be a tricky process, it can also be an expensive process. Each association’s governing documents read slightly differently, and the civil code requirements and timing seems to change frequently - so it is important to get it right the first time. The last thing anyone wants to see is the process getting challenged. It is also crucial to avoid any unnecessary hostility amongst the current and/ or potential future board members as well as the community members.
From an insurance perspective, it is very easy for a flawed election or recall to turn into a Director and Officers’ claim. Director and officers’ insurance at its core is intended to provide defense costs for claims arising from lawsuits alleging that Officers failed to properly perform their duties. Board members, committee members, other volunteers, association employees, managers and management companies, and anyone acting on behalf of the board should all be covered.
With rising insurance costs, we want to try our absolute hardest to keep claims off of our record. Last month we shared the top ten claim drivers for D&O related claims and board election disputes ranked in at #9. For this reason, it is vital to know the state and local requirements that should be followed when conducting board elections or recalls. You should also be carefully reviewing your governing documents related to elections and recalls. It is strongly recommended to consult with legal counsel and/or a professional inspector of elections to make sure everything is airtight.
We want our communities to be as amicable and harmonious as possible. Holding proper elections and recalls can help us achieve this goal.
John Schuknecht, CMCA, AMS is an Account Representative at LaBarre/Oksnee. John can be reached at 657-207-4789 or JohnS@hoa-insurance.com
"BOARD
MEMBERS, COMMITTEE MEMBERS, OTHER VOLUNTEERS, ASSOCIATION EMPLOYEES, MANAGERS AND MANAGEMENT COMPANIES, AND ANYONE ACTING ON BEHALF
OF THE BOARD SHOULD ALL BE COVERED.”
Election Nightmares and Board Recalls – Horror stories
By Mandie Chlarson
From the confusing timeline requirements to the barrage of notices—seriously, notices upon notices upon notices - HOA elections in California can sometimes feel like a circus.
The struggle to find candidates, update homeowner mailing info, and hit that elusive quorum can make a simple election feel like an uphill battle, to say nothing of more complicated elections, like recalls.
LET’S NOT FORGET THE HORROR STORIES THAT SOMETIMES EMERGE FROM THESE ELECTIONS:
1. The Ridiculous Recall: In one community, a recall petition was circulated and a recall election ensued. The only candidates for the conditional Board of Directors election (which only takes place if the recall is successful) were the current slate of Directors subject to recall. All five Board members were recalled – then immediately re-elected to the Board.
2. The Recall War: In another neighborhood, frustrated homeowners and a Board member submitted a petition to recall a director. The targeted Board member then submitted a counter-petition to recall the initiator. The recall of both Board members went through and two days before the ballot tabulation, both Board members resigned, rendering the recall null and void. The result? Annoyed homeowners and wasted Association funds.
3. The Resignation Fiasco: Two days after ballots were mailed for the annual board of directors election in a community, all candidates withdrew. The election had to be restarted to find new candidates, causing a three-month delay of the annual meeting.
4. The Candidate Conundrum: In a strange coincidence, two unrelated candidates with the exact same full name nominated themselves for the Directors’ election in the same community. Neither would agree to use a nickname, and their candidate statements were nearly identical. This led to confusion and frustration among the other candidates and homeowners, who couldn’t understand why one person seemed to be getting multiple votes.
5. The Deadline Dilemma: Months after an Association wrapped up their annual election by Acclamation, new owners discovered the notice dates didn’t align with Civil Code requirements. The election was challenged, leading to a redo with ballots, wiping out the cost savings of their early attempt.
These stories highlight the chaos and absurdity that can arise from HOA elections. Navigating these elections requires patience, resilience, and a good sense of humor. Despite the challenges, staying organized and maintaining clear communication can help manage the madness and keep the community moving forward.
Mandie Chlarson is the manager of NLB Consulting and Elections in Palm Springs. She can be reached at (760) 318-6550 or by email at mandie@nlbconsultingfirm.com .
Legislative Update
Friday, November 25, 2024 11:00 a.m.
EXHIBITOR SPONSORS
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GUEST SPEAKERS
Louie Brown, Jr., Esq.
Attorney at Law
Advocate, CAI’s California Legislative Action Committee
Kahn Soares & Conway, LLP
Emily A. Long, Esq.
Senior Attorney at Law
Epsten, APC
Lisa Tashjian, Esq.
Partner
Beaumont Tashjian
AGING INFRASTRUCTURE
THANK YOU!
Guest Speakers
CHRIS SIGLER, B.S.C.E.
President & CEO, C.L. Sigler & Associates, Inc.
JOLEN ZEROSKI, CMCA
Vice President & Regional Account Executive,
First Citizens Bank
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AB 2460: Clarifying Quorum and Election Procedures in HOAs
By Jennifer James, Esq.
AB 2460, signed into law by Governor Newsom on September 22, 2024, brings much-needed clarity to the election process for homeowners’ associations (HOAs). The bill addresses the common problem of low voter turnout in board elections by simplifying quorum requirements and making it easier for HOAs to conduct elections when not enough members participate initially.
As clean-up legislation, AB 2460 amends Civil Code Section 5115 and Corporations Code Section 7512 clarifying the reduced quorum process already permitted by law, ensuring clearer terminology and procedures to make the election process more straightforward for HOAs.
In many HOAs, elections for new board members require a quorum, meaning a certain percentage of members must vote in order for the election to be valid. However, it’s not uncommon for these elections to suffer from low participation, causing delays and additional costs. AB 2460
quorum, AB 2460 does not override those existing provisions. Associations can continue to follow their own governing documents if they set a quorum below 20%.
The bill also clarifies some of the terminology around HOA elections. The term “adjourned meeting” has been replaced with “reconvened meeting” as defined by the California Department of Real Estate to make the process easier to understand and ensure consistent language throughout the law. The purpose of this change is to specify the meeting at which the lowered quorum requirement will apply.
"ASSOCIATIONS CAN CONTINUE TO FOLLOW THEIR OWN GOVERNING DOCUMENTS IF THEY SET A QUORUM BELOW 20%."
allows HOAs to reconvene an election meeting if a quorum isn’t reached the first time around. At the reconvened meeting, a lower quorum of 20% of the membership is all that’s needed to proceed. This change helps HOAs avoid the frustration of repeated attempts to gather enough votes.
This law also ensures that HOAs provide clear notice to members about these procedures. If the initial election doesn’t meet the quorum, the HOA can schedule a reconvened meeting at least 20 days later, with notice sent to members at least 15 days before the new meeting. This notice must explain that a reduced quorum will apply, making it clear that only 20% of the membership needs to vote for the election to move forward.
For HOAs that already have rules allowing for a lower
By addressing the common issue of low turnout and clarifying the rules for reconvened meetings, AB 2460 helps ensure that elections can proceed without unnecessary delays.
As these new rules go into effect on January 1, 2025, HOAs will benefit from clearer, more flexible procedures for conducting their elections.
Jennifer James, Esq. graduated from Washburn University School of Law in 2001 and has dedicated her career to representing common interest communities. She has served on the board of CAI-CV and chaired numerous committees within the organization. In 2024, Jennifer joined Roseman Law, APC, as the managing attorney for Coachella Valley. She can be reached at James@Roseman.Law or (760) 760-2000.
Financial Points for HOA’s
By E.J. (Jay) Jarvis II
Homeowners' associations (HOAs), the entities that run private communities, can engender strong feelings, both positive and negative, as the readers of this magazine surely know. The negative side of an HOA is that residents sometimes resent the volunteer Board’s actions. On the positive side, buyers who opt for homes in an HOA can be confident that someone is caring for the neighborhood and its finances.
HOAs, among many responsibilities, collect monthly dues and use them to maintain community resources and amenities, for example, sidewalks, private streets, pools, playgrounds, and tennis courts. They also contract for trash collection and common area maintenance.
But, sometimes, even with financial reserves, available funds fail to cover unexpected expenses caused by such problems as storm or earthquake damage, new legal requirements, safety fixes, or new construction of common facilities. In such circumstances, the Board may choose to raise monthly dues. However, the restrictions on fee increases may make such a path impractical. For example, under California Civil Code section 5605, dues may only be raised annually. Residents must be informed at least 30 calendar days before an increase, which must not be more than twenty percent.
The main alternative to an increase in dues is a special assessment, which is not a permanent increase in fees, but a short-term charge to be used for the identified need; a Board may not collect a special assessment for one purpose but use it for another. The assessment must not exceed five percent of gross expenses for the current fiscal year, although the governing body may impose a special assessment above this limit if a majority of HOA members approves. Also, the amount must be evenly distributed among all the properties in the community, and not proportional to each property’s size. For example, if the assessment is $5,000, and there are 100 homes in the neighborhood, each home would receive a bill for $50. This contrasts with monthly dues, which may increase or decrease based on each property size. Final notice is required between 30 and 60 days prior
"SPECIAL
ASSESSMENTS ARE NOT PERMITTED WHEN THE FUNDING WOULD BENEFIT LESS THAN THE ENTIRE COMMUNITY, ALTHOUGH THE BOARD HAS DISCRETION, SUCH AS REPAIRING A COMMON AREA ROAD THAT LEADS ONLY TO A FEW HOUSES."
to the assessment being billed. A special assessment may be eligible for special tax benefits.
Special assessments are not permitted when the funding would benefit less than the entire community, although the Board has discretion, such as repairing a common area road that leads only to a few houses. Neither may a special assessment be used to repair privately owned property, such as when a tree falls on one house. Conversely, the Board may not assess some homes at higher rates merely because the owners are likely to benefit more from the expenditures than other residents, such as in the example of repairing a common area road that leads only to a few homes.
To learn more about dues increases and special assessments, consult with your HOA attorney.
E.J. (Jay) Jarvis II, is retired community manager, Past President, Lafayette Vi9llage Homeowners Association and Portola Palms Homeowners Association. Jay can be reached at jayj92260@gmail.com or 571-235-5420.
CAI New Reserve Study
Best Practices
CAI’s updated reserve study standards urge communities to incorporate preventive maintenance and structural inspections into budget planning tools.
The 2023 Reserve Study Standards provide guidance and methodology in the preparation of reserve studies for all varieties of community association ownership types and physical configurations. Learn how to build a safe and successful future for your community.
• Corporate Counsel
• Assessment Collection & Recovery
• Governing Document Interpretation & Enforcement
• Document Restatement & Amendment
• Civil Litigation
• Architectural Compliance
• Dispute Resolution
• New Development Services
• FHA Certification
• Board Education ( 84 4 ) 4DELPHI ( 84 4 ) 433-574 IN F O @ DEL PH
New Law Allows HOAs to Conduct Electronic Voting
By Jennifer James, Esq.
On September 22, 2024, Governor Gavin Newsom signed California Assembly Bill 2159 (AB 2159) into law, which will take effect January 1, 2025. For the first time, homeowner associations (HOA) can conduct certain elections via electronic secret ballots. HOAs now have the ability to hold elections entirely by mail, electronically, or a combination of both, regardless of what their governing documents require. However, not all votes may be conducted electronically. Votes on regular or special assessments must still use written secret ballots, as required by Civil Code § 5105(i). Members must be provided a choice to either opt-in or opt-out of electronic balloting.
How to implement electronic voting: To adopt electronic voting, HOAs must amend their election rules. At a minimum, the rules must allow members to change their preferred voting method (either electronic or paper) no later than 90 days before the election. The rules shall also prohibit nominations from the floor during membership meetings. Both paper and electronic ballots must contain the same information, and the HOA must
maintain a list of members voting by each method. Members who opt for electronic voting must provide the HOA with a valid email address. HOAs may choose one of two approaches: (i) electronic voting as the default wherein members opt-out of electronic voting to use paper ballots, or (ii) paper ballots as the default wherein members opt-in to electronic voting, and each method requires certain procedures to comply with the law. In either case, members must submit their opt-out or opt-in requests in writing.
Procedural Requirements: HOAs must follow several procedural steps to ensure compliance with electronic voting, including:
• Annual Policy Statement: The HOA’s Annual Policy Statement must explain how members can opt-out or opt-in to electronic voting, based on the method chosen by the HOA.
• Independent Inspectors of Election: Inspectors must authenticate member identity, maintain ballot integrity and secrecy, and provide a method for members to confirm, at
least 30 days before the voting deadline, that their electronic devices are compatible with the online voting system.
• Notice: Members enrolled in electronic voting must receive notice at least 30 days before the election, detailing how to access the internet-based voting system and vote electronically. This individual notice can be delivered electronically.
• Electronic Voting System: The system must authenticate voter identity, ensure ballots are not altered in transit, issue a receipt to each voter casting their ballot, separate identifying information from the ballot, and store ballots securely for recounts or inspection.
Why Act Now? AB 2159 provides an opportunity to modernize the election process, reduce costs, and increase voter participation. However, it requires prompt action to ensure compliance as timing is key. We recommend amending your election rules as soon as possible to incorporate these changes, provide for electronic voting, and ensure compliance with the new law.
Jennifer James, Esq. graduated from Washburn University School of Law in 2001 and has dedicated her career to representing common interest communities. She has served on the board of CAI-CV and chaired numerous committees within the organization. In 2024, Jennifer joined Roseman Law, APC, as the managing attorney for Coachella Valley. She can be reached at James@Roseman.Law or (760) 760-2000.
BOARD MEMBER WORKSHOP
TUESDAY, OCTOBER 8, 2024
8:30 NETWORKING, 9:00-10:00 A.M. PROGRAM (FREE VIA ZOOM – SEE LINK BELOW)
THANKS TO OUR SPONSORS
Asphalt MD’s Beaumont Tashjian Enterprise Bank & Trust
GUEST SPEAKERS
Kevin Franklin President & CEO, OCBS Inc., General Contractor/Consultants
Ashley Layton, PCAM, AMS, CMCA
Vice President, Premier Community Association Management
Lisa Tashjian, Esq.
Partner, Beaumont Tashjian
Contract Formation through Completion –Identifying Scope of Work
• Preparing RFPs
• Bidding Process
• Board & Legal Review
Become an October Education Board Member Workshop Sponsor. CLICK OR SCAN QR CODE
CAI Files Lawsuit Against Corporate Transparency Act
By Tom Skiba, CAE
Dear CAI Members,
CAI has filed a lawsuit against the U.S. Department of the Treasury, Secretary Janet Yellen, and the director of the Financial Crimes Enforcement Network. This action is being taken to protect our members from the burdensome and unnecessary requirements of the Corporate Transparency Act.
The act imposes new reporting requirements on many entities, including community associations. Under the law, volunteer board members of condominiums, homeowners associations, and housing cooperatives will be required to provide sensitive personal information to the federal government. These requirements were designed to combat illegal activities including terrorism financing and money laundering. The Treasury Department has taken a very broad approach to implementing this law, impacting organizations like community associations that are extremely unlikely to be engaged in such activities. We believe the application of the Corporate Transparency Act to community associations is an overreach and potentially unconstitutional.
CAI has worked with the Treasury Department for over a
year to pursue a regulatory exemption for community associations but has been unsuccessful. Since the law’s implementation date for existing associations is rapidly approaching on Jan. 1, we determined that a lawsuit was necessary to protect community association rights and ensure they are exempt from the act.
Along with the full complaint (lawsuit), CAI is filing a motion for preliminary injunction. A preliminary injunction is temporary relief that maintains the status quo until the court decides the merits of the case.
IN THE LAWSUIT,
WE SEEK TO:
• Obtain a declaration that the Corporate Transparency Act does not apply to community associations, including condominiums, homeowners associations, and housing cooperatives.
• Challenge FinCEN’s decision not to exempt our members from the act.
• Request judicial review of the denial of exemptions, which we believe is both unlawful and unconstitutional.
CAI is committed to protecting our members from regulations that threaten privacy and discourage volunteerism within community associations. We are pursuing this lawsuit to ensure that communities can continue to operate without unnecessary and burdensome regulations.
I would like to recognize the leadership and commitment of Brendan Bunn, Esq., CCAL fellow, President of the College of Community Association Lawyers and Shareholder, Chadwick, Washington, Moriarty, Elmore & Bunn (Fairfax, Va.) and Ed Allcock, Esq., CCAL fellow, Past President, College of Community Association Lawyers and Shareholder, Allcock & Marcus (Braintree, Mass.) for their tremendous efforts in moving this initiative forward.
WHAT CAN YOU DO TO SUPPORT THE EFFORTS?
• Maintain your CAI membership to stay informed about the case’s progress.
• Encourage other associations in your local area to join as CAI members.
• Bookmark www.caionline.org/CTA to keep up with developments.
• Donate to CAI’s legal fund to help cover litigation costs.
• Contact your Congressional representatives to express support for H.R. 9045 to exempt community associations from the Corporate Transparency Act.
The National Small Business Association filed a lawsuit over the act and was successful in getting its members exempted from the requirements. CAI learned from that effort that “association standing” protects all members of the organization. If our lawsuit is successful, it is very possible exemptions will only apply to community associations that are members of CAI. We encourage you keep your membership in good standing.
We will keep you informed of any updates as this lawsuit progresses. In the meantime, please visit www. caionline.org/CTA to find answers to frequently asked questions.
Thank you for your continued support as we work to protect the interests of our members and communities nationwide.
Sincerely,
Thomas M. Skiba, CAE Chief Executive Officer Community Associations Institute
CAI’s Foundation Maintenance Guidelines and Best Practices Booklet
By Steven Shuey, PCAM, CCAM
Coachella Valley communities are getting older and aging components are taking a toll. Many neighborhoods are starting to show the stress of keeping up with the times. If your community is wondering how a maintenance program fits in to the management of the community, there is a great book recently published by the Foundation for Community Association Research (FCAR) that speaks to maintenance in the community. It comes complete with best practices and check lists.
As a retired community association manager with many years of experience in property maintenance, I wish I’d had this book years ago. I recommend every board member read it and glean the understanding it brings regarding the importance of maintenance in the community.
COPIES ARE AVAILABLE VIA FREE DOWNLOAD. CLICK OR SCAN THE QR CODE
Steven Shuey is a retired community association consultant from Personalized Property Management in the Coachella Valley. Steven serves on the Education Committee, serves on the chapter Strategic Planning Committee as a past board member, and maintains his designation as a Professional Community Association Manager (PCAM). He also serves on the National Faculty of CAI and is a past board member of the APCM. He may be contacted at IslandMgr@aol.com.
Wine &T e quilaT ast i n g Sips SipsShots Shots & &
TITLE SPONSOR
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!
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
4-Pack Discount Tickets - $140
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
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
Cooler Temperatures Call For Less Water in Your Landscaping
By CVWD
As temperatures cool, gradually reduce watering times to avoid wasting water. Plants and grass only need a little water during the fall and winter. For example, grass requires only about seven minutes daily in October and four minutes daily in November. If your soil does not absorb water quickly, divide watering times into multiple sessions. This will allow the soil to absorb the water efficiently and reduce runoff. Check out CVWD’s irrigation guide for recommendations at cvwd.org/watering-guide.
TURN OFF SPRINKLERS WHEN IT RAINS OR GET A SMART CONTROLLER
Remember to turn off your sprinklers during measurable rain and keep them off for at least 48 hours. Alternatively, consider installing a smart irrigation controller that automatically adjusts your watering times and turns itself off when it rains. Homeowners may be eligible to receive a free smart controller, including installation. Residential customers can also receive a discount on a Rachio Sprinkler System that allows you to monitor water use from your phone.
SKIP OVERSEEDING THIS FALL AND LET YOUR LAWN GO GOLDEN
In addition, CVWD is encouraging homeowners, HOAs, businesses and golf courses not to overseed this fall, especially not in a way that requires excessive water use. Overseeding has been a longstanding practice in the Coachella Valley but is unnecessary. Remember to be mindful of your water use, as CVWD does not increase customers' water budgets for overseeding. Your water budget is much smaller during the cooler months to match the watering requirements in your landscape.
For those who want to overseed, CVWD encourages residents to use the Overseeding Without Wasting Guidelines, which are available at www.cvwd.org/overseeding. Grass should mature 30-60 days from the seeding date.
For more information, visit Coachella Valley Water District’s Conservation section at CVWD.org/Conservation.
Photo Feature:
Ironwood Country Club removed 8,441 square feet of turf in 2022, saving more than 471,000 gallons of water annually.
MEET THE BOARD COMMITTEE CHAIRS
Brigadier General (R) Guido J. Portante, Jr. Director on the Chapter Board
By Jennifer James, Esq.
This article is part of a series featuring CAI-CV Board members and committee chairs. This month, we are featuring Brigadier General (R) Guido J. Portante, Jr., who serves as a Director on the Chapter Board. With a remarkable career in both military service and business, General Portante brings a wealth of experience, leadership, and dedication to our board.
Born in Pittsburgh, Pennsylvania, and raised in Cleveland, Ohio, General Portante moved to California, where his journey of service and leadership truly began. After attending Mira Costa Junior College, he gained valuable business experience working in his family’s deli and Italian restaurant. His strong work ethic led him to a successful career in the insurance industry, where he qualified for the prestigious Million Dollar Roundtable.
However, it was the military that ultimately captured General Portante’s passion. He enlisted as a private in the California Army National Guard in 1964, beginning a distinguished military career that saw him rise to the rank of Brigadier General. His career highlights include serving as the Commander of the 40th Infantry Division (Mechanized),
working on critical assignments in Washington D.C., and leading training missions in countries like Ukraine, Germany, and South Korea. General Portante’s extensive experience in logistics, resource management, and military operations have been invaluable throughout his career.
After his retirement from the military, General Portante continued to serve by training military units in large-scale warfighting exercises and working with Boeing on future combat systems. His contributions have ensured that our military remains equipped with the latest technology while keeping our soldiers safe.
General Portante is a proud father of three children, Marie, Marleen, and Guido, who bring joy to his life with their visits. Although he currently doesn't have any pets, he enjoys the company of many at the Guide Dogs of the Desert. Residing in Rancho Mirage, California, General Portante is an accomplished cook, particularly of Italian cuisine,
much to the delight of his many friends. Golf is one of General Portante’s favorite pastimes, and he plays as often as possible. His commitment to service continues in his volunteer work. He serves as the President of the World Affairs Council of the Desert and is actively involved with organizations like the Salvation Army and the Veterans' Easy Access Program, supporting veterans in the Coachella Valley.
Reflecting on his illustrious career, General Portante considers his progression from enlisted soldier to Brigadier General as his greatest professional achievement. His management style is pragmatic, focusing on listening, analyzing, and making informed decisions. Known for his serious approach to business, General Portante also enjoys social interactions, balancing his playful side with his professional responsibilities.
General Portante is driven by collaboration and the excitement of seeing ideas come to fruition. His strengths in organization, planning, and leadership have been key to his success, both in his military and civilian careers. His passion for working with others and his ability to manage multiple roles simultaneously are among his defining qualities.
Describing himself as a "legend in his own mind," General Portante balances a playful and serious demeanor. He excels in juggling multiple positions and responsibilities, thanks to his strong organizational skills. However, he has little tolerance for those who occupy positions of responsibility but fail to fulfill their duties.
General Portante became involved with CAI-CV while serving on the Mira Vista Homeowners Association Board. Inspired by the enthusiasm of others in the organization, he joined CAI-CV and has since been an active member. He appreciates CAI-CV’s dedication to educating HOA Boards and city governments throughout the Coachella Valley and looks forward to continuing to share his knowledge and experience with new members.
During his tenure on the CAI-CV Board, General Portante aims to contribute his extensive experience and help guide the future leaders of the organization. He is committed to ensuring that CAI-CV continues to grow and succeed, serving as a valuable resource for its members.
General Portante’s journey is a testament to dedication, leadership, and a lifelong commitment to service. We are fortunate to have such a distinguished individual as part of our community, and we are grateful for the contributions he continues to make through his role on the Board.
We hope you enjoyed getting to know Brigadier General (R) Guido J. Portante, Jr. a little better and appreciate the dedication he brings to our community.
Guido, thank you for your service to CAI-CV and for your dedication to the CID industry!
Jennifer James, Esq. graduated from Washburn University School of Law in 2001 and has dedicated her career to representing common interest communities. She has served on the board of CAI-CV and chaired numerous committees within the organization. In 2024, Jennifer joined Roseman Law, APC, as the managing attorney for Coachella Valley. She can be reached at James@Roseman.Law or (760) 760-2000.
20 25 CAI-CV
ANNUAL ELECTION – BOARD OF DIRECTORS
Nomination forms have been submitted by CAI-CV members for the upcoming election to fill four open seats on the Chapter’s Board of Directors. These board positions are for three years beginning January 1, 2025. The CAI-CV Nominating Committee is reviewing the submitted forms and will announce the candidates in early October. If there are more nominees than openings, there will be an election utilizing the skills and expertise of The Inspectors of Election. If the number of qualified candidates is equal to or less than the open positions, the board will not hold an election and instead vote to elect these candidates at the CAI-CV Annual Meeting on October 22nd at 3:00 p.m. All members are invited to participate in the Annual Meeting via Zoom.
The Zoom link is: https://caionline-org.zoom. us/j/87152771094?pwd=iQcW0H5BVUEBJr2tSDGa1hoF4tlkZX.1 Meeting ID: 871 5277 1094 | Passcode: 087563
New Directors will be introduced to the Chapter in the November issue of HOA Living Magazine. Please contact Executive Director, Cal Lockett, via email at CLockett@cai-cv.org if you have questions or would like additional information about serving on the CAI-CV Board of Directors.
SAVE THE DATE
CAI-CV’s Annual Awards and Casino Night
MASQUERADE BALL
Friday, January 24, 2025, 5:30 p.m.
SUN CITY PALM DESERT
Sponsorships Available
EARLY REGISTRATIONS
Managers & Board Members $100
Non-sponsor Business Partners $200
49950 Jefferson Street, Suite 130-117 Indio, CA 92201
CAI-CV UPCOMING EVENTS – SCAN QR OR CLICK TO SIGN UP
OCTOBER
CAI-CV & DCHC Board Member Workshop - Requests for Proposals (RFPs), Contracts, Legal & Liabilities
WHEN: Tuesday, October 8, 2024, 8:30 AM WHERE: RAP Center & Zoom
REGISTRATION: SPONSORSHIPS:
CAI-CV Educational BREAKFAST Program & Mini Trade Show
WHEN: Friday, October 18, 2024, 8:00 AM WHERE: Sun City Palm Desert
REGISTRATION: SPONSORSHIPS:
Axes & Ales Oktoberfiesta
WHEN: Friday, October 25, 2024, 5:30 PM WHERE: Pro Landscape Nursery, Thousand Palms
REGISTRATION: SPONSORSHIPS:
NOVEMBER
CAI-CV Legislative Update – Educational Lunch Program & TRADE SHOW
WHEN: Friday, November 15, 2024, 11:00 AM WHERE: Sun City Palm Desert
REGISTRATION: SPONSORSHIPS:
CAI-CV’s Fall Golf Tournament
WHEN: Friday, November 22, 2024, 2:00 PM
WHERE: Shadow Mountain Golf Club
REGISTRATION: SPONSORSHIPS:
DECEMBER
CAI-CV & Desert Cities HOA Council –BOARD BOOTCAMP & MANAGER EDUCATION
WHEN: Friday, December 6, 2024, 3:30 PM
WHERE: Shields Date Garden Theater, 80225 US Highway 111 (Jefferson & 111), Indio
REGISTRATION: INCLUDES FREE ENTRANCE TO WINE & TEQUILA TASTING
