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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
ISSUE THREE 2017
IN THIS ISSUE No Workplace is Perfectly Safe – Not Even an Office
Building a Sense of Community
Is Your HOA Responsible for Stolen Packages? HOA Liability for Discriminatory Harassment: A Primer The Drought is Over… Now What? Protecting Your Investment 6 Ways to Minimize Your Reserve Contributions
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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
www.cai-grie.org
OFFICERS Jeremy Wilson, MBA, CCAM, CMCA, AMS, LSM, PCAM ........ President Associa-PCM Robert Serdoz......................................................................President-Elect Elite Pest Management, Inc. Linda Cooley........................................................................ Vice-President Rosetta Canyon Community Association Chet Oshiro................................................................................ Secretary EmpireWorks Phil Hakopian, CIRMS..................................................................Treasurer Cornerstone Commercial & Personal Insurance Services, Inc. Dana Mathey, CMCA, AMS, PCAM................................... Past-President FirstService Residential BOARD DIRECTORS Adam Armit........................................................Park West Tree Care, Inc. Jackie Fromdahl.....................................................Painting Unlimited, Inc. George Gallanes, CMCA...................................... Sunnymead Ranch PCA Bob Harvey, CMCA...............................................................Associa-PCM Brian Henry.........................................................................Park West, Inc. Pat King..............................................................Solera Oak Valley Greens
Table of Contents Features 4 No Workplace is Perfectly Safe – Not Even an Office 8 Is Your HOA Responsible for Stolen Packages? By Cang Le, Esq.
CHAPTER EXECUTIVE DIRECTOR DJ Conlon, CMCA MEMBER RELATIONS COORDINATOR Ginny Aronson-Hoke ADMINISTRATIVE ASSISTANT
By Kevin Leonard, RS
27 Building a Sense of Community Harveston HOA, Temecula
12 HOA Liability for Discriminatory Harassment: A Primer
By Sandra L. Gottlieb, Esq., CCAL & Nicholas Marfori, Esq.
7 CED Message
Valerie Reyes.......................................................Villa Park Landscape, Inc. Christy Towner-Quesada, CMCA........................... FirstService Residential
25 6 Ways to Minimize Your Reserve Contributions
Departments By DJ Conlon, CMCA
18 The Drought is Over… Now What? By Kellan Falconieri
22 Protecting Your Investment By McDonnell Roofing
11 Editor’s Link By Brittany A. Ketchum, Esq.
15 Billiards Night Photos 17 Promenade des Arts Photos
Elda Pfitzinger-Thomas EDITOR IN CHIEF Brittany Ketchum, Esq..........................................Beaumont Gitlin Tashjian PUBLICATIONS COMMITTEE Jeff Baker, AMS.............................................Packard Management Group Chris Branuelas.........................................Rainbow Canyon Villages HOA Linda Cooley...............................Rosetta Canyon Community Association Kevin Leonard............................................................ Association Reserves DESIGN & PRODUCTION Kristine Gaitan....................Rey Advertising & Design/The Creative Dept. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Connect or the Community Associations Institute–Greater Inland Empire Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney. Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI–GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Community Associations Institute of Greater Inland Empire Chapter.”
Advertisers All Counties Fence & Supply.....................14 Alliance Association Bank..........................21 AMS Paving, Inc..............Inside Front Cover Beaumont Gitlin Tashjian.............................6 Berg Insurance Agency, Inc.......................19 Cardinal Property Management................16 CBCI Construction....................................19 Elias Bros. Contractors, Inc........................16
Epsten Grinnell & Howell, APC.................10 Fiore Racobs & Powers APLC...................26 Keystone Pacific Property Management, Inc......20 Mutual of Omaha Bank............................14 NPG – Nelson Paving.... Outside Back Cover Steven G. Segal Insurance Agency, Inc.....11 Union Bank HOA Services........................24
Copyright © 1998–2017 CAI-Greater Inland Empire Chapter. Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter 5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / fax (951) 848-9268 info@cai-grie.org
The Greater Inland Empire Chapter of CAI hosts educational, business and social events that provide the Chapter’s Business Partners various opportunities to promote their companies’ products and services to Community Association owners and managers serving the Community Association Industry. It is expected that all participants in Chapter events — whether they be educational, business or social — will conduct themselves in a professional manner representative of their business or service organization so as not to detract from the experience of others seeking to benefit from their membership in the Chapter. CONNECT WITH GRIE • ISSUE THREE 2017
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BY R. CHRIS BRANUELAS
No Workplace is Perfectly Safe – Not Even an Office
A
n office job can become hazardous through careless actions, poor layout, and/or workplace violence; not being aware of these problems or being unaware of how to handle them are the most unsafe risks amongst the workplace. The possibility of violence at work should be taken seriously, no matter what kind of work you do. While certain occupations put a person at a much higher risk - violence can happen in any setting. Most violent workplace incidents involve a fistfight or an assault, according to one study in the United States. Many of you probably find yourself working in an office environment at some point during your week. Many of you are also in a position of management or authority that requires you to directly handle complaints or be approached by a person that can sometimes lead to abrupt, rude, and even threatening situations. Here are a few best practices to protect your personal safety in these situations:
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• Avoid starting fights. Loud and aggressive arguments can easily escalate into physical fights. • Take verbal threats seriously. Do not aggravate the situation with a threatening response. Report all threats to your supervisor, human resources manager or the company’s security department. • Report any suspicious person or vehicle, especially at night. The individual could be casing the location for a break-in or the person could be stalking an individual. • Watch for unauthorized visitors who appear to have legitimate business at your worksite. Crimes have been committed by people posing as employees, contractors and repair persons. • Always observe drug and alcohol policies that may be in place at your workplace. Many violent incidents at work can be traced to the use of these substances. • Be aware of the neighborhood in which you work and the areas you drive through on your commute. Gang activity and other violence does
ISSUE THREE 2017 • CONNECT WITH GRIE
not always stop at the gate or door to your worksite. Keep to well-traveled and well-lit areas as you drive to and from work. • Learn how to contact help in an emergency. Speed-dial numbers should be programmed into phones and emergency numbers should be listed at each phone. • Some workplaces have predetermined code words so one employee can tell another about a dangerous customer or visitor without tipping off the suspect. Learn the distress signals used in your workplace.
• Follow lockup procedures. Never lend your key or entry card to anyone. Keep your entry password a secret by memorizing it instead of writing it down.
Sometimes, even following all of the above best practices will not prevent a person from coming into your workplace in an upset, aggressive and threatening manner. In these circumstances, diffusing the situation can be accomplished in many ways, and actively listening to the person is chief among them. Here are some tips for actively listening:
• Sit or stand up straight to help yourself stay alert. • Look at the person who is talking. • If you have a choice for location in the room, position yourself near the person, but behind a barrier if possible. • Take notes if appropriate. • Dismiss your own mental resistance to what is being said. When your thoughts are criticizing, dismissive or are making fun of the speaker, they are not on understanding what the message is. Allow yourself
time to process the person’s point of view before responding. • Try to follow the speaker’s logic and point of view as one point leads to another. How the speaker has organized the material is part of the message being communicated to you. • Ask questions if you don’t understand. If you can’t ask right away, write a note to remind yourself to ask when you can. Perhaps the question will be answered in the meantime by what the speaker says next. Continued on page 6
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No Work Place is Perfectly Safe Continued from page 5
• When you ask a question, listen to the answer instead of planning what you are going to say next. • Use the “echo” technique for effective listening. Repeat what the person has said. When you and the speaker both hear what you say, you will both have a better idea of your understanding of the subject. If what you say misses the point, then the speaker can further explain themselves. Always remember that when you are listening to a person speak, you have internal filters to get through before you form an opinion of the subject. One such filter is your personal bias, also known as your point of view. You picked this up from your parents, your education, your experiences and many other sources in your life; another filter is your mood. If you are in a bad mood, and in no mood for a conversation, you won’t get much out of it. Knowledge is also a filter. If your level of knowledge is too far above what the speaker is saying, you might not pay attention to any new information he or she is offering. If your level of knowledge is too low, you may give up and not try to understand anything. Be aware of your filters when you are trying to absorb information. Listening is one of the ways to receive vital safety information. Do your listening skills need sharpening? Los AngeLes orAnge County InLAnd empIre Kern County CentrAL CoAst
Disclaimer The information presented in this article has been compiled from sources believed to be reliable. However, it cannot be assumed that all acceptable measures are contained in this article nor that additional measures may not be required under particular or exceptional circumstances, or your own company procedures, or by federal, state/provincial and local law. Local, state/provincial and federal regulations take precedence over this material. We reserve the right to make periodic changes, additions, and deletions to these publications, and the products and programs described in these publications without notice. Copyright Notice - Copyright MMV Bongarde Holdings Inc. The material on this site is copyrighted and protected by the copyright laws of the USA and Canada and the laws of the countries who are a party to the Berne Convention for the Protection of Literary and Artistic Works, Berne 1886, Paris 1971 and the Universal Copyright Convention, Geneva 1952, Paris 1971. Bongarde Holdings Inc. authorizes you to view, copy, and print Safety Talks! for non-commercial use within your organization only. No part of this material may be reproduced, stored in any retrieval system, or transmitted, in any form or by any means, electronic, mechanical, printing, photocopying, recording, or otherwise, than as provided in the Terms and Agreement belonging to the subscription to this service.
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Following these recommendations will contribute to a safer workplace in most office environments and is really a small price to pay for being able to live a safer, happier office life.
ISSUE THREE 2017 • CONNECT WITH GRIE
Civil Litigation Enforcement Insurance Bad Faith
Assessment Collections Judicial Foreclosure
The Community Association Lawyers 866.788.9998 www.bgtlawyers.com
CHAPTER EXECUTIVE DIRECTOR’S MESSAGE It’s shaping up to be a “Legendary” year in the Inland Empire and the Committees are already working hard on 2018! I’ve been the Executive Director of this Chapter for 9 years and in that time, we’ve grown from a membership of 367 to 728, going from a “Medium” size Chapter to a “Large” Chapter DJ Conlon, CMCA (2011-2012) and it seems we are Chapter Executive Director well on our way to becoming a “Very Large” Chapter (750+ members) in the very near future. With that growth comes successes, awards, achievements and yes, growing pains – and some needed changes. You’ve read the notice that we’re in a Bylaws amendment and a Board of Directors reduction from 15 members down to 13 this year and then down to 11 by 2020 at the latest. This was mandated by National. Also, all six Southern California Chapters are working together to help each Chapter be successful by making sure we don’t book competing events on the same day and combining events (GRIE/OC Joint Luncheon) periodically to help reduce the number of days our business partner members are spending on CAI. We’ve also made the statewide Legal Forum: California Communities even better by including pre-forum activities such as offering managers and business partners educational opportunities (CID Law Class, Educated Business Partner Class) as well as a fabulous networking opportunity (CLAC Benefit Fundraiser) on the Thursday before the Forum, making it a twoday event! Keeping up with the growth and the ever-expanding knowledge of our members and their needs, we have found that we need to invigorate our Chapter by stepping up to new challenges in the way we do things. In the 2018 Marketing Plan, you will see some significant changes with the way we are offering our education and marketing opportunities. You will also miss seeing some of the tried and true social events that may or may not have run their course, but are not scheduled for 2018 (Billiards, Bowling, IE Olympics). We are streamlining and condensing and trying to make what we do well, even better and bigger by offering some unique experiences at each event. We’re still working on this, but stay tuned…more information is to come. We think you’ll find it exciting and not the same old, same old. I’d like to extend an invitation to reach out to me and ask how you can help as a volunteer. These committee members have a lot to do and they could use some more brain-storming thoughts. If you can devote an hour a month for a committee meeting and then a little time to pull an event together, we need you! A short note on a few more items: Yes, we have had a price increase in our luncheon attendance. While it’s only $5 for a manager or business partner member, the group impacted the most is our homeowner members. They were able to attend
for free for several years but we have found that with our cost increases at our venues, we just couldn’t sustain it, so they have now been added in the $50 per person cost. If you as a management company or a business partner company would like to contribute to a “fund” that would be used to supplement this cost, please contact the Chapter. Although you will be recognized as a contributor, you will not be sponsoring specific people at specific events by contributing to this fund. You’ve no doubt noticed that the late registration fee has also increased from $10.00 to $20.00. I don’t want to see anyone have to pay this, so please register by the cut-off date so our venues can be prepared. We also have a great new online registration/payment system in place. Not only are you paying up front and receiving a receipt, you are actually registering yourself in our system! This is so cool, however, it too has challenges. Please type your information (and any guests) carefully so that new records are not created. This helps keep our database clean and up-to-date. I know this is a lot of information and there is more to come…if you are Chairing a committee in 2018 or volunteering to serve on a committee in 2018, please plan on attending our Calendar Planning Session on October 31, 2017 at Crestmore Manor.
DJ Conlon, CMCA Chapter Executive Director
Is your Community a Legend in the Making? Have you seen your association pull together in amazing ways to build an even greater sense of community? We want to hear about it, so others can learn from your example. Go make a difference in your community and let us know how you change the world! Send us a story about how your association is building a sense of community, and be entered in a monthly drawing to win a Starbuck’s giftcard. Monthly Drawing Giftcard Prize: $5 for a text-only submission and $10 if it includes a picture. You are eligible to win each month until your story is chosen, and you are ALSO eligible to win a $200 prize at the TOPS Awards in December.
Email your stories to info@cai-grie.org
CONNECT WITH GRIE • ISSUE THREE 2017
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Is Your HOA Responsible for Stolen Packages?
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ISSUE THREE 2017 • CONNECT WITH GRIE
BY CANG LE, ESQ.
Is there any greater joy than opening your mailbox and seeing that Amazon Prime box delivered just a mere two days after your online purchase? Conversely, is there any greater disappointment discovering that someone stole it from your mailbox?
Y
ou surely can’t blame Amazon as it usually replaces the stolen item; but can you blame your homeowner association? That homeowner association whom you believe is responsible for the maintenance of those mailboxes; that homeowner association that still hasn’t upgraded from those mailboxes from the stone age without a lock and key; that homeowner association who knows about these Amazon Prime thieves and has taken no action; that homeowner association who knows that the mailboxes do not adequately defend against such thievery. Is the homeowner association really to blame? As with most questions presented to a lawyer, the answers depend. The initial inquiry of whether the association is responsible for the maintenance, repair or replacement isn’t so simple. Particularly in older associations and covenants, conditions, and restrictions (CC&Rs) where mailboxes may not be specifically identified as a component to be maintained. One must analyze whether the mailbox is part of the owner’s separate interest, common area or exclusive use common area – as such terms may be defined within the CC&Rs or the Davis-Stirling Act governing homeowner associations (Civil Code § 4000 et seq.). Designating the mailbox as part of the separate interest, common area or exclusive use common area will then determine who is responsible for its maintenance, repair and replacement and one must analyze such responsibilities in conjunction with the statutory default provisions under Civil Code § 4775 of the Davis-Stirling Act. And even those terms (maintenance, repair, and replacement) are not defined within the Act nor most CC&Rs. But let’s assume your homeowner association is responsible for the maintenance, repair, and replacement of the mailboxes (whether under the CC&Rs or per Civil Code § 4775). What does that responsibility entail vis-à-vis protecting your precious Amazon item (or any less exciting mail you may receive)? Does that duty require the board to upgrade those mailboxes installed when the pilgrims arrived
that still use a signal flag with those that the rest of the industrialized world uses – i.e., cluster mail boxes or those with a lock and key? Not specifically. A board is tasked with managing the association and making prudent fiscal decisions. Whether it is prudent to upgrade mailboxes will depend on the circumstances – are there adequate reserves or funds for the upgrades, are the current mailboxes still serviceable, are there other pressing maintenance and repair needs, is membership approval needed for special assessment or increase in regular assessments (See, Civil Code Section 5605), is the upgrade considered a capital improvement requiring membership approval under the CC&Rs? And pertinent to those Amazon Prime thieves and protecting the member’s mail, has the board been made aware of the ongoing crimes? Is it foreseeable that further crimes will be committed and is it within the board’s powers to prevent or address the matter? (See Titus v. Canyon Lake (2004) 118 Cal.App.4th 906; Frances T. v. Village (1986) 42 Cal.3d 490.) The above considerations and the specific circumstances of the community must be weighed by the board. It is usually not a simple yes or no answer with most decisions the board has to make on behalf of the community. As such, while you may think that an association is responsible for the maintenance, repair or replacement of the mailboxes and such responsibility encompasses a duty to protect those precious deliveries or mail, such responsibility is not always clear and such a duty may not be encompassed with that responsibility but may arise depending on the totality of the circumstances.
Cang N. Le is a managing partner for Adams Stirling PLC, a law firm that specializes in the representation of homeowner associations. You can reach him at cle@adamsstirling.com or (800) 464-2817.
CONNECT WITH GRIE • ISSUE THREE 2017
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Appellate Litigation Association Counsel Assessment Recovery Construction Defect Construction & Remediation Civil Litigation Commercial CID Developer Transition Dispute Resolution Fair Housing Senior Housing
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ISSUE THREE 2017 • CONNECT WITH GRIE
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EDITOR’S LINK This issue of Connect abounds with practical tools you can implement today to help preserve and protect yourself, your home and your community. It is my hope that you are able to utilize the wealth of information provided by our industry experts in your community. If you have a particular issue impacting your community, or a community you serve, we invite you to submit questions for our “Legal Spotlight” column regarding those issues Brittany A. Ketchum, Esq., an associate attorney with Beaumont Gitlin Tashjian, has devoted her career to representing common interest developments. She can be reached at bketchum@bgtlawyers.com.
that may be of interest to community association board members, managers and vendors. Our Chapter welcomes your emails, but regret that we can only answer a limited number each issue and cannot answer every question individually, but will do our best to choose the questions that will help the most members. As an attorney, I must dutifully include the “fine print”: this column does not constitute legal advice and is written for general information purposes only; rather, readers should consult with a lawyer for specific legal advice. With that said, we hope that you share your challenges by submitting
questions so that your fellow Chapter members have the opportunity to learn from your experiences. On behalf of the Connect Magazine Committee, thank you for your readership and participation in the Chapter. As always, it is my sincere pleasure working together with board members, managers and business partners alike to educate and support associations by confronting the important issues facing communities today.
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The actionable conduct is harassment based on sex, race, religion, and the other protected characteristics under the FHA. itle VIII of the Civil Rights of 1968, also known as the Fair Housing Act (“FHA”), is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide services and facilities in connection with housing, it applies to HOAs and other community associations. By now, most HOAs across the country are already aware (or should be aware) that, in 2016, the U.S. Department of Housing and Urban Development (“HUD”) amended its federal housing regulations to firmly establish association liability for discriminatory conduct by its Board, directors, employees, and even by residents. Particularly concerning to HOAs are the new regulations regarding discriminatory harassment and third-party liability, which may also be the most difficult sections to understand for Board members and management.
HOA Liability for Discriminatory Harassment: A Primer Sandra L. Gottlieb, Esq., CCAL and Nicholas Marfori, Esq.
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ISSUE THREE 2017 • CONNECT WITH GRIE
Quid Pro Quo and Hostile Environment Harassment
Suppose that Happy Acres HOA’s on-site manager Mark has openly expressed his fondness for homeowner Helga by whistling and making cat-calls at her when she passes his office on her way to the gym. He has asked her out on dates several times, even after she declined and explained that she was married with three kids. One day, when Helga emailed Mark to request guest passes for her son’s birthday party, he responded by saying, “come see me in my office in your gym clothes and we’ll see what we can ‘work out.’” Does Helga have a housing discrimination claim against the HOA? Is the HOA liable for its manager’s conduct? HUD’s new rule adds 24 C.F.R. § 100.600, which formalizes an HOA’s liability for “quid pro
quo” harassment and “hostile environment” harassment in the housing context. Quid pro quo (or “this for that”) harassment refers to an unwelcome request or demand to engage in conduct (due to race, color, religion, sex, national origin, disability, or familial status) where submission to the request or demand, either explicitly or implicitly, is made a condition related to the provision of services or facilities. In the HOA context, this often occurs when an HOA manager or employee requests or demands sexual favors from a resident in the community in exchange for his/her use of community facilities or services, as depicted in the example above, where Mark, as an agent for the HOA, requested sexual favors from Helga in exchange for the guest passes she requested. Hostile environment harassment refers to unwelcome conduct (due to race, color, religion, sex, national origin, disability, or familial status) that is sufficiently severe or pervasive as to unreasonably interfere with the provision or enjoyment of services or facilities. This can occur when, as illustrated in the example above, a resident who is attempting to make use of an association’s services or facilities (e.g., a gym, pool), and is repeatedly subjected to cat-calls, sexual comments or other lewd conduct by an HOA employee or manager. Under the new HUD regulations, an HOA can be held liable for failing to correct the sexually harassing conduct. Note that the actionable conduct is harassment based on sex, race, religion, and the other protected characteristics under the FHA. For instance, an HOA can be held liable where its security guard utters racial slurs at black and Hispanic residents, or where a Board member requires a Muslim condominium owner to leave his backpack outside before attending the annual meeting of the members. But what if the harassing conduct is perpetrated by one resident against another? Can the HOA be held liable for neighborto-neighbor harassment? Under the new amendments to the FHA the answer is yes.
Third-Party Harassment Liability: HOA Liability for Harassment by Residents, Guests, and Other Third Parties Perhaps the most consequential provision in the new regulations is the expansion of HOA liability for the discriminatory conduct of a third party, such as a resident, guest, an outside vendor, etc. Suppose that Helga, from the above example, was also being harassed by her neighbor Nate, who would often yell anti-Semitic comments to Helga and her family and draw swastikas on Helga’s car windows in the middle of the night. Helga complains to management, but the Board refuses to get involved in
“neighbor-to-neighbor” disputes. Can the HOA be held liable for failing to take action against Nate? Under 24 C.F.R § 100.7(iii), an HOA is “directly liable” for “[f]ailing to take prompt action to correct and end a discriminatory housing practice by a third-party, where the person knew or should have known of the discriminatory conduct and had the power to correct it.” (Emphasis added.) In other words, an HOA can be held liable for a resident’s harassment of another resident when:
(1) the harassment is based on race, color, religion, sex, national origin, disability and familial status; (2) the HOA knew or should have known of the harassment; (3) the HOA had the power to correct and end the harassment; and (4) the HOA failed to take prompt action to correct and/ or end the conduct.
As applied to our example, Nate’s harassing conduct was clearly based on Helga and her family’s Jewish religion. Helga complained to management, so the HOA knew of Nate’s conduct. But does the HOA have the power to correct Nate’s conduct? As explained by HUD, “a community association generally has the power to respond to third-party harassment by imposing conditions authorized by the association’s CC&Rs or by other legal authority.” For instance, if the HOA’s CC&Rs prohibit nuisances, the HOA could have imposed violation fines against Nate for causing a nuisance to Helga and her family. By failing to do so (or failing to do anything at all), the HOA will likely be found liable for Nate’s discriminatory conduct. To avoid liability, an HOA Board must take some action to address any alleged discrimination by residents or other people within its authority. If a manager or Board member receives a complaint concerning neighbor-to-neighbor discrimination, some action must be taken. However, what action is appropriate is a fact-specific question. Most neighbor-to-neighbor disputes do not really involve “discrimination,” at least not the kind of discrimination that we usually associate with Fair Housing complaints. But determining what is or is not “discrimination” is not always that easy. This new law makes it clear that HOAs will likely need to look closely at and take action in what appears to be a neighbor-to-neighbor dispute if it appears that there is some sort of discrimination involved. The failure to do this may lead to the association being named in a lawsuit, and potential liability for monetary damages. Continued on page 14
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HOA Liability for Discriminatory Harassment: A Primer Continued from page 13
What’s an HOA Board to Do? So, you ask, what type of corrective action is required? As stated, that depends on the circumstances. It may include verbal and/or written warnings and demands that the offensive and discriminatory conduct stop, legal action, including harassment restraining orders and/or reporting the offensive conduct to the police. Note that if a Board member is doing the harassing, that Board member must, of course, be kept out of any executive decisions relating to
the harassment complaint. In light of the potential liability and the sensitivity of the situation, if an HOA receives an allegation of discriminatory conduct, it should contact legal counsel for guidance. Moreover, HUD recommends that HOAs do the following: • Educate board members, employees and managers about the FHA and the types of discrimination about which they should be aware and on the look out for;
• Develop and publish antidiscrimination policies/rules for the association; • Act promptly to address complaints from residents; • Mediate disputes between residents; • Use enforcement provisions under the CC&Rs to correct and end discriminatory conduct.
Sandra L. Gottlieb, Esq. is the managing partner and head of the transactional division of SwedelsonGottlieb, a law firm that exclusively represents homeowners’ associations throughout California. Nicholas Marfori, Esq. is an associate with SwedelsonGottlieb working with its Association clients on transactional and litigation matters.
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ISSUE THREE 2017 • CONNECT WITH GRIE
CONNECT WITH GRIE • ISSUE THREE 2017
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The Drought is Over, Now What? BY KELLAN FALCONIERI
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few months ago, Governor Jerry Brown officially announced the drought in California is over. This announcement came after a historically wet winter, especially here in the greater Inland Empire, where California saw almost the most rainfall in over a century. This move by the governor left many of us in the community association and landscape industry asking ourselves, what now? First, it should be noted, the Governor stressed that while the drought emergency is over, “conservation must remain a way of life.” Most landscapers throughout the state would agree with the Governor’s statement and the future of landscaping in California. It is important to remember that Southern California is a desert, and while we did have a very wet winter, the next drought could be just around the corner for the state.
As you may remember, in 2014 Governor Brown ordered a mandatory 25% cut in urban water use and tasked each water district with meeting this goal. This mandate from the Governor Brown lead to restrictions such as watering only two days per week, no run-off or overspray permitted, and in some agencies washing cars in the driveway was prohibited. Conservation rebates and harsh fines were implemented throughout the various water districts in the Inland Empire, which helped cut urban water use dramatically. Many of the local water districts were able to meet and even exceed that 25% cut in urban water use, and in April the State Water Resource Control Board announced that in the month of April the state had cut water use 25.1% compared to April 2013. Many of the water restrictions put into place over the past 3-4 years have been relaxed following the winter we experienced, however there are still limited restrictions and penalties at select agencies for over-watering. Wasteful practices such as hosing off driveways, excessively over-watering turf areas, and using irrigation within 48 hours of a rain event are permanently banned in the State Water Resource Control Board’s new plan for long term conservation. Specific water restrictions vary by agency and can be found on each district’s website.
The Future of Landscaping in California
If you have been to any new home developments lately, you will notice there is little-to-no-grass or water-thirsty plant material being installed, and for good reason. Builders have seen the writing on the wall for the past few years and have dramatically cut back on the installation of turf at newly built communities. While green grass looks great, it means higher water bills, and sometimes higher landscaping bills in Continued on page 20
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The Drought is Over, Now What? Continued from page 19
Live Revitalize
Prioritize: Tackle the biggest water waste areas in the community first. This can be a turf area that is never used, “thirsty” plant material or simply making minor irrigation adjustments/repairs.
Grow
Audit the Irrigation System: A simple irrigation audit may uncover tremendous water waste and deficiencies. The audit will measure how effective an irrigation system is working, and that information can be used to develop a plan to eliminate as much waste as possible.
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community associations. Depending on the type of the plant material installed; a low-maintenance and water-efficient plant pallet can save the association money on monthly landscape maintenance costs while also saving on irrigation costs. This can be vital to keeping a community’s costs down, which always results in happy homeowners. What to do if your community association has a large amount of turf or high-water-use plant material? The most important thing community managers and residents can do is get educated on what is best for the community. Community conservation needs can differ based on numerous variabilities such as size, age, irrigation, location and more. Here are a few tips for conserving water, while still maintaining a beautiful and lush landscape:
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Make Realistic Changes: Removing the only grass park in a community is not the answer to water conservation. It is important for a community to make changes that are effective, but don’t drastically negatively affect the community and residents. Plant Material: Find plant material that is water wise, but still fits in with your community’s aesthetic. A visit to your local nursery will help tremendously in finding plant material that will fit in your community while still allowing the association to conserve water.
Moving forward, Governor Brown has instructed water agencies to develop long-term plans for water conservation. The order has the following objectives:
• • • •
Use water more wisely Eliminate water waste Strengthen local drought resilience Improve agricultural water use efficiency and drought planning
Urban water suppliers are required to calculate water use targets and implements standards beginning in 2018 and adopting final standards in 2021. This long-term plan is further evidence that gone are days of unregulated water use here in California. Conservation is now a staple in community associations and an issue that will need to be planned for and proactively dealt with. There is no better time than now to begin a discussion with your board and landscaper regarding how to get your community association ready for the future of landscaping and wise water use in California. Kellan Falconieri, Business Development at Gothic Landscape
Whatever your interests are, we have a committee that could use your experience, input and ideas. Volunteering to serve on a committee is a great networking opportunity and helps the growth and success of our chapter! Log on to www.cai-grie.org for more information.
AAB_Innov_CAI-GRIE_HalfPg_Cardoza_with Bleed_031417.pdf 1 3/14/2017 10:08:51 PM
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Protecting Your Investment
H
istory has proven that many roof damages are the result of individuals or companies performing maintenance or construction on a building during or after the installation of your roofing system. These persons are liable for any damages to your roofing system. If emergency repairs are required, the building owner should take immediate action to prevent entry of water into the roofing system and building interior.
SAFETY MEASURES Why Regular Inspections and Maintenance?
Roofs are constantly under attack by weather, structural movement, and stresses as well as chemicals present in the atmosphere. While normal aging will occur on all roofs, small problems stemming from neglect, abuse, 22 |
ISSUE THREE 2017 • CONNECT WITH GRIE
contamination, error or accident can result in costly repairs or premature failure of the roofing system, if not detected. A regular program of inspection and repairs will help detect minor problems before they become serious, avoiding interruptions of the internal functions within the building, and most importantly, protecting the owners’ investment by adding years to the life of the roof.
Setting up a Maintenance Program
A maintenance program has two areas of responsibility: 1. SCHEDULING ROOF INSPECTIONS. At least two inspections should be made every year. Ideally, inspections should take place in the spring to check on damage that
may have occurred in the winter, so repairs can be scheduled during the fair weather, summer months. The second inspection should be in the fall to be sure that the roof is in good condition for the upcoming winter months. Inspection should also be made after any other occurrences that might affect the roof. (Example: storms, construction activities, fires, etc.) 2. CONDUCTING INSPECTIONS. All components of the roofing system should be closely inspected and a record made of any signs of deterioration, unusual traffic patterns, poor drainage, accumulated debris, displacement or loss of ballast, or other conditions.
Sealants
The primary area of maintenance is the sealants on the roofing system. All
membrane’s solar reflectivity. When cleaning the membrane surface, use a non-sudsing, non-abrasive, powdered cleanser (Ex. “Spic-n-Span”).
Parapet Walls
Parapet walls should be inspected for deteriorating copings, cracked or open mortar joints or other signs of wear and tear. Degradation of the parapet wall can lead to water penetration into the structure, which is not only harmful to a structure, it may also cause the failure of parts of the roofing system. Insulation, decking, framing members, and the fasteners in a mechanically-attached roofing system may all be adversely affected by moisture penetration.
Building Structure
pitch pan fillers, caulking and sealants must be examined during all regular inspections. Sealants are a major item in any maintenance program due to the extreme stresses created in these areas. Sealants are susceptible to cracking, pulling away from the walls or other surfaces, and splitting. Sealant replacement should take place at the first sign of deterioration.
Drainage
The roof structure should provide for positive drainage to eliminate ponding water whenever possible. The weight of ponding water may deflect the decking and framing members, causing damage to the structure and the roofing system. Proper roof drainage is a very important item in a maintenance program. These structural issues
should be addressed with your engineering and architectural advisors. Drains should be kept clear, and any debris that may clog a drain such as tennis balls, baseballs, beverage cans, etc. should be removed during each inspection. Every drain should have a clean “leaf” grate present to prevent clogging of the drainpipes. A roof inspection in the late fall should also include the removal of leaves. A clean industrial broom can be used to sweep the leaves from the drainage path(s). Another way of removing leaves and other debris as well as observing drainage patterns and activity, is to “wash” the roof. Washing also removes the dirt from the roof surface, which is helpful for reviewing typical membrane wear during the roof inspection. Washing will also help maintain white
The condition of the interior and exterior of the building structure should be visually checked during your regularly scheduled inspections. Defects within a structure can affect the roofing system because of the interactions between the structure and the roofing system.
Building Structure: Interior
If a drop ceiling is present, the interior can be viewed by removing ceiling tiles. The walls should be viewed for settling, cracking or movement. The decking should not be rusted (if metal) or deteriorating (if wood). Any water stains that become evident after the installation of the roofing system will require research to determine the entry point of the water/moisture. A concrete deck should be checked for spalling, cracking and/or distortion of the deck to reveal possible structural defects. Any or all of these items can affect the Continued on page 24
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Protecting Your Investment Continued from page 23
roofing system because of the stresses revealed. Contact a professional roofer for an evaluation when encountering any of these items.
other roofing system may have direct impact on the performance of the roofing system.
Building Structure: Exterior
The exterior of the structure should be inspected for open mortar joints, poor laps in siding, concrete spalling, loose fascia or general degradation. Any of these items will allow water and moisture penetration, which may affect the longevity of the roofing system, and the structure itself. New water stains on exterior walls may indicate that the coping or other terminations are leaking.
Care must be taken to ensure that any small, sharp debris is removed from the roof. Check around air conditioning equipment, other penetrations and elevation changes, and areas of access. Air conditioners should be checked to ensure that the access panels are properly fastened in place, and that the drainage lines are functioning properly. Clogged drain lines and missing panels are items that create leakage into the structure.
Roof Tie-Ins
Ballast
Tie-in areas should be thoroughly inspected for any sign of failure. Tieins have different materials in contact, which may create an area of stress. The sealants and other items in these areas should be reviewed for cracking, splitting or gaps. Degradation of the
Air Conditioning Units
If a ballasted system has been installed, make sure the ballast is evenly distributed. Extreme care should be taken when inspecting the ballast, reviewing the corners, perimeter, and around penetrations for bare spots due to the increased wind
effects in these areas. The ballast should be redistributed, taking care to not damage the membrane. If your inspections reveal that the ballast is being moved repeatedly, it may be necessary to place an interlocking paver system in these areas. The even distribution of ballast can have a direct correlation to the longevity of a roofing system.
Good Housekeeping
The final area of inspection is the general appearance of the roof and the surface conditions of the membrane. General appearance is primarily a function of housekeeping. Debris, poor drainage or ponding water can directly affect the roofing system. An effective maintenance program will address these items and prevent damages to the roofing system. By McDonnell Roofing | Anaheim, CA
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Mahendra Sami Regional Account Executive 213-236-5029 mahendra.sami@unionbank.com
Ways to Minimize Your Reserve Contributions by Kevin Leonard, RS
W
hy put more money into your reserve fund than necessary? I can’t think of a good reason! You don’t want to make reserve contributions that err on the side of being too little, that may lead your association toward a special assessment, borrowing, or the even higher costs that come with deferred maintenance. But you shouldn’t put away too much either. Let me give you six ideas how to responsibly minimize your reserve contributions.
1
Perform Timely Ongoing Maintenance A touch-up paint project, paid for through the operating budget on the high-exposure surfaces that get the most weathering, may allow you to extend the useful life of a repainting project from five years to six years. Look at it this way: Suppose a repainting project has a useful life of five years and costs $20,000. The value of its deterioration is $4000/yr. If the association can pay for a $500 paint touchup to extend the useful life to six years, the deterioration is reduced to about $3500/yr. You just saved $500/yr on an ongoing basis! This same principle can be applied to other components, including roof maintenance, gutter cleaning, carpet cleaning, asphalt cleaning and sealing.
2
Review Your Actual Replacement Needs Don’t execute a reserve project just because your reserve study indicates it has a remaining useful life of zero years. If a fence is still standing and strong, don’t replace it prematurely. If that pool heater is still serving well, don’t replace it prematurely. This is another way to “extend” the useful life of your reserve components, stretching the replacement cost over a larger number of years. It’s a also a good reason to update your reserve study every year because extending the useful life of your reserve components generally translates to
a lower reserve contribution. Caution! Know the difference between extending the useful life of a component and deferring maintenance!
3
Allow an Outside Organization to Pay Part of Your Contributions How is this done? It’s called reserve interest, and you get it from the institution that holds your reserve funds. Even with today’s low interest rates, outside money helps, and it adds up to a surprisingly significant amount over the years as it gradually compounds. Too many associations aren’t getting any interest, or aren’t making timely deposits (or insufficient deposits) because they don’t think that .5% or 1% interest is worth earning. That kind of thinking is just plain wrong. Maximize your reserve interest earnings. Then stand back and watch it compound, slowly and steadily, over the years. Every dollar earned in interest is one less dollar contributed by the homeowners.
4
The Cash Flow Method One of the best ways to minimize reserve contributions is to make sure your reserve study provider uses the “cash flow” method of calculating your recommended reserve contribution. The alternative “straight line” calculation method points your association towards full (100%) funding in a relatively short number of years. But there’s no reason to be that aggressive. You can still achieve a fully funded objective (a good idea, by the way) using the “cash flow” calculation method. Your association will get to full (100%) funding, but more smoothly, and over a few more years. Distributing the reserve income burden over many years is the most responsible reserve funding approach. This can make a big
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Six Ways to Minimize Reserve Contributions Continued from page 25
difference in lowering your calculated reserve contributions along the way.
5
Review your operating budget to verify that you are not “double-budgeting” Double-budgeting happens when a reserve project is funded both in operating and reserves. If you are successfully repainting 1/5 of the buildings every year in the operating budget, you don’t need to include a repainting component in your reserve study! Look closely to find if this is true with tree trimming, pool furniture, smaller mechanical components, etc. You only need one replacement budget for a component, not two.
6
Avoid These Common Mistakes A. Deferring projects. Avoiding a repair or replacement project “just because” is a bad idea. Deferring the
expense. Deferred projects tend get more expensive due to deterioration of underlying materials. This is especially true of asphalt, painting, and roofing. There is a difference between extending the useful life of a pool heater and deferring a critical seal/repair project for your streets. By deferring, you’re doing the association a financial disservice. B. Thinking 50% funded means making 50% of your full funding contributions. Funding reserve projects is expensive. Even a baseline funding objective (where your contributions are designed to just keep the reserve fund barely positive) requires a lot of money. For this reason, baseline funding contributions average only 13% less than full funding contributions. Thinking you can cut your full funding contributions in half typically leads to running out of reserve funds in just a few years.
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ISSUE THREE 2017 • CONNECT WITH GRIE
expense doesn’t just postpone the
C. Head in the Sand. Thinking that the asphalt will “essentially never” need resurfacing, or that a roof or elevator is a “lifetime component” are both critical mistakes. Calculating reserve contributions without those influential components is irresponsible. Asphalt, roofing, and major mechanical components are destined to deteriorate and will inevitably fail. Ignoring that reality will only commit your association and future homeowners to an unstable financial future that includes special assessments or borrowing.
The Bottom Line The primary responsibility of the board of directors is to maintain the physical assets of the community, many of which will deteriorate on a fairly regular cycle. These assets can be translated into a list of reserve components, each with its own useful life, remaining useful life and replacement cost. There are many wise steps to minimize your reserve contributions necessary to ensure timely repairs and replacements, but it is unrealistic to expect a substantial reduction. Yes, reserve expenses can be very expensive, but they are also predictable. Successful community associations understand that financial stability begins with planning appropriately and responsibly for the significant projects your community will face.
Kevin joined Association Reserves, Inc. in 2013 after graduating from California Lutheran University. His experience includes condominiums and homeowners’ associations ranging from 4 unit condos to 1,000+ unit PUDs. Kevin earned the Community Association Institute’s Reserve Specialist (RS) designation and has the distinction of being RS #294. He enjoys the demands of this job which require him to think critically through situations as well as to communicate clearly with clients, in order to bring clarity to Reserve planning and disclosure.
Building a Sense of Community June Winner - Harveston HOA, Temecula
T
hroughout the year, Harveston’s management team puts on communitywide events for all members to enjoy. And a ton of residents do! Some are adults-only, some family events, and some just for the kiddos! These events include Halloween and holiday house decorating contests, live music, movie nights, reptile/magic shows, and even special guests like the Easter Bunny, Santa, and the Grinch! For the teens and kids there are poolside music series, a back-to-school party with games and raffles, and recently a Snoopythemed western festival. Residents’ favorite, and most attended of the year, is Polynesian Night. Polynesian dancers, fire eaters, snow cones, and a coconut demonstration are included in the family-fun event. And best of all, family and children events are FREE as part of their membership. And the adults-only events? A nominal $10, and alcohol is provided. The next event has Harveston mothers excited for ‘Mom’s Night Out’ – an adults-only movie night featuring the film ‘Bad Moms’ and adult beverages. Thank you Harveston for making a positive impact in your community! Are you building a sense of community in your HOA? We want to hear about it! Submit your story to be eligible for next month’s prize. Submissions may be sent via email to info@cai-grie.org. Also, as a reminder, all monthly winners are entered for the grandprize to be awarded at the TOPS Breakfast on December 15, 2017! Submitted by: Alissa Jaffe, Facility Manager Executive Director of Harveston HOA: Suzanne Green, CMCA
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