Connect Magazine: Issue 2—2015

CAI-GRIE’s mission is: To make a positive contribution to the Common Interest Development Community through education and networking.

connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI

ISSUE TWO 2015

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connect Table of Contents A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI

www.cai-grie.org

OFFICERS Nancy I. Sidoruk, Esq................................................................. President Epsten Grinnell & Howell APC Dana Mathey, AMS, PCAM..............................................President-Elect Euclid Management Company Linda Cooley...................................................................... Vice-President Rosetta Canyon Community Association Lana Hamadej, LSM, PCAM..................................................... Secretary Avalon Management Group, AAMC Jeremy Wilson, MBA, CCAM, CMCA, AMS, PCAM ................ Treasurer Associa-PCM/Sun Lakes Country Club Kimberly Lilley, CMCA, CIRMS...........................................Past President Berg Insurance Agency, Inc. BOARD DIRECTORS Greg Borzilleri......................................... PCW Contracting Services, Inc. George Gallanes, CMCA....................................Sunnymead Ranch PCA Cyndi Koester, CMCA, AMS, PCAM................................. Sunwest Bank Cang Le, Esq..............................................................Adams Kessler, PLC Nick Mokhlessin...............................ValleyCrest Landscape Maintenance Brian D. Moreno, Esq................................................. SwedelsonGottlieb Chet Oshiro.........................................................................EmpireWorks Shelly Risbrudt............................................Pilot Painting & Construction Kristie Rose, CMCA, AMS, PCAM........................ FirstService Residential CHAPTER EXECUTIVE DIRECTOR DJ Conlon, CMCA ADMINISTRATIVE ASSISTANT Ginny Aronson-Hoke EDITOR IN CHIEF Cang Le, Esq. ............................................................Adams Kessler, PLC PUBLICATIONS COMMITTEE Linda Cooley.............................Rosetta Canyon Community Association Gary Kessler, Esq........................................................Adams Kessler, PLC Robert Riddick, CMCA.......................................Sunnymead Ranch PCA Betty Roth, CCAM, CMCA, AMS, PCAM.............. Avalon Management

Group, AAMC Nancy I. Sidoruk, Esq. .............................Epsten Grinnell & Howell, APC

Features 4 The Value of Membership

By Mike Rey

9 Why Hire a Professional?

By Phil Hakopian, CIRMS

12 CAI-CLAC Legislative Day at the Capitol

By Jim McMurray

14 Working Together to Ensure Assessments are Paid

By Erin A. Maloney, Esq.

18 The Painful Death of Volunteerism

By Julie Adamen

22 The Benefits of Membership in CAI

By George Gallanes, CMCA

23 Payment Plans: Getting Paid While Getting Leverage

27 CAI-CLAC Returns to Sacramento for Legislative Day 2015

By Robert Riddick, CMCA

29 Tips for Buck-a-Door Support Outreach

By Robert DeNichilo. Esq.

Departments 7 President’s Message

By Nancy I. Sidoruk, Esq.

8 Editor's Link

By Cang Le, Esq.

26 GRIE Receives Recognition from National

30 Lake Elsinore Storm Game Photos

By Shani Zakay, Esq.

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.”

Copyright © 1998–2015 CAI-Greater Inland Empire Chapter.

Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter

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 —

5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / fax (951) 848-9268 info@cai-grie.org

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 TWO 2015

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BY MIKE REY

The Value of Membership

L

arge organizations use committees to ensure that certain projects get accomplished. The President of the United States (POTUS) needs committees for transportation, finance, war and communications to the public.

Community Associations Institute - Greater Inland Empire Chapter (CAI-GRIE) is a large organization as defined by CAI National, since it has over 500 members. As members of CAI-GRIE, we are part of the sales force which makes this chapter a success.

The success of CAI-GRIE depends upon its committees. Just as a company has a sales organization, CAI-GRIE has its own sales force – the Membership Committee. The Membership Committee enhances the Chapter President’s annual theme and expands membership based on

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ISSUE TWO 2015 • CONNECT WITH GRIE

activities which actively involve the members. The Membership Committee designs activities that encourages involvement from all members. During this year anyone who recruits a new member is rewarded with an entry into a quarterly drawing for a gift card donated by one of our business partners.

You get an entry for every member you recruit!

At the end of the year, one lucky member will be drawn from the entries and will win the grand prize of an “Inland Empire Experience” worth $1,000 ... so the more you recruit, the better your chances of winning!

This year’s theme, chosen by president Nancy Sidoruk, Esq., is playing up the 25th Anniversary of the Chapter. Our membership drive theme is “Advance to New Heights – Strive for 25” and was designed to add 25 new members to our chapter by the end of 2015. The Membership Committee

uses the resources of its own committee members and other committees to acquire this goal. The Committee makes calls to past members whose membership has expired to give them a little extra encouragement to rejoin and continue receiving the benefits of CAI-GRIE. The committee also delivers “New Member Kits” and are available to answer questions the new member might have.

This personal contact with our existing and new members expresses our appreciation for their support to our chapter. Every committee member has their own particular responsibilities, which ensures that the committee follows through on the goals identified by the President of the chapter.

As with all organizations, member involvement is crucial to the organization’s success. Being involved in CAI gives each member a greater understanding of how our organization works and how each member can serve the committee

of their choice. Seeing the membership grow through the efforts of each committee member in coordination with the membership is extremely rewarding and self-satisfying.

When deciding which committee to join, assessing your individual interests and personality are important. The Membership Committee comprises diverse and outgoing personalities who are sales people in their daily jobs. As part of the Membership Committee, what you do in your daily life can significantly help in your commitment to the committee. There is no better way to show your commitment to the chapter than to be involved in a committee or to increase our membership by recruiting new members. New ideas from new committee members adds to the creativity of the Chapter and keeps membership involvement fresh.

Regardless of which committee you become involved with, you automatically get to participate in the networking process with your peers. Should you become a member of the Membership Committee, you are one of the first contacts when new members and existing members attend events. Some of our committee members greet guests at the front entrance before entering the trade shows. As a member of the committee you will get to know your fellow members and will become a familiar face at Chapter events. Twice a year the committee hosts, sometimes with another committee, “New Member Mixers” which include a meet and greet with all the new members who have joined during the Continues on page 6

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The Value of Membership Continued from page 5

, CCAM AMS, PCAM i, n la m A y ment, Inc. Ros on Manage ti ia c o s s A S&L

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previous quarter. At the New Member Mixers committee members network and interact with the new members on a one-on-one basis while enjoying hors d’oeuvres. This is an excellent way to get to know your fellow members personally and professionally.

A vital part of any organization is retention of existing members. Since part of the “sales” teams’ responsibility is to encourage membership, retention of existing members and maintaining their interest with activities which increase their involvement, gives the membership something in which they can participate and find value.

The membership committee has an active part in retaining our current membership. As a committee we get to know how the Chapter is growing. At last count our chapter has 547 members. As a committee, we take pride in knowing that through our efforts and with the help of the membership, we have brought our chapter to the level we are today. It is also rewarding to know that we, as a committee, constantly advance to new heights by finding new ways to increase our membership. Since we began this new campaign we have a goal to “Strive for 25.” Our goal on the membership committee is to increase our membership by 25 new members by the end of the year.

So, if you have an outgoing, gregarious personality and you feel like you want to take an active part in the success of the Greater Inland Empire Chapter, then the Membership Committee might be the right committee for you. As with any committee, you can attend to express an interest and find out if it meets your style.

NOTE: At the CAI Annual Conference in Las Vegas, NV on May 1, 2015, the Greater Inland Empire Chapter received an award for Best Net Retention for a large chapter in the 2014 Calendar Year 93%. Congratulations to all our committee members for your hard work!

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ISSUE TWO 2015 • CONNECT WITH GRIE

PRESIDENT’S MESSAGE

Nancy I. Sidoruk, Esq., is an attorney with Epsten Grinnell & Howell, APC, and the 2015 CAI-GRIE Chapter President.

National Volunteer Week was April 12-18, 2015. In celebration, I emailed our committee members about the importance of their service. Their efforts are critical to our provision of beneficial member opportunities, including those designed for personal interaction and networking, cultivation of professionalism, and educational enrichment that leads to community harmony and success. And that’s just a few of the items that represent the core of what CAIGRIE is all about.

I now share with you what I shared with our committee members, perhaps instilling a desire to become involved (or more involved) as an active Chapter volunteer.

National Volunteer Week was designated by executive order by President Richard Nixon in 1974, and every President since has signed a proclamation of support. As president of CAI-GRIE, it is both my responsibility and pleasure to follow the example of our nation’s leaders by expressing my thanks for all that our volunteers do.

I am again reminded of how important our volunteers are to the ongoing success and enjoyment of being a part of this Chapter.

Committed, loyal and dependable volunteers tirelessly share their time, talent and enthusiasm, and

consistently uphold the obligations they made by joining a committee.

As I’ve said from the beginning of the year, this organization is its members, and it is our duty to continue to Advance the Greater Inland Empire Community Association Experience for another 25 years and beyond.

So, let’s again honor our dedicated volunteers, because National Volunteer Week was about inspiring, recognizing and encouraging people to help their communities. It’s about meeting our challenges by working together.

I came across a sample legislative proclamation for National Volunteer Week and many of its points were quite meaningful, although I’ve adapted them to better fit our needs …

• Our entire CAI-GRIE volunteer community can inspire, equip and mobilize our members to participate in a way that Advances the Greater Inland Empire Community Association Experience.

• CAI-GRIE volunteers can make important connections with community associations by meeting and exceeding their commitments to the Chapter.

• The power of committees to make a difference to CAIGRIE and to community association living in the Greater Inland Empire is dependent upon the efforts of individual volunteers.

• Our Chapter’s committee volunteer force is a great treasure.

• Volunteers are critical to our Chapter’s future as a vital organization, an important resource and a meaningful source of personal and professional connections.

• During National Volunteer week and throughout the year, volunteers should be recognized for their commitment to service.

We are off to an exciting start in 2015, and there are many fantastic opportunities for success coming throughout the rest of this 25th anniversary year.

Volunteering can be a rewarding experience, both personally and professionally. But, it takes commitment, active participation and communication, followthrough, teamwork, enthusiasm and consistency of purpose. The reliability and effectiveness of our efforts, individually and in committee groups, is a reflection on us as an organization and directly impacts our ability to fulfill the CAI-GRIE mission of advancing the community association industry through positive image, professionalism, advocacy, education and networking.

I, too, am a committee volunteer, so I know it’s not always easy. OK, it’s rarely easy. So, if there’s anything I can do to help, please let me know. I am here for you, and I thank you.

• The giving of oneself in service empowers both the giver and the recipient.

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EDITOR’S LINK The ostensible benefit of being a member of an organization is joining like-minded individuals to pursue common goals and collectively to benefit a particular group. From the basic fundamental level of a family, to informal social groups and circles of friends, to professional organizations, the joining of a group appears to be an innate way to achieve goals. While the benefits of being a member in a group may be obvious, the strength, success, and survival of the group requires a lot of work and responsibility.

This is the case with the Community Associations Institute and its local chapters – and the theme for this issue of Connect. The collective goal of CAI is to benefit and promote the welfare of the community association industry, the homeowners who live in these communities, and those who serve the communities from the volunteer board member to the hired professionals. This issue will discuss some the benefits and responsibilities of being a member of CAI and community associations. Additionally, we asked CAI members what they like best about being a CAI member and what they think are best benefits – those responses are scattered throughout the issue as “tweet-like” responses.

Cang N. Le is a managing attorney for the law firm of Adams Kessler PLC. He can be reached at cle@adamskessler.com or 1-(800) 464-2817.

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ISSUE TWO 2015 • CONNECT WITH GRIE

Why Hire a W Professional?

BY PHIL HAKOPIAN, CIRMS

ikipedia defines a “professional” as a member of a profession. The term also describes the standards of education and training that prepare members of the profession with the particular knowledge and skills necessary to perform the role of that profession. In addition, most professionals are subject to strict codes of conduct enshrining rigorous ethical and moral obligations.

Professional standards of practice and ethics for a particular field are typically agreed upon and maintained through widely recognized professional associations. Sounds like many of the people I know that are involved with Community Associations Institute (CAI).

When I was first introduced to CAI, I met people who were truly passionate about what the association offered, and who wanted to make things better for association managers, homeowners and business partners. Now, 23 years later, I still see that same passion all Continued on page 10

CONNECT WITH GRIE • ISSUE TWO 2015

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around – especially as I walk around a Mini Trade Show Luncheon and see homeowners attending the Essentials classes, visiting management offices, and seeing all of the individual designations like Association Management Specialist (AMS) or Professional Community Association Manager (PCAM).

We are always inviting people to join our association. Many do, but others don’t because they may not want to put in the time or effort it takes to educate themselves.

Oftentimes it comes down to price, but is that the best and only thing to look at? Usually when price is the determining factor it will come with a price. If I were to ask another insurance agent who is not part of CAI “Tell me about the Davis-Stirling Act” the answer would probably be: “I don’t know what that is.” So why do people look to vendors that are not associated with CAI? I am involved with many associations. I try to attend most programs offered, and yes, sometimes

I hear repetitive information. I sometimes ask myself: What kind of knowledge will I gain from that class or program? However, I will always walk away with something new; I usually get one or two ideas from each event.

Sometimes those ideas come from just having a conversation with other business partners. I will then take that information and share it with others in our field. Isn’t that why we are part of an association, to continue to learn and share with each other and get a different perspective?

When CAI National announced that they had a designation for insurance agents, I decided that I should be certified as a Community Insurance and Risk Management Specialist, (CIRMS). I learned a lot and thought I should have taken some classes, like the Essentials class, twenty years ago. The credential is a great tool to put you on the same playing field with others in the industry.

I believe that all new members should have to take some classes

that managers take to achieve their professional designations. That would help the business partner understand what that manager is going through, and help them when preparing a bid.

What about the homeowner who is new to the board? How much nicer would it be for the board member to participate in the meeting within the first month? What about a new manager? CAI can teach them the essentials to get them started and give them a basic knowledge of business partners and how they can help to make a manager’s job easier.

When someone is a member of CAI or any other association, there is always a sense of camaraderie; we all want to help and support our industry. I know many insurance agencies that are part of CAI, and would not hesitate to assist in answering a question or help with a need. I feel this is a sign of a true professional.

Phil Hakopian is the president of Cornerstone Commercial and Personal Insurance Services, Co-Chair of the Business Partner Committee for GRIE and a member of the CAI Greater Inland Empire and Nevada Chapters.

Vicki Giese, CMCA, AMS Associa-Equity Management, AAMC

What do you think are the best benefits of being a CAI member?

The resources available to you from managers, vendors and education.

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ISSUE TWO 2015 • CONNECT WITH GRIE

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CONNECT WITH GRIE • ISSUE TWO 2015

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BY JIM McMURRAY

FROM AN HOA BOARD MEMBER’S PERSPECTIVE

CAI-CLAC Legislative Day at the Capitol

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ISSUE TWO 2015 • CONNECT WITH GRIE

I

am in my second year as a member of our community association’s board of directors at The Club in Sun City, a community in Menifee. As a previous participant in the annual CAI-CLAC Legislative Day at the Capitol in Sacramento, I was again offered the opportunity to participate. Having thoroughly enjoyed this experience in 2014, I immediately and enthusiastically accepted.

Upon our arrival at the Hyatt Regency in Sacramento on Sunday morning, April 12, 2015, we were immediately treated to educational sessions conducted by some of CLAC’s most highly qualified individuals. As an example, our first session was entitled “Welcome! ... and How a Bill Becomes a Law.” I found this session to be incredibly valuable and somewhat humbling because I had taught the legislative process to 4th graders for several years during my tenure in education. I was “educated” on several aspects of the process of which I had not been previously aware.

The session truly gave me a thorough understanding of the legislative process and offered advice on applying what we’ve learned, not only during our time in Sacramento but also after we returned home.

Additional sessions concerned drought-related legislation, fair housing regulations and changes to solar law as they apply to community associations and their members.

The afternoon concluded with a presentation entitled “Hot HOA Bills Briefing,” given by Skip Daum, our CAI-CLAC advocate in Sacramento. Sunday evening’s Dine with the Delegates atop the Hyatt Regency in its 15th floor Capitol View room was again a program highlight.

The sessions continued on Monday morning with the theme “Applying What You’ve Learned: Preparing to Lobby.” Our CLAC advocates and delegates had met the previous day to select 3 to 4 key bills for us to discuss with our elected representatives. We were given a summary of CLAC’s positions on the selected bills. We were also afforded the opportunity to thoroughly learn the materials so we would be confident and comfortable in our presentations to our legislators. Of key importance, we learned, was to express WHY these bills/issues are important to us as voters and constituents.

We were encouraged to use the buddy system and work as a team during our presentations. This was particularly valuable for the “first timer” in the group. To help plan ahead and decide which member of the team would speak about which proposed bill, teams got together before their preset afternoon legislator and/or legislative staff member appointments. As a group we found that we were extremely well received by our legislators and their staff.

There are 1400+ lobbyists and over 2400 bills before the California legislature. So it is very difficult, if not impossible, for members of the California Senate and Assembly to fully know of the content and implications of any proposed bill. This allows us, as participants in Legislative Day at the Capitol, to take on the role of educators. We are giving our own legislators the opportunity to learn from us the particulars of certain pieces of proposed legislation and their potential positive or negative effects on constituents living in community associations throughout California, and especially here at home in their Inland Empire districts.

I ask you now, who could turn down such an awesome opportunity?

The day ended with a cocktail and hors d’oeuvres reception and debriefing session. Participants shared how they – and the positions they advocated – were received by their respective elected representatives.

The debriefing session provided a comfortable forum for participants to celebrate their own contribution to the legislative process and to convey their legislators’ questions and comments to CLAC’s advocate and delegates.

Besides meeting and talking with our legislators, there were several other benefits to participating in the Legislative Day events. One benefit was the opportunity to speak with other community association board members and learn from them by discussing the issues and experiences they are having within their own community associations.

Topics of discussion centered on the importance of setting reasonable time limits on board meetings, the many advantages of finding and working closely – and in cooperation with – a competent community association manager, the importance of following

the Business Judgment Rule and providing director’s and officer’s errors and omissions insurance that affords protection to volunteer directors.

All of us agreed on the importance of enhancing communication with the association membership. We discussed and emphasized the role of improved communication in inspiring confidence in those governing the association and the contribution it makes toward creating willingness of others to volunteer their time, talents and experience.

I strongly encourage every board member, association manager, business partner and homeowner to consider participating in the next CAI-CLAC Legislative Day process.

The benefits to your association, your firm and to you as an individual are

innumerable. I look forward to seeing you in Sacramento in 2016.

Jim McMurray is currently serving as Vice-President of The Club in Sun City Community Association.

He has also served as president of the association. He is a member of the CAIGRIE Chapter and its Legislative Support Committee.

CONNECT WITH GRIE • ISSUE TWO 2015

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BY ERIN A. MALONEY, ESQ.

Working Together To Ensure Assessments Are Paid Steps Associations Can Take Before Referring a Matter to Collections Associations rely upon payment of assessments by all of their members to meet the financial obligations imposed upon them by their governing documents, and by California law. Unfortunately, many association members do not understand that they are harming their entire community by failing to pay their assessments, and often see their homeowners association assessments as one of the first bills to stop paying when they encounter financial difficulties. Many owners place a much higher priority on keeping their premium cable channels than they do on paying their assessments.

Most community association professionals and volunteer directors see assessment collection as a necessary but unpleasant task. They meet their duties regarding collection efforts, with their primary focus usually being on deciding the remedy to be utilized – judicial foreclosure, non-judicial foreclosure and small claims being the most commonly used options. Attention is then usually turned to which provider will assist the association in its collection 14 |

ISSUE TWO 2015 • CONNECT WITH GRIE

efforts, and on sending the matter off to that provider.

Often, directors have overlooked their opportunities to take an active role in collection efforts to assist their association before referring a collection matter out.

Perhaps, associations may benefit from redirecting their focus in the early stages of delinquencies. By employing preliminary techniques before referring a matter to a collection professional, associations may reduce their overall delinquency rates, and costs associated with collection efforts. Four important steps are frequently given inadequate attention that every association should consider.

The first step that every association should take in the collection process is to actively communicate with its members regarding the importance of paying assessments, and the consequences if assessments are not paid. Far too many owners are unclear on what assessments are. Some owners believe that they are paying “dues” to use the pool, and that they need not pay if they do not swim. Others

think assessments are a tax included in the impounds paid with their mortgage, so they erroneously assume that they are being paid. Associations should communicate to their members what the assessments are used for: maintenance and repair of common areas, operation of the association, insurance, etc. Members may not know that the assessments keeps their property value at the highest possible level, and that if they do not pay, their entire community may suffer.

Associations can include a statement with a welcome packet provided to new members that describes how the association operates, and that assessments fund that operation. Newsletters can periodically remind members of the benefits of living in the project, and the obligations associated therewith. If a member becomes delinquent, the association may consider including in its late notice statements describing the importance of assessment payments and procedures for requesting a payment plan.

A second step that every association should take is

to review its collection policy to ensure that it best suits the association’s needs regarding assessment collection. Civil Code section 5310(a)(7) requires associations to include in their Annual Policy Statement “a statement describing the association’s policies and practices in enforcing lien rights or other legal remedies for default in the payment of assessments.” Many associations have an outdated policy, or a policy not specifically tailored for that association’s needs and practices.

Every association should carefully draft its policy so it notifies its members when collection efforts will commence, what actions will be taken, and what some costs are. The policy should be a means to discourage members from becoming delinquent in the first place, lest they suffer charges, a lien, legal action, etc. The policy can also be a resource for the members to enable them to resolve a delinquency by including procedures for requesting a meeting with the association’s directors to discuss the delinquency and/or for requesting a payment plan.

A clear, concise collection policy, which sets forth the specific procedures which the association employs will provide clear notice to the members of what they should expect if a delinquency occurs. If a policy contains boilerplate language which simply repeats the language of the Civil Code, then the members will usually overlook the policy altogether. It is more effective to notify the members they will face a lien and legal action to enforce the lien if they do not pay assessments than to provide a list of possible alternatives that may happen.

The third step associations should take is to improve its policies and procedures for payment plans. Payment plans are beneficial to both the delinquent members, who can resolve their delinquency over time, and to the association because partial payments will be received to somewhat improve the association’s cash flow. However, associations must be mindful that payment plans must be carefully crafted to be of a benefit to both parties.

Every payment plan must be in writing. Payment plans are contracts: they are an agreement between the parties on how a delinquency will be resolved. The plan must provide the repayment terms, and the consequences of a default. The terms of payment plans must be such that they provide for full repayment of the debt within a reasonable period of time.

Have the payment plan carefully drafted by the association’s attorney.

In negotiating a payment plan, often directors focus Continued on page 16 CONNECT WITH GRIE • ISSUE TWO 2015

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Working Together...

Continued from page 15

only on what the member says he or she can pay per month, without considering what will be best for the association. That methodology may cause a plan which is far too long to benefit the association. Costs are associated with administering a payment plan which also must be accounted for in the agreement. If a member cannot afford a reasonable payment plan, it is often best to require the member to arrange for payment, such as a loan from an institutional lender.

Entering a payment plan with a delinquent member is akin to extending credit to that member, to allow them to pay a debt.

Just as no bank would extend a loan to a borrower without first confirming their ability to repay the loan, associations should not enter a payment plan without first ensuring the debtor’s ability to make the proposed payments.

Associations should require any member requesting a payment plan to provide financial statements, copies of bank statements and/or pay stubs to confirm that the debtor has sufficient resources to make the proposed payments, and that they are committing to pay the most that they can afford. Having the bank and employment information on file will also assist the association in future collection efforts if the owner defaults on his or her payment plan.

Associations should evaluate the debtor’s reason for nonpayment. If a member became delinquent because she refused to pay as retaliation for an unrelated dispute, that member may not be a good candidate for a payment plan unless that underlying dispute is resolved. If the member asserts a hardship, the board should consider the nature of that hardship.

If it is ongoing, the member may not be in a position to make any promised payments. If a member asserts hardship, but his bank

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ISSUE TWO 2015 • CONNECT WITH GRIE

statements reflect that he took a recent cruise to Hawaii and frequently goes on shopping sprees, then it may be appropriate to deny a request for an extended payment plan. Associations should be mindful that no member has a “right” to a payment plan; it is a privilege which should be employed only when appropriate, and when both parties will benefit from the plan.

The final technique that associations can employ before hiring a professional to initiate collection efforts for an account is internal dispute resolution (IDR). The Civil Code requires associations to offer IDR at several stages in the collection process, so associations are used to including the offer in pre-lien demands, and prior to initiating foreclosure. However, the offer is often buried in a letter and not considered a tool for resolving a dispute. IDR is a procedure whereby a member can meet with one or more directors to resolve a dispute. Making an offer to participate in IDR early in the process may cause resolving the delinquency without cost to the association.

An association can make an offer to participate in IDR at any time; it need not wait until it sends a pre-lien demand. Making an IDR offer when the owner is only one or two months behind may resolve the matter. IDR can be a way to communicate to the delinquent member the importance of payment to the association, and provide a means for the member to explain the reason for her delinquency and her proposal for resolving it.

For IDR to be effective, the board should provide settlement authority to the participating director in advance. That ensures that an agreement can be reached at the IDR, avoiding unnecessary delay.

The terms of any payment plan must follow the association’s published standards therefor. If any amount will be waived, that amount should never include delinquent assessments, but associations can consider waiving soft costs such as interest in appropriate

cases. As with any other payment plan, any agreement reached at IDR must be in writing.

By focusing on early collection efforts such as those discussed above, an association will increase its effectiveness in collecting assessments.

Once a delinquency becomes so large that an owner cannot readily arrange to pay it off, then it becomes much more difficult to collect. Providing opportunities to the members to

amicably resolve their delinquency at an early stage will benefit the association and its cash flow.

Ms. Maloney has practiced community association law for over 23 years, and is a shareholder of Fiore, Racobs & Powers, a professional law corporation. She manages the firm’s Assessment Collection Department, and works at the Riverside office.

CONNECT WITH GRIE • ISSUE TWO 2015

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The Painful Death of Volunteerism (And How to Resurrect It)

By Julie Adamen

M

any communities, if not most communities, suffer from a lack of volunteers. People are busier than ever, and their time is precious. After a full day’s work, it seems like a real waste of that precious time to spend it at a stuporous board or committee meeting. The result is that year after year, boards discover they can’t find anyone to take their place on the board, or on one of their committees. The result: communities end up being managed by a small group of the same folks for a very long time.

Setting aside the “busy” factor – why are we losing volunteers? Well, from where I sit as a board member on my own association, and as a former manager and current consultant, the death of volunteerism in a community can almost always be traced back to the board of directors. Not that the

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board intentionally drives away volunteers, but often boards, or the President of the board, make(s) the mistake of treating volunteers like employees. By that I mean handling the volunteers as if s/he is being remunerated in cash for their hours of work. Thus, the board doesn’t put a lot of thought into nurturing the volunteer, placing them in the right position, listening to their contribution, allowing them to take initiative or acknowledge their input.

Bottom line: This just doesn’t work because volunteers receive their remuneration through satisfaction of participating in the process, not in a paycheck. In fact, it’s that lack of satisfaction, that frustration, that ends volunteerism, one by one, person by person.

Let’s break that end down to the elements.

Then let’s talk about how to fix it.

Ignoring Volunteer Input

If I had to name the number one killer of volunteerism, it would be boards who ignore the input of their volunteers – be they individual board members or committee members.

Now, in our business we all know that some committees are appointed just to keep the “squeaky wheels” busy (the ’ad-hoc folks), but even their input must not be ignored. The reason I believe this happens is that many boards are under the false belief that acknowledging the input of volunteers means 1) The board agrees with the input and 2) the idea must be implemented.

WRONG and WRONG AGAIN

The input of any volunteer – board member or committee member – is just that: Input. That input does not have to be agreed with or followed, but it must be acknowledged. If it’s not, don’t be surprised when the volunteer refuses to take on another task, or take it on and produce results reluctantly, or even resigns. By not acknowledging previous input, the board sets the volunteer up for serious frustration, even anger. Worse yet, the board sets itself up for future failure with that volunteer – and maybe others. Who loses? The community.

Micromanaging

Community managers know all about micromanagers, because we’ve all had one (or more!) with whom we’ve had to deal. Nothing is more miserable than working for a micromanager, except maybe being micromanaged as a volunteer. Boards or board members, often at a loss on how to operate within the community association structure, will try to keep a hand in everything in an attempt to understand or keep track of what’s going on. Unfortunately, this usually leads to the micromanager not really knowing what’s going on at any one time because there is too much of which to keep track. Those charged with a particular discipline – the

landscape committee, for example – don’t appreciate being undermined by a micromanaging board President who calls the contractor to make sure the information the committee presented is “correct.” Now things start falling through the cracks – because the committee takes on a “Why bother?” attitude, and rightly so. Focused on detail in a misguided attempt at control – or a misguided attempt to feed an ego – micromanagers will either stop volunteerism in its tracks every time or foster sabotage as revenge. Either way, the community at large is the loser.

Note to boards: If you don’t trust your volunteer committee members, get new ones.

Lack of (Timely) Follow Up

Like it or not, if you are on a board of directors, especially if you are the President, you are going to be the de facto leader of the community.

This means fellow board members, committee members and homeowners are going to phone or email you individually or as a group, looking for direction, absolution, leadership, or use you just as a sounding board (no pun intended). This also means when you take on one of these roles, you must, must, must answer email, return phone calls and make personal visits in a timely manner. Not doing so makes volunteers feel as if their input is worth little to nothing, and send homeowners over the edge. Get over it, follow up and get used to it. Who wins? The community.

Appointing people to positions that ill-suit them. In business, we wouldn’t dream of hiring a plumber to replace the roof, or a podiatrist to perform a root canal. Yet many times boards recruit and appoint people for volunteer positions (assuming here that there are volunteers to choose from) without taking in to account whether or not that person has the required skill or knowledge base, whether or not their personal attributes will be a hindrance or an asset, and whether or not that person

can commit the time involved in the volunteer position. In other words, boards will have a tendency to appoint any port in storm, without making sure that person is suited to that position.

If a person lacks leadership skills, or dislikes dealing with the membership, being President of the board probably isn’t the best place for him/her, but that doesn’t mean she or he shouldn’t be on the board where they can make a valuable contribution.

Congruently, if you have a skilled financial analyst, you would appoint them Treasurer, taking advantage of the expertise they bring to the organization. Anytime it’s possible, boards and their management staff should try to match the volunteer’s strengths with a position best suited for them. It’s win-win: The volunteer feels needed and able to contribute to the greater good, isn’t frustrated and the community reaps the benefits of a member’s unpaid expertise.

Unproductive Meetings

It is my experience that meetings can take on a life (death?) of their own for one of three reasons, or a combination of all: 1. We don’t have enough information at hand on which to make a decision, or 2. We are afraid to make a decision, or 3. We just like to pontificate How many meetings have managers, board members and committee members sat through with their eyes rolling back in their heads, waking up only to check their watch every ten minutes? ALL OF US. The problem is, some of us don’t know we are the cause of those never-ending meetings because we don’t want to admit that we don’t know what we don’t know. Endless debate over meaningless minutia or non-agenda items doesn’t change that fact, so, get the facts you need prior to the meeting. This will help your board or committee make timely decisions. In addition, all meetings, Continued on page 20

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The Painful Death..

Continued from page 19

even committee meetings, should have an agenda. Speak only to those items on the agenda, those not on the agenda go under New Business at the next meeting. Period. Unproductive, long – and, well, stupid – meetings kill volunteerism. Unproductive, long and stupid NIGHT meetings kill it even faster.

The Fix!

The good news is volunteerism can be saved, resurrected and thrive with a few simple operational tools the board can adopt.

Adopt a Mission and Vision Statement. Adopting a Mission

Statement and a Vision Statement give the board (and community) focus on where they want to go and how they will get there.

Adopt Governing Policies. All boards should adopt a governing policy, or a method of standardized operation.

For example, adopting Roberts Rules

of Order prevents disorganized, long and unproductive meetings and gives boards a tried and true platform on which they can hold effective meetings. Adopting further policies or methods of operation delineating responsibilities and accountability will keep the board even more focused and organized.

Adopt Policies Governing Committee Operations. All boards should give their

committees a standardized guideline on how the committee is expected to conduct itself in relation to committee meetings, and on to interact with management the board and owners.

Conduct Annual Strategic Planning.

Boards, along with their committees should conduct annual strategic planning sessions and set goals and objectives for the coming year. Sounds cumbersome, but it is surprising how many more goals are achieved once there is established yearly accountability and review. Annual Strategic Planning conducted by an impartial third party can save boards

and committees hours of volunteer time over the course of a year by giving the entire volunteering entity (and staff) clear direction on which goals are important to achieve on behalf of the community.

Acknowledgement: Long and loud and public. At every turn, the board

must, must, must acknowledge its volunteers and their hours of hard work and service. In newsletters, in person, at meetings, on the website, it is the responsibility of the board, and in particular incumbent upon the President, to "spin the halos" of each and every one of those valued team members who work for the common goal of the betterment of the community. This continual acknowledgment shows a firm commitment on the part of the association to its volunteer staff, without whom everyone left would be doing a lot more work. Acknowledge those volunteers long, loud and publicly.

Want to Foster New Volunteers?

Provide outstanding, positive communication with all owners. Most board members are happy to serve their terms, but want to be able to turn the reins over to other qualified members when the time is right.

Another way to foster volunteerism is to continually publish positive communication with the membership as a whole. This means a monthly newsletter that is more than "Don’t park here!" and "Pick up after your dog!" because Good News Means Good Morale! There are several newsletter services out there that specialize in associations that can, for a very reasonable price, produce professional newsletters for your communities. Remember, where there is a communication vacuum, it will be filled with rumor and innuendo which grows exponentially at cocktail time. Continual positive communication from the association fosters volunteerism. People want to contribute to a positive, forward 20 |

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moving entity. Be and project that image – and they will come.

Why do we want volunteers for our communities? Not only because associations could not function without their volunteers, but because promoting and nurturing volunteerism encourages process participation, develops unity and community pride.

Not to mention it provides costeffective services to the community.

Maybe most importantly, it is a doorway to new board members.

Boards of directors must remember that volunteers are not employees, and cannot be treated as if they receive a paycheck for their hard work. Board must realize that volunteers, while giving to the community should be receiving something in return: A feeling that they are a welcomed and appreciated part of the process.

Indeed, that is the very essence and intent of a community association: To be governed by volunteers for the greater good of all.

Adamen Inc Š 2006 All rights reserved.

Julie Adamen is president of Adamen Inc., a consulting and placement firm specializing in the community management industry. Julie can be reached via email at julie@adamen-inc.com or through her website www.adamen-inc.com.

Kimberly Lilley, CMCA, CIRMS Berg Insurance Agency

What do you like best about being a CAI member?

I like the access to education and the advocacy that CAI provides on behalf of community associations.

CONNECT WITH GRIE • ISSUE TWO 2015

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The Benefits of Membership in Community Associations Institute (CAI)

By George Gallanes, CMCA

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s a member, your benefits start with the fact that Community Associations Institute is an international organization serving the needs of Community Associations around the world. Nationally CAI serves approximately 65 million residents, and has educational resources, legislative oversight, and professional standards for community associations. In California, our local chapters service over 45,000 community associations with over 9 million residents.

In my opinion, a major benefit for me as a Community Association Volunteer Leader (CAVL) is the ability to network regularly with other CAVLs, managers, business partners and staff.

At our monthly events we discuss the successes and challenges we all face daily in our communities. The benefits of membership in CAI are of equal value.

After living in my large association of over 2600 homes with my family for several years, I decided to get involved.

I ran for the board and was elected in February of 2000. As a member of the board of directors, I then joined 22 |

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CAI. After attending a few tradeshows, my association board took advantage of some of the educational programs and classes that defined and outlined our roles and fiduciary duties to our homeowners. The education we have received over the years has made our board very effective in addressing the homeowner’s needs. The current board in my association was elected in 2008 and is still seated today. I was so inspired by the education I had received through CAI I took some other classes on my own and received my CMCA certification in 2011.

One of the challenges we face in operating our community, is the ability to find qualified vendors to do the repairs and maintenance required. CAI has solved that problem for us. With our membership, we have access to many qualified contractors who work mainly for the community association industry.

Those contractors understand the bid process and the time it takes to get proposals accepted because of the legal statutes requiring noticed meetings, etc.

In my experience, they are qualified, licensed, bonded and insured, and understand the inner workings of our

industry.

Another benefit of membership is legislative oversight. CAI and the California Legislative Action Committee (CLAC) continually sponsor, monitor, advise, and lobby legislation that could positively or negatively affect the ability of our associations to govern themselves.

CAI and CLAC also sponsor an event, Legislative Day at the Capitol. I have attended this event for the last three years, where we have been educated on the bills coming before the Legislature, and as constituents meet with our various representatives to convey our positions. I have found this experience extremely rewarding, and it gives me a great feeling of accomplishment to be part of the process.

Another aspect of membership is the social events which are sponsored by the chapters. These events are a lot of fun. They allow me to spend quality time with my friends and family.

They also allow me to build strong partnerships with the people who share my same passion for our communities.

I have found my membership in CAI so valuable in the last few years, that I ran for and was elected to the board of directors of my local chapter.

My goal is to serve my chapter and to grow in an organization that has served me well.

George Gallanes, CMCA serves on the board of directors for the Sunnymead Ranch Planned Community Association and CAIGRIE.

Payment Plans: Getting Paid While Getting Leverage

By Shani Zakay, Esq.

P

ayment plan agreements play an instrumental part in an association’s struggle to minimize delinquencies. Payment plans are so important that the California legislature required boards to consider them in a meeting when a delinquent owner makes a request. Civil Code Section 5665 compels boards to meet with a delinquent owner in executive session within 45 days of a written request to discuss a payment plan, but often the circumstances surrounding the request make it disadvantageous for the board to entertain.

Consider the following: a repeat rule-violator has been delinquent for two years. The board retained a collection attorney to initiate legal

action, and litigation is already underway. The debt nears $5,000, not counting the $1,500 - $2,500 the board had to pay the attorney to get to this point.

At the 90th hour, the board receives a written request to meet and discuss a payment plan. The board must comply and the directors are unhappy.

• Why should they allow a payment plan after spending $2,000 in attorneys’ fees and costs?

• Why should they settle after spending over a year chasing the delinquent owner?

• How can they trust an owner who has proved to be a problem to not default on the payment plan?

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Payment Plans...

Continued from page 23

• How can they ensure that, if the owner defaults, they’re not back to square one—minus $2,000 in expenses and over a year wasted?

Those are not uncommon questions. Payment plans are only effective when done right. This article attempts to provide some answers and solutions.

We’ll start with the why. Why should boards ever entertain a longterm payment plan when they have a legal right to collect the money immediately in its entirety? The answer requires a deeper look into the efforts traditional collection methods demand.

The alternatives to a payment plan include legal action and foreclosure; both are effective collection tools that come at a cost. The average legal action (assuming no real opposition by the delinquent owner) will cost the association between $2,000 and $3,000 in attorneys’ fees and costs.

The cost of non-judicial foreclosure falls in the same range. Those costs are the responsibility of the delinquent owner, but collection is never guaranteed and those expenses may not be recovered. Next, a legal action, on average, takes six to nine months to conclude with a judgment.

Even then, the association can expect at least two to three months before assets are located and collected (if any exist). Non-judicial foreclosure, again, falls in the same range. Depending on whether the foreclosed property has any equity, foreclosure may or may not lead to actual recovery, however. Taking nothing away from the effectiveness of those methods, the board must be prepared to spend money and stay patient.

Payment plans require less patience and almost no monetary expense. The cost of drafting a good payment plan, even when utilizing an experienced attorney, is minimal, and can be incorporated into the settlement amount. Many management companies and 24 |

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collection firms charge a “payment plan fee” intended to cover that exact cost. Once the payment plan is executed, the association does not have to wait to see the money; the cash-flow is immediate. The $5,000 debt may not be paid right away, but at least parts of it will flow into the association’s bank account in a matter of days or weeks. Finally, and this is especially true regarding debtors who are current owners and

The cost of drafting a good payment plan, even when utilizing an experienced attorney, is minimal, and can be incorporated into the settlement amount. residents of the association, a board’s willingness to work with a delinquent owner is perceived positively by the membership and can go a long way in improving the popularity of the board members with their neighbors.

So how do we make sure we do it right?

Put it in writing.

Often when agreeing to a payment plan with a delinquent owner at a meeting, boards decide to, in the spirit of cooperation, forgo the formalities of a written agreement, and instead rely on the oral promises exchanged at the meeting, or the recorded minutes reflecting the agreement.

While a good spirit of cooperation is encouraged, forgoing the written agreement is a bad idea. As agreeable and understanding as the owner may seem at the meeting, if he or she ever defaults on the payment, a dispute will inevitably arise. The terms you thought were so clear will come into

question, and recollection of the details will be challenged. In these situations, even the minutes will be insufficient. The difference between a 3-day grace period and a 10-day grace period can be the difference between compliance and default, but without a written agreement addressing the issue specifically, a dispute over the grace period could end up in court.

The evidentiary issues created by the lack of a written memorialization of the parties’ agreement are well recognized by the courts. A party seeking to enforce a written agreement must do so within four years of the breach. A party seeking to enforce an oral agreement must do so within only two years of the breach, presumably to ensure that not too much time has passed to diminish the parties’ recollection of the agreement terms. This can be important if the association finds itself in a situation where legal action is required to enforce the payment plan agreement.

Demand Financial Information

The key in achieving a successful payment plan is leverage.

When agreeing to a payment plan, the association, no doubt, is compromising. To be enforceable, the agreement must also require the owner to make sacrifices. It must give the owner something to lose, to incentivize him or her to maintain compliance.

One way to gain leverage is by requiring the delinquent owner’s financial information as a condition to entering the payment plan.

Information regarding the delinquent owner’s employment and bank accounts is essential for multiple reasons. If spouses and adult-children are also involved, their information should also be demanded. Don’t be shy! Ask for the identity of the employers and the monthly income earned, and the bank account numbers and balances by the date of the payment plan.

The first reason we want

this information is to ensure the delinquent owner is entering an arrangement he or she can afford.

An owner with $300 in monthly disposable income should not enter a plan requiring him or her to pay $750 per month because it’s unlikely he or she will be able to comply. That agreement will surely fail. This reason should be disclosed to the owner, as an explanation for the association’s request.

The second, and probably more important, reason we want this information is to develop a record on the owner’s assets, so that if a breach occurs, we know where to find the money. Getting a judgment against a debtor is difficult enough; locating the debtor’s assets (employment, bank accounts, etc.) after the judgment was awarded is usually even harder. With the information being provided by the owner as a condition to entering the payment plan agreement, the association can save time and money locating the owner’s assets if the agreement is breached and the association is forced to resume collection efforts. Most owners understand this concept, and are thereby encouraged to maintain compliance with the payment plan. It creates leverage.

Some sophisticated debtors may resist, and the association can still enter the agreement without the information. However, if this requirement is included in the association’s collection policy as a necessary condition to every payment plan, the debtor will be hard-pressed not to comply, especially when facing aggressive collection efforts by the association otherwise.

Incorporate a Stipulated Judgment

Leverage is key. Another way to gain leverage is by requiring a stipulation for a judgment as part of the payment plan agreement. A stipulation for a judgment is a legal document, drafted on pleading paper, executed by both the association and

the delinquent debtor. By executing this document, the owner agrees to have a judgment entered against him or her if default on the payment plan occurs. If the association must enforce the payment plan agreement in court after default, it may simply submit to the court the stipulation for a judgment signed by the owner, and circumvent the usual legal requirements necessitating proof by the association that the money is owed. It means the association can get a judgment without having to prove its case for six to nine months.

The benefit in a stipulated judgment is twofold. First, if legal action becomes necessary, it will be less time-consuming and less expensive. Second, it projects the seriousness and the extent of the association’s wiliness to pursue potential defaults onto the delinquent owner. With a signed document where he or she agreed to have a judgment entered for the association, the owner will think more than twice before defaulting on the plan. He or she will be incentivized to comply. It creates leverage.

With a stipulated judgment and financial information on the debtor, defaulting on a payment plan with the association carries serious consequences for the owner, and that is exactly what we want.

Consider Probationary Periods

Another tool in the association’s arsenal is the probationary period.

Probationary periods are important when the association agrees, as part of the payment plan agreement, to waive some of the amount owed.

When dealing with a repeat offender, or an owner who has been delinquent for multiple years, but still demands that some fees or charges be waived, the collection policy should expressly require a probationary period. That probationary period can require a delinquent owner to remain current on his or her monthly dues for a specified period (one or two years) even after successfully completing the payment

plan. If the owner falls into arrears again during the probationary period, the money the association previously agreed to waive as part of the payment plan can be retroactively added back as a penalty.

By using a probationary period, the association not only creates an incentive to comply with the payment plan agreement, but also an incentive to remain current on the payment of monthly dues after the payment plan agreement is complete. The penalty in adding back the previously waived charges creates leverage.

Keep the Lien

Finally, no matter how short the plan is, or how small the debt is, the association should always require an assessment lien be recorded (or remain recorded) against the property for the entire duration of the payment plan. Most associations record a lien against a delinquent owner within three or four months of the delinquency. When an owner requests to enter a payment plan, the association probably already recorded a lien against that owner’s property.

The assessment lien is a powerful tool that creates strong security for the debt owed to the association. The benefits associated with liens can be addressed in another article. But the lien should stay recorded until the debt is paid in full.

In summary, the benefits of payment plans are indisputable, and boards should always consider an owner’s request to settle in that manner. When done wrong, payment plans can cause a disaster – but when done right, however, payment plans can prove to be the long-term solution to an association’s delinquency problems.

Shani Zakay is a partner at the firm of Silldorf & Levine and concentrates this practice on the representation of homeowners association.

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Greater Inland Empire Chapter Receives Recognition from CAI National Including the Coveted Excellence Award

On, May 1, 2015 the Community Associations Institute Greater Inland Empire Chapter (CAI-GRIE) received five awards at the 2015 CAI Annual Conference & Exposition in Las Vegas. It received a “Leadership” award with the program, “Synergistic Decision-Making with Effective Leadership,” produced by the Education Committee chaired by Ms. Charlie Magnan; an award in the Chapter Management & Development category with “Vision Clarification, Communications and Coordination” put into effect by the chapter board of directors led by President Kimberly Lilley; a “Membership” award for the “Business Partner Mentoring Program” developed by the Business Partner Committee chaired by Phil Hakopian and Valerie Reyes; “Best Net Retention” for a large chapter at 93% thanks to the Membership Committee chaired by Mike Rey; and as a highlight, the overall “Excellence Award” which is awarded for scoring 80% or more in all five achievement award categories.

“It’s an excellent example of what we can achieve when we all work together as a leadership team,” says Chapter Executive Director DJ Conlon. “It took a lot of time, energy and creative thinking to bring us to this amazing

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result, and I know that everyone involved feels that their hard work paid off.”

Community Associations Institute (CAI National) is an organization that has participants from all over the world and is currently comprised of more than 60 chapters that continue CAI National’s mission of providing education and advocacy for community associations. “Considering the size of the organization [CAI] and the fact that we are only one chapter among many, I was deeply honored by the level of recognition that the national organization chose to give to us this year,” says Kimberly Lilley, the Chapter President for 2014. “We had a synergistic year where the leadership team all strove inerrantly toward the vision we created for ourselves. That feeling of knowing we had a ‘greater good’ in mind and that we were all headed there together kept us motivated and excited about where we were going.”

The CAI Annual Conference & Exposition also provided continuing education for community association homeowners, managers and business partners, as well as training for President-Elects from each chapter.

Executive Directors also had a chance to get together and share insights while providing training for newer Chapter Executive Directors.

The Greater Inland Empire Chapter is one of eight California chapters of Community Associations Institute (CAI). The chapter’s mission is advancing the community association industry through positive image, professionalism, advocacy, education and networking.

Incorporated in 1990, CAI-GRIE is a not-for-profit organization run by a volunteer board of directors to positively enhance all aspects of community association living in the Greater Inland Empire.

CAI-CLAC Returns to Sacramento for Legislative Day 2015

BY ROBERT RIDDICK, CMCA

A

s in years past, the anticipation of meeting our elected representatives in Sacramento as part of our 22nd Annual Legislative Day was already high by the time our community association homeowners, association managers, industry business partners and other vested stakeholders arrived in Sacramento over the weekend of April 11, 2015. And as the weekend progressed, we were not disappointed.

It promised to be nothing less than a busy, bill-intensive, education-driven, and informative next two days, starting with our CLAC delegates, liaisons, and CEDs meeting to discuss the various bills that could have an impact (positive or negative) on the community association industry here in California.

Spending Sunday afternoon in-session, the CLAC group looked at, analyzed, discussed, and put forth their recommendations on what our (CLAC) position taken would be on all of the identified bills that particularly addressed the CID industry. Those included our recommendations for a “neutral” position because they carried a minimum impact on our industry or direct interests. However, the majority included those pending bills we recommended either “supporting,” “opposing,” or “seeking amendment on.” Three bills were singled-out as those we would carry “across the street” to discuss face-to-face with our elected representatives.

One of these three bills we “support” deals with artificial turf and the impact of allowing it to be installed as an alternative to more traditional landscaping materials, i.e., natural grass, shrubbery and other various natural components. The bill, SB 47,

by Sen. Jerry Hill (D-13), requires that a comprehensive study of synthetic turf be commissioned to determine the adverse health effects posed by the acceptance and installation, especially when installed within residential

communities. Our support of this bill is driven primarily because two prior studies failed to delve into various health risks, and before implementing any statutory endorsement of these products, it’s imperative that the true risks be ascertained. It’s also important to note that we (CLAC) totally support alternative landscaping in times of drought, including organic and nonorganic materials, provided that they pose no public health risks.

A second bill identified as being

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CAI-CLAC Returns to Sacramento Continued from page 27

important enough to discuss with our representatives was AB 1335, by Assemblyman Toni Atkins (D-78) (who is the current Speaker of the California House) and which calls for the imposing of a $75.00 levy (fee) on recorded documents.

This bill, in its current form, unfortunately creates harmful unintended consequences to homeowners and associations, including that association delinquent assessment liens and foreclosures require several documents to be recorded.

With passage of this bill, each document recorded will have an additional $75 fee. That’s each document! Also, the costs and fees to record these are the debt of the party being liened or foreclosed on, only adding additional debt when they can least afford it. Our position taken on this bill is to “seek amendment” that will exclude all recordings by common interest developments (our community associations). That this particular bill is being championed by the Speaker of the House means we need everyone with a stake in this industry to support our efforts to amend the bill. Please contact Speaker Atkins and let him hear your voice on this bill. For all of its good intentions, the “unintended consequences” it brings with it are not in the best interest of any of us within the CID industry.

The third bill we felt needed to be brought directly to the attention of our representatives was SB 655, by Senator Holly Mitchell (D-30), which defines mold as an unsanitary and substandard building conditions. This is a complicated bill to implement, and one that is unclear how it will be managed. For instance, community associations have very limited ability to enter and observe mold in owner’s homes.

There’s also the question of who would be responsible for a violation. And finally, the question of who would pay any fine or be sent to jail for up to a year is not clearly defined within the current scope of this bill. Bottom-line, there are so many parts of this bill’s implementation and management which are unanswered, that CLAC took a strong “oppose” position on it.

Sunday’s activities were capped-off by our alwayspopular Dine With the Delegates event, which gave everyone there an opportunity to interact with each other, delegates, homeowners, business-partners, special guests, and of course, our own CAI-CLAC advocate, Mr. Skip Daum. The setting invited much conversation and an exceptional opportunity to network with each other, and created new relationships and alliances among all those in attendance.

Monday morning, as always, was dedicated to billpresentations, to prepare for carrying those bills identified as important enough to discuss with our representatives across the street to the State Capitol. It was also the setting for our annual recognition of those chapters and individuals who achieved significant accomplishments with their demonstrated support of the efforts of CLAC. In that regard, our Chapter, the mighty GRIE, was recognized as 28 |

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having raised the largest funds earmarked for CLAC (an amazing 141% of our annual goal). Our Chapter was also recognized for having one of the top three Management companies, as demonstrated by their accomplishments to support CLAC, and the communities they manage. That honor went to our very own Avalon Management Group.

This year’s 22nd Annual Legislative Day proved once again to be that opportune time for every attendee to “raise their collective voices” in front of their elected State representatives, having been educated on the issues, prepared to speak on their behalf, and proud to be the voices that carried the message of the other 9,000,000 fellow-residents of over 50,000 community associations that exist in our proud State of California. For many of those who “walked the walk” on Monday, the reaction was that their words did not fall on deaf ears, and instead were met with remarkable acceptance and enthusiasm from both staff and the actual elected representatives. All “good news”.

We’ll see everyone again next year when we all get to do this one more time.

Robert is the current President of the Sunnymead Ranch PCA, and past GRIE-Chapter President as well. He is also serving his fifth year on the CAI National CAVC committee, and is a past CAI National Board of Trustees member. He ended his sixth year as a GRIE-Chapter Board member at the end of 2014, and will continue to serve as the CAI-GRIE CLAC Liaison.

Phil Ornelas NPG – Nelson Paving

What do you like best about being a CAI member?

Getting to see people we work with while at the events.

What do you think are the best benefits of being a CAI member?

It is of great benefit to our business as far as business goes … new and old.

Tips for Buck-a-Door Support Outreach

BY ROBERT DENICHILO, ESQ.

C

ommunity Associations Institute (CAI) is a great organization, full of opportunities for education and networking. While the various courses and educational lunches are great, they generally only benefit those who actually attend the session. There is, however, one CAI activity that benefits all of the millions of people who own a home in a community association. Throughout each legislative year, Community Associations Institute’s California Legislative Action Committee (CLAC) continually works to educate and lobby legislators with regard to legislation impacting California’s community associations.

Over the years, CLAC has been responsible for impacting legislation in significant ways to either benefit community associations and their members, or minimize any negative impact of potentially burdensome legislation on community associations.

In order to continue our efforts each year, CLAC relies on the support of the millions of people who own homes in community associations. Through the Buck-a-Door donation program, community associations are able to contribute one dollar per residence per year. These continued contributions are critical to allowing CLAC to continue to work for California’s communities.

Managers have often expressed that fundraising can be a challenge.

To help those managers, we asked others who have been successful in the past in raising the issue how they went about the process. Based on the experiences managers have shared with us, boards are receptive to the request when it is presented. In fact, as Wendy Bucknum, Vice President of Business Development for Associa – PCM points out, “sharing updates on pending legislation as well as information on

CLAC’s accomplishments, not only helps to point out the benefits of supporting CLAC, but makes you a leader and a professional boards will rely on.”

When asked how to present the opportunity to contribute to CLAC, “it can be as simple as sharing CLAC’s accomplishments with the board, and describing some pending legislation that Continued on page 30

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Tips for Buck-A-Door Continued from page 29

CLAC is addressing,” according to Corky Burnett of Gold Coast Enterprises. Typically this is introduced during the budgeting process. Explaining that all CLAC is asking for is “one dollar per year per unit can help the board realize that they can afford the donation,” says Jamie Hackwith, PCAM. “The typical questions that boards may raise revolve around any political motivation CLAC may have, or whether CLAC is a PAC (Political Action Committee),” says Burnett.

Letting boards know that CLAC is not support politicians typically resolves this concern. If asked, managers can explain that CLAC works to educate legislators about homeowners association living and governance and how pending legislation will impact community associations and those living in them.

“Once that is explained, boards are generally receptive to supporting CLAC,” says Burnett.

As to how to address the issue of making a donation on an annual basis and to continue supporting CLAC, Bucknum and Hackwith suggest sharing information from CLAC on a regular basis, and asking the board to approve a policy resolution so that Buck-a-Door contribution to CLAC becomes an item in the annual budget.

CLAC has a number of resources that easily allow members to stay informed and help you educate your board.

First and foremost, sign up to receive the CLAC-TRAC email newsletters and share with your board members. The following resources are also available to help create awareness of CAI-CLAC’s efforts under the “Donate” tab on CLAC’s website: • What is CLAC? flyer – includes information about CLAC, its mission and goals.

• 12 Reasons to Donate to CLAC– contains information on what CLAC is and what it does.

• Recent CLAC Accomplishments – describes recent activities and successes CLAC has had in impacting legislation for the benefit of California’s community associations.

• Buck-a-Door Pledge Form – contains information on how to support CLAC via the Buck a Door program.

• Board Resolution for CLAC Contribution – a resolution for boards to adopt to support CLAC through an annual contribution.

If you have any issues downloading these documents, simply send an email to office@CAICLAC.com and request any or all of the documents be emailed to you.

Reprinted from OC View, Copyright by CAI-Orange County Chapter, all rights reserved.

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