In this Issue: Spring Has Sprung . . . 3 Spring Property Walks. . . . . . . . . . . . . . . . . . . . . . .6 Spring Cleaning: 5 Spaces You May Have Forgotten . . . . . . . . . . . 10 March/April 2016
Volume 34 • Issue 2
I am the King (or Queen) of My Castle! ...or am I?. . . . . . . . . . . . . . . . . . . . . . 12 The Grey Line Between Associations and Homeowners. . . . . . . . 16
Spring Cleaning Walk Throughs and Association Responsibility
Meet Our NEW Account Executive!. . . . . . . . . . 20 Ask the Attorney. . . . 24 And More!
Online Magazine Available!
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Spring Has Sprung Spring into action
By Joel Starks, CMCA, Sperlonga Data & Analytics
A
fter a long winter, it’s always good to visit the garage. It is there you find the additions of the winter season. You accumulate trinkets, gadgets and gizmos over holidays, birthdays and because “I need it” or “can’t find the one I thought I had.”
Spring is short lived as we slide into summer, so get those grills ready and turn the crock pots off. Get outside to enjoy ball games, beach days and more, but be sure to join us in the coming months at many of our local CAI events.
Organizing is key to most lives today and it all starts with the garage. Why the garage, you ask? Because it is mostly out of sight and out of mind. In my house we have only one garage stall, and it has seen its share of boxes, dog kennels, ice fishing gear, tools and pileup. To say it has gotten to be a mess would be an understatement.
• CAI-MN 2016 Charitable Outreach Event – April 21st in Minneapolis • Golf Tournament 2016 (10th Anniversary) – August 8, same venue as last year!
In this issue, you will read about the messy cleanups required after a snowy winter. Sand, salt and snow removal affects sod and plants. Ice dam issues lead to maintenance issues and so on. It seems when the brown grass reappears, we find more things to fix, seed and replace. But, never fear; green grass is near. The warmth of the sun’s rays and the longer days help us all feel a little better.
Take a peek at what’s coming up:
Well, I am going to get started organizing the garage and making my family proud. Or at least until next winter when the pileup begins again. Just remember to stay calm, make a plan and accomplish one thing each day. Spring will bring rain and the green grass. And, of course, the vitamin D we all need to keep the smiles coming as we push through the piles of snow, dirt and stuff. Hope to see you soon!
Spring brings a personnel change as well, and we are excited at the new addition of Bryan Mowry to our team at CAI Minnesota. Bryan replaces Monte as our executive director and brings great experience, energy and knowledge to our team. If you see him at an event, introduce yourself and tell him what you do. Welcome, Bryan.
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Partners 2016 Annual Partners
Platinum
Columbus Exteriors, Inc. Parsons Construction, Inc. PCS Residential Sela Roofing & Remodeling Xtreme Exteriors N.A., Inc.
Gold
Benson, Kerrane, Storz & Nelson CertaPro Painters Community Advantage FirstService Residential Gassen Company, Inc. Hellmuth & Johnson, PLLC
Silver
All Ways Drains American Family Insurance – Jeffrey Mayhew Agency, Inc. Asphalt Associates, Inc. Carlson & Associates, Ltd. Mutual of Omaha/CA Banc New Concepts Management Group, Inc. Omega Management Reserve Advisors TruSeal America, LLC
Bronze
24 Restore Allied Blacktop Company Allstar Construction & Maintenance, LLC American Building Contractors, Inc. Clean Response, Inc. Gates General Contractors, Inc. Michael P. Mullen, CPA, PLLC
Volunteers
Leadership
Committee Chairs
Board of Directors
Charitable Outreach Carla Gruenhagen cgruenhagen@gassen.com
President Joel R Starks, CMCA Phone: 952.500.1068 j.starks@sperlongadata.com
Communications Carin Garaghty CRosengren@kellerpm.com Community Association Volunteer Leaders (CAVL) Gene Sullivan gene@ncmgi.com Education Nigel Mendez nmendez@carlsonassoc.com Golf Tournament Kris Birch krisbirch@birchlawn.net Legislative Action (LAC) Randy Christensen randy@actmanagementinc.com Membership Paul Lawson paul.lawson@fsresidential.com Social Ben Brueshoff bbrueshoff@pcsrenew.com Tradeshow Michele Ramler mramler@cedarmanagement.com Tom Engblom TEngblom@cabanc.com Vision Awards Shaun Zavadsky, CMCA shaun.zavadsky@fsresidential.com
Vice-President JoAnn Borden, CMCA, AMS, PCAM Phone 763.746.1196 jborden@developcommunity.com Treasurer Halo Stafford, CMCA, AMS, PCAM Phone 952.944.2237 hstafford@pinnacleliving.com Secretary Nancy Polomis, Esq. Phone 952.941.4005 npolomis@hjlawfirm.com Directors Kris Birch Phone 651.481.9180 kris@wearebirch.com Matthew Drewes Phone 952.835.7000 mdrewes@tn-law.com Joseph Fadell Phone 952.392.9208 fadell.joseph@gmail.com Jared Lawrence Phone 612.251.7078 jaredlawrence@compassmanagement. com Crystal Pingel, CMCA, AMS, PCAM Phone 952.277.2700 crystal.pingel@fsresidential.com Michelle Stephans, RS Phone 651.783.5360 michelle@reserveadvisors.com Larry Teien Phone 952.888.8093 lteien@aol.com
Published by Community Associations Institute — Minnesota Chapter, copyright 2016. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Minnesota Community Living or CAI–Minnesota Chapter. The information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting, or other professional services by the CAI–Minnesota Chapter, or by Minnesota Community Living, or its authors. Articles, letters to the editor, and advertising may be sent to Bryan Mowry at bryanm@cai-mn.com, or at CAI–MN Chapter, 1000 Westgate Dr., Suite 252, St. Paul, MN 55114.
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Calendar Upcoming Events April 21 Charitable Outreach Event May 4 – 7 CAI National Conference, Orlando, FL June TBD CAI-MN Social Event – Baseball Outing July 14 CAI-MN Social Event – Boat Cruise August 8 Golf Tournament September 22 Vision Awards October 11 Manager Seminar October 15 CAI-MN Social Event – Oktoberfest November 3 - 4 CAI National Course: M-203 November 8 Manager Seminar December TBD CAI-MN Social Event – Holiday Party! January 12 Manager Seminar
Series
Index 6
Spring Property Walks
By Mary Felix, CMCA, AMS, PCAM, CIRMS, Cedar
Management Inc.
10
Spring Cleaning: 5 Spaces You May Have Forgotten
3
President’s Message — Spring Has Sprung By Joel Starks, CMCA, Sperlonga Data & Analytics
22 Carin’s Corner
By Kate-Madonna Hindes, Director of Marketing, Ewald
By Carin Garaghty, CMCA, Keller Property Management
Consulting
12
I am the King (or Queen) of My Castle! ...or am I?
24 Ask the Attorney
By Nigel H. Mendez, Esq., Carlson & Associates, ltd.
By Nancy T. Polomis, Esq., Hellmuth & Johnson, PLLC
Have Comments?
16
The Grey Line Between Associations and Homeowners
By Chuck Krumrie, CMCA, Urbanwood, Inc.
19
Vision Awards 2016
By CAI-MN
20
Meet Our NEW Account Executive!
By CAI-MN
28
CAI-MN Tradeshow Recap
By CAI-MN
Email your feedback on articles to suey@cai-mn.com for a chance to be featured in Minnesota Community Living!
Register for events online at www.cai-mn.com For more information regarding an event, call the office at 651.203.7250 or visit the www.CAI-MN.com.
Index of Advertisers Advanced Innovative Management. . . . . . . . . . . 21 All Ways Drains . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Allstar Contruction . . . . . . . . . . . . . . . . . . . . . . . . . 15 American Building Contractors . . . . . . . . . . . . . . 18 American Family Insurance – Jeffery Mayhew Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Aurora Asphalt & Concrete. . . . . . . . . . . . . . . . . . 3 BEI Exterior Maintenance . . . . . . . . . . . . . . . . . . 25 Benson, Kerrane, Storz & Nelson, P.C. . . . . . . . 27 Carlson & Associates, Ltd . . . . . . . . . . . . . . . . . . 23 CertaPro Painters . . . . . . . . . . . . . . . . . . . . . . . . . 20 Columbus Exteriors, Inc.. . . . . . . . . . . . . . . . . . . .30 Community Advantage . . . . . . . . . . . . . . . . . . . . 26 Construct-All Corporation. . . . . . . . . . . . . . . . . . 23 Final Coat Painting . . . . . . . . . . . . . . . . . . . . . . . . . 14 FirstService Residential . . . . . . . . . . . . . . . . . . . . 27 Gassen Companies . . . . . . . . . . . . . . . . . . . . . . . . . 11 Gopher State Sealcoat, Inc.. . . . . . . . . . . . . . . . . . 17
Hellmuth & Johnson, PLLC.. . . . . . . . . . . . . . . . . . 7 Jet-Black. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Michael P. Mullen, CPA, PLLC . . . . . . . . . . . . . . . . 17 Mutual of Omaha Bank. . . . . . . . . . . . . . . . . . . . . 23 New Concepts Management Group, Inc. . . . . . . 14 Omega Management, Inc. . . . . . . . . . . . . . . . . . . . 17 Parsons Construction, Inc.. . . . . . . . . . . . . . Outsert PCS Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Plehal Blacktopping . . . . . . . . . . . . . . . . . . . . . . . . 15 Reserve Advisors. . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Reserve Data Analysis . . . . . . . . . . . . . . . . . . . . . 23 Sara Lassila, CPA. . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Sela Roofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Strobel & Hanson, P.A. . . . . . . . . . . . . . . . . . . . . . . 15 TruSeal America, LLC. . . . . . . . . . . . . . . . . . . . . . . 8 Union Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Xtreme Exteriors . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 March | April 2016
5
Spring Property Walks By Mary Felix, CMCA, AMS, PCAM, CIRMS, Cedar Management Inc.
A
s the weather starts to warm up and the days get longer, looming larger than life are the inevitable annual inspections of our communities.
There are a few things you can count on in life and in the world of property management — Spring Walk Throughs are among them! Keeping focused on time management and efficiency, here are a few simple techniques that can be helpful in managing both the task at hand and the data acquired.
1. The Guest List
Choosing the appropriate guests is extremely important for a successful event. This is your “party” and it will be the main outline for what will happen at that property for the coming year, as well as assessing how the property fared over the winter months. The Property Manager should decide about who attends the inspection. It’s a good idea to keep the number of people to a minimum, as that will make the best use of everyone’s time. A few small groups: Lawn/ Snow vendor and your Landscape Chairperson, General Contractor or Handyman and the Architectural Chairperson and finally the property manager and a Board member or two. Each group should work independently to review their specific areas, create punch lists, etc. Although this can also be a prime time for the homeowners to step outside and chat, that can cause the group to lose focus and can also eat up a lot of time. If you can, diplomatically, get the owners to understand there is a task at hand, and although you would love to stay and visit, you must forge ahead!
2. Your Network
Over the past year or so, I can recall reading a couple of articles addressing the importance of relationships in business. Developing a good vendor network, i.e. having vendors you can trust to meet deadlines, maintain standards and above all “Do What They Say They Are Going To Do” is a major key to success, not only in your walk-throughs, but in every phase of maintaining and enhancing your communities. Trust is something money can’t buy and a longterm relationship can be far more beneficial than a short-term gain.
Continued on page 8
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Minnesota Communit y Living
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March | April 2016
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Continued from page 6
3. Have Reasonable Timelines
Require your vendors to communicate progress reports to you; if they have clear direction, there should not be a need for the property manager to micro-manage everything. Managers can then focus on the parts of the job that cannot be bid out such as violation management or committee work.
Understanding that this is the busiest time for your vendors, discuss reasonable timelines on when bids will be in, what work can start immediately, and what can wait until later in the season. End the walk-through with everyone understanding what is expected next from them. Managing expectations is your job. Don’t let an anxious Board, Committee member, or vendor make promises that can’t be kept. Set reasonable and achievable goals, keep everyone well informed and be flexible if the task allows. Patience is a virtue and sometimes slow and steady gets it done just as well!
We cannot always expect things to run smoothly and problem-free, but if you remember three simple things — invite the right people, develop strong relationships and oversee results — at the end of the day, you should be able to consider this party a success!
4.
Don’t Micro-manage, but Do Oversee
All those balls in the air have to eventually come down — and with proper planning, we should be able to stand under each one and catch it before it hits the ground.
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Spring Cleaning: 5 Spaces You May Have Forgotten By Kate Madonna Hindes, Director of Marketing, Ewald Consulting
T
he holiday season is behind us. Yet, there might be some holiday decorations, unwanted gifts or other items that are creating clutter in your house. This may be a good time to do some cleaning to freshen up and organize not only your home, but your yard as well. You might have a detailed spring cleaning list that you always stick by. However, there are a few spots that people forget to clean that may be beneficial to put on your spring cleaning list.
1. Laptop It’s easy to remember to clean the exterior of your laptop. However, many forget to clean the interior of their laptop such as files, documents, downloads, and more. Take the time to carefully delete old documents that are no longer in use. Spring is a great time to organize files and create better systems for saving and deleting!
3. Medicine cabinet Now is the perfect time to go through your medicine cabinet and dispose of empty medicine bottles. Check to see if any of your medications are expired. The safest way to dispose of old medicines is to follow the FDA guidelines below: Disposal in Household Trash If no medicine take-back programs or DEAauthorized collectors are available in your area, you can also follow these simple steps to dispose of most medicines in the household trash: 1. Mix medicines (do not crush tablets or capsules) with an unpalatable substance such as dirt, kitty litter, or used coffee grounds; 2. Place the mixture in a container such as a sealed plastic bag;
2. Kitchen/Bathroom cabinets Ready to declutter your cleaning supplies? If you have products with chemicals, you can safely dispose of these bottles at your city’s hazardous waste site. For non-toxic cleaning options, many industry professionals swear by white vinegar. (www.frugalgranola.com) Here’s a great recipe for an all-purpose cleaner: Simple 3-in-1 Household Cleaner Spray bottle 1 cup white vinegar 2 cups water 1 Tbsp dish soap (optional) 30 drops essential oil Combine everything in a spray bottle. Make a pretty label or write on the bottle to remember what it is. Shake before using.
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Minnesota Communit y Living
3. Throw the container in your household trash; 4. Scratch out all personal information on the prescription label of your empty pill bottle or empty medicine packaging to make it unreadable, and then dispose of the container. (FDA.gov/ForConsumers/ConsumerUpdates/ ucm101653.htm)
The next National Prescription Take Back Day is scheduled for April 30. Local law enforcment agencies are common collection points.
4. Garage Door
5. Front Door
When’s the last time you cleaned your garage door? According to many individuals, the answer is, “you can clean your garage door?!” The garage door can be easily forgotten. It may not occur how many storms your garage door has been through and how much dirt it has consumed from them. Take some time to wash and dry your garage door. You can use a power-spray method or a simple scrub down.
Just like the garage door, it may not occur to you how much dirt the front door has accumulated from all the seasons over the past year. Take some time to clean your front door by using a few products. A magic eraser will help get marks off the door, while a spray (like the one above) works well for gentle or deeper cleaning. This may give you the opportunity to examine for any damages on your door to see if it needs replacing. If it does need to be replaced, make sure to check your association documents as approval may be needed. There’s no feeling like getting ready for summer barbeques or get-togethers. Here’s to a beautiful spring season!
I am the King (or Queen) of My Castle! ...or am I? By Nancy T. Polomis, Esq., Hellmuth & Johnson, PLLC
O
ne of the reasons many people choose to live in a community association is the aesthetic appeal — home styles are complementary, with similar features, perhaps similar colors and/or layouts. In order to maintain that aesthetic uniformity, the association must be involved in any planned changes to a home’s exterior or to landscaping or yard areas. Occasionally, when I send a homeowner a letter advising him that a recent change made to his home was not approved by the association, I receive an angry retort, with the homeowner asserting, “It’s my home and I’ll do what I want! I am the king of my castle — you can’t tell me what to do!” I then point out that, indeed, the Association can tell him what he can and cannot do — and that such regulation is part of community living. While that should not come as a surprise to homeowners, it sometimes does.
Limitations on Changes to the Exterior of a Home Most, but not all, declarations of covenants include some provision requiring homeowners to obtain some level of approval for changes to the exterior of their home or a home’s landscaping or yard area. In many cases, that approval is granted by the Board of Directors. In some associations, the board establishes an Architectural Control Committee (or Architectural Review Committee, “ACC”), which is authorized by the board to review applications for approval of such proposed changes. Some homeowners, however, believe such approval processes apply only to “big”
changes like building an addition—not planting flowers or installing awnings, security lighting or storm doors. In most cases, the homeowner is simply wrong. In most cases, any change to the exterior of a home (and sometimes, changes to the interior that are visible from the exterior) requires approval by the Board or ACC. ACC/Board approval for changes to landscaping is also often required in townhome communities and sometimes in traditional single family home communities. A failure to obtain ACC approval in advance of making such changes may prove costly for the ill-advised homeowner. The homeowner may be fined and may be required to restore the property to its prior condition. While the homeowner has the bulk of the responsibility when the homeowner wants to make a change, the Board/ ACC bears some responsibility as well. The Board/ACC must employ the same evaluation for applications for similar improvements, and must be consistent in its approval/denial. Whether one homeowner is “easier to work with” than another is immaterial when the Board/ACC is considering each owner’s application for approval for installation of a fence, for example. The aesthetics and design are legitimate factors to consider, but personalities are not. It is also important for the association to address unapproved changes immediately upon noticing them. Many associations’ declarations provide that any alteration in place for a stated period of time (often 90-180 days) without objection is deemed approved, even if the owner never sought approval in the first place. If a homeowner makes an unapproved change, the association may, subject to the terms of its governing documents, Continued on page 14
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Continued from page 12 impose fines for the violation of the governing documents (failure to obtain prior architectural approval) and may, if necessary, take steps necessary to return the property to its original condition and assess the related costs to the violating homeowner. Associations should consult their legal counsel before taking any action to remove alterations or restore the property to its original condition. Of course, an association can opt to pre-approve certain changes via its rules or other governing documents, or it can establish certain changes that do not require pre-approval. For instance, the Board could establish a policy (or rule) stating what landscaping changes can be made without seeking specific approval. The Board could also, for example, preapprove certain styles of storm doors. If an owner wants to replace her storm door (or install a new one), she would not need to seek ACC approval so long as she chose one of the pre-approved styles. If she chose a different style, however, she would need to seek ACC approval prior to installing the door.
Accommodations for Disabilities Modifications to the exterior of a home or building to provide easier access for a disabled person are a special category. A townhome association cannot deny a homeowner’s request to install a ramp, for example, simply because “it’s ugly” or “no one else has one.” The association must make reasonable accommodations in response to the disabled person’s request for such accommodation. (The association is generally under no obligation to offer an accommodation where none has been requested.) The association could, for example, require that a ramp be screened with landscaping, be maintained by the homeowner (even if located on common areas), and removed when it is no longer needed or when the current disabled resident leaves the home. The cost to implement the accommodation can be a factor in the association’s decision. For example, an association may be entitled 14
Minnesota Communit y Living
to deny a resident’s request to install an elevator as an accommodation for the resident’s disability, because installing an elevator at association expense would impose a significant financial hardship on the association. Associations should consult their legal counsel before taking any action in response to a request for accommodation. Denying a reasonable request could constitute a violation of the Fair Housing Act, which could subject the association to civil penalties and possible litigation.
The Approval Process Most associations have information in the association’s rules as to how an owner can seek approval for a proposed change. In most cases, the owner completes a form requesting approval of the change, and submits that form to the Board/ACC. In some cases, additional documentation (plans and specs, description of materials, etc.) may be required. Further, some associations require that an owner seeking to make certain changes obtain the approval of neighbors whose view or use of their own properties may be affected by the change. If in doubt, an owner should ask the Board or management agent what needs to be done to request approval of a proposed change. Associations can avoid problems by including reminders of the approval requirement on websites and newsletters — especially in spring and summer, when many changes take place. Abiding by architectural control policies and practices helps ensure that an association can maintain the aesthetic appeal that attracted many owners to the community in the first place. Failing to abide by those policies and practices — or failing to equitably enforce them — can lead to changes in the community’s appearance that adversely impact the value of homes or the all-important “curb appeal.” While a homeowner may believe himself to be king of his castle, his reign is nonetheless subject to the rules of his kingdom. Even the king is not above the “laws of the kingdom.”
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The Grey Line Between Associations and Homeowners By Chuck Krumrie, CMCA, Urbanwood, Inc.
S
an Jose, California — Townhouse owner installs solar panels on his roof. He notes other units with panels and obtains approval from the gas and electric utilities. All fine and good; except that his homeowners association wasn’t consulted. Thus, the association says: “Sorry Mr. Homeowner, you have to take them down, pay for the roof damage and pay a fine.” I’m not an attorney (much less a California attorney), so I can’t speak to the particulars of this story. However, even I can see the breach of common sense here. Why didn’t you check with the association? Okay, this example was obvious because a roof was involved. Do you really need to clear your carpeting and living room paint choices with the association? Not unless your association is way beyond typical. How about plumbing work? Well, if it involves someone’s home other than yours, quite possibly. How about remodeling that involves relocating walls? Depends on which walls and what your association says about them. You can see the big fat gray line here. I always say that it’s better to ask a silly question than to make a silly assumption. The old real estate sales maxim “if it’s inside, it’s yours—if it’s outside, it’s the association’s” is correct in a very general sense. (In a very general sense, a defining characteristic of mammals is live birth. Then there is the platypus.) As general maxims go, it’s fair to say that you can do what you want in your home so long as it doesn’t interfere with other people’s homes. And lest you think this to be the definitive statement, allow me to muddy the water. What about loud(er) music, smoking or cooking odors? Running parallel to who is entitled to do what is the distinction of who takes care of what. “The association takes care of it, right?” If I had a dime for every time I’ve been asked that question… “It” may be outside the boundaries of the unit but it may be what is known as a limited commons element. Most governing documents distinguish between UNIT (yours) and COMMONS (association) property. Limited commons property is the association’s to maintain, repair and replace. However as the modifier Limited suggests, the property (aka element) serves less than all units. Less than all can mean one, as in your patio. The cost for maintenance, repair or replacement of limited commons property can Continued on page 18
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Minnesota Communit y Living
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Continued from page 16 be billed back to the unit(s) which it serves. So yes, the association takes care of it — but you may be paying for it. Indeed, where is the dividing line between what is yours and what is the association’s? Again, the gray line. I always encourage Common Interest Community members to be reasonably familiar with their governing documents. These are the Declaration, the Bylaws, the Articles of Incorporation and the Operating Policy (aka Rules & Regulations). Yes, the reading is about as exciting as your insurance policy, but important material is often enough unexciting. The Declaration will give you the definition and boundaries of your unit. It will also tell you what the association is responsible for by defining unit vs. commons. The Bylaws will describe the functions of the association. This entails meetings, election of Board members, payment of dues and so forth.
If you have a question, concern or project that is more involved than a two-minute phone conversation, you’re best off to put it in writing. With questions and concerns, please always articulate a proposed resolution. Again, if I had a dime for every time someone brought an issue to my attention and closed with: “Something’s got to be done!” With project inquiries, it’s never bad form to write the Board of Directors and always fine to send it through management. Please be as specific as possible about what you want to do (and why and where if the “what” doesn’t spell this out). Indicate how you intend to undertake this and who will be doing it. Contractor specifications, proposals and drawings are always welcome if not required. The association may well have restrictions or requirements even if the project appears to be taking place only within your unit. Don’t be the guy in San Jose.
If you find this reading dense and confusing, join the club. These are legal documents, not the Reader’s Digest. They are intended to be detailed and contain a high level of precision. Thus if you don’t have a law degree or do not work in the industry, they almost unfailingly will be abstruse. So here’s another piece of advice: don’t just proceed based on what you read. There’s a colloquial phrase that describes relying solely on one’s ability to interpret legalese. It’s called “Jail House Law.” Acting on the basis only of what you read takes no account of relevant external sources. Court precedent is perhaps the best example. Certainly, be informed of your governing documents. But do inquire of a knowledgeable professional as well. I admit my bias when stating that your default should be to ask your manager. But any attorney practicing in the industry can help as well.
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Save the Date! CAI-MN 2016 Vision Awards International Market Square
2016t Why should you be involved? Nominating someone for an award is one of the highest compliments you can give an employee, partner or customer. Help us raise up our industry professionals, give back to the people that you work with each and every day.
Join Us! September 22, 2016 Deadline to nominate is August 5, 2016. Recognize those outstanding in the community association business! Nominate someone—or an association—for a Vision Award today.
Submit Your Nominations Today! www.cai-mn.com/nominate
Community Management Community Management is part art, part science — and part professional experience. Three Vision Awards recognize community management personnel: The Community Management Professional Award recognizes those professionals who, through their excellence, enable the community managers to do their jobs even better! Nominees for these awards may include any community management professional other than community managers. Recognition is given to a community management professional who displays integrity; reliability; commitment to the industry; loyalty to consumer clients and the ability to interact well with board members, managers, service providers and other industry professionals. Promotion of ethical conduct and competence are included as part of the qualifications for this award. Community Managers, of course, are those magicians who keep everyone happy: owners, Board members, vendors... everyone. Time and again, they share their experience and expertise with their associations, helping them operate effectively and efficiently.
The Excellence in Service Award recognizes a community manager who displays integrity; reliability; commitment to the industry; loyalty to consumer clients; and the ability to interact well with board members, managers, service providers and other industry professionals. Promotion of ethical conduct and competence are included as part of the qualifications for this award. The Financial Impact Award recognizes a community manager who has positively impacted a community in a significant manner from a financial standpoint. A nominee for this award might, for example, have been instrumental in helping an association complete a capital improvement project on (or under) budget, or may have helped an association work through the complexities of a major insurance loss. The nominee may simply have recognized areas in which an association could realize savings, helping the association survive a budget crisis or weather an unforeseen but necessary expenditure without “breaking the bank.”
March | April 2016
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Meet Our NEW Account Executive! By CAI-MN
W
e are ecstatic to introduce our new account executive Bryan Mowry. As a graduate of the University of Wisconsin-Madison with a degree in political science, we are glad he made his way to the land of 10,000 lakes. Regardless of where he is, Bryan is a pro in nonprofit management with extensive experience working with multiple associations, including serving as the Executive Director of the Wisconsin Restaurant Association, and the Director of Administration at EDI. It’s worth mentioning that he also has impeccable taste in movies, citing the film The Right Stuff as his favorite
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flick. We agree, Bryan, astronauts rock. When we asked him what his biggest personal accomplishment was he said “completing IronMan Wisconsin.” One of the toughest obstacle courses to date, he values a proper challenge in and out of the office. You may be wondering how he achieved such a grueling task; well, he was jamming to his favorite song the entire time (Enter Sandman by Metallica). No matter his interests, Bryan exemplifies the passion and expertise we look for in our Account Executive. We are glad to have him on our team, and our side of the Mississippi.
Carin’s Corner By Carin Garaghty, CMCA, Keller Property Management
I
t could be my inner child that loves fun and free stuff, or a practical side that knows a useful thing and will take and give away as many as I can, or the possibility of winning a gift basket, a TV, a dice game, Hammerschlagen, a gift certificate or a bottle of carpet cleaner — these are just a few of reasons I enjoy the CAI-MN Annual Trade Show. (Be warned, if there’s a chance of winning something, I’ll try my hardest to take everyone else down. Hard. I even try to cream the competition at baby shower games, I like winning this much. I’ll grind nice ladies into the ground for a gift bag.) It is a wonderful thing when I get to do all of these while meeting and greeting people that I currently work with and with whom I might like to work in the future. The Trade Show is an opportunity to help me forge a most-thankful and trusted relationship between property manager and business partner. It is a blessing when we find a craftsman we can trust and rely on. The biggest problem for my coworkers and I was trying to talk with all of the vendors between educational sessions. Putting a face to a name and to a voice over the phone is an invaluable
thing. It makes me wish there was time for every good vendor to meet all of my board members. When we all trust someone, maybe next time we won’t need to “get three bids” but instead have the board members say, “Just call Company XYZ and have them do the needed work.” That is a big part of the reason I love going to the CAI-MN Trade Show each year. It is a mixture of education, fun, interaction with CIC comrades, lovely food and drink service, and a large stack of business cards collected at the event. (I look forward to your emails in the coming weeks since I dropped a business card to win your best prize!) Congratulations to the CAI-MN Trade Show Committee for an excellent day last month. I happily received a bottle of wine early in the day, so by the end of the event, my little blue bag felt like a trunk full of luggage. Dumping it out and sorting through stuff, I felt like a kid digging through my Halloween loot. Thank you to everyone who planned and participated in this year’s event.
This is one way to toss rings into a basket for prizes!
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Call for MCL Articles Thanks for reading this issue of Minnesota Community Living. The CAI-MN Communications Committee of property managers, attorneys and business partners want to make this publication the best it can be, and our goal is to give you something to read that’s useful, interesting and timely. Everyone in our line of work knows how valuable it is to network, forge relationships and build community. Dealing with and accepting the challenges of the job comes with tremendous disappointments and rewarding outcomes, sometimes in the same day, despite how hard we might strive. That’s why I’d like to invite you all to share your experiences. Share your resources. Look at the following list of story topics and see if you know someone who can contribute to the magazine. Nobody has to be a professional writer, as we can help a submission before it becomes the final product. These are fairly general categories. My first call for input is on your membership to CAI:
When and why did you join? What did you get out of it? Upcoming Topics: Meet our Members • Member profiles • Who belongs to CAI? • The PCAM edition Make the most of your membership (PMs, CAVL, BPs) • Social events • Educational events • Committee – CAI Budgeting • What do you need to know? • Resources, tools, tips • Political signs Dealing with difficult/touchy problems • Hoarding • Handling mental illness Success Stories • Problem solved • Achievements
Tom Engblom CMCA, AMS, PCAM VP, Regional Account Executive 312-209-2623 tom.engblom@mutualofomahabank.com mutualofomahabank.com
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March | April 2016
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Ask the Attorney By Nigel Mendez, Esq., Carlson & Associates, Ltd.
This column is comprised of questions that have been posed to me by homeowners, property managers and related professionals regarding legal issues that they have encountered with respect to their associations. Discussion of these questions, as well as prior questions, can be found on the CAI-MN LinkedIn page: www.linkedin.com/groups?gid=1769135
Q:
I live in an association that is supposed to be for seniors, but a family with children recently moved in. Is that allowed?
A:
As most of my answers seems to start, maybe. The Fair Housing Act (FHA) prohibits discrimination in the rental and sale of housing on the basis of, among other things, familial status and age. However, there is an exception if the association is being run as senior housing, or a 55+ association. The exception is detailed in the Housing for Older Persons Act (HOPA). HOPA allows for associations to legally discriminate based on age, provided that the association follows the strict guidelines imposed by HOPA. These guidelines govern the marketing of the units in an association, who may reside in a unit, and how often the association must verify that the age requirements are being met.
What age limits can you set? The minimal standard for a HOPA compliant association is that at least 80 percent of the units must be occupied1 by one person who is 55 years of age or older. By default, the other 20 percent of the units do not have any age restrictions. This is commonly referred to as an “80/20 association,” and it can lead to many misunderstandings. Often a resident who is over the age of 55 believes that everyone in the association must be over 55 years of age. That is usually incorrect. Most of the HOPA associations that I have worked with are the “standard” 80/20 associations. It is acceptable to have 20 percent of the units occupied by individuals, none of whom are 55 or older. In addition, the restriction for the other 80 percent of the units is not that everyone residing therein is over the age of 55, but just that one resident is at least 55. The remaining occupants can be any age at all. However, not all is lost for associations that wish to limit occupancy to the senior crowd. While the 80/20 setup is the default floor, associations are able to impose stricter requirements. For example, an association could: (1) require that 80 percent of the units have an occupant that is at least 65 years old; (2) set the percentage of units that must meet the age requirement to higher than 80 percent, or (3) even set a minimum age of all occupants.
Must show intent to be age restricted A large part of complying with the HOPA guidelines deals with how you present your association to the public. You must describe the association as “an age 55+ community,” “senior housing,” or a “retirement community.” The HOPA guidelines discourage use of the term “adult” as in “adult living” or “adult housing.” The declaration for your association should state clearly on the first page that this is a senior housing facility, or state your specific age restrictions. In addition, the association must have in place policies and procedures that demonstrate the intent to provide housing to persons 55 years of age or older. Such policies and procedures include the following: (i) written rules, regulations and other governing documents establishing the age requirements; (ii) actual practices utilized by the community for the enforcement of the rules; (iii) advertising used to attract prospective residents to the 1 The requirement is occupied — not owned. A parent who purchases for a younger child would not meet the age requirement unless there was at least one occupant over 55 living in the unit.
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Continued from page 24 community as well as the manner in which the community is described to prospective residents should include reference to the 55 and older status of the association.
Ensuring compliance on a regular basis Each HOPA association must take affirmative steps to ensure that it is complying with the age restrictions. At least every two years, the association must survey its residents to ensure that at least one person 55 years of age or older resides in 80 percent of the units.2 HOPA allows for age to be proven via birth certificates, drivers licenses, passports, military identifications, or any other state, local, national or international documentation — provided they contain current information about the age or birth of the possessor. Records of resident ages should be maintained for the entire time that the association wishes to maintain HOPA status.
Why do most associations have a 20% buffer? As stated above, the default HOPA association is an 80/20 association, meaning that at least 80 percent of the units must have an occupant who is at least 55 years of age. The other 20 percent of the units are unrestricted. However, to ensure compliance with the HOPA ratio, board of directors approval should be required for situations where a unit will not meet the HOPA age minimum. The 20 percent buffer would allow a younger spouse to remain in the association if the elder spouse (who was the over-55 resident) dies or the couple divorces. Many associations prohibit rentals of units if the occupants are not able to meet the age requirement to ensure that the 20 percent buffer would be available for their owners if the need arises. The declaration should be specific regarding the age requirements for rental units. Failure to properly run a senior living association under the HOPA guidelines may result in a costly FHA discrimination lawsuit against the association. In addition, the age restrictions could be removed, thereby allowing residents of any age in the association. To have a question answered in a future article, please email it to me at nmendez@carlsonassoc.com with the subject line of “Ask the Attorney.” While I can’t promise that all questions will be answered, I will do my best to include questions that have a broad appeal. Questions will also be answered by other attorneys practicing in this area of law. The answers are intended to give the reader a good understanding of the issue raised by the question but are not a substitute for acquiring an opinion from your legal counsel.
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2 If your association has stricter standards, you need to ensure you meet them. Community Advantage is a division of Barrington Bank & Trust Company, N.A., a Wintrust Community Bank.
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EXCEPTIONAL SERVICE AND SOLUTIONS. Managing Community Associations in Minnesota for over 40 years. FirstService Residential Minnesota delivers best-in-class property management solutions with local leadership and nationally-supported technology, training, and best practices. We have successfully partnered with more than 270 properties and communities in Minnesota, building and maintaining longstanding relationships with Board members, residents, and vendors. Our awardwinning Association Managers are highly trained and certified, and they have manageable portfolios enabling them to provide exceptional customer service to each and every one of our clients. Call us to learn more about how we may serve your association. FirstService Residential Minnesota is an Accredited Association Management Company 1801 American Boulevard E. Ste. 21 | Bloomington MN 55425 952.277.2700 | www.fsresidential.com
March | April 2016
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cai-mn
Show
TRADE Tradeshow Recap
From great speakers, delicious food and fantastic networking, the CAI-MN annual Tradeshow was a complete success! Boasting record turnout, a full conference hall and exciting giveaways, this year’s event far surpassed expectations.
Here are a few of our favorite moments‌
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A Big Thank YOU to All Our Sponsors: Networking Reception Bar Sponsor
Tradeshow Bar Sponsor
Show Sponsors
Conference Bag Sponsor
Education Sponsor
Lanyard Sponsor
Strobel & Hanson, P.A.
Parking Sponsor BIRCH, Inc.
Tradeshow Food Station Sponsor Benson, Kerrane, Storz & Nelson
March | April 2016
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Visit Our NEW WEBSITE at xtremeexteriors.com
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CAI-MN 2016 Golf Tournament ANNIVERSARY
Monday, August 8, 2016
Midland Hills Country Club | Roseville, MN Sponsorship registration open now! www.cai-mn.com
Minnesota Community Living 1000 Westgate Drive, Suite 252 St. Paul, MN 55114 Phone (651) 203-7250 Fax (651) 290-2266 Email info@cai-mn.com