Vision Magazine Spring 2020 by CACM-California Association of Community Managers

Vision SPRING 2020

THE VOICE OF CALIFORNIA COMMUNITY MANAGERS

Letâ&#x20AC;&#x2122;s Party! Vision Awards 2020 Page 16

COVID-19 How the industry copes with a pandemic.

LEGISLATIVE SNAPSHOT

Bills that could impact HOAs in 2020.

MEMBERSHIP SURVEY

Findings from our 2019 annual report.

Online Tools to Make Your Job Easier! Course Calendar and Registration

Industry Partner Directory Find just about any type of service provider for your community easily and quickly. Our online directory includes phone number, website, main contact and email for each company listed as well as service regions. Alphabetical and searchable listing.

CACM has transitioned face to face courses to an online platform. Turn to page 64 to view the latest offerings.

https://cacm.org/resources/industry-partner-directory/

Exclusive Member Resources Industry data, member logos, archives of Vision Magazine, archives of The Law Journal, archive of myCommunity newsletters, certification brochures, legislative resources, Ethics Toolkit, Basics of Association Management Toolkit, California Law Toolkit, Governing Documents, Law Seminar Archive and more!

Career Center Looking for your next community manager? The career center is the place to post your opening. Managers looking for new opportunities: this is your first stop!

http://careers.cacm.org/

cacm.org 2

Vision Spring 2020 | cacm.org

in this issue on the cover Liza DeJesus, CAMEx, CCAM-HR.ND of Seabreeze Management Company, Mimi Cortes of SAX Insurance Agency, Ed Szaky, CAMEx, CCAM of Matrix Association Management and Robin Romo, CAMEx, MCAM-HR of CitiScape Property Management Group at the Northern California Vision Award Show

features 14 16 22 24 26 30

news bits 6

Members in the News

You Said It! Join Us on Social Media

California Legislative Update

Congratulations Managers

New Individual Managers and Management Company Members

New Industry Partners

Thank You To Our Sponsors

38 42 46 48

departments 5

President’s Message

From the Roundtable

In the Boardroom

Course and Event Calendar

54 58

HOW THE INDUSTRY IS COPING WITH COVID-19 By Lynette Bertrand, Communications Manager, CACM VISION AWARDS 2020 COVERAGE: ALL THE GLAMOUR AND FUN! THE RECOGNITION REVOLUTION: GIVING YOUR STAFF KUDOS GOES A LONG WAY By Emily Yost, Director of Marketing & Communications, CACM CACM COMMITTEES: HOW TO GET INVOLVED AND MAKE A DIFFERENCE KNOW YOUR LIABILITY: ARE YOUR ASSOCIATIONS MEETING MAINTENANCE OBLIGATIONS? By Tony Angelo 2019 MEMBER SURVEY: FINDINGS FROM CACM’S ANNUAL REPORT By Lynette Bertrand, Communications Manager, CACM FEWER HATS: THE CHANGING ROLE OF COMMUNITY MANAGERS By Sarah Touchi ROBOTS WON’T TAKE OVER YOUR JOB, BUT TECHNOLOGY IS CHANGING WHAT YOU DO AND HOW By Clint McClure, CAMEx, CCAM NAVIGATING OWNERSHIP CHANGE AT YOUR MANAGEMENT COMPANY By Lori R. Storm, CAMEx, CCAM EDUCATING NEW BUYERS ON THE PERKS OF COMMON INTEREST DEVELOPMENTS By Laurisa Ehlers, CCAM HOW TO BUILD TRUST WITH YOUR BOARD, HOMEOWNERS, STAFF AND VENDORS By Hamlet Vazquez, MCAM-HR WORKING FROM HOME: BEST PRACTICES TO SET YOURSELF UP FOR SUCCESS By Andrew Hay, CAMEx, CCAM-ND PREVENTING LOSS FROM DECEPTION FRAUD ATTACKS By Ané Agostini THE NITTY GRITTY ON NEW ACCOUNTING RULES By John Belitto, CPA and David Levy, CPA YOU’VE GOT MAIL: MEETING DEMANDS IN THE AGE OF AMAZON DELIVERY By Jim McBurney LAW SEMINAR MOMENTS FROM ACROSS CALIFORNIA

cacm.org | Vision Spring 2020

Vision

THE VOICE OF CALIFORNIA COMMUNITY MANAGERS

Spring 2020 • Vol. 29, no. 1

President & CEO | Thomas Freeley

tfreeley@cacm.org | 949.916.2226, ext. 315

Editor | Emily Yost eyost@cacm.org | 949.916.2226, ext. 313 Managing Editor | Lynette Bertrand lbertrand@cacm.org | 949.916.2226, ext. 323 Advertising | Melissa Hurtado mhurtado@cacm.org | 949.916.2226, ext. 318 Editorial Advisory Committee Laurisa Ehlers, CCAM Harvest Landscape Enterprise, Inc. Todd Greisen, CCAM Contra Loma Estates

Lori R. Storm, CAMEx, CCAM The Management Trust – Northern California, ACMC Scott Swinton Unlimited Property Services, Inc.

Andrew Hay, CCAM-ND.PM The Helsing Group, Inc., ACMC Dean Jackson, CCAM-HR Pacific Park Plaza HOA Clint McClure, CAMEx, CCAM McClure Management, Inc.

Sarah Touchi Genevation, Inc. Hamlet Vazquez, MCAM-HR Action Property Management, Inc., ACMC

Vision magazine is published digitally by CACM four times annually to members, industry partners and supporters of the California Association of Community Managers. Magazine content copyrighted 2020. All rights reserved. No part of this publication may be reproduced without written permission from CACM. Opinions expressed by authors do not necessarily reflect the policies of CACM. Mention of any product or service does not constitute an endorsement by CACM. CACM assumes no responsibility for return of photos or art and reserved the right to reject any editorial or advertising materials. CACM does not assume responsibility for the accuracy of articles, events or announcements listed. Please address comments and suggestions to: California Association of Community Managers, Inc. 23461 South Pointe Drive, Ste. 200, Laguna Hills, CA 92653 949. 91 6 . 2226 | communications@cacm.org

Do we know where you are? Attention CACM members: Have you changed jobs or moved to a new location? Go to www.cacm.org and update your profile so you don’t miss your next Vision magazine or any other important CACM communications. Follow us and stay up-to-date on industry news and info! Follow @CACMchat

Vision Spring 2020 | cacm.org

president’s message

irst, I hope this finds you and yours safe and doing the best you can to stay healthy in these troubled times. Please, follow the mandated social distancing and sheltering in place current at the time of writing this article.

The first quarter of 2020 has been experiencing some unprecedented challenges, not only in California but on a global scale. I have been asked where our industry is in all of this. It’s my interpretation of the California mandate currently in place, as well as on the Homeland Security CISA website (https://www.cisa.gov/commercial-facilitiessector), that management of a community association is in fact an essential service. Managers and management companies are critical to the safe operations of a CID. Related to a management contract in these challenging times, my guidance to managers and management companies is to follow the language in the management agreement unless the association’s legal counsel guides the board otherwise. For example, if the agreement states that annual audits will be mailed out within the 120 day requirement, please do so. If the agreement states monthly property walks, please do so, yet still follow social distancing. Many associations are holding electronic board meetings in order to remain sheltered in place. Always, even under these crazy challenging times, always check with the association’s legal counsel before altering services mandated by statute or your management agreement. CACM has done the best we can to recognize the importance of continuing education and learning and have adjusted our services in these strange times. Our courses normally held in person across California are now all online at reduced prices. Regretfully, due to the state and various local mandates, we have been forced to cancel All Spring Forums and other events through June. These events take an enormous amount of time and effort to plan well in advance. Under the current circumstances with no clear end in sight, we simply can’t afford to develop events and be forced to cancel, again. We are very hopeful this will be behind us in a few months and we’ll be ready to get back to business providing you the necessary education and events we all have enjoyed. Lastly, please remember that every challenge also provides opportunity. In these troubled times, take the opportunity to further connect with your loved ones or to get healthy. While following social distancing, take the opportunity to enjoy the wondrous splendors of mother nature and the great outdoors. Read a book or take advantage of the opportunity to further your education through online courses. Whatever it is you prefer to do, see these troubled times as an opportunity, and do it.

Please stay safe and healthy.

Thomas Freeley, President & CEO

cacm.org | Vision Spring 2020

members in the news BrightView Acquires Signature Coast Holdings & Summit Landscape Group

BrightView has acquired Signature Coast Holdings, a commercial landscaping company headquartered in Napa. Signature Coast’s operations span nine locations in California (Concord, Davis, Marin, Napa, Rocklin, Sacramento and Santa Rosa) and Nevada (Carson City and Reno). Signature provides landscape maintenance, irrigation, enhancement, installation, arbor care, pest control and snow removal services under its three major brands: Coast Landscape Management, Signature Landscapes and C&R Landscape. The company employs 600 landscape professionals

Powerstone Committed to Childhood Cancer Research

who serve clients in corporate, HOA, multi-family and municipal

Powerstone Property Management is committed to raising

segments. “Signature Coast is a Top 50 landscape service provider

funds for the Pediatric Cancer Research Foundation (PCRF).

in the country and is the second largest acquisition we’ve made

Over the last eight years, the company has raised more than

since the 2017 inception of our successful ‘Strong-on-Strong’

$600,000 for PCRF. “We began a tradition eight years ago

acquisition strategy. I look forward to working with the team

of having a fund raising lunch, and walking in the PCRF

for many years to come,” said Andrew Masterman, BrightView

Annual 5K as a company, as well as donating time and

President and CEO. Kelly Solomon, CEO of Signature Coast,

services throughout the year,” said Kylie Decker, Community

and her senior leadership team will remain with BrightView to

Manager. “We are incorporating a silent auction to the

guide the integration process. BrightView also acquired Summit

annual lunch to raise even more money for PCRF.” Others

Landscape Group, headquartered in Rock Hill, South Carolina.

can get involved by donating to Powerstone’s team page on

Summit serves Charlotte, N.C., Charleston and Hilton Head, S.C.,

the PCRF website. Powerstone hosted an Annual Kick Off

and Nashville, Tenn. Founders Mike Knabenshue and Steve Adolph

Happy Hour in March to raise funds for PCRF that included a

will remain with BrightView to provide leadership continuity.

silent auction and raffle as well as sponsorships for donors.

Congrats to the new parents CACM wants to congratulate members on their recent additions to their families. Scott Newman, CCAM-LS.AA, Assistant General Manager of Smith Ranch Homes HOA, welcomed daughter Rose. Newman was a Vision Award nominee in the leadership category this year in Northern California. And Sara Brown, Case Manager at the Miller Law Firm, welcomed her first baby recently, Chloe Nicole.

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members in the news New hires and promotions

CIT Buys Mutual of Omaha Bank and Launches HOA Premium Reserve

CIT Bank, N.A. recently

Congratulations to Mike Fitzgerald

Congratulations also to Katie Bellows

on joining Tinnelly Law Group as its

who recently was hired as Director

new Business Development Manager.

of Mutual of Omaha Bank.

of Talent Acquisition & Growth at

Fitzgerald was previously business

The purchase price was

Powerstone Property Management, Inc.

development director at James LeCourt

approximately $1 billion,

Bellows will manage the companyâ&#x20AC;&#x2122;s

Plumbing.

comprised of $850 million in

new Powerstone Academy, a resource

cash and about 3.1 million shares

and education center for employee

of CIT stock, which were issued

training on all facets of the common

to Mutual of Omaha Insurance

interest development industry. Bellowsâ&#x20AC;&#x2122;

Co. The transaction includes

experience includes training and

$6.8 billion in deposits, $4.5

recruiting at Enterprise Rent-A-Car. More

billion of which are community

recently she worked on sourcing qualified

association deposits, and $8.3

physicians for Hoag Medical Group.

billion of total assets, including

completed the acquisition

$3.9 billion of middle-market commercial loans, as of Sept. 30, 2019. In total, CIT now has approximately $42 billion of total deposits and $60 billion of total assets. Mutual of Omaha Bank has begun to transition to the CIT brand. CIT also has launched a new suite of premium reserve accounts Antis Roofing and Waterproofing

for homeowner association

recently promoted Audrey Schneider to

deposits. These accounts offer

Vice President of Finance after serving

competitive returns and the

as Director. Schneider joined Antis Roofing in 2017 and has over 20 years of experience as a finance professional. In her new role she manages all aspects of the finance organization as well as the strategic financial direction of the company.

Tiffany Hannah, CAMEx, CCAM-ND, has joined Associa as its Western Regional Vice President - West and International Region. She had previously worked for nearly 16 years at the Management Trust - Southern California. Congratulations Tiffany!

backing of a surety bond for balances over $250,000 for community associations, and the convenience and efficiency of having both operating accounts and reserve accounts at one bank for community managers. cacm.org | Vision Spring 2020

members in the news

Manager Honored for Service to Disabled

Loni Peterson, CCAM-LS, of Associa - Desert Resort Management was recognized by the Inland Empire

Caucus – California Disability Services Association for her partnership in improving the lives of people with disabilities.

FirstService Residential Community Manager Secures $25K Grant

Foothill Ranch Maintenance Corporation, managed by FirstService Residential, was awarded a $25,000 Fire-Safe Community Grant. FirstService Residential associate Sara Hardin, Senior Community Manager for the Foothill Ranch Maintenance Corporation in Lake Forest, applied for the grant through California Fire Safe Council (CFSC), which awarded the grant last August. Composed of 2,791 homes, the Foothill Ranch Maintenance Corporation has been managed by FirstService Residential since inception in 1990. The community is located in a Very High Fire Hazard Severity Zone. In partnership with FirstService Residential, the FireSafe Community Grant will be used to fund fire prevention initiatives for the community, including a dedicated fuel modification crew to maintain the property on a monthly basis. “The new, and ever-changing requirements by the Orange County Fire Authority (OCFA) have placed an extreme financial burden on our HOA,” said Melissa Sims, vice president of Foothill Ranch Maintenance Corporation. “Sara has gone above and beyond, in not only recognizing the need for additional funds, but in successfully writing a grant proposal that will benefit our community for years to come.”

FirstService Residential to Manage Trinidad Community Association in San Clemente FirstService Residential was awarded the management

contract for Trinidad Community Association in San Clemente. FirstService Residential began management of the 105-unit townhome community on February 1. Trinidad is the subassociation of Talega Master Association, which FirstService Residential has managed since 2000. Residents have full access to all of Talega’s amenities, including a clubhouse, three pool facilities, and two nearby golf courses. The community is also surrounded by miles of hiking and biking trails and is located three miles away from the San Clemente beaches. “Thus far, our experience as it relates to transitioning records from prior management has been seamless, and we are excited to partner with FirstService Residential going forward,” said Jeff Kurtzer, board president of Trinidad Community Association. “The association has a few large-scale projects on the horizon, which will require a collaborative effort from all parties involved, especially the board of directors and management company.” Built in 1999, Trinidad features attached townhome units with three different floor plans, ranging from 2-bedroom and 2-bath to the largest offering three bedrooms. All homes have access to attached 2-car garages.

Don’t see your news listed? Update us at communications@cacm.org 8

Vision Spring 2020 | cacm.org

cacm.org | Vision Spring 2020

from the roundtable A MESSAGE FROM THE BOARD

am honored to serve as the Chair alongside such a dedicated group of professionals who are the driving force behind updating legislation that truly has an effect on those we serve. It is imperative that we stay on top of the issues that impact our clients and the teams that we lead.

We all have a story as to how we ended up in our roles in this industry. I highly doubt it is because any of us are fulfilling our childhood dreams of working in property management. However, I am positive all of our stories have a similar thread--the desire to help, to lead and to perform meaningful work. Millions of owners live in HOAs and what we do matters to them. We strive to continue elevating our industry by providing specific and top-notch education that meet the needs of clients and the ever changing world that we live in. This is daunting and reinforces why CACM is the leader in state-specific education. We are the experts. We are our industry’s leaders. As members of CACM, we are facilitating an important change. We are changing the narrative around HOAs. We are changing the perception that “all HOAs are a waste of time” or “overly regulatory.” We are telling our story of how we make sure our communities thrive. Everything from landscape to legal obligations, we are the experts leading our clients to maintain healthy and desirable places to live. We live in a world that changes daily. Social media has changed the way we work. The legal system can be overwhelming. That’s why CACM continues to challenge the status quo providing educational events and courses that sharpen your skills and reinforce your confidence and intuition. This year, I challenge each member of CACM to take advantage of all educational opportunities offered to you and gain the knowledge and ability to grow as a manager. Through this simple focus, you will get to know your peers from all across our state and take on the challenges required of today’s community manager. Always remember…the work we do matters.

Kendrah Kay, CAMEx, CCAM CACM Board Chair Powerstone Property Mgmt., ACMC

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cacm.org | Vision Spring 2020

you said it! We are looking forward to the California Association of Community Managers - CACM Vision Awards on Thursday, March 12th. We are so honored to be nominated for the Social Impact Award and the Social Media Ambassador Award. #pilotpainting #cacm #visionawards — Pilot Painting & Construction

AAAAA 5 stars. CACM was instrumental to my success as a professional community manager. I look forward to continuing my partnership with CACM as a vendor now!! Thank you for my education and providing a forum to build great friends and relationships. — Melissa Bell, Bellwether

Great time collaborating with fellow presenters Lisa Esposito, Darren Shaw, Mike Hughes, Margo Crummack and Cang Le on the CACM Law Seminar and Expo session, Once Upon A Project, the ins and outs of project management. #NCLSE20 #CACMStrong — John Cligny, CAMEx, CCAM-HR, Association Consulting Group I cannot believe it! I just won a cruise for two to Mexico in March from California Association of Community Managers - CACM! I’m beyond excited! Thank you CACM, you guys are the best!!!!! — Bonnie Basham, CCAM, CAFM, in winning the 4 Day, 3 Night Mexico Cruise offered to CACM members only courtesy of Industry Partner members Norvell Community Association Resources and ProTech Building Services.

Fun Friday! Sneak peek of our Hall of Fame exhibit at #NCLSE20. We are excited to be a part of the @CACMchat event in February. Hope to see you there! Get details on the event by visiting http://bit.ly/NCLSE20event. — Coast Landscape Management

This was one of the best, most useful parts of this year’s law seminar! — Elliott Harwell, Homeowners Management Company, LLC

Excited to be a new member of CACM! I’m looking forward to [The Northern California Law Seminar]! — Brenda Moore, City Wide Property Services

Thank you so much! What an honor to be included with so many amazing colleagues. We are looking forward to celebrating in March. — Teresa Agnew, Roseman Law, APC (about Vision Awards)

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The Varsity team had another great year at the CACM annual law seminar!!! We love being a part of this amazing trade organization that brings high level education while bringing managers and business partners together. Incredible dinners, parties, award show and networking. Congratulations to all the Vision Award nominees and award winners. Until next year… #cacm #paintingsmiles #peaceofmindpainting — Mandi Newton, Varsity Painting (regarding #NCLSE20) Thank you for the great honor!! It is always my pleasure to serve and help grow this fabulous organization. — Steven Roseman of Roseman Law (regarding Vision Award Nomination)

you said it!

Celebrating the holiday season tonight with California Association of Community Managers - CACM and industry friends. We’re thrilled to support the event as the photo booth sponsor. — Hughes Gill Cochrane Tinetti, PC

As always, it was a great event! — TOPS Software (regarding #NCLSE20) Calling all CACM members, be sure to register for this fabulously “enlightening” once a year marquee event! Looking forward to seeing our clients and introducing our @amsgetsthingsdone team! — Association Maintenance Services

2020 #CACM show was awesome! #blackdiamondroofs is looking forward to working with old and new friends! #anewroofingexperience @wereontopofit #CACMSTRONG — Melissa Wood, Black Diamond Roofing, Inc. (regarding #NCLSE20) CACM NorCal Law Seminar was a home run! The CACM staff were EVERYWHERE doing EVERYTHING! What a great show and seminar! Thanks to all the industry partners for a fabulous exhibit hall and sponsorships. Special shout out to vendors who exhibited for the first time. I really appreciated you for jumping into the pool. #cacmstrong #nclse20 — Lori “Stormy” Storm, CAMEx, CCAM The Management Trust- Northern CA, ACMC

Still thinking about all of the amazing speakers we heard at the CACM NorCal Law Seminar! Here’s a photo of our three presenters Steve Weil, Andrea O’Toole, and Maria Kao. — Berding | Weil We hope that we see you at the California Association of Community Managers - #CACM Northern California Expo! It’s one of California’s premier educational events for community association managers. #NCLSE20 — SwedelsonGottlieb

It looks like there has been some much-needed upgrades to the website and it works much better now. — Heather S. Persons, CCAM, Manager, Mission Viejo Swim & Racquet Club A great dive into the pool it was! Nicely done, CACM! — Alicia Perez, Giuliani Construction & Restoration, Inc. (regarding #NCLSE20)

Everyone I know in the property management industry who don’t know what to do or are feeling overwhelmed, remember you are an essential service! Just take it moment by moment, problem by problem, step by step. You know what you are doing, believe in yourself and reach out to your network, we are ALL here to help!! (regarding Covid-19) — Laura Ravazza, CCAM-PM, Director of Education and Marketing, Homeowners Management Company, LLC

cacm.org | Vision Spring 2020

UNCHARTED TERRITORY Industry responds to the coronavirus pandemic. Plus, tips on how to manage in these challenging days ahead. By Lynette Bertrand, Communications Manager, CACM

The phones and inboxes of community association attorneys lit up on March 19. As news of California’s mandated shutdown to stem the spread of COVID-19 hit, the questions began to arise. What does this mean for associations and their common area spaces? Should shared amenities like pools, spas, fitness rooms and tennis courts close? What about board meetings--how should they be handled? As shelter-in-place orders were issued across cities, counties and eventually the state, management companies began assuring their clients through letters and emails that while their staff was working remotely that there would be no interruption in operations or services provided. Managers assured boards that they were equipped to handle any emergency and need remotely. And many, in consultation with the association’s attorney, decided that board meetings, at least in the near future, would be held electronically or virtually over the coming days. These are accurate positions to take, from CACM’s perspective. According to the Homeland Security’s CISA website (https:// www.cisa.gov/commercial-facilities-sector) as well as local mandates and executive orders that we reviewed, management of condominium and homeowner associations is considered an essential service.

Vision Spring 2020 | cacm.org

Likewise, industry partners urged

to operate. Communities still need to be

and what actions to take. What are the

managers that their services were still

managed as an essential service.

recommendations locally? Stay current on

available. That essential maintenance and

the latest news and bookmark websites

repairs could be handled, carefully, during

Seek legal counsel.

to government agencies in your area.

these times of crisis.

We are not attorneys. These are just our

Make sure to stay on top of COVID-19 as

opinions. If you’re unsure how something

it pertains to your specific location as

Some communities began closing

should be handled, whether it’s policies

mandates and regulations vary widely

common areas after consulting with local

around assessment delinquency collection

by municipality and they will likely guide

municipalities and legal counsel, including

due to financial impact to homeowners

your decisions about how to address

pools, gyms and clubhouses.

who have lost their jobs or how to conduct

community common areas and rules.

elections or board meetings, seek counsel Senior living communities cancelled

from your association’s legal counsel

Keep your communities and boards

events and gatherings, and encouraged

and/or industry partner. Many attorneys

informed.

residents to stay in their units. Some

tackle some of these issues with online

The best way to handle anxiety and

limited the number of people in areas like

resources available through their websites

prevent panic is to be informed and to

lobbies and public spaces and suspended

and e-newsletters. Use CACM’s service

keep your communities informed, too.

planned social activities.

directory as a guide: https://cacm.org/

Let them know how you will handle their

resources/industry-partner-directory/.

needs and questions and what actions

These are uncharted territories for

you’re taking to handle business in these

everyone. Within the span of a few weeks,

Be situational.

unprecedented times while complying

life as we know it has drastically changed.

What’s going on in your community?

with governmental and local orders.

However, even with the continuing spread

Stay informed as to city, county and state

of COVID-19, associations must continue

regulations on COVID-19, how to respond

COVID-19 TIMELINE JANUARY 20

DECEMBER DECEMBER

COVID-19 is first detected in Wuhan, China.

2020

2019

First confirmed COVID-19 infection in the U.S. in Snohomish County, Washington.

MARCH 11

California Department of Public health in cooperation with the Governor’s office mandates limiting gatherings to 250 people or less.

JANUARY MARCH 11

MARCH 13

School districts across California start to close down.

MARCH 19

California Governor Gavin Newsom declares shutdown, with statewide shelter-at-home mandate. Other states across the country start to follow suit.

MARCH

As cases worldwide increase, World Health Organization declares COVID-19 a pandemic.

MARCH 13

President Trump declares national emergency due to COVID-19 outbreak.

MARCH 16

San Francisco issues public order for shelter in place for the Bay Area.

COVID-19 INFORMATION RESOURCES CACM updates on education and events: https://cacm.org/coronavirus/ Centers for Disease Control and Prevention (CDC): https://www.cdc.gov/ California Department of Public Health: https://covid19.ca.gov/

cacm.org | Vision Spring 2020

as CACM launched the Vision We hope you all tuned in March 23 ia live on social media. As Award winners for Southern Californ hosting the formal ceremony, COVID-19 prevented CACM from of fanfare when CACM winners can look forward to a bit r awards. coordinates the presentation of thei

Lori Storm, CAMEx, CCAM, accepts the EDUCATIONAL d EXCELLENCE - COMPANY awar ern for The Management Trust - North California , ACMC.

Katie Harnish, CCAM, d winner of the RISING STAR awar

Vision Spring 2020 | cacm.org

Rolf Crocker, CAMEx, CCAM, accepts the INSPIRATIONAL CULTURE -COMPANY award for LLC. OMNI Community Management

Tim Sutherland, CAMEx, CCAM, winner of the EDUCATIONAL d EXCELLENCE - INDIVIDUAl awar

Trisha Conte, CCAM, CAFM, winner of the INNOVATOR award

Kimberley Flickner, CCAM-PM, d winner of the LEADERSHIP awar

Joseph Price, CAMEx, CCAM, accepts the SOCIAL IMPACT COMPANy award for Next Step Community Management LLC.

Ronni Maestas of Hughes Gill Cochrane Tinetti, PC, accepts the BEST IN SHOW award for the COMPANYâ&#x20AC;&#x2122;S BOOTH at NCLSE.

Winner of the EDUCATIONAL EXCELLENCE COMPANY award

e Brian Henry, Park West Landscap IAL Management, winner of the SOC MEDIA AMBASSADOR award (industry partner)

Christine Stangeland, CCAM, winner of the EDUCATIONAL d EXCELLENCE - INDIVIDUAL awar

Kylie J. Decker, CCAM, winner of the SOCIAL MEDIA AMBASSADOR award (manager)

Winner of the SOCIAL IMPACT - COMPANY award

Tiffany Hannah, CAMEx, CCAM-ND d winner of the LEADERSHIP awar

Kelly MacInnis, CCAM, d winner of the RISING STAR awar

Donna Currie, CCAM, winner of the INNOVATOR award

Winner of the INSPIRATIONAL CULTURE COMPANY award

cacm.org | Vision Spring 2020

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FIND MORE PHOTOS AND VIDEOS ON CACMâ&#x20AC;&#x2122;S FACEBOOK PAGE cacm.org | Vision Spring 2020

EDUCATIONAL EXCELLENCE - COMPANY The Helsing Group, Inc., ACMC The Management Trust - Northern California, ACMC The Management Trust - Southern California, ACMC Powerstone Property Mgmt., ACMC

INSPIRATIONAL CULTURE - COMPANY Associa Northern California GRG Management, Inc. The Management Trust - California Desert, ACMC OMNI Community Management LLC Powerstone Property Mgmt., ACMC Steward Property Services, Inc.

SOCIAL IMPACT - COMPANY Albert Management, Inc. Homeowners Management Company, LLC (HMC) Next Step Community Management LLC Pilot Painting & Construction Powerstone Property Mgmt., ACMC

RISING STAR - INDIVIDUAL Daniel S. Carvo The Management Trust - Southern California, ACMC Trisha Clingenpeel, CCAM The Management Trust - Southern California, ACMC Christina French, CCAM Moraga Country Club HOA Katie Harnish, CCAM CitiScape Property Management Group LLC, ACMC Chelsea A. Hein, CCAM OMNI Community Management LLC Jessica N. Hubbard Vines Management, Inc. Kelly MacInnis Powerstone Property Mgmt., ACMC Daniel Pizano, CCAM Community Management Services, Inc. Christy A. Whalen, CCAM Rancho Santa Fe Assn.

INNOVATOR - INDIVIDUAL Trisha Conte, CCAM, CAFM Steward Property Services, Inc. Donna Currie, CCAM Somerset HOA Tina Ellis The Metropolitan Association Susan Evans, CCAM VintageGroup Amy Hansen, CCAM The Management Trust - Southern California, ACMC Bree Harrington, CCAM Powerstone Property Mgmt., ACMC Tracy Robinson, MBA, CCAM PMP Management Erik Runsvold, CAMEx, CCAM PropertyADVANTAGE Sonia K. Wright, CCAM Next Step Community Management LLC

Vision Spring 2020 | cacm.org

Jerry Storage, CCAM The Management Trust - California Desert, ACMC John Thorpe, CCAM-LS Walters Management, ACMC

LEADERSHIP - INDIVIDUAL Diana Castillo, CCAM AMS Realty, Inc. Stephanie Cook, CCAM The Management Trust - Northern California, ACMC RenÃ© Decker, CAMEx, CCAM Powerstone Property Mgmt., ACMC Christie A. Forbes, CAFM The Management Trust - Southern California, ACMC Kimberley Flickner, CCAM-PM Bay Area Property Services Christina French, CCAM-LS Moraga Country Club HOA Amy Gunderson, CCAM Desert Management Tiffany Hannah, CAMEx, CCAM-ND The Management Trust - Southern California, ACMC Robyn Hetland, CCAM OMNI Community Management LLC Kristin Hobson, CCAM Powerstone Property Mgmt., ACMC Jessica N. Hubbard Vines Management, Inc. Betina Hunt, CAMEx, CCAM Homeowners Management Company, LLC (HMC) Mathew Maughan, CCAM The Helsing Group, Inc., ACMC Michele Payan-Nagy, CCAM MRoland Management Services, LLC Scott Newman, CCAM-LS.AA Smith Ranch Homes HOA Joseph A. Price, CAMEx, CCAM Next Step Community Management LLC Erik Runsvold, CAMEx, CCAM PropertyADVANTAGE Vanessa Schussler, CCAM-LS.AA Sun City Palm Desert Community Assn. Eileen Carter-Sullivan, CCAM LLW Properties

EDUCATIONAL EXCELLENCE - INDIVIDUAL Mark T. Guithues, Esq. Community Legal Advisors, Inc. Laura Ravazza, CCAM-PM Homeowners Management Company, LLC (HMC) Steven Roseman, Esq. Roseman Law, APC Vanessa Schussler, CCAM-LS.AA Sun City Palm Desert Community Assn. Christine Stangeland, CCAM CAMC Services, Inc. Tim Sutherland, CAMEx, CCAM The Villages Golf and Country Club

SOCIAL MEDIA AMBASSADOR Teresa Agnew Roseman Law, APC Antis Roofing & Waterproofing ASPM-San Diego Bonnie W. Basham, CCAM, CAFM Basham Management David Carino Restotech DKI Chapman & Intrieri, LLP Carra Clampitt, CAMEx, CCAM-LS.AA.PM Eugene Burger Management Corporation Gina Conradt Restotech DKI Kylie J. Decker, CCAM Powerstone Property Mgmt., ACMC Liza DeJesus, CAMEx, CCAM-HR.ND Seabreeze Management Company Lisa Esposito, CCAM-Emeritus Advance Construction Technology, Inc. (ACT) Dan Fernandez TARC Construction, Inc. Flood Pro Richard J. Gutierrez J.J. Commercial Water Heaters Brian Henry Park West Landscape Management Hughes Gill Cochrane Tinetti, PC Betina Hunt, CAMEx, CCAM Homeowners Management Company, LLC (HMC) JK Electrical Services, Inc John Kelly Jenkins Properties Management Company Sarah Roughan-Martinez Sunset Landscape Maintenance, Inc. Terri McFarland Broadband Agreements By MFC Melissa Pease, CCAM Powerstone Property Mgmt., ACMC Loni Peterson, CCAM-LS Associa - Desert Resort Management Pilot Painting & Construction Powerstone Property Mgmt., ACMC Joseph A. Price, CAMEx, CCAM Next Step Community Management LLC Kim Province Pete Fowler Construction Services Alisher Sabirov S.B.S. Lien Services Robert L. Smith, Jr., CCAM-HR Savoy Community Assn. Lori Storm, CAMEx, CCAM The Management Trust - Northern California, ACMC SwedelsonGottlieb Sarah Touchi Genevation, Inc. Carl Weise, CAMEX, CCAM-HR.AA The Management Trust - California Desert, ACMC West Coast Management Firm, Inc.

AWT Construction Inc. was the sponsor of our Vision Awards swag bags. We would like to thank them for their generous support. CACM provided these bags to winners at the Awards Show held at the law seminar in Northern California. The swag bags for Southern California winners will be delivered to them once the COVID-19 restrictions have been lifted. AWT Construction Inc. is based in Benicia, California, and services the San Francisco Bay Area, east to Sacramento, north to Santa Rosa and south to Gilroy. The company provides reconstruction, roofing, waterproofing, tenant improvements, HVAC commercial and residential and electrical services. Find out more by visiting awtconstructioninc.com.

cacm.org | Vision Spring 2020

the

Recognition

REVOLUTION By Emily Yost, Director of Marketing & Communications at CACM

You’ve heard of the Industrial Revolution and the American Revolution. Both events were radical turning points in history that impact the world today.

But have you heard of the Recognition Revolution? In today’s war for talent, companies are seeking new strategies for attracting top talent, ensuring high employee retention rates, all while increasing organic growth and productivity. It sounds so daunting, yet in their quest for finding new strategies to accomplish these goals, they may be overlooking the simplest, low-cost, high impact strategy available to them—recognition. The average person spends 90,000 hours at work over their lifetime. That breaks down to a third of their life. It begs the question why leaders don’t stop and recognize employees for a job well done more often—especially since they spend so much time together and are riddled with anxiety when someone they depend on quits suddenly.

Public

AUTHENTIC, PUBLIC RECOGNITION a. Causes those who are recognized to find personal satisfaction and pride in their work at their current employer. b. Inspires others on the team providing aspirational examples of positive work habits, all while creating positive (and professional) mentors for those newer to the team.

Private

PRIVATE ACCOLADES a. Build trust and b. Open up lines of communication.

Promotion PROMOTION MAKES IT CLEAR TO THE EMPLOYEE HOW MUCH THEY ARE TRUSTED WITHIN THE COMPANY.

As the only California-specific resource for the community management industry, CACM has been watching this “recognition revolution” unfold within the membership across California with some key takeaways worthy of sharing. Emily Yost, Director of Marketing & Communications at CACM

Vision Spring 2020 | cacm.org

Member Recognition Examples WORDS CARRY THE KEYS TO PRODUCTIVITY Here are a few CACM members who are excelling in the Recognition Revolution, as seen on social media.

All of us at Whitney|Petchul are incredibly proud to introduce you to Karla Cespedes! Karla joined us a few months ago (yes, I know, I am behind in my announcements!), and she has VERY

HAPPY NATIONAL PICKLE DAY! Our social committee made these super cute treats for our Irvine corporate office employees to enjoy. Guessing we’re a BIG DILL #teampowerstone #powerstone #powerstonepm #nationalpickleday #pickles #employeeengagement #culture #corporateoffice

quickly grown to become an incredibly important member of our team! Karla joined us as a Legal Assistant having significant past experience in another Orange County law firm. Since joining us, Karla applied, was accepted and is now enrolled in the prestigious UCI Paralegal program! (CONGRATULATIONS KARLA!!!) Karla CLEARLY operates with the same goals, motivation and work ethic as our entire team: She works hard, has fun and is driven to provide our community association clients AND their professional management with outstanding service and results! WELCOME TO THE TEAM KARLA!

We couldn’t do anything without our amazing Administration Team!! Their dedication and passion is key to our success! HAPPY ADMINISTRATIVE PROFESSIONALS DAY! #teamhmc #bethechange #hoalife #administrativeprofessionalsday

cacm.org | Vision Spring 2020

............................................................

CACM COMMITTEES 24

Give back to your industry and make a positive impact across California.

CACM committees afford the opportunity for members to bring the “voice” of community managers and industry partners to the decision-making process, helping shape legislation and the selection of event topics, article inclusions, course offerings, certification needs and so much more.

CREDENTIALING ADVISORY COMMITTEE Members provide suggestions, offer advice, and help inform credentialing and accreditation decisions at CACM. The committee convenes every other month via the ZOOM platform.

EDUCATION ADVISORY COMMITTEE

to serving as committee liaisons between the CACM staff and session panels, their dedication ensures a most successful delivery of the industry’s premier event. The committee formally convenes monthly via a conference call format.

Members support the identification and development of CACM educational offerings allowing students to secure the competencies needed to effectively manage California communities. The committee convenes every other month via the ZOOM platform.

LEGISLATIVE ADVISORY

ETHICS CASE STUDY EDITORIAL COMMITTEE

Members provide ideas, offer advice and support to help plan fun events and networking opportunities in the local regions. The committee convenes every other month via ZOOM platform.

Members oversee the expansion of the CACM case study library that is used in all three ethics courses as well as to inform focused event discussions. Through the committee’s efforts, CACM seeks to secure the highest level of professionalism in the California community management industry.

THE LAW JOURNAL EDITORIAL COMMITTEE Members select the theme and authors for CACM’s quarterly Law Journal, as well as prepare the articles for publication focused at all times on issues that impact the management of HOAs. Throughout the year, members take turns serving as guest editors and journal editors, ensuring that the information is presented in an easilyunderstood format. The committee formally convenes quarterly via a conference call format.

LAW SEMINAR ADVISORY COMMITTEE Members engage in all aspects of planning the annual Law Seminar & Expo. From the identification of the event theme, to the brainstorming of topics for breakout sessions,

Vision Spring 2020 | cacm.org

Provides input and feedback for development of CACM position and/or public policies on proposed legislation. The committee convenes once a month via a conference call format.

LOCAL EVENT COMMITTEE

PUBLIC RELATIONS COMMITTEE

Support and facilitate promotion of CACM as the only California-specific resource for the community management industry. Assist at maintaining a positive image of CACM within and outside of the organization by supporting CACM’s PR campaigns, in addition to monitoring news updates of members across California. Work with management companies and industry partners to get CACM’s messages out to achieve the goal of growing membership and maintaining our positive image. The committee convenes quarterly via ZOOM platform.

VISION EDITORIAL ADVISORY

Helps shape editorial content and write articles for the only California-specific industry trade publications, Vision magazine that is published four times per year. The committee convenes eight times per year via a conference call format.

To get involved visit www.bit.ly/CACMCommittees

GREAT

TEAM-BUILDING EVENTS!

SEPT. 25

ORANGE COUNTY LUNCHEON Avenue of the Arts Costa Mesa, CA

SEPT. 29

BAKERSFIELD LUNCHEON Stockdale Country Club Bakersfield, CA

SEPT. 30

2020 FALL REGIONAL FORUMS Join your colleagues at one or more of these forums. These California-specific bite-sized interactive events provide the perfect dose of motivation and expert insight into how to solve the unique challenges managers face on a daily basis. Earn 2 CEUs!

POMONA LUNCHEON Mountain Meadows Golf Course Pomona, CA

OCT. 20

SACRAMENTO BREAKFAST OCT. 21

EAST BAY LUNCHEON Hilton Concord Concord, CA

OCT. 22

SOUTH BAY LUNCHEON San Jose Country Club San Jose, CA

OCT. 28

COACHELLA VALLEY BREAKFAST Classic Club Palm Desert, CA

OCT. 29

SAN DIEGO LUNCHEON Hilton San Diego Mission Valley, San Diego, CA

cacm.org | Vision Spring 2020

Know Your

Liability By Tony Angelo

Are you aware of the laws regarding associations and proper maintenance to avoid liability? From pests to water intrusion, there are several factors that impact common areas and are mandated to be maintained and treated. Make sure that the associations you manage are aware and meeting these obligations.

The Davis-Stirling Act of 1985 (Civil Code § 4780): Clarified that all condominiums and stock cooperative associations are responsible for the prompt, effective treatment of common area structures where “Wood Destroying Pests & Organisms” (termites, fungus & dry rot) are present, unless otherwise stated. Since the Davis-Stirling Act of 1985, Civil Code § 4780 has assumed the boundaries of the Structural Pest Control Act and the Business and Professions Code; the association is responsible for the treatment and repairs of common areas where there are Wood Destroying Organisms (WDO). The visual inspections should include the identification of termites, fungus and dry rot damage, as well as, repair recommendations and costs. Structural Pest Control Act (Section 8550): In Southern California most structural damage to wood and structures is caused from WDOs. For this purpose the Structural Pest Control Act was adopted. All structures are subject to the California Structural Pest Control Act. In order to perform inspections of structures for WDO, an individual must be licensed by the Structural Pest Control Board, Section 8550. State licensing authorizes a Structural Pest Control Operator to identify and issue recommendations for WDO reports and Notice of Completions with warranty for the required treatments and the structural repairs, which are required as a result of infestations and the damage to the structures from WDOs. Hazardous Conditions and Liability Exposure: Most damage caused to the wood of structures is from water intrusion (water in direct contact with wood) creating fungus conditions;

Vision Spring 2020 | cacm.org

fungus left undetected or uncorrected will lead to dry rot. Fungus is a living organism, and if permitted to advance to a dry rot stage, hazardous conditions will occur. Liability exposure exists when wood is structurally damaged and is required to be removed and replaced. When left undetected, it becomes a safety hazard condition to the public. Association common areas that become structurally damaged from WDOs can include decks, balconies, staircases, stair treads, handrails and roof sheathing. All wood exposed to the elements is susceptible to WDOs, causing possible hazardous conditions to occupants and liability exposure for the association. When repairs are performed, a common problem occurs in the industry: responsible parties contact a contractor/ consultant to perform repairs or prepare specifications for estimates of a reconstruction project. Neither the contractor nor the consultant are licensed by the Structural Pest Control Board and are considered by the Structural Pest Control Board State of California, as unqualified individuals. Specifications for reconstruction estimates should be generated from the findings of the Structural Pest Control reports. Unlicensed individuals are required to work in conjunction with a licensed Structural Pest Control Operator where WDOs are present. There are several reasons why reconstruction projects will require change orders from contractors to complete projects, and they will have “open end” contracts that could cost 30% to 50% more than original estimates. Contractors/consultants are not licensed to identify WDO. Contractors/consultants cannot

issue State of California required WDO reports, Notices of Completions, or issue warranties for work performed when WDOs are present. Contractors and consultants are not licensed to purchase or apply state registered termiticides or fungicides. Fungus / Dry Rot Treatment (Section 1991): Structural members, which appear to have only surface fungus damage, may be chemically treated and left (if only in the opinion of the inspector, the structural members will continue to perform the originally intended function). The structural members may not need to be replaced. When state required WDO reports are not issued by state licensed Structural Pest Control Operators with the proper identifications and warranties, where WDOs have created the damage and without state regulated termiticides and fungicides applied with proper recommendation to remove damage or reinforce damage to perform the originally intended function, this can create a safety hazard to the consumer and is a violation of the Structural Pest Control Act, Section 1991. Proper Certification or Guarantees: The primary purpose of the Davis-Stirling Act Civil Code § 4780, Structural Pest Control Act and the Business and Professions Code with respect to WDO infestations or infections is to ensure that property owners are protected from termites, fungus, and dry rot damage. The combined power of these three bodies of law requires that appropriate inspections, identifications, treatments and repairs shall be made to the structures by licensed and properly insured individuals. The property must be free and clear of all WDOs and only licensed Structural Pest Control Operators can issue certifications and warranties for the presence or absence of WDOs. It is essential that the responsible parties familiarize themselves with the provisions of the Davis-Stirling Act Civil Code § 4780, Structural Pest Control Act and the Business and Professions Code; these provisions directly define the responsible party’s obligations for Structural Pest Control, and will limit hazardous conditions to the consumer and reduce liability exposure for management.

Tony Angelo is the CEO/Owner and a Structural Pest Control Operator for Angelo Termite & Construction in Irvine.

cacm.org | Vision Spring 2020

A LEGISLATIVE SNAPSHOT OF 2020 From senior housing developments to solar energy systems and short-term rentals, a look at the bills that could impact HOAs in the coming months.

By Jennifer Wada, Esq.

ousing has been at the top of the

More specifically for community managers,

priority list for a number of years.

a number of CID-specific bills have been

Affordable housing, in particular,

introduced. Here is a snapshot of what is to come

has been much of the focus. This

(so far) this year:

year, homelessness has been declared by the Governor and many legislators as one of the most important issues facing our state. To combat this, the Governor has proposed an approach that includes emergency mobile housing trailers, streamlining hotel/motel conversions and pre-fab and tiny homes, making better use of unoccupied spaces to get homeless housing up as fast as possible and challenging all local governments to address their homeless populations with intentionality. It is likely that there is at least one bill on homelessness in most legislator bill packages for 2020. The result of all of this will surely be seen by community managers as the state looks to increase homeless housing and the housing stock in general.

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Assembly Bill 2503 (Rubio â&#x20AC;&#x201C; Senior Citizen Housing Developments) This bill would require the covenants, conditions and restrictions or other documents or written policy of a senior citizen housing development to permit a qualifying resident to share their dwelling unit with a qualified roommate pursuant to a lease or other written agreement. A qualified roommate is defined as a roommate, cohabitant, or co-occupant for companionship or caregiving with increased income. This bill would also require the development to allow the qualified roommate to continue to live in the unit upon death, dissolution of marriage, hospitalization or prolonged absence of the

Senate Bill 981 (Archuleta – Electronic Notice Delivery and Websites)

Assembly Bill 2700 (Friedman – Solar Energy Systems)

This bill is sponsored by the California

solar energy systems. Solar energy systems

Assembly Bill 2227 (Irwin – AB 2912 Cleanup/CID Funds: Insurance)

Association of Realtors and intends to do

include a structural design feature of a

two things: 1) Require all documents that

building. This bill would specify that a design

are currently delivered via individual delivery

This is a clean up bill to the CAI-sponsored

feature includes elevated solar structures,

or individual notice to be done via email

bill from 2018 (AB 2912, Chapter 396). AB

including carport and shade structures that

unless the owner opts-out (changing it from

2912, among other things, prohibited fund

support solar collectors or other solar energy

the current opt-in structure to an opt-out);

transfers greater than $10,000 or 5 percent

devices.

and 2) Require all associations over 50 units

of an association’s total combined reserve

to maintain a website. CAR states that in

and operating account deposits without

today’s day and age, most owners operate

prior written approval from the board. This

electronically and email would save time and

year’s AB 2227 would eliminate the 5 percent

money for associations, and websites will

provision so the restriction would only be

enhance access to information by owners.

on transfers $10,000 or greater. AB 2912

CAR states an intent to allow broad leeway

also required the association to maintain

for associations to choose the scope of the

fidelity bond coverage in an amount at

website content and to clarify that the site

least equal to the combined amount of

can be hosted on a management company’s

reserves and total assessments for three

website.

or offsite managerial capacity or role, on

also require crime and employee dishonesty

CACM is currently in the process of

appropriate training, consisting of at least

coverage to the existing fidelity insurance

negotiating with CAR on this bill and

requirement. Lastly, AB 2227 clarifies that

advocating that options, as opposed to

the funds the managing agent accepts or

mandates, are the best approach.

responding to complaints.

deposited into an account in a bank, savings

Other bills have been introduced that are

association or credit union that is insured by

relevant to community managers. These

Senate Bill 1049 (Local Ordinances: Short-Term Rentals)

the FDIC, NCUA, or the SIPC. CACM will be

include a number of bills on mobilehome

cosponsoring this bill with CAI this year.

park management, fire protection/home

qualifying resident as long as the qualified roommate is 55 years or older. This bill is being sponsored by the California Senior Legislature.

months. AB 2227 expands this provision to

receives on behalf of the association must be

Senate Bill 969 (Wieckowski – SB 323/Elections Cleanup) This bill would clean up provisions largely related to insurance issues in last year’s SB 323. As you’ll recall, last year, SB 323

hardening requirements, housing oversight, short-term rentals and other climate protection bills. Here are some that may be of interest:

Current law establishes solar easements for

Senate Bill 915 (Levya – Mobilehome Parks: Manager Training) This bill would require the Department of Housing and Community Development, by January 1, 2022, adopt regulations to require each person employed or acting under contract as an onsite manager or assistant manager, or otherwise acting in an onsite behalf of the mobilehome park to receive 18 hours per year, on among other topics, mobilehome rules and regulations and

This bill would authorize a city legislative body to impose a fine up to $5,000 for a violation of a short-term rental ordinance. The bill defines “short-term rental” as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform where the rental is advertised and payments for the rental are securely processed.

candidate running for the board for a prior

Assembly Bill 2506 (Irwin – State of California Housing Agency Act)

felony conviction in the event it compromised

This is the CAR’s second attempt at this bill. It

some bill language was being negotiated so

the association’s ability to maintain fidelity

would enact the State of California Housing

the final language is to be determined. This

coverage. CACM expressed serious concern

Agency Act and, as of July 1, 2021, would

summary is based off of the latest discussions

that the language was too narrow. SB 969

separate the Business, Consumer Services

as of the writing of this article.

intends to expand this provision to allow

and Housing Agency into the Business and

for a felony disqualification if any insurance

Consumer Services Agency and the Housing

coverage is compromised. At the time this

Agency. The Housing Agency would consist of

article was written, final language was to be

the Department of Housing and Community

determined. CACM has also been advocating

Development, the Department of Real Estate,

that this bill expand election by acclamation

the California Housing Finance Agency,

to all associations (not just those 6,000 units

the Homeless Coordinating and Financing

or more).

Council, the Tax Credit Allocation Committee

only allowed an association to disqualify a

*Note that at the time this article was written,

and the California Debt Limit Allocation Committee.

Jennifer Wada, Esq., is an Attorney, CACM’s Legislative Advocate and Principal of Wada Government Relations in Sacramento.

cacm.org | Vision Spring 2020

2019 member survey

SURVEY SAID By Lynette Bertrand, Communications Manager at CACM

CACM shares findings from the annual member survey.

Demographics Most members have a CCAM certification, are female, and manage multiple communities. Managers are also generally seasoned and mature, with about 30 percent in the 45-54 age group, 29 percent in the 55-64 age group, and 19 percent in the 35-44 age group. These were some of the findings from the 2019 CACM Member Survey conducted last September. The survey was sent via email to 1,868 manager members. CACM received 397 responses, or approximately 19 percent of manager membership participated and gave their opinions on various topics. The findings help CACM determine what we do well and what we can be doing better. It also informs CACMâ&#x20AC;&#x2122;s decisions on how to change events, courses, communications and member benefits. So what did CACM learn?

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What did CACM learn?

Demographics: Mature, female, multitasker

68.81%

31.19%

Gender

21 - 24 | 0.51%

Most managers are portfolio managers, with 55 percent of respondents identifying as part of this group. In second place is large scale managers at 21 percent and high rise at 9 percent, while the remaining managers said they lead new development, financial and active adult communities. Compared to previous years, the large scale specialty is growing, with more managers leading these communities than in the past while other specialties have more or less been stable.

FINANCIAL | 2.78% NEW DEVELOPMENT | 3.04%

25 - 34 | 9.41% 35 - 44 | 18.58% 45 - 54 | 29.77% 55 - 64 | 28.24% 65+ | 13.49%

Age

PORTFOLIO | 55.44%

ACTIVE ADULT | 3.54%

1 - 4 YEARS 26.21% 25+ YEARS 6.87%

to 31 percent males.

HIGH RISE | 9.11%

LARGE SCALE | 21.01%

Management Specialty

LESS THAN 1 YEAR 12.47%

11 - 15 YEARS 18.07%

5 -10 YEARS 22.90%

In addition, women continue to represent the lion’s share of community managers; 69 percent compared

16 - 24 YEARS 13.49%

Length of CACM membership

It’s a mature group of professionals with most (72 percent) over the age of 45. While this suggests that managers have plenty of life and work experience to serve them in their careers, it also indicates that the industry is not doing enough to recruit younger talent and this could potentially become a problem if there aren’t enough in the ranks as seasoned managers retire or leave the industry. Less than 10 percent of respondents were under 25 years old. This also suggests that community management is a field that often is a second or third career option for professionals, who began working in the industry later in life. Most managers have been with CACM for a long time: 38 percent for more than 10 years; 23 percent for 5-10 years; and 26 percent for 1-4 years. Only 12 percent have been with CACM for under a year.

Certification: Yep CACM has it! Most managers (88 percent) have obtained their CCAM certification and a great majority (68 percent) say their CCAM certification was highly beneficial to their careers. Those who have become CCAM certified make sure to keep it for years. About a quarter of managers who responded said they have been certified less than 10 years, another quarter less than 4 years, and 20 percent less than 15 years. Over 10 percent have been certified over 16 years. Besides CCAM certification, many managers continue their professional path by obtaining elevated specialty certification with 54 percent getting a portfolio certificate, 22 percent large scale specialty and 20 percent high rise specialty. Nearly 3 percent opted for the new development specialty certificate.

LARGE SCALE 23%

PORTFOLIO 55%

HIGH RISE 20%

NEW DEVELOPMENT 3%

Continues on page 32

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SURVEY SAID

Continued from page 31

What Matters On the top of the list of concerns for managers is having knowledge and an understanding of California-specific association issues—more than 90 percent of managers indicated this as a top priority in the survey. Managers also say ethics and complying with CACM’s code of ethics is important (86 percent). Managers value having resources and information needed to do their jobs (84 percent), and managers know they should be aware of relevant pending and enacted legislation (78 percent). Most managers (76 percent) also feel that management companies should provide resources to support their employees’ development. Managers rely on industry publications, trade groups, word of mouth and general media for information about industry trends and changes. CACM provides those resources to members in our Member Resources section on the website, as well as updates in our digital publications, Vision Magazine and the Law Journal.

Member Benefits: Cost Savings Tops the List

DISCOUNTS ON COURSES 58%

Managers point to the top benefits of being a CACM

LISTING IN THE YEARLY RESOURCE GUIDE 40%

member: discounts on courses (58 percent), listing in the yearly Resource Guide (40 percent) and

COMPLIMENTARY MARKETING BROCHURES 32%

complimentary marketing brochures (32 percent) they can share with clients to educate them on certification and what it means.

CACM’s Communication Efforts Most managers felt CACM is a good communicator, with 36 percent giving CACM excellent marks and another 47 percent giving CACM good ratings for a combined 83 percent. Members said e-communications (myCommunity newsletter and event e-blasts) and email updates from staff were the top preferred methods of

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E-COMMUNICATION

E-MAIL UPDATES FROM STAFF

VISION MAGAZINE

WEBSITE

LAW JOURNAL

MAILINGS

FACEBOOK

PHONE CALLS FROM STAFF

INSTAGRAM

TWITTER

communication, followed by Vision magazine, The Law Journal, and CACM’s website.

INDUSTRY BUSINESS NEWS

MEMBER BENEFIT SPOTLIGHTS

INFORMATION ON PRODUCTS, SERVICES AND CACM DISCOUNTS

Managers want to be in the know on whatâ&#x20AC;&#x2122;s happening in the industry and look to CACM to provide the latest news and information. Topping the list of what members want to know more about are industry trends, industry business news, and news on products, services and CACM discounts. Also important are advocacy efforts and member benefit spotlights. CACM hears you! CACM is working to stay on top of changes that are impacting the industry and communicating those with members through digital and print communications.

UPDATES ON CACM ADVOCACY EFFORTS

What Members Want to Know REPORTS ON BOARD AND COMMITTEE ACTIVITIES

INDUSTRY TRENDS

cacm.org | Vision Spring 2020

Fewer Hats RELYING ON ADDITIONAL STAFF AND COMPANY RESOURCES, AND WITH THE INCREASING USE OF TECHNOLOGY, COMMUNITY MANAGERS SEE THEIR ROLES AND TITLES CHANGING. By Sarah Touchi

In previous days, managers of a community association would be the accountants, mailroom recreation directors and so much more. We always joke that a manager wears many hats in our industry, but if you ask any manager, they will all nod their heads in agreement. The expectation of a manager to know the laws of the HOA, laws of California, plan a party and bring community together hasn’t changed. However, with the growth in masterplanned communities, community managers are becoming managers of a team and management companies are providing more back office support as well as onsite support. This is also due to the growth in technology. I’ve started to hear a new buzzword around the

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homeowner’s association industry – account

Managers who used to have many roles in the

some cases, managers are getting incentivized

executive and property consultants. We hear

community now have a team alongside them

to take on more clients. These consultants who

this title often when it comes to sales and

to help plan events, process architectural plans,

were able to manage more properties were

vendor relations. But I had never heard the

process checks and so much more. However,

more satisfied in their careers because they

title in community management. Sure, it has

this could all not be possible without the

were provided this opportunity.

a nice ring to it, but what does this title in the

increasing technology that the HOA industry

community management industry mean and

has started to provide.

how can we use this to elevate the community association industry?

The change we are seeing in management is not only for the large on-site communities and

Companies in California see the opportunity to

management companies. Due to the increase

allow their “property consultants” to focus on

in technology, any size management company

According to managers who have switched

managing by implementing software in areas

can take advantage of having additional back

their focus to becoming an account

such as accounts payable, the mail room, online

office support and providing efficiencies to

executive or property consultant, it means

portals and board member portals. More and

their community managers and staff.

managing board of directors expectations,

more management companies are becoming

reserve projects and building homeowner

transparent in providing online information to

relationships. Managers still need to know

eliminate phone calls and communicate with

the laws and still need to oversee the

their homeowners using technology. Utilizing

association, but we are starting to see a

a dedicated team to answer online chats,

shift in additional opportunities for a larger

emails and phone calls provides managers and

workforce. In California, we are known for our

consultants with the ability to focus on their

sunny skies and our large communities. These

communities.

communities can have anywhere from 500 to thousands of homes. One single person cannot

When asking a group of managers how this

manage that many homeowners, projects

title change has impacted their careers, they

and still provide community spirit. This offers

stated that it provided them with a higher

yet a new growth opportunity for a recreation

responsibility to their clients rather than

director and other opportunities.

juggling too many areas and responsibilities. In

Sarah Touchi is COO of Genevation, Inc. in Costa Mesa.

cacm.org | Vision Spring 2020

in the board room

Managers are an essential element of a wellrun HOA, and are recognized as a valued asset to the community. For some HOAs, the manager role is treated as an undesirable but necessary expense. As a board, your approach to managing the manager can make the difference between a struggling HOA or a well-run organization. How long has your current HOA manager been in place? The one before that? A revolving door of managers, or management companies, is an indicator of ineffective HOA operations. High turnover among managers and management companies are costly to the HOA in the long run. A trusted manager who knows the board, is very familiar with the property, and understands the needs of the members will be able to do their job far better than a newbie.

Vision Spring 2020 | cacm.org

Maximizing HOA Manager Effectiveness Setting realistic expectations, reviewing performance, encouraging teamwork, delegating, and minimizing burnout will ensure your association runs smoothly.

By Todd Greisen, CCAM

THE PERFORMANCE BENCHMARK Your manager has legal obligations under your management contract. Use that as a checklist to clarify what the manager should be doing, or not. All board members should have a good understanding of what is expected under your management agreement. Annual review of the contract can help distinguish between desired results and reality. Maybe it’s time for renegotiation. HOA managers often complain that boards ask more of them than their contracted responsibilities. An experienced manager will answer such a request with a “yes!” but a caveat will follow—“for an additional fee.” A less experienced manager may also respond with a “yes,” offering themselves as someone who goes the extra mile. To their own long-term detriment, they undervalue themselves when doing so. One request is likely to result in more to come. As a board, if you’re overdriving your manager without the reward they deserve, you’re being short-sighted, too. THE ROLE OF MANAGERS AND THE BOARD OF DIRECTORS Two roles are involved in managing the manager: your contracted management company and you—the board of directors. Before placing all the blame for mistakes and failures on the manager, or the management company, consider what you can do to make them both successful. You’re a team. Teams are made up of individuals. But individuals do not always make a team. Successful teams bring out the best in every person. HOA documents can’t force you to work well together as a board, or work well with your manager. To become a cohesive team, begin by setting your board titles aside. Yes, there are legal implications and obligations involved as president, treasurer or secretary of a board. But sometimes egos can surface with titles, impeding a spirit of teamwork. Although there may be good reason for it, a board president who controls all interaction with the manager may be limiting his or her effectiveness. All board members should have the opportunity to openly discuss management issues or concerns, at least during executive sessions.

Even though they are not voting members, an effective manager should be welcomed as an influencer with important decisions. Given this role, managers will be recognized as members of the team that runs a successful HOA. THE TEAM BEHIND THE MANAGER Your manager should be well-supported by the management company that hired them. An open line of communication with both will improve the effectiveness of your team, and be reflected as a well-run HOA. Depending on your contract, your HOA manager may have an in-house support team that includes accounting or maintenance functions. Can those team members field questions directly, instead of calling, emailing or texting your manager? Some boards and individual members are heavily involved in the day-to-day life of the community. That can be okay. Accountability is important. However, it becomes ineffective when the manager is micromanaged. It can be hard for some board members to let go, and risk the possibility of mistakes. It happens. We’re all human. So let’s be frank. Some of us are control freaks. It’s your money (HOA assessments) after all, right? Managers cannot blossom to their full potential when they are micromanaged. Try to let go–just a little. BLAME-GAME BURNOUT Remember, it’s not just the board. Managers also field calls, emails and text requests directly from member owners. Oh, and those all happen with the HOA’s contracted vendors, too. Is there on-site staff to be managed as well? The workload grows exponentially.

time available to serve your HOA? • Would an onsite manager better serve the HOA, compared to a portfolio manager? • Is additional staff needed? • Can some tasks be outsourced? Work with your management company to assist in completing a work/time analysis. TACTICS FOR MANAGER EFFECTIVENESS At least once per year, invite the entire staff of the management company for a meet-and-greet with the board. Or provide time on an upcoming meeting agenda for personal introductions to staff members. This minimizes trust issues by putting a name with a face of people to contact regarding specific needs. Use technology. So much is available online and on smartphones. Sure, nothing beats a conversation with a live person, but simple inquiries and information can be found without bogging down the manager. For example, can work order requests be submitted directly into the HOA’s management software? A Frequently Asked Questions (FAQ) page on your HOA website can answer questions to minimize emails and phone calls to the manager. Have a section that answers frequent questions from realtors, as well. Have forms and often requested documents available on the website to streamline workload. Billing inquiries and statement requests can be handled behind secure firewalls. Onsite managers may have improved effectiveness by limiting office hours. A steady stream of residents coming in can interfere with progress of other necessary tasks.

If member complaints are on the rise, if projects and assigned tasks continually remain incomplete, if deadlines are often missed, is all the blame on your manager? Maybe, but are you utilizing them effectively? We’ve all experienced it at some point: burnout. It’s something that happens to HOA managers all too often. So ask yourself these questions: • Is the workload commensurate with

Todd Greisen, CCAM, is General Manager of Contra Loma Estates in Antioch, California. cacm.org | Vision Spring 2020

Will robots take over our jobs? The short answer is no. But customer desires and demands will change and we will need to adapt to thrive.

By Clint McClure, CAMEx, CCAM

Vision Spring 2020 | cacm.org

Recent advancements in artificial intelligence, blockchain, and the Internet of Things (IoT) lead minds to brace with the idea of computers and robots replacing jobs. Human-robot managers on compliance walks and robots as administrators? Rest assured U.S. Bureau of Labor Statistics projects growth by 2024 of management occupations by 5.5%, office and administrative support occupations by 2% and business and financial operations occupations by 8.4%. The need for managers, accountants, and administration will be in demand as long as there are humans. The question is, what will we need to be able to do? The customer desires and demands are driving these changes. So which tech advancements will have the most significant impact on our industry? What do you need to know to be ahead of the curve? The customer has changed. Expectations of communication, follow up, and personalization have advanced. That contact has historically been in the form of voice calls, paper mailings and email. The customer is now expecting text, chat, and advanced prediction phone services. They expect to have the person who picks up the phone know who is on the other line, when they called in last and what was accomplished. They expect to be in the loop on items affecting them. Technologies are centered around making people-focused business applications that meet the customer where they want to be. “These trends have a profound impact on the people and the spaces they inhabit,” says David Cearley, Gartner Distinguished VP Analyst. “Rather than building a technology stack and then exploring the potential applications, organizations must consider the business and human context first.” A technology stack is the combination of multiple technologies to create a complete experience. Each of the concepts listed requires other technologies working in sync to leverage their best potential. Here are five tech trends that could affect managers’ jobs in the coming years.

Omnichannel Omni-channel communication is the concept of connecting the company to the customer in all ways possible. Allowing the customer to communicate in the method they prefer and ensuring all records share a single point of truth. The customer may not use all channels, which is OK. The point is to provide options to increase the speed and accuracy of information shared with all endpoints.

Blockchain Blockchain, according to Wikipedia, is a growing list of records called blocks that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Think of a chain of blocks. Each block contains a group of information and a link to the next block. Each time one block is updated, they are all updated, chronologically. Because they are separate data blocks, the information on them cannot be changed. New information can be added as a new record. Blockchain allows tracing back to the original file record and every record in between with the confidence that a record cannot be altered. The complexity and layering of these uneditable blocks of information create a historical fabric of knowledge. Blockchain has been the basis of modern banking for some time, long before it was popular due to cryptocurrency. Blockchain will more and more be used in databases to keep accurate records, update many different parties to a transaction or event, and fundamentally speed up the process of documentation. Due to the segmented blocks of information, it is excellent for many groups that may not inherently trust each other. Still, they can believe the information they are getting since they know it cannot be edited. Blockchain has many beneficial uses in association management: vendor integrations, work orders, financial records and compliance inspections. However, the current form of “Blockchain remains immature for enterprise deployments due to a range of technical issues, including poor scalability and interoperability.” For use in today’s businesses to “implement only some of the elements of a complete blockchain by making the ledger independent of individual applications and participants and replicating the ledger across a distributed network to create an authoritative record of significant events.” Thereby allowing everyone with access to see “the same information, and integration is simplified by having

a single shared blockchain.” Gartner, in their recent book The Real Business of Blockchain, states, “Blockchain, which is already appearing in experimental and small-scope projects, will be fully scalable by 2023.”

Hyperautomation Hyperautomation is the combination of advanced technologies to allow for the ability to automate tasks that once required humans. Businesses are combining artificial intelligence and machine learning to automate workflows. The combination of various tools is the key to attempting to replace humans in a workflow. Hyperautomation results in the creation of a ‘digital twin’: a self-sufficient bot that can conduct a range of sophisticated human tasks, often under pressured environments. What if you could see the customer experience before it happens? Hyperautomation is paving the way for visualization of workflows and seeing and feeling what the customer will experience when contacting a business. Acceptance of hyperautomation requires a mindset shift to people-centered systems where humans get to spend time helping other humans. The technology does the tedious data documentation, speeding up the rate at which we can accomplish the basics, and freeing up time for focused customer interactions and fundamentally more productive businesses. Hyperautomation will not replace humans; instead, it will sophisticate business intelligence and improve the work humans can accomplish.

Internet of Things (IoT) Our lives have forever changed with the Internet of Things (IoT). We can see who is at our front door from our phone or computer or ask Alexa or Google to open our blinds, turn off lights, or set the security system. IoT has influenced most industries and will continue to connect systems and advance society. Every object you touch in a day has the potential to be connected to a system with IoT. As more everyday items connect to systems and each other, the fabric of information systems that aid our lives will become even greater. For our industry, the benefit will be as vendors begin to deploy more IoT and get information back to the information framework. Managers and administrators will be able to have a pulse on all elements in a community. IoT is already active in smart watering systems and tree inventories. To see the potential in these areas, boards will need to understand the benefit of IoT to want to put IoT hardware in the community. How they feel about IoT is linked to popular opinion, which is growing with IoT acceptance year by year. Continues on page 40 cacm.org | Vision Spring 2020

Will robots take over our jobs? Continued from page 39

Mobile-First Mobile-first is the concept and acceptance that use of mobile devices will, on average, supersede the use of computers. Mobile-first is not a new idea. What is new? Software developers realize that we all connect via many different interfaces. Employees are no longer only sitting behind a computer to do work; they are using mobile and computers depending on the accessibility required. Developers will be looking more and more to increase productivity for employee systems by coding for mobile with a people-centric design.

Some companies are even adopting systems that built first for mobile before being developed for computers. In the coming years, business leaders will likely be taking a mobile-too if not a mobile-first approach for employees to improve speed, connectivity, and flexibility. Association management has long been behind the times in technology advancement. However, by teaming up the tech above, our industry will be able to meet the demands of the customer and genuinely exceed their expectations. As members of this changing environment, the

people-centric software of the future will make it easier to learn systems and focus on the customer. Industry leaders will need to focus on methods that put the customer first and have intuitive interfaces for employees to learn. Investing in employees is the heart and soul of this success. The management industry is only growing in need. We will be able to do more in less time and truly put the customer, be it board member or homeowner, first.

Referenced Materials: 1. https://www.bls.gov/opub/mlr/2015/article/occupational-employment-projections-to-2024.htm 2. https://www.gartner.com/smarterwithgartner/gartner-top-10-strategic-technology-trends-for-2020/ 3. https://en.wikipedia.org/wiki/Blockchain 4. https://www.datapine.com/blog/technology-buzzwords/ Clint McClure, CAMEx, CCAM is President and CEO of MMI â&#x20AC;&#x201C; McClure Management Inc.

Vision Spring 2020 | cacm.org

achieving professional excellence

Congratulations Managers It is with great pride that we recognize managers who have taken the next step in their professional career by pursuing advanced educational opportunities. Congratulations to our newest Certified Community Association Manager (CCAM), Community Association Financial Management (CAFM) and Specialty Certificate recipients for 10/1/19 through 2/29/20.

NEW CCAMs

Heather D. Konopa, CCAM

Brianna J. Stoecklein, CCAM

Sirha J. Aboali, CCAM

Lindsey Ladd, CCAM

Jamie M. Sussman, CCAM

Monica M. Alejos, CCAM

Stacia Lange, CCAM

Dorothy Thomas, CCAM

Christina V. Bocock, CCAM

Christina Lange, CCAM

Sarah S. Tramp, CCAM

Kitt Boodsayaskul, CCAM

Portia J. Latawiec, CCAM

Jennifer M. Turrietta, CCAM

Jeanette L. Brown-Watkins, CCAM

Bo L. Lee, CCAM

Doris R. Urbina, CCAM

Jamie E. Bryant, CCAM

Jennifer N. Leonhart, CCAM

Elissa T. Caruso, CCAM

Michelle Lewis, CCAM

NEW CAFMs

Daniel S. Carvo, CCAM

Kelly L. MacInnis, CCAM

Gary R. Fessenden, CCAM, CAFM

Trisha Conte, CCAM, CAFM

Daniel Magier-Kayse, CCAM

Kristina Gritskevich, CAFM

Maureen Coobatis, CCAM

Shaun Martin, CCAM

Michele Parenteau, CCAM, CAFM

Kathryn J. Coordt, CCAM

Eleanora Martino, CCAM

Daniela M. Schwan, CAFM

John A. Cruz, CCAM

Michelle Mata, CCAM

Tanya Daly, CCAM

Shawna E. Mathews, CCAM

Amber K. Davila, CCAM

Shari L. May, CCAM

SPECIALTY CERTIFICATES

Mary T. Day, CCAM

Crystal R. McGinnis, CCAM

PORTFOLIO MGMT

Karina A. Degtyareva, CCAM

Carlos R. Melgar, CCAM, CAFM

Brian S. Didier, CCAM

Brianna R. Miers, CCAM

Jill Farrell, CCAM

Nicole M. Mulvany, CCAM

HIGH RISE

Janet Felix, CCAM

Karen Marie Otter, CCAM

Lisa Lynn, CCAM-LS.HR

Charles R. Flint, CCAM

Heather S. Persons, CCAM

Robert Sides, CCAM-HR

Mary Garcia, CCAM

Scott S. Randall, CCAM

Erika Taylor, CCAM-HR

Dawn M. Greenwell, CCAM

Alicia M. Roman, CCAM

Janet L. Hammer, CCAM

Michelle L. Roy, CCAM

Mimi Hood, CCAM

Michael Sabella, CCAM

Christina French, CCAM-LS

E.J. Jarvis, CCAM

James Salas, CCAM

Dorene Schiavone, CCAM-LS

Robin M. Jeu, CCAM

Maria Saracay, CCAM

Patricia Jones, CCAM

Brenda Schmalenbach, CCAM

Terri D. Jones, CCAM

Peter Shahinian, CCAM

ADJUNCT DESIGNATIONS

Adriana N. Kieper, CCAM

Shelley Skaggs, CCAM

ACTIVE ADULT

Charles L. Knapp McGrath, CCAM

Jessica M. Stewart, CCAM

Jennifer Treff, CCAM-PM.AA

LARGE SCALE

Jennifer Treff, CCAM-PM.AA

cacm.org | Vision Spring 2020

SAME FISH, NEW POND Your management company was purchased. Now what? By Lori R. Storm, CAMEx, CCAM

The first thing that goes through your mind when you think of industry growth may be gaining new clients through new development. Maybe you think about dissatisfied clients moving their business from one management company to another. But there is another shift in our industry that can be an opportunity for growth â&#x20AC;&#x201C; business sales and acquisitions. The industry is at a point in its history where there are quite a number of small to medium-sized HOA management companies started by an individual who is looking toward

Vision Spring 2020 | cacm.org

the next chapter. You may run into any number of these entrepreneurs at your next industry event, those who decided to open their own business for any number of reasons. I meet individuals who manage six to nine associations on their own, as well as people who are a part of businesses that employ between three and 20 people. I certainly meet my share of these owners: owners who have established a great small business, but are starting to think about succession planning. For many of these owners, no family member wants to take

over the business. Even if they have a potential replacement within their organization, the financial resources might not exist among staff to purchase the assets of the company. This means that owners looking to leave the business start to look at others in the industry who may want to expand their customer base. Often it is the larger companies that have the financial resources to be able to take on an existing business. Anyone who works for a smaller-sized operation may face just this situation in the coming years. I worked for a family-owned business for seven years in mid-level management when the owner announced he was selling to a national company. The very first reaction most of the employees had, understandably was, “What will happen to me?” I remember the feeling that the earth was shifting beneath me and I could not stop it. This is a very apt way of looking at just such a scenario. Without my consent, I was forced to start a new job with a new company, one I had not interviewed with and, in my case, a company I knew nothing about. I was tossed from a business model and a company culture that I was familiar with into a place where I had no background or understanding of the structure or philosophy of the new owner. The only thing I did know was how to do my old job. It becomes more and more likely that there will be a number of times in your career that you will change employers, sometimes intentionally, other times for reasons beyond your control. Our world is no longer one of those places that has opportunities to spend your working life under one company’s roof. Change is stressful, and there are people who navigate the changes more easily than others. The same is true for people in these changing roles. Let’s look at

some of the ways we, as management professionals, can weather these types of changes.

Unless you were raised by a community association manager who told you that you must follow in her or his footsteps, where you are now is a product of changes in your outlook and mindset. First, take stock of what is changing and what seems to remain steady during such a change. Those leaders who work to ensure as much continuity as possible report a better outcome for the business and the staff. As an employee, seek to understand and evaluate. Human beings under stress tend to retreat and resist. Try to take this opportunity to look around your new environment to see if you can identify those people, systems and technology that could provide positive change and growth for you. Will this change provide you with a new perspective into industry practices? Could new job growth possibilities be a part of the new company? Alternately, maybe you have insights to share with the new employer about best practices or regional clientele that would be valuable to them. Don’t be hesitant to share specialized knowledge that could help the new company adapt to your clients. You can be a valuable resource during this change. Next, try to remember that everyone involved is stressed in one way or another. I was talking to a business owner who has gone through acquiring a smaller business twice in his career. He talked of the challenges experienced by the new employees as well as the new clients. But, interestingly, he spoke about the stresses

that his existing employees endured as well. His current staff were tasked with converting databases and financial systems of the acquisition, finding time to train and support a large number of employees and clients at the same time. No matter which side of the equation you are on, reach out to others for support. You may be a person who is more comfortable with change. Be a resource for others who are feeling less certain. Or, if you are someone who finds such a change daunting, ask coworkers who seem to be sailing along for help. Ultimately, it is in everyone’s best interest to have a successful transition, so do not hesitate to approach others with thoughtful questions and innovative solutions. But most of all, remember to practice additional self-care during this time. Take breaks away from your desk, reduce caffeine intake, get as much sleep and exercise as you can. Micro breaks during the day might include standing and walking through the office, closing your eyes and stretching for brief periods. Even if you don’t feel especially stressed, big changes are taxing to your body and mind. Change is always challenging, whether you have made the choice or just find change at your doorstep. Unless you were raised by a community association manager who told you that you must follow in her or his footsteps, where you are now is a product of changes in your outlook and mindset. If you ever find yourself in this situation, do your very best to see it for what it is, an opportunity to learn something new about you and the work world around you. Good luck!

Lori R. Storm, CAMEx, CCAM, is Division Vice President of Client Development at The Management Trust. cacm.org | Vision Spring 2020

maintaining high standards

New Individual Manager & Management Company Members

CACM members further their success in the industry and benefit by partnering with colleagues to share new ideas and best practices. Please join us in welcoming these members from the fourth quarter, from September 1 - December 31, 2019.

NEW PRO MANAGER MEMBERS

Lisa Miller Ralph Morgan

PRO PLUS MANAGER MEMBERS

Brian Allen

Nicole Mulvany, CCAM

Kathleen Bellows

Robert Muratalla

Josh Blair

Rabecca Murray

Ernie Bryan

Kevin Nguyen

Chris Cabahug

Devon Nichols

Stefan Calic

Alena Norman

El Cajon | 619) 593-3620

Miao Chuang

Eugene Osipov

www.thegoldengirlsatmpmrealty.com

Jennifer Crocker

Christine Padilla Ramirez

Mireya Cruz

Tracey Padmore

Andrew Dentremont

Marissa Pangelina

Tesla Dubois

Jessica Pantel

Nina Ebrahimi

Larry Perna

Bakersfield | (661) 588-3283

Irma Garcia-Ray

Alexander Pineda

www.frontierres.com

Reema Hawartheh

Tara Pinkela

Ryan Huerta

Angela Pritchett

Golden Rain Foundation

Annette Imoto

Lisa Purchard

Walnut Creek | (925) 988-7660

Kelley Jensen

Amanda Ramos

www.rossmoor.com

Terri Jones, CCAM

Josh Ranowsky

Loit Kaskla

Veronica Rodriguez

Adriana Kieper, CCAM

Grace Romero

Scott Knoeb

Debbie Sant, CCAM

Karen Kruth

Crystal Santana Nova

Gina La Mora

Amanda Schmalenbach

Michelle Lambert

Erica Scott

Christina Lange, CCAM

Salina Silva

Tiffany Le

Kierstin Slusher

Lucy Limon

Holly Smith

Each member of CACM plays a key role in

Michelle Lopez

Gary SuanDumlao

ensuring our industry is filled with knowledgeable

Jeffrey Machado

Kris Trathen

Daniel Magier-Kayse, CCAM

Doris Urbina, CCAM

important role it plays in elevating your profile

Lucy Manzo

Kim Von Striver

within the industry. You are a change agent for

Shaun Martin, CCAM

Dean Wendland

Jamie Marzion

Cassidy Wicks

Julie Matthews

Ann Yager

Crystal McGinnis, CCAM

Tina Ying

Vision Spring 2020 | cacm.org

Alicia Harnitz Candice Hernandez

NEW BUSINESS MEMBERS The Golden Girls at MPM Realty

NEW BUSINESS PLUS MEMBERS Frontier Real Estate Services, Inc.

Thank You for Your Membership!

and professional service providers. We thank you for recognizing the value of CACM and the

the HOAs you serve! Together, we are making a difference in the lives of 15 million California homeowners. Now thatâ&#x20AC;&#x2122;s something to be proud of!

cacm.org | Vision Spring 2020

Millennials & HOAs A first-time buyer may need a little more education on the perks, not just rules, of buying into a planned community. By Laurisa Ehlers, CCAM

Vision Spring 2020 | cacm.org

Why should I let someone tell me what I can do with MY property? Why do I pay these assessments? What am I really getting for my money? What is the HOA good for? Who is this board of directors that gets to tell me what I can or cannot do? You may have heard these questions, or variations of these questions, many times throughout your career in the community management field, often coupled with some questionable language. Many of you know most of the answers, but many first-time homeowners don’t realize what they are buying into when they purchase a home in a Common Interest Development. Here are just a few of the many benefits of living in an association, many of which are highly attractive to the millennial looking to purchase their first home. ARCHITECTURAL CONTROL/RULES AND REGULATIONS I’ve heard it said more times than I can count that one of the greatest benefits of living in an association are the Architectural Guidelines and Rules and Regulations to which each owner must adhere. Gone are the days of “that one house” on your street with the neon green paint and the “artsy” rock sculpture in the front yard. Gone is the ability to plant (or, in many cases, not plant) whatever your heart desires. No longer do neighbors have to put up with broken garage doors, hanging shutters, and hoses strewn about on the front lawn, not to mention inoperable vehicles. While some may be frustrated by the feeling that this eliminates options for personal expression, most homeowners appreciate the consistency this creates throughout their neighborhood and, in many cases, this ensures property values remain high, which ultimately helps to protect individual investments.

AMENITIES NOT AFFORDABLE TO INDIVIDUAL OWNERS In many cases, living in a planned community brings with it the ability to access common area amenities such as a pool, jacuzzi, gym, putting green, tot lot, clubhouse, sauna, and tennis courts, just to name a few. These amenities, while desirable to many homeowners, may also be significantly expensive wish list items that would never be realized if each owner had to pay to have them installed on their individual property. The monthly assessments paid to the association allow for enjoyment of common area amenities without the initial large expense. In addition, the association pays for maintenance and repairs of these

fall festivals, holiday parties, and even community garage sales. In addition, management companies often have staff who will help facilitate these events so the homeowners don’t have to. The ability to use common areas and clubhouses also adds a benefit to these events. In these busy times, creating a sense of community is really important to many homeowners and having events like these really helps to create that type of friendly environment.

components, so individual owners do not have to add this to their to-do lists or find contractors who are able to complete this work.

as regular landscape maintenance, roofing inspections, regular pest control, routine exterior inspections, and a regular schedule for things like painting and repairs, also contribute to keeping property values high. Property values fluctuate for many reasons; however, making sure associations take great care in the noted repairs and replacements and also offer desirable amenities really does help to protect property values and what is likely a person’s greatest individual investment.

SHARED RESPONSIBILITY AND “SAVINGS” FOR RESERVE EXPENSES Along the same lines as the enjoyment of common area amenities at a reduced overall monthly cost in lieu of a large lump sum, in many cases the association also acts as a “savings account” of sorts for future large expenditures by establishing reserve accounts for things like roof replacements, exterior painting, wrought iron and wood repairs, entry gates, pool re-plastering, and pool furniture, again just to name a few. These are all repairs or replacements individual owners would have to save for if they were solely responsible. In addition, all owners are responsible for their share of the contribution to the “savings”, so there are more people to share the burden of the expenses. COMMUNITY EVENTS While many non-association neighborhoods have a neighborhood BBQ or block party from time to time, people often feel disconnected from their neighbors when they don’t live in an association. Associations often provide regular community events such as pancake socials, fourth of July BBQs,

INCREASED PROPERTY VALUES Many of the items already noted go a long way toward protecting and increasing property values. In addition, services provided by licensed contractors such

At the end of the day, are you possibly giving up some of your personal freedoms to live in an association? Sure. That being said, many believe the benefits far outweigh any personal sacrifice. So next time someone asks you just what they are getting for their monthly assessments, be sure to remind them of all of this.

Laurisa Ehlers, CCAM, is Vice President of Marketing and Communications and Property Management Specialist at Harvest Landscape Enterprises, Inc. cacm.org | Vision Spring 2020

Setting the Groundwork for

Healthy Relationships Integrity, transparency and consistency are key elements in building trust with your board, homeowners, staff and vendors. By Hamlet Vazquez, MCAM-HR

hen was the last time you made a recommendation to

– integrity, transparency and consistency. Simply put, having

your board and they accepted it without questioning

integrity is about doing the right thing. While some may try to

your motives or facts? When was the last time you told

philosophize and question whether we really know what is ‘right’

a homeowner that the reason they were not getting consistent hot

and what is ‘wrong’ in a pluralistic world, the fact of the matter is

water to their shower was because of a bad shower valve, and they

that we all know that using petty cash for personal items is wrong;

believed you? When was the last time you performed a corrective

that lying to a homeowner about the cause of their low hot water

action with a staff member, and they trusted that you did so because

pressure is wrong; that performing a corrective action because you

you want them to succeed? If you can readily think of events like this,

want to build a ‘case’ against that staff member you dislike, is wrong.

then you should be congratulated for achieving the most important element to successful management – trust in relationships.

What about situations that are not so crystal clear? How does one build and maintain trust when the ‘right’ decision is not so clear?

There is no shortcut to building trust, but thankfully, it’s also not a

This is where the second element of trust comes in – transparency.

complicated pursuit. If you want your board, your owners, your staff and your vendors to trust you, here’s how to do it.

When faced with a decision that is unclear, you need to build the reputation of being someone who is transparent about the dilemma

There are three elements to building trust in all of your relationships

Vision Spring 2020 | cacm.org

and seek counsel. Not necessarily from your general counsel, but

from fellow team members. If you are

about the decision? Can you show that the

the previous 10-plus years can be destroyed

faced with a moral dilemma such as trying

board and management sought input from

in an instant.

to decide if you should inform the board

owners? This is the kind of transparency that

president that her husband has been

builds trust. Closed-door meetings, a small

While there is no shortcut to building trust,

making your assistant feel uncomfortable,

‘in-the-know’ group of owners and defensive

unfortunately there are plenty of shortcuts

do you ignore the situation and hope it

boards are a surefire way to erode trust.

to destroying it. Next time the thought ‘no

goes away, or do you seek counsel? Seeking

one will know’ crosses your mind, know

counsel will engender trust; ignoring

that you have taken the first step toward

the issue will erode trust. Why? Because everything will eventually come to light and everyone will want to know how you acted in the midst of the alleged ‘dilemma.’ Why alleged? Because by then it will be clear to everyone how you should have acted and the only question will be whether you were transparent or tried to hide what was going on.

There is no shortcut to building trust, unfortunately there are plenty of shortcuts to destroying it.

becoming untrustworthy (i.e. not worthy of trust). If you remember anything from this article, remember this: You cannot let your guard down when it comes to acting with integrity and transparency. Your board, your homeowners, your vendors and your staff will thank you for maintaining the trust that you have built over the years with them.

Another aspect of transparency is clearly communicating decisions that are made,

Lastly, you will not be able to build trust,

including the process that was followed.

even if you demonstrate integrity and

When, in the midst of a major remodel, a

transparency, if you don’t have consistency.

homeowner accuses management and

There needs to be consistency in your

the board of not informing owners of the

actions. To demonstrate just how important

‘radical’ color changes, can you point to

consistency is, think about how many

various communications – written and town

incidents it takes to destroy trust. Five?

hall meetings – to demonstrate that the

Three? One? Yes, all it takes is one significant

board and management were transparent

event and the trust that you have built over

Hamlet Vazquez, MCAM-HR, is a General Manager with Action Property Management, ACMC.

cacm.org | Vision Spring 2020

REMOTE SUCCESS Technology makes working from home easier than ever. Here are some best practices for managers and companies responding to the need to telecommute. By Andrew Hay, CAMEx, CCAM-ND.PM

Advances in technology have made working from home easier than ever and many management companies are offering this as an option for their employees to improve efficiencies, cut costs and add benefits for quality team members. As demand for our time increases and margins are squeezed, managers and management companies are looking for ways to maximize the workday and provide benefits to employees that go beyond general compensation.

Vision Spring 2020 | cacm.org

This does not come without its challenges

STAY CONNECTED

to both management companies and

While some professionals in our industry work purely from home or at an off-site property, many others are on a modified schedule that allows them to work from home 2-3 days a week and work in the office the remainder of the time. This allows them some of the benefits of working from home, but also ensures they get time to speak with support and supervisory staff each week. If you do not have this option, there’s always happy hour or industry networking events put on by CACM.

managers. How do you create and sustain company culture? How can you be sure your employees are getting the job done? What measures need to be taken to ensure company policies and procedures are followed? How do you stay connected with your support and supervisory staff? How do you avoid the 24-hour workday that can sometimes plague those who work from home?

VIDEO CONFERENCE MEETINGS Zoom video conferencing, GotoMeetings, webinars and Skype are just a few of the options companies use to connect their employees with each other through more than just a keyboard or phone. We do enough communication with our boards, homeowners, and vendors through verbal/written communications and a periodic video conference can really help boost the team. Remember, 70-93% of all communication is non-verbal.

PERFORMANCE MEASUREMENT It’s nice to think that every one of our managers is working as hard as they possibly can, but how can we be sure? There are many software options out there, but here are a few that we know management companies use to track their work: TOPS, Appfolio, VMS, Salesforce and Yardi. Additionally, some management companies have begun to develop proprietary software to strictly use or to supplement with some of the aforementioned programs.

ENGAGE AND RESPOND Managers who work from home or remotely should take extra care to be responsive. A simple ‘got it’ or ‘I’m looking into it’ can go a long way to instilling confidence in those you work with or for that you aren’t off grocery shopping or binge-watching Game of Thrones when work needs to be done.

AVOIDING THE 24-HOUR WORK DAY While not unique to the management industry, all those who work from home must find a proper way to disconnect from work. Dedicating a workspace where work, and only work, gets done (and then staying out of this space when work is over) is important for managers to sustain success in a work from home arrangement. There’s added risk in our industry, because as soon as we start to respond to clients via email late at night or make a phone call to a homeowner in the late evening, we begin to set the expectation that non-emergency items will be handled any time they come up. Servicing the client is important, but sometimes the response can wait until tomorrow.

Many people find that they are more effective and can get more work completed when working from home in some fashion. There is relief knowing there isn’t a long commute to or from work, taking additional hours from quality time spent at home. Managers and management companies must be cognizant of the team effort it takes to make that arrangement work and apply what works best for their company culture and client needs. In a competitive workforce environment, a quality manager is worth more than their weight in gold, and working from home is just one of many ways to add value and show appreciation to those who have earned it.

ON CAMPUS TRAINING Complete company training on campus instead of through pre-recorded training sessions, memos, or teleconferences. Entice managers to attend in person by offering more than just policy and procedure training. Look into leadership and conflict resolution courses, or other transferable skill training sessions to keep the staff actively engaged and looking forward to their next visit to the office. You could also volunteer your office for a CACM training and invite your managers and support staff to start or continue their education with the added benefit of being in a familiar place.

Andrew Hay, CAMEx, CCAM-ND.PM is Chief Operating Officer at The Helsing Group, Inc.

cacm.org | Vision Spring 2020

BEWARE: DECEPTION FRAUD ATTACKS

The latest cyber threat to companies and individuals can cost you thousands. Here’s how to prevent loss.

Deception fraud is a form of social engineering that is impacting even the best-managed small to large companies. Unsuspecting employees are being intentionally misled into sending money or diverting payment to imposters. They are misled by fraudulent information received in an email, text, instant message, telephone or other electronic means that appears to be from a legitimate vendor, client or even a fellow employee. Deception fraud is highly sophisticated, surprisingly successful and difficult to detect. These fraudsters play on the desire of most people to trust, and company policy to be helpful. The fact that an employee voluntarily sends the money to an imposter makes this a new type of loss and demands the need for new precautions and additional insurance coverage. Let’s look at some claim scenarios that will help you better understand the exposures.

By Ané Agostini

Vision Spring 2020 | cacm.org

• Legitimate vendor emails an invoice for $50,000 for services performed at an HOA. A second email is received with email instructions to send the payment to a new bank account in the name of a supposedly different company related to the vendor. The payment is wired as requested to the new bank account. Deception fraud is discovered when the legitimate vendor never receives the payment.

• A management company is processing a $75,000 HOA special assessment per homeowner. Mistakenly, an ACH of $150,000 is pulled from one homeowner’s bank account. The error is acknowledged by the management company, which proceeds to wire transfer $75,000 back into the homeowner’s account. An email is received from the homeowner with wire transfer instructions, and $75,000 is wire transferred based on the email instructions. When the funds do not arrive in the homeowner’s account it is then that deception fraud is discovered. • A management company’s VP receives an email forwarded by the company treasurer. The email instructs the VP to wire transfer $100,000 to the banking instructions listed in the email. It also includes an attached email from the CEO with specific instructions on how to make the transfer. The VP requested additional backup confirmation from the treasurer and was advised that he should use the CEO’s email as authorization. The VP’s assistant makes the transfer and both the VP and treasurer become victims of deception fraud. Claims like this are currently happening in our industry. There are more than 100,000 deception fraud attacks each day. Attacks on businesses have risen 91% over the prior year.

Key employees with access privileges, banking information, computer system details or wire transfer authority are most at risk of being targeted. Insurance coverage is available for this type of exposure and it’s strongly recommend that management companies purchase a minimum of $100,000 in deception fraud coverage, which can be added to a broad form Fidelity Insurance policy. The limit of coverage should be determined by the potential maximum amount of an ACH or wire transfer transaction. Remember, Computer Fraud & Funds Transfer coverage does not cover deception fraud, only theft of funds electronically by a third party. Because there is very little in the way of anti-deception technology available for these types of deception and phishing related events, it is important for a management company to establish strong internal controls. Some examples include:

• Provide anti-fraud training inclusive of how to detect deception fraud schemes. • Authenticate all requested changes to vendor or customer internal bank information. • Validate requests from vendors and clients with a “call back” procedure to an individual authorized to make such requests and to a previously established number. • Require next level supervisor sign off on any changes to vendor or client information. • Validate all internal employee requests to transfer funds. • Limit wire transfer authority to specific employees. • Consider conducting third-party penetration testing. • Guard against unauthorized physical access. • Monitor use of social media outlets. • Develop incident reporting and tracking programs that document incidents or attempts of deception fraud. It’s important to stay current with the latest types of deception fraud that are prevalent and educate employees on how to recognize an attack. Working with a proactive IT service that monitors your cyber security software regularly and can also provide preventive training for employees is very important. Ané Agostini is Chief Executive Officer of CID Insurance Programs, Inc.

cacm.org | Vision Spring 2020

The Nitty Gritty on New Accounting Rules New standard changes the look of associationâ&#x20AC;&#x2122;s CPA-prepared financial statements. By John Bellitto, CPA and David Levy, CPA

New presentation rules (FASB ASC 606)

[CPA] review in accordance with GAAP

are required for association year-end

if gross income (billed assessments and

statements beginning with December

other income) exceeds $75,000 in any

31, 2019. The new rules were crafted to

year, unless the associationâ&#x20AC;&#x2122;s governing

ensure that all CPA-prepared financial

documents impose a more stringent

statements, regardless of the type of

standard (i.e. an audit).

organization or industry, report revenues the same way.

The new standard observes the longheld accounting principle of matching

This new accounting standard, set forth

revenues with expenses in the same

by the Financial Accounting Standards

time period by limiting the recognition

Board (FASB), must be followed by all

of reserve assessment revenue to the

Certified Public Accountants (CPAs)

total of reserve expenditures, and applies

when they render reports (reviews and

to organizations that provide goods and

audits) in accordance with Generally

services to persons who are obligated

Accepted Accounting Principles (GAAP).

to pay for them, including association

California law requires at least an annual

members who buy into a common interest development and must pay assessments pursuant to the CC&Rs. The new accounting standard moves some replacement reserve activity from the income statement to the balance sheet. Generally, the replacement reserve assessments will be adjusted (up or down) to offset actual reserve expenses, and the replacement reserve net income (loss) will

Old GAAP Income Statement

New GAAP Income Statement

be $-0-. The reserve fund balance will also $-0-. The replacement reserve column of the balance sheet will generally show asset dollars equal to liability dollars. As replacement reserves are funded from assessments, asset dollars will increase, as will the related obligation for making major repairs in the future. Similarly as such major repairs are made, the asset dollars and related liability will decrease

Old GAAP Balance Sheet

Vision Spring 2020 | cacm.org

New GAAP Balance Sheet

by the same amount.

Generally, the association’s management company DOES NOT have to comply with this new presentation standard when preparing monthly financial statements. Failure to comply with this accounting standard in the year-end CPA reviewed/ audited financial statements distributed to owners could have negative legal and/or financial consequences for the association. This simplified example below illustrates the basic change in presentation in CPAprepared year-end financial statements prepared in accordance with this new accounting standard:

Scenario 1: Replacement Reserve Assessments Are Greater Than Major Repair Expenditures In Scenario 1, billed (budgeted) replacement reserve assessment revenues are $20,000, reported replacement reserve assessment revenues are $5,000 ($7,000 major repair expenditures less $2,000 reserve interest income), actual major repair expenditures were $7,000, and cumulative deferred assessment revenues, aka “contract liabilities,” were $80,000. Billed (budgeted) replacement reserve revenues ($22,000) greater than major repair expenditures ($7,000) of $15,000, are included in contract liabilities – hence, there is a reported net income of $-0-.

Existing (Old) GAAP

New GAAP

Financial Statement Presentation Format (Scenario 1)

Financial Statement Presentation Format (Scenario 1) Continues on page 56

cacm.org | Vision Spring 2020

The Nitty Gritty on New Accounting Rules Continued from page 55

While the foregoing change

The following is one possible reconciliation format:

in format will take some getting use to, there is a certain degree of logic, even for homeowner associations. Under existing commonlypresented fund accounting, reserve assessment income is based on the approved annual budget (and is usually the same or an increasing amount from year to year) while reserve expenses (actual expenditures) are generally reported on a cash basis and can vary significantly from one year to the next–resulting in equally great fluctuations in net reserve income or loss from one year to the next. Such unpredictable changes may make it more difficult for the reader (the typical non-accountant homeowner) to reconcile information presented in the annual budget report with that which appears in the year-end

Under the new presentation format,

It is important to keep in mind

on the balance sheet, the amount

though that in most instances, the

of reserve assets (cash and other

“contract liability – replacement reserve

investments) will generally equal

assessments paid in advance” will NOT

the “contract liability – replacement

equal the reserve liability reported in

reserve assessments paid in advance”

the reserve study, the annual budget

in the replacement fund (reserve)

report or the CPA’s supplemental

column of the financial statements.

information accompanying the annual

When reserve funds are expended for

review or audit.

financial statements.

major repairs and replacements, the balance in the liability will decrease

As this new accounting standard

Under the new standard, on the

by the same amount of cash and

is implemented in 2020, there will

investments.

undoubtedly be some challenges. Stay

income and expense statement,

tuned.

the reserve assessment income will generally be adjusted up or down so that net reserve income (expense) is zero. The year-end CPA reviewed (or audited) financial statements will contain a footnote disclosure which shows the reader the difference between the reserve assessment income in the annual budget report and that presented in the year-end (CPA) financial statements.

Vision Spring 2020 | cacm.org

David Levy, CPA is partner at Levy, Erlanger & Company, LLP, in San Francisco.

John Bellitto, CPA works with Allen & Cook, Inc, in San Jose

Law Journal TA L ! the

has gone

DIGI

For 2020, The Law Journal will be delivered every quarter directly to your inbox with a link to flip through the pages online. You can also print yourself a PDF if you still prefer a paper copy. Now you will also be able to share with friends. The digital version includes live links to all of the companies listed in the Legal Directory for easy access.

HERE’S HOW TO DOWNLOAD

STEP ONE Click on the three lines showcased in the top right hand corner of

the viewer.

STEP TWO Select “Download PDF” from drop down menu.

STEP THREE Click the printer icon in the top left-hand corner and print the PDF.

3 IT ’S AS EASY AS 1-2-3!

YOU WILL FIND THE LAW JOURNAL ARCHIVE UNDER MEMBER RESOURCES AT CACM.ORG.

cacm.org | Vision Spring 2020

You’ve Got Mail and

Amazon Packages How one association upgraded a community’s mailboxes to meet today’s needs and increase their real estate values.

By Jim McBurney

Vision Spring 2020 | cacm.org

ith the increase in online purchases and packages delivered to homes, an

association in Monterey, California, found that the number of individual mailboxes to homes was no longer enough. The community, with 100 homes, recently

A successful mailbox upgrade can increase real estate value in a community by up to 10%

completed a mailbox upgrade that not only addressed the issue of increased packages and the need to better secure them, but also boosted property values. A successful mailbox upgrade can increase real estate value in a community by up to 10%, which is appealing to homeowners since the investment is not coming out of their pocket but from the association’s reserve. Cascade Building, Inc. was brought in to help with the project. Mailbox replacements are more complex than they appear because there’s no standard process, however, the mailboxes must meet strict U.S. Postal Service requirements. The Team In this community, a team consisting of Cascade Building Inc.’s project manager, the community manager, the board president and the Monterey Postmaster worked together on a 53-page contract that the U.S.

The larger mailbox doors and more parcel lockers made it more secure and convenient for homeowners to receive packages, and more convenient for carriers, who had to make fewer stops at front doors to deliver large items. The Specifications Something that isn’t widely known but complicates a mailbox project is that some mailbox installations have to meet Federal Housing Administration and Americans with Disability Act’s requirements. The USPS mailbox specifications for current pedestal-mounted Cluster Box Units (CBUs) are thinner and taller than the old ones they replace. Although all ADA specs were not required, some of the new mailbox doors were higher than the old doors and harder

The U.S. Postal Service stopped selling

accommodation request) doors to the

and outside approval diagrams with the Post Office seal. The Postmaster also cleared management, personally checked and approved the final mailbox locations and facilitated Cascade Building Inc.’s contact with the USPS lock installer for the security of parcel locker keys. The Return on Investment In this Monterey example, we estimated conservatively that the average property value increased by $10,000 per home. Cascade Building Inc. is conducting a survey to test this hypothesis against homeowner input. The total cost was $386 per home. If the average value did increase by $10,000, that would be a 26x return on the investment (based on an average home value of $511,000). If the increase in value were only $5,000, the return would still be 13x.

until needed to fill a request for a lower

For this mailbox project, the team decided to

The contract drafted with the USPS

lockers for extra package space.

reserve doors and stamped both the inside

configuration that would be kept empty mailbox.

to fit larger packages, and to add nine parcel

The Monterey Postmaster assigned the

nine additional low reach (reasonable

mailboxes have to meet.

give each homeowner a larger mailbox door

provisioning.

to reach for some individuals. So it was decided that it would be best to provide

USPS still has specific requirements that

to street addresses for ease of mail carrier

the final USPS approval letter with USPS

Postal Service eventually approved.

and installing mailboxes in 2012. However,

master drawings, mapping inside numbers

covered many topics including the outside engraving diagrams and the inside Address Management System (AMS) stickers and

Jim McBurney is the project manager for Cascade Building Inc., a CACM Industry Partner member.

cacm.org | Vision Spring 2020

LAW SEMINAR MOMENTS

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FROM ACROSS CALIFORNIA

cacm.org | Vision Spring 2020

LAW SEMINAR MOMENTS

MOST ORIGINAL BOOTH Berding Weil

BEST THEME INTERPRETATION CM Squared, Inc.

BEST IN SHOW Hughes Gill Cochrane Tinetti, PC

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Vision Spring 2020 | cacm.org

THANK YOU TO OUR LAW SEMINAR SPONSORS! NORTHERN CALIFORNIA Conference Bag Sponsor Benâ&#x20AC;&#x2122;s Roofing, Inc. www.bensroofing.com Conference Lanyard Sponsor Heritage Bank of Commerce heritagebankofcommerce.com Event Photographer Sponsor Hughes Gill Cochrane Tinetti, PC www.hughes-gill.com

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Exhibit Hall Aisle Sign Sponsors American Asphalt Repair & Event App Experience Sponsor Resurfacing Co., Inc. Securitas Security Services USA, Inc. www.americanasphalt.com www.securitasinc.com California Sub-Meters General Session Keynote Sponsor www.calsubmeter.com The Miller Law Firm www.constructiondefects.com Chapman & Intrieri, LLP www.chapmanandintrieri.com Registration Sponsor Velocity Construction Services, Inc. A-One Construction & Roofing www.velocitycsinc.com www.a-oneconstruction.com Vision Awards Sponsors CM Squared, Inc. www.gocm2.com

Luncheon Sponsors IQV Construction & Roofing www.iqvinc.com

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SOUTHERN CALIFORNIA Conference Bag Sponsor Sherwin-Williams www.sherwin-williams.com

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Chapman & Intrieri, LLP Event App Experience Sponsor www.chapmanandintrieri.com Securitas Security Services USA, Inc. www.securitasinc.com CIT (Mutual of Omaha Bank) www.mutualofomahabank.com General Session Keynote Sponsor Park West Landscape Management Pre-Event Knowledge Sharing www.parkwestinc.com Sponsor AvidXchange, Inc. Registration Sponsor www.avidxchange.com TOPS Software www.topssoft.com Education Session Sponsors Accurate Termite & Pest Control Vision Award Sponsor www.accuratetermitecontrol.com SAX Insurance Agency www.saxagency.com BPR, Inc. www.bpr1.com Vision Awards Bar Sponsor McKenzie Rhody, LLP Genevation, Inc. www.mrcdlaw.com www.genevationinc.com Vision Awards Welcome Champagne Sponsor CM Squared, Inc. www.gocm2.com Vision Awards Entertainment Sponsor Pacific Western Bank www.pacwest.com

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Course and Event Calendar

upcoming courses & events

While these are unprecedented times, we are constantly adjusting to them. CACM’s Education and Credentialing Team has been hard at work transitioning all educational events and courses to an online platform. Please visit CACM’s website for further information and updated schedules. For the latest updates on event cancellations based on Covid-19, go to: https://cacm.org/coronavirus/

‘‘

Vision Spring 2020 | cacm.org

Module 1 of 6 April 2 9:30 AM - 12:00 PM

Module 4 of 6 April 3 1:30 PM - 4:00 PM

Module 2 of 6 April 2 1:30 PM - 4:00 PM

Module 5 of 6 April 17 9:30 AM - 12:00 PM

Module 3 of 6 April 3 9:30 AM - 12:00 PM

Module 6 of 6 April 17 1:30 PM - 4:00 PM

CONFLICT RESOLUTION FOR COMMUNITY MANAGERS Online Module 1 of 2 April 15 10:00 AM - 12:00 PM

Module 2 of 2 April 16 10:00 AM - 12:00 PM

Online

Module 1 of 2 April 20 11:00 AM - 2:00 PM

Module 2 of 2 April 21 11:00 AM - 2:00 PM

ASSESSMENT COLLECTIONS Online

‘‘

Online

RISK MANAGEMENT

I’m really happy to have these online options, especially now. Thank you!!! Sue D. Tuttle, CCAM The Emmons Company Thousand Oaks, Calif.

LARGE SCALE COMMUNITY MANAGEMENT

Module 1 of 2 April 22 10:00 AM - 12:00 PM

Module 2 of 2 April 23 10:00 AM - 12:00 PM

HUMAN RESOURCE MANAGEMENT Online

Module 1 of 3 April 27 9:30 AM - 12:00 PM

Module 3 of 3 May 11 9:30 AM - 12:00 PM

Module 2 of 3 May 4 9:30 AM - 12:00 PM

RESERVES: WHAT, WHY, HOW? Online

One session only April 28 11:00 AM - 2:00 PM

FOUNDATIONAL ETHICS FOR COMMUNITY MANAGERS Online

Module 1 of 2 Module 2 of 2 May 5 May 13 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

CALIFORNIA LAW SERIES Online

Module 1 of 8 Module 5 of 8 May 7 May 28 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 2 of 8 Module 6 of 8 May 8 May 29 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 3 of 8 Module 7 of 8 May 14 June 4 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 4 of 8 Module 8 of 8 May 15 June 5 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

PORTFOLIO MANAGEMENT Online

Module 1 of 6 May 19 9:30 AM - 12:00 PM

Module 4 of 6 May 20 1:30 PM - 4:00 PM

Module 2 of 6 May 19 1:30 PM - 4:00 PM

Module 5 of 6 May 21 9:30 AM - 12:00 PM

Module 3 of 6 May 20 9:30 AM - 12:00 PM

Module 6 of 6 May 21 1:30 PM - 4:00 PM

Online

Module 1 of 2 Module 2 of 2 May 26 May 27 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

ENHANCE YOUR PROFESSIONAL PRESENCE Online

Module 2 of 2 June 4 1:00 PM - 3:00 PM

EXPLAINING FINANCIAL STATEMENTS Online

Module 1 of 3 Module 3 of 3 June 9 June 23 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 2 of 3 June 16 10:00 AM - 12:00 PM

Online

Module 1 of 8 Module 5 of 8 June 10 June 24 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 2 of 8 Module 6 of 8 June 11 June 25 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 3 of 8 Module 7 of 8 June 17 July 1 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

FOUNDATIONAL ETHICS FOR COMMUNITY MANAGERS East Bay

One session only July 7 8:30 AM - 12:30 PM

ADVANCED ETHICS: LEADERSHIP & DECISION MAKING East Bay

One session only July 7 1:30 PM - 5:30 PM

CALIFORNIA LAW SERIES

Module 4 of 8 Module 8 of 8 June 19 July 2 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

Online

ADVANCED INSURANCE PRINCIPLES

Module 2 of 8 Module 6 of 8 July 8 July 22 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

Online One session only June 18 11:00 AM - 2:00 PM

FOUNDATIONAL ETHICS FOR COMMUNITY MANAGERS San Diego

One session only June 19 8:30 AM - 12:30 PM

ADVANCED ETHICS: LEADERSHIP & DECISION MAKING

BUDGETING

Module 1 of 2 June 3 1:00 PM - 3:00 PM

THE BASICS OF ASSOCIATION MANAGEMENT

San Diego

One session only June 19 1:30 PM - 5:30 PM

ADVANCED ETHICS: LEADERSHIP & DECISION MAKING Inland Empire

One session only June 25 8:30 AM - 12:30 PM

FOUNDATIONAL ETHICS FOR COMMUNITY MANAGERS Sacramento

One session only June 30 8:30 AM - 12:30 PM

ADVANCED ETHICS: LEADERSHIP & DECISION MAKING Sacramento

One session only June 30 1:30 PM - 5:30 PM

Module 1 of 8 Module 5 of 8 July 7 July 21 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

Module 3 of 8 Module 7 of 8 July 14 July 28 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM Module 4 of 8 Module 8 of 8 July 15 July 29 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

FOUNDATIONAL ETHICS FOR COMMUNITY MANAGERS Orange County

One session only July 14 8:30 AM - 12:30 PM

ETHICS MASTERY Orange County

One session only July 14 1:30 PM - 5:30 PM

RESERVES: WHAT, WHY, HOW? Online

One session only July 16 11:00 AM - 2:00 PM

FUNDAMENTALS OF EFFECTIVE GOVERNANCE Online

Module 1 of 2 Module 2 of 2 July 23 July 24 10:00 AM - 12:00 PM 10:00 AM - 12:00 PM

Please Note: In order to receive CEU course credit all modules within the course must be completed. cacm.org | Vision Spring 2020

serving your communities

New Industry Partner Members

CACM members further their success in the industry and benefit by partnering with colleagues to share new ideas and best practices. Please join us in welcoming these new members from the fourth quarter 2019!

INDUSTRY PARTNER MEMBERS Andre Landscape Service, Inc. Azusa | (626) 327-4640 www.andrelandscape.com BELLWETHER, The Leader in Election Solutions Roseville | (916) 872-1801 www.bellwethersolution.com Blue Streak Lighting Services Sunnyvale | (866) 436-9995 www.bluestreaklighting.com Buildium LLC Boston | (857) 702-8796 www.buildium.com California Builder Services Clovis | (559) 473-2690 http://cabuilderservices.com/ Concrete Hazard Solutions, Inc. Orange | (714) 292-6150 www.chsolutions.net

Firestone Builders, Inc. San Marcos | (760) 304-1234 www.firestonebuilders.com Garage Door Medics San Diego | (888) 593-4045 www.gdmedics.com Ikon Builders, Inc. San Clemente | (714) 902-9334 www.ikon-builders.com Inspector Ballot Danville | (510) 340-6406 www.inspectorballot.com Lynn Wealth Management La Jolla | (858) 529-1951 www.lynnwm.com Opus Bank Irvine | (949) 224-8851 www.opusbank.com Preman Roofing-Solar

INDUSTRY PARTNER PLUS MEMBERS Black Diamond Roofing, Inc. Martinez | (510) 775-5290 www.blackdiamondroofs.com Bolt Mechanical, Inc. Placentia | (714) 985-0161 https://boltmechanical.com Life Specialty Coatings (Manufacturer of Life Deck Specialty Coatings Products) Santa Fe Springs | (562) 944-6391 https://lifedeck.biz/ McCarthy Roofing Orange | (714) 538-3330 www.mccarthyroofing.com Rayco Exteriors Escondido | (760) 566-7725 www.raycoexteriors.com

San Diego | (619) 276-1700 www.premanroofing.com

Cross 2 Design Group Seattle | (707) 225-8111 www.cross2dg.com Endure Painting, Inc. San Leandro | (510) 209 -3314 www.endurepainting.com

Thank You for Your Membership! Each member of CACM plays a key role in ensuring our industry is filled with knowledgeable and professional service providers. We thank you for recognizing the value of CACM and the important role it plays in elevating your profile within the industry. You are a change agent for the HOAs you serve! Together, we are making a difference in the lives of 15 million California homeowners. Now thatâ&#x20AC;&#x2122;s something to be proud of!

Vision Spring 2020 | cacm.org

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Thank You to Our Sponsors

Thank you to our sponsors for the fourth quarter of 2019 for their generous contributions. The next time you encounter a CACM sponsor, please join us in acknowledging the work and generosity of these supportive members.

24HRC

Elite Pest Management, Inc.

Popular Association Banking

A.C. Enterprises General Contractor

Emercon Construction, Inc.

Powerstone Property Management

A.D. Magellan

EmpireWorks Reconstruction and Painting

Prendiville Insurance Agency

Accurate Termite & Pest Control

Epsten Grinnell & Howell, APC

ProTec Building Services

Advance Construction Technology, Inc. (ACT)

eUnify

Pro-Tech Painting Company

ADCO Roofing & Waterproofing

Fenton Grant Mayfield Kaneda & Litt, LLP

Rayco Exteriors

Advanced Painting & Wood Repair

Fiore Racobs & Powers

Recon 360 LLC

Advanced Restoration

Fontaine Weatherproofing, Inc.

RFI Construction Management, Inc.

Agricultural Pest Control Services

GAF

Roofworks & Construction

Alliance Association Bank

GarbageDash

Roseman Law, APC

AMS Paving, Inc.

Harvest Landscape Enterprise, Inc.

SAX Insurance Agency

Antis Roofing & Waterproofing

Hays Companies

Serpico Landscaping

A-One Construction & Roofing

Heritage Bank of Commerce

Sherwin-Williams

Association Construction Services, Inc.

Hughes Gill Cochrane Tinetti, P.C.

Signature Painting & Construction, Inc.

AWT Construction Group, Inc.

Integrity Builders General Contractors, Inc.

SmartProperty

Bald Eagle Security Services, Inc.

J.J. Commercial Water Heaters

Socher Insurance Agency

Berding | Weil

Jensen/Terracare-A Monarch Landscape

Southern Cross Property Consultants

Black Diamond Paving & Concrete, Inc.

Company

TARC Construction, Inc.

Boral Roofing

JPA Landscape & Construction, Inc.

The G.B. Group, Inc.

BrightView

Kelly-Moore Paints Co., Inc.

The Judge Law Firm

Broadband Agreements by MFC

LandCare

The Management Trust

California Bank & Trust

Leak Control Services, Inc.

The Miller Law Firm

Calvac Paving, Inc.

McKenzie Rhody

The Naumann Law Firm, PC

Chaix Law

MPS Financial, LLC

Three Phase Electric, Inc.

Chapman & Intrieri, LLP

New Image Landscape Company

Trip Stop Sidewalk Repair

CID Insurance Programs, Inc.

New Way Landscape & Tree Services

Tru Construction, Inc.

CIT (Mutual of Omaha Bank)

NPG Asphalt

Unlimited Property Services, Inc.

City National Bank

Owens, Moskowitz & Associates, Inc.

Varsity Painting

CM Squared, Inc.

Pacific Green Landscape, Inc.

Vista Paint Corporation

Coast Landscape

Pacific Pest Control, Inc.

Whitestone Painters, Inc.

Community Legal Advisors, Inc.

Pacific Premier Bank

Whitâ&#x20AC;&#x2122;s Painting, Inc.

Diversified Asphalt Products

Pacific Western Bank

DKI Restotech

Painting Unlimited, Inc.

Dryco Construction, Inc.

Payne Pest Management

cacm.org | Vision Spring 2020

SAVE THE DATE OCT. 8 - 9, 2020 Fairmont Sonoma Mission Inn & Spa 100 Boyes Blvd. Sonoma, CA 95476 Travel “virtually” across the state of California touring large scale and high rise properties, asking questions of the individuals High Rise Summit & Large Scale Summit who manage them and taking a deeper dive into mastering the unique challenges faced by professional large scale and high rise managers. Oct. 8-9, 2020 SAVE THE DATE

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CACM.ORG 68

Vision Spring 2020 | cacm.org

Vision Magazine Spring 2020

Articles inside

President’s Message