Insight and Education for Community Associations Community Associations Institute / Central Arizona Chapter / www.cai-az.org
Bouncing Back
The New Market Demand The Economy is Picking Up… But is it too late to save your community’s most valuable asset?
Creative Thinking and Planning Back to the Future ADR: What it is and Why it Matters Digging Deeper
PLUS… President’s Message 2013 Tradeshow 2013 CAI CAC Event Calendar
Summer 2013
CARPENTER HAZLEWOOD PRESENTS...
* “FREE” COLLECTIONS $0 DUE FOR MORE INFORMATION CONTACT JAVIER DELGADO JAVIER @ CARPENTERHAZLEWOOD.COM
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*See full Agreement for details Summer 2013
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Bouncing Back
Summer 2013
Community Associations Institute / Central Arizona Chapter / www.cai-az.org
Features 18
Departments President’s Letter ................................ 4
The New Market Demand
From the Editor
By Rebecca Herro
From the Director ................................ 5
Economy is Picking Up… 19 The But is it too late to save your community’s
Chapter Executive Director’s Letter
22
most valuable asset? By Mark Beatty
20 Creative Thinking
Community Spotlight .......................... 6 Scottsdale Ranch Invests in the Future
New Members ..................................... 8 Welcome to the Central Arizona Chapter!
and Planning
By Suzanne White, CMCA, AMS and Manny San Miguel
CAI Events ......................................... 10 2013 Tradeshow Spring Night Golf 2013
21 Back to the Future By Brooke Songer, CMCA
ADR: What it is and Why it Matters By Bryan Memmot, Esq.
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22
Myths & Misconceptions ................... 14 Regarding How Your Community is Adapting To This Economic Climate
Public Relations ................................. 16 Public Relations Happenings
Annual Sponsors ............................... 24 2013 Annual Sponsors
Digging Deeper By John E. Kaye, AMS, CMCA
Diamond Corner ................................ 25 Showcase of Top Sponsors
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Congratulations Corner & 2013 Committee Chairs ..................... 26 Calendar of Events ............................ 28
2013 CAI CAC Event Calendar
While efforts to insure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content.
Valhalla Community Magazines www.Valhalla360.com
For advertising and editorial information,please call Valhalla Community Magazines at (480) 634-1708.
Summer 2013
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From the president
President’s Letter By Josh Bolen, Esq., CAI Central Arizona Chapter President
Community Associations Institute Central Arizona Chapter 2013 Board of Directors
The state of the Central Arizona Chapter of the Community Association Institute is outstanding as our Chapter continues to grow and flourish. Our Chapter recently won a number of awards at the National CAI Conference. The CAICAC Tradeshow was a huge success. The CAI HOA Helpline on News Channel 12 was another positive message to the public about the benefits of our Chapter. The Chapter has a new website, which I highly recommend everyone visit. Finally, it appears that we had a very quiet legislative session as it pertains to community associations. As a Chapter, we are very proud to see a lot of community associations “Bouncing Back” from some very hard times. While foreclosures, owner and builder bankruptcies and extreme
delinquencies had once plagued community associations, we are beginning to see housing prices rise, home building increase and assessment delinquencies drop. Although CAI-CAC grew during these hard times, we believe that this promising trend will only further strengthen our Chapter. CAI-CAC, as it did during the hard times, looks forward to working with its members to educate and inform the public about the positive attributes of community associations in the State of Arizona. We continue to encourage everyone to attend CAI-CAC upcoming educational seminars and social events to learn more about CAI-CAC, its people and its benefits. Let’s continue to build better communities through better HOAs.
The needs and expectations of community associations and industry organizations are changing as the economy bounces
Chapter President-elect Mary Jo Edel, CMCA, AMS, PCAM PMG Services 480-829-7400 x202 • maryjo@pmg-service.com Chapter Vice-President Linda Van Gelder ALPHA Community Management 623-825-7777 • linda@alphacommunitymanagement.com Chapter Secretary David Segal ACE Construction Services 602-840-4500 • david@aceconstruction247.com Chapter Treasurer Sean Madigan Stone Creek HOA 480-545-1212 • seanjen98@msn.com Chapter Directors Milan Carnes Verde Groves HOA 937-477-8652 • milancarnes@hotmail.com Lynda Erickson, PCAM Rossmar & Graham 602-616-7322 • lerickson@rossmar.com Mark Wade, CMCA, AMS, LSM, PCAM Leisure World Community Association 480-823-0003 • mwade@leisureworldarizona.com Brian Morgan, Esq., CCAL Maxwell & Morgan, PC 480-833-1001 • bmorgan@hoalaw.biz
From the Editor... After (seemingly) endless years of focusing the content of Community Resource on helping communities deal with the economic recession, the Magazine Committee is excited to turn that focus around! There have been many recent positive signs indicating that the local economy and housing market are returning to a period of growth.
Chapter President Josh Bolen, Esq. Carpenter, Hazlewood, Delgado & Bolen, PLC 480-427-2862 • josh.bolen@carpenterhazlewood.com
back. Taking advantage of the current economic climate, as well as preparing for the next inevitable downturn, are essential for the long term success of community associations and industry professionals. It is our hope that this edition will provide you with valuable insight and tools for doing so.
CAI Central Arizona Staff Kayte Comes Executive Director 602-388-1159 • kayte@cai-az.org Chapter Office 1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020 Tel: 602-388-1159 • Fax: 602-513-7462 info@cai-az.org • www.cai-az.org Community Resource Committee Committee Chairs Jessica Maceyko, Esq. Ekmark & Ekmark, LLC Vanessa Dreyer, PCAM CCMC
Jessica Maceyko, Esq., on behalf of the CAI-CAC Magazine Committee
Board of Directors Liaison David Segal ACE Construction Services Committee Members Nicole McConville Scottsdale Ranch Community Association Brooke Songer, CMCA Uptown on 27th Jacob Marshall, CMCA CCMC
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(480) 634-1708 www.caicommunityresource.com
Elaine Anghel, PCAM Tri-City Property Management Services Lindsey O’Connor, Esq. Carpenter Hazlewood Delgado & Bolen, PLC. Magazine Editing Subcommittee Julia Ricciardi, CMCA, AMS Total Property Management Dawn Engle, CMCA, AMS Planned Development Services Kerry Lynn Goto, PCAM Great Boards
Valhalla Community Magazines
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Nate Roberts Seamless Services, Inc.
Ursula Mancuso, CMCA, AMS PMG Services Kathe Barnes, PCAM Scottsdale Ranch
From the Director
Chapter Executive Director’s Letter Kayte Comes, Executive Director CAI – Central Arizona Chapter The CAI Annual Conference and Exposition was held May 17-20, 2013, in San Diego, CA. The Central Arizona Chapter has been very fortunate the past three years to have won National Achievement and Excellence Awards and this year was no exception. I am pleased to announce that our chapter won three awards in the large chapter category. We were also the only chapter to win three of the possible five awards. Additionally, the chapter won three National Volunteers of the Year Awards. The winners of these awards are: Bruce Gran, Linda Van Gelder and Donald Dyekman. Be sure to read more about the winners in the Congratulations Corner, on page 26 and don’t forget to congratulate them - they deserve it!
�ou �on�t �nd t�at ��oblem �it� us� Typically we respond within 15 minutes. We have 3 locations valley wide and our foremen & supervisors all carry smart phones, so we can respond quickly. Improve your communication and alleviate confusion. Call us today!
This is the first time in the history of this chapter that we have won six awards in one year. We also won the most awards of any chapter at this year’s conference! National Achievement and Excellence Awards provide an opportunity for chapters to showcase best practices and innovative programs. Chapters contribute to the success of CAI and the industry at large through programs for members where they live and work. Chapters, through their hard work, commitment and determination, are an integral reason why CAI is recognized as the premier organization serving community association stakeholders. The three National Achievement and Excellence Awards won by the Central Arizona Chapter are: Chapter Management/Development Chapter management or development initiatives and/or tools focused on strengthening the internal workings of the chapter - 2012 Spring Night Golf Membership Membership acquisition, retention and/ or development efforts that enable CAI to
Making Management Manageable
480-545-0456
phoenixsalesteam@groundskeeper.com • www.groundskeeper.com
expand its membership base – New Member Orientation PowerPoint presentation and execution. Public Affairs Activities demonstrating the chapter’s role in CAI to the public as the industry’s leading advocate for responsible communities – 2012 CAI and Channel 12 News HOA Help Line. I am very proud of our committee members and all the other people who volunteer for our chapter; they all work hard to make our chapter successful. Our chapter volunteers are dedicated and enthusiastic and without their support and drive, we could never achieve the goals and objectives set forth in our business plan. Thank you for your tireless efforts! Summer 2013
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community spotlight
Scottsdale Ranch Invests in the Future By Nicole McConville
The uncertain economic climate over the last several years has forced many large scale communities to cut back on expenditures and delay maintenance and other projects. Scottsdale Ranch Community Association was no exception, and although our community was fortunate to not be hit as hard as others, we did have to postpone some previously planned projects and change the course of how we would fund them. Scottsdale Ranch has never done a special assessment of any kind, so when determining that the 30+ year old Community Center facility required updating, the Board and administrative staff considered doing a lower cost special assessment for the very first time. Then, the recession hit and it became clear that residents were not in a position to take on a special assessment and many were trying to just keep themselves above water. The Board postponed the project. In the meantime, we tackled some smaller, necessary maintenance repairs of the Community Center and were able to save and plan for the major remodel project while keeping the assessments down. Last summer, we completely remodeled the interior and exterior of Community Center facility and were able pay for the expenditure in full through the association’s capital improvement and reserve funds.
After upgrades and more. The economy will never be certain, but we feel that the best use of our funds is to invest it into the community. We know that keeping the aesthetics of the community up-toBefore date and common areas pristine will give our homeowners the best return on their investment.
After If the economy has taught us anything, it is that investing in your future and your community is essential and will pay off. Scottsdale Ranch is continuing with this Before momentum in 2013 and beyond with the focus on being able to renovate where it is needed and use the Association’s funds for projects that will best benefit and protect our residents’ investments in the long run. It has been a very busy year with many major projects completed and, in the works, such as: new monument signage at all major entrances of the community, continued landscape renovations, new subdivision monument signs, administrative office and conference room 6
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After
Nicole McConville is the Community Relations Coordinator for Scottsdale Ranch Community Association where she is responsible for the communications, marketing and outreach efforts for the community.
Before
Vial Fotheringham provides homeowner associations with the everyday advice you need and can understand. We offer practical answers to your questions, free training, publications, and online resources. Our team helps associations like you proactively and successfully navigate community life. Visit www.vf-law.com.
2450 S. Gilbert Rd Ste 212. Chandler, AZ 85286 Phone: 480.448.1334
CBI Makes Your Life Easier! Whether you’re a Property Manager, HOA Board, or Building Owner, CBI understands the challenges you experience when it comes to property maintenance, construction projects, and repairs to your properties. CBI is your team of experts guiding you through any aspect of construction/ building repairs and maintenance including: forensic inspection services, construction management, and maintenance inspections.
www.cbi4u.com
855 EXPRT4U (397-7848) Summer 2013
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New Members
Welcome to the Central Arizona Chapter!
CAI MEMBERSHIP APPLICATION 6402 Arlington Blvd., Ste 500 • Falls Church, VA 22042 Ph: 1-888-224-4321 • Fax: 1-703-970-9558 • Online: www.caionline.org/join MEMBERSHIP CONTACT: (where materials will be sent) Name: Title: Assoc./Company: Address: City/State/Zip:
The Central Arizona Chapter proudly presents and welcomes our new members from March and April.
Phone: Fax: Email: Select your Chapter:
Homeowner/Board Members: Mr. Larry C. McVey Mr. James Bell
Pebble Creek Golf Resort HOA #1 Shasta Green
Individual Community Managers: Ms. Jennifer Kollings Ms. Lindsay Nicole Bowden Ms. Leslie Drolshagen Ms. Susan Massey Mr. Kevin Christoph Young Mr. Peter Giambanco Ms. Deserie Perry Ms. Joy Graves Ms. Susan Richards Ms. Brenda Dozier Ms. Minnie Jo Gurule Mr. Chris Teel Mr. Crew Johnston
Anthem Community Council Arizona Community Management Services, LLC Arizona Community Management Services, LLC Belaflora Condominium Association Jomar Association Services The Crossings at Willow Creek ALPHA Community Management Dobson Ranch HOA The Crossings at Willow Creek The Village at Apache Wells Vision Community Management Vision Community Management
Central Arizona
Recruiter Name/Co. Name: TOTAL MEMBERSHIP DUES* Community Association Leaders & Homeowners q Individual Homeowner or Board Member $114 q 2 Member Board $200 q 3 Member Board $275 q 4 Member Board $345 q 5 Member Board $395 q 6 Member Board $445 q 7 Member Board $500 For 2-3 Board Member applications, please list the additional individuals who will receive materials. For applications exceeding three, please contact CAI Customer Care at 1-888-224-4321. Name: Address: City/State/Zip: Phone: Fax: Email: Name: Address: City/State/Zip: Phone:
Management Companies: Ms. Laurie Roberts Mr. Chris Layton
L&B Association Consultants Right Away Community Management, LLC
Business Partners: Mr. Steve Vyrostek Mr. Matthew Edgar Ms. Deborah Campbell Mr. Ben Scalan Mr. Brandon Beck Mr. Clayton Graham Mr. James Haley Ms. Rosa Herring Mr. J. Bradd Greene Mr. Dave Ritchey Ms. Tamara Martin Mr. Joseph Holmes Mr. Larry Rudd Mr. Justin Skipton
Arizona Environmental Group Back to Nature Landcare, Inc. Fastsigns Bell Road Galaxy Gate Systems Sherwin Williams Paint Sundance Landscape & Maint. TerraPro, Inc. Weather Masters, Inc. Getdocsnow.com National Home Warranty Anderson Security Agency Ltd. East Valley Disaster Services Mariposa Landscapes, Inc. Skipton & Associates, Inc.
Fax: Email: Individual Managers Management Companies Business Partners q Accountant q Attorney q Builder/Developer q Insurance q Lender/Banker q Reserve Study q Supplier/Landscaper, etc. Please Specify: q Technology Provider *Membership Dues above include $15 Advocacy Support Fee PAYMENT METHOD q Check Enclosed
q VISA
q MasterCard
$134 $410 $560
q AMEX
Account #: Name: Signature: IMPORTANT TAX INFORMATION: Under the provisions of section 1070(a) of the Revenue Act passed by Congress in 12/87, please note the following. Contributions or gifts to CAI are not tax-deductible as charitable contributions for federal income tax purposes. However, they may be deductible as ordinary and necessary business expenses subject to restrictions imposed as a result of association lobbying activities. CAI estimates that the non-deductible portion of your dues is 17%. For specific guidelines concerning your particular tax situation, consult a tax professional. CAI’s Federal ID number is 23-7392984. $39 of annual membership dues is for your non-refundable subscription to Common Ground.
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www.caicommunityresource.com
Summer 2013
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CAI Ev e n t s
2013 Tradeshow By Debbie Rudd
The 2013 Annual Tradeshow was held this year on April 12th at Rawhide Wild West Town. Oh, what an event it was, as the theme was “College Daze”. It was a fun trip down memory lane for a lot of us. We recreated dorm rooms, experienced some “revenge” from “the nerds,” played foosball and billiards, enjoyed lots of team spirit and wore a few togas.
For certification credits and to round out the day, Tim Triplett from Atlanta, GA was the speaker. The class was titled The Art of Hypnotic Influence and Manipulation and open to all who wished to attend. It did appear as if the class was interactive, fun and interesting.
With 90 booths, the 268 registered attendees along with numerous walk-ins enjoyed the day interacting with the vendors, playing some fun games, and eating a good lunch with choices of chicken, hamburger or pulled pork.
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We ended the Tradeshow with tired feet and raffle prizes. As the excitement of the Tradeshow wound down,
the thrill of possibly winning a prize ramped up. Everyone sat in anticipation of hearing their name called. With hopes, groans, and laughter, the raffle and booth prizes were given to the lucky winning recipients. The following is a list of all the participating vendors and their prizes: CAI - Central Arizona Chapter
Apple i-Pad 16gb Wi-fi
CAI - Central Arizona Chapter
Keurig Platinium Coffee Machine
CAI - Central Arizona Chapter
$250 Visa Gift Card
American Geotechnical
Costco $50 Gift Card
Applied Pavement Technology
Hi-Def DVD Player
Brown | Olcott, PLLC
Two (2) Diamondback Tickets
Burns Pest Elimination
$50 Gift Card
Caretaker Landscape & Tree Management, Inc.
$50 Fox Restaurants Gift Card
Castle Reserve Studies
$50 Charleston’s Gift Card
CBI Consulting and Construction Management
$100 Gift Card - Capital Grille
CCMC
Two (2) - $100 Southwest Gift Cards
CLC Enterprise Painting
$50 Gift Card
Desert Classic Landscaping
Two (2) Diamondback Tickets ($80 value)
DLC Resources, Inc.
DLC College Survival Gift Basket: Dinner, Laundry and Caffeine! (Value $100)
Goodwill of Arizona
Las Vegas Weekend: includes a gift card for a two-night stay at the Tropicana Hotel and Visa Gift Card. (Value $400)
Gothic Grounds Landscape
Apple TV
HomeWiseDocs.com
$50 Visa Gift Card
LaBarre/Oksnee Insurance
$100 American Express Gift Card
Maxwell & Morgan, PC
TV
Minute Bids
Samsung Galaxy Tab 2 8GB Wifi enabled tablet
Nautilus General Contractors
Tailgating gift pack
Page-Per-Page
1000 Business cards (Value $150)
Paramount Roofing
Old No. 7 Gift Basket
Popular Association Banking
Two (2) $50 Gift Cards
Puregreen Landscape
$50 Gift Card
Union Bank HOA Services| Smartstreet
$50 Visa Gift Card
US Bank
$50 Gift Card and a Popcorn Factory 3-way Popcorn gift tin
2013 Tradeshow | 12
Summer 2013
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CAI Ev e n t s
2013 Tradeshow cont.
Spring Night Golf 2013
The Best Is Yet To Come! By Heidi Hallquist
On May 10, 2013, CAI Central Arizona Chapter hosted its 4th Spring Night Golf Event. Having never attended before, I really didn’t know what to expect as I pulled up to the golf course. One of the first to arrive, I took a seat in the bar area & grabbed a beer. I watched as the daytime golfers finished up their rounds and the golf course busily prepared for its next wave of golfers, which included our group. Then people started to arrive until little by little the room FILLED, the line at the bar grew, and the laughter mixed with chatter grew louder and louder. I know firsthand why the vendors attend these events; we hope to get a little face time with managers. Out of curiosity, I asked a few managers why they took the time to attend this event. Each one had the same reply. Out of all the events they attend all year, this was one of their favorites. I heard stories of years past and crazy shenanigans that brought tears to my eyes, as I was laughing so hard. If, like me, you have never attended CAI’s Spring Night Golf Event, please do yourself a favor and put it on your calendar for next year! Our final prizes were awarded to the best “themed” booths. Two committee members and random attending managers picked the following booths as the first, second and third place winners. All three winners were awarded CAI credit toward advertising or an upcoming event; and the winners were… 1st Place – Pinnacle Restoration/Universal Protection Service, $250 credit 2nd Place – RenCo, LLC Roofing Contractor, $150 credit 3rd Place – Clean Cut Landscape Management, $100 credit Now we say so long to another successful Tradeshow and look forward to a new theme, a new venue, and lots of fun at the 2014 Tradeshow!
Debbie Rudd is the Client Relations Director for RenCo, LLC Roofing. She serves as the Committee Chair for the Tradeshow while also serving on the Programs Committee.
In closing I’d like to say CONGRATULATIONS to this years winners (yes, through all the shenanigans a little golf is played). First place goes to: The Groundskeeper Team led by Ken Flynn of Brown Community Management Second place goes to: The John Wayne Construction Team led by Peter Alesi And, last but not least; The Most Honest Award goes to John Wayne Construction led by Dave Dillion Great job golfers! Also, a huge THANK YOU goes out to Scott Haas with Allscape Property Maintenance for being the golf and drink cart sponsor and a huge THANK YOU to Jeni Meyers Temby with Allscape Property Maintenance for being the night glow sponsor for this event. Without our awesome vendor partners, these events would not go on…we really appreciate it guys! I’m looking forward to seeing all of you next year!
Heidi Hallquist is an Account Executive with Ace Construction Services.
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CAI – Central Arizona Chapter
2013 ANNUAL GOLF TOURNAMENT
Whirlwind Golf Club
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December 6, 2013
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Great Sponsorships Available
Managers and Board members golf FREE! F REE Talk to your favorite Business Partner today about sponsoring you for a round of golf!
AWARDS & RAFFLE
F ollow ing the Tournament!
For more information about the golf tournament, contact the CAI office at 602.388.1159 or info@cai-az.org Summer 2013
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Myths & Misconceptions
… Regarding How Your Community is Adapting To This Economic Climate By Lynn Krupnik, CCAL & Elaine Anghel, CAAM, PCAM, AMS, CMCA
Myth: A developer has offered the association money to be able to annex his neighboring property into the association, to add more lots into the subdivision. The board can make the decision to annex the property. Fact: If an association is facing this issue, there are many questions that need to be answered, and the answers should be found in the association’s governing documents: (1) Is there a right to annex property in the declaration? (2) If so, who has the right to annex the property? and (3) Are there any conditions that must be met (such as member approval) to annex property? An association needs to thoroughly analyze with its legal counsel what are the requirements for annexing property into the association and, if it can be done, what practical ramifications exist from such actions. Myth: With the influx of investor-owners in our community, we can have rules that are more restrictive to investor-owned units than to owner-occupied units, such as not allowing tenants to have pets but allowing owner-occupants to have pets. Fact: An association’s rule-making authority is usually found in its governing documents. Often the declaration states that an association’s rules cannot discriminate among owners. Furthermore, an association’s rules must be reasonable. Therefore, rarely can an association have different rules for investor-owned units than for owner-occupied units, and any such rules need to be carefully evaluated to ensure that they are in compliance with the association’s governing documents. Myth: A member of the board has the right to share information regarding homeowners with others in the community, in order to make decisions relative to their lot. Fact: Board members are held to a certain standard to act as good stewards of the association’s business. If the board has chosen, in accordance with the law, to keep certain information confidential (such as an owner’s personal, health, or financial information), an individual board member needs to comply with the decision of the board and keep the information, as well as discussions of the Board held in executive session relating to such information, confidential.
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architectural approval (or to deny an owner’s request) merely because the owner is delinquent in paying their assessments. The association would need to carefully review its governing documents to determine whether this type of remedy exists for the association when an owner is delinquent. Keep in mind that many governing documents state that, if a request for architectural approval is not ruled on by the association within a certain number of days, the request is deemed approved. Therefore, the association needs to be careful about failing to act upon a submission merely because an owner is delinquent, and possibly creating an argument for the owner that the failure by the association to act means that the submission is deemed approved. Also, when an association denies a request for architectural approval, it needs to act reasonably and state the reason for the denial. If no provision of the association’s governing documents allows an association to deny the owner’s right to submit for architectural approval merely because the owner is delinquent, and the owner’s submission is in compliance with the provisions of the association’s governing documents, the owner could argue that the association’s decision to deny the submission was unreasonable. The association could consider amending its governing documents to create this remedy.
The information contained in these Myths & Misconceptions is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel. Lynn Krupnik is an attorney with the law firm of Ekmark & Ekmark, L.L.C., where she has been practicing in the area of community association law since 1997. Ms. Krupnik was admitted to the CAI College of Community Association Lawyers, and speaks and writes often on topics that affect community associations. Elaine Anghel is the Vice President of Management Services of Tri-City Property Management Services, Inc. and has been in the homeowner association industry since 1993.
CENTR AL ARI ZO NA CHAPTER
Myth: The association can prevent an owner from submitting a request for architectural approval if the owner is delinquent in paying their assessments. Fact: Very rarely does the association actually have the authority to prevent an owner from submitting a request for 14
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Stop by our office… 1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020
Summer 2013
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P u bl i c R e l a t i o n s
Public Relations Happenings At the end of 2012, we launched our social media initiative. Do you accidently delete those emails with updates from the chapter? Often you can find the information you’re missing on our Facebook or our more recently launched Linked In Group. Check us out! If you haven’t already done so, be sure to LIKE us on Facebook and JOIN us on LinkedIn! Central Arizona Chapter of CAI Facebook: https://www.facebook.com/CentralArizonaChapterofCAI?ref=hl Community Associations Institute Central Arizona Chapter Linked In: http://www.linkedin.com/groups/Community-AssociationsInstitute-Central-Arizona-4838580?trk=myg_ugrp_ovr
Other happenings… Our PR Consultant Chuck Montera continues to develop opportunities for our chapter to educate homeowners. On June 4, 2013, ten CAI-CAC volunteers consisting of attorneys and managers participated in the HOA Help Line. The Channel 12 News and AZcentral.com program offers the opportunity for people to call-in or go online and have their HOA-related questions answered. In two hours, the volunteers answered approximately 170 questions with popular questions relating to feral cats, homeowner disputes, mismanaged funds and architectural guidelines. Here are some of the questions we received: Q1: My HOA wants to read aloud the list of homeowners who have not paid their assessments at an open meeting. Can we do that? A1: The HOA should not do that. Besides the privacy concerns, everyone has to live next to these people. Additionally, if the HOA is wrong and someone has paid their assessments, reading their name at an open meeting could make the HOA liable for slander. Q2: My home owners association donates thousands of dollars to the Boy Scouts. When I inquired about this policy they said they were allowed to do whatever was best for the neighborhood. The neighbors were never informed about this or asked for approval. Is this legal and if not, what can be done to stop it? I have nothing against the Boy Scouts but do not feel this is what I pay association dues for. A2: Pursuant to statutes and CC&R’s the association should not be using funds for purposes unrelated to the HOA, unless previously approved by the members. An exceptions would be if the Boy Scouts are performing a service for the community or if the funds are coming from somewhere other than the assessments. First step would be to approach the board and ask for explanation and a cessation of the activity. If they do not comply the next step would be to consult with a legal expert.
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Q3: If the HOA Board wants to change anything within the CC&R’s does it require a 2/3 approval from homeowners? A3: Your CC&Rs should have a section in them outlining the requirements for approving an amendment. Arizona State Statutes do limit the maximum approval required to amend CC&Rs to 2/3rds of owners eligible to vote; however your own documents may require a lesser number such as a simple majority. http://www.azleg.gov/ArizonaRevisedStatutes.asp Q4: How do we get the needed number of votes to amend the CC&R’s? A4: Some tactics used by associations include a door-to-door campaign on top of mailing ballots. Holding a community event to get the word out and bring in the vote. Proxies cannot be used under the AZ Planned Communities Act and AZ Condo Act. RESOURCES FOR EDUCATION AND INFORMATION Listed below are some sources for information helpful to homeowners, board members and managers. CAI National website: www.caionline.org Maricopa County Assessor’s Office: http://mcassessor.maricopa. gov/ Arizona Corporate Commission: http://www.azcc.gov/ Arizona State Legislature – Arizona Revised Statutes: http:// www.azleg.gov/arizonarevisedstatutes.asp The Examiner.com is a top 100 website reaching 37 million visitors a month with freelancers providing articles sharing their knowledge and expertise in a variety of areas. CAI member Dale Stansel, with Pride Community Management and Co-Chair of the Public Relations Committee, has been accepted as Phoenix Housing Examiner by Examiner.com and his first article, Is your HOA prepared for a disaster?, went live May 23, 2013. Dale also reported on the Barto bill S-1278 that restricts HOA’s established after 2015 from enforcing street parking. To read these and future articles, visit: http://www.examiner.com/housing-in-phoenix/dale-stansel http://www.examiner.com/article/is-your-arizona-hoa-preparedfor-a-disaster-1 http://www.examiner.com/article/new-law-restricts-hoasestablished-after-2015-from-enforcing-street-parking Do you have something news worthy “happening” in your community? If so, let us know about it! Contact Brandi Reynolds at brandi@chaixlaw.com or at 602-561-1094, so we can get your association the PR it deserves. Brandi Reynolds, Law Offices of John Chaix
I do not know you. I do not know your company. I do not know your company’s services. I do not know your company’s reputation.
Now, what is it you want to sell me?
Sales start before your salesperson calls… by advertising in CAI’s Community Resource Magazine.
Call 480.634.1708 to advertise. Summer 2013
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The New Market Demand By Rebecca Herro
Tractors running, bare dirt being transformed into communities and upgrades to existing amenities-- these are just some of the exciting things that have been taking place over the past 12 months here in the Valley. Three years ago, not that I have to remind anyone, that activity wasn’t happening. For all of us, that meant changing expectations and the reality of doing more with less. Today, as the market continues to regain momentum, we are all challenged with shaping our organizations to meet the new expectations of our clients. Good customer service and providing value are priorities. In order to be successful, we have to treat our clients as more than contracts and numbers; they are partners and we must integrate with their business to help make them successful. More often than not, that means doing things quite differently than others to provide high results that stand out. One thing that never changed as the market fluctuated was the expectation of excellent customer service. The challenge for companies was to figure out how to still provide excellent customer service while adapting to rapidly changing economic conditions. One way to do that is to invest capital to upgrade processes or deliverables. In this business, that meant investing in communication capabilities to improve client communications; in other words, utilizing new communication technology - like iPhones® and iPads® for field teams. Experience tells me that using smart technology takes some practice, and maybe a couple months or more of training sessions to get teams used to the capabilities of these devices. They aren’t just for Facebook® or Angry Birds®! Adding technology can be well worth the learning curve. Foremen and field managers can receive emails (with photos and GPS coordinates) and calls from clients out in the field during the work day and respond immediately. An additional benefit is greatly improved communication internally, which leads to increased efficiency and then back around again to a better customer experience. An issue in the field can be emailed with a photo and GPS location to the crew, and they can respond and fix the issue – virtually eliminating wasted time and confusion related to the request. In the landscape industry where they are so many small moving parts, this is a big time saver. It means we spend less time trying to figure out the details
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of the project and more time working toward the solution, giving our clients faster response and a better experience. 2013 has brought about a lot of optimism in the economy, particularly in the housing market. As the market shifted over 2012, we saw a marked change in the decision making process - lowest price isn’t necessarily the deciding factor. Though pricing has to be competitive, boards are looking for full-service companies that distinguish themselves from the rest of the market through their expertise and experience. By branching out and embracing programs that make a company unique, communities get more value for what they spend and positively impact the relationship between the community and vendor. One of the most expensive things in a community’s budget is water. In landscape especially, the expectation is moving towards tracking it, managing it, budgeting it for the community, analyzing it and even guaranteeing how much of it will be used each year. Providing and honoring a water guarantee is one of the new aspects of landscape management. While water management isn’t a practical solution for every company that works with communities, the theory behind it is: finding something that provides value to the community by saving them money and limiting assessment increases! In the end, all of this boils down to one thing: trust. Whether that is through better customer service or unique solutions to their challenges, your customers have to trust that you are a partner with them. As growth (hopefully) continues, we believe the trend toward high service standards and high quality results will remain a critical priority to client satisfaction. Exceeding those standards, at what is often a lower price point, is the environment we are all now in. Successfully navigating how you provide your services and how the customer receives them is critical as the Valley housing market continues to change. Balancing service, quality and cost for both current and prospective clients while maintaining the integrity of your business and image is the new market demand. Rebecca Herro leads DLC’s Client Relations Team. As a member of the DLC family for the past 5 years, Rebecca’s team supports the needs of DLC’s 25 Community Partners as well as implementing the company’s growth strategy for future clients.
The Economy is Picking Up… But is it too late to save your community’s most valuable asset? By Mark Beatty If your community postponed the maintenance of asphalt roadways while the economy was down, it could mean that you have accelerated some major asphalt rehabilitation costs. I’m not sure it’s accurate to explain asphalt this way… but I think you could say that asphalt streets are deceptive. Or maybe it’s more accurate to say that our perception of asphalt streets deceives us. Too often, asphalt roads are perceived to be something that will last a lifetime. The reality is that asphalt streets have a limited lifespan unless they are properly and proactively maintained. Becoming familiar with the basics of asphalt preservation and being proactive will unquestionably drive down maintenance costs for your community. Test your knowledge on asphalt preservation by answering “true” or “false” to the following questions: 1. _____ If there isn’t cracking in the asphalt, wait one more year to install an asphalt preservation treatment. 2. _____ A “seal coat” and “slurry” are different terms, but reference the same type of surface treatment. 3. _____ A seal coat must meet specific durability standards before being classified as an asphalt seal coat. 4. _____ No preservation treatment is guaranteed for five years. Understanding the answers to these few simple questions will lower pavement ownership costs. The most effective strategies for managing pavement also minimize the need for road closures that are always a burden to residents. The answer to each of the questions in this quiz is “false.” Here is why:
2. Seal coats & slurry A “seal coat” and “slurry” are different terms that refer to vastly different types of surface treatments. Often, the term “slurry seal” is mistakenly used in place of the term of seal coat. Slurry should be properly designated as a Type I, Type II, or Type III “Slurry” as defined by the International Slurry Surfacing Association. A lack of understanding here can lead to accepting bids and even going so far as having a surface treatment installed that doesn’t match the condition of the pavement. As a general rule, slurry (which leaves a grainy residue post-installation that residents often find a nuisance) is best installed on asphalt in fair to poor condition or streets with higher amounts of traffic or heavier loads. 3. Seal coat standards & new trends Unfortunately, bids from a contractor offering a seal coat do not have to meet a specific standard to be classified as a seal coat. The bigger problem is there’s also no way to know if a contractor is applying a seal coat to manufacturer recommendations. This would require collecting a sample at the time of application and sending it to a lab to determine if it’s been weakened with the addition of too much water, for example. The fastest growing trend is away from seal coats to a High Density Mineral Bond (HA5) which has a specification established by the American Public Works Association and carries a performance guarantee for a minimum of five years. When considering options, do your best to reduce the liabilities associated with making a decision that ends up costing a community more over time. 4. Seal coat durability According to an industry trade organization, seal coats are recommended to be reapplied every three years. This ends up being a very expensive way to attempt to extend the life of pavement. Again, the trend toward the use of a High Density Mineral Bond (HA5) is driving down the life-cycle costs of pavement ownership when compared to seal coats.
1. Low cost strategy One of the most common reasons an asphalt street or parking lot requires unanticipated reconstruction or costly major rehabilitation is due to the delay of initiating a pavement maintenance program or simply installing an ineffective surface treatment. The most cost-effective method for preserving asphalt pavement is to preserve the asphalt binder BEFORE oxidative stress leads to deterioration and eventual failure. When we react and install a preservation treatment as we see signs of visible distress (such as cracks), we’ve already reduced the life span of the pavement and added to the cost of maintaining it going forward. To put it simply, the lowest-cost means of preserving asphalt is to “keep a good pavement good.” Mark Beatty is the VP of Holbrook Asphalt. Mark sits on national boards focused on the promotion and education of proper pavement preservation.
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Creative Thinking and Planning By Suzanne White, CMCA, AMS and Manny San Miguel
In a struggling economy, associations typically take the time to look at where they are spending money and what expenses can be cut back to see where they can provide more cash flow for working capital projects for their reserves and budgets. Coming out of a troubled economy, associations face many challenges. Lack of attention to proper increases and improper budgeting for future capital improvements can result in deferred maintenance problems that require attention. A properly completed reserve study and strategic plan are vital in order to prepare for the future fiscal and physical plant health of any type of association. As the economy turns around, associations are making positive changes to reduce their spending, or are spending their money more wisely. As we begin to be more creative in how our association dollars are spent, we also become more aware of what we are spending our dollars on. We ask ourselves, “What projects and improvements do we want to undertake, and how should we be investing our funds?� The turn of the economy has taught us how to make choices on the issues that really matter to us. It has taught us how to save money instead of wasting it. It has made us grateful for what we have instead of complaining about what we do not have. It has made us consider our jobs and evaluate what needs to be done so we can stand out amongst the crowd and become more creative in our approach to the way we do things, handle situations, and spend our money. Many have been able to recognize strengths that they did not think they had and have been able to deal with situations that they thought they may not have been able to get through. This has made us stronger personally and with our clients. With creative thinking and plans, we have been able to service our clients more thoroughly in all areas. There are many creative ways to support our investments as we are coming out of a struggling economy with special assessments and loans with low interest rates for large capital improvement projects that may have been deferred. How does your association bounce back from a situation in which a capital improvement project has been identified, but there are not enough funds in reserves to pay for the project? In many situations, association money is being wasted in trying to repair the issues. A complete replacement may end up saving 20
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the association in the long run. There are several ways in which an association can finance capital improvement projects. For example, associations can raise regular assessments, pass and collect a special assessment, or utilize a combination of the two, along with obtaining a loan. As a corporation, the association may have the ability to borrow money for these projects, depending on their governing documents. It is a specialized loan – not difficult with most banks, but it has some delinquency hurdles in some communities. Advantages of obtaining a loan include avoiding a one-time lump sum special assessment, improvements are completed quickly, downward slide of property values are slowed or eliminated and the association has the potential to save money that is currently being spent with repairs. Disadvantages include a possible increase in assessments. In addition, interest and loan closing costs are incurred. Homeowner association loan terms are generally one to fifteen years, depending on the useful life of the project. Association lenders will look at several aspects of the association during the approval process, including the size of the community, current and past cash flow, delinquencies, the current delinquency policy, a reserve study, financial documents and the overall stability of the association. Common questions regarding an association loan are usually regarding personal liability, from either board members or the individual homeowners. As a corporation, the association is responsible for the loan, not the board or homeowners. The homeowners still have an obligation to pay their regular and/ or special assessments in a timely manner, so only statutory assessment liens exist. When trying to obtain membership approval, it is imperative to build confidence in the community through leadership. The message to the homeowners should include properly identifying the extent of the problem, ensuring the board has reviewed several options and an adequate fix plan has been selected, an assembled team of industry experts have assisted through the process and all options for paying back the loan have been explored. Suzanne White, CMCA, AMS, is the Director of Business Development at Paramount Roofing and Paramount 911 Restoration and Construction and has worked in the association management industry for 9 years. Manny San Miguel is Vice President for Mutual of Omaha Bank, Community Association Banking. As a Regional Account Executive, his territories include Arizona and New Mexico.
Back to the Future By Brooke Songer, CMCA Unless you have a DeLorean time machine hidden somewhere, it is important to recognize the importance of, develop, and implement a strategic plan for the future of Valley communities. Year after year, organizations come together for strategic planning, but often walk away validating only what has already transpired or is in progress. Why would a community association need a strategic plan? Too many directors, committee members, management representatives, and affiliate partners are too focused on what is happening today, that what may come tomorrow, next week, or in a few years is completely neglected. This is easy to do. Everyone has a full plate, all the time. Also, board members have short terms on the board, and managers, unfortunately, change all too often. This does not lend to future thinking. However, future board members, future management, and future partners on property are being set up for failure if the time is not allocated on an annual basis to visit, revisit, and measure the old strategy that was (or was not) implemented and put new initiatives into effect by the people who are serving the community NOW. Take up a meeting or two, gather thoughts from anyone who is involved in the community, and put together a plan that actually has strategy in it. Take on the responsibility of answering the questions, “What must we do to create and deliver quality for our residents?” and “What do we need to achieve?” A good mission and vision statement for the community are also necessary to determine a solid future plan. These are not interchangeable items, so ensure you have both in place. An effective document will address what you want for the end result and then have goals and initiatives to go with each of them. A few things to think about: • Improving partnerships • Maintaining revenue • Fostering community involvement • Maintaining assets • Recognizing and overcoming obstacles As communities age, they breed different needs. New developments will always get to the place that our old ones are at today. Use that experience and transfer it into the plan. Also, utilize industry tools such as reserve studies and tree management programs. Updated reserve studies will assist you significantly in planning for the future of the neighborhood. A good tree management program will map out each species and provide a budget for the next three to seven years for tree thinning. This expensive, ongoing process is vital to a community. CAI has several partners that offer these services, so speak with a few of them to understand the benefits of these tools to provide physical and emotional health in the community for years to come. Now that the economy is recovering, it is a great time to draft this working document if it does not exist already. Once this plan has been created, share it with everybody. Let people know what you are doing. Moreover, let people know HOW you are achieving this and WHY, as great leaders always do. Brooke Songer, CMCA, is a principal member of Uptown on 27th, LLC, a Valley community management firm and holds a BA degree in Communication Studies and an MBA with a focus in non-profit management.
ADR: What it is and Why it Matters By Bryan Memmot, Esq. With the economy and housing market bouncing back, we are finding that association boards are starting to deal again with a lot more than just foreclosures and short sales. With the return of homeowners comes the return of homeowner and association “issues”. It’s inevitable... association boards and members are not always going to see eye-to-eye. We all know that homeowners don’t often see the association boards as a group of volunteers looking out for the best interest of the community. Rather, homeowners often view the board as the enemy who is out to get them. Because of this, minor issues that should be resolved in a simple manner can become ugly conflicts. Board members are charged with resolving any conflicts with owners in a way that is in the best interests of the association and all owners at large. Sometimes, in a sit-down meeting with open dialogue, the board and the opposite side will discover their disagreements are actually quite narrow, and the conflict can be easily smoothed over. On other occasions, however, the conflict leads to drawn-out and expensive litigation, where the attorney fees alone can greatly exceed the dollar value of the dispute. There is a third way to resolve disputes, known as “alternative dispute resolution” (commonly abbreviated as “ADR”). ADR provides for the resolution of a dispute by a disinterested third party in a manner short of going to trial before a judge or jury. Parties usually prefer ADR to a jury trial because it is informal and usually cheaper. ADR is so common that some jurists are concerned that jury trials are disappearing. Part of the reason ADR is becoming so routine is, though ADR is in some cases voluntary, for many association disputes it is actually mandatory. Under Arizona law, many lawsuits must go through arbitration before they can be tried in the actual courtroom. In other cases, the Arizona Rules of Civil Procedure allow for a party to make a motion asking the court to direct the parties to attend ADR. In any event, litigation is usually not the best way to resolve a problem. Consider that even after the litigation is resolved, the homeowner and the board are probably even more at odds with each other than before the litigation began. It’s not enough to simply win a case; the board should be trying to resolve problems for the benefit of the entire community. Although it can not always be avoided, rarely is making an enemy going to best for the community at large. There are two common types of ADR: mediation and arbitration. While they are easy to confuse because they have similar names, in substance, they are actually quite different. Mediation is an opportunity to negotiate a settlement of a dispute. Usually, the parties to the dispute gather in separate rooms ADR | 23
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Digging Deeper By John E. Kaye, AMS, CMCA Whether an owner, prospective buyer, or a mortgage lender, we all seem to be a little more focused about health these days; health as it pertains to not only our bodies, but also everything from the economy to our next automobile. Buyers want to know about the health or condition of the place that they are either interested in purchasing or have just bought. Conversely, sellers want to be able to paint their association in not only a good light, but one that shines brightly. In the past, to determine an association’s health, I would have reviewed its balance sheet. The balance sheet provides a decent viewpoint of the financial condition of an association. If done well, it can provide enough detail to determine the management techniques used and the direction that an association is heading, as well as alerting the reader of potential red flags. We have all come across many of those red flags, but as we have seen, our industry has changed since the financial and real estate shift. “The best investment you will ever make” has completely changed. Almost everyone was impacted by the real estate earthquake that hit the nation around 2006. Subsequent tremors continued to impact not only our personal lives, but also our very livelihood as managers and professionals in the community association industry. Controls became tighter and rules, regulations, and rhetoric shifted on a national level. It appears that the tremors have subsided, and we are adjusting to our new reality – both personally and professionally. Insurance professionals, accountants, reserve analysts, mortgage brokers, bankers, and, yes, even managers, have changed how they operate on a day-today basis. Perusing a balance sheet in 2013 to determine the overall health of the organization is like getting a clean bill of health after having had your blood pressure checked. But we need to dig deeper into what lies beneath even a somewhat transparent surface. Although many of us are all too familiar with the increase that we’ve seen in outstanding delinquencies at some of our properties, it is no longer enough to merely state a number. Digging deeper requires knowing if there are monthly status reports being provided by the association’s counsel, and whether there are bank foreclosures, association foreclosures, and any bankruptcies; and if so, whether they are chapter 7 or 13. Status reports become an important tool that can demonstrate that managers and boards are on the same page. However, even the best balance sheet can’t tell me the number of rentals in an association, or the trend in rentals over the past few cycles. It can’t tell me if that association is FHA approved. It certainly can’t tell me if this is an association that contains unit owners who can’t refinance, or worse yet, cannot sell their units. From the balance sheet, I can determine if an association is set up on an accrual or cash based accounting system. Noting that is one thing, but examining and asking the reasons behind why an association may still be set up on a cash system is another. I am not an advocate for cash reporting, but inquiring about the decisions of management to report in a cash environment is desirable and important to the analysis of the figures presented.
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What about the financial reporting itself? Digging deeper requires a look at the software that the association or management company is using. Also, a look at the education level of those producing reports is of greater importance now. I want to know if there is CAI involvement at a local or national level and if staff is working to enhance their education level within CAI by taking courses relevant to their chosen profession. I also want to see that there is a budgeted line item for bad debt – something that previously was not as significant as it is now. I am a big proponent of reserves studies. I believe they are one of the greatest tools an association has. That said, the existence of a reserve study simply is not enough any longer. It’s a great tool, but it doesn’t do much good unless it is used. I want to see the dollar amounts that the analyst is recommending, the actual amount that was funded for the past two years, and the last time it was updated. I am not saying that I necessarily expect to see that each and every association has budgeted to fund the reserve to the recommended amount or, much less, has actually funded the replacement reserve to the recommended amount. I do want to see, however, that there has been an attempt to utilize the tool and draw conclusions about the useful life of the common and limited common elements of the association and the need to fund for their future replacement costs. I’ve seen many associations spend time, energy, and money to have a reserve study performed, only to have that study filed in a drawer somewhere. Yet, when budget time rolls around, questions like “Have you seen the reserve study?” and “Does anyone know if the association has ever updated this reserve study?” seem to be all too common. As you can see, reporting that there are receivables on an association’s books is valid and does provide some useful information, but it’s just not enough. How collectible those receivable balances are is more to the point and reaches further into determining the true health of the organization. So, when we speak to the idea of digging deeper, who needs to do this digging? Well, it starts with the potential buyer. Buyers are one of the best testers for the ideas, methodologies, management techniques, maintenance plans, rules and all the other things that we as managers strive to put in place and work to provide to our clients. They are the real testers because, after all, if an owner can’t sell their asset when it’s time to sell, there’s a problem in the chain somewhere. What about banks, lenders, and mortgage companies? It doesn’t serve our clients well if we merely serve to answer the questions being posed by owners’ lending institutions. We put ourselves and our associations in a much better light if we begin the digging first and are then able Digging Deeper | 23
Digging Deeper
to assess the financial and overall health of the association – before a lender brings forth any of their own perceived shortcomings of an association. The profession in which we work continues to change more rapidly now than ever before. When I look at the changes that have been implemented and continue to change in the real estate market, it would have been hard for me to envision those sweeping changes even five years ago. Lending standards have changed, which alters the way buyers purchase the units that we manage. When buying behaviors change, we need to look into those patterns and see how that may impact how we manage. In other words, when lending standards change, construction slows, rentals increase, and we have no choice but to dig deeper. When the mortgage companies, banks, and title companies begin to dig deeper, it is a sure sign that we, the sentinels of the associations, must dig deeper as well to assure that we are guiding and managing the associations effectively, accurately and responsibly. We must ask more of our associations, just the same way that lenders are asking more. We can’t ignore the standards and requirements of lending institutions; rather, we must look to them if we are to guide and manage effectively. To do that requires a deeper analysis of the facts within the association. From the insurance policies to the implementation of financial controls, and from the reserve studies to the real estate closings, we sharpen our own skills through the actions of other components or facets of this industry. In doing so, we see parallels with those other factors and, theoretically, become management agents of change rather than of reflection. What about the pitfalls of digging deeper? Digging can be scary territory. Digging does not always mean we will find gold. What if we uncover something that may be better left ADR
untouched? That is the risk of the dig. There may be unfunded reserves under that dirt or there may be more rentals than we really wanted to see. Shovels can be a useful tool, but they have also been known to sever many an irrigation line! Our investigations on behalf of the association do not mean we are digging their grave; rather, we dig to identify whether the association is in good working order or to provide recommendations for improvements. In a world of Yelp®, Carfax®, and itunes®, people are increasingly looking to these outside sources to determine where they want to eat, what they want to drive, and the latest trends in music and movies. Someday, our collective digging into the health of the associations may help people determine where they ultimately choose to live, work, and raise their families. How may our digging impact community associations in the future? How do we help guide potential buyers into the right unit to purchase? And, how do we change a perceived paradigm about association living to help assure that owners who may want to purchase actually can purchase? These are all questions that I believe we should ask – not at budget time, not at quarterly staff meetings, but each day that we come suited up to manage our associations. We must continue to demand more from ourselves and look into the “hows and whys” of what makes a community association great. Not only do we have to be flexible enough to the idea of change, but we have to be bold enough to effectuate that change by digging a little deeper – maybe even a lot deeper. John E. Kaye, AMS, CMCA has worked as an accountant in the industry for over 20 years, managing portfolios in both commercial and residential management. He has worked as a controller in property management, done extensive financial consulting work, written articles for industry publication and owns a financial services company.
Arbitration, in contrast, is like an informal trial before the arbitrator. Lawyers for both sides will usually have the opportunity to make opening and closing statements, call witnesses to testify, and conduct cross-examination. The arbitrator acts as both the judge and jury, deciding all issues of law and fact. At the end of the presentation of evidence, the arbitrator issues a decision to resolve the dispute. Usually, that decision is binding and can be filed with the court so that it becomes an official ruling. While arbitration is typically less formal than a trial, while saving some time and expenses associated with selecting a jury, it can still be quite expensive depending on the complexity of the issues, the extent of discovery required, and the amount of money at stake. Arbitration is often the final word in a dispute, so it should be taken seriously.
Those documents vary greatly from requiring no ADR, to requiring several different types of ADR before the association can file a lawsuit. Second, be familiar with the requirements of the governing documents and the various Arizona laws, or hire legal counsel familiar with those requirements before filing a lawsuit. Third, be aware of ADR programs within the community. Some cities and counties offer free ADR in hopes that small disputes can be resolved without extensive fighting or litigation. An association can use these programs—usually a mediation type program—to resolve their disputes short of litigation. In some instances, the association and owners may be able to participate in these programs without hiring a lawyer. Everyone knows that full blown litigation is rarely the best way to solve these problems, since attorney’s fees can be very expensive and it can take months and years to get something resolved through court. Because most civil litigation cases are settled before they get to court, and therefore will not entail an award of attorney’s fees for the successful party, an association can find itself expending association funds on legal fees rather than the association’s real needs. In short, an association can use ADR as a tool to protect the association’s interests and resolve disputes in a manner that is hopefully more efficient and less expensive for all parties involved.
What should individuals in the community association industry know about ADR? First, be familiar with the association’s governing documents requirements with regards to ADR.
Bryan Memmott is the managing attorney for the Arizona office of Vial Fotheringham, LLP. He has been an attorney for 12 years. His focus is real estate and HOA law, but his background includes spending five years as an officer for the Unites States JAG Department.
in one building, and a neutral attorney (the mediator) moves between the rooms to try and settle the case. The mediator attempts to broker a deal between the parties, giving the parties a realistic evaluation of what a disinterested judge or jury will do with the case. However, at the end of the day, if the parties cannot agree to a resolution of the dispute, they can walk away. Mediation is not binding.
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Annual Sponsors
CAI - Central Arizona Chapter
2013 Annual Sponsors
DIAMOND SPONSORS Carpenter Hazlewood Delgado & Bolen, PLC CCMC Maxwell & Morgan, PC copper SPONSORS CBI Consulting, Construction Management & Forensics GOLD SPONSORS Alliance Association Financial Services Community Association Underwriters of America, Inc. Dicks Coglianese Shuquem, LLP DLC Resources, Inc. Holbrook Asphalt Co. Metro Phoenix Bank PureGreen Landscape, LLC Vial Fotheringham, LLP SILVER SPONSORS ACE Construction Services, LLC American Technologies, Inc Burdman & Shore Burns Pest Elimination Caretaker Landscape and Tree Management, Inc. Clean Cut Landscape Management Desert Classic Landscaping Goodwill of Central Arizona Gothic Landscape Jon Wayne Construction & Consulting Kasdan Simonds Weber & Vaughan, LLP Mutual of Omaha Bank Nautilus General Contractors Paramount Roofing, LLC Pinnacle Restoration Popular Association Banking Red Rock Financial Services RenCo, LLC Republic Services Rossmar & Graham Sentry Management, Inc. Sherwin Williams Paint Trident Security Services, Inc. Universal Protection Service US Bank Valley Protective Services BRONZE SPONSORS Allscape Property Maintenance ALPHA Community Management BlueStar Landscape Brown Community Management Butler Hansen, PC Ginsberg & Dwaileebe CPAs Jomar Association Services PMG Services TLC-The Landscape Company Tri- City Property Management CORPORATE SPONSORS COIT Cleaning & Restoration Home Team Pest Defense Smartstreet/Union Bank
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Hello, I am an Ad. Valhalla Community Magazines
(480) 634-1708
Diamond Corner
Diamond Corner
we need as associations bounce back. The associations with money, and with well-preserved homes and common areas will survive the inevitable next downturn.
The CAI Central Arizona Chapter wants to thank our Diamond Sponsors, whose contributions assist us in preserving, protecting, and enhancing the industry. Our Diamond Sponsors contribute at the top level to our organization and are recognized in each issue by providing helpful information to our members.
CCMC Is your community bouncing back as the market recovers? If so, you may have noticed a subtle shift in thinking. Residents may be less focused on what they need and more focused on what they want. For community managers, this is also the perfect time to conduct a community survey. This will give you the insight you need to realign your priorities, reallocate resources and reevaluate your plan.
Carpenter Hazlewood Delgado & Bolen, PLC As the economy rights itself, and associations do as well, we as lawyers tend to see clients becoming complacent. Things are getting better, so why does the association need a consistent collection or enforcement policy? Things are better, so why does the association need to increase assessments? The answer is that there are always delinquencies, always violations, and never enough reserves. Consistency, not complacency, is what
Maxwell & Morgan, P.C. The worst of the storm appears to be behind us. Now is the time for boards and managers to evaluate the physical condition of their properties; financial condition of their communities; and forge ahead with a recovery plan. This includes restarting the long neglected painting and repair projects, reinitiating enforcement of the governing documents, and collecting on the judgments obtained during the great recession.
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C o n g r at u l at i o n s Corner & 2013 committee chairs
AMS Designations Sun City Grand Community Association Ms. Mitzi Mills Jomar Association Services Ms. Diana Ebertshauser Preferred Communities Mr. Robert Herrera
CMCA Designations Total Property Management Ms. Lori Grove Arizona Community Management Services, LLC Miss Lindsay Bowden Westbrook Village Association Mrs. Karen Jones
Special Congratulations
CAI National Conference Volunteer of the Year Award Winners Award of Excellence in Chapter Leadership – To an individual who has made significant contributions to advancing national-chapter relations and provide support and guidance to the chapter leaders. Bruce Gran, CMCA, AMS, PCAM Bruce is one of our jet-setting members who conducts business in multiple states. As a member of the Business Partners Council and a trustee, he takes his role as a chapter liaison to heart. Instead of just corresponding with a few chapters, he is always asking to take on more. He interacts with the chapter leaders, members and chapter executive directors to discuss issues and ideas to improve and strengthen the entire organization. Bruce truly enjoys his opportunities to interact with a variety of chapters and provide a link to the international organization. His efforts and contributions to and for the chapters truly set him apart. Award of Excellence in Membership – To an individual who has demonstrated leadership by supporting CAI membership campaigns and who is an active, consistent recruiter. Linda Van Gelder Linda is one of the driving forces behind membership growth in her area. The Central Arizona Chapter has experienced higher than 20% membership growth in the past few years. As a committee member and chair of the chapter’s membership committee, she always has a smile on her face, greets everyone in the room, and invites the new members in like they were walking into her home. Linda has spent countless hours driving around the valley with the chapter executive director visiting potential and current members to see if there is anything the chapter can do for them and encourage them to take more advantage of their membership. In 2012, she shared her experiences about membership growth in her chapter with chapter presidents-elect as a panelist at CAI’s Annual Conference. Linda’s infectious enthusiasm and dedication has contributed significantly to CAI’s growth. 26
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Distinguished Service Award – CAI’s most prestigious award, the Distinguished Service Award is presented periodically to an individual selected for long-standing, extraordinary contributions to the Institute. Donald E. Dyekman, Esq. CCAL Don Dyekman’s CAI leadership commitments have spanned four decades in national and local positions. He is a national past president, past dean of the College of Community Association Lawyers (CCAL) and has served on numerous committees over the years. One of the first members of CCAL, Don prepared the case law update materials for the Community Association Law Seminar for more than a decade – a time consuming project of culling case law from around the country to provide Law Seminar attendees with information about interesting cases and trends in our industry. He is highly professional and reliable and is very well regarded by his peers. He is one of the pioneers practicing community association law and set a high bar for ethical and professional standards. His many years of service to the Institute and the industry embody the qualities needed to earn the Distinguished Service Award.
2013 Committee Chairs EDUCATION Mark Holmgren, Esq. Carpenter, Hazlewood, Delgado & Bolen, PLC (480) 427-2845 mark,holmgren@carpenterhazlewood.com
Legislative Action Scott Carpenter, Esq., CCAL Carpenter Hazlewood Delgado & Bolen, PLC (480) 427-2800 scott@carpenterhazlewood.com
Kristine Nau CCMC (480) 726-8080 knau@ccmcnet.com
Angela Potts, Esq. Potts Law Offices (480) 499-5301 apotts@pottslawoffices.com
Membership Linda Van Gelder Alpha Community Management (623) 825-7777 linda@alphacommunitymanagement.com
Magazine Jessica Maceyko, Esq. Ekmark & Ekmark, LLC (480) 922-9292 jmaceyko@ekmarklaw.com
Toni Rudolph US Bank (602) 257-5355 toni,rudolph@usbank.com
Vanessa Dreyer, PCAM CCMC (623) 215-8646 vdreyer@ccmcnet.com
PCAM Mark Wade, CMCA, AMS, LSM, PCAM Leisure World Community Association (480) 832-0003 mwade@leisureworldarizona.com
Programs Manny San Miguel Mutual of Omaha Bank (602) 690-2136 manny.sanmiguel@mutualofomahabank. com
Jim Welch, CMCA, AMS, LSM, PCAM Mountain Park Ranch Homeowners Association (480) 704-5000 jim@mtparkranch.org
Lorene Gilbert Clean Cut Landscape Management (602) 326-3903 lgilbert@cleancutlm.com
Public Relations Brandi Reynolds Law Offices of John Chaix (602) 561-1094 brandi_ann_reynolds@yahoo.com Dale Stansel Pride Community Management (480) 682-3201 dale@pridemgmt.com
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C a l e n d a r o f Ev e n t s
2013 CAI-CAC Event Calendar
JULY 11th
New Member Happy Hour Meeting Sponsored by: Back to Nature Landcare, Inc. Location: Aunt Chilada’s 7330 N. Dreamy Draw Dr. Phoenix, AZ 85020
18-19th
PMDP M-205 Tempe, AZ Location: Sheraton Phoenix Airport Hotel Tempe 1600 S. 52nd. St. Tempe, AZ 85281
AUGUST
DARK
SEptember 5th
New Member Breakfast Club Sponsored by: Metro Phoenix Bank Location: 4686 E. Van Buren, #150 Phoenix, AZ 85008
10th
CAI – Central Arizona Educational Lunch Professional Speaker Location: Phoenix Airport Marriott 1101 N. 44th St. Phoenix, AZ 85008
19th
PCAM Roundtable Discussion
october 3-6th
CEO-MC Retreat Location: Montelucia Resort & Spa Scottsdale, AZ
28-29th
CED Retreat Location: Washington, DC
For more information, visit the chapter website at www.cai-az.org or call the office at 602-388-1159. Items in red are CAI National events.
Is your membership current? Contact Kayte Comes at (602) 388-1159 or kayte@cai-az.org. C EN T R A L A RI ZO N A CHA P T E R
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