Journal_12_02 by Echo

February 2012

A Journal for California Community Association Leaders

echo-ca.org

Central Coast Seminar February 25, 2012 Register Now

And Justice For All ALSO INSIDE THIS ISSUE:

• 2011 Statutory and Case Law Update • SLAPPs and HOAs • Can You Sleep on Stormy Nights?

Change Service Requested ECHO 1602 The Alameda STE 101 San Jose, CA 95126

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PRESENTING 2012 ECHO Events February 4

February 25

March 24

April 21

June 22, 23

September 22

October 20

Marin Seminar

Half-Day Seminar

Embassy Suites, San Rafael See page 39

8:00 a.m. to 1:00 p.m.

Central Coast Winter Seminar

Half-Day Seminar

Hilton Santa Cruz/Scotts Valley See page 29

8:00 a.m. to 1:00 p.m.

Wine Country Seminar

Half-Day Seminar

Sally Tomatoes, Rohnert Park See page 35

8:00 a.m. to 1:00 p.m.

South Bay Seminar

Half-Day Seminar

Campbell Community Center, Campbell

8:00 a.m. to 1:00 p.m.

ECHO Annual Seminar

Full-Day Seminar

Santa Clara Convention Center, Santa Clara

8:00 a.m. to 4:30 p.m.

Central Coast Fall Seminar

Half-Day Seminar

Hilton Santa Cruz/Scotts Valley

8:00 a.m. to 1:00 p.m.

Peninsula Fall Seminar

Half-Day Seminar

Crowne Plaza Hotel, Foster City

8:00 a.m. to 1:00 p.m.

Can You Sleep on Stormy Nights? —page 26 The ECHO Journal is published monthly by the Executive Council of Homeowners. The views of authors expressed in the articles herein do not necessarily reflect the views of ECHO. We assume no responsibility for the statements and opinions advanced by the contributors to the magazine. It is released with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent person should be sought.

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Acceptance of advertising does not constitute any endorsement or recommendation, expressed or implied, of the advertiser or any goods or services offered. We reserve the right to reject any advertising copy.

And Justice For All This article explores the importance of “due process” in association proceedings—the purpose of which is to give the subject of a hearing a fair chance to defend him/herself. Owners who feel they are treated fairly are more likely to comply with a board’s decisions and the governing documents that led to the hearing.

2011 Statutory and Case Law Update This article provides a summary of statutory and case law developments of interest to the common interest development industry for the calendar year 2011. It is limited to bills that were enacted into law by the California Legislature and published decisions of the California Court of Appeal.

SLAPPs and HOAs SLAPP stands for Strategic Lawsuits Against Public Participation. The California Legislature enacted the anti-SLAPP statute in 1992 in response to large land developers’ filing a lawsuit against environmental activists or an association intended to chill the defendants’ opposition to the developer’s plans. SLAPP suits are intended to deplete a defendant’s resources.

Can You Sleep on Stormy Nights? Mature trees provide many positive things for a community, including higher property values and improving the character of a neighborhood. But winter storms can damage trees on association property. This article points out things that can be done with trees to help them get through the winter months.

Departments

Copyright 2012 Executive Council of Homeowners, Inc. All rights reserved. Reproduction, except by written permission of ECHO, is prohibited. The ECHO membership list is never released to any outside individual or organization.

Executive Council of Homeowners, Inc. 1602 The Alameda, Suite 101 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours: Monday–Friday 9:00 a.m. to 5:00 p.m.

Board of Directors and Officers President David Hughes Vice President Karl Lofthouse Treasurer Diane Rossi Secretary Dorothy Kopczynski Directors Paul Atkins John Garvic Robert Rosenberg Brian Seifert Steven Weil

Jerry L. Bowles David Levy Kurtis Shenefiel Wanden Treanor

Executive Director Oliver Burford Director of Member Services Jennifer Allivato

32 News from ECHO 33 Getting the Best for Your Roof

34 Directory Updates 36 ECHO Bookstore 38 Events Calendar

Design and Production George O’Hanlon

41 ECHO Marketplace

ECHO Mission Statement

41 Advertiser Index

The mission of ECHO is to advance the concept, interests and needs of homeowner associations through education and related services to board members, homeowner members, government officials and the professionals in the industry.

On the Cover February 2012 | ECHO Journal

Legislative Consultant Government Strategies, Inc.

40 ECHO Volunteers

And Justice For All—page 6 4

Communications Coordinator Tyler Coffin

To: ECHO Members Dear Friends: Elsewhere in this issue of the Journal you will find a job description for a new ECHO Executive Director. During 2012, I will be phasing out my activities while working with the new Director. I have spent the past 27 years as an ECHO Board member or Executive Director of our organization, and the time has arrived to pass that baton to others. Much has been accomplished at ECHO in those years. Here is a partial list of the things that have been accomplished: • ECHO now has a full-time office in San Jose. • Homeowner association membership has increased from 318 associations to the present 1,400 associations, while associate membership has increased from 100 professionals and businesses to 320. • In 1998, the old ECHO newsletter was replaced by the 44-page Journal now being published in full color. • ECHO has established regional resource panels in the major geographical areas surrounding the San Francisco Bay, and we have a full program of Saturday regional seminars throughout our membership area. • ECHO initiated its legislative advocacy program in the early 90s, which has grown into a widely respected “go-to” forum in Sacramento. ECHO has successfully sponsored a number of important bills that are now part of State law. We supported the California Law Revision Commission in the recasting of the Davis/Stirling Act that is expected to pass the Legislature this year. • The Annual Seminar has grown from a small one-room program into the large full-day program that now occupies a sizeable portion of the Santa Clara Convention Center in June of each year. • ECHO formed an early alliance with the California Association of Community Managers and has worked effectively with CACM in the fields of legislative advocacy and manager education. I expect to continue to be an active participant in ECHO events and to see all of you in the future.

Oliver Burford Executive Director

ECHO Journal | February 2012

By Steven S. Weil, Esq.

And Justice For All Providing meaningful “notice” and an “opportunity to be heard” to HOA members hapter 15 of Robert’s Rules of Order begins like this: “Every organization has the right to enforce its rules and expect ethical and honorable conduct from its members. Most organizations have discipline problems from time to time. A discipline problem may be something as simple as a member misbehav-

February 2012 | ECHO Journal

ing at a meeting or an officer overstepping the boundaries of his or her office. If the problem is not corrected when it arises, it can escalate into something more serious...” An association has several ways to discipline its members. The fairness and effectiveness of each depends on the nature and context of the misbehavior, the enforce-

ECHO Journal | February 2012

ment tools available under the governing documents and the manner in which they are used by the association’s board of directors. Actions Contrary to the Governing Documents An owner installs a large deck without obtaining or applying for association approval; a resident’s pet is permitted off leash; so much furniture is stored in the garage that vehicles can’t fit: these are all common examples of CC&R violations. What are the remedies? How are they implemented? Most modern CC&Rs permit a board of directors to impose fines, suspend political privileges, limit use of common area amenities and perhaps levy a reimbursement assessment for costs incurred in remedying a CC&R violation. What is Due Process? Before implementing these disciplinary actions, the board must, under California Civil Code §1363, first provide the owner with an “opportunity to be heard” at a meeting noticed at least 10 days prior (and notice of adverse action taken within 15 days after). The applicable notice must be delivered personally or via first class mail and set forth “at a minimum” the date, time and place of the meeting, the nature of the violation and a statement that the member may attend and address the board at the meeting. The notice and process must, in the case of a nonprofit mutual benefit incorporated in California, be done “in good faith and in a fair and reasonable manner.” For “shorthand” we often refer to these principles as providing a member “procedural” due process (fair notice of the time and place of the hearing and the subjects upon which discipline might be based) and “substantive” due process (that the provisions allegedly violated and the penalty imposed bear a reasonable relationship to the use of land and the goal of ensuring compliance with the governing documents and conform to written guidelines like the “schedule of monetary penalties”). It is an interesting question (but far beyond the scope of this article) as to whether the due process required to be given by an association is the same as what must be afforded someone who is the subject of state action under the federal or state constitution. Surprisingly, there is no published case (one that can be cited to a judge) that applies due process principles to 8

February 2012 | ECHO Journal

imposition of fines or discipline. However, one unpublished decision decided in 2005 sheds light on what is required. The Aliusi Standard In Aliusi v Fort Washington Golf Club, a club member sued to set aside a decision of the board of directors permanently expelling him from the club. The notice of hearing accused him of using profane language to women members of the club and “prior offenses” that prompted a temporary suspension with the possibility of permanent expulsion. At the hearing, the member demanded to know the names of those who complained, but the board refused to provide that information (the witnesses may have been intimidated); he denied being vulgar but did admit telling his wife that the ladies were “a bunch of old hags” and that they should “shove their requested apology ——.” The board met privately and voted to expel him from the club. The decision was based not just on the recent incident of profanity but also on a history of incidents that included Aliusi’s failure to follow club parking, golf course rules and instructions from the club professional and the fact that his father was an alleged felon. Aliusi challenged his expulsion and the court agreed it was wrongful because he had been denied due process. Specifically, the court said the board should have given Aliusi an opportunity to cross-examine his accusers and notice of the “charges” against him. Applying Aliusi: Revealing the Names of the Complainants? Must a board reveal the names of those who have registered complaints against a neighbor? In my opinion, the answer is not always “yes” but instead depends on these factors: Severity of the Discipline: In Aliusi, the owner was permanently kicked out of a club he’d been a member of for over a decade. By contrast, the typical homeowner association cannot expel members (or even deny them access to their property). Some penalties involve only “censure,” or a small fine, or a temporary ban on use of common area amenities (like a park); and in those cases, the level of “due process” shouldn’t be as high as what was required in Aliusi. The magnitude of the penalty—and thus of the level of required due process—may vary depending on the specific facts involved. Subjective Violations: Some violations arise out of “he said/she said” transitory dis-

putes, especially those based on noise, basketball playing, improper driving and the like. In most cases, it will be impossible for the board to make any determination without assessing the credibility of the parties involved; in those cases, the parties should have a chance to “face their accusers” to help the board to determine the facts. Objective Violations: By contrast, a board does not usually need to assess credibility when the violation is obvious and can be analyzed regardless of who reported it. Examples are the backyard deck that exceeds the height of the fence; the installation of a permanent basketball standard; the parking of a commercial vehicle and the like. In these cases, the identity of the person who first lodged the complaint with the board is not necessary for it to determine the existence of the violation. Thus, the name of the “accuser” is irrelevant to the target of the discipline.

Due process requires a board to identify for an owner the provisions of the governing documents claimed to be breached and the provisions giving the board the power to impose discipline. Documentary Evidence The other problem in Aliusi was that directors considered written evidence (complaint letters, rules) that had not been discussed with or provided to the member being targeted with the punishment. Generally, the failure to provide a member with the documents and records upon which a penalty is based will cast doubt on the fairness of that penalty. These materials might include photos, diagrams, complaint emails and letters (perhaps redacted to protect the author’s name), bids (especially when the board plans to impose a reimbursement assessment), communications from government agencies, vendors or others. In rare cases, it might be ECHO Journal | February 2012

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appropriate or desirable to share communications or memos from counsel although obviously this should not be done without conferring first with counsel. Basis for alleged violation and punishment: Finally, the concept of due process also requires a board to identify for an owner the alleged provisions of the governing documents claimed to be breached and the provisions giving the board the power to impose discipline. Hearing Notice The hearing notice must specify the nature of the violation and the date, time and place of the hearing, and that the member may attend and address the board. Additional information that should be provided will vary depending on the parties’ history, the nature of the violation, member complaints, precedent, the types of potential penalties and other considerations. Typically, the notice will state the nature of the violation and the governing document provisions violated. If costs are to be incurred to cure a violation (for example, to repair a fence damaged by a member’s car), bids to do the work should be included. If there are photos 10

February 2012 | ECHO Journal

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or other records that can assist the owner in his or her “defense,” these should be mentioned, provided or made available. The Point of “Due Process” Based on all of this, we can say that, beside insuring a just administration of the CC&Rs, the reason for “due process” is to give one who is the target of a hearing a fair chance to defend him/herself. Giving an owner this opportunity helps reveal the real and relevant facts and thus also aids the board’s decision-making process. Further, owners who feel they were given a “fair shake” are much more likely to comply with the board’s disciplinary decision and the governing documents that led to the hearing—and that, after all, is the whole point.

Steven Weil is one of the founding principals at Berding|Weil LLP in Alamo. He has practiced community association law since 1984 and has dealt with virtually every kind of challenge facing directors, managers and community association members. He is a member of the ECHO board of directors.

Find the Answers to your Questions on Condo Ownership

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How to make your investment safer Condos, townhomes, homeowner associations and other “shared expenses” housing is the wave of the future in the United States and around the world. But to make it a sustainable investment, new buyers, owners and volunteer board members need to understand “best practices basics” of how this form of housing works and have more realistic expectations of this form of “carefree, maintenance free” living. The new book, Condos, Townhomes, Home Owner Associations—How to Make Your Investment Safer, provides essential training and checklists for • Association Board Members • Owners in Associations • Prospective Buyers of Association Property The book answers vital questions that can help to keep your association from financial ruin: • What overview training should board members have before beginning their service? • What critical financial and mechanical information should

board members track each month? • What information should a buyer look for before buying in an association? The author provides lessons that help you to: • Protect property values • Gain peace of mind • Lessen the need for large, unexpected special assessments Patrick Hohman, author of the book and a 22-year association president, compiled these userfriendly, colorful lessons with the help of industry experts throughout the United States. The paperback, Condos, Townhomes, Home Owner Associations—How to Make Your Investment Safer, is now available from ECHO for only $29 for members and $45 for nonmembers. Order today by calling (408) 297-3246 or order online at www.echo-ca.org.

February 2012 | ECHO Journal

By Jeffrey A. Barnett, Esq.

2011 Statutory and Case Law Update his article provides a summary of statutory and case law developments of interest to the common interest development industry for the calendar year 2011. It is limited to bills that were enacted into law by the California Legislature and published decisions of the California Court of Appeal.

Legislative Developments SB 150â&#x20AC;&#x201D;Rental Restrictions Effective January 1, 2012, new Civil Code Section 1360.2 prohibits the governing documents of an association from restricting rental or leasing of any of the homes in a common interest development unless the restriction was

ECHO Journal | February 2012

effective prior to the date that the owner acquired title to his or her home, unless that owner voluntarily consents to be subject to the rental restriction. The owners who are grandfathered by this statute may pass their exemption from the rental restriction to successor owners in the cases where the transfer of ownership would be exempt from an increase in property taxes under the Revenue and Taxation Code and in the case of probate transfers. Under Section 1360.2, if a rental restriction is in effect, an owner must provide the association verification of the date he acquired title to the residence and the name and contact information of the prospective tenant or tenants’ representative. Finally, Civil Code Section 1368 concerning the disclosures of buyers to sellers now requires specification of whether there is a rental or leasing restriction in the governing documents and, if so, a description of it and its applicability. This is part of the information that the association must provide to the seller within ten (10) days of the mailing or delivery of a request. Associations with rental restrictions should adopt rules consistent with new Civil Code Section 1360.2, and must comply with the new rental restriction disclosure requirement in the 1368(b) packages distributed to sellers. ECHO supported this bill. SB 209—Electric Vehicle Charging Stations New Civil Code Section 1353.9 invalidates covenants, conditions and restrictions for common interest developments that effectively prohibit or restrict the installation of electric vehicle charging stations, subject to certain controls. Restrictions are permitted only if they do not significantly increase the cost or significantly decrease the efficiency of the station. Associations violating the new law are subject to a civil penalty of $1,000 and to the owner’s attorney’s fees. Associations may condition the installation of a charging station on the following: • State and local government requirements must be met. • Architectural applications that do not unreasonably delay the project. If not approved or disapproved in 60 days, they are deemed approved. • Installations in the common area or exclusive use common area must be approved if: • Architectural standards are met. 14

February 2012 | ECHO Journal

• A licensed contractor installs the station. • The owner names the association as an additional insured on the owner’s liability insurance policy with an umbrella policy of $1 million covering damage to the station or common area. • The owner is responsible for the cost of the electricity. • The owner and successors are responsible for maintenance, repair, replacement and removal of the station. The Governor acknowledged that cleanup legislation was necessary due to property rights issues created by the statute. Further legislation is necessary to address defects in Civil Code 1353.9 including its conflict with Civil Code Section 1363.07, which generally requires that two-thirds of the members approve exclusive use grants of portions of the common area. Senate Bill 880, which is pending in the Legislature, is intended to address this problem as well as other drafting problems with the new law. ECHO opposed this bill. SB 563—Board Meetings This Bill fundamentally changes the way that association boards have historically conducted business. Most importantly, it amends Civil Code Section 1363.05 to prohibit the board of directors from conducting a meeting via a series of electronic transmissions, including, but not limited to, electronic mail. The only exception is that e-mail may be used to conduct an emergency meeting if all of the members of the board, individually or collectively, consent in writing to that action, and if the written consent or consents are filed with the minutes of the meeting of the board. The written consent may be sent electronically. If any member of the board refuses to make an emergency decision through email, the board must meet in person to deliberate on the emergency issue. The Bill requires that members receive at least two days notice of executive session meetings of the board, except for emergency meetings. The notice is required to contain the agenda for the meeting. The Bill also amends Civil Code Section 1365.2 to require that agendas of meetings of the members, the board of directors and committees appointed by the board of directors, be included in the records that are subject to inspection by the members. However, minutes and other information from executive session meetings of the board of directors are excluded from disclosure.

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ECHO Journal | February 2012

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To address the requirements of continued business between board meetings, it is advisable that associations adopt a resolution creating an executive committee with prescribed authority, consistent with the governing documents of the association, and also consider amendments to the management contract. ECHO supported this bill. AB 771—Document Requests This Bill amends Civil Code Section 1368, which relates to disclosures from sellers to buyers. It includes in the list of documents to be provided, the minutes of meetings of the board of directors, excluding executive session meetings, conducted over the previous twelve months that have been approved by the board of directors, if the purchaser requests these documents. As noted above, the association is obligated to furnish the documents within ten days of the request. The Bill includes a new Civil Code Section 1368.2, which is a form listing the changes for disclosures by the association. It includes a checklist of all of the documents required by the Davis-Stirling Act to be provided by the seller to the buyer, and in turn by the association to the seller, and a statement of the total fees for the documents. ECHO took a neutral position on this bill. Case Law Developments Iverson vs. California Village Homeow ners A ssociation, 193 Cal.App. 4th 951 (2011) The California Supreme Court is reviewing this case, which concerns an independent contractor who fell from a ladder attached to a condominium building while in the process of servicing air conditioning units. The contractor contended that the metal ladder did not meet Cal-OSHA regulations, which require a cage or another safety device for fixed ladders in excess of twenty feet. The issue is whether those regulations, which relate to employers, set standards for property owners in relation to independent contractors. Country Side Villas Homeow ners A ssociation vs. Ivie, 129 Cal.App. 4th 1110 (2011) Ms. Ivie objected to the interpretation and proposed new maintenance standards of a homeowner’s association and also requested financial records of the association to assist in supporting her position. The association filed suit against Ms. Ivie, and other residents, for declaratory relief concerning the proper interpretation of the documents. Ms. Ivie filed a cross complaint against the association for damages and declaratory relief, and

February 2012 | ECHO Journal

also filed an anti-SLAPP motion against the association to strike its four causes of action for declaratory relief. The trial court and appellate court held that Ms. Ivieâ&#x20AC;&#x2122;s SLAPP suit was filed in a timely manner and was justified on the merits because the associationâ&#x20AC;&#x2122;s lawsuit against her arose out of conduct in exercise of her constitutional right of free speech. The court noted that the association threatened to sue Ms. Ivie if she refused to sign a confidentiality agreement demanded by the association in relation to the release of association financial records. The court found that the associationâ&#x20AC;&#x2122;s lawsuit arose from Ms. Ivieâ&#x20AC;&#x2122;s exercise of her right of free speech in criticizing and speaking out against the board. The appellate court found that the declaratory relief action against Ms. Ivie was inappropriate because Ms. Ivie could not provide any relief as an individual member of the association. Ferwerda vs. Bordon, 193 Cal.App. 4th 1178 (2011) The plaintiff was trying to build a home on his vacant lot. He sued the Bear Creek Planning Committee, its members who he contended inappropriately blocked construction on his lot, and his next-door neighbors. The plaintiff began building a home on his lot even though the Committee had rejected his plans. The trial court found that the architectural committee had acted reasonably in rejecting the construction proposal, and ordered the owners to pay over $194,000 in attorneyâ&#x20AC;&#x2122;s fees to the architectural committee and over $219,000 to the neighbors. On appeal it was held that: (a) The CC&Rs authorized the architectural committee to adopt standards beyond those in the CC&Rs. (b) The prevailing party is entitled to attorneyâ&#x20AC;&#x2122;s fees when authorized by statute or a contract. The CC&Rs contained no attorneyâ&#x20AC;&#x2122;s fees provision. Instead, that clause was found in the architectural review manual. (c) The trial court properly determined that the architectural committee acted appropriately in denying the building application of the owner. Applicable law permits such decisions to be made both on objective and subjective criteria. The architectural styles and siting of the homes throughout the community were not so diverse that the committeeâ&#x20AC;&#x2122;s decision was arbitrary and capricious. (d) The injunction against the owner from constructing, excavating or altering his

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Diamond Heights Village A ssociation, Inc. vs. Financial Freedom Senior Funding Corp., 196 Cal.App. 4th 290 (2011) A homeowner association filed a judicial foreclosure action to enforce an assessment lien against an owner. Before the association recorded a judgment lien, the owner obtained a reverse mortgage. The association filed suit to determine that its judgment for assessments was prior to the deed of trust of the reverse mortgage lender. The trial court and appellate court ruled in favor of the lender on grounds that the association’s assessment lien was merged into the judgment it obtained for judicial foreclosure and that no judgment lien had been recorded by the association against the title of the owners before the new lender recorded its deed of trust. However, it was held that the successful lender was not entitled to attorney’s fees against the association for litigation related to the respective rights of the parties. Cabrera vs. A lam, 197 Cal.App. 4th 2077 (2011) A prior president of the homeowner association campaigned against board candidate Alam and in favor of a competing slate of candidates. Alam accused the former president of stealing money from the association and defrauding it. She then sued Alam for defamation. The trial court denied the defendant’s anti-SLAPP motion to strike on the basis that he failed to meet his burden to show that the conduct underlying the plaintiff’s defamation claim was protected activity. The appellate court reversed with instructions to grant the motion to strike, holding that the defendant’s statements were a protected activity because they were made in a public forum at a homeowner association’s annual meeting, and concerned an issue of public interest, namely, the qualifications of a candidate for office in the association. The plaintiff was found by the appellate court to have failed to carry her burden of showing a probability of prevailing on the merits of the defamation claim. The court noted that the plaintiff, having thrust herself into the controversy surrounding the election of the board of directors, became a “limited purpose public figure” who was required to show that the defendant made the allegedly defamatory

statements with malice. This requires evidence that the statements were made knowing them to be false or in reckless disregard of their falsity. Villas Los A lamos Homeow ners A ssociation vs. State Farm General Insurance Co., 198 Cal.App. 4th 522 (2011) This is an insurance coverage case where an association endeavored to recover costs of asbestos remediation that was necessary because the association’s contractor improperly performed a job of removing acoustical ceilings and stairways. The cleanup expense amounted to $650,000. The trial court and appellate courts ruled that the association’s claim on its own carrier for casualty loss was unsupported by the policy language. More specifically, the appellate court found that the exclusionary language in the casualty insurance portion of the policy for environmental pollution was applicable. This was true even though the policy did not contain a specific exclusion for “asbestos” as such. Cadam vs. Summerset Gardens Tow nhouse HO A , 200 Cal.App. 4th 383 (2011) The tenant in a townhome sued the association for personal injury when she tripped

and fell on a walkway. The trial court denied recovery. The Court of Appeal affirmed, finding that the defect in the walkway was trivial where the separation was three-fourths to seven-eighths inch in depth, was not jagged, shadowed, obscured, or slanted, there were no protrusions from the separation, no other persons had fallen there, the walkway was newly constructed and the view of the separation was not obstructed.

After the developer parted with property, it could not enforce arbitration clauses. Promanade at Plia Vista Homeow ners A ssociation vs. W estern Pacific Housing, Inc., 200 Cal.App. 4th 849 (2011) When a homeowner association brought a construction defect case against a developer, the developer filed a motion to compel arbitration, relying on the arbitration provision

in the CC&Rs and in the individual purchase agreements. The trial court and appellate courts denied the motion. The appellate court held that the provisions in the CC&Rs are equitable servitudes and can be enforced only by the homeowner association, the owner of a condominium, or both. The developer is not among those permitted to enforce CC&Rs. The appellate court noted that the developers did not own any property in the complex and therefore had no standing to enforce the CC&Rs, including the arbitration provision. The court further held that after the developer had parted with property that would derive a benefit from the restrictions, it could not enforce arbitration clauses in the grant deeds with the individual owners.

Jeffrey A. Barnett is an association attorney with legal offices in San Jose. He is a past member of ECHO’s Board of Directors and a current member the Legal Resource Panel, the Legislative Committee and several regional resource panels. ECHO Journal | February 2012

By Tom Fier, Esq.

SLAPPs and HOAs hat is SLAPP? SLAPP stands for Strategic Lawsuits Against Public Participation. The legislature enacted the anti-SLAPP statute in 1992 in response to large land developers’ filing a lawsuit against environmental activists or a neighborhood association intended to chill the defendants’ continued political or legal opposition to the developers’ plans. SLAPP suits were intended to deplete the defendants’ energy and drain his or her resources. The legislature sought to prevent SLAPPs

February 2012 | ECHO Journal

by ending them early and without great cost to the SLAPP target. In Code of Civil Procedure, section 425.16, the legislature stated: “...that there has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for redress of grievances. The legislature finds and declares that it is in the public interest to encourage continued participation in matters of public significance, and this participation should

not be chilled through abuse of the judicial process.” This means that if you sue someone, and he or she claims that the lawsuit is an effort to “chill” his or her exercise of constitutional rights of freedom of speech, the person can bring a special motion to have the lawsuit dismissed. They will win unless the court determines that there is a probability that the association will win. Thus, any litigation effort designed to chill the exercise of protected speech or petitioning

activity in connection with a public issue is subject to a special motion to strike by the defendant SLAPP target. How Does a SLAPP Suit Work? It starts with a plaintiff suing a target SLAPP defendant. The defendant then brings a SLAPP motion; the defendant has the burden of showing that the challenged acts “arise from” acts in furtherance of his or her constitutional speech or petitioning rights in connection with

a public issue. The focus is on the defendant’s actions. If this is proven, then the burden of proof shifts to the plaintiff to demonstrate a “probability” of prevailing. The court then must balance the SLAPP defendant’s rights against the plaintiff’s rights. If the defendant SLAPP target wins, he or she is awarded attorney fees. How Do SLAPPs Relate to HOAs? Recent court decisions have dealt with SLAPPs in the following contexts:

• A homeowner at an annual meeting to elect directors accused the president (who was running again) of stealing from the HOA treasury; • A lawsuit over disclosure of a registered sex offender’s residence; • Rent stabilization or rent control; • Comments in a newsletter; • A letter to homeowners from a board explaining litigation; • Collection and targeting a homeowner;

ECHO Journal | February 2012

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• Denial by a board of a homeowner’s request to remodel a home and letters from the HOA’s attorney; and • A dispute over architectural guidelines and letters to explain them. These cases usually involve a defamation claim; so before an examination of the cases is done, a definition of defamation will be examined. Defamation has been defined as a statement (either made orally or in written form) to someone other than the plaintiff (i.e., a group at an HOA board meeting), who understood that the statements were about the plaintiff; that because of the facts and circumstances known to the listener or reader of the statement(s), they intended to injure the plaintiff in his or her occupation or to expose him or her to hatred, contempt, ridicule, or shame, or to discourage others from associating or dealing with him or her; that the statement was false and that the plaintiff suffered harm as a result of the statement. Let’s Examine Some Cases to Show How This Works Damon v. O cean Hills Journalism Club (2000) 85 Cal.App.4th 468 Facts: Damon, a former manager of a 3,000 member HOA, sued for defamation against several HOA members, two members of the board of directors and a private journalism club that published a newsletter of the HOA. Complaint: Various homeowner members were displeased with Damon’s management style, employee relations (there were 60 HOA employees), maintenance activities and contractor selection. Disgruntled homeowners expressed their views in articles, editorials and letters to the editor in the Village Voice (the HOA newsletter). The Court described the dispute as a “war zone with verbal salvos being lobbed back and forth” reflecting feelings of “hate and discontent.” Statements were made in open board meetings and in the HOA newsletter that were critical of Damon. Court Ruling: The two places where the alleged defamatory statements were made— at board meetings and in the newsletter— were open to the public and constituted “public forums.” Because the statements concerned the manner in which a large residential community would be governed, they concerned issues of public interest. Board meetings are public forums defined as a place that is open to the public where information is freely exchanged. The board

February 2012 | ECHO Journal

meetings were televised and open to all interested parties. The board meeting served a function similar to that of a governmental body. A homeowner association board is in effect a quasi-governmental entity paralleling in almost every case the powers, duties and responsibilities of a municipal government. The newsletter was also a public forum as its purpose was to communicate items of interest and/or concern to residents. The fundamental purpose underlying the anti-SLAPP statute was to protect against lawsuits brought primarily to chill the valid exercise of constitutional rights. The defendant must prove the statements were made in a public forum and were of public interest. The Court granted the antiSLAPP motion and stated “the defamation action certainly had the potential for punishing the defendants for exercising their First Amendment rights, thus serving to “chill” the exercise of their rights and to deter them from speaking freely on topics of public importance.” Lesson: Comments made in board meetings and in a newsletter to an HOA of 3,000 will be SLAPPed if a defamation lawsuit is initiated. Be careful. Ruiz v. Harbor View Community A ssociation (2005) 134 Cal.App.4th 1456 Facts: A homeowner sued his association (523 lots) for libel stemming from denial of his plans to rebuild his house. Ruiz claimed that two letters written by the HOA’s attorney were libelous. This is an excerpt from the alleged libelous letter: “Initially, let me tell you how reprehensible I find it that you, as an attorney, and a member of the State Bar of California, while attempting to conceal your superior legal knowledge and education as an attorney, undertook to negotiate, monitor, observe, harangue, cajole and intimidate laypersons (the directorship and Architectural Committee of the Harbor View Community Association) who you knew had no knowledge of your superior skill and knowledge as an attorney and member of the State Bar. Your only apparent defense to this reprehensible conduct is recited by you in your letter of July 2, 2003 to the effect that, when asked by the laypersons involved if you were an attorney, you refused to directly answer the query and asked if being a lawyer would be held against you. Such conduct by a member of the Bar is simply unconscionable. State law requires an attorney to be truthful—and this is especially the case when he or she is dealing with

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laypersons (Business and Professions Code §6068). As officers of the Court, attorneys have a duty to deal honestly and fairly with others (Gionis v. Superior Court [1998] 202 [Cal.App.]3d 786 9248 Cal.Rptr. 741]). You have egregiously violated these duties.” In another letter from the attorney, Ruiz claims this was libelous: “I have been advised that you attend every single meeting of the Board of Directors and sit there taking what appear to be copious notes of ostensibly everything being said by everyone. While you have a right under Civil Code §1363.05 to attend directors’ meetings, you seem to be the only member of the Harbor View Community Association who has ever so fully availed himself of this right. Contrary to what you further say in your letter, the Board of Directors has spent the better part of the past six months answering your questions (most of which are set forth in extremely verbose written correspondence). The directors of the Harbor View Community Association are all unpaid volunteer homeowners. You are not the only member of the Harbor View Community Association and your endless queries (most of which appear completely frivolous) are becoming more and more like the Shakespearian ‘pound of flesh’ that you feel you are entitled to as revenge for the ostensible temerity of the association’s Architectural Committee in not approving your architectural plans. When your architectural application was rejected, the Architectural Committee informed you specifically and in writing why it was being denied (principally because the proposed home exceeded the maximum square footage allowed). Since that time, you have made absolutely no attempt to resubmit modified plans that make the proposed home compliant with the existing architectural guidelines. Instead, you have devoted an inordinate amount of time harassing the Harbor View Community Association directorship with cockamamie document inspection requests and virtually stalking and staring down the directors at their regularly scheduled meetings. For you to infer that somehow the Harbor View Community Association has been unfair to you is like the tea kettle calling the coffee pot black.” Lawsuit: Ruiz filed a libel lawsuit against the HOA and a declaration that the denial of his plans was improper and unreasonable and arbitrary. The HOA brought a SLAPP motion claiming that the letter constituted acts in furtherance of the HOA’s right of

petition or free speech in connection with a public issue. Court Ruling: The Court ruled that the letters were in furtherance of the exercise of the constitutional right of petition or free speech in connection with an issue of public interest. The Court based its reasoning on another case that held that the anti-SLAPP statute protects private communications regarding public issues. Public interest was defined as private conduct that impacts a broad segment of society and/or that affects a community in a manner similar to that of a governmental entity. The burden then shifted to Ruiz to prove that the letters were libelous. He could not prove that the first letter had been published (to someone other than him, a requirement for libel) and the second letter was not libelous because the statements were hyperbole, epithet or subjective expressions of disapproval, devoid of any factual content. The letter was not actionable. The SLAPP motion was granted. Lesson: Actions by a HOA and its attorney are protected. This was a case of despicable conduct and bullying by Ruiz and the Court did not allow this to happen. Turner v. Vista Pointe Homeow ners A ssociation (2009) 180 Cal.App.4th 676 Facts: A homeowner remodeled his/her house and obtained approval to increase the height. However, during the remodel, he increased the height beyond what was approved, without seeking further HOA approval. A neighbor complained. Lawsuit: The homeowner filed suit against the HOA alleging that it was unfair, it did not enforce its architectural guidelines consistently, and for unfair business practices. The HOA filed a SLAPP motion stating that the HOA’s conduct was in furtherance of the exercise of the constitutional right of free speech and thus was protected. Court Ruling: The Court heavily relied on the Damon case (discussed above) finding that a “public interest” in the height of houses within the development existed. The activities of the HOA were not protected, as it could not show the enforcement activity was in furtherance of the right of free speech; therefore, the HOA’s SLAPP motion was denied. Lesson: The HOA tried to turn the tables on the homeowner and defend the homeowner’s lawsuit with a SLAPP motion. A defense to a homeowner’s lawsuit cannot be based on a SLAPP motion. While this ruling

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may be restricted to the facts of this case, it does give a warning to HOAs: SLAPP motions cannot be used to justify enforcement actions. Recommendations 1. Listen to homeowner complaints. 2. Be careful about what is said, both orally and in writing; 3. Stick to the facts, do not become emotional, as when tempers flare, comments are made that can be damaging to all involved; 4. Maintain civility at meetings and hearings. If disgruntled homeowners are causing problems, seek compliance and resolution by citing violations of the CC&Rs to hinder or stop unruly or disruptive behavior. 5. Think about passing and enforcing a Code of Conduct for homeowners to abide by when dealing with the board and property manager.

Tom Fier, Esq. is an attorney at law with a homeowner association practice in San Mateo, CA. He is the immediate past chair of the ECHO Legal Resource Panel.

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By Robert Booty

Can You Sleep on Stormy Nights? nce there was a farmer, who hired a new hired hand. When the farmer first sat down with him to inquire about his skills, he asked, “Just what do you do?” The reply was, “Well, I can sleep on a stormy night.” The farmer thought this was a strange response; but he showed him around the farm and his sleeping accommodations. As time passed, a fierce winter storm awoke the farmer from a deep sleep, momentarily disorientated. He quickly dressed to check his animals. As he entered the barn he was delighted to see that his pigs were in their pen, the chickens were on

February 2012 | ECHO Journal

their roost, and the cows and horses were all put away and safe. The next day the farmer approached his newly hired man and said, “You knew that this storm was coming, didn’t you?” He got this reply: “No, but I told you that I could sleep on a stormy night.” Every winter season there are dozens of storms that affect our trees. And sometimes, even when our best efforts are utilized to protect our trees, we are saddened when the forces of nature have their way with them. When you think about mature trees, you realize that they provide so many posi-

tive things for a community, including higher property values and adding that special character to a neighborhood. It’s not too surprising that a survey by Arbor National Mortgage, Inc. in 1993 revealed that “Eightyfour percent of real estate agents feel that a house on a lot with trees can be as much as 20 percent more salable than a house on a lot without trees. In addition, 62 percent of the respondents said that the existence of healthy shade trees strongly influences a potential buyer’s impression of a block or neighborhood; 60 percent thought healthy

“It looks like a war zone!” cried one homeowner, as she awoke after the year’s first winter storm.

shade trees have a big effect on a potential buyer’s first impression of a property; and 56 percent felt healthy shade trees are a strong factor in a home’s salability.” Most people are drawn to communities with mature trees because of the benefits and ambiance that they provide. However, when trees fail, they can be destructive and deadly. One attorney who works with tree litigation cases made this statement about trees: “Trees can be managed, but they cannot be controlled. To live near trees is to accept some degree of risk. The only way to eliminate all risk associ-

ated with trees is to eliminate all trees.” It seems that we have always had an ongoing love-hate relationship with trees. We love to surround ourselves in their beauty. We admire their strength and stature, and we are in awe that some have survived for so many years. On the other hand, we dread the day of their failure. Can Anything Be Done to Minimize Tree Failure During Storms? There are a few positive things that can be done with trees to help

them get through the winter months. Start by having your trees inspected by someone who has documented knowledge and experience. This will help you feel more comfortable by understanding that such experts know what they are looking for and talking about. They will provide an unbiased evaluation of what needs to be accomplished. You should have such inspections done well before the winter season arrives. Then trees should be properly pruned using the principles of tree care developed and standardized by the International Society of Arbori-

ECHO Journal | February 2012

Very little wind filtration

culture. Many of the reasons trees fail result simply from the way they were pruned. Some of the most widespread pruning techniques, such as topping and lion’s tailing, actually damage trees and create problems because they change the tree’s natural structural integrity. Trees that have been topped become hazardous as they replace their canopies. Generally the new growth is weakly attached to the tree and is subject to failure, especially as the branches become larger. The failure usually happens during windstorms. Lion’s tailing is a pruning technique that is so widespread it is now at epidemic proportions. Lion’s tailing occurs when all the living foliage is removed from the center of a tree. The limbs of the tree look like a lion’s tail after pruning; the limbs will appear long and slender with a “puff” of foliage at the end. This creates an uneven weight distribution in the tree canopy. And when limb failure occurs, it is usually because all of the canopy weight has been moved to the end of the branches. Trees will often fall apart under their own weight even without a windstorm. Protection of Your Trees Begins By Having Them Inspected by Qualified Individuals The role that a certified arborist plays in tree protection is vital to every property owner with mature trees. The ongoing training and education they receive on an annual basis keeps them up to date with the most recent understanding of how trees respond in different situations. This includes preparing trees for adverse weather conditions. 28

February 2012 | ECHO Journal

Structurally pruned for wind filtration

These individuals are different from persons who are simply licensed by the state of California as a tree contractor or landscaper. Why? California does not provide or require any specific educational testing of one’s knowledge regarding tree care for individuals wishing to be a contractor before they take the state test. Nor does the state require any ongoing education on the part of the individual to retain his or her license. Certified arborists, however, must do this to keep their certifications active. Is There Anything That Can Be Done to Prevent Tree Failure? No, arborists cannot detect every condition that could possibility lead to the structural failure of a tree. Trees are living organisms, and they can fail in ways we do not fully understand. Adverse conditions are often hidden within a tree’s structure or below ground. Arborists cannot guarantee that a tree will be healthy or safe under all circumstances or for a specified period of time. Likewise, results of remedial treatments, similar to medicines, cannot be guaranteed. How Can Trees Be Pruned So They Can Withstand Winter Storms? We need to understand that, when a gust of wind pushes against a tree and it cannot pass through the canopy easily, the chances of tree or limb failure increase. In order to minimize this problem, a tree needs to be properly thinned. The thinning process should be focused on the outer canopy of the tree. In effect this opens up what might be described as windows in the tree. This proce-

dure will allow the wind to pass through the tree canopy with less resistance, minimizing damage to the tree. The thinning should involve no more than 25 percent of the living foliage with the interior foliage left intact. Tree Inspection is Vital to Identify Structural Failures Before Winter Storms Arrive Trees lean for one of two reasons: 1. Phototropism (How’s that for a $10 word?)—This is the bending of a plant (tree) toward the direction of more intense light (sunlight). A tree becomes top heavy as it becomes larger and then, because of its size or wet condition, root failure is likely to occur. 2. Root failure—Usually during prolonged wet conditions the tree experiences loss of anchorage. It is in the process of falling, but it’s just not on the ground yet. This is sometimes more common with trees planted in lawn areas. Root disease is like a ticking time bomb because its activity is for the most part unseen, underground, and it involves the part of the tree that keeps it in an upright position, the roots. Armillaria mella or oak root fungus is one of the most common root problems affecting trees; and it’s something a trained arborist can usually identify. Armillaria decomposes the tree’s roots so that it may suddenly fall over on a clear windless day or wait to go down in a storm. Sometimes there are outward signs of structural problems, such as conks at the base of a tree or a cavity eaten away by decay, that are noticeable to a trained arborist. Conks

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are the fruiting bodies of decay-causing fungi that are hidden out of sight within the trunk of a tree. The presence of mushrooms indicates there is dead organic material. Evidence of any of these should alert us to a potential problem so that appropriate action may be taken. There are times when decay in trees is very difficult to identify because there may be no visible or outward signs of its presence. This problem often makes its presence known during a storm. The degree and variety of training among certified arborists vary. Some have specialties that they focused on in their 30

February 2012 | ECHO Journal

Sulfur fungus on a Eucalyptus tree—a visible sign of internal decay.

careers in arboriculture, such as forensic investigations. Using specialized tools, such arborists are able to provide a valuable service by identifying decay in trees that may not have shown any visible signs of having a problem. One of the most widely used devices to identify hidden decay is called the resistograph. With this tool the arborist uses a special drill with a long small wire bit that is drilled into an area chosen by the technician to explore for decay. As the bit is drilled into the tree, it measures and records the resistance the drill encounters as it passes from solid wood into softer wood that has been compromised by decay. After a series of such inspections an arborist is able to provide his recommendations concerning how advanced the decay is and how to proceed. One of the most recent and promising tools for decay detection is called TreeRadar. This appears to be the most advanced method to measure wood decay because it is totally non-invasive to the tree. One concern people have had with traditional methods of decay investigation is that holes are drilled into a tree that they are trying to save. TreeRadar safely uses radar to provide a virtual image of the interior of a tree trunk much the same as if one were to visit a doctor and receive an x-ray or MRI to evaluate his or her own health. In spite of all of our advanced technology and expanded knowledge of trees, they do continue to fail at times. Society has accepted the risk of living among trees and, hopefully,

the responsibility to care for them. When maintenance has been deferred or improperly performed, problems arise. We live in a time when the knowledge to care for mature trees properly is readily available. So why is it that we continue see disasters such as the one shown at the start of this discussion? Sometimes an arborist’s recommendations are ignored, and this can be a problem. It’s often not easy to tell clients something that they may not want to hear. However experts have an obligation to be forthright, not just say something people want to hear. Similarly, board members and managers have a responsibility to listen to an accurate assessment of a problem and then act to remediate it. As you are reading this article, your thoughts might be drawn to the beautiful trees that grace your property. You may notice that your mind wanders to some questions: “What about our trees? Have we utilized qualified individuals? Is our budget sufficient to care for our real needs or have our trees become a liability? Is our community relativity safe or are there real concerns involving some of our trees?” How you answer these questions will determine how well you sleep on a stormy night.

Robert Booty Is the principal consultant for Arborist OnSite.™ He is an ISA Certified Arborist and a member of the American Society of Consulting Arborists. He is a member of the ECHO Maintenance Resource Panel.

ECHO Executive Director Position Description Organizational Description The Executive Council of Homeowners (ECHO) is nonprofit organization dedicated to assisting Homeowner Associations and other Community Interest Developments. ECHO provides information and resources for HOAs on many fronts, including financial and legal issues, insurance, maintenance and association management. Members receive support through educational seminars and conferences, trade shows, Business and Professional Directories and the widely acclaimed monthly magazine called The ECHO Journal.

• Work with the Board to update/monitor ECHO’s long-range strategic plans • Ensure the Board receives relevant information (including key metrics) that allow it to successfully complete fiduciary and policy-setting responsibilities

• Develop and offer advertising options to members on ECHO website • Broaden the distribution of the ECHO Journal to a wider audience • Explore social enterprise initiatives as alternative revenue sources

• Identify potential new Directors who will help sustain ECHO’s future growth

Lead ECHO’s Overall Operations • Develop a comprehensive communications Achieve Five-Year Strategic Plan Goals: plan that consistently engages and informs the Board, staff, membership base and • Explore relevant emerging opportunities to ECHO stakeholders support strategic plan goals • Research and implement expanded use of • Provide leadership, support and training for all ECHO staff and volunteers technology for ECHO programs • Develop, execute and monitor credible, • Broaden the array of educational opportuECHO is a homeowners’ organization. high quality programs and services nities for membership base Founded in 1972 by five homeowner associ• Prepare annual business plans and budations, ECHO has grown to over 1,400 mem- • Expand marketing, public relations and gets to achieve operational goals ber associations representing 155,000 new member outreach programs units. We help association Board members Enhance the ECHO Membership Experience: • Schedule and participate in annual Board deal with the many problems encountered in and committee meetings • Research and implement improved benecommon interest community living. ECHO • Prepare agendas, financial reports and fits for membership base provides opportunities to educate Board offiother information for all meetings cers, directors and committee members on • Engage membership on methods of • Supervise and monitor creation and distribthe handling of day-to-day management and improving the ECHO experience ution of all ECHO publications operational issues of homeowner • Develop and launch interactive educational • Supervise and monitor all aspects of ECHO developments. webinars for member base seminars and conferences • Implement timely curriculum offerings in Position Summary • Establish and maintain cooperative collabECHO educational programs The Executive Director is a full-time, exempt orations with other industry organizations • Explore enhancements to ECHO seminars position that reports to the ECHO Board of to enhance the achievement of mutual and Annual Conference Directors and is responsible for all aspects goals • Expand networking and communication of the organization’s operations. This • Monitor relevant existing and proposed opportunities for membership base includes the successful implementation of local, state and federal legislation affectBoard policies and mandates, achievement • Regularly communicate with membership ing common interest developments and of ECHO’s recently completed Five-Year on ECHO plans and initiatives lead advocacy efforts for policies beneficial Strategic Plan, formulation of annual budgets to ECHO membership Expand ECHO’s Membership Base: and operational business plans and serving • Serve as organizational spokesperson to as the official spokesperson of the Executive • Develop incentive campaigns for referrals the media, stakeholders and communities from the membership base Council of Homeowners. throughout the state for ECHO and the CID • Enhance ECHO website as a marketing The ideal candidate will have a passion for industry and new member recruitment tool ECHO’s mission, a strong track record of Knowledge, Skills and Experience leadership success, significant organization- • Create a comprehensive direct mail cam• Demonstrated leadership success in propaign for new member outreach al development and management experigressively responsible assignments ence, and the ability to engage and inspire • Expand educational seminars and Annual • Expertise in creating impactful marketing the Board, staff and membership base to Conference content and locations and public relations campaigns take an ownership stake in ECHO’s future • Redesign new member outreach marketing strategic growth. • Experience with information technology, and public relations materials database management and software appli• Develop a statewide expansion plan for Major Job Functions and Responsibilities cations designed for online educational new member outreach and growth of the Executive Director programs Collaborate with the ECHO Board of Increase and Diversify ECHO’s Revenue • An entrepreneurial spirit that embraces Directors: Streams: social enterprise to serve ECHO’s mission • Research other membership dues struc• Ensure the Board is fully informed about tures for potential enhancements operational successes/challenges Continued on page 41 ECHO Journal | February 2012

News from ECHO

Can You Sleep on Stormy Nights? Every winter season there are dozens of storms that affect our trees. And sometimes, even when our best efforts are utilized to protect our trees, we are saddened when the forces of nature have their way with them. When you think about mature trees, you realize that they provide so many positive things for a community, including higher property values and adding that special character to a neighborhood. Most people are drawn to communities with mature trees because of the benefits and ambiance that they provide. However, when trees fail, they can be destructive and deadly. One attorney who works with tree litigation cases made this statement about trees: “Trees can be managed, but they cannot be controlled. To live near trees is 32

February 2012 | ECHO Journal

to accept some degree of risk. The only way to eliminate all risk associated with trees is to eliminate all trees.” There are a few positive things that can be done with trees to help them get through the winter months. Start by having your trees inspected by someone who has documented knowledge and experience. This will help you feel more comfortable by understanding that such experts know what they are looking for and talking about. They will provide an unbiased evaluation of what needs to be accomplished. You should have such inspections done well before the winter season arrives. No, arborists cannot detect every condition that could possibility lead to the structural failure of a tree. Trees are living organisms, and they can fail in ways we do not fully understand. Adverse conditions are often hidden within a tree’s structure or below ground. Arborists cannot guarantee that a tree will be healthy or safe under all circumstances or for a specified period of time. Likewise, results of remedial treatments, similar to medicines, cannot be guaranteed. In spite of all of our advanced technology and expanded knowledge of trees, they do continue to fail at times. Society has accepted the risk of living among trees and, hopefully, the responsibility to care for them. When maintenance has been deferred or improperly performed, problems arise. We live in a time when the knowledge to care for mature trees properly is readily available. So why is it that we continue see these disasters?

SLAPPs and HOAs SLAPP stands for Strategic Lawsuits Against Public Participation. The legislature enacted the anti-SLAPP statute in 1992 in response to large land developers’ filing a lawsuit against environmental activists or a neighborhood association intended to chill the defendants’ continued political or legal opposition to the developer’s plans. SLAPP suits were intended to deplete the defendants’ energy and drain his or her resources. The legislature sought to prevent SLAPPs by ending them early and without great cost to the SLAPP target. In Code of Civil Procedure, section 425.16, the legislature stated: “...that there has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for redress of grievances. The legislature finds and declares that it is in the public interest to encourage continued participation in matters of public significance, and this participation should not be chilled through abuse of the judicial process.”

This means that if you sue someone, and he or she claims that the lawsuit is an effort to “chill” their exercise of constitutional rights of freedom of speech, the person can bring a special motion to have the lawsuit dismissed. They will win unless the court determines that there is a probability that the association will win. Thus, any litigation effort designed to chill the exercise of protected speech or petitioning activity in connection with a public issue is subject to a special motion to strike by the defendant SLAPP target. A SLAPP suit starts with a plaintiff suing a target defendant. The defendant then brings a SLAPP motion; the defendant has the burden of showing that the challenged acts “arise from” acts in furtherance of his or her constitutional speech or petitioning rights in connection with a public issue. The focus is on the defendant’s actions. If this is proven, then the burden of proof shifts to the plaintiff to demonstrate a “probability” of prevailing. The court then must balance the SLAPP defendant’s rights against the plaintiff’s rights. If the defendant SLAPP target wins, he or she is awarded attorney fees. Important Upcoming Events Saturday, February 25 Central Coast Winter Seminar 8:00 a.m. to 1:00 p.m. Hilton Hotel, Scotts Valley Saturday, March 24 Wine Country Winter Seminar 8:00 a.m. to 1:00 p.m. Sally Tomatoes 1100 Valley House Dr., Rohnert Park

By Carl Brown, RCI, RRO

Getting the Best Price and Work for Your Roofing Needs EVERY ASSOCIATION THAT REALIZES IT NEEDS TO re-roof has the same goals: to get the most for its money and also get “a good job.” Almost all associations know they are supposed to “get three bids” to assure they get the best price; but many HOA boards don’t realize that best price and best work don’t always match or that they may be at a disadvantage when soliciting bids. Experienced contractors know how to bid a poorly written RFP or “open spec” and still make profit goals. Here are some purchasing guidelines that HOA boards can use to bring “Best Price and Best Work” closer to one and the same and thus spend their members’ funds wisely. 1. Select your roofing product with an informed decision, including history, quality, warranty, weight, fire rating, and not simply appearance or price. 2. Invite only pre-qualified bidders that you have verified have experience with the product you have selected. Not all roofers can

install all roofing systems or provide that warranty for every product. 3. Produce clear specifications with bidding documents for all bidders. Have a job walk. 4. Review the bids that will now be “apples to apples,” and not “apples to peaches.” Dismiss any bidder who has “sour grapes.” Interview the two to three lowest bidders and ask lots of questions. 5. Get a contract form that helps protect the association, not the roofer’s proposal/contract form that is designed to protect the bidder. Always include start and finish dates. 6. Have your HOA attorney review any contract before you sign, not after a problem arises. 7. Don’t give roofers (or any contractor) large “deposits”; they should have a credit account. 8. “Trust but Verify”: Get some level of independent inspection (not the product maker)

to verify compliance with the job specs, the product specs, the local building codes and industry standards for the work. 9. Get a closeout package for each building with warranty, lien releases, city permit, etc. 10. Use a professional project manager. Don’t ask your community manager to act as your project manager; they have more than enough work to do in the normal course of your association’s business. Professionally managed large projects usually result in a best-cost, best-value job by avoiding extras, conflicts, defects and their resultant legal expenses. Board members can go about their daily business without concern about the future performance of the roofs.

Carl Brown is the managing partner at AWS Consultants Inc in Santa Ana. AWS has provided consulting and project management for over 300 HOAs in the past 12 years. The firm is a member of ECHO. ECHO Journal | February 2012

Directory UPDATES Updates for listings in the ECHO Directory of Businesses and Professionals, now available online at www.echo-ca.org.

New Members

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5th Avenue Real Estate Services 111 N. Market St., Ste. 300 San Jose, CA 95113 Contact: Jacqueline Mestaz Tel: 888-823-4304 Fax: 888-823-3315 5th Avenue Real Estate Services Association Management is a dynamic firm that strives to meet clientsâ&#x20AC;&#x2122; needs through high customer service standards and technology. Our services can be tailored in both plan and cost to meet any associations needs. We provide full Management, Financial Administration, Consulting, Project Management, Election Administration in a menu of services that can be tailored to each community.

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Become an ECHO Business and Professional Member and receive the many benefits of membership. To learn more, visit our membership page at www.echo-ca.org

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February 2012 | ECHO Journal

Learn to

Face

CID Challenges

at the ECHO

Wine Country Seminar

Saturday, Saturday, March 24 Sally Tomatoes 1100 Valley House Dr., Rohnert Park Seminar Agenda 8:00 a.m. Registration and Continental Breakfast 8:45 Welcome and Introductions 9:00 Preliminary Agenda Topics: Legal Update Directorsâ&#x20AC;&#x2122; and Officersâ&#x20AC;&#x2122; (D&O) Liability Insurance Dangerous Maintenance Deferrals Disaster Preparedness Final agenda and speakers to be announced in the March ECHO Journal and ECHO seminar flyers 1:00 p.m. Adjourn

Ticket Prices ECHO Members through March 11: $49 After March 11: $59 Save $5 Register Online by March 11 Non-Members Fixed Price: $69

Yes, reserve _____ spaces for the ECHO Wine Country Seminar. Amount enclosed: $__________ (attach additional names) Name: HOA or Firm: Address: City:

State:

Zip:

Phone:

Call (408) 297-3246 or visit www.echo-ca.org for more information. Sponsored by ECHO

Visa/Mastercard No.

Exp. Date:

Av Febailable ruar y

Netwion Edi

Beyond Privatopia $20.00 Non-Member Price: $25.00 The rise of residential private governance may be the most extensive and dramatic privatization of public life in U.S. history. In Beyond Privatopia, attorney and political science scholar Evan McKenzie explores emerging trends in private governments and competing schools of thought on how to operate them, from state oversight to laissez-faire libertarianism.

Condominium Bluebook 2012 Edition $17.00 Non-Member Price: $25.00

Condos, Townhomes and Homeowner Associations Member Price: $29.00 Non-Member Price: $45.00

This well-known compact guide for operation of common interest develop ments in California now includes a comprehensive index of the book and a chapter containing more than 200 frequently-asked questions about associations, along with succinct answers.

To make it these a sustainable investment, new buyers, owners and board members need to understand “best practices basics” of how this form of housing works and have more realistic expectations of this form of “carefree, maintenance free” living.

Robert’s Rules of Order $7.50 Non-Member Price: $12.50

The Board’s Dilemma $10.00 Non-Member Price: $15.00

A step-by-step guide to the rules for meetings of your association, the current and official manual adopted by most organizations to govern their meetings. This guide will provide many meeting procedures not covered by the association bylaws or other governing documents.

In this essay, attorney Tyler Berding confronts the growing financial problems for community associations. Mr. Berding addresses board members who are struggling to balance their duty to protect both individual owners and the corporation, and gives answers to associations trying to avoid a funding crisis.

Community Association Statute Book—2012 Edition Available in February Contains the 2011 version of the Davis-Stirling Common Interest Development Act, the Civil Code sections that apply to common interest developments and selected provisions from the Civil, Corporations, Govern ment and Vehicle Codes important to associations.

cial e p S rice P

Homeowners Associations— How-to Guide for Leadership Member Price: $15.00 Non-Member Price: $25.00 This well-known guide and reference is written for officers and directors of homeowner associations who want to learn how to manage and operate the affairs of their associations effectively.

FOR Board Members Reserve Fund Specialists Property Managers Unit-Owners, Accountants Lawyers, Builders

NEW

2 CHAP TERS ON OP ERATI BUDGETS NG

2012 Community Association Treasurer’s Handbook Member Price: $29.00 Non-Member Price: $35.00 The Handbook is an in-depth guide to all aspects of association finances, including accounting methods, financial statements, reserves, audits, taxes, investments and much more. Not for the accounting novice, this is a tool for the treasurer or professional looking for specific information about association finances.

RESERVE FUND

ESSENTIALS THIRD EDITION FIFTH PRINTING JONATHAN H.

JUFFS Reserve Fund Specialist

Two experts discuss reserve fund planning and control in a refreshingly readable and exceptionally levelheaded style.

GRAHAM D.

OLIVER Board President (ret.), Reserve Fund Aficionado

INCLUDES RESERVE FUNDS FOR CONDOMINIUMS COMMUNITY ASSOCIATIONS HOAs CO-OPS MEMBER-OWNED PROPERTIES MUNICIPAL FACILITIES

Reserve Fund Essentials Member Price: $18.00 Non-Member Price: $25.00 Questions & Answers About Community Associations Member Price: $18.00 Non-Member Price: $25.00 For 12 years, Jan Hickenbottom answered homeowners’ questions in her Los Angeles Times column on community associations. Now collected in one volume, readers can find answers to almost any question about CIDs.

This book is an easy to read, musthave guide for anyone who wants a clear, thorough explanation of reserve studies and their indispensable role in effective HOA planning. The author gives tips to help board members mold their reserve study into a useful financial tool.

The Condo Owner’s Answer Book $15.00 Non-Member Price: $20.00 An excellent guide to understanding the rights and responsibilities of condo ownership and operation of homeowner associations. The question-and-answer format responds to more than 125 commonly-asked questions in an easy to understand style. A great resource for newcomers and veteran owners.

2011 ECHO Annual Seminar Program Book $25.00 Non-Member Price: $35.00 This 300+ page reference book contains the presentation outlines, text and handouts from the sessions at the 2011 ECHO Annual Seminar held on June 18, 2011. It also contains vital information for association directors, such as assessment collection policies, internal dispute policies, and much more.

Dispute Resolution in Homeowner Associations Member Price: $20.00 Non-Member Price: $25.00 This publication has been completely revised to reflect new requirements resulting from passage of SB 137.

Publications to answer your questions about common interest developments Now Order Online at www.echo-ca.org

Bookstore Order Form Board Memberâ&#x20AC;&#x2122;s Guide for Contractor Interviews $20.00 Non-Member Price: $25.00

Executive Council of Homeowners 1602 The Alameda, Suite 101, San Jose, CA 95126 Phone: 408-297-3246 Fax: 408-297-3517 TITLE

QUANTITY

This report is a guide for directors and managers to use for interviews with prospective service contractors. Questions to find out capabilities and willingness of contractors to provide the services being sought are included for most of the contractor skills that associations use.

SUBTOTAL CALIFORNIA SALES TAX (Add 8.25%) TOTAL AMOUNT

Yes! Place my order for the items above. Board Memberâ&#x20AC;&#x2122;s Guide for Management Interviews Member Price: $20.00 Non-Member Price: $25.00 This guide for use by boards for conducting complete and effective interviews with prospective managers takes the guesswork out of the interview process. Over 80 questions covering every management duty and includes answer sheets matched to the questions.

q Check q Visa q MasterCard Credit Card Number Exp. Date

Signature

Name (please print) Association (or company) Address City Daytime Telephone

State

Zip

AMOUNT

ECHO Events Calendar

Save these dates

Save these dates for the 2012 ECHO Annual Seminar June 22, 23

Wednesday, February 1 Maintenance Resource Panel 12:00 Noon ECHO Office, 1602 The Alameda, Ste. 101, San Jose

Saturday, February 25 Central Coast Winter Seminar 8:00 a.m. to 1:00 p.m. Hilton Santa Cruz/Scotts Valley 6001 La Madrona Dr., Santa Cruz

Saturday, March 24 Wine Country Seminar 8:00 a.m. to 1:00 p.m. Sally Tomatoes 1100 Valley House Dr., Rohnert Park

Saturday, February 4 Marin Seminar 8:00 a.m. to 1:00 p.m. Embassy Suites 101 McInnis Parkway, San Rafael

Thursday, March 1 North Bay Resource Panel 11:45 a.m. Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael

Wednesday, April 4 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Ste. 101, San Jose

Monday, March 12 Accountants Resource Panel 6:00 p.m. Francesco’s Restaurant Oakland

Wednesday, February 8 South Bay Resource Panel 12:00 Noon Buca Di Beppo 1875 S. Bascom Ave., Campbell Friday, February 10 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1604 Locust St., Walnut Creek Wednesday, February 15 Wine Country Resource Panel 11:45 a.m. Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park

Tuesday, March 13 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Wednesday, March 21 Wine Country Resource Panel 11:45 a.m. Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park

Saturday, April 21 South Bay Seminar 8:00 a.m. to 1:00 p.m. Campbell Community Center 1 W. Campbell Ave., Campbell Friday and Saturday June 22, 23 ECHO Annual Seminar Santa Clara Convention Center Santa Clara

Tuesday, April 11 South Bay Resource Panel 12:00 Noon Buca Di Beppo 1875 S. Bascom Ave., Campbell Friday, April 13 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1603 Locust St., Walnut Creek Wednesday, April 18 Wine Country Resource Panel 11:45 a.m. Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park

Regularly Scheduled ECHO Resource Panel Meetings Resource Panel Maintenance North Bay East Bay Accountants Central Coast South Bay Wine Country Legal 38

February 2012 | ECHO Journal

Meeting First Wednesday, Even Months First Thursday, Odd Months Second Friday, Even Months Second Monday, Odd Months Second Tuesday, Odd Months Second Wednesday, Even Months Third Wednesday, Monthly Quarterly

Location ECHO Office, San Jose Contempo Marin Clubhouse, San Rafael Massimo Restaurant, Walnut Creek Francesco’s Restaurant, Oakland Pasatiempo Inn, Santa Cruz Buca Di Beppo, Campbell Eugene Burger Management Co., Rohnert Park Varies

Learn to

Face

CID Challenges

at the ECHO

Marin Seminar

Saturday, February 4, 2012 Embassy Suites, 101 McInnis Parkway, San Rafael Seminar Agenda 8:00 a.m. Registration and Continental Breakfast 8:45 Welcome and Introductions—Oliver Burford 9:00 Legislative and Case Law Update—David F. Feingold, Esq. Learn what Sacramento has been up to in 2011 and what you need to know for 2012. You will also find out about those association conflicts and disputes that ended up in the courts and pick up valuable tips in the process! 9:45 Hot Topics: Rental Restrictions, Smoking, Emails, Meetings and More —Glenn Youngling, Esq. What are the burning issues facing your association? How are you going to deal with the changes in the law, and other issues that are hot in 2012? We guarantee that we will hit your hot topic, and that you will find you are not alone. 10:30 Break 10:50 Fiduciary Duty in Hard Times, A Participatory Session—Wanden Treanor, Esq. The poor economy persists, values in common interest developments continue to decline and the problems for association directors arising directly from the stormy financial climate have increased. We will present a hypothetical “Board Packet” to the audience and in this quick paced interactive session, you will work with a fictional board and learn new tools to handle the issues facing your community. 12:15 p.m. Q&A Session—All Speakers The speakers will answer your questions, and even some you did not realize you had. 12:35 Drawings for Door Prizes and Close 1:00 Adjourn

Ticket Prices ECHO Members: $59 Non-Members: $69

Yes, reserve _____ spaces for the ECHO Marin Seminar. Amount enclosed: $__________ (attach additional names) Name: HOA or Firm: Address: City:

State:

Zip:

Phone:

Call (408) 297-3246 or visit www.echo-ca.org for more information. Sponsored by ECHO

Visa/Mastercard No.

Exp. Date:

ECHO Honor Roll

About

ECHO Honors Volunteers Beth Grimm 2011 Volunteer of the Year ECHO Resource Panels Accountant Panel Richard Schneider, CPA 707-576-7070 Central Coast Panel John Allanson 831-685-0101 East Bay Panel Beth Grimm, Esq., 925-746-7177 Mandi Newton, 415-225-9898 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Brian Seifert, 831-708-2916 North Bay Panel Diane Kay, CCAM, 415-846-7579 Stephany Charles, CCAM 415-458-3537 San Francisco Panel Jeff Saarman, 415-749-2700 South Bay Panel Toni Rodriguez, 408-848-8118 George Engurasoff, 408-295-7767 Wine Country Panel Maria Birch, CCAM, 707-584-5123

Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry Bowles Joelyn Carr-Fingerle, CPA Chet Fitzell, CCAM John Garvic, Esq., Chair Geri Kennedy, CCAM Wanden Treanor, Esq.

February 2012 | ECHO Journal

SF Luncheon Speakers John Allanson Jeffrey Barnett, Esq. Tyler Berding, Esq. Ronald Block, PhD. Sandra Bonato, Esq. Wendy Buller Doug Christison, PCAM, CCAM Karen Conlon, CCAM Rolf Crocker, CCAM Ross Feinberg, Esq. David Feingold, Esq. Tom Fier, Esq. Kevin Frederick, Esq. John Garvic, Esq. Beverly Gordon, CCAM Sandra Gottlieb, Esq. Beth Grimm, Esq. Brian Hebert, Esq. Roy Helsing Stephen Johnson, CFP Garth Leone Nico March Kerry Mazzoni Thomas Miller, Esq. Larry Pothast Larry Russell, Esq. Steve Saarman Jim Shepherd Nathaniel Sterling, Esq. Debra Warren, PCAM, CCAM Steven Weil, Esq. Mark Wleklinski, Esq. Glenn Youngling, Esq.

Seminar Speakers June 18, 2011 ECHO Annual Seminar Julie Adamen John Allanson Jeffrey Barnett, Esq. Tyler Berding, Esq. Jacquie Berry Sandra Bonato, Esq.

Jeffrey Cereghino, Esq. Timothy Cline Paul P. Cordova, PE Alan Crandall Bradley Epstein, Esq. Lisa Esposito, CCAM John Garvic, Esq. Beverlee Gordon Sandra Gottlieb, Esq. Patrick Holman Linnea Juarez, PCAM, CCAM David Kuivanen, AIA Kerry Mazzoni Evan McKenzie, Esq. Steven Saarman Brian Smith Deon Stein, Esq. Wanden Treanor, Esq. Steven Weil, Esq.

Recent ECHO Journal Contributing Authors November 2011 Timothy Cline, CIRMS Beth A. Grimm, Esq. Pete Pearson Paul Windust, Esq. Glenn H. Youngling, Esq. December 2011 Pierce Gore, Esq. Michael Hardy, Esq. Stephanie J. Hayes, Esq. Kerry Mazzoni Roger Patching January 2012 Linda A. Bartel, PCAM Sandra M. Bonato, Esq. Michael Gartzke, CPA Beth A Grimm, Esq. Ken Kosloff Susan Spott

ECHO What is ECHO? ECHO (Executive Council of Homeowners) is a California non-profit corporation dedicated to assisting community associations. ECHO is an owners’ organization. Founded in San Jose in 1972 with a nucleus of five owner associations, ECHO membership is now 1,525 association members representing over 150,000 homes and 325 business and professional members.

Who Should Join ECHO? If your association manages condominiums or a planned development, it can become a member of ECHO and receive all of the benefits designated for homeowner associations. If your company wants to reach decision makers at over 1,450 homeowner associations, you can become an associate member and join 350 other firms serving this important membership.

Benefits of ECHO Membership • Subscription to monthly magazine for every board member • Yearly copy of the Association Statute Book for every board member • Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento

ECHO Membership Dues HOA Size 2 to 25 units 26 to 50 units 51 to 100 units 101 to 150 units 151 to 200 units 201 or more units Business/Professional

Rate $120 $165 $240 $315 $390 $495 $425

ECHO Journal Subscription Rates Members Non-members/Homeowners Businesses & Professionals

$50 $75 $125

How Do You Join ECHO? Over 1,800 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for membership, call ECHO at 408-2973246 or visit the ECHO web site (www.echo-ca.org) to obtain an application form and for more information.

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ECHO Executive Director Continued from page 31

and provide additional funding sources for revenue diversification • Experience in growing a business with infrastructure systems and procedures that support viable, successful and sustainable growth • A strategic visionary who also possesses strong operational expertise • Financial acumen that includes trends assessment, fiscal health analysis, business plan and report preparation, and budget administration • Skilled communicator with excellent oral, written and public speaking skills • Experience with organizational and employee management best practices • Track record of building alliances and partnerships with other organizations • Direct experience working with a nonprofit Board of Directors • Legislative assessment and advocacy experience (preferred) • Knowledge of and experience with HOA & CID industry (strongly preferred)

Requirements • Passionate belief in ECHO’s mission and empathy for homeowner concerns • Minimum of five years in executive-level senior management positions • Bachelor’s Degree with a Business or Marketing emphasis preferred

• Experience directly managing an annual budget of $1 million or more • Collaborative, inclusive and transparent leadership approach

The Workplace ECHO’s administrative offices are based in San Jose, CA. The position will require some travel throughout Northern California and eventually, as the membership base expands, to Southern California as well. The job involves a fast-paced and high-energy environment with the need to successfully balance multiple priorities, projects and responsibilities. Some weekend and evening hours will be required for ECHO educational seminars and conferences.

Ace Property Management . . . . . . . .17 American Management Services . . . .9 Angius & Terry . . . . . . . . . . . . . . . . .3 A.S.A.P. Collection Services . . . . . . .22 Association Reserves . . . . . . . . . . .18 Berding | Weil . . . . . . . . . . . . . . . . .44 Collins Management . . . . . . . . . . . .17 Community Management Services . .14 Compass Management . . . . . . . . . .15 Cool Pool Service . . . . . . . . . . . . . .23 Cornerstone Community Mgmnt . . . .14 Ekim Painting . . . . . . . . . . . . . . . . . .8 First Bank Association Bank Srvcs . . .8 First Bank Association Bank Srvcs . .23 Flores Painting . . . . . . . . . . . . . . . .34 Helsing Group, The . . . . . . . . . . . . .18 M & C Association Services . . . . . . .34 Massingham and Associates . . . . . .25 Master Plumbing & Sewer . . . . . . . .43 Mutual of Omaha Bank . . . . . . . . . .16 PML Management Corp. . . . . . . . . .16 Pollard Unlimited . . . . . . . . . . . . . .24 R. E. Broocker Co. . . . . . . . . . . . . .17 Rebello’s Towing Service . . . . . . . . .19 REMI Company . . . . . . . . . . . . . . . .23 Saarman Construction . . . . . . . . . .22 Statcomm . . . . . . . . . . . . . . . . . . .24 Varsity Painting . . . . . . . . . . . . . . . .10

The position offers a competitive salary and a comprehensive benefits package.

To Apply Please submit your resume and a thoughtful cover letter describing how your skills and experience meet the needs of the position and the organization. Preference will be given to those candidates who use their cover letter to offer a broader and deeper insight into their career history that is not already covered in their resume. Job application materials should be sent via email by February 20, 2012 to: Peter Lee, Executive Search Consultant Email: peterclayton@sbcglobal.net Principals only, no recruiters please. ECHO is an equal opportunity employer. ECHO Journal | February 2012

New election rules: $500 In today’s economic crisis, there may be some items that associations can cut to reduce costs. ECHO membership is not one. Let’s face it, educated board members are better fiduciaries, which helps them to avoid costly law suits and possibly personal liability. ECHO is the premier resource in California for board member education. ECHO offers new articles each month with practical and easy to understand advice about current California requirements, and what may be on the horizon. ECHO staff is available by phone or E-mail to answer members’ questions about association problems or to recommend competent professional services when necessary. And with discounted member rates at more than a dozen educational events throughout the year, ECHO is simply the best educational resource for California homeowners.

Avoid Litigation Each year, as a member benefit, ECHO sends every board member a copy of the updated Community Association Statute book. Every issue of the ECHO Journal and every seminar examine one or more aspects of compliance with association law, because one of the major causes of expensive litigation is ignorance of the law.

Mailing ballots: $200 Make Better Financial Choices Many associations struggle to understand reserve funding requirements and strategies, the benefits and disadvantages of using special assessments, proper collections practices, and even how to determine what components the association is required to maintain. At a time when wise financial planning is essential, ECHO members have access to a wealth of articles about reserve funding, budgeting, insurance, collections, and much more. Fight Costly Regulation Every year, Sacramento legislators introduce more legislation that confuses the job of California board members and increases the costs of compliance. ECHO is committed to fighting unnecessary regulation in California and promoting the interests and welfare of common interest developments. Hire Competent Professionals ECHO offers a variety of articles and publications to help members evaluate their service providers, including questions to ask prospective management firms and contractors. All ECHO Journal articles are available to members at no cost, and publications are sold to members at a discount.

Avoiding a lawsuit: Priceless. Spend a Little, Get a Lot The cost of ECHO membership is minimal. In a worsening economy, associations are looking to cut big expenses from their budgets. Yet, ECHO membership is as little as 25¢ per unit each month. For that small cost, here’s what every board member receives as part of being a member of ECHO: • A subscription to the ECHO Journal • An annual copy of the current Community Association Statute book • Unlimited access to ECHO’s library of past articles • Telephone consultations with ECHO staff about their problems • Reduced fees for ECHO events • Discounted prices on publications • And much more… In These Tough Economic Times, ECHO Membership is a Necessity As the only California organization devoted exclusively to board member and homeowner education, ECHO is a one-of-a-kind resource that your association can’t afford to lose.

We service throughout Santa Clara and San Mateo counties with a record for honest, experienced service, quality work, and professional qualifications.

If you ha have ave boilers, bo booster ooster pumps,, sump pu pumps, umps, hot wa water ater pr problems, oblems,, deteriorating deteriorat ting sewers, small sm mall line camera a inspections, inspectio ns, water softener so oftener break break k downs or downs, o late night eme emergencies, ergencies give ergencies, e us a ca call. all. W We e pr provide ovide e the supportt managers s and boar boards ds ne need eed to maintain n and upgrade upgrrade their com complex mplex plumbing g systems.

877-69 877-691877 69 91 0400 91-0400 0 MasterPlu MasterPlu umbing.n mbing.net net STRAIGHT TALK TAL ALK LK

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