ECHO Journal - January 2013

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

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A Journal for California Community Association Leaders

echo-ca.org

January 2013

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 professional should be sought.

Contents 10

Top Five Resolutions for 2013 It’s that time of the year when we should focus on improving our communities. So here are five New Year’s Resolutions for your Homeowners Association that are guaranteed to produce positive results.

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How Can CC&Rs Control What I Do? Associations are governed by several documents, perhaps the most important of which is the Covenants, Conditions & Restrictions (CC&Rs) of the common interest development. The CC&Rs, among other things, set forth the duties and responsibilities of the individual owners and the Association, restrictions on what can be built and maintained on the property, and how the duties and responsibilities can be enforced.

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Fund Accounting vs. Equity Method From one of ECHO’s expert accountants, a discussion of the importance of choosing the best way to display financial information so it can provide a coherent and complete picture of the health of your association.

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Holistic Land Stewardship Holistic land stewardship is a frame of reference for considering the larger ecology when making decisions about the design and maintenance of your landscape. Using the holistic land stewardship model leads to sustainable landscapes that fit into the surrounding community and serve a recreational and ecological purpose.

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.

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.

ECHO 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 Jennifer Allivato Directors Jerry L. Bowles Stephanie Hayes Robert Rosenberg Brian Seifert Steven Weil

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John Garvic David Levy Kurtis Shenefiel Wanden Treanor

Executive Director Brian Kidney

Departments 6

News From ECHO

Director of Marketing & Membership Jennifer Allivato

32 Directory Updates

Director of Communications Tyler Coffin

35 Legislation at a Glimpse

Legislative Consultant Government Strategies, Inc.

38 ECHO Volunteers

Design and Production George O’Hanlon

39 Advertiser Index

ECHO Mission Statement Serving Community Associations ECHO Journal | Januar y 2013

33 Calendar of Events 36 ECHO Bookstore 39 ECHO Marketplace

On the Cover Top Five Resolutions—page 10 3

Join us at the

ECHO San Francisco Educational Seminar Thursday, January 17, 2013 McCormick & Kuleto’s 900 North Point Street, Suite H301 San Francisco, CA 94109 11:30 a.m.–1:30 p.m.

What Happens When Boards Violate Davis-Stirling?

Speaker: Steven Weil, Esq. Berding | Weil LLP Lunch included and parking validated Price: $49 Members $59 Non-Members Register online at www.echo-ca.org or fill out the form below.

Yes, reserve _____ spaces for the ECHO San Francisco Educational Seminar.

Amount enclosed: $__________ (attach additional names) Name: Email Address: HOA or Firm: Address: City:

State:

Zip:

Phone: Visa/Mastercard No.

Exp. Date:

Signature: Return with payment to: ECHO, 1602 The Alameda, Ste 101, San Jose, CA 95126 Orders will not be processed without payment in full. Fees for cancelled registrations will not be refunded. Telephone: 408-297-3246; Fax: 408-297-3517

Join us at the

ECHO Marin Educational Seminar Saturday, February 9, 2013 Embassy Suites San Rafael 101 McInnis Parkway San Rafael, CA 94903 8:30 a.m.–1:30 p.m.

You Be the Judge!, David F. Feingold, Esq. Putting “Unity” Back in “Community”, Wanden Treanor, Esq. The New Davis-Stirling Act: What You Need to Know, Glenn Youngling, Esq. Q&A Session Lunch included and parking validated Price: $49 Members $59 Non-Members Register online at www.echo-ca.org or fill out the form below.

Yes, reserve _____ spaces for the ECHO Marin Educational Seminar.

Amount enclosed: $__________ (attach additional names) Name: Email Address: HOA or Firm: Address: City:

State:

Zip:

Phone: Visa/Mastercard No.

Exp. Date:

Signature: Return with payment to: ECHO, 1602 The Alameda, Ste 101, San Jose, CA 95126 Orders will not be processed without payment in full. Fees for cancelled registrations will not be refunded. Telephone: 408-297-3246; Fax: 408-297-3517

News from ECHO

Happy New Year!

It's time to usher in a New Year and with it come fresh opportunities for growth and improvement. Here at ECHO we are well underway with our New Year’s goal of enhancing your membership experience. We’re reinventing how we interact with associations across California. This means more events in more places, frequent contact with you through email and print, and a constantly growing online educational presence.

ECHO will host many new and returning events in 2013 and I would like to highlight just a few: • Join us for our return to San Francisco for an afternoon Educational Luncheon Seminar on Thursday, January 17 at McCormick & Kuleto’s. Attorney Steven Weil will offer a detailed look at the consequences of violating Davis-Stirling, and how boards can protect themselves and their communities.

• On February 9th ECHO will host our Marin Educational Seminar at the Embassy Suites in San Rafael. Don’t miss this program’s all-star panel of attorneys: Wanden Treanor, David Feingold, and Glen Youngling.

• For the first time ECHO is bringing its signature event, the Annual Seminar, to a second location! ECHO Oakland will be held on April 6th, 2013. This full day event will feature a variety of speakers, topics, and exhibitions aimed at providing you with the most up to date information for your HOA community.

If you haven’t signed up for these exciting events yet, please fill out the registration forms in the ECHO Journal or visit us at www.echo-ca.org and look for the event links on our home page.

As always, we encourage you to reach out to us and let us know how we can best serve you.

All of us here at ECHO are thankful for your continuing support and we are very much looking forward to new things to come in 2013!

Wishing all the best to you and yours,

Jennifer Allivator Director of Marketing & Membership

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ECHO Journal | Januar y 2013

2013 ECHO Educational Calendar Santa Rosa

ECHO Seminars Now there’s one near you.

Sacramento

San Rafael

Walnut Creek Oakland San Francisco

San Jose

If you’ve ever wished that ECHO would hold a seminar closer to your association, chances are that we’ll be nearby during 2013. We are adding more seminars during more times of the year than ever before. Take a look and mark your calendar. We can’t wait to see you there!

Santa Cruz

Fresno Monterey

Locations and Dates of New ECHO Events January 17 San Francisco Educational Seminar

McCormick & Kuleto’s San Francisco

February 9 Marin Educational Seminar

Embassy Suites, San Rafael

March 2

Central Coast Educational Seminar

Hotel Paradox, Santa Cruz

March 23

Wine Country Educational Seminar

Fountain Grove Inn, Santa Rosa

April 5–6

ECHO Oakland Tradeshow

Oakland Marriott City Center, Oakland

May 4

South Bay Educational Seminar

Orchard City Banquet Hall, Campbell

May 25

Fresno Educational Seminar

Park Inn by Radisson, Fresno

June 15

Walnut Creek Educational Seminar

Embassy Suites, Walnut Creek

Aug 23–24 ECHO San Jose Tradeshow

San Jose Convention Center, San Jose

Sept 7

Sacramento Educational Seminar

Le Rivage, Sacramento

Sept 21

Monterey Educational Seminar

Hilton Garden Inn, Monterey

ECHO Journal | Januar y 2013

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Get More from Your ECHO Membership!

Set up your account today. Sign up at http://www.echo-ca.org/email We are building a new website with tons of new information and features.

These features are for members only, and that means you. In order to extend these services to you, you need to set up your new ECHO membership profile online.

How Do I Sign Up? Option 1: Go to www.echo-ca.org/email. Fill out and submit the form. Done!

Option 2: Email us. If you aren’t a fan of the online form, just send an email to info@echo-ca.org. Please include your • full name; • HOA name; • primary email address; • and whether you are a board member or homeowner.

If you have any questions, please feel free to call us at (408)297-3246.

What are the New Features?

Your membership account will open up access to a continually growing library of HOA information and advice.

For starters, your ECHO membership will allow you to connect with other associations and your own members, and 8

to easily manage your account. In 2013, look forward to: Online Video We’re working on dozens of videos about common legal questions and HOA best practices. All of our presenters are HOA industry experts who offer unique insight into common problems.

Online ECHO Journal Can’t find that one issue of the Journal with that great article about pets?

Don’t worry! All of our ECHO Journals will now be accessible to ECHO members on our website.

Search for your article, pull up the Journal, and flip through it.

Online Reference Library We are building an unparalleled reference library for California HOA board members and homeowners. Whether you are looking for the current codes, new legislation, explanations of confusing laws, definitions, guides, etc.—we’ve got you covered. You’ll get instant access when we launch our new site.

Members will enjoy a constantly renewed and updated resource of the best HOA information.

ECHO Journal | Januar y 2013

Jot this event on your calendar!

ECHO Central Coast Educational Seminar Saturday, March 2, 2013 Hotel Paradox 611 Ocean Street Santa Cruz, CA 95060 8:30 a.m.–1:30 p.m.

ECHO Journal | Januar y 2013

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ECHO Journal | Januar y 2013

By Robert Rosenberg

Top Five Resolutions for 2013 I

t’s that time of year when people congregate around the water cooler to talk about their resolutions for the New Year. Why not congregate around the clubhouse and do the same thing for your community? Rarely have I ever seen an association take on creating their own resolutions for the upcoming year. It begs the question of why associations grind through the day to day instead of spending more time focused on goal setting and planning. You probably have heard about the 80/20 rule and this should apply to associations as well. Do not be the association that spends 80% of their time talking

ECHO Journal | Januar y 2013

about the noisy neighbor while your buildings are in disrepair.

So to jump start your New Year’s planning I’ll share with you my top five resolutions.

Create a Community Calendar of Events for the Board For communities that are professionally managed, you are more than likely already receiving a detailed community calendar. The point of a calendar is to track all the community events whether large or small to help the association better plan for the upcoming year. Like your budget the community calendar is not intended to be ab-

solute, but rather a guide for the Board throughout the year. The calendar should be reviewed briefly at every board meeting and become one of many living documents of the association. A sample list of items to be included on your community calendar is below, remember that many of the events have numerous prerequisite activities that must be planned for: • Board Meetings • Annual Meeting with all prerequisite events (i.e., Call for Candidates) • Insurance Renewal including date bid requests are to go out • Pool Opening/Closing 11

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• Community Events (i.e., Community BBQ) • Budget (draft and final) • Audit/Review Tax Returns • Contract Renewals • Reserve Study Review along with a current project review Complete a Community-Wide Inspection with a Construction Expert Unless you are one of the very few communities with absolutely no common area, taking care of your common area is your biggest challenge. Often you are faced with trying to piece together multiple pieces and/or sources of information about the condition of your common area. The most commonly relied on document for Boards tends to be one of the least reliable.

Now, do not get me wrong, reserve professionals do a fine job with what they are contracted to do. In most cases their contract is for a ground based visual inspection of all of your components. For example if the reserve professional is trying to tell you the condition of your roof, he is telling you from the ground. On top of that, the reserve study is out of date the minute any condition on your property changes let alone two or three years later. Take a few hours (or as long as it takes) one weekend and walk your entire complex with a construction professional to gain a much deeper insight into the condition of your community.

The professional should be able to enlighten you on what preventative maintenance you can perform to extend the life of your components, what areas need immediate attention, and what areas need more detailed investigation.

Spend Wisely Most would say that we have not quite steered clear of the most recent economic downturn, despite the fact housing seems to be turning the corner. We have to be cautious about how and where we spend our money, and your association should be no different. For those not reading closely enough, I wrote be cautious, but do not eliminate all spending. Often, I ECHO Journal | Januar y 2013

have seen Associations put in place monetary policies that defer minor costs today, creating major costs for tomorrow. This is not prudent spending and should not be employed at any cost. Preventative maintenance can account for savings of 10% to 15% over reactive maintenance. I was once involved in a community association that had to pass a $10,000 special assessment per unit because the association failed to paint their complex in over 10 years and the siding deteriorated at a much faster rate than the reserve study estimated.

Meet with All the Association’s Major Vendors There are numerous reasons for you to ask your vendors to a meeting. Beyond just trying to get to know the vendor better, the primary reason should be to ask them their opinion about your community. What could they do for you that could improve your community? If you are asking them to hold or reduce costs, engage them in diaECHO Journal | Januar y 2013

logue to understand what if any reduction in service it may cause. Their feedback may surprise you as they care about your community just about as much as you do.

Plan a Community Event It’s called a community association for a reason. You do not always have to be the bad guys (and/or gals). Most associations are riddled with apathy and it’s hard to have a community event when no one shows up. Try your best to engage your community in every way possible. Start with smaller events and work your way up to the bigger events. Do not give up based on one or two unsuccessful events; keep trying until you find the event that draws your community out.

It is always so easy to get caught up in the day to day activities of your community association. For those associations that have a community manager, delegate as much of the day to day tasks to your community manager as that is why you hired them. When you

focus on the community manager’s results rather than who or who may not be delinquent and start spending more of your time talking about the direction of your community, you will find a marketable improvement. The improvement will show at many levels in your community. First and foremost, it will show in your satisfaction of being a board member. You will be focused on the positives of your community rather than the negatives (who is not a half full kind of person?). As time goes on, the planning and communication will show as your community will physically start to flourish. As your community flourishes and others flounder around you, your homeowner satisfaction and property values should go up.

Robert Rosenberg is principal with Advance Construction Technology, Inc. Previous to his current role, he was a principal at a large community management firm. He also currently sits on the ECHO Board of Directors.

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By Patricia A. Wendleton and Sharon Glenn Pratt

How Can CC&Rs That I Have Never Read or Signed Control What I Can Do? A

ssociations are governed by several documents, perhaps the most important of which is the Covenants, Conditions & Restrictions (CC&Rs) of the common interest development.

The CC&Rs, among other things, set forth the duties and responsibilities of the individual owners and the Association, restrictions on what can be built and maintained on the property, and how the duties and responsibilities can be enforced. CC&Rs describe boundaries of areas owned in common and what is individually owned. They often describe exclusive use common areas and easements. Some CC&Rs can be 14

very specific and establish such things as heights and sizes of buildings allowed, parking restrictions, colors of paint and window coverings, particular species of plantings for landscaping, and what can or cannot be placed in yards or patios.

CC&Rs should not be confused with Bylaws, which dictate corporate governance details such as terms of office for directors, how elections are held, and times and places for meetings, or with Articles of Incorporation, which establish the official existence of the mutual non-profit corporation with the state.

What sets the CC&Rs apart from other governing documents is the fact that the CC&Rs are recorded on the property. They are part of the title report and run with the land, binding every owner of the land on which they are recorded.

It is rare to find an owner who has read the CC&Rs thoroughly before buying the property, or even after owning the property for years. It is often not easy reading, and can require legal interpretation. Yet, the buyer/owner is as bound by the terms of the document as if he/she had personally negotiated them and eventually signed the ECHO Journal | Januar y 2013

ECHO Journal | Januar y 2013

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final document. Every party who buys the property is deemed to be on notice of every detail in the CC&Rs. Covenants Running With The Land A covenant is a term used in real property law to describe a promise concerning the use of land. Covenants are either affirmative, as in a promise to do something, or negative, a promise to refrain from doing something. At law, when covenants run with the land, owners who did not agree to do something or refrain from doing something can, nevertheless, be compelled to comply with the covenant. A covenant that runs with the land binds not only the person who first agrees to the covenant, but all subsequent purchasers of the land or owners of an interest in the land, even though they do not personally agree to the covenant.

In California, statutes define four types of covenants which run with the land. They are: • Covenants in a deed or other instrument which benefit the land conveyed; • Covenants between the owners of properties or between the grantor or grantee to do, or refrain from, some act or acts on the land of the covenantor for the benefit of the land of the covenantee; • Covenants by a lessor to do, or refrain from doing, or permitting acts on adjoining or nearby property for the benefit of a lessee; and • Environmental covenants made by owners and grantees of land which are necessary to protect future users.

• Civil Code section 1468 sets forth the requirements for a covenant to run with the land, i.e., be binding on subsequent purchasers. The instrument creating the covenant must meet all the following requirements: (1) The covenant must be contained in a written instrument.

(2) The land of the covenantor which is to be affected by the covenant, and the land of the covenantee to be benefited, must be ECHO Journal | Januar y 2013

described in the instrument containing the covenant. Without a description of the land to be benefited, the statute is not satisfied and the covenant is merely personal to the covenantor.

The instrument must expressly provide that all successive owners of the land of the covenantor are to be bound by the covenant for the benefit of the land owned by, granted by, or granted to the covenantee.

Each act required by the covenant must relate to the use, repair, maintenance, or improvement of, or payment of taxes and assessments on, such land or some part thereof, or if the land owned or granted to each consists of undivided interests in the same parcel or parcels, the suspension of the right of partition or sale in lieu of partition for a period which is reasonable in relation to the purpose of the covenant.

The instrument containing such covenants must be recorded in the office of the recorder of each county in which the land, or some part thereof is situated.

Properly created and recorded covenants are enforceable against a buyer even if the deed does not contain the covenant and the buyer did not have actual notice of the covenant.

As properly prepared CC&Rs meet the requirements of Civil Code section 1468, an owner can be compelled to comply with them even if he or she was not aware of them at the time of purchase.

Equitable Servitudes When covenants have failed to meet the requirements of Civil Code section 1468, the doctrine of equitable servitudes has been used to enforce such covenants. The question of whether an equitable servitude is reasonable and enforceable is very similar to the enforceability and reasonableness of a covenant and restriction. When the doctrine of equitable servitudes is used to enforce failed covenants, certain rules apply. They are: ECHO Journal | Januar y 2013

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• An equitable servitude can only be created by a deed or a written agreement. An equitable servitude cannot be created orally. The written instrument is the final and exclusive memorial of the intent to bind successors and run with the land. Any understanding not incorporated into the written instrument is “wholly immaterial” and not binding. Werner v. Graham (1919) 181 Cal. 174, 184-185.

• A servitude running with the land “cannot be created in any uncertain and indefinite fashion.” Id. at pp.

181-182. In order to have legal effect, the written instrument or deed must clearly express the intent of the parties.

• When a deed falls short or fails in its description, “[i]t is not significant that a later buyer may have purchased with notice of the restriction.” Ross v. Harootunian (19670 257 Cal.App.2d 292, 296. The fact that the buyer had actual or constructive notice of the restriction in the original deed did not create an enforceable servitude.

Enforceability Whether considered covenants or equitable servitudes, the restrictions in the CC&Rs of a common interest development are binding and enforceable, with only a few exceptions. Provisions in CC&Rs which are illegal, for instance, or have been superseded by statute, cannot be enforced. A covenant which restricts occupancy to “a single family” is illegal, as both the Federal Fair Housing Act and California Fair Employment and Housing Act prohibit discrimination based on familial status. In fact, Association boards are mandated by law to amend any governing document which contains unlawful restrictive covenants, and can face liability for refusing to do so. Although recorded CC&Rs do not expire over time, a set which has not been updated may also contain unenforceable provisions if a statute has been amended or enacted since the time of 18

ECHO Journal | Januar y 2013

the CC&Rs, and as a result contains stricter provisions on a particular subject. For example, CC&Rs that allow an Association to non-judicially foreclose on a property when less than $1800 is at stake have now been superseded by Civil Code section 1367.4, which disallows such practice. A covenant found in CC&Rs which is contrary to Civil Code section 1367.4 is unenforceable.

On the other hand, if a statute is less strict than a CC&R provision on a particular subject, it will be the stricter provision in the CC&Rs which controls.

COMPA S S

Guiding your HOA in the right direction

Non-enforcement of CC&Rs over a period of years does not eliminate any recorded covenant found therein.

However, if the covenant is ambiguous, or if there are contradictory provisions found in the same set of CC&Rs, the courts will look to the non-enforcement or enforcement of a section in interpreting the meaning of the ambiguity or deciding which of the contradictory provisions is enforceable.

To avoid claims that CC&Rs cannot be enforced as written, Association boards should be careful and prudent about amending the CC&Rs when and if the document contains outdated and illegal restrictions, and to clean up any ambiguous wording.

However, it is never a defense for an owner to claim that he or she has not received or read the CC&Rs. The next time an owner asks “How can CC&Rs which I have never read or signed control what I can do with my home?”, the answer is that those CC&Rs contain covenants or equitable servitudes which are recorded on your property and which legally run with the land.

Sharon Glenn Pratt is founder of the law firm of Pratt & Associates, an ECHO member firm.

She specializes in civil litigation, with extensive experience in community association law, including creation, amendment and enforcement of governing documents.

Pat Wendleton also specializes in civil litigation, with substantial experience in community association construction defects and transactional law.

ECHO Journal | Januar y 2013

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ECHO Journal | Januar y 2013

By James H. Ernst, CPA, MS-Tax, CCAM

Fund Accounting vs. Equity Method of Reporting Which One is Right for You?

F

inancial statements for a homeowners’ association may be presented using either the Fund Accounting Method of Reporting or the Equity Method of Reporting. Both methods are permitted (when properly formatted) and both can be used on an interim basis in the homeowners’ association industry. However, the question is, which one is right for you?

ECHO Journal | Januar y 2013

We recommend that you prepare your interim (monthly or quarterly) and year-end financial statements using the Fund Accounting Method of Reporting, simply because we believe it is the most informative method of presenting the separate activities (e.g., operating, reserves, etc.) of your homeowners’ association.

We will describe the two methods of reporting (Fund Accounting Method 21

and Equity Method) that are available for your financial statements, highlight their effect on your financial statement presentation, and address the year-end review or audit report prepared by your independent CPA. Fund Accounting Method of Reporting The Fund Accounting Method of Reporting is in conformity with Generally Accepted Accounting Principles (GAAP). Moreover, the guidelines issued by the American Institute of Certified Public Accountants (AICPA) state that this method is preferred for the homeowners’ association industry.

When you choose the Fund Accounting Method, the effect of this choice on your financial reports will be as follows: Balance Sheet Your Balance Sheet will show a separate column for each fund, and a column listing the totals of all funds.

There will be a separate column for your operating fund activities, your reserve fund activities, and any other activities that you wish to segregate from the operating and reserve funds (e.g., litigation, special assessment, etc.).

Each column will identify the fund it represents, listing only those assets and liabilities related to that specific fund, along with the fund balance. The totals reflected in the last column combine assets and liabilities for all funds (these “Totals” should be the same amounts that are reported under the Equity Method).

Income Statement There will be one Income Statement for each separate activity. One for your operating fund activities, another for your reserve fund activities, and another for any other activities that you wish to segregate (e.g., litigation, special assessment, etc.).

Please note the “Current Year–Excess (Deficit)” listed on the Income Statement for each separate fund must agree to the amount reported as “Current Year–Excess (Deficit)” on the Balance Sheet for that fund.

22

ECHO Journal | Januar y 2013

In addition, there will be a separate “Income Statement-Reserves Fund” to track reserve fund activities (e.g., members’ assessments and expenditures).

You can also prepare a separate “Income Statement-Other Fund” (e.g., litigation, special assessment, etc.) for each separate activity that you wish to track.

For litigation, under Section 1365.5(d) of the California Civil Code, “…the association shall make an accounting of expenses related to the litigation on at least a quarterly basis. The accounting shall be made available for inspection by members of the association….”

In other words, you need to track all receipts (amounts collected through the legal process) and expenditures (amounts necessary to support the law suit and to repair the defects) related to defect litigation. A separate “Income Statement-Litigation Fund” is the ideal way of tracking these items without having to create a separate special report for the membership.

“

Equity Method conforms to generally accepted accounting principles, but the AICPA recommends the Fund Accounting Method.

”

Equity Method of Reporting The Equity Method of Reporting (sometimes called Non-Fund or Commercial) is also in conformity with GAAP, when properly used. Although the AICPA has stated that the Equity Method is acceptable, they recommend Fund Accounting for the homeowners’ association industry.

When you choose the Equity Method, the effect of this choice on your financial statements will be as follows: Balance Sheet Your Balance Sheet will show only one column for all funds. Unlike Fund ECHO Journal | Januar y 2013

Accounting, there will not be a separate column for your operating fund activities, your reserve fund activities, nor any other activities that you wish to segregate (e.g., litigation, special assessment, etc.).

Although both Balance Sheets (Fund Accounting and Equity) will list the totals for each separate account (e.g., assets and liabilities), the Equity Method may not have the extra information related to the individual funds.

The effect is that it could be deficient in the information presented to the reader; therefore, not in conformity with GAAP. Further, instead of showing a “Fund Balance” for each separate fund, this Balance Sheet lists Members’ Equity, which is supposed to be broken down into “Undesignated” (operating fund), “Designated for Future Repairs and Replacements” (reserve fund), and “Designated for Litigation” (litigation fund). As a result, the amount listed as “Current Year–Excess (Deficit)” in the Income Statement may not agree to the Balance Sheet, and it may not be the same amount listed on the Income Statement presented under the Fund Accounting Method either. This is simply because all financial activities for multiple funds may be imbedded into one Income Statement.

One disadvantage of the Equity Method is that the Balance Sheet may not clearly identify which assets and which liabilities belong to which fund – this can be done with account descriptions, but it can be very confusing to the reader if not clearly marked.

Another disadvantage, if there are interfund accounts (due to/due from) that are not on the Balance Sheet, it will still appear to be in balance (assets – liabilities + members’ equity), when in fact it is not complete. Whereas, under Fund Accounting, if interfund accounts are not listed in their appropriate funds, the individual funds will not be in balance. This simply means that when using Fund Accounting, all inter23

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fund balances must be reported for each separate fund to be in balance.

Income Statement When using the Equity Method, there often will be only one Income Statement combining all activities.

That is, there might not be a separate Income Statement for the operating fund, nor the reserve fund, nor any other fund.

Although the Equity Method may be in conformity with GAAP, the AICPA still requires a separate Income Statement for the operating fund and reserve fund activities; therefore, if the reserve fund activities are imbedded in this one Income Statement, or are listed on the face of the Balance Sheet only, then these financial statements will not be in conformity with GAAP. Year-End CPA Reviewed or Audited Financial Statements Finally, keep in mind that regardless of which method of reporting that was chosen for your financial statements, whenever your year-end financial statements are reviewed or audited by the association’s independent CPA, the CPA reviewed or audited financial statements will, more often than not, be presented using the Fund Accounting Method of Reporting.

Therefore, it makes sense that your interim and year-end financial statements be presented under the same method of reporting that is used for the annual CPA reviewed or audited financial statements.

Conclusion Fund Accounting Method of Reporting (Recommended) There are a variety of reasons why we recommend using Fund Accounting for your interim financial statements.

Your Balance Sheet will clearly identify which fund the various assets and liabilities are associated with. The “Current Year–Excess (Deficit)” listed on the various Income Statements will agree to the amounts reported on the Balance Sheet. Your interfund balances (due to/due from), if any, must be ECHO Journal | Januar y 2013

listed; otherwise, the individual funds will be out of balance. Further, the method used by most CPAs is the Fund Accounting Method (preferred by the AICPA); therefore your annual financial statements would be presented using the same method.

Equity Method of Reporting (Not Recommended) There are a variety of different reasons why we do not recommend using Equity Method for your interim financial statements.

“

The Fund Method is the one used most often by accountants, therefore your financial statements would be presented in the same method.

”

Your Balance Sheet may not have the same detailed information with regard to assets and liabilities and their corresponding members’ equity. The Income Statement may have information related to other funds (e.g., reserve revenues and expenditures) which may cause the amount reported as “Current Year–Excess (Deficit)” to not agree with the amount reported on the Balance Sheet. Interfund balances can be easily left off while giving the ilECHO Journal | Januar y 2013

lusion that the financial statements are complete. Finally, although the Equity Method can be in accordance with GAAP, the AICPA prefers Fund Accounting.

However, if you choose the Equity Method, make sure you provide a separate Income Statement for each separate activity (e.g., operating, reserves, etc.)—do not imbed reserve fund activities into a single Income Statement or on the face of the Balance Sheet. Further, make sure all assets and liabilities are clearly identified by fund, and your interfund accounts are reported on the Balance Sheet. Otherwise, your financial statements may be incomplete; therefore, not in conformity with GAAP. More importantly, they may be confusing to the reader.

Sample Financial Statements Please visit www.Ernst-CPA.com and select “Homeowner’s Associations” under the tab “Our Services” to view sample Balance Sheets and Income Statements illustrating the Fund Accounting Method and the Equity Method of Reporting.

James H. Ernst, CPA, MS-Tax, CCAM is a Certified Public Accountant and a member of ECHO. His CPA firm, James Ernst Accounting, has been providing accounting and tax services since 1993, and he specializes in providing professional services for the homeowners’ association industry. He can be reached at 866-289-6000 or jim@ernstcpa.com.

25

ship

community based design.. For example desert, prairie, or coastal scrub plants will not fare well in oak woodland or brackish tidal environments. A plant that has evolved to live in a rich forest floor will not do well in a rocky desert and vice versa.

In addition to climatic and geographical differences, plant ecozones are differentiated by their age or successional level. There is a natural succession from a disturbed barren landscape through weathering and biological activity that increases orECHO Journal | Januar y 2013

By Dave Phelps, ASLA, ISA

ganic matter, deepens soils, and transitions through differently adapted populations of interdependent organisms.

A landscape designed without considering plant communities will need adjustments to make it more sustainable.

Conserving Resources Soils, hydrology, and biological diversity are the cornerstones of success.

If plants are properly grouped by ecozone, it is possible to provide for the needs of these plant groups with the least amount of inputs. Modern landscape ecology often artificially speeds

up soil succession through the process of adding organic matter, inoculating the ecology with new populations of organisms, addressing compaction and drainage issues, as well as mitigating or eliminating toxicities. With these techniques, the land steward can do, in a matter of hours, what nature does in thousands of years.

Fertilizer is often a problem on traditionally maintained landscapes. The problem is many-fold; the products generally used are usually made entirely of non-renewable fossil fuels, they are salty, and much of what is applied on the landscape runs off and becomes pollution in the environment. Synthetic fertilizer can be thought of as “plant drugs� that keep the plants dependent on regular doses. Excessive use promotes faster growth that causes weaker cell walls and immune systems, which make the plants more susceptible to pests and pathogens. The salt content of most fertilizers makes it harder for the plants to take up water and causes extreme harm to microorganisms in the soils. These same plants, 27

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given organic based foods, would have slower and healthier growth. The organic fertilizer also provides food and habitat for millions of microorganisms that provide adequate mineralization, nutrient holding, and nutrient cycling to create a healthy ecosystem.

Not only do the soil microorganisms help with nutrient availability and reduce pollution, but they also break down organic matter into humus and help improve soil structure. A thriving soil ecology will continually aggregate, sand, silt, and clay soil particles, into clumps. The clumps and resulting pore spaces at the soil surface increases water infiltration rates and reduces erosion. Increased pore spaces also increases the ability of the soil to absorb and retain water. Deeper in the soil, the increased oxygen levels in the pores promote deeper plant roots.

Deeper roots allow for more nutrient availability, drought tolerance, and stable trees. The “washing” effect soil organisms have on water as it moves 28

through the soil improves the quality of the water entering the aquifers.

While it is best if a land steward incorporates compost into the topmost layer of soil, applying compost on top of the soil surface is also beneficial.

The compost moves deeper into the soil through natural processes. Compost is best because it adds organisms, foods, and habitat all at once. If compost can’t be used, compost teas or extracts can inoculate soils with diverse populations of organisms. Organic mulch also helps improve soils. Mulch not only provides a uniform appearance and neat aesthetic, but it helps retain moisture, encourages biodiversity, and reduces weed seed germination.

The increased organic content also promotes beneficial fungi and promotes healthier conditions for woody perennials and discouraging the growth of weedy annuals.

Water is a precious natural resource, potable water even more so. Adjusting the application of water to each eco-

zone is where the most money can be saved. In this context the zones are called hydrozones. The goal is to increase the uniform distribution of water within each hydrozone of the landscape. When plants are not grouped based on their water needs, most of the landscape is overwatered to provide enough water to a small number of plants. Too much water may not cause visible problems, but the fast growth of the overwatered plants is more susceptible to pests and pathogens. It is also a huge waste of a precious resource and equivalent to pouring cash down the drain. In the worst cases, extreme oversaturation of the root zone can cause anaerobic conditions in the soil, creating shallower roots, increasing plant stress and in some cases, tree failure.

Advances in irrigation technology now allow us to be very uniform in the application of water within a hydrozone. “Matched precipitation rate,” “pressure compensating,” and “check valve-equipped” drip emitters, miniECHO Journal | Januar y 2013

stream rotors, and tree well bubblers are all investments that can greatly improve irrigation uniformity. This concept is so important that California’s Water Efficient Landscape Ordinance, or AB1881, mandates that compliant systems have high distribution uniformity (DU) of .71 or above. Old spray nozzles will not meet this requirement.

A weather based controller finetunes the application of water to match what is lost through evaporation transpiration (water lost through the plant leaves). This can be akin to the concept of Kaizen or continual improvement through iteration and adjustment. As the plants mature, soils are improved, or the climate changes; a weather based irrigation system will adjust automatically, ensuring the plants have just the water they need. It must be noted that leaks or breaks in any system should be addressed before any other improvements to the landscape ecology are implemented.

Biodiversity The third part of holistic land stewardship is biodiversity. A diverse ecology is better able to withstand change and stress. A monoculture is an ecology that is vulnerable to potential pests and pathogens and a situation to be avoided. Diversity should be thought of on three scales; the macro scale would include the landscape plant diversity along with the plant’s abilities to attract and provide food and habitat for a diverse population of insects, arachnids, birds, reptiles, and mammals, ideally including us! The microarthropods and earthworms make up the middle scale. These are the “chippers and shredders” as well as the “movers and aerators” that efficiently process mulch and surface organic matter and move it into the soil. The third smallest scale is the microcosm that is found on the surfaces of leaves and roots. These are respectively called the phylosphere and the rhizosphere.

The land steward acts to promote beneficial conditions and balance on all three scales. While living systems are ECHO Journal | Januar y 2013

29

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always changing, in a healthy, diverse system the available food is quickly assimilated, the habitats are continually occupied, and there is adequate competition to provide for natural selection. In a healthy system, a pest or pathogenic organism will have its population numbers held in check naturally. A good example would be a pathogenic fungal mildew spore landing on a leaf. If that leaf’s surface is populated with organisms such as bacteria, beneficial fungi, and nematodes, that diseasecausing spore will likely be eaten and/or will not find an available niche in which to infect the plant. Greater diversity creates greater stability in the landscape and the holistic land steward can help direct the symphony.

The modern landscape is not a diverse panacea, and pest populations do get out of balance. In such situations, the knowledgeable land steward practices what has become known as Integrated Pest Management (IPM). The tenets of IPM lead the steward through a holistic process where through the strategic use of physical and cultural controls, the pest population is brought back into balance. The use of pesticides is a last resort and the collateral damage to beneficial populations within the ecology is understood. The preferred strategy is biological controls including the introduction of beneficial organisms such as bacteria, nematodes, and insect predators when physical and cultural controls miss the mark.

The offender in modern landscape ecologies is the extensive use of turf.

An outdated status symbol of the ruling elite of historical Europe, turf’s only reasonable role in the modern California landscape is as a recreational surface. The desire to carpet our environments with this water-hogging, high maintenance, and polluting monoculture is understandable given our evolution on the savannas of Africa, but makes no sense in our current situation. We live in a resourcescarce environment, pollution and pesticide-caused diseases and habitat ECHO Journal | Januar y 2013

collapses are rampant, and turf requires space and inputs that hinders rather than helps our stressed ecologies. The toxic stew that runs off lawns into our waterways contributing to the fisheries collapses and well water contamination as well as the approximately 800-million gallons of fuel used annually in the US by lawn mowers, make turf an obvious target for the holistic land steward to address. Organically transitioning turf areas to diverse, climate-appropriate plants on drip irrigation, is the best way to improve the health of your landscape, create beneficial habitat and save money by reducing water use. It can also be a surprisingly beautiful improvement.

Land stewardship is an ancient concept and embodies the understanding that our time on the planet is short. We share the earth with a large number of inter-related and inter-dependent organisms. We must make knowledgeable, responsible decisions that help improve our soils, water, and ecologies.

Indigenous peoples have a tradition of considering the next seven generations when making decisions. Non-renewable resources should not be squandered for the fleeting and false sense of satisfaction from large green lawns and miles of clipped hedges. Working with nature and rejoicing in the beauty and the ineffable web of life is the way of the land steward. The land steward gets satisfaction from creating a diverse and stable habitat, having moved the successional state of the land forward, and working to reduce resource use and greenhouse gas emissions.

Through a holistic systems approach, the land steward provides a healthy environment for future generations, but can also find meaning in our very existence.

Dave Phelps is a Sustainability Manager with Cagwin & Dorward, a full service landscape contractor specializing in landscape maintenance, construction, water management and tree care in the greater San Francisco Bay area.

ECHO Journal | Januar y 2013

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

New Members Kasdan Simonds Weber & Vaughan LLP 100 Pringle Ave. #700 Walnut Creek, CA 94596 Contact: Kenneth Kasdan Tel: (925) 906.9220 Fax: (925) 906.9221

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

32

ECHO Journal | Januar y 2013

ECHO Events Calendar

Save these important dates...

Thursday, January 3 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse, San Rafael

Friday, February 8 East Bay Resource Panel 12:00 Noon Massimo Restaurant, Walnut Creek

Wednesday, April 3 Maintenance Resource Panel 12:00 Noon ECHO Office, San Jose

Monday, January 7 Accountants Resource Panel 6:00 p.m.

Scott’s Seafood Restaurant, Oakland

Wednesday, February 13 South Bay Resource Panel 12:00 Noon Buca Di Beppo, Campbell

Wednesday, April 10 South Bay Resource Panel 12:00 Noon Buca Di Beppo, Campbell

Wednesday, February 20 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co., Rohnert Park

Friday, April 12 East Bay Resource Panel 12:00 Noon Massimo Restaurant, Walnut Creek

Tuesday, January 8 Central Coast Resource Panel 12:00 Noon Michael’s on Main, Soquel Wednesday, January 16 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co., Rohnert Park

Thursday, March 7 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse, San Rafael

Wednesday, January 16 Legal Resource Panel 6:30 p.m.

Scott’s Seafood Restaurant, Oakland Wednesday, February 6 Maintenance Resource Panel 12:00 Noon ECHO Office, San Jose

Monday, March 11 Accountants Resource Panel 6:00 p.m.

Scott’s Seafood Restaurant, Oakland

Wednesday, April 17 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co., Rohnert Park, CA Wednesday, April 17 Legal Resource Panel 6:30 p.m.

Porterhouse, San Mateo

Tuesday, March 12 Central Coast Resource Panel 12:00 Noon Michael’s on Main, Soquel

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

ECHO Journal | Januar y 2013

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 Scott’s Seafood Restaurant, Oakland Michael’s on Main, Soquel Buca Di Beppo, Campbell Eugene Burger Management Co., Rohnert Park Varies

33

How to understand faulty construction

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Legislation at a Glimpse As of December 12, 2012 Bill No.

Author

Subject

Status

Position

Summary

AB 805

Torres

Davis-Stirling Revision Part 1

Signed by the Support Governor.

Chaptered.

This is the first of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 806

Torres

Davis-Stirling Revision Part 2

Signed by the Support Governor.

Chaptered.

This is the second of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 1547

Eng

Extend “Blight” Missed Fines deadline.

Dead.

Support

This bill would remove the sunset provision in a law that allows local municipalities to fine owners of foreclosed units for failing to maintain their properties.

AB 1557

Skinner

Extend “Blight” Missed Fines deadline.

Dead.

Support

This bill would extend the sunset provision to 2018 for a law that allows local municipalities to fine owners of foreclosed units for failing to maintain their properties.

AB 1720

Torres

Gated Communities

Signed by the Support Governor.

This bill requires that gated communities grant access to licensed private detectives for the purpose of service of process, provided they produce required documentation.

AB 1726

Allen

Pool Maintenance

Failed passage.

Dead.

Oppose Unless Amended

This bill would require that all public pools (including CID pools) use a “qualified pool operator” as defined by law. The operator must take state-mandated courses.

AB 1745

Torres

Short Sales

Missed deadline.

Dead.

Watch

This bill would regulate short sales.

AB 1838

Calderon

Association Records

Signed by the Support as This bill would require that a financial disclosure form be Governor.

Amended provided in at least 10-point type. It would also prohibit cancellation fees for document requests under specified circumstances.

AB 1963

Huber

Tax on Services

Missed deadline.

Dead.

AB 2273

Wieckowski

Purchaser Information

Signed by the Support Governor.

When requested by the association, this bill would require that an owner who is selling his or her unit provide information about the purchasing owner to the association within 15 business days.

SB 1244

Harman

Foreclosure Procedures

Missed deadline.

Dead.

This bill eases the notice requirements for units sold in a foreclosure sale. If a unit owner is not able to be served, the bill would, among other requirements, allow the association to post notice in a reasonable location.

ECHO Journal | Januar y 2013

Watch

Support

This bill would require the Legislative Analyst’s Office to assess potential changes to the tax code.

35

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To make 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.

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

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Reserve Fund Essentials Member Price: $18.00 Non-Member Price: $25.00

The Condo Owner’s Answer Book $15.00 Non-Member Price: $20.00

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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.

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ECHO Journal | Januar y 2013

Dispute Resolution in Homeowner Associations .

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

QUANTITY

AMOUNT

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 8.375%) TOTAL AMOUNT

Yes! Place my order for the items above.

Board Member’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) Email Address City

State

Zip

Daytime Telephone ECHO Journal | Januar y 2013

37

About

ECHO Honor Roll

ECHO Honors Volunteers

ECHO What is ECHO? Serving Homeowners to Build Strong Community Associations

ECHO Resource Panels

Regional Seminar Speakers

Accountant Panel

Central Coast

Marco Lara, CPA 650-632-4211

John Allanson Sharon Glenn Pratt, Esq. Wanden P. Treanor, Esq. Glenn H. Youngling, Esq.

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

Marin

David F. Feingold, Esq. Wanden P. Treanor, Esq. Glenn H. Youngling, Esq. Peninsula

Sandra Bonato, Esq. Omar Hindiyeh Wanden P. Treanor, Esq. South Bay

Sandra Bonato, Esq. Stephanie Hayes, Esq. Rick Coats & Sandra Long Alan Crandall Larry Russell, Esq. Wine Country

Kirk Denebeim David Hughes Roger Doncaster Mark Dunia Bill Mann Barbara Zimmerman, Esq. Bill Gillis, Esq.

Annual Seminar Speakers

Beth Grimm, Esq. Allan Henderson David Kuivanen David Levy, CPA Helen Loorya Richard Lowenthal Kerry Mazzoni Mike Muilenburg Andrea O’Toole, Esq. Ann Rankin, Esq. Larry Russell, Esq. John Schneider Brian Seifert Jim Shepherd Dean Shibler Richard Tippett Steven Weil, Esq.

Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry Bowles Oliver Burford Joelyn Carr-Fingerle, CPA Chet Fitzell, CCAM John Garvic, Esq., Chair Geri Kennedy, CCAM Wanden Treanor, Esq. 38

June 23, 2012 ECHO Annual Seminar

Dawn Anderson, AIA Jeffrey Barnett, Esq. Brad Barroso Tyler Berding, Esq. Sandra Bonato, Esq. Wendy Buller Ian Brown Jeff Draeger Tom Fier, Esq. Kevin Frederick, Esq. John Garvic, Esq. Vic Giacalone Sandra Gottlieb, Esq.

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.

Recent Contributing Authors

Benefits of ECHO Membership

September 2012

• Updates to the Association Statute Book

Tom Fier, Esq. Michael Hardy, Esq. Sharon Glenn Pratt Will Simons, RS Rosalia Burgueño Tapia

• Subscription to monthly magazine

• Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento

ECHO Membership Dues

October 2012

James H. Ernst, CPA, MS-Tax, CCAM David F. Feingold Esq. Matthew A. Haulk, Esq. Geri Kennedy Jeffrey T. Smith AIA, NCARB

Wine Country Panel

Maria Birch, CCAM, 707-584-5123

The Executive Council of Homeowners (ECHO) is a nonprofit membership corporation dedicated to assisting California homeowners associations.

ECHO provides help to homeowners associations on many fronts: finances, legal issues, insurance, maintenance and management.

Members receive help through conferences, trade shows, seminars, a monthly full-color magazine and discounted publications.

HOA Size Rate 2 to 25 units

$120

26 to 50 units

$165

51 to 100 units

$240

101 to 150 units

$315

151 to 200 units

$390

201 or more units

$495

Business/Professional

$425

November 2012

Tom Fier, Esq. Beth A. Grimm, Esq. Matt J. Malone Mike Muilenburg December 2012

Tyler P. Berding, J.D., PhD. John Ceragioli, PRA Burt Dean Beth A. Grimm, Esq. Janis Lee, CCAM, CMCA Randolph M. Paul

ECHO Journal | Januar y 2013

ECHO Journal Subscription Rates Members

$50

Non-members/Homeowners

$75

Businesses & Professionals

$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.

ECHO Marketplace

Advertiser Index

The place to find professionals for your association

JEFFREY P. WIDMAN ATTORNEY-AT-LAW

NEIGHBORHOOD ASSOCIATION MANAGEMENT, INC.

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A collection of “Condo Q&A” published in the Los Angeles Times Questions & Answers About Community Associations

By Jan Hickenbottom

Ace Property Management . . . . . . .12 American Management Services . . .23 Angius & Terry . . . . . . . . . . . . . . . . .2 Applied Reserve Analysis . . . . . . . .32 A.S.A.P. Collection Services . . . . . .17 Association Reserves . . . . . . . . . . .31 Bay Community Management . . . . .31 Berding | Weil . . . . . . . . . . . . . . . . .40 BTC Bob Tedrick Construction . . . . .34 Cityscape Property Management . . .24 Collins Management . . . . . . . . . . . .16 Community Management Services . .34 Compass Management . . . . . . . . . .19 Cool Pool Service . . . . . . . . . . . . . .16 Cornerstone Community Mgmt. . . . .28 Ekim Painting . . . . . . . . . . . . . . . . .31 Eugene Burger Management Co. . . .25 First Bank Association Bank Srvcs . .19 Flores Painting . . . . . . . . . . . . . . . .18 Focus Bank . . . . . . . . . . . . . . . . . .22 Helsing Group, The . . . . . . . . . . . . .12 M&C Association Mgmt. Services . .30 Massingham and Associates . . . . . .28 Mutual of Omaha Bank . . . . . . . . . .12 PGS . . . . . . . . . . . . . . . . . . . . . . .22 PML Management Corp. . . . . . . . . .29 Pollard Unlimited . . . . . . . . . . . . . .30 R. E. Broocker Co. . . . . . . . . . . . . .29 Rebello’s Towing Service . . . . . . . . .13 REMI Company . . . . . . . . . . . . . . . .32 Saarman Construction . . . . . . . . . .17 Statcomm . . . . . . . . . . . . . . . . . . .30

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. Order today from ECHO!

Call 408-297-3246, fax at 408-297-3517 or order online at store.echo-ca.org

ECHO Journal | Januar y 2013

39

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