Making the Right Vendor Choice

One responsibility of a board of directors is to identify, hire, and supervise vendors to perform repairs and maintenance in their community. The first step is to identify which items are to be maintained by the association and which by the unit owner. This information can be found in the governing documents and the reserve study. Some planned developments have minimal common areas and may be responsible for maintenance of only a few small areas of landscaping. Others may provide maintenance of the common buildings, including painting and re-roofing of the homes. The association might be responsible for landscaping and tree care only in the common areas or for all plants and trees in all areas. Some communities have extensive recreational facilities including pools, spas, tennis courts, and common-area restrooms.

Hiring the right vendor is essential. Some vendors will be retained to provide ongoing maintenance. Examples are the landscape contractor and the pool maintenance service provider. Periodic maintenance will require hiring a vendor for a specific contract. Examples are a painting contractor, a general contractor, and a roofing contractor. If the association is working with a professional management firm, they will likely maintain a list of approved vendors.

What is an “approved vendor”? • A vendor needs to be vetted. The vetting procedure includes verification and documentation of specific information. A W-9 with the vendor’s federal tax ID is needed for 1099 reporting if they are not incorporated.

Also needed are their license number and contact information for office hours and afterhours emergencies.

• Is the vendor licensed? This information can be found on the Contractors State License Board website: www.cslb.ca.gov. The website will show when they were licensed, what type of license(s) they have, and when it will expire. • Do they have insurance? Not all insurance is the same. Some policies have exclusions for working in a homeowners association.

Do they have any employees? If so, they are required by law to carry workers’ compensation insurance. The association must ask the vendor for a certificate of insurance (COI) to be issued by their insurance agent and provided directly to the association. Some vendors try to submit a certificate that shows evidence of insurance. This

Making the Right Vendor Choice

certificate merely lists the types of coverage and does not specifically put the insurance carrier on notice that the vendor plans to work in a homeowners association. Sometimes the vendor will provide a copy of a certificate that was prepared for another client. This is not acceptable. The association must be provided with a certificate that states their specific association’s name. The expiration dates of the policies should be noted; if the job will extend beyond the expiration date, a new certificate will be needed confirming that coverage is still active. • References need to be requested and checked. It’s a good idea to ask for references that are current (work done within the last one to two years) and older (work done three to five years ago). The references should be for work done in a homeowners association. Painting the home of a single homeowner is not the same as painting 50 homes in a multi-unit development. The contractor will need to identify a staging area and work out logistics for parking for their employees and where they will store their supplies and equipment. The contractor will need to be skilled in communicating with multiple residents, scheduling, notifications, and possible relocation of resident vehicles during the job. To a contractor, painting 50 homes can feel like having 50 bosses. In a self-managed association, who will notify the residents? Who will the residents call with questions? Some associations hire a construction manager to prepare the scope of work, put the project out to bid, and manage the project for them. It can be valuable to talk to the property manager or a member of the board of directors of that association about their experience. Was the contractor easy to work with? Did they communicate with the board throughout the job? Were there any problems? If so, how did they handle them? How they handle a problem is usually more important than what the specific issue was.

• The contract (and the payment schedule) should be reviewed by an attorney. Is there a down payment requested at the signing of the contract? If so, is the amount too high – there is a limit of 10% or $1,000, whichever is greater.

The association should make sure the vendor is always ahead of what they are asking to be paid for, so that in the event the contractor walks off the job, they will not have been paid for more work than they actually performed.

Making the Right Vendor Choice Continued from page 25 Before making the final payment, the vendor should be asked to provide an Unconditional Release of Lien. This will protect the association in the event the contractor does not pay the supplier.

Most work requires a licensed contractor. A non-licensed vendor, such as a handyman, has limitations on what type of work they can legally do in an association. They cannot do work that exceeds a value $600 for labor and material combined. Using a handyman for work that requires a licensed contractor is against California law and can put an association’s general liability coverage at risk of cancellation. Exposing an insurance carrier to risks not anticipated by the policy is just not worth it!

Hiring a board member (or a friend or relation of a board member) is not recommended, even if they are qualified, insured, and licensed to do the work. There could be potential problems with a claim of conflict of interest or unsatisfactory work. With an independent contractor these issues are much simpler to resolve.

Developing a good working relationship with a vendor is paramount. Any complaints or concerns should be communicated promptly and professionally. If necessary, have a private meeting during a closed session and candidly resolve issues. When the contractor does a good job, they should be told! When the vendor satisfactorily completes the job, they should be paid on time. If a vendor is available to work after hours or on weekends, keep them close and covet their contact information. In the end, vendors love happy clients and happy clients appreciate and respect the right contractor.

Diane Marie Rossi, CMCA, AMS, PCAM, CCAM is the founder and president of Shoreline Property Management Inc., AAMC®. Shoreline was established in 1994 and operated for 27 years before being acquired by The Manor Association, Inc. Shoreline manages condominiums, planned unit developments, professional associations, and cooperatives in Northern California.Diane has also served as a longtime member of the Echo board of directors.

CEO’s Message Continued from page 6 milestones; making significant decisions (such as the need for a special assessment); establishing the budget (for management to execute); and other important activities or decisions per the governing documents or law. In California, HOAs have been given some tasks by the legislature that normally, in the corporate world, would be managerial or administrative in nature. Notwithstanding these instances, the board should delegate authority to the manager to execute the strategic direction of the board. The board should track the progress of this work and ensure that the manager has the support and authority to do their job. It’s a balancing act: managers do, and boards direct, oversee and support.

Property Manager vs. Community Manager

Property managers and community managers are not the same thing, at least not in recent years. The distinction is that property managers manage property – that is, rentals. Community managers manage common areas in a common interest development. They report to the board of directors, which is comprised of homeowners. Property managers often work for large corporations and are accountable only to the corporation and its bottom line. Community managers are responsible to the board of directors, duly elected by homeowners, and their obligation is to build a strong community and maintain property values for all within the community as directed by the board (notice, not the homeowners). To be fair, the terms are widely misunderstood due to the history of the industry. In the beginning, property managers were predominantly used because there just weren’t enough distinguishing features to create the term “community manager.” As HOA numbers grew and specialized laws (like the Davis-Stirling Act) were needed, advocacy groups and states, like California, started to promote a distinction between the two terms. The major development that made permanent the nuanced split was the addition of Section 11502 in the California Business and Professions code, where the profession of “certified common interest development manager” was established in law, finally clarifying the distinction between a common interest development “community” manager and a rental “property” manager.

Certified vs. Non-Certified Managers

The HOA industry is largely self-regulated. Credentialing industry associations have established professional ethics and standards of practice for those who are “certified common interest development managers.” California put into law that only certain managers may call themselves “certified.” Generally, the requirement is to complete at least 30 hours of education in CID management and pass a rigorous test on coursework mandated by statute. Then, the certified manager must maintain the certification by taking continuing education classes and conducting themselves according to industrydeveloped professional ethics and standards of practice.

In California, a certified common interest development manager must be educated in more than a dozen disciplines and successfully pass a test affirming competency. For a list of the course requirements, please visit the California Legislative Information website at: https://tinyurl.com/55x8x3ae

Becoming a certified community manager is a significant undertaking, and it’s challenging. However, an HOA is not required to hire a certified manager. Many of the skills can be learned from other business management experiences in a reasonably short time and with dedication. The specialized knowledge of the industry certainly can be learned, but only with an investment in legitimate industry-specific education. Furthermore, in the complex and dynamic field of CID management, one must become a continual learner to simply stay abreast of the rapidly changing laws and practices in HOA management. If a community is complicated or has challenging issues, it might be best to engage a trained and certified professional in the field.

The practice of managing an HOA is getting more complicated and complex. The legal exposure is incredibly high and legal compliance is becoming more challenging. This Management Showcase edition of the Echo Journal is an outstanding resource for boards to learn about community management and help them manage their HOAs. At Echo, the mission is to build community through education, networking, and advocacy. With this Management Showcase edition, Echo has taken another proud step in accomplishing its mission.

WELCOME TO OUR

New Professional Service Providers

All Bay Construction Solutions was established in 2018 and is based out of Northern California. We service the Bay Area, Sacramento, and Central Valley locations, while specializing in Common Interest and Multi-Family Developments.

We offer inspections identifying property maintenance and potential life safety issues. From conception to end, we work with management and owners to provide a plan and schedule for what lies ahead.

All Bay Construction Solutions offers consultation and recommendations to owners on the best practical approach. Keeping the budget and job duration in mind, while identifying and minimizing any potential hidden issues is our goal. Keeping the community, residents, board and management informed of the schedule and any potential changes that may arise during the project is our mission.

With over 30 years of experience in the industry, we work with a team of experts and help to develop a comprehensive scope for bids. All Bay Construction Solutions is dedicated to our clients’ needs.

Christopher Davis, Owner (925) 206-2374 chris@allbayconstruction.com allbayconstruction.com C & A Painting is a family-run business. It was started by a father and son with thirty-five years and counting combined painting experience. We paint anything from HOAs to commercial to apartments and more throughout the Bay Area.

C & A Painting strives for customer satisfaction and has always operated under strong values which exceed client needs. We offer color rendering and specification and our materials and work are always first quality. We provide weekly progress reports to keep clients updated. We post our work schedule for homeowners and tenants advising them when and where we will be working. Materials comply with the Environmental Protection Agency, air pollution control and all other local, state, and federal agencies. We take extra Covid-19 precautions. Before their first day in the field, every new employee is required to take the OSHA Safety Training Course.

Our relationship with our clients begins on the first day of contact and only ends once they are fully satisfied with our work. We maintain a $5 million umbrella insurance policy to ensure you are protected. Our skills, knowledge and attention to detail goes above and beyond. Painting Done Right!

Curtis Schaper Sales & Marketing (408) 712-9674 | curtisschaperpro@gmail.com candapainting.com KDV is a nationally recognized, AV-rated® law firm offering legal counsel to insurance carriers and businesses operating across a wide variety of industries. We understand our clients’ operations and are wellpositioned to serve their diverse legal needs, from the simplest to the most complex cases. Our attorneys are leaders in their fields of practice and have achieved numerous professional awards and achievements throughout the course of their legal careers. The lawyers at KDV are regularly sought out to share their legal knowledge and insight at national business meetings and professional conferences.

Jane Grove, Esq., Managing Partner of Sonoma Office, CoChair of Real Estate Practice Group (415) 926-7640 jgrove@kdvlaw.com kdvlaw.com

Jon Takata, Restoration Management Company’s Founder and President not only believes in earning the trust of his customers, but in earning the trust of his employees. To do so, RMC is sure to keep the safety of their employees and clients at the top of the priority list. Daily life at all RMC locations includes education and physical preparedness designed to keep RMC one of

the safest restoration companies to work for in the region. Our technicians and project managers are IICRC certified in water damage restoration, fire & smoke damage restoration and asbestos abatement to ensure that our clients’ restoration projects are handled as precisely as possible. As a result, we are able to provide customers not only with unsurpassed service, but the benefits of using state-of-theart technology to deliver quality restoration, quickly. Give us a call today!

Sarah Dunia – Account Executive (925) 708-0985 sdunia@rmc.com rmc.com

Specializing in Homeowner Associations

Property Maintenance • Construction • Free Estimates Interior/Exterior Painting • Wood Rot Repair • Patios & Decks

831.277.7497

CA License #780250

QUICK & EASY RESOURCE FOR HOA BOARDS & HOMEOWNERS Check Out Our Professional Service Provider Online Directory!

Quick and easy access to more than 200 industry providers who support HOAs and Echo. Visit www.echo-ca.org and click on Professional Directory

5th Avenue Real Estate Services

1024 Iron Point Road, Suite 1062 Folsom, CA 95630 (888) 823-4304 www.5thaveinc.com

Ace Property Management, Inc.

1290 Kifer Road, Suite 309 Sunnyvale, CA 94086 (408) 217-2882 www.acepm.net

Affirmative Management Services

P.O. Box 477 Campbell, CA 95008 (408) 244-0909 www.thehoamanager.com

AllPro Association Management

5201 Great America Pkwy., Suite 320 Santa Clara, CA 95054 (877) 255-7761 www.AllProHOA.com

American Management Services, Inc.

1190 South Bascom Avenue, Suite 242 San Jose, CA 95128 (408) 225-7380 www.amspcam.com

Anderson & Company

783 Rio Del Mar Blvd., Suite 59 Aptos, CA 95003 (831) 688-1090 www.acomgt.com

Ascendant Association & Property Management, LLC

P.O. Box 15446 San Francisco, CA 94115 (415) 877-7689 www.ascendantmgmt.com

Associa Northern California

4305 Hacienda Drive, Suite 140 Pleasanton, CA 94588 (800) 843-3351 www.associaonline.com/locations/ associa-northern-california

Bay Area Property Services

1661 Tice Valley Blvd., Suite 200 Walnut Creek, CA 94595 (925) 746-0542 www.bayservice.net

Carrick & English

P.O. Box 629 Burlingame, CA 94011 (650) 401-3688 www.carrickandenglish.com

Charles Property Services, Inc.

35 Mitchell Avenue, Suite 5A San Rafael, CA 94903 (415) 458-3537 www.charlesps.com

Christison Company

7901 Stoneridge Drive, Suite 222 Pleasanton, CA 94588 (925) 371-5700 www.christisoncompany.com

CID Consortium LLC

Brenda Lynch 919 Reserve Drive Roseville, CA 95678 (888) 786-6000 blynch@cidcllc.us www.cidcllc.us

CitiScape Property Management, Inc.

3450 Third Street, Suite 1A San Francisco, CA 94124 (415) 401-2000 www.citiscapesf.com

CN Management, LLC

100 South Murphy Avenue, Suite 200 Sunnyvale, CA 94086 (888) 780-0355 www.cnmanagement.us.com

Collins Management Company

500 Alfred Nobel Drive, Suite 250 Hercules, CA 94547 (510) 262-1795 www.collins-mgmt.com

Common Development Management

1220 Diamond Way, #130 Concord, CA 94520 (925) 682-6012 www.cdmgmt.net

Common Interest Management Services

1682 Novato Blvd., Suite 204 Novato, CA 94947 (415) 321-8283 www.commoninterest.com

Community Association Management

6088 Sunol Blvd., Suite 100 Pleasanton, CA 94566 (925) 417-7100 www.hoasmanagement.com

Community Management Services

1935 Dry Creek Road, Suite 203 Campbell, CA 95008 (408) 559-1977 www.communitymanagement.com

Compass Management Group, Inc.

77 Las Colinas Lane San Jose, CA 95119 (408) 226-3300 www.gocompass.com

Condominium Financial Mgmt., Inc., CMF

1001 Galaxy Way #200 Concord, CA 94520 (925) 566-6800 www.condofinancial.com

Eugene Burger Management Corp., AMO

6600 Hunter Drive Rohnert Park, CA 94928 (707) 584-5123 www.ebmc.com

Fairmont Heritage Place (Ghirardelli Square)

900 North Point Street, Suite D100 San Francisco, CA 94109 (415) 292-1000 fairmontatghirardelli.com

Focus Real Estate & Investments, Inc.

3936 Mayette Avenue Santa Rosa, CA 95405 (707) 544-9443 www.focus-re.com

Frontier Property Management

P.O. Box 444 Newark, CA 94560 (510) 490-7314 www.frontierone.com

Grayson Community Management

1625 The Alameda, Suite 625 Santa Clara, CA 95126 (888) 277-5580 www.graysoncm.com

Hill & Co. Property Management, LLC

832 Sansome Street, 3rd Floor San Francisco, CA 94111 (415) 292-1777 hillpm.com

Homeowners Management Co., LLC

2151 Salvio Street, Suite 250 Concord, CA 94520 (925) 937-1011 www.hmcpm.com

Hudson Management Company

425 Gregory Lane, Suite 101 Pleasant Hill, CA 94523 (925) 827-2200 www.askhudson.com

Infinity Property Management, LLC

1245 S. Winchester Blvd., Suite 222 San Jose, CA 95128 (408) 248-4765 www.infinitypropertymanagement.com

KemperSports Management

PO Box 386 Bodega Bay, CA 94923 (707) 875-3519 www.kempersports.com

M. B. Homeowners’ Management

1210 S. Bascom Avenue, Suite 220 San Jose, CA 95128 (408) 871-9500 www.mbhm.net

Maynard Rich Management, Inc.

2 Townsend Street San Francisco, CA 94107 (415) 541-9911 www.mrmsf.com

Miramonte Company

1225 Alpine Road, #206 Walnut Creek, CA 94596 (925) 932-7100 www.miramonteco.com/miramonte/ outside_home.asp

Mulqueeney & Associates

P.O. Box 4726 Foster City, CA 94404 (650) 574-3835

Next Step Community Management

Tasha Parmelee, CCAM-PM, AMS 101 Cooper Street Santa Cruz, CA 95060 800-562-3885 info@nextstepcommunities.com www.nextstepcommunities.com

OMNI Community Management, LLC

9807 Fair Oaks Blvd. Fair Oaks, CA 95628 (925) 283-4900 www.omni-mgt.com

Peachtree Community Association Services

4670 Willow Road, Suite 100 Pleasanton, CA 94588 (800) 547-3224 www.peachtreecas.com

PML Management Corporation

655 Mariners Island Blvd., Suite 301 San Mateo, CA 94404 (650) 349-9113 www.pmlmanagement.com

Powerstone Property Management

6655 Clark Avenue Newark, CA 94560 (510) 513-0001 www.powerstonepm.com

Premiere Property Services

3392 Mendocino Avenue Santa Rosa, CA 95403 (707) 544-2005 premierpsinc.com

Professional Association Services

42612 Christy Street Fremont, CA 94538 (510) 683-8614 www.pas-inc.com

Professional Community Management

An Associa Company 27051 Towne Centre Drive Lake Forest, CA 92610 (949) 465-2260 www.associaonline.com/locations/ professional-community-management/ foothill-ranch

Property Pro Ltd.

14127 Capri Drive, Suite 8 Los Gatos, CA 95032 (408) 378-1730 www.propertyproltd.com

Reliable Association Management, Inc.

1757 Tribute Road, Suite H Sacramento, CA 95815 (916) 564-2115 www.reliable-association.com

Robert L. Jensen and Associates

2160 N. Fine Avenue Fresno, CA 93727 559-252-4525 www.robertljensen.com

Robertson Property Management

1550 Tiburon Blvd.,Suite 4 Tiburon, CA 94920 (415) 789-5952 robertsonmgt.com

S.L. Kindt Management, LLC

5880 Commerce Blvd., Suite 103 Rohnert Park, CA 94928 (707) 588-8698 www.slkindtmanagement.com

Shoreline Property Management, Inc.

1100 Water Street, Suite 1A Santa Cruz, CA 95062 (831) 426-8013 www.shorelinepropertymanagement.com

Silvercreek Association Management

2950 Buskirk Avenue, Suite 300 Walnut Creek, CA 94597 (925) 690-5332 www.sc-manage.com

Sordi Properties

2370 W. Cleveland Avenue, #189 Madera, CA 93637 (559) 479-9266 sordiproperties.com

Steward Property Services, Inc.

1465 N. McDowell Blvd., Suite 120 Petaluma, CA 94954 (707) 285-0600 www.stewardprop.com

The Bridgeport Company

2303 Camino Ramon, Suite 201 San Ramon, CA 94583 (925) 824-2888 www.bridgeportco.com

The Helsing Group

4000 Executive Parkway, Suite 100 San Ramon, CA 94583 (925) 355-2100 www.helsing.com

The John Stewart Co.

104 Whispering Pines Drive, Suite 200 Scotts Valley, CA 95066 (415) 345-4400 www.jsco.net

The Management Alternative

1932 W. Orangeburg Avenue Modesto, CA 95354 (888) 862-3335 www.tmamulti.com

The Management Trust

PO Box 552 Fairfield, CA 94533 (707) 345-1130 www.managementtrust.com

The Manor Association, Inc.

1800 Gateway Drive, Suite 100 San Mateo, CA 94404 (650) 637-1616 www.manorinc.com

The Masters Group

P.O. Box 20094 San Jose, CA 95160 (408) 445-4455 www.emastersgroup.com

Verdant Community Association Management

755 Baywood Drive, Suite 205 Petaluma, CA 94954 (425) 381-6866 www.verdantcam.com

Wakefield Sharp

P.O. Box 1173 Novato, CA 94948 (415) 382-1100 www.wakefieldsharp.com

Walsh Property Management

20401 Santa Maria Avenue Castro Valley, CA 94546 (510) 888-8965 www.walshpm.com

Westco Equities, Inc. Property Management

1625 E. Shaw Avenue, Suite 116 Fresno, CA 93710 (559) 228-6788 www.west-co.com

Willis Management Group, Inc.

3180 Crow Canyon Place, Suite 100 San Ramon, CA 94583 (925) 901-0225 www.willismg.com

Wyman Property Management

2010 Jefferson Street Napa, CA 94559 (707) 637-7923 www.wymanpm.com

COMING NOVEMBER 2021

Echo Journal 2022 Legal Showcase & Member Directory Feature your law firm in the premier publication for California Homeowners’ Associations and HOA Boards

Contact jprice@echo-ca.org

The Echo Legislative Tracker

For more information, visit the HOA Advocacy section at the Echo website, www.echo-ca.org/article/hoa-advocacy/

The dog days of summer are upon us and particularly in Sacramento. The 2021–2022 legislative session began slowly with a wait-and-see atmosphere. Things have heated up and bills are meeting their fate to become law or get hung up in committee. The post July 4th break signifies the homestretch for the legislative calendar. It is time that bills move or die. It is also time for tough battles and thoughts of the next political cycle as politicos start tallying scores for “The Record.” The Echo Legislative Tracker is continuing to follow bills of interest to HOA members. This is a good snapshot of a given time but there will surely be changes and amendments, unless the legislation has died by the time of this reading. For the most up-to-date information, please visit the official California legislative website at www.leginfo.legislature.ca.gov/faces/home.xhtml.

Email dzepponi@echo-ca.org if you have any questions, comments or input. We are always grateful to hear from the membership.

2021 LEGISLATION

AB-502

AUTHOR: Davies SUBJECT: Election by Acclamation STATUS: Senate. Floor process. POSITION: Support – Reasonably streamlines the election process and saves money for HOAs

SUMMARY: This bill would allow common interest developments of any size to vote by acclamation. It would delete the requirement that the association include 6,000 or more units. And it would specify that this acclamation procedure applies notwithstanding any contrary provision in the governing documents of the common interest development.

SB-391

AUTHOR: Min SUBJECT: Meetings and Teleconferencing Procedures During an Emergency

STATUS: Senate. Concurrence in Assembly amendments pending. POSITION: Support – Sensible solution as learned from the COVID-19 pandemic.

SUMMARY: This bill would establish alternative teleconferencing procedures for a board meeting or a meeting of the members if the common interest development is in an area affected by a federal, state, or local emergency.

SB-392

AUTHOR: Archuleta SUBJECT: Email Delivery of Documents STATUS: In Senate. Concurrence in Assembly amendments pending. POSITION: Support – Requirement for association to have a website if more than 50 units could be a problem for some. Adds to cost of running the association.

SUMMARY: This bill would allow associations to deliver specified documents by email unless a member opts out of email delivery. It requires members to provide their physical or email address annually, among other requirements. And it requires that associations with at least separate interest to maintain a website, with certain exceptions. It specifies that documents posted to the association website would satisfy the general delivery requirement.

SB-432

AUTHOR: Wieckowski SUBJECT: Disqualification of Candidates due to term limits in governing documents STATUS: Assembly. Ordered to third reading. POSITION: Support

SUMMARY: This bill disqualifies termed-out board members of CIDs from running for reelection and requires an individual who is appointed to count and

tabulate votes in a CID election to meet specified requirements.

AB-611

AUTHOR: Quirk-Silva SUBJECT: Confidential Addresses – Safe at Home Program exception STATUS: Assembly. Concurrence in Senate amendments pending. May be considered pursuant to Assembly Rule 77. POSITION: Watch

SUMMARY: When an association member is a participant in the Safe at Home program – an address confidentiality program that protects victims of violence, assault, stalking, trafficking, or abuse – this bill would require that the association use their designated substitute address, upon the member’s request. Additionally, it would require that the association withhold or redact information that would reveal the name and address of the Safe at Home participant in specified communications.

AB-1101

AUTHOR: Irwin SUBJECT: Funds Transfers, Mandatory HOA Insurance, Limitations on Investments STATUS: Senate. Floor process. Ordered to third reading. POSITION: Watch. AB-1101 has obvious advantages, mainly protecting less engaged communities and especially boards, and clarifying recently passed law. However, Echo continues to have concerns (especially for small associations). The legislation would mandate certain insurances which would add unnecessary or unwanted cost to the administration of the association. Furthermore, the bill would require funds to be invested only in secure and insured accounts. This aspect of the legislation could force a community to lose money if the interest rates received were less than inflation rates. This bill would remove valuable financial tools for association boards. It is better that these limitations be placed in governing documents instead of in law and that the boards be entrusted with managing the association.

On the other hand, AB-1101 would protect communities from poor management and give managing agents of CIDs the leverage to help HOA boards understand their fiduciary responsibilities. And in the unlikely situation of malfeasance or fraud, the legislation has protections and insurance in place to minimize the risk. The bill also addresses some needed technical amendments to existing law. There are several good, clarifying concepts in the bill; however, there are also some significant challenges that have driven us to a “watch” position. SUMMARY: This bill would require that certain association funds be deposited into a bank, savings association, or credit union with specific insurance. It also prohibits transfers of $10,000 or more without prior written approval from the board. And it requires that an association maintain specified coverage for itself and its managing agent or management company.

SB-9

AUTHORS: Atkins, Caballero, Rubio, and Wiener SUBJECT: Land Use: Lot-Splitting and possible requirement for duplexes STATUS: Assembly. Re-referred to Committee on Appropriation. POSITION: Oppose unless amended. This bill could have a major negative impact on communities zoned for single-family residences and those neighborhoods with CC&Rs that restrict the community to singlefamily housing only.

SUMMARY: This bill would allow lots to be split regardless of HOA governing documents, to make room for additional homes in the community. It would delegate ministerial (local government) approval for development of one or two-unit development (a duplex would be included in this definition). Furthermore, the language in the bill must be clarified to disallow duplexes if governing documents (CC&Rs) of an HOA preclude them. Clarification that the bill is not intended to affect HOAs is needed.

AB-1410

AUTHOR: Rodriguez SUBJECT: Restrictions on Rules Enforcement STATUS: Assembly. Re-referred to Housing and Community Development. (Not moving) POSITION: Oppose – This bill is far-reaching, covers many issues. Not focused enough for good policy.

SUMMARY: This bill would prohibit an association from restricting a homeowner’s right to rent or lease their separate interest, or any portion thereof. It would also extend, to the entire separate interest, a homeowner’s right to use their backyard for personal agriculture. It would further require every director and association employee to complete a course in ethics and harassment prevention. And it would prohibit any restrictions on discussions critical of the association. It would also prohibit the association from enforcement actions during certain specified conditions. And finally, it would require specific standards for evidence of rules violations and mandate that evidence be made available to the accused.

© 2021 Echo - Executive Council of Homeowners

2021 EDITION The Statute Book & Legal Directory

THE DAVIS-STIRLING ACT AND OTHER STATUTES GOVERNING CALIFORNIA COMMUNITY ASSOCIATIONS

www.echo-ca.org

Education Advocacy Connection

The 2021 Statute Book is now available in an expanded version to include the Davis-Stirling Act and other laws and case citations governing California community associations.

This comprehensive reference provides the legal framework for HOA board members, homeowners, and professionals in an easy-to-use coil-bound format.

Available to Echo HOA members for download from the online store or as a printed booklet. Order your copies today!

MANAGEMENT FIRMS & PROFESSIONAL

SERVICE PROVIDERS: A customized, co-branded cover with your logo and contact information is available for management companies and professional service providers. For more information and pricing, contact jprice@echo-ca.org.

VISIT THE ONLINE STORE www.echo-ca.org

SB-10

AUTHOR: Wiener SUBJECT: Land Use, Expedited Housing Development and Increased Density STATUS: Assembly. Ordered to third reading. POSITION: Oppose. Allows ministerial increase in housing density despite zoning for 10 units or fewer. The bill would void language in governing documents limiting development in CIDs.

SUMMARY: Authorizes a city or county to pass an ordinance that is not subject to the California Environmental Quality Act (CEQA) to upzone any parcel for up to 10 units of residential density if the parcel is located in a transit-rich area or an urban infill site.

Annual Meeting Notice November 18, 2021 9:00 - 9:15 am

• Approval of 2020 Annual Meeting Minutes • Election • Financial Review

If you are interested in applying for a seat on the board, please send your resumé to dzepponi@echo-ca.org and it will be presented to the board for review.

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• 2020 Condominium Greenbook™, the 290-page financial reference book for

Association treasurers • 2020 Community Association Financial

Survey of over 1,500 associations • A Management Fee Survey of more than 1,900 associations • ...and numerous other surveys of reserve study practices, percent funded, etc.

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As well as more than 40 years of important business contacts to help associations connect with the

BEST.

5669 Snell Avenue, #249 San Jose, CA 95123-3328

REGISTER AT WWW.ECHO-CA.ORG

REGISTER AT WWW.ECHO-CA.ORG

PRSRT STD US POSTAGE PAID PERMIT NO. 271 85719