Quorum August 2020

Washington Metropolitan Chapter Community Associations Institute

AUGUST 2020

A Magazine for Community Association Volunteer Leaders, Professional Managers and Business Partners

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ALSO IN THIS ISSUE

_______________________________ Will the Convenience of Virtual Meetings Outlast SocialDistancing Rules? _______________________________ Point of Contact for Bank Owned Properties _______________________________ Life After Foreclosure: From A Homeowner and Realtor Perspective _______________________________ Financial Impact to Associations Due to COVID-19 & Phased Re-Openings

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AUGUST 2020

­CONTENTS 12 Bankruptcy – The Basics of Chapter 7 and 13 Bankruptcies

BY ERIK W. FOX, ESQ. AND R.A. HURLEY, ESQ.

16 How to Protect an Association’s Interest When Dealing with Bankruptcy

BY JEREMY HUANG, ESQ.

18 Delinquencies – What Can be Collected & How to Manage Them Within Your Budget

BY BRYAN NEWBY, CMCA, AMS

20 Will the Convenience of Virtual Meetings Outlast Social-Distancing Rules?

BY DOUG CARROLL

22 Proper Financial Planning – Attention is in the Details

DEPARTMENTS AND MORE 5 Message from the Executive Director 6 Chapter Benefactor: TRC Engineering, Inc. 7 Welcome New Members 8 Upcoming Events 11 People & Places 36 Classifieds 37 Index to Advertisers

BY VICTORIA GARNER, CMCA, AMS, PCAM

24 Point of Contact for Bank Owned Properties

BY RUHI F. MIRZA, ESQ.

26 The Remedy of Last Resort: Legal Perspective on Condominium Assessment Lien Foreclosures

BY ALLEN WARREN, ESQ., CCAL

28 Foreclosure from a Board Member’s Perspective

BY WILLIS MCCLOUD

30 Life After Foreclosure: From A Homeowner and Realtor Perspective

BY PAT SELLERS

32 Financial Impact to Associations Due to COVID-19 & Phased Re-Openings

BY EKOKE J. TAMBE, AMS, PCAM

34 COVID-19 Insurance Exposures That May Go #Viral: Emerging Insurance Exposures Related to COVID-19

WMCCAI MISSION STATE­MENT To optimize the operations of Community Associations and foster value for our business partners.

BY JESSICA M. KNUTSEN, CIC

Reader comments and suggestions are welcome. Address your comments to: Quorum 7600 Leesburg Pike, Suite 100 West Falls Church, VA 22043

We also wel­come ar­ti­cle sub­mis­sions from our ­members. For author guide­lines, call (703) 750-3644 or e-mail publications@caidc.org.

Articles may be edited for length and clarity.

AUGUST 2020

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President Airielle Hansford, CMCA, AMS, PCAM President-elect Michael Gartner, ESQ. Vice President Ruth Katz, ESQ. Secretary Sara Ross, ESQ. Treasurer Kristen Melson, CMCA, AMS, PCAM Immediate Past President Rafael A. Martinez, CTP (EX OFFICIO) Executive Director Jaime Barnhart, CMP, CAE (EX OFFICIO)

D IRECTOR S Leslie Brown, ESQ., Doug Carroll, Hilary Lape, AMS, PCAM, Judyann Lee, ESQ., Sara Ross, ESQ., Gary Simon, CMCA, AMS, Jon Stehle

CO U N C I L C HAI R S Communications Council Jennifer Bennett, CMCA, AMS, PCAM Education Council Kevin Kernan, ESQ. Member Services Council Bernie Guthrie, CMCA, AMS, PCAM

CO MM I T TE E C HAI R S Conference & Expo Donna Aker, CMCA, AMS, PCAM and Chris Goodman D.C. Legislative/LAC Scott Burka, CMCA, AMS, PCAM, and Jane Rogers, ESQ. Education Kathryn Hutchinson, CMCA, AMS, PCAM and Todd El-Taher Golf Adrienne Zaleski and Brian Lord, CMCA, AMS, PCAM Maryland Legislative Scott Silverman, ESQ. and Aimee Winegar, CMCA, AMS, LSM, PCAM

Public Outreach Elisabeth Kirk and Kim Myles, CMCA Membership Jeffrey Stepp, CMCA, AMS, and Noni Roan, CMCA Quorum Editorial Christopher Carlson, PE, SECB and Liliana Martinez, CMCA, AMS

Chapter Events Kristen Adams and Jen Ann Santiago, CMCA, AMS, PCAM Virginia Legislative Ronda DeSplinter, LSM, PCAM and William A. Marr Jr., ESQ.

QU O RUM Managing Editor Morgan Wright, mwright@caidc.org Design Six Half Dozen

The COVID-19 pandemic has presented unprecedented challenges to all community association operations and in the lives of residents throughout the D.C. Metro Area. The Washington Metro Chapter Community Associations Institute strives to be a valuable and useful resource to our homeowner leaders, community managers, and business partners and to support them as they navigate the health crisis. We continue to look for ways to assist members and community associations with proactively preparing to move through the phases of reopening while still acknowledging the challenges to the health, safety, and welfare of residents, and planning for the mental, physical, social and financial impacts resulting from the heath crisis. Our chapter recognizes our unique position to intentionally address the socio-economic impact of this pandemic, as this event has highlighted how we are not all in the same boat and we are not all impacted equally.

FROM THE EXECUTIVE DIRECTOR

O FFICE R S

The WMCCAI Board of Directors has established the COVID-19 Task Force.

The Task Force will evaluate the types of information already being shared by the Chapter, and its members, and where opportunities exist to distribute, analyze, and leverage the evolving information being shared by governments.

Initial goals of this task force are to EDUCATE & ADVOCATE… • Connection across the chapter between committees, board of directors and staff to ensure consistent messaging and program development during the current health emergency • Gathering information from local agencies (governments, health departments, CAI, and members) and share it in a focused, simplified manner to community associations, chapter members, and strategic partners.

QU O RUM E DI TORI AL CO M M IT TE E Co-chairs Christopher Carlson, PE, SECB and Liliana Martinez, CMCA, AMS Members Michelle Baquero, CMCA, AMS, Dan Blom, ESQ., Mira Brown, CMCA, AMS, Leslie Brown, ESQ., Kristen Buck, ESQ., Doug Carroll, Deborah Carter, CMCA, AMS, PCAM, Sara Castle, Traci Castrovinci, CMCA, AMS, Frannie Crouse, Brittanie Davis, CMCA, AMS, PCAM, Katie Halfhill, CMCA, AMS, Iman Jackson, CMCA, AMS, Kevin Kelly, Richard Kuziomko, CMCA, AMS, PCAM, Crishana Loritsch, CMCA, AMS, PCAM, Liliana Martinez, CMCA, AMS, Kirby McCleary, Susan Miller, CMCA, AMS, Kara Permisohn, Tracy Plazyk, CMCA, AMS, Brandi Ruff, CMCA, AMS, PCAM, Lauri Ryder, CIC, CRM, CMCA, Janet Smith, Gunnar Thompson, Susan L. Truskey, ESQ., Olga Tseliak, ESQ., Lee Ann Weir, CMCA, AMS, Doug White, P.E., Aimee Winegar, CMCA, AMS, LSM, PCAM, Jim Wisniewski, Michael Zupan, ESQ.

The COVID 19 Task Force is already hard at work, identifying opportunities for outreach to local governments, organizations, and communities. Thank you to the COVID19 Task Force Members for their time, talent, and dedication to the chapter.

• Jon Stehle, Board of Directors, Task Force Chair • Airielle Hansford, CMCA, AMS, PCAM, Board President

Washington Metropolitan Chapter Community Associations Institute, a 501(c)(6) organization, serves the educational, business and networking needs of the community association industry in 80 cities/counties in Maryland, Virginia and the District of Columbia. Members include community association homeowner volunteer leaders, professional managers, association management companies, and other businesses and professionals who provide products and services to planned communities, cooperatives and condominiums. WMCCAI has more than 3,200 members including 300+ businesses, 1,100 professional managers from 85 management companies, and approximately 1,500 community association homeowners. WMCCAI is the largest of Community Associations Institute’s 62 chapters worldwide.

• Sara Ross, ESQ., EBP, Board Secretary

Quorum is the award-winning premiere publication of WMCCAI, dedicated to providing WMCCAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles. WMCCAI does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services and nothing published in Quorum is intended to constitute legal or other professional advice and should not be relied on as such. If legal advice or other expert assistance is required, the services of a competent professional should be sought directly by the person requiring such advice or services.

• Kandis Dwyer, EBP, Chapter Events Committee Representative

Articles appearing in Quorum may not be reprinted without first obtaining written approval from the editor of Quorum. In the event that such permission is granted, the following legend must be added to the reprint: Reprinted with permission from Quorum™ magazine. Copyright 2019 Washington Metropolitan Chapter Community Associations Institute. Quorum is a trademark of WMCCAI. Receipt of Quorum is a privilege of WMCCAI membership for which $65 in nonrefundable annual dues is allocated. The subscription price for nonmembers is $75 per year; contact publications@caidc.org or call (703) 750-3644.

• Doug Carroll, Board of Directors • Kristen Melson, CMCA, AMS, PCAM, Board Treasurer • Kim Myles, CMCA, EBP, Public Outreach Committee Representative • Brandi Ruff, CMCA, AMS, PCAM, Quorum Editorial Committee Representative • Tavarious Butts, EBP, Membership Committee Representative • Todd El-Taher, EBP, Education Committee Representative • Jaime Barnhart, CMP, CAE, Executive Director, Staff Liaison

We welcome feedback from all our chapter members – what resources, content, or connections do you need? How can the chapter help you as we navigate into the next phase of the health crisis? Email us at info@caidc.org!

JAIME BARNHART,

CMP, CAE

Jaime Barnhart, as the chapter’s executive director, is responsible for implementing the organization’s mission and goals, and managing its staff. Jaime has worked in non-profits/associations in the D.C. Metro area for over 15 years focusing on program management, events and trade shows, and marketing. She joined WMCCAI as the events manager in 2015.

To advertise in Quorum, e-mail publications@caidc.org.

For more information about Quorum or WMCCAI, visit www.caidc.org.

AUGUST 2020

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CHAPTER NEWS

C H A P T E R

B E N E F A C T O R

TRC Engineering, Inc. • Professional Engineers with over 25 years of experience in consulting, project management, and commissioning.

• Project Engineers for HVAC Systems Renovations.

• Licensed, experienced Chief Operating Engineer • Certified Building Energy Auditors • Certified Building Commissioning Agents

18310 Montgomery Village Avenue, Suite 510 Gaithersburg, MD 20879 Telephone: (301) 869-6446, (877) 397-8038 Fax: (301) 869-8376 Website: www.trc-engineering.com Year Established or Incorporated: 2006 • CAI Member Since: 2006

• Certificate of Insurance: Yes • Areas you serve: District of Columbia, Maryland & Virginia • Services Provided: Legal Representation • Licenses Held: Professional Engineer, VA, MD, DC; Certified Energy Manager TRC Engineering (Ted Ross Consulting, LLC) is a team of experienced professionals specializing in Ventilation, Mechanical, Electrical and Plumbing system analysis; trouble shooting, maintenance planning, design and retrofitting to name a few. We work with building owners, Property Managers, Associations, Cooperatives, and boards along with their facility engineers to ensure the quality of their systems for their tenants and residents. From Mechanical Engineering and Design to energy audits to piping analysis to emergency call management TRC provides expert aid for our clients. TRC serves as “Owner’s Rep” for projects such as boiler, chiller, cooling tower, piping installations or decentralized air conditioning projects. TRC will write and/ or analyze project specifications and manage the bid process.

TRC also functions as an “on-call” engineering team (Directors of Engineering for those properties without an engineering staff) or can work with an on-site engineering staff to improve their expertise on their own systems. The team members bring these credentials to the table:

In January of this year Charles Kirk, Senior Mechanical Engineer, was promoted to Managing Member. Charles Kirk has been with TRC Engineering since the beginning and we are incredibly happy to have him taking over the leadership of the company and assuming Ted’s responsibilities. Ted Ross who founded the company in 2006 will be staying with TRC to ensure a smooth transition and assist when needed.

TRC Engineering is a CAI Educated Business Partner and our employees are continually active in volunteering for the Washington Metropolitan Chapter of CAI. Ted Ross, former Principal, and founder of TRC Engineering served on the Board of Directors for six years and recently earned the Chapter’s Hall of Fame Award as well as earning many other awards from the Chapter. Elisabeth Kirk is a recipient of the Chapter’s Rising Star and co-chairs the Chapter’s Public Outreach Committee and the Watershed Committee. Since its inception, TRC Engineering has always been an active member with the chapter; participating in many committees, sponsoring several chapter events as well as contributing many articles for Quorum Magazine.

Contacts: Charles Kirk, ckirk@trc-engineering.com; Elisabeth Kirk, ekirk@trc-engineering.com; Ted Ross, tross@ trc-engineering.com

Article Submissions:

Are you interested in sharing your experiences and expertise with our readers? Quorum magazine is always seeking new article ideas, submissions, and content. If you have an idea or would like to submit an article for consideration, please make sure you contact us before you begin writing to see what our upcoming themes are. Questions and interests should be directed to Morgan Wright at publications@caidc.org or by phone at 703.750.3644.

Advertising:

For advertising, availability, rates, and specifications, please contact Morgan Wright at publications@caidc.org. Targeted advertising in WMCCAI’s Quorum, opens the door to thousands of prospective customers and contacts in the community association industry.

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WMCCAI proudly welcomes the following members who joined the chapter in June 2020.

Homeowner Leaders from the Following Associations Embassy Park Homeowners Association Haven Condominium Unit Owners Association Laurel Hill Community Association Midtown North Condominium Unit Owners Association Oak Creek Club Homeowners Association Park Place Condominium Potomac Shores Residential Association Saranac Community Association The Strand, A Condominium The Wisconsin, A Condominium

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Individual Managers Ronnette Bowlding Elisabeth Clay-Spaulding, Leisure World of Maryland Corporation Jamie Glassman, EJF Real Estate Services, Inc. Evelyn Hurlburt Natasha Molini, Parkside at Alexandria Darnell R. Robertson, Sr. Christine J. Rodriguez, Legum & Norman, Inc., AAMC Samantha J. Schatz, Legum & Norman, Inc., AAMC Tiffany M. Talbert Anne Taylor Elizabeth Wood, Associa-Community Management Corporation, AAMC

AUGUST 2020

09/03/19 1:58 AM

CHAPTER NEWS

Welcome New Members

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UPCOMING EVENTS

Please Note: All Upcoming Events are considered TBD and subject to change as we continue to closely monitor the COVID-19 pandemic. We encourage you to frequently visit our website at www.caidc.org to find the latest information, event updates, and member resources. Stay healthy and stay connected with us and your colleagues on our social channels as we navigate these next few months together!

AUGUST 4

WEBINAR: Financial Accounting & Tracking for Insurance Claims 12 – 1 p.m.

Online Webinar

Your community just received a check from the insurance carrier in the amount of $201,163 to cover property damage caused by a fire. Where do you post it? How to code invoices? What about the deductible? Hold back depreciation – what does that mean? And, how does all this look on your balance sheet? Insurance claims can be complex in many ways, not the least of which is the financial accounting for them. Need help? We hear you! Join us for a workshop style session to learn the ins and outs of correctly tracking insurance proceeds and expenses, led by Anne Sheehan, CPA, of Chapter supporter, The Goldklang Group, CPAs. Visit www.caidc.org for more details and to register online.

AUGUST 13

Virtual Happy Hour: Summer Sip & Style with Kendra Scott 4 – 5 p.m.

ZOOM Meet-up

Join WMCCAI for a Summer Sip & Style Virtual Happy Hour featuring an exclusive one-on-one styling session with Kendra Scott! You bring the bubbles, and we will bring the baubles! All attendees will enjoy a personal virtual styling experience as expert Kendra Scott stylists introduce the summer collection, show us how to best style our favorite pieces for summer, and much more! Don’t miss out on this fun, exclusive virtual shopping experience! Plus, all attendees will receive an exclusive discount to shop Kendra Scott after the event. The fun doesn’t stop there…all attendees will be entered into a raffle for a chance to win pieces of Kendra Scott summer collection jewelry! Hurry! The first 20 people to register will receive a Kendra Scott signature koozie, so don’t delay. Register online today! Visit www.caidc.org for more details and to register online.

AUGUST 20

2020 Virtual Community Association of the Year Orientation 3:30 – 5 p.m.

Online Webinar

Do you live or work in a community that you think deserves recognition? Do you want to apply for the Community Association of the Year award but aren’t sure where to start? Join us as we discuss the ins and outs of the Community Association of the Year awards. Speakers will include several current CAY judges and past CAY winners. The Community Association of the Year Award recognizes the communities that best demonstrate excellence in all facets of association operations and governance by following CAI’s Best Practices. The application focuses on the essentials of community association management and volunteer leadership. The statements are designed to determine how well your community incorporates Best Practices into its operations. Visit www.caidc.org for more details and to register online.

OCTOBER 16

2020 Golf Classic 8:30 a.m. – 6:30 p.m.

Westfields Golf Club 13940 Balmoral Greens Avenue Clifton, VA 20124

Grab your clubs and join your WMCCAI colleagues for a day of golf at Westfields Golf Club. Spend the day on this popular and challenging course, win door prizes and enjoy food and festivities. Registration includes greens and cart fee and food & beverage on the course, and more. NOTE: To ensure the health and safety of our golfers, a limited number of foursomes will be available at our 2020 event.

So, don’t wait to register! Spots will fill up fast! Additionally, non-golfing and networking activities are currently under review; further information will be posted at a later date. Visit www.caidc.org for more details and to register online.

For more information on WMCCAI meetings or upcoming events, contact the chapter office at (703) 750-3644, email info@caidc.org or visit www.caidc.org.

8 | QUORUM

Virtual Happy Hour Series

Sip& Style SUMMER

VIRT UAL HAP PY HOUR WIT H KEN DRA SCOT T

Join WMCCAI for a Summer Sip & Shop Virtual Happy Hour featuring an exclusive one-onone styling session with Kendra Scott! Virtually mix and mingle with industry colleagues during this fun-filled hour of networking. Then, enjoy a personal virtual styling experience as expert Kendra Scott stylists join us to introduce their latest summer collection, show us how to best style our favorite pieces for summer, and much more! You bring the bubbles, and we will bring the baubles! Don’t miss out on this fun, exclusive networking and virtual

Sponsors

styling experience! Plus, all attendees will receive an exclusive discount to shop Kendra Scott after the event. The fun doesn’t stop there…all attendees will be entered into a raffle for a chance to win pieces of Kendra Scott summer collection jewelry! Hurry! The first 20 people to register will receive a Kendra Scott signature koozie, so don’t delay.

Register online today! Visit www.caidc.org for more information or to register online.

Cover Charge When

Thursday, August 13, 2020 4PM — 5PM

MEMBERS

$10

|

NONMEMBERS

Where

Weblink will be emailed to registered attendees

$15

Who

This program will benefit Business Partners, Homeowners & Managers

How

Visit www.caidc.org to register

7600 Leesburg Pike, Suite 100 West

E-mail: events@caidc.org

Falls Church, VA 22043

Web: www.caidc.org

T: 703.750.3644 F: 703.941.1740

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2020 Membership Recruitment Contest Winners Announced!

The 7th Annual Membership Recruitment Contest wrapped up on June 1 and our two winners were each awarded a $500 Visa gift card. Congratulations to our two winners:

FirstService Residential and Les Mills have announced a partnership to provide free digital workout solutions to the residents in communities it manages, as well as its associates, as the COVID-19 pandemic forces community fitness centers to temporarily close.

“We’re thrilled to announce our partnership with Les Mills as part of our Lifestyle@Home program,” said Michael Mendillo president, FirstService Residential. “It has been our goal, during this pandemic, to provide our residents with exclusive access to unique virtual programming, as well as provide our associates with ways to maintain their minds and bodies during this time.”

The group fitness expert is providing access to its LES MILLS™ On Demand (LMOD) digital fitness platform.

LMOD enables users to stream, cast or download over 1,000 world-leading workouts – including BODYPUMP™, BODYCOMBAT™ and BODYFLOW® – at home or on the go. The platform features the most popular Les Mills programs presented by the world’s best instructors and supported by expertly designed training guides. The workouts are as short as 15 minutes – ideal for in-home use – and they’re scientifically structured to challenge, reward and drive results. With new workouts added every week, there’s no chance of the dreaded “exercise boredom” seeping in.

PEOPLE & PLACES

FirstService Residential and Les Mills Announce Exclusive Offer on Digital Workouts for Residents and Associates

Susan Blackburn, CMCA, AMS, PCAM, Founder and President of Community Association Management Professionals (CAMP) Candace Lewis, CMCA, AMS, Portfolio Manager and Coordinator of Professional Education and Designations for Cardinal Management Group Both of our winners have been strong advocates for CAI, highlighting the importance and value of CAI membership to potential members.

A huge thank you also goes out to DoodyCalls and Sahouri Insurance for sponsoring the Membership Recruitment Contest this year!

Our Virtual Membership Recruitment Contest Awards Ceremony was recorded and has been posted on our website and on all of our social media platforms. The next Membership Recruitment Contest will launch in early fall, so be on the lookout for additional information to arrive in your Inbox.

“Big challenges call for bold solutions, so we’re opening up LMOD to support our partners in keeping the world moving,” said Les Mills International CEO Clive Ormerod, “We all know exercise is the cornerstone of a healthy immune system, so the fitness industry has a major role to play in helping keep people fit in the face of coronavirus.”

For more information about FirstService Residential and other latest news, please visit www.fsresidential.com.

Any where. Any time.

Search for products and services online.

WMCCAI Online Service Directory

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AUGUST 2020

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By Erik W. Fox, ESQ.

By R.A. Hurley, ESQ.

Erik is a Shareholder with Rees Broome, PC. He focuses his practice on representing community associations and creditors in bankruptcy proceedings.

He is an active member of WMCCAI Conference and Expo Committee and the Northern Virginia Bankruptcy Bar.

R.A. Hurley is an associate in Rees Broome’s community association practice group where his practice focuses on advising condominium and homeowners associations on matters of compliance with their governing documents, and on collection of past due assessments. R.A. has represented both debtors and creditors in state courts and bankruptcy courts. Prior to entering private practice R.A. clerked for a chapter 13 Trustee in Las Vegas, NV.

Bankruptcy

THE BASICS OF CHAPTER 7 AND 13 BANKRUPTCIES

I

n the 2011 reporting year, as a result of the housing bubble burst, 1,571,183 bankruptcy cases were filed, the highest number since the Bankruptcy Reform Act of 2005. In the year ending March of 2020, bankruptcy filings were down to 772,646. Bankruptcies in the Washington Metro area were following this national downward trend. Various COVID-19 related stimulus packages have passed, and forbearance measures have been put in place to mitigate the financial effects of the pandemic on both the national and local levels. If these actions are not sufficient to hold back another wave of bankruptcy filings, you need to know the basics.

It is important to monitor developing legislation to see if enhanced foreclosure forbearance and debt collection moratoriums are put into law. With COVID-19, the resulting Stay-At-Home Orders, and the increase in unemployment claims, another spike in bankruptcy filings affecting community associations could be on the horizon as property owners struggle to pay their assessments. As such, it is important to understand how bankruptcy may play a role in your association.

Bankruptcy is the Federal judicial procedure that extinguishes, reduces, or delays an individual’s obligation to pay their debts.

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Unfortunately, most, if not all, community associations will find themselves involved as a creditor in the bankruptcy of an owner who has filed for bankruptcy protection.

Once an owner files for bankruptcy, the bankruptcy “Stay” goes into effect. Associations must halt their normal collection procedures on amounts owed prior to the bankruptcy filing and only collect those amounts as prescribed by the bankruptcy code.

The two most common bankruptcy case filings affecting associations are Chapter 7 (liquidation of assets) and Chapter 13 (restructuring of debt). In a Chapter 7 case, the debtor’s assets are made available to the trustee to sell and then pay the debtor’s creditors.

However, due to the costs of the sales and the debtor’s right to exempt certain property from the trustee’s sale powers, relatively few Chapter 7 cases result in the sale of the debtor’s assets or recovery by associations.

In a Chapter 13 bankruptcy, debtors develop a plan to pay some, if not all, of their cred-

itors over a three to five-year period. If the debtor’s plan meets the requirements of the bankruptcy code it will be approved by the bankruptcy court even if not all creditors are paid in full – it’s important to remember that bankruptcy is designed to give honest debtors a fresh start, not necessarily ensure all creditors are paid.

In all bankruptcy cases it is important for the association to monitor what is going on in the bankruptcy case as there are deadlines that must be met. Your attorney can file a request for service of papers to ensure they receive timely notice of filing in the bankruptcy cases. Even if an owner has no delinquent assessments when they file for bankruptcy, you must monitor filings on an ongoing basis because the bankruptcy can affect the association’s future collection efforts. Additionally, trustees may seek to disgorge large payments made to the association just prior to filing as a preferential payment.

The Stay The bankruptcy “Stay” goes into effect in Chapter 7 and 13 upon the filing of the case.

It prohibits all creditors from trying to collect amounts owed prior to the bankruptcy filing – the Pre-Petition Debt. The Stay re-

quires the halting of lawsuits, garnishments, foreclosures, or other actions to collect Pre-Petition Debt. Courts will even interpret actions such the continued suspension of privileges as a violation of the Stay.

If the bankruptcy trustee sells a debtor’s assets, the trustee will set a deadline for filing claims and advise the creditors to file a claim.

Timely filing of the claim is critical in order to receive a distribution of amounts recovered by the trustee.

In Chapter 7 bankruptcy cases, the Stay only covers the debtor who filed for bankruptcy. You may still continue collection action against anyone else who is also liable on the debt (Co-Debtor). However, in Chapter 13 bankruptcy cases the Stay extends not just to the debtor who filed the bankruptcy, but also to any other individual who owes the same debt. This is so undue influence is not placed on a debtor to obtain favorable treatment. In a Chapter 7 case you could continue to pursue a lawsuit against a co-debtor who did not file bankruptcy, but in a Chapter 13 case, the same lawsuit would have to be dismissed.

The debtor remains liable for all assessments and charges that are incurred after the debtor files for bankruptcy – the Post-Petition Debt.

In some jurisdictions, judgments and liens securing post-petition assessments (assessments coming due after the bankruptcy has been filed) may be obtained while the case continues, while in other jurisdictions court permission may be required.

The Stay generally continues until the bankruptcy case is dismissed or discharged unless relief from the Stay is granted. If an owner receives their bankruptcy discharge, the Stay is replaced with an injunction prohibiting collection from the debtor personally of amounts owed prior to the bankruptcy filing.

Chapter 7 Cases A typical Chapter 7 case lasts 120 days between filing and the discharge of the debtor. Once the debtor receives a discharge, and the discharge injunction is in place, those pre-petition amounts are uncollectible from the debtor. It is important to note that if you have liens, judgment or statutory, recorded against the property, you may still enforce those liens via foreclosure or upon sale of the property as these are actions against the property and not the owner personally. If a debtor’s bankruptcy case is dismissed without a discharge being issued, the pre-petition amounts remain collectible.

Chapter 13 Cases Chapter 13 cases last three to five years. The debtor crafts a plan to pay secured creditors and will pay unsecured creditors at least as much as they would have received in a Chapter 7 liquidation case.

It is always better to be a secured creditor. There are many pitfalls in Chapter 13 cases for the unwary creditor. Associations must file a claim by the claim deadline, as established by the court, if they wish to be paid through the bankruptcy.

You must also review the plan to ensure the association receives proper treatment. If the association is secured, but the debtor proposes to treat the association as an unsecured creditor, the association may be treated as unsecured unless the association objects. In Maryland, the bankruptcy court has even upheld provisions in bankruptcy plans to eliminate an owner’s personal obligation to pay future association assessments. It is important to review the plans and object as necessary.

You should also be aware that debtors may attempt to invalidate or “strip” liens on their property as part of their plan. A lien strip can be Continued on page 15 AUGUST 2020

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part of the plan, or an adversary proceeding depending on the type of lien. Generally, debtors may strip liens if the value of the property is less than the amounts owed on the property.

After a debtor’s plan is approved, you must continue to monitor the Post-Petition Debt. The jurisdictions treat post-petition bankruptcy obligations differently. In Virginia, once a bankruptcy plan is approved, the property loses the protection of the bankruptcy Stay, so it is deemed perfectly permissible to file a lien or take a Chapter 13 debtor to court to obtain a judgment for the Post-Petition Debt, and then go to the bankruptcy court after that suit for permission to file a garnishment. However, in Maryland and DC, the property retains the protection of the bankruptcy Stay until the bankruptcy is completed, so an association could be sanctioned for seeking a judgment prior to getting bankruptcy court permission.

In a Chapter 7 case, once the debtor receives a discharge, the discharge injunction goes in to place and you are enjoined from collecting any unpaid pre-petition amounts from the debtor personally.

However, you may still be able to enforce any unstripped liens and judgment liens against the debtor’s property. Also, in a Chapter 7 case, if a debtor’s bankruptcy case is dismissed without a discharge being issued, the pre-petition amounts remain collectible.

It should be noted that the local bankruptcy courts are currently working with debtors in active Chapter 13 cases to suspend plan payments if the debtor’s income stream has been impacted by the COVID-19 business restrictions.

Relief From the Stay In Chapter 7 and 13 cases, associations can file a suit in the bankruptcy court to obtain relief from the bankruptcy Stay. This will let the association foreclose the property if they are not adequately protected and if the property is not necessary for the debtor’s reorganization. Upon obtaining relief from the Stay, foreclosure proceeding may commence.

Relief from the Stay can also be obtained to pursue co-debtors if the Chapter 13 plan does not provide for full payment of the association’s claim and (as noted in Maryland) pursue suits for Post-Petition Debt.

Local Impacts The following table provides the statistics for bankruptcy filings in the District, Maryland, and Virginia for the three-month periods ending March 31, 2019 and March 31, 2020 (note that VA includes bankruptcies filed in the Richmond and Norfolk bankruptcy courts)1.

BANKRUPTCY FILINGS (2019/2020) Court

Total Ch 7

Total Ch 13

Total Other

Total Filings

DC

124/118

75/59

11/6

210/183

MD

2787/2690

1560/1429

21/22

4370/4141

VA

2534/2512

1902/1869

29/28

4465/4409

Bankruptcies in our region were following the national trend and decreasing in number prior to the COVID-19 Pandemic, but anecdotal evidence suggests that pattern may not hold once Payroll Protection loans dry up and CARES Act relief ends. So, what can an association do to try to protect the financial interests of the association before bankruptcy filings start to increase?

Remain vigilant in the collection process. Turn accounts over to your legal counsel for formal collection procedures so that amounts owed can be secured by liens and judgments. Whenever you receive notice of a bankruptcy filing, alert your legal counsel so they can evaluate the impact on the association and advise how best to move forward.

Management companies may also wish to register their preferred mailing address with the Bankruptcy Noticing Center2. The Bankruptcy Noticing Center will send registered users notice of bankruptcy filings to their preferred address, regardless of what address the debtor supplies in their bankruptcy petition. This will ensure that anytime your management company is properly listed in a bankruptcy proceeding, that notice will be sent to the preferred address as opposed to a lock box or some other address supplied by the debtor. This is extremely important because of the timelines that are required to be observed for creditors to protect their rights. While this may be a good practice for management companies, an association’s board may not wish to register. The registration does not let you specify your geographic area, so an association could start receiving notices intended for similarly named associations in different areas of the country.

There are many more nuances to bankruptcy proceedings making it difficult for managers, associations, and even attorneys to navigate.

It is extremely important upon discovering that an owner has filed for bankruptcy that you consult with your attorney to ensure the association is protected to the maximum extent possible.

1h ttps://www.uscourts.gov/statistics/table/f-2-three-months/bankruptcy-filings/2019/03/31, https://www.uscourts.gov/statistics/table/f-2-three-months/bankruptcy-filings/2020/03/31 2 https://bankruptcynotices.uscourts.gov/register/new_user_agreement AUGUST 2020

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By Jeremy Huang, ESQ. Jeremy is an associate with Chadwick Washington Moriarty Elmore & Bunn, P.C., .and focuses on community association law. Prior to joining CWMEB, Jeremy regularly represented debtors in consumer bankruptcies. He is licensed to practice in D.C., Maryland, and Virginia, and serves numerous condominium and homeowners associations in the tri-state area. Jeremy has been a member of WMCCAI since 2018.

How to Protect an Association’s Interest WHEN DEALING WITH BANKRUPTCY

T

he COVID-19 pandemic has had a devastating effect on our community, forcing countless businesses to close and many people to lose their jobs. While the economic impact to individual households is the most immediate concern, ancillary effects flow outwards to affect community associations. The loss of income will impact many homeowners’ ability to pay their assessments. Many of these homeowners will likely seek bankruptcy relief, and experts believe a record wave of new bankruptcy filings may be inevitable.

Bankruptcy can often be a murky topic as it is not something that the average person will ever think about; even amongst lawyers, it is often viewed as a highly esoteric area of law where only a subset of attorneys regularly practices.

As a result, there are rampant misconceptions of what occurs in bankruptcy, memorably illustrated by a scene in The Office where Michael Scott emphatically “declares” bankruptcy. To prepare for a potential bankruptcy wave, Boards and management should familiarize themselves with the bankruptcy process and a community association’s rights as a creditor under the U.S. Bankruptcy Code.

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A Primer When the average person thinks of bankruptcy, they think of Chapter 7 bankruptcy where a trustee evaluates a debtor’s assets to determine whether they can be liquidated, and the proceeds are paid to creditors. While Chapter 7s are the most common type of bankruptcies (483,988 filed in 2019), a significant number of Chapter 13 bankruptcies are also filed each year (283,413 in 2019).

In a Chapter 13 the debtor proposes a plan to repay creditors over 3 to 5 years in a monthly amount calculated using various factors (e.g., disposable income and the value of debtor’s assets). In these cases, the trustee reviews the plan to ensure that creditors are paid appropriately and that the plan meets other criteria to be approved by the Bankruptcy Court.

Though the debtor and trustee largely determine the course of the bankruptcy, there are actions community associations can take to protect their interests.

Assessment Liens The primary practice community associations should employ is something they should already be doing: regularly filing assessment liens to secure the outstanding assessments against the property. Creditors holding secured debts are treated far more favorably than those holding unsecured debts.

First, most Chapter 7 bankruptcies are classified as “no-asset” and the cases close

without distribution of any funds to creditors. In these cases, an unsecured creditor loses all right to payment for amounts owed at the time the bankruptcy is filed, but a secured creditor’s lien will generally survive the bankruptcy, allowing it to exercise certain rights after the bankruptcy is over.

Second, unsecured creditors in a Chapter 13 context receive a percentage of their claim as determined by the debtor’s financial situation; in many cases, the unsecured creditor will receive just pennies on the dollar.

However, the Bankruptcy Code generally requires that a Chapter 13 plan pay the secured creditors in full as a prerequisite to Court approval.

Finally, in a Chapter 7 where there are assets and in Chapter 13s, secured creditors have priority in getting paid. Even where a trustee finds assets to liquidate in a Chapter 7, it is unlikely the proceeds will be sufficient to pay all of the debt. Excess funds are first distributed to secured creditors before money is distributed to unsecured creditors. Meanwhile, in a Chapter 13, secured creditors receive payments through the plan much earlier than unsecured creditors; in some cases, unsecured creditors may wait years before receiving their distribution. Only one-third of Chapter 13 bankruptcies progress through completion, so in many instances unsecured creditors wait years and receive nothing for their trouble.

Accordingly, it is important that community associations ensure that assessment liens are regularly filed as they must be recorded prior to any bankruptcy filing to be effective. Although it is impossible to predict when a bankruptcy will be filed, adhering to a clear collection policy requiring timely filing of assessment liens can minimize an association’s exposure.

Bankruptcy Notices A simple but equally important concept: notices from the bankruptcy court should be directed to the proper channels (i.e., your association’s legal counsel) in a timely manner. This may seem obvious, but timeliness in preserving an association’s legal rights in the bankruptcy context is critical.

Bankruptcy law contains a myriad of deadlines: the most important is the one for filing a Proof of Claim to receive payment from a Chapter 13 or a Chapter 7 with assets. If the association misses that deadline, even by a day, it may lose its right to be paid out of the plan.1 Consider this scenario: a homeowner proposes to repay an association’s debt in full through the debtor’s bankruptcy plan, but because that association did not timely file its claim, the association receives nothing. Moral of the story? Treat any correspondence from the Bankruptcy Court like a hot potato and send it to the association’s attorney as soon as possible.

Conclusion While there is significant uncertainty about how the current pandemic will impact community associations in the near and long term, economic downturn almost always results in increased bankruptcies. By taking steps now to protect their interests by regularly filing assessment liens and making sure that legal counsel is aware of owner bankruptcies, associations can mitigate the impacts of these foreseeable issues, leaving themselves better prepared to address an uncertain future.

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1A lthough an association would retain its lien(s), it would have to wait until the bankruptcy is over before it could exercise any rights and that may be several years down the road.

AUGUST 2020

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By Bryan Newby, CMCA, AMS Bryan is the General Manager of The Representative Condominium located near Pentagon City in Arlington, VA. He joined Legum & Norman at the beginning of 2020 and is a committed member of CAI. He is currently working towards his Professional Community Association Manager (PCAM) designation and serving as a mentor to colleagues within and outside of the Community Association industry.

Deli

nque

What Can be Collected

ncie

s

& How to Manage Them Within your Budget

C

ommunity associations are organizations of people working for the common good of a neighborhood.

A self-sufficient, self-funded, machine that protects, maintains, and supports the security of an individual’s most important asset – their home. A community association must have strong and stable financial practices to fund and support the needs of the community. Not only fiscal responsibility when it comes to spending the memberships funds but also knowledge and understanding of how to collect the funds.

When members purchase into a community association, they are acquiring an obligation to meet the association’s assessment requirements. As the community is a self-funded entity, the collection of these assessments is critical to the community’s health and prosperity. Unfortunately, hardships arise, situations change, and homeowners find themselves unable to meet their obligations.

Community associations have significant legal remedies that should be part of the association’s collection policy in the event of

non-payment from a member. Managers must be aware of these options so that they can aid their Boards in their understanding, and expectation of what can be collected vs. what is deemed to be owed.

When establishing a collection policy, associations should consult with their attorney to prepare a policy that protects the association, which outlines a clear path to the collection, that follows federal and state statutes, and one that creates a strong level of expectation.

Elon Musk said, “The factory is the machine that builds the machine.” Governing documents, boards, and member volunteers are the factory, and managers must educate, guide, and facilitate the process of building sound practices.

Ensuring your board understands what can be collected and how to manage budgets when you have delinquencies will protect your association’s fiscal understanding and financial health.

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Some associations apply late charges, interest, attorney fees, and or fines to delinquent accounts, however, the authority to assess these charges as part of the member’s obligation comes from the Association’s governing documents and state statutes. Depending on regulations these charges may be more of a deterrent vs. a collectible fee under a judgment. This is why it is critical to engage your attorney when developing or updating your collection policy. Making this policy detailed but pointed will create a clear path and understanding for the association.

The COVID-19 pandemic put a lot of association’s collection policies to the test, and as we head toward the end of the year, most are preparing their budgets for 2021, and budgeting for delinquencies will be even more critical moving forward. An analytical approach should be applied during this process. Managers and boards should review the impact of delinquencies for at least the last three years to understand the historical data and how the Pandemic may have spiked these numbers and by how much. Using this data will allow for a more accurate bad debt line item which will aid in the associations cash flow analysis throughout the year. Additionally, it will create a scale for which to measure your delinquencies throughout the year. Budgets are drafted at the beginning of the fiscal year but become part of a living document that is the monthly financial statements and the more accurate and thorough the budget, the better the association’s financial health.

The goal should always be to minimize delinquencies by catching them early, establishing a plan and preparing for them in advance.

Sound financial practices create a strong foundation for the association. Keep your board educated on best practices and guide them using the resources you have at your disposal. Lean on your legal counsel, auditors, and management companies for guidance and support as teamwork makes the dream work!

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07/02/20 6:02 PM

By Doug Carroll Doug Carroll is a board member of the Windsor Park Home Owners Association, a townhouse community near Alexandria, VA. He is also on the board of the Washington Metropolitan Chapter of Community Associations Institute.

Will the Convenience of

Virtual Meetings...

F

rom never to novelty to new normal, the acceptance of virtual meetings could be the pandemic’s most popular legacy for many community associations and managers. Since March, hundreds of associations in the DMV have tried out video-conferencing apps to conduct monthly board meetings in public while adhering to social-distancing measures essential to fighting the coronavirus’ spread.

“Most feedback has been positive,” said Staci Gelfound, Vice President at FirstService Residential. In the first three months after Covid-19 restrictions took effect, about 90% of the company’s 400 client associations held at least one virtual meeting using Zoom or WebEx. Virtual meetings seemed more ef-

ficient, more business-like and shorter than in-person meetings that were standard practice before the virus, Gelfound said. Resident attendance has often increased too, managers report.

My HOA, Windsor Park in southern Fairfax County, Virginia, had eight residents on its Zoom meeting in June. No more than one or two residents typically attend our regular monthly meetings at an elementary school nearby. “ZOOM meetings make it easier for more people to attend.

It is the way many companies have decided to hold their annual meetings and other events. It is easier for me to ‘attend’ online meetings,” said Alex Van Veen, a Windsor Park resident.

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Maryland, the District of Columbia, and Virginia currently allow community associations to hold virtual meetings as long as certain conditions are met, such as giving members adequate notice, an opportunity to participate, and keeping minutes. Virginia, which relaxed restrictions in April, allows association boards to meet virtually without physically assembling while Virginia is under a governor-declared state of emergency.

Associations should not leap into the virtual-meeting arena without knowing the legal requirements for meetings in their governing documents and in state laws, attorneys said. For instance, rules for holding virtual board meetings and virtual annual meetings can be different.

Any association considering a virtual annual meeting this year should allow plenty of

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In fact, residents, board members and managers alike all enjoy the time they have reclaimed by not having to travel to and from association meetings in the evening hours.

Some associations are even trying virtual late-afternoon meetings – an impossibility before due to work schedules and commuting time, said Aaron Mindel, principal of Mindel Management.

5/7/20 11:40 PM

...Outlast Social-Distancing Rules? planning time to ensure compliance with laws for secret balloting, electronic voting and accepting nominations from the floor.

“These are great tools. We just need to harness them properly,” said MercerTrigiani attorney Lucia Anna (Pia) Trigiani at WMCCAI’s webinar devoted to virtual meetings in May. Recordings of WMCCAI’s “Managing Through Covid-19” webinars are posted on the chapter’s website under the Education Tab. Simply click on “Upcoming Virtual Events” and scroll to the bottom where the Archived sessions are located.

Confidence with technology grows with experience. Many associations’ management companies are using Zoom for video-conferencing association meetings. Candace Lewis, a portfolio manager plus the coordinator of professional education and certification at Cardinal Management Group, explained why in an interview before this article went to press in June. “Zoom is the only platform to date that provides controls to mute and unmute people, as well as enabling a waiting room to use for executive session.” The mute button prevents attendees from talking over one another and residents from interrupting boards during the business portion of their meetings. The “waiting room” feature allows a virtual meeting host to shut off audio and video to selected attendees without disconnecting them, essential to prevent non-board members from listening to a board’s discussions of sensitive matters during executive sessions. When the board comes out of executive session, participants are allowed to see and hear the meeting again.

After a challenging virtual meeting experience in March, Lewis recommends Zoom meeting hosts turn off the group chat feature, which allows attendees to send public texts to other meeting participants while a meeting is in progress. “The chat ended up like a Facebook discussion board…a hot mess of negativity,” Lewis said.

Her opinion is not shared by everyone, however. WMCCAI’s tip sheet for virtual meetings calls the chat feature “a great tool” to encourage virtual interaction, permitting guests to comment on discussions and interact with the board and other attendees.

Virtual Meeting Tips: 5 Board members should log in at least 10 to 15 minutes prior to the meeting so everyone is ready.

5 Do a test run to ensure all members have their video turned on so they can be seen during the meeting.

5 Board president should communicate the meeting’s ground rules – such as use of muting and raise hand functions – at the start of the meeting.

5 Let participants know if you are recording the call.

5 Have a plan for the owner comment period. Residents could be invited to submit written comments in advance, which are read by the host and responded to by board president or management.

5 Use the share screen feature to make meeting materials viewable to all so that everyone can follow along.

Tips provided by Candace Lewis (Cardinal Management Group) and Staci Gelfound (First Service Residential)

AUGUST 2020

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By Victoria Garner, CMCA, AMS, PCAM Victoria is the Executive Vice President at Cardinal Management Group, Inc., in Woodbridge, Virginia. She is a Northern Virginia native and has worked in community associations for fifteen years. She is proudly nearing her 13th anniversary with Cardinal Management Group.

Proper Financial Planning Attention is in the Details

C

ommunity association income is often limited to the collection of owner assessments. Community leaders struggle annually with the idea of increasing assessments and how much is too much, but of course also having obligations to provide services and maintain common el-

ements. There is a vision of enhanced curb appeal and property maintenance, but this also comes with a cost. Unexpected expenses come up from time to time and without proper saving, a community can be left in financial shambles. Large scale replacement projects such as pavement, concrete and

roofs can easily cost tens of thousands or more depending on the community’s size; not an easy chunk of change to just come up with in one year’s operating budget. So, how do you balance it all?

First, let’s talk about managing expectations.

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Even in our personal lives, we find ourselves struggling to balance our wants versus our needs. Start with a realistic budget and proper saving to make those wants become a reality.

• Proper budgeting is essential. A well thought out budget takes into consideration a minimum of a 3 to 5-year actual expenditure history, year-to-date expenses, and projected year end. Start with expenses and work your way up to income. Never assessment target and always have a properly balanced budget.

• A good budget considers the reserve funding requirements. Include the recommended funding to incorporate any shortfalls and variance of projected earned interest. A proper analysis of your reserve study is key. Did you complete projects sooner than planned?

Do you have projects that you postponed due to cash shortages?

Multiple factors need to be considered when developing the community’s reserve contribution for the budget year.

• Be transparent - provide a detailed narrative to the budget that includes details of what is included in each GL account and how those figures were developed. That information will be crucial to next year’s budget cycle!

Second, prioritize, prioritize, oh no…wait, let’s go back to that reserve study I mentioned above.

The single most important piece to developing your budget and setting your association up for strong financial health is properly funding your reserves.

And that starts with a thorough, professionally completed reserve study by a designated reserve specialist. Be sure your reserve company is fully aware of all of the association’s components, when

they were last replaced, at what cost, and any upcoming or approved projects the Board has in store. Sharing engineering reports, proposals, contracts, or special requests of the Board can go a long way to having accurate estimations and funding plans. When speaking with the Reserve Specialist®, consider additional expenses related to projects like engineering, construction oversight, permits, inspections and other associated extras that can quickly add up and throw off your reserves. My favorite tip: do not include anticipated earned interest in your funding plan - just look at interest rates today and I need not say more!

Back to that prioritizing - Develop a multi-year plan for tackling some of those outstanding projects or desired improvements. A 3 to 5-year vision plan can help the current and future Boards implement strategies that not only help those wants become a reality, but provide the membership with a time frame of when they can expect to see a change. Everyone wants to feel like they are getting something for their money - so start small and work your way up!

Last, manage those service agreements and don’t be afraid to negotiate to get the best deal possible. But remember, you get what you pay for and the lowest bidder is not always the best. A detailed scope of work should be developed, and a Request for Proposal issued to a minimum of 3-5 bidders for annual service contracts or large ticket projects. With the proper bidding and contractor vetting practices, a good service provider can be located at reasonable rates.

Consider multi-year agreements that may help you anticipate the association’s future financial needs and lock you into a reasonably fair rate. And remember, if you have an excellent service provider, but are worried about costs, be candid with them and try to negotiate a reduced rate, before simply dumping and running. There is value in long-term relationships and providers that know your expectations.

AUGUST 2020

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By Ruhi F. Mirza, ESQ. Ruhi works with Rees Broome’s Community Associations Group, whose aim is to assist community associations in providing services and amenities that preserve the nature and character of the community, protect property values, and meet the expectations of the owners. Since joining the firm, she has worked on a number of collections issues and assisting with other general legal issues.

Before joining Rees Broome, Ruhi worked with client representatives’ large lending institutions to develop sound litigation strategies for foreclosures, lien disputes, complex title issues and bankruptcy proceedings.

Point of Contact for Bank Owned P

rior to transitioning to a Community association’s attorney, my previous life was representing lenders, servicers, and banking institutions in foreclosure proceedings. I suppose that makes me somewhat of an expert when the question that

needs to be answered is…Who does an association contact after a property is foreclosed upon and purchased by the lender?

When a homeowner purchases a property, he takes out a loan and executes a promis-

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sory note agreeing to pay back the lender for the money he borrowed. In exchange for lending the money to the homeowner, the lender requires that the homeowner also execute a deed of trust which secures the property to act as collateral for the promissory note. In the event the homeowner defaults on the promissory note, the lender’s recourse is to take back the property through a foreclosure sale.

Though the foreclosure process in Virginia, Maryland, and D.C. is vastly different, the one similarity among all three jurisdictions is that they utilize the services of a trustee. In most circumstances, the trustee will be a law firm, associated company of a law firm, or individuals.

In very few circumstances, the lender will ask the trustee on the deed of trust to begin foreclosure proceedings. The usual circumstance is that the lender appoints a new trustee to begin foreclosure proceedings by executing a document known as a Deed of Appointment of Substitution of Trustee (“SOT”). The SOT is recorded

Properties in the land records of the county where the property is located. Once the SOT is recorded, the trustee will commence foreclosure proceedings against the property by scheduling the sale, sending the required notices, and advertising the property for sale.

Typically, if a property is scheduled to go to foreclosure, it is also likely that the homeowner is not paying the assessments to the association. If that is the case, the association should refer the account to legal counsel to secure the outstanding debt with a lien. If referred to legal counsel in advance, there may also be enough time to secure a judgment against the homeowner for the past due assessments prior to the foreclosure sale. Once a lien or judgment is recorded against the title of the property, the trustee will be required to send a notice of foreclosure sale to the association. From that point, the association will have a point of contact to discuss issues concerning the foreclosure, unpaid assessments, and violations associated with the property.

Once the property forecloses, the trustee will record a trustee’s deed in land records which will transfer ownership of the property to the new owner. If the account is open with the association’s legal counsel, a change of ownership letter will often be prepared and sent to the association detailing the new owner’s contact information and the balance of what is owed by the former owner. In the event the property is purchased by the lender, the property will be transferred to the lender’s Real Estate Owned (“REO”) department where it will be assigned an agent to conduct an eviction (if necessary) and market the property to sell to another purchaser.

Please be aware that after the sale, the trustee can still be a point of contact between the lender and the association. As such, the association should send all notices relating to the property to the address contained within the trustee’s deed and/or change of ownership letter to the lender, but also send a copy of all notices to the trustee to ensure any issues are addressed by the lender.

The goal of the lender is to remove the property from its REO inventory as soon as possible. That being said, the lender typically does not pay the assessments that are owed until it is selling the property to the new owner. Additionally, when it comes to covenant violations, depending on the violation, the lender may make the repair prior to selling the property to the new owner. However, if the lender does not correct the violation, the association must disclose the violation in the resale package so the new owner is on notice of the violation.

AUGUST 2020

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By Allen Warren, Esq., CCAL Allen Warren is an attorney and shareholder at Chadwick, Washington, Moriarty, Elmore & Bunn, P.C., and he practices community association law in the firm’s Fairfax, VA. office on behalf of clients in Virginia and DC. In 2017, Allen was selected for membership in the College of Community Association Lawyers (CCAL). In addition, Allen served two three-year terms on the WMCCAI Board of Directors and served as its president in 2011. He has been a member of the WMCCAI Va. Legislative Committee since 2004.

The Remedy of

LEGAL PERSPECTIVE ON CONDOMINIU

A

ssociations require a predictable, constant stream of assessment income to fund their operation, required services and the upkeep of common facilities. The impact of delinquencies can be significant for both condominiums and homeowners’ associations. However, unlike in most homeowners’ associations, owners and residents of condominium units rely on their associations to have funds to maintain the very buildings that house their units and to keep their electricity, water and other utilities running (maintaining pipes and equipment and paying utility service providers).

As delinquency rates rise, the association’s board of directors may wonder what else can be done to address delinquencies.

Beyond typical collection efforts (such as suing for a monetary judgment and attaching the debtor’s wages or other personal property), an association-initiated foreclosure against the debtor’s unit may be a viable option.1 Typically, though, foreclosure is considered the “remedy of last resort” – due to the expense involved and the severe impact on the delinquent owner.

Many boards are also trying to balance the association’s financial needs with a desire to

provide some forbearance to owners who have suffered significant income loss due to the COVID-19 pandemic. Also note that in DC, the “Coronavirus Support Emergency Amendment Act of 2020” went into effect on May 27th, temporarily preventing certain foreclosures against residential units during the declared health emergency and 60 days thereafter.

When a board is ready to consider proceeding with foreclosure, it is important to conduct an initial analysis as to whether the particular unit at issue is a suitable candidate.

Below are several important considerations: Is there an enforceable lien? For Virginia condominiums, an assessment lien must (i) contain the information required by Section 55.1-1966(C) of the Va. Condominium Act, (ii) be signed by the association’s president or other officer authorized by the declaration

or bylaws to sign liens, and (iii) be recorded in the local land records within 90 days after the assessment’s due date. Within 36 months after recordation, the association can initiate foreclosure on the lien. For DC condominiums, there is no statutory requirement to record an assessment lien; instead, foreclosure can be instituted within three years from the date the assessment became due (per Section 42-1903.13(e) of the DC Condominium Act). Associations must also be careful to comply with any pre-foreclosure notices that may be required by statute or by the association’s governing documents.

Is there marketable title and sufficient equity? A title report on the debtor’s unit should be reviewed for any title issues that can interfere with foreclosure. Also, consider whether there are other liens that take priority over the assessment liens and whether those prior liens will be paid from sale proceeds before the association can receive payment. Look at whether there appears to be sufficient equity to attract potential purchasers, keeping in mind that units typically sell at foreclosure for below full market value. Importantly, condominium assessment liens in DC enjoy a six-

1 Both condominium associations and homeowners’ associations typically have the right to enforce their unpaid assessment liens through foreclosure, dependent upon the association’s recorded covenants and applicable law. This article focuses on foreclosure by Va. and DC condominiums.

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Last Resort:

UM ASSESSMENT LIEN FORECLOSURES month priority over the unit’s first deed of trust (mortgage), so foreclosing on that priority lien can wipe out the first deed of trust even when the sale proceeds are insufficient to pay the mortgage debt – as a practical matter, this means that mortgage lenders in DC will often pay the most recent six months of delinquent assessments to avoid that scenario.

How does the cost of foreclosure compare to the debt at issue?

There is always a risk that the foreclosure process will not be successful in actually selling the unit (or doing so timely or at the desired price), potentially leaving the association out-of-pocket several thousands of dollars in foreclosure expenses (including legal fees, fees for a commissioner, trustee or auctioneer, and advertising costs, if applicable). In addition, the restrictions that are placed on debt collectors by consumer protection laws may help determine which type of foreclosure that legal counsel will pursue – a judicial foreclosure lawsuit or a nonjudicial foreclosure auction – the former usually involves higher foreclosure expenses. Also, it is possible that, when faced with foreclosure, the debtor will file for bankruptcy – at a minimum, this will normally significantly delay the foreclosure process and may allow the debtor’s mortgage lender an opportunity to foreclose on the unit before the association.

These are some of the reasons why boards often consider foreclosure a remedy of last resort for units with large account balances and after less drastic collection actions prove unsuccessful. An association-initiated foreclosure can be an expensive and involved process, but in the right circumstances and at the right time, it can also be an effective collections tool.

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By Willis McCloud Will is a homeowner in Woodbridge, VA. He is a board member of the Somerset at Westridge Homeowners Association, a community of 220 town homes located 20 miles south of Washington, D.C. He was a member of the U.S. Army for 26 years and is currently employed as an IT systems consultant for a McLean, VA based consulting firm. He is a business management professional with certifications in change management, agile project development, and business process reengineering.

Foreclosure from a Board Member’s Perspective

I

f you are a typical board member you’ve probably struggled with delinquencies.

There are few subjects that can generate as much contention among board members,

and possibly your members, as this one. I’m sure you have tried many familiar methods to encourage homeowners to meet their financial obligations. You’ve mailed countless

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late payment notices, assessed thousands of dollars in monetary charges and executed a mountain of liens to name a few. However, there is one process that many communities may be unaware of or are reluctant to use, foreclosure.

Many boards may be reluctant to start a process that may end with someone losing their home, uprooting their family, and possibly creating additional financial hardship for the homeowner, and our board was no exception. Our decision to finally take this step was made even more challenging because our association had never done this, to our knowledge, in its 30-year history. Over the past three decades our boards have been extremely patient with homeowners and tried to work with them whenever possible. This is normally a good practice as it allows homeowners who may be facing temporary financial challenges to catch up and bring their accounts up to date. Unfortunately, others took advantage of this approach by making sporadic payments, but never quite catching up. Eventually, some homeowners accumulated debts in excess of $15,000 with one account balance totaling over $60,000. Interestingly, over 50% of our outstanding delinquent assessments were attributable to less than 10 of the 220

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homeowners in our community. Although our finances were otherwise in good condition, this situation complicated our ability to retain FHA approval and reflected negatively on our annual audit report. Clearly something had to be done.

board took pleasure in making. However, we knew it was the right one for our association. Allowing homeowners to accumulate a significant amount of debt is not a good practice for them or the association.

In deciding whether to move forward with the foreclosure, the high delinquency level, and the impact on the association’s ability to maintain FHA approval were the most important factors.

Our community has been FHA approved since the inception of the program in 2013. However, we had to write off some debt to lower our delinquency rate to no more than 15% in order to maintain our FHA approval. Although writing off the debt did not prevent us from continuing our collection efforts, it was concerning none the less.

Ultimately, both foreclosure sales were approved by the court and the properties were sold. In one case, the association recouped a significant amount of the monies owed when the home was sold because there was equity in the home. However, the other home had negative equity because the owner had done little to maintain the property. This homeowner was, not surprisingly, the one who had a debt in excess of $60,000 that I previously mentioned. Even though we knew we had little chance of collecting anything from the sale of this home we knew we had to act to “stop the bleeding�.

Finally, after many board meetings, discussions, and airing of opinions we made the difficult decision to move forward with foreclosure for two accounts. As of the third quarter of 2019, Virginia had one of the shortest foreclosure times in the nation.

However, it still took an average of 8 months to complete these foreclosures, with the longest taking well over a year. A quick fix, in most cases, this was not.

To be sure, this was a difficult decision that no one on the

Having gone through this process the board is confident it made the right decision and is now more proactive in addressing delinquent accounts to ensure they do not become excessive. Completing this course ensured we fulfilled our duties as board members and enabled the homeowners involved, although reluctantly, to get this process behind them and move on with their lives. I believe both they, and our board, are wiser and better prepared for the future for having taken this step.

AUGUST 2020

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By Pat Sellers Pat is an Associate Broker of Baugh & Willson at Long and Foster Realtors since 2005. Pat has a BS in Business Administration from Columbia Union College, graduated from the American Institute of Banking, and is Certified in Senior Housing and Short Sales. She is Vice Chairman of the Covenants Committee in the community of River Creek.

Life After Foreclosure:

from A Homeowner

Homeowner Perspective

Helen purchased a cute townhouse in the local area in 2006 for $497,000. She had a first and second mortgage on the property, which seemed workable at the time. A

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few years later, Helen married Larry. They were happy in their home and believed they would stay there forever. However, Lar-

ry was laid off from his job, and they had trouble keeping up with two mortgage payments. Larry worked some part-time jobs, but it was not enough to make the budget work. They talked with their two banks to

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and Realtor

Perspective

see if they would arrange tor a payment plan until Helen and Larry were able to get back on their feet. Neither bank would assist. To make matters worse, the bank was able to increase the second trust payment in accordance with the agreed-to terms in the original loan paperwork. They would not work with the homeowners to either reduce their payment or forego the second trust increase until the homeowners were in better financial condition.

The homeowners decided they would have to sell their townhouse “short” (for less than it was worth). Their agent listed the house and found a prospective buyer who was willing to pay cash at a reasonable sales price, but the bank would not accept the offer. The bank ended up foreclosing on the property for the same price the homeowners were offered. It turns out that it is more lucrative for the bank to sell the mortgage as a foreclosure, which allows the bank to receive the insurance policy proceeds for the foreclosed townhouse and the amount of money the prospective buyer pays for the property. The banks gave the homeowners two weeks’ notice to move.

The timing was especially tough for Larry and Helen because by that time, they had a new baby and Christmas was only two weeks away.

They moved all their furniture into storage and stayed with Helen’s parents. The good news is that Larry was able to find a higher paying job after the holidays. They stayed with their parents for a year, saved money, and purchased a short sale in Larry’s name.

Realtor Perspective

As a realtor, I saw many sad transactions during the recession of 2008. Homeowners were angry that the banks would not work with them during that time. Some homeowners damaged their property as a payback to the bank, but most homeowners left their houses in good condition. Today, there are few foreclosures on the market because most people are employed and make their mortgage payments on time. If a homeowner is in financial trouble, the bank will foreclose on the house. They offer the owners $1,000–$1,5000 (“cash for keys”), so there is an incentive for the homeowners to move quickly.

The bank will have their appraiser price the house and put the house on the market.

Some foreclosures go to the steps of the local courthouse, and investors purchase the home before it goes on the real estate market.

Most foreclosed properties are put on the Multiple Listing Service (MLS) and sell quickly if the house is in good condition. Other foreclosed homes sit on the market until the price is reduced low enough to attract a prospective buyer. Given we are currently in a Covid-19 market, foreclosures may start to increase again. Hopefully, homeowners will be able to stay on top of their mortgages given the banks have said they will work with their customers until they are employed again. The banks may have learned a tough lesson from the Recession of 2008—take care of your customers in tough times, and they will be customers for life!

AUGUST 2020

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By Ekoke J. Tambe, AMS, PCAM Ekoke commenced her carrier in the community association industry in May of 1991, managing condos and converting tenant associations into Coops in the District of Columbia. Her involvement with the Washington Metro Chapter of CAI is long and storied having served as Chair of the then PR Media Committee, under whose chairmanship was birth WMCCAI’s partnership with the Ronald McDonald House. A recipient of the Rising Star Award, Ekoke has served in various Committees, educational panels, and volunteered at functions, all to promote professionalism and best practices standards of the Community Association industry. Her continued involvement and dedication to our industry is demonstrated by current service on three WMCCAI Committees, and one sub-Committee. A rabid Penn State fan, she is employed as the General Manager of a 302-unit luxury condo in Southwest DC.

Financial Impact to Associations due to COVID-19 & Phased Re-Openings

C

OVID-19 was the little virus that was; and then, like a slow burning fire, it blew up, and with it, everything in its path! Little wonder that some associations succumbed to its flames in varied ways, hard-pressed to fashion viable solutions to the financial and administrative agony unleashed by obligatory medical guidelines implemented to combat its spread.

Except that the rules of engagement of the phased reopening conflict with these mundane activities, which have been SO upended in the era of COVID-19, straining association purses and pockets.

Furloughed owners, some earning half preCOVID salaries are returning to work, with

The necessity for these guidelines is not in debate. However, they clash with the very DNA of the animal that is community associations. As jurisdictions phase reopening, we must contend and remain vigilant that we are not out of the woods.

But it is summer for goodness sake! Residents want to soak toesies in pools; gather in community rooms; exercise in gyms when temps in the DMV soar to withering levels; use community business centers for fledging entrepreneurial ventures; allow Ingrid, the dog sitter who sometimes doubles for housekeeper, access to units; undertake procrastinated renovations of kitchens and bathrooms, etc. You get the picture: mundane activities associated with normal community living.

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laden financial obligations, and still unable to reduce incurred delinquencies.

Communities are no longer able to open pools with one lifeguard. “Why,” you ask?

Because personnel are needed for contact tracing, disinfecting pool furniture after every use, ensuring resident safety when in the

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pool, maintaining chemical levels at balanced Ph, keeping strainers free and clear of debris, and general cleaning of restrooms.

Boards have resorted to purchasing masks for the “free-thinkers” in their communities, their guests, and assigns, as they enact rules mandating all to be masked in common elements.

Janitorial companies are besieged with requests for additional staffing for common element cleanings; either to meet augmented contractual cleaning protocols or to supplement in-house association personnel in order that association staff can meet their community’s own augmented housekeeping protocols.

Hand sanitizers are the rage, but do they meet EPA approved standards? Community managers and their maintenance staff have morphed into wannabe chemists as they attempt to decipher which sanitizers are approved without incurring the cost of an actual chemist analysis!

Impractical social distancing in small managerial site office spaces forced work-from-home scenarios at association cost, to install remote connections to employee residences in order that work would continue unobstructed.

J O B

All this financial outlay, arguably, not budgeted for FY2020.

As fiduciaries, board members find themselves in a position, more than ever before, to really consider the financial health of their associations, and ascribe to the theory that the budgets drive operations.

The realization that insurance companies are wont to deny claims related to COVID has highlighted the obligation to lookout for the betterment of the whole.

Associations have weathered the financial impact generated by the phased reopening in varied ways, from dipping into replacement reserves to leveraging capital. Other boards have limited the scope of reopening commensurate with their financial health, and yet some, have provided relief from fees and interests, on a need basis.

Whatever the decision, budgetary contingencies of ten percent of total revenue are perhaps no longer going to be regarded as “slush funds” in the next budget cycle, FY2021. The silver lining is that we had a mild winter, and hopefully, we are better prepared for FY2021 with a modicum of comprehension of what to expect.

P O S T I N G

Project Manager of Capital Improvements – Residential Greenbelt Homes, Inc. (GHI), is a not-for-profit housing cooperative of 1,600 homes in the “Old Greenbelt” neighborhood of Greenbelt, Maryland. GHI is one of the oldest and largest housing cooperatives in the United States. We are seeking a Project Manager to join our team.

To view a full job description and requirements, please visit www.caidc.org/job-bank.

Visit our website at www.ghi.coop to learn more about us.

Company: Greenbelt Homes, Inc. Location: Washington, DC Job Type: Full Time Industry: Cooperative Job Level: Entry Level Salary Range: $65,000 – $80,000 Posted: June 16, 2020 TO APPLY: Please visit www.ghi.bamboohr.com/jobs/view.php?id=8 for specifics on how to apply.

AUGUST 2020

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By Jessica M. Knutsen, CIC Jessica has been practicing insurance for 14 years. She has developed expertise designing insurance programs and developing Risk Management Plans exclusively for condominiums, cooperatives and large HOA’s. She is a Vice President at the USI Community Association Insurance Practice. Jessica holds the Certified Insurance Counselor (CIC) professional designation and is a CAI Educated Business Partner. She was elected as one of the 12 members to lead national Community Association Institute (CAI) as 2020 – 2022 CAI’s Business Partner Council in an At-Large position (Insurance Broker). This position allows her to provide input on policy matters to the CAI Board of Trustees. She actively participates in the Education, Legislation and Membership committees of the Washington Metropolitan Chapter (WMCCAI).

COVID-19 Insurance Exposures THAT MAY GO

#viral

EMERGING INSURANCE EXPOSURES RELATED TO COVID-19

I

n addition to forcing residents to adopt an isolated lifestyle, COVID-19 has brought new liability exposures for common-interest communities. It is early to determine how exactly the insurance industry will be shaped as a result of thousands of denied insurance claims and infected essential workers. Some states such as New Jersey and New York have eagerly proposed new legislation to force insurance carriers to modify their coverage so that COVID-19-related losses can be paid even though they were originally excluded. If this effort is successful, the insurance industry could promptly collapse. Normally, carriers use sophisticated models to assess the potential for losses due to natural disasters and to determine adequate rates so there are enough funds to pay for claims.

framework used for the Terrorism Risk Insurance Act of 2002 (TRIA), and it has been formally introduced to congress as the Pandemic Risk Insurance Act of 2020 (PRIA). The rating process has not been disclosed yet but it is somewhat concerning, particularly because the industry has already reported an overall 9.3% rate increase for Q1 of 2020 (pre-COVID-19). According to Steven Weisbart, chief economist for the Insurance Information Institute, “The insurance industry doesn’t have as much money available for new claims as people would tend to think. The U.S. industry has about $750 billion to $800 billion in gross surplus, compared with the $400 billion required by regulators. The industry spent $622 billion last year.” Needless to say, this indicates that

Unlike the insurability of some natural disasters, the loss potential from a pandemic could be immesurable as it is not limited by geography or time as hurricanes, earthquakes and wildfires are.

As a less draconian alternative, insurance industry leaders are promoting the idea of an insurance plan backed by the federal government. This would follow a similar 34 | QUORUM

the federal government’s participation with PRIA may be necessary. It is not yet specified if common-interest communities would qualify to purchase it.

The COVID-19 crisis has also brought the highest national unemployment rate since the Great Depression. As of April 2020, the rate spiked to 14.7% and it is expected to reach roughly 20%, which equals approximately 40 million Americans. Thankfully, most community managers (91%) have not experienced any changes in their employment status. Regrettably, 29% of employees (other than community managers) have been furloughed as of May 2020, according to a survey conducted by Community Associations Institute (CAI). CAI fielded the “Community Associations & COVID-19 Impact” survey of more than 600 community association managers. Some of the terminations have been driven by proactive actions to reduce expenses. Others have done it after employees have failed to follow new procedures such as notifying the association if any symptoms are noticed, isolating for 14 days after a positive test, etc. The key consideration is whether the association followed all the legal recommendations to terminate these employees, or if this may lead them to an Employment Practices Liability (EPL) claim for Wrongful Termination. Other employment-related allegations that are anticipated in this environment are:

• Discrimination based on race/national origin related to the spread and origin of the virus • Discrimination based on disability, including retaliation claims for compromised individuals that request accommodations like remote working, limited/no travel, and social distancing • Discrimination/retaliation claims by employees that request an alternative working accommodation due to school or childcare facility closings Ironically, COVID-19 has inflicted the need to become socially distanced but virtually close, closer than ever! Community associations are heavily relying on the internet these days. Boards are making digital motions through virtual board meetings and there has been a substantial increase in resident and tenant participation now that they are a click away. As recommended by many attorneys, community managers and board members are actively trying to strengthen the communication with residents to lower anxiety levels and manage expectations. This is an admirable approach but it can also become a new liability exposure if the channels of communication are not cautiously controlled. Many associations have opted to create a social media site due to its free access, broad reach and high interaction. When an association is hosting a social media site, it can be held liable for any comments posted by residents or tenants, especially if they are defamatory comments.

A point often overlooked is the fact that a standard Commercial General Liability (CGL) policy typically excludes electronic chatrooms or bulletin boards. Per ISO Form CG 00 01 04 13, under exclusion k: “Personal and Advertising injury arising out of an electronic chatroom or bulletin board the association hosts or owns, or over which the association exercises control.” This exposure may be covered under the Directors & Officers Liability (D&O) policy if coverage is triggered.

The insurance market offers special D&O insurance programs specifically written for common-interest communities with coverage enhancements automatically built into the policy. Surprisingly, many associations choose the standard D&O policy forms instead.

In order to trigger coverage, a written demand must meet the policy definition of a “Wrongful Act” as specified by a D&O policy. Most of the special D&O insurance programs include the below definitions, so a defamatory comment would be covered under “c”, but this should be verified with your insurance broker as each carrier has its own policy definitions. a. False arrest, wrongful detention or imprisonment;

b. Malicious prosecution; c. Libel, slander or other defamation; d. Publication or an utterance in violation of an individual’s right to privacy; e. Wrongful entry or eviction, or other invasion of the right to private occupancy; or f. Discrimination, other than employment related discrimination.

If social media is being used, I encourage your association to designate an administrator and to monitor all posts made by residents.

It is recommended to require that all comments be pre-approved by the administrator before they are posted. But even assigning this task to an administrator could lead to inadvertent exposure to defamatory comments or copyright violations. It is safer to restrict posts to the Board of Directors only with general announcements about updates, board meetings, etc.

Lastly, the uncertainty of covered losses related to COVID-19 has also changed traditional reporting procedures for insurance claims.

For instance, several CAI webinars are directing Community Managers to verify with their brokers if there is liability coverage for the virus. While insurance brokers can discuss the new exposures, we are not in the position to accept or deny an insurance claim, as this can only be done by the carriers. It is the association’s decision to file a claim and the broker’s responsibility to do so even if a Letter of Denial is expected. Insurance carriers will evaluate every claim fully, on its own merits and based on the facts presented, in conjunction with all applicable policy provisions and the law in the applicable jurisdiction. Given the unique and emerging nature of the exposures associated with COVID-19, we anticipate conventional provisions and carrier positions to be questioned and tested across the industry, as well as within the regulatory and legal systems, Litigation and/or new regulation that will challenge many policy defenses presented by carriers can be expected.

Regardless of the size of your loss or questions regarding compensability or coverage, you should report your claim in a timely manner, in order to obtain the carriers coverage analysis and position. Then, discuss with your insurance broker to establish appropriate next steps. Our goal as insurance brokers is to provide guidance to mitigate these emerging exposures and to advocate on behalf of your association for the most favorable outcome.

AUGUST 2020

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Directory and Classifieds ASPHALT PAVING/MAINTENANCE/REPAIR

JANITORIAL

MANAGEMENT SERVICES (CONT’D)

Brothers Paving & Concrete Corporation 9469 Hawkins Dr T: (703) 393-1927 Manassas, VA 20109 F: (703) 393-1928 Paul Battista info@brotherspaving.com

Clean Advantage Corporation 9701 Philadelphia Court, Suite G-7 T: (800) 315-3264 Lanham, MD 20706 F: (301) 595-3331 www.cleanadv.com info@cleanadv.com

Comsource Management, Inc. AAMC www.comsource.com 3414 Morningwood Drive T: (301) 924-7355 Olney, Maryland 20832 F: (301) 924-7340 Gary M. Simon, CMCA, AMS, PCAM gsimon@comsource.com

Dominion Paving and Sealing 290 N. Brewster Lane T: (800) 728-3312 Purcellville, VA 20132 www.dominionpaving.com Josh Schiffer info@dompave.com Espina Paving, Inc. Asphalt/Concrete 15441 Farm Creek Drive T: (703) 491-9100 Woodbridge, VA 2191 F: (703) 491-9101 Serving: MD, DC, VA info@espinapaving.com ATTORNEY

Thomas Schild Law Group, LLC www.schildlaw.com 401 North Washington Street, Suite #500 T: (301) 251-1414 Rockville, MD 20850 Thomas C. Schild, CCAL tschild@schildlaw.com Scott J. Silverman ssilverman@schildlaw.com ENGINEERS

ETC Engineering and Technical Consultants Inc. Water intrusion, roofing, exteriors, windows, balconies, property studies, structural & architectural services www.etc-web.com T: (703) 450-6220 Mindy Maronic mindy@etc-web.com The Falcon Group www.falconengineering.com 7361 Calhoun Place, Suite 325 Rockville, MD 20855 T: (240) 328-1095 Stew Willis info@falconengineering.com GENERAL CONTRACTORS

Ploutis Contracting Co, Inc. T: (703) 360-0205 8365 Richmond Hwy F: (703) 360-5439 Alexandria, VA 22309 info@ploutiscontracting.com Stella Ploutis www.ploutiscontracting.com INSURANCE

Griffin Owens Insurance Group www.GriffinOwens.com 847 Station Street, Herndon, VA 20170 T: (571) 386-1000 Offices also located in Falls Church & Manassas Daniel Flavin, CIC, CRM dan@griffinowens.com

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LAUNDRY ROOM EQUIPMENT AND SERVICES

Caldwell & Gregory, Inc. Your Commercial Laundry Professionals 129 Broad Street Road Manakin-Sabot, VA 23103

T: (804) 784-6100 F: (804) 784-7418

MANAGEMENT SERVICES

Associa Community Management Corporation, AAMC 4840 Westfields Blvd, Suite 300 T: (703) 631-7200 Chantilly, VA 20151 www.cmc-management.com John Tsitos, CMCA, AMS, PCAM jstitos@cmc-management.com Barkan Management, LLC AAMC 8229 Boone Blvd., Suite 885 T: (703) 738-2501 Tysons Corner, VA 22182 F: (703) 388-1006 Michael Feltenberger, CMCA, AMS, PCAM Senior Vice President CAMP, AAMC (Community Association Management Professionals) www.gocampmgmt.com T: (703) 821-CAMP 4114 Legato Road, Suite 200 Fairfax, VA 22033 hgraham@gocampmgmt.com 209 West Street, Suite 302 Annapolis, MD 21401 sblackburn@gocampmgmt.com Capitol Management Corporation 12011 Lee-Jackson Highway, Suite 350 Fairfax, VA 22033 L. Peyton Harris Jr., CMCA, CPM lph@capitolmanagementcorp.net

T: (703) 934-5200 F: (703) 934-8808

Capitol Property Management Corporation, AAMC 3914 Centreville Rd, Suite 300 T: (703) 707-6404 Chantilly, VA 20151 www.capitolcorp.com Jeff Lawrence, CMCA, AMS, PCAM jlawrence@capitolcorp.com Cardinal Management Group, Inc., AAMC 4330 Prince William Parkway, Suite 201 T: (703) 569-5797 Woodbridge, VA 22192 www.cardinalmanagementgroup.com cardinal@cardinalmanagementgroup.com Thomas A. Mazzei, CMCA, AMS, PCAM CFM Management Services, AAMC 5250 Cherokee Ave, Suite 100 T: (703) 941-0818 Alexandria, VA 22314 F: (703) 941-0816 Christiaan Melson, AMS, PCAM c­­­­­­­­melson@cfmmanagement.com

FirstService Residential DC Metro LLC, AAMC 11351 Random Hills Road, Suite 500 T: (703) 385-1133 Fairfax, VA 22020 Robert Teeling robert.teeling@fsresidential.com KPA Management, AAMC www.kpamgmt.com 6402 Arlington Blvd., Suite 700 T: (703) 532-5005 Falls Church, VA 22042 F: (703) 532-5098 Offering personalized service Ed Alrutz, CPM, CMCA, PCAM ealrutz@kpamgmt.com Legum & Norman Inc. AAMC 3130 Fairview Park Drive Ste 200 T: (703) 600-6000 Falls Church, VA 22042 www.legumnorman.com Marc B. McCoy, CMCA, AMS MMcCoy@legumnorman.com Sentry Management www.sentrymgt.com 7619 Little River Turnpike, Suite 210 T: (703) 642-3246 Annandale, VA 22003 602 South King Street, Suite 400 T: (540) 751-1888 Leesburg, VA 20171 Dave Ciccarelli, AMS, PCAM dciccarelli@sentrymgt.com Sequoia Management Company Inc., AAMC 13998 Parkeast Circle T: (703) 803-9641 Chantilly, VA 20151-2283 www.sequoiamanagement.com Craig Courtney, PCAM ccourtney@sequoiamgmt.com PAINTING SERVICES AND RETAILERS

Capital Painting Co. www.capitalpainting.net 5520 Oakwood Road T: (703) 313-0013 Alexandria, VA 22310 F: (703) 922-1826 George Tsentas george@capitalpainting.net

­­INDEX TO ADVERTISERS A Associa-Community Management Corporation, AAMC....................................................................14 B Barkan Management, LLC, AAMC..................................................................................................22 Brothers Paving & Concrete..............................................................................................................4 C Caldwell & Gregory, Inc...................................................................................................................28 Capital Painting Co.........................................................................................................................27 PAINTING SERVICES AND RETAILERS (CONT’D)

Reston Painting & Contracting 619 Carlisle Drive Herndon, VA 20170 David Hamilton

CIT - Community Association Banking & CondoCerts......................................................................20 Clean Advantage Corporation T/A Condominium Cleaning Service..................................................40

T: (703) 904-1702 F: (703) 904-0248 dave@restonpaint.com

D DoodyCalls.....................................................................................................................................11

RESTORATION SERVICES

F Titan Restoration Co Warrenton, VA T: (540) 349-1503 www.titanrestoration.com F: (540) 349-1512 Anita Puckett apuckett@titanrestoration.com

The Falcon Group...........................................................................................................................10 FirstService Residential DC Metro, LLC, AAMC................................................................................39

ROOFING

G

TWC Services, LLC PO Box 150277 T: (703) 971-6016 Alexandria, VA 22315 www.twcserv.com Linda Walker info@twcserv.com

Gardner Engineering, Inc..................................................................................................................7

WINDOWS & DOORS

Windows Plus, LLC 4321 Markham Street T: (703) 256-0600 Annandale, VA 22003 F: (703) 942-6987 Kimberly Wayland kknight@windowspls.com

M Miller-Dodson Associates................................................................................................................18 P Ploutis Contracting Co., Inc.............................................................................................................39 R Reston Painting Company................................................................................................................2 S Sentry Management, Inc.................................................................................................................19 Solitude Lake Management............................................................................................................10 T TWC Services.................................................................................................................................17 W Williams Professional Painting.........................................................................................................32 Windows Plus, LLC.........................................................................................................................30 WINTRUST Community Advantage Bank.......................................................................................24

AUGUST 2020

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2/10/20 11:52 PM

Dear Board Member,

Thank you for all you do as a volunteer for your community in the DC Metro area. We understand the amount of time and effort you put in to make your community or building better for all those who live in it, especially in these challenging times and we are here to support you.

From the beginning of the current pandemic crisis in March, our teams stayed on the job for clients like you, making a difference, every day. Extraordinary times call for extraordinary leadership, as well as the levels of caring and commitment needed to step up. Our associates continue to show that caring and commitment, at every level.

We’re here.

We care.

The next several months will bring new challenges as we travel this uncharted territory. Through it all, our associates will strive to do our best for the residents and communities we serve.

Sincerely, MICHAEL MENDILLO President

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TRENT HARRISON, PCAMÂŽ President, MidAtlantic

703.385.1133 www.fsresidential.com

AUGUST 2020

2020-06-02 10:21 PM

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2020 CHAPTER BENEFACTORS

ASPHALT & CONCRETE

WMCCAI 7600 Leesburg Pike Suite 100 West Falls Church, VA 22043 www.caidc.org (703) 750-3644

PRESORT STANDARD US POSTAGE PAID ALEXANDRIA, VA # 5659

OUR MISSION To optimize the operations of Community Associations and foster value for our business partners.

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19/03/20 10:25 PM