8
Common-interest- developments, aka HOA’s, have a range of choices when it comes to making a decision for hiring a management company. Management companies range from national corporations to sole proprietors who work out of a home office. What are the differences that a board should be aware of in shopping for a management company? How does a board decide among the myriad of management firms? What is the best fit for your association? As a volunteer board member your inclination should be to work as efficiently as possible. Making the best long-term decisions about vendors is how you reduce your labor as a volunteer. (Remember the hourly rate you are earning as a board member.) It is so important that you make good decisions the first time about all your vendors. Why is the decision to hire the right property manager or Management Company so important? Managers are integrally involved with your finances. Managers play a significant role in your maintenance vendor selection The laws change every year, and the manager must stay current with the legislative changes. Manager Certification: Does it Really Matter? By Dave Brock, PCAM HOMEOWNER ASSOCIATION NEWSLETTER January 2018 New Year, New Law(s), what Sacramento is Doing For (To?) HOAs in 2018 FREE BOARD SEMINAR & VENDOR EXPO! 2017 was a busier year than in many recent years for HOAs in Sacramento, as six major new bills were signed into law which affect associations. In addition. HUD has passed regulations in late 2016 regarding Fair Housing, and the State Fair Employment and Housing Council is currently considering major new regulations on the subject. If that wasn’t enough, last year’s marijuana law takes its second step as beginning January 2, cities may license marijuana stores. The presentation will cover: The new document recording tax, and why HOAs are concerned SB2 The federal regulation on sexual harassment in housing projects, including HOAs, and the coming state regulations – how to prepare (or not?) What address should the HOA use for members, and what if they don’t respond? AB1412 Can a contractor install a cabinet in one condo and lien the entire project? AB534 Solar energy systems – are they basically mandatory now? AB634 Manager disclosures – about related companies - AB 690 Having the Communist Party speak at your HOA? SB 407 says “OK” Marijuana parties in your HOA? Plan on attending this evening which will address these eight new legal issues. Hear not only WHAT the law changes but HOW it affects your HOA and WHY you would care about it. Lastly, practical tips will be offered regarding compliance. Speaker: Mr. Kelly Richardson, Esq. February 22, 2018 6:30 to 8:30 PM Reservations: [email protected]; or by calling (626) 795-3282, ext. 886. Manager Certification: Does it Really Matter?: continued on page 6.

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Page 1: New Year, New Law(s), what Sacramento is Doing …...2 2018 Legislative Update By: Matt D. Ober, Esq., CCAL 2017 was one of the most active legislative years for Community Associations

C o m m o n - i n t e r e s t -developments, aka HOA’s, havea range of choices when itcomes to making a decision forhiring a management company.Management companies rangefromnationalcorporationstosoleproprietors who work out of ahomeoffice.• What are the differences that

a board should be aware of inshopping for a managementcompany?

• Howdoesaboarddecideamongthe myriad of managementfirms?

• What is the best fit for yourassociation?

Asavolunteerboardmemberyour inclinationshould be to workas efficiently aspossible. Makingthe best long-termdecisions aboutvendors is how youreduceyour laborasavolunteer.(Rememberthehourlyrate you are earning as a boardmember.) It is so important thatyoumakegooddecisionsthefirst timeaboutallyourvendors.WhyisthedecisiontohiretherightpropertymanagerorManagementCompanysoimportant?• Managersareintegrallyinvolved

withyourfinances.• Managersplayasignificantrole

in your maintenance vendorselection

• Thelawschangeeveryyear,andthemanagermuststaycurrentwiththelegislativechanges.

Manager Certification: Does it Really Matter?

ByDaveBrock,PCAM

HOMEOWNER ASSOCIATION NEWSLETTER

January 2018

New Year, New Law(s), what Sacramento is Doing For (To?)

HOAs in 2018FREE BOARD SEMINAR & VENDOR EXPO!

2017wasabusieryearthaninmanyrecentyearsforHOAsinSacramento,assixmajornewbillsweresignedintolawwhichaffect

associations.Inaddition.HUDhaspassedregulationsinlate2016regardingFairHousing,andtheStateFairEmploymentandHousing

Counciliscurrentlyconsideringmajornewregulationsonthesubject.

Ifthatwasn’tenough,lastyear’smarijuanalawtakesitssecondstepasbeginningJanuary2,citiesmaylicensemarijuanastores.

The presentation will cover:

• Thenewdocumentrecordingtax,andwhyHOAsareconcernedSB2• Thefederalregulationonsexualharassmentinhousingprojects,

includingHOAs,andthecomingstateregulations–howtoprepare(ornot?)

• WhataddressshouldtheHOAuseformembers,andwhatiftheydon’trespond?AB1412

• Canacontractorinstallacabinetinonecondoandlientheentireproject?AB534

• Solarenergysystems–aretheybasicallymandatorynow?AB634• Managerdisclosures–aboutrelatedcompanies-AB690• HavingtheCommunistPartyspeakatyourHOA?SB407says“OK”• MarijuanapartiesinyourHOA?

Planonattendingthiseveningwhichwilladdresstheseeightnewlegalissues.HearnotonlyWHATthelawchangesbutHOWitaffectsyourHOAandWHYyouwouldcareaboutit.Lastly,practicaltipswillbe

offeredregardingcompliance.

Speaker: Mr. Kelly Richardson, Esq.

February 22, 20186:30 to 8:30 PM

Reservations:[email protected];orbycalling(626)795-3282,ext.886.

Manager Certification: Does it Really Matter?: continued on page 6.

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2018 Legislative UpdateBy:MattD.Ober,Esq.,CCAL

2017wasoneofthemost active legislativeyears for CommunityAssociations in recentmemory. Perhaps itwas the Governor’s“official” end of thedrought that left State

lawmakerswithtimetomicromanageourcommunitieson issuesfromfreespeechtosolar; fromnewdisclosureobligations to recording fees. Nowthatthedusthassettled,weare leftwith the following legislation forour communities to adjust to in thecomingyear.

SB 407 Non-Commercial Solicitation

SB 407 adds Civil Code Section4515 to the Davis-Stirling CommonInterest Development Act to protectcommunity association members’and residents’ ability to 1)peacefullyassemble or meet; 2) invite publicofficials,candidatesandhomeownersrepresentatives to thecommunity tospeak on matters of public interest;and 3) canvass and petition themembers,residentsandboardabout,or distribute or circulate informationaboutcommoninterestdevelopmentliving,associationelections,legislation,electiontopublicoffice,ortheinitiativereferendumorrecallprocess.Thelaweffectively renders void governingdocument provisions that prohibit amemberorresidentfromengagingintheaboveactivities.

In addition, this law carves outa resident’s right to use commonarea facilities for an assembly ormeeting about the above topics (ifnot otherwise in use) without beingrequiredtopayafee,makeadeposit,obtain liability insurance, or paythe premium or deductible on theassociation’sinsurancepolicyinordertousethecommonareafortheabovepurposes. Finally, SB 407 imposes acivilpenaltyof$500foreachviolationofthestatute.

Theconcernsaboutthislegislationareseveral.Whileitdoesnotallowanownerorresidenttoinvitethegeneralpublic into the community, the lawdoessubjectacommunity’sresidentsto being approached, petitioned,and provided flyers on any numberof subjects. Many residents will seethis as an invasion of their privacy

or right toquietenjoyment.Upuntilnow, residents enjoyed a level ofprivacyintheircommunities,freefromcanvassing or petition on legislativeorpolitical issues.Manywill find thislaw offensive. Moreover, althoughthe lawlimitscanvassing,petitioning,distributing and circulating toreasonablehoursandinareasonablemanner, it seems to leave anassociationwithrelativelittleauthoritytoregulatetheactivitiesprotectedbythisbill.Finally, it isproblematic thatthelawcarvesoutanexceptionfrompaying common facility rental feesas long as the use is for a purposeprotectedbythisstatute,whenotherresidentsmayberequiredtopayafeeforotherpersonaluses.Inthisway,thelawrequirestheassociation(andothermembers) to subsidize a member’suse of a common area facility aslong as it is being used to addresscommon interestdevelopment living,association elections, legislation,electiontopublicoffice,ortheinitiative

referendumorrecallprocess.AB 634 – Provides for solar energy

systems on multi-unit common area roofs and carports

AB634,likemuchenvironmentally-basedlegislationthatcamebeforeit,renders void and unenforceable anygoverning document provision thatprohibits the installation or use ofa rooftop solar energy system on acommonarearoof(inwhichtheownerresides, or on an adjacent garageor carport assigned to the owner asexclusiveuse.)Inotherwords,thisbillallowsanownerofaunit inamulti-unit condominium building to installsolarpanelsonthecommonarearoof,provided he meets the criteria fordoingso.

AB 634 amends Civil Code 714.1and Civil Code Section 4600, andaddsCivilCodeSection4746 to theDavisStirlingActtopavethewayforanownertoplacesolarpanelsonthe

commonarearoof.Theamendmentsto the Civil Code not only prohibitany general policy or provision thatprohibitsrooftopsolarinstallationsonmulti-unitcondominiumroofs,butalso,theycarveoutanexceptiontothe2/3membershipapprovalrequirementofCivil Code Section 4600. Under thisbill, likewithelectricvehiclechargingstations, membership approval shallnot be required to install and use asolar energy system on a commonarea roof provided the requirementsofCivilCode4746aremet.

New Civil Code Section 4746,containsspecificrequirementsthesolarinstallingownermustmeetincluding,1)notifyingeachownerinthebuilding;and 2) maintaining owner’s liabilityinsurance.Further,CivilCodeSection4746allowsanassociationtoimposeadditionalreasonablerestrictionsthatrequireasolarsitesurveytodetermineusable solar roof area and equitableallocation of usable solar roof areaamong all owners sharing the sameroof or area. Such restrictions alsocanrequiretheownerandsuccessiveownersoftheunittoberesponsiblefor1)damagecausedbytheinstallation,maintenance of, repair, removal andreplacement of the system; 2) costsofmaintainingrepairingandreplacingthesystem,andrestoringthecommonarea;and3)disclosingtoprospectivebuyers the existence of the systemandtheresponsibilitiesstatedabove.

It should be noted that AB634 does allow an association toimpose, per Civil Code Section 714.1,reasonable provisions that restrictinstallation in common areas, requiremaintenance,repairorreplacementofroofs,orrequireinstallerstoindemnifyor reimburse the association for lossordamagecausedbytheinstallation,maintenanceoruseofthesolarenergysystem.

The concerns presented by thislegislationaremany,not the leastofwhichisthat itallowsforatakingofcommonareabyanindividualownerwithout a membership vote. But theone saving grace is the feasibilitystudy todetermineusable solar roofarea andequitable allocationof roofarea. Should the study determineeitherthattheroofareaisnotfeasible

2018 Legislative Update: continued on page 3.

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for a solar energy system, or thatequitableallocationisnotpossible,theAssociationwouldbeabletodenytheinstallation.

Other concerns presented bythe legislationarethatthebillallowsan owner to place solar panels on acommonarearoofwithoutadequateprotections for the association or itsmembers from property damage,voiding roof warranties, water leaks,andresultingdamage.Further,thelawdoesnot requireadequate insuranceand indemnity requirements toprotectresidentsandtheassociationfrom liability and damage. Andperhaps most concerning is that thebill lacks a clear, reliable procedurefor determining whether a commonarearoofissuitableforasolarenergysystem, opening an association toownerdisputesandpossiblelawsuits.The law is vague as to the methodof determining proper allocation ofcommon area roof space amongall owners. In all likelihood, a roofallocationmandateisunworkableinamulti-unitcondominiumpropertywithlimitedroofspace.

AB 690– Manager Disclosures AB 690 takes the managers

disclosure obligation a step furtherand now mandates the disclosuresrequired by Civil Code Section5375. In addition, AB 690 addressesundisclosed manager conflicts ofinterest by adding to the Civil CodeSection5375disclosureitems“(d)anybusinessinwhichthemanagerhasanownership interest or profit sharingarrangement; and (e) whether themanagerreceivesareferralfeeorothermonetary benefit from a third-party

provider of disclosure documents.Further,thisbilladdsSection5375.5totheCivilCodewhichdefinesconflictofinteresttoread“(a)anyreferralfeeorothermonetarybenefitthatcouldbederivedfromanotherbusinessthatprovides services to the association;or, (b) any ownership interest”. Inotherwords,ifamanageroperatesaconstruction company that servicesan association, and that managerprofits from that construction work,the manager must disclose thisrelationship.AB690clearlyisintendedtoinformpotentialassociationclientsof the manager’s existing businessrelationships or incentives that maypresentconflictsofinterest.

Finally, AB 690 also addssubsection (b) (12) to theCivilCode5300AnnualBudgetReportrequiringanassociationtodiscloseacompletedcopy of its Document DisclosureSummaryFormpursuanttoCivilCode4528sothattheactualfeeforcopiesof certain requested documents isstated.

AB 1412 Correction to last year SB 918

The 2016 legislative sessionbrought us Civil Code Section 4041requiringownersannually toprovideanaddress forpurposesof receivingnotices from the association. Theexistingstatuterequiredthepropertyaddress to be used in the event theowner failed to provide a mailingaddress. This created a dilemma formanagement companies who mayhave had actual knowledge that anowner livedoff-sight, yet thatownerdidnotprovidetheannualdisclosure.This required the manager to sendmail to the property address eventhoughthatmanagerknewtheownerdidnotresidethere.AB1412corrects

thisbyallowingthemangertousethelastknownaddressonrecordwiththeassociation, if provided. Otherwise,associationmailwillbesenttotheon-sitepropertyaddress.

© All Rights Reserved Matt D.Ober.isaSeniorPartnerofRichardsonOber PC, representing communityassociations throughout SouthernCaliforniawithoffices inCostaMesa,Pasadena,andRiverside.v

Shane MalnerHomeowners Association Insurance

Toll Free: 800-482-4487

Insurance for Common InterestDevelopments

Master Policies, Earthquake,Workers’ Compensation, Fidelity,

D & O

[email protected] #0L19581

2018 Legislative Update: continued from page 2.

The Perfect Board Meeting ByDaveBrock,PCAM

HOABoardsare requiredby lawto conduct open board meetings tomakedecisions.Meetingsaregroundzero foreverydecision thatanHOAmakes.However,meetingsareoftenunorganizedandunnecessarilylong.

OwnerswhoarenotontheboardareentitledtoknowWHENtheirboardmeets,whattheyarediscussing,andcanspeaktotheBoardiftheychoose.TheDavis-Stirlinglawisveryspecific

ontheseissues.Since meetings are required by

lawandimportantfortheinvestmentvalueofyourproperty,aretherebetterwaystodomeetings?Considerthesefivetipsforrunningbettermeetings:purpose, preparation, punctuality,patienceandpolicy!

The Perfect Board Meeting: continued on page 5.

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4

Board members should:

• Strive at all times to serve thebest interestsoftheassociationas a whole regardless of theirpersonalinterests.

• Usesoundjudgmenttomakethebestpossiblebusinessdecisionsfor the association, takinginto consideration all availableinformation, circumstances andresources.

• Act within the boundaries oftheirauthorityasdefinedbylawandthegoverningdocumentsoftheassociation.

• Provide opportunities forresidents to comment ondecisionsfacingtheassociation.

• Performtheirdutieswithoutbiasfor or against any individual orgroup of owners or non-ownerresidents.

• Disclosepersonalorprofessionalrelationships with any companyor individual who has or isseeking to have a businessrelationshipwiththeassociation.

• Conduct open, fair and well-publicizedelections.

• Always speak with one voice,supporting all duly-adoptedboarddecisionseveniftheboardmember was in the minorityregarding actions that maynot have obtained unanimousconsent.

IfyouwouldlikeaWordversionof the Code of Ethics for BoardMembers for possible use in yourassociation,[email protected].

Board members should not:

• Reveal confidential informationprovidedbycontractorsorshareinformation with those biddingfor association contracts unlessspecifically authorized by theboard.

• Make unauthorized promises toacontractororbidder.

• Advocateorsupportanyactionoractivitythatviolatesalaworregulatoryrequirement.

• Use their positions or decision-making authority for personalgain or to seek advantage overanother owner or non-ownerresident.

• Spendunauthorizedassociationfundsfortheirownpersonaluseorbenefit.

• Accept any gifts—directlyor indirectly—from owners,residents, contractors orsuppliers.

• Misrepresent known facts inany issue involving associationbusiness.

• Divulge personal informationabout any association owner,resident or employee that wasobtained in the performance ofboardduties.

• Make personal attacks oncolleagues,stafforresidents.

• Harass, threaten or attemptthroughanymeanstocontrolorinstillfearinanyboardmember,owner, resident, employee orcontractor.

• Revealtoanyowner,residentorotherthirdpartythediscussions,decisions and comments madeatanymeetingoftheboard.v

Code of Ethics for Community Association Board Members

Asanewyearbegins,it’sagreattimeforBoardmemberstoevaluatetheircommitmentasaBoardmembertotheirassociation.ThissamplecodeofethicsasprovidedbytheCommunityAssociationsInstitute(CAI)isnotmeanttoaddresseverypotentialethicaldilemmaencounteredbyacommunityassociationboardmember,butisofferedasabasicframeworkthatcanbemodifiedandadoptedbyanycommon-interestcommunity.

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Advertise Here If Your Company can provide

excellent customer service and specializes in HOAs

contact Roman Esparza

at (626) [email protected]

First, what is the purpose of Board meetings?

Decision making is the primaryfunction of the board meeting,and a sound process for makinggooddecisions iscrucial. Todothiseffectively,theboardmustlearntheartofhealthydeliberationanddiscussion.Beforeanitemisdiscusseditshouldbebroughttotheboardasamotion.Amotionisastatementoftheissuetobedecidedbytheboard.Onceamotionisonthetable,andsecondedbyanotherboardmember, then it istimefordiscussion.Afterappropriatediscussion,it’stimetovote.Thevotebecomes the decision of the board,whether the vote went your way, ornot.

The President must not allowany board member (including him/herself) to dominate the discussion.The quiet board member shouldhaveanopportunity toexpress theiropinion. It is important that eachboardmemberapproacheveryissuewithanopenmind.Thebestdecisionsare those thataremadebyagroupthat has healthy disagreement anddiscussion. Thisprocessshouldalsoinclude input from outside expertsas well as your constituency, theowners.Ownershavearighttoattendmeetings,andiftheychoosetovoicetheir opinion, they can do so duringthe requiredOpenForumportionofthemeeting.

The second importantconsiderationispreparation.Inorderfor meetings to be run efficientlyand not last longer than necessary,the President should require thatboardmembershaveallbackgroundmaterial in their hands four to fivedays prior to the board meeting.This will mean that deadlines mustbe established with your vendors,especially the association manager,who submits items for the meeting.Itseemsobvious,butitmustbesaid,that board members should actuallyreadthematerialpriortothemeeting.Themeeting itself isnot the timetogetuptospeedontheissues,unlessyou enjoy long meetings. PostingtheAgenda fourdays inadvanceofthe meeting in the common area is

legallyrequiredandhelpstokeepthemeeting focused. The board cannotdiscuss anything that is not on theagenda.Oncethemeetingbegins,anyconversationamongboardmemberswhichdoesnotpertaintotheAgendashould be deferred until after themeeting adjourns. The President, orChair,ofthemeetingisresponsibletomakesurethemeetingstaysfocusedontheissuesontheagenda.Ifthereisnotsufficientinformationtomakeadecisionatthemeeting,tableitforafuturemeeting.

Punctuality and consistency areimportant factors for the success ofboard meetings. Start meetings ontime providing there is a quorum.Board meetings and decisionscannot be made by email. Meetingsmustbeheldasspecified in theby-laws, and usually at a place withinthe association, or close by. It isacceptableforsomeboardmembersto be present telephonically, as longasthereisaphysicallocationforthemeetingwhereownerscanattend iftheychoose.Therequirementisthateveryonemustbeabletoheareveryoneelse.Meetingsloseeffectivenessaftersixty to ninety minutes and if theybegintoolateintotheevening.Sincemostboardmemberswork,theidealtimeforboardmeetingsis6PM.

Thegoverningdocumentsofyourassociationmayspecifythefrequencyof board meetings. But if not, it isrecommendedthatyouhavefourtoten meetings a year. A board mayelect to not meet in one month ofthesummer,andduringthemonthofDecember.Iftheassociationissmaller,andtherearenomajorissues,meetingquarterlymaybeadequateprovidingthegoverningdocumentsallowthis.Itisbesttosetaconsistentdayofthemonth(orquarter)foryourmeetings.Atthefirstmeetingofanewboard,establish the best day or eveningthat works for everyone. The boardmemberscanthensetotherregularlyscheduledeventsaroundthismeeting,thus increasingthe likelihoodthatallmemberswillbepresent.

PatienceisavirtueespeciallywithBoard meetings and decisions. Thebestdecisionsbygroupsalwaystake

The Perfect Board Meeting: continued from page 3.

The Perfect Board Meeting: continued on page 6.

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Given the fact that for mostpeople,theirhomerepresentstheirmostvaluableasset,itwouldmakesensetonotallowyourinvestmenttobemanagedbyamanagerwhois NOT certified. Therefore, theCalifornia legislature made thisdisclosure law a reality in 2003.Boardsshouldlookforprofessionaldesignationswhenhiringamanager.Working with a Certified manageraffords the best protection forassociations as knowledgeableand certified managers help steertheir associations through themaze of regulatory compliancethereby reducing potential liabilityand making it easier for volunteerdirectors to meet their fiduciaryduties. If you required surgery wouldyou want the most qualifiedsurgeon? Or, if you were seekingan investment advisor, you shouldwant the most highly qualifiedprofessional.YourHOAinvestmentmanager choice should be nodifferent. Common-interest-developmentmanagers can be “certified”pursuant to Section 11502 of theBusinessandProfessionsCode,butstrangelythe lawdoesnotrequirethemtobe.Theonlyrequirementisthatmanagerdisclosewhethertheyarecertifiedatthebeginningofthecontract,andthereafter,everyyear.What does certification involve?To become a certified managerthe process takes about twoyears or longer depending on the

designation. The process includescompleting required courses andobtaining actual “on the job”experience. There are continuingeducational requirements aswell, and re-certification must becompletedeverythreeyears. A CID manager who makestheinvestmentoftimeandmoneyto become certified is clearlycommittedtothisindustryandhasplanstostayinthisindustryforanextendedperiodof time.This isn’tacareerthattheyaretryingouttosee if it works. Managers who arein this industry for the long termarethekindofmanagersthatyouwanttohaveworkingforyou,andnot someone who has applied forapositionbecauseofaneconomicdownturninarelatedfield. Whyisitadvantageoustoworkwithacertifiedmanager?Thereareseveralpointstoconsider:1) Ethics-aHOAboardshouldbeconcerned that their managementcompany/manager has integrityand operates honestly. Both theCommunity Associations Institute(CAI)andtheCaliforniaAssociationof Community Managers (CACM)haveCodesofEthicsandStandardsofPractice.OnlyCertifiedmanagersare bound by these codes. Boardmembers who work with amanagerwho isnotcertifiedhaveno recourse to deal with an issue,otherthanlegalaction.2) Transparency-boardshavefullaccess to information and ownershave access to most, but not all,information. The manager should

facilitatetimelyaccessasrequestedandrequiredbylaw.3) Accessibility: as a board whoneedstorelyonyourmanagementpartner,itisimportantthatyouhaveimmediateaccesstoyourmanager,or a member of the managementcompany staff. HOA managers,likeanyone,needtotakevacationsperiodically,ormaybecomeillandrequiretimeoff.Doesthecompanyprovideback-upofficesupportforyourmanagerduringthesetimes?4) Conflicts: both managers (andboardmembers)canhaveconflictsof interest. A 2018 law, requiresmanagement companies todiscloserelationshipswithaffiliatedcompanies that may provideservicestoyourassociation,wherethe manager, or managementcompany have an ownershipinterest. As a board member, youshouldknowwhenthecostofdoingbusinessbenefitsthemanagementcompanyinanotherway.5) Knowledgeable - the CID(aka HOA) industry is continuallyimpacted by new laws every year.Asavolunteerboardmember,youshouldnothavetokeepuponlawchanges. You should expect thatyourmanagerisdoingthatforyou,andyourmanagerormanagementcompany can provide you theupdatesastheyoccur. In summary, consider yourinvestment and the value of yourtime. When looking to utilize amanageritisimportanttomakethebestdecisionyoucan.v

Manager Certification: Does it Really Matter?: continued from page 1.

longer, but groups generally makebetter decisions. Don’t be frustratedby the process involved, rather letyourdesireforthebestresultforyourcommunityandyourinvestmentwin.It takes time for all Board memberstodeliberateandvoicetheiropinions,but the result should be worth thewait. Unless you are dealing with anemergency, take your time to makethebestdecisionspossible.

Strivetobeapolicymakingboard.What is that exactly? Establishingpolicies for similar issues will mean

that theboarddoesn’thave toworksohardinthelongrun.Establishingawell-thoughtthroughpolicywillavoidhavingthatsamediscussionagainforsimilarissues.Forexample,establisha policy on how you will addressarchitectural issues so there is aconsistentwayarchitectural requestsarehandled.

Boardswhocreatepoliciesareabletooperatemoreefficientlyovertime.Simply, once you have decided howyouoperatewithagivensetoffacts,thereisnofuturediscussionunlessyoubelieveyourpolicy isflawed. Italsohelpsthosewhoworkwithyou,such

asthemanager,tohavetheabilitytospeakontheBoard’sbehalfandnotcometotheBoardeachtimeasimilarissuearises.

Inclosing,itisnecessarytorealizethe importance of board meetingsin the life of the association. Gooddecisionsimpacttheinvestmentvalueoftheproperty.Thecombinedvalueoftheunitsinyourassociationiseasilyin the millions so it is important totake a business-like posture in yourmeetings. If you view the decision-makingprocesscorrectlyyouwillhelptoenhancevalue inyourassociation.v

The Perfect Board Meeting: continued from page 5.

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MANAGER CERTIFICATION: The Annual DisclosureByDaveBrock,PCAM

Asamatterofdisclosurefor2018,all oftheBeven&Brockassociationmanagers and the principals of thefirm are Certified common interestdevelopmentmanagers.Eachofthefollowinghavemet the requirementsoftheBusinessandProfessionscode,section11502.

The following managers arecertifications are current and arecertifiedbyCACM, which is locatedat 23461 So. Pointe Dr., Suite 200,LagunaHills,CA92653.Thephonenumberis(949)916-2226.• C. Finley Beven, CCAM, since

1994,Emeritus;RealEstateBrokerlicense

• Vianna Boettcher, CCAM, since2006

• PaulCannings,CCAM,since2003• Roman Esparza, CCAM, since

2009; Real Estate Sales license(inactive)

• JuanitaFlores,CCAM,since2004• LauraGarbo,CCAM,since2003• LoriLacher,CCAM,since2003• SueThreadgill,CCAM,since2003• Marilyn Howald, CCAM, since

1996• LauraAguilar,CCAM,Since2015

• TriciaFord,CCAM,since2004.The following managers are

certified with the CommunityAssociations Institute, located at6402ArlingtonBlvd.,Suite500,FallsChurch,VA22042;Phone:(703)970-9220:• DavidBrock, PCAMdesignation,

since 1990; Real Estate BrokerLicense

• MarilynHowald,CMCA,designationthrough the National Board ofCertification,since1996.

• Laura Aguilar, AMS (AssociationManagementSpecialist)asof2016.

• PaulCannings,CCAM,since2003.• Angela Nazari, CMCA, The

Community Assoication ManagersInternational Certification Board,since2016.

• TriciaFord,CMCA,TheCommunityAssoicationManagersInternationalCertificationBoard,since2004.The law also requires that the

location of the manager’s primaryofficebedisclosedwhichis99S.Lake,Suite100,Pasadena,CA.91101.

If your Association is managedby another firm and you have notreceived the annual disclosure, you

maywanttoaskforit.

MANAGER CONFLICT DISCLOSUREAB 690 which takes effect on

January 1, 2018 requires managerstodiscloseanybusinessinwhichthemanager has an ownership interestor profit sharing arrangement; and(e) whether the manager receivesa referral fee or other monetarybenefit from a third-party providerof disclosure documents, or anyreferralfeeorothermonetarybenefitthat could be derived from anotherbusiness that provides services totheassociation;or,(b)anyownershipinterest.

Beven&Brock,andanymanageremployed at Beven & Brock, hasNO ownership interest in anotherbusiness, and does not receive anyreferralfeeorothermonetarybenefitfrombusinessesthatprovideservicestotheassociation,otherthantheonesituationindicatedhere:

ViannaBoettcherisontheboardofdirectorsofAudio-CommSystems,Inc.,abusinessthatisoperatedbyherhusband.v

Wet Weather Preparation for 2018Winter is arriving late this

season,butitisnevertoolatetobeprepared.Hereiswhatshouldbedoneataminimum:

1. Make sure that all area drains

are cleaned out. This includesground level, subterraneangarage,androofdrains.

2. Make sure all roof gutters are cleared of leaves and debris.

3. Do a roof inspection.Mostroofleaksarecausedbythefailureof“mastic.”Mastic isused tosealthe pipes that extend throughthe roof. Mastic becomesdeterioratedbythesunandhasashorterlifespanthanyourroof.A qualified roofer can checkyour roof and make repairs,which is much less expensivethandealingwiththeresultsofaroofleak.Whiletherooferisthere,askthemtolookatafew

southorwestfacingwindowstomakesuretheseallooksgood.

4. Test your sump pumps.Subterranean garages mostoften have pumps that pumpthe water out of the garage.Thisshouldbedoneeveryyeartomakesuretheywill functionwhenyouneedthemto.

5. Review last year. If you canremember the last time itrained,perhaps,therearesometroublesome areas of yourproperty that usually causeproblems when it rains. Paycloseattentiontothoseissues.There is nothing difficult or

expensive about being preparedfor the rainy season. The cost toprepare is a small fraction of thecosttocleanupafterarainstorm.v

Page 8: New Year, New Law(s), what Sacramento is Doing …...2 2018 Legislative Update By: Matt D. Ober, Esq., CCAL 2017 was one of the most active legislative years for Community Associations

This Newsletter is circulated forgeneral informational purposesasapublic serviceandpromotionby the Beven & Brock PropertyManagement Company. Thecontents are the opinions of thefirm, or the authors, and notintendedtoconstitutelegaladvice,andshouldnotbe reliedupon forthat purpose. If you have a legalissue related to a subject of thisnewsletter, you should consultthe California Civil Code and yourattorney. The paid advertising inthis newsletter is provided as acourtesy to our readers and doesnot constitute any endorsementbyBeven&Brock.TheadvertisersprovidetheirservicestoHOA’sandsome may have provided servicestoBeven&Brock’sHOAclients inthepast.

EducationforvolunteerHOABoardmembersisessentialforsuccessasboardmembers.Duetotheever-increasingcomplexandchangingnatureofthelawsandregulationsthatimpactcommon-interest-developmentsstaying on top of these changes greatly increases a board’s memberabilitytosucceedintheirrole,andoperateinconfidence.Thereareseveralwaysforboardmemberstobeeducated,andBeven&Brockofferstwofreeways.Theonlycostistimeinattendingthesefreeevents,whichareofferedinPasadena.Upcoming events:

March 6, 2018: 6:30 to 9:30 PM. Basic Board Education CourseThreehourtrainingcourseforHOAcurrentandprospectiveBoardmembers.AcoursesyllabusandCertificateofCompletionisprovided.ThisclassistaughtbyKellyRichardson,Esq.ofRichardsonHarmanOber,PC,andisco-sponsoredwiththeCommunityAssociationsInstitute.Seatingislimited,andreservationsmaybemadebyemailing:[email protected]&Brockmanagedassociations.Thiscoursewillbeofferednextinearly2018.

February 22, 2018: 6:30 to 8:30 PM. 2018 HOA LEGISLATIVE UPDATE ThenewlawspertainingtoHOA’sfor2018willbeaddressedaswellasnewguidelinesthatwillimpacteveryHOAfromtheDepartmentofFairEmploymentandHousing(DFEH).YoumaybeshockedanddisappointedwhenyoulearnwhatisnowbeingrequiredofHOA’s.ThespeakerwillbeKellyRichardson,Esq.ofRichardsonOber,[email protected];orbycalling(626)795-3282,ext.886

HOA BOARD MEMBER EDUCATION