Tag Archives: news

Proper Vendor Management – A Strategic Necessity

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By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of gleaning many insights from Cathleen Dunn, CMCA, AMS, LSM, PCAM, into this particular topic. She is the community association manager for A Pocono Country Place, a 4,500 self-contained, private residential community located in the Pocono Mountains, in Monroe County, Pennsylvania and is a member of the CAMICB Board of Commissioners.

Managing vendors is a critical component of a community association manager’s role and is essential for maintaining the physical condition, financial health, and overall satisfaction of a homeowners association, which in turn reflects the professionalism and competence of the community association manager. Properly managing and overseeing vendors ensures quality of services, cost management, legal and contractual compliance, residence satisfaction and supports efficiency and problem resolution.

“In the ever-evolving landscape of community association management, the role of reliable and vetted vendors in homeowners associations (HOAs) cannot be overstated,” said Cathleen Dunn, CMCA, AMS, LSM, PCAM. “From maintenance and landscaping to public safety and technology services, vendors are pivotal in ensuring the smooth operation and enhancement of our communities. Further, the importance of thoroughly vetting and implementing the best vendors is both a strategic necessity and a fiduciary responsibility that falls to the community association manager.”

Quality of Services Has A Lasting Impact

When essential services such as landscaping, maintenance, security, and repairs are not carried out properly, the effects can have a lasting impact. Ensuring that these vendors perform their tasks effectively and to a high standard is crucial for maintaining the community’s appearance, safety, and functionality. Poor vendor performance can lead to dissatisfaction among homeowners and potentially costly repairs in the future. Said Dunn, “Vendors responsible for maintenance, repairs, or landscaping must deliver work that meets high standards to maintain the appeal and functionality of the association. Subpar performance can lead to dissatisfaction, decreased property values, an increase in complaints, with members feeling they are not getting their money’s worth.”

Legal and Contractual Compliance Matters

Vendors operate under contracts that define the scope of work, payment terms, and performance expectations. Community association managers must oversee these contracts to ensure vendors meet their obligations. This includes handling disputes, ensuring compliance with local laws and regulations, and protecting the association from potential legal issues. “Choosing vendors with a proven track record and proper certifications minimizes the risk of legal issues, accidents, or compliance violations,” said Dunn. “The reputation of your homeowners association is influenced by the vendors you employ. High-quality vendors contribute positively to the community’s image.”

Efficiency, Problem Resolution And Risk Management

Vendors must be well-managed to ensure they are responsive to the community’s needs. Whether it’s addressing an emergency repair or completing routine maintenance, community association managers coordinate with vendors to resolve issues quickly and efficiently, minimizing disruption to residents. Further, poorly managed vendors can pose risks to the association, such as safety hazards, liability issues, or financial losses. By carefully selecting, monitoring, and managing vendors, community association managers help mitigate these risks and ensure the community operates smoothly and safely.

Ensuring Resident Satisfaction 

The services provided by vendors directly impact the quality of life for residents. For example, well-maintained common areas, timely snow removal, and responsive repair services all contribute to a positive living environment. Effective vendor management ensures these services meet residents’ expectations, which helps maintain high levels of resident satisfaction as well as property values.

Cathleen Dunn’s Tips For Properly and Thoroughly Vetting Vendors

  • Always establish comprehensive criteria for evaluating potential vendors. This should include not only cost but also experience, references, reputation, compliance with industry standards, financial stability, and licenses (if appliable). A well-defined set of criteria ensures that all vendors are assessed on a level playing field and helps in making informed decisions.
  • Solicit detailed proposals and quotes from multiple vendors. This not only provides a clearer picture of the costs involved but also offers insight into the vendors’ understanding of your needs and their approach to fulfilling them. You can then compare them – apples to apples – on a spreadsheet.
  • Craft clear, comprehensive contracts that outline the scope of work, performance expectations, deadlines, and payment terms. Include clauses for accountability, dispute resolution, impact fees, and termination conditions. A well-drafted contract protects both the association and the vendor, ensuring mutual understanding and agreement.
  • Engaging with unreliable or underperforming vendors can result in hidden costs, such as the need for frequent repairs, and additional oversight expenses. Conversely, high-quality vendors, while sometimes more expensive, often provide long-term savings through durability, efficiency, and fewer complications. A thorough vetting process helps to identify vendors who offer the best value and fit for your association’s budget.
  • Once a vendor is engaged, establish a system for monitoring their performance and documenting satisfaction or dissatisfaction. Open communication and addressing issues promptly will ensure a high level of standard is maintained.

While vendor management can be a challenging part of the job for a community association manager, when done correctly and effectively it’s a mutually-beneficial relationship with material results for all parties involved – the vendors, community association manager, and residents who reside in these condominiums, housing cooperatives, resort communities, and commercial tenant associations.

In the community association management industry, the selection and management of vendors are integral to operational success and community member satisfaction. By implementing a rigorous vetting process and engaging with high-quality vendors, the community association manager can ensure that their communities receive the best possible service, manage risks effectively, and uphold the association’s reputation. 

Added, Dunn “As industry leaders, it is our responsibility to prioritize vendor excellence and to continuously strive for improvement in all aspects of community association management and oversight.”

Resource Corner

Making use of the wide variety of professional development resources available to managers is critical to staying on top of industry news, trends, best practices and any changes arising in the profession.  Below is a sampling of industry resources.

CAI’s Professional Services Directory – a comprehensive directory that allows users to search by product or service https://caidirectory.onlinemarketbase.org/.

CAI also offers Downloadable Resources for Community Operations and Management? which include sample forms and templates on topics such as bidding and contracting, maintenance, human resource management and more – https://www.caionline.org/CommunityManagers/Pages/Gate-Sample-Forms-and-Templates.aspx.

CAI’s Research Library – a CAI members-only library that contains over 3,000 articles on community and homeowner association, and condominium and cooperative issues https://www.caionline.org/LearningCenter/ResLib/Pages/default.aspx#k=vendor%20management. For example a search for “vendor management” retrieves an article that ran in Community Manager entitled Playing Matchmaker by Shirley Haskew, CMCA, AMS with a helpful preview that states the following: Matching up vendors with the various communities in your portfolio can be a little like playing Cupid: “Five-member board seeks caring, reliable landscaping company for long-term relationship.” While some managers recommend using the same vendor to do similar work at multiple communities, sometimes at discounted prices, I’ve received the best results when I was able to match communities with complementary vendors.

Companies that offer specific software solutions, such as vendor management tools, may be worth exploring. Examples include CINC Systems https://cincsystems.com/resources/faq/what-association-managers-should-look-for-when-vetting-vendors-and-contractors/

and VendorSmart, https://vendorsmart.com/vs/#/public/home. Note: some of these companies provide free blogs with relevant articles that offer tips on a wide variety of topics from preparing your HOA for Spring, to determining the best time to explore snow removal vendors.

CAI Exchange –  An online forum that allows members to collaborate and connect with colleagues. These informal discussions are extremely helpful in sharing innovative approaches to common and uncommon situations as well as best practices and advice.  Additionally, this forum is often helpful when managers need a quick question answered: For example, this recent question was answered within hours of its posting:  Q: “We hired a painter. We didn’t know he was going to use a sub-contractor(s) painter.  Should we ask for lien waivers from the sub-contractor(s)?”  A: “Yes, always get a lien waiver from both the contractor and subs before you make your (final) payment.”

Proper Vendor Management – A Strategic Necessity is the fifth in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers.  

Lydia Pelliccia is a freelance writer. Matthew Green is executive director of Community Associations Managers International Certification Board.

The Importance of How Boards Decide Actions

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By Kelly G. Richardson, Esq., CCAL, HOA Homefront Column 

In the HOA world, corporate formalities can often seem to discourage and frustrate quick decisive action. However, there are important reasons the process must be followed, and the corporate process is a critically important legal protection for volunteers. 

Volunteer immunity from Civil Code 5800(a)(1) is limited to acts “performed within the scope” of the officer/director’s association duties. This echoes similar language commonly found in directors and officers insurance policies. Volunteers who skip the HOA approval process and act without board authority may be outside of the protections of both the statute and the insurance. This could be a disaster for volunteers who “take the bull by the horns” instead of waiting for their board colleagues to decide upon a particular action. 

Corporations are legal fictions recognized by law as “persons” with rights to own property, sue, and be sued. However, as legal fictions, corporations only act through boards, and board actions are proven through written minutes. Minutes prove that a legal commitment is the corporation’s.  Without minutes documenting corporate authority, a volunteer may not be able to prove a vendor commitment was the HOA’s and not theirs personally. While that scenario would be a nightmare for the volunteer, it can easily be avoided by waiting to sign contracts until the board approves them. Managers and volunteers should insist that board authority to act is confirmed in writing and then soon as possible is recorded in minutes.

Corporate powers come from statutes and governing documents, and actions outside that corporate authority are called “Ultra Vires,” a Latin term meaning “outside the powers.”  In business corporations, officers often are the primary deciders, but in HOAs boards are the primary decision-maker. If an officer acts outside those powers and without board approval, it is not corporate action, and the officer is exposed to risk.

Sometimes urgency requires an immediate decision to be made — such as calling an emergency contractor, for example. Boards may take emergency actions via email, under Civil Code Section 4910(b)(2). If that isn’t possible, it’s critical that directors acting for the corporation in emergencies as soon as possible obtains formal corporate approval, called “ratification” of the action taken, which ratification must be documented in minutes. 

California’s Open Meeting Act (Civil Code §4900-4955) contains many mandatory governance procedures — in addition to those in the governing documents. That law requires advance notice of board meetings, bans actions outside of board meetings, limits use of executive sessions, and requires prompt availability of draft minutes.

Boards violating the Open Meeting Act often invoke explanations of efficiency or convenience. However, boards violating the legally required corporate process by deliberating outside of open meetings may expose those decisions to legal challenge as outside the corporate authority. 

Sometimes directors step out ahead of the board in their zeal to “get things done,” acting without documented board authority. However, what if the board later disavows the director’s action, leaving the director personally exposed to that contract liability? What if it turns out that the action turns out to be a mistake and wasn’t really the best for the HOA? The board might refuse to ratify the action, leaving the director personally exposed.

Board motions, votes, and recorded minutes prove that the corporation is liable, not you. Embrace them- they protect you.

Proper Vendor Management – A Strategic Necessity

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By Lydia Pelliccia and Matthew Green, CAE

We had the privilege of gleaning many insights from Cathleen Dunn, CMCA, AMS, LSM, PCAM, into this particular topic. She is the community association manager for A Pocono Country Place, a 4,500 self-contained, private residential community located in the Pocono Mountains, in Monroe County, Pennsylvania and is a member of the CAMICB Board of Commissioners.

Managing vendors is a critical component of a community association manager’s role and is essential for maintaining the physical condition, financial health, and overall satisfaction of a homeowners association, which in turn reflects the professionalism and competence of the community association manager. Properly managing and overseeing vendors ensures quality of services, cost management, legal and contractual compliance, residence satisfaction and supports efficiency and problem resolution.

“In the ever-evolving landscape of community association management, the role of reliable and vetted vendors in homeowners associations (HOAs) cannot be overstated,” said Cathleen Dunn, CMCA, AMS, LSM, PCAM. “From maintenance and landscaping to public safety and technology services, vendors are pivotal in ensuring the smooth operation and enhancement of our communities. Further, the importance of thoroughly vetting and implementing the best vendors is both a strategic necessity and a fiduciary responsibility that falls to the community association manager.”

Quality of Services Has A Lasting Impact

When essential services such as landscaping, maintenance, security, and repairs are not carried out properly, the effects can have a lasting impact. Ensuring that these vendors perform their tasks effectively and to a high standard is crucial for maintaining the community’s appearance, safety, and functionality. Poor vendor performance can lead to dissatisfaction among homeowners and potentially costly repairs in the future. Said Dunn, “Vendors responsible for maintenance, repairs, or landscaping must deliver work that meets high standards to maintain the appeal and functionality of the association. Subpar performance can lead to dissatisfaction, decreased property values, an increase in complaints, with members feeling they are not getting their money’s worth.”

Legal and Contractual Compliance Matters

Vendors operate under contracts that define the scope of work, payment terms, and performance expectations. Community association managers must oversee these contracts to ensure vendors meet their obligations. This includes handling disputes, ensuring compliance with local laws and regulations, and protecting the association from potential legal issues. “Choosing vendors with a proven track record and proper certifications minimizes the risk of legal issues, accidents, or compliance violations,” said Dunn. “The reputation of your homeowners association is influenced by the vendors you employ. High-quality vendors contribute positively to the community’s image.”

Efficiency, Problem Resolution And Risk Management

Vendors must be well-managed to ensure they are responsive to the community’s needs. Whether it’s addressing an emergency repair or completing routine maintenance, community association managers coordinate with vendors to resolve issues quickly and efficiently, minimizing disruption to residents. Further, poorly managed vendors can pose risks to the association, such as safety hazards, liability issues, or financial losses. By carefully selecting, monitoring, and managing vendors, community association managers help mitigate these risks and ensure the community operates smoothly and safely.

Ensuring Resident Satisfaction 

The services provided by vendors directly impact the quality of life for residents. For example, well-maintained common areas, timely snow removal, and responsive repair services all contribute to a positive living environment. Effective vendor management ensures these services meet residents’ expectations, which helps maintain high levels of resident satisfaction as well as property values.

Cathleen Dunn’s Tips For Properly and Thoroughly Vetting Vendors

  • Always establish comprehensive criteria for evaluating potential vendors. This should include not only cost but also experience, references, reputation, compliance with industry standards, financial stability, and licenses (if appliable). A well-defined set of criteria ensures that all vendors are assessed on a level playing field and helps in making informed decisions.
  • Solicit detailed proposals and quotes from multiple vendors. This not only provides a clearer picture of the costs involved but also offers insight into the vendors’ understanding of your needs and their approach to fulfilling them. You can then compare them – apples to apples – on a spreadsheet.
  • Craft clear, comprehensive contracts that outline the scope of work, performance expectations, deadlines, and payment terms. Include clauses for accountability, dispute resolution, impact fees, and termination conditions. A well-drafted contract protects both the association and the vendor, ensuring mutual understanding and agreement.
  • Engaging with unreliable or underperforming vendors can result in hidden costs, such as the need for frequent repairs, and additional oversight expenses. Conversely, high-quality vendors, while sometimes more expensive, often provide long-term savings through durability, efficiency, and fewer complications. A thorough vetting process helps to identify vendors who offer the best value and fit for your association’s budget.
  • Once a vendor is engaged, establish a system for monitoring their performance and documenting satisfaction or dissatisfaction. Open communication and addressing issues promptly will ensure a high level of standard is maintained.

While vendor management can be a challenging part of the job for a community association manager, when done correctly and effectively it’s a mutually-beneficial relationship with material results for all parties involved – the vendors, community association manager, and residents who reside in these condominiums, housing cooperatives, resort communities, and commercial tenant associations.

In the community association management industry, the selection and management of vendors are integral to operational success and community member satisfaction. By implementing a rigorous vetting process and engaging with high-quality vendors, the community association manager can ensure that their communities receive the best possible service, manage risks effectively, and uphold the association’s reputation. 

Added, Dunn “As industry leaders, it is our responsibility to prioritize vendor excellence and to continuously strive for improvement in all aspects of community association management and oversight.”

Resource Corner

Making use of the wide variety of professional development resources available to managers is critical to staying on top of industry news, trends, best practices and any changes arising in the profession.  Below is a sampling of industry resources.

CAI’s Professional Services Directory – a comprehensive directory that allows users to search by product or service https://caidirectory.onlinemarketbase.org/.

CAI also offers Downloadable Resources for Community Operations and Management? which include sample forms and templates on topics such as bidding and contracting, maintenance, human resource management and more – https://www.caionline.org/CommunityManagers/Pages/Gate-Sample-Forms-and-Templates.aspx.

CAI’s Research Library – a CAI members-only library that contains over 3,000 articles on community and homeowner association, and condominium and cooperative issues https://www.caionline.org/LearningCenter/ResLib/Pages/default.aspx#k=vendor%20management. For example a search for “vendor management” retrieves an article that ran in Community Manager entitled Playing Matchmaker by Shirley Haskew, CMCA, AMS with a helpful preview that states the following: Matching up vendors with the various communities in your portfolio can be a little like playing Cupid: “Five-member board seeks caring, reliable landscaping company for long-term relationship.” While some managers recommend using the same vendor to do similar work at multiple communities, sometimes at discounted prices, I’ve received the best results when I was able to match communities with complementary vendors.

Companies that offer specific software solutions, such as vendor management tools, may be worth exploring. Examples include CINC Systems https://cincsystems.com/resources/faq/what-association-managers-should-look-for-when-vetting-vendors-and-contractors/

and VendorSmart, https://vendorsmart.com/vs/#/public/home. Note: some of these companies provide free blogs with relevant articles that offer tips on a wide variety of topics from preparing your HOA for Spring, to determining the best time to explore snow removal vendors.

CAI Exchange –  An online forum that allows members to collaborate and connect with colleagues. These informal discussions are extremely helpful in sharing innovative approaches to common and uncommon situations as well as best practices and advice.  Additionally, this forum is often helpful when managers need a quick question answered: For example, this recent question was answered within hours of its posting:  Q: “We hired a painter. We didn’t know he was going to use a sub-contractor(s) painter.  Should we ask for lien waivers from the sub-contractor(s)?”  A: “Yes, always get a lien waiver from both the contractor and subs before you make your (final) payment.”

Proper Vendor Management – A Strategic Necessity is the fifth in a series of articles, produced by CAMICB staff, that delve into the important issues and topics affecting community association managers.  

Lydia Pelliccia is a freelance writer. Matthew Green is executive director of Community Associations Managers International Certification Board.

Are Director Speeches and Consent Calendars OK for our HOA?

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By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Mr. Richardson: I really enjoy your HOA Homefront column. Here’s a question: Is it appropriate for board members to use homeowner time to make speeches? We have a board member who likes to do that — often disparaging owners who have different opinions from hers. Thank you, A.M., San Diego

Dear A.M.: Open forum is not the time for the board members to talk, but is their time to LISTEN. They should be noting any questions or action items that need to be answered or directed to management or a committee. The Open Meeting Act prohibits directors from discussing (or orating) on matters not disclosed on the agenda, per Civil Code Section 4930(a). However, subparts (b) and (c) of Section 4930 allow directors to answer questions or request matters be referred to management, staff, or a committee, which should happen AFTER open forum ends. Board members who abuse open forum by interrupting members cannot fairly insist that homeowners in the audience not interrupt board deliberations. Finally, it’s bad form to use one’s board seat as a platform to bully or criticize other members. Sounds like someone should gently rein this person in a bit. Best, Kelly

Dear Kelly: In an attempt to make board meetings brief, they have taken to voting the “consent calendar” as one agenda item, without any prior members’ knowledge, discussion or even speaking the items on it. This month these include: approve the minutes; acknowledgement that board members have reviewed the financials; treasurer’s report; and manager’s report. These reports are provided to the board by the treasurer and manager prior to the meeting. They are then adopted by the Board at the meeting always without discussion or disclosure of the contents. The reports are then attached as separate PDFs to the minutes of the meeting which are provided to the members a few days after the meeting. Should not these reports be seen by the members before the Board votes on them? How can this square with the open meeting rules or intent? R.S., Solana Beach

Dear R.S.: Consent calendars are a powerful tool to dispose of items not expected to require any discussion – such as the items you list- in one quick vote without deliberation. The consent calendar items still must be listed on the posted agenda, and any director can without explanation ask for an item to be removed and handled as a separate motion. Since consent calendar items are not discussed, it is another reason to conduct open forum at the beginning of the meeting. However, reports the board receives in their “board packets” are not normally shared with the rest of the HOA unless those reports are accepted and added to the minutes. Sometimes the board packet has confidential information such as multiple bid proposals, or incident reports, or delinquency lists, which should not be shared with the community at large.

Consent calendars are valuable because they preserve time and energy for the items which might be controversial and need board focus. Even the smallest HOAs would benefit from their use. One caution – don’t overuse consent calendars as a technique to avoid discussing matters which are not truly routine or non-controversial, because that can quickly destroy a board’s credibility. Nothing is more important than the HOA’s trust in their board.

Sincerely, Kelly

Is Our Board Following the Open Meeting Act?

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By Kelly G. Richardson, Esq., CCAL, HOA Homefront Column

Mr. Richardson: Is homeowner open forum a requirement in California or just handy for everyone involved? Or, should I speak with each board member individually to ask for that time in the monthly board meetings? Or, is that only an agenda item at the yearly membership meeting? S.L., El Centro.

Dear S.L.: An open forum opportunity is required by Civil Code Section 4925 in all open board meetings and in membership meetings. This is mandatory. The board “shall” establish a reasonable time limit for members to speak. A common limit is 3 minutes per speaker, with many boards allocating up to 30 minutes for the open forum session portion of the meeting. It’s also a good idea to establish some reasonable open forum policies so attendees know what is expected.

Open forum is not only required but is a valuable opportunity for boards to hear from their members; their neighbors. It’s an important aspect of healthy HOA governance, showing that members are heard. Best, Kelly

Dear Kelly: I learned that our board authorized themselves to approve non-emergency expenses up to a stated amount between meetings if two or more directors agree to it. Isn’t this a violation of the Open Meeting Act? There have been items such as holiday lighting that never appeared on the agenda or reflected in minutes due to this self-imposed power. L.C., Anaheim Hills.

Dear L.C: The board should avoid granting directors blanket authority to spend funds outside of official board meetings. If the board does so, then decisions are being made outside of board meetings. Corporations Code Section 7210 allows the board to delegate certain activities to the manager, a committee, or other persons but the board still must ultimately be in control. So, at minimum those decisions should be disclosed and ratified by the board in its next open meeting. I suspect many of your neighbors may agree with you that your board’s current practice is not transparent. I can understand the practice if your HOA does not have a professional manager, but otherwise I think it’s a bad idea. Sincerely, Kelly.

Kelly: Our HOA board members have discussions and decide who will serve as president, VP, etc prior to a board meeting.  This occurs annually in preparation for the new term and in some cases, before the election of board members and/or after the election of board members but before their first meeting.  Should these discussions and decisions be part of the open meeting and should these discussions and decisions occur outside of board meetings? Thank you, L.O., Nipomo.

Dear L.O.: The selection of officers is not a topic permitted for executive session under Civil Code Section 4935(a). Some boards mistakenly refer to officer discussions as “personnel” (one of the few topics allowed to be handled in closed sessions) but “personnel” refers to HOA employees. Officer appointments are decisions of the board and must be made in open session. A common mistake after annual meetings is to forget to announce four days before that after the election there will be a short board meeting to elect officers. If the board does not wish to have a meeting (with agenda notice and open forum opportunity) right after the membership meeting, then it should hold off on electing officers until its next announced meeting. Best, Kelly.

Manager Qualifications- How Do I Know?

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By Kelly G. Richardson, Esq., HOA Homefront Column

California HOA managers are unregulated, with no required license or minimum education. Rental managers must have real estate broker licenses, but not HOA managers. There is a wide range of qualification and experience in the profession, so finding indications of superiority is important.

California has a purely voluntary designation from Business and Professions Code 11502, which defines a “Certified Common Interest Development Manager” as one who received 30 class hours in designated topics from a professional association of HOA managers. Section 11504 requires managers to annually disclose whether they are “Certified” and prohibits false claims of “certified” status.

Four organizations educate and credential California managers: Institute of Real Estate Management (“IREM”); California Association of Community Managers (“CACM”), Community Association Manager International Certification Board (“CAMICB”), and Community Associations Institute (“CAI“). 

IREM is a national organization, with about 20,000 manager members, offering education and various property management credentials. Its managers are mostly non-residential, but over 300 California managers hold the “Accredited Residential Manager (ARM)” credential. The ARM requires 45 class hours in either rental property management or CID management and passing a half-day examination. The ARM does not qualify for “Certified” status in California.

CACM is a California organization which was founded in 1991 by a group of veteran HOA managers. Presently 1,437 of CACM’s 1,893 active manager members hold its Certified Community Association Manager (“CCAM”) credential. The CCAM requires 36 class hours and qualifies managers as “Certified.” CACM has a more advanced credential, the Masters of Community Association Management (“MCAM”), which involves 5 years minimum of CCAM status, an extensive written exam, a written case study analyzing an HOA and oral presentation, and 28 more class hours. Six managers are CACM MCAMs.

CAMICB administers the “Certified Manager of Community Associations (CMCA”)” credential. Originally affiliated with CAI when formed in 1995, the organization is now an independent credentialing body.  Attaining the CMCA requires either two and a half days of instruction, five years’ experience, or the CCAM credential, and passing a 120-question exam. California currently has 1,270 CMCA managers. 

The Community Associations Institute consists of 64 chapters, including 8 in California. Founded in 1973, CAI trains managers in the United States, Canada, Australia, South Africa, and United Arab Emirates. CAI offers three credentials: “Association Management Specialist (AMS)”, “Professional Community Association Manager (PCAM)” and the “Large-Scale Manager (LSM)”. The AMS credential requires attaining the CMCA credential, two years’ experience, and two additional days of classes. Currently, 770 California managers hold this credential. Managers holding the AMS designation qualify as “Certified” in California after taking CAI’s 8-hour California law course.

The highest widely-established general management credential is CAI’s PCAM designation. This requires five years’ experience, almost 100 total class hours, and preparation of a 100–200-page exhaustive study of a large HOA. About 80% of applicants achieve the PCAM on their first attempt. 281 California managers currently hold this credential. Larger or higher profile properties may prefer PCAMs or those working toward it. The LSM credential requires a PCAM and additional education regarding large associations.

Ask about designations, and make sure YOUR manager holds an earned credential (not just anyone in their office). Demonstrated achievement in professional education is helpful in evaluating prospective managers.

[Information: www.irem.org, www.cacm.org, and www.caionline.org.]

Upholding High Ethical Standards

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CAMICB Updates Its CMCA Standards of Professional Conduct and Enforcement Procedures

By CAMICB Executive Director, Matthew Green, CAE

A key component of CAMICB’s Credentialing Program requires a Certified Manager of Community Associations (CMCA) to adhere to a high standard of ethical conduct. This means CMCA credential holders must comply with the 10 CMCA Standards of Professional Conduct, which are designed to ensure that managers uphold their fiduciary responsibilities and comply with laws, governing documents, and professional integrity.?

CAMICB recently conducted a thorough review of the CMCA Standards of Professional Conduct as part of its regular cycle to ensure these critical elements of the CMCA certification program continue to align with industry standards and best practices. In addition, the review was designed to ensure that the standards remain relevant and applicable to the evolving demands of the community association management industry, both domestically and globally. While some changes were made to the standards themselves, the most significant updates are found within the accompanying clarification document. This document provides detailed guidance on the practical application of the standards, ensuring they are interpreted and enforced consistently. By modernizing the standards and clarifications, CAMICB ensures that CMCAs are held to up-to-date ethical standards while addressing global applicability and evolving industry standards. 

Said Greg Smith, CMCA, AMS, PCAM, Chair of the CAMICB Board of Commissioners, “These revisions reflect a commitment to maintaining high ethical standards and professionalism for CMCA credential holders while incorporating more explicit guidance on fiduciary responsibilities, conflict-of-interest disclosures, and data security practices.”

A summary of the key changes and updates follows:

Standard 1: Global Applicability and Compliance

The changes to Standard 1 make the policies globally applicable by removing jurisdiction-specific references.

Standard 6: Gratuities, Compensation and Disclosure

The changes to Standard 6 strengthen the requirements for disclosure of gratuities and compensation to enhance transparency while reducing the likelihood of conflicts of interest.

Standard 7: Continuing Professional Education

The updates to Standard 7 further emphasize the need for continuous education aligned with CMCA recertification. 

Standard 8: Fiduciary Duty

The changes to Standard 8 clarify the expectations around fiduciary duty by detailing what constitutes a breach.

Standard 9: Professional Conduct and Violations

The revisions to Standard 9 shift the focus from defining what constitutes a breach of due diligence to emphasizing the expectation of maintaining professional conduct at all times.

Standards 10: Records, Confidentiality, and Data Security

The updates to Standard 10 focus on the handling of client records, particularly the secure management of electronic data, in line with current data security practices. 

“These updates ensure that CMCA credential holders are equipped to meet the evolving demands of the community association management industry, reinforcing the value and trust associated with the CMCA credential,” added Smith.

CMCAs are encouraged to review the updated standards and the clarification document thoroughly to ensure their practices continue to align with CAMICB’s expectations for ethical conduct and professionalism. By staying informed on these updates, CMCAs can confidently uphold the high standards required for maintaining their credential and serving their communities effectively.

About The Standards Of Professional Conduct

The Standards of Professional Conduct, detailed at https://www.camicb.org/standards/, range from understanding laws applicable to community association management, to being knowledgeable on association policies and procedures, to carrying out fiduciary responsibilities, and participating in continuing education coursework. A violation of any of these Standards of Professional Conduct may be grounds for administrative action and possible revocation of the CMCA certification by CAMICB.  Abiding by these Standards of Professional Conduct help protect consumers and associations that hire or contract with community association managers. 

Enforcing the Standards of Professional Conduct

In order to maintain and enhance the credibility of the CMCA Certification Program, the CAMICB Board of Commissioners follow strict procedures that allow consumers and others to bring complaints concerning CMCAs to the Board. Similar to a regular review of the Standards of Professional Conduct, CAMICB also reexamined the procedures for suspending and revoking certification every two years. 

Through this process, CAMICB enhanced its procedures for reviewing, suspending, and revoking certifications to ensure they reflect the latest industry standards. These improvements underscore our commitment to maintaining the highest level of professional conduct and ensuring our processes remain transparent, fair, and aligned with global best practices.

More information, including a set of Frequently Asked Questions, a list of the 10 clearly outlined Standards of Professional Conduct, the procedures for enforcing the standards, and other pertinent documents, can be found at https://www.camicb.org/standards/.

HOA Homefront: Why is HOA living and governance so HARD

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By KELLY G. RICHARDSON | kelly@roattorneys.com | Contributing Columnist for the LA Daily News

Living in HOAs and governing HOAs can seem frustrating at times, but there are reasons for that frustration, and sometimes recognizing the issues helps.

Property independence

Our society highly prizes the independent ownership of land. The “my home; my castle” philosophy is uniquely strong in the American culture, and it’s hard for us to embrace shared ownership of property.

However, for over 50 years, economic forces have pushed the American public increasingly to common interest communities to make property ownership affordable with amenities in desirable living locations. Many cultures around the world have few problems with the concept of shared control of property, but we haven’t fully embraced it yet.

Failure to embrace the trade-offs

What makes common interest communities work is the tradeoff of shared benefits for shared control. It’s great to be able to use a tennis court or a nice clubhouse, but it’s not mine, it’s OURS. That means the individual doesn’t have control over management of the court or clubhouse. Homeowners who enjoy HOAs the most are those who recognize and appreciate that trade-off.

Failure to read governing documents

The Covenants, or “CC&Rs” operate as an agreement that automatically binds all owners in the HOA. This is very powerful document, with provisions enforced by California courts unless there is a specific legal reason not to do so. However, many HOA homebuyers never bother to read through the CC&Rs before agreeing to close escrow.

Only later, after getting a violation letter from the HOA do they learn that, for example; recreational vehicles cannot be parked in driveways, that pets or rentals are subject to limitations, or that certain aspects of the home cannot be altered without HOA permission.

HOA CC&Rs, bylaws, and rules should be reviewed by homebuyers before their cancellation rights cease, to avoid major surprises that can change the way the homebuyer might have expected to own in that HOA.

Believing myths

One very common HOA problem is the homeowner who “shoots first, and asks questions later” regarding alterations of their property or common area around their property.

There is a reported appeal case in Southern California upholding a judge’s order that a homeowner dismantle the second story they had added to their house (in violation of the CC&Rs) and that they pay the HOA’s attorney fees.

Some people think that once they’ve moved a fence or changed their driveway that it will be harder for the HOA to challenge it, which often proves to be a very expensive mistake.

“Me” instead of “we”

Brilliant and otherwise highly accomplished people can become highly negative factors in their HOA because either as a homeowner or a director they focus only on their own desires and interests and base their comments, actions, and decisions on that focus.

If one only wants to focus on their own desires and has no time for anyone else’s values, opinions, or desires, that person will not do well in the common interest community housing model – as a homeowner or volunteer leader.

Here’s hoping these help toward better understanding and neighborliness in your community!

Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com .

HOA Homefront: Why is HOA living and governance so HARD

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By KELLY G. RICHARDSON | kelly@roattorneys.com | Contributing Columnist for the LA Daily News

Living in HOAs and governing HOAs can seem frustrating at times, but there are reasons for that frustration, and sometimes recognizing the issues helps.

Property independence

Our society highly prizes the independent ownership of land. The “my home; my castle” philosophy is uniquely strong in the American culture, and it’s hard for us to embrace shared ownership of property.

However, for over 50 years, economic forces have pushed the American public increasingly to common interest communities to make property ownership affordable with amenities in desirable living locations. Many cultures around the world have few problems with the concept of shared control of property, but we haven’t fully embraced it yet.

Failure to embrace the trade-offs

What makes common interest communities work is the tradeoff of shared benefits for shared control. It’s great to be able to use a tennis court or a nice clubhouse, but it’s not mine, it’s OURS. That means the individual doesn’t have control over management of the court or clubhouse. Homeowners who enjoy HOAs the most are those who recognize and appreciate that trade-off.

Failure to read governing documents

The Covenants, or “CC&Rs” operate as an agreement that automatically binds all owners in the HOA. This is very powerful document, with provisions enforced by California courts unless there is a specific legal reason not to do so. However, many HOA homebuyers never bother to read through the CC&Rs before agreeing to close escrow.

Only later, after getting a violation letter from the HOA do they learn that, for example; recreational vehicles cannot be parked in driveways, that pets or rentals are subject to limitations, or that certain aspects of the home cannot be altered without HOA permission.

HOA CC&Rs, bylaws, and rules should be reviewed by homebuyers before their cancellation rights cease, to avoid major surprises that can change the way the homebuyer might have expected to own in that HOA.

Believing myths

One very common HOA problem is the homeowner who “shoots first, and asks questions later” regarding alterations of their property or common area around their property.

There is a reported appeal case in Southern California upholding a judge’s order that a homeowner dismantle the second story they had added to their house (in violation of the CC&Rs) and that they pay the HOA’s attorney fees.

Some people think that once they’ve moved a fence or changed their driveway that it will be harder for the HOA to challenge it, which often proves to be a very expensive mistake.

“Me” instead of “we”

Brilliant and otherwise highly accomplished people can become highly negative factors in their HOA because either as a homeowner or a director they focus only on their own desires and interests and base their comments, actions, and decisions on that focus.

If one only wants to focus on their own desires and has no time for anyone else’s values, opinions, or desires, that person will not do well in the common interest community housing model – as a homeowner or volunteer leader.

Here’s hoping these help toward better understanding and neighborliness in your community!

Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com .

CITY OF WASHOUGAL LAUNCHES HOA AND NEIGHBORHOOD REGISTRY

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Lacamas Magazine

Washougal, WA — The City of Washougal is excited to announce the launch of its Homeowners Association (HOA) and Neighborhood Registry, aimed at fostering stronger community connections and enhancing local communication. Washougal is comprised of roughly 200 neighborhoods with their own unique character and appeal.

The registry allows HOAs and neighborhood associations to officially register with the city, providing a centralized resource for residents to access information about community organizations. Residents are encouraged to register their associations online to stay informed about city programs, initiatives, and opportunities for collaboration. The city is committed to supporting neighborhoods and strengthening community ties through this new initiative.

“Woven together to create a distinct tapestry, each neighborhood brings its own beauty, its own charm, and identity to the overarching community,” said Sherry Montgomery, Community Aesthetics Program Coordinator. “This registry is a fantastic opportunity for neighborhoods to connect and collaborate. We believe that by working together, we can enhance the beauty and spirit of our community.”

For more information and to fill out the registration form, please visit https://cityofwashougal.us/789/HOA-Neighborhood-Registry.