The Communicator - Volume 1, Issue 4 - (Page 7)

president’s message By Ric Perez, CCAM AS WE CONTINUE to struggle, as an industry, through economic difficulties coming on the heels of the downturn in the housing market and spiraling foreclosures, a primary responsibility and perhaps main function and concern for board members, managers, and homeowners alike remains: repair and/ or replacement maintenance of common areas and building envelopes/ exteriors. The budget process typically addresses these concerns as outlined in and mandated by an association’s governing documents (CC&Rs or bylaws) and the California Civil Code 1366 (as relates to the levying of assessments). As with age, here comes the wrinkle(s). How do a board and HOA strapped with mounting receivables (yet to be paid or worse—uncollectible assessments) continue to fulfill their obligations with respect to maintenance requirements? In a vast majority of instances, property values are not being adversely impacted solely by high assessment levels and market conditions, but rather increasing bad debt, insufficient reserve funding, and lack of consistent and proper maintenance of common area components. Many times over the years boards have declared that they don’t want to raise the assessment levels because the other owners will become angered. Deferring maintenance (for such a political reason) is not an alternative, and doing so only serves to place an association further behind the proverbial eight ball for future boards and owners (wishing to sell or buy). Many of you are familiar with the “Business Judgment Rule”; it is experiencing its strongest testing in over a decade. Given the fiduciary duties required of boards as they pertain to the reasonable care in managing and operating these associations as a “prudent business person” would, how can we continue to rely on informed decisions, fairness, uniformity, good faith, etc., while/ when the life blood of an association (assessment collection) dries up around you? Remember we are talking about volunteer board members who in many cases must rely (and rightfully so) on outside expertise to help guide them through these difficult times. I fear we have come to take for granted, in some instances, just how important and critical those vendor-client relationships are. Many affiliates (attorneys, CPAs, construction companies, painters, etc.) are all aware of the crisis in the common interest development (CID) industry and yet continue to support it, their peers, and even their own competition. These business professionals deserve even more of our mutual respect for not only remaining “in the trenches” with us, but in many instances attempting to work through the financial hardships and skyrocketing product increases being suffered by its clients. These are but two of the many reasons why an organization like CAI is so vital to the common interest development industry and its related affiliates, as we continue to cull from years of experience and thinking “outside the box” to present timely and informative seminar programs, events and courses to our members. Hopefully you will find a useful article included in this edition of The Communicator, which might be applicable to a scenario you currently are experiencing or foresee happening in your own community. We can’t encourage you enough to utilize the expertise and multitude of tools and resources available to assist you in your own endeavors as managers, board members and homeowners servicing or living in a CID. You might ask, “How can I best take advantage of these programs and benefits?” Well, (shameless plug here) become a CAI member and join the growing list of various volunteers and professionals who continue to commit their time and energies to the sharing of information, protection, advancement and education of those who own and/or serve in a CID. For more details, please feel free to contact me or Kelvin Nanney, CMP, at kelvinn@meetingpossibilities.com. In closing, it has been an enriching, challenging, and eye-opening experience to be serving this year as the Bay Area Chapter and Central California president. I have been truly honored and humbled. I look forward to continue to serve you as our president-elect Nikki Affinito prepares to assume leadership of the chapter in January 2009. Thank you all for your continued generosity, faith, and support. Sincerely, Ric Perez, Branch Manager, CCAM Massingham and Associates Management, Inc ricp@massingham.com The Communicator • 7

Table of Contents Feed for the Digital Edition of The Communicator - Volume 1, Issue 4

The Communicator - Volume 1, Issue 4 Contents President’s Message The Art of Maintenance Deferred Maintenance – What Do We Do Now? What’s New in Paint Products and Building Materials 2008/2009 Events & Educational Calendar Welcome to CAI BayCen Index to Advertisers

The Communicator - Volume 1, Issue 4

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