Blog

Parametric insurance to the rescue 

By Austin James, CPCU, ARM 

This article first appeared in The Communicator, Spring 2021. To read more, click here.  

Every year our country experiences catastrophic weather threats in a variety of forms. This could come from hurricanes, wildfires, hail storms, earthquakes, and blizzards. Many of these events can cause damage that reaches into billions of dollars. There are a lot of insurance companies that protect against these catastrophic claims; however, most have high deductibles and there are a lot of exclusions. A product has arisen in the marketplace to fill the coverage gaps excluded by traditional insurance and help to pay for losses beneath the deductible: parametric insurance.

How Does Parametric Insurances Differ From Our Current Insurance?

Parametric insurance is an index-based insurance product that has been around for decades in the reinsurance space. Its goal is to provide immediate funds to the policy holder when a specific eve...

Tackling the uncertainties: best practices for bidding, budgeting, and contracting in HOA projects.

By Regan Brown and Chris Sigler, B.S.C.E., CDT

This article first appeared in The Communicator, Spring 2021. To read more, click here.  

Over the past four years, skyrocketing construction costs have created various forms of havoc throughout the construction industry, to the surprise of many HOAs in need of project work. The increases have taken on various forms. In 2017-18, a strong economy and a demand for housing fueled a labor shortage, showing an overall increase of almost 30 percent in construction costs nationwide; in 2019, political tariffs and multiple natural disasters fueled the next wave of increases, this time affecting material costs.

The Pandemic’s Impact On Cost Increases

2020, the year that will go down in history for the global pandemic, brought several new factors creating price changes that we had not experienced before. When the shelter in place orders started i...

By Ritchie Lipson, Esq. and Scott Thomson, Esq

This article first appeared in The Communicator, Spring 2021. To read more, click here.  

Effective communication within a homeowners association is always important. Once an association brings a construction defect action against the builder, communication and cooperation among the board, community association manager, and the construction defect attorney become essential. However, with the outbreak of COVID-19, communication and cooperation regarding construction defects will most likely remain permanently changed.

A construction defect action by a homeowners’ association usually begins with a Notice of Commencement of Legal Proceedings under the Calderon Act (Civil Code § 6000 et seq.), which concurrently meets the need for a Notice of the Claim pursuant to SB800. However, before the attorney may prepare such notice, he or she must investigate the defects in the community and discuss the identified defects with the board and the comm...

Dealing with homeowner anxiety and complaints about neighbors or the association.

By Sandra L. Gottlieb, Esq., CCAL

This article first appeared in The Communicator, Spring 2021. To read more, click here.  

Karens became famous in 2020. If you don’t know what a Karen is, it’s a special breed of entitled person. Karen hates everything and everyone, including your dog, trees, the association, and association assessments. She’s a stickler for rules, but they don’t apply to her. A meme was going around social media recently stating that a group of Karens is called a homeowners association. We who work in the industry know that there are some power-hungry, rules-obsessed, self-dealing board members out there, but those of us who participate in CAI aren’t among them; we value education and look to strengthen community.

We don’t want managers and board members to be seen as Karens; you all work too hard for your correct labels. Remember that proactive communication can reduce homeowner anx...

By Janet Quinn-Dennis

This article first appeared in The Communicator, Winter 2021. To read more, click here. 

Early in my career I realized that I was frustrated with many of the laws that affected the CID industry. Case law, as well as legislative law, seemed ineffective at holding back the tide of special interest groups that wanted to have a say in the way our homeowners and directors lived their lives.

Then, sometime in the mid-1980s, I was introduced to a mentor who would show me ways in which I could legislatively direct my passion for this industry. This person was the one and only Beth Grimm. She was heavily involved in CAI’s California Legislative Action Committee (CLAC). Beth served as a delegate for the Bay Area/Central Chapter, as well as the PR chair on the Executive Committee. She encouraged me to participate on the local Legislative Support Committee (LSC) at that time and introduced me to other statewide delegates.

The hook was set during my first Legislative Day a...

By Ritchie Lipson, Esq., Brittany Grunau, Esq., and J. Scott Friesen, P.E.

This article first appeared in The Communicator, Winter 2021. To read more, click here. 

As COVID-19 continues to spread throughout the population and the scientific community is still researching the many unknowns of the virus, it is vital that managers and boards of directors are diligent in their maintenance of buildings so as to keep occupants safe as well as to avoid potential liability. An open letter supported by 239 scientists, dated July 6, 2020, stated that there is a "real risk" that the coronavirus can be airborne. (Morawaska L, Milton, D. It is Time to Address Airborne Transmission of COVID-19, July 6, 2020). While there is little information known on ventilation and filtration requirements and the impact on the spread of COVID-19, it can be reasonably inferred that knowledge of how your system works and reacting accordingly could be an important mitigation factor. Maintenance of HVAC systems and ...

By Nathan R. McGuire, Esq.

This article first appeared in The Communicator, Winter 2021. To read more, click here. 

For the last two legislative sessions, we have faced some of the most historically significant bills since the Davis-Stirling Act. And that’s saying a lot considering the Davis-Stirling Act has probably been amended more than a hundred times since it was enacted in 1986. This year was especially challenging on legislators, advocates, and citizens wishing to engage in the process, given the impact of the coronavirus pandemic on the legislative process. It has also demonstrated the need for modernizing the Davis-Stirling Act by allowing for the use of mainstream technology, which has become commonplace in our everyday lives.

Because of the pandemic, the legislature shifted its focus to the coronavirus, economic recovery, and housing affordability issues. Other bills, like the ones pushed by CAI’s California Legislative Action Committee (CAI-CLAC), including a bill to clean...

Not anymore. New law gives property owners the right to build second homes on their properties.
By Lisa Esposito

To Increase Affordable housing in California, Governor Newsom signed legislation that encourages homeowners to convert their garages into living spaces and build small dwelling units in their backyards as low-income rentals. On January 1, 2020, new laws went into effect voiding restrictions in planned developments that would prevent the construction of granny flats and the conversion of garages into rental units.

From the Homeowner's Perspective, California's New Laws: 

• make available an affordable type of home to construct in California because they do not require paying for land, major new infrastructure, structured parking or elevators
• can provide a source of income for homeowners
• allow extended families to be near one another while maintaining privacy
• can provide as much living space as many condominiums; and they’re well-suited for couples, small families, friend
...

By Grant Shetron, President

It is a privilege to serve as your in-coming Chapter President. Reflecting on the challenges of the last year, which number many due to the pandemic. I am proud of the way our chapter has remained resilient and even managed to find pockets of success in the face of adversity. Most notably we led the way and co-hosted the first ever all California Virtual Legal Forum and Expo and ended the year with a little fun and quirkiness via a virtual holiday party.  Meanwhile, our chapter membership has remained largely intact, which is a testament to all of YOU. Thank you for your continued support of the chapter and commitment to the industry at large.

As we prepare to usher in a New Year, we do so with cautious optimism and our 2021 schedule of events is a reflection of that, whereby virtual events will continue through July and we hope to resume in person meetings starting in August.  The full events schedule is now available on the chapter website at caibaycen.c...

By Melissa Bauman Ward, Esq. 

WHEN IS A common area disturbance more than a passing nuisance? When a person who is mentally ill engages in harassing behavior toward others, thus elevating a simple argument into a fair housing claim. As with any situation where competing rights are involved, managing these situations requires a detailed analysis of what rights and obligations are in play and the best way to respond to the various needs while protecting the association from liability.

IS MENTAL ILLNESS A DISABILITY THAT REQUIRES REASONABLE ACCOMMODATION?

As a "housing provider" under fair housing laws, an HOA must provide reasonable accommodations to disabled persons. A mental illness or impairment constitutes a disability if the condition "substantially limits one or more major life activities (e.g., caring for oneself, speaking, learning, working); or the person has a record of such an impairment; or the person is regarded as having such an impairment.¹ For our purposes, the covered...