Wednesday, July 12, 2006

New Legislation for 2006

The following represents a summary of the changes in the law this year. An outline of these laws, explained in more detail, will be made available to each of you in your July management reports. If I can assist in answering any questions, please call me anytime. You may reach me at extension 125 or eanghel@tcpm.net.

House and Senate Bills that have been signed by the Governor are effective 90 days after the legislation session ends. Therefore, the below laws are effective September 21, 2006:

SB1007 & HB2824: Notice of Violations – Before the association can take action against the owner to enforce the provisions of the association’s documents regarding the condition of the owners property, the association must provide the owner written notice of the violation before ANY action even if a fine is not imposed. Certain information must now be included in the notice: the provision of the documents that has allegedly been violated, the date of the violation or date observed, the first and last name of the person who observed the violation, and a description of the process the owner must follow to contest the notice.

After the above information is provided, the owner may respond to the notice by certified mail within 10 days.

If the Associations does not include the above four required pieces of information in the initial notice, the Association cannot enforce the documents or collect attorney fees until after the 10 day period lapses for the owner to send the certified letter.

SB1007: Foreclosures – The Association may only foreclose an assessment lien if the owner has been delinquent for a period of one year or if the delinquency reaches $1,200, whichever occurs first.

SB1007: Books and Records Inspection – The changes to the already existing law clarify that an Association can NOT charge a member for making documents available for review. Management companies that charge for this fee may continue to do so, but cannot pass this expense on to the requesting member. An association will have ten business days to fulfill a request for examination and has ten business days to provide copies, if requested, and can charge no more than 15 cents per page. This Bill also removes documents related to “contemplated litigation” from the types of documents that can be shielded from a requesting owner. Documents related to “pending litigation” can be shielded.

HB2005: Parking - This Bill pertains to planned communities only (not condominiums). The current law allows some vehicles to be to be parked in the streets or driveways regardless of the association documents. This new law expands the type of vehicles protected by the statute. Specifically, the law adds vehicles driven by an employee of a municipal utility that is required to work n electrical or water infrastructure.

SB1055: Flags – In addition to the American flag, the association cannot prohibit the outdoor display of the following: an official or replica of a flag of the US Army, Navy, Air Force, Marine or Coast Guard, the POW/MIA flag, the AZ State flag, or an AZ Indian Nations Flag.

SB1138: Condominium Common Elements – When an Association conveys real property that it owns but is not part of the common elements of the condominium, it must obtain approval from a certain percentage of the membership.

SB1007: Closed Board of Directors Meetings – The law clarifies the already existing law as it relates to the subject matter of closed board meetings related to personal, health or financial information. In addition to the right to meet in closed session to consider these topics, the board can meet in closed session to review the records related to those items.

HB2824: Administrative Law Judge Hearings – The new law creates an administrative process through which an administrative law judge “ALJ” will have jurisdiction to hear disputes between an owner and an association regarding the association documents and the statues governing associations. Either the homeowner or the association may file a petition. The “ALJ” will have the authority to compel a party to abide by the association documents or applicable statutes.

Elaine Anghel, PCAM, AMS, CMCA, CAAM
General Manager

Certifications & Designations: Their Significance & Meaning

The Management Team at Tri-City proudly displays their certifications and designations for both the company and their employees. Each one of our managers is required to obtain a certification and to participate in ongoing continuing education requirements in order to uphold their designations.

Below is a list of acronyms that you will see after your manager’s title and a brief description of what they stand for. The designations are noted separately from their respective organizations, as our company is highly involved, dedicated and supportive to both CAI and AACM.

Organization: Community Association Institute, “CAI”
Designations:
Certified Manager of Community Association’s, “CMCA”
Association Management Specialist, “AMS”
Professional Community Association Manager “PCAM”
Accredited Association Management Company “AAMC”

All of the above designations are nationally recognized and each requires a certain set of criteria to obtain the designation and in addition, require an ongoing commitment to continuing education to uphold the designations. The last one noted, “AAMC”, is the company designation that is only given to those companies that meet numerous levels of criteria such as ethics, superior accounting practices and a required percentage of employees must be certified within the company.

Organization: Arizona Association of Community Managers, “AACM”
Certification:
Certified Arizona Association Manager, “CAAM”

The CAAM certification is a state-specific program earned through the completion of course curriculum that includes four extensive classes. The coursework encompasses the following subjects: Ethics, Financial Management, Community Management and Principles of Arizona Law. This achievement establishes those certified as being among the best in the industry with a commitment to higher standards of practice and ethical behavior.

Elaine Anghel, PCAM, AMS, CMCA, CAAM
General Manager

New Board Member Orientation Program

In an ongoing effort to uphold the highest standard of service for our Association clients, Tri-City Property Management Services, Inc. is holding their “New Board Member Orientation Program”.

This mini-seminar is held on a quarterly basis at our Mesa office and is intended to teach the basics to those who are serving, or will be serving, as a board member for the first time.

Topics and discussions in this program include the following:

•40-minute video providing an understanding of how a board should work, including board member responsibilities, adoption of rules, oversight, the board and the law, fiduciary duties, duty to act, finance committee reporting, plus tips on moving the meeting along and working with committees.

•Hand-outs will be provided on such topics as:

1. The Open Meeting Law
2. How to Run Efficient Board Meetings
3. Roles of the President, Vice President, Secretary and Treasurer
4. Sampling Financial Statements
5. Overview of the Industry
6. Types of Communities
7. Legal Foundation
8. Rights and Obligations (Owners, Board Members, Officers and Committees)
9. Commonly Used Terms

The next seminar is scheduled for Monday, July 24, 2006 at 6:00 p.m. and will last approximately 1 ½ hours long. (If you miss this one, the next seminar will be held in October).

If you are interested in attending, please RSVP to me no later than July 14, 2006, by calling 480-844-2224, ext. 125, or by email at eanghel@tcpm.net. I look forward to seeing you there!

Elaine Anghel, PCAM, AMS, CMCA, CAAM
General Manager

Tuesday, July 11, 2006

New TCPM Announcement Web Log

Look for more news regarding Tri-City Property Management Services, Inc. We will post announcements and various topics regarding our client associations and news regarding the HOA industry in Arizona. Check back frequently for news and announcements.

Richard K. Saathoff
Vice President
Tri-City Property Management Services, Inc.