Adventures in Condominium Dispute Resolition by chenmeixiu


									                                                                                                  Volume 23 Issue 4
                                                                                                      August 2009

                                                                                                H AWA I I C H A P T E R

                                       Adventures in
President’s                            Dispute Resolition
                                       By Philip Nerney, Esq.
 Message                                    Despite fervent efforts to allow the so-called condominium dispute reso-
Aloha!                                 lution pilot project to experience the demise that it so richly deserves, its pow-
                                       erful friends kept the sun from setting on it this year. Act 9 was signed into law
     Aloha and Mahalo and again        on April 20, 2009. That enactment changed the sunset date for condo court
on behalf of our CAI-Hawaii            to June 30, 2011.
Chapter, I would like to thank
all of our members and volun-              That is the bad news. Some news, though, is good.
teers for all of your assistance in
making our CAI-Hawaii Chapter              The good news is that the discussion has turned to what comes next.
so successful. We are also very        Evaluative mediation is what comes next.
happy to note that our chapter is           Evaluative mediation is a style of mediation that stands in contrast to
growing too and we would like to
                                       facilitative mediation, which predominates at community mediation centers. A
welcome all of our new members.
                                       facilitative approach provides parties in conflict the buffer of a neutral party;
     This time around, I would         but it depends upon the parties to fend for themselves with respect to the
like to highlight the activities of    substance of their dispute. That is, facilitative mediators do not advise, judge
two very important facets of our       or counsel. They listen, ask questions, re-frame issues and act as a go-
Hawaii Chapter; they are our           between, for example; but they do not answer the question: “Who is right and
Chapter’s Newsletter and the CAI
                                       who is wrong?”
Hawaii Legislative Action Com-
mittee. Our Newsletter is very              Mediators who employ an evaluative approach also facilitate communica-
successful and our feedback has        tion and exchange. The value added, however, relates to the subject-matter
been overwhelmingly positive,          expertise of the evaluative mediator. That is, the mediator is likely to actu-
but behind the scenes there is a       ally know who is right and who is wrong and, to a greater or lesser extent, is
lot of time and effort expended by
                                       authorized by the parties to say so.
our newsletter committee and its
volunteers to publish each issue.          This is not to say that the mediator employing an evaluative approach
FYI, we have always had some           judges. Mediation is not adjudication.
difficulty in obtaining articles and
we spend a lot of time soliciting          The parties remain free to chart their own course. They can settle their
articles for each publication. I am    dispute or continue it in some other venue; but they will proceed with more
positive that many of you have         information than they originally possessed.
something that you would like to
share with us whether the topic            Any mediator is likely to test various scenarios with the parties and, if
is about budgets, landscaping,         things seem to be heading south, may explore what is sometimes called
house rules, maintenance is-           BATNA, which refers to the best alternative to a negotiated agreement. Since
sues/concerns or just an antidote      the parties may not be able to accurately gauge or to conceptualize the path
about a living experience that you     ahead, it is helpful if the mediator can.
may want to share with all of our
readers. So, if you have an article        Ignorance about law and procedure is rampant in society, so people have
you would like to see published,       any number of wild and crazy ideas about their rights and remedies. That is
please email it to caihawaii@          to be expected, given that law is arcane and abstruse. Learning the law is and we will be         a reasonably torturous experience; but law school alone does not suffice to
more than happy to include it in       render the aspirant vulnerable enough to absorb the practical application of
our newsletter.                        condominium law. Long suffering is required next.
    CAI’s Hawaii Legislative Ac-
                                                                                                     continued on page 2
                 continued on page 4
2                                                                                                                       August 2009
                                                                        H A W A I I

                                                      Condominium Dispute Resolution
                                                      continued from page 1

                                                          Since many choose to forego the tedium of knowing much about a nar-
                                                      row thing, it is helpful to have some initiate on hand to lead the novice through
    P.O. Box 976, Honolulu, Hawaii 96808              the harrowing obstacles that must be surmounted in the search for answers.
    (808) 488-1133                                    Therein lies the value of a mediator who has subject matter expertise concern-
    email:                                 ing condominiums.
                                                           The condo court enthusiasts imagine that there is a fairy godmother
    Officers and                                      ensconced in the Department of Commerce and Consumer Affairs’ Office of
    Board of Directors
                                                      Administrative Hearings who will wave a wand and make all things clear. In the
    President                                         real world, however, there is no fairy godmother.
    Al Denys, PCAM
    Certified Management                                 Instead, there is just a bureaucracy. The bureaucrats are tasked with
    President Elect                                   meddling in the governance of putatively self-governing entities. Remember,
    Lois Ekimoto                                      condominium associations are supposed to govern themselves. They are not
    Hawaiiana Management Co.                          supposed to be government run camps.
    Vice President                                         And now, a funny story. There is a fervent condo court supporter who testi-
    Milton Motooka
    Motooka Yamamoto & Revere                         fied before various and sundry legislative committees this past session about
                                                      the alleged misdeeds of a particular condominium board. His tale of misfea-
    Secretary                                         sance formed the centerpiece for his argument that condo court must exist – to
    Joani Taylor
    Homeowner, Marco Polo                             protect the public from such doings. Although not known to be a licensed
                                                      attorney, he was closely affiliated with an owner’s quest to press a complaint in
    Treasurer                                         condo court. The funny part is that condo court has just decided the matter in
    Pat Fujisaki
    Service Printers Hawaii                           favor of the board. Hysterical laughter ensued in offices all over town.
    Directors                                              The existence of condo court facilitates and encourages the presentation
    Suzanne Alawa                                     of claims that lack merit. It enables any silly story to be told, at no risk to the
    Ewa by Gentry                                     teller. Never mind that the complainer’s innocent neighbors pay for the folly.
                                                      We are told that government must put its fingers on the scales and associations
    Steve Glanstein, PRP
                                                      must consider such claims to be a cost of doing business.
    Boyd Ready
    Akahi Service                                         How such a thing is just or equitable is hard to know. Really, those in power
                                                      are simply enabling a tyranny of the minority to satisfy some perverse anti-
    Sue Savio                                         majoritarian instinct.
    Insurance Associates
                                                          Innocent association members pay for the playground that the legislature
    Newsletter Committee
                                                      has given to the angry and the unwell. The essence of the animating social
    Editor                                            policy behind condo court is confiscatory and anti-democratic. It is a nanny
    Lillian McCarthy
    Hawaiiana Management                              state project; a mandate created by the misanthropic for dissidents who lack
                                                      the courage to test their theories in the established courts.
    Pat Fujisaki
    Service Printers Hawaii                                Budgets are tight enough without the legislature meddling in the private
    Agnes Sykes
                                                      affairs of private associations. Keep in mind, too, that a pending condo court
    Certified Management                              matter may have to be disclosed and, in today’s lending climate, that may stop
                                                      lending at the project.
    Joani Taylor
    Homeowner                                              Condo court’s apologists insisted that five years of demonstrated failure
    The Hawaii Community Associations newslet-
                                                      should not doom the venue. Empirical fact did not get in the way of dogma,
    ter is published for associations leaders and     and some aching notion that someone, somewhere, was exercising authority
    other related professionals of CAI. Authors are
    encouraged to submit articles for publishing      without checking in with the State doomed the rest of us to two more years of
                                                      this misguided “pilot program.”
    This publication is designed to provide ac-
    curate and authoritative information regarding         But the focus of the debate has shifted. The notion being advanced now
    the subject matter covered. It is issued with
    the understanding that the publisher is not en-   is a modest one. Specifically, the notion is that the greater use of an evaluative
    gaged in rendering legal, accounting or other
    professional services.                            style of mediation, by subject matter experts, will provide actionable intel-
    CAI Hawaii Community Associations news-           ligence to allow parties in dispute to calculate their next moves. The corollary
    letter provides an opportunity for information
    and/or comment. Articles do not necessarily       notion is that the parties should accept the consequences attendant to their
    reflect the viewpoint of the Chapter. The read-
    er should not act on information contained
    herein without seeking more specific profes-
    sional advice.                                        Thus, if someone leaves an evaluative mediation process knowing that their
                                                      pet theory won’t hold water, then that should be all the coddling they get. If
August 2009                                                                                                             3
                                                           H A W A I I

they proceed to litigate their claim,     are tested. Trained mediators with       About the author: Philip Nerney,
it should be in an unrigged venue, a      subject matter expertise in condo-       Esq., represents community associa-
real court, and they should suffer real   minium law and practice should staff     tions. He earned a masters degree in
consequences.                             that checkpoint.                         counseling psychology in 2002, and
                                                                                   serves the Family Court as a volunteer
    This works both ways. Boards              Parties who choose to carry a
                                                                                   Judicial Pretrial Assistant (mediating
should run into the same buzz saw         dispute past that checkpoint should
                                                                                   child abuse and neglect cases). He
available to owners.                      face real courts, and real consequenc-
                                                                                   chairs the Mediation Center of the
                                          es. Condo court is an instrument of
     The essential point is that me-                                               Pacific’s condominium specialty area,
                                          positive harm. It is not a benefit to
diation should be the checkpoint at                                                and is active as a mediator. He can
which condominium-related disputes                                                 be reached at 537-1777.

    PORTER TOM                                     ❑
                                                       Real Property Transactions and Development
                                                       Condominium and Community Association Law
    QUITIQUIT CHEE                                 ❑   Voluntary and Involuntary Lease To Fee Conversions
    & WATTS, LLP                                   ❑
                                                       Construction Litigation
                                                       Employment Law
             ATTORNEYS AT LAW                      ❑   Civil and Commercial Litigation
             Christian P. Porter                   ❑   Business Law
             Carl Tom
             S.V. (Bud) Quitiquit                  ❑   Civil Appellate Practice
             David W.H. Chee
             Jeffrey D. Watts                      HONOLULU 841 Bishop Street, Suite 2125 • Honolulu, HI 96813
             Donna Yamamoto                                      Phone: (808) 526-3011 • Fax: (808) 523-1171
             R. Laree McGuire
             Jerilynn Ono Hall                 KAILUA-KONA 75-1000 Henry Street, Suite 208 • Kailua-Kona, HI 96740
             Danielle Degele-Mathews                             Phone: (808) 326-7300 • Fax: (808) 326-7725
4                                                                                                                      August 2009
                                                               H A W A I I

President’s Message                             continued from page 1

tion Committee (LAC) works unselfishly and is to               Manager for Distinguished Programs’ Community Associa-
be commended for all of their hard work and many               tion (CAP) Program, based in Burbank, CA., will be present-
hours spent in safeguarding and maintaining all of             ing “Why on Earth Would I Want to Serve on the Board of
our rights as a homeowner. The quality of life that we         Directors of my Community Association?” In this seminar,
enjoy today is the result of all of these efforts and if       Community Association D&O expert, Jamie Schraff, will dis-
you attended our 2009 Legislative Update on July               cuss both the joys and hardships of serving on a community
16, 2009 held at the Hale Koa Hotel with over a 150            association board. In addition, Ms. Schraff will discuss the
attendees (Thank you to Milton Motooka, Esq. and               proper ways to protect your personal assets from lawsuits
Rebecca Szucs, Esq. from the law firm of Motooka               and liability brought on as a result of the decisions made as
Yamamoto and Revere and the Co-Chairs of the                   a board member. Is your association looking out for your well
Programs Committee for all of your hard work) you              being as effectively as you take care of it? Sign up now and
would understand and appreciate everything the                 learn how. To sign up on line go to, click
LAC does for us. This seminar was coordinated and              on Events Calendar.
moderated by Phil Lahne, Esq. of Anderson Lahne &
                                                                    Lastly, our CAI-Hawaii Chapter would like to thank you
Fujisaki and John Morris, Esq. of Ekimoto & Morris
                                                               for participating in all of our programs and seminars. For
(who are the Co-Chairs of the Hawaii Legislative Ac-
                                                               more information email us at or
tion Committee). Along with Phil and John, the rest
                                                               visit our Hawaii Chapter website at
of the speakers’ panel included Philip Nerney, Esq.,
a community association attorney and a mediation
expert, who is also a member of the Legislative Ac-
tion Committee and Michael Chen, Owner of Adon                     Aloha,
Construction Company, who all spoke on various as-                 Al Denys, President
pects of our legislature’s 2009 activities. Thank you
all for your excellent and informative presentations!
     The 2010 Legislative season will be upon soon
and we will still need your help as there are many
senate and house committee hearings where your
testimony is extremely vital for either passing an
important bill or for killing an ill-conceived bill. You
would be very surprised to know that very few own-
ers take the time to come forward to testify. You are
a voter, your elected officials need to hear from you
otherwise they vote the way they think they should
without any repercussion from their constituents for
voting the way they do. They need to be held ac-
countable for their voting record.
     I am sure that you know that there are hundreds                       Advising boards on
of bills submitted every session and many of those
bills are decent pieces of legislation that need your                   managing and operating
support while at the same time there are many bills
that are extremely detrimental and will do more dam-
                                                                                  their associations
age than good. In the end, we end up paying higher                      • Recommending actions to reduce the risk of claims
fees and taxes to pay for these new laws because no                     • Answering day-to-day questions on legal issues
one bothered to challenge their wisdom in support-
ing their “pet project”, which is always at the taxpay-                 • Interpreting and amending documents
ers’ expense. We need to get more involved and                          • Enforcing covenants          • Collecting delinquencies
make an effort to submit testimony, whether it is in                    • Lease-to-fee conversions     • Lease rent renegotiation
person or via a written statement. Thus, this is where
I would like your help. What I would like to accom-                                Richard S. Ekimoto • John A. Morris
plish before I leave office at the end of the year is to                                   Gwenaelle Bratton
develop a data base of owners that we can call upon                                          Russell H. Ando
to provide testimony on CAI’s behalf on key pieces                                           Paul J. Schwind
of legislation that would in the long run benefit us all.
                                                                                      Of Counsel Arlette S. Harada
So please volunteer to help to help us by emailing with your contact informa-
                                                                                    Of Counsel Everett S. Kaneshige
tion so we can call upon you to provide testimony                                       American Savings Bank Tower
during the upcoming legislative session.                                                1001 Bishop Street, Suite 780
                                                                                        Honolulu, Hawaii 96813-3410
    CAI’s next seminars are on October 16th on                                          Telephone: 808.523.0702 • Fax: 808.538.1927
Maui and on October 17th on Oahu at the Japanese                               •
Cultural Center. At both of these seminars, Jamie
Schraff, the Assistant Vice President and Program
June 2009                                                                                                                 5
                                                          H A W A I I

                                                   CeRtiFied MAnAgeMent
                                                    iS CoMMitted to you
           An Associa® Company

  We prove our commitment to our clients like no other management company by continuously investing
  and reinvesting in service and operations improvements designed to provide them value. This investment
  is part of our long term vision to bring better, world-class service to our valued clients.

  Here is how Certified is improving for our clients:

  Increased data securIty
  Our clients’ association data is private and important. Our local management and customer service operations
  are joining the national information technology network of our parent company, Associa. As a result, we will
  provide even stronger security protection and smarter backup to client data.

  InteroffIce communIcatIon
  We’ve made the Certified Management team more united across our offices through better use of interoffice
  technologies - including a unified Cisco telecommunications network to give you more responsive customer
  service. Now it’s even easier to tap into the experience and service of every Certified employee.

  core technology Improvements
  While the company network is improving, we are also upgrading our employees’ desktops with the latest in
  equipment and software.

  Certified Management, Inc. was established in 1973 to provide the highest quality community association
  services available in the State of Hawaii. We have a reputation for providing excellent customer service.

    3179 Koapaka Street       4-1579 Kūhiō Hwy, Suite 102A      75-169 Hualalai Road      270 Hookahi Street, Suite 201
   Honolulu, Hawai‘i 96819        Kapa‘a, Hawai‘i 96743      Kailua-Kona, Hawai‘i 96740      Wailuku, Hawai‘i 96793
    Phone: 808.836.0911            Phone: 808.821.2122          Phone: 808.329.6063          Phone: 808.243.9565
     Fax: 808.839.9430              Fax: 808.821.2131            Fax: 808.326.2486             Fax: 808.244.7848
6                                                                                                                                August 2009
                                                                      H A W A I I

Employing the Proper Hiring Tools
By Erica Calistro                                   1. employers that are expressly             many ways for an employer to spot a
                                                        permitted by law, whether               high-risk employee. For starters, one
     Most employers – if not all – are
                                                        State of Federal, to look into          of the most important screening tools
aware that refusing to employ an appli-
                                                        an individual’s credit history,         is to verify a candidate’s employment
cant based on the person’s sex, race,
                                                                                                history. While many employers refrain
or religion is considered a discriminato-           2. financial institutions in which
                                                                                                from providing negative comments
ry hiring practice. What many employ-                    deposits are federally insured,
                                                                                                about a former employee, it is impor-
ers may not know is that inquiries into                  and
                                                                                                tant to verify a candidate’s employ-
and consideration of an individual’s
                                                    3. employers who are screening              ment to assess experience and to
credit report are now deemed dis-
                                                        their managerial or supervi-            look for any gaps in employment. Any
criminatory as well; the Hawaii State
                                                        sory applicants.                        employment gaps that cannot be ac-
Legislature recently amended Chapter
                                                                                                counted for should immediately raise
378 of the Hawaii Revised Statutes to              Because this new law affects                 a red flag. It is important to remem-
include this provision.                        the way Hawaii employers conduct                 ber that there are many tools at an
     The house introduced the bill             employment background checks,                    employer’s disposal; in today’s ever
as House Bill 31 earlier this year.            employers should take the time to                litigious society, employers just need
The Governor made clear her intent             review their current hiring policies and         to be sure the tools they are using are
to veto the bill, which she did on             procedures. For example, employers               within the parameters of the law.
07/14/2009. However, the House and             should review employee handbooks,
                                               employment applications, job require-            About the author: Erica Calistro is
Senate overrode the Governor’s veto,
                                               ments, etc. as well as meet with a               the manager of the Pre-Employment
enacting the bill into law. This new
                                               labor lawyer to discuss how this law             Screening Division at Goodenow As-
law, HRS 378-2(8), makes an employ-
                                               specifically affects their hiring prac-          sociates. She has been employed at
er’s use of credit reports in hiring or
                                               tices.                                           Goodenow Associates since 2005.
firing a discriminatory practice.
                                                                                                She graduated from the University of
    Employers are prohibited from                   It is important for employers to            Washington with a BA degree in Eng-
refusing to employ a candidate or for          take action to protect themselves                lish. Goodenow Associates conducts
terminating an employee on the basis           against lawsuits and to protect their            investigations, employment screen-
of his/her credit history. There are,          employees. Although this new law                 ing, and also provides fingerprinting
however, a few exceptions in which             limits the tools an employer may use             services. You may reach Erica at 808-
employers may use an individual’s              for employment screening, employers              526-2002 or via e-mail at ecalistro@
credit report:                                 should not be discouraged; there are   

                                        AT L A S A O A O I N S U R A N C E C O N S U LTA N T S

                    Trust your AOAO Insurance Needs
                      to Hawaii’s Dedicated Experts
       Because Condominium Insurance is complex, dealing with a specialized
       insurance team that understands AOAO issues is vital. As a division of
       Hawaii’s largest independent insurance agency, Atlas AOAO Insurance
       Consultants have the resources to offer you superior insurance options.

       ■   Experienced AOAO Specialists
       ■   Proprietary AOAO Programs
                                                                                    Ron Tsukamaki                Mike Ayson
       ■   In-House Loss Control and Claims Services                                Senior Consultant            Client Manager

       ■   Competitive Pricing
       ■   Atlas Insurance Agency stability of operation since 1929

       Phone: (808) 533-3222
       1132 Bishop Street, Suite 1600, Honolulu, Hawaii 96813                       A Division of Atlas Insurance Agency, Inc.
August 2009                                                                                                                                   7
                                                                H A W A I I

          Need Cost-Effective Solutions for
          Your Community Association?
                   Community Association Banc offers fast, cost-effective solutions for
                     all of your needs – banking, loans, documentation and software.
                         Capital maintenance loans, Web-based cash management
                           services, online document delivery and more. Find out why
                                                                                                          Kris Gjylameti
                              Community Association Banc is the choice for more than                 Assistant Vice President,
                                 350 management companies and 10,000 community                      Regional Account Executive
                                   associations across the country.
                                                                                                  1600 Kapiolani Blvd., Suite 1311
                                                                                                     Honolulu, Hawaii 96814
                                                                                                      Toll Free 866.800.4656
                                                                                                              Ext. 7503
                                                                                                        Fax 602.636.8525

                                                                                                         A Division of Mutual of Omaha Bank

                      National Corporate Member of Community Association Institute. Community Association Banc
                            is a division of Mutual of Omaha Bank, Member FDIC and Equal Housing Lender.

                                      Hawaii’s Leading Provider of
                                  RESERVE STUDIES

    Contact Mike Price for:                                                               Put our expertise and experience
    • Year-round Support                  Locally owned                                       to work for your association
    • FREE Software                       and operated
    • 21 Years Experience                  since 2006
    for more information
                                        Hire the experts at…

                    AR       SSOCIATION
                                            Hawaii LLC
                 Reserve Studies for Community Associations

                             808/936-4789 • 808/883-2918 FAX
8                                                                                                                       August 2009
                                                                         H A W A I I

    Hawaiiana Management Ranked #1 Condo
    Association Management Company
    “Excellent Delinquency Follow-up, Thousands in Cost
    Savings thanks to Hawaiiana”
    Hawaiiana Management Company was recently ranked as                        made by our board of directors,” said Ruby Akahoshi,
    the #1 Condo Association Manager by Pacific Business                       President of Century West Condominium.
    News. Hawaiiana’s top status is particularly exceptional
                                                                               Nearly $40,000 savings in HMSA/Kaiser medical
    because, unlike other companies, Hawaiiana’s growth has
                                                                               premiums over nine months were projected for one
    been one-client-at-a-time and not through purchase of other
                                                                               condo association just by making the switch to
    smaller management companies. The most successful
                                                                               Hawaiiana. Another Hawaiiana-managed association
    Boards of Directors, consistently choose Hawaiiana over
                                                                               saved $30,000 in condo insurance through a Hawaiiana
    any other company.
                                                                               Board Member event. “Hawaiiana’s vendor clout has
                                         Hawaiiana, a 45-year-old,             saved us time and money,” according to Willis Dunne,
                                         locally owned and operated            former President of The Continental Apartments.
                                         property management
                                                                               During these uncertain times, premier associations
                                         company, is commended
                                                                               understand the importance of being managed by the
                                         by clients for its excellent
                                                                               largest, locally-owned and stable company like
                                         delinquency follow-up
                                                                               Hawaiiana. During the past decade, Hawaiiana-
                                         system, for saving
                                                                               managed properties and managers have won 29 top
                                         thousands of dollars in
                                                                               property management awards, more than any other
                                         operating expenses and for
                                                                               company in the history of Hawaii property management.
                                         increasing property values.
                                                                               Hawaiiana’s        staff
                                        “Hawaiiana collected                   includes a Certified
                                        $72,000              in                Public Accountant, a
    Mitsuo Shito                        delinquencies shortly                  retired       Attorney,
    President, Waikele                  after they started as                  R e g i s t e r e d
    Community Association               new       managing                     Parliamentarian,        a
    “Hawaiiana collected $72,000 in     agent,” said Mits                      Certified       Reserve
    delinquencies shortly after they    Shito, President of                    Specialist who holds a
    started as new managing agent.”     Waikele Community                      Civil     Engineering
                                        Association.                           degree, several former
    “Hawaiiana immediately found over $20,000 in unpaid dues                   Presidents of small
    not collected by the previous management company,” said                    property management
    Sue York, President of Ewa by Gentry Community                             companies and Hawaii’s
    Association. Hawaiiana was commended for helping to                        best and brightest
    recover $27,000 in past due maintenance fees in just a few                 property management                          Sue York
    months after being contracted as new managing agent                        professionals.               President, Ewa by Gentry
    according to Sandalwood High-rise Condominium.                                                            Community Association
                                                                               For more infor-mation,         “Hawaiiana immediately
    A 50% increase in property values at Nuuanu Terrace Condo                  contact Phyllis Kacher,   found over $20,000 in unpaid
    Association resulted from Hawaiiana’s comprehensive plan                   Senior Vice President dues not collected by the prev-
    to upgrade the property and leadership of the board of                     of Hawaiiana at (808)      ious management company.”
    directors, with all work done on time and under budget.                    593-6896 or email
    “Selecting Hawaiiana was one of the best decisions ever          

    A 50% increase in property values at Nuuanu Terrace Condo resulted
    from Hawaiiana’s comprehensive plan to upgrade the property, with
    all work done on time and under budget.
August 2009                                                                                                                         9
                                                                H A W A I I

House Rules Governing Our Pets
By Wyman Chang
     In 2003 my wife and I adopted an      based on the size of a pet. Rather                       Associations which have restric-
8 week old lab mix from the Hawaii         the house rules should be written to                tions on the size of a pet should
Humane Society and we named her            address the behavior of a pet. Maile                reevaluate the rules governing pets.
Maile. Maile has been a joy in our lives   has been trained well enough so that                Pet rules should address barking
ever since. She couldn’t have weighed      if I accidentally drop her leash she will           dogs, cats that escape from their
more than 4 pounds when we brought         continue to heel. She does not have                 homes and wander the halls, and the
her home. The property I managed at        an aggressive bone in her body. She                 behaviors of the pets. Just as House
the time was pet friendly and didn’t       gets along with other dogs, cats and                Rules tend to govern the behaviors
have any restrictions such as breed or     keiki.                                              of and what is acceptable of owners
weight limits. One year later we found                                                         and residents, the House Rules which
ourselves moving to a bigger and bet-           Apartment living can contribute
                                                                                               govern pets should address what are
ter property. The problem was there        to the stress level for some breeds
                                                                                               acceptable pet behaviors. Aggres-
was a pet weight limit of 40 pounds        of dogs. Owners need to be diligent
                                                                                               sive dogs and cats - I know, you’re
and Maile had grown up to a hefty          when training their dogs. Not all dogs
                                                                                               saying to yourself “aggressive cats,”
90 pounds. The Board of Directors          will behave like Maile. Maile is spe-
                                                                                               yes aggressive cats can be difficult to
was kind enough to make an excep-          cial. But then we all think our pets are
                                                                                               handle if they are permitted to roam
tion for Maile. The problem is, Maile’s    special. Dogs must never display ag-
                                                                                               freely. Many of cat owners adopt
weight should not have been an issue.      gression to people or other pets. Own-
                                                                                               feral cats that don’t necessarily get
Of course large dogs can be hard to        ers with out of control barkers can find
                                                                                               along with other cats or humans. They
handle if they are not properly trained    themselves in court. Barking dog own-
                                                                                               can escape their homes and get into
but little and medium sized canines        ers normally do not receive citations
                                                                                               mischief or create trouble for owners
can be just as difficult.                  for barking dogs. Instead they may
                                                                                               and their neighbors.
                                           receive a summons to court and if the
    The size of a pet is not the prob-     barking continues. Continued barking                    A properly trained pet can be
lem. The problem lies with lack of         may lead to the unfortunate removal of              a source of comfort and joy. There
proper training. Condominiums              the pet.
should not set restrictive pet rules                                                                             continued on page 10

       The Best Does Not Have To Cost More!
                         TROPICAL ROOFING
                                                                    AND RAINGUTTERS INC.

     Monier Lifetile

                                                       Elastomeric roof coating

                                                       All types of wood and metal roofing for homes,
                                                            townhouses, and commercial buildings.
     Cedar Shake                                   Serving all of Hawaii with quality roofing for 20 years.
                                                   Building Industry Association “Remodeler of the Year”
                                               Sales • Manufacturing • Installation • Repairs • Leak Detection
                                                     On-site fabrication of metal roofing and raingutters
                                                                 Free No-Obligation Estimates
                                             Call 847-0030 Honolulu, 235-0025 Windward Oahu
                                                 5 Sand Island Access Rd., Bldg 926H, Unit 141 Honolulu, HI 96819
                                                                                  License #C-21044
     Standing Seam Metal Roof
10                                                                                                August 2009
                                                              H A W A I I

continued from page 9

are many people living in condo-
miniums and who are not pet owners
and would rather not reside in a pet
friendly property. Thus, pet owners
need to be diligent when training their
pets and remember that not everyone
loves animals. An aggressive, barking
5 pound chihuahua or a squawking
macaw that is not trained or improp-
erly “trained” can be much more of a
problem than a 100 pound German
Shepard that has been train correctly.
    When crafting the House Rules
which govern pets, the type of pet (no
one wants a runaway monkey living
next door) proper pet training, accept-
able pet behavior, keeping the pet
clean (to prevent pests common to
pets from invading the property) and
how to transport the pet through the
common areas are just a few of the
things that should be addressed. A
restriction on the size of the pet has
no place in the House Rules.
     Keep in mind when there is a re-
striction on the size of a pet, how will
that rule be enforced. Will the Asso-
ciation have a weigh in? Do we insult
the pet and pet owner by telling them
their pet has gotten too large and
needs to go on a diet? Do we expect
the pet owner to “get rid” of the pet
because it grew too large? How will
the rule be enforced?
About the author: Wyman Chang is
the Resident Manager for Royal Court.
Wyman may be reached at 538-1733
or via e-mail at wyman69@hawaiiantel.

                         Equity Properties, Inc.
                          99-860 Iwaena Street, Suite 204 • Aiea, Hawaii 96701-5608

  The Property Management Specialists Serving Hawaii Since 1985
       •   Condominium/Cooperative/H.O.A. Management
       •   Rental & Commercial/Property Management
       •   Real Estate Sales
       •   Personalized & Professional Service

  Phone (808) 485-0855                                                                LICENSED & BONDED

  Fax: (808) 485-0987 • Email:
  Or visit us on the web for more information at
August 2009                                                                                                                                 11
                                                             H A W A I I

Taxation of Homeowners
Associations By Ratna Nuti, CPA
    The most common question an auditor is asked by an
Association’s Board of Directors is “why does our Association
get taxed when we are a non profit organization?”
                                                                     worn out?
     Are Common Interest Realty Associations (CIRAs) re-
ally non profit organizations? It is true that they are set up
                                                                     New construction
without a profit motive but this is where the similarity with a      defects?
typical non profit organization ends. Non profit organizations
receive significant amounts from donors, who do not expect           Under funded?
to receive repayment or economic benefits in return and they
have no defined ownership interests that can be sold, trans-
ferred or redeemed.
                                                                      We provide
     Non profit organizations such as American Heart Asso-
ciation, Goodwill, Food Bank, etc., assist the public at large
                                                                      financing for all
regardless of a person’s economic status, race, color, etc. A         types of community
CIRA on the other hand, collects money from members of a              associations.
given community, spends the funds for the maintenance of
common property in the community, sets aside money for
future replacements and major repairs. Therefore, a CIRA
is formed only for the benefit of a set of people living in a
community and not to serve the public and for this reason            Homeowner Associations
the Internal Revenue Service does not consider CIRAs to be           Condominiums
tax exempt organizations unless an Association applies and
receives tax exempt status.                                          Timeshares
     An Association’s income can be segregated into mem-             Cooperatives
bership and non membership income. Membership income                                      solutions for
is received in the form of maintenance fee, late fee, fines,                                community
etc. Non membership income includes interest income from                                  associations.
investments, income from ancillary services such as laun-
dry facilities, vending machine commissions, parking rents,
community room rental and so on. An Association’s taxable             FiNaNciNg For:
income is comprised of only non membership income in most             n common Element Maintenance
cases.                                                                n construction Defects
     Associations elect to file under Sections 277 (Form 1120)        n Energy Efficiency Projects
or 528 (Form 1120H) of the Internal Revenue Codes (IRC).              n real Estate Purchases
Cooperative corporations file under either IRC Section 277 or
Subchapter T (Form 1120-C). Associations that have received           n Land Lease Buyouts
tax exempt status file under IRC Sections 501c (4) or 501c (7)
(Form 990). Under all the above filing options, some income
will be subject to tax. On the surface, filing of a CIRAs tax
returns may seem simple but it is a complicated process as
there is no definitive tax law or guidelines in this area. Also,
there is not one comprehensive set of tax rulings and this
leads to varying interpretations of the law by both tax prepar-
ers and the Internal Revenue Service agents.
    As the responsibility of the tax return lies with the Board
of Directors of the Association, I urge Board of Directors                 Call today to discuss the financing needs
to get a general comprehension of the requirements of the                      of YOUR community association.
above Sections in relation to their Association and make sure
the tax returns are being prepared accordingly. Audits of                          808-854-9402
CIRAs by the IRS are becoming more frequent than in past
years and in case of an audit, an Association will have to                       
prove it is abiding by the provisions of the Internal Revenue
About the author: Ratna Nuti, CPA, is a sole
practitioner specializing in audits of homeowners                        National Corporate Member of Community Association Institute.
                                                                       Community Association Banc is a division of Mutual of Omaha Bank —
associations. She can be reached at 949-3385 or by                                 Member FDIC and Equal Housing Lender.
e-mail at
12                                                                                                         August 2009
                                                            H A W A I I

Gourley Award Nominations Sought
    Nominations are being sought for the Richard M. Gourley Distinguished Service Award. This award serves to rec-
ognize an individual, group or organization for outstanding service to the community association industry as a whole,
including CAI Hawaii Chapter.
    Nominations must include a description of the contributions that reflect outstanding service to the community as-
sociation industry. Take this opportunity to nominate the one individual, group, or organization that you feel has provided
outstanding service to the community association industry, including CAI Hawaii Chapter.
    Written nominations must be submitted to the Awards Committee by Tuesday, September 15, 2009, using this nomi-
nation form. The Board of Directors will select the recipient(s), and the award will be presented at the 2009 Annual Meet-
ing on Thursday November 5, 2009.
    The Awards Committee would like to encourage all CAI Hawaii Chapter members to submit a nomination for an
individual, group or organizations that embodies the spirit of the award in providing outstanding service the community
association industry.



Position or Type of Orgainzation_______________________________________________________________


Phone: (B)______________(H)_____________Fax______________Email______________________________

INFORMATION (Use separate sheet(s) as necessary)




Phone: (B)______________(H)_____________Fax______________Email______________________________

or fax: 485-2484 or email:
August 2009                                                                                                                                 13
                                                             H A W A I I

Surviving Job Loss
     It’s never a good time to lose your   •   Apply for any applicable govern-             sider all assets, income and ex-
job. However, the current economic             ment benefits. Your HR repre-                penses. No one wants to liquidate
environment has resulted in business           sentative at work will be a good             assets to survive, but it is good to
closures, downsizing and layoffs for           resource.                                    know what you have to fall back
many in our state. The National Foun-                                                       on.
dation for Credit Counseling offers the    •   Resist the urge to solve your
following tips for surviving a layoff:         problems by spending recklessly.        •    Drastic times call for drastic
                                               It may feel good for the moment,             measures. Nothing is off-limits.
•   Allow yourself to be upset or even         but the high of spending won’t               Consider selling the second car
    afraid. These are natural reac-            equal the low of dealing with                or recreational vehicle, real estate
    tions. However, if they become             additional debt when there is no             holdings, rental properties or jew-
    intense, seek professional help.           income.                                      elry.
    Talking things through and hearing
    another person’s perspective can       •   Don’t be tempted to live off of         •    After you review your income
    bring relief and restore your posi-        your credit cards. Someone with a            versus debt obligations, if you
    tive outlook.                              good line of credit could actually           don’t have enough money to
                                               support the family at the current            make ends meet, calculate
•   Resist the urge to tell your boss          standard of living by using credit,          how much you’ll need for basic
    what you truly think of him or her.        but there’s no guarantee a new               household expenses. Your goal is
    Remember, you may need him or              position will materialize any time           to pay everyone, but if you must
    her as a reference for a future job.       soon. Expect one month of job                make a choice, keep food on the
                                               search for each $10,000 of an-               table and your home life stable
•   Take advantage of any assistance
                                               nual income you hope to replace.             by paying your rent or mortgage,
    your workplace offers. Many
                                               In other words, if you seek a                association assessments, utilities,
    companies provide placement
                                               $50,000 salary, it may take you              childcare, insurance premiums
    assistance, job retraining and sev-
                                               five months to land that job.                and health care.
    erance packages. Make sure you
    are aware of all benefits offered.     •   Take a personal inventory. Con-                                 continued on page 18

                                                                   Kapono Kiakona                                 Terry Revere 
                                                                   Katie Lambert                                  Carol Rosenberg  
                                                                   Milton Motooka                                 Rebecca Szucs 
                                                                   Jana Naruse                                    Myles Yamamoto

                                                                       A leader in Community Association Legal 
                                                                          Services, providing comprehensive,  
                                                                            economical services statewide 
                                                                    ♦ timely, experienced advice to protect your as‐
                                                                    sociation and your association’s assets 
                                                                    ♦ effective problem solving and covenant en‐
                                                                    ♦ efficient, productive collection of delinquent 
                                                                    ♦ monthly reports on all accounts 
                                                                    ♦ effective, zealous advocates when you need to 

                                                                           1000 Bishop St. Suite 801          
                                                                               Honolulu, HI 96813         email:   
                                                                                                                         Phone 532‐7900                        
                                                                                                                        Phone 532‐7900                        
14                                                                                                                August 2009
                                                                 H A W A I I

Dealing with Graffiti Call an Electrician
     Graffiti is a common problem in many neighborhoods.                  The guests are on their way, the food is cooked and
It’s wise for Associations to monitor and immediately                suddenly the light over the dinner table goes out. A new
remove graffiti from common areas. Here are some sug-                bulb doesn’t fix the problem, and neither does flipping
gested steps for dealing with graffiti:                              the switch that controls the light circuit in the fuse box off
                                                                     and on. You know the same light has given you trouble
•    If you happen to see someone defacing property, don’t           before, and you might think you even know the difference
     try to stop it yourself. Call the police immediately and        between that green ground wire and the black hot wire.
     report the vandalism in progress. Make a mental note            You remove the light switch from the wall and see some
     of as many details as possible about the perpetra-              of the wires have apparently become disconnected. Time
     tors—how many, what age, male or female, distinctive            to just shut off the fuse and reconnect them, right?
     clothing—that will help police.
                                                                          Wrong. Each year 67,800 fires result from home elec-
•    Encourage your neighbors to also watch for and report           trical problems just like this one, according to the U.S.
     graffiti vandals.                                               Fire Administration. Twice as many of those are due to
•    When graffiti appears on your property, photograph it           improper wiring as appliance failures.
     before removing it. Record when and where it ap-                    It’s not that you don’t know what you’re doing or
     peared, when it was removed, the cost and other                 that you can’t read a how-to guide—the last residents
     relevant information. Share your documentation with             may have done it improperly themselves. They may have
     the police and insurance agent.                                 reversed wires, replaced the wire with wrong gauge or
•    Remove graffiti immediately. “Taggers” gain more                put too much strain on the fuse (called over lamping).
     notoriety the longer the graffiti remains. Removing it          The only way to know you are correctly wiring is to use a
     quickly sends a message that you care about your                special tool called a voltage meter to check for hot wires.
                                                                          The only safe bet is to consult a licensed electrician.
•    Install good lighting in areas vulnerable to graffiti.          Electricians not only have the tools you don’t, like line-
                                                                     man’s pliers and voltage meters, they have extensive
•    Plant shrubs or climbing vines in graffiti-prone areas.         internships (typically 3-7 years) under their belts. They
     Or, replace walls with hedges.                                  intern for a reason—without proper training, you can
•    In problem areas where graffiti reappears regularly, try        seriously hurt yourself by mixing up cables or not taking
     applying a layer of clear paint or silicone coating over        the proper precautions. For your own safety, and for the
     painted surfaces. This will make cleaning future graffiti       safety of the community, get in touch a certified. Besides,
     much easier.                                                    your guests would rather eat by candlelight than not eat
                                                                     at all.
   Working together, you can reduce this problem in your

     Charting the Correct Course
               HAWAII FIRST Has the Right Crew
               to Manage Your Association
               are ready to “Come Aboard” when it comes to professional property
               management. Our “All Hands on Deck” approach helps you efficiently
               navigate the business of each day, including the management of some
     of your condo’s most critical issues: Reserve Funding, Delinquency Collections
     and Covenant Enforcement.

     Our crew is trained to evaluate your special needs and concerns because in our
     industry every day is different, and every community needs to be evaluated
     and managed by its unique set of circumstances. Best of all, we offer the lowest
     reimbursement cost structure in Hawaii. This is your association’s guarantee for
     smooth sailing in the Pacific.

     For advice call (808) 531-5566 or visit
August 2009                                                                                                                 15
                                                              H A W A I I

Reevaluating Our Resident Managers
By Wyman Chang

     I’ve been a Resident Manager for       want to help. It’s because they can’t      dians, carpenters, painters, carpet
over 6 years now. I had been man-           help. As resident managers we are          cleaners, pool operators, office clerks,
aging my current property for a little      reminded that we cannot perform            orderlies and whatever else the as-
over one year and was slowly getting        any personal service to any owner or       sociation needs us to be.
to know my residents. The previous          resident. If we do, we can be turned
RM was kind enough to show me the           in and disciplined.                             Most people I speak with would
ropes and began by updating me on                                                      never become a Resident Manager. I
some of the residents who were, for a            A large portion of my residents are   don’t blame them. But being at least
lack of a better word “Needy”. Some         retired. Many of them have physical        a halfway decent RM requires the
were physically unable to do many of        disabilities and continue to live alone.   help of a smart, strong, confident and
the things we take for granted. One         Should associations reevaluate their       competent Property Manager. The
resident in particular was stricken with    Residents Managers responsibilities?       relationship between an RM and the
severe physical ailments. She never         Can a Resident Manager help a senior       Property Manager is crucial. They
left her apartment and required nurses      resident with their groceries without      need to always be on the same page
and a doctor to visit her at her home.      being scrutinized? I believe that we       and work as a team.
She also lived alone. She called me         are not just Resident Managers to the
                                            association but we are neighbors to             That’s not always the case. I
one day to ask if I could change a                                                     started out as an RM in a small 72
light bulb for her. I thought about how     the people we live among. We are hu-
                                            man beings with compassion. Would          unit, three level walk up. One of the
I was going to explain to her that I                                                   residents found it too difficult to carry
couldn’t because of my position but         helping senior residents with their
                                            groceries when the RM is off duty still    her trash to the designated dumpsters
figured I was off my shift so I went up                                                so she left it at the basement level of
her unit and changed the light bulb         be considered preferential treatment?
                                                                                       the stairwell for someone else (me) to
anyway.                                          An RM has a different job. It’s a     throw away. I was able to find whom
    Years later this simple act of          job that we live in. We don’t go home      the trash belonged to and notified my
changing a light bulb was brought up        after work. We go upstairs. We go          Property Manager immediately. She
as an act of preferential treatment.        to our apartments that are some-           then agreed that I should leave the
                                            times right in the main lobby. We          trash at the resident’s door along with
     At what point does an RM draw          get phone calls hours after our shift      a citation. The resident then accused
the line? People have told me through       because most RMs now are required          me of harassing her and asked that I
the years that they have had some           to carry a cell phone. We play and         be terminated. To make a long story
really unhappy Resident Managers.           live in the same environment so we         short, my Property Manager left me
They’d describe how the RM would            are “watched.” We have to be firm          hanging. She never once defended
just sit there and watch an elderly         but approachable. We have to be fair       my decision or supported the citation
woman struggle to get her groceries         when enforcing rules. We have to be        or that she even agreed with my deci-
in the elevator and not help. Most of       managers, security guards, landscap-       sion. She actually made me apologize
the time, it’s not because they don’t       ers, electricians, plumbers, custo-                          continued on page 16

    Anderson LAhne & FujisAki LLP
    A Limited Liability Law Partnership
    Pacific Guardian Center, Makai Tower
    733 Bishop Street, Suite 2301
    Honolulu, Hawai‘i 96813                  Congratulations to
    Telephone: (808) 536-8177
    Facsimile: (808) 536-4977

    Of Counsel:
                                           JOYCE Y. NEELEY
    Joyce Y. Neeley                        for her recognition in
    M. Anne Anderson
    Philip L. Lahne
    Lance S. Fujisaki          “The Best Lawyers in America”                               ®

    Pamela J. Schell
    Scott R. Grigsby                           Real Estate Law
    Randall K. Sing
    Rayni M. Nakamura
    Glenn S. Horio
16                                                                                                               August 2009
                                                            H A W A I I

ReEvaluating                               computer literate. We have e-mail
                                           and internet access so we can re-
                                                                                  that the Resident Manager has a life out-
                                                                                  side the property and are not expected
continued from page 15                     search vendors, materials, etc. We     to be on-site 24/7. The RM’s duties are
to the resident.                           maintain websites. We write news-      not limited to just assisting residents.
                                           letters. Many are now required to      And that the reason why a lot of proper-
    An RM’s responsibilities are not       keep track of the owner’s insurance    ties don’t have good consistent manage-
cut and dry. It needs to be reevaluated    information. How does a Resident       ment is that no one wants to work in a
every so often. Associations need to       Manager get compensated for the        hostile environment or for an association
recognize that our communities are         additional skills we now need so       with a weak or unmanageable board or
slowly aging and changing. A Resi-         our performance is acceptable?         property manager. Luckily today I have
dent Manager’s responsibilities need       Most managers have not received        a great working relationship with my
to change with the current times. Ten      any additional compensation.           staff and property manager including
years ago RMs were not as accessible                                              the majority of the residents and board
or as easy to reach as they are now.            Times are changing. Associa-      members. Although it’s always good to
Resident Managers receive phone calls      tions need to recognize this and ad-   remember, you can’t please everyone.
after hours with questions that are non-   just to it. Resident Managers need
emergency related. They are questions      to always remember that doing a        About the author: Wyman Chang is
that could have been asked during          kind act for someone may not al-       the resident manager at Royal Court.
the RM’s regular shift. More and more      ways be looked upon as that, a kind    Wyman be reached at 538-1733 or by
resident managers are required to be       act. Residents need to be reminded     email at

                                                                                       We have built relationships
                                                                                    that last with our associations
                                                                                                  for over 80-years
                                                                                       with value driven practices:
                                                                                                We listen, advise,
                                                                                           and perform our duties.
                                                                                            We are pro-active and
                                                                                   keep current on industry trends.
                                                                                       We provide timely accurate
                                                                                            financial information.
                                                                                        We assist in the long term
                                                                                         financial stability of the
                                                                                             association through
                                                                                               financial planning.
                                                                                    We carry out the requirements
                                                                                   as set forth in the condominium
                                                                                             governing documents.

                                                                                        Hawaiian Properties, Ltd.
                                                                                             1165 Bethel Street
                                                                                             Honolulu, HI 96813
                                                                                                Phone: 539.9777
                                                                                                  Fax: 521.2714
August 2009                                                                                                              17
                                                              H A W A I I

Free Stuff: Goodbye                                                                      CAI Programs
Clip, Hello Click                                                                       Committee Plans
                                                                                        2010 Seminars
     Before you head out to the grocery store or the mall, do a little web browsing
for online coupons that can save you a bundle. According to the Promotion Mar-            At its annual Programs Com-
keting Association Coupon Council, the average savings per coupon is $1.15.           mittee Retreat, the committee
                                                                                      selected the topics for 2010 and
     Most online coupon sites are searchable by brand name or product cat-            assigned the coordinators. Fol-
egory, which allows you to find coupons quickly for the specific items on your        lowing the meeting, Agnes Ringle
list—a big plus for list shoppers. If you’re headed to a particular store, be sure    arranged for facilities for these
to check that store’s website for special offers. Well-known product manufac-         sessions. Following is a list of
turers have printable coupons listed on their websites.                               topics and dates planned for 2010:
     Of course, you’ll need to print the coupons to take with you, but the on-
line versions are easier to find and there’s no clipping involved. Some sites will             January 30, 2010
require you to download software to print the coupons. This is necessary for the               Annual Meetings
barcode to print correctly and scan easily at the checkout counter.                    What you need to know and do
                                                                                      before, during, and after an annual
    Most sites will want you to register using your e-mail address. If you’re a                    meeting
serious coupon user, this can be good, since the sites will provide customized
information and incentives based on your favorite brands.
                                                                                                March 11, 2010
     Entering “free coupons” or “grocery coupons,” in your web browser will                     Aging Buildings
bring up thousands of sites, all offering similar basics; and each one usually         Issues and approaches to taking
has a few extras or special features. For example, one may e-mail coupons to            care of your building as it ages
you for grocery stores in your neighborhood based on your zip code. Another
will invite you to sign up to receive free samples of your favorite products in the             May 15, 2010
mail. Websites and features seem almost endless, so it’s easy to find a few you                    ABCs
like. For example, typical sites include:                                               A basic course for new board
    • This site lists stores alphabetically, so you               members—full day course
         can look for deals and coupons before leaving home. It offers financial      includes a comprehensive manual
         incentives for joining.
                                                                                                May 20, 2010
    • Joining this site earns you rebates when you shop
                                                                                            Board Do’s and Don’ts
         at certain online stores.
                                                                                        Solutions and pitfalls to avoid
    •    www. This site allows you to create your grocery list               issues such as covenant
         online and then searches for matching coupons.                                  enforcement, fiduciary duty,
                                                                                      architectural controls, fair housing
    Beware of websites “selling” coupons. Some are legitimate, but many are                    and free speech
fraudulent. Considering how many websites have free coupons, you may never
face this problem.
                                                                                                 June 1, 2010
                                                                                           1 Hour Board Meeting
Free Report Focuses on                                                                Tips on planning and conducting
                                                                                       board effective board meetings
Green Options                                                                         and limiting meetings to one hour

    The CAI Foundation’s latest contribution to the community association                       July 2, 2010
industry is Green Communities, an 80-page, free resource that community lead-               Legislative Update
ers and managers can use to encourage their associations to be more environ-          An overview of new laws affecting
mentally friendly. This Best Practices Report addresses transportation, waste,            community associations
governing documents, land-use, building and energy management and more. It
includes four case studies and an appendix on the “Top 10 Ways to Help Your                  September 1, 2010
Community Go Green.”                                                                      Maximizing your Dollars
    The report, the ninth by the Foundation, can be downloaded at www.cairf.           Things to consider in budgeting,
org. Other free, downloadable Best Practices Reports are:                                 saving, and spending your
                                                                                             Association’s dollars
    •   Community Harmony & Spirit
    •   Community Security
    •   Energy Efficiency                                                                           Note:
    •   Financial Operations                                                          topics and dates subject to change
    •   Governance
    •   Reserve Studies
    •   Strategic Planning
    •   Transition (from developer to homeowner control)
18                                                                                                                                            August 2009
                                                                            H A W A I I

                                                                                                                counselor and map out a plan
Job Loss                                      your situation. Be prepared to
                                              provide documentation of your                                     best suited to your situation.
continued from page 13                        setback, and have a resolution                                   The National Foundation for Credit
•    Have a family meeting that               plan in mind. Since the average                              Counseling is a national nonprofit
     includes the children. You don’t         consumer doesn’t know all the                                credit counseling organization. For
     want family members pulling in           loan modifications available, sit                            more information, visit www.DebtAd-
     different directions, and a joint ef-    down with a certified housing                       or call (800) 388-2227.
     fort yields a better result.
•    Make cutbacks wherever pos-
     sible, knowing that your austere
     lifestyle will only be temporary.                       we make managing
     Resolve to stop all non-essential
     spending immediately.                                 yOUr prOperty a Breeze!
                                                          at City mill, we love getting to know our customers and helping them solve their problems!
•    Tracking your spending is always           For over 109 years City mill has had the privilege of serving hawaii. With a City mill account, there’s no red
     a good idea, but when money is                   tape, no calling the mainland! if you have missing invoices, we can usually get copies out that day
     tight, it’s essential. Write down ev-       or the next working day!our accounts count on the fast turnaround! adding or deleting authorized buyers to
     ery cent you spend. After 30 days,         your account can be handled immediately. Your authorized buyers DoN’t have to carry cash, checks or have
     review where the money went and            one more card in their wallet. they just present their i.D. that’s a big security relief for everyone! Check out
     decide where to cut back. You’ll               our assortment of cleaning and maintenance needs, light bulbs, hardware, plumbing, paint, electrical,
     be amazed how much you can                                                             tools and garden supplies.
     save without feeling the pinch.         3 Next Day Delivery*               3 Quality Name Brands
•    Contact your creditors to arrange       3 Commercial Charge Accounts       3 Convenient Terms
                                             3 Special Orders                   3 Fax Orders
     lower payments. Most major
     credit card issuers have help           3 Delivery 7 Days a Week to Your Home or Jobsite*                        
                                             *See store for details.
     programs. Explain your situation                                          8 cOnvenient neighOrhOOd lOcatiOns
     and what you’re doing to resolve              hawaii kai                      hOnOlUlU          kaimUki                                 kaneOhe
     it. The creditor may be able to                Phone: 396-5151                  Phone: 533-3811           Phone: 735-7636               Phone: 247-2181
                                                     Fax: 396-4455                    Fax: 529-5871             Fax: 735-3680                 Fax: 235-6658
     temporarily lower your monthly                 333 keahole st.                 660 N.NimitZ hWY.         3086 Waialae aVe.            46-209 kahUhiPa st.
     payment and reduce interest.                    mililani                       pearl city                 waianae                      waipahU
                                                    Phone: 623-3100                   Phone: 487-3636          Phone: 696-6996              Phone: 671-1746
                                                                                       Fax: 488-7768            Fax: 696-8726                Fax: 677-2449
•    Inform your mortgage lender of                   Fax: 623-3133
                                                  95-455 maka’imo’imo st.          98-1277 kaahUmaNU st.     86-120 FarriNgtoN hWY.         94-157 leoleo st.
August 2009                                                                                                                    19
                                                               H A W A I I

  Volunteer for an
  Association Committee
       Committees are an important part of an association’s operations. Committee members help keep a commu-
  nity vibrant; and, by augmenting paid staff, they save the association thousands of dollars each year. Associations
  just wouldn’t be what it is without active and effective committees. They deserve everyone’s sincerest thanks.
      However, to be successful, an association needs to cultivate fresh ideas and encourage additional resident
  involvement in committees; so, consider how you might server on one of your Association’s committees.
      Committees give the board a way to gather information, offer new ideas and opinions and provide a training
  ground for future board members. All committees are advisory to the board unless given specific decision-making
  authority by the board or CC&Rs.
     The board provides each committee with a job description, goal and mission statement to help it succeed as a
  community resource.
      Most associations have three types of committees:
      •    Administrative committees, like an architectural control committee, are set out in an association’s bylaws
           and CC&Rs. They are ongoing, permanent and often have clearly defined power and authority.
      •    Standing committees, such as finance and facility management committees, are established by the board
           for an ongoing and specific purpose. These committees generally make recommendations to and act
           under the supervision of the board.
      •    Ad-hoc committees, such as a summer picnic or Christmas committee, are established by the board as
           needed for specific projects, events, or tasks. When the task is complete, the committee is disbanded.
       So, if you’re thinking about running for the board and want to learn a little more about association operations
  first, or if you’re interested in helping improve your community or just want to get out and meet neighbors, talk to
  your board about your association’s committees and how you might be able to help.

                                           Armstrong Consulting, Inc.
                                                Local, National & International

 Hilton Grand Vacations Club
     at the Flamingo
                                     World Class Clients Choose Armstrong                            Marriott Vacation Club
                                                                                                             Aruba Ocean Club
     at Hilton Hawaiian Village                                                                                 Aruba Surf Club
     at the Las Vegas Hilton               Budgets, Management & Planning                                  St. Kitts Beach Club
     at the Las Vegas Strip                                                                       Canyon Villas at Desert Ridge
     at SeaWorld Int’l Center                                                                         Fairway Villas at Seaview
     at South Beach                                    Reserve Studies                                           Grand Chateau
     at Valdoro Mountain Lodge                        Strategic Planning                                 Grand Residence Club
     Tuscany at Int’l Drive                          Project Management                                           Villas at Doral
     Kohala Coast Vacation Suites                   Insurance Evaluations                                  Horizons at Branson
     Plantation Beach Club                          Maintenance Planning                                          Timber Lodge
     The Bay Club at Waikoloa                                                                                    Summit Watch
                                                  Construction Management
     The Hilton Club New York                                                                                      Mountainside
 The Ritz-Carlton Club                            General Operating Budgets                                 Hotel Breckenridge
     at Aspen Highlands                                                                                 Mountain Valley Lodge
     at Bachelor Gulch                                                                                             Ocean Pointe
     at Jupiter                                                           Ocean Watch Villas
     at St. Thomas                    850 W. Hind Dr. #202 Honolulu, Hawaii 96821                           Barony Beach Club
    at Kapalua                           (808) 377-8500-bus. (808) 377-8511-fax                                   Grande Ocean
 Fiesta Americana Vacation Club                                                                                    Harbour Club
     at Los Cabos                                                                                                Harbour Pointe
 Embassy Vacation Resort                                     Local Clients                                        Heritage Club
     at Lake Tahoe                       Harbor Court -Yacht Harbor Tower – Ala Moana Hotel                             Monarch
     at Grand Beach                      Marco Polo – Village Green – Nuuanu Brookside                                 Surfwatch
 Four Seasons Hualalai                   One Kalakaua Senior Living-Kuakini Medical Plaza                     Kauai Beach Club
 Fairmount Orchid at Mauna Lani          The Windsor – Japanese Cultural Center – Kukui Gardens            Waiohai Beach Club
 Waipouli Beach Resort                   Oahu Country Club-Waialae Country Club – The Rosalei                 Maui Ocean Club
 Wyland Waikiki                          Harbor Square – Executive Center – Waialae Iki V                 Ko’ Olina Beach Club
                                         . . . . and many more!                                    Courtyard Kauai at Waipouli
                                                                                                                  U.S. Postage
                                                                                                                  Honolulu, HI
                                                                                                                  Permit No. 59
P.O. Box 976
Honolulu, Hawaii 96808

                                                                         H A W A I I

2009 SEMINARS                                                                                 2009 PMDP
Note – Dates and topics are subject to change
Friday seminars include Lunch • Saturday Seminars include Breakfast                            Courses
JCC=Japanese Cultural Center
                                                                                               Oct 15 – Oct 16 • Thurs-Fri
Date                         Topic                                    Seminar Coordinator                M-202
October 16, Friday           Why Nobody Likes You -                   Terrance Revere, Esq.    Nov 19 – Nov 20 • Thurs-Fri
Maui                         How Boards, Managers &                                                      M-205
                             Legal Counsel Can Improve
                                                                                               Dec 10 – Dec 12 • Thurs-Sat
                             Relations with Owners
October 17, Saturday         Why Nobody Likes You -                   Terrance Revere, Esq.
JCC                          How Boards, Managers &
                             Legal Counsel Can Improve                                        2010 PMDP
                             Relations with Owners                                             Courses
Seminars are partly funded by funds from the Condominium Education Fund, Real Estate           June 3 – June 5 • Thurs-Sat
Commission, Professional and Vocational Licensing Division, Department of Commerce                       M-100
and Consumer Affairs, State of Hawaii for condominium apartment owners whose as-
sociations are registered with the Real Estate Commission.                                     July 22 – July 23 • Thurs-Fri
                                                                                               July 29 – July 30 • Thurs-Fri
                                                                                               Oct 14 – Oct 14 • Thurs-Fri

                                                                                                    To register or for more
  CAI Hawaii accepts articles for publication on topics that are directly rel-                           information:
  evant to CAI Hawaii’s main purpose - improving the management and op-                       Call CAI Direct: (888) CAI-4321;
  eration of homeowner associations in Hawaii. CAI Hawaii edits articles for                   Call CAI’s Fax Back Service:
  clarity, not content, so the views expressed in published articles are those                     (703) 836-6904; or visit
  of their authors and not necessarily the views of CAI Hawaii.                      

To top