Are You Ready for Some Hockey

Our 11th Annual Hockey Night with the Houston Aeros will be on February 21st. We'll cheer on the Aeros as they face league newcomer, the Iowa Chops. This is going to be an exciting game. The Aeros are just 2 points behind the 2nd place Chops so this is very important game (the winner receives 2 points). We beat the Chops 3-1 in our first match up of this season and we'll play them seven more times.

And to commemorate the opening of our Bandera Office in the Texas hill country, we are particularly pleased to begin a new tradition: our 1st Annual Hockey Night with the San Antonio Rampage. On March 7th, we'll help the Rampage kick ice against a perennial powerhouse the Grand Rapids Griffins. We're hoping a few of our die-hard Houston Hockey Night fans will join us to show San Antonio how to have a good time at a hockey game.

Each year, we invite 500 of our community volunteers, employees and friends to join us to watch the Houston Aeros play a division rival. We'll have lots of door prizes, our collectible cowbells and programs for hockey newcomers. Everyone has a great time watching a fast-paced and really cool game. Click the photos below to see fun from the last few years.

This year at our Houston Hockey Night, we have a special treat for children 5 to 13 years old. During the second intermission, 20 children will get to go down on the ice after the charity "chuck-a-puck" and help pick up all of the pucks. They will be on the ice with mascot Chilly and the Aero Dynamics looking up at the thousands of fans in the stands.

2003	2004
2005	2006
2007	2008

Personal invitations are being mailed to all of our community volunteers, board members and friends in mid-January. Until then, mark your calendars for February 21st in Houston and March 7th in San Antonio. However, if you can't wait, feel free to reserve your tickets now by sending an email to HockeyNight@ciaservices.com.

Are Your Investments Safe

With all of the turmoil in the economy right now, we have all seen our personal investments shrink. But in your role as a board member, how have your association's investments done? Fortunately, they are safe. Not one penny of principal has been lost in any communities managed by C.I.A. Services. In fact, all investments have grown.

When we begin managing a community, we ask the board to consider and adopt an investment policy to define the priorities and constraints on handling the association's fund. The policy lists three priorities: (1) to protect principal, (2) to ensure funds are available as needed to meet the association's obligations and (3) to earn interest subject to the first two priorities.

In order to protect principal, the policy defines appropriate investments and prohibited investments. Only investments with a fixed asset value are allowed. Examples are bank accounts, money fund accounts, certificates of deposit and several other instruments. Specifically prohibited are stocks, bonds and mutual funds. In addition, to protect against bank failures, all funds must be insured (FDIC for banks or SIPC for brokerage firms) or backed by "the full faith of the government" (e.g. treasury bills).

We generally limit the investments we recommend to our associations to checking accounts, money market accounts, money market mutual funds ("money funds") and certificate of deposit (CDs). We use CDs extensively to increase interest earnings - they typically earn 4-5 times as much interest as a bank account. However, to make sure funds are available as needed, we must understand the cash flow of the association to develop an efficient investment program. After the annual budget is approved, we perform a Cash Flow Analysis and present investment recommendation to each board. The graph below represents the end result of this analysis. The top line is the total association funds at any time and the line below it represents the amount invested in CDs under the proposed investment program.

The operating funds for all of our communities are kept at Community Association Banc (CAB). CAB is based in Arizona and specializes in handling the needs of community associations across the nation. They are extremely good at what they do and allow us to offer financial services to our clients such as lockbox payment processing, online check and credit card payments, and capital project loans for communities. Last summer, CAB was acquired by Mutual of Omaha Bank and is now part of a larger banking organization. We are very pleased with CAB.

As a final financial note, the FDIC has recently increased its insurance limits from $100,000 per tax ID to $250,000 to assist individuals and organizations through the current worldwide economic crisis. In addition, a number of banks, including CAB through the Mutual of Omaha Bank, are now providing Excess Deposits Protection which increases the insured limits on money market accounts to $5,000,000 per tax ID number. Click here for more information on the CAB insurance protections.

The bottom line is that your association funds are safe, insured and conservatively invested.

Back in Session

The Texas legislature meets every two years and convenes its 81st session on January 13th and will be in session for 140 days until June 1st. Senators and representatives were able to start filing bills for consideration on November 1st and there are already a number of bills which deal with property owners associations (POAs).

If the early filings this session are any indications, there will not be a great deal of negative legislation against POAs. Senator Royce West from Dallas has produced the most filing and his bills are aimed at fine-tuning various parts of the Texas Property Code (TPC). Title 11 of the TPC deals with Restrictive Covenants and supplements, clarifies or overrides the governing documents of POAs in Texas. TPC Chapters 201 through 211 were added between 1985 and 2007. Many of the rules that POAs operate under today come from the TPC.

• Powers of POAs
• Filing of governing documents in public records
• Filing of management certificate in public records
• Requirement to provide resale certificate upon request
• Notice to owners prior to enforcement action
• Hearings in front of the board
• Foreclosure procedures
• Procedures for amending restrictive covenants
• Display of political signs
• Authority of county attorney to enforce restrictive covenants

• HB-147 (Todd Smith, Tarrant County) would add section 202.011 to prohibit a POA from adopting any rule prohibiting the respectful display of an American flag no larger than 3'x5'.
• SB-234 (Royce West, Dallas) would clarify section 207.003 regarding the content of resale certificates provided to owners.
• SB-235 (Royce West, Dallas) would add section 202.008 to prohibit a right of first refusal for the sale or lease or a residential unit in favor of the POA.
• SB-237 (Royce West, Dallas) would add several sections to chapter 209. Section 209.041 would allow any declaration to be amended with a vote of 2/3 of the members if the declaration requires a larger percentage. In addition, all ballots cast for amending a declaration must be deposited with the county clerk's office where they will be held for 4 years so they may be inspected by the public. Section 209.042 requires under certain circumstances that votes of the membership by tabulated by a neutral third party. Section 209.043 would prohibit the POA from withholding the right to vote from any owner. Section 209.044 would prohibit the POA from preventing any owner from running for a board position unless that person has been convicted of an offense involving moral turpitude. The POA may make information available to owners about candidates regarding any amounts due, violations of covenants and lawsuits. Finally, board member terms may be no longer than three years. Section 209.045 indicates that if a physical polling place is open for owner votes, then it must be open from 7 a.m. until 7 p.m. on the day the election is held. Section 209.046 requires that the POA bylaws contain certain basic information about board members, notice of meetings and mechanism for amending the bylaws.
• SB-238 (Royce West, Dallas) would amend 209.005 regarding owner access to association records. The amendment gives the owner several remedies in the courts if the POA fails to make the records available to the owner.
• SB-239 (Royce West, Dallas) would amend 209.006 regarding notice to owners before enforcement action is taken. The amendment clarifies that a deadline must be provided for curing the violation and that notice must be personally delivered or sent by certified mail.
• SB-240 (Royce West, Dallas) would add several sections to chapter 209. Section 209.0061 would require any fine to be reasonable and cumulative fines must be capped. In addition, the section would allow the POA to assess fines directly against tenants. Section 209.0062 would require POAs to accept payment plans unless the plan is greater than 12 months or if the owner has failed to abide by a plan in the past. The payment plan policy must be filed in the public records. Section 209.0063 deals with the priority of applying owner payments. Section 209.0064 requires a POA to bring action against an owner for unpaid fees within 10 years of the date of the debt. It specifies that section 16.004 of the Civil Practices and Remedies Code (4 year statute of limitations on collections) does not apply to amounts owed by owners to a POA.
• SB-241 (Royce West, Dallas) would add 209.0091 to prohibit non-judicial foreclosures.
• HB-371 (Jim Jackson, Dallas) would add section 209.014 to provide a mechanism for dissolving a POA. The law would only applies to POAs created after 9/1/09 and would require 25% of the owners to sign a petition calling for a vote of the members. The dissolution would pass with the consent of 2/3 of those voting in the special election for this purpose.
• HB-372 (Jim Jackson, Dallas) would make POAs subject to Government Code section 551.0015 (open meetings) and section 552.0036 (open records).
• HB-25 (David Leibowitz, San Antonio), SB-236 (Royce West, Dallas) and SB-403 (Jim Jackson, Dallas) would add section 202.008/010 to not allow a POA to prohibit or restrict an owner from installing a solar energy panel except in limited circumstances.
• SB-429 (Royce West, Dallas) is a consolidated version of SB-234, SB-235, SB-236, SB-237, SB-238, SB-239, SB-240 and SB-241.

Upcoming Seminars

Our C.I.A. Services Seminar Series is back after a break for the holidays. This is our 6th year of presenting educational seminars for our board members and other community volunteers. Each seminar concentrates on the practical aspects of the topic and provides board members with background knowledge to help them in their decision making. We consistently receive positive feedback on the content and presentation. To view the seminar descriptions and full schedule, click here or visit the Library page of our website.

Each seminar begins at 6:00 p.m. and runs 2 hours. We provide deli sandwiches so you won't have to rush to eat dinner beforehand.  You'll leave with knowledge you can use immediately and a great notebook with the seminar slides, samples and reference materials for your future reference and to share with others.

Understanding Collections & Financial Reports The first half of this seminar will cover all the steps involved in successful assessment collections. Since not everyone pays on time, we'll get into late fees, liens, payment plans, bankruptcy and all the legal remedies. The second half of the seminar deals with reading and understanding your financial reports. We'll trace the flow of money throughout the reports so you'll never be in the dark when staring at all those numbers. February 11, 2009 (Wednesday), 6:00 p.m. — North Office February 18, 2009 (Wednesday), 6:00 p.m. — Southwest Office

Practical Deed Restriction Management Deed restriction management is one of the most difficult tasks handled by homeowners associations because it involves subjective decisions, homeowner's property and emotions. This seminar covers the steps in deed restriction management and how a process can contain "intelligence" and common sense. We discuss the relation between deed restrictions and architectural guidelines and give you examples of well crafted guidelines. Practical deed restriction management requires clear communications and reasonable requirements. March 3, 2009 (Tuesday), 6:00 p.m. — Southwest Office March 26, 2009 (Thursday), 6:00 p.m. — North Office

You can register at any time by calling 713-981-9000 or emailing seminars@ciaservices.com.

CAI Upcoming Events

The Community Associations Institute (CAI) is a national trade organization for the community association industry. Houston has an active local chapter. A fun event is coming up this month and all homeowners, board members, community volunteers and others active in the industry are invited to attend.

• Saturday, January 17, 2009 from 7 to 11 p.m.
• The Club at New Territory, 1200 Walker School Road, Sugar Land

Tickets are available now - $30 per person or $45 per couple. The ticket price includes dinner, two drink tickets and "play" money. Dinner will be served from 7:00 to 8:30 p.m. Gaming will begin at 8:00 p.m. Make plans now to have an evening of fun, fabulous food and prizes, prizes, prizes! Prizes already donated include a television, GPS system, gas grill, margarita machine and much, much more! There will also be a silent auction for a trip for two to Las Vegas! Contact Leslie Baldwin at 713-981-9000 or baldwin@ciaservices.com.

Community of the Month

We are proud of every one of our communities so it is always hard to find just one to highlight. We start by having each of our Community Managers write a nomination for one of their communities. We then read them and take a vote. Here are our most recent selections:

• January - Cinco Ranch Residential Association II
  Southwest - Shad Johnson, Community Manager
• December - Morningside Place Section 1 Homeowners Association
  Southwest Office - Tony Victorino, Community Manager
• November - Colony Creek Village Community Association
  North Office - Diane Santos, Community Manager

To see the full story on these communities and to see the past winners, visit the Community of the Month page on our web site.

Anniversaries

Every month we appreciate the communities that are celebrating their anniversaries with us. Here are our clients that started with us in November, December and January.

• Hunterwood Village II Association — 23 years
• Heather Ridge Homeowners Association — 17 years
• Lincoln Green Estates Community Improvement Association — 15 years
• Lochshire Maintenance Fund Inc — 15 years
• Community Association of the Highlands — 12 years
• Atascocita West Community Improvement Association — 11 years
• Southdown Community Association — 10 years
• Brazos Lakes Property Owners Association — 8 years
• Pine Brook Community Association — 8 years
• Plantation at Woodforest Community Association — 8 years
• Hunters Glen Community Association — 7 years
• Legends Run Homeowners Association — 5 years
• Oak Park Ridge Homeowners Association — 5 years
• Silver Ridge Homeowners Association — 5 years
• Quail Green South Community Association — 4 years
• The Stable Gate Homeowners' Association — 4 years
• Cumberland Community Association — 1 year
• Heron Nest Owners Association — 1 year
• Oakbrook Homeowners Association — 1 year

Our goal has always been to create a positive, long term relationship with all of our client communities. We are very proud to be managing all of these communities.

New Communities

C.I.A Services continues to grow as more communities hear about our unique approach to community association management. We would like to welcome our newest clients that have come on board in the last three months.

• Canyon Gate at the Brazos Owners Association - Southwest Office - Leslie Baldwin, Community Manager
• The Lakefront Association - Southwest Office - Margaret Eckhardt, Community Manager

Employee Spotlight

• We are pleased to announce the recent promotion of three of our top administrative assistants to Community Manager. Annette Escarenio from our North Office is a stockholder who has been with us 6 years. Anna Morfin-Marron from our North Office began with us in 2004. Nellie Martinez from our Southwest Office began with us in 2005.
• Welcome to two Community Managers that have recently joined us. Shad Johnson is located at our Southwest Office and Mary Jane Canavan is based at our North Office.
• Congratulations to Brenda Alvarez on her 20th anniversary with C.I.A. Services. Brenda began as an administrative assistant and was quickly promoted to Community Manager and then Office Manager for our North Office. She is a valuable employee and stockholder for our organization.
• Congratulations to two of our Maintenance Coordinators and stockholders on their anniversaries with our company. Dawna Woods at our North Office celebrated her 12th anniversary and Ed Barnett at our Southwest Office celebrated his 9th anniversary.
• Congratulations to two of our North Office Staff Support personnel and stockholders on their anniversaries with our company. Charlotte Bulcken has performed various financial and administrative services for 13 years and Liz Holiday has handled home improvement and new construction request for 12 years.
• Congratulations to Shadala Jackson who recently graduated from the University of Phoenix with a Bachelors degrees in Business Administration. Shadala is an administrative assistant at our North Office.



Annette Escarenio		Anna Marron		Nellie Martinez

Shad Johnson		Mary Jane Canavan

Brenda Alvarez		Dawna Woods		Ed Barnett

Charlotte Bulcken		Liz Holiday		Shadala Jackson





C.I.A. Services, Inc. www.ciaservices.com Toll Free: 866-219-0563
Southwest Office 9800 Centre Parkway, Suite 625 Houston, Texas 77036-8294 Phone: 713-981-9000 Fax: 713-981-9090	North Office 8811 FM 1960 Bypass, Suite 200 Humble, Texas 77338-4023 Phone: 281-852-1700 Fax: 281-852-4861	Bandera Office 465 Bear Springs Road Pipe Creek, Texas 78063-3178 Phone: 830-535-6222 Fax: 830-535-4265


(c) 2009 C.I.A. Services, Inc.