CAI-NJ Aug. 2020(w)

Community Trends ® August 2020

MicroStockHub/ iStock / Getty Images Plus

• Dealing with the Many Facets of Compliance • Housing Inspection Exemptions • Just Try to Comply! Compliance Problems Created by the Radburn Regulations • X-Rated • ....and more In This Issue

The Community Associations Institute New Jersey chapter would like to thank its 2020 Ultimate Partners below. For more information on our sponsorships, please contact CAI-NJ at 609-588-0030 or info@cainj.org.

Becker & Poliakoff, LLP

T hank You Fo r You r Suppo r t !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

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Dealing with the Many Facets of Compliance Carly Brancato, CPA and Michael Mezzo, CPA WilkinGuttenplan

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Housing Inspection Exemptions By Steven Morris, P.E., RS Morris Engineering

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Just Try to Comply! Compliance Problems Created by the Radburn Regulations By Mary W. Barrett, Esquire Stark & Stark

18

36

X-Rated By Robert Roop, P.E. Lockatong Engineering, Inc.

42

Management Trends: Navigating Compliance — The Long and Winding Road of DCA Inspections By Denise Becker, CMCA, AMS, PCAM Corner Property Management, AAMC

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47

Spotlight on Service Featuring Georgette Kyriacou FWH Engineering

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42

EXTRAS President’s Corner Looking Ahead

5 6 7 8

CAI-NJ Upcoming Events

Legislative Update

Your Voice is Key for NJ-LAC and CA-PAC

11 15 25 47 50 51 54 56

Webinar Wednesdays

2020 Shoot the Cover Photo Contest

Spotlight on Service

New Members

47

CAI Membership Application 2020 Ultimate Partner Listings CAI-NJ Career Headquarters

ihorzigor/ThitareeSarmkasat/vDraw/bakerjarvis/vittaya25/ iStock / Getty Images Plus

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CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

VICE PRESIDENT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

PRESIDENT ELECT LOREN LIGHTMAN, ESQ. HILL WALLACK LLP

PRESIDENT JENNIFER NEVINS, CMCA DW SMITH ASSOCIATES, LLC

TREASURER TONY NARDONE, MBA, PCAM CORNER PROPERTY MANAGEMENT, AAMC

SECRETARY MARK WETTER, ESQ. RADOM & WETTER

BOARD MEMBERS Benjamin Basch American Pool Enterprises

Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader Christopher Nicosia, CMCA, AMS, PCAM

Business Partner Donna Belkot Taylor Management Company, AAMC, AMO Community Association Manager Vanessa J. Davenport Regency at Quailbrook Homeowners Association Homeowner Leader

Prime Management, Inc., AAMC Community Association Manager Mohammed Salyani, CPA

WilkinGuttenplan Business Partner

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

GENERAL COUNSEL EMERITUS Wendell A. Smith, Esq., CCAL Greenbaum, Rowe, Smith & Davis, LLP

IMMEDIATE PAST PRESIDENT Mohammed Salyani, CPA WilkinGuttenplan

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PRESIDENT’S CORNER Jennifer Nevins, CMCA CAI-NJ 2020 PRESIDENT | DW Smith Associates, LLC

“The only way to make sense out of change is to plunge into it, move with it, and join the dance." — Alan W. Watts

CAI-NJ TEAM

ANGELA KAVANAUGH CHAPTER EXECUTIVE DIRECTOR ANGELA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, CONFERENCE & EVENTS JACLYN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS COMMUNICATIONS MANAGER BROOKE@CAINJ.ORG JENNIFER FARRELL ADMINISTRATIVE COORDINATOR JENNIFER@CAINJ.ORG

Change — It’s the Only Constant These Days! The concept of change has now become our “new normal”. Like the quote above suggests, CAI-NJ has plunged into change, moved with it and joined the dance! Angela Kavanaugh, Ray Dickey and the entire CAI Team have been working over- time to ensure that we provide the education, advocacy and networking programs that are critical to our membership. In addition, we are excited about a change hap- pening within our own CAI Team… so, please be on the lookout for an upcoming announcement regarding CAI’s new Membership Manager! Exciting New Plans — Virtual Everything! As we segue from in-person events to “Virtual Everything”, we embrace exciting new opportunities to connect with each other through virtual programming. We are thrilled to offer new Educational Programs including our Webinar Wednesday series, addressing relevant topics concerning your business or community from leading professionals in our industry. In addition, our Board Leadership Development Workshop will be presented in August in a new and exciting way… 3 virtual sessions covering important board member training. Regarding our Networking Programs, our energetic F.A.S.T. Committee contin- ues to hold the popular Cyber Trivia Breaks benefitting local charities, and our Women’s Leadership Committee continues to host the insightful She-Connects podcast discussions. Newest on our slate of programs – the CAI-NJ HOA Feud! We are truly looking forward to having fun as businesses compete against management companies… so plan to join a team or be a spectator and support your friends and colleagues in the industry! Also, be on the look-out for F.A.S.T.’s upcoming Virtual Make-A-Wish Tricky Tray this September! CAI Matters More Than Ever — Advocacy, Advocacy, Advocacy! As we’ve said before, there is no time like the present to recognize the value of our NJ-LAC — New Jersey Legislative Action Committee and CA-PAC — Community Associations Political Action Committee. LAC’s advocacy is critical to the health of our industry — especially now. With your help, PAC provides the critical financial support for the LAC to advance the chapter’s interests on a state-wide basis. Virtual Legislative Update Programs have been held over the last few months and this important series will continue through 2020. The July update included a critical discussion on proposed leg- islation regarding CIC immunity from COVID19 claims. It also included updates on the appeal of the Radburn regulations, specific debt collection bills and regulations regard- ing the terms “benefits derived and adequate reserves”. Please read George Greatrex’s Legislative Update in this issue for more detailed information as well as, check out the playback of this program on the CAI-NJ Webinar Library on the website! In Closing — We Thank You! There are many new and exciting programs on the horizon for our members and it is the hope of the CAI-NJ Board of Directors and the entire office team that our members continue to recognize the value that CAI-NJ brings to them. The success of our chapter is the result of your support. Please stay safe and remember that CAI-NJ is part of your family, and my “door” is always open. n

Contact CAI-NJ

ADDRESS CAI-NJ

500 HARDING ROAD FREEHOLD, NJ 07728 PHONE 609-588-0030 FAX 609-588-0040 WEB WWW.CAINJ.ORG EMAIL INFO@CAINJ.ORG

CAI-NJ on Social Media

www.facebook.com/ CAINJCHAPTER Community Associations Institute - New Jersey Chapter

@cainewjersey

5 www.youtube.com/ channel/UCuw0o4xfAO _wcKQM8V4rvwA

LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

Embracing needed change, allows oneself to transform and discover new opportunities. Thanks to technology we don’t need to be in the same room to learn, stay informed or network. The New Jersey chapter of CAI is committed to offering ways for members to do all of this from their homes or remote offices that ensures everyone’s safety. So, if you haven’t heard already, in-keeping with this commitment, we have made the deci- sion to cancel all in-person events for the remainder of the year. We are, however, very excited to have a full Virtual Programming schedule of events and resources available to our members. The new plan is packed with options that allow us to continue to educate on topics specifically for common interest communities as well as fun networking. All while bringing value to our members, which is a priority to the CAI-NJ Team and the Board of Directors. Wednesday Webinars have begun, offering con- tinuing education credits for our manager members and infor- mative sessions for our homeowner leaders as well. We are fortunate to have so many members that are experts in their fields willing to share their knowledge with membership. These weekly sessions, all virtual, will run through the end of the year offering topics affecting your business and common interest communities. Topics for the month of August will include: Conflicts of Interest and Ethics, Temperature Scans, Mold Restoration, Recruiting, Selecting and Managing Personnel, Reviewing and Amending Governing Documents, Roofing, Providing Good Customer Service, Chimney Chase Caps, Using Budgets and Financial Reports as Management Tools, Assessment Procedures and Pest Control just to list a few. Please refer to our website, www.cainj.org, for a complete schedule and to register. The Legislative Action Committee (LAC) plans to continue to host virtual updates as their advocacy evolves. LAC, made up of devoted volunteers, is constantly monitoring

legislation, educating those that make the laws, on what is the best decision for those living and working in our communities. Friday HOA Feud. A fun way to reconnect with members that have become long-time friends while building new relationships. Each Friday game show will challenge a different Management Company team against one made up of our Business Partner members, all while being viewed by the audience, YOU, our members. Take a break from your work week and be entertained by your managers and service providers. Virtual Conference & Expo. A library of exhibitor videos will soon be available on our website. At your lei- sure, you will have the opportunity to learn what benefits “We are...very excited to have a full Virtual Programming Schedule of events and resources available to our members." our exhibitors can provide for your community plus how to connect with them. Videos will be cataloged on the CAI-NJ website by service type and company name. The catalog will soon become an excellent reference tool for community boards and managers. Live-stream sessions presented by our exhibitors will allow you to connect with them, asking questions on topics that are specific to your needs. Take advantage of these small group Q&A sessions just as you would have walking the tradeshow floor. Daily drawings sponsored by our Partners – Everyone looks forward to tradeshow giveaways. This year the 2020 Conference & Expo will last for months instead of just one day. All webinar and game show attendees will have a chance to win fun prizes during our daily drawings. CONT I NU E S ON PAGE 49

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CALENDAR 2020 Events & Education

AUGUST

SEPTEMBER

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Webinar Wednesdays - Mold Resto- ration, Conflicts of Interest and Ethics, Board Training, and Temperature Scans Live Webinar

HOA Family Feud Live Webinar

F.A.S.T. Make-A-Wish Tricky Tray Live Webinar

7 10, 17 &24 12

HOA Family Feud Live Webinar

HOA Family Feud Live Webinar

Board Leadership Development Workshop Live Webinar

OCTOBER

2 16 30

HOA Family Feud Live Webinar HOA Family Feud Live Webinar HOA Family Feud Live Webinar

Webinar Wednesdays - Reviewing and Amending Governing Documents, Roof - Maintenance, Roof - Engineer- ing, and Roof - Materials Live Webinar

21 25

HOA Family Feud Live Webinar Cyber Trivia Break Virtual

Register for these and other events at www.cainj.org

All events are subject to change

LEGISLATIVE UPDATE

GEORGE GREATREX, ESQ. PARTNER, HILL WALLACK LLP LEGISLATIVE ACTION COMMITTEE CHAIR

Thanks to our Homeowners Leaders & Congratulations to our New Jersey Legislative Action Committee

I t seems these days that we don’t use the phrase “thank you” nearly enough. I’m going to take this opportunity to say it to two groups of people in our industry who truly deserve it and don’t hear it enough: our volunteer home- owner leaders, and our Legislative Action Committee (LAC) members. Most executive board members give unselfishly of their time and talents to promote and protect the health, safety and welfare of the members and residents of their common interest communities. Contrary to what many believe, this is no easy task, especially in today’s world. While many board decisions address run-of-the-mill issues such as what landscaping vendor to hire, we forget that some decisions can have life and death consequences. I refer of course to this year’s decision to open association’s recreational amenities or keep them closed in light of the COVID19 pandemic. As we have all learned, gatherings of people in close proximity to each other in public places increases the risk of transmission of the virus from person to person. Those types of public places in common interest communities include pools, clubhouses, basketball courts, playgrounds and tennis courts. What board member would want to be responsible for increasing this risk to their friends and neighbors in this way? To make the decision even harder is the knowledge that if one or more people sue their association and board members claiming they contracted the virus while using the association’s amenities, it is likely there will be no insurance coverage for either the legal fees incurred to defend the suit, or to pay a settlement or judgment entered against them. This could have potentially devastating financial con- sequences for the association, its members and its trustees.

“I am also aware of some trustees who resigned after their board voted to open their pool for fear of being sued personally...” Yet we have heard many accounts of board members who voted to keep their amenities closed for those very reasons being ridiculed and harassed for making that decision. I am personally aware of several board members who resigned from their board positions under the strain of this backlash from some of their members. I am also aware of some trustees who resigned after their board voted to open their pool for fear of being sued personally if one or more of their members sued the board for having contract- ed the virus after having used the pool. For most board members who approach their position and duty in good faith and with the best of intentions, “I didn’t sign up for this” is a phrase that has likely crossed their minds at least once. I wouldn’t blame them. So, while we may not always agree with the decisions our executive boards make, let’s remember that they are volunteers and are worthy of our gratitude for stepping up and taking on a job not many people want. And speaking of gratitude, I would like to express my congratulations to my colleagues and friends on the CAI Legislative Action Committee-NJ for having been named the “Legislative Action Committee of the Year” by What board member would want to take such a risk with the association’s finances?

CONT I NU E S ON PAGE 57

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2020 CAI-NJ COMMITTEES

AWARDS COMMITTEE Eileen Szelewicki, CMCA — Chair Michelle Gadaleta — Vice Chair

EDITORIAL COMMITTEE Robert Arnone, CMCA, AMS, CPM — Chair Michael Mezzo, CPA — Vice Chair Mary Barrett, Esq. Brian Griffin, Esq. Nicole Martone, CMCA, AMS, PCAM Steven Morris, PE, RS Robert Roop, PE Michael Ryan Carol Shenk Larry Thomas, PCAM Jaquelyn Williams

HOMEOWNER LEADER COMMITTEE Roslyn Brodsky — Chair Richard Pucciarelli — Vice Chair Lois Gerber Richard Lans Deana Luchs Judy Miao Cheryl Palent Howard Staum Robert Travis Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko LEGISLATIVE ACTION COMMITTEE (LAC)/PAC George Greatrex, Esq. — LAC Chair A. Christopher Florio, Esq. — LAC Vice Chair Liz Comando, CMCA, PCAM — PAC President Paul Raetsch — PAC Vice President

MEMBERSHIP COMMITTEE Briana Walsh — Chair Steven Mlenak, Esq. — Vice Chair Tara Baldwin, CPA Lysa Bergenfeld, Esq. Jennifer Cardak, CMCA Megan Elgard Nichole Gist Nikolaos Haralambopoulos, CPA Bill Harvey Kathleen Radler Debra Rizzi Steve Roderick Ken Shah

Neil Betoff Rich Cassilli Drew Cowley Lindsay Cupples Kim Dempsey Annie Gonzales Ellen Goodman, Esq. Lila Khiry Christine Maldonado Drew Podolski, Esq. Kari Prout Joe Tible Mary Visco Sandi Wiktor Board Liaisons:

Charles Witczak Board Liaisons: Benjamin Basch Jennifer Nevins, CMCA Staff Liaison:

Amy Shorter Mark Siwiak Board Liaisons: Charles Lavine Tony Nardone, MBA, PCAM Staff Liaison: Brooke Stoppiello-Nevins NETWORKING EVENTS COMMITTEE Gary Gleitman — Chair Freedom Hildreth — Vice Chair

Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Kristy Winchock — Chair Nicole Miller, Esq. — Vice Chair Matt Antico

Loren Lightman, Esq. Jennifer Nevins, CMCA Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE Ryan Fleming — Chair

Karyn Branco, Esq. Joseph Chorba, CPA Barbara Drummond, CMCA, PCAM Matthew Earle, Esq. Vincent Hager, CIRMS Sue Howe, AMS, PCAM Steve Kroll Christine Li, Esq., CCAL Jim Magid, CMCA, AMS, PCAM Thomas Martin, Esq. Glen Masullo, CMCA, PCAM Michael Pesce, PCAM J. David Ramsey, Esq. Lisa Rayca, CMCA, AMS Caroline Record, Esq. Edward San George, PCAM Board Liaisons: Vanessa Davenport Loren Lightman, Esq. Staff Liaison: Angela Kavanaugh MANAGER COMMITTEE

Jessica Baker, Esq. Martin Cabalar, Esq. Angela Celeste Gabriella Esposito, Esq. Shelby Evans Ashley Gray, CMCA Amy Huber, Esq. Steven Kuhnert Jessica Long Kristin Marzarella Robert Radcliffe Rachel Richardson, CMCA Matthew Sengsourinh Jimmy Stovall Lauren Vadenais David Vargas Gabe Vitale Board Liaisons: Jeffrey Logan Mohammed Salyani, CPA

Dean Catanzarite Diane Cody, PCAM Rhett Cowley Jose Elvir Dori Gwinn, CMCA Pam Illiano Carol Nickerson, CMCA Jeffrey Paige, Esq. Debbie Pasquariello, CIC, CIRMS

Thomas Asciolla Theresa Beckett Seth Frumkin Caroline Fusella Keith Giliberti Saher Gouda David Kalen

Dawn Kearney Michael Luzzi Kim Manicone Jessica Marvel Jill Nappi Julie Nieves Daniel Roose David Ross Herman Shauger Jessica Vail David Velasco Gregory Vinogradsky, Esq. Lisa Wagner

Daniel Reilly Jose Romero

Chris Rosati Peter Shine Adriana Sireci Erica Taras Melissa Volet, Esq. Board Liaisons: Charles Lavine Mark Wetter, Esq. Staff Liaison: Jaclyn Oskierko

Staff Liaisons: Jaclyn Oskierko Brooke Stoppiello-Nevins GOLF OUTING COMMITTEE Eric Eggert — Chair Tom Witkowski — Vice Chair Joseph Balzamo, CMCA Raymond Barnes, CMCA, AMS, PCAM Chris Belkot

Kristina Munson, CMCA, AMS, PCAM — Chair Denise Becker, CMCA, AMS, PCAM — Vice Chair Mary Barone, CMCA, AMS

Board Liaisons: Benjamin Basch

WOMEN’S LEADERSHIP COMMITTEE Nancy Hastings, CMCA, AMS, PCAM — Chair Cheryl Rhine, CIC, CIRMS — Vice Chair Briana Benitez Cathy Brennan, Esq. Karen Carway-Meehan, CMCA Corina Cornett Holly Foley, CMCA Jessica Hatton Martinia Heath, CMCA, AMS Lirelle Klein Georgette Kyriacou Pamela Lawler Toni Licciardi Elina Shchervinsky Nicole Skaro Mariaellen Varelis

Jeffrey Logan Staff Liaison: Jaclyn Oskierko CONFERENCE & EXPO COMMITTEE Jessica Kizmann, CPA — Chair Stacey Imber — Vice Chair Kristie Bendick, CMCA Joe Bonafede Jay Burak Nicole Camarota Ellen Comiski, CMCA Jeffrey Cuevas John Echelmeier Shaun Hynes Tanya Jimenez

Jeff Cirkus, CMCA, AMS, PCAM Chuck Graziano, CPM, PCAM Dawn Mackanic, CMCA

Christopher Maus, CMCA, AMS Erin O’Reilly, CMCA, AMS, PCAM Ingrid Roe, CMCA, AMS Kerri Stimpson, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Board Liaisons: Donna Belkot Tony Nardone, MBA, PCAM Staff Liaison: Jaclyn Oskierko

Scott Brandle Patti Clemente Marty Ehrlich Sal Iozzia Hank Johns Lisa Komitor Cathy Mango

Ryan Mckinney Karl Meth, Esq. Paul Migliore Mike Polulak, Esq. Ross Rutman David Shahrabani Jasmin Shelton Stephen Slotnick, CMCA Ryan Weiner Board Liaisons: Chris Nicosia, CMCA, AMS, PCAM Mark Wetter, Esq. Staff Liaison: Jaclyn Oskierko

Michael Kennedy Terry Kessler, Esq. Konrad Kurach

Patricia Ventura Board Liaisons:

Richard Lang Denise Mack Renee Miraglia Kevin Oliver Jackie Thermidor, CMCA, AMS Board Liaisons: Donna Belkot Mohammed Salyani, CPA Staff Liaison: Jaclyn Oskierko

Loren Lightman, Esq. Jennifer Nevins, CMCA Staff Liaison: Jaclyn Oskierko

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CAI-NJ 2020 PARTNERS

FWH Associates, P.A. G & C Electronics GAF Hill Wallack LLP Kipcon Inc. McGovern Legal Services, LLC mem property management, co, inc, Rezkom Enterprises, Inc. Taylor Management Company, AAMC, AMO

Ansell Grimm & Aaron, PC Associa Community Management Corp., AAMC Becker Belfor Property Restoration Brown & Brown Insurance of Lehigh Valley C & L Sweeping & Pavement Maintenance Corner Property Management, AAMC Denali Property Management, Inc. DW Smith Associates, LLC

Technocality, Inc. WilkinGuttenplan

The Falcon Group - Engineering, Architecture & Reserve Specialists

Accent Group Adamas Building Services Advanced Pavement Group Amco Pest Services, Inc. Apex Contractors, LLC Becht Engineering, BT, Inc. Buckalew Frizzell & Crevina LLP Cowley’s Termite & Pest Control Services Curcio, Mirzaian & Sirot, LLC

Griffin Alexander, P.C. Hillcrest Paving & Excavating, Inc. Jesan Construction and Maintenance JGS Insurance KPI 2 Contractors, Inc.

Preferred Community Management Services, Inc., AAMC Premier Management Associates, AAMC Professional Restoration Services

Quality 1st Contracting, Inc. Rainbow G & J Painting, LLC Regal Restoration RMG, Regency Management Group, Inc., AAMC R.M. Termite & Pest Control SageWater Stark & Stark USI Insurance Services Valley Bank Witczak Engineering

Lemus Construction, Inc. L.N. Rothberg & Son, Inc. Mackoul Risk Solutions, LLC

Morris Engineering, LLC National Contractors, Inc. O & S Associates, Inc. Pardini R Construction Corporation PeopleFirst Property & Casualty Services Popular Association Banking

Cutolo Barros, LLC Dior Construction FirstService Residential, AAMC

Frank Macchione Construction Paving Plus Greenbaum, Rowe, Smith & Davis, LLP

Accurate Reconstruction AR Management Company Environmental Designers Irrigation, Inc. Eosso Brothers Paving Felsen Insurance Services

Peter Waldor & Associates, Inc. Radom & Wetter Attorneys at Law Renda Roads, Inc. South Shore Construction, LLC Union Bank HOA Services

Giordano, Halleran & Ciesla, P.C. Hueston, McNulty, Attorneys at Law Landscape Maintenance Services, Inc.

MyPropertyBilling.com, LLC National Cooperative Bank

YOUR NJ-LAC & CA-PAC WORKING HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

Walk the halls of our capitol in Trenton and you see a lot of doors… doors to legislator’s offices… doors to committee rooms… doors to the Assembly and Senate chambers. It takes a lot to get through those doors. You’re not just invited in. You need a key. With a key you’re taken seriously. With a key, you get things done. THAT’S WHY CAI-NJ CARRIES THREE KEYS: • Your Legislative Action Committee (NJ-LAC): Your key eyes, ears, legs and voice in the legislative process. • Your Political Action Committee (CA-PAC): Your key contributions to support elected officials who aim to strengthen your community. • Your Professional Lobbyists: Your key, full-time pros retained by the LAC who know government’s ins and outs, advise us on who to see and when, and how to connect . WHAT CAN YOU DO?: • Take Action – Your voice is key! After meeting with elected officials and clarifying our position on pending legislation, we will alert you to the most crucial actions you can take. By calling or writing your officials, you ensure that your voice, and our agenda, is heard. • Give – Your donations are key! Supporting the PAC with your donations shows legislators that you’re serious, and that our cause counts. • Promote – Your personal influence is key! Talk about CAI-NJ’s legislative engagement in your community and business. Let fellow residents know that we’re fighting for them and their communities!

The keys only work with your support.

Make your gift to the CA-PAC today!

Yes, I’d like to support CA-PAC with a pledge!

I AM A...

____ Community Association Manager. You represent a company or association who manages CAI-NJ communities.

____ Community Supporter. You represent a business that supports CAI-NJ communities with services or products.

____ Community Resident. You live in a CAI-NJ community and want to see it grow strong.

My Association/Management company is making a PAC gift of:

___ $250 ___ $500 ___ $1000 or $________

___ $100 ___ $250 ___ $500 or $________

My supporting business is making a PAC gift of:

I am personally making a PAC gift of: ___ $50 ___ $100 ___ $250 or $________

Community/Company: ________________________________________________________________________________________________ Individual Name:_____________________________________________________________________________________________________ MailingAddress:______________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________ Phone:_________________________________________________________Fax: ________________________________________________ Email:________________________________ Occupation:______________________ Employer:_____________________________________ Employer Address:___________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________

Management Company Name: _________________________________________ (Community Association’s Only) DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS

Please make your CORPORATE or PERSONAL CHECK payable and mail to: CA-PAC, 500 Harding Road, Freehold, NJ 07728

The New Jersey Election Law Enforcement Commission requires us to collect and report the name, mailing address, occupation and name of the employer of contributors whose contribution exceeds $300 in a calendar year. Contributions to CA-PAC are not deductible for federal income tax purposes. Contributions are not limited to suggested amounts. CA-PAC will not favor nor disadvantage anyone based upon the amounts or failure to make PAC Contributions. Voluntary political contributions are subject to limitations of ELEC regulations. CA-PAC contributions are not considered payment of CAI dues.

TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO: CA-PAC, 500 Harding Road, Freehold, NJ 07728 | or visit: www.cainj.org/capac

DEALING WITH THE MANY FACETS OF

ihorzigor/ iStock / Getty Images Plus

By Carly Brancato, CPA and Michael Mezzo, CPA, WilkinGuttenplan

W hether it be within our local municipalities, social groups, or even within our own com- munities, it seems that we are surrounded by a world of rules and regulations. For a condominium or homeowners association, remaining in compliance with the countless rules and regulations impacting your site can be a difficult course to charter. This month’s issue has discussed many of the different issues of compliance that condomini- ums and homeowners associations must consider. Within this article, we will discuss some additional regulations which boards should be aware of, as well as their financial impact. One of the first places boards can look for regulations is within their own internal set of bylaws as these are con- sidered the foundation for the way in which an association operates. Often, an association’s governing documents set forth certain rules to which the board has a fiduciary respon- sibility to adhere to. Does the association need to have an audit done? How often is the board required to meet? How often should open meetings for homeowners be held? Is a capital contribution collected at the time of each closing? Are late charges or penalties applied to maintenance fees submitted after the due date? If so, what are these charges? All this information and more can be found in the governing

documents of every association. Most bylaws require that on an annual basis, the board conduct a financial audit (to be completed by an indepen- dent auditor) of the books and records of the association. Furthermore, the bylaws may require a timeline for said audit. For example, some bylaws require that the audit be completed no later than 90 days from the association’s year end. It is important for boards to be aware of such financial regulations in order to ensure that they remain in compliance with their governing documents. Other regulations included within an association’s gov- erning documents can include restrictions on voting rights, use of common amenities and general operation of the site. Although, over time the board members and management can and likely will change, the governing documents pro- vide consistency for the association’s operations and act as a guide for the current board. It is vital that all board members familiarize themselves with the regulations includ- ed within the bylaws to ensure that they are acting in good faith and complying with the rules set forth in their internal governing documents. The board must also ensure that they are enforcing the rules and regulations outlined in these governing documents in a consistent and uniform way. In addition, it is not uncommon for a set of governing CONT I NU E S ON PAGE 14

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COMPLIANCE... from page 13.

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documents to require a certain per- centage of approval votes in order to make any changes or amendments to the bylaws. For example, to change something as simple as a working capital contribution or closing fee, the board may need to go through a process of proposing and approving an amendment. Depending on the requirements outlined in the governing documents, this could require a vote, and may not be as easy a change as originally anticipated. “There may be scenarios in which the board is unsure of what actions can or should be There may be scenarios in which the board is unsure of what actions can or should be taken that would be considered compliant based on the governing documents. In these types of situations, it is recommended that the board consult their attorney or accountant. Other scenarios in which the board may feel it is necessary to consult a professional is when applying for a loan. As the association matures, major repairs or renovations may present a financial challenge. In these situations, the board may decide obtaining a loan is the best solution. Often, within the taken that would be considered compliant based on the governing documents.”

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CONT I NU E S ON PAGE 16

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WEBINAR WEDNESDAYS

LIVE WEBINAR | EVERY WEDNESDAY AFTERNOON

Tune in every week to learn about important issues affecting your business or common interest community!

MANAGERS WILL RECEIVE 1 CEU CREDIT FOR ATTENDING* *MUST ATTEND ENTIRE SEMINAR TO RECEIVE CREDIT

Visit www.cainj.org for details & to register!

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COMPLIANCE... from page 14.

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loan agreement, there are a variety of loan covenants that the association must adhere to. It is important that the board consults with their accountant and attor- ney to review these loan documents and obtain an understanding of the loan covenants. As with the association’s governing documents, it is the board’s fiducia- ry responsibility to remain compliant with the loan covenants set forth in the loan agreement. These cove- nants can relate to several different areas and aspects of the association. Some of the common loan covenants for an association are auditing time- lines, cash balances, and outstanding receivables. As a financial institution, the bank may require the association to provide an annual audit to the bank within a certain number of days or months after year end. The bank may also require the association open a new account with the bank and main- tain an average cash balance for the term of the loan. Having large outstanding receiv- able balances may present an issue in obtaining a loan as this can be a troubling sign for cash flow. To coun- teract this, the bank may request that the association provide a ratio of out- standing assessments to the budgeted assessments on a periodic basis. These are just three examples of com- mon loan covenants for an association but depending on the loan agree- ment these can vary. It is essential that the board reviews a loan agreement and understands these requirements in order to ensure they remain compliant throughout the term of the loan. If the

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“...there can be an overwhelming number of rules and regulations the board needs to adhere to...”

association is not compliant with any terms contained in the loan agreement, the association may be considered in default or incur a penalty. Another important aspect that boards should remain aware of is the financial impact that all of these different reg- ulations may carry. For example, as discussed above, most associations are required to conduct a financial audit of their records on an annual basis. This audit is typically performed by an inde- pendent accountant and consists of an annual fee for the service. Other systems of the site, such as the fire suppression system, may require frequent mainte- nance or inspections in order to remain in compliance with the regulations of the municipality. As with the annual audit, these inspections come at a cost. Housing inspections by the Department

of Consumer Affairs is another category of regulations to which the board must comply. All of these external regulations have one thing in common, they will result in an expense to the association. These items can often be difficult to budget for as they do not all occur on an annual basis. As such, it is import- ant for boards to track these required inspections and ensure that sufficient funds are being put away annually. For example, if a $3,000 inspection of the fire suppression system is required every three years, the board could spread out the cost of the project by budget- ing $1,000 per year. This will help to ensure that the association has sufficient funds available to remain in compliance with the regulations. As you can see, there can be an overwhelming number of rules and

regulations the board needs to adhere to whether these come from the internal governing documents of the association, or an external regulatory authority. In this article we have touched on the primary areas of operating an association that require compliance, but each and every association has its own unique set of circumstances that demand the board’s attention. Fortunately for boards, there are countless resources and profession- als available to help them navigate these rules and regulations and ensure they remain compliant in all areas. n

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HOUSING INSPECTION EXEMPTIONS By Steven Morris, P.E., RS Morris Engineering

ThitareeSarmkasat/ iStock / Getty Images Plus

I f you have managed or lived in a community association long enough, you have probably heard about the dread- ed, “5 Year Housing Inspection” (cue dastardly music). This article will help explain what that is and how you may be able to get an exemption from it (cue happy music). New Jersey’s Hotel and Multiple Dwelling Law (N.J. Stat. § 55:13A-1) is intended to protect the health and welfare of residents, particularly tenants, of multi-family housing in the state, by helping to ensure that their residences are maintained in safe and healthy conditions, by the building owner. This law applies to not just hotels and apartment buildings, but also to condominiums, and may apply to individual units in Homeowner’s Associations (HOA). The regulations consider, a condominium association or cooperative, for the most part, to have the responsibilities of the “owner” as described in the law, and is therefore responsible for compliance with the regulations, and for the correction of all cited violations.

The Department of Community Affairs’ (DCA) Bureau of Housing Inspections is responsible for performing inspec- tions of multiple dwellings for compliance with the Hotel and Multiple Dwelling Law. In the past these were known as “DCA Five Year Inspections” and should have taken place at five-year intervals. Recent changes to the law have revised the frequency of these inspections, which now can vary from every two years, to every seven years (The determination of the frequency of inspection could be the subject of an entire article of its own, so we won’t go down that road at this time). Regardless of the frequency, these inspections incur significant costs, and require a large time and resource commitment on the part of the property owner (condominium association, cooperative or HOA). The policy of the Bureau of Housing Inspections, as it applies to HOAs, is that homes in fee simple ownership are not subject to the Hotel and Multiple Dwelling Law, as long as the association has no maintenance responsibility for any por- CONT I NU E S ON PAGE 20

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INSPECTION EXEMPTIONS... from page 18.

tion of the residential buildings on the site. For example, if the association is responsible for maintenance of the roofs on the homes, these regulations may apply. Consult with your association’s attorney for clarification on this matter. In recognition of the fact that most condominium or coop units are occu- pied by the unit owner, as opposed to a tenant, the law provides for an exemp- tion from the inspection requirement for owner-occupied units in condominium or cooperative buildings, if the units meet certain standards. An application for this exemption must be filed with the Bureau of Housing Inspection. This arti- cle will focus on the standards required

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INSPECTION EXEMPTIONS... from page 20.

to qualify for an exemption from the Bureau’s inspec- tions and how to apply for that exemption. The following is required to qualify for an exemp- tion from Bureau of Housing Inspections: See Figure-1 sketch provided by the DCA, that shows graphic examples of building layouts that could qualify for exemption. • The association must have a current valid cer- tificate of registration with the DCA. If your association is not registered, the application for exemption will be denied. • Buildings are considered in “Sections” consisting of no more than four (4) individual dwelling units. • All dwelling units in each Section must be owner occupied. However, if the Section includes a combination of owner-occupied and non-own- er-occupied units, only the owner-occupied units can be exempted.

Excerpt from State of New Jersey Departmet of Community Affairs document “Bureau of Housing Inspection Memorandum,” page 2.

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• Each Section must have at least two (2) exterior walls which are not attached to any adjoining Sections. • Where two Sections join, the wall separating the two adjacent Sections must be fire-resistant rated. - For buildings built before January 1, 1977, the walls separating Sections must provide a fire resistance rat- ing of 1½ hours and must extend from the foundation to the roof sheathing, and to the inside of the exterior wall sheathing. - For buildings built after January 1, 1977, the walls sep- arating Sections must provide a fire resistance rating in accordance with the New Jersey Uniform Construction Code at the time that the building was built. - For more on firewalls, please refer to Robert Roop’s article ‘X-Rated’ on page 36. To receive an exemption the association must submit an application to the DCA, which includes: • A certified list identifying all owner-occupied units, along with a map graphically identifying all non-owner-occu- pied units. This list is typically prepared by the property

manager. The map can be prepared by the manager or the Association’s Engineer/Architect. - A Certificate In Lieu of an Affidavit form is available through the DCA website https://www.nj.gov/dca/ divisions/codes/offices/housinginspection.html#6 , certifying the list of owner-occupied units. - It should be noted that the DCA requires notification of changes to the list of owner-occupied units. • A report prepared by a New Jersey Professional Engineer or Registered Architect confirming: - That each building Section contains no more than four dwelling units, and that each Section includes at least two exterior walls unattached to any other building Section. The DCA requires a drawing showing the typ- ical layout of the subject building Sections. If there are multiple layouts, multiple drawings should be provided - That each building Section is attached to adjoining build- ing Sections exclusively by fire-rated walls, either having 1½ hour rating (buildings built before 1977) or the code required rating at the time of original construction.

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INSPECTION EXEMPTIONS... from page 23.

For an engineer/architect to prepare the above information, it will be neces- sary to investigate the buildings in the community. This investigation starts with determining the year that the buildings were built and applicable code require- ments at that time. It is extremely helpful to the engineer/architect to have the original plans for the buildings. These plans should identify the intended loca- tions of fire-rated walls. Whether or not building plans are available, inspections of the buildings should be performed to confirm the existing condition of walls separating building Sections. However, if an engi- neer/architect is already familiar with CONT I NU E S ON PAGE 26

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Name:___________________________________________________Organization: ______________________________________________________ Phone: ____________________________Fax: __________________________Email: ____________________________________________________ _ Please provide a brief description of the photograph: ________________________________________________________________________________ _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________

CAI-NJ proudly presents the 2020 Community Trends® “Shoot the Cover” photo contest. We are looking for pictures of the state’s popular destinations, historical landmarks and scenic locales, preferably images in your very own community association, to grace the cover of the December 2020 issue of Community Trends®. Entries must be received by the chapter office with this entry form no later than 5:00 P.M. On Friday, November 4, 2020.

The winner will be selected by the CAI-NJ editorial committee and the photo will be featured on the cover of the December 2020 issue of Community Trends®. Second and third-place photos will receive special recognition inside the December 2020 issue of Community Trends®. Photo entries should be submitted as digital files via email along with the entry form to brooke@cainj.org.

CAI-NJ Board Members, Staff and members of the Editorial Committee are not eligible to enter, but all other CAI-NJ members are welcome to submit photo(s) for consideration. Digital photo files must meet the following specifications: • Color (rgb) • File size of less than 3 mb in order to submit via email • A minimum of 8 megapixels • 300 Dpi (dots per inch) at 8.5” Wide by 11” high (or as close as possible) • An original work by the photographer • Must be a vertical (portrait) direction shot (to fit our cover) • Limited to 3 photo entries per person

By submission of this entry form and your photographs, you are authorizing CAI-NJ to use, reproduce and publish the photographs in print and/or electronically without compensation, and you agree that CAI-NJ may use such photographs for any lawful purpose, including for example such purposes as publicity, illustration, advertising and web content. Also, any photos of minors under 18 years of age must be accompanied by a separate release form available for download in the Community Trends® section of the CAI-NJ web site: www.cainj.org.

INSPECTION EXEMPTIONS... from page 24.

the site, further inspections may not be necessary. An engineer/architect will typically want to inspect a representa- tive sample of each type of building. If the site was built in phases, buildings from each phase should be inspected. An engineer/architect will deter- mine the appropriate inspection requirements, but typically inspections would include interior observation of units abutting a wall separating building Sections (separation wall). If attics are accessible, they will be inspected to see if the separation “...it is necessary to perform an adequate investigation to provide such a certification.” walls extend to, and may include, the roof sheathing. At interiors of units, it may be necessary to inspect the separation walls. This may include just visual inspections, or minimally invasive inspections (removal of elec- tric outlet covers) could be required. In the worst case, it may be necessary to open walls to inspect the as-built construction of the separation walls. In the end, an engineer/architect has a significant responsibility and takes on liability in providing a certifi- cation regarding fire-rating of separa- tion walls, as these walls are critical to the life-safety of residents of the buildings. Therefore, it is necessary to

ThitareeSarmkasat/ iStock / Getty Images Plus

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