CAI-NJ Feb. 2019

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Community Trends ® February 2019

SMART MONEY

In This Issue

• The Role of a Rent Receiver • Energy Procurement: What You Don’t KnowCan Cost You • Top 10 Reasons Communities Face Financial Hardship • Why Hire a Professional? ....and more

2018 ULTIMATE PARTNERS NJ Chapter Communi t y Associat ions Inst i tute The Community Associations Institute New Jersey Chapter would like to thank its partners below. For more information on our sponorships, please contact Laura O’Connor at 609-588-0030 or laura@cainj.org.

CAI-NJ STAFF

LARRY P. THOMAS, PCAM CHAPTER EXECUTIVE DIRECTOR LARRY@CAINJ.ORG ANGELA KAVANAUGH DIRECTOR, CONFERENCE & PROGRAMS ANGELA@CAINJ.ORG LAURA O’CONNOR DIRECTOR, MEMBERSHIP & MARKETING LAURA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, EVENTS & EDITORIAL JACLYN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS OFFICE ADMINISTRATOR & GRAPHIC DESIGNER BROOKE@CAINJ.ORG JENNIFER FARRELL COORDINATOR, EVENTS & EDITORIAL JENNIFER@CAINJ.ORG

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

@CAINJCHAPTER

Community Associations Institute - New Jersey Chapter

T hank You Fo r You r Suppo r t !

@cainewjersey

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

The Role of a Rent Receiver By Esmeralda Lopez Rent Receiver

Energy Procurement: What You Don’t Know Can Cost You By Stacia M. Scaduto, LEED, GA Commercial Utility Consultants, Inc. (CUC)

Top 10 Reasons Communities Face Financial Hardship By Matt Driscoll Mutual of Omaha Bank Do One Thing Better: Why Hire a Professional? By Steven J. Morris, P.E., R.S., NAFE Morris Engineering, LLC/ME Architecture, LLC and Damon M. Kress, Esq. McGovern Legal Services, LLC

Management Trends: Money Matters... Assessments, Snow and Community Info

By Elaine Warga-Murray, CMCA, AMS, PCAM RMG Regency Management Group, Inc., AAMC

EXTRAS President's Corner

5 6 7

Looking Ahead

CAI-NJ Upcoming Events Why Hire a Professional? The Benefits of Hiring Professionals to Guide 2019 Jules C. Frankel Manager Education Assistance Program the BoardWhen Conducting the Association’s Business By: Steven J. Morris, P.E., R.S., NAFE, Morris Engineering, LLC/ME Architecture, LLC & Damon M. Kress, Esq., Shareholder, McGovern Legal Services, LLC As the old saying goes, “A man who represents Himself has a fool for a client.” Legislative Update CA-PAC “Dollar a Door” Campaign Chapter Retreat Wrap-up & Photos For community associations, deciding against hiring a professional, whether it be an attorney, accountant, engineer or other contractor who is particularly familiar with the issues the association is addressing, could undermine one of the primary protections afforded to corporate board members, the “business judgment rule.” The “business judg- ment rule” prohibits courts from “second-guessing” decisions by a corporation’s board unless the decision is unau- thorized by the controlling documents, or is the product of fraud, self-dealing, or unconscionable conduct. Papalex- iou v. Tower West Condominium, 167 N.J. Super. 516, 527 (Ch. Div. 1979). In Seidman v. Clifton Sav. Bank, S.L.A., 205 N.J. 150 (2011) the New Jersey Supreme Court explained that corporate board members who rely upon the guidance of experts and other professionals, when making decisions for the corporation, enjoy the benefits and protection of the “business judgment rule” if shareholders subsequently challenge the propriety of the decision. The Supreme Court has since held that decisions by board members for community associations are similarly protected by the “business judgment rule.” Committee for a Better Twin Rivers v. Twin Rivers Homeowners’ Ass’n, 192 N.J. 344 (2007). LAC Update Registration 2019 CAI-NJ Annual Awards Dinner Registration & Sponsor Information Coffee & Cram CMCA Exam Study Group Chapter Trends

O N E DO THING BETTER

10 12 15 26 28 34 43 47 50 54 55 60

New Members A Guide Needs to Know the Terrain Even if the board feels they have people with expertise on the board or serving on a committee, community associations are unique terrain in which to operate. An engineer on the board that spent her career designing bridges, may not appreciate, or know how to deal with preparing to execute a siding replacement project that will dis - place people’s cars from their driveways. It may sound like a trivial issue, but if not properly addressed, logistical issues like parking can doom a project. Conflicts of interest Anyone giving professional advice to a board must represent the best interest of the association as a whole. If a member of the asso - ciation is giving advice that could affect their property or cost them money personally, there would automatically be the opportunity for a perception of, if not an actual, conflict of interest. Staying up to date Professionals who regularly practice in the community association field are required to participate in continuing professional education

Love Thy Neighbor • Sometimes a board has to express dissatisfaction with, fire, or in worst cases sue a person that provided professional services to the community. This can be very difficult to do if the person who provid - ed those services is a friend and/or neighbor. • It’s easier to hold a paid professional to timelines and due dates than it is a neighbor. • If bad news needs to be delivered at an open meeting, the pro - fessional can present the news and then go home at the end of the meeting; board members and volunteers have to live with neighbors that may be upset by the news and may blame the “messenger”. Protect the association & yourself • Professionals typically carry Professional Liability Insurance that can help protect themselves and their clients in the event the profes - sional makes an error that results in damages to the association. • The Association’s Directors and Officers Insurance (D&O Coverage) is there to protect the board members. As explained above, reliance upon the guidance of expert advice helps protect the board and the association if litigation arises over the association’s decisions.

Lecture Series Registration

CA-PAC Top Golf Fundraiser Registration

CAI Membership Application 2018 Ultimate Partner Listings

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CAI-NJ LEADERSHIP BOARD OFFICERS

BOARD OF DIRECTORS Benjamin Basch American Pool Enterprises Business Partner

Donna Belkot Taylor Management Company, AAMC, AMO Community Association Manager Jean Bestafka Renaissance Homeowners Association Homeowner Leader

PRESIDENT MOHAMMED SALYANI, CPA WILKIN & GUTTENPLAN, P.C.

Bruce Kunz, CMCA Windmill Club Association Homeowner Leader

Deana Luchs Canal Walk Homeowners Association Homeowner Leader Tony Nardone, CMCA, AMS, PCAM Corner Property Management Community Association Manager Christopher Nicosia, CMCA, AMS, PCAM Prime Management, Inc., AAMC Community Association Manager

VICE PRESIDENT LOREN LIGHTMAN, ESQ. HILL WALLACK, LLP

PRESIDENT ELECT JENNIFER NEVINS DW SMITH ASSOCIATES, LLC

Lisa Vitiello, CPA Towne & Country Management, Inc. Community Association Manager

TREASURER JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

SECRETARY MARK WETTER, ESQ. RADOM & WETTER

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Lisa Vitiello, CPA Towne & Country Management, Inc.

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PRESIDENT’S CORNER Mohammed Salyani, CPA CAI-NJ 2019 PRESIDENT | WILKIN & GUTTENPLAN, P.C.

The Joys of Winter

A s of February 1st, we had 58 days of winter remaining. As a person born and raised in a trop- ical country, honestly, I just grit my teeth and bear it. I know there are people who love winter but be truthful, how enjoyable is it when you get a snow storm during the week and you have to shovel your way out to get to work the next day. That said, I will tell you that a few years ago when we got very little snow (remember that), I did miss it. There is very little in terms of natural beauty that can beat a blanket of pristine white snow. The perfect snow fall would be one that fell over the weekend and was all cleared by Monday morning. Either that or you live in an Association where the snow removal company shovels you out. That’s a smart decision. Talking about smart decisions, this month’s theme is Smart Money. There are some very interesting articles on making decisions with respect to associations’ finances. I found Steve Morris and Damon Kress’ article on “Why hire a professional?” on page 38 to be excellent. As an accountant working in this industry for eighteen years, I have come across many board members who are CPA’s but do not understand fund accounting, that is used by most associations. As the article states, it is so important to hire

a professional who has experience in the industry. That is where the CAI Directory comes into play. Then there is the article about Energy Procurement by Stacey Scaduto on page 20. What an interesting read! I had no idea about the intricacies regarding the cost of energy procurement. For example, who knew that you should get quotes on the same day because rates change

“The perfect snow fall would be one that fell over the weekend and was all cleared by Monday morning.”

every day. Talk about hiring the right professional for the best interest of the association. Then of course there is the article on Money Matters by Elaine Warga-Murray on page 42. It is always smart to be proactive and deal with financial issues as they arise rather then waiting for the issue to snow ball. See how I brought this round full circle! Stay warm and happy reading. n

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LOOKING AHEAD LARRY THOMAS, PCAM | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

S mart Money — Is there any other kind? We are living in an age of financial uncertainty. Just look at the stock market over the last two years. Drastic changes are never a shock anymore and as a result, we all must be more attentive and conscious about our financial decisions. It’s a great time to review all our community’s contracts as well as our ongoing service agreements. Are we paying for phone lines that we don’t need or don’t even exist any longer? Does it make sense to get a new copier since the lease recently ran out or is it a better idea to take the “buyout” and get a maintenance agreement? Also, considering the maintenance agreement, is it better to do a time and material or enter into a service agreement? These are all matters that boards and management need to look at least on an annual basis. This all comes under the heading of “Smart Money”. Maybe a starting point would be to review all recurring monthly expenses, examine the applicable contract and see where the monthly payment comes from. I am sure if you look around, you will realize some savings and provide an expected service to your community. There are several companies that will do an energy audit for your community and do a cost analysis as well. I’m

sure you are aware that the LED lighting has completely changed the lighting industry. Does it make sense to pull out those old mercury vapor lights and replace them with modern LED fixtures? The older the community, the more opportunities there are to take advantage of new tech- nology. Replacing the thermostats and installing motion detectors is a great way to start. These are easy and

“The older the community, the more opportunities there are to take advantage of new technology.”

inexpensive tasks that can result in hundreds of dollars in savings for your community. In closing, The Awards Dinner Committee has met several times and I can assure you that you will not be disappoint- ed at this year’s event. Havana Nights is the theme. So, get ready to enjoy some festive music and hand rolled cigars. Information and registration form can be found on page 34. n

Annual Awards Dinner — February 28, 2019! Sponsorships are still available. See pages 34-37 for registration and sponsorship information!

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EVENTS & EDUCATION CALENDAR 2019

FEBRUARY

28 26 12

Lecture Series CAI-NJ, Freehold Coffee & Cram CAI-NJ, Freehold

Annual Awards Dinner The Imperia, Somerset

July

March

17 August

Senior Summit Renaissance at Manchester, Manchester

Lecture Series CAI-NJ, Freehold

APril

6-7

12 25 Spring Break Party 23 Legislative Update 16 Legislative Update 9 Legislative Update 8 Lecture Series CAI-NJ, Freehold 2

Board Leadership Development Workshop CAI-NJ, Freehold

Legislative Update South Jersey - Mays Landing

Annual Beach Party Martell’s Tiki Bar, Point Pleasant

Lecture Series CAI-NJ, Freehold

South/Central Jersey - Whiting

M-202: Association Communications Mercer County Community College, West Windsor

September

Homeowner Leader Roundtable TBD

Central Jersey - Monroe Twp.

5-6

PCAM Case Study Cranbury

North/Central Jersey - Somerset

11 17

Managers Leadership Workshop TBD

The Grand Marquis, Old Bridge

Legal Forum Stonebridge Community Association, Monroe Twp.

May

24 25

Lecture Series CAI-NJ, Freehold

Joint Manager &Business Partner Roundtable TBD

October

25 June 5-6

17 16

Pre-Conference Networking Reception THE EVENT CENTER @iPA, Freehold, NJ 2019 CAI-NJ Annual Conference & Expo THE EVENT CENTER @iPA, Freehold, NJ M-310: Management Company Administration Freehold, NJ

Joint Manager &Business Partner Roundtable TBD Joint Manager &Business Partner Roundtable TBD Board Le dership Development Workshop CAI-NJ, Freehold Dennis R. Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp. M-100: The Essentials of Community Association Management Mercer County Community College, West Windsor Joint CAI-NJ &PennDelVal Networking Event TBD

17- 18

Events are subject to change

27- 29

Jules C. Frankel Manager Education Assistance Program Community Associations Institute NJ Chapter

2019 PROGRAM Jules C. Frankel was a long time member of CAI and was a key figure in the success and growth of our chapter. Jules was President of our chapter in 2000. Jules also received the followings awards from CAI-NJ: Speaker of the Year in 2003 and Author of the Year in 2004. Jules was inducted in the CAI-NJ Hall of Fame in 2003. Jules was a staunch advocate for manager education and training and was always willing to help with seminars and industry educational programs. The Jules C. Frankel Manager Education Assistance Program (MAP) was developed to assist New Jersey managers in the common interest community industry in furthering their educational and professional development goals. The MAP provides the opportunity to any CAI-NJ manager member in good standing to apply for a scholarship. CAI-NJ will provide a fifty percent (50%) reimbursement per course to selected managers for any of the 100, 200, or 300 courses offered by CAI. More than one award may be given per applicant. CAI-NJ will be hosting the following courses in 2019:

o o o

M-202 M-100 M-310

April 12

Mercer Community College, West Windsor Mercer Community College, West Windsor

June 27 to June 29 Sept 5 to Sept 6

Cranbury

All awards must be approved by the CAI-NJ Board of Directors. Accordingly, a submission does not guarantee any applicant assistance. Awards are at the sole discretion of the CAI-NJ Board of Directors.

Please review the attached guidelines and application. If you have any questions, please contact the CAI-NJ office at 609-588-0030 or info@cainj.org

Jules C. Frankel Manager Education Assistance Program Community Associations Institute NJ Chapter

GUIDELINES AND APPLICATION PROCESS

AWARD: • The MAP awards a deserving candidate $250 per course ( 100, 200 and 300 level courses) towards the PMDP course of his/her choice. More than one award may be given during a calendar year. • The Scholarship Review Group will award scholarships once per year no later than April 1 st , 2019. • Scholarships must be used for PMDP courses offered by any CAI Chapter or CAI National. The M-100 course must be in person. All other courses may be in person or online. ELIGIBILITY : • At the time of the application and the reimbursement, you must be a member in good standing with • You may be asked to provide a follow up piece that will be printed in the Community Trends ® magazine that summarizes your experience with the MAP and the ways that it has allowed you to advance your professional goals. CAI-NJ reserves the right to modify any content prior to print. DEADLINES: • All applicants must submit entry no later than March 25 th , 2019 in order to be considered for a scholar- ship award. Selections will be made no later than April 1 st , 2019. PROCESS: • Interested candidates must fill out the attached application and answer the questions for review prior to dates. All entries must be typed and complete to avoid disqualification. Entries must be mailed to the chapter office or printed to PDF and emailed to larry@cainj.org. • Anonymous essays are evaluated and award recipients will be selected by the Scholarship Review Group. Should there be a conflict on the committee (meaning that a company representative is evaluating an entry for the same company), that committee member will remove themselves from the process and not participate in the review/selection of the candidates. Since this is an anonymous process, the Chapter Executive Director will inform the Scholarship Review Group members of the conflict. • Selected managers must submit verification of course completion to the CAI-NJ office within 30 days of conclusion of the course to receive the scholarship reimbursement. • All classes must be completed by December 31 st , 2019. To apply, visit www.cainj.org/map Chapter Contact Information Larry Thomas, PCAM ~ Chapter Executive Director the Community Associations Institute and the New Jersey chapter of CAI. • You must have attended at least 2 CAI-NJ events during the last 12 months.

500 Harding Road, Freehold, NJ 07728 Tel: 609-588-0030 | Fax: 609-588-0040 Email: larry@cainj.org

LEGISLATIVE UPDATE

GEORGE GREATREX, ESQ. PARTNER, SHIVERS, GOSNAY & GREATREX, LLC LEGISLATIVE ACTION COMMITTEE CHAIR

W e are now in the second year of the 2018- 2019 Legislative Session in Trenton, and our list of legislative initiatives seems to grow each day. During the first year of this session we on the Legislative Action Committee (LAC) worked hard to oppose those bills we believed would be harmful to those who live and work in New Jersey’s 6,800 common interest communities, and to initiate and support those bills which would improve the lives of the 1.35 million people who live in those communities. Past experience has shown that legislative activity steadily increases as the second half of a legislative session wanes, so we are expecting increased activity, and hopefully successes, in the coming months. Stay tuned! Early last year I reported on the LAC’s priority list of issues on which we would be focusing our efforts during this leg- islative session (January 2018 to January 2020). Those issues remain substantially the same for the remainder of the session, with a few having recently come into greater focus and clarity. They include: • Mortgage foreclosure reform (to address the plague of vacant and abandoned homes in foreclosure — known as “zombie” foreclosures). We have been invited by the legislative leadership to participate in the crafting of a series of new bills to reform the mortgage foreclosure process in New Jersey, including two bills which directly address the zombie foreclosure problem, and the ability of CICs to recover past due assessments from properties in foreclosure. We are told that these bills, once introduced, are likely to be “fast-tracked” by the legislative leadership. • DCA adoption of revised language further defining “adequate reserves” and “ben- efits derived” (as contained in PREDFDA and the Condominium Act and their administrative regulations which primarily apply to new developments still under developer control). We have worked collaboratively

“...the Legislative Action Committee (LAC) worked hard to oppose those bills we believed would be harmful to those who live and work in New Jersey’s 6,800 common interest communities...” • Statute of Limitations for claims against devel- opers: A New Jersey Supreme Court opinion in the case of The Palisades at Fort Lee Condo. Assn. Inc. v. 100 Old Palisade, LLC, 230 N.J. 427 (2017) signifi- cantly shortened the period of time within which a new homeowner association could seek judicial redress from its developer for design and construction defects. We are seeking to initiate legislation that would reverse the unfairness to all common interest communities resulting from this court opinion. • Adoption of uniform common ownership interest legislation (the revival of UCIOA by the NJ Law Review Commission – A3851/S2425). This bill was introduced last year by motivated sponsors who are seeking to begin the process of consolidating into one statute the many statutory and regulatory provisions that apply to the various forms of common interest communi- ties in our State. • Community Association Manager Licensing: Late last year we studied and debated at length our with the NJ Builders Association to draft proposed revi- sions to the DCA regulations that address these import- ant regulations, and are actively communicating with the DCA to review and finalize those proposals.

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2019 CAI-NJ COMMITTEES

long-standing legislative priority of pursuing mandatory licensing for community association managers here in New Jersey, and decided to continue to pursue this legislative initiative. Drafted properly, such a law will ensure that CIC boards and the members they serve will be assisted by community associa- tion managers who have undergone appropriate education, training and testing in this field, and will provide proper safeguards and remedies to those associations who are ill-served by those managers who do not meet those standards. At the same time, if properly drafted, such a law will not be overly burdensome to the many people who endeavor to join the community association management industry in our state, and who strive to provide high quality service to their CIC clients. Other issues arose last year that merit our attention, and we will focus on ensuring the legislation aimed at addressing these issues will benefit common interest communities in New Jersey, or at the very least do no harm to them. They include: • Board member training: An effort is underway to introduce legis- lation that will mandate board mem- ber training for New Jersey’s CICs. The LAC is currently discussing the pros and cons of such legislation, and working with the sponsor to draft a bill that will benefit but not overly burden our homeowner leaders. • Electric Vehicle Charging Stations: (A1030/S2421) Advancing energy technology brings with it both benefits and

AWARDS COMMITTEE Gabby Grimes — Chair Eileen Szelewicki, CMCA — Vice Chair Neil Betoff

EDITORIAL COMMITTEE Mary Barrett, Esq. — Chair Robert Arnone, CMCA, AMS — Vice Chair Daniella Chaviano Hilary Harding Jonathan Katz, Esq. Richard Linderman, Esq. Michael Mezzo, CPA, MBA Steven Morris, RS

LEGISLATIVE ACTION COMMITTEE (LAC) George Greatrex, Esq. — Chair A. Christopher Florio, Esq. — Vice Chair

Joseph Chorba, CPA — Treasurer Michael Pesce, PCAM — Secretary Lisa Rayca, CMCA, AMS — CAI-PADELVAL, So. Jersey Liaison Elizabeth Comando, CMCA, PCAM Barbara Drummond, CMCA, PCAM

Jennifer Carr Rich Cassilli Drew Cowley Michelle Gadaleta Lila Khiry Steve Lang Christine Maldonado Danny Mann, Esq. Vanessa Nixon, Esq. Drew Podolski, Esq. Kari Prout Mary Visco Sandi Wiktor

Kelly Peters Robert Roop Kari Valentine, CMCA, AMS Ray Venturino Board Liaisons: Deana Luchs Lisa Vitiello, CPA Staff Liaison: Jaclyn Oskierko F.A.S.T. COMMITTEE Gabe Vitale — Chair Ashley Gray, CMCA — Vice Chair Matthew Antico

Matthew Earle, Esq. Vincent Hager, CIRMS Sue Howe, AMS, PCAM Steve Kroll Christine Li, Esq., CCAL James Magid, CMCA, PCAM, LSM Thomas Martin, Esq. Glen Masullo, CMCA, PCAM

Jack McGrath Paul Raetsch

Board Liaisons: Jennifer Nevins Lisa Vitiello, CPA Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE Amy Shorter — Chair Jessica Vail — Vice Chair Theresa Beckett John Buglione Mary Caporaso, CMCA, PCAM Robert Flanagan, Esq. Ryan Fleming Frank Gencarelli

J. David Ramsey, Esq., CCAL Caroline Record, Esq., CCAL Board Liaisons: Jean Bestafka Loren Lightman, Esq. Staff Liaisons: Larry Thomas, PCAM Laura O’Connor MANAGER COMMITTEE Erin O’Reilly, CMCA, AMS, PCAM — Chair Kristina Munson, CMCA, AMS, PCAM — Vice Chair Denise Becker, CMCA, AMS, PCAM

Jessica Baker Angela Celeste Jamie Cullen, CMCA Eric Eggert

Shelby Evans Maggie Faselt Brian Griffin

Jessica Hatton Shaun Hynes Vincent Kazmierski Lila Khiry Steven Kuhnert Jessica Long

Saher Gouda David Kalen Dawn Kearney

Jeff Cirkus, CMCA, AMS, PCAM Chuck Graziano, PCAM, CPM Dawn Mackanic, CMCA Kerri Stimpson, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA, AMS Board Liaisons: Tony Nardone, CMCA, AMS, PCAM Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Angela Kavanaugh MEMBERSHIP COMMITTEE Nikolaos Haralambopoulos, CPA — Chair Briana Walsh — Vice Chair Michael Barch Lysa Bergenfeld, Esq. Michael Gersh Nichole Gist Jennifer Lynch, CIC Tara Melick, CPA Steven Mlenak, Esq.

Joseph Kreps Toni Licciardi Michael Luzzi Kim Manicone Gregory Vinogradsky, Esq. Lisa Wagner Board Liaisons: Jeffrey Logan

Kristin Marzarella Tara Melick, CPA Nicole Miller, Esq. Rachel Richardson, CMCA Lauren Vadenais David Vargas

Kristy Winchock Board Liaisons: Benjamin Basch

Jennifer Nevins Staff Liaison: Angela Kavanaugh CONFERENCE & EXPO COMMITTEE Jay Burak — Chair Jessica Kizmann, CPA — Vice Chair Kristie Bendick, CMCA

Jeffrey Logan Staff Liaison: Jaclyn Oskierko GOLF OUTING COMMITTEE Paul Migliore — Chair Eric Eggert — Vice Chair Chris Belkot Scott Brandle Martin Cabalar, Esq. Patti Clemente Marty Ehrlich Keith Giliberti, PE, RS Fred Hodge, Jr. Hank Johns Lisa Komitor Georgette Kyriacou Cathy Mango Mike Polulak, Esq. Ross Rutman David Shahrabani Lenny Stern Christopher Tensen, CMCA, AMS Ryan Weiner

Joe Bonafede Stacey Cadoff Jeanine Clark Ellen Comiski Jeffrey Cuevas

Kathleen Radler Steve Roderick Larry Sauer, CMCA, PCAM Ken Shah

John Echelmeier Tanya Jimenez Terry Kessler, Esq. Konrad Kurach Valerie Luckenbach Denise Mack

Peter Throndson Board Liaisons: Loren Lightman, Esq. Mark Wetter, Esq.

Jessica Marvel Karl Meth, Esq. Kevin Oliver Cheryl Rhine, CIC, CIRMS Gabe Vitale, Jr. Board Liaisons: Donna Belkot Mohammed Salyani, CPA Staff Liaison: Angela Kavanaugh Harriet Schwarzber, CMCA, AMS Jackie Thermidor, CMCA, AMS

Staff Liaisons: Laura O’Connor Brooke Stoppiello-Nevins NETWORKING EVENTS COMMITTEE Pam Illiano — Chair Gary Gleitman — Vice Chair

Tom Witkowski Board Liaisons: Chris Nicosia, CMCA, AMS, PCAM Mark Wetter, Esq. Staff Liaison: Jaclyn Oskierko HOMEOWNER LEADER COMMITTEE Cheryl Palent — Chair Roslyn Brodsky — Vice Chair Lois Gerber

Dean Catanzarite Diane Cody, PCAM Rhett Cowley Jose Elvir Seth Frumkin Freedom Hildreth Carol Nickerson, CMCA Julie Nole Debbie Pasquariello, CIC, CIRMS

Daniel Reilly Chris Rosati Kristine Schmocker Dan Turi Melissa Volet, Esq. Board Liaisons: Benjamin Basch Donna Belkot Staff Liaison: Jaclyn Oskierko

Gabriel Lavigne Charles Lavine Anthony Manino Ralph Owen Richard Pucciarelli Board Liaisons: Jean Bestafka Bruce Kunz, CMCA Deana Luchs Staff Liaison: Angela Kavanaugh

CONT I NU E S ON PAGE 59

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CA-PAC WORKS HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

SUPPORT CA-PAC “A Dollar a Door”! The Community Association – Political Action Committee (CA-PAC) is a volunteer committee consisting of homeowners, professionals and managers who serve New Jersey’s community associations. CA-PAC was created to give our members a stronger voice in Trenton by supporting candidates who support key issues important to CAI-NJ members. Please do your part and support our 2018 “Dollar a Door” campaign. Donate $1 per door or at least $250.00 per year for com- munities and $25.00 for individuals. 2018 A Dollar a Door Community Associations • Cedar Village at East Brunswick • Manors at Lawrenceville • The Plaza Grande at Old Bridge • The Ponds • Union Gap Village Association • Wildflower Village COA

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

YES, I’D LIKE TO SUPPORT CA-PAC WITH A PLEDGE!

COMMUNITY ASSOCIATION DOLLAR PER DOOR __________________ X ____________________ $_________ Number of Doors A Dollar or More Total Pledge PROFESSIONAL PLEDGE __________________ X ____________________ $_________ Number of Doors A Dollar or More Total Pledge FLAT RATE PLEDGES Business Partner ............................................... $250-$500 $_________ Management Company ..............................................$500 $_________ Other ....................................................................................... $_________

Community/Company: ________________________________________________________________________________________________

Individual Name:_____________________________________________________________________________________________________

MailingAddress:______________________________________________________________________________________________________

City, State, ZIP:______________________________________________________________________________________________________

Phone:_________________________________________________________Fax: ________________________________________________

Email:________________________________ Occupation:______________________ Employer:_____________________________________

Employer Address:___________________________________________________________________________________________________

City, State, ZIP:______________________________________________________________________________________________________

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

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

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.

CA-PAC WORKS HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

Municipal Bonding Requirements – (A1425, S3233) - Last year, the legislature passed a law removing developers’ requirements to post performance and maintenance guarantees on construction not ultimately dedicated to the municipality. While intended only to apply to shopping centers, CA-PAC is concerned that our communities could be swept into the exemptions, and will be working to correct the oversight. Delinquencies and Expedited Foreclosures – (A2085, S1243) – We continue to attempt to work with the banks to maintain vacant units and assume responsibili- ty for maintenance fees while pushing for rent receiverships as an option. Municipal Services / Fire Hydrant Maintenance - (A1745) – CA-PAC is advocating for expansion of the municipal services provided to your community. Our top priority for now is passage of legislation that would ensure that your local municipal utility authority keep your neighborhood safe by properly maintaining fire hydrants, and we hope to make the cost of such maintenance fair by banning the practice of charging our associations more than their host municipalities. Electric Charging Stations - (A1030) - There is National and State legislation concerning the installation of electric charging stations for existing and future common interest communities. CA–PAC will be there to make sure you have say over when, where, and if to include these stations in your communities. DCA Inspections - (S1150) - This bill would reduce inspections from every 5 years to every 2 years. Solar Panel Installations – (A2469) - Recent legislation proposes controls for regulation and installation of solar panels in your community. Insurance Deductibles – (A2439) - Recent legislation proposes to prevent an association’s ability to transfer the responsibility for a damage claim’s deductible to homeowners in condominium associations. Snow Contractor Indemnification – (S665) - This legislation would require snow contractors to be indemnified for any damage or injuries as a result of their snow removal/ice control operations.

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

CAI-NJ 2018 PARTNERS

GAF 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 Belfor Property Restoration Brown & Brown Insurance of Lehigh Valley C & L Sweeping & Pavement Maintenance DW Smith Associates, LLC FWH Associates, P.A. G & C Electronics

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CHAPTER TRENDS

BRAVO! Welcomes Mark Gimbl as Portfolio Manager for Life Sciences Clients BRIDGEWATER, NJ – December 17, 2018 – BRAVO! Group Services, one of the largest, privately-held facility solutions companies in the country, has hired Mark Gimbl as

manufacturing facility. Mark has also dedicated his time since 1991 to serve as a Firefighter/EMT. He actively par- ticipated in the World Trade Center rescue and recovery efforts on 9/11. “It is not often that you find an individual as well-qualified as Mark, who brings to BRAVO! exceptional manage- ment and procedural experience,” commented Frank S. Wardzinski, Chief Operating Officer. “As our business continues to grow and expand nationally, Mark’s profes- sionalism and streamlined approach to optimal operations will make a positive contribution to BRAVO!’s excellence in customer service and leadership position in the industry.” BRAVO! Group Services provides janitorial, mechanical maintenance, electrical contracting, mailroom and con- cierge services, and other employee outsourcing activities. BRAVO! currently serves over 347 facilities with 3,750 employees and operates offices in Bridgewater, NJ (head- quarters); Green Brook, NJ; Clifton, NJ; New Castle, DE; Vienna, VA; Durham, NC; Charlotte, NC; Irmo, SC; Bentonville, AR; and Oklahoma City, OK. n

Mark Gimbl

Portfolio Manager supporting our Life Sciences clients. Mark comes to BRAVO! with over 12 years of experience in various project and facilities management positions. His back- ground includes serving as Facilities Manager & Fire Safety Director at Barclays, where he managed multiple locations consisting of office space and critical data centers. Prior to Barclays, Mark served as Director of Facilities for an IFM company, overseeing a public-school district in Philadelphia and a special needs education center. Preceding this position, he worked as a Facility Manager at Astra Zeneca Pharmaceuticals, where he maintained GMP standards at the North American headquarters and • All submissions must come from and be about: - A member of CAI-NJ (Manager, Management Company, Board Member, Business Partner or Business Partner Employee) in good standing. • Companies/Communities are permitted four (4) announcements per calendar year. • Submissions are limited to 150 words. - Members are responsible to condense the information appropriately, as CAI-NJ will not do so. Any submissions over 150 words will not be published.

Chapter Trends Editorial Guidelines

• Submissions may include (1) image. • Submissions should not be advertorial in nature. Please note, CAI-NJ reserves the right to edit any submissions. The chapter reserves the right to omit information as necessary. CAI-NJ has the exclusive right to refuse to publish any submissions for any reason. For questions regarding the Chapter Trends section of Community Trends ® , please contact jaclyn@cainj.org or 609-588-0030.

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The Role of a RENT RECEIVER By Esmeralda Lopez Rent Receiver

H ave you ever seen a ham- ster in its runner’s wheel? No matter how fast and hard it works towards an exit, the hamster is still

inevitably in the same spot. Unfortunately, with delinquen- cies, a homeowners association (‘HOA’) can find itself in a very similar predicament. The HOA entrusts to its board of directors, the very important task, among other things, to keep the delinquency rate for their association low and manageable. This is where a court appointed rent receiver may become an asset to your community. With the consistent backlog in New Jersey of foreclosure proceedings and the lengthy process it takes to finally exe- cute a sheriff sale, a rent receiver can become a communi- ty’s closest ally. N.J.S.A. 2A:17-66, affords an association the right to have a court appointed rent receiver place a tenant in a vacant delinquent unit. The rent receiver will then collect rents, which can be used to lower the arrears of delinquent unit and/or to keep the association’s monthly fees current. If your board members find themselves wondering, what is the role of this rent receiver? How does our association

g e t one? And, what are they doing with the money? Let’s unpackage these very important questions below: 1. What is the role of this rent receiver? A rent receiver is appointed by the court to act as a land- lord for the unit in question. The rent receiver is responsible to find a tenant, maintain and collect rent for the unit, typi- cally for a definitive period of time or until the unit has com- pleted a sheriff sale. Through the waiting process, a rent receiver should maintain meticulous accounting records of the rents received, repairs made, fees paid to the associa- tion and fees paid to themselves. It is important to note, that in this role, a rent receiver is not a managing agent for the association, but rather a professional third-party, appointed by the court. The rent receiver must answer directly to the courts concerning this unit. That being said, transparency

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F E B R U A R Y , 2 0 1 9

RENT RECEIVER... from page 16.

is key when an HOA finds themselves requiring a rent receiver, therefore; it is important to choose wisely and consult your legal team. 2. How does the association get a rent receiver? To appoint a rent receiver, an HOA will typically seek guidance from their legal counsel. If rent receivership is a viable option for that HOA, legal counsel will file a motion of behalf of the association. The association’s attorney will be required to submit evidence showing the need for a rent receiver and all liens holders for the unit. Lastly, legal counsel will also provide evidence via an affidavit or other material document to show that the rent receiver is qualified to operate in such a role. Over time, many HOAs become concerned with whether they are receiving the money they are entitled. The objective of a rent receivership is not for the association to make income, but to stop further loss by paying the common monthly charges and/or where applicable to allow the association to lower the current outstanding balance. With that said, the rent receiver has a right to collect a fee for its service. The receiver must also keep a portion of the rent as contingency for potential damage/ repairs that may arise, pay the asso- ciation’s common monthly fees and/ 3. What is the rent receiver doing with the money?

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F E B R U A R Y , 2 0 1 9

ENERGY PROCUREMENT: What You Don’t Know Can Cost You By Stacia M. Scaduto, LEED GA, Commercial Utility Consultants, Inc. (CUC)

I n today’s complex utility marketplace, it’s difficult for associ- ations and cooperatives to obtain the lowest energy prices. Most building managers are unprepared to navigate the intricacies of ever-changing rate schedules, electric and natu- ral gas deregulation, and a multitude of billing options. That’s where a professional energy consultant comes in. The right consulting firm will have the experience and knowledge to obtain the best pricing for each utility account — potentially saving the association and residents sizable sums each year. Billing Errors Common One of the first steps in the consultant’s process can be an analysis of the association’s utility bills. This is as important a task as setting your budget or obtaining the electric or

gas contract. Managers and boards often think the utility company wouldn’t make errors, and pay their bills accord- ingly, which is definitely not the case. Tens of thousands of dollars are recovered every year from erroneous billings that even the most experienced bookkeepers or accountant might miss. Understanding the tariffs and rate structures are the most important key to ensuring your bill is correct. Often, these errors stem from buildings’ conversions to con- dominiums. If the rate isn’t corrected at the time of transfer, bill- ing continues at the old rate, month after month. Other errors can occur when an inexperienced customer service agent sets up service without knowing the correct rate to apply. Most organizations also don’t realize that utilities offer many service riders that can help reduce rates during cer- CONT I NU E S ON PAGE 22

F E B R U A R Y , 2 0 1 9

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ENERGY... from page 20.

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tain times. These options aren’t some- thing of which a manager or a board would necessarily be aware of. Deregulation’s Challenges, Opportunities Energy deregulation in certain geo- graphic areas has the potential to reduce billings, but brings with it a new array of utility tariffs, alternative supplier contracts and confusing ter- minology. Using an alternate supplier does not always guarantee savings. In states with electric deregulation, for instance, an energy consultant could

“Managers and boards often think the utility company wouldn’t make errors, and pay their bills accordingly, which is definitely not the case.”

solicit bids from the largest and most reli- able alternative energy suppliers avail- able. This ensures that the association is being charged the lowest possible rate. But it is important that the quotes are collected on the same day and same time. Given that energy is a commodity that is traded, getting rates on different days will not provide the most apples to apples comparison and add further confusion to the process. However, you should note that not all energy rates are created equal.

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ENERGY... from page 22.

For example, variable rate contracts and contracted usage limits could result in higher-than-expected charges. Factors Affecting Rates Many variables determine how util- ity rates are set for one association

or cooperative versus another and no two buildings are alike. First, the base price of electrici- ty in PJM (the regional transmission organization for the Northeast) and most other power pools throughout the country is usually established by the price of natural gas (NG). Even though NG prices are relatively low now, it is the highest-priced fuel used to generate electricity in PJM. Additional factors affect each custom- er’s specific pricing, including capacity, transmission and lines losses. Capacity charges are determined by the five highest hours of usage in PJM from June 1 through Sept. 30. The average demand of an account over these five hours is known as the peak load con- tribution (PLC). Typically, the five PLC hours occur on hot summer afternoons between 3 and 6 p.m. Therefore, it’s important to minimize electric usage during these times if possible. Similarly, transmission obligations are calculated during utility peak hours, but on a cal- endar-year basis. Line losses depend on the service voltage from the local utility on an account. Line losses for primary service (high voltage) customers are about 6 percent less than those for secondary (normal residential voltage) service customers. Credit is another factor. If an asso- ciation has fallen behind on its utility bills, this creates some risk, which suppliers will build into the rate. State taxes or tax credits are also added in, depending on the state and the customer’s business category. Proactive Measures Organizations can use demand response (DR) programs to help lower CONT I NU E S ON PAGE 59

Suppliers offer many different types of rates, and if a manager is not careful, the energy could end up costing sig- nificantly more than was anticipated.

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