CAI-NJ November 2020

Community Trends ® November 2020

MOVING THROUGH TRANSITION AND BEYOND

Bulat Silvia/ Serhii Brovko/ iStock / Getty Images Plus

In This Issue

• The Financial Impacts of Transition • Poison Paperwork • Transition Tune-Up • What You and Your Board Need to Consider Before Hiring a Contractor • ....and more

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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The Financial Impacts of Transition By Michael Mezzo, CPA WilkinGuttenplan Poison Paperwork: Read Your Governing Documents Closely By Randy Sawyer, Esq. Stark & Stark

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Transition Tune-Up By Robert N. Roop, P.E. Lockatong Engineering, Inc.

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What You and Your Board Need to Consider Before Hiring a Contractor By Eric Lecky, Executive Vice President SageWater

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Management Trends: Zoom, Zoom — Meetings!

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

EXTRAS President’s Corner Looking Ahead

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CAI-NJ Upcoming Events

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Legislative Update

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

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Chapter Trends

2021 Partnership Program Registration 2020 Wednesday Webinar Schedule 2020 Shoot the Cover Photo Contest

New Members

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CAI Membership Application 2020 Ultimate Partner Listings

Chan2545/arthobbit/eichinger julien/cveiv/cveiv/Kittisak_Taramas/Mariia Nikolaeva/fizkes/ iStock / Getty Images Plus; fstop123/ E+/Getty Images

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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

”Gratitude helps us to see what is there instead of what isn’t” — Annette Bridges

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 ROBIN SURGENT MEMBERSHIP MANAGER ROBIN@CAINJ.ORG JENNIFER FARRELL ADMINISTRATIVE COORDINATOR JENNIFER@CAINJ.ORG

November is the Time to Give Thanks! When I think of November, I inevitably think of Thanksgiving. Not just the abun- dance of amazing foods that will be on my menu this holiday season – but the family and friends that are so important in my life. The quote above is perfect for this season. I am truly grateful for the many blessings in my life, including the incredible friendships formed through our membership. I wish you all an amazing Thanksgiving holiday with your families and I look forward to celebrating together someday soon! A New Way to “Conference” As you know, our Virtual Conference and Expo has begun and will run for the next six months. It has been a pleasure to watch the videos provided by our membership and to visit everyone’s “booth” in this virtual world. In addition to the live-streaming event, all videos will be part of the video catalog which will be available on the CAI website. Although it’s hard to simulate the excitement of our annual conference – with friends and colleagues all around, beautiful colors adorning the tables, and the sound of laughter throughout the building – I am grateful that we have figured out a way to stay connected during this historic time. I congratulate Angela Kavanaugh and the entire CAI-NJ Team for all their hard work and dedication. They are doing an amazing job to keep us con- nected until we can all be together again. What Else is New in our Virtual World? We are excited to present the first Community Association Virtual Roundtable Discussion in November, which will connect our managers and homeowner lead- ers. Topics will include everything from re-opening communities post COVID-19 to insurance needs for events, best practices for snow maintenance, collections during COVID-19 and HVAC and filtration systems. The Webinar Wednesday educational programs continue to be incredibly successful, with leaders in our industry discussing topics relevant to our common interest communities. Our networking programs have also been great fun. If you haven’t tuned into the HOA Feud yet – you must – as busi- ness partners and managers compete. Rounding out November is a She-Connects Podcast Discussion presented by the Women’s Leadership Committee. The topic is “Start Small, Think Big, Scale Quickly” featuring Sara Blakely of Spanx with Tony Robbins. I am so proud of the growth of this committee during its inaugural year – so please take the time to join the discussion. New programs are being developed and sponsored by many of our committees….so stay tuned and stay connected! Advocacy – What’s New? Advocacy is incredibly important to our common interest communities – especially now. The Legislative Action Committee (LAC) continues to work diligently on our behalf every day. The LAC Update and Live Webinar was recently held on October 27th and provided important information on the legislative priorities affecting our communities. If CONT I NU E S ON PAGE 54

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

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LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

Season of Transition Fall has always been my favorite season. It’s the season of transition, when the leaves are turning from green to gold, nights are getting chilly and we allow ourselves to indulge in those comfort foods that seem to be forbidden during the summer months. As we head towards the holiday season, I hope you have the time to spend with those you hold as treasures in your life, enjoy memorable traditions and reflect on what we are all thankful for. Most of us would probably agree that this past year has had its challenges. What a year it has been. So much has changed but during difficult times we can find those moments that make us stronger, wiser and more apprecia- tive. I believe that the key to happiness is by being thankful for what we have. Thank You to Our Partners, Committee Volunteers and Chapter Members — Our CAI-NJ Family Our CAI-NJ Partners and members have continued to support the chapter during this unique year. Thanks to them, we have launched the video catalog on our website, contin- ue to host the Wednesday Webinars, giveaway our daily sponsored prizes and participate in the HOA Feud. In addi- tion, the committees continue to create virtual meet-ups and roundtables. Starting January 2021, we’re planning to host the LiveStream sessions of our Virtual Conference & Expo. As we have all missed in-person events, I’m keeping my fingers crossed that we will be able get the CAI-NJ family back together soon. Plans are underway to host live events begin- ning with the Post-Covid Networking Reception. Thank You to Our Legislative Action Committee An amazing group of devoted volunteers working tirelessly monitoring legislation, educating those that make the laws and advocating for everyone living and working in common interest communities. Please read George Greatrex’s article in this issue on page 8. Additionally, this year your Legislative

Action Committee presented multiple LAC Updates providing information on issues affecting all of us. Be sure to visit the webinars section of our www.cainj.org site for the playbacks of these informative sessions. Thank You to the CAI-NJ Board of Directors During an unprecedented year, the CAI-NJ Board of Directors provided guidance to the CAI-NJ Team allowing them to deliver value to our members while always keeping “So much has changed but during difficult times you can find those moments that make us stronger, wiser and more appreciative.” the chapter’s best interests in mind. On behalf of my team I would like to extend our gratitude to the entire board of I am so fortunate to have an amazing team to work with. When our world went into hibernation they pivoted and cre- ated innovative virtual programming, continuously providing membership value and keeping our members connected. Spread Some Holiday Cheer! Once again, the CAI-NJ F.A.S.T. Committee will be hosting their annual Adopt a Family program, to ensure that families in need get to enjoy the holiday season. Please remember to support this initiative. For further information please visit the F.A.S.T. page on the CAI-NJ website at https://cainj.org/ future-all-star-team-f-a-s-t-committee/ or call 609.588.0030. So, get outdoors and enjoy the beauty of the changing season. I know that I am looking forward to making new memories with my husband, children and two beautiful granddaughters because the key to happiness is by being thankful for what we have. Stay safe and enjoy the season with CAI-NJ! n directors for their continued support. Thank You to The CAI-NJ Team

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CALENDAR 2020 Events & Education

NOVEMBER Virtual Expo: Paving & Road Maintenance, Cleaning Services & Exterior Restoration, and Painting & Powerwashing CAI-NJ Website Video Catalog Webinar Wednesdays - Window Leaks and Improving Risk-Management Programs Live Webinar Community Association Virtual Roundtable Virtual Virtual Expo: 24-Hour Emergency Service, and Concierge, Security & Janitorial CAI-NJ Website Video Catalog HOA Family Feud Live Webinar Virtual Expo: Pest Control, Landscape Mainte- nance Design & Irrigation, and Pools, Playgrounds & Pond Maintenance CAI-NJ Website Video Catalog SHE-Connects, Podcast Discussion: Start Small, Think Big, Scale Quickly Live Webinar Webinar Wednesdays - Water Involving Multiple Units Restoration, Water Involving Multiple Units Insurance, and Proac- tive Painting Will Save You Money! Live Webinar HOA Family Feud Live Webinar Virtual Expo: General Contractors & Maintenance CAI-NJ Website Video Catalog Virtual Expo: Specialty Services/Product Manufacturers and Interior Design CAI-NJ Website Video Catalog 4 5 9 13 16 17 18 20 23 30 2

DECEMBER Webinar Wednesdays - Roles & Responsi- bilities of Managers, Owners, Committees & Boards and Paint Types - Paint Pricing/Quality Live Webinar Webinar Wednesdays - Financial Planning Processes Live Webinar Annual Meeting & Chapter Retreat Virtual HOA Family Feud Live Webinar Webinar Wednesdays - Reviewing Alternative Risk-Management Techniques, Chimney Chase Caps, and Writing Informative Newsletters Live Webinar Community Association Virtual Roundtable Virtual HOA Family Feud Live Webinar

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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

I write this column with just a few weeks to go before Election Day November 3…and you will be receiving this issue of Community Trends ® just a few days before the big day. If you’re like me, you’ve already voted and can’t wait for elec- tion season to be over. But I expect many of you have yet to vote and will be doing so on Election Day. While the main focus this year is on the candidates for President and Vice-President, don’t forget the many down-ballot candidates for US Senate, US House of Representatives, and your county and local municipal offices. It is fair to say that these people will have as much of an impact on our daily lives as will the successful can- didates at the top of the ticket, including those of us living and working in New Jersey’s common interest communities! I just received an email from the CAI National office announcing a free resource program entitled “CAI VOTES” that enables voters to check their registration status, search and find elected officials, learn more about candidates, and request an absentee ballot. It reported that a whopping 92% of homeowners living in common interest communities vote in national elections. Check it out at www.caionline.org/ caivotes and let’s increase that number! You may have also recently received an advocacy alert from CAI National announcing that the US House of Representatives had approved another version of the next economic stimulus package, this time totaling $2.2 million. While it is not expected to pass the US Senate, talks are continuing between Congress and the White House on this important legislation. Three policy issues are currently being discussed in this package that will directly impact community associations, so we are being asked to contact our federal legislators (and the other candidates who are vying for those positions this Election Day) and ask them to:

“Three policy issues are currently being discussed in this package that will directly impact community associations...” 2. Ability to Collect Assessments Oppose S. 3565 legislation that suspends consumer debt collection; and 1. Access to Financial Resources • Support S. 3620: Establishment of a Housing Assistance Fund at the Treasury Department to specifically include homeowner association assessments. • Support additional funding for the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) program. • Support community association and CAI Chapter eligi- bility for Paycheck Protection Program (PPP) loans; and Support Safe to Work Act (S. 4317) that limits an asso- ciation’s liability as common areas and community facilities reopen for communities that act in good faith and comply with local, state, and CDC guidelines. As I mentioned at the beginning of this column, the down-ballot candidates can have a big impact on the issues that affect us in our communities and in our jobs. So, if you haven’t yet, GET OUT THERE AND VOTE!!! See you here next month. Stay safe. n 3. Limited Liability for Responsible Organizations

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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

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:

Richard Lans Deana Luchs Judy Miao Cheryl Palent Howard Staum Robert Travis Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent 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 James Rademacher — PAC Committee

Amy Shorter Mark Siwiak Board Liaisons: Charles Lavine Tony Nardone, MBA, PCAM

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

Staff Liaison: Robin Surgent NETWORKING EVENTS COMMITTEE Gary Gleitman — Chair Freedom Hildreth — Vice Chair

Jessica Baker, Esq. Martin Cabalar, Esq. Angela Celeste Gabriella Esposito, Esq. Shelby Evans Ashley Gray, CMCA

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. Caroline Record, Esq. Edward San George, PCAM Board Liaisons: Vanessa Davenport Loren Lightman, Esq. Staff Liaisons: Angela Kavanaugh Robin Surgent MANAGER COMMITTEE

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

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

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

Board Liaisons: Benjamin Basch Jeffrey Logan

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

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent 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

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Patricia Ventura Board Liaisons:

Michael Kennedy Terry Kessler, Esq. Konrad Kurach

Loren Lightman, Esq. Jennifer Nevins, CMCA

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent

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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.

Popular Association Banking Preferred Community Management Services, Inc., 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

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

Corner Property Management, LLC Acquires Condominium Management NJ, LLC Corner Property Management, located in Springfield, NJ, is excited to announce its recent acquisition of Condominium Management NJ, LLC. The acquisition of Condominium Management NJ, LLC is an important growth investment for Corner Property Management as the company continues to expand its geographic presence in NJ and offer best-in-class property management services. With the expansion of CPM’s exist- ing portfolio, the company will continue to provide asso- ciations with an expanded team of dedicated community management professionals and accounting staff. Phil Alampi, former President and Owner of Condominium Management LLC has joined Corner Property Management as a Regional Manager and continues to oversee his CMNJ team. Corner Property Management proudly serves all of New Jersey by providing comprehensive manage- ment services to residential communities, condominiums, and homeowner associations. CHAPTER TRENDS Chip Hoever, PCAM, Made Vice President of Operations for Matrix Organization Matrix Property Management is pleased to announce that Chip Hoever, PCAM, has been made Vice President of Operations for the Matrix Organization. In his new position Mr. Hoever will be responsible for the overall operations, new business development, and business technology inno- • 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.

vation. Hoever and Somerset Management officially joined Matrix as of September 1, 2019 even though they had been collaborating for some time. Since the two compa- nies joined forces, there has been an increased emphasis on customer service, quality, and the acquisition of new communities.

Wilkin Management Group Introduces Revolutionary Program for Manager Compensation

The Wilkin Management Group introduced a revolutio- onary program this year pertaining to manager’s compen- sation. This highly effective program compensates manag- ers as a percentage of their portfolio. Gary Wilkin, founder and owner of Wilkin Management states, “this program has created an entrepreneurial spirit with our managers. They are totally invested in the service delivery to our clients and are directly compensated for it.” Brian Weaver, VP of the firm adds “our managers far exceed industry compensa- tion levels. The investment Gary Wilkin has made with this program has returned some very important and measurable benefits. There is a laser focus on client relationships, a sense of ownership with respective portfolios and an appre- ciation for the company not limiting their compensation. We have been attracting top talent to the company while retaining our great group of Managers.“ Wilkin Management Group corporate headquarters is located in Wayne, NJ. n • 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 brooke@cainj.org or 609-588-0030.

Chapter Trends Editorial Guidelines

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The Financial Impacts of Transition By Michael Mezzo, CPA, WilkinGuttenplan

N ewly built condominium and homeowner’s asso- ciations can offer many perks and amenities for potential buyers. Brand new clubhouses and homes can be very appealing for buyers looking for a fresh start. However, as with most things in life, shiny new things usually come at a cost. Newly built associations have a unique set of financing hurdles that they must manage in order to ensure a successful future. Most of these hurdles stem from the process of “transition”. Within this article, we will take a deeper dive into the transition process and highlight keys to help ensure a successful transition. The life cycle of all communities begins with the builder (i.e. the “developer”). During the initial years of operation, the developer will maintain full control of the site. This con- trol includes making all financial and operational decisions related to the maintenance of the site. During this time, the developer will be responsible for setting the annual main- tenance fee, determining the annual reserve contribution, and preparing an annual budget. As time goes on and more units close, the developer will eventually relinquish ownership of the site to the unit owners. This transfer of ownership if what we refer to as “the transition process”.

For purposes of our discussion, we will focus on two of the more prevalent areas of the transition process: 1) the devel- oper’s funding obligations during their time of control and 2) determining whether there are any construction defects which require repair. Once ownership of the site is transferred to the unit own- ers, the new board will begin the process of reviewing whether the developer provided adequate financing for the site during the time which they maintained control. The “Planned Real Estate Development Full Disclosure Act” includes a detailed description of the funding requirements of a developer. Each developer is responsible for reviewing this legislation, along with any additional state regulations, and determining what they believe their funding obligations to be. Most commonly, developers will elect to either fully fund the reserve fund for all completed components, pay for maintenance fees on all unsold units, or fund any operating deficits during their time of control (exclusive of bad debts). However, it is important to remember that these decisions are unique to each individual site. While undergoing tran- sition, it is important for unit owner boards to obtain a thor- ough understanding of the funding requirements as detailed CONT I NU E S ON PAGE 16

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FINANCIAL IMPACTS... from page 14.

times this report will indicate that the association is due additional funds from the developer, and as such, can be a valuable process that is worth looking into. In addition to the finan- cial concerns addressed above, the unit owner board may also consider having a thorough review of the site itself. This process involves having certified engineers and professionals complete invasive testing to deter- mine whether or not any construction defects or deficiencies are present. Similar to the financial transition exam- ination discussed above, these reports can often identify defects which can require significant amounts of money to repair. As such, having these stud- ies performed can definitely be a ben- eficial task for boards to undertake. At first glance, it may seem obvi- ous that it would be wise for any newly appointed unit owner board to undertake the inquiries and exam-

inations discussed above. However, in order to ensure that your site has a successful transition, it is always recommended to utilize your team of professionals including engineers, accountants, lawyers, etc. These pro- fessionals have years of experience in dealing with transition related matters

within their association’s governing documents. After the unit owner board has gained a thorough understanding of the developers funding requirements, they may then begin the process of evaluating whether the site was ade- quately funded during the period of developer control. This process begins with obtaining the audited financial statements and accounting records since the inception of the site. Once this information is obtained, the board may then engage an independent certified accountant to perform a “transition examination”. This exam- ination provides a summarized report, by year, and indicates whether or not the developer had over or under fund- ed the association’s operating and reserve accounts in past years. Often

“If not properly planned for, the

transition process can cause a site to fall into a financial pitfall.”

and can help guide boards through the process. Although these services can greatly benefit the association, it is very important for boards to remem- ber that all of these services come at a cost. If not properly planned for, the transition process can cause a site to fall into a financial pitfall. To help avoid this, there are three keys that a board can use to help them stay ahead of transition expenses: 1) Budgeting: The annual budget is one of the most important tools that a board has at its disposal. Without an accurate budget, the chances of an association having successful financial results are greatly diminished. This could not be more true than when it comes to transition. Throughout my experiences, I have found that it is not uncommon for boards to be operating on their initial budget (i.e. the budget that was included by the developer in their public offering statement) even after ownership of the site has transitioned to the unit own-

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ers. The problem with this is that the initial budget does not anticipate any transition costs. As such, the monthly fees being charged are not sufficient to cover the additional invoices arising from transition. This can put a significant strain on an association’s cash flow and can lead to the accumulation of large operating deficits. Furthermore, when sufficient cash is not available to pay these new invoices, boards are left to find ways to “cut spending” in other areas. Many times, this leads to a lack of funding in the capital reserves. In order to prevent this, it is very import- ant for boards to review and update the budget on an annual basis to ensure that an appropriate fee is being charged to carry the costs of transition. It is important to remember that settlement funds received through transition are not intended to fund the transition process itself. Monies awarded to an associa- tion through a transition settlement are intended to cover past funding short- falls of the developer, remediation of construction defects within the site, etc. As such, running large deficits as a result of an ongoing transition and settling those deficits with settlement monies is not an effective approach, and will only lead to financial strains down the road. 2) Isolating the Activity: As noted above, if not properly planned for, the transition process can put a significant strain on an associ- ation’s finances, leading to operat- ing deficits and underfunded reserve accounts. In my experiences, I have found that boards find it very helpful to segregate all financial activity relat- ed to transition from the other funds. CONT I NU E S ON PAGE 19

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FINANCIAL IMPACTS... from page 17.

being informed. As we speak, there is new legislation being considered that may result in significant changes to the transition process. Working with your professionals to stay on top of these issues will help you to navigate what can be an arduous and compli- cated process. Arriving at the ultimate

goal, a settlement agreement that is fair to both the developer as well as the association, does not have to be out of reach. Following these guide- lines will help to ensure a successful transition process and will start an association down a path of financial success. n

Once the decision is made to pursue transition, boards can create a new “transition fund” that can be utilized to account for all transition related activ- ity. This will help to provide a clearer picture of the association’s finances and will prevent any transition related activity from tainting the operating or reserve funds. With a more accurate picture of the financial health of each fund, boards will be better informed and prepared when it comes time to prepare the annual budget. 3) Evaluate the Benefit: As the old saying goes, you will want to make sure “the juice is worth the squeeze”. You do not need to be an accountant to know that spending $100,000 to receive a $50,000 tran- sition settlement is not an ideal situation. As mentioned earlier, transitions are unique to each individual situation. It is very important to work with your pro- fessionals and put together a plan for your transition process. The plan should include an estimated time frame, a reasonable estimate of the value of the potential settlement to be received, and an estimate of anticipated professional costs to be incurred along the way. Once all of this information is gathered, the board can then determine whether or not pursuing a settlement would make financial sense. Relying on stories of what similar associations settled for does not constitute a reliable plan. You must always consider the facts and cir- cumstances that are specific to your site. At the end of the day, the key to a successful transition revolves around

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2021 PARTNERSHIP PROGRAM

PROGRAM partnership Community Associations Institute New Jersey Chapter PromoteYourBusinessandSupportNJ’sCommunityAssociation Industry

2021

About The program The 2021 Community Associations Institute New Jersey chapter Partnership Program offers our Business Partner and Management Company members exclusive perks and branding opportunities. You must either be a current CAI-NJ Business Partner or Management Company member to qualify for the 2021 Partnership program. 3 different levels The 2021 Partnership Program offers 3 different exclusive levels of participation: Premier, Elite, and Ultimate levels. Each level was designed to offer specific benefits. Choose which level serves the needs of your company best. Why participate? The Partnership Program provides cost effective, guaranteed exposure including enhanced advertising place- ments, increased brand recognition and special acknowledgment on signage at events and CAI-NJ publica- tions. Your company will receive cost effective, prominent exposure in New Jersey’s community association industry, exclusive to 2021 Partnership Program participants.

2020 APPLIED CREDIT FOR 2021 CONTINUING PARTNERS

ӹ Ultimate Partners will receive $4,000 OFF* ӹ Elite Partners will receive $2,000 OFF* ӹ Premier Partners will receive $250 OFF*

*Must have been a 2020 Partner to qualify for credit for 2021 Partnership. Must renew for 2021 at the same level or higher partnership as 2020 in order to receive credit for 2021. Credit will be applied to overall 2021 Partnership total.

An educational event targeted towards Homeowners and Property Managers will be sponsored by the Ultimate Partners. This program will be presented by a professional speaker. Ultimate Partners will be able to set up a table top display at the event and will exclusively be front and center for networking opportunities with the attendees. More information will follow. Exclusive Ultimate EvenT

APPLICATIONS AND PAYMENT DUE BY DECEMBER 14, 2020

2021 PARTNERSHIP PROGRAM REGISTRATION FORM

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FOR DETAILS ABOUT THE PARTNERSHIP PROGRAM VISIT WWW.CAINJ.ORG QUESTIONS? Contact Robin at (609)588-0030 or emai l : Robin@cainj .org REGISTER NOW! I affirm that I am authorized to make the above Partnership commitment on my company’s behalf. I have read and understand the Partnership program is sold as a benefit package, not individually and agree to pay in accordance with my selected billing preference and payment option listed above. Partnership refunds or cancellations cannot be made after the contract is signed as potential partners may be turned away as a result of your acceptance. I understand that this form becomes a contract when signed. Please note that by signing up for the 2021 Partnership Program, CAI-NJ holds the right to make changes to benefits, events and programming throughout the course of this agreement. I understand and accept that changes to offerings during the contract period by CAI-NJ that are deemed necessary by the chapter to accommodate acts of god, pandemics, governmental orders, etc. may be made at any time, at the sole discretion of CAI-NJ, including but not limited to virtual substitutions in lieu of in-person events. Name: _________________________________________________________________________________________ Signature (Authorizing Officer): ________________________________________________________________ _______ Cardholder Name: _______________________________________________________________________________ Credit Card Number: _____________________________________________________________________________ Exp. Date: ______________________ Security Code:____________ Billing Zip Code: _________________________ Cardholder Signature: ____________________________________________________________________________ Cardholder acknowledges receipt of goods and/or services in the amount of the total shown hereon and agrees to perform the obligations set forth in the cardholder’s agreement with issuer. For semi-annual payments, cardholder grants permission for the above to be charged half of partnership total on or before deadline of Monday, December 14, 2020 and remaining balance to be charged on June 1, 2021. Cardholder further acknowledges that the Partnership Program is for a one-year term and the split payment installment is only an accommodation for participants in the program and that the program commitment is for an entire calendar year. TERMS & CONDITIONS: GENERAL INFORMATION: (PLEASE PRINT) Company: _______________________________________________________________________________________ Primary Contact: _____________________________________Email: ________________________________________ Billing Contact (If Different From Primary) : __________________________Email: ________________________________ Address: _______________________________________________________________________________________ City: ___________________________________________State: _____________________ZIP:___________________ Phone:__________________________ Alternate Phone:_________________________ Fax: ___________________ 2020 PARTNERSHIP PROGRAM RATE: PREMIER $3,500 ELITE $6,500 ULTIMATE $10,000*(2020 Ultimate Partners only.) *I am interested in upgrading to ULTIMATE PARTNERSHIP if space becomes available. (Must have been a 2020 Premier or Elite Partner to qualify.) BILLING PREFERENCE: (CHECK ONE) Annually Semi-annually (CREDIT CARD ONLY) PAYMENT: (CHECK ONE) 1. PAY BY CHECK: Check Enclosed for FULL PAYMENT (MADE PAYABLE TO CAI-NJ) Mail completed form with check to: CAI-NJ, Attn: Partnership Program 500 Harding Road Freehold, NJ 07728 2. PAY BY CREDIT CARD: Please fill out credit card info and fax completed form to (609) 588.0040.

Read Your Governing Documents Closely By Randy Sawyer, Esq. Stark & Stark POISON PAPERWORK:

I n the last decade or so of my practice, I have seen an increasing trend where developers are creating govern- ing documents that contain language intended to protect their interests after the condominiums are constructed and sold. Developers are adding provisions to master deeds and bylaws that have the effect of curtailing, or altogether eliminating, associations’ ability to file construction defect suits. These provisions often are directly contrary to rights afforded associations under the New Jersey Condominium Act (the Act). One example is provisions that authorize creation of a “pre-transition committee” made up of unit owners who are given responsibility of inspecting common elements in the community once they are constructed and then “negotiat- ing” a binding resolution with the developer over repairs to any defects. While in theory this sounds like a fair process to resolve defects without the need for litigation, the types

of provisions developers are drafting create a one-sided process in their favor. Actual language from an unnamed association follows with problematic language in bold: ••• ARTICLE XV PRE-TRANSITION PROCEDURES 15.03. Procedure. The Committee shall cause each completed portion of the Common Elements and Other Improvements, other than Bonded Improvements, to be inspected by and obtain a report from a qualified independent engineering consultant within sixty (60) days after the Committee’s receipt of each Notice of Completion. A copy of each said report shall be furnished to the Sponsor within ten (10) days after the Committee’s receipt of same. Thereafter the Committee or its designated representative(s) and the Sponsor shall conduct one or more joint inspections of the improvements covered by the Notice of Completion and CONT I NU E S ON PAGE 24

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