CAI-NJ Aug.2016

LEGISLATIVE UPDATE... from page 7.

WHEN IT COMES TO HOMEOWNER ASSOCIATION GOVERNANCE ...

under the control of the developer have the benefit of an engineering survey of all common elements provided by the developer, have all necessary correc- tions made by the developer, and have a full financial accounting of association activities during the period of developer control provided by the developer; provisions authorizing board members elected by the unit owners prior to transition to represent the interests of the unit owners when such interests are adverse to those of the developer and to delegate such authority to committees of unit owners…” Subject to certain limitations, the bill also allows claims to be filed under the New Home Warranty and Builders’ Registration Act by the asso- ciation, members of the board who are elected by the unit owners, or a committee appointed by such mem- bers, and by an owner or a group of owners of units whose unit(s) are affected by the claims. The scope of the bill is broad and the remedies available to the association require clarification. Bills intended to protect the interests of homeowners, including the manner in which construction defects are to be addressed, must be drafted so as to anticipate the adverse consequences of empowering multiple parties to take disparate and, potentially, conflicting action. I will keep you posted on the sta- tus of these bills and others as they come before the LAC. See you in September! n

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