CAI-NJ Aug. 2020(w)

MANAGEMENT TRENDS

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

T o those who may not be familiar, the New Jersey Department of Community Affairs – Bureau of Housing Inspection (the “DCA”) administers the New Jersey Hotel and Multiple Dwelling Law, N.J.S.A. 55:13A-1 et seq. That law generally requires an inspection of all com- mon interest communities that fall within the definition of multiple dwellings every five (5) years to ensure the health, safety, and welfare of the residents that reside in those communities. To those of us who are far too familiar, the words “DCA 5-Year Inspection” are typically followed with loud groans and uneasy anticipation as to how to start the journey to proceed to the final destination, which ultimately leads to the door of prepared and compliant residents. The navigation through the DCA 5-Year Inspection pro- cess is one that begins well before the notice arrives of scheduled inspection for your community from the DCA. The first step is to register the association with the State of New Jersey properly. The Annual Report Registration includes information such as an association’s tax identifica- tion number as well as the name of the registered agent, which is most often the management company. Before the Annual Report is submitted, it is essential to confirm that the name of the registered agent is correct. For newly acquired communities, this should be on the transition checklist. To amend as soon as your company begins managing the property. These updates will ensure that you receive DCA Inspection notifications and not the previous managing agent. Failure to comply with the scheduled inspection can lead to fines assessed against an association, not to mention the shortened window to notify homeowners of the inspection and the requirements. Now comes the toll in the road – paying the DCA inspec-

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“Failure to comply with the scheduled inspection can lead to fines assessed against an association...”

tion fees. The fee can dent an association expense budget if not thought of in advance. A common practice is to save for the DCA Inspection by budgeting the costs into the deferred maintenance account. The inspection fee divided over five (5) years is a lot more palatable then coming up with the charges at the time of the inspection. Planning this route carefully can avoid an unpopular special assessment or decrease in your operating account surplus. The second part of the fee for the inspection is a lead paint surcharge. An association built after 1977, can have this lead paint surcharge removed with proper documentation submitted to the DCA. A copy of the first occupied unit’s Certificate of Occupancy (“CO”) is the best source to prove build year. The township records will have these documents available for inspection. However if you are managing a newly CONT I NU E S ON PAGE 44

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