CAI-NJ August 2021

August 2021 Community Trends

®

AGE RESTRICTED COMMUNITIES

Robert Daly/ OJO Images/Getty Images

In This Issue

• Fiduciary Duty and Aging Infrastructure • NJ’s “55+” Communities Have Come of Age • Use of Amenities by Non-residents/Guests — (Your Grandkids have Overstayed theirWelcome!) • The Retirement Road: Having Your Ducks in a Row ....and more

The Community Associations Institute New Jersey chapter would like to thank its 2021 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

10 What Should You Be Thinking About Right Now? Community Association Update: A Serious Message from CAI-NJ By Robert N. Roop, P.E. 15 Fiduciary Duty and Aging Infrastructure By John Prisco, Esq. and Andrew Podolski, Esq. Stark & Stark 24 NJ’s “55+” Communities Have Come of Age By Rich Wieland Lake Ridge Homeowners Association 36 Use of Amenities by Non-Residents/Guests — (Your Grandkids have Overstayed their Welcome) By Domingo Ramirez 44 The Retirement Road: Having Your Ducks in a Row By Alexander A. Pisani, CPA, MAcc WilkinGuttenplan 54 Management Trends: Rules Enforcement in a Post-Pandemic World

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Lockatong Engineering, Inc. on behalf of the CAI-NJ Editorial Committee

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Associa - Community Management Corporation of New Jersey, AAMC

“55+”

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By Chuck Graziano, CPM, PCAM Wilkin Management Group, Inc.

EXTRAS President’s Corner Looking Ahead

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CAI-NJ Upcoming Events

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Chapter Trends

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

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CAI-NJ Beach Party Registration 23 Community Association Virtual Roundtable Discussion 28 2021 Dennis R. Casale Memorial Golf Outing Wrap-up & Photos 29 2022 CAI-NJ Board of Directors Nomination Form 40 2022 CAI-NJ Committee Sign-Ups 41 2021 CAI-NJ CONFERENCE & EXPO Save the Date 49 Schedule 50 Attendee Registration 51

44

2021 Webinar Wednesdays CAI-NJ/PA Joint Networking Event

53 61 65 68 69 70

54

CAI-NJ PCAMs New Members

CAI Membership Application 2021 Ultimate Partner Listings

Getty Images

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CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

PRESIDENT ELECT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

PRESIDENT LOREN LIGHTMAN, ESQ. HILL WALLACK LLP

VICE PRESIDENT TONY NARDONE, MBA, PCAM CORNER PROPERTY MANAGEMENT, AAMC

TREASURER CHRISTOPHER NICOSIA, CMCA, AMS, PCAM PRIME MANAGEMENT, INC., AAMC

SECRETARY BENJAMIN BASCH AMERICAN POOL ENTERPRISES

BOARD MEMBERS

Mary Barrett, Esq. Stark & Stark Business Partner Vanessa J. Davenport Regency at Quailbrook Homeowners Association Homeowner Leader Ryan Fleming JGS Insurance Business Partner

Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader Steven Mlenak, Esq. Greenbaum, Rowe, Smith & Davis, LLP Business Partner Kristina Munson, CMCA, AMS, PCAM RCP Management Company, AAMC, AMO Community Association Manager

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Jennifer Nevins, CMCA

DW Smith Associates, LLC, a subsidiary of PS&S, LLC

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PRESIDENT’S CORNER Loren Lightman, Esq. CAI-NJ 2021 PRESIDENT HILL WALLACK LLP

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

“Summer afternoon – summer afternoon; to me those have always been the two most beautiful words in the English language.” — Henry James

Summer Afternoons and CAI-NJ With the summer moving along, we are certainly taking advantage of sum- mer afternoons with our busy event schedule. Our F.A.S.T. Kickball Tournament was held on Wednesday, July 14th at Mercer County Park East Picnic Area in Princeton Junction. The tournament, which was the first held by the F.A.S.T. Committee, was held to raise money for Make-A-Wish New Jersey and culmi- nated with a “Balloon Blast the CAI-NJ Board” which helped raise additional funds for Make-A-Wish. The event was a tremendous success, with the amount raised surpassing that raised by previous F.A.S.T. Olympics. Thank you to all who participated and contributed to this very worthy cause. Pictures from the event can be found at https://cainj.org/envira/2021-f-a-s-t-kickball-tournament/ We continued with our ongoing virtual events as well during July, including a Wednesday Webinar that was held on July 21st. Our Community Association Leadership Summit was held virtually on July 29th, with topics of discussion including adversity, diversity and inclusion. The topics spurred interesting commentary on relevant issues impacting those who reside in community associations throughout the state. Though it is some months away, our in-person Conference and Expo booths opened to the entire membership as of Thursday, July 7th and already 90% sold out. Please go to https://cainj.org/2021-conference-expo/ for further informa- tion and don’t wait too long as booths are anticipated to sell out well in advance. Age Restricted Communities The theme of this month’s issue is “Age Restricted Communities”. The articles in the issue focus on our 55+ community associations. Articles include “Use of Amenities by Non-Residents,” “Estate Planning/Organizing Your Assets”, “History of the HOA,” and “Helping Boards Navigate Updating Their (Governance) Systems”. The articles in the issue serve as a useful resource for our 55+ communities. Enjoy all your summer afternoons and I look forward to seeing you personally or virtually soon! n

Contact CAI-NJ

ADDRESS CAI-NJ

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

CAI-NJ on Social Media

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

@cainewjersey

CAI-NJ

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LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

“A body in motion stays in motion...” — Isaac Newton

T he enthusiasm of our members to return to in-person events has motivated the CAI-NJ Team to create many new experiences this year, as well as continue with those that we normally host annually. Summer 2021 at the CAI-NJ headquarters has been busier than ever before, presenting a full year of in-person events within the seven months remaining, in addition to multiple new virtual educational programs. Busy July. The F.A.S.T. Committee presented a new event to benefit Make-A-Wish New Jersey. Eight teams, made up of 97 participants, enjoyed a fun-filled day as they battled at the 2021 CAI-NJ F.A.S.T. Kickball Tournament, raising money for this wonderful cause. Our CAI-NJ Board Members, Ben Basch, Jeff Logan, Chris Nicosia, and Tony Nardone were good sports, adding to the fun with the Board Member Challenge and ending with Jeff Logan raising the most money with $2,650 and getting soaked by the team players and spectators, for this wonderful charity. A Wednesday Webinar educational program was led by C&L Services Pavement Maintenance speaking on Catch Basin Repair and Maintenance and Technocality, Inc. spoke on Privacy & Security in an Increasingly Insecure World. Our members also had the opportunity to participate in the Community Association Leadership Summit (previously the Senior Summit). Topics and company presenters includ- ed Adversity, Diversity & Inclusion – Hill Wallack LLP, Gross Negligence vs. Negligence, Who is Responsible – PeopleFirst Property & Casualty Services, The Whos, Whats, Whens, Wheres, and Hows of Association Lending – Alliance Association Bank, Retention and Storm Drains – Morris Engineering, LLC, Communicating with your Community – Denali Property Management, Inc., and Electronic Voting – BITS Consulting, LLC. If you missed either of these sessions or any of our other educational programming throughout the year, the recordings are

available in the CAI-NJ Webinar Library on our website, https://cainj.org/webinars/

BUSIER AUGUST… In-person Education and Networking

We will be kicking the month off with the Business Partners Essentials on Tuesday, August 3rd, where Business Partners will gather practical information and advice on working with community associations, led by Jim Magid, CMCA, PCAM of FirstService Residential, AAMC, Jim Rademacher of Rezkom Enterprises, Inc. and David Velasco of JGS Insurance, https://www.cai-nj.org/event-4180130. Our Ultimate Night Out will be on Thursday, August 5th at The Jersey Shore BlueClaws Stadium. Managers and homeowner leaders are invited to come and join our Ultimate Partners for an evening of baseball under the stars. https://www.cai-nj.org/event-4359658. Then, on Thursday, August 5th – Friday, August 6th, homeowner leaders, will have the opportunity to learn how to be a successful board member and effectively work with community associa- tion managers and service providers, at the next Board Leadership Development Program, taught by Christopher Nicosia, CMCA, AMS, PCAM of Prime Management, Inc., AAMC, Michael Mezzo, CPA, WilkinGuttenplan and Fran McGovern, Esq. or McGovern Legal Services, LLC. Virtual Education Managers and homeowners are invited to attend the next Virtual Roundtable Discussion on Thursday, August 12th. Topics and speakers will include, Ants & Critters Creeping in, AMCO Pest Solutions, Inc., Best Practices: Contracts, ADR Process and Protecting Your Association, Curcio Mirzaian Sirot, LLC, Emergency Planning/Preparing for the Big Storm, PuroClean of Hoboken, Jersey City, Fort Lee, and Asphalt Repair, Witczak Engineering,register at

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CALENDAR 2021 Events & Education

AUGUST

OCTOBER

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20 21

Business Partner Essentials Course RCP Management Company Office, Cranbury

Pre-Conference Networking Reception Encore Event Center @IPA, Freehold

3 4 5 5 &6 12

Business Partner Meet-Up MJ’s Restaurant Bar & Grill, Spotswood

Annual Conference & Expo Encore Event Center @IPA, Freehold

Wednesday Webinar Virtual

DECEMBER

Ultimate Night Out at BlueClaws Stadium Jersey Shore BlueClaws Stadium, Lakewood

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Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge

Board Leadership Development Workshop CAI-NJ Office, Freehold

Winter Break Party Grand Marquis, Old Bridge

Community Association Virtual Roundtable Discussion Virtual

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Wednesday Webinar Virtual

Register for these and other events at www.cainj.org. All events are subject to change .

SEPTEMBER

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Wednesday Webinar Virtual

17 23 28

Beach Party Martell’s Tiki Bar, Point Pleasant

CA-PAC 9 & Nosh - Golf Outing Concordia Golf Club, Monroe Twp.

Building Membership Bridges - Joint NJ/PA Networking Event Location TBD

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CHAPTER TRENDS

Concordia Homeowners’ Association is pleased to announce that their clubhouse and pool are fully open for residents only, with our aquacise and water volleyball up and running! They have many activities that began with a 4th of July DJ and ice-cream around the pool and ending with their New Year’s Eve party later in the year. They also have food trucks coming once a month. All of their clubhouse activities are up and running, including cards, billiards, ceramics, table tennis, exercise classes and more. They have begun planning trips, the first to be in August. All clubhouse activ- ities are posted on their in-house tv, e-blasted through their website to the entire community and included in the monthly newspaper. The committees and clubs have also begun having their monthly meetings in the clubhouse and are planning their

special events. The Welcome Committee has begun hav- ing their monthly new resident welcome events. Many new residents moved in during 2020 and with the clubhouse being closed due to COVID , none of these new residents have had the pleasure of learning about activities, events, and clubs and so they are thrilled that these new resident welcome events are starting up again. They are happy to see all the smiling faces in the club- house and at the pool once again! n

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Email: info@ pcmsus.com • Web: www.pcmsus.com

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WHAT SHOULD YOU BE THINKING ABOUT RIGHT NOW? COMMUNITY ASSOCIATION UPDATE CAI-NJ Editorial Committee The Community Trends ® What Should You be Thinking About Right Now? — Community Association Update is a month- ly feature added to our issues from CAI-NJ’s Editorial Committee. While upcoming issues of Community Trends ® will include articles relating to our monthly magazine theme, this update will provide direct, often bullet-point style updates and timely information important to community associations right now. T he tragedy at Champlain Towers South has been a wake-up message to condominiums all over the country. Those in New Jersey are particularly concerned. After all, while our climate is temperate in comparison to tropical in Miami, we share too many similarities. • A long coast with depth to bedrock requiring highly engineered foundations for larger buildings • Exposure to tropical storms • High density building in popular waterfront locations • High density occupancy in those buildings • A marine exposure to corrosive salts, high moisture levels and driving rain • Architectural features like extensive balconies, decks, pools, and windows for expansive views • Building materials, concrete, steel reinforced concrete and steel structural sections The New Jersey chapter of the Community Associations Institute’s monthly magazine, Community Trends ® has as one of its important functions to inform the community association industry of important issues and guiding associations in addressing those issues. In just the last few years, the magazine has published numerous articles by experts in the field: • January 2019, “Let’s Maintain Our Property Values” – https://user-cainj.cld.bz/CAI-NJ-Jan-2019-w/18/ • February 2021, “Keeping Your Association on the Right Financial Track” – https://user-cainj.cld.bz/CAI-NJ-February-2021/40/ • March 2021, “Roadway and Infrastructure Development Programs” – https://user-cainj.cld.bz/CAI-NJ-March-2021/16/ Perhaps prescient was the May 2021 issue with these articles: • “How to Read Engineering Plans” – https://user-cainj.cld.bz/CAI-NJ-May-2021/16/ • “Preparing a Request for Proposal, A Tutorial Guide for Community Association Property Managers” – https://user-cainj.cld.bz/CAI-NJ-May-2021/22/ • “Perilous Neglection” – https://user-cainj.cld.bz/CAI-NJ-May-2021/36/ • “Management Trends: Aging Infrastructure” – https://user-cainj.cld.bz/CAI-NJ-May-2021/44/ Continuing our focus on issues most important to our members, the November issue of Community Trends ® will be devoted to best practices and consequences learned from the Miami disaster. Experts will discuss board fiduciary respon- A Serious Message from CAI-NJ By Robert N. Roop, P.E., Lockatong Engineering, Inc., on behalf of the CAI-NJ Editorial Committee

JakeOlimb/ DigitalVision Vectors/Getty Images

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2021 CAI-NJ COMMITTEES

AWARDS COMMITTEE Michelle Gadaleta — Chair Mary Visco — Vice Chai r

EDITORIAL COMMITTEE Michael Mezzo — Chair Carol Shenk — Vice Chair Robert Arnone, CMCA, AMS Martin Cabalar, Esq. Don Cabrera, CMCA Neeraj Chander Melissa Lathrop, RS Nicole Martone, CMCA, AMS, PCAM Steven Morris, PE, RS Drew Podolski, Esq. Robert Roop, PE Michael Ryan

HOMEOWNER LEADERS COMMITTEE Roslyn Brodsky — Chair Traci Benish

MEMBERSHIP COMMITTEE Kathleen Radler — Chair Nichole Gist — Vice Chair Tara Baldwin, CPA Lysa Bergenfeld, Esq. Roslyn Brodsky Megan Elgard Nikolaos Haralambopoulos, CPA Shannon Hill Debra Rizzi Steve Roderick Ken Shah

Jeanine Clark Drew Cowley Lindsay Cupples Kim Dempsey Annie Gonzales Kari Prout, CMCA Peter Shine Eileen Szelewicki, CMCA Sandi Wiktor Board Liaisons: Loren Lightman, Esq. Jeff Logan Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE Jessica Vail — Chair Lisa Wagner — Vice Chair

Salvatore Gurriero Vonetta Hawkins Richard Lans Deana Luchs Cheryl Palent Howard Straum Robert Travis, CIRMS Board Liaisons: Vanessa J. Davenport

Amy Shorter Mark Siwiak Briana Walsh Board Liaisons: Charles Lavine Steven Mlenak, Esq.

Charles Lavine Staff Liaisons: Jaclyn Oskierko Robin Surgent LEGISLATIVE ACTION COMMITTEE (LAC)/PAC George Greatrex, Esq. — Chair Matthew Earle, Esq. — Vice Chair Joseph Chorba, CPA — Treasurer Michael Pesce, PCAM — Secretary Elizabeth Comando, CMCA, PCAM — PAC President

Larry Thomas, PCAM Charles Witczak, PE Board Liaisons: Mary Barrett, Esq. Benjamin Basch Staff Liaison:

Staff Liaison: Robin Surgent NETWORKING EVENTS COMMITTEE

Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Nicole Miller, Esq. — Chair Jessica Baker, Esq. — Vice Chair Chelsea Donnigan

Thomas Asciolla Theresa Beckett Jose Elvir Carrie Fusella Dawn Kearney

Freedom Hildreth — Chair Daniel Reilly — Vice Chair Cathy Brennan Dean Catanzarite Diane Cody, CMCA, PCAM Rhett Cowley Janice Ellery Gary Gleitman Pam Illiano Richard Lang Jessica Marvel Debbie Pasquariello, CIRMS

Paul Raetsch — PAC Vice President James Rademacher — PAC Committee Barbara Drummond, CMCA, PCAM A. Christopher Florio, Esq. Eric Frizzell, Esq.

Eric Eggert Kristi Evans Shelby Evans, CPA, CMCA Ashley Gray, CMCA

Terry Kessler Toni Licciardi Mike Luzzi Kim Manicone Jill Nappi Herman Shauger David Velasco Michael Vennitti Gregory Vinogradsky

Vincent J. Hager, CIRMS Sue Howe, AMS, PCAM Karyn A. Kennedy Branco, Esq. Christine F. Li, Esq. Jim P. Magid, CMCA, PCAM Thomas C. Martin, Esq. Glen A. Masullo, CMCA, PCAM Richard Milder Cheryl Palent J. David Ramsey, Esq. Edward San George, PCAM Board Liaisons:

Steven Kuhnert Regina Lebron Jessica Long Endrick Rodrigues

Sam Schneider Lauren Vadenais Gabe Vitale Kristy Winchock Jose Romero Board Liaisons: Jeff Logan Kristina Munson, CMCA, AMS, PCAM Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent GOLF COMMITTEE Tom Witkowski — Chair Ross Rutman — Vice Chair Chris Belkot Harold Berlowe Scott Brandle Keith Giliberti, RS Fred Hodge Sal Iozzia Paul Migliore Mike Polulak David Shahrabani Jasmin Shelton Ryan Weiner Paul Wojciechowski Board Liaisons: Tony Nardone, MBA, PCAM Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko Hank Johns Lisa Komitor Karl Meth

Chris Rosati David Ross Melissa Volet Erica Taras Kasey Ronan Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko WOMEN’S LEADERSHIP COMMITTEE Cheryl Rhine, CIRMS — Chair Martinia Heath, CMCA, AMS — Vice Chair Karen Carway-Meehan, CMCA Jessica Hatton Lirelle Klein

Board Liaisons: Benjamin Basch

Ryan Fleming Staff Liaisons: Jaclyn Oskierko Robin Surgent CONFERENCE & EXPO COMMITTEE Jessica Kizmann, CPA — Chair Jackie Thermidor, CMCA, AMS, PCAM — Vice Chair

Vanessa J. Davenport Steven Mlenak, Esq. Staff Liaisons: Angela Kavanaugh Robin Surgent MANAGER COMMITTEE Denise Becker, CMCA, AMS, PCAM — Chair Dawn Mackanic, CMCA — Vice Chair Raymond Barnes, CMCA, AMS, PCAM Mary Barone, CMCA, AMS Robert Davidson Chuck Graziano, PCAM Erin O’Reilly, CMCA, AMS, PCAM Vincent Rapolla, AMS David Salter, CMCA Kerri Stimpson, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Board Liaisons: Kristina Munson, CMCA, AMS, PCAM Tony Nardone, MBA, PCAM

Donna Belkot Joe Bonafede Jay Burak Nicole Camarota, CMCA, AMS

Ellen Comiski Catherine Daly John Echelmeier Saher Gouda Janice Heussler Dorothy Nicklus Kevin Oliver Scott Palmieri Joely Phenes Board Liaisons: Ryan Fleming Jeff Logan Staff Liaison: Jaclyn Oskierko

Georgette Kyriacou Kristin Marzarella Carol Nickerson, CMCA Nicole Skaro, CMCA Mariaellen Varelis Anne Yanarella Board Liaisons: Mary Barrett, Esq. Loren Lightman, Esq.

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Staff Liaisons: Jaclyn Oskierko Robin Surgent

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CAI-NJ 2021 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 Services Pavement Maintenance Corner Property Management, AAMC Denali Property Management, Inc. DW Smith Associates, LLC a subsidiary of PS&S

Technocality, Inc. WilkinGuttenplan

The Falcon Group - Engineering, Architecture & Reserve Specialists

Accent Group Adamas Building Services All County Exteriors

FirstService Residential, AAMC Greenbaum, Rowe, Smith & Davis, LLP Griffin Alexander, P.C. Guardian Service Industries, Inc. Hillcrest Paving & Excavation, Inc. Jesan Construction and Maintenance JGS Insurance

PeopleFirst Property & Casualty Services Popular Association Banking Preferred Community Management Services, Inc., AAMC PuroClean of Hoboken, Jersey City, Fort Lee

Alliance Association Bank AMCO Pest Solutions, Inc. Apex Contractors, LLC Becht Engineering BT, Inc. Buckalew Frizzell & Crevina LLP Cowley’s Termite & Pest Control Services Curcio, Mirzaian & Sirot, LLC Cutolo Barros, LLC Dior Construction, Roofing, and Siding Dorothy Gale Roofing Group Environmental Designers Irrigation, Inc.

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

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

Morris Engineering, LLC National Contractors, Inc. O&S Associates, Inc. Pardini R. Construction Corporation

Accurate Reconstruction AR Management Company EOSSO Brothers Paving Felsen Insurance Services, Inc.

Giordano, Halleran & Ciesla, P.C. Hueston McNulty, P.C. Landscape Maintenance Services, LLC

Radom & Wetter Attorneys at Law The Rahn Companies Renda Roads, Inc. South Shore Construction, LLC Wilkin Management Group, 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!

PLEASE NOTE: Sorry, CA-PAC cannot accept credit cards. Please make your CORPORATE or PERSONAL CHECK payable and mail to: CA-PAC, 500 Harding Road, Freehold, NJ 07728

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:______________________________________________________________________________________________________

Sorry, CA-PAC cannot accept credit cards. 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. TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO: CA-PAC, 500 Harding Road, Freehold, NJ 07728

Fiduciary Duty and Aging Infrastructure John Prisco, Esq. & Andrew J. Podolski, Esq., Stark & Stark

“But in this world, nothing can be said to be certain, except

death and taxes.” — Benjamin Franklin

W hen Benjamin Franklin penned this famous and often quoted idiom in his letter to Jean-Baptiste LeRoy in 1789, it is clear he was not on the board of a community association; had he been, Mr. Franklin’s ubiquitous observation would have been expanded to include death, taxes and the need to eventually replace aging infrastructure systems! When it comes to the various sys- tems that comprise community asso- ciation infrastructure, it is a matter of when and not if such systems will need to be replaced. While it is well recognized that certain systems with shorter life cycles, such as caulk joints and exterior paint will have to be replaced with fair regularity, other more complex systems – such as exterior cladding, mechanical and even structural systems will eventually outlive their useful lives and need to be replaced as well. While it is usually an easy and inexpensive decision for boards to agree to replace failed caulk joints, a few missing roof shingles, etc., it is a much tougher pill to swal- low when the time comes to make more universal, inva- sive and costly replacements to building infrastructure. However, while owners of single-family homes have the right to simply put off necessary repairs and replace- ments, boards at the helm of community associations

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FIDUCIARY DUTY... from page 15.

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do not have that luxury, as they are bound by a fiduciary duty to protect their association’s common elements. Fiduciary Duty Explained A fiduciary is a person or group of people that act on behalf of another person or group of people, putting their clients’ interest ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary requires being bound both legally and ethically to act in the others’ best interests. In the community association context, the board of directors of a community association has a fiduciary obligation to the association entity and its members. Most New Jersey community associ- ation are non-profit corporations and are therefore governed under the New Jersey Nonprofit Corporation Act. The Act provides that board members “shall discharge their duties in good faith and with that degree of diligence, care and skill which ordinary, prudent persons would exercise under similar circum- stances in like positions.” [N.J.S.A. Sec. 15A:6-14]. Based on this statutory requirement, decisions of board mem- bers on behalf of unit owners must be made in good faith and with the com- munity’s overall interest. It is imperative for board members to comply with their fiduciary duty in order to protect not only the asso- ciation’s financial interests, but the personal assets of the board. In gen- eral, boards of non-profit corporations enjoy protection under the Business Judgement Rule; this rule provides that

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CONT I NU E S ON PAGE 18

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FIDUCIARY DUTY... from page 16.

to be protected under the Business Judgement Rule, boards must act with- in their fiduciary duty and not out of a self-dealing, apathetic, arbitrary or fraudulent manner. Similarly, if board members are sued for decisions they made, the association’s Director’s and Officer’s liability insurance policy will

generally provide defense and indem- nification if they acted in accordance with their fiduciary duty. Fiduciary Obligations for Aging Infrastructure As this fiduciary duty relates to replace- ment of aging infrastructure, most forms of association governing documents, including the model by-laws found in New Jersey Condominium & Community Association Law (Gann 2019), provide as follows: “It shall be the affirmative and perpetual obligation and duty of the Board to perform the follow- ing: [t]o cause the General and Limited Common Elements to be maintained according to accept- ed standards and as set forth in the Master Deed, including, but not limited to, such maintenance, painting replacement and repair work as may be necessary... All repairs and replacements shall be substantially similar to the original application and installation and shall be of first class quality...” Of importance, the direction given to boards in the model by-laws is affir- mative and not optional. Governing documents intentionally state that a board “shall” (not “may”) maintain, repair and replace defective building elements. Single family homeowners may fix problems with their homes; however, because of the fiduciary duty, community association board members shall fix them. Therefore, when a building system is aging and in need of repair or replacement, simply ignoring the prob- lem is not a viable option for a board that complies with its fiduciary obliga-

if a board makes a decision using its best judgement and reasonable due diligence, the board will be indem- nified by the corporation if its deci- sion is ever challenged. However,

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FIDUCIARY DUTY... from page 18.

cladding systems, structural deficien- cies, etc., a board does not have the expertise to make this determination on its own. Therefore, boards that take their fiduciary duty seriously will consult with the appropriate professionals. It is recommended that boards often seek the advice of an architect or engineer to help determine if a building system is in need of repair or replacement, and, if so, what an appropriate scope of work is. While an association will likely have to pay the Professional for their time, this is a worthwhile invest- ment as the association will likely get an objective, unbiased opinion on what work needs to be done and what work can be tabled for a later date. There is a chance that if an association requests this advice from an unscrupulous contractor, the recom- mended scope of work (and resultant

cost of work) could be broader than necessary. Who will do the work? After determining what the scope of work will be to repair or replace the aging infrastructure component, the next question a board following its fiduciary duty will have to answer is: who will do the work? With a scope of work in hand, boards, with the assistance of a property manager, are positioned to bid out the work. The more bids the association can solicit, the better; the scope of work should be provided to contractors during the bid process, so they will all be bidding on the same work and the board can make a straightforward, ‘apples-to-apples’ comparison when it comes time to select a contractor. Boards that comply with their fidu- ciary duty will seek appropriate con- tractors for a given work scope. For instance, although the board might be friendly with a maintenance contractor that has an existing relationship with the association and has performed punch-list repairs for the association, that contractor might not have the necessary experience to replace a complex HVAC system or exterior cladding system. Although it is com- mon for boards and property man- agers to develop relationships with vendors, fiduciaries must be careful to not let those relationships cloud the decision making process in hiring a repair/replacement contractor, espe- cially if said contractor does not have the requisite experience in doing the subject type of work. In addition, although it might increase costs, boards should strongly consid- er hiring an architect or engineer to

tion. Rather, boards should instead be analyzing the following questions: • What scope of work is necessary to correct the aging infrastructure system? • Who will do the work? • How will the association pay for the work? Scope of Work Once it is apparent that a building system is no longer functioning prop- erly, the first question a board must answer is: What needs to be done to correct the issue? Can the system be repaired, or does it need to be replaced? Often, with complex systems such as mechanical/HVAC units, exterior

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perform Construction Administration Observations for more complicated projects. Having an Architect/Engineer hired by an association inspect and approve work performed by contractors increases the likelihood the work will be performed in strict accordance with the scope of work and in accordance with applicable code, manufacturer instal- lation guidelines (if any) and industry standards. How will the association pay for their work? The last consideration of a board following its fiduciary obligations will be: how to pay for the work? It is no surprise that certain repair or replace- ment work, particularly with respect to large, complex building systems, can be very expensive. Boards will CONT I NU E S ON PAGE 60

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Please join us for one of the largest networking events in the industry this year!

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*CAI-NJ advises that for training, marketing or other purposes, this event may be recorded, videotaped and/or photographed. By attending this event, the registrant(s) consents to the use of his/her image by CAI-NJ and agrees to waive any claim for the use of his/her image, including without limitation, the appropriation of his/her image for commercial purposes or the invasion of his or her privacy.

NJ’s “55+” Communities Have Come of Age

By Rich Wieland, Lake Ridge Homeowners Association

T his is not your great-grandmother’s idea of old age! Today’s senior communities are not sleepy “retire- ment villages”. They are homeowners’ associations designed for “active adults” who are enjoying far more than shuffleboard and bingo. What brought about this major shift in the way of life in New Jersey and across the nation? Self-governing HOAs originated during the Industrial Revolution when wealthy families wanted to escape the crowds, noise and pollution of American cities. Llewellyn Park in West Orange was the nation’s first planned com- munity in 1857, and its shared parkland and elected committee of managers made it New Jersey’s first HOA. However, for almost a century afterward, land planning and property value protection through common ownership and maintenance fees were limited to upper-income buy-

ers. The average lifespan was only 47 in 1900, and most people worked as long as they were able, retirement was only for the wealthy. “Old folks” often lived with their adult children or were relegated to “rest homes.” New Jersey was transformed in the post-World War II boom and HOAs proliferated after highway construction opened suburbs to housing developments. Desirable and inexpensive land in convenient locations became scarce. Cash-strapped towns encouraged construction of private neighborhoods that would provide their own services and facilities so municipal taxes would not rise sharply. Developers clustered middle-class houses, townhouses and condominiums on small plots with common green spaces. All those homes were marketed to young families – not seniors. The first HOA for active adults was built in the CONT I NU E S ON PAGE 26

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HML-4488 construction ad mech02.qxp_1/2 pg vertical 9/17/15 4:14 PM Page 1

55+... from page 24.

Arizona desert. Inspired by Florida trailer courts with pools, Sun City opened in 1960. It was branded “active” to attract people who could live independently and use recreation facilities in their “golden years.” Its opening weekend attracted 100,000 visitors.

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New Jersey developers took notice of Sun City’s sales success and designed “carefree lifestyle” commu- nities for seniors who wanted to stay in this region. The first to debut was Leisure Village, Lakewood, in 1963. Leisure World (now Rossmoor) in Monroe and Crestwood Village in Manchester opened in 1965. Soon many other age-restricted “lifestyle” developments arose around the state; most are smaller, with single-family detached houses. The senior enclaves were success- ful because medical advances had raised life expectancy to the 70s, and pensions and Social Security provid- ed income for the new life stage of

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retirement. Formerly close-knit families were scattering all over the nation. Some seniors realized the old neigh- borhood was full of new people and the old homestead no longer suited them. They were tempted by builders’ advertising for low-maintenance homes in attractive communities with amenities to enjoy with retirees who have similar interests. Numerous mature, adults-only villages were in existence when the Fair Housing Act passed in 1968, so its anti-discrimination language omitted age restrictions. The Housing for Older Americans Act of 1995 also allowed age limitations. Almost all communities now require one occupant of each household to be at least 55. Most people that age are still working, so the developments can no longer be called retirement havens. New Jersey has a few hundred 55+ HOAs, second only to Florida. Besides plenty of new construction, resale homes in senior villages have experienced high demand in 2021. However, the market for senior com- munities has not reached its full potential here in New Jersey. The Foundation for Community Association Research (an affiliate of the Community Associations Institute) reports that only 9% of New Jersey’s 55+ households are within an HOA. Nationwide, led by warm-weath- er states with sprawling senior develop- ments of thousands of homes, adult communities have attracted nearly 20% of that demographic group. As members of the huge Baby Boomer generation downsize their living quarters and transition to less work and more leisure time, New Jersey builders are trying to keep up. A prominent developer says he even

avoids using the word senior: “We’re trying to stimulate and play off of their desire to live longer, healthier, more energetic and vibrant lives”. The low-maintenance aspect of adult communities is shown by the fact that 86% of 55+ association homes in

New Jersey were built after 1970, compared to 39% of homes outside of an association that are occupied by people who are 55+. “Aging-in- place” modifications won’t be easy, because the median age of all own- er-occupied New Jersey housing stock CONT I NU E S ON PAGE 62

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