CAI-NJ July 2022

July 2022 Community Trends

®

B U D G E T I N G

PeskyMonkey/istock/Getty Images Plus

In This Issue

• It’s Gonna Blow!! Staying Ahead of Items that Can BlowYour Budget • How to Plan a Successful Capital Improvement Project — Best Practices for a Strong Start • CommunityAssociation Best Practices — Financials ....and more

The Community Associations Institute New Jersey chapter would like to thank its 2022 Ultimate Partners below. For more information on our sponsorships, please contact CAI-NJ at 609-588-0030 or info@cainj.org.

T hank You Fo r You r Suppo r t !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS 14 It’s Gonna Blow!! Staying Ahead of Items that Can Blow Your Budget By Michael Mezzo, CPA WilkinGuttenplan 26 How to Plan a Successful Capital Improvement Project — Best Practices for a Strong Start By Eric Lecky SageWater 34 Community Association Best Practices — Financials By Russell Munz, CMCA Community Financials 44 Management Trends: Budget Process 101 By Michelle Williams, CMCA, AMS Taylor Management Company, AAMC, AMO 14 26

EXTRAS President’s Corner Looking Ahead

5 6 7 8

CAI-NJ Upcoming Events

34

Legislative Update

CA-PAC “Keys to the Doors” Campaign

11 13 13 17

Chapter Trends

F.A.S.T. CAI-NJ Olympics Information

Beach Party Registration 2022 Webinar Wednesdays 25 2022 CAI-NJ Conference & Expo Attendee Registration 33 Pre-Conference Networking Reception — Save the Date 37 F.A.S.T. Kickball Tournament Information 39 Homeowner Leader Best Practices Roundtable Discussion 41 CAI-NJ & CAI-PA Joint Networking Event Recap & Photos 42 45 Ultimate Night Out — Jersey Blueclaws Game Registration 46 Community Leadership Summit Registration 47 Board Leadership Development Workshop Registration 49 New Members 50 CAI Membership Application 51 CA-PAC 9 and Nosh — Save the Date 55 2022 Ultimate Partner Listings 64 CMCA Exam Study Group – Coffee & Cram Information

44

iStock/Getty Images Plus

Register Now! See page 33 for the 2022 CAI-NJ Conference & Expo Attendee Registration Form!

Thursday, October 20, 2022 at The Event Center @IPA, Freehold, NJ

3

J U L Y 2 0 2 2

CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

PRESIDENT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

VICE PRESIDENT CHRISTOPHER NICOSIA, CMCA, AMS, PCAM PRIME MANAGEMENT, INC., AAMC

PRESIDENT ELECT TONY NARDONE, MBA, PCAM CORNER PROPERTY MANAGEMENT, LLC, AAMC

TREASURER STEVEN MLENAK, ESQ. GREENBAUM, ROWE, SMITH & DAVIS, LLP

SECRETARY BENJAMIN BASCH, EBP AMERICAN POOL ENTERPRISES

BOARD MEMBERS

Mary Barrett, Esq. Stark & Stark Attorneys at Law Business Partner Ryan Fleming, EBP JGS Insurance, A Baldwin Risk Partner

Kristina Munson, CMCA, AMS, PCAM RCP Management Company, AAMC, AMO Community Association Manager Carol Nickerson, CMCA FirstService Residential, AAMC Community Association Manager Robert Travis, CIRMS Long Beach Commons Condominium Association Homeowner Leader

Business Partner Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Loren Lightman, Esq. Hill Wallack LLP

4

J U L Y 2 0 2 2

PRESIDENT’S CORNER Jeffrey Logan 2022 CAI-NJ PRESIDENT GUARDIAN SERVICE INDUSTRIES, INC.

CAI-NJ TEAM

CAI Honors Our Fallen Heroes

O n Sunday, June 5, 2022, Community Associations Institute New Jersey chapter came together to honor our fallen heroes that gave their lives for us on September 11, 2011. Team CAI-NJ consisted of Fred Hodge, Jr. & Steve Hodge of Clearview Washing, LLC, David Velasco of JGS Insurance, a Baldwin Risk Partner, Megan Elgard of The Falcon Group – Engineering, Architecture & Reserve Specialists and her boyfriend, Khiry Brazil, as well as Robin Surgent and Brooke Stoppiello-Nevins of CAI-NJ. Our team took part in the Tower Climb NYC which supports the Tunnel to Towers Foundation. Since 2015, the Tunnel to Towers Foundation has held the Tunnel to Towers Tower Climb NYC in the One World Observatory. One thousand participants climb 104 stories which symboliz es strength, hope, and the resiliency of the American spirit. The event celebrates the life and sacrifice of all 9/11 heroes, including FDNY firefighter Stephen Siller and FDNY Captain Billy Burke. I can’t even begin to explain the emotions that went through me while I climbed those stairs. There were times I wanted to stop but knowing that thousands of people sacrificed and lost their lives to save so many is what kept pushing me through. What also kept pushing me through was the encouragement from our CAI team members. We committed to this from the beginning, and we all were determined to accomplish it. We woke up at 2:30 AM to begin the climb at 5:45 AM. This is why I love our chapter and love our members! Not only did we give back to an amazing foun dation which supports America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children, but we did it TOGETHER! I will never forget this experience and look forward to doing it again next year! CAI is all about giving back! Thank you, Fred Hodge, for organizing our team and taking the initiative to create this experience.

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 PROGRAM COORDINATOR JENNIFER@CAINJ.ORG GAIL BONUS ADMINISTRATIVE ASSISTANT GAIL@CAINJ.ORG

Contact CAI-NJ

ADDRESS CAI-NJ

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

CONT I NU E S ON PAGE 62

CAI-NJ on Social Media

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

@cainewjersey

CAI-NJ

5

J U L Y 2 0 2 2

LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

“I’m ready for barbecues and picnics; reading books in my hammock; lemon-berry iced tea and a rocking chair on the front porch, watch ing the sun set with friends; stargazing while eating s’mores in the backyard. Oh, summer... bring it on!” — Oprah Winfrey Happy Summer! Oprah described it perfectly. I hope you are enjoying this delightful season, taking the time to get away from your daily crazy routine and recharging. For your personal health, it’s the perfect opportunity to take a break, whether it be on a special vacation or a staycation. Vacation to me is doing whatever I want or nothing at all but having all day to do it. Make some time to refresh and care for yourself. It’s what I refer to as “me time”! While many of us are beginning to plan for the budget season, try to remember to not only budget for your finances but also your life, taking the time for family and yourself. Plan ahead. What can you look forward to at the begin ning of the summer? • I am excited to share that our booths are sold out for the annual New Jersey chapter Conference and Expo. Exhibitors, I hope that you will enjoy incorporating this year’s theme, Cultivating Community in The Garden State, Embracing all that New Jersey Represents. Have some fun designing your booth and plan on some special give aways that attendees will appreciate and remember you by. To assist you with this, the Business Partner Committee will be hosting a virtual session, Expo Insights, on Thursday July 21st, offering best strategies for a productive trade show experience. For more information, please visit, https://www.cai-nj.org/event-4874854. • July 13th, the F.A.S.T. Committee will be hosting the 2022 CAI-NJ Olympics at Thompson Park in Monroe Township, to benefit the Make-A-Wish New Jersey.

We welcome both team participants and spectators. Please join us for this worthy cause. The chapter will be donating 100 % of the proceeds to this charity. Please visit, https://www.cai-nj.org/event-4722883 for fur ther information and to register. • July 14th, the chapter will be hosting the next in-person Coffee and Cram session at the CAI-NJ Headquarters in Freehold. All manager members that are planning to take the CMCA exam are welcomed to attend this session, free of charge, to assist them to best prepare. For further information and to register, please visit, https://www.cai-nj.org/event-4831312. • July 20th, the chapter will host the Community Association Leadership Summit, at the Versailles Ballroom at the Ramada in Toms River. This session is free for member managers and homeowner leaders. Join us for an inter active panel discussion with industry leaders, as they present on the hot topics that effect community associa tion living. Managers will receive 2 CECs for attending this program. For further information and to register, visit, https://www.cai-nj.org/event-4789406. • July 27th, the chapter will be hosting the next Wednesday Webinar. PuroClean of Hoboken, Jersey City, Fort Lee, will discuss Hurricane Preparation and Minimizing Damage. Managers will receive 1 CEU credit for attending and this session is free for members to attend. For further information and to register, visit, https://www.cai-nj.org/event-4841992. • And finally, the annual tradition of the CAI-NJ Beach Party. Register now for the event at Martell’s Tiki Bar in Point Pleasant on September 15th. This beloved end of the summer event is a must attend for the industry with annual attendance typically near 600-700 attendees. We can’t wait to wrap up the summer with you there! Registration can be found on page 17. CONT I NU E S ON PAGE 60

6

J U L Y 2 0 2 2

CALENDAR 2022 Events & Education

JULY

OCTOBER

13 14

5 6 19 20

F.A.S.T. Olympics Thompson Park, Monroe Twp.

Wednesday Webinar Virtual

Coffee & Cram - CMCA Study Group CAI-NJ Office, Freehold

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

20 27

Community Association Leadership Summit Versailles Ballroom at the Ramada, Toms River

Pre-Conference Networking Reception The Event Center @iPA, Freehold

Wednesday Webinar Virtual

Annual Conference & Expo The Event Center @iPA, Freehold

AUGUST Board Leadership Development Workshop CAI-NJ Office, Freehold

NOVEMBER Wednesday Webinar Virtual 9 DECEMBER Wednesday Webinar Virtual

3-4 18

ULTIMATE Night Out Jersey Shore BlueClaws Stadium, Lakewood

7 8 8

SEPTEMBER

Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge

7 15 20 21 29

Business Partner Essentials BELFOR Property Restoration Office, Piscataway

Winter Break Party Grand Marquis, Old Bridge

Beach Party Martell’s Tiki Bar, Pt. Pleasant

Homeowner Leader Best Practices Roundtable Regency at Monroe, Monroe Twp.

Wednesday Webinar Virtual

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

F.A.S.T. Kickball Tournament Mercer County Park, Princeton Junction

LEGISLATIVE UPDATE

MATTHEW Z. EARLE, ESQ. KATES, NUSSMAN, ELLIS, FARHI & EARLE, LLP LEGISLATIVE ACTION COMMITTEE CHAIR

A fter the Champlain Towers tragedy in Surfside, Florida, state and local governments throughout the country began contemplating legislation that would prevent such a tragedy from re-occurring. In addition, CAI formed a national task force to develop building safety and structural integrity legislative models. Our Legislative Action Committee (LAC) also formed a building safety and structur al integrity task force chaired by Ed San George. Lawmakers started moving on legislation right away. Last session, former Senate President Sweeney introduced an inspection bill that was not passed. Jersey City passed local ordinance 21-054 requiring certain structural inspections, and other municipalities are contemplating ordinances as well. Senator Troy Singleton, Chair of the Senate Housing Committee, approached the LAC and asked that we draft comprehensive, model, building safety legislation. Senator Singleton accepted the legislation prepared by the LAC, consulted with other stakeholders, and, on May 26, 2022, introduced bill S2760. We are currently in discussions with members of the Assembly to identify a Sponsor to introduce the legislation in that chamber as well. We believe that the bill, which includes construction phase inspections, post construction inspections, and reserve requirements, will be key in ensuring both the safety of Common Interest Community (CIC) residents and that needed structural repairs can be funded. Key components of the bill include the following items: Amendments to Uniform Construction Code Act (N.J.S.A. 52:27D-119, et seq.) Covered Buildings • Structural inspection requirements during and upon completion of new and existing Use Groups R-1 and R-2 residential buildings having load bearing concrete, masonry, steel, hybrid structure including but not limited to heavy timber, and buildings with podium decks.

New and Existing Building Inspection Requirements

• All covered newly constructed buildings shall have their first initial structural inspection within the earlier of 15 years after issuance of a certificate of occupancy or 60 days after observable damage to the load bearing system. • For existing buildings, the initial structural inspection shall occur with two (2) years of the effective date of the leg islation. “We believe that the bill...will be key in ensuring both the safety of Common Interest Community (CIC) residents and that needed structural repairs can be funded.” • Inspections shall be performed under direction of a NJ licensed professional engineer qualified in structural engineering (the construction structural inspector) who may be assisted by other licensed professional, includ ing geotechnical and civil engineering. The inspector may also be a NJ-DCA Bureau of Housing Inspector employee who is also an engineer licensed in NJ. • Structural engineer shall determine a reasonable period of time within which next inspection must take place for the covered building, but in no event will it be more than 10 years after the initial inspection during the first 20 years and more than five (5) years if the covered building is more than 20 years old. • Written Reports and Required Corrective Maintenance, Repair or Replacement

CONT I NU E S ON PAGE 58

8

J U L Y 2 0 2 2

2022 CAI-NJ COMMITTEES

AWARDS COMMITTEE Mary Visco — Chair Annie Gonzales — Vice Chair Lindsay Bartlett-Cupples, EBP Neil Betoff

EDITORIAL COMMITTEE Carol Shenk, EBP — Chair Nicole Martone, CMCA, AMS, PCAM — Vice Chair Robert Arnone, CMCA, AMS Don Cabrera, CMCA Neeraj Chander

HOMEOWNER LEADERS COMMITTEE Vonetta Hawkins — Chair Howard Staum — Vice Chair Bruce Blum Roslyn Brodsky Barbara Finn Charles Fredericks Lois Gerber Salvatore Gurriero

MEMBERSHIP COMMITTEE Nichole Gist — Chair Tara Baldwin, CPA — Vice Chair Lysa Bergenfeld, Esq. Megan Elgard, EBP Nikolaos Haralambopolous, CPA Kathleen Radler Brent Rivenburgh, EBP Stephen Roderick, EBP Nikki Schillaci, EBP Ken Shah Amy Shorter, EBP Rob Wurst Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM

Jeanine Clark Drew Cowley Kim Dempsey Rebecca Gavin Craig Gotilla

David Dockery, Esq. Jonathan Katz, Esq. Michael Mezzo, CPA, MBA Steven Morris, PE, RS Casey Sky Noon Drew Podolski, Esq. Robert Roop, PE Michael Ryan Larry Thomas, PCAM Board Liaisons: Mary Barrett, Esq. Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Jessica Baker, Esq. — Chair Steven Kuhnert — Vice Chair Jonathan Cairone Chelsea Donnigan Eric Eggert, CIRMS Shelby Evans, CPA, CMCA Jeffrey Logan Staff Liaison:

Keira Hauck Richard Lans Cheryl Palent Ernie Standard Danita Susi Board Liaisons: Charles Lavine Robert Travis, CIRMS

Dan Jazwinski Lila Khiry Cirillo Christine Maldonado

Liza Mandelbaum Kari Prout, CMCA Eileen Szelewicki, CMCA Sandi Wiktor Board Liaisons: Jeffrey Logan Tony Nardone, MBA, PCAM Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE David Velasco — Chair Gregory Vinogradsky, Esq., EBP — Vice Chair

Staff Liaison: Robin Surgent NETWORKING EVENTS COMMITTEE Daniel Reilly — Chair Jessica Marvel, EBP — Vice Chair Donna Belkot Dean Catanzarite Diane Cody, CMCA, PCAM Lawrence Cullari Catherine Daly Frank Fasolo Gary Gleitman Carmen Reino Kasey Ronan David Ross Rachel Rutman Sal Sciallo Nicole Skaro, CMCA, EBP Melissa Volet, Esq. Board Liaisons: Charles Lavine Carol Nickerson, CMCA Staff Liaison: Jaclyn Oskierko WOMEN’S LEADERSHIP COMMITTEE Martinia Heath, CMCA, AMS — Chair Lirelle Klein — Vice Chair Amani Abdellah Jamie Cullen Ellen Goodman Cara Landolfi Kristin Marzarella Gail McDermid Jennifer Nevins, CMCA, EBP Jennifer O’Brien Cheryl Rhine, CIC, CIRMS, EBP Christina Sanclimenti Freedom Hildreth Richard Lang, EBP Laura McIntyre, EBP Debbie Pasquariello, CIC, CIRMS, EBP

Staff Liaisons: Jaclyn Oskierko Robin Surgent LEGISLATIVE ACTION COMMITTEE (LAC)/PAC Matthew Z. Earle, Esq. — Chair Edward San George, PCAM — Vice Chair Jackie Thermidor, CMCA, AMS, PCAM — Secretary Joseph Chorba, CPA — Treasurer Elizabeth Comando, CMCA, PCAM — PAC President Andrew Podolski, Esq. — Vice President James Rademacher, EBP — PAC Committee Jennifer Alexander, Esq. Roslyn Brodsky Barbara Drummond, CMCA, PCAM

Thomas Asciolla, EBP Theresa Beckett, EBP Jordan Burkhalter Jennifer Carr George Caso Martinez Carrie Fusella Michael Kaminski Terry Kessler, Esq., EBP Toni Licciardi Michael Luzzi, EBP Kim Manicone Donna Meyer, EBP Darric Mitchell, EBP Ben Mitrou Jason Sponzilli Perry Stavridis Jessica Vail, EBP Michael Vennitti, EBP Board Liaisons: Benjamin Basch, EBP Ryan Fleming, EBP

Kristi Evans Jessica Long Will Meola Matt Rahn

Jose Romero Dharmi Shah Peter Shine, EBP Erica Taras

George Greatrex, Esq. Vincent Hager, CIRMS Mitchell Frumkin, RS Karyn Kennedy-Branco, Esq. J. David Ramsey, Esq. Lisa Rayca, CMCA, AMS John Reichart Alexander Scheffer, CMCA Carol Shenk Board Liaisons: Richard Milder Cheryl Palent

Lauren Vadenais, EBP Kristy Winchock, EBP

Board Liaisons: Benjamin Basch Kristina Munson, CMCA, AMS, PCAM Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent GOLF COMMITTEE

Steven Mlenak, Esq. Robert Travis, CIRMS Staff Liaisons: Angela Kavanaugh Robin Surgent

Ross Rutman, EBP — Chair Fred Hodge — Vice Chair Chris Belkot

Staff Liaisons: Jaclyn Oskierko Robin Surgent CONFERENCE & EXPO COMMITTEE Joe Bonafede — Chair Saher Gouda, EBP — Vice Chair Jay Burak Nicole Camarota, CMCA AMS Angela Celeste Ellen Comiski, CMCA

Harold Berlowe Robert DeSantis Keith Giliberti, RS Sal Iozzia Hank Johns, EBP Lisa Komitor Victoria Lazaro Cathy Mango, EBP Karl Meth, Esq. Paul Migliore

MANAGER COMMITTEE Vincent Rapolla, AMS — Chair Mary Barone, CMCA, AMS, PCAM — Vice Chair Michael Flippin, CMCA, AMS, PCAM Ashley Gray, CMCA Chuck Graziano, PCAM Anthony Nazzaro Bob Rogers, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA, AMS Board Liaisons: Kristina Munson, CMCA, AMS, PCAM Carol Nickerson, CMCA

John Echelmeir Michelle Gitlen Shelia Green-Barnhill, CMCA Jessica Kizmann, CPA Scott Palmieri Priscilla Saint-Laurent Holly Teufel Board Liaisons: Ryan Fleming, EBP Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko

Wayne Napolitano Mike Polulak, Esq. Lisa Rayca David Salter David Shahrabani, EBP Jasmin Shelton Ryan Weiner Charles Witczak Paul Wojciechowski Board Liaisons: Steven Mlenak, Esq. Tony Nardone, MBA, PCAM Staff Liaison: Jaclyn Oskierko

Jaime Schneider Mariaellen Varelis Anne Yannarella, EBP Katie Zsamba Jill Zulin Board Liaisons: Mary Barrett, Esq. Kristina Munson, CMCA, AMS, PCAM

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Staff Liaisons: Jaclyn Oskierko Robin Surgent

9

J U L Y 2 0 2 2

CAI-NJ 2022 PARTNERS

FWH Associates, P.A. GAF Hill Wallack LLP Kipcon Inc. McGovern Legal Services, LLC mem property management, co, inc, PS&S, LLC PuroClean of Hoboken, Jersey City, Fort Lee Rezkom Enterprises, Inc. Taylor Management Company, AAMC, AMO

Alliance Association Bank 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. The Falcon Group - Engineering, Architecture & Reserve Specialists

Technocality, Inc. WilkinGuttenplan

Accent Group Access Property Management Adamas Building Services All County Exteriors Amco Pest Solutions, Inc. Anchor Pest Control Becht Engineering BT, Inc. Buckalew Frizzell & Crevina LLP Capital One Bank N.A. New Jersey

FirstService Residential, AAMC Greenbaum, Rowe, Smith & Davis, LLP Griffin Alexander, P.C. Guardian Service Industries, Inc. Innovative Pressure Cleaning, LLC The Jesan Companies JGS Insurance, a Baldwin Risk Partner KPI2 Enterprises, Inc.

O & S Associates, Inc. Pacific Western Bank Pardini R. Construction Corporation PeopleFirst Property & Casualty Services Popular Association Banking Preferred Community Management Services, Inc., AAMC Quality 1st Contracting, Inc. Rainbow - G & J Painting, LLC Regal Restoration USA Republic Services of New Jersey, LLC SageWater Servpro of Howell/Wall Stark & Stark Attorneys at Law 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. National Cooperative Bank One Call Roofing & Siding

Clearview Washing, LLC Cowleys Pest Services Curcio Mirzaian Sirot, LLC Cutolo Barros, LLC

Dior Construction, Roofing, and Siding Environmental Designers Irrigation, Inc.

Renda Roads, Inc. South Shore Construction, LLC STAR Building Services Two Men Property Services Group, Inc Wilkin Management Group, Inc.

Accurate Reconstruction AR Management Company Design East, Inc. Eosso Brothers Paving Felsen Insurance Services, Inc.

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

Lawley Services, Inc. MyPropertyBilling.com Radom & Wetter

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

CHAPTER TRENDS

mem property management, co., inc. Office Expansion at Carnegie Center in Princeton

• 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. • 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. The expanded offices in Princeton will allow mem prop erty management to better service its homeowners associ ations, condominium associations, townhomes and active adult communities. “The investment in expanded Class A office space in Princeton demonstrates our continued commitment to pro viding our valued customers in central New Jersey with out standing customer service and support,” says Laderman. n Chapter Trends Editorial Guidelines

mem property management is proud to announce the expan sion of its offices in Princeton New Jersey with the securing

of a significant increase of Class A office space at 103 Carnegie Center, Suite #200, Princeton, New Jersey Exceptional growth over the past several years has caused mem property management to grow beyond its current location to require additional space for its property management team. “As of May 1, 2022, our New Jersey property management team will be fully operational at the new location and connected to our regional offices and Ridgefield Park headquarters with a state-of-the-art Voice over IP system,” says founder and CEO Martin Laderman, “in addition, we are very excited to announce that Vice President Matthew Laderman will be in our new Princeton offices to provide additional management support.”

OLYMPICS IS BACK!!

100% of Proceeds Donated to

WEDNESDAY, JULY 13TH

Thompson Park 1701 Perrineville Rd., Monroe Twp. Limited to 30 Teams!

Register as a spectator to come watch the festivities! https://www.cai-nj.org/event-4722883

13

J U L Y 2 0 2 2

Staying Ahead of Items that Can Blow Your Budget By Michael Mezzo, CPA, WilkinGuttenplan

VectorInspiration/iStock / Getty Images Plus

hether you love or hate it, preparing a realistic budget is one of the keystones to financial success for condominium and homeowner associations.

nance, snow fund, etc.) investment income to each respective fund. Without this allocation, the investment income will be included as operating revenue and will overstate the income to be earned in the operating fund. Sales Tax: Sales tax is another budget buster than is often over looked and can easily be addressed. It is important to remember to review all vendor proposals for sales tax. Doing so will ensure that the full expense is being captured within the budget. Although this may not seem significant for smaller contracts, it can add up to a significant amount when considering larger contracts such as landscaping, maintenance contracts, snow removal, etc. Snow and Ice Clearing: Snow clearing is notorious for consistently being one of the more difficult line items to budget for, and rightfully so! CONT I NU E S ON PAGE 16

This has never been truer given the current environment of inflation and ever-rising costs. These factors will definitely pose a few additional challenges while tackling your cur rent year’s budget. However, these tips and tricks will help ensure a successful budget season for your community! Investment Income: Although this may seem like a straightforward line item, there is one key item to remember when budgeting for invest ment income: “Allocating it!” Many associations have a large portion of their investments held in the replacement fund. This makes sense as larger sums of monies are being accumulated in the replacement fund for future capital improvements. As such, it is important to include a line item within your budget to allocate any replacement fund (as well as deferred mainte

14

J U L Y 2 0 2 2

IT’S GONNA BLOW... from page 14.

rences, as well as the relative severity of each event. As no one can predict the future, the best way of doing this is to use historical trends. A quick search on the internet will provide you with detailed historical snowfall information for your county. This information can then be used to project the anticipated snow events for the upcoming year. When it comes to winter weather line items, there is always going to be a level of uncertainty. However, focus ing on the information that is known can help HOAs make informed estimates. Utilities: Similar to snowfall, utility usage can be a difficult line item to budget for, as it is also dependent on weather patterns. Water for irrigation systems, gas for heating, and electricity for HVAC units all fluctuate based on weather patterns Two main approaches that are commonly used when it comes to estimating these costs. The first approach is historical trend budgeting. This approach requires a budget prepar er to gather information on actual costs incurred in recent years. Typically, looking back two to three years provides sufficient data. Once this information is gathered, the cur CONT I NU E S ON PAGE 18

Weather patterns are extremely difficult to predict. Even the best weather professionals get it wrong. This uncertainty can be a major thorn in the side of any budget preparer. However, when dealing with line items such as this, we always recommend focusing on what is known, rather than the unknown. This starts with the snow contract itself. Most snow removal contracts consist of “pricing brack ets.” For example, rather than provide a flat cost to provide snow removal services for a season, vendors will provide “per occurrence” pricing. This pricing will be broken out by the severity of the storm (usually in inches). The number of inches that fall will then determine the price to remove snow for that specific snowfall. One thing that is important to check is whether ice treatments are included in the “per inch” removal cost. If not, it is important to account for these in your budget as well. Once all of the cost components have been identified, the next step is to anticipate the number of snowfall occur

Extraordinary Services. Exceptional People. Preferred Community Management Services

PCMS

• 24 Hour Emergency Service • Work Order Tracking • Vendor Management • Leadership Guidance • Training For Board Members

Our Services:

FINANCIAL MANAGEMENT

We Customize A Management Program Tailored To Your Community

PROPERTY MANAGEMENT

35 Clyde Road Ste 102 Somerset, NJ 08873 732.873.1258

Over 30 Years Experience

SITE MANAGEMENT

2430 Butler Street Ste 164 Easton, PA 18402 484.291.1330

Glen A. Masullo, CMCA, PCAM

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

16

J U L Y 2 0 2 2

Sponsored By

MARTELL’S TIKI BAR | POINT PLEASANT, NJ THURSDAY, SEPTEMBER15, 2022 | 4:00 PM– 8:00PM ***ALL ATTENDEESMUST BE 21+WITHAVALID ID

Name/Designation 1: ________________________________________________ Company Name: ____________________________________________________ Phone: _____________________________________________________________ Email: ______________________________________________________________ Name Company (if different from above) 2. __________________________________________________________________ 3. __________________________________________________________________ 4. __________________________________________________________________ 5. __________________________________________________________________ 6. __________________________________________________________________ 7. __________________________________________________________________ 8. __________________________________________________________________ 9. __________________________________________________________________ 10._________________________________________________________________ TOTAL: $_________________ (see pricing chart) Before 8/25 8/25 - 9/7 9/8 - ONSITE CAI-NJMembers: $90 $100 $125 Non-Members: $148 $160 $185 Note: Ultimate Partners receive 4 tickets. Elite Partners receive 2 tickets. Premier Partners receive 1 ticket.

Payment Methods: 1.) Payby check, payable toCAI-NJ. Mail completed formandpayment to: CAI-NJ Attn: 2022 Beach Party 500 Harding Road, Freehold, NJ 07728 2.) Pay by credit card. Please fax to (609) 588-0040 Cardholder Name: _________________________________________________ Card Number:_____________________________________________________ Exp. Date:_____________________Security Code:_______________________ Address: ___________________________________________________________ City, State, Zip: ______________________________________________________ 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. By registering for a CAI-NJ event, the registrant acknowledges that they are responsible to pay the full registration fee at the time of registration. Registrations will not be processed until all previous outstanding balances are paid in full. Cancellations must be made by September 8th, 2022 for a full refund to be provided, swaps can be made at any time.

PLEASE NOTE: By registering for this CAI-NJ event, you are agreeing to our COVID Release Waiver.

Send Registrations to Events@cainj.org or Fax 609-588-0040

*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.

IT’S GONNA BLOW... from page 16.

these costs are identified, the budget preparer must then research what the average usage is per home, unit, acre, etc., and calculate an estimate of the current year’s expenses. As you can see, this approach requires a bit more research and as such, tends to be less common. In recent years, utility rates have not seen significant price increases, which has allowed the historical trend approach to be very effective. However, it is yet to be known whether current market condi tions will lead to any significant pric ing increases. As such, this approach may become more common in the years to come. So far, we have discussed some “best practices” on budgeting for specific line items within your bud get. However, whenever preparing a budget, you must always have a

rent year’s budget can then be calcu lated based on an average of prior year actuals. If any trends are noted in prior years, such as a consistent 2-3% increase in costs per year, they can then be factored into the current year’s budget as well. The second approach is much more granular and less common than the historical trend budgeting approach. This approach requires some research. The first step is to identify the specific utility cost rates for your township. Your specific utility provider for water, electric, and gas will usually have price rates posted on their websites. If you are unable to locate this informa tion, you could also obtain it from your most recent billing statement. Once

two-pronged approach. We have dis cussed the first prong above, address ing the specific costs that you expect to incur in the upcoming year. The second prong is equally important and requires an analysis of the overall financial health of the association. The best starting point for this practice is your most recently audited finan cial statements. The audited financial statements will indicate whether your association is in a cumulative surplus or deficit position. Based on your find ings, it may be necessary to include a “deficit recovery” or “surplus carryfor ward” within your budget. Deficit Recovery: For those associations that find them selves in a cumulative deficit position, it is imperative to use the budget process to eliminate that deficit. The best way to think of a budgeted deficit reduction is to view it as a “paper” expense. You will simply include a deficit recovery as a line item in the CONT I NU E S ON PAGE 56 “The best way to think of a budgeted deficit reduction is to view it as a ‘paper’ expense.”

18

J U L Y 2 0 2 2

S PONSORED BY

THANK YOU SPONSORS!

SUPER SPONSOR JGS INSURANCE, A BALDWIN RISK PARTNER

CIGAR SPONSOR THE JESAN COMPANIES

CLUB CLEANING SPONSOR SERVPRO OF EATONTOWN/LONG BRANCH HOLE SITTER SPONSORS AMCO PEST SOLUTIONS, INC. CIT THE FALCON GROUP - ENGINEERING, ARCHITECTURE & RESERVE SPECIALISTS MORRIS ENGINEERING, LLC NATIONAL COOPERATIVE BANK SAGEWATER USI INSURANCE SERVICES DOOR PRIZE SPONSORS ASSOCIA COMMUNITY MANAGEMENT CORPORATION, AAMC BROWN & BROWN OF LEHIGH VALLEY CLEARVIEWWASHING, LLC GREENBAUM, ROWE, SMITH & DAVIS LLP SERVPRO OF FREEHOLD, MIDDLETOWN, SO. JERSEY CITY. BAYONNE WITCZAK ENGINEERING

LUNCH SPONSOR NATIONAL CONTRACTORS, INC.

GOLF CART SPONSOR BELFOR PROPERTY RESTORATION HALFWAY HOUSE SPONSOR EOSSO BROTHERS PAVING CLOSEST TO THE PIN CONTEST SAVATREE

DINNER SPONSOR PARDINI R. CONSTRUCTION CORPORATION COCKTAIL HOUR SPONSOR DENALI PROPERTY MANAGEMENT, INC. GOLF BALL SPONSORS THE JESAN COMPANIES PEOPLEFIRST PROPERTY & CASUALTY SERVICES STARK & STARK ATTORNEYS AT LAW TECHNOCALITY, INC. PRACTICE GREEN SPONSOR ASSOCIA COMMUNITY MANAGEMENT CORPORATION, AAMC

LONGEST DRIVE CONTEST FWH ASSOCIATES, P.A.

STRAIGHTEST DRIVE CONTEST MORRIS ENGINEERING, LLC LOWEST TEAM SCORE CONTEST SNOWSCAPES

HOLE IN ONE CONTEST FIRST ONSITE

Tuesday, June 14, 2022 Forsgate Country Club | 375 Forsgate Drive | Monroe Twp., NJ

2022 CAI-NJ GOLF COMMITTEE CHAIR ROSS RUTMAN VICE CHAIR FRED HODGE, JR. CHRIS BELKOT

HAROLD BERLOWE ROBERT DESANTIS KEITH GILIBERTI, RS SAL IOZZIA HANK JOHNS LISA KOMITOR VICTORIA LAZARO CATHY MANGO KARL METH, ESQ. PAUL MIGLIORE

WAYNE NAPOLITANO MIKE POLULAK, ESQ. DAVID SHAHRABANI JASMIN SHELTON RYAN WEINER CHARLES WITCZAK PAUL WOJCIECHOWSKI BOARD LIAISONS: TONY NARDONE, MBA, PCAM STEVEN MLENAK, ESQ. STAFF LIAISON: JACLYN OSKIERKO

WEBINAR WEDNESDAYS

LIVE WEBINAR | SELECT WEDNESDAYS | 12:00 PM - 1:00 PM

Educational Webinars on the Following Upcoming Dates: July 27, Sept. 21, Oct. 5, Nov. 9, and Dec. 7 Featuring Our 2022 Ultimate Partners:

Alliance Association Bank Ansell Grimm & Aaron, PC Associa Community Management Corp., AAMC Becker BELFOR Property Restoration Brown & Brown of Lehigh Valley C&L Services Pavement Maintenance Corner Property Management, LLC, AAMC Denali Property Management, Inc. The Falcon Group - Engineering, Architecture & Reserve Specialists FWH Associates, P.A.

GAF Hill Wallack LLP Kipcon Inc. McGovern Legal Services, LLC mem property management, co., inc, PuroClean of Hoboken, Jersey City, Fort Lee PS&S, LLC Rezkom Enterprises, Inc. Taylor Management Company, AAMC, AMO

Technocality, Inc. WilkinGuttenplan

Managers will receive 1 CEU Credit for attending! *- Must attend entire seminar to receive credit. Visit www.cainj.org/wednesday-webinars for details & to register!

We’ve got you covered! SPECIALIZING IN CONDOMINIUM AND TOWN HOME COMMUNITIES... gutters • Leaders • gutter guards CALL TOLL-FREE 877-833-8844 Fax: 732-833-8008 E-mail: njguttermaster@optonline.net FRIENDS & MEMBERS OF:

NJ LIC. # 13VH02643700

WWW.NJGUTTERMASTER.COM

25

J U L Y 2 0 2 2

How to Plan a Successful CAPITAL IMPROVEMENT PROJECT Best Practices for a Strong Start By Eric Lecky, SageWater

How to Know When it’s Time Chances are good that you will know when a building issue in your community requires action. If you have any doubts, look to the two best sources for confirmation. Homeowners. They will frequently discuss issues with and communi cate their concerns or frustration to management, board members, and their fellow homeowners. Increasingly, they post their displeasures in online community forums. Your building. Aged and faulty building components can cause you to shut down systems or restrict building and amenity access to do repairs. This can cause you to face higher insurance rates due to increased claims, and incur more costs for losses, damages, floods, etc. Experts can conduct tests and inspections to determine an issue’s severity or confirm when a building com ponent has reached the end of its useful life. Clearly, work required to remedy an active safety risk, such as loose balcony railings or falling concrete, will require imme diate attention. Outside of that, the general rule of thumb is: replace a system when the annual cost of repairs exceeds the annual cost to replace it altogether. Setting Up for Success: Seven Phases of Pre-Construction Benjamin Franklin once said that by failing to prepare, you are preparing to fail. While Ben never managed a community association, his wisdom remains relevant. “Replace a system when the annual cost of repairs exceeds the annual cost to replace it altogether.” R oofs leak. Pipes age. Cement facades spall. It’s inevitable for every community. How you approach your capital improvement projects makes all the difference in minimizing risks and maximizing ROI —crucial considerations for helping to protect and enhance homeowner value and quality of life. So, where do you start? How do you choose between competing priorities? How do you keep homeowners happy? And how can you pay for it all? To help answer these questions and more, it is vital to use a disciplined, step-by-step process for planning and launching a capital improvement project.

Common Capital Improvement Projects REPLACING: • Windows • Roof • Elevator • Plumbing System UPGRADING: • Electrical System • Lighting • Building Façade • Pool • Fire/alarm/ suppression system • HVAC equipment • Security system • Lobby/ common areas

CONT I NU E S ON PAGE 28

Gustavo Muñoz Soriano/ iStock / Getty Images Plus

26

J U L Y 2 0 2 2

DIFFERENT. TOGETHER. mem property management www.memproperty.com - 201.798.1080 New Jersey's premier property management company elevating the lifestyle of residents and homeowners.

CAPITAL IMPROVEMENT... from page 26.

• Educate the community about the need for, and benefits of, the project. • Build confidence in your decisions by detailing why this project and why now. • Show evidence of structural failure (i.e., pictures, video, tours). • Lay out your process and timeline regarding project management, funding, and contractor selection. • Schedule periodic information sessions and reinforce everything through your community newsletter, emails, and social channels. As soon as you can, explain how building access and routines may be disrupted. Use paper notices and in-person meetings as heavily as email and video conference calls. For example, post notices throughout the community 30 days before any phase of work begins. If crews will enter homeowner units, post detailed schedules on their doors about what to expect and update the notices as work is completed or delayed.

Pre-construction efforts can make or break a project’s success. To calibrate your expectations, keep in mind that this process usually takes 30 to 40 weeks and is essential to properly ensure the success of your upcoming project. Your pre-construction work will evolve across seven major phases: Phase 1: Plan and Roll Out Community Communications While capital improvements protect and enhance home owner value, members of the community are naturally inclined to question large expenditures and bristle at any inconveniences and disruptions to their daily lives. That’s why ongoing education and communication are critical. It’s one of the greatest predictors of a proj ect’s speed and success. Develop a program that the board and community managers can use to communi cate early and often about the why, when, and how of the project: Architectural Services Building Envelope Capital Reserve Studies Civil Engineering Concrete Restoration Expert Witness Façade Inspections Forensics, Litigation & Insurance Claims

CONT I NU E S ON PAGE 30

MEP & Energy Services Structural Engineering Transition Engineering Studies

95 Mount Bethel Road Warren, NJ 07059

www.thefalcongroup.us info@thefalcongroup.us (800) 839-7740

28

J U L Y 2 0 2 2

A RTHUR E DWARDS I NC . Experts in Community Association Management with over 35 years of Experience Serving NJ, NY, PA  People with expertise, resources and commitment  People who work as hard as you to get results  People who know every day is an opportunity to learn something new Talk to us… 201-722-9600 Together we can achieve success! info@arthuredwardsinc.com www.arthuredwardsinc.com We've learned the success of a community is easier when you have:  People you can rely on  People who listen

Corporate Headquarters 210 Broadway ♦ Hillsdale NJ 07642

Northwest Regional, NJ

Pennsylvania

25 Route 23

425 Fayette Street #309 Conshohocken, PA 19428

Franklin, NJ 07416

CAPITAL IMPROVEMENT... from page 28.

“Depending on your pre qualification amount, it may

Phase 2: Evaluate Your Funding Options Once you decide to move forward with a project, you’ll have to determine how to fund the costs. The main questions to ask are: • Do you have enough in reserves to cover costs? • If not, could a special assessment cover the project costs? • Is financing a better option based on lending rates and payment terms? • Is a hybrid approach better — e.g., taking some of the cost from either reserves or a special assessment and financing the rest? If you’re financing any of the project, start by learning what size loan your association is pre-qualified to receive. Here’s a tip: depending on your pre-qualification amount, it may make fiscal sense for you to bundle multiple capital improvement projects together. Hold off on finalizing a loan until you know the final scope of work and contract amount since the numbers can change as the project scope is clarified.

make fiscal sense for you to bundle multiple capital improvement projects together.”

Phase 3: Select a Construction Professional For a complex, community-level renovation or construc tion project, it’s unlikely your board members or other homeowner leaders have enough experience and time to manage the project. For professional help, the board should form a dedicated subcommittee that meets regularly and, at times, often. One of the committee’s first goals is to hire a construction professional. This could be an engineer, construction manager (CM), or other third party who acts

Gustavo Muñoz Soriano/ iStock / Getty Images Plus

Isn't it about time you took a fresh look at your community's insurance program?

Are you looking for personal, professional service and attention? Condominium Insurance

Let us work with your association to find the right coverage, at the right price. Felsen Insurance Services, Inc. 3155 Route 10

Denville, NJ 07834 Phone: 973-361-1901 Fax: 973-361-2660 info@felsen.com

30

J U L Y 2 0 2 2