CAI-NJ June 2018 (w)

June 2018 Community Trends ®

WHEN THINGS GO WRONG

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In This Issue

• Are You Prepared for Terrorism? Q&A • Association Pitfalls —The Reserve Budget Dilemma • When Relationships with Contractors Go Awry ....and more

2018 ULTIMATE PARTNERS NJ Chapter Communi t y Associat ions Inst i tute The Community Associations Institute New Jersey Chapter would like to thank its partners below. For more information on our sponorships, please contact Laura O’Connor at 609-588-0030 or laura@cainj.org.

CAI-NJ STAFF

LARRY P. THOMAS, PCAM CHAPTER EXECUTIVE DIRECTOR LARRY@CAINJ.ORG ANGELA KAVANAUGH DIRECTOR, CONFERENCE & PROGRAMS ANGELA@CAINJ.ORG LAURA O’CONNOR DIRECTOR, MEMBERSHIP & MARKETING LAURA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, EVENTS & EDITORIAL JACLYN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS OFFICE ADMINISTRATOR &

GRAPHIC DESIGNER BROOKE@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

CAI-NJ On Social Media

www.facebook.com/ CAINJCHAPTER

@CAINJCHAPTER

Community Associations Institute - New Jersey Chapter

T hank You Fo r You r Suppo r t !

@cainewjersey

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

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Prepared for Terrorism? Q&A By Robert Arnone, AMS, CPM RCA Management, LLC

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24

Association Pitfalls and the Reserve Budget Dilemma By AJ Meola FWH Associates, P.A. When an Association’s Relationship with a Repair Contractor Goes Awry By Andrew Podolski, Esq. Stark & Stark, P.C.

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EXTRAS President's Corner

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5 6 7 8

Looking Ahead

CAI-NJ Upcoming Events

Legislative Update

CA-PAC News Chapter Trends

10 13 19 28

Spring Break Party Photos & Wrap-up 2018 CAI-NJ Olympics Registration CA-PAC Top Golf Photos & Wrap-up 30 2018 Dennis R. Casale Golf Outing Dinner Registration 33 2018 Beach Party Registration 35 High Rise Summit Registration 37 CA-PAC Day at the Races Save the Date 40 Business Partner Best Practices Roundtable Registration 46 Manager Best Practices Roundtable Registration 47 2018 CAI-NJ Conference & Expo Sponsorships 48 2018 CAI-NJ Senior Summit Registration 52 New Members 54 CAI Membership Application 55 2018 Ultimate Partner Listings 56 Business Partner Essentials Registration 63

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CAI-NJ LEADERSHIP BOARD OFFICERS

BOARD OF DIRECTORS Benjamin Basch American Pool Enterprises Business Partner

Donna Belkot, CMCA, AMS Taylor Management Company, AAMC, AMO Community Association Manager Jean Bestafka Renaissance Homeowners Association Homeowner Leader

PRESIDENT LISA VITIELLO, CPA TOWNE & COUNTRY MANAGEMENT, INC.

Frank Catanzarite Homeowner Leader

Jeffrey Logan Guardian Service Industries, Inc. Business Partner Deana Luchs Canal Walk Homeowners Association Homeowner Leader

VICE PRESIDENT JENNIFER NEVINS DW SMITH ASSOCIATES, LLC

PRESIDENT ELECT MOHAMMED SALYANI, CPA WILKIN & GUTTENPLAN, P.C.

Christopher Nicosia, CMCA, AMS, PCAM Prime Management, Inc., AAMC Community Association Manager Lawrence N. Sauer, CPM, CMCA, PCAM Association Advisors Community Association Manager

TREASURER LOREN LIGHTMAN, ESQ. HILL WALLACK, LLP

SECRETARY MARK WETTER, ESQ. RADOM & WETTER

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Denise Becker, CMCA, AMS, PCAM Homestead Management Services, Inc., AAMC

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PRESIDENT’S CORNER LISA VITIELLO, CPA CAI-NJ 2018 PRESIDENT | TOWNE & COUNTRY MANAGEMENT, INC.

S eptember 11th, 2001 taught every American a sad and valuable lesson from that horrific day; Be Prepared for When Things Go Wrong. Because the first respond- ers were trained in disaster management, they made the difference between life and death for many injured because those brave men and women were prepared. Throughout this issue, our experts discuss many com- mon dilemmas that community associations face and their advice in how to “right the ship”. Here are a few thoughts from a manager’s perspective. Insurance coverage is often a daunting subject. Let the professionals’ guide your way. It is important to look to have adequate coverage rather than try to save money in this area. Cyber liability insurance is something newer and is worth the extra coverage. Fire is caused by so many day-to-day activities; drying the clothes, lighting a candle, turning on the cooktop. Fire extinguishers and smoke detectors are the norm but make sure they aren’t expired. Managers should have fire emer- gency plans for communities and share that information periodically with all residents. Water is powerful and can wreak havoc on everything it touches. Washing machine hoses and hot water heaters are the most frequent cause of damage. But pipe breaks

"Our communities are micro-cities. Like NYC, we have our share of security issues." and sewer backups are more damaging and costly to the associations. Clean the sewer lines periodically and cam- era lines that might be causi g problems before it be om s a colossal issue. Twenty years ago, security cameras were something big cities were beginning to install, residential homes did not give it a thought. Today “RING” doorbells and “NEST” products are an economical way to allow for some security “We cannot know every potential pitfall our communities may face but we can be proactive in our risk management, both fiscal and physical.” and act as a deterrent. For communities cameras serve as added value to community centers and more. We cannot know every potential pitfall our communities may face but we can be proactive in our risk management, both fiscal and physical. Planning always yields a better outcome. To Those brave men and women of 9/11, we are eter- nally grateful. n

Courtesy CAI-NJ.

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LOOKING AHEAD LARRY THOMAS, PCAM | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

“P lan for the Worst and Hope for the Best” are words that every board member and manager should memorize and live by every day. With so many moving parts of managing and overseeing a commu- nity’s operation, there are always things that are not going to go according to plan. I remember my days as a community manager, we would have several meetings to discuss and plan our events and work tasks and often, something or someone would disrupt the plan and an “on the spot” decision would have to be made to have the event or task be a success. I always found it important when planning an event to discuss the “what if” factor. Usually, there is one person at every meeting who assumes this role. Sometimes their concerns are legitimate and sometimes they are far reaching and the possibility of their suggestion is minimal. Probably, the weather is the most unpredictable element of any event. As we all know, our communities all plan outdoor events in the summer and careful consideration must be given to the “what if.” Do we have a rain date, can we move indoors, can we cancel the caterer or entertainer if the event is cancelled? It never hurts to have a “Plan B” in place prior to the event. I remem- ber one of the owners of a management company that I worked for was always known for calling “an audible.” So, if he was in the middle of a function or task and something gets derailed, he would call “an audible” and immediate- ly change direction. Don’t be afraid to change course if things are not going well and you need to change things up. Use your best judgement and move the function along. Also, if you plan a new event and it doesn’t go as well as you thought it would have, sit down with your team and discuss why the event didn’t meet your expectations. It may

“I remember my days as a community manager, we would have several meetings to discuss and plan our events and work tasks and often, something be that it wasn’t marketed properly or the theme needed to be altered a little to make it more attractive. I never used the “one and done” philosophy. The reason most events don’t go as planned is due to poor planning and execu- tion. It is very important to fully discuss your idea with your team. Consider all the comments, and if needed, make some changes. Before, we host or sponsor an event at CAI-NJ, the entire team (along with the appropriate committee, if it is to be a committee event) thoroughly discuss the concept of the event to make sure it is relevant and we have a viable audience to attend. Once we determine to hold the event, we constantly go over the specifics to ensure we cover all our bases. We also discuss the idea with the involved committees to make sure we are not duplicating or if we can “partner up” with another CAI-NJ committee. So, I started with a quote and I will end this article with a quote “Fail to Plan, then Plan to Fail.” We can never over plan or over discuss an event or task. Consider bringing in your associates and colleagues that have run a similar event to get their input and never be afraid to call “an audible” if things are not going well. n or someone would disrupt the plan...”

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2018

EVENTS & EDUCATION CALENDAR

JUNE

July

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High Rise Summit LIberty House Restaurant, Jersey City M-203: Community Leadership Radisson, Freehold

Board Leadership Development Workshop CAI-NJ, Freehold F.A.S.T. Track Career Developement Series (Part 1) CAI-NJ, Freehold

12- 13

5 -6

12 17

Business Partners Essentials Radisson, Freehold

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Business Partner Meet Up Iron Bar, Morristown Shred for A Cause Event CAI-NJ, Freehold

Coffee & Cram CAI-NJ, Freehold Annual Olympics Thompson Park, Monroe Twp. Senior Summit Renaissance at Manchester, Manchester

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18 25

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F.A.S.T. Track Career Developement Series (Part 2) CAI-NJ, Freehold

13 12

Lecture Series CAI-NJ, Freehold

August

Joint Manager & Business Partner Roundtable Forsgate Country Club, Monroe Twp. Dennis R. Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp. F.A.S.T. Track Career Developement Series (Part 3) CAI-NJ, Freehold F.A.S.T. Track Career Developement Series (Part 4) CAI-NJ, Freehold Joint CAI-NJ & PennDelVal Networking Event Logan Inn, New Hope

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Annual Beach Party Martells Tiki Bar, Point Pleasant

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14

Board Leadership Development Workshop CAI-NJ, Freehold

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Lecture Series CAI-NJ Freehold

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CA-PAC Day at The Races Monmouth Park, Oceanport

26 27

SEPTEMBER

6

Homeowner Leader Roundtable TBD

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Manager Leadership Workshop Rossmoor Community Association, Monroe Twp.

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Events are subject to change

Lecture Series CAI-NJ Freehold

LEGISLATIVE UPDATE

GEORGE GREATREX, ESQ. PARTNER, SHIVERS, GOSNAY & GREATREX, LLC LEGISLATIVE ACTION COMMITTEE CHAIR

A few months ago I reported in my “Legislative Update” column that a state legislator who lives in a common interest community in New Jersey had expressed the intention of introducing legislation in Trenton that would mandate some form of board mem- ber training. This legislator has also expressed support for legislation that would mandate property manager licensing. Apparently, this person is not satisfied with the job the association’s board of trustees and property manager are doing. I asked for input from our readers of this column on the idea of board member training, for instance whether it should be mandated, recommended, or incentivized. While we did receive some feedback from our readers, I also learned that not all of our read- ers are aware of how to provide their feedback on the articles they read in Community Trends ® . The best way to provide feedback to CAI-NJ and the Legislative Action Committee is to write to info@cainj.org . Any and all comments are welcome…questions, com- ments, suggestions, support, opposition, you name it. The chapter staff, officers, volunteers and contributors to this monthly magazine are here to assist you…our constituents and readers. We encourage you to share with us your communities’ challenges, and how you believe we can help you meet those challenges. The Legislative Action Committee (LAC) is currently inves- tigating three legislative initiatives, and our efforts would be greatly enhanced with feedback from you. They are: • New Board Member Training: Our homeown- er leaders play a vital and necessary role in the daily governance of our homeowner associations. These volunteers attend countless meetings, answer daily telephone calls and letters from their neighbors, and are generally depended upon to ensure the peaceful enjoyment and maintenance of the value of their homes, all without compensation and often without

“We encourage you to share with us your communities’ challenges, and how you believe we can help you meet those challenges.” the credit they deserve. It is suggested, however, that all board members could perform these volunteer tasks more efficiently and effectively if they received proper and timely training. So far, the comments we have received point out that any such legislation mandating board member training must attain a fair balance between the benefits of training and the rec- ognition of the time and cost constraints already put on our volunteer homeowner leaders. There is still time to share your thoughts on this issue... • Electric Vehicle Charging Stations: Legislation is currently pending at both the national and state levels regarding the installation of electric vehicle charging stations for existing and future common interest commu- nities. This legislation will ultimately determine if govern- ing boards have a say as to where, when and if these charging stations will be required in your communities. There is still time to help shape this legislation…please let us know your thoughts. • Expansion of Services to be Performed or Paid for By Municipalities: The Municipal Services Act (the “Kelly” bill), originally adopted in 1989 and amended in 1993, requires municipalities to either per- form certain services for common interest communities, or to reimburse those communities an amount commen- surate with what it would have cost the municipality to perform those services. Those services include

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2018 CAI-NJ COMMITTEES

AWARDS COMMITTEE Dori Novick — Chair Andrew Linfante — Vice Chair Tana Bucca, Esq.

AJ Meola Angela Morisco, Esq. Steven Morris, RS Robert Roop

James Magid, CMCA, LSM, PCAM Thomas Martin, Esq. Glen Masullo, CMCA, PCAM Jack McGrath Michael Pesce, PCAM Paul Raetsch J. David Ramsey, Esq.

removal of snow/ice from the streets, removal of leaves from the streets, pick up and disposal of trash and recyclables, and lighting of the streets. Since that time, that list of services has not been expanded. The LAC is currently supporting legislation that would require municipal- ities or local Municipal Utility Authorities to inspect and main- tain fire hydrants in common interest communities in the same manner they do for residences that are not located in such com- munities. We have learned that many towns and MUAs do not provide that service to “private” communities. Please let us know if that situation exists within your community, and how you’ve dealt with that challenge. When things go wrong in your com- mon interest community, don’t hesitate to reach out to your support team, includ- ing your property manager, attorney, accountant, engineer, and the other var- ious vendors who exist to lend support to the thousands of homeowner asso- ciation governing boards across New Jersey, including your local CAI chapter and its Legislative Action Committee! Just write to info@cainj.org . Enjoy your June…talk to you next month. n Go to the “Legislative” tab at www.cainj.org for even more legislative resources and information.

Jennifer Carr Rich Cassilli Drew Cowley Gabby Grimes

Board Liaisons: Lisa Vitiello, CPA Deana Luchs Staff Liaison: Jaclyn Oskierko FAST COMMITTEE Lauren Vadenais — Chair Kristy Winchock — Vice Chair Matthew Antico Vincent Kazmierski Sierra Kressin, Esq. Jessica Long AJ Meola Rob Mignone Nicole Miller, Esq. Ashley Payne, CMCA Adrianna Rudzinsky, Esq. David Vargas Gabe Vitale Board Liaisons: Larry Sauer, CPM, CMCA, PCAM Jeffery Logan Staff Liaisons: Jaclyn Oskierko GOLF COMMITTEE Chris Belkot — Chair Paul Migliore — Vice Chair Raymond Barnes, CMCA, AMS, PCAM Scott Brandle Martin Cabalar, Esq. Patricia Clemente Eric Eggert Marty Ehrlich Robert Frustaci Keith Giliberti, PE, RS Matt Grobert Frederick Hodge Jessica Baker, Esq. Jamie Cullen, CMCA Jessica Hatton

Caroline Record, Esq., CCAL Audrey D. Wisotsky, Esq. Board Liaisons: Jean Bestafka Loren Lightman, Esq. Staff Liaisons: Larry Thomas, PCAM Laura O'Connor MANAGERS COMMITTEE Erin O'Reilly, CMCA, AMS, PCAM — Chair Glenda Carroll, CMCA, AMS, PCAM, LSM — Vice Chair Tracey Allen, CMCA, AMS Tony Nardone, CMCA, AMS Kerri Stimpson, CMCA, AMS Ilene Uydess, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA Board Liaisons: Donna Belkot, CMCA, AMS Christopher Nicosia, CMCA, AMS, PCAM Staff Liaison: Angela Kavanaugh MEMBERSHIP COMMITTEE Lysa Bergenfeld, Esq. — Chair Nikolaos Haralambopoulos, CPA — Vice Chair Erika Befumo Claire Diallo Steven Mlenak, Esq. Debbie Pasquariello, CIC, CIRMS Ken Shah Kathleen Radler Briana Walsh Board Liaison: Loren Lightman, Esq. Mark Wetter, Esq. Staff Liaison: Laura O'Connor NETWORKING EVENTS COMMITTEE Jeff Cirkus, CMCA, AMS, PCAM Chuck Graziano, PCAM, CPM Dawn Mackanic, CMCA Kristina Munson, CMCA, AMS, PCAM

Vanessa Hilsdon, Esq. Christine Maldonado Vanessa Pena, Esq. Kari Prout Nicole Skaro Eileen Szelewicki, CMCA Tino Tandurella Mary Visco Sandi Wiktor

Board Liaisons: Lisa Vitiello, CPA Mohammed Salyani, CPA Staff Liaison: Jaclyn Oskierko BUISNESS PARTNERS COMMITTEE

Robert Flanagan, Esq. — Chair Kim Manicone — Vice Chair Beth Barnett John Buglione Arnold Calabrese, Esq. Bernie Cosentino Toni Licciardi Julie Nole Ken Sauter, Esq. Herman Shauger Amy Shorter Jessica Vail Patricia Ventura Gregory Vinogradsky, Esq. Lisa Wagner Kristy Winchock Brian Yarzab, Esq. Board Liaisons: Jeffrey Logan Jennifer Nevins Staff Liaison: Angela Kavanaugh CONFERENCE & EXPO Cheryl Rhine — Chair Jay Burak — Vice Chair

Hank Johns Pete Katula Georgette Kyriacou Michael Polulak, Esq. Ross Rutman Christopher Tensen, CMCA, AMS Ryan Weiner Tom Witowski Board Liaisons: Larry Sauer, CPM, CMCA, PCAM Mark Wetter, Esq. Staff Liaison: Jaclyn Oskierko HOMEOWNER LEADER COMMITTEE Charles Lavine — Chair Bruce Kunz — Vice Chair Nina Bell Roslyn Brodsky Cheryl Palent Board Liaisons: Jean Bestafka Frank Catanzarite Deana Luchs Staff Liaison: Angela Kavanaugh LEGISLATIVE ACTION COMMITTEE (LAC) George Greatrex, Esq. — Chair A. Christopher Florio, Esq. — Vice Chair Liz Comando, PCAM Louis Curtis, MBA, CMCA, AMS, PCAM Barbara Drummond, CMCA, PCAM

Joe Bonafede Stacey Cadoff Jessica Chelkowski, CPA Ellen Comiski Sudeep Das John Echelmeier Eric Frizzell, Esq. Eleni Giannikopoulos Tanya Jimenez Barbara Kelly Terry Kessler, Esq. Konrad Kurach Steve Lang Denise Mack Patricia McGlone, Esq. Carol Nickerson

Jeffrey Paige, Esq. — Chair Pam Illiano — Vice Chair Denise Becker, CMCA, AMS, PCAM

Monica Caporosa Dean Catanzarite Diane Cody, PCAM

Rhett Cowley Steve Ferrara Angelo Giacchi Gary Gleitman

Fred Hodge Arthur Holl Allison Jacques Jessica Long Jessica Marvel Sharon Maldonado Daniel Reilly Chris Rosati David Shahrabani Mark Siwiak Jodi Smallwood Christina Smith Melissa Volet, Esq. Board Liaisons: Jennifer Nevins Benjamin Basch Staff Liaison: Jaclyn Oskierko

Kevin Oliver Kelley Rojas Harriet Schwarzber, CMCA, AMS Lenny Stern Jackie Thermidor, CMCA Board Liaisons: Donna Belkot, CMCA, AMS Mohammed Salyani, CPA Staff Liaison: Angela Kavanaugh EDITORIAL COMMITTEE Kari Valentine, CMCA, AMS — Chair Mary Barrett, Esq. — Vice Chair Robert Arnone, CMCA, AMS David Cerra, Esq.

Matthew Earle, Esq. Vincent Hager, CIRMS Sue Howe, CMCA, AMS, PCAM Carol Koransky, CPA Steve Kroll Christine Li, Esq., CCAL

Joseph Chorba, CPA Vanessa Davenport Jessica Flynn, Esq. Richard Linderman, Esq.

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CA-PAC REPORT • SPRING 2018 A LETTER FROM YOUR PAC PRESIDENT 2018 CA-PAC BOARD OF DIRECTORS

President James Rademacher

Vice President Jack McGrath, R Secretary Caroline Record, Esq. Treasurer Carol Koransky, CPA Assistant Secretary/Treasurer Louis Curtis, MBA, CMCA, AMS, PCAM Members Liz Comando, PCAM Christopher Florio, Esq. Sue Howe CMCA, AMS, PCAM James Magid, CMCA, LSM, PCAM Michael Pesce, PCAM J. David Ramsey, Esq. Tim Martin, MBI-Gluckshaw Audrey Wisotsky, Esq., CA-PAC Counsel CAI-NJ Board Liasions Jean Bestafka To promote and strive on the behalf of New Jersey community associations for the improvement of government by encouraging and stimulating New Jersey community associations, their owners, and those serving the New Jersey community association indus- try to take a more active and effective part in governmental affairs. Loren Lightman, Esq. Purpose of CA-PAC

On behalf of the Community Association – Political Action Committee (CA-PAC) I want to thank the members of the industry who contributed to the PAC in 2017. Your contributions allow CA-PAC members to personally interact with targeted candidates and members of the legislature who determine the future of common interest communities in New Jersey. Although CA-PAC has achieved many legislative victories over the years, we continue to have important issues to support and oppose. CA-PAC contributions enable us to advocate on behalf of the industry. I encourage you to make a contribution to CA-PAC as an investment in the inter- ests of community associations throughout New Jersey. 2018 is shaping up to be another challenging year. It is critical that we raise funds to spread our message to elected officials that lack a fundamental understanding of community associa- tion issues. Please send your contribution today. Thank you, Jim Rademacher

President, Community Association Political Action Committee

CA-PAC FAQ’S

TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO: CA-PAC, 500 Harding Road, Freehold, NJ 07728 | or visit: www.cainj.org/capac What is CA-PAC? Community Association Political Action Committee (CA-PAC), was created to give our members a stronger voice in Trenton. Its goal is to support candidates who support key issues important to CAI-NJ members. CA-PAC is overseen by a committee of CAI-NJ members who evaluate potential donations based on our members’ legislative priorities and support candidates, regardless of party, who act in support of our members’ issues. Who does CA-PAC Support? CA-PAC is bi-partisan and works with both parties to support candidates who support vibrant community associations, community association management companies and the businesses that support our communities. How are contributions to CA-PAC used? Contributions to CA-PAC are used to support candidates for state office. Donations are determined by the CA-PAC board, made up of CAI-NJ members and contributors to the PAC based on a review of the legislators’ position on issues important to CAI-NJ members.

CA-PAC WORKS HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

Municipal Bonding Requirements – (A1425, S3233) - Last year, the legislature passed a law removing developers’ requirements to post performance and maintenance guarantees on construction not ultimately dedicated to the municipality. While intended only to apply to shopping centers, CA-PAC is concerned that our communities could be swept into the exemptions, and will be working to correct the oversight. Delinquencies and Expedited Foreclosures – (A2085, S1243) – We continue to attempt to work with the banks to maintain vacant units and assume responsibility for maintenance fees while pushing for rent receiverships as an option. Municipal Services / Fire Hydrant Maintenance - (A1745) – CA-PAC is advocating for expansion of the municipal services provided to your community. Our top priority for now is passage of legislation that would ensure that your local municipal utility authority keep your neighborhood safe by properly maintaining fire hydrants, and we hope to make the cost of such maintenance fair by banning the practice of charging our associations more than their host municipalities. Electric Charging Stations - (A1030) - There is National and State legislation concerning the installation of electric charging stations for existing and future common interest communities. CA–PAC will be there to make sure you have say over when, where, and if to include these stations in your communities. DCA Inspections - (S1150) - This bill would reduce inspections from every 5 years to every 2 years. Solar Panel Installations – (A2469) - Recent legislation proposes controls for regulation and installation of solar panels in your community. Insurance Deductibles – (A2439) - Recent legislation proposes to prevent an association’s ability to transfer the responsibility for a damage claim’s deductible to homeowners in condominium associations. Snow Contractor Indemnification – (S665) - This legislation would require snow contractors to be indemnified for any damage or injuries as a result of their snow removal/ice control operations.

CA-PAC EVENTS

SAVE THE DATE!

Thursday, August 23, 2018 Monmouth PARk RaceTrack 175 Oceanport Ave Oceanport, NJ 07757 Gates open at 11:30 AM

SUCCESSFUL 2018 EVENT

Second Annual Top Golf Fundraiser Wednesday, April 18, 2018 Top Golf, Edison, NJ

YOUR CONTINUED SUPPORT OF CA-PAC RAISES THE PROFILE OF NEW JERSEY’S COMMUNITY ASSOCIATIONS!

CONTRIBUTION FORM Community/Company: ________________________________________________ Individual Name: ____________________________________________________ Mailing Address: ____________________________________________________ City, State, ZIP:______________________________________________________ Phone: _________________________ Fax: ______________________________ Email: _____________________________________________________________ Occupation: _________________ Employer: ______________________________ Employer Address: ___________________________________________________ City, State, ZIP:______________________________________________________ Management Company Name: _________________________________________ (Community Association’s Only) DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS

Individual................................... $25-$100 $_________ • Community Manager • Board Member • Homeowner

Business Partner .....................$250-$500 $_________

Management Company ................... $500 $_________

Community Association..................... $_______________ (Suggested contribution $1 per unit)

Other................................................... $_______________

Please make your CORPORATE or PERSONAL CHECK payable and mail to: CA-PAC, 500 Harding Road, Freehold, NJ 07728

The New Jersey Election Law Enforcement Commission requires us to collect and report the name, mailing address, occupation and name of the employer of contributors whose contribution exceeds $300 in a calendar year. Contributions to CA-PAC are not deductible for federal income tax purposes. Contributions are not limited to suggested amounts. CA-PAC will not favor nor disadvantage anyone based upon the amounts or failure to make PAC Contributions. Voluntary political contributions are subject to limitations of ELEC regulations. CA-PAC contributions are not considered payment of CAI dues.

CAI-NJ 2018 PARTNERS

GAF 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 Belfor Property Restoration Brown & Brown Insurance of Lehigh Valley C & L Sweeping & Pavement Maintenance DW Smith Associates, LLC FWH Associates, P.A. G & C Electronics

The Falcon Group - Engineering, Architecture & Reserve Specialists Wilkin & Guttenplan, PC

Popular Association Banking Quality 1st Contracting, Inc. R.M. Termite & Pest Control Radom & Wetter Attorneys at Law Rainbow G & J Painting, LLC Regal Restoration Republic Services of NJ, LLC Stark & Stark Suburban Consulting Engineers, Inc. Supreme Metro, LLC Technocality, Inc. Towne & Country Management, Inc. USI Insurance Services Wilkin Management Group, LLC

Accent Group Becht Engineering, BT, Inc. Becker

Griffin Alexander, P.C. Hill Wallack, LLP Hillcrest Paving & Excavating, Inc. Jesan Construction and Maintenance JGS Insurance KPI 2 Contractors, Inc. L.N. Rothberg & Son, Inc. Landscape Maintenance Services, Inc. Mackoul Risk Solutions, LLC Morris Engineering, LLC National Contractors, Inc. NFP Property & Casualty Services, Inc. O & S Associates, Inc. Pardini R Construction Corporation

Berman & Wright Architecture Engineering & Planning, LLC Buckalew Frizzell & Crevina LLP Capital One Bank, N.A. Corner Property Management Cowley’s Termite & Pest Control Services Curcio, Mirzaian & Sirot, LLC Cutolo Barros, LLC Denali Property Management, Inc. FirstService Residential, AAMC Greenbaum, Rowe, Smith & Davis, LLP

Renda Roads, Inc. RMG, Regency Management Group, Inc., AAMC Shivers, Gosnay & Greatrex, LLC South Shore Construction, LLC Union Bank HOA Services

Giordano, Halleran & Ciesla, P.C. Hueston, McNulty, Attorneys at Law Mirra & Associates MyPropertyBilling.com, LLC National Cooperative Bank Peter Waldor & Associates, Inc.

Accurate Reconstruction Dan Swayze & Son, Inc. Diversified Property Management Environmental Designers Irrigation, Inc. Eosso Brothers Paving Felsen Insurance Services

CHAPTER TRENDS mem property management, inc. Hired Harry Kokinos as Accountant mem property management, inc. recently hired Harry Kokinos as an accountant for its rapidly expand- ing Accounting Department based in Somerset, New Jersey. Most recently, Kokinos was a fidu- ciary tax accountant for Bank of America – US Trust Company. As an Accountant for mem prop- erty management’s clients, Kokinos will have primary responsibility for accounts payable, accounts receiv- able, budgeting, maintaining and auditing financial records, tax plan- ning, budget and financial manage- ment for our managed properties and community Associations. “We are continually adding the top talent in New Jersey to our company and were always looking to find experienced, client-focused accounting professionals to strength- en our team, we are very excited to welcome Harry Kokinos to the mem property management family,” said Matthew Laderman, VP of mem prop- erty management. “I am very excited to join mem prop- erty management and look forward to contributing my skills and experi- ence for the best property manage- ment company in New Jersey,” said Kokinos. n

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Prepared for

?

q&a

© iStockphoto.com

By Robert Arnone, AMS, CPM, RCA Management, LLC

Terrorist attacks are no longer just in someone else’s community:

answer questions on how to keep our communities safe was an honor.

The challenges faced today by our local law enforce- ment requires the help of the everyday citizen. You may have heard the campaign, “if you see something say something.” Property managers rely on the communication from their field managers and residents to help develop a plan that will help form a safe environment specific to a community’s needs. The Joint Terrorism Task Force (JTTF), a partnership includ- ing federal, state and local law enforcement agencies and fire officials, consisting of the FBI was formed in the 1980s, but after the September 11th attacks, it became a nationwide organization that investigates potential threats to our communities. An example of the JTTF’s credit includes taking down the Fort Dix terrorist plot in 2007. We had the opportunity to interview two members of the JTTF, FDNY Battalion Chief Joseph Pfeiffer and FDNY Captain Christopher Flatley. Their time is valuable so hav- ing the opportunity for two members of the FDNY and JTTF

Q&A Responders: • Members of the JTTF (Joint Terrorism Task Force) • Center for Terrorism and Disaster Preparedness

• FDNY Battalion Chief Joseph Pfeiffer • FDNY Captain Christopher Flatley

(Q) How can a property manager better educate their residents and staff in today’s unpredictable environment? (A) Conducting fire drills and preparedness exercises in a residential property can be a challenge. Allotting time during an association meeting or other gathering of the tenants can be a good time to discuss emergency plans and procedures. Generally, those in attendance are the most motivated and receptive to instruction. Those people can also be a force multiplier during emergencies, if they can be tasked to support building personnel. CONT I NU E S ON PAGE 16

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TERRORISM... from page 14.

a. Hardening of the location – making the location more difficult to access. b. Separating the occupants from the attackers – develop security measures that can isolate potential victims in a secure area out of harm’s way. c. Develop the ability to identify threats to the location – suspicious activity reporting, identify possible surveillance of the location and other threat vectors that can raise the attractiveness of the location as a target – VIP tenants, high profile events etc. (Q) Should a condo, co-op or commercial facility have training in place on an annual basis? (A) Annual training can be part of preparedness pro- gram, however the amount of information that may need to be conveyed and the time required for presentation may not suite the audience. Determine what method is best for your population. A monthly newsletter may be an effective means of educating your tenants.

(Q) What should a building manager do to alert authorities before a situation escalates? What should be signs of concerns? (A) Assuming the emergency is not one that is reported through an automatic alarm device like a fire alarm or smoke detector, building staff should report the issue to 911 with as much information as possible to initiate the response of the appropriate resources. Even if an alarm is transmitted through the alarm company central station it is recommended that a follow up phone call be placed to 911 to confirm the alarm has transmitted properly and provide the dispatchers with any additional information to the responding units. (Q) What is the best way to prevent injuries or fatalities while an act of terror is taking place? (A) You must remember; an act of terrorism is a deliberate violent act intended to kill and injure people at the attack location. The most effective counterterrorism measures include:

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(Q) Where can those inter- ested find the right resources for this education? (A) Many city agencies and non-gov- ernmental organizations (NGO) offer safety education, first aid and pre- paredness training. Each agency or NGO may be more suited to address a specific issue, if training you desire is not available through these organi- zations, commercial options may be an alternative. Additional thoughts on managing in vertical living from Captain Flatley: “Emergency preparedness requires a new approach to structures that extend the Z or vertical axis. Preparedness for the vertical environment requires

CONT I NU E S ON PAGE 18

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TERRORISM... from page 17.

us to change our focus from a two-di- mensional horizontal environment to a three-dimensional vertical one, where access and egress from upper floors may be limited, where communica- tions between occupants and staff may be delayed, and where reliance on building systems, elevators, fire suppression and HVAC systems are essential a successful outcome. Vertical preparedness requires a dis- cussion on the types of threats the property may face, the resources avail-

“Vertical preparedness requires a discussion on the types of threats the property may face...”

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able to engage the threat and the building systems that can mitigate the impact. Your Vertical Preparedness plan should be coordinated with the local responders. Police, fire, and emergency medical resources all will be part of the response to the event. In an active-shooter event, police will need to neutralize the threat and prevent further injury, fire and EMS resources will be involved with patient triage, treatment and removal from the property. The basic strategy for response to a mass casualty is “stop the killing, stop the dying.” And that strategy must start even before the actual response.“

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Association Pit-Falls and the RESERVE BUDGET DILEMMA By AJ Meola, FWH Associates, P.A.

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“A healthy reserve fund is crucial to preserve a community’s appearance and overall value...”

C ommunity associations are becoming increasingly popular with more than 65 million Americans inhabiting dwellings in communities with condo- minium associations, homeowners associations, planned communities and cooperative boards. In these commu- nities, each elected board has a fiduciary responsibility, among many others, to make appropriate decisions that will safeguard the community’s well-being in the present and the future. One of these responsibilities is maintaining a healthy reserve fund for major repair and replacement projects to the community’s common elements or common areas. A healthy reserve fund can be defined as a stable reserve account balance that reaches or surpasses the mini- mum industry recommended percent threshold in each year of the reserve study. This threshold is based upon the total replacement and significant repair costs of the community’s common assets, accounting for future construction projects

and. Equitability should also be one of the most critical factors when formulating a future funding plan. Every community is unique with different common ele- ments or common areas, varying community rules and reg- ulations, diverse demographics, and distinct geographic locations. Regardless, they all have one thing in common, deterioration of common elements and common areas are inevitable. A healthy reserve fund is crucial to preserve a community’s appearance and overall value, but sometimes communities find themselves in a pitfall where their reserve funds are just not enough to financially overcome unantici- pated and expensive construction projects. So how do communities get into predicaments where their annual investments fail to cover the cost of expensive construction projects? There are numerous reasons why a board can find themselves in financial hardship, including but not limited to the following:

CONT I NU E S ON PAGE 26

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PITFALLS... from page 24.

Experience Resources Excellence

• Unexpected weather phenomena dam- aging common element components not covered by insurance. • The deferment of common element replacement to save money in the short term. • Failing to update the community’s reserve study regularly. • Unanticipated common element replacement that may have been over- looked in past reserve studies, which were unable to be accounted for through visual site inspections (e.g., water service lines, plumbing, etc.). • Inadequate transition settlements that have been impacted by accumulating expert fees and legal fees. • Updated code compliance regula- tions that were not yet implemented or required during the community’s inception (e.g., unacceptable fire-rated sheathing under roof shingles) leading to unanticipated and costly expenses. The list can go on and on. No matter the reasoning as to how a community finds themselves in a financial pitfall, the board has a limited amount of options to address this type of concern. The first option would be to increase reserve contributions drastically. This is typically an unlikely scenario, being that many residents may not have the financial resources to easily pay a higher than anticipated fee each month, especially if it is without advanced notice. Dramatically increasing the reserve contributions could lead to disgruntled residents and overall financial insecurity amongst the community and prospective buyers. Equitability is also at stake if the community has been under-

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These certificates are distributed at the end of each CAI-NJ seminar. This is proof that you attended and completed the seminar. You may need to reference the certificate in the future and CAI-NJ does not keep track of each member’s attendance record. Community man- agers will definitely need the certificates to obtain credit for continuing education towards their designations.

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“The consequences of a financial pitfall can hurt the community’s overall appeal to potential buyers.”

funding their reserve accounts in the past. New community residents would have to equally contribute to the reserve deficit because of inadequate budget planning from the past. The second option would involve a special assessment where the annual association fees are lacking, and addi- tional funds are needed to subsidize or fully finance an expensive community project. Specific rules and proper implementation processes of special assessments are outlined in individual community governing documents, bylaws and/or state statutes. Generally, special assess- ments become the unit owner’s obligation once the board officially adopts the resolution. The unit owners become responsible for paying the special assessment, regardless of the length of their ownership in the community. Again, equitability becomes an issue. Special assessments could lead to litigation cases against the community, resulting in accrued legal expenses and possible project delays. The third option would be to borrow funds from an institutional lender, which of course comes along with an interest charge. Not only would the association be paying for funding the project, but now they would be paying

even more for settling the debt of the interest incurred by the lender. On the other hand, associations would have the possibility of obtaining all the money upfront to fund for the project, the debt can be paid over a time period, and debt obligations can be transferred from unit sellers to unit buyers as unit sales occur. The consequences of a financial pitfall can hurt the com- munity’s overall appeal to potential buyers. For example, the Federal Housing Administration (FHA) has an approval program which supplies prospective unit owners with FHA insurance. This insurance is very beneficial because it makes homeowner loans more attractive to lenders and CONT I NU E S ON PAGE 29

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Team Name or Spectator: _________________________ Company Name: _________________________________

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Team Information (please include name & company) 1. (Captain)_______________________________________

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PITFALLS... from page 27.

mon elements. Understand that saving money in the short term can set the community up for failure in the long run. Deferring reserve contribution increases to save in the present will put more of a burden on future owners and will only give the community less time to make up for past underfunding. Analyze

whether or not the maintenance of a particular common element is still practical. A community may think they are saving money by continuing to maintain certain common elements when in reality replacing certain items may be more cost-effective than con- tinued maintenance. n

broadens the spectrum of buyers who can afford homes in an association because having the insurance comes along with a more favorable loan term. So, what does this have to do with an association’s reserve budget? The FHA sets minimum standards to acquire this insurance if a prospective unit owner intends to live in a commu- nity with an association. The standards are set based upon minimum financial threshold percentages required, which in turn is dependent upon owner occu- pancy ratios. In other words, as the number of vacant units in a community increases, the minimum required finan- cial threshold to acquire FHA insurance increases. And what has a significant affect on community vacancy? Financial strength and physical appeal. If a community has a poor financial status, physical appeal cannot be maintained. Approval of FHA insurance becomes increasingly difficult, which burdens real estate listings and resale values. Although unsuspecting issues can arise and lead to the scenarios outlined above, there are practices associations can follow to prevent or ease the bur- den of financial pitfalls. Some include early and consistent financial planning. Do not delay financial budget plan- ning if your community is new with pristine components. As stated above, the deterioration of building and site components is inevitable. Update your reserve studies regularly and follow the guidelines set forth by your reserve specialist. Implement a comprehensive maintenance program. When regularly performed, maintenance can prolong the useful life of some significant com-

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