CAI-NJ March 2022

“New Jersey courts have held that association boards must act reasonably, in good faith and not unconscionably.”

BOARD MEMBERS... from page 34.

majority instead. If the board were sued for changing the voting procedure, it might not be entitled to indemnification.

4. Provide opportunities for residents to comment on decisions facing the association. Although the governing structure of community associations is largely democratic in that unit owners are nominated and elected, important decisions affecting the property interests of dozens, hundreds or even thousands of residents lie in the grip of a handful of board members. A board striving to meet its fiduciary duty by acting for the benefit of the community must first understand the actual needs of the community. The best way for boards to learn these needs, and make decisions, accordingly, is to provide methods for unit owners to easily provide input on association issues. It is for this reason that the recent amendment to the New Jersey Nonprofit Act per- manently allowing remote attendance at member meetings (by way of Zoom, Teams, etc.) strictly requires that members still be given the opportunity to speak remotely at meetings.

5. Perform their duties without bias for or against any individual group of owners or non-owner residents. New Jersey courts have held that association boards must act reasonably, in good faith and not unconscio- nably. Moreover, even though boards are comprised of volunteers, the laws governing bias and discrimination still apply. It is imperative that boards not discriminate against any person (unit owner, resident or otherwise) on the basis of race, color, national origin, religion, sex, handicap and familial status (although there are certain exceptions concerning familial status with age-restricted communities). Discrimination laws exist at the state level with the New Jersey Law Against Discrimination and the federal level with the Fair Housing Act. Boards should keep in mind that act- CONT I NU E S ON PAGE 38

Your single-source contact for comprehensive project planning, design and execution.

 Construction Oversight  Reserves/Updates  Architectural Design  Structural & MEPF Design  Landscape Architecture  Surveying Services  Design Specifications  Grading & Drainage

Jennifer Nevins, CMCA - jnevins@psands.com Warren . Cherry Hill . Wall . Yonkers . Mineola . Doylestown www.psands.com

36

M A R C H 2 0 2 2