CAI-NJ May 2018 (w)

May 2018 Community Trends ®

KEEPING YOUR COMMUNITY COMPETITIVE

© iStockphoto.com

In This Issue

• Options for Keeping Your Community Competitive in the Real Estate Market • Staying Competitive in an Ever Changing Condo Market • How to Leverage Your Community’s Assets in a Highly Competitive Housing Market ....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

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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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Options for Keeping Your Community Competitive in the Real Estate Market By Steven J. Morris, P.E., R.S., NAFE, Principal Morris Engineering, LLC / ME Architecture, LLC Staying Competitive in an Ever Changing Condo Market By Joseph Chorba, CPA, CFE, Principal Wilkin and Guttenplan, P.C. Management Trends: How to Leverage Your Community’s Assets in a Highly Competitive Housing Market By Kristina Munson, CMCA, AMS, PCAM, CPM, Chief Operating Officer RCP Management Company, AAMC, AMO

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EXTRAS President's Corner

5 6 7 8

Looking Ahead

CAI-NJ Upcoming Events

Legislative Update

2018 Beach Party Save the Date

13 13

CA-PAC Day at the Races Save the Date

2018 Joint Economic Forecast 20 Jules C. Frankel Manager Education Assistance Program 28 2018 Dennis R. Casale Golf Outing Dinner Registration 30 Shredding Event 36 Community Academic Institute Registration 38 Board Leadership Development Workshop Registration 40 Business Partner Best Practices Roundtable Registration 42 Manager Best Practices Roundtable Registration 43 2018 CAI-NJ Conference & Expo Sponsorships 44 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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Pictures this page © iStockphoto.com

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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 Manager Lawrence N. Sauer, CPM, CMCA, PCAM Association Advisors 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.

I n my last month’s article, I was wishing for Spring to go out like a lamb. Well, as I write this article for the May issue, we are headed for another April snow storm !!! So much for wishing. I do believe Spring will get here. The warm weather will be upon us and our homeowners and potential buyers will be out and about. Whether you are a long time resident of your community or a soon to be seller, it is important to keep your communi- ty vibrant and competitive. Our homes are one, if not, the largest investment we have and we should do all we can to maintain its appeal and value. For those of us that are in older communities, that trans- lates to upkeep. We don’t want our communities to begin to look “tired”. Throughout this month’s issue, there are arti- cles on “keeping your community competitive”. As a man- aging agent, I offer the following suggestions to consider to keep your community competitive. • If your buildings are in good, structural shape, keep them clean by power washing siding and trim. The north side of buildings tend to get green mold growth due to less sun exposure. If you cannot afford to clean all the buildings, at least look to clean off the north side mold growth. • Older landscaping may be unhealthy and overgrown. Walk with your landscaper to determine what needs spruc- ing up. Then, have the landscaper put together a five year plan to implement in the next few budget cycles.

"Our communities are micro-cities. Like NYC, we have our share of security issues." • Ask the post office if you can paint the cluster mailboxes. Many offices have given permission, in writing, for the community to paint them. • Update your pool area with new furniture. Consider adding an outdoor kitchen facility that can be used for community social events. • Update your gym with “state of the art” equipment such as the new “Peloton” bikes which are all the rage.

“As a managing agent, I offer the following suggestions

to consider to keep your community competitive.”

• Consider a “dog park” in an open, common area. Manhattan has been successful for decades with this amenity. Keep in mind, at least 50% of households have dogs. That’s a huge market segment that would be enticed to purchase in your community. • Last, but not least, keep your entrance signs clean and fresh. If they, too, are “tired” consider replacing them with a new design. Besides the upside of adding value, these suggestions also make your community living more enjoyable. Enjoy your Spring. n

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

“K eeping your community competitive” is the theme of this month’s community trends. As the real estate market is kicking back up and according to recent statistics, 70% of all new construction in New Jersey is either a condominium or homeowner association. It’s more important than ever that your association does all it can do to make your community as attractive and mar- ketable as possible. There are several ways to make sure potential home purchasers strongly consider buying a home in your community. Here are a few suggestions that will give you the edge to prospective homebuyers: 1. Take a survey of new homeowners to see why they choose to live in your community. It can be a simple 5 question poll and ask them to rate what were the rea- sons they chose to live in your community. Was it loca- tion, proximity to family/ work, cost, amenities, social opportunities (clubs, entertainment, sports, etc.) attrac- tiveness of community, financial health, pets. Create a summary based on your community’s survey results and share them with your local realtors. 2. It’s commonly known that the real estate inventory drives the value of resales, especially in common interest communities. The quicker homes turnover, the market value increases for all of the homes in your association. Have an “Open House”. Invite all the local realtors to tour your community. Prepare a one-page handout highlighting what sets your community apart. Include some statistics and history that the realtor can share with their clients. I would include a snapshot of the financial status along with a history of the monthly association

fees. Include any highlights that will pop out to future homebuyers, a golf course, restaurant, swimming pools, etc. These are all amenities that can persuade a buyer to purchase. If you have a golf course, inform your realtors that if they have clients looking for a golf course community that they can play a free round to get a feel for the course.

“It’s commonly known that the real estate inventory drives the value of resales, especially in common interest communities.”

3. You have one opportunity to make a first impression. Make sure all of the highly visible areas are in pristine condition. Seasonal flowers and well-manicured shrubs and vegetation go a long way, as well as freshly updat- ed signage and entrances. These are just a few ideas to keep your community ahead of the curve. I’d even suggest setting up a small commit- tee or group to work with realtors to make sure they are welcome and you appreciate them showing the available homes in your community. Again, the best way to increase the value of your home is to minimize the amount of homes for sale and the amount of time they sit on the market. n

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2018

EVENTS & EDUCATION CALENDAR

may

August

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M-100: The Essentials of Community Association Management Mercer County Community College, West Windsor Joint Manager & Business Partner Roundtable Stockton Seaview Hotel & Golf Club, Galloway

Annual Beach Party Martells Tiki Bar, Point Pleasant

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Board Leadership Development Workshop CAI-NJ, Freehold

31- 2

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Lecture Series CAI-NJ Freehold

JUNE

SEPTEMBER

5 6

6

Board Leadership Development Workshop CAI-NJ, Freehold

Homeowner Leader Roundtable TBD

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Business Partner Meet Up Iron Bar, Morristown

Manager Leadership Workshop Rossmoor Community Association, Monroe Twp.

13 12

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Lecture Series CAI-NJ, Freehold

Lecture Series CAI-NJ Freehold

M-203: Community Leadership Radisson, Freehold Business Partners Essentials Radisson, Freehold Annual Olympics Thompson Park, Monroe Twp. Senior Summit Renaissance at Manchester, Manchester Joint Manager & Business Partner Roundtable Forsgate Country Club, Monroe Twp. Dennis R. Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp. Joint CAI-NJ & PennDelVal Networking Event Logan Inn, New Hope

October

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Pre-Conference Networking Reception and Live Band After Party I-Play America, Freehold

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Annual Conference & Expo I-Play America, Freehold

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18- 20

M-100: The Essentials of Community Association Management Mercer County Community College, West Windsor

July

12- 13

NOVEMBER

1

Joint Manager/ Business Partner Roundtable TBD

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Events are subject to change

LEGISLATIVE UPDATE

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

I reported in last month’s Legislative Update column that one way for association board members and property managers to be prepared to properly discharge their duties is to stay educated and current on the ever-chang- ing laws and regulations affecting the common interest communities they serve. Of course, this preparation is also required of all association professionals, including lawyers, accountants and engineers. While it is certainly important to rely on Association legal counsel for advice in navigating and complying with the various laws and regulations that apply to the daily oper- ation of common interest communities, CAI offers many educational opportunities that also serve as important resources to our board members, property managers and other association professionals. CAI-NJ and the LAC pre- sented four informative Legislative Update sessions across the state last month. Attendance at all four exceeded our expectations, and the feedback from the attendees has been great. We even had a few elected officials attend! Educational sessions like these present important and productive opportunities for us to connect directly with our constituents, and to address their questions in a forum that benefits all who attend. In addition to the legislative update programs, CAI offers other timely educational opportunities on hot topics of the day. For instance, a topic which was discussed at these programs as well as two other sold out Community Academic Institute seminars last month (just in time for the upcoming pool season) was the new changes and regu- lations adopted by the New Jersey Department of Health dealing with Public Recreational Bathing. These new regu- lations apply to public pools and, in many instances, pools located in private common interest communities. Make sure you discuss this with your pool vendor and your legal

counsel to ensure your association is in compliance with these important rules. So, one way to keep your community competitive is to stay abreast of the ever-changing laws, regulations and pending legislation that impact the daily operation and governance of your community by taking advantage of the many educational offerings presented by CAI. Speaking of staying informed and competitive, I tuned in to a webinar last month presented by CAI-National’s

“In New Jersey approximately 1.37 million people live in 6,800 common interest communities, generating an estimated $1.8 billion dollars in housing-related services.”

Government and Public Affairs Office and learned some very interesting factoids. For instance, New Jersey is one of 8 states that has legislation pending dealing with the issue of electric vehicle charging stations; is one of 9 states with legislation pending which proposes licensure of property managers; is one of 7 states with legislation pending dealing with solar panels; and the only state with legislation addressing the nagging issue of “zombie foreclosures”. I’ve also learned that community associa- tions in New Jersey make tremendous contributions to the nation’s economy. In New Jersey approximately 1.37 million people live in 6,800 common interest commu- nities, generating an estimated $1.8 billion dollars in housing-related services. This ranks New Jersey 17th in CONT I NU E S ON PAGE 58

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2018 CAI-NJ COMMITTEES

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

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

Carol Koransky, CPA Steve Kroll Christine Li, Esq., CCAL James Magid, CMCA, LSM, PCAM Thomas Martin, Esq. Glen Masullo, CMCA, PCAM Jack McGrath Michael Pesce, PCAM Paul Raetsch J. David Ramsey, Esq. Caroline Record, Esq., CCAL Audrey D. Wisotsky, Esq.

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 Laura O'Connor 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

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

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

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

T he CAI Amicus Program is looking for your help. For years, CAI has participated in New Jersey court cases involv- ing significant community associ- ation issues. We do this through our “Amicus” or “Friend of the Court” Program. With the court’s permission, CAI files briefs in court cases advocating the interests of our members. CAI has successfully appeared in a number of important New Jersey cases, including Twin Rivers. It is important for our mem- bers to let CAI know when they are involved in, or become aware of, a lawsuit which may have an impact of general concern to the industry. We can only participate and have our views expressed when we know about these cases when they first arise. So, this is an import- ant request on behalf of both the National and Chapter Legislative Action Committees to please advise the Chapter office of any litigation involving community association issues of potential importance to the entire industry. For any such notices, please contact Larry Thomas, PCAM at (609) 588-0030 or at larry@cainj.org. n Help CAI’s Amicus Effort

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 Dan Turi 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 Steve Kroll 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.

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.

Joseph Chorba, CPA Vanessa Davenport Jessica Flynn, Esq. Dan Fusco, CMCA, AMS

Matthew Earle, Esq. Vincent Hager, CIRMS Sue Howe, CMCA, AMS, PCAM

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

President James Rademacher

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

Vice President Jack McGrath, R Members

Caroline Record, Esq., Secretary Carol Koransky, CPA, Treasurer Liz Comando, PCAM Louis Curtis, CMCA, AMS, Assistant Secretary/Treasurer 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

President, Community Associations Political Action Committee

CA-PAC FAQ’S

What is CA-PAC? Community Associations 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 federal 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.

TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO: CA-PAC, 500 Harding Road, Freehold, NJ 07728 | or visit: www.cainj.org/capac

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

AUGUST 9 , 2018 | MARTELL’S TIKI BAR REGISTRATION 4:30 PM - 8:00 PM BEACH PARTY 5:00 PM - 9:00 PM MORE INFORMATION COMING SOON! ENJOY SOME FUN IN THE SUN WHILE YOU NETWORK AND RENEW OLD FRIENDSHIPS IN THE SAND AT THE INDUSTRY’S LARGEST NETWORKING EVENT OF THE YEAR! ! !

Beach Party half page save the date.indd 1

4/5/2018 10:55:15 AM

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

More Information Coming Soon!

• Save the Date •

2018 Races for CT_half page.indd 1

4/5/2018 10:43:36 AM

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Options for Keeping Your Community COMPETITIVE In the Real Estate Market

By Steven J. Morris, P.E., R.S., NAFE, Principal, Morris Engineering, LLC ME Architecture, LLC

MA I N TA I N

R ENOVAT E

U P GR AD E

AD D

© iStockphoto.com

T he New Jersey housing market is strong, with com- munity association properties (condominiums and townhouses) being the choice of many buyers. The trend in today’s market is toward communities with more amenities and facilities. This is true in mid-rise and high- rise communities, as well as townhouse and single-family homeowner’s associations. These amenities and facilities include luxuries such as children’s playrooms, pet spas and movie theaters, as well as outdoor facilities like putting greens and barbeque and picnic areas. As intended by developers of new communities, luxury amenities make them very attractive to new buyers, espe- cially those aimed at specific demographic groups, such as children’s play rooms for young couples with growing

families. Amenities and luxury facilities as a sales tool, ben- efit new communities but can create challenges for existing communities that are trying to stay relevant and compete to attract buyers and keep their property values up. This article discusses some of the options that existing communities have when competing in this space, including: 1) Maintain the community’s existing facilities and amenities 2) Renovate or replace existing facilities and amenities 3) Upgrade existing facilities 4) Add new facilities and amenities In evaluating these options, it is important that the asso- ciation’s board assemble a team of professionals to assist them. This team is likely to include: CONT I NU E S ON PAGE 16

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OPTIONS... from page 14.

pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right. • RESERVE SPECIALIST This person will often be the Association’s Engineer/Architect. Along with the services discussed above, the Reserve Specialist can advise the Board regarding the impact that projects could have on future funding requirements. A Reserve Specialist can also discuss the use of current reserve funds for replacement of existing amenities. • ATTORNEY The Association’s Attorney will provide guid- ance to the Board regarding many aspects of discussions about community amenities, such as limitations on capital expenditures and membership vote requirements imposed by the governing documents. In addition, the Attorney would guide the Board with regard to municipal require- ments related to adding or expanding amenities. Every option for addressing community amenities, as they relate to property values, requires much consideration. The following discussion will help Boards in these considerations: Option 1) Maintain the community’s existing facilities and amenities The simplest and least expensive way for a community to maximize its existing amenities is typically to keep them

• PROPERTY MANAGER The Manager acts as the quarterback for this team, to disseminate the Board’s directions to the team and to bring feedback from the team to the Board. The Manager will also be able to advise the Board on what is being offered to perspec- tive buyers at competing communities, including a com- parison of monthly fees. • REAL ESTATE PROFESSIONAL A Realtor or Reals Estate Appraiser is qualified to help the Board evaluate the impact that choices regarding amenities may have on the value of individual homes in the community. • ENGINEER/ARCHITECT A Professional Engineer or Architect can evaluate the condition of their existing facilities and amenities and estimate costs associated with maintaining, renovating or upgrading existing ame- nities or adding new facilities. If significant upgrades or addition of facilities are being considered, an Engineer or Architect can advise on design, zoning and code related issues that will impact the project.

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well maintained and in good working order. This applies to everything from tune-ups of treadmills in the gym to painting walls in the clubhouse or lobby. Many communities have a deferred maintenance program that will pro- vide schedules for specific mainte- nance requirements. In addition, property management software can be helpful in identifying maintenance needs. Complaint logs or work order reports can be sorted to identify which amenities generate frequent complaints. This can apply to gym equipment, spas, tennis courts, club- house televisions, etc. It is important for the Board and Management to walk the property on a regular basis with an eye toward the little maintenance items that can

CONT I NU E S ON PAGE 18

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OPTIONS... from page 17.

be easily overlooked. Sometimes hav- ing a fresh set of eyes can be helpful in identifying or prioritizing needed maintenance. A manager from anoth- er property or a Realtor can be asked to walk the site and provide comments about how the community looks, with specific notes and photographs. This document can be used to develop a maintenance program. Funding for maintenance typically comes from either a deferred main- tenance fund or the operating bud- get. If a community does not have a deferred maintenance program, they should consider having one pre- pared. Adequate maintenance fund- ing should be included in the asso- ciation’s operating budget. Money spent on maintenance will typically pay dividends over time by keeping the community more attractive and functional, which will help keep prop- erty values up. All amenities on a site, including lobby/clubhouse furnishings, pool equipment, pet spa carpet, court sur- faces, etc. have a useful life. Once its useful life is reached, the component should be replaced or renovated. If not replaced at the end of its useful life, the component can become non- functional, unreliable and/or unat- tractive, all of which can impact the value of the units in the community. The association’s Reserve Study will typically include the primary ame- nities at the site. Communities with Option 2) Renovate or replace existing facilities and amenities

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poorly funded Reserves are often forced to postpone replacement of failing amenities. Failing and outdat- ed amenities can degrade property values in a number of ways 1) failing facilities are unattractive to purchasers 2) inadequate reserve funds can be a precursor to special assessments and/or increased maintenance fees, which make a unit less attractive to buyers 3) mortgage lenders are less likely to provide a loan to purchase a property in a community with inade- quate reserves. A community with well-funded Reserves will have adequate resourc-

“Adequate maintenance funding should be included

in the association’s operating budget.”

© iStockphoto.com

es available to replace or renovate amenities as they reach the end of their useful lives, which will make the units in the community more attractive to buyers. To help keep a community compet- itive, the association should maintain an up-to-date reserve study and ade- quately funded reserve accounts. Option 3) Upgrade existing facilities Upgrading existing amenities can maximize the value of existing facil- ities, while enhancing the communi- ty and increasing property values. CONT I NU E S ON PAGE 46

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2018 Joint Economic Forecast Breakfast Meeting

Tuesday, March 20, 2018 Forsgate Country Club

Staying Competitive in an Ever Changing Condo Market By Joseph Chorba, CPA, CFE, Principal Wilkin and Guttenplan, P.C.

I t’s no secret that over the past decade or so we’ve seen incredible technological innovations. That technology revolution has changed the way we work, live, communicate, travel, shop and entertain ourselves. It has changed every facet of our lives, forever. Some companies have been able to survive and thrive while others have not “changed with the times”. In 2000, the founder of Netflix proposed a partnership to the CEO of Blockbuster. The idea was that Netflix would partner with Blockbuster to run the online brand

while Blockbuster would promote Netflix in its brick and mortar locations. Blockbuster, the then movie rental giant, laughed at the idea and we all know what happened next. Blockbuster filed for bankruptcy in 2010 while Netflix is now valued at over $100 billion and continues to grow. In 1999 Toys R Us received a $350,000 fine from the US Federal Trade Commission for fail- ing to deliver online orders to its customers

during the holiday season. Rather than fix their internal issues with fulfill- ing online orders, Toys ‘R’ Us struck a 10 year deal to sell toys online with Amazon. The two companies agreed, that in exchange for becom-

“The condo industry is not unlike these other industries. The supply and demand for homes is constantly changing.”

CONT I NU E S ON PAGE 24

© iStockphoto.com

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STAYING COMPETITIVE... from page 22.

ing Amazon’s exclusive seller of toys, Toys ‘R’ Us would give up its online autonomy, with ToysRUs.com. A few years later, Toys R Us was able to terminate that agreement but the dam- age was already done. Consumers, were now used to and preferred shop- ping for toys online through Amazon. Toys ‘R’ Us never recovered and failed to make changes in their business

“The key is to be prepared to make decisions to stay competitive.”

© iStockphoto.com

model to keep up with the evolving retail landscape. Earlier this year, Toys ‘R’ Us announced it will be closing all 735 U.S. stores while the CEO of Amazon, Jeff Bezos, is one of the wealthiest people in history. There are many other stories like the Blockbusters and Toys ‘R’ Us’ of the world and they all have one very important thing in common – lack of innovation and vision. The condo industry is not unlike these other industries. The supply and demand for homes is constantly

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changing. There are not only changes to the supply and demand for the number of homes but the type of home and the geographical area also drive that demand. Right now the demand is high for units in urban areas like Hoboken and Jersey City. We have also seen the number of age restricted homes being built rise dramatically over the past ten years. So far much of the reaction to the supply and demand has come from the developers. But what happens when the baby boomers are no longer driving the demand for age restricted communities? Or what if Millenials no longer have a demand for city living? What can an asso- ciation do when the supply in their association rises and the demand for those units fall? The key is to be prepared to make decisions to stay competitive. Associations not only have to be willing to make changes to keep their units in high demand, they also have to have the ability to enact those changes. But staying competitive in the condo market doesn’t always mean having the latest and greatest. It also means being able to maintain the level of service desired by its current unit owners as well as potential buyers. The board and management play an essential role in finding what is right

for their community to make sure they stay competitive, in every way. No matter what is driving the supply and demand for your association’s units, the board and management have to be prepared to make the decisions necessary to keep the demand high. The ability to make those decisions starts with the association’s finances. Is the reserve study up to date? - Having a current study is important due to the fact that estimated useful lives and costs fluctuate. An updated study should take those fluc- tuations into account when making annual funding recom- mendations. A study that is always up to date, will give the board the information they need to plan for the future. Does the board understand the study and its recom- mendations? – It is important for the board to understand which components are included in the study and the study’s recommendations. Communication with the engineer is important. The engineer should have a clear understand- ing of the association’s needs and the board should work with their hired professionals to determine the best way to meet its short and long term goals. This may include select- ing a funding method or prioritizing certain projects. Once CONT I NU E S ON PAGE 26

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STAYING COMPETITIVE... from page 25.

the past. Boards should consult with their attorney on what changes can and should be made. Are you looking beyond the current year when prepar-

Do the association’s documents allow for certain upgrades or changes to the common elements?

that plan is developed and finalized, the board should doc- ument the decision for future boards to follow. Funding in accordance with the plan and the study’s recommendations is essential to maintaining healthy reserves. Do the association’s documents allow for certain upgrades or changes to the common elements? It is important to under- stand what the association’s governing documents allow the board to do or not do. Depending on what the documents allow, the board could consider building upgrades or chang- es to the common elements into their long term plan. Having the funds available to keep the common elements current will help keep property values competitive. Has the board considered the Radburn Bill? –The Radburn Bill was passed in 2017, which makes significant changes to the Planned Real Estate Development Full Disclosure Act regarding procedures for board members and voting. This bill may now allow boards to make certain changes to the governing documents that they had difficulty changing in

ing the operating budget? Operating budgets typically cover the subsequent fiscal year but boards should look ahead further than just that year. There are things you can do today for anticipated expenses over the next 3-5 years. Anticipating and planning for future expenses will help maintain sound financials. Plan ahead. Be prepared. Change with the times. We all heard these things many times before and they hold true to managing a condominium in the New Jersey condo market. Forward thinking boards can help keep the units in your community in high demand. Associations that plan ahead, stay ahead. n

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Service is our specialty ; protecting you is our mission ® Leadership and innovation in community association insurance With JGS, you get the benefit of our extensive experience in community association insurance. We work with the nation’s top insurers to design competitive programs that address your needs. Let us show you your options.

Your requests are welcome...

Readers of Community Trends ® can ask the Editorial Committee of the magazine for their feedback about any issue facing the community association industry. The committee is made up of legal, insurance, engineering and property management professionals with a wealth of information and experience specific to community associations.

Property | General Liability | Umbrella | Workers Comp Directors and O cers | Environmental Liability | Flood Equipment Breakdown | Automobile | Professional Insurance To learn more call 877.547.4671 or visit jgsinsurance.com

Letters and e-mails should be directed to: Jackie Oskierko CAI-NJ 500 Harding Road Freehold, NJ 07728 Phone: (609) 588-0030 Fax: (609) 588-0040 Email: jaclyn@cainj.org

Proud members of

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Jules C. Frankel Manager Education Assistance Program Community Associations Institute NJ Chapter

2018 PROGRAM Jules C. Frankel was a long time member of CAI and was a key figure in the success and growth of our chapter. Jules was President of our chapter in 2000. Jules also received the followings awards from CAI-NJ: Speaker of the Year in 2003 and Author of the Year in 2004. Jules was inducted in the CAI-NJ Hall of Fame in 2003. Jules was a staunch advocate for manager education and training and was always willing to help with seminars and industry educational programs. The Jules C. Frankel Manager Education Assistance Program (MAP) was developed to assist New Jersey managers in the common interest community industry in furthering their educational and professional development goals. The MAP provides the opportunity to any CAI-NJ manager member in good standing to apply for a scholarship. CAI-NJ will provide a fifty percent (50%) reimbursement per course to selected managers for any of the 100, 200, or 300 courses offered by CAI. More than one award may be given per applicant. CAI-NJ will be hosting the following courses in 2018:

o o o

M-100 M-203 M-100

May 31 to June 2 July 12 to July 13

Mercer Community College

Cranbury Area

October 18 to October 20

Mercer Community College

All awards must be approved by the CAI-NJ Board of Directors. Accordingly, a submission does not guarantee any applicant assistance. Awards are at the sole discretion of the CAI-NJ Board of Directors.

Please review the attached guidelines and application. If you have any questions, please contact the CAI-NJ office at 609-588-0030 or info@cainj.org

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Jules C. Frankel Manager Education Assistance Program Community Associations Institute NJ Chapter

GUIDELINES AND APPLICATION PROCESS

Award: • The MAP awards a deserving candidate $250 per course ( 100, 200 and 300 level courses) towards the PMDP course of his/her choice. More than one award may be given during a calendar year. • The Scholarship Review Group will award scholarships once per year no later than May 7 th , 2018. • Scholarships must be used for PMDP courses offered by any CAI Chapter or CAI National. The M-100 course must be in person. All other courses may be in person or online. Eligibility : • At the time of the application and the reimbursement, you must be a member in good standing with • You may be asked to provide a follow up piece that will be printed in the Community Trends magazine that summarizes your experience with the MAP and the ways that it has allowed you to advance your professional goals. CAI-NJ reserves the right to modify any content prior to print. Deadlines: • All applicants must submit entry no later than May 1 st , 2018 in order to be considered for a scholarship award. Selections will be made no later than May 7 th , 2018. Process: • Interested candidates must fill out the attached application and answer the questions for review prior to d ates. All entries must be typed and complete to avoid disqualification. Entries must be mailed to the chapter office or printed to PDF and emailed to larry@cainj.org. • Anonymous essays are evaluated and award recipients will be selected by the Scholarship Review Group. Should there be a conflict on the committee (meaning that a company representative is evaluating an entry for the same company), that committee member will remove themselves from the process and not participate in the review/selection of the candidates. Since this is an anonymous process, the Chapter Executive Director will inform the Scholarship Review Group members of the conflict. • Selected managers must submit verification of course completion to the CAI-NJ office within 30 days of conclusion of the course to receive the scholarship reimbursement. • All classes must be completed by December 31 st , 2018. To apply, visit www.cainj.org/map Chapter Contact Information Larry Thomas, PCAM ~ Chapter Executive Director the Community Associations Institute and the New Jersey chapter of CAI. • You must have attended at least 2 CAI-NJ events during the last 12 months.

500 Harding Road, Freehold, NJ 07728 Tel: 609-588-0030 | Fax: 609-588-0040 Email: larry@cainj.org

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