CAI-NJ May 2022 Community Trends

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Our May 2022 issue is our 'Keeping Your HOA in Check' edition, with all articles that can help your business or community. Please enjoy this issue and be sure to check out other issues at www.cainj.org !

May 2022 Community Trends

KEEPING YOUR HOA IN CHECK

Altayb/iStock/Getty Images Plus

In This Issue

• The New Fannie Mae and Freddie Mac Lender Questionnaire: To Answer, or Not to Answer, That is the Question! • Capital Reserves: Kicking the Can Down the Road, Don’t Do It! • Balconies • NEWCOMMUNITYALERT! Tolling the Statute of Limitations for CommunityAssociation Construction Defect Claims ....and more

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

T hank You Fo r You r Suppo r t !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

16 The New Fannie Mae and Freddie Mac Lender Questionnaire: To Answer, or Not to Answer, That is the Question! By David L. Dockery, Esq. Becker & Poliakoff, LLP 24 Capital Reserves: Kicking the Can Down the Road, Don’t Do It! By Andrew Amorosi, P.E., R.S. The Falcon Group — Engineering, Architecture & Reserve Specialists 28 Balconies By Scott Baryiewski South Shore Construction, LLC 32 NEW COMMUNITY ALERT! Tolling the Statute of Limitations for Community Association Construction Defect Claims By Martin C. Calabar, Esq. and Michael A. Calabrese, Esq. Becker & Poliakoff, LLP 36 Management Trends: Mid-Year Check Up — Keeping Your HOA in Check By Vincent Rapolla, CMCA, AMS Corner Property Management, LLC, AAMC

EXTRAS President’s Corner Looking Ahead

5 6 7 8

CAI-NJ Upcoming Events

Legislative Update

CA-PAC “Keys to the Doors” Campaign

11 13 14 17 19 19 21 25 31 33 39 46 47

Chapter Trends

F.A.S.T. CAI-NJ Olympics is Back! — Save the Date

Dennis R. Casale Memorial Golf Outing — Dinner Only Registration

2022 Webinar Wednesdays

LAC Virtual Roundtable Discussion Information Conquer + Connect Wrap-up and Photos PAC the Rooftop – Networking Event Information

Beach Party — Save the Date

Homeowner Huddle Networking Forum Information 2022 CAI-NJ Conference & Expo — Save the Date

New Members

CAI Membership Application

Manager Best Practices Roundtable Discussion and Networking Reception Registration Business Partner Best Practices Roundtable Discussion and Networking Reception Registration

57 59 60

June Lecture Series Registration 2022 Ultimate Partner Listings

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CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

PRESIDENT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

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

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

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

SECRETARY BENJAMIN BASCH AMERICAN POOL ENTERPRISES

BOARD MEMBERS

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

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

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

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Loren Lightman, Esq. Hill Wallack LLP

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

CAI-NJ TEAM

April really checked off all the boxes when it comes to what CAI-NJ stands for: ✔ Networking

ANGELA KAVANAUGH CHAPTER EXECUTIVE DIRECTOR ANGELA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, CONFERENCE & EVENTS JACLYN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS COMMUNICATIONS MANAGER BROOKE@CAINJ.ORG ROBIN SURGENT MEMBERSHIP MANAGER

✔ Advocacy ✔ Education

O ur chapter hosted some great events in April that demonstrated all of the above. Our CA-PAC hosted the Top Golf event which was a huge success. It may have not been too educational, unless you took a golf lesson, but it was great for networking and raised funds to help advocate for our members. Additionally, our Women’s Leadership Committee held its Conquer + Connect Retreat. I had the for tune of being able to attend and one word just comes to me when reflecting on the day’s events — WOW ! The powerful, impactful, and knowledgeable women in our industry ROCKED the day from start to finish. At the end of the day, I realized that I learned so much about many of my colleagues and how they got to where they are today. These stories were so inspiring not just for women, but for all the men in attendance as well. Seeing the panelists open up about where their personal drive and work ethic came from was truly uplifting. Some came from past experiences with old coworkers and others from their upbringing, watching their parents instill hard work pays off in their heads while they were growing up. I loved everything about this day and I look forward to next year! The retreat was C ollaborative, A dvocating and mostly I nstructional! The chapter also raised funds for Ukraine these past two weeks and the board matched donations received, totaling nearly $1,400! Let’s Spring Ahead into May! Take advantage of what is coming up this month! Be sure to attend our Wednesday Webinar on May 18th. For more information on our Wednesday Webinars, please visit https://cainj.org/wednesday-webinars/ Also, CA-PAC is hosting, the PAC the Rooftop - Networking Event in Asbury Park. Enjoy the nice weather, ocean air, great drinks, and networking with industry professionals, register at https://www.cai-nj.org/event-4715601 Finally, our Legislative Action Committee (LAC) is hosting a Virtual Roundtable Discussion on May 23rd. Be on the lookout for this as our NJ-LAC will be able to update you on everything they have been working on this year. You can register at https://www.cai-nj.org/event-4756569 May’s Impactful Leader Tony Nardone, MBA, PCAM, Broker of Record CEO and Founder, Corner Property Management, LLC, AAMC Tony founded Corner Property Management, LLC, AAMC in 1999. His background and education are not typical for the property management industry and it’s allowed him to build an organization that is setting a whole new standard in the industry. CONT I NU E S ON PAGE 54

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

Contact CAI-NJ

ADDRESS CAI-NJ

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

CAI-NJ on Social Media

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

@cainewjersey

CAI-NJ

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LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

I am thrilled to share that the New Jersey chapter has been awarded the Best Net Growth (7.2%) award for an extra-large chapter in the 2021 calendar year! Thank you to all our loyal members for your continued support, without which this wouldn’t have been possible to obtain. For the first time ever, our membership is over 2,600, an increase of more than 200 from last year! As a way of introducing our new members and helping them on their journey to building valuable relationships and taking advantage of all the benefits offered by the chapter, we have launched the updated Ambassador page on our website where members may access their New Member Packets, specifically geared towards their member type. Brand new to the page is the Ambassador Portal which will link new members to one of our Ambassadors who will then make a personal introduction for them to the members that they need to meet and network with. For further information visit, https://cainj.org/cai-nj-ambassadors/. Two years in the planning, the inaugural, in-person Conquer + Connect Retreat was hosted last month. The sold-out event was attended by over 150 members. The full day of professional development programming celebrated women in our industry, defining the meaning of leadership. Thank you to the Women’s Leadership Committee, the program presenters, and sponsors, espe cially Taylor Management Company, AAMC, AMO for allowing us to finally bring this event to life! Photos can be found on pages 21-23 and available on our website. https://cainj.org/envira/2022-conquer-connect-retreat/ . This month’s issue of Community Trends ® discusses How to Keep Your HOA in Check • The New Fannie Mae and Freddie Mac Lender Questionnaire: To Answer, or Not to Answer, that is the Question!, by David L. Dockery, Esq. of Becker & Poliakoff, LLP discusses the dilemma of whether to answer the required questions contained within the new

loan applications and how this will affect being granted future loans. • NEWCOMMUNITY ALERT! Tolling the Statute of Limitations for Community Association Construction Defect Claims, by Martin C. Cabalar, Esq. and Michael A. Calabrese, Esq. of Becker & Poliakoff, LLP discusses the change of the Statute of Limitations (SOL) for the filing of a lawsuit against a developer, its design professional, and sub contractors for construction defects which will not begin until the owners comprise a majority of the board. • Balconies, by Scott Baryiewski of South Shore Construction LLC discusses what to look for when inspecting your com munity’s balconies and the preventative maintenance that should be done to ensure they are safe for your residents. • Capital Reserves: Kicking the Can Down the Road, Don’t Do It!, by Andrew Amorosi, PE, RS of The Falcon Group – Engineering, Architecture & Reserve Specialists, discusses the purpose of a Capital Reserve Analysis and how properly funding the community’s reserves may avoid possible future special assessments. • The Management Trends Article, Mid-Year Check Up — Keeping Your HOA in Check by Vincent Rapolla of Corner Property Management, LLC, AAMC, gives a mid-year checklist on items for review to ensure your community is in good health both financially and operationally. What can you look forward to at the chapter this month? • The PAC the Rooftop – Networking Event on Wednesday, May 18th at the Asbury Festhalle & Biergarten in Asbury CONT I NU E S ON PAGE 58 “...the inaugural, in-person Conquer + Connect Retreat was hosted last month. The sold-out event was attended by over 150 members.”

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CALENDAR 2022 Events & Education

MAY

AUGUST

ULTIMATE Night Out Jersey Shore BlueClaws Stadium, Lakewood 18

18 18

Wednesday Webinar Virtual

SEPTEMBER Beach Party

PAC the Rooftop - Networking Event Asbury Festhalle & Biergarten, Asbury Park

15 21 29

LAC Virtual Roundtable Discussion Virtual

Martell’s Tiki Bar, Pt. Pleasant

Wednesday Webinar Virtual

JUNE

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

9 14 21

Homeowner Huddle Virtual

OCTOBER

Dennis R Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp. Lecture Series - Electric Vehicle Charging Stations Rossmoor Community Association, Monroe Twp. Joint Manager & Business Partner Best Practices Roundtable Discussion & Networking Reception Forsgate Country Club, Monroe Twp.

5 6 19 20

Wednesday Webinar Virtual

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

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

Annual Conference & Expo The Event Center @iPA, Freehold

Wednesday Webinar Virtual

JULY

NOVEMBER Wednesday Webinar Virtual 9 DECEMBER Wednesday Webinar Virtual

13 20

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

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

7 8 8

Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge

Winter Break Party Grand Marquis, Old Bridge

LEGISLATIVE UPDATE

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

A hot topic in the industry has been new underwriting requirements by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Fannie and Freddie purchase the majority of residential home mort gages originated by banks. As such, they wield incredible influence in mortgage underwriting. In the aftermath of the Champlain Towers disaster in Surfside, Florida, Fannie (See LL-2021-14) and Freddie (See Bulletin 2021-38) instituted new underwriting guidelines which came into effect on February 28, 2022. In essence, these underwriting guidelines require lenders to determine whether condominiums and cooperatives have “significant deferred maintenance,” “unsafe conditions,” “material defi ciencies,” violations issued by governmental authorities, and “adequate reserves.” In the event that a property has any of those adverse conditions, loans for units at the property will not be eligible for purchase on the secondary market by Fannie and Freddie, which essentially means that purchasers will have great difficulty in obtaining traditional loans. In addition, lenders are attempting to fulfill Fannie and Freddie’s requirements through the use of mortgage loan questionnaires which essentially ask the common interest community (“CIC”) whether it has any of the prohibited conditions in a “yes or no” manner, possibly creating legal exposure for the CICs, boards, and managers. The Legislative Action Committee (LAC) believes that the new underwriting guidelines are misguided in as much as building safety should be addressed through manda tory inspection, reserve funding, and safety legislation as opposed to through mortgage questionnaires. Furthermore, the Fannie and Freddie standards are not well defined, open to interpretation, and demand that CIC boards and managers predict whether future governmental violations

will be issued. Finally, the impact on “banned” CICs could be devastating and may further worsen the conditions of those that are struggling structural and other issues. Accordingly, CAI’s Government and Public Affairs Committee has requested that Fannie and Freddie re-ex amine the issue and reverse the implementation of the guidelines until further study and discussion can occur, and to give states’ an opportunity to pass appropriate safety “The LAC believes that the new underwriting guidelines are misguided in as much as building safety should be addressed through mandatory inspection, reserve funding, and safety legislation...” legislation, and issued a letter on February 17, 2022, to Fannie and Freddie setting forth its position which can be found on CAI’s website. In addition, the CAI’s NJ-LAC has made this issue a priority and its Fannie/Freddie task force is in the process of preparing similar letters for presentation to Fannie and Freddie. In addition, with the assistance of our lobbyists, the LAC will seek interaction with key state and federal officials to present the compelling case against these under writing guidelines, especially in light of the comprehensive building safety legislation that our building safety task force has prepared and is in the process of discussing with law makers and stakeholders. For more in-depth information on this important topic, please see the article by David Dockery, Esq. on page 16. n

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2022 CAI-NJ COMMITTEES

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

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

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

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

Jeanine Clark Drew Cowley Kim Dempsey Rebecca Gavin Craig Gotilla

David Dockery, Esq. Jonathan Katz, Esq. Michael Mezzo, CPA, MBA Steven Morris, PE, RS Casey Sky Noon Drew Podolski, Esq. Robert Roop, PE

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

Dan Jazwinski Lila Khiry Cirillo Christine Maldonado

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

Michael Ryan Sean Stevens Larry Thomas, PCAM Board Liaisons: Mary Barrett, Esq.

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent LEGISLATIVE ACTION COMMITTEE (LAC)/PAC Matthew Z. Earle, Esq. — Chair Edward San George, PCAM — Vice Chair Jackie Thermidor, CMCA, AMS, PCAM — Secretary Joseph Chorba, CPA — Treasurer Elizabeth Comando, CMCA, PCAM — PAC President

Jeffrey Logan Staff Liaison:

Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Jessica Baker, Esq. — Chair Steven Kuhnert — Vice Chair Jonathan Cairone Chelsea Donnigan Eric Eggert, CIRMS Shelby Evans, CPA, CMCA

Thomas Asciolla Theresa Beckett Jordan Burkhalter Jennifer Carr George Caso Martinez Carrie Fusella Michael Kaminski Terry Kessler, Esq.

Andrew Podolski, Esq. — Vice President James Rademacher — PAC Committee Jennifer Alexander, Esq. Roslyn Brodsky Barbara Drummond, CMCA, PCAM

Kristi Evans Jessica Long Will Meola Matt Rahn Jose Romero Dharmi Shah Peter Shine Erica Taras

George Greatrex, Esq. Vincent Hager, CIRMS Mitchell Frumkin, RS Karyn Kennedy-Branco, Esq. J. David Ramsey, Esq. Lisa Rayca, CMCA, AMS John Reichart Alexander Scheffer, CMCA Carol Shenk Board Liaisons: Steven Mlenak, Esq. Robert Travis Staff Liaisons: Angela Kavanaugh Robin Surgent Richard Milder Cheryl Palent

Toni Licciardi Michael Luzzi Kim Manicone Donna Meyer Darric Mitchell Ben Mitrou Jason Sponzilli Perry Stavridis Jessica Vail Michael Vennitti Board Liaisons: Benjamin Basch

Lauren Vadenais Kristy Winchock Board Liaisons: Benjamin Basch Kristina Munson, CMCA, AMS, PCAM Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent

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

GOLF COMMITTEE Ross Rutman — Chair Fred Hodge — Vice Chair Chris Belkot

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

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

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

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

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent

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CAI-NJ 2022 PARTNERS

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

Alliance Association Bank Ansell Grimm & Aaron, PC Associa Community Management Corp., AAMC Becker BELFOR Property Restoration Brown & Brown Insurance of Lehigh Valley C&L Services Pavement Maintenance Corner Property Management, AAMC

Denali Property Management, Inc. The Falcon Group - Engineering, Architecture & Reserve Specialists

Technocality, Inc. WilkinGuttenplan

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

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

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

Lemus Construction, Inc. L.N. Rothberg & Son, Inc. Mackoul Risk Solutions, LLC Morris Engineering, LLC National Contractors, Inc. National Cooperative Bank One Call Roofing & Siding

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

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

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

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

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

Lawley Services, Inc. MyPropertyBilling.com Radom & Wetter

YOUR NJ-LAC & CA-PAC WORKING HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

Walk the halls of our capitol in Trenton and you see a lot of doors… doors to legislator’s offices… doors to committee rooms… doors to the Assembly and Senate chambers. It takes a lot to get through those doors. You’re not just invited in. You need a key. With a key you’re taken seriously. With a key, you get things done. THAT’S WHY CAI-NJ CARRIES THREE KEYS: • Your Legislative Action Committee (NJ-LAC): Your key eyes, ears, legs and voice in the legislative process. • Your Political Action Committee (CA-PAC): Your key contributions to support elected officials who aim to strengthen your community. • Your Professional Lobbyists: Your key, full-time pros retained by the LAC who know government’s ins and outs, advise us on who to see and when, and how to connect . WHAT CAN YOU DO?: • Take Action – Your voice is key! After meeting with elected officials and clarifying our position on pending legislation, we will alert you to the most crucial actions you can take. By calling or writing your officials, you ensure that your voice, and our agenda, is heard. • Give – Your donations are key! Supporting the PAC with your donations shows legislators that you’re serious, and that our cause counts. • Promote – Your personal influence is key! Talk about CAI-NJ’s legislative engagement in your community and business. Let fellow residents know that we’re fighting for them and their communities!

The keys only work with your support.

Make your gift to the CA-PAC today!

Yes, I’d like to support CA-PAC with a pledge!

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

I AM A...

____ Community Association Manager. You represent a company or association who manages CAI-NJ communities.

____ Community Supporter. You represent a business that supports CAI-NJ communities with services or products.

____ Community Resident. You live in a CAI-NJ community and want to see it grow strong.

My Association/Management company is making a PAC gift of:

___ $250 ___ $500 ___ $1000 or $________

___ $100 ___ $250 ___ $500 or $________

My supporting business is making a PAC gift of:

I am personally making a PAC gift of:

___ $50 ___ $100 ___ $250 or $________

Community/Company: ________________________________________________________________________________________________ Individual Name:_____________________________________________________________________________________________________ MailingAddress:______________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________ Phone:_________________________________________________________Fax: ________________________________________________ Email:________________________________ Occupation:______________________ Employer:_____________________________________ Employer Address:___________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________

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

Management Company Name: _________________________________________ (Community Association’s Only)

DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS

The New Jersey Election Law Enforcement Commission requires us to collect and report the name, mailing address, occupation and name of the employer of contributors whose contribution exceeds $300 in a calendar year. Contributions to CA-PAC are not deductible for federal income tax purposes. Contributions are not limited to suggested amounts. CA-PAC will not favor nor disadvantage anyone based upon the amounts or failure to make PAC Contributions. Voluntary political contributions are subject to limitations of ELEC regulations. CA-PAC contributions are not considered payment of CAI dues. TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO : CA-PAC, 500 Harding Road, Freehold, NJ 07728

CHAPTER TRENDS Vincent Rapolla Joins Corner Property Management, LLC, AAMC as Regional Director Corner Property Management, LLC, AAMC is pleased to announce the addition of Vincent Rapolla as Regional Director. Vincent has been in the Condo/HOA/Coop industry for over 17 years. During this time, Vincent has worked in many aspects of the industry. Beginning his career as an Administrative Assistant, then moving to Portfolio Property Manager, High Rise General Manager, Director of Operations and Now Regional Director for Corner Property Management. Vincent has had the opportunity to manage some of the most prestigious communities in the state of NJ. Vincent is an AMS (Association Management Specialist) and will be completing his PCAM (Professional Community Association Manager) in the coming months. Vincent chairs the Community Association Institute-Management Committee and is an active contributor to CAI Community Trends ® and the New Jersey Cooperator Magazines. Vincent has held various licenses in property management such as the boiler black seal license and real estate license to name a few. He has also participated on SID (Special Improvement District) Board of Directors and has volunteered on his own community association finance committee. Vincent shares a passion for the industry and will make a great addition to the growing Corner Property Management team. Dan Nugent Joins the Corner Property Management, LLC, AAMC Team as a Community Association Manager Corner Property Management, LLC, AAMC is pleased to announce Dan Nugent as Port folio Community Association Manager. Dan has been managing associations in the Condo/HOA industry for over eight years and has managed both COA and HOA’s in New York and New Jersey. In addition to winning multiple awards for his management skillset, Dan was also part of

the Emerging Leaders program and is bringing that leader ship to Corner Property Management. Prior to joining the community association industry, Dan spent over 15 years in different areas of the real estate industry. He Initially started his career as a realtor before moving to a financing role as Vice President for a Federal Mortgage Lender. Dan has been involved in all aspects of the real estate service profession, with a vast knowledge of the industry. Dan has held a Real Estate Broker License and will be completing his CMCA (Certified Manager of Community Associations) in the coming months. Dan’s commitment and knowledge in the industry will make a great addition to the growing Corner Property Management’s team. Congrats to Jacqueline DiPasquale — Coordinator for the PS&S, LLC Social Engagement Committee! PS&S, LLC would like to congratulate Jacqueline DiPasquale of our Marketing Team for accepting the role as Coordinator for the PS&S Social Engagement Committee! Since the pandemic, PS&S has truly missed attending team build ing events such as bowling nights, baseball games, happy hours, lunchtime BBQ’s, etc. The past two years have amplified our already-instilled value of having strong social engagement among our employees. These years arose the need for representation from each region of our fast-growing company and some one to lead the effort, ensuring that engagement occurs on a local, regional, and national level. Working closely with our Talent Management Team, Jacqueline will lead the committee to organize social events, creating both professionally and socially rewarding opportunities for greater employee social engagement and involvement in the Community Association industry. We are so looking forward to implementing exciting, thought ful, and unique ways to connect as we continue growing across the country! CONT I NU E S ON PAGE 14

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CHAPTER TRENDS... from page 13.

expertise and assisting with all 10 of Falcon’s offices. The dedication he’s shown throughout his career in unlocking business potential is invaluable to this next chapter with the Falcon Team. Welcome to the team Clif! n

We are excited to announce to the Falcon Team our New Chief Financial Officer, Clifton McElyea! Clif brings 20+ years of experience in progressive lead ership roles, including serving as CFO of a major provider

Chapter Trends Editorial Guidelines

• All submissions must come from and be about: - A member of CAI-NJ (Manager, Management Company, Board Member, Business Partner or Business Partner Employee) in good standing. • Companies/Communities are permitted four (4) announcements per calendar year. • Submissions are limited to 150 words. - Members are responsible to condense the information appropriately, as CAI-NJ will not do so. Any submissions over 150 words will not be published. • Submissions may include (1) image. • Submissions should not be advertorial in nature. Please note, CAI-NJ reserves the right to edit any submissions. The chapter reserves the right to omit information as necessary. CAI-NJ has the exclusive right to refuse to publish any submissions for any reason. For questions regarding the Chapter Trends section of Community Trends ® , please contact brooke@cainj.org or 609-588-0030.

of advanced technology solutions across the federal, state, municipal, commercial, and petrochemical refinery markets, and extensive experience with A/E firms. He has a wide technical accounting foun

dation with experience in public accounting, US GAAP, controls, reporting, systems, FP&A, corporate development, and treasury and strong penchant for building consensus, creating effective relationships, and negotiation skills. Clif is passionate about solving dynamic problems with creative solutions and will be responsible for driving the company’s overall financial strategy, including growth plans as we continue to expand our footprint. He will be playing an important role building a strong finance team with deep

OLYMPICS IS BACK!!

WEDNESDAY, JULY 13TH

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

Stay tuned for additional details, coming soon!! https://www.cai-nj.org/event-4722883

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To Answer, or Not to Answer, That is the Question! By David L. Dockery, Esq., Becker & Poliakoff, LLP

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by-studio/iStock/Getty Images Plus

P rompted by the Champlain Towers Condominium collapse in Surfside, Florida, the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) recently issued new temporary requirements as an attempt to mitigate risk in community association loan underwriting. Many other industries within the community association world, such as insurance, have adjusted costs and guidelines in an effort to mitigate risk due to the unprec edented tragedy.

CONT I NU E S ON PAGE 18 The new requirements have created significant mur murings, considering that as of 2020, Fannie Mae and Freddie Mac own approximately sixty-two (62%) of con forming loans in the United States. 1 According to Dawn Bauman, CAI’s Senior Vice President of government and public affairs, “70% of all condo loans in the U.S. are [backed by] Fannie Mae or Freddie Mac. 60% to 70% of all condo complexes are more than 30 years old.” 2 Both Freddie and Fannie do not lend money directly but are guarantors of third-party loans and purchasers of loans

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Dinner Only Registration Form

Tuesday, June 14, 2022 Forsgate Country Club

375 Forsgate Drive | Monroe Twp., NJ Cocktails at 6:00 pm| Dinner at 7:00 pm

DINNER ONLY REGISTRATION FORM 1. Name ________________________________________ Company Name _______________________________ Address ________________________________________ City, State, Zip __________________________________ Phone _________________________________________ Email ________________________________________ 2. Name _______________________________________ Email ________________________________________ 3. Name _______________________________________ Email ________________________________________ 4. Name _______________________________________ Email ________________________________________

Dinner/Cocktail Hr.

$115.00 per person

Total: ________________ Mail completed form and payment to: CAI-NJ, Attn: Dennis R. Casale Memorial Golf Outing, 500 Harding Rd., Freehold, NJ 07728 Pay by credit card. Cardholder Name _____________________________ Card Number _________________________________ Exp. Date ______________ Sec. Code ____________ Signature ____________________________________ *Cardholder acknowledges receipt of goods and/or services in the amount of the total shown hereon and agrees to perform the obligations set forth in the cardholder’s agreement with issuer.

By registering for a CAI-NJ event, the registrant acknowledges that they are responsible to pay the full registration fee at the time of registration. Registrations will not be processed until all previous outstanding balances are paid in full. Cancellations must be made by June 1, 2022 for a refund to be provided. Swaps can be made at any time.

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

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FANNIE MAE... from page 16.

Fannie Mae and Freddie Mac, is that Fannie Mae buys mortgages from larger commercial banks, while Freddie Mac buys from smaller banks. When a potential unit owner either purchases a unit within a community association, or decides to refinance, a lender will originate and fund the loan, but typically with the intent of selling the loan to either Fannie Mae or Freddie Mac. The lender therefore must meet their underwriting require ments in order for the loan to be deemed eligible. Many homeowners are unaware of these types of trans actions on the secondary mortgage market since the bank which originat ed the loan remains what is deemed the “loan servicer”. Community association property managers and attorneys have come to know the lender questionnaires that

associations are asked to complete so a lender has sufficient documenta tion to sell the loan to Fannie Mae or Freddie Mac. There are, of course, other guarantors of loans, such as the Federal Housing Administration (“FHA”), which requires a project cer tification every three years, in order to qualify. Opposed to the FHA practice of maintaining an Internet accessible list of eligible projects, the new Fannie Mae and Freddie Mac requirements create a private database, which is only available to lenders, of communi ty associations that are deemed ineli gible. Among other things, disqualifi cation from Fannie Mae and Freddie Mac can be due to community asso ciations with significant maintenance or unsafe conditions, special assess ments, insufficient reserve funding, or no reserve study. Many may wonder why this a big deal, especially if they believe their association is maintained properly. While that may be the case, the new guidelines now require lenders to obtain written answers to questions concerning building safety, sound ness, structural integrity, and habitabil ity, which were never part of previous lender questionnaires. Most of these questions cannot be answered by the association since the board and its manager are simply not qualified to give such an opinion, meaning they lack the requisite legal and engineer ing expertise. While many states, including New Jersey, have legislation pending to require scheduled structural inspec tions, many associations have not

in the secondary mortgage market. Unfortunately, the new requirements are exceedingly difficult to meet as now articulated. Before discussing the requirements, a brief outline of Fannie Mae’s and Freddie Mac’s importance to the res idential mortgage market may be helpful. Chartered by Congress, and now under the conservatorship of the Federal Housing Finance Agency (“FHFA”), Fannie Mae and Freddie Mac are government-sponsored enter prises (“GSE”), quasi-governmental entities with the purpose of enhancing the flow of credit to mortgage lenders, providing liquidity, stability and afford ability to the U.S. housing market. The primary difference between

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Presented By

SAVE THE DATE

LAC VIRTUAL ROUNDTABLE DISCUSSION Monday, May 23, 2022 12:00 pm to 1:30 pm

www.cainj.org Register now!

MEMBERS FREE

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FANNIE MAE... from page 18.

the “postponement of normal maintenance, which cannot reasonably be resolved by normal operations or routine maintenance, which may result in advanced physical deterioration, lack of full operational efficiency, increased operating costs, and decline in property value.” 5 On the other hand, in the community association industry, the presumption is that “deferred maintenance” refers only to non-capital maintenance that occurs less frequently than annually and is not funded for through the capital reserves. Also, such funding of deferred maintenance projects can come from a specially partitioned fund. Fannie Mae and Freddie Mac do not consider routine maintenance, non-capital improvement projects, or repairs isolated to a few units significant deferred maintenance. Generally speaking, the vagueness and misunderstanding of the ques tionnaire’s definitions could lead to a host of issues. Asking an unqualified board or manager to make rep resentations about the structural integrity of the property, combined with further misunderstandings between the community association and lending industry may incur unnecessary and inadvertent legal liability, regardless

undertaken structural reviews of its properties, particularly on a property-wide basis. A typical reserve study does not undertake structural review or analysis. Even if it has, the questionnaire further asks the association to summarize its findings and make representations about the structure of the building, which can usually only be answered by a professional engineer or architect. The new lender questionnaire, as contained in Fannie Mae Form 1076 3 or Freddie Mac Form 476, 4 requires, among other things, that associations make representa tions concerning structural inspections and deficiencies, anticipated municipal building violations, funding plan for “deferred maintenance” items, current assessments, and future assessments. Indeed, the definition of deferred maintenance, as it is known to Fannie Mae and Freddie Mac, departs significantly from what the industry has come to know as that term. For example, Fannie Mae and Freddie Mac generally defines deferred maintenance as

CONT I NU E S ON PAGE 50

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