CAI-NJ Nov. 2021(w)

November 2021 Community Trends

®

STRUCTURAL

INTEGRITY

Tetiana Mykhailenko/iStock/Getty Images Plus

In This Issue

• Financial Health Check: HowDoes My Replacement Fund Stack Up? • Benefits of a Tax Appeal for NewJersey Property Owners • Insurance: Directors and Officers and Liability Coverages • Coming Attractions • Condominium Safety Public Policy Status Report ....and more

The Community Associations Institute New Jersey chapter would like to thank its 2021 Ultimate Partners below. For more information on our sponsorships, please contact CAI-NJ at 609-588-0030 or info@cainj.org.

Becker & Poliakoff, LLP

T hank You Fo r You r Suppo r t !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

15 Financial Health Check: How Does My Replacement Fund Stack Up? By Michael Mezzo, CPA, MBA WilkinGuttenplan 28 Benefits of a Tax Appeal for New Jersey Property Owners By Keith A. Loughlin, Esq. Hill Wallack LLP 35 Insurance: Directors and Officers and Liability Coverages By Paul Felsen Felsen Insurance 40 Coming Attractions By Robert N. Roop, P.E. Lockatong Engineering, Inc. 48 Condominium Safety Public Policy Status Report By Dawn Bauman, CAE Community Associations Institute 50 Management Trends:

15

28

Is There a Post-Covid Normal? By Ray Barnes, CMCA, AMS, PCAM Associa Mid-Atlantic — King of Prussia, AAMC

35

EXTRAS President's Corner

5 6 7 8

40

Looking Ahead

CAI-NJ Winter Break Party Registration

Legislative Update

Chapter Trends

10 10 13 22 27 32

CAI-NJ Upcoming Events

CA-PAC “Keys to the Doors” Campaign

Beach Party Wrap-up & Photos

48

F.A.S.T. Adopt A Family

2022 CAI-NJ Partnership Program Ultimate Night Out Wrap-up & Photos 37 2022 CAI-NJ Awards Celebration Call for Nominations 41 CAI-NJ Career Headquarters 47 New Members 56 CAI Membership Application 57 2021 Ultimate Partner Listings 58 2022 CAI-NJ Online Directory Form 65

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Getty Images

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CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

PRESIDENT ELECT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

PRESIDENT LOREN LIGHTMAN, ESQ. HILL WALLACK LLP

VICE PRESIDENT TONY NARDONE, MBA, PCAM CORNER PROPERTY MANAGEMENT, AAMC

TREASURER CHRISTOPHER NICOSIA, CMCA, AMS, PCAM PRIME MANAGEMENT, INC., AAMC

SECRETARY BENJAMIN BASCH AMERICAN POOL ENTERPRISES

BOARD MEMBERS

Mary Barrett, Esq. Stark & Stark Business Partner Vanessa J. Davenport Regency at Quailbrook Homeowners Association Homeowner Leader Ryan Fleming JGS Insurance Business Partner

Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader Steven Mlenak, Esq. Greenbaum, Rowe, Smith & Davis, LLP Business Partner Kristina Munson, CMCA, AMS, PCAM RCP Management Company, AAMC, AMO Community Association Manager

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Jennifer Nevins, CMCA

DW Smith Associates, LLC, a subsidiary of PS&S, LLC

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PRESIDENT’S CORNER Loren Lightman, Esq. CAI-NJ 2021 PRESIDENT HILL WALLACK LLP

CAI-NJ TEAM

“November: The last month of autumn, but the beginning of a new adventure; time to take a risk and to the unexpected.” — Unknown

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

New Adventures and the Unexpected As we start to think of new adventures and the unexpected, 2022 is fast approaching upon us. With that comes two upcoming deadlines with respect to the new year — the chapter is now taking nominations for our 2022 Awards Dinner, which the deadline is Wednesday, December 1, 2021. To enter your submissions please visit the link at https://cainj.org/awards-nominations/. We are also now accepting registrations for the chapter’s 2022 Partnership Program, which the deadline for submissions is Friday, December 10, 2021. Please see the link at https://cainj.org/partnership/ for further information. The Board of Directors thanks all of our partners for their continued support of our chapter and looks forward to another productive year in 2022! Ongoing Event Schedule October was a busy time for chapter events. Of special significance was holding the Annual Conference & Expo live and in-person once again. It all kicked off with the Pre-Conference Networking Reception on October 20th at iPlay America, which was sponsored by Hill Wallack LLP. It was a wonderful way to start the Annual Conference & Expo and a great time was had by all who attended. The following day, attendees had the opportunity to visit the many exhibitor booths and take part in the educational components – a highlight of which was the Legislative Action Committee (LAC) update which provided up-to-the-minute insight on a multitude of pending laws and regulations impacting our industry. There were also presentations on the important topics of insurance, reserves and conducting associa- tion board elections by electronic means. I would like to extend a special thank you to the principal sponsor of the 2021 Annual Conference & Expo, G&C Electronics. The chapter’s alternative dispute resolution (ADR) program has been so successful that it has precipitated a need for additional mediators to hear cases referred to ADR. That need was addressed by the in-person mediator training that took place on October 28th at the Law Offices of Hill Wallack LLP. The training resulted in an additional group of mediators ready to hear cases referred to the CAI-NJ ADR Program. Thank you to all who participated in the training and we look forward to extending the program to more members seeking to partake in this popular program. Structural Integrity The theme of this issue is “Structural Integrity”. Events of the past year have brought these issues to the forefront of pending legislative and regulatory initiatives on both the

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

CONT I NU E S ON PAGE 64

LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

Pass the turkey, please!

A s we all know from our history, the first Thanksgiving took place in 1621, when the Pilgrims and Native American Indians sat down together in celebration of the harvest, putting aside their differences, and feasting on the bounties of food before them. It was a time of recon- ciliation and being appreciative of what they had. The his- torical legend continues to report that fowl was feasted on which could have been turkeys, chickens, geese, ducks, or any other large bird. So why is the turkey our Thanksgiving mascot? Fast forward to 1827 when American writer, Sarah James Hale, so-called, “Mother of Thanksgiving:”, became obsessed with establishing the day of Thanksgiving as the second national holiday, matching the importance of Independence Day. In a novel, she introduced the turkey as its star. Over the years she lobbied, writing to five presidents and in 1863, President Lincoln encouraged Americans to observe the last Thursday of November as a day of thanksgiving to unify the country. Years later in 1941, the U.S. Senate and House of Representatives and President Franklin Delano Roosevelt established Thanksgiving as a legal holiday. For me, Thanksgiving Day is the beginning of the holiday season. It’s a day of reflection on how fortunate I am. A day to spend with people that I love, and the only gifts shared are the time and memories that we make. This year in par- ticular, I’m remembering those that we have lost and cannot be with us, holding them near and dear to our hearts. I am also very thankful for all the CAI-NJ members that have faith in the organization, the dedicated CAI-NJ Board of Directors, our devoted Legislative Action Committee, the 200 volunteers that make up our committees, and the amazing CAI-NJ Team. Thank you everyone for making our chapter the best that it can be, providing exceptional education and resources, fun networking events, and advo- cating for those living in common interest communities!

Coming up this year. On December 9th, we will be hosting the Annual Meeting for all 2022 committee mem- bers followed by a new event, open to all CAI-NJ mem- bers the Winter Break Party held at the Grand Marquis in Old Bridge. I hope that you will join us as we close out the year, celebrating with all of you. Please pre-reg- ister at, https://www.cai-nj.org/event-4500040. Giving Back this Holiday Season. The F.A.S.T. Committee will once again, be adopting multiple families in need, through Interfaith Neighbors, to ensure that those fami-

“I am also very thankful for all the CAI-NJ members that have faith in the organization...”

lies can enjoy the holiday season. Please consider supporting the Adopt-A-Family campaign this year. Further information can be found at https://www.cai-nj.org/event-4532077. Save the dates. Plans for 2022 events are already underway. Please mark your calendars as information will be available soon. • Thursday, February 24, 2022 — Annual Awards Celebration • Wednesday, April 6, 2022 — Women’s Leadership Retreat • Tuesday, June 14, 2022 — Annual Golf Outing • Wednesday, October 19, 2022 — Annual Pre-Conference Networking Reception • Thursday, October 20, 2022 — Annual Conference & Expo Wishing all of you a healthy and happy Thanksgiving! n

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THURSDAY, DECEMBER 9, 2021 | 5:00PMTO 8:00PM THE GRANDMARQUIS 1550 ROUTE 9 SOUTH, OLD BRIDGE, NJ Registration Form

Payment Methods: 1. Pay by check, payable to CAI-NJ. Mail completed form and payment to:

Name/Designation: 1. ____________________________________ Company: ______________________________________________ Address: _______________________________________________ City, State, Zip: __________________________________________ Phone: ________________Email: ____________________________ ______ Tickets (per person). See below for pricing: Note: Ultimate Partners receive 4 tickets. Elite Partners receive 2 tickets. Premier Partners receive 1 ticket. Register by: Early After 11/12 or On-site CAI-NJ Members: $105 $115 Non-Members: $125 $135 Please list the name, company, designation and emails of additional registrations. 2. Name:__________________________________________________________ Email:___________________________________________________________ 3. Name:___________________________________________________________ Email:___________________________________________________________ 4. Name:___________________________________________________________ Email:____________________________________________________________ COVID WAIVER

CAI-NJ, Attn: 2021 Winter Break Party 500 Harding Road, Freehold, NJ 07728

2. Pay by credit card: Cardholder Name: _______________________________________ Card Number: __________________________________________ Exp. Date: ____________________ Sec.: _____________________ Signature*: ____________________________________________ Billing Address: _________________________________________ City, State, Zip: _________________________________________ *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. PLEASE NOTE: ALL PARTICIPANTS MUST FILL & SIGN OUR COVID RELEASE WAIVER. IF YOU ARE REGISTERING MORE THAN ONE PERSON, EACH REGISTRANT ATTENDING MUST FILL & SIGN SEPARATELY. 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 December 3rd, 2021 for a refund to be provided, swaps can be made at any time.

TOTAL: $ _________________

For more information or to submit registration, contact jaclyn@cainj.org or fax (609) 588-0040. *CAI-NJ advises that for training, marketing or other purposes, this event may be recorded, videotaped and/or photographed. By attending this event, the registrant(s) consents to the use of his/her image by CAI-NJ and agrees to waive any claim for the use of his/her image, including without limitation, the appropriation of his/her image for commercial purposes or the invasion of his or her privacy.

LEGISLATIVE UPDATE

GEORGE GREATREX, ESQ. PARTNER, HILL WALLACK LLP LEGISLATIVE ACTION COMMITTEE CHAIR

A long with CAI National’s Government and Public Affairs Committee and many CAI LAC committees around the country, your New Jersey Legislative ction Committee convened a Task Force on the Structural Integrity and Inspections of condominium buildings in our state shortly after the tragic collapse of the Champlain Tower South Condominium in Surfside, Florida. Our Task Force is populated by members from various disciplines within our industry, including structural engineering, com- munity management, reserves, law, insurance and finance. It is capably chaired by Ed San George, MPA, PCAM, a member of your LAC and President of Integra Management Corp. Ed serves as a liaison to the Federal Task Forces described by Dawn Bauman in her article in this month’s issue of Community Trends ® and has been holding frequent meetings of our state’s Task Force since its inception in July. I spoke to Ed recently about the goals of the NJ Task Force and what progress they’ve made in reaching those goals. Here’s some of what we discussed: George Greatrex, Esq.: What are the goals of Task Force? Ed San George, MPA, PCAM: Our goals are to provide legislative input, member guidance and education, and tech- nical expertise in the area of building inspections and structural integrity for the benefit of CAI members. George: What will be the first output document of the Task Force? Ed: We will issue draft legislation for review by the LAC and legislative sponsors addressing the need for building inspections and documentation at completion of new build- ing construction. George: Will inspections be mandatory for certain types of buildings?

Ed: Mandatory building inspections will be required for all residential buildings constructed of structural concrete, structural steel, and heavy timber in which the structure is a part of the common elements. George: Who will be conducting the inspections? Ed: A local municipal building inspector ( if a licensed pro- fessional engineer) or a professional engineer hired by a condominium corporation or building owner. George: Is there a proposed frequency for the building inspections? Ed: Yes. For new construction, the first inspection shall be conducted at the latest when the building is five (5) years old. For buildings older than 10 years, the first inspection shall take place within 2 years. The purpose of the first inspection is to act as a baseline for future inspections. The study will establish a recommendation for the next periodic inspection. Periodic inspections after the first inspection shall take place every 10 years for the first 20 years since construction and five (5) years thereafter unless the prior inspection recommends sooner. The purpose of the periodic inspections or reinspec- tions will be to monitor progressive deterioration based on a comparison to the most recent prior inspection and to identify issues of immediate concern as well as any recommendations during the interim for the next periodic inspection. George: If there is an emergent situation with the structure in any interim time period, what then? Ed: The legislation will mandate that an inspection and report be conducted, immediately. George: What will be included in the report? Ed: The scope, protocol and standard guideline for these inspections can be found in the ASCE Standard SEI/ASCE CONT I NU E S ON PAGE 60

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2021 CAI-NJ COMMITTEES

AWARDS COMMITTEE Michelle Gadaleta — Chair Mary Visco — Vice Chai r

EDITORIAL COMMITTEE Michael Mezzo — Chair Carol Shenk — Vice Chair Robert Arnone, CMCA, AMS Martin Cabalar, Esq. Don Cabrera, CMCA Neeraj Chander Melissa Lathrop, RS Nicole Martone, CMCA, AMS, PCAM Steven Morris, PE, RS Drew Podolski, Esq. Robert Roop, PE Michael Ryan

HOMEOWNER LEADERS COMMITTEE Roslyn Brodsky — Chair Traci Benish

MEMBERSHIP COMMITTEE Kathleen Radler — Chair Nichole Gist — Vice Chair Tara Baldwin, CPA Lysa Bergenfeld, Esq. Roslyn Brodsky Megan Elgard Nikolaos Haralambopoulos, CPA Shannon Hill Debra Rizzi Steve Roderick Ken Shah

Jeanine Clark Drew Cowley Lindsay Cupples Kim Dempsey Annie Gonzales Kari Prout, CMCA Peter Shine Eileen Szelewicki, CMCA Sandi Wiktor Board Liaisons: Loren Lightman, Esq. Jeff Logan Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE Jessica Vail — Chair Lisa Wagner — Vice Chair

Salvatore Gurriero Vonetta Hawkins Richard Lans Deana Luchs Cheryl Palent Howard Straum Robert Travis, CIRMS Board Liaisons: Vanessa J. Davenport

Amy Shorter Mark Siwiak Briana Walsh Board Liaisons: Charles Lavine Steven Mlenak, Esq.

Charles Lavine Staff Liaisons: Jaclyn Oskierko Robin Surgent LEGISLATIVE ACTION COMMITTEE (LAC)/PAC George Greatrex, Esq. — Chair Matthew Earle, Esq. — Vice Chair Joseph Chorba, CPA — Treasurer Michael Pesce, PCAM — Secretary Elizabeth Comando, CMCA, PCAM — PAC President

Larry Thomas, PCAM Charles Witczak, PE Board Liaisons: Mary Barrett, Esq. Benjamin Basch Staff Liaison:

Staff Liaison: Robin Surgent NETWORKING EVENTS COMMITTEE

Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Nicole Miller, Esq. — Chair Jessica Baker, Esq. — Vice Chair Chelsea Donnigan

Thomas Asciolla Theresa Beckett Jose Elvir Carrie Fusella Dawn Kearney

Freedom Hildreth — Chair Daniel Reilly — Vice Chair Cathy Brennan Dean Catanzarite Diane Cody, CMCA, PCAM Rhett Cowley Janice Ellery Gary Gleitman Pam Illiano Richard Lang Jessica Marvel Debbie Pasquariello, CIRMS Kasey Ronan

Paul Raetsch — PAC Vice President James Rademacher — PAC Committee Barbara Drummond, CMCA, PCAM A. Christopher Florio, Esq. Eric Frizzell, Esq.

Eric Eggert Kristi Evans Shelby Evans, CPA, CMCA Ashley Gray, CMCA

Terry Kessler Toni Licciardi Mike Luzzi Kim Manicone Jill Nappi Herman Shauger David Velasco Michael Vennitti Gregory Vinogradsky

Vincent J. Hager, CIRMS Sue Howe, AMS, PCAM Karyn A. Kennedy Branco, Esq. Christine F. Li, Esq. Jim P. Magid, CMCA, PCAM Thomas C. Martin, Esq. Glen A. Masullo, CMCA, PCAM Richard Milder Cheryl Palent J. David Ramsey, Esq. Edward San George, PCAM Board Liaisons:

Steven Kuhnert Regina Lebron Jessica Long Endrick Rodrigues Jose Romero Sam Schneider Lauren Vadenais Gabe Vitale

Chris Rosati David Ross Erica Taras Melissa Volet Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko WOMEN’S LEADERSHIP COMMITTEE Cheryl Rhine, CIRMS — Chair Martinia Heath, CMCA, AMS — Vice Chair Karen Carway-Meehan, CMCA Lirelle Klein

Board Liaisons: Benjamin Basch

Kristy Winchock Board Liaisons: Jeff Logan Kristina Munson, CMCA, AMS, PCAM Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent GOLF COMMITTEE Tom Witkowski — Chair Ross Rutman — Vice Chair Chris Belkot Harold Berlowe Scott Brandle Keith Giliberti, RS Fred Hodge Sal Iozzia Paul Migliore Mike Polulak David Shahrabani Jasmin Shelton Ryan Weiner Paul Wojciechowski Board Liaisons: Tony Nardone, MBA, PCAM Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko Hank Johns Lisa Komitor Karl Meth

Ryan Fleming Staff Liaisons: Jaclyn Oskierko Robin Surgent CONFERENCE & EXPO COMMITTEE Jessica Kizmann, CPA — Chair Jackie Thermidor, CMCA, AMS, PCAM — Vice Chair

Vanessa J. Davenport Steven Mlenak, Esq. Staff Liaisons: Angela Kavanaugh Robin Surgent MANAGER COMMITTEE Raymond Barnes, CMCA, AMS, PCAM Mary Barone, CMCA, AMS Robert Davidson Chuck Graziano, PCAM Erin O’Reilly, CMCA, AMS, PCAM Vincent Rapolla, AMS David Salter, CMCA Kerri Stimpson, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Board Liaisons: Kristina Munson, CMCA, AMS, PCAM Tony Nardone, MBA, PCAM

Donna Belkot Joe Bonafede Jay Burak Nicole Camarota, CMCA, AMS

Ellen Comiski Catherine Daly John Echelmeier Saher Gouda Janice Heussler Dorothy Nicklus Scott Palmieri Joely Phenes Board Liaisons: Ryan Fleming Jeff Logan Staff Liaison: Jaclyn Oskierko

Georgette Kyriacou Kristin Marzarella Carol Nickerson, CMCA Nicole Skaro, CMCA Mariaellen Varelis Anne Yanarella Board Liaisons: Mary Barrett, Esq. Loren Lightman, Esq.

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Staff Liaisons: Jaclyn Oskierko Robin Surgent

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CHAPTER TRENDS

mem Doubles Office Space in Central New Jersey mem property management co., inc, recently announced the expansion of its Class A office space at Somerset Executive Square in Somerset, New Jersey.

• All submissions must come from and be about: - A member of CAI-NJ (Manager, Manage- ment 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. Chapter Trends Editorial Guidelines

“The expanded offices in Somerset enable us to better serve and support our growing portfolio of local homeowners’ asso- ciations, high rise communities, condominium associations, townhouses and active adult communities,” in New Jersey, who manages operations in the Somerset office.

“We are mindful of the challenges associated with growth,” says Laderman, “which is why it singularly important to everyone at our company that we maintain the personalized touch and customized, hands-on approach that has contributed to our success serving multi-family properties in New Jersey.” Laderman noted that mem property management is a proud and longstanding member of the Better Business Bureau (BBB) and has maintained an A+ rating for its proven record of trustworthiness, ethics and commitment to outstanding client service. “The investment in expanded Class A office space in Somerset demonstrates our continued commitment to providing our valued customers in central New Jersey with outstanding customer service and support,” says Martin Laderman, founder and CEO of mem property management. n

CALENDAR 2021/2022 Events & Education NOVEMBER Virtual Coffee & Cram Virtual, via Zoom Conference Call 9 JUNE Dennis R Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp. 14

DECEMBER

OCTOBER

9 9

19 20

Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge

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

Winter Break Party Grand Marquis, Old Bridge

FEBRUARY

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

Annual Awards Celebration Encore Event Center @IPA, Freehold 24

APRIL

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Women’s Leadership Retreat Hyatt Regency, Princeton

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CAI-NJ 2021 PARTNERS

FWH Associates, P.A. G&C Electronics GAF Hill Wallack LLP 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 Becker BELFOR Property Restoration Brown & Brown Insurance of Lehigh Valley C & L Services Pavement Maintenance Corner Property Management, AAMC Denali Property Management, Inc. DW Smith Associates, LLC a subsidiary of PS&S

Technocality, Inc. WilkinGuttenplan

The Falcon Group - Engineering, Architecture & Reserve Specialists

Accent Group Adamas Building Services All County Exteriors

FirstService Residential, AAMC Greenbaum, Rowe, Smith & Davis, LLP Griffin Alexander, P.C. Guardian Service Industries, Inc. Hillcrest Paving & Excavating, Inc. Jesan Construction and Maintenance JGS Insurance

PeopleFirst Property & Casualty Services Popular Association Banking Preferred Community Management Services, Inc., AAMC PuroClean of Hoboken, Jersey City, Fort Lee

Alliance Association Bank AMCO Pest Solutions, Inc. Apex Contractors, LLC Becht Engineering BT, Inc. Buckalew Frizzell & Crevina LLP Cowley’s Termite & Pest Control Services Curcio Mirzaian Sirot, LLC Cutolo Barros, LLC Dior Construction, Roofing, and Siding Dorothy Gale Roofing Group Environmental Designers Irrigation, Inc.

Quality 1st Contracting, Inc. Rainbow G & J Painting, LLC Regal Restoration USA RMG, Regency Management Group, Inc., AAMC SageWater Stark & Stark Attorneys at Law USI Insurance Services Valley Bank Witczak Engineering

L.N. Rothberg & Son, Inc. Lemus Construction, Inc. Mackoul Risk Solutions, LLC

Morris Engineering, LLC National Contractors, Inc. O&S Associates, Inc. Pardini R. Construction Corporation

Accurate Reconstruction AR Management Company EOSSO Brothers Paving Felsen Insurance Services, Inc.

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

Radom & Wetter Attorneys at Law The Rahn Companies Renda Roads, Inc. South Shore Construction, LLC Wilkin Management Group, Inc.

MyPropertyBilling.com, LLC National Cooperative Bank

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

Financial Health Check: How Does My Replacement Fund Stack Up? By Michael Mezzo, CPA, MBA, Wilkin Guttenplan

sorbetto/DigitalVisionVectors/Getty Images

W hether you have already been through it, or there is one lurking soon, capital projects are inevitable during mostboard members tenure. Key decisions made by the board may impact not only the success of the project but the future financial health of the association. While undertaking such a project can seem overwhelming, educating yourself on the ins and outs can help minimize the risk of a poor outcome and set your asso- ciation up for success. This article will provide an overview of some of the financial keys to ensure a successful project. The reasons for an association to undergo a major capital project vary. In some scenarios, a board may replace a component that is simply nearing the end of its useful life. However, some situations may be more dire, where boards need to address components that are actively deteriorating and posing a threat to the structural integrity of the building itself. Regardless of the reasons, whenever the need for a major capital project arises, one of the first steps a board should take is to evaluate the association’s financial health, and in particular, the health of the replacement fund.

When assessing an association’s financial health, there are a few easy places to look for reliable and timely information. Some key tools and information are included below: Financial Statements: An audited or internally pre- pared financial statement can provide a plethora of informa- tion regarding the current financial status of the association. Key amounts to look for are: 1. Reserves (Replacement Fund Balance): This figure rep- resents how much the association has accumulated over time for the purpose of significantly repairing or completely replacing existing common elements at the end of their useful life. 2. Cash and Investment Balances: This figure will provide detail on where the “replacement fund balance” dis- cussed above is held (i.e. savings and deposit accounts, certificates of deposit, money markets, etc.). Reviewing this breakout will provide information as to what portion of the association’s replacement fund assets are deemed to be “liquid”, in that they are readily available to be spent and are not tied up in long term investments. CONT I NU E S ON PAGE 16

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FINANCIAL HEALTH... from page 15.

However, as noted above, you need to dig a little deeper. It is also important to review whether or not there are any interfund balances present in the finan- cial statements. To continue the example above, the board also noted an interfund balance of $200,000 due from the replacement fund to the operating fund. The presence of this interfund means that at one point in time, the replacement fund borrowed money from the operating fund, and the monies have not yet been repaid. As seen in this example, interfund balances can have a significant impact on how you interpret your financial health. At first glance, it appears $500,000 would be available for the project, when in reality, only $300,000 was actually available after repaying the $200,000 owed to the operating fund. 2. Loans: Similar to interfund balances, a loan can cause the replacement fund balance to differ from the cash and investment balances. When an association utilizes a loan to fund a project, they are essentially paying a bank (via interest) to allow them to pay for a project with money that they have not yet collected from the unit owners. Doing CONT I NU E S ON PAGE 18

In theory, the two figures noted above should mirror each other. However, it is not uncommon for there to be a discrepancy between an association’s replacement fund balance and replacement fund cash and investment balances. Identifying and understanding these differences is essential to gaining a full understanding of your associa- tion’s financial health. Two of the more common causes of these differences are discussed below: 1. Interfund Balances: Interfund balances essentially rep- resent “receivables” or “payables” amongst the funds. They will indicate if one fund owes money to another fund. Looking at the cash and investment balances alone may not tell the whole story. To give an exam- ple, an association is planning to undertake a large capital project. They review their most recent audit and find that there is replacement fund cash of $500,000 reported. The most common initial assumption is that all $500,000 will be available to spend on the project.

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FINANCIAL HEALTH... from page 16.

this typically results in the association having a “deficit” (or significantly reduced) replacement fund balance during the repayment period of the loan. This is an important item to con- sider, especially when looking at the annual contribution to the replace- ment fund. When repaying a loan, it is important to remember that the budgeted annual contribution to the replacement fund must be sufficient to 1) save for future projects and 2) cover the debt service payments associated with the loan. Once the board has gained an understanding of how much money is available for an upcoming project, the next step is to compare those cash and replacement fund balances to the engineering reserve study. The engineering reserve study contains a large amount of very detailed and useful information that, when interpret- ed properly, can serve as a valuable tool for financial planning. Some key pieces of information from a reserve study are detailed below: Cash Flow Projection: Most engi- neering reserve studies will include a 30-year cash flow projection, which proj- ects the contributions and expenses to be incurred in the replacement fund each year. Checking a few simple figures can provide insight as to the overall health of the replacement fund. a. Estimated Fund Balance – Checking the estimated fund balance to the association’s actual replacement fund balance as included in the audit or financial statements.

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FINANCIAL HEALTH... from page 18.

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b. Timing of Projects – When plan- ning an upcoming capital project, it is important to not only look at the project at hand, but also to look at the projected expenses five (5) years out to ensure the current plan includes sufficient funds to cover the anticipated projects. When comparing your association’s finances to the reserve estimates of the engineer, there are a few important keys to note: Annual Funding Recommen- dation: Included in the cash flow projection of the study will be a fund- ing recommendation. Typically, the engineer will provide multiple fund- ing options ranging from aggressive to conservative and will provide a 30-year cash flow projection for each funding option. There are some key things to remember when it comes to the annual funding: a. Changes in Cost – Even if your asso- ciation has been following one of the recommended funding methods of the engineer, it does not guar- antee that sufficient funds will be available when the time comes for large capital projects. It is important to remember that the amounts includ- ed within these studies are estimat- ed based on information available at the time which the study was prepared. In recent months, actual replacement costs have far exceed- ed initial assumptions as a result of pricing increases related to the COVID-19 pandemic. The cost of

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By Keith A. Loughlin, Esq., Hill Wallack LLP Appeal for New Jersey Property Owners

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T axpayers in New Jersey have the right to file a chal- lenge to their property tax assessment. This article explains what property is taxable, the process of filing a tax appeal, and the benefits of winning the appeal. What Property is Taxable In New Jersey, all real property is subject to local property taxes, unless it has been specifically exempted. 1 Real property for the purposes of local property taxation includes not only the land and all improvements on the land but also personal property if it is affixed to the real property, with exceptions for removable and non-permanent personal property. 2 For example, the Tax Court held in Taylor v. Lower Tp. 3 that floating docks and finger piers connecting the land portion of a marina with the owners’ vessels were subject to property taxation. The Court determined that the docks and piers could not be removed without material injury to the property or to the docks and piers themselves and were intended to remain permanently. 4 Tax Appeal Process By law, your property assessment is assumed to be correct. 5 In order to file a successful property tax appeal, you must overcome this presumption of correctness and prove to the County Board of Taxation (“Tax Board”) that your assessment is in error, unreasonable, excessive or discriminatory. You must suggest a more appropriate value by showing the Tax Board the market value of your property as of October 1 of the pre- tax year. To proceed with an appeal, all taxes and municipal

charges up to and including the first quarter must be paid. 6 An individual property owner may present their own testimony and evidence to the Tax Board, or an attorney can represent them. Business entities such as corporations, partnerships, LLCs, or Trusts must be represented by a New Jersey licensed attorney. Community associations must be represented by a New Jersey licensed attorney. Separate appeals must be filed for each taxed parcel unless the County Tax Administrator grants prior approval to consoli- date lots or parcels into one appeal. Tax appeals must be filed annually on or before April 1 of the current tax year, or 45 days from the date the tax notice was mailed, whichever is later; May 1 of tax year where a municipal revaluation or reassessment has been implement- ed; January 15 for Burlington, Gloucester and Monmouth Counties; or December 1 for added and omitted assessments. In support of your appeal, you must be persuasive and present credible evidence supported by facts, not assumptions or beliefs. Photographs of both the subject property and com- parable properties are helpful, as are recent sales (a minimum of three, no more than five) of similar properties in your neigh- borhood. The Tax Board accepts appraisals completed by state certified or licensed appraisers, but the appraiser must be present at the hearing to provide testimony. Following the presentation of your case, the municipality will have the opportunity to cross-examine you or your representa- tive. The municipality will then either rest on its assessment or present its evidence, and you will be given the opportunity to CONT I NU E S ON PAGE 30

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TAX APPEAL... from page 28.

cross-examine their representative. The Tax Board will then issue its decision, called a judgment. Winning the Appeal Following a successful tax appeal, and once the time to appeal the judg- ment has expired (45 days from the date of service of the judgment), the municipality shall refund any excess taxes paid, together with interest from the date of payment at a rate of 5% per year, less any amount of taxes, interest, or both, which may be applied against delinquencies pursuant to P.L. 1983, c. 137 (C. 54:4–134), within 60 days of the date of final judgment. Pursuant to the Freeze Act, at the expiration of the appeal period, the

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