CAI-NJ Sept.2018(w)(1)

LEGISLATIVE UPDATE Community Trends ® September 2018

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• The Push for Expedited Foreclosures and Receivers • Can Residents Install Electric Car Charging Stations? • The Board and The Law • Mandatory Board Member Training • UCIOA— It’s Back...Kind of... • CAI-NJ and the NJBA—Working Together on Reserve Funding and Developer Contribution Regulations ....and more In This Issue

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 !

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THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

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New Jersey Foreclosure Reform Effors: Expedited Foreclosures and Receivers By Thomas C. Martin, Esq. Price Meese Shulman & D’Arminio, P.C. Legislation Regarding The Rights of Residents to Install Electric Car Charging Stations By Matthew Z. Earle, Esq. Kates, Nussman, Ellis, Farhi & Earle

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The Board and The Law By Steve Kroll Fairways at Livingston

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Mandatory Training for Common Interest Community Leaders By Paul Raetsch Horizons At Woods Landing

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It’s Back...Kind Of... By David Ramsey, Esq. Becker

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CAI Establishes a Positive Working Relationship With the The NJ Builders By Michael Pesce Associa ® - Community Management Corp., AAMC

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EXTRAS President's Corner

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Looking Ahead

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CAI-NJ Upcoming Events

Legislative Update

CA-PAC “Dollar-a-Door” Campaign

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CAI-NJ 2018 Olympics Wrap-up & Photos 18 2018 CAI-NJ Conference & Expo Attendee Registration 35 2018 CAI-NJ Conference & Expo Sponsorhips 36 2018 CAI-NJ Pre-Conference Networking Party Registration 38 Emerging Professional Managers Membership Grant 44 2019 CAI-NJ Committee Sign-ups 58 CAI Membership Application 63 2018 Ultimate Partner Listings 68

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CAI-NJ LEADERSHIP BOARD OFFICERS

BOARD OF DIRECTORS Benjamin Basch American Pool Enterprises Business Partner

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

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

Frank Catanzarite Homeowner Leader

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

VICE PRESIDENT JENNIFER NEVINS DW SMITH ASSOCIATES, LLC

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

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

TREASURER LOREN LIGHTMAN, ESQ. HILL WALLACK, LLP

SECRETARY MARK WETTER, ESQ. RADOM & WETTER

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

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

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

I n the early-nineties, my first CAI committee appointment was to the Legislative Action Committee (LAC). After that first meeting, I realized this committee was the guardian for our industry. At that time, the industry was fighting for municipal service reimbursement for communities. As most of you know, com- munities were paying property taxes which included trash removal, street lighting and snow removal; yet the members of the association were not receiving the service from the municipality. The Municipal Services Act eliminated this dou- ble taxation. The Act obligates municipalities to either provide certain services to private communities, or reimburse those communities for those services. This significant legislation is the result of CAI’s LAC fighting for our communities. Who and what is this committee? “The Legislative Action Committee consists of industry volunteers dedicated to the monitoring of legislation, educating elected state lawmak- ers and protecting the interests of those living in community associations.” LAC reviews proposed legislative bills that are introduced by members of the NJ State Senate and General Assembly. LAC makes a determination if the proposed bills will help or

harm community associations. Based on their assessment, they act as advocates for community associations to ensure the Legislators’ understand how a particular bill will affect their community member constituents. This Community Trends ® issue is dedicated to legislative issues that are before the LAC and the position they are advo- cating for in order to protect our community members. You can help in two ways. Raise your voices so we are

“The LAC makes a determination if the proposed bills will help or harm community associations.”

heard by your local state legislator on the many issues dis- cussed in the issue. The second is to donate to the CA-PAC, who’s purpose is to give a strong voice in Trenton. Together, we can make a positive contribution to those who call com- munity associations home. n

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

A nother year has passed since our last Legislative Issue of Community Trends ® . A lot has hap- pened legislatively during this year concerning our Legislative Action Committee (LAC) and pending laws that would impact our community’s operations and quality of life. Please read all of the articles in this issue as they were authored by our LAC members. The topics were selected due to their timeliness and relevance. Another significant factor is that the LAC member authors include homeown- er leaders, managers and attorney business partners, representing all of our membership categories. Our LAC committee remains strongly committed to representing all of our communities in their efforts to support or oppose all pending legislation introduced concerning condominiums, homeowner associations and co-ops. This year has been a very active year for NJ-LAC and CA-PAC. A new administration took over in Trenton which means new contacts and relationships need to be forged between our LAC and PAC and the new administration. With the assistance of our government affairs company, MBI Gluckshaw, we were able to meet with several of the new key players in Trenton and let them know that CAI is the “go-to” source for legislation pertaining to New Jersey’s common interest communities. George Greatrex has “hit the deck running” as the 2018-19 chair of LAC. Chris Li, 2015-17 chair, left a well-oiled machine when her term as chair expired at the end of 2017. Chris has remained on LAC and is a great resource for George and the entire committee.

So, please read all of the articles presented in this issue of Community Trends ® and keep pace with the progress of the introduced bills by reading the monthly column written by George Greatrex, the current chair of NJ-LAC. And please approach your boards and business partners and request that they make a donation to our CA-PAC. We often are fighting against large, financial- ly strong opponents that have an established presence in Trenton and we need to get in front of our elected officials to get our voice heard.

“We often are fighting against large, financially strong opponents that have an established presence in Trenton and we need to get in front of our elected officials to get our voice heard.”

Also, if you haven’t already, mark your calendars for October 18 and attend this year’s Conference and Expo in Freehold, NJ. Our LAC will be presenting an hour-long seminar on where we are with the major bills that we are either opposing or advocating for and what legislation we may see not too far down the road. More details on the Conference and Expo can be found on pages 34 through 38. n

Boards — please support the NJ-LAC by participating in the “Dollar-a-Door” Campaign, contributing a dollar for each unit in your community. Details are on pages 10-11.

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2018-19

EVENTS & EDUCATION CALENDAR

SEPTEMBER

NOVEMBER

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Joint Manager/ Business Partner Roundtable TBD

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Homeowner Leader Roundtable Buona Sera, Red Bank F.A.S.T. Habitat For Humanity Initiative Monmouth County- TBD Manager Leadership Workshop Rossmoor Community Association, Monroe Twp. CAI-NJ Legal Forum: “What Would You Do?, Legal Issues Impacting Community Associations” Stonebridge Community Association, Monroe Twp.

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Lecture Series CAI-NJ, Freehold

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DECEMBER

20

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Annual Meeting and Chapter Retreat Clearbrook Community Association, Monroe, Twp.

25

Lecture Series CAI-NJ, Freehold

FEBRUARY

28

Annual Awards Dinner TBD

October

17

40th Anniversary Party & Pre-Conference Networking Reception i-Play America, Freehold

APril

12

M-201: Association Communications Mercer County Community College, West Windsor

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Annual Conference & Expo i-Play America, Freehold

18- 20

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

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Spring Break Party The Grand Marquis, Old Bridge

Events are subject to change more information can be found on The CAI-NJ Website at www.cainj.org.

LEGISLATIVE UPDATE

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

T he September issue of Community Trends ® is my favor- ite of the year…there’s always so much good stuff in it! It’s commonly known as the “LAC” issue because all of the articles are about legislative, regulatory and legal issues affecting common interest communities in New Jersey, written by members of our own CAI Legislative Action Committee – NJ. This year’s issue doesn’t disappoint, as it’s chock full of interesting and informative information to keep you informed and prepared to meet the challenges of living and working in common interest communities. These are some of the issues you’ll read about in these pages: • Foreclosure reform: One of the LAC’s legislative prior- ities, the problem of “zombie foreclosures” continues to plague our communities. Thomas Martin, a lawyer and former chair of the LAC, reviews this issue, explains our attempts to bring relief to our communities through pending legislation, and updates us on the status of those efforts. • Board member training: As I’ve previously reported in this column, an effort is underway to introduce legisla- tion that will mandate board member training for New Jersey’s common interest communities. Paul Raetsch, a homeowner leader member of the LAC and former President of his HOA Board, will discuss the history of this issue, the pros and cons of mandated board mem- ber training, and our efforts to participate in the crafting of this legislation. • “Adequate Reserves” and “Benefits Derived” definitions: For many years the subject of much confusion and debate by practitioners involved in transitioning new communities, lately we have made great progress in our joint effort with the New Jersey Builders Association to better define these important terms. Michael Pesce, a former President of the CAI-NJ chapter and the President of Associa-Community Management Corp., explains the need for revised defini- tions of these concepts in DCA regulations, our joint efforts with the Builders on this and other important issues, and

the status of our efforts to convince the DCA to adopt these new definitions. • Relationship between the Board and its legal counsel: Steve Kroll, another homeowner leader member of the LAC and current President of his HOA Board, discusses the importance of this relationship, and how to get the most out of it for the betterment of your community. • UCIOA Revisited: Many of you have been around long enough in our industry to remember the years-long effort to pass a uniform bill that covered all aspects of governance of condos, townhomes, cooperatives, and HOAs, and recall what a frustrating and exhausting pro- cess it was. David Ramsey, a lawyer and well-respected long-serving CAI loyalist and veteran of that earlier war over UCIOA, reports on revived efforts to adopt a uniform statute to cover all forms of common interest ownership, but this time on a smaller step-by-step scale. • Electric Vehicle Charging Stations: Advancing energy technology brings with it both benefits and complications, and this topic is a good example of that. Matthew Earle, a lawyer and the LAC’s go-to resource on tech issues, reports on legislative efforts to promote the use of electric vehicles, and how those laws would affect our communities. This is the issue of Community Trends ® you should keep on the top of the legislative and legal resource pile on your desk at all times. Many thanks to the authors of the articles in this issue, and all members of the LAC, for their unselfish and tireless efforts on behalf all of us who live and work in common interest communities in New Jersey. I encourage you to share the information in these pages with your board members, homeowners, property managers, and legal and accounting professionals This issue and the information it provides is just another example of the many great benefits of membership in CAI. Hope you had a great summer! See you here next month… n

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2018 CAI-NJ COMMITTEES

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

Thomas Martin, Esq. Glen Masullo, CMCA, PCAM Jack McGrath Michael Pesce, PCAM Paul Raetsch J. David Ramsey, Esq. Lisa Rayca

Angela Morisco, Esq. Steven Morris, RS Robert Roop

Board Liaisons: Lisa Vitiello, CPA Deana Luchs Staff Liaison: Jaclyn Oskierko FAST COMMITTEE Lauren Vadenais — Chair Kristy Winchock — Vice Chair Matthew Antico

Jennifer Carr Rich Cassilli Drew Cowley Gabby Grimes

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

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

Jessica Baker, Esq. Jamie Cullen, CMCA Jessica Hatton Vincent Kazmierski Sierra Kressin, Esq.

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

Jessica Long Rob Mignone Nicole Miller, Esq. Ashley Payne, CMCA Adrianna Rudzinsky, Esq. David Vargas Gabe Vitale Board Liaisons: Larry Sauer, CPM, CMCA, PCAM Jeffery Logan Staff Liaisons: Jaclyn Oskierko GOLF COMMITTEE Chris Belkot — Chair Paul Migliore — Vice Chair Raymond Barnes, CMCA, AMS, PCAM Scott Brandle Martin Cabalar, Esq. Patricia Clemente Eric Eggert Marty Ehrlich Robert Frustaci Keith Giliberti, PE, RS Matt Grobert Frederick Hodge

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

Bernie Cosentino Frank Gencarelli Toni Licciardi Julie Nole

Ken Sauter, Esq. Herman Shauger Amy Shorter Jessica Vail Patricia Ventura Gregory Vinogradsky, Esq. Lisa Wagner

Kristy Winchock Board Liaisons: Jeffrey Logan

Jennifer Nevins Staff Liaison: Angela Kavanaugh CONFERENCE & EXPO Cheryl Rhine — Chair Jay Burak — Vice Chair

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

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

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

Monica Caporosa Dean Catanzarite Diane Cody, PCAM

Rhett Cowley Steve Ferrara Angelo Giacchi Gary Gleitman

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

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

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

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

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CA-PAC WORKS HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

SUPPORT CA-PAC “A Dollar a Door”! The Community Association – Political Action Committee (CA-PAC) is a volunteer committee consisting of homeowners, professionals and managers who serve New Jersey’s community associations. CA-PAC was created to give our members a stronger voice in Trenton by supporting candidates who support key issues important to CAI-NJ members. Please do your part and support our 2018 “Dollar a Door” campaign. Donate $1 per door or at least $250.00 per year for com- munities and $25.00 for individuals. 2018 A Dollar a Door Community Associations • Cedar Village at East Brunswick • The Ponds

• The Plaza Grande at Old Bridge • Union Gap Village Association • Wildflower Village COA

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

YES, I’D LIKE TO SUPPORT CA-PAC WITH A PLEDGE!

COMMUNITY ASSOCIATION DOLLAR PER DOOR __________________ X ____________________ $_________ Number of Doors A Dollar or More Total Pledge PROFESSIONAL PLEDGE __________________ X ____________________ $_________ Number of Doors A Dollar or More Total Pledge FLAT RATE PLEDGES Business Partner ............................................... $250-$500 $_________ Management Company ..............................................$500 $_________ Other ....................................................................................... $_________

Community/Company: ________________________________________________________________________________________________

Individual Name:_____________________________________________________________________________________________________

MailingAddress:______________________________________________________________________________________________________

City, State, ZIP:______________________________________________________________________________________________________

Phone:_________________________________________________________Fax: ________________________________________________

Email:________________________________ Occupation:______________________ Employer:_____________________________________

Employer Address:___________________________________________________________________________________________________

City, State, ZIP:______________________________________________________________________________________________________

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.

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 responsibili- ty 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.

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

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New Jersey Foreclosure Reform Efforts: EXPEDITED FORECLOSURES AND RECEIVERS

By Thomas C. Martin, Esq. Member, Legislation Action Committee Partner, Price Meese Shulman & D’Arminio, P.C.

T he New Jersey chapter of the Community Associations Institute (CAI-NJ) and the members of the Legislative Action Committee in conjunction with our advocates in Trenton have undertaken the critically important task of trying to create new and innovative ways to address and correct the woeful state of the foreclosure process in New Jersey. The current bill on which we are all working to get passed has been assigned number A2085 in the State Assembly and number S1243 in the State Senate. These are the current numbers for these bills for this leg- islative session. As you may recall from civics class, the bill has to pass the State Assembly, pass the State Senate and then has to be signed by the Governor before it

becomes a law. This can be a Herculean task espe- cially when, as is the case here, there are other groups substantially opposed to our efforts to get reasonable common-sense legislation passed. We feel strongly this bill will benefit the approximate 1.2 million New Jersey taxpayers who own property in a common interest own- ership associations. It is for this reason many members of the Legislative Action Committee have been devoting their own personal time and resources to make every effort to get Trenton to adopt this very important piece of legislation. We have all seen the problem far too many times. For example, a lender extends a mortgage to an owner who did not have the income to pay the mortgage. The CONT I NU E S ON PAGE 16

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FORECLOSURE... from page 14.

opposition forces and well-heeled special interest groups continue to oppose us every step of the way. But we are making substantial progress. The current legislative proposal does a number of things. In a nutshell, the proposed bill essentially allows a common interest ownership association to ask a Judge to mandate that the lender either prepare and file the required papers with the court to expedite its foreclosure or pay the monthly maintenance fee while the foreclosure is (albeit very slowly) working its way through the courts. After all, the mainte- nance fees of the paying unit owners go to support and preserve the bank’s collateral. As many of us lawyers have had to argue in court, the association received no loan “The consequences of these short-sighted decisions by banks have been unfairly visited on the association unit owners.”

mortgage was based solely on an assumption the property would increase in value indefinitely. When property values went down, the owner could not pay and ultimately went into default. The owner may have simply abandoned the property and left the property to decay and fall into disre- pair or the owner may have chosen to stay in the property, live in the community and enjoy its benefits without paying the maintenance fees or the mortgage while the bank eventually gets around to completing a foreclosure. All of this negatively impacts the equity of the owners paying maintenance fees and property taxes. Incredibly, in New Jersey, it can take seven years or more for a foreclosure to reach a conclusion. All the while, no one is paying the maintenance fees, which, of course renders a substantial hole in the budget. This is particularly frustrating to the unit owners who pay the maintenance fees and the property taxes to have to, in essence, subsidize these units. The problem is manifest. We feel the solution is rather straightforward. Nevertheless,

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origination fees and did not make the decision to lend to a person who was unlikely to be able to pay back the loan. The consequences of these short-sighted decisions by banks have been unfairly visited on the association unit owners. The proposed bill also provides specific provisions allowing a common interest ownership associ- ation to apply to the court to appoint a special fiscal agent (a receiver, of sorts) with the power and authority to oversee the unit and charge a fee to a license holder to occupy the unit. This process would be a substantial benefit toward righting the wrong perpetrated on so many associations across the State of the New Jersey. This way a license fee is charged to an occupant. The special fiscal agent would be appointed by the court to make sure the property is properly maintained. The license fee gets paid over the association to keep current on the monthly maintenance fee and depending on the amount, the license fee can be used to defray or pay down the past due debt that built up over time. This process would be available and designed to help make associations whole. The Legislative Action Committee is very actively working on this bill despite opposition. There are legisla- tive committees in the Assembly and in the Senate that have to be addressed. Moreover, we have met with and will continue to meet with individual legislators and groups of legislators to make every effort to try to move the legislative process along. Notably, there are a number of decades-old laws that tangentially relate to the appointment of special fiscal CONT I NU E S ON PAGE 66

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Legislation Regarding The Rights of Residents To Install

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Y our community association may have encoun- tered the following scenario: A resident shows up one day in his or her new Tesla Model S with “Ludicrous Acceleration” upgrade and informs the board that his or her electrician is on the way to install a state of the art vehicle charging station in his or her assigned parking space, which happens to be a part of the common elements. The board “taps the breaks” on the resident’s proj- ect because it now must determine how to answer the following questions: 1. Is the resident entitled to modify or alter the common element, limited common element, or deeded parking space? 2. Are there any technical reasons (such as electrical load capacity) that may cause the board to reject such an installa- tion? 3. Should the board require the resident seeking to install a charging station to carry additional insurance and/or indem- nify the association? 4. Who is responsible to replace, maintain, and/or remove the charging station in the future? 5. If there are already car charging stations installed, will the municipal authority require the association to have a load study performed by an electrical engineer?

CONT I NU E S ON PAGE 26

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6. Who should bear all the costs connected with the above consid- erations? As part of the general trend towards “clean” energy and electric vehicles, several states have passed legislation that requires community associations to allow residents to install electric vehicle charging stations under cer- tain circumstances. Furthermore, sim- VEHICLE CHARGING... from page 24.

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ilar legislation has been introduced in New Jersey which the CAI-NJ’s Legislation Action Committee (“LAC”) has been advised likely will, in some version, eventually pass. It is the LAC’s goal to ensure that any version of a bill that requires associations to permit the installation allow residents to install electric vehicle charging stations under certain circumstances.” “...several states have passed legislation that requires community associations to

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of charging spaces protects and fur- thers the health, safety, and welfare of associations and their residents. In that connection, and in coordination with CAI National’s policy position, the LAC will attempt to ensure that any vehicle charging station bill: • Limits the installation of charging stations by residents to deeded spaces and/or those that are per- manently assigned; • Requires residents to complete an application process in connection with a proposed charging station; • Requires the resident seeking installation to cover all costs con- nected with the installation, main- tenance, operation, removal, and electricity usage of the charging station, including any profession- al review costs incurred by the association; • Requires the charging station to meet reasonable architectural stan- dards; • Requires the resident/unit owner to indemnify the association and maintain appropriate insurance; • Authorizes associations to adopt reasonable rules and regulations regarding the installation, remov- al and use of charging stations; and, • Authorizes an association to deny an application to install a charging station for appropriate reasons. The LAC and its legislative profes- sionals are working together with legislators and other stakeholders to attempt to craft legislation that furthers the interests of community associations in the vehicle charging station area. n

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The Board and The Law By Steve Kroll, Fairways at Livingston

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“We make our best effort to understand the legal foundation of an issue, but it is not a replacement for receiving legal advice from our association’s lawyer.”

A s a board member of a condominium association, there are issues that arise that require the legal expertise of my association’s law firm. Our board typically reaches out for legal guidance when we collec- tively feel that we can’t realistically resolve an association issue without understanding how current law might influ- ence our deliberations and subsequent decision options. While board members can read our association’s docu- ments like the master deed and by-laws to gleam what the founding documents say on a particular topic, often times it isn’t sufficient to resolve an issue either because the word- ing isn’t definitive enough or doesn’t address all aspects of the issue. Other times a new issue comes along that wasn’t anticipated when the association’s documents were drafted. Although we are a privately governed community where the board turns first to the original documents and subsequent resolutions, we recognize that any state or local

municipal law takes precedence over our association’s governing documents. We also read the necessary statutes as well, but we are not trained lawyers in condominium association law. We make our best effort to understand the legal foundation of an issue, but it is not a replacement for receiving legal advice from our association’s lawyer. Once a new issue has been identified that requires the input of legal counsel, the board informs our community manager to keep her in the loop. It is critically important for the community manager to be fully aware of any legal issues under discussion and legal actions that have been taken by the association’s attorney. Typically, the issue is brought to the attention of our legal counsel either by email or by a phone call from the board president with notification to the entire board and community manager. Email exchanges between the board, community manager, and our association lawyer allow all

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parties to be kept abreast of the prog- ress of resolving the issue from a legal perspective. For some issues that have multiple legal considerations, a spe- cial meeting is held with the associa- tion’s lawyer. Most of the time though, emails and phone calls among the parties are sufficient enough to come up with an action plan to address the issue. The majority of issues are usually brought to the attention of the recipient by way of a letter delivered by regular mail. A typical recipient can be either a unit owner(s), another law firm, or a business (contractor). The letter can ask for a response from the recipient within a certain period of time before a specific action maybe taken by the association’s board. At this time, all correspondence with the recipient is done through the association’s attor- ney. The board does not get involved directly with the recipient once legal action has been initiated. Depending on the complexity of the legal issue and the response of the recipient to the letter, the issue will either be discussed at the upcoming monthly board meeting or in an interim meeting as mentioned. The association’s lawyer is invited to attend our monthly board meetings to discuss legal matters before the board or schedule a special meeting. Additionally, our association’s lawyer attends two of our open meetings with the community’s residents during the year. While the open meetings aren’t a time to discuss individual unit owner’s legal issues, the board has found that having our association’s attorney at these meetings brings a

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THE LAW... from page 29.

Our association’s law firm not only han- dles financial matters like collecting delin- quent accounts, it is usually called in when personal disputes arise among residents or res- idents and the board. At times the nature of the dispute requires knowledge of the law beyond what the

sense of reassurance by the board members that any legal questions that need to be answered regarding the board’s responsibilities are handled by a legal expert specializing in condominium association law. As financial guardians of the association’s residents, the board pays particular attention to the status of delinquent monthly maintenance accounts. For our monthly board meet- ing, our law firm prepares a Collection Status Report on those unit owners who are at least 3 months delinquent in their monthly payments. This report details each legal step up to the present time that the association’s law firm has taken to secure payment from the delinquent unit owner. Letters requesting payment, liens, and foreclosure motions are all actions that the board votes on before our law firm proceeds with any action. As board members, we have a fiduciary responsibility to all unit owners to ensure that everyone is paying their share of the association’s total monthly maintenance. Non-payment by any unit owners negatively impacts the overall financial condition of the association.

“Letters requesting payment, liens, and foreclosure motions are all actions that the board votes on before our law firm proceeds with any action.”

board and community manager possess. Even when there are dispute resolution procedures in place, it is customary for the board to rely on our law firm to oversee the multiple steps required. It is critical that the board members, com- munity manager, and our law firm are on the same page as the dispute resolution process is put into place. Since there are multiple ways under the association’s by-laws that a dispute can be resolved, it is very important for the board to get legal guidance concerning the different options

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CONT I NU E S ON PAGE 32

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available to them. Only then can they make an informed decision to move forward. Although most of the issues that arise that require the attention of our associa- tion’s lawyer are of the variety previously stated, there are legislative proposals before the NJ state legislature that may have a significant impact on condo- minium, cooperative, and homeowner associations throughout our state. It is in the best interests of board members and “As a board member, I reach out to the legislative tab on the CAI-NJ website for important information regarding laws recently passed and bills being considered for passage.” community leaders to keep up on new bills being considered for passage by the state legislature and those bills that have recently become law. For example, a bill allowing electric car charging stations in community asso- ciations is being seriously considered by our state legislators. What happens if this bill becomes law? How will impact your community? What will it cost my community to accommodate electric car charging stations? As a board member, I reach out to the legislative tab on the CAI-NJ website for important information regarding laws recently passed and bills being consid- ered for passage. As a CAI-NJ member, I frequently visit the CAI-NJ website to keep current on proposed legislation that may become law. As a board

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