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

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

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O ver the years, CAI-NJ has had a loose working relationship with the New Jersey Builders Association (NJBA). That relationship has recently expanded, such that the Legislative Action Committee (LAC) has now had a series of meetings with key reps from the NJBA, resulting in agreement on several legislative or regulatory initiatives. These discus- sions have involved the adequacy of reserve funding in new construction communities, the contribution that developers should make to associations, again in new construction communities, electric car charging station legislation, and legislation to address the statute of lim- itations issue posed by the Palisades case. While discussions are ongoing concerning several of these topics, CAI-NJ and the NJBA have reached agree- ment on the reserve funding and developer contribution

issues, which have now been jointly proposed to the New Jersey Department of Community Affairs (DCA) for revised regulations. We thought it helpful to provide a summary of these proposed changes, when and if adopted. BENEFIT DERIVED At the present, the only guidance to what a developer should contribute to an association during the course of construction is included in the regulations to the Planned Real Estate Development Full Disclosure Act (PREDFDA), at NJAC 5.26-8.6(b), which provides as follows: (b) When the association has made a common expense assessment, the assessment shall be assessed against the units individually owned and under devel- opment in proportion to the benefit derived by the unit from the items included in the budget. CONT I NU E S ON PAGE 56

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