CAI-NJ September 2021

COVID-19 Immunity Legislation for Common Interest Communities in New Jersey IS NOW THE LAW By Ed San George, MPA, PCAM, INTEGRA Management Corp., AAMC

T he CAI-NJ Legislative Action Committee (LAC) is pleased to announce that our proposed limited liability protection legislation was approved unanimously by the Assembly and Senate and signed into law by Governor Murphy on July 1, 2021. This legislation is only one of two laws enacted to provide limited liability protection in the State. The other is for health care providers, and was enacted in April 2020. There were nearly a dozen other proposed forms of legislation that did not advance or get any approvals like ours. Salient portions of the legislation are as follows: • A planned real estate development (i.e., condominium or homeowner association, or the like) shall be immune from civil liability for damages arising from or related to, an exposure to, or transmission of, COVID-19 on the premises of the planned real estate development. • The immunity provided shall not apply to acts or omis- sions constituting a crime, actual fraud, actual malice, gross negligence, recklessness, or willful misconduct. • The immunity shall take effect on July 1, 2021, but expires on January 1, 2022. • In order to be effective, a sign must be prominently displayed at the entrance to the community’s amenities which states these exact words: “ ANY PERSON ENTERING THE PREMISES WAIVES ALL CIVIL LIABILITY AGAINST THE PLANNED REAL ESTATE DEVELOPMENT FOR DAMAGES ARISING FROM, OR RELATED TO, AN EXPOSURE TO, OR TRANSMISSION OF, COVID-19 ON THE PREMISES, EXCEPT FOR ACTS OR OMISSIONS CONSTITUTING A CRIME, ACTUAL FRAUD, ACTUAL MALICE, GROSS NEGLIGENCE, RECKLESSNESS, OR WILLFUL MISCONDUCT .” This legislation was first introduced in the Assembly by Vincent Mazzeo (Atlantic) and John Armato (Atlantic) and then introduced by Linda Greenstein (Mercer & Middlesex)

in the Senate. We are grateful for their interest and support. The effort to introduce this legislation was initiated by Paul Raetsch, a homeowner leader of the LAC. Based on its clear legislative intent, the new law provides community associations, their executive boards, and service providers with limited liability protection against lawsuits for contracting the COVID-19 virus while using common ameni- ties. The protection afforded will be a substantial impediment to any consideration by a potential claimant for an alleged cause of action against the association and its agents. It will foster decision-making by boards to open amenities with greater authority and comfort in the decisions they are mak- ing. Boards can now reasonably rely on the risk management value that the legislation provides. The immunity applies for the period of July 1, 2021, through December 31, 2021. Immunity will apply to any lawsuit filed baed on exposure or transmission of the virus during that time period. The legislation absolutely requires posting signs at all amenities and common areas that your association may wish to provide this protec- tion. There will be no liability protection without the proper signage. Association boards questioning how this new law applies to your Association are encouraged to contact your Association’s legal counsel. In the end, the frequent webinar updates on this legis- lation by CAI-NJ and the LAC, and the frequent commu- nications to our membership to promote presentations of support to our State legislators were the driving forces of the successful passage of this valued legislation. We thank all of you who participated in our webinars, introduced the legislation to your community members, and overwhelming- ly voiced your support to your state legislators. A true team effort that now adds to the credibility and viability of CAI as the industry leader and resource for legislation that affects common interest communities. n

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