June 2023

JUNE 2023 Community Trends

®

MAINTENANCE

In This Issue

• Capital Expense or Recurring Maintenance • Does Your Current Maintenance Program Add Up? — Developing a Bona Fide Maintenance Program • Coordinating and Maintaining Insurance Coverage in Community Associations • Governing Document Maintenance: Do Your Governing Documents Need a Tune-up? • ....and more

VectorMoon/ FoxysGraphic /iStock/Getty Images Plus

The Community Associations Institute New Jersey chapter would like to thank its 2023 Ultimate Partners below. For more information on our sponsorships, please contact CAI-NJ at 609-588-0030 or info@cainj.org.

THANK YOU FOR YOUR SUPPORT !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

EXTRAS President’s Corner Looking Ahead F.A.S.T. Olympics Registration 11 CAI National Conference & Happy Hour Recap & Photos 12 PAC the Rooftop Networking Event Recap & Photos 21 2023 Beach Party — Save the Date 27 New Member Open House — Save the Date 29 CAI-NJ Family Day at Laurita Winery — Save the Date 33 Board Leadership Development Workshop Registration 37 Ultimate Night Out — Save the Date 40 CMCA Study Group — Coffee & Cram Registration 41 2023 CAI-NJ Conference & Expo — Save the Date 43 Community Association Leadership Summit Registration 45 New Members 46 NJ & PA Joint Networking Event Registration 47 Webinar Wednesdays 50 2023 Ultimate Partner Listings 56 14 Capital Expense or Recurring Maintenance By Michael Mezzo, CPA, MBA WilkinGuttenplan 24 Does Your Current Maintenance Program Add Up? — Developing a Bona Fide Maintenance Program By James Rademacher, EBP Rezkom Enterprises, Inc. 30 Coordinating and Maintaining Insurance Coverage in Community Associations By Cheryl Rhine, CIC, CIRMS, EBP USI Insurance Services 36 Governing Document Maintenance: Do Your Governing Documents Need a Tune Up? By Tana Bucca, Esq., EBP Becker & Poliakoff LLP 5 6 7 8 CAI-NJ Upcoming Events Legislative Update

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JUNE 2023

CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

VICE PRESIDENT STEVEN MLENAK, ESQ. GREENBAUM, ROWE, SMITH & DAVIS, LLP

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

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

TREASURER RYAN FLEMING, EBP JGS INSURANCE, A BALDWIN RISK PARTNER

SECRETARY KRISTINA MUNSON, CMCA, AMS, PCAM RCP MANAGEMENT COMPANY, AAMC, AMO

BOARD MEMBERS

Mary Barrett, Esq. Stark & Stark Attorneys at Law Business Partner

Charles Lavine Homeowner Leader Carol Nickerson, CMCA

Benjamin Basch, EBP Ground Support Services Business Partner Joseph Chorba, CPA

FirstService Residential, AAMC Community Association Manager Robert Travis, CIRMS Long Beach Commons Condominium Association Homeowner Leader

WilkinGutenplan Business Partner

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Jeffrey Logan Guardian Service Industries, Inc.

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JUNE 2023

PRESIDENT’S CORNER Tony Nardone, MBA, PCAM 2023 CAI-NJ PRESIDENT CORNER PROPERTY MANAGEMENT, LLC, AAMC

CAI-NJ TEAM

F irst, I’d like to thank everyone for attending this year’s CAI National Conference in Dallas, Texas. It was a wonderful event attended by many of our chapter members along with friends from across the nation. There was plenty of col laboration and networking along with some socializing which brought everyone together for a few days. A special congratulations goes out to The Woman’s Leadership Committee who received the “Membership Engagement Award” for the Conquer+ Connect event. Also, to the Membership Committee, as they took home an award for

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

“Best Net Growth” with the chapter’s membership growing 6.7% in 2022. Mitch Frumkin, RS, PE, and Ed San George, PCAM received the “Award of Excellence in Designations” for their hard work on the Reserve Study Standards

“...I reflect on the positive contributions from many of our members that make this such a wonderful organization.”

BROOKE@CAINJ.ORG JENNIFER FARRELL PROGRAM MANAGER JENNIFER@CAINJ.ORG GAIL BONUS ADMINISTRATIVE ASSISTANT GAIL@CAINJ.ORG

Task Force. Ed also received an “Award of Excellence in Government and Public Affairs” for all his hard work on the New Jersey Legislative Action Committee (NJ-LAC) and Community Associations Political Action Committee (CA-PAC). The ceremony was very well attended and was complete with bull riding and shuffleboard. While yours truly did not participate in any bull riding, I certainly had a few laughs watching others take part. As I sit on the plane ride back, I reflect on the positive contributions from many of our members that make this such a wonderful organization. Since this month’s magazine focuses on exterior maintenance, I thought it’s a good time to focus on the important part of ensuring the longevity and structural integrity of a building. It seems very appropriate considering the awards received by our CAI members, along with the time of year we’re in. This work involves a range of activities, including cleaning, painting, repairing, and replacing exterior components like roofs, walls, windows, and doors. Buildings that are not properly maintained can suffer from a variety of prob lems, including leaks, cracks, and deterioration, which can lead to more serious issues like mold, mildew, and structural damage. In addition to maintaining the structural integrity of a building, maintaining its aesthetics is also important. A building that looks well-maintained and attractive can increase its curb appeal and value, and can also create a positive impres sion on visitors, tenants, and employees. Thank you again for all the members who attended Dallas and I look forward to seeing everyone next year in Vegas from May 8th - 11th! n

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

5

JUNE 2023

LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

F ocusing on the summer season is what gets most of us through the winter and now that it is finally here, we can move outdoors, to enjoy all that our beautiful state has to offer. While New Jersey is known for its miles of endless beaches, New Jersey also offers a limitless list of activities, such as hiking and biking paths, wineries, brew eries, outdoor dining spots and amusement parks, just to name a few. One of my favorite places is Sunset Beach in the historic town of Cape May for the best sunset views that I have witnessed. While there, don’t miss the Cape May Lighthouse, outdoor dining, the town shops on Washington Street, plus their wineries and breweries. The town of Cape May is worth the visit. The summer season is also maintenance season for our community association professionals. It’s an excellent time to take stock of your community and do some serious main tenance to enhance its beauty and increase the value of your biggest investment. This month’s articles offer an insight of what to consider when planning maintenance for your community. Capital Expense or Recurring Maintenance, by Michael Mezzo, CPA discusses the importance of properly categorizing your maintenance expenses. Coordinating and Maintaining Insurance Coverage in a Community Association by Cheryl Rhine, CIC, CIRMS, EBP, discusses the importance of maintaining your property as claims are often denied if the damage is caused by a maintenance issue. Governing Document Maintenance: Do your Governing Documents Need a Tune Up? by Tana Bucca, Esq., discusses how to ensure that your governing documents don’t conflict regarding where the responsibility lies for specific repairs. Does your Current Maintenance Program Add up? — Developing a Bona Fide Maintenance Program by James Rademacher, EBP, discusses what should be considered when developing a community’s maintenance program.

What can you look forward to at the New Jersey chapter? • 2023 Dennis R. Casale Memorial Golf Outing June 6, Forsgate Country Club in Monroe • Homeowner Huddle June 14, Virtual • Brewing Up Connections with CAI-NJ — New Member Meet Up June 20, CAI-NJ Headquarters, Freehold • Wednesday Webinar June 21 & July 26, Virtual • Community Association Leadership Summit July 18, Greenbriar Woodlands, Toms River • Coffee & Cram August 10, CAI-NJ Headquarters, Freehold • Board Leadership Development Workshop August 22 & 23, CAI-NJ Headquarters, Freehold • CAI-NJ Beach Party September14, Martell’s Tiki Bar, Point Pleasant • CAI-NJ Family Day at Laurita Winery October 7, Laurita Winery, New Egypt • 2023 CAI-NJ Conference & Expo October 19, The Event Center @iPA, Freehold For further information and to register for our events, please visit, https://cainj.org/network-events/ for the net working events and, https://cainj.org/education-events/ for the educational programs. CAI National held their Annual Conference & Expo a few weeks ago in Dallas, Texas where I had the pleasure of joining so many of our members for a full week of educa tion and networking. The New Jersey chapter hosted a fun event at the Community Beer Co., for a Dallas style meet up. A highlight of the week was the Awards Ceremony.

CONTINUES ON PAGE 52

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JUNE 2023

CALENDAR 2023 Events & Education

JUNE

SEPTEMBER

6 20 21 22

14 27 28

Dennis R. Casale Memorial Golf Outing Forsgate Country Club, Monroe Twp.

Beach Party Martell’s Tiki Bar, Pt. Pleasant

New Member Open House CAI-NJ Headquarters, Freehold

Wednesday Webinar Virtual

Wednesday Webinar Virtual

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

NJ & PA Joint Networking Event Triumph Brewery, New Hope

OCTOBER

JULY

5 7

CA-PAC 9 & Nosh Concordia Golf Club, Monroe Twp. Family Day at Laurita Winery Laurita Winery, New Egypt

12 18 26

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

18 19

Community Associations Leadership Summit Greenbriar Woodlands, Toms River

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

Wednesday Webinar Virtual

Conference & Expo The Event Center @iPA, Freehold

AUGUST

DECEMBER

3 10 22 23

Ultimate Night Out Jersey Shore BlueClaws Stadium, Lakewood

5 5

Annual Meeting & Chapter Retreat The Grand Marquis, Old Bridge

CMCA Exam Study Group - Coffee & Cram CAI-NJ Headquarters, Freehold Board Leadership Development Workshop CAI-NJ Headquarters, Freehold

Winter Break Party The Grand Marquis, Old Bridge

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

LEGISLATIVE UPDATE

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

T he past month was less eventful on the legislative front than we had anticipated, as the legislature ultimately decided to focus on other matters. I am pleased to report that we had a successful and well attended legisla tive update on May 11, 2023, and many thanks to the presenters and attendees. In dovetailing with this month’s “maintenance” theme, our top priority continues to be getting our structural integrity and building safety legislation passed. The recent parking garage and balcony collapses underscore the urgent need for legislation to protect the life and safety of the public. In that connection, the Legislative Action Committee (LAC) building safety task force has been involved in extensive negotiations with other stakeholders. While we cannot bridge the gap with them on all the issues, progress has been made and the matter is now in the hands of the spon sors to make decisions on the final contents of the bill and to move it through the legislature. Regarding document maintenance, many of you may be contemplating updating your documents to comply with the Radburn Election Law and Regulations. Please note that CAI’s challenge to the Radburn Regulations remains pending and is fully briefed before the Appellate Division. At this time, no one can predict when a decision may be rendered. Finally, you may recall that in June of 2022 the Department of Community Affairs (DCA) published a pro posed rulemaking in response to CAI’s petition challenging the Radburn Regulations, making a few minor changes. However, the DCA’s proposed changes were generally not

“In dovetailing with this month’s ‘maintenance’ theme, our top priority continues to be getting our structural integrity and building safety legislation passed.” For example, one proposed change by the DCA would provide that upon the receipt of a petition signed by 51% of the members, a board member is automatically removed without any due process or voting. We pointed out to the DCA that, among other things, relying on petitions to under take such important matters is fraught with infirmities such as complaints that those signing the petition were not told what they were signing for, complaints that the signatures are not valid, etc. In addition, such a procedure does not afford the removed director any opportunity to respond and oppose his or her removal. Instead, we recommended that the DCA clarify that the presentation of the petition triggers the need for an orderly removal vote that affords directors whose removal is proposed adequate time to respond to the members. The DCA has until June 21 to publish the final rulemaking, including any response to CAI comments. Therefore, be on the lookout for an update soon! n acceptable, and the LAC submitted commentary in August 2022.

Stay up-to-date on legislative issues at www.cainj.org.

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JUNE 2023

2023 CAI-NJ COMMITTEES

AWARDS COMMITTEE Annie Gonzales — Chair Lila Khiry Cirillo — Vice Chair Jeanine Clark, Esq. Drew Cowley Lindsay Cupples, EBP

EDITORIAL COMMITTEE Nicole Martone, CMCA, AMS, PCAM — Chair

GOLF OUTING COMMITTEE Fred Hodge, Jr., EBP — Chair Keith Giliberti, PE, RS, EBP — Vice Chair Harold Berlowe, CMCA Chris Belkot Lorenzo Cullari, AICP Sal Iozzia Hank Johns, EBP Lisa Komitor Cathy Mango, EBP Karl Meth, Esq. Paul Migliore

MANAGER COMMITTEE Mary Barone, CMCA, AMS — Chair Chuck Graziano, PCAM — Vice Chair Erin Cautero, CMCA, AMS Tom Curry, CMCA, AMS, PCAM Michael Flippin, CMCA, AMS, PCAM Anthony Gjergji, Jr. Richard Mattalian, CMCA, AMS, PCAM Erin O’Reilly, CMCA, AMS, PCAM Vincent Rapolla, AMS Mariaellen Varelis Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA, AMS Board Liaisons Kristina Munson, CMCA, AMS, PCAM Carol Nickerson, CMCA Staff Liaisons: Jaclyn Oskierko Robin Surgent MEMBERSHIP COMMITTEE Tara Baldwin, CPA — Chair Megan Elgard, EBP — Vice Chair Michael Barch Lysa Bergenfeld, Esq. Nichole Gist Antoinette Hutchinson

Drew Podolski, Esq. — Vice Chair Robert Arnone, MSRE, CMCA, AMS

Don Cabrera, CMCA David Dockery, Esq. Jonathan Katz, Esq. Michael Mezzo, CPA, MBA

Kim Dempsey Jeffrey Logan Christine Maldonado Michael Millar Vanessa Pena Kari Prout, CMCA

Steven Morris. RS Casey Sky Noon Robert Roop Board Liaisons Mary Barrett, Esq. Carol Nickerson, CMCA Staff Liaison: Brooke Stoppiello-Nevins EVENTS COMMITTEE Debbie Pasquariello, CIC, CIRMS, EBP — Chair Diane Cody, CMCA, PCAM — Vice Chair Ray Barnes, CMCA, AMS, PCAM Tim Bruchez

Nicole Skaro, CMCA, EBP Eileen Szelewicki, CMCA Mary Visco Sandi Wiktor Board Liaisons Tony Nardone, MBA, PCAM Christopher Nicosia, CMCA, AMS, PCAM Staff Liaisons: Jaclyn Oskierko Jennifer Farrell BUSINESS PARTNER Gregory Vinogradsky, Esq., EBP — Chair Mike Luzzi, CPIA, EBP — Vice Chair Theresa Beckett, EBP Jack Benson Jordan Burkhalter, CPA

Mike Polulak, Esq. Ross Rutman, EBP David Shahrabani, EBP

Jasmin Shelton Jodi Smallwood Michael Sturchio Ryan Weiner Charles Witczak, III, PE, PP, PLS Tom Witkowski Paul Wojciechowski Board Liaisons Steven Mlenak, Esq. Tony Nardone, MBA, PCAM

Dean Catanzarite Justine DelVecchio

Frank Fasolo, IV Freedom Hildreth Pam Illiano Stacey Koehl, CMCA, AMS Laura McIntyre, EBP Daniel Reilly Rachel Rutman Christina Mirra Sohnen Randy Vogel Melissa Volet, Esq. Jill Zulin Board Liaisons Joseph Chorba, CPA F.A.S.T. COMMITTEE Steven Kuhnert — Chair Jessica Long — Vice Chair JP Ascolese Adara Azeez Chelsea Brodmerkel Jonathan Cairone Alexis Dairman Eric Eggert, CIC, CIRMS Shelby Evans, CPA, EBP Kristi Evans Rebecca Gavin Mary Ellen Liberatore Will Meola Marian Miawad, Esq. Nicole Miller, Esq. Charles Lavine Staff Liaisons: Jaclyn Oskierko Jennifer Farrell

Staff Liaisons: Jaclyn Oskierko Jennifer Farrell HOMEOWNER LEADER COMMITTEE Richard Lans — Chair Lois Gerber — Vice Chair Bruce Blum Roslyn Brodsky Barbara Finn, CMCA

Kim Manicone Renee Martin Mark Mojares Kathleen Radler Brent Rivenburgh, EBP Steve Roderick, EBP Michael Ryan Ken Shah Rick Sobczak Ryan Trembley Michael Willner, Esq. Board Liaisons Joseph Chorba, CPA

Ron Fermano Carrie Fusella Dave Kiessling Richard Lang, EBP Toni Licciardi Chris Merkler Donna Meyer, EBP Ben Mitrou John Prisco, Esq. Sal Sciallo Perry Stavridis Jessica Vail, EBP David VelascoM EBP Michael Vennitti, EBP Board Liaisons Benjamin Basch, EBP Ryan Fleming, EBP

Charles Fredericks Kenneth Freeman Salvatore Gurriero

Keira Hauck Carl Kentzel Cheryl Palent

Charles Lavine Staff Liaison: Robin Surgent WOMEN’S LEADERSHP COMMITTEE Lirelle Klein — Chair Jamie Cullen, CMCA — Vice Chair Amani Abdellah, Esq. Jennifer Carr Linda Courain, CMCA, AMS Ellen Goodman, Esq. Martinia Heath, CMCA, AMS Svetlana Malinsky, CMCA Kristin Marzarella Gail McDermid, CMCA, AMS, PCAM Rachel Neves Jennifer Nevins, CMCA, EBP Jen O’Brien Cheryl Rhine, CIC, CIRMS, EBP Nikki Schillaci, EBP

Board Liaisons Charles Lavine Robert Travis, CIRMS

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 Mohammed Salyani, CPA — Treasurer Elizabeth Comando, CMCA, PCAM — PAC President Andrew Podolski, Esq. — PAC Vice President James Rademacher, EBP — PAC Committee Jennifer Alexander, Esq. Roslyn Brodsky Barbara Drummond, CMCA, PCAM

Staff Liaisons: Jaclyn Oskierko Robin Surgent

CONFERENCE & EXPO Saher Gouda, EBP — Chair Shelia Adams, CMCA — Vice Chair Joe Bonafede Jay Burak Nicole Camarota, CMCA, AMS George Caso Martinez Angela Celeste Ellen Comiski, CMCA Marty Conway John Echelmeier Jessica Kizmann, CPA Danita Susi Holly Teufel, CMCA, AMS Board Liaisons Ryan Fleming, EBP Christopher Nicosia, CMCA, AMS, PCAM

Jose Romero Dharmi Shah Peter Shine, EBP Ilija Trajkoski

Lisa Vitiello, CPA Board Liaisons Mary Barrett, Esq. Kristina Munson, CMCA, AMS, PCAM

Mitchell Frumkin, RS Vincent Hager, CIRMS Karyn Kennedy-Branco, Esq. Terry Kessler, Esq. J. David Ramsey, Esq. Lisa Rayca, CMCA, AMS John Reichart Alexander Scheffer, CMCA Board Liaisons: Richard Milder Cheryl Palent

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Staff Liaisons: Jaclyn Oskierko Jennifer Farrell

Steven Mlenak, Esq. Robert Travis, CIRMS Staff Liaisons: Angela Kavanaugh Robin Surgent

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JUNE 2023

CAI-NJ 2023 PARTNERS

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

GAF Hill Wallack LLP Kipcon Inc. McGovern Legal Services, LLC PS&S, LLC PuroClean of Hoboken, Jersey City, Fort Lee Rezkom Enterprises, Inc. Sweeping Corp. of America (SCA) Taylor Management Company, AAMC, AMO Technocality, Inc. USI Insurance Services WilkinGuttenplan

Denali Property Management, Inc. The Falcon Group - Engineering, Architecture & Reserve Specialists FWH Associates, P.A.

Accent Group Access Property Management, AAMC, AMO 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 Clearview Washing, LLC Cowleys Pest Services Curcio Mirzaian Sirot, LLC Cutolo Barros, LLC Dior Construction, Roofing, and Siding

Environmental Designers Irrigation, Inc FirstService Residential, AAMC FloodCo USA Greenbaum, Rowe, Smith & Davis LLP Griffin Alexander, P.C. Guardian Service Industries, Inc. Innovative Pressure Cleaning The Jesan Companies JGS Insurance, a Baldwin Risk Partner KPI2 Enterprises, Inc. Lemus Construction, Inc. Mackoul Risk Solutions, LLC

Preferred Community Management Services, Inc., AAMC Radom & Wetter Renda Roads, Inc. Snowscapes South Shore Construction, LLC STAR Building Services Two Men Property Services Group, Inc. Popular Association Banking 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 Valley Bank Wilkin Management Group, Inc. Witczak Engineering One Call Roofing & Siding O & S Associates, Inc. Parallel Architectural Group Pardini R. Construction Corporation PeopleFirst Property & Casualty Services

Morris Engineering, LLC National Contractors, Inc. National Cooperative Bank

Garden State Pavement Solutions Giordano, Halleran & Ciesla Hueston McNulty, P.C. L.N. Rothberg & Son, Inc. Landscape Maintenance Services, Inc. Mizza Pest Control

Accurate Reconstruction APC Hospitality, LLC AR Management Company Association Advisors NJ CCA, Construction Consulting Associates, LLC Felsen Insurance Services, Inc. First Onsite

MyPropertyBilling.com Pacific Western Bank

100% of Proceeds Donated to

WEDNESDAY, JULY 12TH

Registration Opens at 1:00PM Games Start at 1:30PM

Thompson Park 1701 Perrineville Rd., Monroe Twp.

Limited to 32 Teams!

For Questions or to Register Contact brooke@cainj.org or 609-588-0030

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

Team Name or Spectator: ____________________________ Company Name: ___________________________________ Phone: ___________________________________________ Email: ___________________________________________ ___Team of (4) four ($140) or ___Spectator ($35) Team Information (please include name & company) 1. (Captain):_______________________________________ 2. _______________________________________________ 3. _______________________________________________ 4. _______________________________________________ TOTAL: $_________________

CAI-NJ Attn: Olympics

500 Harding Road Freehold, NJ 07728

2. Pay by credit card:

Please call Brooke Stoppiello-Nevins at the CAI-NJ Office at 609-588-0030 to process your credit card. 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.

PLEASE NOTE: By registering for this CAI-NJ event, you are agreeing to our COVID Release Waiver. HOVER YOUR PHONE CAMERA OVER THE QR CODE FOR COVID WAIVER

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.

COMMUNITY NOW MAY 17-20 | DALLAS 2023 CAI ANNUAL CONFERENCE & EXPOSITION

This May, CAI-NJ had an amazing showing at the 2023 CAI Annual Conference & Expo in Dallas, Texas where the chapter received two awards, one for Membership Growth and one for the Conquer + Connect retreat. There were also two award recognitions for members, Mitch Frumkin, PE, RS and Ed San George, MPA, PCAM for their National Reserve Study participation and Ed’s work with government affairs. Members of the chapter also met up at The Community Beer Company in Dallas for some good food and drinks. This was a great opportunity to connect with fellow New Jersey members. CAI-NJ would like to thank all of the members who came together to celebrate the amazing achievements of the chapter!

Capital Expense or Recurring Maintenance By Michael Mezzo, CPA, WilkinGuttenplan

sesame/DigitalVision Vectors/Getty Images

W hile reviewing your audited financial state ments, you will likely notice that your associ ation’s accounting records are broken down into different “funds.” Depending on the complexity of operations, sites may utilize as many as ten funds or as few as two. The reason behind segregating an association’s finances into different funds is due to the fact that each fund has a very specific funding purpose. For purposes of this article, we will focus on two funds: Operating Fund: The purpose of the operating fund is to provide for the daily operations of the community and related amenities. It typically includes expenses such as professional fees (legal, engineering, management fees, accounting), site maintenance (landscaping, snow remov al, etc.), utilities, maintenance of amenities and common areas, as well as many others. Replacement Fund: The purpose of the replacement fund is to accumulate funds for future major repairs and replacements. Unlike the operating fund, which focuses on current expenses, the replacement fund can be viewed as a long-term savings account for future projects.

Fund accounting strives to maintain the integrity of each dollar included in an association’s annual budget. For example, if an association budgets to save a dollar for a roof replacement that is scheduled to be completed in ten years, it is imperative that dollar is set aside in a segregat ed account. This will help to ensure that the dollar is not used to pay an operating expense and is available for the board’s use in ten years when the project becomes due. Determining which fund an expense falls under can be difficult at times. Certain expense items, such as utilities, are easy to account for. Others, however, can fall into a gray area. This article will cover some of the more common questions regrding these issues, as well as guidance on how to account for each specific transaction. Before diving into some specific scenarios, it is import ant to have a general understanding of a few underlying concepts and definitions. The first relates to the engineering study. Most associations will engage an engineer to per form an on-site inspection of the association’s common ele ments. Based on their findings, the engineer will then pre pare a report detailing each individual component of the CONTINUES ON PAGE 16

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JUNE 2023

CAPITAL EXPENSE... from page 14.

Question: I am repairing leaks in my roof. Can I charge this to the replacement fund? Guidance: My initial recommendation would be no. The roof itself will commonly qualify as a capital expendi ture for inclusion within the replacement fund. However, that does not mean that any expense related to the roof should be expensed to the reserve fund. It is important to remem ber that the projections included in the engineering study only reflect the actual replacement of the roof. It does not include repairs, or any other expenses, related to the exist ing roof. As such, charging these repairs to the replacement fund would take away monies that were previously saved for the future roof replacement. Depending on the extent of repairs needed, this could result in a significant shortfall when it comes time to complete a full roof replacement. Question: I am performing annual mainte nance on my HVAC system. Can I charge this to the replacement fund? Guidance: Similar to the guidance for the roof question above, the general recommendation is that this expense is

association. The report will include a description of each component’s age, quantity, original useful life, assessed remaining useful life, and current replacement costs. The second definition to understand is that of the term “capital improvement.” Most of the components included in the engineering study consist of capital assets. Capital assets or improvements are viewed as items that: 1. Represent a material replacement, upgrade, or enhancement 2. Is permanently affixed to the property or building, such that removal of the item would cause significant damage. Now that we have an understanding of some of the general underlying definitions and concepts surrounding the replacement fund and capital improvements, we can dive into some specific examples. a. which increases the value of the property b. extends the useful life of the component

CONTINUES ON PAGE 18

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JUNE 2023

CAPITAL EXPENSE... from page 16.

fan was showing signs of premature failure and needed to be replaced. Doing so will extend the useful life of the HVAC system by four years. In this scenario, the expense of the blower fan would qualify as a replacement fund expen diture. The reason is because the expense represented a significant repair to the unit, which materially extended the estimated useful life of the component.

an operating line item and should be excluded from the replacement fund expenditures. The amounts included in the engineering study for the HVAC system are only intend ed to cover the replacement of the existing system. As this expense represents maintenance of the current system, it would not qualify as a replacement fund expenditure. That being said, there are always exceptions to these recommendations. There is no “one size fits all” answer. To illustrate an exception, we can utilize the example of annual maintenance for an HVAC system. All components included in the engineering study are assigned a useful life (the amount of time that a component is expected to last). When it comes to the HVAC system, performing the annual maintenance is a required step in allowing the component to achieve its intended useful life. This clearly falls under a “maintenance” item and should be accounted for through the operating fund. However, what if while performing the annual maintenance, the contractor noticed that the blower

“As this expense represents maintenance of the current

system, it would not qualify as a replacement fund expenditure.”

We can also apply this concept to the roof repair exam ple above. The example above cited roof leak repairs which were patched. Patching a leak typically does not materially extend the useful life of the roof. If, for exam ple, the contractor discovered that there was a significant amount of wood rot under the shingles, and that a large CONTINUES ON PAGE 20

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“The general guidance for landscaping is that it is not a capital item...”

CAPITAL EXPENSE... from page 18.

section of the roof required new shingles and plywood, an argument could then be made that the repair has materially extended the useful life of that roof, and could be funded through the replacement fund. Question: I am replacing trees and landscaped areas through the community. Can I charge this to the replacement fund? Guidance: The general guidance for landscaping is that it is not a capital item, as it does not fall under the defini tion of a capital item as documented above. To help save for these projects, many sites will utilize a third “deferred mainte nance” fund. This fund is typically utilized for projects that do not meet the criteria to be considered capital, but also do not occur annually. As such, they do not appear in the annual operating budget. Utilizing a deferred maintenance fund can help boards budget and save funds for these projects that occur less frequently than annually.

One exception for landscaping expenses that I have seen in practice related to a sewer project. In order to access the sewer line, the contractor was required to remove a large landscaping bed. The bed was reinstalled after completion of the sewer project. In this scenario, it was determined that the landscaping expense was permitted to be funded through the replacement fund as it was a required step of the larger capital sewer project. Another exception to this guidance relates to hardscap ing projects. Retaining walls, hardscaped patios, and walk ways, and even irrigation systems are commonly included as capital components within an engineering study. Question: Can I expense engineering fees to the replacement fund? Guidance: It is not uncommon for a large capital proj ect, such as roofing or siding, to require an onsite engineer

CONTINUES ON PAGE 51

Extraordinary Services. Exceptional People. Preferred Community Management Services

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Email: info@pcmsus.com • Web:www.pcmsus.com

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JUNE 2023

CA-PAC TOP GOLF FUNDRAISER

A SPECIAL THANK YOU TO ALL OF OUR BAY SPONSORS!

Adamas Building Services Anchor Pest Control Becker BELFOR Property Restoration Certapro Painters of Mountainside City Fire Equipment Company, Inc. FWH Associates, P.A. Greenbaum, Rowe, Smith Greenspot LLC

Thursday, March 30, 2023 EDISON TOPGOLF 1013 US ROUTE 1 • EDISON, NJ • 08817

Guardian Services Industries, Inc. JAD Building Maintenance Supplies JGS Insurance, a Risk Baldwin Partner McGovern Legal Services LLC Morris Engineering, LLC National Cooperative Bank & Vantaca, LLC O&S Associates Planned Companies PS&S, LLC PuroClean of Hoboken, Jersey City, Fort Lee Quality 1st Contracting Rainbow G & J Regal Restoration USA Rezkom Enterprises, Inc. Stark & Stark Attorneys at Law Taylor Management Company, AAMC, AMO The Jesan Companies Valet King, Inc. WilkinGuttenplan

PAC THE ROOFTOP NETWORKING EVENT

WEDNESDAY, MAY 10, 2023 ASBURY FESTHALLE & BIERGARTEN

THANK YOU SPONSORS!

DRINK TICKET SPONSORS Access Property Management, Inc., AAMC, AMO FWH Associates, P.A.

BUFFET SPONSORS Cutolo Barros LLC Mackoul Risk Solutions, LLC

DESSERT SPONSOR JGS Insurance, a Baldwin Risk Partner GIVEAWAY SPONSORS PeopleFirst Property & Casualty Services PipeBurst Pro Stark & Stark Attorneys at Law PREMIUM PAC SPONSORS

The Accent Group ACV Property Management, LLC American Lawn & Sprinkler Ansell Grimm & Aaron, PC

O&S Associates, Inc. Pardini R. Construction Corporation PeopleFirst Property & Casualty Services PS&S, LLC PuroClean of Hoboken, Jersey City, Fort Lee Quality 1st Companies RCP Management Company, AAMC, AMO Regal Restoration USA Rezkom Enterprises, Inc. SERVPRO of Freehold, Middletown, South Jersey City, Bayonne SERVPRO of Howell, Wall, Spring Lake, Asbury Park STAR Building Services Stark & Stark Attorneys at Law Taylor Management Company, AAMC, AMO Webster Bank

Associa Community Management Corporation of New Jersey, AAMC BELFOR Property Restoration Candlewood Management Services, Inc. CertaPro Painters of Eastern Monmouth County EOSSO Brothers Paving FWH Associates, P.A.

Garden State Pavement Solutions INTEGRA Management Corp., AAMC The Jesan Companies McGovern Legal Services, LLC Morris Engineering, LLC

Thank you to all of our sponsors for making PAC the Rooftop at the Asbury Festhalle & Biergarten a huge success! We raised over $16,000 to support elected representatives and senators that protect the best interests of CAI and our communities. If you missed this fantastic event and would like to support our advocacy mission for our homes, communities, and livelihood, please consider donating by utilizing the form below. PAC accepts donations from individuals, professionals, contractors and from fundraising events. CA-PAC MAKING A DIFFERENCE IN YOUR COMMUNITY!

Upcoming events include the 9 & Nosh on October 6th and a Brewery Meet-Up on November 3rd. Stay tuned for details!

-Liz Comando, CMCA, PCAM CA-PAC President

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

I WANT TO SUPPORT COMMON INTEREST COMMUNITIES... My Association/Management company is making a PAC gift of:

___ $250 ___ $500 ___ $1000 or $________ ___ $100 ___ $250 ___ $500 or $________ ___ $50 ___ $100 ___ $250 or $________

My supporting business is making a PAC gift of:

I am personally making a PAC gift of:

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. Community/Company: _____________________________________________________________________________________________________________ Individual Name: _________________________________________________________________________________________________________________ Mailing Address: __________________________________________________________________________________________________________________ City, State, ZIP: ___________________________________________________________________________________________________________________ Phone: _________________________________________________Email:_____________________________________________________________________ Employer Address (if applicable): ____________________________________________________________________________________________________ City, State, ZIP: ___________________________________________________________________________________________________________________ Management Company Name: _____________________________________________ (Community Association’s Only) DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS 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

Does Your Current Maintenance Program Add Up? — DEVELOPING A BONA FIDE MAINTENANCE PROGRAM By James Rademacher, EBP, Rezkom Enterprises, Inc.

The best photo for all/iStock/Getty Images Plus

M aintenance programs consist of porter/clean ing services, maintenance/repair services, deferred maintenance projects, and capital improvement/replacement projects. Identifying the duties and specifications for each will help staff and develop your program. Porter services include items such as common area clean ing, event set-ups and breakdowns, lighting inspections, and maintaining recycling and trash areas. Checklists for these daily or weekly services can be developed based on location and occurrence. Event set-up diagrams are also helpful to allow staff to set up for committee events or meeting needs. Maintenance and repair services include the workorder based repair requests. These requests are generally called

in by owners or residents. Some may be generated after inspections performed by the community manager or the buildings and grounds committee. They could include roof leaks, a loose gutter, hanging siding, leaning signpost, or a damaged fence. Your onsite maintenance repairs should be requested through a computer-generated work order system. This will allow you to show accountability through work order history reports and prove the value of the ser vices to the client. Most regular maintenance items are reactive, which means that repairs are made after something breaks or is damaged. Proactive or preventative maintenance requires performing repairs, inspections, or adjustments to prevent items from breaking down. A good example of this is that pipe flanges on a roof may need to be replaced prior to

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the roof shingles. In fact, maintenance or replacement of roof flanges may help extend the useful life of the over all roof. So, combining proactive or preventative maintenance within your program is a must. Deferred maintenance consists of maintenance items that are scheduled in advance, such as exterior building washing and painting, seal coating and line striping, and fence or deck re-staining. This type of work is com pleted on a rotating schedule. Some communities complete these types of projects site wide every four or five years. Others prefer dividing the community into sections, completing one section each year over the four- or five-year span. Too often, deferred maintenance items are skipped when the board is looking to cut the budget. CONTINUES ON PAGE 26

We’ve Got Your Community Covered Insurance and Risk Management Solutions for CAI Members USI’s Community Association Specialists combine proprietary analytics, broad experience and national resources to custom-fit an insurance and risk management plan that meets your needs. For decades, our team has provided the solutions and services that CAI members count on to protect their communities. We’d like to do the same for you.

Cheryl Rhine, CIC, CIRMS, EBP 732.616.4319 Debbie Pasquariello, CIC, CIRMS, EBP 732.207.4818

USI Insurance Services 1433 Hooper Ave., Suite 110

Toms River, NJ 08753 732.349.2100 | usi.com

©2023 USI Insurance Services. All Rights Reserved. Employee Benefits | Property & Casualty | Personal Risk

Serving Community Associations for Over 35 Years

Community Associations Attorneys:

A. Christopher Florio, Esq. cflorio@stark-stark.com

Mary W. Barrett, Esq. mbarrett@stark-stark.com

Melissa A. Volet, Esq. mvolet@stark-stark.com

Edward Berman, Esq. eberman@stark-stark.com

Transition & Construction Litigation Attorneys:

Andrew J. Podolski, Esq. apodolski@stark-stark.com

J. Randy Sawyer, Esq. rsawyer@stark-stark.com

John S. Prisco, Esq. jprisco@stark-stark.com

We understand your association is comprised of individual unit owners seeking to protect the value of their homes. For that reason, we offer fee structures for your community including hourly, retainer, or hybrid arrangements. In appropriate cases, we offer representation on a full or partial contingent fee basis. Our complement of services includes the following:

• Collect Delinquent Assessments • Draft and Negotiate Service Contracts • Municipal Services Act Reimbursement • Fair Housing Compliance

• Create and Enforce Community Rules and Policies • Tax Appeals • Guidance on Board Governance • Developer/Sponsor Transition • Construction Defect Litigation Rent Receivership

• Pursuit of Creditor Claims in Bankruptcy • Foreclosure of Assessment Liens • Land Use and Zoning Representation • Insurance Coverage Claims

www.Stark-Stark.com • 1-800-53-LEGAL • 100 American Metro Blvd., Hamilton, NJ 08619

* Results may vary depending on your particular facts and legal circumstances. Because every case is different, the descriptions of awards and cases previously handled are not meant to be a guarantee of success.

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