November 2022

The Community Associations Institute New Jersey chapter would like to thank its 2022 Ultimate Partners below. For more information on our sponsorships, please contact CAI-NJ at 609-588-0030 or info@cainj.org.

T hank You Fo r You r Suppo r t !

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

15 Repercussions

By Robert N. Roop, P.E. Lockatong Engineering Inc. 18 Interest Rates, Friend or Foe By Trevor Hintzen, Director Webster Bank 26 Restricting Rentals in Community Associations By Jonathan H. Katz, Esq. Hill Wallack LLP 33 State Migration and the Effect on our Communities By Robert Arnone, MSRE, AMS, CPM RCA Management, LLC 41 Management Trends: Economy of Time and Effort for Retrieving and Retaining Documents, Data and Information….Data/Record Retention Policies By Elaine Warga-Murray, CMCA, AMS, PCAM Consultant, E.W.Murray Consulting, LLC. President Emeritus, RMG, Regency Management Group, Inc., AAMC

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18

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EXTRAS President’s Corner Looking Ahead

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MAYBE NOT!

CAI-NJ Upcoming Events F.A.S.T. Adopt-A-Family

Legislative Update

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Chapter Trends

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2023 CAI-NJ Annual Awards Celebration — Call for Nominations CA-PAC “Keys to the Doors” Campaign

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Beach Party Recap and Photos

Make-A-Wish Breakfast & Castle Tour — Save the Date 2023 Partnership Program Registration F.A.S.T. Kickball Tournament Recap and Photos LAC Virtual Roundtable Discussion — Save the Date

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2023 Online Service Directory Form CA-PAC 9 and Nosh Recap and Photos

New Members

CAI Membership Application CAI-NJ Education Proposals CAI-NJ Career Headquarters 2022 Ultimate Partner Listings

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CAI-NJ BOARD OF DIRECTORS EXECUTIVE COMMITTEE

PRESIDENT JEFFREY LOGAN GUARDIAN SERVICE INDUSTRIES, INC.

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

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

TREASURER STEVEN MLENAK, ESQ. GREENBAUM, ROWE, SMITH & DAVIS, LLP

SECRETARY BENJAMIN BASCH, EBP AMERICAN POOL ENTERPRISES

BOARD MEMBERS

Mary Barrett, Esq. Stark & Stark Attorneys at Law Business Partner Ryan Fleming, EBP JGS Insurance, A Baldwin Risk Partner

Kristina Munson, CMCA, AMS, PCAM RCP Management Company, AAMC, AMO Community Association Manager Carol Nickerson, CMCA FirstService Residential, AAMC Community Association Manager Robert Travis, CIRMS Long Beach Commons Condominium Association Homeowner Leader

Business Partner Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

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

IMMEDIATE PAST PRESIDENT Loren Lightman, Esq. Hill Wallack LLP

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PRESIDENT’S CORNER Jeffrey Logan 2022 CAI-NJ PRESIDENT GUARDIAN SERVICE INDUSTRIES, INC.

CAI-NJ TEAM

O ctober has come and gone, and boy was it packed! We hosted our Annual Conference & Expo at iPlay America, in Freehold. Booths were sold out months in advance and our attendance was at an all time high. Thank you to the Conference & Expo Committee and our amazing staff for putting together a great show. In addition, we hosted many educational events and CA-PAC hosted its 9 & Nosh golf event. Thank you to all our sponsors and those who helped make the day such a success. With only two months left in the year, we still have a full line up of events coming your way! Check out the networking events page on our website at https://cainj.org/network-events/ and the educational programs page at https://cainj.org/education-events/ to be up to date on all that CAI-NJ has going on. Also, be sure to turn to Angela’s article on page 6 for detailed events and programs. The best way to become active in our amazing chapter is by GETTING INVOLVED and taking advantage of all the member benefits available to you! In addition to great networking and educational programming, CAI-NJ has sev eral resources right at your fingertips, including the renowned Alternative Dispute Resolution (ADR) Program, 11 volunteer-led, chapter committees, sponsorship opportu nities for businesses, the ability to submit articles for this very magazine and speaking proposals for educational programs. Visit our online resources like our career center and job market, an online service directory of industry professionals, scholarship opportunities, webinar library and access to numerous educational materials for your business or community. If you have any questions or want to get involved more to see the benefits of being a member, reach out to our chapter staff or a board member! I want to take this time to wish you and your family a Happy Thanksgiving! We have so much to be thankful for. I know I do! November’s Impactful Leader “Make it a habit to tell people, ‘Thank you.’ To express your appreciation sincerely and without the expectation of anything in return. Truly appreciate those around you, and you’ll soon find many others around you. Truly appreciate life, and you’ll find that you have more of it.” —Ralph Marston

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

ROBIN@CAINJ.ORG JENNIFER FARRELL PROGRAM COORDINATOR JENNIFER@CAINJ.ORG GAIL BONUS ADMINISTRATIVE ASSISTANT GAIL@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

www.facebook.com/ CAINJCHAPTER Community Associations Institute - New Jersey Chapter

Lawrence Sauer, CPM, CMCA, PCAM, CPCU, CIC Taylor Management Company, AAMC, AMO

Lawrence (Larry) Sauer has been in property management for 37 years. He has served as President of CAI-NJ in 2016 and has been an active member since he began working in it over 30 years ago. Larry has been involved with

@cainewjersey

CONT I NU E S ON PAGE 59

CAI-NJ

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LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

“Don’t wait until the fourth Thursday in November, to sit with family and friends to give thanks. Make every day a day of Thanksgiving!” — Charmaine J. Forde N ovember is one of my favorite months. It’s still warm enough to get outside for fun activities but we are also gearing up for the holiday season. It’s a month-long celebration of gratitude, delicious food, and spending time with family and friends. I am so very thankful for the committed leadership of the CAI‑NJ Board of Directors as they always choose what is best for the membership; the dedication of the New Jersey Legislative Action Committee (NJ-LAC) as they advocate for those living in common interest communities; all of the commit tee members who create programs and events for all mem ber representation groups of the chapter; the support of all members who value the benefits offered and the enthusiastic CAI-NJ team, that strives to make every program and event the best it can be. Don’t forget to mark your calendars for these important dates: November 6th — Move your clocks back and get one more hour of sleep. November 8th — Election Day, get out to vote and choose your advocates. November 11th — Veterans Day, honor those who have served in the United States Armed Forces. Coming up this Year Managers Leadership Workshop on November 1st, at the Cultural Center, Clearbrook Community Association. Managers will provide ideas and tools that will help you achieve your full potential as leaders in the community association industry. For further information and to register, https://www.cai-nj.org/event-4907602 Pints with PAC Happy Hour on November 3rd at

the Hamilton Tap & Grill. Please join us and support your Legislative Action Committee who advocates for everyone living in New Jersey’s common interest communities and take the opportunity to meet influential members of the organiza tion! For further information and to register, please visit https://www.cai-nj.org/event-4960390 Wednesday Webinar on November 9th. A virtual presentation from one of our Ultimate Partners, Technocality, Inc. For more information and registration, please visit https://www.cai-nj.org/event-4575034 . Make-A-Wish Breakfast & Castle Tour on November 10th at the Make-A-Wish Foundation of New Jersey. For further information and registration please visit https://www.cai-nj.org/event-4999010 Winter Break Party on December 8th at the Grand Marquis. Further information and registration, please visit https://cainj.org/winter-break-party/ Now Accepting Proposals for Speaking Oppor tuities. If you would like to share your expertise with our members, submit a proposal for a 2023 educational pro gram, https://cainj.org/education-proposals/ 2023 Partnership Program is now available. Business Partner and Management Company members, you can take advantage of this program to gain brand recognition and enhanced exposure that will allow you to stand out in New Jersey’s community association industry. For further information, https://cainj.org/partnership/ 2022 Adopt a Family. The CAI-NJ F.A.S.T. will once again adopt multiple families to ensure that they will enjoy the holiday season. Please support this important initiative by donating. For further information about how to donate, please visit https://www.cai-nj.org/event-4944748 My wish for all of you is a safe and healthy fall season. Begin new traditions, count your blessings and be grateful for all that we have. n

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2022-2023 Events & Education Calendar

NOVEMBER 1 3 9 10 DECEMBER Wednesday Webinar Virtual

FEBRUARY CMCA Exam Study Group - Coffee & Cram CAI-NJ Office, Freehold

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Manager Leadership Workshop Clearbrook Community Association, Monroe Twp. Pints with PAC - Happy Hour Hamilton Tap & Grill, Hamilton Wednesday Webinar Virtual Make-A-Wish Breakfast & Castle Tour Make-A-Wish Foundation of New Jersey, Monroe Twp.

Annual Awards Celebration The Event Center @iPA, Freehold

MARCH Board Leadership Development Workshop CAI-NJ Office, Freehold CA-PAC Top Golf Top Golf, Edison 1-2 30

APRIL

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Imperia, Somerset 19 JUNE

Conquer + Connect Retreat

Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge Winter Break Party Grand Marquis, Old Bridge LAC Virtual Roundtable Discussion Virtual

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

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

Help CAI-NJ F.A.S.T. Spread Some Holiday Cheer!

Once again CAI-NJ F.A.S.T. will be adopting multiple families to ensure that they get to enjoy the holiday season this year, through Interfaith Neighbors, a local Monmouth County organization. We are asking for those to support the initiative by donating via the event page available by utilizing the link, hovering your phone camera and clicking the QR code or mailing checks to: CAI-NJ, Attn: Adopt-A-Family, 500 Harding Rd, Freehold, NJ 07728

Thank you in advance for your generosity to help us support this amazing organization and the families in our community who need our help! Questions? Contact Robin@cainj.org

Visit https://www.cai-nj.org/event-4944748 for details

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LEGISLATIVE UPDATE

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

O n September 29, 2022, your Community Associations Institute New Jersey chapter Legislative Action Committee (NJ-LAC) conduct ed its first “lobby day” since the pandemic started. On lobby day, representatives of the NJ-LAC travel to Trenton for a series of meetings with lawmakers throughout the day. This year, we were joined by NJ-LAC members Karyn Kennedy Branco, Esq., Lisa Rayca, CMCA, AMS, Ed San George, MPA, PCAM, David Ramsey, Esq., Mitch Frumkin, PE, RS and Carol Shenk, EBP. In addition, Angela Kavanaugh, Chapter Executive Director, and Phoebe Neseth, CAI’s Director of Government and Public Affairs joined us as well. Our goal during lobby day was to promote our Structural Integrity (S2760/A4384) and Fire Hydrant Maintenance (S2935/A3959) bills. We also timed lobby day to coincide with the Senate Community and Urban Affairs Committee hearing on the Structural Integrity bill. We started the morning with a meeting with Senator Troy Singleton, the primary sponsor of the Structural Integrity bill. Subsequently, Ed San George, David Ramsey, and Mitch

Frumkin gave extensive testimony before the Community and Urban Affairs Committee which lasted nearly an hour. They did an incredible job presenting the bill and answering the various questions posed by the Committee Members. As a result of their efforts, we are pleased to announce that the bill passed out of the Committee. As per the practice of the current legislature, the bill is now listed before the Budget and Appropriations Committee. During the day, we met with Assemblypersons Gerry Scharfenberger, Sterley Stanley, Clinton Calabrese, Carol Murphy, Don Guardian, and McCarthy Patrick. We also met with Senators Patrick Deignan and Nia Gill. Getting this face time with elected officials is crucial to our efforts, and we believe that both the Structural Integrity and Fire Hydrant bills were very well received. I want to give our NJ-LAC members a round of applause for dedicating their volunteer time and efforts to the cause. Of course, we could not achieve any success without our partners at MBI, and we thank Michele Jaker, Lisa Ginther, Richard Wright, John Hund, Trevor Mulhall, and Kristen Chilleri for their efforts on our behalf. n

“I want to give our NJ‑LAC members a round of applause for dedicating their volunteer time and efforts to the cause.”

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2022 CAI-NJ COMMITTEES

AWARDS COMMITTEE Mary Visco — Chair Annie Gonzales — Vice Chair Lindsay Bartlett-Cupples, EBP Neil Betoff

EDITORIAL COMMITTEE Carol Shenk, EBP — Chair Nicole Martone, CMCA, AMS, PCAM — Vice Chair Robert Arnone, CMCA, AMS Don Cabrera, CMCA Neeraj Chander

HOMEOWNER LEADERS COMMITTEE Vonetta Hawkins — Chair Howard Staum — Vice Chair Bruce Blum Roslyn Brodsky Barbara Finn Charles Fredericks Lois Gerber Salvatore Gurriero

MEMBERSHIP COMMITTEE Nichole Gist — Chair Tara Baldwin, CPA — Vice Chair Lysa Bergenfeld, Esq. Megan Elgard, EBP Nikolaos Haralambopolous, CPA Kathleen Radler Brent Rivenburgh, EBP Stephen Roderick, EBP Nikki Schillaci, EBP Ken Shah Board Liaisons: Charles Lavine Chris Nicosia, CMCA, AMS, PCAM

Jeanine Clark Drew Cowley Kim Dempsey Rebecca Gavin Craig Gotilla

David Dockery, Esq. Jonathan Katz, Esq. Michael Mezzo, CPA, MBA Steven Morris, PE, RS Casey Sky Noon Drew Podolski, Esq. Robert Roop, PE Michael Ryan Larry Thomas, PCAM Board Liaisons: Mary Barrett, Esq. Brooke Stoppiello-Nevins F.A.S.T. COMMITTEE Jessica Baker, Esq. — Chair Steven Kuhnert — Vice Chair Jonathan Cairone Chelsea Donnigan Eric Eggert, CIRMS Shelby Evans, CPA, CMCA Jeffrey Logan Staff Liaison:

Keira Hauck Richard Lans Cheryl Palent Ernie Standard Danita Susi Board Liaisons: Charles Lavine Robert Travis, CIRMS

Dan Jazwinski Lila Khiry Cirillo Christine Maldonado Kari Prout, CMCA Eileen Szelewicki, CMCA Sandi Wiktor Board Liaisons: Jeffrey Logan Tony Nardone, MBA, PCAM Staff Liaison: Jaclyn Oskierko BUSINESS PARTNER COMMITTEE David Velasco — Chair Gregory Vinogradsky, Esq., EBP — Vice Chair

Staff Liaison: Robin Surgent NETWORKING EVENTS COMMITTEE Daniel Reilly — Chair Jessica Marvel, EBP — Vice Chair Donna Belkot Dean Catanzarite Diane Cody, CMCA, PCAM Lawrence Cullari Catherine Daly Frank Fasolo Carmen Reino Kasey Ronan David Ross Rachel Rutman Sal Sciallo Melissa Volet, Esq. Board Liaisons: Charles Lavine Carol Nickerson, CMCA Staff Liaison: Jaclyn Oskierko WOMEN’S LEADERSHIP COMMITTEE Martinia Heath, CMCA, AMS — Chair Lirelle Klein — Vice Chair Amani Abdellah Jamie Cullen Ellen Goodman Cara Landolfi Kristin Marzarella Gail McDermid Jennifer Nevins, CMCA, EBP Jennifer O’Brien Cheryl Rhine, CIC, CIRMS, EBP Christina Sanclimenti Mariaellen Varelis Anne Yannarella, EBP Katie Zsamba Jill Zulin Board Liaisons: Mary Barrett, Esq. Kristina Munson, CMCA, AMS, PCAM Freedom Hildreth Richard Lang, EBP Laura McIntyre, EBP Debbie Pasquariello, CIC, CIRMS, EBP

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

Thomas Asciolla, EBP Theresa Beckett, EBP Jordan Burkhalter Jennifer Carr George Caso Martinez Carrie Fusella Michael Kaminski Terry Kessler, Esq., EBP Toni Licciardi Michael Luzzi, EBP Kim Manicone Donna Meyer, EBP Darric Mitchell, EBP Ben Mitrou Jason Sponzilli Perry Stavridis Jessica Vail, EBP Michael Vennitti, EBP Board Liaisons: Benjamin Basch, EBP Ryan Fleming, EBP

Kristi Evans Jessica Long Will Meola Matt Rahn

Jose Romero Dharmi Shah Peter Shine, EBP

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

Lauren Vadenais, EBP Kristy Winchock, EBP

Board Liaisons: Benjamin Basch Kristina Munson, CMCA, AMS, PCAM Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent GOLF COMMITTEE

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

Ross Rutman, EBP — Chair Fred Hodge — Vice Chair Chris Belkot

Staff Liaisons: Jaclyn Oskierko Robin Surgent CONFERENCE & EXPO COMMITTEE Joe Bonafede — Chair Saher Gouda, EBP — Vice Chair Shelia Adams, CMCA Jay Burak Nicole Camarota, CMCA AMS Angela Celeste Ellen Comiski, CMCA John Echelmeir

Harold Berlowe Robert DeSantis Keith Giliberti, RS Sal Iozzia Hank Johns, EBP Lisa Komitor Victoria Lazaro Cathy Mango, EBP Karl Meth, Esq. Paul Migliore

MANAGER COMMITTEE Vincent Rapolla, AMS — Chair Mary Barone, CMCA, AMS, PCAM — Vice Chair Ashley Gray, CMCA Chuck Graziano, PCAM Anthony Nazzaro Bob Rogers, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA, AMS Board Liaisons: Kristina Munson, CMCA, AMS, PCAM Carol Nickerson, CMCA

Wayne Napolitano Mike Polulak, Esq. Lisa Rayca David Salter David Shahrabani, EBP Jasmin Shelton Ryan Weiner Charles Witczak Paul Wojciechowski Board Liaisons: Steven Mlenak, Esq. Tony Nardone, MBA, PCAM Staff Liaison: Jaclyn Oskierko

Jessica Kizmann, CPA Priscilla Saint-Laurent Holly Teufel Board Liaisons: Ryan Fleming, EBP Chris Nicosia, CMCA, AMS, PCAM Staff Liaison: Jaclyn Oskierko

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Staff Liaisons: Jaclyn Oskierko Robin Surgent

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CHAPTER TRENDS

Denali Property Management is excited to welcome Katherine Henriques! With more than 15 years of experience in property management, Katherine stands as a leader in her industry. Katherine has managed high-rise buildings, condominium associations and townhomes in Bergen and Essex County and has recently been awarded recognition as a

2023 CAI-NJ Annual Awards Celebration • Submissions should not be advertorial in nature. Please note, CAI-NJ reserves the right to edit any submissions. The chapter reserves the right to omit information as necessary. CAI-NJ has the exclusive right to refuse to publish any submissions for any reason. For questions regarding the Chapter Trends section of Community Trends ® , please contact brooke@cainj. org or 609-588-0030. • All submissions must come from and be about: - A member of CAI-NJ (Manager, Management Company, Board Member, Business Partner or Business Partner Employee) in good standing. • Companies/Communities are permitted four (4) announcements per calendar year. • Submissions are limited to 150 words. - Members are responsible to condense the information appropriately, as CAI-NJ will not do so. Any submissions over 150 words will not be published. • Submissions may include (1) image. Chapter Trends Editorial Guidelines

Pinnacle Professional Member in the Continental Who’s Who Directory and recognition in Marquis Who’s Who. She attributes her success to her strong communication skills, her ability to multi-task, patience, resourcefulness, and flexibility. As part of her continued dedication to improving her skills, she is pursuing a Certified Manager of Community Associations certification. Her goal is to become the best version of herself, seeking to live a better life while serving her clients and her community effectively. n

The New Jersey chapter of Community Associations Institute celebrates excellence in the industry during the Annual Awards Celebration. Please read the instructions carefully below for the nomination and voting process. GENERAL RULES & INFORMATION: 1. Nominees must be a CAI-NJ member in good standing. [Contact the CAI-NJ office to confirm]. 2. Only CAI-NJ members in good standing will be permitted to submit a nomination. 3. Submit your nominations for the following categories on the CAI-NJ website via below at the link or by utilizing the QR Code by no later than Wednesday, December 1, 2022. - Candice Bladt Community Manager of The Year Call for Nomina ions Now Open!

- Community Association Board of the Year [Over 1,000 Units] - Community Association Board of the Year [Under 1,000 Units] - Outstanding Young Professional of the Year - Denise M. Becker Woman of the Year

https://cainj.org/awards-nominations/

Questions? Contact Jaclyn@cainj.org

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CAI-NJ 2022 PARTNERS

FWH Associates, P.A. GAF Hill Wallack LLP Kipcon Inc. McGovern Legal Services, LLC mem property management, co, inc, PS&S, LLC PuroClean of Hoboken, Jersey City, Fort Lee Rezkom Enterprises, Inc. Taylor Management Company, AAMC, AMO

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

Denali Property Management, Inc. The Falcon Group - Engineering, Architecture & Reserve Specialists

Technocality, Inc. WilkinGuttenplan

Accent Group Access Property Management 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

FirstService Residential, AAMC Greenbaum, Rowe, Smith & Davis, LLP Griffin Alexander, P.C. Guardian Service Industries, Inc. Innovative Pressure Cleaning, LLC The Jesan Companies JGS Insurance, a Baldwin Risk Partner KPI2 Enterprises, Inc.

O & S Associates, Inc. Pacific Western Bank Pardini R. Construction Corporation PeopleFirst Property & Casualty Services Popular Association Banking Preferred Community Management Services, Inc., AAMC 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 USI Insurance Services Valley Bank Witczak Engineering

Lemus Construction, Inc. L.N. Rothberg & Son, Inc. Mackoul Risk Solutions, LLC Morris Engineering, LLC National Contractors, Inc. National Cooperative Bank One Call Roofing & Siding

Clearview Washing, LLC Cowleys Pest Services Curcio Mirzaian Sirot, LLC Cutolo Barros, LLC

Dior Construction, Roofing, and Siding Environmental Designers Irrigation, Inc.

Renda Roads, Inc. South Shore Construction, LLC STAR Building Services Two Men Property Services Group, Inc Wilkin Management Group, Inc.

Accurate Reconstruction AR Management Company Design East, Inc. Eosso Brothers Paving Felsen Insurance Services, Inc.

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

Lawley Services, Inc. MyPropertyBilling.com Radom & Wetter

YOUR NJ-LAC & CA-PAC WORKING HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

Walk the halls of our capitol in Trenton and you see a lot of doors… doors to legislator’s offices… doors to committee rooms… doors to the Assembly and Senate chambers. It takes a lot to get through those doors. You’re not just invited in. You need a key. With a key you’re taken seriously. With a key, you get things done. THAT’S WHY CAI-NJ CARRIES THREE KEYS: • Your Legislative Action Committee (NJ-LAC): Your key eyes, ears, legs and voice in the legislative process. • Your Political Action Committee (CA-PAC): Your key contributions to support elected officials who aim to strengthen your community. • Your Professional Lobbyists: Your key, full-time pros retained by the LAC who know government’s ins and outs, advise us on who to see and when, and how to connect . WHAT CAN YOU DO?: • Take Action – Your voice is key! After meeting with elected officials and clarifying our position on pending legislation, we will alert you to the most crucial actions you can take. By calling or writing your officials, you ensure that your voice, and our agenda, is heard. • Give – Your donations are key! Supporting the PAC with your donations shows legislators that you’re serious, and that our cause counts. • Promote – Your personal influence is key! Talk about CAI-NJ’s legislative engagement in your community and business. Let fellow residents know that we’re fighting for them and their communities!

The keys only work with your support.

13 Make your gift to the CA-PAC today!

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Yes, I’d like to support CA-PAC with a pledge!

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

I AM A...

____ Community Association Manager. You represent a company or association who manages CAI-NJ communities.

____ Community Supporter. You represent a business that supports CAI-NJ communities with services or products.

____ Community Resident. You live in a CAI-NJ community and want to see it grow strong.

My Association/Management company is making a PAC gift of:

___ $250 ___ $500 ___ $1000 or $________

___ $100 ___ $250 ___ $500 or $________

My supporting business is making a PAC gift of:

I am personally making a PAC gift of:

___ $50 ___ $100 ___ $250 or $________

Community/Company: ________________________________________________________________________________________________ Individual Name:_____________________________________________________________________________________________________ MailingAddress:______________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________ Phone:_________________________________________________________Fax: ________________________________________________ Email:________________________________ Occupation:______________________ Employer:_____________________________________ Employer Address:___________________________________________________________________________________________________ City, State, ZIP:______________________________________________________________________________________________________

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

Management Company Name: _________________________________________ (Community Association’s Only)

DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS

The New Jersey Election Law Enforcement Commission requires us to collect and report the name, mailing address, occupation and name of the employer of contributors whose contribution exceeds $300 in a calendar year. Contributions to CA-PAC are not deductible for federal income tax purposes. Contributions are not limited to suggested amounts. CA-PAC will not favor nor disadvantage anyone based upon the amounts or failure to make PAC Contributions. Voluntary political contributions are subject to limitations of ELEC regulations. CA-PAC contributions are not considered payment of CAI dues. TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO : CA-PAC, 500 Harding Road, Freehold, NJ 07728

REPERCUSSIONS By Robert N. Roop, P.E., Lockatong Engineering Inc.

Paket/iStock/Getty Images

R epercussions of the Champlain Towers collapse in June 2021 continue reverberating throughout the con dominium real estate community. Here in New Jersey, legislation has been proposed governing the inspection of certain types of construction, typical for mid- and high-rise con dominiums. It also addresses the need for reserve funding for structural inspection and implementation of corrective measures that any inspection might uncover. While the bill’s final version is unknown, and if it will pass is uncertain, associations should know it is on the horizon and plan accordingly. For more infor mation on this topic, please refer to Ed San George, MPA, PCAM, INTEGRA Management Corp., AAMC and Mitch Frumkin, PE, RS, Kipcon, Inc.’s September 2022 Community Trends ® Article, Structural Integrity Inspection, Reserve Funding [see link* below] Another repercussion has been in the primary and sec ondary mortgage market. The primary mortgage market is where borrowers can obtain loans from primary lenders like banks, credit unions, or even individual investors.

These direct lenders can hold the mortgage, service the loan, and profit from the collection of interest. Alternatively, the primary lender can sell the loan in the secondary mortgage market. It is in their interest to do so because it frees up capital to make more loans. The Federal National Mortgage Association (known as Fannie Mae or FNMA), among others, purchases many mortgages in the second ary market. They, in turn, package bundles of loans known as mortgage-backed securities for sale to other investors. For the secondary mortgage market to operate successful ly, there must be some way to access the quality of the pri mary loan. That’s where Fannie Mae, for example, comes in. Fannie Mae sets guidelines for loans qualifying for their purchase in the secondary market. For loans to condomini um buyers, one of the documents Fannie issued in March 2016 to establish the quality of a loan is Form 1076. It is also identified as Freddie Mac Form 476. Initially, its primary objective was to document the financial health and risk management of the association.

CONT I NU E S ON PAGE 16

* https://user-cainj.cld.bz/2022-CAI-NJ-September-LAC-Issue/28/

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REPERCUSSIONS... from page 15.

are planning comprehensive structural inspections to be able to respond to the Addendum. A few commissioned inspec tions in late 2021 have already implemented programs of repairs. The domino effect of inspections will be on reserve funding. Even if it will require no structural repairs, a reserve study should include funding for future reserve studies and future structural inspections. While it is unclear what will be in any NJ regulation, recommendations are typically reserve studies every five years and structural inspections every ten years after a building is twenty years old. The Addendum requests the applicant to know well beyond the technical skills of most property managers. Accordingly, they recommend associations retain the services of licensed professional engineers or architect skilled in structural investi gations. To follow the structural inspection, it is important that reserve funding be evaluated to conclude the account can provide for any recommended repairs. New Jersey associations are well advised to pay close attention to the progress of Senate Bill S2760 as it makes its way through the legislature and plan inspections and funding accordingly. In addition, you can depend on Community Trends ® to keep you informed. n

Then in December 2021, the “Condominium Project Questionnaire Addendum” was issued. It asked specific questions about building structural inspections, repairs rec ommended and completed, and violations of codes related to safety, structural integrity or habitability. Further, there were questions about reserve funding, account balances, and funding for deferred maintenance. While the form is a Fannie document, it is intended to be used by the primary lender originating the loan. Since Fannie Mae uses the information of the form to qualify the loan for purchase in the secondary market, it is very much in the primary lender’s interest that all the data conforms to expectations of sound financial and property management. Typically, the form is completed by the condo association/homeowner associa tion or their property manager. Overnight, associations and property managers were asked to provide information on the building’s structural integ rity and the association’s ability to fund deferred maintenance. In response, we see a new level of activity. Some associations

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INTEREST RATES, Friend or Foe By Trevor Hintzen, Director, Webster Bank

T here is no doubt – we are living in uncertain times. From international conflicts to supply chain issues, unemployment, and inflation, banks are attempting to conduct business while trying to predict the future state of the economy. One prevalent indicator of how the economy is faring is the interest rate. Interest rates mean different things to different individuals and professionals. To a banker in the homeowners asso ciation (HOA) and condominium industries, it affects the metrics which may increase or reduce a client’s incentive. To others, it affects loan rates (i.e., credit cards, auto loans, mortgages, etc.) Whatever the point of focus, all banks are affected by interest rates and their approach to compensat ing for it may vary. The interest rate is set by the Federal Reserve Board as a mechanism to stabilize the economy. In this article, I will focus on the Feds’ use of its “most effective tool in its tool box” and its approach to the Federal Funds Target range (FFT) and discuss these impacts on interest rates. Before diving in, I’d like to just provide a general “con nect the dots” sequence of events on why rates spiked in 2021 to the present day. As we saw with Covid-19, there were many public and private sector responses. Production

and manufacturing slowed because factories closed. In some parts of the world, cities endured mandatory lock downs. Ultimately trade was impacted, and unemployment soared. The immediate response (amongst others) of our government included lowering interest rates and injecting capital into the economy. Individuals and corporations received cash payments to subsidize income and revenue. Additionally, home prices soared by as much as 30%. Fast forward – the economy began reopening and consumer behavior (spending) normalized. These were early indica tions and concerns for inflation. This is where the Feds’ tool comes off the bench. In an effort to curtail borrowing and shrink the economy to con trol overall rising prices for goods and services, the Feds aggressively began a series of increases to FFT. This is a short-term borrowing cost for banks; it trickles down to other types of interest rates — mortgages, car loans and credit cards. Some of the interest rates that consumers depend on when borrowing money. Back to the world of property management and home owner/ condominium association banking – Interest rates play a vital role in decision making. This began with capitalizing on what was then a low interest rate envi CONT I NU E S ON PAGE 20

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INTEREST RATES... from page 18.

decisions to consider alternative investments, such as trea suries. Measured strategies for rate of return had gained attention and took precedence over safety found under the FDIC umbrella. Associations with excess reserves found themselves willing to take longer term risk with the “almost” assurance of guaranteed return. In economic environments, there can be several solu tions for one problem - no one size fits all. There are also political factors which must be considered. Financial institutions will also have to consider regulatory implica tions on the continued deployment of capital and overall impact to the money supply. No individual or organiza tion has a crystal ball to predict the overall endgame. One thing for certain is the current rate of inflation is a problem, therefore, the expectation is there will be ongoing rises in interest rates. The current rate of FFT is 3.0 – 3.25% and New York Fed Reserve President, John Williams, predicts FFT will soon be over 4.5% to achieve two goals: maximum employment and price stability. This course, however, will increase the stress on banking’s HOA and condomnium business by reducing originations and promoting deposit attrition. n

ronment. Associations refinanced their mortgages, (some took out new debt). The banking system was also flushed with liquidity so there was no impetus to pay high rates on interest-bearing accounts and reserves. Banks intrinsically sustain themselves by the delta in which they lend money and pay interest – Net Interest Margin. Paying higher yields would be detrimental to the banking system and/or banks did not need funding. For boards, the risk of perceived gains outside the banking world was too great or unknown. Then the pendulum shifted... rates spiked, decisions reas sessed, and mindsets changed. Boards and management companies found themselves in a position on whether to pursue or rethink lending needs, realizing the cost of bor rowing increased. The concept of special assessments also became prevalent. Until now, borrowing funds at record lows overshadowed this discussion, which has immediate fiscal impact to residents. Unfortunately, there isn’t a right or wrong decision as interest rate pricing is relative to the market. Inversely, rising rates have encouraged boards’

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RESTRICTING RENTALS in Community Associations By Jonathan H. Katz, Esq., Hill Wallack LLP

MAYBE NOT!

I f you have been following the trends in the housing market over the last several years, you no doubt under stand that: (1) there is a current housing shortage; and (2) this shortage has caused both home prices and rents to skyrocket. The housing market has also experienced a significant increase in investors purchasing single-family homes, and units in condominium and homeowners associations in order to rent those homes, in some cases on a short-term basis. As a result, nearly one-third of all American home sales in 2021 were to investor-owners with no intention of living in that home. i Put this all together and these trends have caused considerable problems for potential first-time homebuyers and those seek ing to secure federally backed mortgages. ii And as can be

expected, these trends have also caused additional difficulties for community associations. An April 2022 survey iii conducted by the Foundation for Community Association Research found that 64% of those who responded said that their association prohibits short-term rentals (rentals less than thirty (30) days); however, only 20% of respondents said their associations limit the number long-term rentals within their community, while another 20% stated they have no rules restricting rentals in their communities. Of those surveyed, 62% said investor-owners do not maintain their units to the expected standards of the community. In addition, the survey found that 73% of tenants living in community associ ations are not familiar with the association’s governing docu ments, which, of course, can cause challenges to association boards in terms of rule enforcement and protection against property damage, and increased maintenance. CONT I NU E S ON PAGE 28

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RENTALS... from page 26.

must be provided to management, and all leases are subject to the terms and conditions of the association’s governing documents and rules and regulations; and (3) provisions relat ed to violations of those documents, which may lead to the required evic tion of the tenant by either the owner or the association when certain condi tions are met. However, due to the above-refer enced increase in investor-ownership, community associations are seeking to enforce stricter requirements for rental units. In some cases, associa tions have proposed amendments that require all new owners to personally occupy the unit for a period of time following the initial purchase (some times as much as twenty-four (24) months). Another method to enforce stricter rental requirements is to cap rental capacity, usually allowing no more than 25%-30% of the units in an

association to be leased at one time. An association can enforce these types of rental restrictions within a community if authorized by is govern ing documents. That is the case even if the original governing documents did not contain such restrictions but have been properly amended by the own ers to enact those restrictions. This was the issue in the case of Cape May Harbor Village and Yacht Club, Inc. v. Sbraga, where an owner in a small community challenged an amendment to the declaration approved by the owners that totally prohibited rentals. iv The court held that this amendment was valid and rejected the owner’s argument that since rentals were per mitted by the declaration when she bought her home, the owners could not now amend the declaration to prevent renting. However, in the deci sion, the court also applied a reason able standard, concluding that based on the facts of this case, the owners had a reasonable basis for adopting this specific amendment. As such, it is important to remember that whether a rental restriction will be deemed valid is determined both by the proper language of the governing documents (or amendment thereto), as well as the reasonableness of the restriction. This is evident from an “older” case that foreshadowed today’s short-term rental issues, In the Matter of 560 Ocean Club. v In that case, an investor-owner in a condo minium near the shore challenged the legality of a regulation enacted by the association’s board that required leases to be at least ninety (90) days during the summer months but only thirty (30) days in the winter months.

As a result of these trends and the problems created many association boards are now asking whether they can put restrictions in place to limit or even ban rentals in their commu nity associations (both short and long term). The answer to that question – with certain caveats – is yes. As a general rule, most associa tion governing documents (specifical ly, master deeds and declarations) include provisions that allow owners to rent their units with certain basic restrictions. Those restrictions may con sist of: (1) minimum lease terms, which can require a lease of no less than one (1) year, but can also be for short er periods, such as no less than six (6) months; (2) specific lease require ments, including that the lease must be for the entire unit, copies of the lease

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