Sept 2024

September 2024 Community Trends

®

LEGISLATIVE UPDATE

DNY59/iStock/Getty Images Plus

In This Issue

• CAI-NJ Challenge to Department of Community Affairs (DCA) Radburn Regulations • The State of the Corporate Transparency Act • S2760 & A4384 — Structural Integrity & Reserve Funding • Non-Compete • Recent Legal Developments Impacting Community Associations in New Jersey • Legislative Review ... and more!

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The Community Associations Institute New Jersey chapter would like to thank its 2024 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!

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MARCH 2024

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS 12 CAI-NJ Challenge to Department of Community Affairs

(DCA) Radburn Regulations By J. David Ramsey, Esq., CCAL Becker 18 The State of the Corporate Transparency Act By Gregory Vinogradsky, Esq., EBP Callahan & Fusco, LLC 20 S2760 & A4384 — Structural Integrity & Reserve Funding By Ed San George, MPA, PCAM INTEGRA Management Corp., AAMC 27 Non-Compete By Matthew Z. Earle, Esq. Kates, Nussman, Ellis, Farhi & Earle LLP 30 Recent Legal Developments Impacting Community Associations in New Jersey By Jennifer Alexander, Esq. Griffin Alexander, P.C. 42 Legislative Review By Mitchell Frumkin, PE, RS Kipcon, Inc.

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18

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EXTRAS President’s Corner Looking Ahead

5 6 7 8

CAI-NJ Upcoming Events

Legislative Update

Chapter Trends

11 11 18 21 24 29 33

27

Conference Kick--Off — Save the Date Annual Beach Party — Register Now!

F.A.S.T. School Supply Drive 2025 Partnership Program

F.A.S.T. Kickball Tournament — Register Now!

Learn with LAC — Register Now!

Wednesday Webinar — Complying with Radburn Practically & Realistically

35 2024 CAI-NJ Conference & Expo — Register Now! 37 Schedule 38 Manager’s All Access Pass 39 Why Board Members Should Attend 40

30

2025 CAI-NJ Board Member Nomination Form 9 and Nosh Registration & Sponsorships

41 43 44 45 47 51 53 56

42

New Members

Winter Break Party — Save the Date! 2024 Shoot the Cover Photo Contest

iStock/Getty Images Plus

Joint Manager/Business Partner Roundtable Registration

Join a 2025 CAI-NJ Committee 2024 Ultimate Partner Listings

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SEPTEMBER 2024

CAI-NJ BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

VICE PRESIDENT RYAN FLEMING, CIRMS, EBP JGS INSURANCE, A BALDWIN RISK PARTNER

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

PRESIDENT CHRISTOPHER NICOSIA, CMCA, AMS, PCAM RCP MANAGEMENT COMPANY, AAMC, AMO

SECRETARY MARY BARRETT, ESQ. STARK & STARK, ATTORNEYS AT LAW

TREASURER JOSEPH CHORBA, CPA WilkinGuttenplan

BOARD MEMBERS

Michael Flippin, CMCA, AMS, PCAM INTEGRA Management Corp., AAMC Community Association Manager Charles Lavine Traditions at Federal Point Condominium Association Homeowner Leader Tony Nardone, MBA, PCAM Corner Property Management, LLC, AAMC Community Association Manager

Cheryl Rhine, CIC, CIRMS, EBP USI Insurance Services Business Partner Robert Travis, CIRMS Long Beach Commons 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 Tony Nardone, MBA, PCAM Corner Property Management, LLC, AAMC

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SEPTEMBER 2024

PRESIDENT’S CORNER Christopher Nicosia, MM, CMCA, AMS, PCAM 2024 CAI-NJ PRESIDENT RCP MANAGEMENT COMPANY, AAMC, AMO

CAI-NJ TEAM

September is upon us, fellow CAI-NJ Members! Welcome to another edition of Community Trends ® ! T his month’s issue of Community Trends ® is our Legislative Update edition. As you know, one of the most important resources that CAI-NJ offers to our membership and the greater community association industry in New Jersey is legislative advocacy. Our New Jersey Legislative Action Committee (NJ-LAC) is one of the busiest and most influential of any chapter in the United States and I am proud to have this dedicated group of professional volunteers advocating on our behalf every day!

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 EDITORIAL & WEBSITE MANAGER BROOKE@CAINJ.ORG JOCELYN GARLOCK PROGRAMS & EVENTS COORDINATOR JOCELYN@CAINJ.ORG HELEN KIECHLIN MARKETING & MEMBER RELATIONS COORDINATOR HELEN@CAINJ.ORG

Over the last several years, our New Jersey Legislative Action Committee (NJ-LAC), MBI-Gluckshaw (lobbyist), Board of Directors, and Chapter Team have been working diligently to advance legislation that was in the industry’s best interest while aggressively lobbying to stop legislation that would be detri mental. Additionally, we filed litigation when regulatory agencies overstepped their authority to impose draconian reg

“Our New Jersey Legislative Action Committee (NJ-LAC) is one of the busiest and most influential of any chapter in the United States...”

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

ulations on community associations that drove up costs, increased administrative workload, and created contradictory provisions that made compliance difficult to impossible. These efforts took years to bring to resolution, and the dedication of all involved to reach the best solutions and outcomes cannot be understated. These efforts continue as new opportunities and challenges present themselves each day and I cannot thank our LAC, Board, Chapter Team, and MBI enough for their ongoing efforts to protect and advance our industry forward! The legislative docket continues to keep our LAC busy as it tracks various bills, including several that our LAC is actively engaging on to ensure positive outcomes. Please make sure to take time to read up on the various updates and explanations contained in this month’s issue, as many of these bills and regula tions will likely impact you in some way, shape, or form. As a (monthly) friendly reminder, compliance with the Corporate Transparency Act (CTA) is still required by the end of this year. The Community Associations Institute ® continues to pursue legislative and legal avenues to postpone and overturn this law, but at the present time, those efforts are still ongoing. As such, associations, management companies, and business partners are urged to plan for compliance before the end of 2024 to avoid violations of the Act, as

CAI-NJ on Social Media

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

@cainewjersey

CONTINUES ON PAGE 58

CAI-NJ

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SEPTEMBER 2024

LOOKING AHEAD ANGELA KAVANAUGH | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

T he New Jersey Legislative Action Committee (NJ-LAC) advocates for legislation affecting those living in Common Interest Communities (CICs) and industry professionals before legislatures and regulatory bodies. The committee members are all dedicated volunteers, homeowners, and business professionals, giving their time to monitor and support pending legislation. As you can see from this issue, presented by the NJ-LAC, which includes articles authored by the com mittee members, we are extremely fortunate to have such a devoted group of volunteers that are committed to improving the common interest communities in which many of us work or live. Please support your PAC. The NJ-LAC needs the finan cial support of CAI-NJ members. The funds raised by the Community Association Political Action Committee (CA-PAC) ensure that the NJ-LAC’s members can attend fundraisers, allowing them facetime with legislators that assist with import ant legislation affecting CICs. CLICK HERE, to make YOUR contribution today! Upcoming PAC events – • CA-PAC 9 and Nosh, on Tuesday, October 1, 2024, at Concordia Golf Club in Monroe. Join us for 9 holes of golf, networking, food & beverages all while supporting CA-PAC! All skill levels are welcome. • Fall Pints with PAC, on November 6, 2024, at Chickie’s in Pete’s in Bordentown. CA-PAC invites you to a happy hour that helps support their efforts all while enjoying pints and networking with colleagues! CAI Legislative Tracking Map — CAI’s Government and Public Affairs team monitors legislation and public policy impacting CIC’s as well as the industry, for all states. The public policy map is an excellent resource for continued updates on new bills and bill status updates. CLICK HERE to access this resource. CAI-NJ Partnership Program — If you are a CAI-NJ management company or business partner member and

“New this year, there will be two education tracks each created for homeowner leaders and community managers.” Exposition Center in Edison. Community association home owner leaders and managers, this is an excellent opportu nity to learn what is trending in our industry while visiting our vendors to have your questions answered on issues affecting your communities. New this year, there will be two education tracks each created for homeowner leaders and community managers. Please refer to page 38 for the program schedule. Don’t forget, there will be multiple $1,000 drawings throughout the day plus tons of chances to win fun prizes. So, attend the 2024 CAI-NJ Conference & Expo. It’s a WIN -WIN opportunity that you won’t want to miss. Registration is now open for attendees. Click here for additional details and to register. And let’s not forget… School Supply Drive – CAI-NJ’s F.A.S.T. is currently col lecting basic school supplies for the for teachers where you can shop right off their Amazon Wish Lists! Items can also be collected at the CAI-NJ Beach Party on September 12th CONTINUES ON PAGE 55 would like to increase your exposure within the industry, consider joining the CAI-NJ Partnership Program. It is a cost-effective opportunity to gain guaranteed top exposure through advertising, partnership branding, and signage, acknowledging your company as an exclusive CAI-NJ Partner, in addition to the included tickets for the major chapter events. Please see page 24, in this issue for further information. 2024 CAI-NJ Conference & Expo is set for Thursday, October 17, 2024, at the New Jersey Convention &

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SEPTEMBER 2024

CALENDAR 2024 Events & Education

SEPTEMBER Beach Party

NOVEMBER

12 17 25

6 6 21

Community Conversations Live Virtual

Martell’s Tiki Bar, Pt. Pleasant

Learn with LAC Webinar Virtual

Fall Pints with PAC Chickie’s and Pete’s, Bordentown

Wednesday Webinar - Complying with Radburn Practically & Realistically Virtual

Make-A-Wish Check Presentation Breakfast & Castle Tour Make-A-Wish New Jersey Castle, Monroe Twp.

26

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

DECEMBER

3 3

Annual Meeting & Chapter Retreat Grand Marquis, Old Bridge

OCTOBER

1 8

Winter Break Party Grand Marquis, Old Bridge

CA-PAC - 9 & Nosh Concordia Golf Club, Monroe Twp.

Joint Roundtable Discussion Regency at Monroe, Monroe Twp.

16 17

Conference Kick-Off Sheraton, Edison

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

Annual Conference & Expo New Jersey Convention & Exposition Center, Edison

LEGISLATIVE UPDATE

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

Y our New Jersey Legislative Action Committee (NJ-LAC) is pleased to present you with this series of articles about recent legislation. The dedicated volunteer members of the NJ-LAC review hundreds of bills and pro posed regulations each year for the benefit of New Jersey community associations. After deciding whether the pro posed law will impact community associations, we narrow it down to a list of key bills to track and, if advisable, inter act with. The interaction involves meeting with the sponsors of the bills, discussing our concerns, and proposing chang es that we believe are beneficial to our constituents. While we sometimes oppose a bill completely, we always attempt to find common ground with the sponsor first to both assist them in solving the problem that needs to be addressed and protect your interests. The bills that we interact with run the gamut from com munity association specific bills to employment bills, to national security legislation such as the recent Corporate Transparency Act. In that connection, we are very fortunate to have subject matter experts on the committee such as property managers, insurance professionals, professional engineers, accountants, and attorneys. In addition, we regularly engage in outreach and edu cation. This involves webinars, speaking engagements, articles, and email alerts. It also involves less formal meth ods, such as answering questions from our constituents and assisting lawmakers in resolving issues that their constituents may have with their community associations. I don’t think its bragging to say that for a number of years now (and preceding my tenure as chairperson), the LAC has been incredibly successful in influencing the laws that

“The bills that we interact with run the gamut from community association specific bills to employment bills, to national security legislation such as the recent Corporate Transparency Act.” impact you, especially in light of our volunteer status and the fact that we are not backed by “big business.” We have from time to time been opposed by powerful interests and have been successful in prosecuting our case before your lawmakers, as seen in the expansion of the communi ty association lien law, the Radburn statute, expansion of statute of limitations protections in community association transitions, the structural integrity and reserve funding law, and many more examples. Therefore, I would like to take this opportunity to thank our LAC members who dedicate their time and expertise to the cause. We also need to thank our lobbyist Michele Jaker and her team at MBI. We should be proud of the work that we have done and will continue to do. Finally, we need to thank our Community Associations Political Action Committee (CA-PAC) for their work in raising the funds needed to make all of this possible. If you appreciate the work that we do, I encourage you to consider volunteering for a CAI committee and to support the PAC with donations and participation at its events. You will find that while we are volunteers, the work is its own reward. n

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

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SEPTEMBER 2024

2024 CAI-NJ COMMITTEES

AWARDS Lila Khiry Cirillo — Chair Kim Dempsey — Vice Chair Liz Bonafide Jeanine Clark, Esq. Drew Cowley Lindsay Cupples, EBP Michelle Gadaleta Kristin Guinan Nick Haralambopoulous, CPA Christine Maldonado Matthew Manley Newlin Peng Kari Prout, CMCA Eileen Szelewicki, CMCA Mary Visco Board Liaisons: Steve Mlenak, Esq. Chris Nicosia, CMCA, AMS, PCAM Staff Liaisons: Jocelyn Garlock Jaclyn Oskierko BUSINESS PARTNER Mike Luzzi, CPIA, EBP — Chair Theresa Beckett, EBP — Vice Chair Jack Benson

EDITORIAL Drew Podolski, Esq. — Chair Casey Noon — Vice Chair Robert Arnone, MSRE, CMCA, AMS David Cerqueira, Esq. David Dockery, Esq. Damon Kress, Esq. Nicole Martone, CMCA, AMS, PCAM Michael Mezzo, CPA Steven Morris, RS Andrew Newman, CMCA, AMS, PCAM Board Liaisons: Mary Barrett, Esq. Staff Liaison: Brooke Stoppiello-Nevins EVENTS Diane Cody, CMCA, PCAM — Chair Randy Vogel — Vice Chair Anthony Gjergji Maria Mikowski Debbie Pasquariello, CIC, CIRMS, EBP Alexandra Pollera Lyly Ton Melissa Volet, Esq. Jill Zulin Board Liaisons: Charles Lavine Tony Nardone, MBA, PCAM Staff Liaisons: Jocelyn Garlock Jaclyn Oskierko F.A.S.T. Jessica Long — Chair Eric Eggert, CIC, CIRMS, EBP — Vice Chair Adara Azeez Chelsea Brodmerkel Rebecca Gavin Steven Kuhnert Mary Ellen Liberatore, Esq. Will Meola, RS Marian Miawad, Esq. Nicole Miller, Esq. Kristina Munson, CMCA, AMS, PCAM, CPM Jen O’Brien Jose Romero, EBP Dharmi Shah Peter Shine, EBP Jimmy Stovall Lauren Vadenais, EBP Michael Vargetto Kristy Winchock, EBP Board Liaisons: Michael Flippin, CMCA, AMS, PCAM Cheryl Rhine, CIC, CIRMS, EBP Staff Liaisons: Brooke Stoppiello-Nevins Robin Surgent Jonathan Cairone Melanie Donnoli Kristi Evans Shelby Evans, CPA, EBP Nicole Ancona Michael Blaney Tim Bruchez Dean Catanzarite Justine DelVecchio Mary DeNone Frank Fasolo

GOLF OUTING Lisa Komitor — Chair Jasmin Shelton — Vice Chair Chris Belkot Harold Berlowe, CMCA Lorenzo Cullari, AICP Marty Ehrlich Donna Fiore, CMCA Keith Giliberti, PE, RS, EBP Fred Hodge, EBP Sal Iozzia Hank Johns, EBP Cathy Mango, EBP Karl Meth, Esq. Paul Migliore Mike Polulak, Esq. David Shahrabani, EBP Jodi Smallwood Michael Sturchio Ryan Weiner Paul Wojciechowski Board Liaisons: Michael Flippin, CMCA, AMS, PCAM Tony Nardone, MBA, PCAM Staff Liaisons: Jocelyn Garlock Jaclyn Oskierko HOMEOWNER LEADER Lois Gerber — Chair Bruce Blum — Vice Chair Joseph Branciforte Roslyn Brodsky Barbara Finn, CMCA Charles Fredericks Carl Kentzel Thomas Krieger

MANAGER Chuck Graziano, PCAM — Chair Mariaellen Varelis — Vice Chair Antoinette Hutchinson Richard Mattalian, CMCA, AMS, PCAM Erin O'Reilly, CMCA, AMS, PCAM Dan Penix, CMCA Vince Rapolla, AMS, PCAM Christopher Spagnuolo Erin Spiliotopoulos, CMCA, AMS Barbara Strubel, CMCA Elaine Warga-Murray, CMCA, AMS, PCAM Board Liaisons: Michael Flippin, CMCA, AMS, PCAM

Staff Liaisons: Jaclyn Oskierko Robin Surgent MEMBERSHIP Tara Baldwin, CPA — Chair Ken Shah — Vice Chair Lysa Bergenfeld, Esq. Jeffrey Cuevas Megan Brazil, EBP Nichole Gist Melissa Lloyd, CMCA, AMS

Kim Manicone, EBP Francisco Marcucci Kathleen Radler

Joe Cunningham Glenn Fedale, Sr. Carrie Fusella Dave Kiessling, RS, EBP Richard Lang, EBP Christopher Lugara Fran McGovern, Esq. David McNamara Chris Merkler Donna Meyer, EBP Jonathan Moscou John Prisco, Esq., EBP

Brent Rivenburgh, AAI Steve Roderick, EBP Michael Ryan Larry Sauer, CPM, CMCA, PCAM

Denise Schiera Ryan Trembley Board Liaisons: Joe Chorba, CPA

Richard Lans Cheryl Palent Board Liaisons: Charles Lavine Bob Travis, CIRMS

Charles Lavine Staff Liaisons: Robin Surgent WOMENS LEADERSHIP

Ross Rutman, EBP Herman Shaugger David Velasco, EBP Gregory Vinogradsky, Esq., EBP Board Liaisons: Joe Chorba, CPA Ryan Fleming, CIRMS, EBP Staff Liaisons: Jaclyn Oskierko Robin Surgent CONFERENCE & EXPO Shelia Adams, CMCA, AMS — Chair John Echelmeier — Vice Chair Tom Anzalone Brian Aubrey, PCAM

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

Jamie Cullen-DeVries, CMCA, AMS — Chair Linda Courain, CMCA, AMS — Vice Chair Jennifer Carr Alexis Dairman, Esq. Beth Duffy, CMCA Kimberly Finno Patricia Foltanski Jessica Kizmann, CPA Lirelle Klein Elizabeth Maltais Jessica Marvel, EBP Kristin Marzarella-Amato Shannon McCormick

Rachel Neves Anita Rothery Nikki Schillaci, EBP Board Liaisons: Mary Barrett, Esq. Cheryl Rhine, CIC, CIRMS, EBP

Martin Bahner Michael Blaney Joe Bonafede Jay Burak Jordan Burkhalter, CPA John Desien Ellen Comiski, CMCA Marty Conway

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

Staff Liaisons: Jaclyn Oskierko Robin Surgent

Anthony Dellanno Saher Gouda, EBP James Kiernan George Caso Martinez Jerome Quagliozzi Holly Teufel, CMCA, AMS Board Liaisons: Ryan Fleming, CIRMS, EBP Chris Nicosia, CMCA, AMS, PCAM

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

Staff Liaisons: Jocelyn Garlock Jaclyn Oskierko

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SEPTEMBER 2024

CAI-NJ 2024 PARTNERS

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

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National Contractors, Inc. National Cooperative Bank O & S Associates, Inc. Parallel Architectural Group Pardini R. Construction Corporation

Popular Association Banking Quality 1st Contracting, Inc. Rainbow G & J Painting, LLC Regal Restoration USA

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Accurate Reconstruction APC Hospitality, LLC AR Management Company Association Advisors NJ Association Reserves BlueSky Restoration Contractors LLC Core Maintenance Construction Down to Earth Landscaping, Inc. Felsen Insurance Services

MyPropertyBilling.com SmartStreet Powered by BANC of California Preferred Community Management Services, Inc., AAMC

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CHAPTER TRENDS

Rebecca Gavin Moving up at JBCI After a very fulfilling internship at JBCI Engineers in 2019, Rebecca has decided to accept the full-time position offered following her graduation. She says that the work has been exciting and rewarding since day one. She truly feels that she has been able to make a difference by making

• 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. • 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. Chapter Trends Editorial Guidelines

structures safer, more beautiful, and watertight. Throughout the past four years Rebecca has been able to expand her knowledge and experi ence in the industry but also generally as a professional. She has had the privilege to work with great people, amazing projects, and join welcoming organizations. CAI-NJ has been a huge help in her journey to continue growing her network and making great connections. She can’t wait to see what the future holds! n

Send your items for Chapter Trends to brooke@cainj.org

11

SEPTEMBER 2024

CAI-NJ Challenge to Department of Community Affairs (DCA)

Radburn Regulations By J. David Ramsey, Esq., CCAL, Becker

“As is often the case in complex litigation, CAI-NJ was successful on several of its claims, but not all. “

I n 2017, the New Jersey legislature adopted, and the governor signed, what is commonly known as the Radburn Election Law. That law provided common sense requirements to be followed by community associations when carrying out elections. The New Jersey Legislative Action Committee (NJ-LAC) worked with then Senator Robert Gordon to ensure that the statute would create open and transparent elections of the members of a governing board without unduly burdening the association. The law was well accepted and worked as intended until May of 2020 when, in the midst of the pandemic, the New Jersey Department of Community Affairs (DCA) pub lished regulations under the Radburn Election Law that went well beyond the confines of that law. In August of 2019, the LAC had commented extensively on the DCA regula

tions, pointing out where they were unduly burdensome or unauthorized by the law previously adopted. When the DCA published the final regulations, it ignored virtually all the comments offered by the LAC. In 2021, CAI-NJ authorized the filing of suit against the DCA seeking to invalidate or force a modification of a number of the regulations. After several procedural litigation hurdles were resolved the Appellate Division of the New Jersey Superior Court published its decision on February 23, 2024. As is often the case in complex litigation, CAI NJ was successful on several of its claims, but not all. The main issues resolved by the court are as follows: • The challenge to counting votes publicly, which can result in sacrificing anonymity when the count occurs in person, was rejected. The Court found that since one CONTINUES ON PAGE 14

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SEPTEMBER 2024

DCA CHALLENGE... from page 12.

Nonetheless, the ruling supported the double-envelope system. • In upholding the DCA’s regulation mandating that owners have until five business days before election to become current in the payment of fees, the court appeared to have misconstrued the Nonprofit Corporations Act, to which the overwhelming majority of associations are subject. That act provides that in the absence of the corporation’s bylaws setting a “record date” for determining good standing, a default of 10 days before the meeting applies. The court took pains to point out that provision only applied to “mem bers meetings,” not elections meetings, failing to recognize that election meetings are invariably members’ meetings. • CAI-NJ claimed that the DCA regulation requiring the reservation of a seat on the board for affordable owners was not supported by the Radburn Election Law. The court agreed, finding “An agency may not adopt reg ulations that, rather than fill in gaps in the statute, alter the terms of a legislative enactment or frustrate the policy embodied in the statute.” Hence it reversed the DCA regulation on that issue.

purpose of the Radburn Election Law was to ensure “fair and open” elections it was within DCA’s authority to adopt this regulation. However, the court did confirm that “public tallying” means only the actual counting of the ballots. It does not include determining the eligibil ity of owners to vote nor does it prevent opening the outer and inner envelopes outside of the public when a double-envelope system is used. This clarification is useful in understanding the limited nature of the tallying requirement. • Similarly, the court rejected the challenge to anonymous balloting and the requirement that a double-envelope system be used, finding that it does not impose an undue burden on associations. One of CAI-NJ’s arguments on this point suggested that this was particularly problemat ic when weighted voting is required. The court seemed to misapprehend the fact that placing the weight of each vote on the ballot may sacrifice the identity of the voter.

CONTINUES ON PAGE 16

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SEPTEMBER 2024

DCA CHALLENGE... from page 14.

• Next, the court dealt with the DCA regulation that mandated matters deemed confidential by the Condominium Act and Planned Real Estate Full Disclosure Act (PREDFDA) must still be voted on in a meeting open to the members. The court rejected the DCAs posi tion on this regulation and reversed the regulation, finding that a plain reading of the relevant statutes did intend to exclude those votes from an open meeting. The regulation was overturned. • In connection with a regulation that required associations to maintain electronic recordings of minutes available for 90 days, the DCA

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CAI-NJ advises that for training, marketing or other purposes, all events may be recorded, videotaped and/or photographed. By attending a CAI-NJ 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.

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SEPTEMBER 2024

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Experience Excellence: With over three decades in the field, our expertise speaks volumes. Team Collaboration: Our approach involves working hand-in-hand with your board, alleviating all pressures and stresses. Human-Centric Service: Tired of automated responses? A live person will always answer your calls with personalized service, every time. 24/7 Emergency Assistance: Emergencies don't wait for office hours. That's why we provide round the-clock live emergency service, ensuring peace of mind for all residents. Listening, Learning, Leading: We understand the power of listening. We value hard work and embrace each day as an opportunity to learn something new—empowering us to serve you better.

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The State of the Corporate Transparency Act By Gregory Vinogradsky, Esq., EBP, Callahan & Fusco, LLC

B y now, most members of the Community Associations Institute (CAI) have heard of the Corporate Transparency Act (“CTA”) and are likely preparing for compliance. The CTA is a 2021 federal law that went into effect this year that requires most corporations, including community associations, to report and disclose specific information 1 of board members and others that exercise “substantial control” over the corporation. Failure to comply subjects the corporation to stiff penalties (up to $500/day) and up to two years of imprisonment for senior officials. To no one’s surprise, many corporations pushed back against this federal law and argued that compliance was confusing and an overreach by congress. CAI has made similar arguments since community associations are low risk for the types of crimes the law is intended to deter (terrorist

financing & money laundering), and many community associa tions already have issues in attracting volunteers to serve on their boards. As such, CAI is seeking a carve-out for community associations, or a delay in its enforcement

to properly educate its members on compliance. In 2022, the law was challenged in federal court by the National Small Business Association and on March 1, 2024, one federal court held that the CTA exceeded Congress’s consti tutional powers. Ultimately, the decision was appealed by the federal government and is pending in the 11th Circuit Court of Appeals. CAI has recently decided to file its own lawsuit that will seek similar relief. In addition to legal challenges, certain members and committees of con gress have sought its repeal and/or delay in response to complaints from their constituents. While the CTA continues to be challenged in court and congress, the deadline for compli ance (December 31, 2024) is rapidly approach

ing. Board members, management companies and professionals must begin developing and imple menting policies on reporting, with the understanding that “reporting companies” must also provide certain disclosures and may also be responsible for their client’s non-compliance. Candidates that may be running for board positions must also understand that they must comply with the CTA if they are elected, or else face the possibility of removal. As always, the LAC will continue monitoring the CTA and advise if there are any new developments. n

NOTE: 1 Legal name, (2) date of birth, (3) current address and (4) personal identifying number from an acceptable government issued document to be uploaded on https://fincen.gov/boi.

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S2760 & A4384 — Structural Integrity & Reserve Funding By Ed San George, MPA, PCAM, Vice Chair New Jersey Legislative Action Committee, INTEGRA Management Corp., AAMC

A s this article is being written we are nearly eight months into the Structural Integrity and Reserve Funding Law (S2760 and A4384), which was signed by the Governor on January 8, 2024. This was a momentous and proudful occurrence for CAI and our industry. Meaningful legis lation that has a positive impact on safeguarding building safety and securing the financial health of our communities is not an everyday legislative accomplishment and benefit. What have we experienced since the enactment of the law? First, it certainly seems that there is widespread awareness and acceptance of the law within community associations and all professionals serving associations. Second, there has been ongoing CAI related educational and training programs focusing on adapting to and implementing the requirements of the law with our constituent homeowner and managerial mem bership along with industry trade associations such as the NJ Relator Association and sessions with both attorneys and engi neers. Lastly, members of the LAC have responded to specific inquiries referred to us by our lead sponsor of the law, Senator Singleton, though very minimal.

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F.A.S.T.

SCHOOL SUPPLY DRIVE

Please help CAI-NJ F.A.S.T. by supplying the basic tools for these hard-working teachers this school year! Donations will benefit several local teachers. Please visit the link provided to visit and shop the teacher’s Amazon Wish Lists. Items will also be collected at the CAI-NJ Beach Party on Thursday, September 12th or you can drop them off at the CAI-NJ office by the date of the event!

CLICK THE LINK BELOW OR SCAN THE QR CODE FOR DETAILS

https://cainj.org/supply-drive

S2760 & A4384... from page 20.

What now are the practical applications of the new law? For covered buildings that are impacted by the structural integrity portion of the law requiring inspec tions if the buildings are over 15 years old, those associations have two years from enactment of the law to produce and approve a struc tural inspection report. Boards and management companies are securing proposals from engineering firms and beginning to receive reports. For all associations who have not had a reserve study completed within the past five (5) years, those associ ations are or should be getting new reserve studies for their communities. They have within one year of enact ment of the law to obtain the reserve study and implement the recommen dations into their budget. There are also many associations that are going through their routine of updating their reserve studies on their normal 2 ‑ 4-year refresh of the report. For those getting first time reports, or updates, the information contained in the new reserve studies has changed. What has changed in the reserve studies? In accordance with the law, asso ciations need to fund, minimally, to a zero baseline of reserves, as exhibit ed in the required 30-year cash flow funding plan. Associations may not fund with a plan that takes them below zero baseline or negative balance funding. The CAI Reserve Standards provide for full funding, threshold fund

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CONTINUES ON PAGE 52

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SEPTEMBER 2024

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2025 PARTNERSHIP PROGRAM

The 2025 Community Associations Institute New Jersey chapter Partnership Program offers Business Partner and Management Company members exclusive perks and branding opportunities. You must be a current CAI-NJ Business Partner or Management Company member in good standing to qualify for the 2025 Partnership Program. This Program offers 3 different exclusive levels of participation: Ultimate, Elite, and Premier. Each level was designed to offer specific benefits. Choose which level serves the needs of your company best. Ultimate and Elite levels are currently full/reserved for continuing partners from 2024. If you are new to the program or would like to upgrade, you may register and be added to our wait list. WHY PARTICIPATE? The Partnership Program provides cost effective, guaranteed exposure including enhanced advertising placements, increased brand recognition and special acknowledgment on signage at events and CAI-NJ publications. Your company will receive cost effective, prominent exposure in New Jersey’s community association industry, exclusive to 2025 Partnership Program participants. CAI-NJ offers opportunities for you to promote your business and make connections. Partnership demonstrates a high level of support for the chapter and helps execute programs for its members.

EXCLUSIVE 2025 PARTNER PERKS!! ULTIMATE • Award Recognition at the Annual Awards Celebration • Meet the Ultimate Partner Social Spotlight • Superbowl Partnership Pool • Website Tab Drop Down Listing ELITE • Superbowl Partnership Pool • Website Tab Drop Down Listing PREMIER • Superbowl Partnership Pool • Website Tab Drop Down Listing • Logo included on Online Service Directory Listing

MARKETING & BRANDING OPPORTUNITIES

ULTIMATE

ELITE

PREMIER PARTNER ($3,850)

PARTNER PARTNER ($7,150) ($11,000)

CAI-NJ WEBSITE

Company Name on CAI-NJ’s Website Company Logo on CAI-NJ’s Website with Link Homepage Tab with Dropdown Recognition Recognition in Community Trends ® Magazine Company Listing With Contact Info in Every Issue Logo Placement on Front Inside Cover Monthly COMMUNITY TRENDS ® MAGAZINE CAI-NJ ONLINE SERVICE DIRECTORY Listing with Logo on CAI-NJ’s Online Service Directory CAI-NJ PRINT MEMBERSHIP DIRECTORY B&W Ad in the Print Membership Directory Full Color Ad in the Print Membership Directory Additional Copies of the Membership Directory Awards Celebration Conquer + Connect Dennis R. Casale Memorial Golf Outing Beach Party EVENT TICKETS

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2 T ickeTs 1 T ickeT 1 F ouRsome

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2 T ickeTs 2 T ickeTs 2 T ickeTs

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Conference Kick-Off Winter Break Party

Conference & Expo Standard Booth Unlimited Booth Representatives ANNUAL CONFERENCE & EXPO

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X X

List With Name & Company/Community Prior to Events List With Name, Company/Community & Email Address After Events NETWORKING EVENT ATTENDEE LISTS (EXCLUDING CONFERENCE & EXPO) Super Bowl Partner Pool Golf Tee Sponsorship Golf Green Sponsorship Ultimate Award Recognition at Annual Awards Celebration Exclusive Ultimate Networking Event Exclusive Door Prize at Winter Break Party & 20 Extra Door Prize Tickets to Distribute at Event One (1) Email Blast Advertisement with Website Link Sent out to Entire Membership One (1) Exclusive Meet the Ultimate Partner Social Spotlight Option to Purchase One (1) Exclusive Email Blast Advertisement with Website Link Sent Out to Entire Membership Logo and Link on the CAI-NJ’s E-Newsletter Once a Month Ultimate Partners will Receive One (1) Additional Seat on a Committee in a Given Year ADDITIONAL MARKETING/BRANDING SPONSORSHIP

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2025 PARTNERSHIP PROGRAM REGISTRATION FORM

GENERAL INFORMATION: (PLEASE PRINT) Company: _____________________________________________________________________________________________________ Primary Contact: __________________________________________Email: _________________________________________________ Alternate Contact: _______________________________________Email: ________________________________________________ Address: _____________________________________________________________________________________________________ City: _____________________________________________________ State: _______________ ZIP: __________________________ Phone: ____________________________ Alternate Phone: ____________________________ Fax: ___________________________ 2025 PARTNERSHIP PROGRAM RATE: PREMIER $3,850 ELITE $7,150 [2024 Elite Partners only.*] ULTIMATE $11,000 (2024 Ultimate Partners only.**) *I am interested in being added to the wait list for ELITE PARTNERSHIP if space becomes available.

**I am interested in upgrading to ULTIMATE PARTNERSHIP if space becomes available. (Must have been a 2024 Premier or Elite Partner to qualify. Elite Partners receive first priority.)

BILLING PREFERENCE: (CHECK ONE) Annually

Semi-annually (CREDIT CARD ONLY) - I agree that my final balance must be paid by 6/2/25.

PAYMENT: (CHECK ONE) 1. PAY BY CHECK: Check Enclosed for FULL PAYMENT (MADE PAYABLE TO CAI-NJ)

Mail completed form with check to: CAI-NJ, Attn: Partnership Program 500 Harding Road, Freehold, NJ 07728

2. PAY BY CREDIT CARD: View your invoice directly by logging in to your member portal and pay online by visiting www.cainj.org

Please note: Cardholder acknowledges receipt of goods and/or services in the amount of the total shown hereon and agrees to perform the obligations set forth in the cardholder’s agreement with issuer. All payments for the above selected are to be charged on or before deadline of Friday, December 5, 2024 and remaining balance to be charged on June 2, 2025. Cardholder further acknowledges that the Partnership Program is for a one-year term and the split payment installment is only an accommodation for participants in the program and that the program commitment is for an entire calendar year. If the final balance is not received by June 2, 2025, all benefits will be suspended until payment is made. TERMS & CONDITIONS: I affirm that I am authorized to make the above Partnership commitment on my company’s behalf. I have read and understand the Partnership Program is sold as a benefit package, not individually and agree to pay in accordance with my selected billing preference and payment option listed above. Partnership refunds or cancellations cannot be made after the contract is signed as potential partners may be turned away as a result of your acceptance. I understand that this form becomes a contract when signed. Please note that by signing up for the 2025 Partnership Program, CAI-NJ holds the right to make changes to benefits, events and programming throughout the course of this agreement. I understand and accept that changes to offerings during the contract period by CAI-NJ that are deemed necessary by the chapter to accommodate acts of god, pandemics, governmental orders, etc. may be made at any time, at the sole discretion of CAI-NJ, including but not limited to virtual substitutions in lieu of in-person events. I understand that if I or anyone from my company is no longer a member in good standing or violates either the suitcasing and or the code of conduct, at the discretion of the CAI-NJ Board of Directors, this contract may be rescinded without refund. Name: _________________________________________________________________ Date: _______________________ Signature (Authorizing Officer): ________________________________________________________________ ___________

REGISTER NOW! APPLICATIONS & PAYMENT DUE BY DECEMBER 5, 2024.

Questions? Contact Robin at (609)588-0030 or email: Robin@cainj.org

NON-COMPETE By Matthew Z. Earle, Esq., Kates, Nussman, Ellis, Farhi & Earle LLP

“The rule further provides that...any existing non-competes are invalid, except for those between the employer and a ‘senior executive.’”

O n April 23, 2024, the Federal Trade Commission (“FTC”) issued a rule that bans all new “non-com pete” agreements between an employer and an employee as of the rule’s effective date which is September 4, 2024. According to the FTC, it adopted the rule because empirical research shows that non-competes “tend to harm competitive conditions in labor, product, and service market.” The FTC further noted that “even middle-in come and low-wage workers” are subject to non-competes on a widespread basis, and that approximately 1 in 5 American workers (30 million) have a non-compete with their employer. The rule defines a non-compete agreement as a term or condition of employment that prohibits a worker from: (1) seeking employment within the United States with a differ ent employer upon the conclusion of the current employ ment; or, (2) from operating a competing business upon the conclusion of the current employment.

The rule further provides that as of September 4, 2024, any existing non-competes are invalid, except for those between the employer and a “senior executive.” To be classified as a senior executive, the employee must earn at least $151,164 and be in a “policy-making position.” A “policy-making position” is defined as a president, CEO, or other officer of the employer that has authority to make company policy. The rule declares that it is illegal, unfair competition to enter into or attempt to enter a non-compete, to enforce or attempt to enforce a non-compete, or to represent that the employee is subject to a non-compete. In addition, as of September 4, 2024, you must notify any employee who was previously subject to the non-com pete clause that the employee is no longer subject to same in writing sent via hand delivery, mail, email, or text mes sage. The language for the required notice is set forth in the rule. CONTINUES ON PAGE 28

Jertography/iStock/Getty Images Plus

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