September2017

for most board seats. The catch? The nominating committee is controlled exclusively by the board. The owners are not members of the association. Only those who have served or are serving on the governing board are members of the Radburn Association. In 2006, a group of owners sought the aid of the courts in efforts to kick wide open the election doors long closed to only the select few already serving on the Board or their allies. Ultimately, though, an appellate court concluded in 2010 that nothing in Radburn’s bylaws contradicted any provision of New Jersey law. The court held that ‘[w]ithout a basis in legislation, it is beyond our authority to effect such a change in the relationships between community associations and their members.’” Upset by this result, a number of Radburn residents turned to Senator Robert Gordon for help. Gordon, who grew up and resided in the Community for many years, sympa- thized with the plight of those who felt disenfranchised. In September of 2016 Senator Gordon was able to introduce legislation that would democratize the process of electing members to an association’s governing board. Senator Gordon, who previously worked with the New Jersey CAI Legislative Action Committee (LAC), once again tapped the LAC for its expertise in election and association gover- nance matters. For a better part of a year, Senator Gordon’s bill went through various iterations. In addition to the LAC, the New Jersey Builders Association, the New Jersey Department of Community Affairs and a group of Radburn residents active- ly participated with comments and suggested changes to the election bill. Given the long history of being denied the ability to meaningfully participate in board elections, the Radburn residents sought a bill that would provide signifi- cant detail on the nominating, election and voting process. And finally that day came. Senate bill 2492, sponsored by Senator Gordon among many others and Assembly bill 4091, sponsored by Assemblyman Timothy Eustace, sim- ilarly sponsored by many Assembly representatives, unan- imously passed each house of the legislature. Legislators throughout New Jersey had finally recognized that the time had come to codify in state law a fair process for electing board members. On July 13, 2017 Governor Christie signed the law. Pursuant to its terms it is effective immediately, but the pro-

visions regulating elections become effective on the first day of the third month following its enactment — in other words October 1, 2017. While the legislation will not affect those associations whose bylaws already include an independent process for board elections consistent with the new law, for those owners long without access to their own governance, this is a significant win. The passage of the is law also signals to all developers and community asso- ciations throughout the State that New Jersey values fair, transparent and accessible elections for all of its citizens. Notably there were several other board-election bills that had been introduced in the legislature, many of which had significant issues for CAI and its association members. The adoption of the Gordon bill ended further consideration of the other bills. The essential components of the legislation are set forth below. Board members should carefully review this with their association’s attorney and management to ensure adherence with the requirements of the new law. NEW ELECTION REQUIREMENTS Subject to certain specific but important exceptions dis- cussed later, the legislation includes the following significant provisions: A. All owners of units or homes in a community are mem- bers of the association, whether or not the governing documents provide that they are. B. An owner in good standing will have the right to nomi- nate him- or herself or any other owner in good standing for any seat on the executive board. C. All units will be entitled to an equal number of votes,

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