September2017

ELECTION... from page 22.

members and even the board members, since they may not be familiar with new law. Secondly, the board may propose an amendment to the bylaws and send notice of the proposed amendment to all association members, together with a ballot to reject the proposed amendment. If 10 percent or more of the owners reject the amendment within 30 days, it will be defeated. This method, then, would only be used for the purpose of bylaws amendments that are not significant or controversial. CONCLUSION Senator Gordon’s election bill brings an end to the dispute that plagued Radburn for many years. It also pro- vides a roadmap of procedural steps that associations are required to follow to hold a valid election. While these procedural steps are likely already followed by a majority of associations, all boards should consult with management and their attorneys when first holding an election on or after October 1, 2017, the effective date of those portions of the bill that relate to the election process. n

BYLAWS AMENDMENTS Since the Radburn Bylaws were not amendable by the homeowners, the legislation also contains provisions con- cerning bylaws amendments. The provisions of the new law will impact very few associations since they apply only to communities with bylaws that are either not amend- able by the owners or which require a vote of more than two-thirds of all owners to amend. If an association falls into that category, the statute sets forth a procedure to be followed that permits a vote by a majority of all votes to amend the bylaws. In addition, the legislation prohibits a board from amend- ing bylaws without a vote of the owners, but permits it in two specific instances. First, it permits a board to amend the bylaws to the extent necessary to render them consistent with state, federal and local law. This is beneficial since when the law changes in a manner that renders the bylaws inconsistent with law, it may cause confusion among the

WWW.HOMESTEADMGMT.ORG

328 Changebridge Road • Pine Brook, NJ 07058 • 973-797-1444 284 Route 206 South • Hillsborough, NJ 08844 • 908-874-6991

24

S E P T E M B E R , 2 0 1 7