Association Lawyers in New Jersey

On July 18, 2019 the New Jersey CAI Legislative Action Committee (“LAC”) submitted its comments to the Department of Community Affairs with respect to the proposed regulations.

The full submission is in the following link:

https://www.cainj.org/wp-content/uploads/2019/07/Ltr-from-CAI-LAC-NJ-to-DCA-re-proposed-regulations-7.16.19.pdf

Crime pays and crime in community, condominium and co-op associations can pay handsomely – hundreds of thousands of dollars, if not more.

During the post-game Press conference, Foles said “I think that the big thing that helped me was knowing that I didn’t have to be Superman. I have amazing teammates, amazing coaches around me and all I had to do was just go play as hard as I could and play for one another and play for those guys…”.

Chances are your Association doesn’t have spare money lying around.  Chances are your Association has five or more “regular debtors” – the ones who are on the arrearage list year-in and year-out.

Open Board meetings are generally the most stressful part of any board member’s tenure.  We all know that people who come to open meetings are usually not there to let the board know what a wonderful job they are doing.

New Jersey, along with many other states, has adopted a Smoke-Free Air Act (the “Act”) that bans smoking tobacco or electronic cigarettes in the workplace and in indoor public places. Most people are aware that this ban extends to restaurants and stores, but the definition of “indoor public place” also includes an “apartment building lobby or other public area in an otherwise private building.”

Patricia Hart- McGlone, Esq. talks about Lessons Learned from Super Storm Sandy.

"Interest” and “late fees” are different things.  Governing documents may provide for interest and/or late fees.  Judges are sensitive to the difference. 

Michael R. Polulak, Esq. discusses Age Restricted Communities

In an October 21, 2016, published decision titled In Majorca Isles Master Ass'n, Inc., 560 B.R. 824 (Bankr. S.D. Fla.) (“Majorca Isles”), the United States Bankruptcy Court awarded a Florida Master Association with an incredible $16.3 million judgment against a developer and its appointed trustees, in what the Court described as a “modern day story of David and Goliath.”  Setting aside the transition aspects of the case, the decision provides an excellent guide for boards and property managers – particularly those involved with master associations – facing issues of poor record keeping and conflicts of interest.

Bankruptcy is a court case where a person attempts to have their debts wiped out (a Chapter 7 Bankruptcy) or attempts to have the court force their creditors to be paid under a payment plan (a Chapter 13 Bankruptcy). 

Is Your Association Considering a Large Project? Will Your Association Need to Borrow Funds to Complete the Project? If so, is the Project Properly Approved?

Senate Bill 3233/Assembly Bill A1425 from the 2016-2017 Legislative Session was signed into law by Governor Christie on January 16, 2018.  Unfortunately, per the Assembly Judiciary Committee Statement, and with very limited exception, “a municipality will only be able to require developers to post performance guarantees that cover improvements being dedicated to a public entity”.  

The most common arrangements for retaining attorneys are hourly, retainer, task based, contingent fee or mixed-contingent. An attorney's 'out-of-pocket' expenses must be paid in addition to the attorney's fee.

Associations should calendar their FHA expiration dates and contact their attorney about six months prior to expiration. Recertification can be obtained up to six months before a current FHA certification expires; so calendaring this date can help an association avoid any lapses in certification.

October 27, 2007 CAI-NJ Conference and Expo - Refreshing Insurance

1. Cultivate a Relationship with the Association's Insurance Representative

Insurance representatives make their living selling insurance and maintaining accounts. They are professionals and should be a part of the Association's professional services team. Association boards should be familiar with their insurance representatives and use them as a resource. Too often, board members do not even know who their Association's insurance representative is until a problem arises.

Board members have a fiduciary duty to the association/corporation and arguably directly to the individual members.  Fulfillment of this duty requires that the board members exercise utmost good faith. 

In ordinary corporate matters, the 'business judgment rule' is the standard by which board action is evaluated.  The business judgment rule generally provides that, so long as the board members fulfill their duties of 'care' and 'loyalty' the board's decisions will not be second-guessed by a court. 

You hated them as a kid. You wish they were no longer necessary as an adult. But in community living, having some rules is a necessity.

Defendants in Construction Defect Case Lack Standing to Enforce By-Law Provisions Intended for Unit Owners’ Benefit – Membership Ratification is Effective

DCA Proposes New Association Regulations Including Fines & Penalties

On June 3, 2019 the New Jersey Department of Community Affairs published proposed new association regulations. A copy of the DCA’s summary and the full text of the proposed amendments and new rules can be found here:

https://www.nj.gov/dca/divisions/codes/codreg/pdf_rule_proposals/PRED_Election_Regs.pdf

Today, January 9th 2014, the New Jersey State Senate passed the "Manager Licensing Bill". 
The bill will now go to the Governor for his signature.

The transition process involves an engineering evaluation of the Association’s common elements to determine if there are defects.  The engineer’s evaluation  typically identifies defects within the site improvements, for example, the landscaping, roadways, sidewalks, detention basins, etc.  These site improvements are often subject to performance bonds with the municipality.

Eric Koehler, Vice President of Falcon Drone Services and Fran McGovern from McGovern Legal Services along with Access Property Management presented the benefits of using drones in community associations on Wednesday April 12. The demonstration was open to both board members and property managers in the Hills Communities. All were excited to see how the new technology worked. The presentation provided a demonstration of the drone in use. All participants were encouraged to provide comments and questions. 

1.         Do not sign the contractor's proposal.
2.         Have an attorney prepare anything larger than a nominal contract.
3.         Make sure any conflicts of interest are fully disclosed and acknowledged in writing.

It’s common knowledge that Burlington County Chancery Judge Karen L. Suter has not been receptive to Associations’ applications for appointment of rent receivers.  This has been true even when a unit is abandoned, vacant and worth less than the balance of the mortgage.  Nevertheless, we believe that Judge Suter and New Jersey’s other Chancery Judges will, in the proper circumstances, continue to grant Associations’ applications for appointment of rent receivers.

May a Home and/or Unit within an Association be used for a business purpose and, if not, what would constitute a prohibited business use. Many Associations' Master Deeds or Declarations contain provisions that purport to prohibit Association residents from conducting any business in their homes.

In the summer of 1981 I started reading Stephen King’s “The Stand”.  My boss had left it in my attendant’s shack at a parking lot on the corner of Ocean and Pine Avenues in Wildwood.  I didn’t get very far.  The book was scary and long.  As a sixteen-year-old at the beach, I had more fun things to think about.