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24

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

WWW.HOMESTEADMGMT.ORG

328 Changebridge Road

Pine Brook, NJ 07058

973-797-1444

284 Route 206 South

Hillsborough, NJ 08844

908-874-6991

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

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

ELECTION...

from page 22.