CAI-NJ Aug.2018 (w)

ARE YOU HITTING YOUR MARKS? Community Trends ® August 2018

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• Are You Hitting Your Budget Marks? • FiveWritten Policies EveryAssociation Should Have • One Unsafe Step Forward...Many Costly Steps Back! ....and more In This Issue

2018 ULTIMATE PARTNERS NJ Chapter Communi t y Associat ions Inst i tute The Community Associations Institute New Jersey Chapter would like to thank its partners below. For more information on our sponorships, please contact Laura O’Connor at 609-588-0030 or laura@cainj.org.

CAI-NJ STAFF

LARRY P. THOMAS, PCAM CHAPTER EXECUTIVE DIRECTOR LARRY@CAINJ.ORG ANGELA KAVANAUGH DIRECTOR, CONFERENCE & PROGRAMS ANGELA@CAINJ.ORG LAURA O’CONNOR DIRECTOR, MEMBERSHIP & MARKETING LAURA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, EVENTS & EDITORIAL JACLYN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS OFFICE ADMINISTRATOR &

GRAPHIC DESIGNER BROOKE@CAINJ.ORG

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

CAI-NJ On Social Media

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@CAINJCHAPTER

Community Associations Institute - New Jersey Chapter

T hank You Fo r You r Suppo r t !

@cainewjersey

THE CAI-NJ COMMUNITY TRENDS ® MAGAZINE CONTENTS

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Are You Hitting Your Budget Marks? By Joseph Chorba, CPA,CFE, Principal Wilkin & Guttenplan, P.C. Five Written Policies Every Community Association Should Have By Mary W. Barrett, Esq. Stark & Stark

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20

37

One Unsafe Step Forward, Many Costly Steps Back By Patti Ventura Advanced Pavement Group

EXTRAS President's Corner

5

Looking Ahead

6

CAI-NJ Upcoming Events

7

RULES AND REGULATIONS

20

Legislative Update

8

CA-PAC News

10

Chapter Trends

13

CA-PAC Day at the Races Registration

19

2018 CAI-NJ Golf Outing Wrap-up & Photos 26 2018 CAI-NJ Conference & Expo Attendee Registration 35 2018 CAI-NJ Pre-Conference Networking Party Registration 36

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Homeowner Leader Best Practices Roundtable Discussion & Cocktail Reception Registration

40

37

Community Academic Institute 2018 Lecture Series Registration

41

Do One Thing Better

42

New CAI Dues Structure for HL Members and Enrollment Form

44

Community Trends ® Article Submission Guidelines

50

2019 CAI-NJ Committee Sign-ups

56

New Members

58

CAI Membership Application

59

2018 Ultimate Partner Listings

60

Management Leadership Workshop Registration

69

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CAI-NJ LEADERSHIP BOARD OFFICERS

BOARD OF DIRECTORS Benjamin Basch American Pool Enterprises Business Partner

Donna Belkot Taylor Management Company, AAMC, AMO Community Association Manager Jean Bestafka Renaissance Homeowners Association Homeowner Leader

PRESIDENT LISA VITIELLO, CPA TOWNE & COUNTRY MANAGEMENT, INC.

Frank Catanzarite Homeowner Leader

Jeffrey Logan Guardian Service Industries, Inc. Business Partner Deana Luchs Canal Walk Homeowners Association Homeowner Leader

VICE PRESIDENT JENNIFER NEVINS DW SMITH ASSOCIATES, LLC

PRESIDENT ELECT MOHAMMED SALYANI, CPA WILKIN & GUTTENPLAN, P.C.

Christopher Nicosia, CMCA, AMS, PCAM Prime Management, Inc., AAMC Community Association Manager Lawrence N. Sauer, CPM, CMCA, PCAM Association Advisors Community Association Manager

TREASURER LOREN LIGHTMAN, ESQ. HILL WALLACK, LLP

SECRETARY MARK WETTER, ESQ. RADOM & WETTER

GENERAL COUNSEL Jason Orlando, Esq. Orlando Murphy LLP

GENERAL COUNSEL EMERITUS Wendell A. Smith, Esq., CCAL Greenbaum, Rowe, Smith & Davis, LLP

IMMEDIATE PAST PRESIDENT Denise Becker, CMCA, AMS, PCAM Homestead Management Services, Inc., AAMC

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PRESIDENT’S CORNER LISA VITIELLO, CPA CAI-NJ 2018 PRESIDENT | TOWNE & COUNTRY MANAGEMENT, INC.

A s you read this August issue of Community Trends ® , we are more than half way through the year. August is the best time for your community to ask, “Are You Hitting Your Marks?” Your “marks” are the goals you set at the beginning of the year. To meet goals, you need to have a blueprint. The bible for a community’s goals is a comprehensive and realistic annual operating budget. That budget should include not only annual needs but a schedule of short term projects (cyclical such as painting) and long term projects (think a current Long Term Replacement Reserve Study). All three documents set the benchmark to measure if you are “hitting your marks”. It’s time to drill down on each line item in the documents noted above to see if you are “on target” or if any unforeseen expenditure has disrupted your plan. August is the time to make adjustments so you stay on course with your goals. As a management firm, we have noted several of our new clients are under-funded in their replacement reserves and cannot perform major projects (roofing, siding, pav- ing, etc.) without exploring other financing options (loans or special assessments). When we drill down on the issue, their current income and savings do not match their needs and goals. Many communities feel holding fees the same year after year is a positive goal. By holding fees, the same year after year, long term planning is short changed by inflation (i.e. rise in oil prices effects the cost of roof shingles, asphalt, etc.).

"Our communities are micro-cities. Like NYC, we have our share of security issues." Codes and laws also change. Compulsory changes often affect the budget of your community. Recent examples are the new pool regulations and towing signs required in the last decade. It is much more palatable for owners to adjust to a small monthly increase each year than to have a large assess- ment due to the fact no increases were approved during an extended time frame.

“By holding fees, the same year after year, long term planning is short changed by inflation...”

The ultimate objective ought to be maintaining the com- munity to preserve value. It is not merely long-term reserve projects but routine upkeep such as power washing, mulch- ing, healthy landscaping that help keep the community pristine. It is a well-known fact that homes that are well main- tained, meticulous inside and out, sell for more. The com- munity’s board can do its part by taking care of the exterior and grounds. Read on for more details from our experts on how to “meet your marks.” Enjoy Your Summer !!! n

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LOOKING AHEAD LARRY THOMAS, PCAM | CAI-NJ CHAPTER EXECUTIVE DIRECTOR

T his month’s theme is “Hitting Your Marks” and I’d like to ask you if we at CAI-NJ are hitting our marks. I can tell you that the entire staff and all our volunteers (the board and committees) work very hard to give all of our members value and to increase the knowledge and com- petency of our community’s management and functionality. This year’s board is undertaking a few major initiatives for 2018 including finalizing and implementing a short and long term strategic plan, updating our policies and praocedures and combining all of our policies (financial procedures and employee handbook) into one operational document. All of our committees are well into their tasks for this year and I can say that they are the strongest and most passionate since I have come on board here at CAI-NJ. A few recent highlights are the FAST committee’s intro- duction of the “Professional Development Series.” Their first program was the “Introduction to Public Speaking” program which ran for four consecutive weeks. The series consisted of (4) two-hour sessions held during the early eve- ning. It was a great program taught by Professor Nicole Pace-Addeo. The FAST committee is looking to continue this and other programs during the fall of this year. A special thanks to FAST committee chairs Lauren Vadenais and Kristy Winchock and the entire FAST team for creating these professional development classes available to all our members. The Business Partner committee added a new program for our hi-rise members called the “Hi-Rise Summit.” This seminar is geared towards our managers, professionals and board members that are involved in the hi-rise market. We had a better than expected turnout for the initial event held on July 10th at the Liberty House in Jersey City.

“We are excited to approach another membership milestone. At the end of May we hit 1,894 total members. This is 228 more than the we had at the end of May 2017.” We are excited to approach another membership mile- stone. At the end of May we hit 1,894 total members. This is 228 more than the we had at the end of May 2017. Our ultimate goal is to reach 2,000 members by the end of September. The easiest way to do this is to reach out to all of the boards that you are in contact with and have them take advantage of the “3 to 15” program introduced by CAI last fall. More details on this program can be found on page 44. Our Membership Committee, chaired up by Lysa Bergenfeld and Nick Haralambopoulos are doing I hope that you take advantage of all the programs that our committees and staff have put together for you. There are always opportunities for our members to get better educated and for our business partners to share ideas and contacts with other industry colleagues. After each event, we send out a questionnaire to the attendees asking for their thoughts on the program. Please take the time to reply as this is one of our top methods to see if we are “hitting our marks.” n an exemplary job pushing this campaign along with other ideas to get additional managers to join our chapter.

See page 44 for information on the “3 to 15” program — one low price for CAI Membership for boards of 3-15 members! Tell your boards to enroll all their members!

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2018-2019

EVENTS & EDUCATION CALENDAR

August

October

17

Pre-Conference Networking Reception and Live Band After Party i-Play America, Freehold

9

Annual Beach Party Martells Tiki Bar, Point Pleasant

18

13- 14 21 23

Annual Conference & Expo i-Play America, Freehold

Board Leadership Development Workshop Greenbriar Oceanaire, Waretown

18- 20

M-100: The Essentials of Community Association Management Mercer County Community College, West Windsor

Lecture Series CAI-NJ Freehold

CA-PAC Day at The Races Monmouth Park, Oceanport

NOVEMBER

SEPTEMBER

1

6 5

Joint Manager/ Business Partner Roundtable TBD

Homeowner Leader Roundtable Buona Sera, Red Bank F.A.S.T. Habitat For Humanity Initiative TBD Manager Leadership Workshop Rossmoor Community Association, Monroe Twp. CAI-NJ Legal Forum: “What Would You Do?, Legal Issues Impacting Community Associations” Stonebridge Community Association, Monroe Twp.

7

Lecture Series CAI-NJ, Freehold

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20

DECEMBER

6

Annual Meeting and Chapter Retreat Clearbrook Community Association, Monroe, Twp.

25

Lecture Series CAI-NJ, Freehold

FEBRUARY

28

Annual Awards Dinner TBD

Events are subject to change

APril

25

Spring Break Party The Grand Marquis, Old Bridge

LEGISLATIVE UPDATE

GEORGE GREATREX, ESQ. PARTNER, SHIVERS, GOSNAY & GREATREX, LLC LEGISLATIVE ACTION COMMITTEE CHAIR

I n the July issue of Community Trends ® I reported in my Legislative Update column that several members of the NJ LAC attended CAI’s Advocacy Summit in Washington D.C. on May 8 where we had the oppor- tunity to meet with our Congressmen and Senators and their staff to ask them to support federal legislation that benefits our constituents, and to oppose legislation which does not. I also reported that we would have the same opportunity to meet with our State Senators and Assembly representatives and their staff at the Statehouse in Trenton on CAI-NJ’s Advocacy Day on June 11. That day too was a success by all measures. We met with several legislators and their staff members and pro- vided resource materials to them during our meetings. Such in-person meetings are vitally important, not just because they offer us the opportunity to advocate for particular pieces of legislation and issues, but because it gives us the further opportunity to remind these lawmakers of who we are, and how we can serve as their “go-to” resource on issues involving common interest communities. When they learn that over 1.35 million people live in nearly 6,700 such communities across our state, they tell us they’re relieved to know we’re there to help. These were the issues we discussed with them: • Foreclosure reform We encouraged support of this legislation (A2085/ S1243) to address the problem of “zombie foreclosures” in our communities. We remain committed to providing fair options to lenders and community associations during the often lengthy foreclosure process on vacant properties in our state, such as expediting the foreclosure process on vacant and abandoned properties, or requiring the fore- closing lender to pay the association’s monthly assessments during the pendency of the foreclosure.

• Board member training We met with a state legislator who intends to introduce legislation to mandate training of members of New Jersey’s many common interest community governing boards. To be sure, there is no better training than what you receive “on the job,” but it has been suggested that for newly elected/ appointed board members who must jump right into what often are difficult situations in their communities, early train- ing and orientation can assist those new board members in being prepared to properly perform their tasks from the day they join the board. We provided various suggestions and proposed language to the Assemblywoman for her consideration and she agreed to continue the discussion with us to shape this legislation. The New Jersey Uniform Law Review Commission has found that Common Interest law is of paramount importance due to the growing number of residents who live in common interest communities. The current condo- minium law was enacted in 1969. It does not provide comprehensive rules for condominiums, it does not cover cooperatives, and whether it covers other common interest communities called “planned unit developments” (PUDs) remains a question. The trouble with drafting a law on common interest communities is that a condominium is more than a free association and less than a governmental unit. It must have the power to make, change and enforce rules concerning unit owners. Although a condominium may exercise something analogous to governmental power, it is not a government and is not subject to governmental limitations. Drafting a statute that balances these interests is difficult. The Commission has issued a report suggesting the introduction of legislation to begin to address the need • Revival of portions of the Uniform Common Interest Ownership Act (UCIOA)

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for a uniform and consolidated frame- work of laws for all of the different kinds of common interest communities. Such legislation has been introduced (A3851/S2425), with input from the NJ LAC, and we encouraged support of this legislation during our meetings. • Revision to the Statute of Limitations for Association’s claims against Developers Last year the New Jersey Supreme Court issued a ruling in the matter of Palisades at Fort Lee Condominium Association Inc. (230 N.J. 427) that could significantly reduce the amount of time condominium associations will have to evaluate the conditions of the common elements of their communi- ties, and then to bring suit against the developer/declarant for any design or constructions deficiencies found. The court found that the running of the Statute of Limitations (SOL) on such claims could begin to run even before the developer/declarant turned over control of the Association to the mem- bers. Prior to this decision the law pro- vided that the SOL could not begin to run until the developer/declarant had turned over control to the members, at the earliest. We encouraged support of legislation that would return the CONT I NU E S ON PAGE 67 We met with a state legislator who intends to introduce legislation to mandate training of members of New Jersey’s many common interest community governing boards.”

2018 CAI-NJ COMMITTEES

AWARDS COMMITTEE Dori Novick — Chair Andrew Linfante — Vice Chair Tana Bucca, Esq.

Jack McGrath Michael Pesce, PCAM Paul Raetsch J. David Ramsey, Esq. Lisa Rayca

Steven Morris, RS Robert Roop

Board Liaisons: Lisa Vitiello, CPA Deana Luchs Staff Liaison: Jaclyn Oskierko FAST COMMITTEE Lauren Vadenais — Chair Kristy Winchock — Vice Chair Matthew Antico Vincent Kazmierski Sierra Kressin, Esq. Jessica Long AJ Meola Rob Mignone Nicole Miller, Esq. Ashley Payne, CMCA Adrianna Rudzinsky, Esq. David Vargas Gabe Vitale Board Liaisons: Larry Sauer, CPM, CMCA, PCAM Jeffery Logan Staff Liaisons: Jaclyn Oskierko GOLF COMMITTEE Chris Belkot — Chair Paul Migliore — Vice Chair Raymond Barnes, CMCA, AMS, PCAM Scott Brandle Martin Cabalar, Esq. Patricia Clemente Eric Eggert Marty Ehrlich Robert Frustaci Keith Giliberti, PE, RS Matt Grobert Frederick Hodge Jessica Baker, Esq. Jamie Cullen, CMCA Jessica Hatton

Jennifer Carr Rich Cassilli Drew Cowley Gabby Grimes

Caroline Record, Esq., CCAL Audrey D. Wisotsky, Esq. Board Liaisons: Jean Bestafka Loren Lightman, Esq. Staff Liaisons: Larry Thomas, PCAM Laura O'Connor MANAGERS COMMITTEE Erin O'Reilly, CMCA, AMS, PCAM — Chair Glenda Carroll, CMCA, AMS, PCAM, LSM — Vice Chair Tracey Allen, CMCA, AMS Tony Nardone, CMCA, AMS Kerri Stimpson, CMCA, AMS Ilene Uydess, CMCA, AMS Elaine Warga-Murray, CMCA, AMS, PCAM Michelle Williams, CMCA Board Liaisons: Donna Belkot, CMCA, AMS Christopher Nicosia, CMCA, AMS, PCAM Staff Liaison: Angela Kavanaugh MEMBERSHIP COMMITTEE Lysa Bergenfeld, Esq. — Chair Nikolaos Haralambopoulos, CPA — Vice Chair Erika Befumo Claire Diallo Tara M. Melick, CPA Steven Mlenak, Esq. Debbie Pasquariello, CIC, CIRMS Ken Shah Kathleen Radler Briana Walsh Board Liaison: Loren Lightman, Esq. Mark Wetter, Esq. Staff Liaison: Laura O'Connor NETWORKING EVENTS COMMITTEE Jeff Cirkus, CMCA, AMS, PCAM Chuck Graziano, PCAM, CPM Dawn Mackanic, CMCA Kristina Munson, CMCA, AMS, PCAM

Vanessa Hilsdon, Esq. Christine Maldonado Vanessa Pena, Esq. Kari Prout Nicole Skaro Eileen Szelewicki, CMCA Tino Tandurella Mary Visco Sandi Wiktor

Board Liaisons: Lisa Vitiello, CPA Mohammed Salyani, CPA Staff Liaison: Jaclyn Oskierko BUISNESS PARTNERS COMMITTEE

Robert Flanagan, Esq. — Chair Kim Manicone — Vice Chair Beth Barnett John Buglione

Bernie Cosentino Frank Gencarelli Toni Licciardi Julie Nole

Ken Sauter, Esq. Herman Shauger Amy Shorter Jessica Vail Patricia Ventura Gregory Vinogradsky, Esq. Lisa Wagner

Kristy Winchock Board Liaisons: Jeffrey Logan

Jennifer Nevins Staff Liaison: Angela Kavanaugh CONFERENCE & EXPO Cheryl Rhine — Chair Jay Burak — Vice Chair

Hank Johns Pete Katula Georgette Kyriacou Michael Polulak, Esq. Ross Rutman Christopher Tensen, CMCA, AMS Ryan Weiner Tom Witowski Board Liaisons: Larry Sauer, CPM, CMCA, PCAM Mark Wetter, Esq. Staff Liaison: Jaclyn Oskierko HOMEOWNER LEADER COMMITTEE Charles Lavine — Chair Bruce Kunz — Vice Chair Nina Bell Roslyn Brodsky Cheryl Palent Board Liaisons: Jean Bestafka Frank Catanzarite Deana Luchs Staff Liaison: Angela Kavanaugh LEGISLATIVE ACTION COMMITTEE (LAC) George Greatrex, Esq. — Chair A. Christopher Florio, Esq. — Vice Chair Liz Comando, PCAM Barbara Drummond, CMCA, PCAM

Joe Bonafede Stacey Cadoff Jessica Chelkowski, CPA Ellen Comiski Sudeep Das John Echelmeier Eric Frizzell, Esq. Eleni Giannikopoulos Tanya Jimenez Barbara Kelly Terry Kessler, Esq. Konrad Kurach Steve Lang Denise Mack Patricia McGlone, Esq. Carol Nickerson

Jeffrey Paige, Esq. — Chair Pam Illiano — Vice Chair Denise Becker, CMCA, AMS, PCAM

Monica Caporosa Dean Catanzarite Diane Cody, PCAM

Rhett Cowley Steve Ferrara Angelo Giacchi Gary Gleitman

Fred Hodge Arthur Holl Allison Jacques Jessica Long Jessica Marvel Sharon Maldonado Daniel Reilly Chris Rosati David Shahrabani Mark Siwiak Jodi Smallwood Christina Smith Melissa Volet, Esq. Board Liaisons: Jennifer Nevins Benjamin Basch Staff Liaison: Jaclyn Oskierko

Kevin Oliver Kelley Rojas Harriet Schwarzber, CMCA, AMS Lenny Stern Jackie Thermidor, CMCA Board Liaisons: Donna Belkot Mohammed Salyani, CPA Staff Liaison: Angela Kavanaugh EDITORIAL COMMITTEE Kari Valentine, CMCA, AMS — Chair Mary Barrett, Esq. — Vice Chair Robert Arnone, CMCA, AMS David Cerra, Esq.

Matthew Earle, Esq. Vincent Hager, CIRMS Sue Howe, CMCA, AMS, PCAM Carol Koransky, CPA Steve Kroll Christine Li, Esq., CCAL James Magid, CMCA, LSM, PCAM Thomas Martin, Esq. Glen Masullo, CMCA, PCAM

Joseph Chorba, CPA Jessica Flynn, Esq. Richard Linderman, Esq. AJ Meola Angela Morisco, Esq.

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CA-PAC REPORT • SPRING 2018 A LETTER FROM YOUR PAC PRESIDENT 2018 CA-PAC BOARD OF DIRECTORS

President James Rademacher

Vice President Jack McGrath, R Secretary Caroline Record, Esq. Treasurer Carol Koransky, CPA Assistant Secretary/Treasurer Louis Curtis, MBA, CMCA, AMS, PCAM Members Liz Comando, PCAM Christopher Florio, Esq. Sue Howe CMCA, AMS, PCAM James Magid, CMCA, LSM, PCAM Michael Pesce, PCAM J. David Ramsey, Esq. Tim Martin, MBI-Gluckshaw Audrey Wisotsky, Esq., CA-PAC Counsel CAI-NJ Board Liasions Jean Bestafka To promote and strive on the behalf of New Jersey community associations for the improvement of government by encouraging and stimulating New Jersey community associations, their owners, and those serving the New Jersey community association indus- try to take a more active and effective part in governmental affairs. Loren Lightman, Esq. Purpose of CA-PAC

On behalf of the Community Association – Political Action Committee (CA-PAC) I want to thank the members of the industry who contributed to the PAC in 2017. Your contributions allow CA-PAC members to personally interact with targeted candidates and members of the legislature who determine the future of common interest communities in New Jersey. Although CA-PAC has achieved many legislative victories over the years, we continue to have important issues to support and oppose. CA-PAC contributions enable us to advocate on behalf of the industry. I encourage you to make a contribution to CA-PAC as an investment in the inter- ests of community associations throughout New Jersey. 2018 is shaping up to be another challenging year. It is critical that we raise funds to spread our message to elected officials that lack a fundamental understanding of community associa- tion issues. Please send your contribution today. Thank you, Jim Rademacher

President, Community Association Political Action Committee

CA-PAC FAQ’S

TO DONATE TO CA-PAC, SEND CONTRIBUTIONS TO: CA-PAC, 500 Harding Road, Freehold, NJ 07728 | or visit: www.cainj.org/capac What is CA-PAC? Community Association Political Action Committee (CA-PAC), was created to give our members a stronger voice in Trenton. Its goal is to support candidates who support key issues important to CAI-NJ members. CA-PAC is overseen by a committee of CAI-NJ members who evaluate potential donations based on our members’ legislative priorities and support candidates, regardless of party, who act in support of our members’ issues. Who does CA-PAC Support? CA-PAC is bi-partisan and works with both parties to support candidates who support vibrant community associations, community association management companies and the businesses that support our communities. How are contributions to CA-PAC used? Contributions to CA-PAC are used to support candidates for state office. Donations are determined by the CA-PAC board, made up of CAI-NJ members and contributors to the PAC based on a review of the legislators’ position on issues important to CAI-NJ members.

CA-PAC WORKS HARD PROTECTING THE INTERESTS OF COMMUNITY ASSOCIATIONS

2018 CA-PAC SUPPORTERS

Municipal Bonding Requirements – (A1425, S3233) - Last year, the legislature passed a law removing developers’ requirements to post performance and maintenance guarantees on construction not ultimately dedicated to the municipality. While intended only to apply to shopping centers, CA-PAC is concerned that our communities could be swept into the exemptions, and will be working to correct the oversight. Delinquencies and Expedited Foreclosures – (A2085, S1243) – We continue to attempt to work with the banks to maintain vacant units and assume responsibility for maintenance fees while pushing for rent receiv- erships as an option. Municipal Services / Fire Hydrant Maintenance - (A1745) – CA-PAC is advocating for expansion of the municipal services provided to your community. Our top priority for now is passage of legislation that would ensure that your local municipal utility authority keep your neighborhood safe by properly maintaining fire hydrants, and we hope to make the cost of such maintenance fair by banning the practice of charging our associ- ations more than their host municipalities. Electric Charging Stations - (A1030) - There is National and State legislation concerning the installation of electric charging stations for existing and future common interest communities. CA–PAC will be there to make sure you have say over when, where, and if to include these stations in your communities. DCA Inspections - (S1150) - This bill would reduce inspections from every 5 years to every 2 years. Solar Panel Installations – (A2469) - Recent legislation proposes controls for regulation and installation of solar panels in your community. Insurance Deductibles – (A2439) - Recent legislation proposes to prevent an association’s ability to transfer the responsibility for a damage claim’s deductible to homeowners in condominium associations. Snow Contractor Indemnification – (S665) - This legislation would require snow contractors to be indemnified for any damage or injuries as a result of their snow removal/ice control operations.

COMMUNITY ASSOCIATIONS Cheesequake Village Association Clearbook Community Association The Ponds The Plaza Grande at Old Bridge Union Gap Village Association Wildflower Villange COA FIRMS Associa - Community Management Corp., AAMC Denali Property Management, Inc. FWH Associates, P.A. G & C Electronics Shivers, Gosnay & Greatrex, LLC Stark & Stark

RAISED $12,484

INDIVIDUALS Anne Corey Loren Lightman, Esq.

THANK YOU TO OUR SUPPORTERS FOR HELPING TO ADVANCE THE ISSUES IMPORTANT TO NJ’S COMMUNITY ASSOCIATIONS!

SAVE THE DATE!

Thursday, August 23, 2018 Monmouth PARk RaceTrack 175 Oceanport Ave Oceanport, NJ 07757 Gates open at 11:30 AM $100 per person

YOUR CONTINUED SUPPORT OF CA-PAC RAISES THE PROFILE OF NEW JERSEY’S COMMUNITY ASSOCIATIONS!

CONTRIBUTION FORM Community/Company: ________________________________________________ Individual Name: ____________________________________________________ Mailing Address: ____________________________________________________ City, State, ZIP:______________________________________________________ Phone: _________________________ Fax: ______________________________ Email: _____________________________________________________________ Occupation: _________________ Employer: ______________________________ Employer Address: ___________________________________________________ City, State, ZIP:______________________________________________________ Management Company Name: _________________________________________ (Community Association’s Only) DO NOT INCLUDE MY NAME OR COMPANY ON THE LIST OF CA-PAC CONTRIBUTORS

Individual................................... $25-$100 $_________ • Community Manager • Board Member • Homeowner

Business Partner .....................$250-$500 $_________

Management Company ................... $500 $_________

Community Association..................... $_______________ (Suggested contribution $1 per unit)

Other................................................... $_______________

Please make your CORPORATE or PERSONAL CHECK payable and mail to: CA-PAC, 500 Harding Road, Freehold, NJ 07728

The New Jersey Election Law Enforcement Commission requires us to collect and report the name, mailing address, occupation and name of the employer of contributors whose contribution exceeds $300 in a calendar year. Contributions to CA-PAC are not deductible for federal income tax purposes. Contributions are not limited to suggested amounts. CA-PAC will not favor nor disadvantage anyone based upon the amounts or failure to make PAC Contributions. Voluntary political contributions are subject to limitations of ELEC regulations. CA-PAC contributions are not considered payment of CAI dues.

CAI-NJ 2018 PARTNERS

GAF Kipcon Inc. McGovern Legal Services, LLC mem property management, co., inc. Rezkom Enterprises, Inc. Taylor Management Company, AAMC, AMO

Ansell Grimm & Aaron, PC Associa Community Management Corp., AAMC Belfor Property Restoration Brown & Brown Insurance of Lehigh Valley C & L Sweeping & Pavement Maintenance DW Smith Associates, LLC FWH Associates, P.A. G & C Electronics

The Falcon Group - Engineering, Architecture & Reserve Specialists Wilkin & Guttenplan, PC

Greenbaum, Rowe, Smith & Davis, LLP Griffin Alexander, P.C. Hill Wallack, LLP Hillcrest Paving & Excavating, Inc. Jesan Construction and Maintenance JGS Insurance KPI 2 Contractors, Inc. L.N. Rothberg & Son, Inc. Landscape Maintenance Services, Inc. Mackoul Risk Solutions, LLC Morris Engineering, LLC National Contractors, Inc. NFP Property & Casualty Services, Inc. O & S Associates, Inc.

Pardini R Construction Corporation Popular Association Banking Quality 1st Contracting, Inc. R.M. Termite & Pest Control Radom & Wetter Attorneys at Law Rainbow G & J Painting, LLC Regal Restoration Republic Services of NJ, LLC Stark & Stark Suburban Consulting Engineers, Inc. Technocality, Inc. Towne & Country Management, Inc. USI Insurance Services Wilkin Management Group, LLC

Advanced Pavement Group Accent Group Becht Engineering, BT, Inc. Becker

Berman & Wright Architecture Engineering & Planning, LLC Buckalew Frizzell & Crevina LLP Capital One Bank, N.A. Corner Property Management Cowley’s Termite & Pest Control Services Curcio, Mirzaian & Sirot, LLC Cutolo Barros, LLC Denali Property Management, Inc. FirstService Residential, AAMC

Renda Roads, Inc. RMG, Regency Management Group, Inc., AAMC Shivers, Gosnay & Greatrex, LLC South Shore Construction, LLC Union Bank HOA Services

Giordano, Halleran & Ciesla, P.C. Hueston, McNulty, Attorneys at Law Mirra & Associates MyPropertyBilling.com, LLC National Cooperative Bank Peter Waldor & Associates, Inc.

Accurate Reconstruction Dan Swayze & Son, Inc. Diversified Property Management Environmental Designers Irrigation, Inc. Eosso Brothers Paving Felsen Insurance Services

CHAPTER TRENDS Prime Management, Inc., AAMC Introduces Crystal Fitzpatrick, MPA, CPA as new Director of Financial Services Prime Management, Inc., AAMC recently announced the creation of a new position, “Director of Financial Services” and named Crystal Fitzpatrick, MPA, CPA to the post. Crystal brings 12 years of public accounting expe- rience to the position; most recently serving as a Senior Audit Manager for a large public accounting firm and also serving on the NJSCPA’s not-for-profit interest group. “Prime is known in the industry as a leader in financial reporting and con- trols,” said Christopher Nicosia, MM, CMCA, AMS, PCAM, Operations Manager. “This new position will allow us to successfully service our current clients while increasing our capacity to provide expert financial management to more communities.” “We are excited to bring Crystal onboard to develop this new position; her knowledge and years of experi- ence will bring a tremendous value to our clients,” said Barbara Drummond, CMCA, PCAM, President. “This change demonstrates our continued commitment to provide world class financial man- agement and reporting services to our clients now and into the future.” n

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Are you Hitting Your BUDGETING MARKS? By Joseph Chorba, CPA CFE Principal, Wilkin and Guttenplan, P.C.

© iStockphoto.com

B udgeting is one of the most important responsibilities of the board of directors. The budget is critical to the short and long-term success of an association. It is the foundation for all financial decisions made by the Board. The annual budget plays an important role in how boards manage the maintenance of the common elements and the services provided by an association. All have a direct impact on the quality of life within that association. It should be a direct reflection of the association’s short and long-term goals. The theme of this month’s issue of Community Trends is “Are you hitting your marks?”. That is a question that should be asked often when evaluating the accuracy of the budget and when making decisions on future budgeting periods. Budgeting can be very tricky for associations. Many boards struggle with how to balance the amount of main- tenance fees being charged to their neighbors and friends while maintaining an adequate level of service. It can also be a delicate balance for a board that is sensitive to the unit owners’ ability to pay the monthly maintenance fees

with the ongoing financial needs of an association. Much like in our personal lives, it can be difficult to decide on the best use of a limited amount of funds. Earlier this year I wrote an article for Community Trends ® that talked about staying competitive in an ever-changing real estate market. The theme of that article was associ- ations that plan ahead, stay ahead. This is a key point when preparing a budget in the short term as well as the long term. But what happens when the plan goes awry? Budgeting and reacting to unexpected needs is another struggle for many boards for the same reasons mentioned above. Unexpected expenses could have an impact on the amount of maintenance fees being charged, and some boards also fear that special assessments have a negative impact on home values. To those boards, I argue that not properly responding to those changing events through the budget process could have a far greater negative long- term impact. The longer an issue goes unresolved, the higher the likelihood it could lead to more serious financial problems.

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BUDGET MARKS... from page 14.

“...consumers who are hyper-focused on price rather than quality may neglect to see the value in spending more today to achieve long-term financial health.”

I recently read an article in U.S. News and World Report titled “When Spending More Benefits Your Budget” by Andrea Woroch (February 15, 2018). The article’s main focus is on personal expenses but the opening of the article was right on point with many conversations I have had with boards and managers over the years. The article states, “Cutting expenses is an important step to balance your budget and set yourself up for financial success. But consumers who are hyper-focused on price rather than quality may neglect to see the value in spending more today to achieve long-term financial health.” The key word there is “value”. While doing your due diligence to find the lowest price for a contract or service is a way of deter- mining value, it certainly should not be the only factor. I was at a board meeting recently where the common areas were in desperate need of repair. The board was trying to develop a list of priorities and was concerned about the effect these projects would have on maintenance fees. The

board were also considering a special assessment but was con- cerned about the negative impact on

their property values so they were trying to keep the costs down by any means possible. My response to them was not about how they were going to pay for the projects but the thought process in determining their priorities and how to go about choosing a vendor. This was a board that was “hyper-focused” on price so I suggested they do one thing. Whenever they were evaluating a contract, simply

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replace the words “cost” or “expense” with the word “value” and see how it changes the conversation. Ask, “What is the value I am getting in return?” instead of “What is it going to cost?” and it may change how you approach certain expenses. If you are always simply hiring the lowest bidder you may be missing out on opportunities for long term savings or significant improvements in the quality of services provided to the unit own- ers. With that said, sometimes, the lowest cost approach might offer the greatest value, but the Board should remain cognizant of ways to increase the association and property value in everything they do. 1. Budgeting is an important task and can be stressful. However, there are simple concepts that can be followed to ease that stress. 2. Have Reasonable Expectations – Like I said earlier, you have to have reasonable expectations of what the unit owners are able to pay. On the flip side, you have to prepare a budget with reasonable expectations of what it will cost to operate the property. Keeping maintenance fees low is not always a good thing over the long term. 3. Put the Past in the Past – Whether it is a deficit or an unexpected expense, occasionally things come up that your budget can’t handle. The important thing is to take care of it as soon as it is feasible. It may require a special assessment or a line item in the next year’s budget to make up for the unexpected expense, but whatever the case,

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BUDGET MARKS... from page 17.

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address it sooner than later and put it behind you. 4. Look to the Future – Board’s should not only consider the budget for the next year but future years as well. Ask what can be done now that will improve the value to the unit owners in the future. 5. Consult Your Professionals — Boards have a difficult job to do but do not have to go at it alone. Managers are the number one resource for professional advice, and other pro- fessionals such as engineers, attor- neys, insurance agents, accountants and service providers can also be a valuable resource in understanding the value of services. 6. Think VALUE –Make decisions based on value rather than cost. Shifting the thought process more towards value should improve the association’s long term financial health. If you follow these steps, you’ll be sure to “Hit Your Marks!” n

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RULES AND REGULATIONS

Five Written Policies Every Community Association Should Have

By Mary W. Barrett, Esq. Stark & Stark

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C ommunity association boards almost universally have authority to create policies relating to the administration and operation of the association. Too many boards rely solely on the provisions written in the master deed/declaration and by-laws and fail to adopt consistent policies that would be in the best interests of the association. It is true that if the association’s governing documents lack certain types of authority, an amendment may be required. However, even a community with well drafted governing documents should have certain written policies to supplement that authority. There are many important policies that a community association board might adopt but there are at least five written policies that every community association should have in place. 1. COLLECTIONS. Every community association has at least some authority to collect assessments from owners to pay for

common expenses. Some have better authority than others but even an association with good collection authority should have a written procedure for collec- tions. This written procedure can give a time table for sending out late notices, specify when late fees and/ or interest will be imposed and circumstances for which they will be waived. The policy should also set collec- tions charges such as administrative fees charged by management or penalties when a check is returned for insufficient funds and be clear as to when and how a matter will be referred to legal counsel. Most govern- ing documents give the board of the association broad authority to impose a “reasonable late fee” or “interest not exceeding the legal maximum rate” and leave it to the association to decide the amount. Boards should formally decide those amounts and the collection reso- lution is an excellent place to do this. If an association suspends a delinquent member’s right to vote or ability

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WRITTEN POLICIES... from page 20.

primary. These issues are important for all community associations but are especially important for two types of community associations: (a) town- home-style homeowners associations where the association is responsible to maintain roofs and siding but the owner is responsible to insure them, and (b) stacked or side by side con- dominiums where casualty losses can affect multiple units as well as the common elements. Since insurance deductibles in high claim buildings can be substantial, a written insur- ance policy can clarify who pays the association’s insurance deductible, the circumstances in which deductible payment is required by unit own- ers, and the proportion of payment between unit owners or between the association and unit owners. Some

associations have even mandated that owners maintain certain insur- ance coverage and provide proof of that insurance to the association each year. By clarifying information about the association’s insurance coverage, a written policy can also help owners determine the insurance coverage they should maintain. “...a collection policy can streamline procedures for board members and allow them to handle delinquent unit owners more quickly.”

to use common facilities, the collection policy can also formalize that proce- dure to ensure consistency in applica- tion. Most importantly, a collection policy can streamline procedures for board members and allow them to handle delinquent unit owners more quickly. 2. INSURANCE. Most association governing docu- ments do a fairly good job of describ- ing the association’s obligations with regard to required insurance cover- age. They may be less than clear about a unit owner’s insurance obli- gations or how a claim is handled when the association’s insurance is

© iStockphoto.com

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3. FINES. Governing documents may permit the imposition of fines in a stated amount or they may give broader authority and authorize “reasonable” fines or fines “not to exceed” a certain amount. When fines are authorized in a set amount, a policy resolution can estab- lish a procedure for imposing fines, the notice to be provided, and the manner in which they will be collected. When a board has broad authority to establish the amount of fines, it is imperative for the board to adopt a fine policy that sets forth the specific amount of fines to be imposed for various violations. A board faced with a violation for which they haven’t yet established a fine may be tempted to make one up. For this reason, a fine policy should include a default fine. It is also acceptable for CONT I NU E S ON PAGE 24

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WRITTEN POLICIES... from page 23.

the master deed/declaration for use restrictions, to the by-laws for exterior modification procedures, to the gener- al rules for the pool rules, and then to a policy resolution for requirements on changing out washing machine hoses can be overwhelming. It is not surpris- ing that homeowners may miss some important information. Compiling a summary of all of this information into one place is initially a lot of work but once it is done the regular updating is not difficult at all and will, of course, directly correspond to how active a board has been in making changes.

ciation, or cooperative, New Jersey law requires it to provide a proce- dure for the resolution of disputes between owners and the association and between owners, which shall be available as an alternative to litiga- tion. This is known as alternative dis- pute resolution or ADR. Many boards never think about their ADR policy until they are faced with scheduling a hearing. Once the issue has been raised, it may realize no ADR policy exists, which can lead to delays in providing ADR. Or it may realize that an ADR policy does exist but is poorly written, which can lead to confusion and even additional disputes about the procedure itself. Some by-laws include an ADR procedure and these procedures are often ill conceived or impractical and may even impose

boards to adopt specific policies, such as for dryer vent cleaning or parking, that include an established fine proce- dure for violations. Of course, any fine policy must reference ADR as no fine should be imposed without an offer of ADR. 4. RULES AND REGULATIONS. A truly efficient board will summa- rize the association’s use restrictions, rules and regulations, and other pol- icies into one document and update it from time to time. These board members know that homeowners can better comply with their obligations when these are organized and eas- ily located. Trying to jump from

5. Alternative Dispute Resolution.

Whether a community association is a condominium, homeowners asso-

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