Association Lawyers in New Jersey

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 2010, the Department of Housing and Urban Development (HUD) turned the financing of FHA mortgages upside down by announcing the end of spot approvals for condominiums and a new requirement of biannual community-wide certification for FHA mortgages.

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.”

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.

More and more associations are facing the issue of emotional support and assistance animals. Often, these animals do not present any problem for an association, but what happens when an emotional support or assistance animal violates the association’s pet policy?  In those instances, several factors weigh into the decision making process to determine whether a medical necessity claim is valid and whether the requested accommodation is reasonable. 

Damon M. Kress, Esq. talks about your Association's Immune System

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). 

Indemnify:  I will absorb claims/liability against you.

Defend:  I will pay the attorney fees and costs to defend you.

Hold Harmless:  I will not bring claims against you.

New Jersey’s Assembly and Senate passed the manager licensing bill supported by the Community Associations Institute of New Jersey.  However, the Governor refused to sign it.

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

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.

Become a Notary: It Helps Your Association! It’s Easy! It’s Cheap!

By: Fran McGovern, Esquire

Thousands of Americans die needlessly each year because they had no access to relatively inexpensive and user-friendly life-saving equipment.

Associations review their budget at the end of the fiscal year to determine the new budget for the upcoming year.  In their budget, some Associations will have to reserve funds to repair and maintain one or more common elements that are no longer used by its members. These costly, but necessary budget items often times do not provide members with any value. Fortunately, Associations may be able to avoid these expenses by removing a common element.

The Community Associations Institute (CAI) is a national, non-profit organization dedicated to providing the education and resources necessary to foster vibrant, responsive, competent, community associations and helping them promote harmony and responsible leadership.

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. 

Access Property Management

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. 

New regulations regarding the use and operation of swimming pools were recently added to the New Jersey Public Recreational Bathing Code and became effective January 16, 2018. Included in these new rules and regulations are a number of updated first aid and lifeguard requirements that community associations should be aware of.

On July 13, 2017, the State enacted P.L. 2017, Ch. 106 often referred to as the Radburn bill, a supplement to the Planned Real Estate Development Full Disclosure Act intended to ensure Condominium, HOA, and Cooperative elections are conducted in a fair and open manner.  The new Law contains important new procedural and substantive requirements for: (1) Membership Voting Rights; (2) Board Elections; and (3) Bylaw Amendments.  Management and Boards must navigate these new requirements carefully, else they may face costly challenges to the validity of Association elections and Bylaw Amendments.

“Transition” is the due diligence process required by the board members’ fiduciary duty. In sum, the homeowner-elected board members must determine if the sponsor did what it was supposed to do and, if not, take action to get the deficiencies corrected. Upon assuming board control homeowner-elected board members must:

1) evaluate the association’s physical and financial condition;
2) communicate the findings to the members and the sponsor;
3) negotiate for repairs, money or a combination of repairs and money.

In Birch Glen Condominium Association, Inc. v. Boahene, the motion judge denied the association’s motion to sell the unit because the mortgage company was in the process of foreclosing and the motion judge did not believe the association should be able to sell or rent the property after the mortgage company started the foreclosure process.  On appeal, we successfully argued and won a reversal of that ruling and affirming the right of associations to sell units to satisfy money judgments, so long as the debtor has no other personal assets.

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. 

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.

Regardless of who is ultimately found liable for damages related to the golf course and golfing, the Association would almost certainly be sued along with the golfer who hit the ball, the course manager and any other person or entity somehow related to the incident.

What happens when a unit is in collections and then upon a title search, we determine there is no mortgage on the property?

This is a common situation when the property was bought a long time ago, and the debtor recently fell on hard times or the debtor is a relative that inherited the unit from the deceased owner. Although the mortgage is paid, the debtor cannot pay their monthly maintenance fees.

It happens every winter. The Association is hit with yet another bad snowstorm. The snow removal crew arrives early and is attempting to clear the snow faster than it falls.

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