NJ LEGISLATURE UPDATE! - C-IHCc-ihc.org/News/CIHC newsletter FALL 2014.pdf · by the CIHC, Common Interest Homeowners Coalition 2 Quotes Corner! The “Independent Voice of NJ CIC

by the CIHC, Common Interest Homeowners Coalition

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NOTE: The Editor & CIHC Board re-named the newsletter at the

request of a CIHC friend & to align with our Mission, pg13. We are

now the “INDEPENDENT” voice of NJ’s CIC owners. Thank you.

Let’s join together as a powerful VOICE for DEMOCRACY in our CICs to make a difference!

FALL 2014.

PAGE 1: Leg update & message from Pres.

PAGE 2: HOA “Humor” & Inspiring Quotes!

PAGE 3: 2014 CIC related Bills

PAGE 4: 2013 Legal opinion: Condo Act & Liens.

PAGE 5: littering/ flyers in a CIC

PAGE 6: What’s going on in NJ CICs?

PAGE 7: Right to review financial records by a CMCA.

PAGE 8, 9, 10: NJ DCA access to fin. records

PAGE 11: Editor’s opinion: access to records. PAGE 12: “what you can do!” PAGE 13: CIHC can help w/ CIC elections; Mold info. PAGE 14: Spotlight PAGE 15: support CIHC form HOW to CONTACT

the CIHC: Call Ellen

Vastola (Current

President) at 732-873-

3446, 9 am til 9pm.

Editor: Ellen Vastola

FALL 2014: Message from the CIHC President, Ellen Vastola;

Welcome to the FALL edition of the newsletter. Fall is the time for CICs to look around their communities to prepare for the winter ahead. Is your Community ready? Are the buildings and landscaping ready for the cold temperatures, wind, ice & snow? Does your Property Manager or staff know what they need to continue to provide uninterrupted services to you? Do you? These are all good questions to which you should know the answers. AND your Board is now preparing the 2015 BUDGET!

It is always a good idea to ask “information-seeking” questions, as opposed to bringing accusations! Let your Board and Property Manager see you as wanting to

understand or help; and not as just a “complainer”. BE part of the SOLUTION!

You can participate in the efficient running and maintenance of your community. You are an owner; and are the eyes and ears of the community. This is your

HOME/ your INVESTMENT! If you don’t speak up or participate, who will?

*** NJ LEGISLATURE UPDATE! ***

A869 – has flown through BOTH the Assembly and the Senate AND has

been signed by the Governor! It requires that “the Division on Civil Rights in

the Department of Law and Public Safety, in consultation with the Department

of Community Affairs, (oohh – not again, the editor) to post information for

owners and occupants of condominiums, cooperatives, and other common

interest communities (CICs) regarding disability accommodation rights under

the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.) on its

Internet website. Additionally, the bill requires the Department of Community

Affairs to post the same information on its Internet website.” (interesting . . . the

CIHC referenced the 1997 Gittleman v Woodhaven case regarding handicapped parking in

CICs in the Summer 2014 newsletter in response to a caller. the editor.) No information

has been found on the DCA website as of Aug 28, 2014.

WHY have the other Bills that the CIHC and its supporters are interested in

NOT moved along this quickly? [A 2952; A 3069; A 469; A 454; 1251; A 2397; S

1337; S 1398 - (companion to A 2397);S 1785; S 1938.] hmmmmmmm.


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Quotes Corner!

The “Independent Voice of NJ CIC Owners” is calling for ORIGINAL newsletter articles, ideas, cartoons, or

postings (to set up local/regional meetings, gatherings, protests, etc, to share experiences in person, etc).

The newsletter Editor reserves the right to use, edit or refuse a submission. Please send your original

submissions to the Editor and put “CIHC newsletter idea” in the subject line; otherwise it will be deleted

sight unseen.

This newsletter is for YOU.

CIHC “HOA HUMOR”

“Isn’t that the new deck of the Board President/Board member’s friend? So, why was I told

I had to remove my deck? I thought the Board was supposed to treat all owners equally?”

[Photo: http://www.njdecksandrailings.com/deck-pictures/condos-townhouses/ TREX deck, Montville, NJ]


Ethics is knowing the difference between what you have a right to do and

what is right to do.

Potter Stewart

More often there's a compromise between ethics and expediency.

Peter Singer

In civilized life, law floats in a sea of ethics.

Earl Warren

http://www.njdecksandrailings.com/deck-pictures/condos-townhouses/


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What is going on in New Jersey for CIC/CIRA owners FALL 2014:

Legislative UPDATE/ Bills to track in 2014!

NJ Assembly:

A 2952 – S. Kean (prohibits conflict of interest in CICs)

A 3069 – B. Andrzejczak (Provides fair standards for elections & recall of officers HOAs)

A 469 – J. Green & C. Riley (membership & mgmt of CICs)

A 454 – J. Green & U. Chivukula (proportionate ownership in fractions as opposed to %)

A 1251 – V. Prieto (addresses Task Force report recommendations)

A 2397 – D. Benson (surrender developers’ control)

A 869 – DCA to post information for owners and occupants of condominiums, cooperatives, and other common interest

communities regarding disability accommodation rights under the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-

1 et seq.) on its Internet website.

NJ Senate:

S 1337 – J. Van Drew (elections)

S 1398 - (companion to A 2397, Benson; surrender developer’s control)

S 1785 – L. Greenstein (grandfathers govn’g docs if in conflict w/ new statutes)

S 1938 – S. Turner (previously posted as S 1132)

To track 2014-15 Bills, go to: http://www.njleg.state.nj.us/bills/bills0001.asp ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Check out the DCA, BHP website. http://www.state.nj.us/dca/divisions/codes/offices/ari.html.

Recently, another piece of information has been added. When I first started asking questions and

calling the BHP 10+ years ago, there were ONLY 4 items posted to assist owners. Now, there are 2

more items for CIC owners. Please bring these DCA clarified items to your CIC Boards, their Property

Mgrs and attorneys. Let the DCA BHP know if this information is ignored by your CIC and ask

them for ENFORCEMENT via the complaint form! **See page 6 for how very recently the DCA BHP

is enforcing the NJ Condo Act. **

Access to Financial Records

Open Meetings

Alternative Dispute Resolution

Homeowner Complaint Form

Guidelines for Elections in Common Interest Communities

njac_5_20 Title 5 (meetings of Governing Boards of Associations of Condominiums and Other Planned

Real Estate Developments)

http://www.njleg.state.nj.us/bills/bills0001.asp

http://www.state.nj.us/dca/divisions/codes/offices/ari.html


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Revisiting New Jersey’s Condominium Act and a Condominium’s Obligation to Provide Notice of a Recorded Lien

Posted by David Byrne, Esq. of Herrick LLC on Jun 4, 2013

While New Jersey’s Condominium Act (the “Act”) does not expressly (and thus statutorily) mandate that a condominium provide the delinquent owner with notice or a copy of its recorded lien, such notice is standard and the most appropriate practice. It is very highly advisable that such notice be provided, so as not to risk a ruling that said lien must be discharged, along with other things.

As background, the Act at § 46:8B-21(a) provides: “The association shall have a lien on each unit for any unpaid assessment duly made by the association for a share of common expenses or otherwise, including any other moneys duly owed the association, upon proper notice to the appropriate unit owner, together with interest thereon and, if authorized by the master deed or bylaws, late fees, fines and reasonable attorney’s fees; provided however that an association shall not record a lien in which the unpaid assessment consists solely of late fees.” (emphasis added). Notably, the Legislature did not define the term “proper notice” in the statute. The Loigman court, however, provided its interpretation of the term “proper notice”: “[I]t would seem apparent that [the N.J. Legislature] must have intended to impose that type of notice which would give the unit owner knowledge of the lien’s existence and an opportunity to do something about it.”

In addressing the type of notice necessary to make an assessment lien effective pursuant to N.J.S.A. § 46:8B-21(a), the court stated that “the proper balancing of the rights of both a unit owner and a condominium association requires that the association provide simultaneous notice, or notice within a reasonable time thereafter, of the recording of the lien.” Taking these principles into account, the Loigman court held that a condominium failed to provide condo owners with adequate notice of the recording of the assessment lien in question and determined that discharge of the lien was the appropriate remedy. The court arrived at this conclusion because: “The notice sent by defendants merely advised plaintiffs of the potential-sometime in the future-of the Association’s pursuit of legal remedies. It did not say when these efforts would occur nor did the letter say which of these remedies would be pursued. Rather, the Association only made the ambiguous assertion that it might commence a lawsuit “and/or” file a lien. And when defendants ultimately forwarded a Notice of Lien to the county clerk’s office for recording, no notice was simultaneously, or at any time thereafter, given to plaintiffs.”

As an aside, the Loigman decision is also valuable for its holding that a condominium’s attorney complied with the FDCPA (federal Fair Debt Collection Practices Act) by sending a letter to the delinquent owners containing; (i) the amount of debt; (ii) the name of creditor; (iii) a statement that if the validity of the debt, or any part of it, is disputed then the debtor must so advise within 30 days or the debt will be assumed to be valid; and (iv) a statement that if the debtor notifies the creditor within 30 days that the debt or any part of the debt is disputed, then the creditor will provide verification of the debt before proceeding with any further collection activity. (Bold, underline and italics by the editor.)


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Living in a CIC:

What to do about receiving those unwanted and “unsolicited” flyers/ menus/ materials that end up at your door.

You might try the following steps . . .

If this constant barrage of unwanted material (flyers, menus, hangtags, etc) bothers you; because you do not want it, or that it wastes resource of paper and ink, or that you are made to deal with it and just want it to go away, etc, what can you do?

First, look around your community. Are the unwanted materials still on your neighbor’s doors or mats DAYS later? Ask your neighbors if they do not want them as you do. IF you see these materials blowing around the common property days later, that might indicate that other owners do not want to bother with them at all. As we know from living in a CIC, most owners will not say anything. And because of this apathy, nothing changes or gets better.

Second, you can research the “littering” laws for your Municipality. Some Municipalities have an unwanted littering law and an owner has the right to NOT have these materials delivered to them. This will help your Board in their decision on what to do.

Third, check your Governing Documents as to what are the common elements where you can and cannot post a “sign” to stop these unsolicited materials at YOUR door. You should be able to place a small sign, like a 3x5” index card, on YOUR doormat. The door mat is yours and probably is permitted to rest on the common element of the community. It can state something like, “No Soliciting! Do NOT Knock. No Flyers!” Hey, some doormats say more!

Fourth, look to see IF your community is posted with “no soliciting” signs. IF it is, then you should bring this “issue” to your CIC Board, as the Board put up the signs and they should enforce it.

Fifth, ask the Board what to do if you are compliant with the governing docs and you have a small sign posted where appropriate and legal, AND you still get the unwanted materials. Should you call the Property Mgr for the breaking of the community’s no soliciting rule OR to call the Police for breaking a Municipal ordnance?

You can use the above “course of action” as a model to resolve many small CIC issues.

The editor.


The CIHC would like to acknowledge our DONORs

in 2014. Thank you for your support!

New donors for the past quarter in blue: F.F., K.C., J. Farro, K. Quinto, M. Gomez, E. Bizzoco, M. Thomas, H

& M Bar-Akiva, , A. McC., G. Silverman, H.S., A.Sclafane, L.S.


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What’s going on in New Jersey’s CICs!

One caller has been asking her Board for access to financial records. She

has been told, “too bad you are not on the Board because then you could see

them”; and later “you need to sign this confidentiality agreement first”. She

filed a written complaint with the DCA BHP, who wrote an “order to comply” w/

the Condo Act access to records to the Association. The Association

(Attorney) wrote back that they wanted to “appeal” the BHP’s comply letter.

They do have the right to appeal. The DCA BHP directed the “case” to the NJ

Office of Administrative Law (OAL) for a hearing on the issue.

http://www.state.nj.us/oal/hearings/guide/#nbr3 The OAL imposed a deadline, to resolve

the issue OR come to a hearing on July 31st. Since the OAL “notice of a

hearing” was sent out, the Association now wants the complainant to sign a

“release from harm” letter. The complainant refused. Then the issue of a

“confidentiality letter” again came up and the DCA would allow this IF they

approved the language – against the wishes of the complainant. At the end of

July, the Assn Board attorney spoke to the DCA rep and got the hearing

pushed back to September AGAINST the wishes of the complainant, who

asserts that this gives the Assn more time to “fix” the books. What could

happen next? This could drag on and the Association attorney makes more $.

Is this good use of all the owners $? Stay tuned.

ANNOUNCEMENT! THE CAI-NJ has brought their annual Expo back to

central NJ, at the Garden State Exhibition Center! You can pre-register

at http://www.cainj.org/events/calendar/2014-cai-nj-conference-expo . It

is FREE for owners. Keep checking the CAI-NJ website for Expo

updates, including seminar topics. See you November 8, 2014 in

Somerset, NJ! Come with questions for the booth vendors: property mgr,

attorneys, accountants, landscapers, etc & get FREE answers! I do!

The CIHC has recently been referencing a national website for HOA (CIC)

concerns. This came about because we have received calls from New York,

Illinois and Texas! WOW, New Jersey is not the only state where owners are

experiencing problems living in their CICs. This is epidemic in the USA. So

moving away from New Jersey may not be the solution to your CIC problem.

There is a national organization that has information for each state. We do not

endorse the organization BUT use the website as a resource. Check it out!

http://www.hoa-usa.com/home/nj.aspx Read it with a critical eye.

http://www.state.nj.us/oal/hearings/guide/#nbr3

http://www.cainj.org/events/calendar/2014-cai-nj-conference-expo


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Homeowners Rights to Review Financial Records of the HOA (CIC)

http://www.hoa-usa.com/article-right-to-review-hoa-financial-records.aspx

by Jim Laumann, CMCA, HOA-USA

Simply put, homeowners should have access to appropriate association books and records, and

association boards must allow homeowners access to appropriate community records, when requested.

Your legal rights - Since almost every homeowner association is organized as a non-profit

corporation, state general statutes are the first place that a homeowner might look to find the specific laws

that require access to financial records. Most states also have other general statutes that are specific to

homeowner associations and access to records. And finally, association documents such as the bylaws may

also provide the basis for access to financial records. For references to these statutes, check your state's

section of our website under HOA Laws.

What records are accessible? - At a minimum, members should have access to the current

budget, an income and expense statement, a balance sheet and a statement of their account. Keep in

mind that the association board has a fiduciary responsibility to protect residents' privacy so don't ask for a

list of homeowners who are delinquent, the bank statement or a copy of the association's QuickBooks file.

Who has the records? - Ultimately the board is responsible for maintaining and providing access to

financial records, however, this may be the developer if the association has not transitioned to resident

control. The board may also delegate this responsibility to a management company. When requesting

financial records, begin with a phone call or email to the board or management company. You should check

to see if you need to put your request in writing or if fees are associated with your request. A friendly request

will go a lot further than a demand and accusation.

Oversight versus nit-picking - Every homeowner has a responsibility to monitor the financial health of

their homeowner association. Look for the following:

• Proper notice of the annual meeting and the budget ratification meeting.

• Opportunities for homeowners to address the board during the homeowner's forum.

• Any major changes in expenses and revenues year over year.

• Overall delinquencies that exceed 5% of total assessments.

• Adequate reserves being set aside for major capital improvements.

• Annual audit, compilation or review by an independent financial professional (CPA).

Board members are volunteers. They cannot receive compensation and usually receive little

appreciation. It is reasonable that their patience may be tested by a resident's persistent scrutiny over minor

expenditures. A resident with that level of oversight should be sincerely invited to serve on the board or the

budget committee. Also, some boards have annual budgets in excess of a million dollars and some have

budgets less than $20,000. Use common sense judgment that meets the test of oversight and not nit-picking

and is appropriate for the size and scale of the association.

Something smells fishy - Perhaps the board is not providing regular reports, is awarding generous

contracts without bids, has line item amounts in the budget that seem extreme, is not maintaining adequate

reserves or is unresponsive to your requests for information. This is the time to be firm in documenting your

requests and to take a more active role in your association's business. Become involved, attend meetings,

and offer to serve on a committee or the board. If all else fails, it's time to actively support the election of

new officers or talk with an attorney with expertise in association laws. Worst case is that your association is

no longer holding meetings, cannot find volunteers to serve, is not collecting assessments, and (is) no longer

enforcing the covenants. Property values are likely to continue to decline and it's time to move. [This article and many others can be found in our state-specific Resource Centers. Simply visit our homepage at www.HOA-

USA.com, choose your state from the US map, then choose "Articles" in our Resource Center.] (Bold & underline by the editor.)

http://www.hoa-usa.com/article-right-to-review-hoa-financial-records.aspx


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Attention CIHC readers! The previous article on access to records was written

by a CAI certified Property Manager. I thought it would be interesting to “compare and contrast” his interpretation of this CIC owner right to that of the NJ DCA BHP. See below.

NJ DCA BHP ACCESS TO FINANCIAL RECORDS GUIDE*

http://www.state.nj.us/dca/divisions/codes/publications/pdf_ari/access_financial_records.pdf

[[*Except for matters specifically cited as “the law”, this handout should not be referred to by owners as “the law”. ]]

“For owners in Common Interest Communities The New Jersey Condominium Act,( N.J.S.A. 46:8B-14(g), provides that associations shall be responsible for “the maintenance of accounting records in accordance with generally accepted accounting principles (GAAP) open to inspection by unit owners at reasonable times.” These accounting records shall include: (1) a record of all receipts and expenditures; and (2) an account for each unit setting forth any shares of common expenses or other charges due, the due dates thereof, the present balance due, and any interest in common surplus. The Department of Community Affairs has authority to enforce this access right.

In order to maintain consistency, courts have held that the right of access granted to condominium owners applies to those in other types of associations such as cooperatives and homeowners associations. Part of the right of access is the right to make copies of records. Access to financial records under our jurisdiction is considered to be unconditional and thus may not be denied because an owner is not paid up in association fees or has any outstanding violations. Although an association may require an owner to sign an acknowledgement listing the records to which access was granted or of having received an information sheet on consequences for misuse, it cannot require owners to agree to any confidentiality as a precondition for access or copying.

Because this is a statutory right, the owner need not provide any justification for requesting access. For the same reason, there is no need for any Board vote regarding the granting of access. Owners should allow the association a reasonable time to comply with a request considering the factors involved such as; the size of the association, its resources, the number of records requested, the presence or absence of professional management, the number of other pending requests, the general workload and relevant circumstances. If the association denies access or unreasonably delays or conditions access, the Department, acting through the Association Regulation Unit, has the power to order compliance.

While the law we enforce does not require the association to send a requesting owner copies of the records, (as opposed to allowing access), your association governing documents may offer this option. If that is the case and the association does not comply, you may wish to consider requesting alternative dispute resolution (ADR, see other handout.) Note, the fact that an association may send out copies of financial documents like budgets or balance sheets does not affect its obligation to allow access.

http://www.state.nj.us/dca/divisions/codes/publications/pdf_ari/access_financial_records.pdf


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The association must grant access without charge to the requesting individual (other than a proportionate share as an owner), even if another party charges the association a production fee. Although ideally the association will make records available on site, circumstances may require that an owner travel to an accountant’s or property manager’s office. Owners should check if the association keeps records in an electronic format. If it includes all records and copies of items such as actual bills and checks, that would be most convenient.

Owners can make their own copies on site if their method does no harm to the documents. In the event an owner wishes the association to make copies, the association can charge a fee. Fees must be reasonably related to the association’s copying cost and consistent with the owner’s right. An owner has the right to determine which records he or she would like copied. In the event there is an extensive list, it is common and not unreasonable for associations to require an advance payment. It is permissible for an owner to bring a knowledgeable person with them such as an accountant or one familiar with corporate financial records. In order to maintain the integrity of the records, it is expected that an association will have a representative present during a review.

Owners should note that except for the records of receipts and expenditures and unit payment records, the law does not establish other specific accounting records as being required to be kept. And note that access is to “accounting records”, thus we cannot support an owner’s demand for analyses, internal financial reports or explanations of accounting terms or methodology. While there is general agreement on records constituting basic accounting records for an association, others may be subject to differing interpretation by financial authorities. Thus, each association, in consultation with its accountant, should identify which of its records are accounting records. If you have a basis for disagreeing with the classification, you may request alternative dispute resolution (ADR). If the association refuses to allow an owner access to basic information such as bank statements, ledgers, journals or bills that are clearly covered, you should complete our agency complaint form and file it with us. It is clear that supporting documents such as vendor or service bills as well as payments are included. And, although certain board proceedings, such as discussions on legal actions, may be confidential, the resulting attorney bills are not. Attorneys claiming bills contain privileged material can redact such information before allowing access.

The law allows unit owners to access unit owner records for other unit owners. Should such records contain legitimately confidential information, such as social security numbers or unlisted telephone numbers, that information can be “redacted”. Owners are permitted to see the payment record of their fellow owners much the same as municipal property tax records are open to the public. The discovery of payment arrearages without any lien or collection notations allows owners to inquire about steps the association is taking to protect itself financially. A review of overall payment records allows owners to determine their association’s financial health. The association’s financial situation and management are basic board election issues.

Prior to making an access request, it is useful to ask the association about the titles and contents of the financial records it keeps so that a request can be specific. Association responses to access requests vary widely.


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There may be certain restrictions as to the time and location where the records may be reviewed. Also, in the event a request is not specific as to the records requested or the years to which the request pertains; the association is free to provide access in the manner it wishes. There is no set time period in which the association must make records available. Thus, the default is

a reasonable time considering all the circumstances.

Especially in larger associations, it is not productive to begin with overbroad requests. An owner desiring to access records covering a lengthy time frame, should make separate requests for specific periods. Unless precluded by governing documents, an owner may wish to make an informal oral request for access. If it is denied or ignored, one must make a written request to inspect records. If the governing documents are not specific as to whom the records request should be made; address the request to the governing board. The request should be made reasonably in advance of the desired review date and in accordance with any requirements in the association’s governing documents-provided they do not conflict with the owner’s legal rights. Be aware that current records may be in use by an accountant for tax preparation purposes.

If the association denies, or unduly restricts, access to accounting records, you can complete and submit the agency’s complaint form, along with the appropriate supporting documentation to the address supplied on the form. We can only compel associations to provide access to records under their control. In situations where a prior board member or property manager refuses the association’s request for the return of records, it is incumbent on the association to pursue their return. This agency cannot order that records be returned. Similarly, neither this nor any State agency has jurisdiction over the manner in which records are maintained. Although poor record storage or indexing may delay record access, they are not an excuse for denying access.

Owners should remember that boards are elected to exercise judgment in making financial decisions and a disagreement with how a board allocates or manages funds is an internal matter subject to change through an election. Should an owner believe that records reveal misappropriation or fraud, he or she may wish to ask for clarification from the board or provide the records to a personal accountant or attorney for review and guidance before bringing the matter to the attention of their county prosecutor. This agency has no jurisdiction over such matters.

The law does not mandate annual audits for owner controlled associations and this agency has no authority to mandate them. However, if your governing documents require them and the association fails to comply, you may wish to request to participate in an ADR procedure (see agency’s ADR handout). If you are dissatisfied with an ADR outcome, you can seek a court order for an audit.

[[All New Jersey statutes are available online at www.njleg.state.nj.us. Once on the page, scroll down and on the left side look for the category, “Laws and Constitution”, click on Statutes below that title and either scroll down to the appropriate Title number or type in the full name or citation in the search box. Any questions as to the functioning should be directed to njleg. Statutes are also available at county law libraries and often in municipal buildings. We do not provide copies of the Condominium Act or the Planned Real Estate Development Full

Disclosure Act (N.J.S.A. 45:22A-21 et seq.).]] (bold and underline by the editor)


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Access to a CIC’s Financial Records: What’s the Problem?

Lately, the CIHC has received numerous phone calls from frustrated owners who have asked for access to their community’s (Association’s/CIC’s) “books”. Some owners are noticing increased fees and their communities are looking “old and not maintained”. These owners want to know how their communities are being run & where their money (monthly maintenance fees) are going. They contact their Boards/ Property Manager and do NOT get information, or satisfaction. So, what’s the Problem?

Access to see your community’s financial records is a State mandated Right via the NJ Condo Act, NJS 46:8B-8. Of course, I direct the CIHC callers to the NJ DCA BHP (Department of Community Affairs, Bureau of Homeowner Protection) website that has a clarification of this “right” and the department’s complaint form. Callers have begun filing their complaints with the DCA BHP. (The newsletter editor believes that it is always a good idea to “document” your problems so they become part of the State’s records. It is a good idea to let your State Legislators know about this too!)

The CIHC also directs callers to become familiar with their community’s governing documents; the Master Deed and By-Laws. Most, if not all, By-Laws have a provision in them asserting an owner’s right to inspect the records. Please look for and read YOUR By-Laws for your community’s language. This is YOUR portal to gaining access to the records. Follow the instructions (to the letter) to see your records. Callers tell me that even after writing letter upon letter and/or making numerous phone calls, they still cannot see the records. Some are told “it’s too bad you are not on the Board”. Others are told “the records contain confidential information which would be too expensive to redact”; or get no reply at all. It is your right as per your By-Laws & the NJ Condo Act. So, what’s the Problem?

Now, I hear back from callers that HAVE filed complaints with the BHP. They tell me that the DCA BHP contacts the Association to ascertain IF there is, in fact, a “violation” of The Condo Act. IF there is, a letter to comply is sent to the Association. Now I hear that some Board attorneys are APPEALING the DCA BHP compliance letter! While this is acceptable legal procedure, it also prolongs the process and costs the community $$. The NJ DCA BHP is charged with ENFORCING this owner protective State Statute (LAW). So . . . what’s the Problem?

Interestingly, I was at an owner meeting at Alexandria Condos over a year ago. They invited Assm. Ciattarelli to attend. I remembered he was supportive of the owners fighting to get an election and to see their records. He quoted, “sunshine is the best disinfectant.” Yes, being open and transparent is the best way to run any organization (governmental, not for profit or a “quasi-governmental CIC). This promotes TRUST! So . . . what’s the Problem?

My Question to: the DCA BHP, NJ’s Legislators, CIC Board members, CIC Property Managers, CIC Board attorneys . . . IF the NJ Condo Act AND the CIC/Association’s By-Laws give owners the “right to inspect the financial records” . . . what’s the Problem?”

The PROBLEM is that NJ CIC owners are NOT being given their statutory right to “inspect the financial records” by their CIC Boards (owners wonder

why) and enforcement by the State (NJ DCA) is weak!

The SOLUTION? Each CIC must follow their governing documents, the NJ Condo Act

and win back the TRUST of their CIC owners! Be ethical and OPEN! DO the right thing!

the editor.


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After reading the DCA BHP clarification of “access to financial records” and a CMCA’s interpretation, what now? Here are some suggested actions for you!

CIC owners MUST bring to their Boards your NJ statutory right of access to records.

Make the Board PROVE why they will not allow access. Focus on the LAW (the NJ Condo Act) which allows “full access” because it is the owner’s (YOUR) money and NOT the Board’s money. Then you can file a complaint with the NJ DCA BHP!

IF you are denied access to your CIC’s financial records – GO PUBLIC! Spread the word to other owners, get their support. Ask, “what is the Board hiding about how they spend OUR money” or “what are they (the Board) afraid of”?

Contact the Commissioner of the DCA, Richard Constable, and DEMAND more action to enforce this statute! ASK: why is the NJ DCA NOT going out to the CIC “industry” (property mgmt. firms, NJ State Bar Assoc. Property Committees, accountants, to the 2 annual Expos) to provide broad guidance on this essential owner statute. The NJ DCA needs to be MORE VISIBLE & active! Contact the Commissioner's Office at 609-292-6420

Contact YOUR STATE LEGISLATORS: say you (CIC owner) NEED more expansive and pro-owner legislation mandating extremely broad access to records, among other protections and rights. The DCA is NOT protecting you. http://www.njleg.state.nj.us/members/legsearch.asp

Your CIC’s Board meetings: do you know how they should be conducting the meetings, and why? Info from: The Cooperator, issue AUG 2010

Q The board was advised by one of the owners that we must mail all the minutes of each Directors' meeting to all the owners. Is this correct? —Law-Abiding Citizen A “The bylaws of the condominium association sets forth the method for the administration and management of the condominium and its property including the procedure for conducting board of trustee meetings, which are open to attendance by all unit owners,” says Hackensack-based attorney Donald M. Onorato. “Additionally, the New Jersey Condominium Act and the New Jersey Administrative Code specifically address the issues dealing with distribution of board of trustees meeting minutes. More specifically, N.J.S.A. 46:8b-13 (A) provides that “[a]t each meeting required under this subsection to be open to all unit owners, minutes of the proceedings shall be taken, and copies of those minutes shall be made available to all unit owners before the next open meeting.”

“Likewise, N.J.A.C. 5:20-1.1 which sets forth the procedure for open board meetings provides (c) “that at each meeting required to be open to all unit owners, minutes of the proceeding shall be taken and copies of those minutes shall be made available to all unit owners before the next scheduled meeting.” The requirement to make the minutes “available” prior to the next open meeting does not mandate the association mail those minutes to the unit owners. N.J.A.C. 5:20-1.2, which sets forth the notice requirement with respect to meetings required to be open to all unit owners, states that “adequate notice” shall be written notice either posted prominently in at least one place on the condominium property or be accessible at all times to all unit owners, or else mailed, telephoned, telegrammed or hand-delivered to at least two newspapers that have been designated by the governing board and by the association to receive such notices or notice filed with the person responsible for administrating the business office of the association. Hence, the association is not required to mail the minutes to each unit owner but the posting of same prior to the next open meeting would constitute “adequate notice.”


http://www.njleg.state.nj.us/members/legsearch.asp


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NOTICE to NJ’s CIC Boards and Owners:

The CIHC, in accordance with our Mission, is available to assist in the election process of NJ’s CIC (common interest communities). We can assist you as an information resource, for support and as a dis-interested, impartial 3rd party to collect and count ballots, and to witness the election process on election day.

The CIHC is one of several entities, along with the League of Women Voters, recommended by the NJ Dept of Community Affairs to assist with elections in NJ’s CICs.

CIHC Mission Statement: • The CIHC is an independent non-profit organization [representing] owners of common

interest residential associations (condominiums, town-homes, planned unit developments and cooperatives). • The CIHC will serve as the voice of such homeowners to legislators and government officials, industry practitioners, association Board of Directors and the general public on matters directly related to residency in homeowner associations (HOAs). • The CIHC will, on its own and with others: develop and encourage appropriate principles, procedures and practices of democratic association governance; work to remove impediments to such practices, and establish legal and efficient mechanisms to ensure vigorous enforcement of these democratic procedures. • The ideal to achieve is that homeowners have effective agencies for participating within their associations in matters affecting their general welfare. • In this, the CIHC aims to ensure a democratic experience to homeowner’s at the most local level of governance as a means of strengthening these processes in the larger community, state and nation.

NOTE: The CIHC is registered in NJ as a 501 c (4) not for profit organization.

CIC owner’s ALERT! I have recently received calls about MOLD from

some of you. In searching the DCA website for other information, I found this! Maybe this link on “alerts” will help you to resolve your MOLD or other issues. I hope so! It might be good to check this alerts link from time to time.

http://www.state.nj.us/dca/divisions/codes/alerts/ &;

http://nj.gov/health/er/documents/prepare_before_cleanup_flyer.pdf for mold info.

Also try Rutgers Agricultural Experiment Station info: http://njaes.rutgers.edu/pubs/subcategory.asp?cat=9&sub=62

http://www.state.nj.us/dca/divisions/codes/alerts/

http://nj.gov/health/er/documents/prepare_before_cleanup_flyer.pdf

http://njaes.rutgers.edu/pubs/subcategory.asp?cat=9&sub=62


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The CIHC spotlights BRAVE NJ CIC owners !

In August, as an officer of the CIHC Board, I was invited to attend and assist at a “special

meeting” of owners in a local CIC. The purpose of the meeting was to take a vote to oust the

current board. I felt it was important that I go to support the rights of these owners even though I

thought that there could be some kind of resistance, or backlash for these owners and myself.

When I arrived, I was escorted into the meeting room at the Municipal Complex. I was

taken past the Property Mgr (actually 2) who came after me to ascertain why I was there. I said I

was invited by an owner and later stated to help count the votes as a “disinterested, impartial 3rd

party”. That caused much discussion at the Board table at the front of the room, which included

the Board attorney. I was informed that I must leave or they would call the Police. Again, the

owner said I was there to help with the counting of the votes. The other owners around me also

wanted me to stay. The Police were called and I was asked to step outside. The Police were

polite and I explained why I was there. The Police said that since the Board paid for the meeting

room, they had the right to refuse my entrance. I said I understood and left the meeting. The

Police thanked me for my cooperation. Thankfully, I always travel with a book, so I read outside

the building for 2 hours until the meeting was over.

As the owners came out, they were smiling. I found out they had succeeded in removing

their current Board. I spoke to the owner who invited me, and said “your work is not over”. “You

now need replacement Board members, they need to be trained, and you MUST take possession

of the Association’s records and checkbook. Then, the real work begins.”

I wish this community much LUCK as they go forward to govern their community. It will

take WORK and the participation of many owners! But, the result will be WORTH IT! GOOD

LUCK!

And yes, I did experience some unexpected backlash – but the CIHC & friends have

helped me. But that is another (ongoing) CIC story, for another day. The editor.

Something to THINK about regarding NJ’s CICs:

What 2 things are the CIC Boards, and their paid contractors, concerned about?

DISCLAIMER: The CIHC newsletter is written by and for NON-attorneys.

We do NOT and cannot practice law or give legal advice. We do provide

information to aid NJ CIC owners when they have issues in their

communities. We can and do support New Jersey’s CIC owners and

Boards for a democratic experience and enhanced quality of life, for all,

in said communities.


15

We welcome contributions from NJ residents who share in the goals/mission of the C-IHC. We

need funds for: maintenance of our website, postal mailings, flyer production & distribution,

expenses for contacting legislators and others, travel, periodic meetings, speakers, etc. IF you

share our Mission and Goals, please contribute. We are a registered NJ 501(c)4 - not

for profit organization.

Please print out this form & send your helpful Contribution to become a CIHC Friend:

Common-Interest Homeowners Coalition,

Post Office Box 1511, Hightstown, NJ 08520.

Contributing Categories: (check off the appropriate blank)

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