The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed chapter 13 plan, rejecting the association’s argument that its claim is secured by a consensual lien and may not be modified pursuant to 11 U.S.C. 1322(b)(2). Specifically, the Court found that a lien held by […]
Condominium Associations May Recoup Insurance Deductibles (NJ)
One of the largest line items in any condominium association’s budget is its insurance premium. Condominium associations are required, pursuant to their governing documents, to carry adequate property insurance to address common elements (and in many cases, unit owners’ improvements), liability insurance, and director’s and officer’s insurance coverage. Further, condominium associations budget for any insurance […]
New Jersey Superior Court Holds Condominium Association Was Not Entitled to Redeem Tax Sale Certificate on Condominium
The Superior Court of New Jersey, Hudson County, Chancery Division-General Equity Part recently held that a condominium association’s attempt to redeem a tax sale certificate on a condominium on which it held a lien was not valid because it was neither a mortgagee nor the owner of the property. See JNH Funding Corp. v. Ayed […]
Recent Appellate Division Decision Expands Private Party Remedies Under New Jersey Spill Act and Demonstrates Condominium Owners’ Potential for Environmental Liability
The New Jersey Appellate Division’s recent decision in Matejek v. Watson was notable in two respects. First, it provides a private party an order compelling another party to participate in an environmental investigation without proving liability, something not previously allowed under New Jersey’s Spill Compensation and Control Act (Spill Act) or its federal counterpart, the […]
Condo’s and the Environment (NJ)
GREG RENEE MATEJEK v. NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION CLAREMONT HILLS PARCEL TWO CONDOMINIUM ASSOCIATION The facts as found by the trial judge at the conclusion of a bench trial are relatively simple. Briefly, oil was discovered on the surface of a tributary to Royce Brook in Hillsborough in 2006. In response, the New […]
New Jersey Supreme Court Affirms Coverage For Construction Defects
The New Jersey Supreme Court has affirmed the Appellate Division’s pro-policyholder decision in Cypress Point, confirming broad coverage for construction defects. Cypress Point Condominium Association v. Adria Towers, LLC (A-13/14-15) (076348) (August 4, 2016). The Appellate Division had reversed the trial court decision that denied coverage. In a scholarly decision, the Supreme Court traced the […]
New Jersey Condominium Act
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What Happens Next after Cypress (NJ)
The New Jersey Supreme Court in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC., et al. (A-13/14-15)(076348) finally put to rest (in New Jersey) an issue that has been haunting general contractors and developers since 1979. That is the year when Justice Clifford penned Weedo v. Stone-EBrick, 81 N.J. 233 (1979), denying a faulty […]
Recent Court Decision Interprets New Jersey Condominium Act To Determine Voting Rights of Investor Owners
For investment purposes, many people purchase condominium units with the intention of renting the unit. On occasion, sophisticated investors will purchase, either individually or more typically through a Limited Liability Company (LLC), blocks of units in a condominium, and subsequently rent those units to tenants in the ordinary course of business. Do investor owners who […]
Pet Policies in Boards and Associations: From No Pets to Petopia
Although it may sometimes feel as if our pets have the run of the land, humans are still the masters of their own domains. In order to maintain this status quo—especially in a communal environment such as a condominium, cooperative or homeowners’ association—we need to establish a set of ground rules regarding pet care, lest […]
Sign of the Times
With the Republican and Democratic National Conventions behind us, campaign season is now in high gear. Many people feel very strongly about who should become our next President and would like to convince as many people as possible to vote for their preferred candidate. While not everyone has the time to volunteer for a campaign or the means to make donations, many people will […]
New Jersey Supreme Court Issues Important Ruling for Developers and General Contractors Regarding Coverage Under CGL Insurance Policies
The New Jersey Supreme Court’s August 4, 2016 holding in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC is the latest decision to fall in line with the “strong recent trend” by state and federal courts to recognize that standard commercial general liability (CGL) insurance policies provide coverage for property damage caused by the […]
New Jersey Supreme Court Gives Supreme Win to Policyholders
Yesterday, the Supreme Court of New Jersey unanimously affirmed the Appellate Division’s holding that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” and an “occurrence” under the 1986 Insurance Services Office, Inc. (“ISO”) form commercial general liability (“CGL”) insurance policy. This holding is welcome news to real estate developers, general contractors, and […]
New Jersey Supreme Court Finds Coverage Under a Developer’s Commercial General Liability Policy for a Subcontractor’s Faulty Workmanship
On August 4, 2016, the New Jersey Supreme Court issued a unanimous decision in a case regarding insurance coverage that could have lasting impact on developers, contractors, and subcontractors. In Cyprus Point Condo. Ass’n, Inc. v. Towers, 2016 N.J. LEXIS 847 (Aug. 4, 2016), the Supreme Court ruled that under a property developer’s commercial general […]
Are You Covered? Insurance for Condos Goes Beyond the Basics
The experts who advise condo associations on insurance matters admit that the basic policies are pretty standardized and often seem to be all the same. Trustees may tend to gloss over the details and assume that anything important relative to condo communities is already built in to their coverage—and much of the important stuff probably […]
The Transition Engineering Report: Triggering The Statute of Limitations in Condominium Construction Defect Cases
Earlier this year, the New Jersey Appellate Division reversed a Bergen County trial court decision, which had dismissed a construction defect case filed by a condominium association more than six years after the condominium complex was substantially completed, but less than six years after the association received the transition engineering report identifying construction defects. Read […]
Vetting Your Professionals: Hiring the Best People for the Job
There is always work to be done on a building, whether it’s a simple lobby repair or a major capital improvement, and finding the right contractor for the job takes some work. If the vetting process is not done properly, the results could be disastrous. Read the article………..
Community associations must maintain sidewalks (NJ)
Can your community association be held liable for injuries caused by poorly maintained sidewalks? According to the most recent State Supreme Court decision on this issue, yes, if the association owns the sidewalks within the community. Read the article…………..
Insurance Decisions: How Much Coverage is Enough
From equipment failure and personal injuries to tornadoes and tropical storms, disasters happen. Any condominium association worth its salt knows that it needs to be prepared for a rainy day. A great chunk of that preparation is insurance. Read the article……….
Homesharing and Insurance: What Your Board Should Know
In the tri-state area, where even the most profligate among us may shed a tear or two at hotel room prices, the homesharing trend has grown by leaps and bounds, with more co-op and condo owners than ever renting out their units to short-stay vacationers—and pocketing more than a few extra bucks in the process. […]
Property Insurance Basics: The ABC’s of Coverage
Property insurance, by definition, is a guarantee of compensation for a specific loss or damage to physical property or equipment. Within that broad and simplified explanation there is room for multiple interpretations—and more than enough confusion to go around. An all-volunteer condo or co-op board of directors may be intimidated just thinking about what constitutes […]
Filing Insurance Claims: Choosing Wisely Can Save Money
Boards and associations, just like individuals, carry insurance coverage to protect them from liability, loss and other financial and legal problems, although the issues may be a little different than the typical auto or single-family homeowners’ insurance. Read the article……….
Misrepresenting Their Qualifications, Inexperienced Contractors are Liable for Consumer Fraud (NJ)
When finding and hiring contractors to perform construction work, property owners rely on information provided by the contractor, especially relating to the experience, skill and specialized knowledge they possess to perform the requested job. But, what happens when the contractor does not have the adequate experience and knowledge to perform the work properly? According to […]
New Jersey Appellate Court rules consequential damages are covered by general liability policy even when direct damages are not
The Appellate Division of the Superior Court of New Jersey recently ruled in Cypress Point Condominium Association, Inc. v. Adria Towers, L.L.C.1 that consequential damages to the common area and units of a condominium complex caused by a subcontractor’s defective work constituted “property damage” and an “occurrence” under the building developer’s standard-form CGL policies, even […]
Need-to-Knows of Living in a New Jersey Condominium Development: Common and Limited Common Elements versus Unit property in Condominiums – Part 2
You’re in your car heading home when you turn into your condominium development. That road you just entered, it’s a common element. On your route to your unit you pass by the club house and community pool— these are common elements as well. You’re finally home as you pull into your driveway—which, by the way, […]
The Passing of the Torch in New Jersey – Transition of Control of a Condominium Association from the Developer to Unit Owners
Pursuant to the Planned Real Estate Development Full Disclosure Act (“PREDFDA”), N.J.S.A. §45:22A-21 et seq., a developer of a proposed condominium development that is subject to the registration requirements of PREDFDA must establish an association responsible for the management of the common elements and facilities of the proposed condominium development. N.J.S.A. §45:22A-43. Read the […]
The “Continuous Trigger” Theory and Construction Defect Actions: Cypress Point Condominium Association v. Selective Way Insurance Co.
A New Jersey trial court granted summary judgment in favor of Selective Insurance Company holding that the “continuous trigger” theory does not provide insurance coverage subsequent to the manifestation of damages that arose from a subcontractor’s negligence in the construction of a condominium development. The issue arose in the matter of Cypress Point Condominium Association […]
New Jersey 2015 Legislative Update A Look at New & Proposed Legislation
The second half of the 2014-2015 legislative session in Trenton is underway, and—as always—housing is on the agenda, with a large number of housing-related bills up for consideration. Read the article……….
Big Buildings, Big Boards The Art of Governing Larger Communities
With all this new action, the number of condo boards that oversee hundreds of units, or even 1,000 or more, has increased. Condo communities of that size were not very common in New Jersey a few years ago, but one look at the west side of the Hudson shows the change that’s taking place right […]
New Jersey bankruptcy court issues ruling regarding condominium association liens in Chapter 13 proceedings
On June 11, 2015, the United States Bankruptcy Court for the District of New Jersey recognized that a condominium association’s lien is entitled to a limited six-month priority over a first mortgage. Read the article………..
The Community’s Hub: Clubhouses and Community Rooms for HOAs
Co-ops, condos and HOAs draw prospective residents with a wide variety of appealing features, from proximity to an office or family member to amazing views, to the concept of having someone else mow the lawn, fix the roof, and maintain the property. For certain residents, however, the biggest appeal of co-op and co-op living is […]
Appellate Court Upholds Requirement that Condominium Associations Must Offer Alternate Dispute Resolution for Collection of Delinquent Assessments
In an unpublished Appellate Court decision – The Glens at Pompton Plains Condo. Ass’n, Inc. v. Van Kleeff – the New Jersey Appellate Division made it abundantly clear that condominium associations must offer alternative dispute resolution (“ADR”) for any “housing-related dispute,” including the non-payment of assessments/maintenance fees, prior to filing any non-emergent legal action against […]
New Jersey Court Applies Continuous Trigger Theory and Finds That No Coverage Is Available Because Damage Manifested Prior to Inception of Policy
In Cypress Point Condo. Ass’n. v. Selective Way Ins. Co., 2015 N.J. Super. Unpub. LEXIS 721 (March 30, 2015), the New Jersey Law Division dismissed a declaratory judgment action filed against an insurer for a framing contractor, holding that coverage was not afforded under the continuous trigger theory because the injury manifested prior to the […]
Case Tests Homeowners’ Associations’ Icy Sidewalk Liability (NJ)
The New Jersey Supreme Court is considering whether homeowners’ associations and their maintenance contractors can be held liable for injuries caused when they fail to clear snow and ice from sidewalks that they own and have pledged to maintain. Read more……….
Hiring New Management: When it’s Time for a Change
There is an old saying that claims, “The more things change, the more they stay the same,” and that is not a happy thought for a board of directors or an association looking to change property management firms. The turmoil of replacing a management company is guaranteed to be costly, not only for the board, […]
Mastering Management: Maximizing Cooperation and Partnership
Individual commitment to a group effort; that’s what makes a team work, a company work, a society work, a civilization work. Legendary Green Bay Packers football coach Vince Lombardi left condo boards and managers off his short list, but his wisdom about commitment and teamwork could certainly apply to boards and management companies. […]
Get Smart: Continuing Education for Association Managers
The most successful property managers realize they don’t know everything. To achieve an optimal level of efficiency in the workplace, a manager must stay abreast of current legal developments, evolving building technology, and fresh communication methods in association administration. Read more……..
It’s Tough Out There: Keeping Up in a Competitive Management Market
As the condo and HOA market continues to heal after the setback it experienced during the most recent financial crisis, many management firms and independent property managers are looking for ways to distinguish themselves from their colleagues and stand out in an increasingly tough market. The competition to manage some of the world’s priciest buildings […]
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
Community Association Viewed as a Business for Maintenance Liability (NJ)
On August 12, 2015, the Supreme Court of New Jersey decided the case of Cuiyun Qian v. Toll Brothers Inc., et als. In that case, the plaintiff and her husband resided in a unit in a community association in the Township of Plainsboro. All areas other than the dwelling unit itself were common property including […]
Security vs. Privacy: Striking the Balance in Co-ops and Condos
From time immemorial, the home has been synonymous with warmth, comfort and, most importantly, safety. The boards and managers who oversee condominium communities are aiming to preserve this image by ensuring that safety is their top priority, and that residents should harbor no fear in regard to their well-being, or the well-being of their families […]
Where There’s Smoke… Developing Sound Fire Safety Policies
One only needs to watch the news regularly to understand the devastation that a fire can have on a home or community whatever the time of year. A condo fire in October in Dunellen injured a firefighter and destroyed much of the complex, leaving many of the residents homeless. Read more……….
Neighborhood Watch Groups: Looking Out for Each Other
All homeowners worry about adequate security, but many HOAs and condo associations overspend on guards, surveillance cameras, and electronic security systems. There are low-tech, more cost-effective solutions for suburban associations, though, like neighborhood watch programs, where involved residents organize themselves to observe and report important concerns. Read more……..
Disaster Management: Handling Crisis, Large or Small
……face crises that arise throughout the state every day, from fires to water main breaks to building collapses, doing so with their trademark resilience. And whereas residents have long been accustomed to lousy – aand sometimes dangerous—winter weather, it wasn’t until Superstorm Sandy hit in 2012, costing over three-dozen lives and roughly $30 billion in […]
N.J. Supreme Court decision clarifies rules for condo associations, other properties: Opinion
Chief Justice Stuart Rabner and a unanimous New Jersey Supreme Court issued this week a virtual emancipation proclamation for the million and a half residents of some 6,400 common interest communities in New Jersey. Common interest communities are condominiums, homeowners¹ association and co-op residences which are required by state law to elect their own governing […]
Condominiums and Mold –What can a unit owner do?
A Florida woman is complaining about an issue that we see frequently: a neighbor with a severe mold problem. See attached news article. Many condominiums and townhouses are constructed in a manner so that mold in one unit can travel into adjoining units. Its similar to noise or odors: one unit can affect neighboring […]
Top 10 Energy Tips: Good Advice Makes Saving Simpler
There’s probably not a condo, co-op, or HOA board that doesn’t worry about money at some point or another, which is why staying on top of the latest money-saving opportunities is vital for any building or community to be successful. One of the biggest ways to save money is to cut energy costs, and there […]
Office of the Attorney General (NJ) Issues Disability Fact Sheet for Housing with Homeowner’s Associations
Division on Civil Rights Director Craig T. Sashihara announced today that the Division has posted a new Disability Accommodation Fact Sheet on its Web site that explains disability accommodation rights for the owners and occupants of condominiums, cooperatives and other common interest communities governed by a homeowners’ association or similar entity. The Fact Sheet discusses […]