NJ Supreme Court Decision Paves the Way for Condominium Associations in Transition to Recover Damages against the Developer and Subcontractors

Posted by on Aug 23, 2016 in Construction Defect, Insurance, Legal Decisions

By: Christopher R. Geary, Esq.

On August 4, 2016, the New Jersey Supreme Court issued its decision in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, et al., which held that faulty workmanship by a subcontractor that causes property damage is a covered loss under the developer’s/general contractor’s commercial general liability (CGL) insurance policy. The ruling holds that this consequential damage constitutes an “occurrence” under the CGL policy and, as such, may allow community associations to recover for water infiltration and other defective construction.

In this case, Cypress Point Condominium Association instituted transition litigation against the project’s developer/general contractor for water leaks and other construction defects, which caused damage to the units and common property. The developer’s insurance company argued that the Association’s claims were not covered under the various CGL policies obtained by the developer because the alleged faulty workmanship by the developer’s subcontractors did not amount to an “occurrence” and that the resulting damages did not constitute “property damage” under the policies.

Read More

Join Us at the 2016 New Jersey Cooperator’s Condo, HOA and Co-op Expo on Wednesday, May 11, 2016!

Posted by on May 6, 2016 in New Jersey Cooperator, Speaking Engagements

Hill Wallack LLP‘s Community Association Practice Group will be exhibiting at the 2016 New Jersey Cooperator’s Condo, HOA and Co-op Expo on Wednesday, May 11, 2016, 10:00 a.m. to 4:30 p.m., at the Meadowlands Exposition Center in Secaucus, New Jersey.

Join board members, property managers, building owners and real estate professionals and meet building service companies, attend educational seminars and get your questions answered by a member of our team at Booth 600.

For more information or to register to attend, click here!

Read More

Pennsylvania Community Associations Benefit from Amendments to Uniform Planned Community Act and Uniform Condo Act

Posted by on Apr 25, 2016 in Collections, Legislation, UCA, UPCA

By: Jeffrey G. DiAmico, Esq.

On April 20, 2016, Governor Tom Wolf signed into law Act 21 – House Bill 1340, sponsored by Representative Martina White, which amended the Pennsylvania Uniform Planned Community Act (UPCA) and the Uniform Condominium Act (UCA) under Title 68 (Real and Personal Property). The amendments, specifically with regard to Section 3315(d) and Section 5315(e) of the Title 68 Acts – Lien for Assessments, expanded the provisions under the UPCA and the UCA and established that a lien for unpaid assessments may now be instituted within four (4) years (rather than the previous timeframe of three (3) years) after the assessments become payable. Additionally, the amendments now enable associations to resolve assessment delinquencies by allowing an association to obtain a personal judgment against the delinquent unit owner(s) rather than foreclosing on the lien, while still preserving the statutory lien. Previous to the amendment, in 2014, the United States Court of Appeals held that a personal judgment obtained by a community association in Pennsylvania did not preserve the statutory lien and that unless associations filed a lien foreclosure action within three (3) years of a delinquency, the lien for assessments was extinguished. The amendment allows associations to resolve assessment delinquencies without putting ownership of homes at risk through foreclosure proceedings.

Read More

Condo FAQs: “Limited Priority” Liens Pursuant to the New Jersey Condominium Act

Posted by on Mar 8, 2016 in Collections, Condo FAQs

By Jonathan H. Katz, Esq.

Hill Wallack LLP’s Condo FAQs is a continuing series in which we answer frequently asked questions (FAQs) pertaining to condominiums, cooperatives and homeowners’ associations. These FAQs relate to various issues that include interpretation of governing documents, board meetings, suspension of privileges, collections, or bankruptcy and foreclosure.

Question: I’ve heard that when a mortgage lender forecloses on a condominium unit, the association is entitled to six (6) months of assessments. I’ve also heard that the association has “limited priority” over the mortgage. Is that true? What does that really mean?

Answer: Pursuant to N.J.S.A. 46:8B-21(b) of the New Jersey Condominium Act, a condominium association’s recorded lien for delinquent common expense assessments may have limited priority over an existing mortgage under certain circumstances. If those specific requirements are met, the association to would be entitled to six (6) months of “customary condominium assessments” from the mortgage lender if the unit is sold as part of a mortgage lender’s foreclosure action.

Read More

New Law Requires Clearing of Snow from Fire Hydrants within 24 Hours

Posted by on Feb 25, 2016 in Legislation, Snow Removal

By Ronald L. Perl, Esq.

The recent snow storm created a nightmare for many community associations in New Jersey. The unusual amount of snow and high winds interfered with snow removal efforts and created both physical and financial burdens. It is therefore timely to discuss a law that became operative on January 1st of this year, which gives municipalities the authority to require adjacent property owners to clear snow from all fire hydrants “within 24 hours of snow coverage.” The law, N.J.S.A. 40:65-12.1, also authorizes municipalities to require the installation of a locator pole on each hydrant.  

Read More

In re Rones: A Debtor Cannot “Strip Off” or “Cram-Down” a Condominium Lien as Part of a Chapter 13 Bankruptcy Action

Posted by on Feb 22, 2016 in Bankruptcy, Collections, Legal Decisions

By: Jonathan H. Katz, Esq.

The District Court recently delivered a rare win for condominium associations throughout New Jersey dealing with bankruptcy actions filed by their residents. The Court reversed a 2015 decision that allowed debtors filing Chapter 13 bankruptcy petitions to “strip off” or “cram down” an association’s lien, which in most cases resulted in that the association only receiving six (6) months of assessments and having to write off as bad debt all of the remaining unpaid amounts.

Read More

Statute of Limitations in Association Construction Defect Cases Tolled until Transition from Developer Control

Posted by on Feb 10, 2016 in Construction Defect, Legal Decisions

By: Christopher R. Geary, Esq.

On February 1, 2016, the New Jersey Appellate Division issued an unpublished decision in The Palisades at Fort Lee Condominium Association, Inc. v. 100 Old Palisade, LLC, et al, (Docket No. A-4292-13T3). In Palisades, the Court reversed the Trial Court’s determination that the six (6) year statute of limitations on construction defects begins to run when the work is substantially complete. Rather, the Court held that the time period for a condominium association to bring claims against contractors who performed work on the association’s common property does not begin to accrue until control of the association is turned over to the owners by the developer.

Read More
Facebook