By Ronald L. Perl, Esq. CCAL

The New Jersey Department of Community Affairs has proposed new regulations to implement the “Radburn Act,” which was enacted in 2017 to address procedures for board elections and voting participation rights in community associations. The proposed regulations would have a significant impact on the way associations conduct elections and tally votes as well as other issues, including board decision making on confidential matters.

Hill Wallack submitted a comment letter on behalf of its clients, with suggested changes to a number of proposed regulations. Click here to view a copy of Hill Wallack’s comments. Comments received by the DCA will be considered by that agency and it is anticipated that the final rules will be adopted and published in the coming weeks.

To read all of the proposed regulations, click here.

For more information on this or any other issue concerning your community association, please contact one of our Community Associations attorneys. For breaking news or updates on new blog posts, follow us on Twitter at: @njcondolaw, on Facebook at: njcondolaw, and on LinkedIn at: Hill Wallack Community Association Attorneys.

In order to help community associations understand the legalities of electronic voting as a result of the Radburn Law, Hill Wallack LLP hosted an informational webinar on this topic with Cathi Sleight from Vote HOA Now on April 24, 2019.

To view the webinar, please click here.

Thanks to our friends at Vote HOA Now for participating in this webinar. You can reach Vote HOA Now at www.votehoanow.com.

If you have any questions regarding electronic voting or any other issue regarding your association, please contact one of our Community Association Attorneys. For breaking news or updates on new blog posts, follow us on Twitter at: @njcondolaw.

By Ronald L. Perl, Esq., CCAL

For many years now, I have been convinced that electronic voting in community associations was inevitable. There is no doubt that electronic voting would make life easier for community managers, board members, and homeowners. When my clients were making by-law changes, I drafted amendments for associations that would take effect when the eventual change occurred. With the enactment of the Radburn Law, that change has now occurred and associations have the ability to adopt electronic notice and voting provisions. In my opinion, too few associations have taken advantage of this opportunity.

Electronic voting is sometimes misunderstood. It is not voting by e-mail. Rather, electronic voting means that ballots are cast on-line or through other electronic means and delivered directly to an association through a website or other secure service or program prior to a meeting. Notices are similarly handled on-line. For years, corporations have conducted elections electronically and the technology is readily available and at little cost for use by associations.

Electronic voting is more secure than using paper ballots, proxies, and absentee ballots. Verification of identity is provided. Results are available more quickly. Voter identity is protected (i.e., secret ballots). Weighted voting (different percentages for different units) is made easier. Even associations with fractional voting can be accommodated. There is greater confidence in the election process, since the collection and tabulation of votes is not handled either by management or the board. The process can result in cost savings for many associations.

In order to implement electronic notice and voting, associations will need to amend their by-laws. The good news is that the “reverse amendment” or “rejection vote” process in the Radburn Law is available for this task. Here is what Radburn specifically requires regarding electronic notice and voting:

By Jonathan H. Katz, Esq.

One of the overlooked effects of the recent Radburn Legislation is that it now provides statutory authority for New Jersey community associations to vote electronically. Specifically, the new law authorizes an association to utilize electronic voting: (1) when the board determines to allow voting by such means; and (2) when an association member consents to casting a vote electronically.

While this issue may not have come up previously in many associations, many states’ non-profit corporate statutes or association enabling statutes do not specifically address and/or authorize the option of electronic voting. In addition, most corporate statutes provide that elections and other action can be taken only at an in-person meeting of members or, if no meeting is to be held, by unanimous consent of the members. For example, New Jersey’s Non-Profit Corporations Act, provides only that elections of trustees may be conducted by mail and the Act authorizes decisions to be made in lieu of an in-person meeting only “if all the members entitled to vote thereon consent thereto in writing.” There is no mention of voting by electronic means.