Community Associations Should Take Advantage of New, Increased Lien Priority Legislation

On April 29, 2019, Governor Murphy signed into law a package of foreclosure bills designed to help owners keep their homes, shorten the time a house sits vacant, and prevent abandoned properties from becoming eyesores. Of specific interest to community associations was the expansion of the statutory “lien priority.” The new law now provides that both condominium and homeowner associations are eligible to receive a six-month “rolling” lien priority. This means that instead of having a priority for only six months of assessments, an association may be eligible to claim a six-month priority for every year that it has a recorded lien (up to five years).

By Loren Rosenberg Lightman, Esq.

A new law amending New Jersey’s Hotel and Multiple Dwelling Law changes the schedules for inspections of multiple dwellings throughout the state. While a primary purpose of the law is to allow for flexible inspections for substandard apartment buildings, the law also encompasses multiple dwellings including condominiums and cooperatives. This flexibility is potentially good news for some multiple dwelling owners and perhaps not as positive news for others.

Prior to the amendment, the New Jersey Department of Community Affairs (DCA), Bureau of Housing Inspection inspected multiple dwellings in the state every five (5) years. Depending on the findings from the initial inspection, there would either be a follow-up inspection or there would not be another inspection until the next 5-year cycle. Under the new law, there is now a “flexible” inspection process that will potentially lessen the frequency of multiple dwelling inspections. The law goes into effect immediately and is applicable to the next new inspection cycle for each multiple dwelling.

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.

By Caroline Record, Esq., CCAL

Effective January 1, 2019, the New Jersey Uniform Fire Code, State Fire Prevention Code, was amended to require that all multiple dwellings have an approved 10-year sealed battery single station alarm installed. The proposed reason for this change is that a battery cannot then be used for another purpose, or not changed for an extended period of time, thereby reducing the number of non-working smoke alarms in a building. Thus, any existing smoke alarms that may use a 9-volt battery must be replaced with a 10-year sealed lithium battery type alarm. If the smoke detector is hard-wired, it will not have to be replaced. Likewise, any carbon monoxide detector does not need to be replaced unless it is combined with a non-hard-wired smoke detector.

After January 1, 2019, the Department of Community Affairs (DCA) will be citing those units which do not have the new, required alarms, during its 5-year inspections. Therefore, all unit owners must be advised that their smoke alarms must be replaced. In addition, upon the resale or rental of a unit/home after January 1 date, the new smoke alarms will be required.

For more information, please click here to read the DCA press release.

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.

Ronald L. Perl, Esq., CCAL, partner-in-charge of Hill Wallack’s Community Associations Practice Group, will be speaking at this year’s CAI-Pennsylvania/Delaware Valley Conference & Expo on Thursday, May 9, 2019, at the Valley Forge Casino Resort in King of Prussia, PA.

Ron’s educational program, “Expanded Fair Housing Liability for Associations – Exposure for the Illegal Acts of Residents,” will take place from 9:45 A.M. to 10:45 A.M. The program description is as follows:

Most community association boards and managers know that the Federal Civil Rights Act prohibits housing discrimination and that the Fair Housing Amendments Act of 1988 added handicap and familial status to the groups protected by the law. Less well-known is the fact that in 2016, the U.S. Department of Housing and Urban Development (HUD) enacted regulations which expanded the scope of community associations’ liability for housing discrimination. The regulations establish potential liability for associations based on the discriminatory actions of residents over whom the association has no direct control. This session will discuss these regulations and why associations now must be actively involved in addressing resident vs. resident discriminatory conduct.

Hill Wallack’s Community Associations Practice Group will also be exhibiting during the show, which runs from 10:45 A.M. to 5:00 P.M., so stop by to talk to our attorneys and drop your business card for a chance to win our giveaway.

For more information or to register to attend the Conference & Expo, click here.