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:

In August 2017, Hill Wallack‘s Ronald L. Perl, Esq., Caroline Record, Esq. and Jonathan H. Katz, Esq., in conjunction with Wilkin & Guttenplan, P.C., presented a webinar dealing with what you and your community association should know about the new Radburn Bill.

In case you missed this webinar, you can view it by clicking here.

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.

By Jonathan H. Katz, Esq.

On July 13, 2017, New Jersey Governor Chris Christie signed into law P.L. 2017, Ch. 106 (S-2492/A-4091). The new law makes significant changes to the Planned Real Estate Development Full Disclosure Act (“PREDFDA”), N.J.S.A. 45:22A-43 et seq., with respect to procedures for board elections and voting participation rights. Although the legislation comes in direct response to complaints over a specific association – the Radburn Association in Fair Lawn – it will affect most, if not all, of the estimated 7,000 community associations located in New Jersey.

As outlined in a January 2017 article, the historic Radburn was established in 1929 as a “Town for the Motor Age.” The Radburn boasts 18 acres of internal parks, a shopping plaza, an elementary school, and “other remnants of the founders’ ambitious attempt to create a self-sufficient community.” However, for the past decade, pressure has been increasing from residents seeking to change what they considered to be an outdated and secretive process that the Raburn utilizes to elect its Board of Trustees. Specifically, not every owner in the Radburn was granted the right to either run for or vote for its Board. These issues led to litigation and caused so much uproar that State Senator Robert Gordon (D-Fair Lawn) introduced this legislation to make the election/voting process more inclusive and transparent.

Now that this legislation has been signed into law, it will change not only the Radburn’s elections, but will also have implications for most of New Jersey’s condominiums and homeowners associations. In fact, most of these newly enacted provisions will trump every association’s current by-laws. The most relevant provisions of the new legislation are as follows:

Hill Wallack LLP’s Community Association Practice Group will be exhibiting at the 2016 CAI-NJ Annual Conference & Expo, which is being held on Wednesday, October 26, 2016, from 10:00 a.m. to 3:00 p.m. at the Garden State Exhibit Center in Somerset, New Jersey.

This year’s conference returns to Central Jersey, so do not miss out on the exciting lineup of networking events, educational sessions, informative exhibits and more! Registration is FREE for all homeowners and board members (pre-registration is recommended). There will be plenty of giveaways and FREE breakfast and lunch. Come see us at Booth 505!

Also, join Terry A. Kessler, Esq. and Jonathan H. Katz, Esq. of Hill Wallack LLP and Denise Becker, PCAM, of Homestead Management Services, Inc. for their 12:00 p.m. presentation entitled Batman vs. Superman: The Struggle Regarding Ethics and Confidentiality for Board Members & Property Managers. Program Description: “In a world where association board members are faced with issues regarding ethics and confidentiality on a daily basis, who can you turn to in order to work through these complex problems? In this battle of good versus evil, you can’t rely on the Man of Steel or the Dark Knight. This program will arm you with the necessary information and discuss the relevant law in order to help you properly navigate these thorny issues.”

For more information and to register to attend the 2016 CAI-NJ Annual Conference & Expo, click here. 

Hill Wallack LLP‘s Community Association Practice Group will be exhibiting at the 2015 New Jersey Cooperator’s Condo, HOA and Co-op Expo on Saturday, May 9, 2015, 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!