Page 7 - CooperatorNews New Jersey Expo 2021

NJ.COOPERATORNEWS.COM COOPERATORNEWS NEW JERSEY —EXPO 2021 7 QUESTIONS & ANSWERS Legal Q A& Board Member Makeup Q In New Jersey, is it okay for a condo association with five or fewer units to have the unit owners act as the board of directors? —Seeking Clarification A “It is assumed from your question that the condo- minium association’s by- laws do not provide for each owner to have a representative on the board,” says attorney David Ramsey, chair of the New Jersey Community Association Prac- tice Group for the Morristown office of law firm Becker & Poliakoff. “While it might have been sensible for the drafter of the bylaws to allow such a scenario, it is possible that the drafter provided for a smaller board inasmuch as not all owners necessarily want to be board members. If you are certain that all unit owners want to be able to designate one of the own- ers to be a member of the board, it would be a reasonably simple matter to have an amendment to the bylaws drafted that permits this and have all unit owners vote to approve it. Presumably if they all wish restrictions,” says attorney Scott K. Penick into place by an association’s board of to serve, each owner will readily approve. of the North Brunswick offi ce of McGov- I would, though, suggest allowing some ern Legal Services. “Th ese are rules that are ally non-profit corporations with bylaws. flexibility in any amendment that might publicly recorded against all homeowner lots These bylaws typically outline the pow- be drafted, in case one or more of the fu- ture owners does not wish to serve on the ciation. Th e public recording in New Jersey cases, the bylaws give some measure of board. You may want to allow the size of will be with either the County Clerk or the rule-making authority to an association’s the board to float between a minimum County Register of Deeds and Mortgages. board of directors. Unlike CCR amend- and maximum size, depending on how CCRs typically address property rights (what ments, which require a homeowner vote, many owners wish to serve. In all events, can be done ‘Down on the Corner’ or ‘Out HOA rules outside of the CCRs can usu- be certain the amendment is recorded My Back Door’); maintenance, repair, and ally be changed by a vote of the board, with the clerk of the county in which your replacement responsibilities (‘Who’ll Stop without any homeowner input. However, condominium is located, since law pro- vides that a bylaw amendment is not ef- fective until recorded.” Rules, Rules, Rules Q What is the difference between easily changed. A vote of some percentage HOA rules and CCRs? —Not Looking for Creedence A “In the world of community and regulations. These may have been associations, CCR stands for established by the HOA’s developer, but covenants, conditions, and most often, these additional rules are put and association-owned lots within an asso- the Rain’ from fl ooding the detention basin); boards cannot establish rules that conflict and restrictions on activities both on home- owner lots and the common property (no a conflict, priority is given to the CCRs, ‘Travelin’ Bands’ allowed to play aft er dark). then the bylaws and then HOA rules. An Th ese rules are usually established by the as- sociation’s developer or sponsor and are not laws will be unenforceable.” of the homeowners within an association is typically required to amend the CCRs. “In addition to CCRs, most home- owners associations (HOAs) have rules directors. In New Jersey, HOAs are usu- ers of the board of directors. In nearly all with the CCRs or the bylaws. If there is HOA rule that conflicts with CCRs or by- continued on page 31