Page 7 - CooperatorNews New Jersey Expo 2021
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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 


































































































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