Page 11 - New Jersey Cooperator January 2019

sented some boards with non-resident members,” says James A. Slowikowski, a partner at law firm Dickler, Kahn, Slowikowski, & Zavell Ltd., which has of- fices in Chicago and Arlington Heights, Illinois. “Sometimes the member lives lo- cally, but is not a resident in the associa- tion. In other instances, the members are snowbirds, and as such they are ‘absent’ for several months at a time, but other- wise live at the property. “I think there is only a slight differ- ence between those two types of non- resident board members,” he continues. “The snowbirds generally think like resident board members. The main dif- ference I often see is that the snowbirds often will want to put off projects or cer- tain business until the spring, when they will be back on site – and that’s usually in proportion to the number of snow- birds serving on the board. When one or more are away, board business tends to be conducted only as needed. On the oth- er hand, some things may be addressed sooner than they normally would, such as working on the annual budget before those snowbirds depart for the winter. So the timing of when things get done is what is most affected – not the substan- tive decisions, so much as when those de- cisions are made.” The full-time non-resident board member presents a different dynamic than the seasonal absconder. “They typically reside lo- cally, but just not on the property,” Slowikowski contin- ues. “Strictly speak- ing from a legal per- spective, all board members have the same duty to act in the best interests of the association, and residency should not matter. But from a practical perspective, we do see some differences as to how they approach their duties. “In my experience, the non-resident board members tend to approach the op- eration of the association as a business; they are protecting an investment. And that business should be financially stable and sustaining. This type of board mem- ber is typically not as concerned about funding reserves, paying or adopting special assessments, or borrowing funds as needed. They will want the parking lot repaved, rather than simply patching pot- holes; while resident board members, on the other hand, may have more concern for day-to-day oper- ations, and how the enforcement of rules and regulations af- fect residents’ daily lives. They tend to be more in touch with smaller maintenance projects that can have immediate effect on those at the property, and are more likely to want to keep assessments lower – even when as- sessments should be raised – as they may not possess that investor mentality.” Nothin’ Goin’ on But the Rent Non-resident board members may see their units as assets to be monetized. These individuals are likely to want to rent their apartments to maximize their investment. “Many associations prefer owner-oc- cupied units, so in instances where con- flict arises, it’s typically between those who live there and those who do not, but who want to rent,” notes Marc H. Schnei- der, a partner with Schneider Buchel LLP, a law firm in Garden City, New York. That said, there are clearly shared mo- tivating factors between both those who live on-site and those who live elsewhere. “Ultimately, I feel that everyone involved has the best interests of the community at heart,” says Elysa D. Bergenfeld, a partner in the Community Association Practice Group at Ansell Grimm & Aaron, P.C., in Princeton, New Jersey. “The board members may see different things from NJCOOPERATOR.COM THE NEW JERSEY COOPERATOR — JANUARY 2019 11 “The board members may see different things from different perspec- tives, but ultimately they all care about the prop- erty values, their neigh- bors, and the well-being of the community.” —Elysa Bergenfeld continued on page 16 Making a Difference. Every Day. Exceptional Service is Our Mission. As New Jersey’s property management industry leader, we know what it takes to create great communities that residents are proud to call home. We start by putting the right teams in place – local property experts who deliver our best-in-class solutions, along with genuinely helpful service, to enhance the property values and lifestyle of those we serve. That’s how we make a difference, every day, for great communities like yours… · Luxury High-Rise Towers · Condominium & Homeowners Associations · Lifestyle, Large Scale & Active Adult Communities 21 Christopher Way, Eatontown, NJ 07724 1099 Wall Street West, Suite 282, Lyndhurst, NJ 07071 800.310.0326 | www.fsresidential.com