Page 19 - New Jersey Cooperator February 2019

NJCOOPERATOR.COM THE NEW JERSEY COOPERATOR — FEBRUARY 2019 19 THE COOPERATOR EXPO 2019 WHERE BUILDINGS MEET SERVICES REGISTRATION IS FREE BUT THE COST OF NOT GOING COULD BE HIGH. MEADOWLANDS EXPO CENTER, SECAUCUS — WEDNESDAY, MAY 15, 10–4 FREE REGISTRATION: NJ-EXPO.COM “In suburban associations, I see more issues that pertain to contracts,” she con- tinues. “In the city, it’s less likely that you’ll have a large area that needs snow removal or much landscaping work. But slip-and- fall cases can happen anywhere; those are pretty evenly dispersed. And I’ve also found that hoarding doesn’t depend on the setting; I see that with equal frequency in suburbs and high-end Back Bay condo- miniums. There’s no rhyme or reason as to where hoarding behaviors take place.” And city-dwellers may just be more inclined to reach out to an attorney for an association-based problem in general. “One clear distinction that I’ve found – and I think that it definitely stems from New York City marketplace influence – is that those \[urban\] associations are more willing to pay for legal expertise, which is differ- ent from the more suburban areas, which tend to have problems that are less signifi- cant – although not always – and are often more reticent to pay for attorney expenses,” says J. David Ramsey, a shareholder with law firm Becker & Poliakoff in Morristown, New Jersey. “Also, in more suburban areas, when I give a legal opinion on something, it’s usu- ally not cynically questioned,” Ramsey con- tinues. “People may have some feedback, but not to the extent that they do in urban areas, where they’ll say ‘But my brother the lawyer says X,Y, or Z.’ So on one hand, the urban associations are more inclined to so- licit legal advice, but on the other, they’re more likely to put that advice under a mi- croscope.” The physical layout of a property or as- sociation is likely to vary based on where it is located. “When a high-rise condo in an urban location has a number of owners and occupants literally stacked on top of one another in close proximity, it can lead to things like noise and odor emanating from one unit and travelling to another,” says Benjamin J. Rooney, a shareholder with law firm Keay & Costello in Wheaton, Illinois. “This is less of a concern in sub- urban associations, which oftentimes con- sist of free-standing single-family homes on larger lots. But on the flip side, subur- ban community associations comprised of single-family residences or townhomes frequently require the owners to maintain exterior portions of those homes. That can create problems should they fail or refuse to perform this maintenance, thus creating an eye- sore which the board must then address. “In a high-rise,” he continues, “own- ers do not typically have the right or ob- ligation to alter – or maintain – any por- tion of the property visible to other owners or the public. While this may mean that the high-rise condo- minium association is ultimately responsi- ble for more maintenance than some other types of community associations, it also re- sults in the board having more control over the portions of the property visible to the public, which can lead to fewer problems.” What a Handful This may not come as a relief to man- agers the world over, but there are actually multiple reasons why managing an asso- ciation in either city or suburb can be ex- tremely difficult. But those reasons vary, based on location. “Disputes over management operations are equally balanced between city and sub- urbs,” says Barnett. “However, I do see a lot more city condos opting for self-manage- ment, just given the fact that they tend to be smaller. When there are disputes among two- or three-unit associations, I see more instances involving derivative claims, be- cause it just becomes a standoff situation. I think that just boils down to the housing options that are available. “And with a lack of formal manage- ment company, you have issues with in- formal operation, and people paying bills as they come in, rather than do- ing so pursuant to a budget and assessing and collecting com- mon expenses. So, in the usually city-based small- er – i.e., under five-unit – asso- ciations, there’s more of a chance that they’ll be self-managed and need to deal with all of the hurdles that come with that.” Some managers will tell you that the aforementioned hustle and bustle of city life is no joke – and is, in fact, exhaust- ing. “It’s chaos,” says Pedro Foley, General Manager of The Courts at South Beach in Miami. “The city is chaos. That’s the only word that I can use. I live 19 miles from the association at which I work. It takes me two hours to get here, each way. And the working environment is non-stop. I’ll get in at 9 a.m. and sometimes won’t have the opportunity to sit down at my desk until 1 p.m. By the time I get home at 7, my kid is near ready to go to sleep, as is my wife, who works for an international company. It really affects quality of life. In other places you still have daylight when you get out of work; you have time for this or that.” Of course, Foley isn’t saying that city life is all bad. “You encounter all walks of life, which I enjoy,” he notes. “I have Jewish resi- dents, Russians, Germans… everyone from around the world living here. That diversity factor. And the money is good! I’m not go- ing to get paid the salary I get paid here outside of the city. Everything has its cost. You want more money, you sacrifice your family time; you want to be home more, you get less money.” Common Bonds Of course, given the nature of the com- munity association – neighbors investing in a larger residence, and an elected board tasked with making decisions on behalf of the collective – there are plenty of similari- ties regardless of where different associa- tions lie. “The fiduciary duties and fiscal respon- sibilities of a board anywhere are exactly the same, whether you’re talking about 5th Avenue in Manhattan or Main Street U.S.A.,” says Ronald A. Sher, a partner with the law firm of Himmelfarb & Sher in White Plains, New York. “The board’s com- mitment toward the betterment of its prop- erty and residents is a constant.” So for better or worse – and excluding weather, which is its own challenge some- times – there is no fabled town where run- ning a community association is a cake- walk, just as there is no specific enclave wherein maintaining a residence is neces- sarily a hell. A board’s priorities must be a constant, regardless of its surroundings. To what the board may need react may de- pend on location, but its motivation should be to protect and improve upon the invest- ment of the community. n Mike Odenthal is a staff writer/reporter with The New Jersey Cooperator. “On one hand, the ur- ban associations are more inclined to solicit legal advice, but on the other, they’re more likely to put that advice under a micro- scope.” — David Ramsey