Recent Blog Posts

    • Nassau County Homeowners Association Fails in its Attempt to Stop Wireless Network Company From Installing Equipment on Existing Utility Poles in the Public Right of Way The Merrick Gables Homeowners Association's federal lawsuit against both a wireless and technology company, and the Town of Hempstead, was dismissed recently.  The association challenged the company's installation of DAS (digital antenna system) equipment on existing utility poles in the public right of way under an agreement with the Town of Hempstead.  The association claimed the network had caused property values to drop because of the perceived health risks of radio frequency (RF) emissions associated with the DAS equipment. The suit also alleged that the DAS installations amounted to a "nuisance" and an unconstitutional "taking" of their property and that Hempstead was negligent in allowing the deployment.  In defending itself, NextG Networks argued that there exists an overriding public policy promoting the deployment of broadband, competitive wireless networks such as NextG's DAS networks, which enable wireless carriers to add greater coverage ....
    • Stark & Stark Shareholder Presents Seminar on New Jersey's Community Associations, Solar Energy and Legal Issues David J. Byrne, Shareholder and Co-Chairperson of Stark & Stark's Community Association Group presented materials related to legal issues connected with community associations and solar energy, during a seminar entitled "Community Associations, Solar Energy & Legal Issues".   The presentation was part of Wentworth Property Management's Solar Symposium, held at the Renaissance @ Manchester Association on February 18, 2010.  Mr. Byrne focused his presentation on the rights and limitations of boards in relation to solar power.  He discussed the fiduciary duties of community associations, the interpretations of restrictive covenants and the enforcement of rules, all in connection with solar power.   You can download the full presentation online here. (13.4 MB) ....
    • HAFA - Will Short Sales Be the Trick to Stop the Foreclosure Flood? Realizing that the "fixes" put in place by the federal Home Affordable Modification Program ("HAMP") have been an abysmal failure, the Obama Administration and the Treasury Department have reached for a new arrow in their quiver. Beginning April 5, 2010 the new Home Affordable Foreclosure Alternative program ("HAFA") will attempt to assist hundreds of thousands of the delinquent homeowners who could not be rescued under the HAMP program by allowing them to shed their homes through the short sale process.    Traditionally, a short sale is when the proceeds from the sale of a home are insufficient to fully pay off all outstanding debts and encumbrances recorded against the property.  In these situations, the selling homeowners can either bring funds to the closing to make up the difference, or obtain approval from their mortgage lenders to accept a reduced amount to satisfy their outstanding loans.     Under HAFA, the lender must ....
    • Helping and Protecting Condominiums Deal With the New Lending-Related Rules of the Federal Housing Administration (FHA) The FHA insures loans made by FHA-approved lenders all across the country.  In fact, 30% of all mortgages in the United States are insured by the FHA.  The availability of this insurance enables lenders to make loans and extend credit to a broader class of borrower, allowing owners within a condominium to market their homes to more potential buyers.  The FHA will insure only certain loans - those that meet FHA requirements.  As of February 1, 2010, the FHA may insure loans made with respect to condominiums only in condominiums that have been certified by the FHA.  These new rules do not relate to homeowners associations.  Condominiums that are currently certified must be recertified every two (2) years.  The new FHA rules apply to condominiums in New Jersey, New York, Pennsylvania together with all of the other 47 states.   FHA certification will likely make the sale and purchase of homes within a condominium easier.  There are arguments ....
    • Stark & Stark Shareholder Presents Seminar on condominiums and the new guidelines of the FHA, Fannie Mae and Freddie Mac David J. Byrne, Shareholder and Co-Chairperson of Stark & Stark's Community Association Group presented materials related to lending-related guidelines and condominiums, during a seminar entitled "FHA, Fannie Mae & Freddie Mac:  New Guidelines Impacting Your Association".    The presentation was made to the Pennsylvania and Delaware Valley Chapter of the Community Association Institute on February 18, 2010, in Mt. Laurel, New Jersey.  Mr. Byrne focused his presentation on the new guidelines issues by the Federal Housing Administration ("FHA"), the Federal National Mortgage Agency ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac") in relation to loans made in condominiums.  He explained the new guidelines, outlined the eligibility rules and discussed the requirements connected with FHA, Fannie Mae and Freddi Mac lending.   You can download the full presentation online here. (26.8 MB) ....
    • Proposed Law would Force Condominium Boards to Take the Lowest Bid A law pending in the New Jersey State Assembly would, if adopted, regulate condominium and homeowner association's hiring of vendors and would also address how to deal with potential conflicts of interest.  Assemblyman Peter Biondi introduced a bill in January 2010 in which he stated that with the quasi governmental powers provided to associations should come standards of "fairness and due process."  The bill provides that associations should be held to similar standards of transparency and fairness. As to the bidding requirements, Assemblyman Biondi is proposing to enact rules which would force associations to:   Obtain three quotes for any contract for services or materials whenever the amount payable by the association is over $10,000 in any 12 month period. Use sealed bids with required specifications , to be opened only a publicly announced meeting for any contract that exceeds $25,000. Award all contracts to the vendor that provided the lowest quote or ....
    • Condos VS Co-Ops: What's the Difference? People commonly think of home ownership in the form of owning a single family house situated on its own parcel of land.  However, increasingly, condominiums, and to a lesser extent, co-operatives, are providing  alternative forms of home ownership.  What are these forms of ownership and what is the difference between them? In New Jersey, condominium ownership is no longer unusual.  It is a form of common ownership in which title to individual units vests in each unit’s owner.  In addition, each unit owner also owns a percentage interest in the common areas which are shared by the unit owners, e.g.,  the land, building exteriors and any facilities for the unit owners’ common use.  Descriptions of both the individual units as well as the common areas are set forth in a Master Deed which is recorded in the County Clerk’s Office in the county where the condominium is situated.  Thus, condo owners own their unit plus a percentage ....
    • Community Association Managers to Require Certification? Community Association Property Managers ("CAPM") are much different than their "property manager" brethren.  In general, real estate property managers are responsible for ensuring that the apartment or condo building that they are charged with is functioning properly, much like a superintendent.  CAPM's on the other hand are fiduciaries of the properties that they manage.  They act on behalf of the Board on a myriad of issues.  They are the first line of defense and in some cases are the face of the community.  CAPM's contact, interview and bid contractors.   They enter into contracts on behalf of the Association.  They are responsible for the Association's finances, from tracking delinquent owners to paying vendors.  They are sometimes thrust into the role of mediator in attempting to settle homeowner disputes.  They are generally responsible for guiding volunteer board members in the procedures of the Association, ....
    • New Jersey Clean Energy Program: Pay for Performance The New Jersey Clean Energy Program administered by the New Jersey Board of Public Utilities through its Office of Clean Energy offers a host of financial incentives.  Among these is the Pay for Performance Program, which is funded by the societal benefits charge authorized by the New Jersey Electric Discount and Energy Competition Act.  Under this program, a qualifying utility customer may receive up to 50% of the total cost of energy-efficient measures recommended by an energy efficiency expert, also known as a program “partner,” who the customer selects from a pre-approved list, provided that the implementation of such measures will achieve an energy savings of at least 15%.  A customer participating in the Pay for Performance Program may also receive funds to offset the cost of the program partner’s services at a rate of $0.10 per square foot up to a maximum of $50,000 or 50% of the annual energy cost of the building or facility that is the subject ....
    • Prohibitions Against Solar Collectors May Be Prohibited in Your Community It is common knowledge that exterior modifications in a community association must be approved by the board of trustees.  Right?  Well, except for certain satellite dish antennas which, by federal law, can be installed on exclusive use areas without pre-approval (Over the Air Reception Devices, (OTARD), 47 C.F.R. Section 1.4000),  and United States flags and certain signs of troop support (such as yellow ribbons) all of which may be displayed as long as there is no threat to public safety, necessary maintenance activities can be performed and the property rights of others are not impaired (Planned Real Estate Development Full Disclosure Act (PREDFDA), N.J.S.A. 45:22A-48.1 This New Jersey law also states that flags can be prohibited if they are displayed in a manner inconsistent with the federal flag Code or other laws or guidelines. ).  There is another notable exception to that “common knowledge”: solar collectors.  Effective August 2007, New ....
    • The Residential Real Estate Market Sees A Reduction in Both Foreclosures and New Construction As we all know, New Jersey continues to be plagued by both a troubled real estate market and economy.  Our real estate market remains awash in homes either in foreclosure, or having gone through a foreclosure and subsequent sheriff's sale.   It also remains awash in unsold new construction, and an essentially non-existent new construction pipeline.  October's figures show a "mixed bag" as they say.  First, construction of new homes in the New Jersey region fell 18.8%.  This included a nearly 10% decline in the construction of single family homes.   Second, and on the other hand, for the first time in 2009, the number of residential foreclosure filings was lower than it was over the same period in October 2008.  Lenders started 4,991 foreclosures against New Jersey homeowners in October 2009, down from 5,262 during October 2008.  The October 2009 figures were also less than a height of 6,138 filings, from June 2009.   ....
    • A. Christopher Florio Installed as President of the New Jersey Chapter of the Community Association Institute Christopher Florio, Shareholder and Co-chair of Stark & Stark's Community Association Group, was recently installed as the 2010 President of the New Jersey Chapter of the Community Association Institute (CAI). Mr. Florio accepted this position at the chapter's annual retreat, held at Clearbrook Community Association, on December 16, 2009. Mr. Florio has been involved with CAI for over 17 years. Mr. Florio states, "The New Jersey chapter of CAI remains a vibrant entity under the daily leadership of Curt Macysyn, CAI's Executive Director and the stewardship of CAI's recent past-president, Jim Rademacher. I, along with our executive committee and board, intend to continue Jim's efforts of the past year into 2010, including an increase in leadership opportunities to all members who seek these positions in a responsible fashion, an increase in our chapter's member service, and a vigorous promotion of CAI NJ's legislative agenda." ....
    • Federal Law Protects Armed Services Members - What Employers Need to Know The term “blitzkrieg” became a common term on September 1, 1939 when Germany invaded Poland.  Thus, commenced the domino effect of nations falling to Germany, and America’s official position of “neutrality” coupled with the realization that its military was no match against the axis nations.  However, the American government knew  a  large  amount of manpower was going to be necessary to deal with the looming war.  Forward-thinking legislators enacted the “Selective Training and Service Act of 1940" , commonly referred to as “STSA”, which was the first Federal attempt to clarify laws relating to the re-employment rights of service members.  As millions of men would ultimately be affected as a result of serving during World War II, the STSA provided returning service members with certain re-employment rights.  However, changing times required the law be updated.  In 1974, Congress passed ....
    • Well... Everyone Knows It: The Testimony of a Mold Expert Everyone knows that humans only use 10% of their brains (not true, unless you mistakenly voted for Pat Buchanan in 2000), that Christopher Columbus called Native Americans "Indians" because he thought he landed in India (not possible, that part of the world was called Hindustan at the time) and that being cold will ensure that you actually catch a cold (also not true, sorry Mom).  So when you hear people say that they know mold causes serious personal injuries, you know it has to be true because common knowledge (as well as Dateline and 60 Minutes) tells us so.  Everyone has heard that a couple in Texas got $32 million dollars because their house was filled with so much mold they had to burn it down.  You likely didn't know that the money was paid by their insurance company for acting in bad faith and deceptively failing to cover their claim for property damage, not because they were physically damaged by mold exposure.  Read closely the articles about ....
    • Pending Federal Regulations and the Residential Mortgage Market On Jun 12, 2009, the Federal Housing Administration ("FHA") announced a new, stricter approval process for condominiums to be eligible for FHA financing.  Condominiums, and their managing agents and attorneys, must be aware of the mortgage market and how tightened underwriting standards will affect association operations and property values.  Recent studies show that the FHA alone currently insures approximately 23% of all new mortgage transactions.  It is believed that the FHA, Fannie Mae, Freddie Mac, the Veterans Administration and the Department of Housing and Urban Development account for 90% of the mortgage market.   Under the proposed regulations, all condominiums previously approved for FHA financing would have to be reapproved or FHA financing would not be available.   Some of the proposed regulations are as follows: Projects consisting of three (3) or fewer units will no more than one (1) unit encumbered with FHA insurance.  ....
    • Stark & Stark Shareholder Presents Seminar on New Jersey's Community Associations and Foreclosures David J. Byrne, Shareholder and Co-Chairperson of Stark & Stark's Community Association Group presented materials related to foreclosures, rent receivers and mortgage foreclosures, during a seminar entitled New Jersey's Community Associations and Foreclosures.  The presentation was held at the New Jersey Exposition Center in Edison, New Jersey on Saturday, November 14, 2009.    Mr. Byrne focused his presentation on when New Jersey's community associations should file their own foreclosures, and how those foreclosures are prosecuted.  He discussed community association rent receiverships, and how they serve to aggressively and creatively aid a community association in its collection of unpaid assessments.  Mr.  Byrne also discussed how community association should be handling and protecting themselves in the face of mortgage foreclosures.   You can listen to the full presentation online here.  ....
    • Stark & Stark Shareholders Present Collections Seminar on New Jersey's Community Associations A. Christopher Florio, Shareholder and Co-Chairperson of Stark & Stark's Community Association Group, and David J. Byrne, Shareholder and Co-Chairperson of Stark & Stark's Community Association Group, presented materials related to community association foreclosures, rent receivers and mortgage foreclosures, along with money judgment collection actions and asset executions, during a seminar entitled "Protecting Associations & Improving Collection Efforts in a Difficult Real Estate Market & Challenging Economy", held November 11, 2009.    Mr. Florio and Mr. Byrne focused their presentation on when New Jersey's community associations should file their own foreclosures, and how those foreclosures are prosecuted and managed.  They discussed community association rent receiverships, and how they serve to aggressively and creatively aid a community association in its collection of unpaid assessments.  They also discussed how community ....
    • Cape May Homeowners Sue Over Change in Campground Rule A group of homeowners in the Carol Lynn Resorts campground have sued the property owners, the State of New Jersey and Woodbine Borough over alleged changes to the park rules and regulations.  The owners allege that the owners of the campground have recently changed the rules that call into question whether or not they can use the facility as a year round residence rather than a seasonal vacation spot. The owner of the property denies any such change to the rules and regulations and claims that even though the Department of Community Affairs grand fathered many of the residents in, and permitted them to live year round in the facility, and the borough approved an ordinance also permitting residents to live year-round in the facility, some homeowners were not satisfied.    The dispute seems to stem from an interpretation of documents, although in the opinion of the property owner, there is no ambiguity and no resident will be asked to leave.  It seems as if in this ....
    • More New Jersey Shore Towns to Require Annual Rental Licenses In an effort to protect beach going summer renters, owners in several New Jersey beach towns, such as Stone Harbor, will be required to obtain a renter’s licenses in order to in order to legally rent their units. The license will include, among other things, registration with the local municipality and a fire inspection.  The inspections will have to be conducted each year, at the cost of the owner, in order to maintain compliance with the law and avoid costly fines.  The program in Stone Harbor, for example, begins for the 2010 rental season, if it passes through an upcoming council vote.   If a unit fails inspection, it cannot be occupied until it passes. If it’s already occupied at the time of inspection, then the owner has 30 days from that time to make repairs or corrections. An owner of a rental may get another five days to make repairs after re-inspection within the 30-day period.  Of interest to condominium owners who rent their units, each condo ....
    • Stark & Stark Attorney Presents Seminar at the Community Association Institute's Senior Summit Richard B. Linderman, member of Stark & Stark's Community Association group presented materials related to Active Adult and "Over 55" communities in New Jersey and Pennsylvania, during the Community Association Institute's Senior Summit held on August 11, 2009.  Mr. Linderman took questions and addressed concerns from owners and managers regarding issues and hot topics affecting Active Adult and senior associations.  Mr. Linderman spoke on issues ranging from how best to financially protect these communities, to dealing with problem owners, to providing advice on how board members can help carry out their duties and obligations. ....
    More