I hope you and your family had a nice weekend despite the social distancing. I write to follow up on my April 10th e-mail. This morning the Senate met virtually and tabled S2330. You may read the bill by clicking here: https://www.njleg.state.nj.us/2020/Bills/S2500/2330_I1.PDF. A3908 is currently identical. My understanding is that, when the Assembly meets this afternoon, it will table A3908.
Thank you to everyone who reached out to their Senators and Assembly Members and voiced concern on these bills. They could cripple Condo. Co-Op and HOA cash flow.
The fact that these bills are tabled for the moment however does not mean that we should rest. Versions of these bills will likely resurface shortly.
If you have not done so already, please reach out to your State Senator and Assembly Members and voice your concerns. Contact information for State Senators and Assembly Members may be found here: https://www.njleg.state.nj.us/members/legsearch.asp
I have written the following: “Dear Senator and Assembly Members: Please revisit the above bill and either exempt or make specific provision for collection of Condo, Co-op and HOA assessments. These Associations are financed on zero-based budgets. There is no profit built in. The annual expenses are distributed among the members. If the assessments are not collected, the Associations will not have the funds to pay their expenses.”
I cited the below as language some associations are using when considering forbearance requests:
• Arrearage will accrue for May and June 2020’s assessments (the “Accrued Assessments”).
• Late fees will accrue for May and June 2020’s assessments (the “Accrued Assessment Late Fees”).
• Membership rights will not be suspended for failure to timely pay May and June 2020’s assessments so long as they are paid as provided for in this agreement.
• Unit Owner must timely pay all Association obligations arising on July 1, 2020 and thereafter beginning on July 1, 2020 and thereafter.
• Unit Owner must also pay Accrued Assessments in six equal payments beginning on July 1, 2020 and on the first day of each month thereafter until all Accrued Assessments are paid in full.
• So long as the Accrued Assessments are timely paid in six equal payments beginning on July 1, 2020 and on the first day of each month thereafter and all Association obligations that arose on July 1, 2020 and thereafter are timely paid in full, the Association will waive Accrued Assessment Late Fees;
• So long as this agreement is timely complied with, the Association will forebear from collection action with respect to the Accrued Assessments.
• So long as the Accrued Assessments are timely paid in six equal payments beginning on July 1, 2020 and on the first day of each month thereafter and all Association obligations that arose on July 1, 2020 and thereafter are timely paid, the Association will take no legal action with respect to the Accrued Assessments.
I noted that Associations are addressing forbearance agreements depending on their populations and financial positions. So, for example, certain Associations are forbearing for May and June while others may be forbearing for longer.
I advised that, although we may or may not represent an Association in their District, the Associations in their district work hard to keep the Associations on sound financial footing. I suggested that the Legislators contact the President of one of the Associations in their district for feedback.
Again, please reach out to your State Senators and Assembly Members. Emphasize the great work that you do, emphasize that your Association is showing flexibility via forbearance agreements (if true) and emphasize that, though perhaps well-intentioned, hampering Associations’ ability to collect will do more harm than good. Thank you.