Eric Koehler, Vice President of Falcon Drone Services and Fran McGovern from McGovern Legal Services along with Access Property Management presented the benefits of using drones in community associations on Wednesday April 12. The demonstration was open to both board members and property managers in the Hills Communities. All were excited to see how the new technology worked. The presentation provided a demonstration of the drone in use. All participants were encouraged to provide comments and questions.

Highlights of Drone Technology

Eric Koehler explained that drones are amazing pieces of technology. They allow community associations the ability to survey their communities in a cost effective way. A drone makes it easier to survey roofing projects, check gutters, and examine roads among other things. The technology of the drone allows for a more effective and efficient way of viewing the community. This technology allows the property manager, contractors, and board members to review the video on their own time.

Privacy is Important

A privacy oriented homeowner may have questions about drone usage. The community association treats the footage collected like any other site inspection or photograph that is taken while on site. All information collected would not be distributed or made public. Fran McGovern explained the legal aspect of using drones, expressing that it is important that homeowners are notified prior to the usage of drones, just as they would be during any other project. Continual updates from the community manager will provide homeowners with the times and dates of all activity.

Community associations are also very interested in keeping their interests safe and secure. The association must be sure that it maintains the rights to all data that is collected when using the drone. In addition, the association will ensure that the drone operator retains the proper insurance to indemnify and hold the association harmless like any other vendor.

The popularity of drones is increasing. As the technology advances, community associations can grow along side of it by adopting smart usage policies and encouraging a safer, more cost effective way to survey their community.

In these tough economic times, it seems no association is immune to the burden of vacant units. While failure to pay assessments is the most obvious problem, vacant units can introduce a host of other problems from squatters to burst pipes. While there is no quick fix or magic formula to correct the scourge of vacant units, there are steps that every association can take to ease and even eliminate the financial and maintenance burden vacant units can create.

If the association is willing to rent units, often the best option is to contact the owner of a vacant unit to see if they would consider signing a quitclaim deed or a rental agreement. A quitclaim deed transfers ownership of the unit to the association, subject to any mortgage or other liens on the property. A quitclaim deed offers two enormous benefits. First, the association can rent the unit and begin recouping the arrears that have been accumulating. Second, the association can monitor and control the unit and ensure that it does not become a health and safety hazard in the community. A rental agreement provides the association with the authority to rent the unit on behalf of the landlord and collect the rents. It offers many of the same benefits as a quitclaim deed, but without the permanency of actually transferring ownership. In either case, the association should ensure that the unit is in rentable condition – or can be made rentable for a reasonable cost – prior to entering into any agreements.

In New Jersey, a mortgagee who takes possession of a unit is responsible for pay ongoing assessments throughout its possession. If a mortgagee has taken possession of a unit, the association can pursue the mortgagee directly for unpaid assessments. It is a fact sensitive inquiry as to when a mortgagee has taken possession. Whenever it appears that a mortgagee has become involved with a unit, it is best to contact the association’s attorney to determine what options the association may have.

Beyond collections, vacant units also can create nuisances and even health and safety hazards. N.J.S.A. 46:10B-51 requires foreclosing mortgagees to maintain vacant and abandoned properties. While the mortgagee does not have to keep a property in pristine condition, it is responsible to ensure that the property does not become a nuisance or violate any state or local code. If a vacant unit is in disrepair, the association can demand that the mortgagee make the necessary repairs and, if it fails to do so, notify code enforcement who should then force the mortgagee to make necessary repairs and perform necessary maintenance.

Lastly, with the temperature continuing to drop, associations may be forced to take some maintenance and repairs into their own hands. If a vacant property has not been winterized by the mortgagee, every association with attached units should hire a plumber to winterize any vacant units. Pursuant to the Condominium Act, N.J.S.A. 46:8B-15(b), an association has the right to enter a unit during reasonable houses “to perform emergency repairs necessary to prevent damage to common elements or to any other unit or units.” Therefore, the association may step in to winterize properties in order to prevent the extensive damage that can be caused by a burst pipe. The association can also bill back the costs of the repairs to the unit owner. While this may seem like an added cost to the association, the cost of winterization is minimal compared to the costs of repairing the area surrounding a burst pipe, not to mention the inconvenience to the surrounding units. This same logic can be applied to other unit owner responsibilities, like a broken window or door. Keeping vacant units secure is the best way to protect the entire association and to prevent much greater costs down the road.

While vacant units are never welcome, they can be controlled and even become income generating assets if the association is proactive.

Why isn’t the pool open? What am I paying my assessments for anyway!?

The Fourth of July is a little less than 100 days away.  Memorial Day, a little less than 60 days away.  The Coronavirus crisis continues.  Why are we talking about the pool now?

Some contracts are already in place.  What do we do with them?  Should we modify?  Should we cancel?  Should we breach? Will we be sued?  What will the damages be?

Pool vendors want contacts signed now.  Understandably pool vendors want to plan their season, staffing and financials.

Memories are short.  As every property manager and board member knows, memories are short.  Even after a national crisis, manager and board member appreciation cannot be expected.  Why isn’t the pool open again?

Pool Demand: We May Want the Pool Open at Some Point. People have been shut in their homes for weeks and will likely be shut in their homes for weeks to come.  If the coronavirus crisis abates, residents will want to use the pool immediately.  Pool vendors may not be able to get pools open in a timely manner.

Pools require maintenance anyway. 

Pool contractors have an interest in making money and keeping their employees working.  While allowing for their self-interest, some pool experts recommend opening, operating at a minimum level and closing even if the pool is never open to swimmers in 2020 (the “No Swimming Option”).

Reasons cited include:

-pools that are not maintained can become a breeding ground for mosquitos and other pests,

-pools that are not opened and maintained become swamps and will take longer to open,

-equipment works better when it is runs rather than when it idles for more than a year and a half,

-last year’s winterization may only be good for last year: plugs may have fallen out, lines may have filled with water, chemicals may have dissipated. The pool should be winterized again.

So?  Communicate the conundrum to your residents.  Attempt to understand consensus.  Do not underestimate the value of relationships.  Pool vendors want to work with you and with your management company.  You should want to work with them.  My experience has been that there is not an overabundance of good pool vendors.

Be optimistic about the coming pool season.   The Associations and the vendors should consider their BATNAs.  What’s the best alternative to a negotiated agreement?  Fighting is a lose-lose.  Incorporate a No Swimming Option in agreements.  Although I strongly prefer guarded pools, under certain circumstances, Association pools may go without guards anyway.  Estimate damages in case of breach.  Damages are often far less than the contract price and may justify the No Swimming Option anyway.  Negotiate a discount for prepayment – vendor cashflow is key to many or, negotiate a longer payment period – association cashflow is key to many. Regardless, the coronavirus crisis will pass, and Association management, counsel and pool vendors should be able to reach accommodations acceptable to all.

The above information is not legal advice and shall not create an attorney-client relationship.  This information is general and may not be applicable to your particular circumstances.  You should review your particular circumstances with Association counsel.