Thomas C. Martin, Esq.
Nowell Amoroso Klein Bierman, P.A., Chair, CAI-NJ Legislative Action Committee
When in doubt – disclose.
That is the watchword these days. We often hear about wanting more “transparency” and “disclosure” in government, financial institutions, campaign donors and the like. Regarding our common ownership interest associations, we are working with the legislators in Trenton to help form a bill that will help provide guidance to our community association volunteer leaders.
For example, in the past there have been too many horror stories in the media lately telling tales of woe involving overpayments or other such problems stemming from a vendor which may not have been adequately up to the given task. During substantial investigation it comes to light the vendor was not at all qualified but was either related to a Board member or had other substantial business dealings with a Board member. All too often, such cozy relationships are intentionally concealed from the decision makers.
Disclosure of the relationship and non-participation by the “interested” Board member is a critical piece of information the full Board should have in making its decisions. We all know it is too much to say every single vendor who knows a Board member is automatically unqualified. Such a legislative response would seem to be overreaching. These decisions should remain strictly up to the sound discretion of the Board. What our proposal seeks to accomplish is a mandate for disclosure with effective “teeth,” so to speak, which requires disclosure of information to the Board. In addition to disclosure, the proposal would require that the interested Board member be recused from the vote of the full Board.
It may very well be the lowest responsible bidder has some sort of relationship with a member of the Board. As long as that relationship is disclosed and the interested Board member does not participate in the vote, then the full Board can make an informed decision.
In addition to taking a proactive stance for our common ownership interest associations, we are also closely monitoring additional legislation related to some proposed amendments to the Municipal Services Act regarding reimbursement to associations.
On top of the work in Trenton, we are also closely watching trends on the federal level in Washington, D.C. which can affect our associations. Certain federal mortgage, lending and foreclosure issues pending in Washington can have an effect on the membership as well.
Finally, there is a movement afoot in Trenton to foist additional costs on to Associations as it relates to fees for certain real estate transactions. One of our most important goals at the Legislative Action Committee of the Community Associations Institute is to keep state levied fees and costs down for our membership as much as possible. We are opposed to such rules and laws which unfairly seek to impose new burdens on our membership.
Lastly, in the interests of full disclosure, baseball season starts soon. Time to spend your snow plowing budget on flowers (as long as it is fully disclosed).
