Thomas C. Martin, Esq.
Nowell Amoroso Klein Bierman, P.A., Chair, CAI-NJ Legislative Action Committee
The elections are over. New legislators are being seated. Outgoing legislators are leaving their posts. Nevertheless, before all that happens in Trenton we are all now experiencing a “lame duck” session of the legislature.
Depending on your perspective, at times, a lame duck legislature can be beneficial because it can allow some movement for bills which have otherwise languished during the run up to the elections. Things can also move quickly during a lame duck session. In this sense, a lot of attention must be devoted to Trenton during this transitional period of time as it relates to pending and proposed legislation.
One issue that seems to remain a constant and perpetual matter is the current mortgage crisis. Although some have predicted that real estate prices may be rebounding somewhat and feel that this may provide some “light at the end of the tunnel,” there is no way to predict any of this with certainty.
In the meantime, we are working on legislation to emphasize and expand the rights of associations to record a lien on units which are not paying maintenance fees. The failure to maintenance fees is endemic. On behalf of our membership, we continue to work to help provide more tools and more effective resources to recover these maintenance fees. It is unfair for the paying unit owners to, in essence, have to carry or subsidize the delinquent unit owners. We are also aware of some interesting pending cases across the country where associations are trying to move matters forward and foreclose with our without the mortgage lender’s cooperation. We are monitoring these legal initiatives pending in various courts as well. Hopefully, depending on the outcome of these cases, we can help convince our legislature that association unit owners need help too.
The blight of deteriorating units abandoned by unit owners and banks seemingly unwilling to foreclose is another problem. Working with Trenton, we are proposing legislation to compel the mortgage companies to maintain abandoned units. At least this way, a unit that is abandoned and in distress does not tend to draw down the value of the association as a whole – which is otherwise an unfair and unacceptable result.
New legislative initiatives are also being considered at they relate to insurance requirements for builders. We support such legislation which would help our membership have a realistic source of funds for damage to their units (whether by construction defects or a storm) and we are working with other interested parties in Trenton to draw together and bring about a coalition to try to get this law considered and passed. We feel this may be a significant assistance to our membership associations and we will continue to try to press this legislation forward.
We are also continuing with our efforts on other pending foreclosure legislation to try to streamline this overall process and bring out much needed relief for associations experiencing substantial numbers of units in arrears.
Currently, with the elections over and the rebuilding process underway, the legislature in Trenton is focused on many matters. New Jersey can and will rebuild. It will take time and a substantial amount of effort. With hard work and assistance from far and wide, we can reconstruct and rebuild. The State and Federal Governments are involved and as you know a number of politicians have recently visited New Jersey to continue to focus attention on relief efforts.
In particular at this time of the year, we continue to hope all those affected by the storm are able to rebuild and reconstruct lives as well as homes and infrastructure and we give thanks for what and who we have in our lives.
