James Magid, CMCA, LSM, PCAM – Wentworth Property Management Corp., AAMC
Chair, CAI-NJ Legislative Action Committee
While the Statehouse was relatively quiet leading up to the primary election on June 4th, the Chapter took advantage of the down time to meet with leadership at the Department of Community Affairs. On May 14, 2013, our lobbyists and I met with Deputy Commissioner Richman and Steve Denenholtz, Bureau Chief, Homeowner Protection, to discuss ways in which the Chapter can serve as a resource to the Department and vice versa. Several topics came up during the meeting, including Manager Licensing, dissemination of critical information from the Department to Community Association Volunteer Leaders, Managers and industry professionals, as well as Sandy Recovery and the ages old 5-year inspections. The discussions were extremely positive with the promise of continued collaboration moving forward. A meeting will be scheduled with Ed Tomkiewicz, Acting Chief, Bureau of Code Enforcement, on 5-year inspections and Adam Robinson, also with the Department, will be reviewing the Manager Licensing bill language for the Department.
The Manager Licensing bill continues its journey through the New Jersey Senate. Our lobbyists met with Senator Nia Gill (D-34th District), Chair of the Senate Commerce Committee, where the bill was assigned for consideration, and we are cautiously optimistic that the bill will be heard in that Committee before the summer recess. In addition to meetings with the members of the Senate Commerce Committee, we sought and received the support of Senator Joseph Kyrillos (R-13th District) on the bill in early June, and Senator Jeff Van Drew (D-1st District), prime sponsor on the bill, remains committed to its passage. Senator Gill, along with the Vice Chair of Senate Commerce Committee, Senator Ray Lesniak (D-20th District), faces a tough primary battle. We will report on the results of the election in the July 2013 Legislative Update.
At the national level, CAI has learned that the Federal Housing Administration (FHA) has determined a common restriction on transient leasing in condominium association covenants, conditions and restrictions (CC&Rs) violates Section 513 of the National Housing Act, which strictly prohibits the use of FHA mortgage insurance. Many condominium association governing documents restrict leasing of units for hotel or transient purposes, normally defined as a lease with a term of less than 30 days. It is also common for condominium CC&Rs to provide an exception to the transient leasing prohibition for lenders taking possession of a unit as a result of foreclosure. In order to determine the full impact of the FHA’s ruling on transient leasing exception, CAI national is conducting a survey of members. The survey will catalogue the number of condominium associations that permit lenders to lease units on a less than 30-day term as well as identify the geographic locations of affected condominiums. This information will be critical in determining next steps, which includes outreach to Congress. Watch for the survey link in future issues of Community Trends®, Community Trending (CAI-NJ’s electronic weekly newsletter), and on the CAI-NJ website.
