Pending legislation could make homeowners associations act more like municipalities.
By: Elaine Worden
A state Senate bill introduced in November could mean homeowners associations in Monroe’s retirement communities would have to act more like municipal governing bodies.
According to the bill, introduced by Sen. Shirley K. Turner, D-15th, the changes would "require that democratic principles be followed by the governing board of a homeowners association in all association matters including, but not limited to, elections, access to records, open meetings, formation of rules and alternative dispute resolution."
The bill calls for enforcement by the Department of Community Affairs.
The bill says these changes are needed to provide for "transparent" government. It also establishes that a homeowners association is "subject to the political jurisdiction of a municipality, regardless of any bylaws to the contrary."
The bill, known as the Common Interest Community and Homeowner’s Association Act, would be an amendment to the Condominium Act, which recognizes condo communities as corporate associations. Common interest communities include townhouses, cooperatives and planned unit developments in addition to condos.
According to the bill, there have been documented instances of unfair or corrupt election practices among associations. While the DCA can intervene in such instances, the bill says that better enforcement methods are needed, because "without such tools, in order to enforce the statutes homeowners must obtain private counsel and litigate against their board, while continuing to pay the board’s attorney through the common monthly maintenance fees."
Currently, the bylaws and rules of these communities can be difficult to change due to "the number of votes necessary under the bylaws."
Elections would be monitored by the commissioner of Community Affairs, and conducted by a panel of noncandidate residents, according to the bill. Also, property managers who are hired by an incumbent board would not be allowed to run in elections.
During a meeting of the Monroe chapter of the National Association of Retired and Federal Employees on Tuesday afternoon at the Monroe Municipal Building, residents from out-of-town developments said the changes were needed.
Margaret Bar-Akiva, president of the Common Interest Homeowners Association, said current rules governing homeowners associations allow for an infringement of the basic rights of homeowners.
Ms. Bar-Akiva, a resident of Twin Rivers in East Windsor, compared homeowners associations to "little dictatorships within our own society."
"Applying the corporate business model has proven to be deeply flawed because it is excluded from state scrutiny," said Ms. Bar-Akiva said.
She also said many residents don’t know what is going on when their communities’ boards meet.
Assemblywoman Linda Greenstein, whose district includes Monroe, said she is not sure if she will support the bill, or present one of her own. She said she wants to find a middle ground that would satisfy the needs of everyone.
"This is the kind of thing you’re going to need a compromise to make it happen," Ms. Greenstein said.
Ms. Greenstein said some boards see themselves as more of a social group, ignoring complaints submitted by owners and neglecting to clarify and implement laws.
"Right now the DCA has limited powers to intervene," she said.
Nan Coll, a Greenbriar II resident in Brick, said she has had problems with her own community’s association.
Ms. Coll said she had been on her homeowners board, but was removed without due process. She also said her board would not allow comments on the floor, and that there had been problems with budgets, among other things.
"People are intimidated, apathetic, or have no idea what their rights are," she said.
Mr. Salerno said the same protections a resident might have received in a municipality do not exist in a deed-restricted community.
"Most people in our communities are living a nice, complacent life, and until a personal problem arises, they don’t care," said Mr. Salerno.

