What's New in the Law
Recent Topics of Interest in the Law
UCIOA
The Uniform Common Interest Ownership Act ("UCIOA") is pending before the New Jersey Legislature and would, if adopted, replace the Condominium Act. It would also, for the first time, place all other forms of community associations on an equal statutory plane with condominiums. It is an 80-page bill with numerous benefits to associations and homeowners. Some of the major benefits are:

1.  UCIOA provides a uniform approach for all community associations that will result in a clearer understanding of both statutory law and case law, since judicial interpretations will, in most instances, be equally applicable to all associations.

2.  UCIOA contains numerous "default" provisions that fill gaps left by incomplete or ambiguous governing documents, and allows for the creation of simpler governing documents that then rely on UCIOA's provisions without repeating them in endless technical verbiage.

3.  UCIOA contains the first statutory outline for transition and encourages early transition in multi-phased projects.

4.  UCIOA contains an "assignment-of-rents" provision that will reduce collection costs to associations where investor owners fail to pay common expense fees for leased units.

5.  UCIOA provides a clear statement concerning the responsibility of lenders and successor developers for the defects created by a failed developer.

6.  UCIOA contains explicit provisions defining the responsibility of associations and unit owners for maintenance, repair, and replacement of common elements, limited common elements and units.

7.  UCIOA requires the issuance of a "resale certificate" that will inform resale purchasers of their obligations and responsibilities concerning community association living and will alert them to the rules and regulations of the community in addition to other matters.

8.  UCIOA exempts unit owners from personal liability for any judgment arising out of the condition or use of the common elements.

9.  UCIOA resolves the ambiguity and uncertainty of current law concerning alternative dispute resolution by providing a statutory mandate in favor of mediation of disputes that truly concern community-association living.

10.  UCIOA clearly defines the powers of associations in a manner that balances the need for clear statutory authority for governing board actions with protections for individual homeowners.

The New Jersey Chapter of CAI hopes to move the UCIOA through the legislature during the 2006 session. If you would like additional information concerning UCIOA, or would like us to e-mail you a copy of the bill, please click here and fill out our electronic feedback form and we will be pleased to contact you.

[Back to Top]
Hotel and Multiple Dwelling Inspections
Currently, many associations are subject to "5-year inspections" by the Department of Community Affairs, at a substantial cost to the association. Under current law, associations may be liable for unit code deficiencies, which can be almost impossible to administer. The proposed regulations to N.J.A.C. 5:10-1.4 would limit the inspection of the unit interiors to certain areas such as smoke detectors, electrical wiring, fire rating of entry doors, plumbing defects affecting other units and grout defects affecting other units. In addition, the firewall exemption would be satisfied by following a defined procedure. This would be important to older associations that were constructed with fire walls that may not necessarily comply with the current building codes. This Amendment would codify an informal understanding between the DCA and the Community Associations Institute. If you are currently subject to an inspection and would like to learn more about the "unwritten understanding," click  here and fill out our electronic feedback form and we will be pleased to contact you to provide you more information.

[Back to Top]
Co-op Rentals
Co-op Rentals S-271, which was passed on January 19, 1998, states that rentals are to be "encouraged" and restrictions imposed by certain cooperative agreements limiting the rental liability of the holder of a proprietary lease are contrary to public policy. Certain exemptions exist to this new law and, given some ambiguity in the statute's language, there are problems in fully interpreting its impact. For a copy of this legislation, click here and fill out our electronic feedback form and we will e-mail, fax or send you a hard copy of the Act.

[Back to Top]