Condo Association Management Blog

For us, all assessments are proportioned by percentage of ownership. Perhaps they like lawsuits?????? Sounds like they're asking for another one.

I agree with the previous post. It does sound like they are indeed asking for another lawsuit.

If you will check the New Jersey Condominium Act as well as your by laws I believe you';ll find that the Board is in violation of both. All mionies collected must be on a proportional basis.Assessing flat fees is a violation of your state law. A certified returmn receipt letter to your board is in order citing the provisions in each document that apply

I am curious about your insurance at the time. Did the board of directors forget to purchase the correct insurance? Did the Property manager not purchase the correct insurance? Who is responsible for not purchasing the correct insurance. I know some management companies want to get cheaper insurance and charge the condos for the better insurance so check to see who made the mistake and possibly you won't have to pay any of this in an assessment. Sometimes, rather than assess everyone who lives there, maybe the board or the management company should be sued for that amount instead if they made a mistake not purchasing the right insurance. Where your bylaws not followed and that is the reason you do not have the correct insurance? If someone on the board purchased the wrong type of insurance or a property manager did so, then they should be paying out the $60,000. Can you clarify for me what occurred when this person was terminated? Was it just a person or a management company? I live in N.J. also and I am very curious about how this ended in favor of the terminated employee. Thank you and I also think those 3 condo owners should pay their fair share if your bylaws are saying they should in a case like this one. I would love to know more details. I can understand someone thinking that it was a wrongful termination and why should the larger condos pay more but if the bylaws says so, then that is what has to be done. Also check the N.J. Condo Law and see what they say as the N.J. Condo Law may supercede the bylaws but honestly, I am not positive.

Your CCRs should have an article on assessments and special assessments which should state how the monies are to be collected from the members. If the CCRs say ALL monies collected are to be proportioned by % of ownership then that is how this special assessment must be collected. However, if the CCRs are silent on how special assessments are to be collected then IMO the board can do as they feel is in the best interests of the assn and its members. However, since your assessments are proportioned then I would think any special assessments should also be collected in the same manner.

In case of conflict between the bylaws and the New Jersey State Condominium Act I believe the State law takes precedence. This if there is no mention of how assessments are to be charged to unit owners in bylaws the provisions in the state law on that issue prevail. Look at the NJ State CFondo Act for this directive.

This is a 42 unit condo complex. One of the buildings includes four units. Due to drainage problems known to the association for the past 5 years, but never corrected, the drain failed during a massive snowstorm and all four units suffered extensive damage to their finished basements. The association fixed the basements and intends to assess each unit owner to replace the +$20,000 taken from the reserves, which is in compliance with CT law and does not exceed 15% of the annual budget. The outdoor drain is in the common area, and that needs to be repaired but the board isn't planning on fixing it before next year. Shouldn't the drain problem have been fixed before repairing the basements, and is it legal to assess the unit owners twice for the same problem especially since it affected the common area and the problem is likely to occur again? Thank you.