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RECENTLY PASSED LEGISLATION AFFECTS COMMUNITY ASSOCIATION BOARD ELECTIONS AND VOTING RIGHTS

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  • August 29, 2017

RECENTLY PASSED LEGISLATION AFFECTS COMMUNITY ASSOCIATION BOARD ELECTIONS AND VOTING RIGHTS

Governor Chris Christie recently signed into law certain changes to the Planned Real Estate Development Full Disclosure Act (“PREDFDA”), pertaining to procedures for community association board elections and voting rights of members.  In part, the law provides that members of an association in good standing shall have the right to nominate themselves or other owners who are in good standing to be members of the board.  The legislation defines “good standing,” which includes those who are current on the payment of common expenses, late fees, interest on unpaid assessments, late fees, legal fees, or other charges lawfully assessed.  It contains additional language regarding what constitutes good standing.

The law also sets forth certain time periods concerning notices seeking nominees from the board.  More specifically, notices would be required to be sent to all owners not less than 30 days before notice of the election meeting is sent.  Further, notice of the election meeting must be sent 14 or more days before the meeting, but not greater than 60 days before the meeting.  Electronic voting is authorized, and electronic notice of meetings is also authorized if permitted by the By-Laws.

The law sets forth other provisions pertaining to associations governance.  While the law has already gone into effect, it provides that to the extent that an association may be required to modify certain procedures as set forth in the governing documents, the time frame would be extended to October 1, 2017, to provide associations with an adequate opportunity to take the appropriate measures.