On April 10-11, 2024, David attended Community Live! This is the Community Associations Institute, Keystone Chapter’s annual conference and expo. The theme was the Olympics and it took place at the Valley Forge Casino in PA. As a former President of the Chapter (2023), David was a part of the group that led the opening ceremony. David was also a co-presenter at an education event: Alcohol in Common Areas – Good Idea or Bad? The session was very well attended and interactive. In addition, the firm proudly supported the event with an exhibit booth. David cannot wait to see everyone next year when the venue changes to the beautiful Lancaster County Convention Center!
Author: Audrey Edwards
New Jersey’s Flood Disclosure Requirements Go Into Effect
What Happened?
Bill S3110, which was passed by the New Jersey Legislature on June 30, 2023, has now gone into effect as of March 20, 2024.
Under New Jersey law, landlords and property sellers must now notify tenants and prospective purchasers, prior to signing a lease or agreement of sale, whether a property has been or could be impacted by flooding, is located in the FEMA Special Flood Hazard Area (“100-year floodplain”) or is located in a Moderate Risk Flood Hazard Area (“500-year floodplain”).
The Department of Community Affairs (“DCA”) has published a model Flood Risk Notice to be used by landlords pursuant to the new law. The notice includes specific questions about flood risk and space for landlords to provide answers. Commercial landlords may model their notice to be specific to their property, but all notices must include all the information contained in the model notice in substantially similar language.
For rental properties, if a lease is in writing, the notice required may be included in the written lease or the written renewal lease, provided that the notice is a separate rider, individually signed or otherwise acknowledged by the tenant, and written in not less than 12-point typeface.
Additionally, every residential lease must contain the following notice to tenants: “Flood insurance [is] may be available to renters through FEMA’s National Flood Insurance Program to cover your personal property and contents in the event of a flood. A standard renter’s insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered.”
For properties being sold, the Division of Consumer Affairs (“Division”) has added specific questions and information to the Property Condition Disclosure Statement concerning certain flood risks. Sellers are required to use this updated Disclosure Statement as of March 20th, 2024.
Why you need to know about this?
This new legislative mandate makes New Jersey the 30th state in the US to require these disclosures from landlords and home sellers, better informing renters and homebuyers of the flood risk they face. This information will help renters and buyers decide if the risk is worth the cost, and if so, then consider purchasing the appropriate flood insurance to protect against costly out-of-pocket repairs.
If you are a landlord or a seller of property, these new requirements will directly impact how you must notify tenants or prospective buyers of a property’s potential flood risks. The new law imposes steep penalties on those not in compliance; including but not limited to early termination rights for tenants.
What should you do now?
Landlords should update all form leases and renewals to include both a flood disclosure notice modeled after the Department of Community Affairs provided form, as well as the required Flood Insurance Language, in order to provide the necessary disclosures for properties that have been or could be impacted by flooding.
Additionally, sellers of property should immediately begin using the new Property Condition Disclosure Statement provided on the Division of Consumer Affairs website. All forms of purchase agreements should also be updated to include the necessary flood disclosures.
Should you have any questions on the newly imposed disclosure requirements, please reach out to:
Zachary C. Friedman, Esq.
friedman@hylandlevin.com
856-355-2999
Robert S. Baranowski, Esq.
baranowski@hylandlevin.com
Phone: 856-355-2955
Partner, David R. Dahan Coordinates Education Symposium Hosted by CAI
David R. Dahan recently coordinated and moderated the educational symposium – NJ Structural Integrity Legislation: Understanding Its Impact – hosted by the Community Associations Institute, Keystone Chapter’s NJ Regional Council. The event explored the recently passed law requiring capital reserves studies and specific structural inspections for primary load-bearing systems in New Jersey. David is the immediate past president of the Keystone Chapter and dedicates a significant portion of his practice to assisting in the governance and administration of Community Associations. HLS was a proud sponsor of this sold-out event.
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Is It Time to Appeal Your Property Tax Assessment?
No one enjoys paying real estate taxes, especially in New Jersey where they are among the highest in the country. Owners should make sure that they are not paying more than their fair share and consider challenging their property tax assessment if and when appropriate.
FIVE THINGS TO CONSIDER WHEN DECIDING IF YOU SHOULD APPEAL:
- Do the math! Divide the assessed value by the municipality’s equalization valuation ratio to determine what the municipality thinks your property is worth. If the assessment is $500,000 and the equalized valuation ratio is 50%, the municipality thinks your property is worth $1 million. The assessor has a 15% margin for error.
- Timing matters. The assessment is based on a one-day snapshot of value as of October 1st of the pre-tax year, and appeals generally must be filed by April 1st unless there has been a revaluation. More information on the filing deadlines can be found below.
- Consult with experts. Value is the key issue. Consult with a qualified appraiser who can provide an expert valuation opinion. Also, if the property is owned by a business entity (other than a sole proprietor) or a trust, the appeal must be filed by an attorney.
- The owner has the burden of proof. There is a presumption of correctness that you must overcome with reputable evidence. Valuations should typically be supported by 3-5 comparable sales.
- Be careful! If you appeal the tax assessment and the property is actually under-assessed, the tax assessor may increase the assessment. You must also pay your taxes through the first quarter of the tax year, and failure to do so may result in dismissal of your appeal. Failure to timely respond to Chapter 91 income and expense requests, for income-producing properties, may also result in a dismissal.
Properties Assessed at or Below $1,000,000
For most New Jersey counties, April 1st of the current tax year is the filing deadline. However, Burlington, Gloucester and Monmouth County have earlier appeal deadlines for property owners whose assessments are at or below $1,000,000. The deadline to file an appeal on these properties is January 15th. All such appeals must be filed with the applicable County Board of Taxation. Outside of Burlington, Gloucester and Monmouth County, properties assessed at or below $1,000,000 have until April 1st to file with their County Board of Taxation
Properties Assessed Above $1,000,000
Property owners with assessments that exceed $1,000,000 may file directly with the Tax Court. This option applies to all New Jersey property owners who meet the filing threshold. However, the option to file with the Tax Court becomes a requirement in Burlington, Gloucester and Monmouth County if an appeal is not filed prior to January 15th. At that time, the deadline to file with those County Board Offices has passed. However, property owners may still file directly with the Tax Court on or before April 1st of the current tax year or 45 days from the date the bulk mailing of notification of assessment is completed in such taxing district, whichever is later. This April 1st deadline applies to all properties that have an assessment of over $1,000,000.
Please do not hesitate to contact William H. Dungey III at dungey@hylandlevin.com or 856.355.2927 if you think that your commercial property has been unfairly assessed.
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Hyland Levin Shapiro Attorneys Attend Evesham Education Foundation Double Down Event
Will Dungey, Beau Wilson, Paige Joffe and Mariane Gardner, associates at Hyland Levin Shapiro, attended the Evesham Education Foundation Double Down event on Friday, February 2. They enjoyed a night of networking with colleagues, including interacting with property managers for the firm’s Homeowner and Condominium Association clients. The associates were also delighted to enjoy the ambiance and beautiful architecture of the Mansion on Main Street in Voorhees, New Jersey. Proceeds raised from the event will be used to support the children enrolled in the Evesham Township School District.
Mariane Gardner Attends the 28th MLK Champions of Social Justice and Equality Gala
Mariane Gardner attended the 28th Dr. Martin Luther King Jr. Champions of Social Justice and Equality Gala, hosted by Rutgers Law School Camden’s Black Law Students Association. Mariane is a board member of the Rutgers Camden Law Alumni Association and the Rutgers Alumni Diversity and Inclusion Committee.
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CAI Gala and Annual Meeting
On November 30, 2023, Partner David R. Dahan along with colleagues, Beau C. Wilson and Zachary C. Friedman, attended the Community Associations Institute (“CAI”), Keystone Chapter’s 2023 Excellence Awards Gala & Annual Meeting. The firm has been a member of the Chapter for years. CAI is an international organization that provides education, networking events and resources to America’s 300,000+ residential condominium, cooperative, and homeowner associations, and to the professionals and suppliers who serve them. It also has various legislative action committees to monitor and support or oppose various bills that affect associations. CAI has 63 Chapters in the world. The Chapter covers all of PA, Southern NJ and Northern Delaware. David has been a member of the Chapter for as long as he can remember, has been on the Board for the last six years and served as President for 2023. Throughout the years, David has authored many publications for the Chapter and presented numerous seminars at its events. David will remain on the Board for one more year and will serve on its New Jersey Regional Council for 2023 which is responsible for planning education and networking events in Southern New Jersey.
David was honored to receive a plague to recognize his role as President. Congratulations to David and we wish the Chapter continued success for years to come!
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Mariane Gardner Attends Distinguished Alumni Awards Ceremony
Mariane Gardner attended the annual Governor James J. Florio Scholarship Benefit and Distinguished Alumni Awards Ceremony hosted by the Rutgers Law School – Camden Alumni Association. A graduate of Rutgers Law School, Mariane is a trustee of the Rutgers Law School – Camden Alumni Association and a co-chair of the Rutgers Law School – Camden Young Lawyers Division. Through her involvement with the alumni association, she met great colleagues who quickly became her mentors. Now, as a practicing attorney, Mariane has a desire to continue her involvement with the Alumni Association to provide current law students with the same advice and guidance that she received.
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William H. Dungey III Attends Tax Court Reception
William H. Dungey III attended a Tax Court Reception at the New Jersey Law Center on October 19, 2023. The event was held exclusively for those attorneys who practiced or clerked in the tax court. Several Tax Court Judges were in attendance. Will is photographed speaking with Judge Mark Cimino, with whom he had previously clerked. The primary purpose of the event was to introduce each judge’s new law clerk.
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Megan Knowlton Balne Hosts Network Connect Event on Advocacy
Megan Knowlton Balne hosted a Network Connect Event at our firm on November 2, 2023. Megan serves on the Board of the South Jersey Chapter of the National Association of Women Business Owners. The Event focused on Advocacy and was attended by approximately 20 women business owners from South Jersey. Megan shared a presentation on the importance of civics education to advance advocacy.
