New Jersey's HOAs Exposed

So how did C-IHC get started, anyway? The genesis occurred in 1996, when pursuant to Assembly Resolution No. 47, the New Jersey Legislature enacted the Assembly Task Force To Study Homeowner Associations. The panel consisted of three legislators (Christopher "Kip" Bateman, Guy R. Gregg and John Wisniewski), one developer's attorney, two managing agents, two attorneys from the Community Association Institute (CAI), and two homeowners association board members.

Although the Task Force was hardly representative of the interests of the individual homeowner, the hearings did draw the testimony and recommendations from many people who had purchased condos, townhomes and single-family homes in planned communities. It conducted its first hearing in November 1996 and three more in early 1997.

At these hearings many homeowners learned that problems in their own associations were not unique, and that similar conflicts were occurring throughout the state. It quickly became apparent that boards were acting as they did simply because they could! There was virtually no limit to how they exercised their power despite the negative impact it had on homeowners.

Among those who provided testimony at those hearings were Drs. Lois and Sam Pratt (November 1996) and Haim Bar-Akiva (January 1997). Both the Pratts’ and the Bar-Akivas had recognized early on that serious governance issues plagued this form of housing and, unbeknownst to either, both couples had begun to advocate for reform. Haim took the initiative of contacting the Pratts and several other homeowners whom he had met at the hearings to explore the possibility of forming an organization. In February 1997, the Bar-Akivas invited 15 homeowners, including the Pratts, to their home in Twin Rivers. It was there that C-IHC was founded.

A week later, on April 27 at the Pratts home in North Bergen, Lois Pratt presented the group with a draft of C-IHC’s bylaws and mission statement. Her extensive scholarly background and her research into the history of HOAs became the backbone for all subsequent legislative outreach.

Since then, C-IHC has grown into a successful non-profit organization supported by generous donations and a Rutgers Law School Pratt Grant...and we are still growing!

Winds of Change

The published testimony from the Task Force hearings was filled with overwhelming evidence of associations’ poor governance and unfair operations. Consequently, the Task Force Report prepared recommendations for desirable legislative reforms to fix the problems.

The Task Force recognized that associations should no longer be considered as business entities simply because they are corporate. Instead, it adopted the prevailing principle that associations are quasi-governmental entities, and as such, should be subject to the same regulations as public governmental bodies. This distinction was of utmost importance because it requires the practice of open meetings, conflict of interest provisions, and other modes of operation that homeowners were entitled to, but had rarely experienced.

The C-IHC has publicly endorsed the Task Force report and has since promoted legislation and best practices focused on enhancing the function of HOAs while still protecting homeowners’ interests. We have gained the support of several state legislators who appreciate our positions as being different from those of the industry groups. The C-IHC will continue to serve as the voice of homeowners living in condominiums, cooperatives, townhomes and planned unit developments.

When invited to do so, the C-IHC will come to your community to speak about the history of common-interest communities, owner issues and current legislation. We will also help you form an owner group so you can be heard by your board, property manager and legislators.