I hope all our residents are doing well. The following is all the information that I received from our Coalition Meeting. I feel this information will shed more light on our current situation.
For the past few months there has been continuous discussions as to whether associations in the Holiday City / Silver Ridge Park Coalition would be able to open their pools, amenities and buildings. Directives from the CDC, the Department of Health and the State of NJ regarding public, community and private pools are continually updating and set directives are still forthcoming. These considerations plus other factors came into play when reviewing information provided and deciding what would be in the best interest of the communities. Most importantly, concern had to be directed to the health and safety of the membership of each association.
A review of current regulations determined that reopening of the facilities and amenities will come with a price tag that none of us anticipated when creating budgets for 2020. New Jersey's Governor Murphy opened Pandora's Box by announcing the opening of public, community and private pools on June 22, 2020. When he did this, he provided a glimmer of hope to the residents of the State that part of the summer might be normal. Then came the guidelines, with the requirements for re-opening, proving to be cost prohibitive. Aside from those costs, the Governor's announcement provided no indemnification for the associations, its members, or their Boards. This was done knowing that lawsuits related to virus and pandemics are not covered under current insurance policies in the State of NJ. It should also be noted that NJ Title 59 provides indemnity to all public entities in the state, but not private associations or businesses! We have been advised that signed waivers will provide a slight blockade but will not prevent lawsuits. With the lack of indemnification, legal counsels for the State Association for HOAs all advised it would be prudent not to place our associations and its members in harm's way by opening the associations to potential lawsuits and the related expenses. Given the information provided it was decided that Holiday City South would host a meeting of the coalition of Holiday City / Silver Ridge Park associations. The attendees viewed a video conference call that addressed many of the issues related to the coronavirus (COVID-19) and the facts pertaining to opening as well as the ramifications of such actions. Mr. Paul Leodori, Coalition's legal counsel was present to offer legal advice and detail the exposure for associations. The floor was then opened for general conversation.
Vince DeChiaro, Holiday City South's Vice President, put together a detailed summary of information, related to current conditions. These facts were provided to the attendees.
The following is a synopsis of the three key factors presented:
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LIABILITY: The absence of protection from frivolous lawsuits. A proposed bill is now in the NJ Senate's Judiciary Committee for consideration. The bill would indemnify associations, boards of trustees and businesses from frivolous lawsuits emanating from the COVID-19 virus. This bill is activelv being opposed bv the Trial Lawyers' Association. With the lack of that indemnification, we are open to frivolous lawsuits which will need to be defended in court since our insurance carrier, as with all insurance carriers, do not cover pandemic viral claims. All costs for defending against these claims would be borne by either a special assessment to the membership or paid for through our reserve funds which are allocated for future repair costs. Either way the associations all lose!
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COSTS: Under the current guidelines, the additional costs to open buildings and related activities, including the pool, is estimated to be up to five times the normal operating expense through the end of 2020. That expense would carry thru to 2021, and possibly increase, unless the State's mandated guidelines are relaxed or removed. Additional costs would include, but not be limited to, disinfection equipment, supplies, additional hiring to monitor all activities, security personnel and additional staffing to provide disinfection for all buildings. This comprises all social gatherings such as dinners, dances, and external activities, including the pool, for the duration of the year.
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SAFETY: The safety of all people, members, guests, or contractors entering or using our facilities is of utmost importance. The implementation of mandated procedures for compliance would include limiting the number of people in any building, having a designated person at each entrance to monitor temperatures of those entering, etc. The list of mandated guidelines is 11 pages long and may be found on the State of New Jersey's website: www.njgov. As these mandates change over the next few months they will affect the cost and any proposed timetable for reopening. While the mandated guidelines and the associated costs for a clean reopening are important, they become secondary to the main issue of liability for the association and its members.
A question was asked regarding recent comments all the associations are receiving regarding HOA fees. It was discussed that any adjustment to the HOA fees would not be possible. HOA maintenance fees are exactly what they are, maintenance fees. The maintenance fees are determined based on budget related items and completed reserve studies which provide a look at expected future expenses required to maintain the individual associations properties and continue daily operations. Although everyone feels the pool is an important amenity, in the scope of expenses budgeted for, it is negligible. The overall daily operations and the requirements for each association to build reserves for their future stability requires HOA fees to be maintained at the current levels and that does not account for unexpected or emergency related expenses that could be encountered due to the COVID 19 pandemic or a single catastrophic event.
Based on the above information the members of the coalition decided they would bring the information back to their respective associations and vote to keep their facilities and amenities closed until further notice. Decisions such as these, as difficult as they are, must be made by the individual association boards with fiduciary responsibility for their communities, their members and the preservation of their ability to remain viable self-managed entities in mind. Given these facts, the unity of the coalition with regard to this matter depicts the responsibility and professional dedication of the board members in attendance to the coalition and more important their respective associations.