Local Law Blogs

Associations are not Required to Pay Twice for Services

By Mark M. Wiechnik

Associations should be aware that the New Jersey Municipal Services Act ("MSA") provides a protection from unit owners being "double taxed" for various fees and services.  Every homeowner in every New Jersey municipality pays taxes which go, in part, to services such as garbage and recyclables collection, road obstruction removal, street lighting and snow removal.  Homeowners who live in condominiums and/or homeowners associations may also pay maintenance or dues to an association which may also directly provide those services, or those owners may pay for the service themselves.  The MSA protects those owners and communities from having to pay twice for those services.  It gives the local municipality the choice of either providing the service to all of the association's owners or reimbursing the association or owner for the expense, up to the amount it would cost the municipality if it were to provide that service itself.  Associations are not generally entitled to reimbursement for services above and beyond what the other homeowners in the municipality are provided, but are protected from having to pay twice for garbage pickup, street lighting and/or snow removal.
 

Unfortunately, many associations are presently unaware of these protections even though the MSA was enacted over 17 years ago.  For example, unit owners in a condominium in Dover, New Jersey are presently attempting, through a petition to the mayor of Dover, to obtain a reimbursement of nearly $800 per month for trash removal service.  The Township of Dover claims that it would provide curbside garbage pickup, but the owners of the 69 unit building argue that 69 garbage cans in front of the building twice per week would be a logistical and health nightmare.  This situation shows that both associations and many municipalities are unaware of the requirements of the MSA, the rights that it affords to homeowners and the municipalities responsibilities thereunder. Associations and homeowners in this situation should be fully aware of their rights under the MSA and have the option of suing the town to force the municipality to either provide services or a reimbursement.

Full post as published by New Jersey Law Blog on October 12, 2010 (boomark / email).