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MaureenM1 (PA)
Posts: 344
Posted:
Our development consists of three private roads (40 townhomes total, 24 built to date). It is a gated community (however the gates are not operational yet). The builder constructed a central "garbage dumpster enclosure", in the development, however, the residents would prefer curb side pickup. We were told that we couldn't contract a garbage company for curb side pickup because we live on a private road, however, the garbage company that was hired by the association comes down the road to the central garbage dumpster twice a week to empty the dumpster. We also don't get a recyle pickup from the town. The people in the back have to drive their garbage to the dumpster. This is suppose to be an upscale gated community. Until the garbage dumpster was put into place with an enclosure we all had to throw our garbage in the construction dumpster. I don't think the builder had garbage figured out before he sold us the units.

please advise.

GeraldT4
Posts: 1,022
Posted:
MaureenM1 - The owners of your association pay taxes to the borough as does every other resident in your city, correct? Part of those taxes are for municipal services. The borough is obligated by New Jersey Law the Municipal Services Reimbursement Act to either provide the service to your association or reimburse you for the borough's cost to provide the service to ever resident. However, part of that cost can be defrayed by the borough's reimbursement. Please go to http://www.njlawblog.com/2006/07/articles/community-associations/is-your-association-receiving-the-benefits-of-the-municipal-services-act/

Please tell us who told you that your association can't contract for the service? Where in New Jersey are you located? Do you have your public offering statement (POS)? There should be something in there about the services that will be provided to the association by the borough.
LindaC3 (Florida)
Posts: 526
Posted:
Maureen....I also live in a gated "upscale" development consisting of 299 - 3 acre parcels and our roads are private.... We do not recieve curb side garbage pickup nor mail delivery to our homes.. We must drive our garbage to a central garbage facility here in the subdivision.. The county has told us because we are a private rd community that it is not feasible for them to send their trucks down our " easements "...... So while I do not have any advice to give you this is just a heads up that you are not alone out there with regards to this matter.......LindaC3
GeraldT4
Posts: 1,022
Posted:
LindaC3 - Read my response to Maureen and go to the link. Maureen is not alone, of that there is no doubt. However, in New Jersey there is a very powerful law on the books that is supposed to prevent double taxation, one of the very basic principles of our governments. Florida should follow suit, would be surprised if there is nothing in the works, you snow birds own a lot of real estate here in the Garden State!! : )
SusanW1 (Michigan)
Posts: 5,202
Posted:
Most likely the developer did not want garbage trucks on those streets. They are hard on the roads. The recyling trucks come first, then the big garbage truckes.

Have you surveyed the other residents to see if they want to contract for curbside pick-up? Before you being your concern to the developer, you need to get your supporters lined up.

Was this brought up before the Board? Make sure you document the discussion and note lack of action / or / the action taken by the Board. The residents will want to know.

MaureenM1 (PA)
Posts: 344
Posted:
yes, most residents want curb side pickup
SusanW1 (Michigan)
Posts: 5,202
Posted:
Your complex is still under control of the builder. The best you can do is to bring a petition to him - signed by all the homeowners - requesting that a garbage company be hired. Be ready for an increase in dues or a private garbage collection bill. (I don't know how this ties in with any taxes that are supposed to cover garbage collection. Never heard of that before)

Bottom line is: this is not your subdivision, yet. You are still in his sandbox!
GeraldT4
Posts: 1,022
Posted:
OMG - Has anyone read, and does anyone understand the impact of what I've provided? The services the borough must provide are what matters here. Granted a concerted effort of the owners can sway the Developer, however there is something called a public offering statement, and importantly a Developer's Agreement that clearly outlines what the borough is going to provide in the way of municipal services reimbursement. A dialogue between the residents and the borough is one of the key 1st steps. Not to forget the LAW in New Jersey folks!!!!!!! Read the law and the link I've provided. The residents are due either the service or the borough's cost for the service back to their association. It's the LAW.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Gerald,

I know! It's frustrating when you post important info but nobody seems to read it! Even though I don't live in NJ I went to the website and read the article, which I've pasted below. Hope Maureen reads it and gives a copy to the developer.

"Is Your Association Receiving the Benefits of the Municipal Services Act?

Posted on July 12, 2006 by Jonathan H. Katz

Like many condominium and homeowners associations in New Jersey, the seventy or so associations in the City of Long Branch were unaware that they were entitled to reimbursement for certain municipal services – such as the costs of snow removal, trash collection and street lighting – that they provided to their members out of their annual budgets. Unaware, that is, until recently... On June 13, 2006, the Long Branch City Council authorized reimbursement of over $100,000 to condominium owners in the City for snow removal and street lighting services. This amount represents the costs of these services incurred by these seventy associations from 1996 through 2006.

Pursuant to the Municipal Services Act, N.J.S.A. 40:67-23.2 to -23.8, every municipality in New Jersey is required to either provide certain services to each qualified private community within its borders or reimburse the community for these services, including the removal of snow, collection of trash or recyclables or lighting of roads and streets. The purpose of the Municipal Services Act is simple – eliminate double taxation of community association residents. As discussed more fully in one of the seminal cases interpreting the Act, Briarglen II Condo. Ass’n, Inc. v. Township of Freehold, 330 N.J. Super. 345, 353 (App. Div. 2000) – litigated by David J. Byrne, Co-Chair of Stark & Stark’s Community Associations Group – the Appellate Division determined that the legislative intent of the Act was to β€œhelp eliminate double payment for some services which the residents of qualified private communities now pay through property taxes and fees to their association.”

Although the Municipal Services Act went into effect in January of 1993, many qualified associations fail to take advantage of having their municipality provide these services – or the reimbursement for them – simply because they are unaware that they are entitled to them. This means countless associations in the state – like those formerly unaware in Long Branch – may be entitled to significant reimbursements that could be used to free up other funds for capital reserves, necessary repairs, or long-overdue improvements to their communities."
SusanW1 (Michigan)
Posts: 5,202
Posted:
Well, Gerald, my thinking was that this is PRIVATE property and the developer still has control over what services he wants to extend to the residents. He pays the taxes, and has decided to waive that "amenity" provided by the government, and do this his way.

I still don't think the residents have any rights here about this issue, and the decider is the developer.

The best thing is for the residents to talk him into accepting these tax-provided services. (Can't believe he does not know about them!)

As I said before, this is HIS sandbox.
GeraldT4
Posts: 1,022
Posted:
SusanW1 - I too live in a "private" association in New Jersey, and I can assure you that it does not exclude the necessity of the borough to provide municipal services to my association that it provides for everyone else outside of the association. Don't think for one minute that a "private" association isn't subject to local, state, and federal laws.

The developer pays taxes for all the unclosed lots in the association. You pay taxes as well to the borough. The residents have rights as taxpayers to have the municipal services that every resident in your borough has, or to be reimbursed by the borough for the borough's cost of those services.
MaryA1 (Arizona)
Posts: 7,043
Posted:
For what it's worth, this developer appears to be just an ignorant fool! But, as Susan says, as long as he is in control he can pretty much do as he pleases. I like her phrase - "it's his sandbox!".
GeraldT4
Posts: 1,022
Posted:
MaryA1 - The developer is not in control over this one, only given the ability to control by others. The municipal services are due and it's really a matter of the residents dealing with the borough, perhaps through the developer, however it's the obligation of the borough to provide. The longer the association members let this go, the harder it's going to be to get what is due them.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/05/2008 11:38 AM
MaryA1 - The developer is not in control over this one, only given the ability to control by others. The municipal services are due and it's really a matter of the residents dealing with the borough, perhaps through the developer, however it's the obligation of the borough to provide. The longer the association members let this go, the harder it's going to be to get what is due them.

Gerald,

I was speaking of Maureen's association and her developer (declarant). Don't know what you mean by: "a matter of the residents dealing with the borough, perhaps through the developer. . ." As long as the developer is in control he must deal with the borough. Once the members are in control they can deal directly with the borough. The developer is gone, they don't need to "go through" him for anything.
GeraldT4
Posts: 1,022
Posted:
MaryA1 - The borough has obligations to the residents and the resident's do not have to relinquish their right to interact with the borough, ever. Every day the residents don't exercise their right for reimbursement it's money out of the association's pocket.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/05/2008 12:17 PM
MaryA1 - The borough has obligations to the residents and the resident's do not have to relinquish their right to interact with the borough, ever. Every day the residents don't exercise their right for reimbursement it's money out of the association's pocket.

Gerald,

If the assn is contracting for trash p/u they have to make the request to the borough, not the residents. The fact that the residents' assessments are paying for the trash p/u service is a moot point. The resident's can "exercise their right for reimbursement" but they must do it with the declarant, not the borough.
GeraldT4
Posts: 1,022
Posted:
MaryA1 - Reimbursement comes from the borough. The residents make up the association. The developer usually doesn't care about the reimbursement. It's a negotiation process that typically occurs later than it should, when the developer is not on the Board anymore. There's no reason that a New Jersey association should be paying for trash pickup. The borough should extend the route of the company and cover the association. Services that are included in the municipal reimbursement are snow removal, street lighting, recycle and trash pickup. High ticket items the cost of which should reflect in the current association budget (double taxation).
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/05/2008 12:43 PM
MaryA1 - Reimbursement comes from the borough. The residents make up the association. The developer usually doesn't care about the reimbursement. It's a negotiation process that typically occurs later than it should, when the developer is not on the Board anymore. There's no reason that a New Jersey association should be paying for trash pickup. The borough should extend the route of the company and cover the association. Services that are included in the municipal reimbursement are snow removal, street lighting, recycle and trash pickup. High ticket items the cost of which should reflect in the current association budget (double taxation).

Gerald,

I know! You provided the link and I copied the ordinance for all to read so I do know what it says. However, you contend the residents should contact the borrough for the reimbursement. I say it's up to the HOA to do this because the HOA is paying for the service. That's what my responses were addressing.
GeraldT4
Posts: 1,022
Posted:
MaryA1 - When I posted "residents" I was trying to make the distinction between the developer and the association. Poor choice of words on my part, sorry. Yes, when the time comes the HOA will get the reimbursement from the borough. The residents will not see a tax break or an individual reimbursement. It's important to understand the reason the HOA needs the reimbursement. Because the HOA is "taxing" the owners for a service that by law is to be provided to everyone in your county HOA or non HOA. Hence where the phrase "double taxation" comes into play. I am curious what county your HOA is in, perhaps it will assist.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/06/2008 10:14 AM
MaryA1 - When I posted "residents" I was trying to make the distinction between the developer and the association. Poor choice of words on my part, sorry. Yes, when the time comes the HOA will get the reimbursement from the borough. The residents will not see a tax break or an individual reimbursement. It's important to understand the reason the HOA needs the reimbursement. Because the HOA is "taxing" the owners for a service that by law is to be provided to everyone in your county HOA or non HOA. Hence where the phrase "double taxation" comes into play. I am curious what county your HOA is in, perhaps it will assist.

Gerald,

I live in AZ. We don't have snow removal (of course! LOL) and our trash service is provided by the city and billed to each individual h/o along with their water bill. The "double taxation" really doesn't apply much in planned communities, especially ones that have public streets. The only service we're double taxed for would be maint of common areas.
GeraldT4
Posts: 1,022
Posted:
MaryA1 - Sorry, I thought it was Maureen from New Jersey that was posting. However, double taxation does apply if the HOA is paying for a service that the borough provides to all the other residents of the town, and the HOA is not getting reimbursement by the borough.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/06/2008 10:33 AM
MaryA1 - Sorry, I thought it was Maureen from New Jersey that was posting. However, double taxation does apply if the HOA is paying for a service that the borough provides to all the other residents of the town, and the HOA is not getting reimbursement by the borough.

Gerald,

As I said, the only services that would qualify in a planned community with public streets is maint. of the common areas. Condo assn's sometimes pay for their own trash p/u plus street maint (same for planned communities with private streets) so they are double-taxed at a higher rate. But, I know of no town/county in AZ that gives a reimbursement for any double-taxation. The only break HOAs have gotten is a break on property taxes for the common areas and this is a very substantial tax break for communities with lots of high-cost amenities. This law allows HOAs to consolidate common area parcels into a single parcel taxed on a value of only $500. You can imagine the tax break if the HOA has a $5 million clubhouse, tennis courts, swimming pools, etc. A tax bill in the tens of thousands might be reduced to less than $10. Proponents of this measure argued that higher taxes on common areas was a form of double taxation.
GeraldT4
Posts: 1,022
Posted:
MaryA1 - Read the law that exists in New Jersey as posted on this thread. You may know of no law in AZ. Honestly, not to be disrespectful but it's time that every association in every state in the land get with it as New Jersey has and demand that they be reimbursed for being double taxed. End of story.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/06/2008 4:51 PM
MaryA1 - Read the law that exists in New Jersey as posted on this thread. You may know of no law in AZ. Honestly, not to be disrespectful but it's time that every association in every state in the land get with it as New Jersey has and demand that they be reimbursed for being double taxed. End of story.

Gerald,

You seem to forget, I posted the law. And, YES, I did read it before I posted it. AZ gives assns a huge break on property taxes on common areas, so it's not as though we're being double-taxed through the nose. And, as I said earlier, planned communities have very little double-taxation. Do HOAs in NJ have to pay property taxes on common areas?
GeraldT4
Posts: 1,022
Posted:
MaryA1 - I'm not talking about taxes on common property? I'm talking about reimbursement from the borough for municipal services. The services that it provides to all the residents in the borough, the cost of which is funded by property taxes. Services include trash pickup, recycling, snow removal (if it snows), street lighting.
PeteH (New Jersey)
Posts: 6
Posted:
Better late than never!

I also live in such a community in NJ and we do have municipal curb-side garbage and recycling pickup, and US Mail delivery.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Hi Pete, welcome to HOA Talk!

Wow, aren't you lucky to have US Mail delivery! LOL Doesn't the city/county also reimb for some services? I seem to recall that being offered in NJ.

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