Fox v. KINGS GRANT MAINTENANCE ASSN.

770 A.2d 707, 167 N.J. 208, 2001 N.J. LEXIS 520
CourtSupreme Court of New Jersey
DecidedMay 17, 2001
StatusPublished
Cited by18 cases

This text of 770 A.2d 707 (Fox v. KINGS GRANT MAINTENANCE ASSN.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox v. KINGS GRANT MAINTENANCE ASSN., 770 A.2d 707, 167 N.J. 208, 2001 N.J. LEXIS 520 (N.J. 2001).

Opinion

The opinion of the Court was delivered by

STEIN, J.

The primary issue presented by this appeal is whether the Condominium Act, N.J.S.A. 46:8B-1 to -38, permits a municipal planning board to require a condominium association irrevocably to delegate its powers over its unit owners’ common elements to an umbrella association controlled by non-unit owners. The Appellate Division held that the Condominium Act allowed a municipality to mandate such a governance scheme. We granted certification, 165 N.J. 489, 758 A.2d 648 (2000), and now reverse the judgment of the Appellate Division. We hold that the Condominium Act prohibits a municipality from requiring unit owners in one sectionalized community to delegate their governance rights over their community’s common elements to unit owners in other sectionalized communities by the use of an umbrella association. In our view, the Act is better understood to authorize an umbrella association to serve only the limited function of coordinating and managing property intended for the common and beneficial use of unit owners of several separate condominium associations, such as common roadways, common open space, and common recreational facilities.

I

This appeal involves forty-six plaintiffs who own condominiums in the Waters Edge condominium community (Waters Edge), one of fifteen distinct communities comprising the Kings Grant Planned Unit Development (Kings Grant). Kings Grant is a large development located in Evesham Township and Medford Township, Burlington County, New Jersey. Kings Grant spans approximately 1,800 acres and consists of fifteen sectionalized communities including six townhouse and nine condominium communities. *214 There are a total of 1,447 individually owned units, and Waters Edge represents sixty-seven of those units.

The Evesham Township Planning Board (Planning Board) originally approved the initial Kings Grant project in 1968 and 1971. In 1983 Kings Grant Equities, Inc., the owner of the remaining undeveloped land, came before the Planning Board to request a revised preliminary approval to authorize the additional development of Kings Grant. The revised proposal involved the construction of sectionalized communities including single-family homes, townhouses, and condominiums, and the development of community facilities for all Kings Grant unit owners such as bicycle trails, recreational facilities, commercial centers, and open space.

After eight public hearings on the proposal, the Planning Board adopted Resolution 83-45 (Resolution) on September 1, 1983. In the twenty-four page Resolution, the Planning Board gave preliminary approval to the proposal that included the development of separate communities with common covenants and restrictions bearing on traffic, quality-of-life, environmental and safety issues. The Resolution conditioned the future development of Kings Grant on express “Findings of Fact” and “Specific Conditions.” In Finding of Fact eleven, the Planning Board called for the establishment of an umbrella maintenance association, as follows:

HOMEOWNERS ASSOCIATION
In order to ensure the professional management of the common properties in Kings Grant, and in order to promote the responsibilities and economies which are necessary in a development as large as Kings Grant, an umbrella organization is needed to coordinate the maintenance and improvement of all common private property. The “umbrella” association should have the power to mandate and collect fees in order to preserve its effectiveness for the maintenance and control of the common improvements. However, the liability for fees should be allocated in such a way that condominiums, cooperatives, and other sections with common structural elements will pay for the costs attributable to the operation, repair and maintenance of the improvements in their particular section.

In Specific Condition eleven, the Planning Board explained that the umbrella association would be

a mandatory dues paying association for the coordination and control ofpnvately owned streets, walkways, recreation, and other facilities limited to all or some of *215 the residents of Kings Grant. The purpose of the association will be to provide overall management and control of the Kings Grant Planned Unit Development.
[(Emphasis added).]

Kings Grant Equities consented to the condition imposed by the Planning Board mandating formation of the umbrella association. To comply with the Planning Board’s Resolution, Kings Grant Equities filed a Declaration on April 24, 1985, to establish the Kings Grant Maintenance Association, Inc. (KGMA). The Declaration explained that as a condition of granting all municipal approvals for the further development of Kings Grant, the Planning Board required Kings Grant Equities to establish a management system in which a single entity is fully responsible for “the maintenance, management, preservation, administration, upkeep and care of all common property.” (Emphasis added.) The Declaration defined common property as follows:

[A]ll property intended for common and beneficial use of Unit Owners within any Section of Kings Grant regardless of the form of ownership. Common property shall also mean and refer to all lands, buildings, improvements and facilities including, zvithout limitation common elements as that tei-m is defined in N.J.S.A. 46-.8B-1, property owned by Community Associations and property owned by the owners of record of more than one Unit as tenants-in-common with no right of partition. 1
[(Emphasis added).]

The Declaration stated that every sub-association within Kings Grant shall be deemed to have “irrevocably delegated” to KGMA all of its powers and duties for the maintenance, preservation, administration and operation of common property.

According to the Public Offering Statement filed by Kings Grant Equities, each of the Kings Grant communities would be required to form sub-associations to provide for the maintenance *216 and administration of common property within the specific community. However, those sub-associations were required to delegate “most of their powers and responsibilities [for common property] to the Maintenance Association.” The Public Offering Statement provided that the umbrella or maintenance association would possess “the power and the obligation to enforce any covenants and restrictions contained in any Declarations, Master Deeds, Certificates of Incorporation or By-Laws of each Community Association.”

Article II of the Declaration, in conjunction with KGMA’s Bylaws, sets forth the process for the unit owners’ participation in the maintenance association and for representation on the KGMA Board of Trustees. According to those documents, each unit owner in Kings Grant is a “beneficial member” of KGMA. However, individual unit owners cannot participate directly in the management of KGMA. Instead, each one of the fifteen communities in Kings Grant elects one delegate to represent its interests.

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Bluebook (online)
770 A.2d 707, 167 N.J. 208, 2001 N.J. LEXIS 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-kings-grant-maintenance-assn-nj-2001.