New Laws Can Prove Financially Challenging for HOA’s
HOAs are grappling with significant financial burdens due to new regulations. Earlier this year, New Jersey became the second state, following Florida, to enact legislation aimed at protecting the structural integrity of condominiums and cooperative buildings. This move was in response to the tragic collapse of the Champlain Towers South condominium in Surfside, Florida, in June 2021. New York City's stricter environmental laws and New Jersey's updated structural safety standards are prime examples of city and state mandates that can have serious financial impacts on associations, whether they comply or not. Concurrently, the federal Corporate Transparency Act's stringent reporting requirements and hefty financial penalties have led the Community Associations Institute (CAI) to advocate for exemptions for community associations.