Legal Question in Real Estate Law in New Jersey

I live in a NJ 55+ community covered under NJAC 5:26 with only 25% of homes sold. We have been told by the developer-majority HOA Board that the annual budget must, by law, reflect a full build out cost. Our monthly maintenance fee is based on this budget which is 25% to 30% over actual annual costs. In actuality the 25% of sold homes is paying 36.5% of the actual costs. While the developer does give a subsidy, it is not 75% of the actual costs, but 63.5%. Is this, as the developer says, the way it should be done legally in NJ? Thank you.


Asked on 2/10/12, 12:32 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

I have not seen the documents, so I do not know how the calculation is to be made and if it is accurate. The documents should be reviewed and if the calculation is erroneous, litigation to correct it may be required.

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Answered on 2/11/12, 9:35 am


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