FORGES AT DENVILLE CONDOMINIUM ASSOCIATION, INC. POLICY RESOLUTION NO. RELATING TO LEASING OF UNITS

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1 Prepared by: Arnold J. Calabrese, Esq. Return to: LAW OFFICES OF ARNOLD J. CALABRESE A Professional Corporation 25B Hanover Road, Suite 120 Florham Park, New Jersey FORGES AT DENVILLE CONDOMINIUM ASSOCIATION, INC. POLICY RESOLUTION NO. RELATING TO LEASING OF UNITS WHEREAS, this Resolution is made this day of, 2008, by FORGES AT DENVILLE CONDOMINIUM ASSOCIATION, INC., a New Jersey non-profit corporation, located in the Township of Denville, County of Morris and State of New Jersey; and WHEREAS, by Master Deed dated April 17, 2003 and recorded on April 30, 2003, and as amended, in the Office of the Morris County Clerk in Deed Book 5831, Page 88 et. seq., Forges at Denville, A Condominium (hereinafter the Condominium ) has been established upon certain lands in the Township of Denville, County of Morris and State of New Jersey, all pursuant to N.J.S.A. 46:8B-1, et seq; and WHEREAS, the Board of Directors feels in the best interest of the Association to add this Resolution as an Addendum to its Master Deed and By-Laws; and WHEREAS, the Governing Documents empower the Board to adopt, amend and publish rules and regulations covering the operation and use of the general common elements and residential limited common elements; and WHEREAS, N.J.S.A. 46:8B-13(d) of the Condominium Act of New Jersey provides that the By-Laws of an Association may also provide a method for the adoption, amendment and enforcement of reasonable administrative rules and regulations, including the imposition of fines and late fees which may be enforced as a lien pursuant to section 21 of P.L.1969, c.257 (C.46:8B-21) relating to the operation, use, maintenance and enjoyment of the units and of the common elements including limited common elements; and WHEREAS, Section 5.11 (A) of the By-Laws grants the Board the authority to adopt Rules and Regulations that supplement or are in addition to the restrictions on the Owners use of the Common Elements. As long as such Rules and Regulation s are consistent with the intent and purposes set forth herein, they are not deemed to be Amendments; and WHEREAS, the Governing Documents permit leasing of units by Unit Owners; and WHEREAS, Paragraph 2.17 of the Master Deed defines Leases as follows: Any agreement for the leasing, rental, subleasing, use or occupancy of a Unit, other than the conveyance of title thereto, regardless of the name given to such agreement. All such Leases executed after the date of the recording of this Master Deed are automatically deemed to include Article 4.0[5] of the Bylaws entitled [Leases and Assignment of Lease and Rents, Right to Evict]; (Note: Article 4.05 is miss Page 1 of 12

2 numbered as 4.06 and misnamed as Leases, Assignment of Leases and Rents, Right to Evict. ); and WHEREAS, Article of the Master Deed sets forth rental restrictions as follows: Rental Restrictions on Units Units must not be rented or used by their Owners for transient or hotel purposes, which is defined as (a) rental for any period of less than 180 days or (b) rental if the Unit s occupants are provided customary hotel services, such as room, food and beverage, maid, laundry, linen or bell hop. Other than the foregoing restriction and the requirement that not less than the entire Unit may be leased during any applicable time period, Unit Owners (including the Developer and its Affiliates and mortgagees-in-possession) have the absolute right to lease any Unit. All leases must be in writing; must comply with the notice provisions of N.J.S. 2A: ; and must state that their terms are subject to the covenants, conditions and restrictions contained in this Master Deed, Bylaws, the Rules and Regulations and the Condominium Act. Failure by the lessee to comply with the terms of those documents is a default under the lease. Each lease must contain the assignment of lease, rent and other language required by and set forth in the Bylaws, Article If a Unit lessee fails to comply with the provisions of this Master Deed, Bylaws, Rules and Regulations or the Condominium Act, then, in addition to all other remedies which it may have, the Association may notify the Unit Owner of the violation and demand it be remedied through the Unit Owner s efforts within thirty (30) days after the notice. If the violation is not so remedied, then the Unit Owners at their own expense must immediately thereafter institute and diligently prosecute an eviction action against their lessee or other Unit occupant on account of such violation. Such action must not be compromised or settled without the prior written consent of the Board or its designee. If the Unit Owner fails to undertake or complete the foregoing, then the Board has the right, but not the duty, to institute and prosecute such action as attorney-in-fact for the Unit Owner at the Unit Owner s sole cost and expense, including all costs and attorney and paraprofessional fees incurred. Those costs and expenses will constitute a lien on the particular Unit. Collection therein may be enforced by the Board in the same way as the Board enforces collection of assessments. By accepting a deed to any Unit, each Unit Owner automatically and irrevocably names, constitutes, appoints and confirms the Board as their attorney-in-fact for the purposes described in this Paragraph Failure of the Board to act under its above rights is not a waiver of same. Unit Owners do not have the right to use the Common Elements and common facilities during any period that their Unit is occupied by others or leased to third parties. WHEREAS, Article 4.05 (A) of the Bylaws provides: (A) Every Unit not occupied by one or more of its record Owners must be the Page 2 of 12

3 subject of a written lease memorializing the terms of the parties understanding as to occupancy and signed by the Unit Owner and occupant. If it is silent as to rent or use and occupancy fees, the reasonable market rate for comparable rentals in the general geographic area will be imputed; and WHEREAS, Article 4.05 (B) of the Bylaws provides: (B) All leases must be subject to and include the following terms: The owner (or landlord, as applicable) assigns to The Forges at Denville Condominium Association, Inc. in which the owner is a member (herein referred to as the Association ), all right, title and interest in, to and under the lease together with all rents or other monies payable to the owner by the tenant up to the amount of common expense or other assessments or other obligations due from the owner to the Association. Despite this assignment, the owner is free to collect all rents or other monies due from the tenant unless and until the owner is delinquent in payment of assessments or other obligations owed to the Association. If the owner is so delinquent, and such delinquency continues for ten (10) or more days after the owner s receipt of written notice from the Association to cure the delinquency, the Association is authorized to: enter the unit being leased; notify the tenant in writing of the owner s delinquency, the terms of this rent assignment, and of the Association s exercise of its right to collect in the owner s name as assignee any rents accrued and unpaid as well as the rents thereafter accruing and becoming payable until the owner is no longer delinquent and the Association notifies the owner and the tenant of same in writing. Upon receipt of written demand from the Association pursuant to the terms hereof, every tenant must remit the rent due under their lease to the Association and the rents thereafter accruing, without being obligated to determine whether the owner is in fact delinquent in the payment of assessments or other obligations to the Association. The owner agrees that all payments made by the tenant to the Association as per the terms hereof shall fully and completely discharge the obligations of the tenant to the owner under the lease. The owner further agrees that the Association is not responsible for the control, care or management of the unit or for carrying out any of the owner s duties as landlord as set forth or implied from the lease or imposed by law; and that the Association and its officers, servants, agents and employees will in no event be liable to the tenant or others by reason of any loss, injury or damage sustained because of any dangerous condition existing in the unit or exercising the rights hereunder. The Board of Trustees of the Association may, on a case by case basis, agree to subordinate its rent assignment rights to an institutional mortgagee upon request by same. Each owner hereby names and constitutes the Association as the owner s Attorney-in-Fact irrevocably for the purpose of taking any legal action against tenants or other occupants in the unit, including eviction pursuant to N.J.S. 2A:18-61, et seq. This Power-of Attorney may be exercised by the Association if Page 3 of 12

4 the tenant violates any of the provisions of the Master Deed, Bylaws or Rules and Regulations of the Association provided that the owner has not commenced an action to cure the violation of the Master Deed, Bylaws or Rules and Regulations within ten (10) days of receipt of notice same from the Association. This Power-of- Attorney is to enable the Association to exercise against the tenant each right which the Association may have to enforce the Master Deed, Bylaws, or Rules and Regulations. If the Board of Trustees of the Association takes any such action, it may recover back against the owner any costs and expenses of such action, including but not limited to reasonable attorney and paraprofessional fees and costs. WHEREAS, the Board deems it to be in the best interest of the Association to adopt a strict and comprehensive policy and procedure regarding the leasing of Units to ensure compliance with federal, state, county or municipal authorities and the Governing Documents, including Rules and Regulations, by Owners and Tenants and to provide for accurate record keeping, and for this Resolution to revoke and take the place of any and all previously adopted Resolution(s), Rules and/or Regulations related to the rental or leasing of Units. NOW THEREFORE, be it resolved that the Board of Directors approves of and adopts the following Policy Resolution relating to the rental or leasing of units: 1. All Condominium Units that are rented must have a written lease. 2. All leases shall provide that the lease is subject to the terms and conditions of the Master Deed, By-Laws and Rules and Regulations, and shall provide for a minimum lease term of not less than one-hundred and eighty (180) days. No Unit shall be leased by the Owner for transient or hotel purposes which shall be defined as any rental period of less than onehundred and eighty (180) days and any rental if the occupants of the Unit are provided customary hotel services, such as room, food and beverage, maid service, furnishing, laundry and bellboy service. A transient tenancy shall also be defined as occurring when representatives of a business entity reside in a Unit on a periodic basis. 3. No Owner may lease less than the entire Unit. The Unit may only be used for normal residential living purposes. 4. All Unit Owners desiring to rent, lease or otherwise permit another individual(s) to occupy their Unit must have their prospective tenant(s) and/or occupant(s) complete the Rider to Unit Lease form attached hereto as Exhibit A and the Child Protection Window Guard Notification form attached hereto as Exhibit B. The Unit Owner shall be responsible for delivering to the Association s management office completed and signed Lease, Rider to Unit Lease, and Child Protection Window Guard Notification forms along with a nonrefundable processing fee of $100.00, a minimum of ten (10) calendar days prior to the start of the rental period or occupancy, whichever applies. The non-refundable processing fee of $ will be due each time a new Lease is entered into and/or upon any renewal of an existing Lease. The Unit Owner shall also deliver to the Association s management office Page 4 of 12

5 a copy of the new/renewed Lease, Rider to Unit Lease and Child Protection Window Guard Notification form along with the non-refundable processing fee of $ a minimum of ten (10) calendar days prior to the start of the new/renewal rental period or occupancy, whichever applies. 5. Unit Owners who fail to deliver to the Association s management office a copy of the new/renewed Lease, Rider to Unit Lease, Child Protection Window Guard Notification form and non-refundable processing fee, will be subject to a $ fine for each thirty (30) calendar day period of noncompliance. 6. When a Unit Owner rents, leases, or permits occupancy to two (2) or more unrelated persons, each person must sign the Lease, Rider to Unit Lease form and Child Protection Window Guard Notification form. However, only one (1) processing fee must accompany the forms if submitted at the same time. Furthermore, if any occupant shall move out of the Unit prior to completion of the rental period, the Unit Owner must have the new tenant(s) submit a new Rider to Unit Lease form and Child Protection Window Guard Notification form and include the processing fee even though only one (1) person (tenant) may have moved. If the number of occupants living in a Unit differs from that stated in the Rider to Unit Lease, the tenant will be deemed in breach of his lease and subject to eviction. 7. Any lease for a Unit shall provide that if required by the Municipality or State, the Unit Owner shall provide at the tenant s expense, a window guard for each window and/or sliding glass door in the Unit. Currently the law requires that if a tenant has children under ten (10) years of age or younger and requests window guards the Unit owner is required to install same. The style of said window guard(s) shall comply with the Municipal and/or State regulations and will be subject to approval by the Board of Directors. The Tenant may waive, in writing, the Unit Owner s requirement that the Unit Owner install the window guards. A form of waiver is included on the Child Protection Window Guard Notification form attached as Exhibit B. The Unit Owner shall also provide, on a yearly basis, a notice to the Tenant that the Tenant may request window guards, or waive said requirement. 8. During the term of any lease, the Unit Owner gives up any right to use the Common Elements and common facilities. The tenant/occupant has the right to use the Common Elements and facilities during the period of the lease, subject to compliance with this Leasing Resolution and the Association s Governing Documents. 9. The Unit Owner shall ensure that the leased Unit has a valid Certificate of Occupancy issued by the municipality, or other regulatory agency, if required by them, and must provide a copy to the Association. The Unit Owner shall also ensure that, at all times, the Unit complies with all local zoning ordinances, including but not limited to, the number of individuals which may reside in the Unit. 10. Each Unit Owner shall inform his prospective tenant(s) and/or occupant(s) that the tenant(s) and/or occupant(s) is/are obligated to abide by the Master Deed, By-Laws and rules and regulations of The Forges at Denville Condominium Association, Inc. The Unit Owner must notify and provide to the tenant(s) and/or occupant(s) any and all Association notices, Page 5 of 12

6 newsletters or other communications that concern all residents of The Forges at Denville Condominium Association, Inc. 11. Should the Unit Owner become delinquent in his maintenance fees or other charges, the Association may request that a tenant make payment to the Association of the rent and that the Association will apply same to the Unit Owner s outstanding balance. Any surplus will be sent to the Unit Owner. Failure of the tenant to make payment of rent to the Association, upon request by the Association in the event of a Unit Owner s delinquency, will be a violation of these rules and regulations and subject to the remedies set forth herein. 12. The Unit Owner is at all times responsible for the cost to make or reproduce keys or remote entry devices for owners and tenants, as well as all membership dues, assessments and fines, owed to the Association. The collection of these amounts shall be subject to the procedures in effect governing the collection of delinquent accounts. 13. Should the tenant(s) and/or occupant(s) fail to fully comply with the provisions of the Master Deed, By-Laws or rules and regulations of The Forges at Denville Condominium Association, Inc. or this Resolution, then, in addition to all other remedies that it may have, the Association shall notify the Unit Owner of such default(s) and demand the same be cured through the Unit Owner s efforts within thirty (30) calendar days after such notice. If such default(s) is not cured within said thirty (30) calendar day period, then the Unit Owner shall immediately thereafter, at his own cost and expense, institute and diligently prosecute an eviction action against his tenant(s) and/or occupant on account of such default(s). Such action shall not be compromised or settled without the prior written consent of the Association. In the event the Unit Owner fails to fulfill the foregoing obligation, then the Association shall have the right, but not the duty, to institute and prosecute such action as attorney-in-fact for the Unit Owner, at the Unit Owner s sole cost and expense, including all legal fees incurred. Said costs and expenses shall be deemed to constitute a lien on the particular Unit involved, and collection thereof may be enforced by the Association in the same manner as the Association is entitled to enforce collection of common expenses. By acceptance of a Deed to any Unit, each and every Unit Owner does thereby automatically and irrevocably name, constitute, appoint and confirm the Association as the attorney-in-fact for the purposes described in this paragraph. 14. The Board of Directors may exercise any and all of its rights permitted by law and The Forges at Denville Condominium Association, Inc. governing documents. 15. In all references herein to any Unit Owner, the use of any particular gender of the plural or singular number is intended to include the appropriate gender or number as the text of this Resolution may require. 16. Any word(s) in the singular is to include the plural. Any word(s) in the plural is to include the singular. 17. For the purposes of this Resolution the words lease and rent and/or any derivations of said words are intended to be interchangeable and shall have the same meaning. Page 6 of 12

7 CERTIFICATION I hereby certify that the foregoing Resolution was duly adopted at a regular meeting of the Board of Trustees of THE FORGES AT DENVILLE CONDOMINIUM ASSOCIATION, INC. held on the day of, STATE OF NEW JERSEY ) ) ss: COUNTY OF MORRIS ), Secretary, President BE IT REMEMBERED that on this day of, 2008, before me, the subscriber, a Notary Public or an Attorney at Law of the State of New Jersey, personally appeared and, President and Secretary respectively, of The Forges at Denville Condominium Association, Inc., a New Jersey nonprofit corporation, who, I am satisfied, are the persons named in and who executed the within Instrument, after notice and meeting upon a vote of the membership in accordance with the Condominium Instruments, and thereupon they acknowledged that they signed, sealed and delivered the same as the act and deed of the Association for the uses and purposes therein expressed. Notary Public or Attorney at Law of the State of New Jersey Page 7 of 12

8 EXHIBIT A RIDER TO UNIT LEASE This Rider to Unit Lease is made and entered into this day of, 200, by and between (hereinafter referred to as Unit Owner ), whose address is and (hereinafter referred to as Tenant or Occupant ), whose address is. It is agreed and understood as follows: 1. ASSOCIATION PROVISIONS The Unit Owner assigns all rights and privileges associated with occupancy of such Unit Owner s dwelling ( Unit ) in The Forges at Denville Condominium Association, Inc., ( Association ) to the Tenant, except as specifically set forth below. However, the Unit Owner exclusively retains the right to vote, to affect the ownership interest, to hold office in the Association and to receive insurance and other awards and proceeds. In addition, the Unit Owner remains liable for the payment of any common expense assessment and fines imposed against such Unit and/or Tenant. The Unit Owner will be liable for the acts of Tenants and occupants (collectively referred to as Tenant ) of the Unit or for the acts of employees during the course of work contracted for by the Tenant or occupant. Tenant agrees to abide by the terms and conditions of the governing documents for the Association ( Governing Documents ). The default of any requirement applicable to Tenant under the Governing Documents, including Resolutions, is a default of this Rider and the Lease. The Tenant acknowledges receipt of a copy of the Governing Documents. The Tenant also understands that the Association can take enforcement action directly against the Tenant for breach of the Governing Documents as if it were the Unit Owner. The Association may also levy fines and other penalties against the Tenant, as well as the Unit Owner. The owner (or landlord, as applicable) assigns to The Forges at Denville Condominium Association, Inc. in which the owner is a member (herein referred to as the Association ), all right, title and interest in, to and under the lease together with all rents or other monies payable to the owner by the tenant up to the amount of common expense or other assessments or other obligations due from the owner to the Association. Despite this assignment, the owner is free to collect all rents or other monies due from the tenant unless and until the owner is delinquent in payment of assessments or other obligations owed to the Association. If the owner is so delinquent, and such delinquency continues for ten (10) or more days after the owner s receipt of written notice from the Association to cure the delinquency, the Association is authorized to: enter the unit being leased; notify the tenant in writing of the owner s delinquency, the terms of this rent assignment, and of the Association s exercise of its right to collect in the owner s name as assignee any rents accrued and Page 8 of 12

9 unpaid as well as the rents thereafter accruing and becoming payable until the owner is no longer delinquent and the Association notifies the owner and the tenant of same in writing. Upon receipt of written demand from the Association pursuant to the terms hereof, every tenant must remit the rent due under their lease to the Association and the rents thereafter accruing, without being obligated to determine whether the owner is in fact delinquent in the payment of assessments or other obligations to the Association. The owner agrees that all payments made by the tenant to the Association as per the terms hereof shall fully and completely discharge the obligations of the tenant to the owner under the lease. The owner further agrees that the Association is not responsible for the control, care or management of the unit or for carrying out any of the owner s duties as landlord as set forth or implied from the lease or imposed by law; and that the Association and its officers, servants, agents and employees will in no event be liable to the tenant or others by reason of any loss, injury or damage sustained because of any dangerous condition existing in the unit or exercising the rights hereunder. The Board of Trustees of the Association may, on a case by case basis, agree to subordinate its rent assignment rights to an institutional mortgagee upon request by same. 2. COMMON ELEMENTS The Common Elements are provided to accommodate the residents of the Association. To the extent permitted by law, the Tenant may use those areas subject to the Governing Documents and the policies of the Board. 3. INJURY, DAMAGE OR LOSS The Tenant promises to give the Unit Owner and the Association prompt notice of any accident or injury occurring on Condominium property and defects in the water pipes, gas pipes, heating apparatus, or other equipment or appliances in or servicing the Unit. 4. RIGHT TO ENTER THE UNIT Authorized agents of the Association or persons designated by a member of the Board may enter the Unit without the consent of the Tenant in case of emergency. Authorized agents of the Association may enter the Unit with the Tenant s consent at reasonable times after giving reasonable oral and/or written notice. Such entries may be made to inspect the Unit, to make necessary or agreed-to repairs, alterations, improvements, inspections, or to supply necessary or agreed-to services. The Association shall have all other rights to enter the Unit as may be provided by law. The Association shall not be responsible for any damage resulting from such entries, except damage caused by its own gross negligence. 5. DAMAGE CAUSED BY TENANT The Tenant and Unit Owner are jointly liable to the Association for any damage caused by Page 9 of 12

10 the Tenant or their guests, family, agents, invitees or employees of the Tenant. 6. ALTERATIONS The Tenant will make no alterations, additions, or improvements to the Unit or Common Elements without the prior written approval of the Board. The Association must also approve the time and manner of performing any work that is approved. 7. RULES The Tenant will comply with the rules and regulations of the Association. These rules and regulations may be modified or supplemented by the Association from time to time. The tenant will also comply with municipal and/or county ordinances regulating the number of people allowed to reside within a Unit. 8. POWER OF ATTORNEY Each owner hereby names and constitutes the Association as the owner s Attorney-in-Fact irrevocably for the purpose of taking any legal action against tenants or other occupants in the unit, including eviction pursuant to N.J.S. 2A:18-61, et seq. This Power-of Attorney may be exercised by the Association if the tenant violates any of the provisions of the Master Deed, Bylaws or Rules and Regulations of the Association provided that the owner has not commenced an action to cure the violation of the Master Deed, Bylaws or Rules and Regulations within ten (10) days of receipt of notice same from the Association. This Power-of-Attorney is to enable the Association to exercise against the tenant each right which the Association may have to enforce the Master Deed, Bylaws, or Rules and Regulations. If the Board of Trustees of the Association takes any such action, it may recover back against the owner any costs and expenses of such action, including but not limited to reasonable attorney and paraprofessional fees and costs. 9. UNIT OWNER S FAILURE TO PAY ASSOCIATION DUES If a Unit Owner is in arrears of his dues or other fines and assessments, the Association may request that the Tenant make rent payments to the Association and that the Association will apply same to the Unit Owner s outstanding balance. Any surplus will be sent to the Unit Owner. Failure of the Tenant to make payment of rent to the Association, upon request by the Association in the event of a Unit Owner s delinquency, will be a violation of these rules and regulations and subject the Tenant to the remedies set forth herein. 10. OCCUPANTS The Unit will be occupied by no more than person(s), whose name(s) are listed below for identification purposes for Association record keeping: (please print legibly) (please print legibly) (please print legibly) (please print legibly) Page 10 of 12

11 IF PERSONS OTHER THAN THOSE LISTED ABOVE RESIDE IN THE UNIT THE TENANT WILL BE IN VIOLATION OF THIS RIDER AND/OR LEASE AND SUBJECT TO EVICTION 11. PETS The Unit Owner has agreed to permit the Tenant to keep only one (1) domestic pet listed and described below, if any, subject to the rules and regulations of the Association. (please print legibly) (please print legibly) 12. TERM OR LENGTH OF TENANCY: (Must be more than sixty (60) days). 13. COMMENCEMENT DATE OF TENANCY: (The date the Tenant will first move in.) 14. UNIT ADDRESS/NUMBER: 15. SIGNATURES: WITNESS: (Signature) UNIT OWNER (Signature) (print name) WITNESS: (Signature) (print name) TENANT (Signature) (print name) (print name) revised October 27, 2008 Page 11 of 12

12 EXHIBIT B CHILD PROTECTION WINDOW GUARD NOTIFICATION (Please read, sign and return this form with your lease) Pursuant to P.L. 1995, c.120, N.J.S.A. 55:13A-7.12 et seq., multiple dwelling owners are required to provide, install and maintain window guards in apartment and hallway windows above the first floor where children less than ten (10) years of age reside. The New Jersey Department of Community Affairs is currently considering modifying the regulations to also allow tenants to request window guards when children are regularly present for a substantial period of time. A written request for window guards from the Tenant is required. The cost incurred by the Landlord to purchase and install window guards, upon request by the Tenant, shall be solely the responsibility of the Tenant. Please sign one of the two acknowledgments below, indicating that you have received this notification and are (A) not interested in window guards; or (B) you have at least one (1) child under ten (10) and would like window guards installed at a cost of $ per window, which will be billed to you and due as additional rent. WINDOW GUARDS DECLINED I,, residing at, hereby acknowledge that I have received and read this notification and do not desire the installation of window guards. Date: (Tenant signature) WINDOW GUARDS REQUESTED I,, residing at, hereby acknowledge that I have received and read this notification. Consider this my written notice requesting that window guards be installed. I understand that by law, window guards are not permitted on fire escapes. I also understand that I will pay, as additional rent, $ for each window guard that is installed. Date: (Tenant signature) W:\Resolution\Forges at Denville\Leasing 2008.wpd Page 12 of 12