—The Condo Committee
“N.J.S.A. 46:8B-12.1 sets forth the procedure for the administration of the association, and the eventual turnover of the condominium property to the association when unit owners shall be entitled to elect all of the members of the governing board upon conveyance of 75% of the units in a condominium.
“It appears that the developer continues to finance the association by covering any deficits or receiving surplus monies from the common expenses each year. The better practice would be for the association to create its own budget and all owners including the developer who presumably owns a majority of units in the association would contribute towards any deficit. If the association enacts a reasonable budget, it should not be running such a surplus or deficit each fiscal year. All of the unit owners are responsible for paying his or her share of common expenses based upon their percentage of undivided interest in the common elements. It appears that the developer is acting as a lender and continues to assert control over the association in this regard.
“I would suggest that the association create a budget so that all unit owners are contributing towards the expenses and avoid the builder supplementing or receiving a surplus each year.”