Quote from NJ HOA Info on July 23, 2024, 12:57 pm

Homeowner Associations Claim Scotch Plains Has Not Adequately Reimbursed Them for Snow Removal Costs

Residents of The Enclave and Village Park Court say reimbursement amounts are not high enough. Dispute is under litigation.

By Charlie Cangialosi III and John Mooney

Published July 22, 2024 at 6:00 PM

SCOTCH PLAINS, NJ -- Claiming that the Township has failed to reimburse them adequately for having to provide their own snow plow and other DPW services in their neighborhoods, residents of The Enclave at Shackamaxon and Village Park Court, have filed lawsuits against Scotch Plains.  Representatives of two associations stated their case during public commentary at the Township Council meeting on Tuesday, July 16.

Richard Schrader, a member of the Board of Directors for The Enclave Condominium Association, stated that the residents have been trying to obtain reimbursement for services they have had to pay for, such as street lighting and leaf, snow, and ice removal, for over the past seven years. Schrader said that Scotch Plains is required to provide these services through the New Jersey Municipal Services Act.

"The township has expressed no interest in getting to an agreement in a fair outcome or good faith negotiation process," said Schrader. "The township has repeatedly employed delaying tactics through its outside council, rather than holding direct discussions. Instead of a fair arrangement, the township has invented absurdly low reimbursement rates and adopted a take it or leave it attitude. The Enclave, unfortunately, was left with no choice but to file a lawsuit."

Schrader added: "Since 2010, at least 10 other associations have experienced under reimbursement, constituting a forfeiture of thousands of dollars."

Another resident, Nick Contos, president of the Village Park Court Association, also spoke at Tuesday's meeting, referring to the quality of services in his neighborhood as "inadequate."

"I think we pay proportionally more than a single family home pays tax wise, and yet our services are woefully lacking. We don't get the benefit of the services of a single family homeowner," said Contos. "I think just out of respect, you should go and look at what we're getting, which is an insignificant amount based on what we spend to upkeep our community, to make it look good, make it appealing to the town and to ourselves. Some kind of contribution to what we do and to our community should be looked at sincerely."

A town's reimbursement rate paid to homeowner associations is typically based on what the municipality pays for services, prorated for the amount of service provided (how many miles of plowing is done in the private community). Residents of the private communities pay for snow removal and other services through their maintenance fees.

"When it comes to snow removal, a community most likely pays more per mile for snow removal than a township does, but it will be reimbursed based on what the town pays," according to Cooperator News New Jersey newspaper. Associations are likely negotiating with private plowing companies that charge more for private jobs than a municipality pays its own employees or vendors who have negotiated a rate based on volume of work.

Township Attorney David L. Minchello advised members of the Township Council not to comment on the matter, since it is under litigation. He also described the allegations "inaccurate."

"The only thing said that is 100% correct is that there is litigation pending against the township with regard to what is the appropriate rate of reimbursement," said Minchello. "We're actively involved in that litigation. I encourage any members of Enclave to have their council reach out to my office, but I recommend to all members of the governing body that they not comment."