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CHAPTER 106

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CHAPTER 106 FREQUENTLY ASKED QUESTIONS

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In an attempt to help those members of our community better understand Chapter 106; please find below a few questions and answers that were recently asked of us.  We hope this helps in the short term. We will continue to provide additional Q's & A's as they come to us.

The CLCC actually opened up membership to outsiders so how does that play in?

As noted above, Chapter 106 is applicable to the originally filed maps and master deeds of the Cranberry Lake Development Company planned real estate development. We are also subject to the terms of the State lease. Class B (“Beach Tenant”) and Class C (“Extended Boundaries”) members were not part of the original CLCC planned real estate development. Although we continue to offer these classes of membership, Class B and C members do not have full membership privileges, are not permitted to vote and cannot run for a Board Position



How can I get a copy of the Master Deed that I keep hearing about?

The master deed, and any other deed involving Sussex County real estate, is on file at the Sussex County Clerk’s office. They have a searchable database of virtually every deed on file going back to about the mid-1940s, so you don’t even have to leave your house to see those. For deeds before that time, you physically have to go to the Clerk’s office during business hours. There should be someone there to assist in finding deeds. We’ve been calling it a “master deed” because that’s the language of the law (Chapter 106 and other laws relating to planned real estate developments). The documents for Cranberry Lake don’t necessarily say “master deed” on them, but they serve the legal function of a master deed. (This is similar to the way that what the law calls an “executive board” is in practice the “Board of Governors” at the CLCC.) The deeds involved (and there are more than one, probably because different sections of the lake were developed at different times) are the deeds from Susan Calkins to the Cranberry Lake Development Company. They cover the transfer of the land, how the subdivided house lots will be treated, the easements and common interest properties, the fact that the easement runs with the land (even if it isn’t mentioned in subsequent deeds) and the requirement that if a house is sold, it has to be sold to another CLCC member. In other words, it’s basically the “how to” for physically setting up the Cranberry Lake Summer Colony. None of this stuff is indented or in boldface so it will stand out, but it’s in there. It takes some searching to find it. An example of a master deed with restrictions can be found in the chain of title for 29 Meteor Trail, and can be found in the Suporting Documents section of this page.



Is every property located in South Shore Road and North Shore Road now considered members?

The ultimate governing authority as to which lots are covered by Chapter 106 is the original Cranberry Lake Development Company maps and Master Deed on file at the Sussex County Clerk’s office. Individual properties should be checked against these documents to see whether Chapter 106 applies to them.



I have been living at Cranberry Lake for 30 years. How come all of a sudden I have to join the CLCC?

Chapter 106 is a new addendum to a state law. CLCC has been told we must comply.



Are these “mandatory membership fees” retroactive to the time I bought my house?

No



Isn’t this “mandatory membership” attempt the same as the legal action (& lawsuit) that the CLCC tried in the 1980s?

No. Chapter 106 is a new law and is in no way connected to the 1980s legal action.



I can see where the presence of the CLCC improves the surrounding area. Even so, there is nothing the CLCC offers that I’m interested in. Can’t I just pay a portion of the membership fees that help enhance the property values?

No



As a CLCC member, I am concerned about costly legal fees when local residents challenge the mandatory membership. Can you address those concerns?

Yes. As Chapter 106 was an action of the state of New Jersey and not the CLCC, it is our intent to ask to be reimbursed for court costs if taken to court, especially if Chapter 106 is upheld by the courts. When Chapter 106 became effective in November, the case of Ramapo Mountain Lakes vs. the Property Owners was already in court. The attorneys involved had to redraft their motions, and the judge told all involved that the new law hurt the property owners’ case dramatically.



In the past you mentioned a Fair Share approach within the lake community. Is this that?

No. The Fair Share Assessment is a legal action taken by some associations to collect partial dues from all residents. The CLCC has taken no action towards a Fair Share Assessment.



Your letter to the Cranberry Lake residents said that beginning in 2019, the CLCC will ensure all residents are members in good standing. What will the CLCC do if the residents are not members in good standing?

After efforts to collect delinquent dues have failed, per the bylaws (Article V, Section 1, A., iii. on p. 10) the CLCC will place a lien on your property for the amount of the dues owed. This procedure is used by other area associations. In the case of Lake Shawnee, this procedure was appealed twice, and the courts still upheld the community’s right to take such action.



I have 2 houses. Do I have to pay twice?

Yes, if both houses are within the boundaries of the Cranberry Lake Development Company maps.



I have a house in Cabin Springs and an undeveloped lot/property in Weaver House Cove? Do I have to pay twice?

I have been advised by counsel that the NJ Administrative code pertaining to Ch. 106 is currently being developed and this is one of the questions being addressed.



Are these membership fee really taxes, and if so, are they deductible on my income taxes?

No, they are not taxes, and as such, are not deductible.



When I read the information about Chapter 106, the law seems to revolve around a “common interest community association” such as a condominium, cooperative,or homeowners’ association. How does the CLCC fit into these categories?

The CLCC was organized by the Cranberry Lake Development Company in 1925 as a homeowners association to maintain Cranberry Lake, and thus, per counsel, the CLCC is considered a homeowners association subject to the provisions of Ch. 106.



Chapter 106 outlined various association and member provisions regarding boards, meetings, elections, member status, etc. Is the CLCC compliant with the provisions in Chapter 106?

Yes, as a result of the actions of the Board of Governors to amend the bylaws as outlined earlier in this presentation, the CLCC is in compliance with Chapter 106.



Can my renter pay my dues?

A renter may pay an owner’s dues, but the membership would be in the owner’s name and not the renter’s name as the dues are for the property not the current resident. The owner is responsible for all individuals using his membership.



Is the club still going through with mandatory membership even though the intent of Chapter 106 is being challenged?

As we have since the beginning and will continue to do so; we are following the advice of counsel on the existing law which is to proceed with the requirements of Chapter 106 which has already been upheld by the Superior Court of New Jersey whose decision may be found on the club website.



There is talk about the club not being able to cover their financial obligations. Is this true?

The club is financially solvent per the financial report approved by the membership and made available at the 2018 Annual Meeting in August. The clubs current financial reports can be found on the members page.



How soon will liens be filed?

No earlier than September 2019 and only after an extended dunning process.