Follow-up - OBSC1 Fairness Hearing | May 27, 2026

OBSC1 Members:

We are writing this letter to keep you updated relative to the May 27, 2026 “Fairness Hearing” before Judge Grasso. The Court confirmed the reasonableness of the settlement agreement entered between OBSC and Gross Family placed on the record on March 5, 2026 and otherwise memorialized by a signed “Settlement and Release Agreement” in April, 2026. Pursuant to such settlement, a settlement payment of $135,000 was made – of which $130,000 was paid by the insurance company. Such payment was a business decision made by the insurance company for purposes of cost avoidance.

While the Court declined to make any finding, either positive or negative, relative to the governing documents of OBSC, the Appellate Division was clear that OBSC has the right to make rules and regulations for the benefit of the community at the fairness hearing. Fundamentally, Judge Grasso abstained from ruling on the validity or invalidity of the OBSC height regulations based upon the pending effectiveness of the NJDEP regulations (the “REAL” rules) which take effect on July 20, 2026. These regulations allow for increased heights of buildings located in flood prone areas.

As explained by counsel for OBSC to Judge Grasso, it had been and remains the intention of the OBSC Board to present the issue of height regulation directly to the OBSC community. Certainly there are pros and cons to building height regulations. With the upcoming NJDEP height regulations likely going into effect on July 20, 2026, and the Gross Family and OBSC litigation settled, the community can now determine the issue of setting a height regulation.

It is the Board’s intention to discuss and provide the OBSC community with its options at the upcoming June 13, 2026 membership meeting. It is the Board’s intention to shortly after the June 13, 2026 meeting take a poll of the entire membership which will assist the Board on how best to address the height regulations of homes within the OBSC community.

The Board looks forward to facilitating this discussion and is happy to be able to collaborate with members to decide, as a community, the issue of height regulation without any impediments or concerns.

All constructive participation is welcome. We look forward to your input.

-TRUSTEES