We explain HOA law in plain English, but we are not your lawyer and this is not legal advice. Here is why that matters.

New Jersey HOA members can claim severance damages when a shared beach is condemned

New Jersey HOA members can claim severance damages when a shared beach is condemned
New Jersey · Courts

New Jersey HOA members can claim severance damages when a shared beach is condemned

When New Jersey condemns a shared beach lot owned by a homeowners association, the association's compensation is not the end of the matter.

State of New Jersey (Department of Environmental Protection) v. 2.150 Acres of Land, Bayhead Point Homeowners Association, Inc., and Scaduto, D'Auria, et al., Docket A-2438-24, was argued November 5, 2025 and decided November 24, 2025, on leave granted from an interlocutory order. Unpublished, not precedential under R. 1:36-3.1

What was taken

The DEP condemned a storm-damage-reduction easement over a beach lot owned by the association. Individual association members held non-exclusive recreational and access easements over that lot.

The holding

The panel affirmed denial of summary judgment to the DEP. Individual members holding those easements retain a "beneficial owner" interest sufficient for "unity of ownership," and may pursue severance damages — diminution in the value of their own homes — before a jury, separately from the association's own condemnation award.

Why the DEP resisted it

Because the alternative is the ordinary condemnation model: the State takes an interest in a parcel, pays the record owner, and the matter ends. Here the record owner is an association, and the beneficial use of the parcel is distributed across the households whose property values depend on it.

The decision holds that the association's title does not absorb the members' interests for compensation purposes.

✓ Your New Jersey State Pass is active — the full analysis below is unlocked

The doctrine, and the term that carries it

"Unity of ownership" is the condemnation concept that determines whether two parcels — or two interests — are treated as one property for the purpose of severance damages. Where a taking from one parcel reduces the value of another held in the same ownership, the owner is compensated for the reduction, not just for what was taken.

The move the panel made is to treat an easement holder's interest in an association-owned common lot as the kind of interest that satisfies that unity. That is not a small step. It converts the recorded easement in the members' deeds from a use right into a compensable property interest.

Where this bites for New Jersey associations

New Jersey has a long shoreline, an active beach-replenishment and storm-damage-reduction programme, and a great many oceanfront and bayfront communities whose beach, dune, dock or marina lots are held by the association with members' easements recorded over them.

The same structure recurs inland: lake associations, shared open space, private recreation parcels. Any of those can be condemned in whole or part for flood control, road widening, utility corridors or environmental easements.

The decision means that when it happens, the compensation question is not answered by looking at the association's deed alone.

The practical problem it creates for boards

This is the part that matters before a condemnation arrives rather than during one, because it is genuinely awkward.

An association negotiating a condemnation award is not negotiating on behalf of an undivided membership. Members with waterfront homes, members whose views or access are directly affected, and members three streets back have materially different severance exposure — and the decision confirms they can pursue it individually.

A settlement the board thinks is good for the association may be indifferent, or adverse, to a subset of members with independent claims. Boards in that position should be taking advice early on whether the association can settle at all without prejudicing members, and on what it must disclose to them.

The recorded easement is the asset

Everything here turns on the members actually holding recorded non-exclusive easements over the lot. Communities where access to the common beach or lake rests on membership alone, on a licence, or on long practice rather than a recorded instrument are in a different position.

That is a document question worth answering in advance. It bears on resale disclosure as much as on condemnation: whether a buyer is acquiring a recorded property right in the shared amenity or a revocable privilege is not a detail.

Scope

This was an interlocutory appeal from a denial of summary judgment, so nothing has been decided about what any member will actually recover. The holding is that the claims may go to a jury, separately from the association's. That is a procedural ruling with substantive consequences, and it is as far as the decision goes.

Related New Jersey HOA Topics

← All New Jersey HOA Topics

  1. State of New Jersey (DEP) v. 2.150 Acres of Land, Bayhead Point Homeowners Association, Inc., A-2438-24 (App. Div. Nov. 24, 2025) (unpublished), opinion PDF

Stay on top of New Jersey HOA law

Every week: new New Jersey legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.

Check your inbox to complete your sign up.

No spam. Unsubscribe anytime.