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FOR
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CONTACT:
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July 1, 2015
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Majority Press Office
609-847-3500
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Green Bill to Clarify Law Concerning Homeowners
Associations in Planned Real Estate Developments Gains Assembly OK
(TRENTON) –
Legislation sponsored by Assemblyman Jerry Green, chair of the Assembly Housing
and Community Development Committee, to modify regulations regarding planned
real estate developments and homeowners associations recently received approval
from the General Assembly.
Green cited recent court decisions as the motive for sponsoring the legislation
this session and indicated a need for clarification and adjustment to the laws
in this area.
“Access to meetings, records and information on ownership is the right of every
homeowner in these communities,” said Green (D-Middlesex/Somerset/Union). “This
bill would help to ensure homeowners remain clear on their investment and have
a seat at the table when decisions are made for their communities.”
The legislation (A-469) would make several modifications to the laws
which regulate planned real estate developments and the homeowners associations
formed to manage the commonly-owned property in such communities. The bill
would prohibit the mere titling of common property in the name of the
association from being construed as diminishing the ownership interests of unit
owners in the common or shared elements and facilities of a planned community.
In addition, the measure would require that common property ownership
interest be equal proportionately to the obligation of each unit owner to pay
for the maintenance of the common property, and that the sum of the common
property interests in the community is not to exceed 100 percent.
The bill also would require membership in the homeowners association to
be inherent for a purchaser of a home in such a planned community. Under the
bill’s provisions, standards are set for homeowners associations concerning
access to records and elections of members to the governing board of an
association. The legislation also eliminates closed-meeting working sessions of
an association's governing board to reflect the similar law currently
applicable to public governing bodies and provides for a recall procedure which
would authorize the removal of elected governing board members.
The bill would direct the Commissioner of Community Affairs, which
provides oversight to the associations, to distribute guidelines on the
election procedures and to promulgate, within 60 days, any rules or regulations
that may be necessary to effectuate the provisions.
The bill, which was approved 71-4-2 on Thursday, awaits Senate
consideration.
