A5046

An Act establishing a task force to study the laws governing common interest communities.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. There is established the “Common Interest Community Task Force.” The purpose of the task force is to study the laws governing common interest communities within subject areas including but not limited to their functions, responsibilities, assessment collection practices, and general oversight regarding election practice, financial decisions and contractual relationships with community association managers, and make recommendations for legislation to create more effective and efficient policies regarding common interest communities.

2. The task force shall consist of 13 members as follows:

a. two members of the Senate, one of whom shall be appointed by the President of the Senate, and one of whom shall be appointed by the Senate Minority Leader;

b. two members of the General Assembly, one of whom shall be appointed by the Speaker of the General Assembly, and one of whom shall be appointed by the Assembly Minority Leader;

c. the Commissioner of Community Affairs, or a designee of the commissioner, who shall serve ex officio;

d. one member appointed by the Chief Justice of the New Jersey Supreme Court; and

e. seven public members, who shall be appointed by the Governor, as follows: a representative of community association managers; a representative of builders of planned real estate developments; a representative of condominium associations; a representative of cooperative associations; a representative of homeowners’ associations other than condominiums or cooperatives; a member with general knowledge of common interest communities and their functions, but who is not a member of a common interest community’s governing board; and a member with general knowledge of common interest communities and their functions, who is also a member of a common interest community’s governing board.

3. Vacancies in the membership of the task force shall be filled in the same manner provided for the original appointments. The members of the task force shall serve without compensation but may be reimbursed for traveling and other miscellaneous expenses necessary to perform their duties, within the limits of funds made available to the task force for its purposes.

4. The Commissioner of Community Affairs shall provide professional and clerical staff to the task force as necessary to effectuate the purposes of this act.

5. The task force may meet and hold hearings at such places as it shall designate during the sessions or recesses of the Legislature.

6. The task force shall complete its first meeting, and appoint a chairperson, within 60 days of the effective date of this act. The task force shall present a report of its findings and recommendations to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on or before the first day of the sixteenth month next following the organization of the task force. The task force shall dissolve following the presentation of the report.

7. This act shall take effect immediately.

STATEMENT

This bill creates a 13-member task force, to be known as the “Common Interest Community Task Force.” The purpose of the task force is to study the laws governing common interest communities regarding their functions, responsibilities, assessment collection practices, election practice, financial decisions and contractual relationships with community association managers. As their study concludes, the task force would make recommendations for legislation to create more effective and efficient policies regarding common interest communities.

In 1998, the Assembly Task Force to Study Homeowners’ Associations released a report recommending various statutory changes to enhance homeowner protection, but the document’s recommendations are generally unfulfilled. This bill would establish a similar task force to revisit many of the same issues surrounding common interest communities, a term that encompasses condominiums, cooperatives, and homeowners’ associations.

The task force would consist of two members each of the Senate and General Assembly, of whom one would be appointed by the Senate President, the Senate Minority Leader, the Speaker of the General Assembly and the Assembly Minority Leader respectively. The Commissioner of Community Affairs, or their designee, would serve ex officio, and the Chief Justice of the New Jersey Supreme Court also would appoint one member. Finally, seven public members would be appointed by the Governor, as follows: a representative of community association managers; a representative of builders of planned real estate developments; a representative of condominium associations; a representative of cooperative associations; a representative of homeowners’ associations other than condominiums or cooperatives; a member with general knowledge of common interest communities and their functions, but who is not a member of a common interest community’s governing board; and a member with general knowledge of common interest communities and their functions, who is also a member of a common interest community’s governing board.

The bill provides that vacancies in task force membership would be filled in the same manner as the original appointments. The members of the task force would serve without compensation, but may be reimbursed for traveling and other miscellaneous expenses. The bill directs the Commissioner of Community Affairs to provide professional and clerical staff to the task force as necessary.

The bill directs the task force to complete its first meeting, and appoint a chairperson, within 60 days of enactment, and present a report of its findings and recommendations to the Governor and Legislature by the first day of the sixteenth month next following its organization. The task force would dissolve following the presentation of the report.