SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 2425

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 3, 2019

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 2425, with committee amendments.

      This bill, as amended, is based on the New Jersey Law Revision Commission’s Final Report Relating to the Uniform Common Interest Ownership Act, issued in October of 2016.  The bill would consolidate certain laws applicable to all types of common interest communities, a term defined to encompass homeowners associations, condominiums, and cooperatives.  The bill consists of portions of the Uniform Common Interest Ownership Act (“UCIOA”), a publication of the National Conference of Commissioners on Uniform State Laws.  The bill would codify the less controversial aspects of UCIOA, such as those relating to community creation, alteration, and termination, the content of governing documents, the delineation of unit boundaries and common elements, the taxation of common property, eminent domain, the effect of local ordinances, and lender rights.

      The bill establishes a new chapter within Title 46 of the Revised Statutes, chapter 8E, and provides for the coordination between this new chapter and other statutes.

COMMITTEE AMENDMENTS:

      The committee amended the bill to add certain relevant procedures relating to the payment of proceeds of any sale or other disposition of property following the termination of a common interest community due to a catastrophe.  These procedures were included in the general termination provision, but not in the termination following catastrophe provision.

      The committee also amended the bill to correct certain references.