Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Senator O'Scanlon
SYNOPSIS
Clarifies association assessment payment and election participation requirements in planned real estate developments.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning association assessment and election participation in planned real estate developments, and supplementing P.L.1977, c.419 (C.45:22A-21 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that:
a. Certain associations have interpreted that the provisions of P.L.2017, c.106 (C.45:22A-45.1 et al.), enacted on July 13, 2017, may impose new responsibilities on certain property owners to pay assessments and other charges to their associations; and
b. It is necessary and in the public interest for the Legislature to clarify that P.L.2017, c.106 (C.45:22A-45.1 et al.) did not impose new responsibilities on property owners to pay assessments and other charges.
2. a. An association in communities established prior to the passage of the “Planned Real Estate Financial Disclosure Act,” (“PREDFDA”), P.L.1977, c.419 (C.45:22A-21 et seq.), shall not be permitted to require property owners to pay assessments and other charges where the property owner’s title record does not impose such an obligation, unless otherwise provided by law.
b. If an association has recorded a lien for non-payment on or after July 13, 2017 that is based solely on the misinterpretation that P.L.2017, c.106 imposed new responsibilities on property owners to pay assessments or other charges, pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the lien shall be null and void. The association shall promptly discharge such lien of record and provide notice of this action to the property owner. If an association fails to discharge such null and void lien, the owner may bring an action to have the lien discharged and, if successful, shall be entitled to petition the court for an award of counsel fees.
3. This act shall take effect immediately and shall be retroactive to July 13, 2017.
STATEMENT
This bill clarifies certain assessment payment and election participation requirements in planned real estate developments. Certain associations have interpreted that the provisions of P.L.2017, c.106 (C.45:22A-45.1 et al.), enacted on July 13, 2017, may impose new responsibilities on certain property owners to pay assessments and other charges to their associations. This bill is meant to clarify that P.L.2017, c.106 (C.45:22A-45.1 et al.) did not impose new responsibilities on property owners to pay such assessments and other charges.
The bill establishes that, except as otherwise provided by law, associations in common interest communities (“CICs”) that were established prior to the effective date of the “Planned Real Estate Financial Disclosure Act,” (“PREDFDA”), P.L.1977, c.419 (C.45:22A-21 et seq.), are not allowed to require a property owner to pay assessments and other charges, if the property owner’s title record does not impose such an obligation. Additionally, the bill establishes that, if an association has recorded a lien for non-payment on or after July 13, 2017, and the lien is based solely on the misinterpretation that P.L.2017, c.106 imposed new responsibilities on property owners to pay assessments or other charges, then the lien will be null and void. The bill requires an association that has imposed such a lien to promptly discharge the lien of record and provide notice of this action to the property owner. Under the bill, if an association fails to discharge such a null and void lien, the owner may bring an action to have the lien discharged and, if successful, would be entitled to petition the court for an award of counsel fees.
The bill would take effect immediately and would be retroactive to July 13, 2017.