[First Reprint]

SENATE, No. 908

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JANUARY 27, 2020

 


 

Sponsored by:

Senator  TROY SINGLETON

District 7 (Burlington)

Senator  STEVEN V. OROHO

District 24 (Morris, Sussex and Warren)

Assemblywoman  CAROL A. MURPHY

District 7 (Burlington)

Assemblyman  HAROLD "HAL" J. WIRTHS

District 24 (Morris, Sussex and Warren)

Assemblywoman  HOLLY T. SCHEPISI

District 39 (Bergen and Passaic)

 

Co-Sponsored by:

Senator O'Scanlon and Assemblyman Space

 

 

 

 

SYNOPSIS

     Clarifies association assessment payment requirements in planned real estate developments.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Housing Committee on March 5, 2020, with amendments.

  


An Act concerning association assessment 1[and election participation]1 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 1, nor did it convert a previously voluntary association into a planned real estate development1.

 

     2.    a.   An association in 1[communities] a community1 established prior to the 1[passage] effective date1 of the “Planned Real Estate 1[Financial] Development Full1 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 1, unless otherwise provided by law,1 where 1:

     (1)1   the property owner’s title record does not impose such an obligation 1[, unless otherwise provided by law] ; or

     (2)    the property owner’s title record establishes such an obligation, but it was previously only imposed on property owners who voluntarily elected to join or become members of the association, and not on all property owners1.

     b.   1In an association within a community established prior to the effective date of PREDFDA, if the association seeks to require one or more property owners to pay assessments and other charges where the property owner’s title record is subject to the provisions of paragraph (2) of subsection a. of this section, the association shall first obtain an order of the court of competent jurisdiction, declaring the owners as members of the association and authorizing the association to assess the members of the association.

     c.1   If 1, after July 13, 2017,1 an association has recorded a lien 1against an owner’s property1 for non-payment 1[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] of an association’s1 assessments or other charges, 1[pursuant to P.L.    , c.    (C.       ) (pending before the Legislature as this bill)] in contravention of subsection b. of this section1, 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.