CAI-NJ Redoubling Manager Licensing Bill after Pocket Veto
Jean Bestafka, Renaissance Homeowners Association
Legislative Action Committee Board Liaison
The Manager Licensing bill was unfortunately vetoed at the very end of New Jersey’s 215th Legislative Session. This occurred when the bill was not signed by the governor.
CAI-NJ will continue to work with legislators in this session. We are optimistic because the bill passed with over two thirds of legislators supporting it. Also, the Governor’s veto message gives us a road map for success that we fully intend to follow. One of the questions open for discussion is the actual cost to implement manager licensing.
Your advocates at CAI-NJ are already to develop a more reliable fiscal estimate so the cost to both the state and the manager community can be more easily predicted, and in the coming weeks we will be working with a bipartisan coalition of supporters to reintroduce and pass this critical legislation once these concerns are properly addressed.
A-469 reintroduced
The statement attached to the bill states that this bill makes several modifications to the laws of the state which regulate planned real estate developments and the homeowners’ associations formed to manage the commonly-owned property in such communities. There have been some court decisions indicating a need for the Legislature to clarify and adjust the laws in this area. This bill clarifies the intent of the Legislature that P.L.1993, c.30 (C.45:22A-43 et seq.) be viewed as an enabling act for homeowners’ associations of non-condominium types of planned real estate developments, and it specifies that homeowners’ associations, other than those managing condominium property, may hold title to the common property in the association’s name. The bill prohibits the mere titling of common property in the name of the association to be construed as diminishing the ownership interests of unit owners in the common or shared elements and facilities of a planned community. This is because purchasers in all types of planned communities are sold by the developer a proportional interest in the common elements upon their purchase of an individual home or dwelling unit, in exchange for restrictive covenants in their individual deeds obligating them to maintain those common elements. The bill requires that the 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% or one, if computed fractionally.
In light of the shared ownership interests, the bill requires that the declaration of a planned real estate development state that membership in the homeowners’ association is inherent for a purchaser of a home in such a planned community. The bill provides standards for homeowners’ associations concerning access to records and elections of members to the governing board of an association. The bill eliminates closed-meeting working sessions of an association’s governing board to reflect the similar law currently applicable to public governing bodies. The bill also provides a recall procedure which will authorize the removal of elected governing board members. The bill requires the State entity charged with the oversight of the “The Planned Real Estate Development Full Disclosure Act,” P.L.1977, c.419 (C.45:22A-21 et seq.) to assist associations and owners in meeting the provisions of the bill. Currently this oversight is placed within the Department of Community Affairs.
The bill also requires the Commissioner of Community Affairs to distribute guidelines on the election procedures and to promulgate, within 60 days or so, any rules or regulations that may be necessary to effectuate the provisions.
