LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2450
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 10, 2025
SUMMARY
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Synopsis: |
Requires licensure of community management entity that contracts to conduct management services for planned real estate development association. |
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Type of Impact: |
Annual State expenditure and revenue increases. |
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Agencies Affected: |
Department of Community Affairs. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) estimates that the bill would result in an annual State expenditure increase to the Department of Community Affairs related to licensing community management entities that contract to conduct management services for the associations of planned real estate developments.
· The OLS anticipates first-year costs to establish the licensure program, and ongoing costs to administer the licensure program and enforce the bill’s provisions.
· The OLS further anticipates an increase in annual State revenues resulting from penalties of up to $4,000 per contract in violation.
· The OLS notes that these annual State expenditure and revenue increases are indeterminate because the cost of establishing and administering the licensure program, the license fees that may be established and collected, the cost of enforcing the bill, the number of violations, and the penalty payment collections are all unknown.
BILL DESCRIPTION
This bill would require the licensure of community management entities, as defined by the bill, that contract to conduct management services for the associations of planned real estate developments. The bill directs the Department of Community Affairs to establish experiential prerequisites that a person or entity is to be required to meet prior to obtaining a license as a community management entity. Following the effective date of the bill, an entity would be prohibited from entering a new contract to serve as the community management entity for an association in New Jersey unless the entity first obtains a license. If a person or entity is found to be in violation of this requirement, the commissioner is to impose a penalty on the person or entity in an amount not to exceed $4,000 per contract in violation. The bill directs the department to adopt the regulations necessary to effectuate the requirements of the bill on or before the first day of the seventh month next following enactment and would take effect on the first day of the seventh month next following enactment.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that the bill would result in an annual State expenditure increase to the Department of Community Affairs related to licensing community management entities that contract to conduct management services for the associations of planned real estate developments. The OLS anticipates first-year costs to establish the licensure program, and ongoing costs to administer the licensure program and enforce the bill’s provisions. The OLS further anticipates an increase in annual State revenues resulting from penalties of up to $4,000 per contract in violation.
The OLS notes that these annual State expenditure and revenue increases are indeterminate because the cost of establishing and administering the licensure program, the license fees that may be established and collected, the cost of enforcing the bill, the number of violations, and the penalty payment collections are all unknown.
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Section: |
Local Government |
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Analyst: |
Assistant Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).