ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2450

STATE OF NEW JERSEY

DATED:  DECEMBER 9, 2024

      The Assembly Housing Committee reports favorably Assembly Bill No. 2450.

      This bill requires the licensure of community management entities that contract to conduct management services for the associations of planned real estate developments.  Specifically, the bill directs the Commissioner of Community Affairs to establish a system for the licensure of community management entities that contract with the associations of planned real estate developments to perform management services for the developments.  The bill directs the commissioner 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 defines a “community management entity” as a person or entity who, for consideration or the expectation thereof, performs management services, such as administering finances and coordinating meetings, for the association of a planned real estate development.  A “planned real estate development” is a term defined in the “The Planned Real Estate Development Full Disclosure Act,” P.L.1977, c.419 (C.45:22A-21 et seq.) to encompass communities governed by homeowners’ associations, condominiums, and cooperative communities. 

      The bill directs the commissioner 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.  The bill takes effect on the first day of the seventh month next following enactment.

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.