New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2450

Introduced
1/9/24  
Refer
1/9/24  

Caption

Requires licensure of community management entity that contracts to conduct management services for planned real estate development association.

Impact

If enacted, A2450 will supplement existing laws governing community associations by establishing specific licensing requirements that management entities must meet before entering into contracts with these associations. The Commissioner of Community Affairs will develop regulations outlining the criteria for obtaining a license, which may include experience prerequisites. The proposed penalties for violations can reach up to $4,000 per unlicensed contract, reinforcing the importance of legal compliance in community management.

Summary

Assembly Bill A2450 requires the licensure of community management entities that provide management services for planned real estate developments. This bill is aimed at ensuring a level of professionalism and accountability among those managing homeowner associations, which often handle essential functions such as financial management, compliance with regulations, and communication with residents. The legislation is a response to growing concerns about the qualifications and integrity of community management practices in New Jersey.

Sentiment

The sentiment around A2450 appears to be largely supportive among legislators who recognize the need for standards in the management of community developments. Proponents argue that mandatory licensing will protect homeowners from potential mismanagement and enhance the quality of services provided. Conversely, some critics may raise concerns about additional regulatory burdens or the potential increase in costs for homeowners as management entities may pass on licensing fees.

Contention

A notable point of contention involves how the bill might affect smaller management firms that may struggle to meet licensing requirements. There are concerns that increased regulation could lead to less competition in the market, driving up costs for associations and homeowners. Furthermore, the effectiveness of the licensing system in preventing fraud and ensuring competence among managers will be closely monitored as the bill moves forward.

Companion Bills

NJ A1699

Carry Over Requires licensure of community management entity that contracts to conduct management services for planned real estate development association.

Previously Filed As

NJ A1699

Requires licensure of community management entity that contracts to conduct management services for planned real estate development association.

NJ A1698

Requires training of planned real estate development association board members.

NJ A2449

Requires training of planned real estate development association board members.

NJ A2129

Requires certain common interest community associations to publish certain information; requires that homeowners' association contracts for management and maintenance include 24-hour emergency services.

NJ A1006

Requires certain common interest community associations to publish certain information; requires that homeowners' association contracts for management and maintenance include 24-hour emergency services.

NJ S4130

Concerns inspection information distribution; provides DCA and property management entities with certain responsibility to provide and maintain contact information for owners of residential rental property and planned real estate development associations.

NJ A1659

Establishes immunity for senior planned real estate development associations relating to COVID-19.

NJ A727

Establishes immunity for youth sports leagues and senior planned real estate development associations relating to COVID-19.

NJ A4946

Establishes penalty on planned real estate development association for failure to provide association members timely access to certain meeting minutes.

NJ A2138

Establishes professional board to regulate home improvement and home elevation contractors and requires licensure for each type of contractor.

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