New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A4973 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	ASSEMBLY, No. 4973 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED OCTOBER 21, 2024
2	2
3	3	ASSEMBLY, No. 4973
4	4
5	5	STATE OF NEW JERSEY
6	6
7	7	221st LEGISLATURE
8	8
9	9
10	10
11	11	INTRODUCED OCTOBER 21, 2024
12	12
13	13
14	14
15	15	Sponsored by: Assemblyman DAVID BAILEY, JR. District 3 (Cumberland, Gloucester and Salem) SYNOPSIS "The Manufactured Home Park Protection Act"; expands opportunity to purchase for resident homeowners in certain manufactured home parks; modifies certain requirements for disposition of private residential leasehold communities. CURRENT VERSION OF TEXT As introduced.
16	16
17	17
18	18
19	19	Sponsored by:
20	20
21	21	Assemblyman DAVID BAILEY, JR.
22	22
23	23	District 3 (Cumberland, Gloucester and Salem)
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31
32	32
33	33	SYNOPSIS
34	34
35	35	"The Manufactured Home Park Protection Act"; expands opportunity to purchase for resident homeowners in certain manufactured home parks; modifies certain requirements for disposition of private residential leasehold communities.
36	36
37	37
38	38
39	39	CURRENT VERSION OF TEXT
40	40
41	41	As introduced.
42	42
43	43
44	44
45	45	An Act concerning private residential leasehold communities, including the right of first refusal and purchase for certain resident homeowners, amending and supplementing P.L.1991, c.483, amending P.L.1977, c.419, and repealing sections 6 through 9 of P.L.1991, c.483. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 1 of P.L.1991, c.483 (C.46:8C-10) is amended to read as follows: 1. a. For the purposes of P.L.1991, c.483 (C.46:8C-10 et seq.): "Campground facility" means real property designed and used for the purpose of renting or leasing individual portions thereof to occupants who are to have access for the purposes of camping and the recreation associated therein, which may not be used as a permanent dwelling place or domicile for occupants, other than by the owner, and upon which recreational vehicles, as defined in this section, in excess of 400 square feet, and mobile homes and manufactured homes, as those terms are defined in section 3 of the "Manufactured Home Taxation Act," P.L.1983, c.400 (C.54:4-1.4), in excess of 400 square feet, may not enter; "Camping trailer" means a recreational vehicle that is mounted on wheels and constructed with collapsible partial side walls that fold for towing and unfold for use; "Department" means the Department of Community Affairs. "Family member" means a landowner or landowner's spouse, or a child, parent, or grandparent of the landowner or landowner's spouse, or a descendent of any such person. A "family member" shall include all such persons, whether of the whole or the half blood and whether related by blood or adoption. "Fifth wheel trailer" means a recreational vehicle designed to be towed by a motorized vehicle containing a towing mechanism mounted above or forward of the tow vehicle's rear axle; "Landowner" or "private residential leasehold community landowner" means the owner of the land and infrastructure making up a private residential leasehold community; "Motor home" means a recreational vehicle built on or permanently attached to a self-propelled motor vehicle chassis, chassis cab or van that is an integral part of the completed vehicle; "Owner" means the person or persons having legal authority to permit the occupancy of a campground facility; "Park trailer" means a recreational vehicle that is built on a single chassis mounted on wheels and certified by the manufacturer as complying with the American National Standards Institute (ANSI) standard A119.5; "Private residential leasehold community" means a community on a parcel of land, or two or more contiguous parcels of land, containing no fewer than [ten] 10 home sites where such sites are under common ownership and control, other than a cooperative or a campground facility, for the purpose of leasing such sites to the owners of certain homes, including, but not limited to, mobile homes and manufactured homes as those terms are defined in section 3 of the "Manufactured Home Taxation Act," P.L.1983, c.400 (C.54:4-1.4), and specifically including homes constructed entirely or partly on site, the location and use of which may or may not be permanent, and where the owner or owners of the land provide services to the homeowners, which are provided by the municipality in which the community is located for the property owners outside the community, which services may include but shall not be limited to: (1) The construction and maintenance of streets; (2) Lighting of streets and other common areas; (3) Garbage removal; (4) Snow removal; (5) Provisions for the drainage of surface water from home sites and common areas; "Recreational vehicle" means a vehicular-type unit primarily designed as temporary living quarters for recreational camping or travel use. The vehicle shall have either its own motive power or be mounted on or towed by another vehicle. Recreational vehicles include, but are not limited to, camping trailers, fifth wheel trailers, motor homes, park trailers, travel trailers, and truck campers; "Resident homeowner" means a person who owns a home in a private residential leasehold community and who resides in the home or who has a family member residing in the home; "Resident homeowner group" or "group" means any organization, group, or association, formal or informal, including a corporation or cooperative, that consists of and is governed by resident homeowners in the private residential leasehold community and is open to all resident homeowners in that community. A group may be formed after the issuance of a notice pursuant to sections 2 or 3 of P.L.1991, c.483 (C.46:8C:11 or C.46:8C-12) and may designate an agent to act on its behalf. A group may form a cooperative, nonprofit corporation, or similar entity to take ownership of the private residential leasehold community as part of a purchase agreement for the private residential leasehold community, as long as such organization consists of and is controlled by the resident homeowners and is open to all resident homeowners in the community; "Sale," "sell," and "purchase," means and includes any type of sale, lease, or transfer, except as provided by section 4 of P.L.1991, c.483 (C.46:8C-13); "Travel trailer" means a recreational vehicle designed to be towed by a motorized vehicle containing a towing mechanism which is mounted behind the tow vehicle's bumper; "Truck camper" means a recreational vehicle consisting of a roof, floor, and sides, designed to be loaded onto and unloaded from the bed of a pickup truck. b. [As used in sections 2 and 3 of P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12), "notify" means to place in the United States mail a notice addressed to the officers of the homeowners' association. Each such notice shall be deemed to have been given upon the deposit thereof in the United States mail.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill) c. As used in section 2 of P.L.1991, c.483 (C.46:8C-11), "offer" means any solicitation by the landowner to the general public. (cf: P.L.2005, c.68) 2. (New section) a. The Department of Community Affairs shall publish and maintain on the department's Internet website a list of nonprofit organizations that are committed to preserving affordable housing, that have submitted a request to the department to receive notifications that a private residential leasehold community: (1) land is offered for sale; or (2) landowner has received a bona fide offer to purchase that the private residential leasehold community landowner intends to consider, or to which the private residential leasehold community landowner intends to make a counter-offer. b. The department shall update the list within 30 days after receiving a new request pursuant to subsection a. of this section. 3. Section 2 of P.L.1991, c.483 (C.46:8C-11) is amended to read as follows: 2. a. If a private residential leasehold community landowner offers private residential leasehold community land for sale, [he] the landowner shall [notify the board of directors of the homeowners' association created pursuant to this act of his offer, stating the price and the terms and conditions of sale] give notice of that act by certified mail, return receipt requested, to the department, the New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the private residential leasehold community is located, the persons and entities on the list published and maintained by the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and each resident homeowner in the private residential leasehold community. In addition, the landowner shall send the notice to each resident homeowner by first class mail with tracking and by delivery to each manufactured home on the property. The notice shall state the price, terms, and conditions of the offer and a contact person for further information. b. The affected resident homeowners, by and through [an association duly formed in accordance with section 6 of this act] a resident homeowner group, shall have the right to purchase such land, provided [two-thirds] 51 percent of the [unit owners] resident homeowners in the private residential leasehold community have [approved] consented to the purchase , with multiple resident owners of a home having a single vote, and further provided that the resident homeowners meet the price [and] , terms, and conditions of the private residential leasehold community landowner by executing a contract with the landowner within [45] 120 days of being notified [under] pursuant to subsection a. of this section, except as an extension of time may be mutually agreed upon by the landowner and the [association; provided, however, that if there is no homeowners' association at the time a private residential leasehold community landowner offers private residential leasehold community land for sale and the landowner notifies homeowners individually as required under subsection b. of section 6 of this act, the period within which the terms and conditions of the private residential leasehold community landowner may be met by execution of a contract between the landowner and a homeowners' association shall be 60 days from the date of the notification of individual homeowners and at any time after notification to the landowner that a homeowners' association has been formed, in accordance with the provisions of subsection a. of section 7 of this act] resident homeowner group. If a contract between the landowner and the [association] resident homeowner group is not executed within that extension period, then, unless the landowner thereafter elects to offer the land at the same price or at a lower price than specified in [his] the notice [to the directors or trustees of the association] required by subsection a. of this section, [he] the landowner shall have no further obligations [under] pursuant to this subsection [, and his only obligation shall be as set forth in section 3 of this act] . The contract shall include a reasonable financing contingency of at least 90 days, and may, at the landowner's option, include a refundable earnest money requirement of up to $50,000. A resident homeowner may indicate consent to the purchase by signing a petition or any other document that so indicates consent. c. If the landowner thereafter elects to offer the land at the same price or at a lower price than specified in [his] the landowner's notice [to the directors or trustees of the association] pursuant to subsection a. of this section, the resident homeowners [, by and through the association,] shall have an additional [10] 30 days after receipt of that offer to meet the price [and] , terms [of] , and conditions of the landowner by executing a contract; provided, however, that if more than three months have elapsed since the receipt by the [homeowners' association] resident homeowners of the previous offer to sell the land [under] pursuant to this subsection, the [association] resident homeowners shall have [30] 60 days after receipt of the subsequent offer to meet the price [and] , terms [of] , and conditions of the landowner by executing a contract. (cf: P.L.1995, c.365, s.2) 4. Section 3 of P.L.1991, c.483 (C.46:8C-12) is amended to read as follows: 3. a. If a private residential leasehold community landowner receives a bona fide offer to purchase the land that [he] the landowner intends to consider or make a counter-offer to, [he] the landowner shall notify the [directors or trustees of] department, the [homeowners' association within 10 business days of receiving the offer, if such an association has been formed in accordance with the provisions of sections 6 through 8 of this act, that he has received the offer] New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the private residential leasehold community is located, the persons and entities on the list published and maintained by the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and each resident homeowner. [If a homeowners' association has not been formed, the landowner shall, within 10 business days, notify individual homeowners as required under section 6 of this act] The notifications required pursuant to this subsection shall be by certified mail, return receipt requested, and except that the notification to the resident homeowners shall be by certified mail, return receipt requested, by first-class mail with tracking, and by delivery to each manufactured home on the property. The landowner shall not conclude any agreement to sell the land until after the [30-day] 120-day period [therein] specified by subsection c. of this section has elapsed, but the landowner may negotiate with other potential purchasers and may accept an offer for the sale of a private residential leasehold community before giving the notice and purchase opportunity required by this section or during the 120-day period specified by subsection c. of this section, provided that the purchase agreement is conditioned upon providing the notice and purchase opportunity pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The notice required by this subsection shall include: (1) a statement advising the recipient of the intended sale of the community; (2) a statement of the resident homeowners' rights pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and the deadlines for exercising such rights; and (3) the price, terms, and conditions of the offer the landowner intends to consider or make a counter-offer to, or a copy of such offer or a conditional purchase contract. In the case of a proposed sale, in a single transaction, of more than one private residential leasehold community, or a manufactured home community and one or more other non-related properties, the notice shall state both the aggregate price and the price of the private residential leasehold community in which the resident homeowners receiving the notice reside. b. Upon receipt of [such] a notice mailed pursuant to subsection a. of this section, the [board of directors or trustees of the homeowners' association shall appoint from among its members a committee, not exceeding three persons] resident homeowners may select and designate up to seven representatives, who may be assisted by [such] legal and other professional and technical counsel [as the board may provide], to receive from the landowner [the price and terms of the offer that has been made] any additional information necessary to evaluate the possibility of purchasing the private residential leasehold community, and to negotiate the terms upon which the landowner would be willing to sell the private residential leasehold community [land] to the [homeowners' association] resident homeowner group. [Members] The representatives and their assistants [to the committee] shall be pledged to maintain in confidence any information disclosed to them by the landowner in the course of such negotiations. If any such [member] representative or assistant fails to maintain that confidence, the landowner may bring an appropriate action at law for damages or seek an appropriate equitable remedy. c. Not later than the [30th] 120th day next following [its receipt] the mailing of [offering terms pursuant to] the notice required by subsection [b.] a. of this section, or following a period of extension agreed to by the [committee] resident homeowner designees and the landowner, [the committee appointed pursuant to subsection b. of this section shall report to the board of directors or trustees of] a resident homeowner group may deliver to the [homeowners' association the price and other material terms upon which] landowner a proposed purchase agreement for the private residential leasehold community [landowner has agreed to sell the private residential leasehold community] land [to the association] , along with a statement that 51 percent or more of the resident homeowners consent to the submission of the purchase agreement, with multiple resident owners of a home having a single vote. A resident homeowner may indicate consent to the purchase by signing a petition or any other document that so indicates the resident homeowner's consent. In the absence of any agreement between the landowner and the [committee] resident homeowners, the landowner shall be deemed to agree to such sale upon the identical terms [communicated by him to the committee pursuant to subsection a. of this section. The report of] stated in the [committee shall include such supporting data and documentation as the committee and the landowner have agreed upon to be so submitted and authorized to be disclosed. The price and other terms so agreed upon and reported shall be binding upon the landowner for 10 days next following the submission of the committee's report, and if agreed to by the board of directors or trustees of the homeowners' association and consented to by two-thirds of the homeowners in that private residential leasehold community land shall constitute a contract of sale] notice required by subsection a. of this section, with reasonable financing contingency of at least 90 days, and, at the landowner's option, a refundable earnest money requirement of up to $50,000. d. [During the period provided for negotiations and for consideration by the association's board of directors or trustees under subsection c. of this] This section applies regardless of whether the landowner [shall not conclude any agreement for sale of the private residential leasehold community land to any other party, but may negotiate with any other party as to terms and conditions of such an agreement, contingent upon the failure or refusal of the homeowners to exercise their prior right of purchase under this act] has previously provided one or more notices required pursuant to section 2 of P.L.1991, c.483 (C.46:8C-11). (cf: P.L.1995, c.365, s.3) 5. (New section) a. If the resident homeowners, by and through a resident homeowner group, make an offer to the landowner to purchase the private residential leasehold community, whether in response to a notice sent pursuant to subsection a. of section 2 of P.L.1991, c.483 (C.46:8C-11) or subsection a. of section 3 of P.L.1991, c.483 (C.46:8C-12) or otherwise, and whether or not the proposed price, terms, and conditions are identical to those proposed by the landowner or in a third party's offer, the private residential leasehold community landowner shall consider the resident homeowner group's offer and negotiate with the resident homeowner group in good faith. b. A landowner shall not accept or conditionally accept an offer for the sale of a private residential leasehold community unless its price, terms, and conditions are universal and applicable to all potential buyers, nor shall a landowner accept or conditionally accept an offer that contains any provision, which would penalize the landowner for entering into an agreement for sale of the community to the resident homeowners or their assignee pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.). 6. (New section) A resident homeowner group that has rights pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.) may, at its election by the consent of 51 percent of resident homeowners, assign such rights to the municipality in which the resident homeowner group is located, a housing authority located in the municipality, an agency of the State, or a nonprofit corporation or cooperative, for the purpose of continuing the use of the property as a manufactured home community. Upon assignment, the assignee shall be entitled to exercise the rights that P.L.1991, c.483 (C.46:8C-10 et seq.) grants to the assignor-resident homeowner group. 7. Section 4 of P.L.1991, c.483 (C.46:8C-13) is amended to read as follows: 4. The provisions of sections 2 and 3 of [this act] P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12) shall not apply to: a. [Any sale or transfer of the property of a private residential leasehold community which is not made in contemplation of changing that property to a use or uses other than as a private residential leasehold community.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill) b. Any sale or transfer to a [person who would be included within the table of descent and distribution if] family member of the landowner [were to die intestate] . c. Any transfer by gift, devise, or operation of law. d. Any transfer by a corporation to an affiliate. As used herein, "affiliate" means (1) any shareholder exercising control, or control through attribution as defined [under] pursuant to section 318 of the Internal Revenue Code, of the transferring corporation; (2) any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation; or (3) any other corporation or entity owned or controlled, directly or indirectly, by any shareholder of the transferring corporation. For the purposes of this subsection, control shall mean control as defined in section 304 of the Internal Revenue Code. e. Any transfer by a partnership to any of its partners, whether general partners or limited partners, or partners or individuals to a corporation where the control of the corporation is substantially the same. f. Any conveyance of an interest in a private residential leasehold community incidental to the financing of that community. g. Any conveyance resulting from the foreclosure of a mortgage, deed of trust, or other instrument encumbering a private residential leasehold community, or any deed given in lieu of such foreclosure. h. Any sale or transfer between or among joint tenants or tenants in common owning a private residential leasehold community. i. The purchase of land of a private residential leasehold community by a governmental entity under its powers of eminent domain. j. Any sale which occurs as a result of a condominium or cooperative conversion. k. Any sale of real estate owned by the private residential leasehold community landowner which is adjacent to the private residential leasehold community land, but does not have appurtenant to it private residential leasehold sites or spaces or related recreational facilities. (cf: P.L.1995, c.365, s.4) 8. (New section) To qualify for an exemption pursuant to section 4 of P.L.1991, c.483 (C.46:8C-13), a transaction shall: a. be in good faith; b. be made for a legitimate business purpose or a legitimate familial purpose consistent with the exemptions listed pursuant to section 4 of P.L.1991, c.483 (C.46:8C-13); and c. not be made for the primary purpose of avoiding the opportunity-to-purchase provisions set forth in P.L.1991, c.483 (C.46:8C-10 et seq.). 9. Section 5 of P.L.1991, c.483 (C.46:8C-14) is amended to read as follows: 5. In addition to other prerequisites for recording, no deed evidencing transfer of title to a private residential leasehold community land shall be recorded in the office of any county recording officer unless, accompanying the application to transfer the title is an affidavit annexed thereto in which the owner of the private residential leasehold community certifies: a. with reference to an offer by [him] the landowner for the sale of the land, [he] the landowner has complied with the provisions of section 2 of [this act] P.L.1991, c.483 (C.46:8C-11); or b. with reference to an offer received by [him] the landowner for the purchase of the land, or with reference to a counter-offer which [he] the landowner has made or intends to make to such an offer, [he] the landowner has complied with the provisions of section 3 of [this act] P.L.1991, c.483 (C.46:8C-12); or c. notwithstanding [his] the landowner's compliance with section 2 or 3 of [this act] P.L.1991, c.483 (C.46:8C-11 or C.46:8C-12), as applicable, no contract has been executed for the sale of the land between [himself] the landowner and [the homeowners' association] a resident homeowner group; or d. the provisions of sections 2 and 3 of [this act] P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12) are not applicable to a particular sale or transfer of the land by [him] the landowner, and compliance therewith is not required; or e. a particular sale or transfer of the land is exempted from the provisions of sections 2 through 5 of [this act] P.L.1991, c.483 (C.46:8C-11 through C.46:8C-14). (cf: P.L.1995, c.365, s.5) 10. (New section) a. If a landowner sells or is preparing to sell a private residential leasehold community land and has not complied with the requirements of P.L.1991, c.483 (C.46:8C-10 et seq.), any resident homeowner or the Attorney General, or both may file an action in the Superior Court, Law Division, in the county in which the private residential leasehold community is located to enforce the requirements of P.L.1991, c.483 (C.46:8C-10 et seq.). In any such action, the court may grant any relief it deems appropriate, including but not limited to declaratory and injunctive relief, voiding of the sale of the land, actual damages, and punitive damages, and shall award reasonable attorney fees if the resident homeowners prevail. b. A violation of P.L.1991, c.483 (C.46:8C-10 et seq.) shall constitute an unlawful practice pursuant to section 2 of P.L.1960, c.39 (C.56:8-2), and a landowner who violates P.L.1991, c.483 (C.46:8C-10 et seq.) shall be subject to all remedies and penalties available pursuant to P.L.1960, c.39 (C.56:8-1 et seq.). 11. Section 5 of P.L.1977, c.419 (C.45:22A-25) is amended to read as follows: 5. a. Unless the method of disposition is adopted for purposes of evasion, the provision of this act shall not apply to offers or dispositions: (1) By an owner for [his] the owner's own account in a single or isolated transaction; (2) Wholly for industrial, commercial, or other nonresidential purposes; (3) Pursuant to court order; (4) By the United States, by this State or any of its agencies or political subdivisions; (5) Of real property located without the State; (6) Of cemetery lots or interests; (7) Of less than 100 lots, parcels, units or interests; provided, however, that with respect to condominiums and cooperatives, this exemption shall not apply, irrespective of the number of lots, parcels, units, or interests offered or disposed of; (8) Of developments where the common elements or interests, which would otherwise subject the offering to this act, are limited to the provision of unimproved, unencumbered open space; (9) In a development composed wholly of rental units, where the relationship created is one of landlord and tenant; (10) Of any form of timesharing ; (11) Of a private residential leasehold community to a resident homeowner group or its assignee pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.), whether or not the form of ownership of the private residential leasehold community would otherwise fall within the definition of planned real estate development pursuant to "The Planned Real Estate Development Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.). b. The agency may from time to time, pursuant to its rules and regulations, exempt from any of the provisions of this act any development, or any lots, units, parcels, or interests in a development, if it finds that the enforcement of this act with respect to such, is not necessary in the public interest or required for the protection of purchasers by reason of the small amount of the purchase price involved, the limited character of the offering, or the limited nature of the common or shared elements. (cf: P.L.2006, c.63, s.40) 12. The following sections are repealed: Sections 6 through 9 of P.L.1991, c.483 (C.46:8C-15 through C.46:8C-18). 13. This act shall take effect immediately. STATEMENT This bill gives homeowners in a mobile or manufactured home park (resident homeowners) the opportunity to preserve their communities by providing the resident homeowners the opportunity to purchase their mobile or manufactured home park, or private residential leasehold communities (PRLC), if the landowner anticipates selling or changing the use of the land. Mobile homes, manufactured housing, and factory-built housing are important, unsubsidized, and effective ways to meet New Jersey's affordable housing needs. As many people living in a PRLC own their home but not the land upon which it sits, landowners can wield significant power over housing security. If a landowner pursues redevelopment of the PRLC, resident homeowners are at risk of losing their investment. The scarcity of vacancies in other PRLCs and the high costs of relocating a mobile or manufactured home make relocation nearly impossible. When a PRLC closes, resident homeowners can find themselves pushed into poverty. Accordingly, this bill requires the landowner of a PRLC to provide certain notices, and the right of first refusal, to resident homeowners of the PRLC if PRLC land (community land) is offered for sale, or if the PRLC landowner (landowner) has received a bona fide offer to purchase the community land that the landowner intends to consider, or make a counter-offer on. Specifically, the bill requires the Department of Community Affairs (department) to publish, on the department's Internet website, a list of nonprofit organizations committed to preserving affordable housing, who have notified the department that the nonprofit organization wants to receive notifications that: community land is offered for sale; or that a landowner has received a bona fide offer to purchase that the landowner intends to consider, or make a counter-offer on. The bill requires a landowner to give notice of the offer, as specified in the bill, to the department, the New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the community land is located, the persons and entities on the list published on the department's Internet website, and to each resident homeowner in the PRLC. The notice is required to state the price, terms, and conditions of the offer and a contact person for further information. Current law enables affected homeowners in a PRLC--by and through an association of unit owners, with two-thirds consent of the unit owners, provided the unit owners have met the price, terms, and conditions of the landowner--to exercise the right to purchase the community land, if the contract is executed within 45 days of receiving the initial notice from the landowner. This bill enables the affected resident homeowners, by and through a resident homeowner group, as defined in the bill, to exercise the right to purchase the community land if 51 percent of the resident homeowners in the PRLC consent to the purchase, and the resident homeowner group meets the price, terms, and conditions of the landowner by executing a contract with the landowner within 120 days of receiving the initial notice. The bill sets forth procedures and a timeline for negotiating, extending, and financing the purchase; permits a landowner to set a refundable earnest money requirement of up to $50,000; provides that a resident homeowner may consent to the purchase by signing a petition or any other document indicating consent; and requires that negotiations be conducted in good faith. The bill permits resident homeowners to select and designate up to seven representatives, who may be assisted by legal and other professional and technical counsel to receive, evaluate, and negotiate the purchase or prospective purchase of the PRLC by the resident homeowner group or a cooperative, nonprofit corporation, or similar entity formed by the homeowners. The representatives would consist of, and be controlled by, the resident homeowners and be open to all resident homeowners in the community. The bill authorizes a resident homeowner group that has rights pursuant to the bill, at the resident homeowner group's election, to assign their rights to the municipality in which the resident homeowner group is located, a housing authority located in the municipality, an agency of the State, or a nonprofit corporation or cooperative, for the purpose of continuing the use of the property as a manufactured home community. Following assignment, the assignee would be entitled to exercise the rights that the bill grants to the assignor-resident homeowner group. Further, the bill permits the resident homeowner group, or the Attorney General, to file an action in the Superior Court, Law Division, for a violation of P.L.1991, c.483 (C.46:8C-10 et seq.), and provides that a violation would constitute an unlawful practice pursuant to the New Jersey consumer fraud act, (CFA) P.L.1960, c.39 (C.56:8-1 et seq.), and subject a landowner to all penalties available pursuant to the CFA. Additionally, the bill exempts from "The Planned Real Estate Development Full Disclosure Act," (PREDFDA) P.L.1977, c.419 (C.45:22A-21 et seq.) the disposition of a PRLC to a resident homeowner group or its assignee, whether or not the form of ownership of the PRLC would otherwise fall within the definition of planned real estate development pursuant to PREDFDA. The bill repeals sections 6 through 9 of P.L.1991, c.483 (C.46:8C-15 through C.46:8C-18), which concern the formation of an association created pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.), notice and recording of a purchase, and the association's purpose and governing documents. The bill omits all references to the creation of an "association of unit owners" to receive, negotiate, consider, and purchase a PRLC, and replaces that language with resident homeowners or resident homeowner group.
46	46
47	47	An Act concerning private residential leasehold communities, including the right of first refusal and purchase for certain resident homeowners, amending and supplementing P.L.1991, c.483, amending P.L.1977, c.419, and repealing sections 6 through 9 of P.L.1991, c.483.
48	48
49	49
50	50
51	51	Be It Enacted by the Senate and General Assembly of the State of New Jersey:
52	52
53	53
54	54
55	55	1. Section 1 of P.L.1991, c.483 (C.46:8C-10) is amended to read as follows:
56	56
57	57	1. a. For the purposes of P.L.1991, c.483 (C.46:8C-10 et seq.):
58	58
59	59	"Campground facility" means real property designed and used for the purpose of renting or leasing individual portions thereof to occupants who are to have access for the purposes of camping and the recreation associated therein, which may not be used as a permanent dwelling place or domicile for occupants, other than by the owner, and upon which recreational vehicles, as defined in this section, in excess of 400 square feet, and mobile homes and manufactured homes, as those terms are defined in section 3 of the "Manufactured Home Taxation Act," P.L.1983, c.400 (C.54:4-1.4), in excess of 400 square feet, may not enter;
60	60
61	61	"Camping trailer" means a recreational vehicle that is mounted on wheels and constructed with collapsible partial side walls that fold for towing and unfold for use;
62	62
63	63	"Department" means the Department of Community Affairs.
64	64
65	65	"Family member" means a landowner or landowner's spouse, or a child, parent, or grandparent of the landowner or landowner's spouse, or a descendent of any such person. A "family member" shall include all such persons, whether of the whole or the half blood and whether related by blood or adoption.
66	66
67	67	"Fifth wheel trailer" means a recreational vehicle designed to be towed by a motorized vehicle containing a towing mechanism mounted above or forward of the tow vehicle's rear axle;
68	68
69	69	"Landowner" or "private residential leasehold community landowner" means the owner of the land and infrastructure making up a private residential leasehold community;
70	70
71	71	"Motor home" means a recreational vehicle built on or permanently attached to a self-propelled motor vehicle chassis, chassis cab or van that is an integral part of the completed vehicle;
72	72
73	73	"Owner" means the person or persons having legal authority to permit the occupancy of a campground facility;
74	74
75	75	"Park trailer" means a recreational vehicle that is built on a single chassis mounted on wheels and certified by the manufacturer as complying with the American National Standards Institute (ANSI) standard A119.5;
76	76
77	77	"Private residential leasehold community" means a community on a parcel of land, or two or more contiguous parcels of land, containing no fewer than [ten] 10 home sites where such sites are under common ownership and control, other than a cooperative or a campground facility, for the purpose of leasing such sites to the owners of certain homes, including, but not limited to, mobile homes and manufactured homes as those terms are defined in section 3 of the "Manufactured Home Taxation Act," P.L.1983, c.400 (C.54:4-1.4), and specifically including homes constructed entirely or partly on site, the location and use of which may or may not be permanent, and where the owner or owners of the land provide services to the homeowners, which are provided by the municipality in which the community is located for the property owners outside the community, which services may include but shall not be limited to:
78	78
79	79	(1) The construction and maintenance of streets;
80	80
81	81	(2) Lighting of streets and other common areas;
82	82
83	83	(3) Garbage removal;
84	84
85	85	(4) Snow removal;
86	86
87	87	(5) Provisions for the drainage of surface water from home sites and common areas;
88	88
89	89	"Recreational vehicle" means a vehicular-type unit primarily designed as temporary living quarters for recreational camping or travel use. The vehicle shall have either its own motive power or be mounted on or towed by another vehicle. Recreational vehicles include, but are not limited to, camping trailers, fifth wheel trailers, motor homes, park trailers, travel trailers, and truck campers;
90	90
91	91	"Resident homeowner" means a person who owns a home in a private residential leasehold community and who resides in the home or who has a family member residing in the home;
92	92
93	93	"Resident homeowner group" or "group" means any organization, group, or association, formal or informal, including a corporation or cooperative, that consists of and is governed by resident homeowners in the private residential leasehold community and is open to all resident homeowners in that community. A group may be formed after the issuance of a notice pursuant to sections 2 or 3 of P.L.1991, c.483 (C.46:8C:11 or C.46:8C-12) and may designate an agent to act on its behalf. A group may form a cooperative, nonprofit corporation, or similar entity to take ownership of the private residential leasehold community as part of a purchase agreement for the private residential leasehold community, as long as such organization consists of and is controlled by the resident homeowners and is open to all resident homeowners in the community;
94	94
95	95	"Sale," "sell," and "purchase," means and includes any type of sale, lease, or transfer, except as provided by section 4 of P.L.1991, c.483 (C.46:8C-13);
96	96
97	97	"Travel trailer" means a recreational vehicle designed to be towed by a motorized vehicle containing a towing mechanism which is mounted behind the tow vehicle's bumper;
98	98
99	99	"Truck camper" means a recreational vehicle consisting of a roof, floor, and sides, designed to be loaded onto and unloaded from the bed of a pickup truck.
100	100
101	101	b. [As used in sections 2 and 3 of P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12), "notify" means to place in the United States mail a notice addressed to the officers of the homeowners' association. Each such notice shall be deemed to have been given upon the deposit thereof in the United States mail.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
102	102
103	103	c. As used in section 2 of P.L.1991, c.483 (C.46:8C-11), "offer" means any solicitation by the landowner to the general public.
104	104
105	105	(cf: P.L.2005, c.68)
106	106
107	107
108	108
109	109	2. (New section) a. The Department of Community Affairs shall publish and maintain on the department's Internet website a list of nonprofit organizations that are committed to preserving affordable housing, that have submitted a request to the department to receive notifications that a private residential leasehold community:
110	110
111	111	(1) land is offered for sale; or
112	112
113	113	(2) landowner has received a bona fide offer to purchase that the private residential leasehold community landowner intends to consider, or to which the private residential leasehold community landowner intends to make a counter-offer.
114	114
115	115	b. The department shall update the list within 30 days after receiving a new request pursuant to subsection a. of this section.
116	116
117	117
118	118
119	119	3. Section 2 of P.L.1991, c.483 (C.46:8C-11) is amended to read as follows:
120	120
121	121	2. a. If a private residential leasehold community landowner offers private residential leasehold community land for sale, [he] the landowner shall [notify the board of directors of the homeowners' association created pursuant to this act of his offer, stating the price and the terms and conditions of sale] give notice of that act by certified mail, return receipt requested, to the department, the New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the private residential leasehold community is located, the persons and entities on the list published and maintained by the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and each resident homeowner in the private residential leasehold community. In addition, the landowner shall send the notice to each resident homeowner by first class mail with tracking and by delivery to each manufactured home on the property. The notice shall state the price, terms, and conditions of the offer and a contact person for further information.
122	122
123	123	b. The affected resident homeowners, by and through [an association duly formed in accordance with section 6 of this act] a resident homeowner group, shall have the right to purchase such land, provided [two-thirds] 51 percent of the [unit owners] resident homeowners in the private residential leasehold community have [approved] consented to the purchase , with multiple resident owners of a home having a single vote, and further provided that the resident homeowners meet the price [and] , terms, and conditions of the private residential leasehold community landowner by executing a contract with the landowner within [45] 120 days of being notified [under] pursuant to subsection a. of this section, except as an extension of time may be mutually agreed upon by the landowner and the [association; provided, however, that if there is no homeowners' association at the time a private residential leasehold community landowner offers private residential leasehold community land for sale and the landowner notifies homeowners individually as required under subsection b. of section 6 of this act, the period within which the terms and conditions of the private residential leasehold community landowner may be met by execution of a contract between the landowner and a homeowners' association shall be 60 days from the date of the notification of individual homeowners and at any time after notification to the landowner that a homeowners' association has been formed, in accordance with the provisions of subsection a. of section 7 of this act] resident homeowner group. If a contract between the landowner and the [association] resident homeowner group is not executed within that extension period, then, unless the landowner thereafter elects to offer the land at the same price or at a lower price than specified in [his] the notice [to the directors or trustees of the association] required by subsection a. of this section, [he] the landowner shall have no further obligations [under] pursuant to this subsection [, and his only obligation shall be as set forth in section 3 of this act] . The contract shall include a reasonable financing contingency of at least 90 days, and may, at the landowner's option, include a refundable earnest money requirement of up to $50,000. A resident homeowner may indicate consent to the purchase by signing a petition or any other document that so indicates consent.
124	124
125	125	c. If the landowner thereafter elects to offer the land at the same price or at a lower price than specified in [his] the landowner's notice [to the directors or trustees of the association] pursuant to subsection a. of this section, the resident homeowners [, by and through the association,] shall have an additional [10] 30 days after receipt of that offer to meet the price [and] , terms [of] , and conditions of the landowner by executing a contract; provided, however, that if more than three months have elapsed since the receipt by the [homeowners' association] resident homeowners of the previous offer to sell the land [under] pursuant to this subsection, the [association] resident homeowners shall have [30] 60 days after receipt of the subsequent offer to meet the price [and] , terms [of] ,
126	126
127	127	and conditions of the landowner by executing a contract.
128	128
129	129	(cf: P.L.1995, c.365, s.2)
130	130
131	131
132	132
133	133	4. Section 3 of P.L.1991, c.483 (C.46:8C-12) is amended to read as follows:
134	134
135	135	3. a. If a private residential leasehold community landowner receives a bona fide offer to purchase the land that [he] the landowner intends to consider or make a counter-offer to, [he] the landowner shall notify the [directors or trustees of] department, the [homeowners' association within 10 business days of receiving the offer, if such an association has been formed in accordance with the provisions of sections 6 through 8 of this act, that he has received the offer] New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the private residential leasehold community is located, the persons and entities on the list published and maintained by the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and each resident homeowner. [If a homeowners' association has not been formed, the landowner shall, within 10 business days, notify individual homeowners as required under section 6 of this act] The notifications required pursuant to this subsection shall be by certified mail, return receipt requested, and except that the notification to the resident homeowners shall be by certified mail, return receipt requested, by first-class mail with tracking, and by delivery to each manufactured home on the property. The landowner shall not conclude any agreement to sell the land until after the [30-day] 120-day period [therein] specified by subsection c. of this section has elapsed, but the landowner may negotiate with other potential purchasers and may accept an offer for the sale of a private residential leasehold community before giving the notice and purchase opportunity required by this section or during the 120-day period specified by subsection c. of this section, provided that the purchase agreement is conditioned upon providing the notice and purchase opportunity pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The notice required by this subsection shall include:
136	136
137	137	(1) a statement advising the recipient of the intended sale of the community;
138	138
139	139	(2) a statement of the resident homeowners' rights pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and the deadlines for exercising such rights; and
140	140
141	141	(3) the price, terms, and conditions of the offer the landowner intends to consider or make a counter-offer to, or a copy of such offer or a conditional purchase contract. In the case of a proposed sale, in a single transaction, of more than one private residential leasehold community, or a manufactured home community and one or more other non-related properties, the notice shall state both the aggregate price and the price of the private residential leasehold community in which the resident homeowners receiving the notice reside.
142	142
143	143	b. Upon receipt of [such] a notice mailed pursuant to subsection a. of this section, the [board of directors or trustees of the homeowners' association shall appoint from among its members a committee, not exceeding three persons] resident homeowners may select and designate up to seven representatives, who may be assisted by [such] legal and other professional and technical counsel [as the board may provide], to receive from the landowner [the price and terms of the offer that has been made] any additional information necessary to evaluate the possibility of purchasing the private residential leasehold community, and to negotiate the terms upon which the landowner would be willing to sell the private residential leasehold community [land] to the [homeowners' association] resident homeowner group. [Members] The representatives and their assistants [to the committee] shall be pledged to maintain in confidence any information disclosed to them by the landowner in the course of such negotiations. If any such [member] representative or assistant fails to maintain that confidence, the landowner may bring an appropriate action at law for damages or seek an appropriate equitable remedy.
144	144
145	145	c. Not later than the [30th] 120th day next following [its receipt] the mailing of [offering terms pursuant to] the notice required by subsection [b.] a. of this section, or following a period of extension agreed to by the [committee] resident homeowner designees and the landowner, [the committee appointed pursuant to subsection b. of this section shall report to the board of directors or trustees of] a resident homeowner group may deliver to the [homeowners' association the price and other material terms upon which] landowner a proposed purchase agreement for the private residential leasehold community [landowner has agreed to sell the private residential leasehold community] land [to the association] , along with a statement that 51 percent or more of the resident homeowners consent to the submission of the purchase agreement, with multiple resident owners of a home having a single vote. A resident homeowner may indicate consent to the purchase by signing a petition or any other document that so indicates the resident homeowner's consent. In the absence of any agreement between the landowner and the [committee] resident homeowners, the landowner shall be deemed to agree to such sale upon the identical terms [communicated by him to the committee pursuant to subsection a. of this section. The report of] stated in the [committee shall include such supporting data and documentation as the committee and the landowner have agreed upon to be so submitted and authorized to be disclosed. The price and other terms so agreed upon and reported shall be binding upon the landowner for 10 days next following the submission of the committee's report, and if agreed to by the board of directors or trustees of the homeowners' association and consented to by two-thirds of the homeowners in that private residential leasehold community land shall constitute a contract of sale] notice required by subsection a. of this section, with reasonable financing contingency of at least 90 days, and, at the landowner's option, a refundable earnest money requirement of up to $50,000.
146	146
147	147	d. [During the period provided for negotiations and for consideration by the association's board of directors or trustees under subsection c. of this] This section applies regardless of whether the landowner [shall not conclude any agreement for sale of the private residential leasehold community land to any other party, but may negotiate with any other party as to terms and conditions of such an agreement, contingent upon the failure or refusal of the homeowners to exercise their prior right of purchase under this act] has previously provided one or more notices required pursuant to section 2 of P.L.1991, c.483 (C.46:8C-11).
148	148
149	149	(cf: P.L.1995, c.365, s.3)
150	150
151	151
152	152
153	153	5. (New section) a. If the resident homeowners, by and through a resident homeowner group, make an offer to the landowner to purchase the private residential leasehold community, whether in response to a notice sent pursuant to subsection a. of section 2 of P.L.1991, c.483 (C.46:8C-11) or subsection a. of section 3 of P.L.1991, c.483 (C.46:8C-12) or otherwise, and whether or not the proposed price, terms, and conditions are identical to those proposed by the landowner or in a third party's offer, the private residential leasehold community landowner shall consider the resident homeowner group's offer and negotiate with the resident homeowner group in good faith.
154	154
155	155	b. A landowner shall not accept or conditionally accept an offer for the sale of a private residential leasehold community unless its price, terms, and conditions are universal and applicable to all potential buyers, nor shall a landowner accept or conditionally accept an offer that contains any provision, which would penalize the landowner for entering into an agreement for sale of the community to the resident homeowners or their assignee pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.).
156	156
157	157
158	158
159	159	6. (New section) A resident homeowner group that has rights pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.) may, at its election by the consent of 51 percent of resident homeowners, assign such rights to the municipality in which the resident homeowner group is located, a housing authority located in the municipality, an agency of the State, or a nonprofit corporation or cooperative, for the purpose of continuing the use of the property as a manufactured home community. Upon assignment, the assignee shall be entitled to exercise the rights that P.L.1991, c.483 (C.46:8C-10 et seq.) grants to the assignor-resident homeowner group.
160	160
161	161
162	162
163	163	7. Section 4 of P.L.1991, c.483 (C.46:8C-13) is amended to read as follows:
164	164
165	165	4. The provisions of sections 2 and 3 of [this act] P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12) shall not apply to:
166	166
167	167	a. [Any sale or transfer of the property of a private residential leasehold community which is not made in contemplation of changing that property to a use or uses other than as a private residential leasehold community.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
168	168
169	169	b. Any sale or transfer to a [person who would be included within the table of descent and distribution if] family member of the landowner [were to die intestate] .
170	170
171	171	c. Any transfer by gift, devise, or operation of law.
172	172
173	173	d. Any transfer by a corporation to an affiliate. As used herein, "affiliate" means (1) any shareholder exercising control, or control through attribution as defined [under] pursuant to section 318 of the Internal Revenue Code, of the transferring corporation; (2) any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation; or (3) any other corporation or entity owned or controlled, directly or indirectly, by any shareholder of the transferring corporation. For the purposes of this subsection, control shall mean control as defined in section 304 of the Internal Revenue Code.
174	174
175	175	e. Any transfer by a partnership to any of its partners, whether general partners or limited partners, or partners or individuals to a corporation where the control of the corporation is substantially the same.
176	176
177	177	f. Any conveyance of an interest in a private residential leasehold community incidental to the financing of that community.
178	178
179	179	g. Any conveyance resulting from the foreclosure of a mortgage, deed of trust, or other instrument encumbering a private residential leasehold community, or any deed given in lieu of such foreclosure.
180	180
181	181	h. Any sale or transfer between or among joint tenants or tenants in common owning a private residential leasehold community.
182	182
183	183	i. The purchase of land of a private residential leasehold community by a governmental entity under its powers of eminent domain.
184	184
185	185	j. Any sale which occurs as a result of a condominium or cooperative conversion.
186	186
187	187	k. Any sale of real estate owned by the private residential leasehold community landowner which is adjacent to the private residential leasehold community land, but does not have appurtenant to it private residential leasehold sites or spaces or related recreational facilities.
188	188
189	189	(cf: P.L.1995, c.365, s.4)
190	190
191	191
192	192
193	193	8. (New section) To qualify for an exemption pursuant to section 4 of P.L.1991, c.483 (C.46:8C-13), a transaction shall:
194	194
195	195	a. be in good faith;
196	196
197	197	b. be made for a legitimate business purpose or a legitimate familial purpose consistent with the exemptions listed pursuant to section 4 of P.L.1991, c.483 (C.46:8C-13); and
198	198
199	199	c. not be made for the primary purpose of avoiding the opportunity-to-purchase provisions set forth in P.L.1991, c.483 (C.46:8C-10 et seq.).
200	200
201	201
202	202
203	203	9. Section 5 of P.L.1991, c.483 (C.46:8C-14) is amended to read as follows:
204	204
205	205	5. In addition to other prerequisites for recording, no deed evidencing transfer of title to a private residential leasehold community land shall be recorded in the office of any county recording officer unless, accompanying the application to transfer the title is an affidavit annexed thereto in which the owner of the private residential leasehold community certifies:
206	206
207	207	a. with reference to an offer by [him] the landowner for the sale of the land, [he] the landowner has complied with the provisions of section 2 of [this act] P.L.1991, c.483 (C.46:8C-11); or
208	208
209	209	b. with reference to an offer received by [him] the landowner for the purchase of the land, or with reference to a counter-offer which [he] the landowner has made or intends to make to such an offer, [he] the landowner has complied with the provisions of section 3 of [this act] P.L.1991, c.483 (C.46:8C-12); or
210	210
211	211	c. notwithstanding [his] the landowner's compliance with section 2 or 3 of [this act] P.L.1991, c.483 (C.46:8C-11 or C.46:8C-12), as applicable, no contract has been executed for the sale of the land between [himself] the landowner and [the homeowners' association] a resident homeowner group; or
212	212
213	213	d. the provisions of sections 2 and 3 of [this act] P.L.1991, c.483 (C.46:8C-11 and C.46:8C-12) are not applicable to a particular sale or transfer of the land by [him] the landowner, and compliance therewith is not required; or
214	214
215	215	e. a particular sale or transfer of the land is exempted from the provisions of sections 2 through 5 of [this act] P.L.1991, c.483 (C.46:8C-11 through C.46:8C-14).
216	216
217	217	(cf: P.L.1995, c.365, s.5)
218	218
219	219
220	220
221	221	10. (New section) a. If a landowner sells or is preparing to sell a private residential leasehold community land and has not complied with the requirements of P.L.1991, c.483 (C.46:8C-10 et seq.), any resident homeowner or the Attorney General, or both may file an action in the Superior Court, Law Division, in the county in which the private residential leasehold community is located to enforce the requirements of P.L.1991, c.483 (C.46:8C-10 et seq.). In any such action, the court may grant any relief it deems appropriate, including but not limited to declaratory and injunctive relief, voiding of the sale of the land, actual damages, and punitive damages, and shall award reasonable attorney fees if the resident homeowners prevail.
222	222
223	223	b. A violation of P.L.1991, c.483 (C.46:8C-10 et seq.) shall constitute an unlawful practice pursuant to section 2 of P.L.1960, c.39 (C.56:8-2), and a landowner who violates P.L.1991, c.483 (C.46:8C-10 et seq.) shall be subject to all remedies and penalties available pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
224	224
225	225
226	226
227	227	11. Section 5 of P.L.1977, c.419 (C.45:22A-25) is amended to read as follows:
228	228
229	229	5. a. Unless the method of disposition is adopted for purposes of evasion, the provision of this act shall not apply to offers or dispositions:
230	230
231	231	(1) By an owner for [his] the owner's own account in a single or isolated transaction;
232	232
233	233	(2) Wholly for industrial, commercial, or other nonresidential purposes;
234	234
235	235	(3) Pursuant to court order;
236	236
237	237	(4) By the United States, by this State or any of its agencies or political subdivisions;
238	238
239	239	(5) Of real property located without the State;
240	240
241	241	(6) Of cemetery lots or interests;
242	242
243	243	(7) Of less than 100 lots, parcels, units or interests; provided, however, that with respect to condominiums and cooperatives, this exemption shall not apply, irrespective of the number of lots, parcels, units, or interests offered or disposed of;
244	244
245	245	(8) Of developments where the common elements or interests, which would otherwise subject the offering to this act, are limited to the provision of unimproved, unencumbered open space;
246	246
247	247	(9) In a development composed wholly of rental units, where the relationship created is one of landlord and tenant;
248	248
249	249	(10) Of any form of timesharing ;
250	250
251	251	(11) Of a private residential leasehold community to a resident homeowner group or its assignee pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.), whether or not the form of ownership of the private residential leasehold community would otherwise fall within the definition of planned real estate development pursuant to "The Planned Real Estate Development Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.).
252	252
253	253	b. The agency may from time to time, pursuant to its rules and regulations, exempt from any of the provisions of this act any development, or any lots, units, parcels, or interests in a development, if it finds that the enforcement of this act with respect to such, is not necessary in the public interest or required for the protection of purchasers by reason of the small amount of the purchase price involved, the limited character of the offering, or the limited nature of the common or shared elements.
254	254
255	255	(cf: P.L.2006, c.63, s.40)
256	256
257	257
258	258
259	259	12. The following sections are repealed:
260	260
261	261	Sections 6 through 9 of P.L.1991, c.483 (C.46:8C-15 through C.46:8C-18).
262	262
263	263
264	264
265	265	13. This act shall take effect immediately.
266	266
267	267
268	268
269	269
270	270
271	271	STATEMENT
272	272
273	273
274	274
275	275	This bill gives homeowners in a mobile or manufactured home park (resident homeowners) the opportunity to preserve their communities by providing the resident homeowners the opportunity to purchase their mobile or manufactured home park, or private residential leasehold communities (PRLC), if the landowner anticipates selling or changing the use of the land.
276	276
277	277	Mobile homes, manufactured housing, and factory-built housing are important, unsubsidized, and effective ways to meet New Jersey's affordable housing needs. As many people living in a PRLC own their home but not the land upon which it sits, landowners can wield significant power over housing security. If a landowner pursues redevelopment of the PRLC, resident homeowners are at risk of losing their investment. The scarcity of vacancies in other PRLCs and the high costs of relocating a mobile or manufactured home make relocation nearly impossible. When a PRLC closes, resident homeowners can find themselves pushed into poverty. Accordingly, this bill requires the landowner of a PRLC to provide certain notices, and the right of first refusal, to resident homeowners of the PRLC if PRLC land (community land) is offered for sale, or if the PRLC landowner (landowner) has received a bona fide offer to purchase the community land that the landowner intends to consider, or make a counter-offer on.
278	278
279	279	Specifically, the bill requires the Department of Community Affairs (department) to publish, on the department's Internet website, a list of nonprofit organizations committed to preserving affordable housing, who have notified the department that the nonprofit organization wants to receive notifications that: community land is offered for sale; or that a landowner has received a bona fide offer to purchase that the landowner intends to consider, or make a counter-offer on. The bill requires a landowner to give notice of the offer, as specified in the bill, to the department, the New Jersey Housing and Mortgage Finance Agency, the municipal clerk and the mayor or other chief executive officer of the municipality in which the community land is located, the persons and entities on the list published on the department's Internet website, and to each resident homeowner in the PRLC. The notice is required to state the price, terms, and conditions of the offer and a contact person for further information.
280	280
281	281	Current law enables affected homeowners in a PRLC--by and through an association of unit owners, with two-thirds consent of the unit owners, provided the unit owners have met the price, terms, and conditions of the landowner--to exercise the right to purchase the community land, if the contract is executed within 45 days of receiving the initial notice from the landowner. This bill enables the affected resident homeowners, by and through a resident homeowner group, as defined in the bill, to exercise the right to purchase the community land if 51 percent of the resident homeowners in the PRLC consent to the purchase, and the resident homeowner group meets the price, terms, and conditions of the landowner by executing a contract with the landowner within 120 days of receiving the initial notice. The bill sets forth procedures and a timeline for negotiating, extending, and financing the purchase; permits a landowner to set a refundable earnest money requirement of up to $50,000; provides that a resident homeowner may consent to the purchase by signing a petition or any other document indicating consent; and requires that negotiations be conducted in good faith.
282	282
283	283	The bill permits resident homeowners to select and designate up to seven representatives, who may be assisted by legal and other professional and technical counsel to receive, evaluate, and negotiate the purchase or prospective purchase of the PRLC by the resident homeowner group or a cooperative, nonprofit corporation, or similar entity formed by the homeowners. The representatives would consist of, and be controlled by, the resident homeowners and be open to all resident homeowners in the community.
284	284
285	285	The bill authorizes a resident homeowner group that has rights pursuant to the bill, at the resident homeowner group's election, to assign their rights to the municipality in which the resident homeowner group is located, a housing authority located in the municipality, an agency of the State, or a nonprofit corporation or cooperative, for the purpose of continuing the use of the property as a manufactured home community. Following assignment, the assignee would be entitled to exercise the rights that the bill grants to the assignor-resident homeowner group.
286	286
287	287	Further, the bill permits the resident homeowner group, or the Attorney General, to file an action in the Superior Court, Law Division, for a violation of P.L.1991, c.483 (C.46:8C-10 et seq.), and provides that a violation would constitute an unlawful practice pursuant to the New Jersey consumer fraud act, (CFA) P.L.1960, c.39 (C.56:8-1 et seq.), and subject a landowner to all penalties available pursuant to the CFA. Additionally, the bill exempts from "The Planned Real Estate Development Full Disclosure Act," (PREDFDA) P.L.1977, c.419 (C.45:22A-21 et seq.) the disposition of a PRLC to a resident homeowner group or its assignee, whether or not the form of ownership of the PRLC would otherwise fall within the definition of planned real estate development pursuant to PREDFDA.
288	288
289	289	The bill repeals sections 6 through 9 of P.L.1991, c.483 (C.46:8C-15 through C.46:8C-18), which concern the formation of an association created pursuant to P.L.1991, c.483 (C.46:8C-10 et seq.), notice and recording of a purchase, and the association's purpose and governing documents. The bill omits all references to the creation of an "association of unit owners" to receive, negotiate, consider, and purchase a PRLC, and replaces that language with resident homeowners or resident homeowner group.