Laws Impacting New Jersey Associations

  • New Jersey Condominium Act, N.J.S.A. 46:8B-1 et. seq.: The Act applies to condominium associations created after January 7, 1970, and provides a comprehensive legal framework for, without limitation, formation, apportionment of interest, common expenses, and voting rights; association administration and powers; and purchaser protection in New Jersey. Condominium associations must also comply with PREDFDA and New Jersey’s Nonprofit Corporation Act if organized as a non-profit.

  • New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA), N.J.S.A. 45:22A-21, et seq., The Act became effective November 22, 1978, and governs some aspects of common interest communities. The Act was amended on July 13, 2017, to establish that all unit owners are members of the association, provide basic election participation rights for certain residents of common interest communities, and address the manner in which bylaws are amended. The Department of Community Affairs is charged with enforcing the law.

    Recommended Reading:

    • New Jersey Administrative Code - Planned Real Estate Development Full Disclosure Act Regulations - N.J.A.C. 5:26-1.1 - These rules were adopted to help homeowners more easily comply with the PREDFDA.

    • Moore v. The Radburn Association, Inc., BER-C-394-06 (N.J. Super. Ch. Div. 2008); 997 A.2d 231 (2010)

  • Homeowners’ Association Law - New Jersey does not have a specific statute governing homeowners’ associations. However, if an association is organized as a non-profit, as is the case with most New Jersey associations, it will be governed by the New Jersey Nonprofit Corporation Act, specifically with regard to corporate structure and procedure. Homeowners’ associations must also comply with New Jersey’s Planned Real Estate Development Full Disclosure Act.

    Importantly, homeowners’ associations are bound by their governing documents (Bylaws, Declaration, Articles of Incorporation). The association’s Bylaws generally dictate, among other things, the duties and responsibilities of its board, meetings, voting procedures, elections, and management of the association.

    The association’s Declaration will generally set property restrictions, obligations of the association and its members, and property rights. The Articles of Incorporation typically outline and define the association’s corporate status, powers, and limits.

  • New Jersey Nonprofit Corporation Act - N.J.S.A. 15A:1-1 et. seq.: The law governs non-profit corporations with regard to corporate structure and procedure in the state of New Jersey. Most condominiums and homeowners’ associations in New Jersey are organized as non-profits. Visit the Division of Revenue and Enterprise Services to search the corporation status of an association.

  • The Cooperative Recording Act of New Jersey, N.J.S.A. 46:8D-1 et seq.: The Act recognizes and provides a structure for cooperative ownership, including formation, management, voting, and ownership rights. Cooperatives must also comply with PREDFDA and New Jersey’s Corporations statute, N.J.S.A. 14A:1-1 et. seq.

  • New Jersey Law Against Discrimination [PDF], N.J.S.A. 10:5-1 et. seq.: The law protects New Jerseyans from discrimination based on race, creed, color, national origin, ancestry, age, marital status, affectional or sexual orientation, familial status, disability, liability for service in the Armed Forces of the United States, nationality, sex, gender identity or expression or source of lawful income used for rental or mortgage payments, subject only to conditions and limitations applicable alike to all persons. The Act provides state-level protections similar to the federal Fair Housing Act (FHA) and the American With Disabilities Act (ADA).

    Recommended Reading:

  • HOA Debt Collection Law - New Jersey does not regulate debt collection practices at the state level. However, debt collectors (associations attempting to collect past due assessments do not qualify as debt collectors) must comply with the federal Fair Debt Collection Practices Act (FDCPA).

    The law prohibits third-party debt collectors from using abusive, unfair, or deceptive practices when attempting to collect a debt. HOA fees are considered “debts” under the FDCPA, and homeowners are protected “consumers.” Victims can file a complaint against a debt collector who is violating the law with the New Jersey Division of Consumer Affairs, or Consumer Financial Protection Bureau (CFPB). Victims also have the right to sue a debt collector in state or federal court within one year from the date of the violation under the FDCPA.

    Recommended Reading:

State Government Agencies

Here’s the Association Regulation Information Packet and Complaint Form.

HOA Information and Documents

  • HOA Directory - Homeowners can enter the name of the community or subdivision to find the association’s contact information, list of board members, and corporation documents, such as the association’s articles of incorporation.

  • HOA Documents - The association’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Amendments to CC&Rs, Bylaws, Lien Notices, HOA Notices, Plats, Maps, and other community documents can be found by visiting the county recorder’s office website in which the association is located. The association’s CC&Rs must be recorded with the county land records to be enforceable.

  • State of New Jersey Transparency Center - Find property information (Map).

Legal Resources

  • New Jersey Legislative Statutes: Free public access to Administrative Codes and New Jersey’s Statutes. To find the laws cited below, enter the name or number of the statute in the search box of the government agency’s website.

  • New Jersey State Bar Association - The office gives the public access to a lawyer directory, lawyer referral service, free or low-cost legal services, and other information related to lawyers in New Jersey.

  • New Jersey Courts - The website gives the public access to court information, documents, rules, legal opinions, court cases, self-help services, and lawyer referral services. The agency is responsible for protecting the public by overseeing the integrity of the legal profession. Homeowners can find an attorney’s information, disciplinary history, or file a complaint.

  • Legal Services of New Jersey - The office coordinates civil legal assistance to low-income people in New Jersey.

 

DISCOVER MORE

Educational HOA articles. Giving you facts, not opinions.
Homeowners' Association As Vacation Destination: Short-Term Rental Restrictions in HOAs

Even if a community has a valid reason to restrict short-term rentals, it still needs legal and/or contractual authority to support the restriction. Typically, the authority comes from an HOA's declaration, from state law, or a combination of the two. A declaration is a contract among property owners in a community. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. If everyone complies, the community as a whole will benefit—or at least that is the idea.

Enforcing Conformity: Home Improvement Projects And Architectural Review Boards In HOAs

The U.S. legal system generally views any land-use restrictions with suspicion. However, the law also recognizes that reasonable restrictions are sometimes justified if they benefit the community as a whole. With that in mind, courts throughout the country have consistently upheld the right of HOAs to impose architectural restrictions as long as the restriction serves a legitimate purpose, is within the association's power under state law and/or the community's declaration, and does not violate any other law or public policy.

Step-By-Step Guide To The HOA Assessment Collections Process

When you purchase a property in a community with a homeowners’ association, you’re also acquiring the obligation to pay regular assessments. Unfortunately, though, homeowners are sometimes financially unable to pay assessments. Homeowners faced with potential collections action must understand how the HOA collections process works and the legal rights and redress available for both homeowners and the association. This guide will help all community members, including the board, resolve conflict, and avoid escalation.

Preventing the Spread of COVID-19 Within HOA Communities

On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 (the medical condition caused by the novel coronavirus SARS-CoV-2), a global pandemic. HOAs and condominium associations have an essential role to play in slowing the spread of COVID-19. By applying the Center for Disease Control and Prevention (“CDC”) recommendations in the planned community setting, HOA board members, owners, residents, visitors, and employees can help prevent illness in their communities and keep their loved ones, friends, and neighbors healthy and safe.

HOA Powers and Obligations In Emergency Situations

The fundamental purpose of a homeowners’ association is to benefit the community and its members. Usually, that means preserving the aesthetic beauty of the neighborhood by maintaining common areas and ensuring homeowners keep up their properties. Or, it might mean using pooled resources to make life easier for the entire community—through road and sidewalk repairs or snow removal, for instance. Most of the time, the overall goal is to increase property values and raise the living standard in the community. In an emergency, though, an HOA’s role can take on an entirely new dimension.

Weathering The Storm: Coronavirus And Its Financial Impact on Homeowners

One way or another, future historians will consider the Coronavirus Pandemic among the most noteworthy events of the early 21st Century. The full economic impact on homeowners and their families cannot yet be precisely predicted, but it is likely to be immense. Taking the necessary precautions to avoid exposure to the virus and preparing for the financial ramifications will require prudence, careful planning, and maybe even a little creative thinking. Homeowners can't completely avoid the fallout from Coronavirus, but there are a few measures that could hopefully soften the blow.