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

A1947

ASSEMBLY, No. 1947

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson

SYNOPSIS

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

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
requiring the licensure of community management
entities and supplementing P.L.1993, c.30 (C.45:22A-43 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� a.� The Commissioner of
Community Affairs shall establish a system for the licensure of a community
management entity that intends to contract with the association of one or more
planned real estate developments to perform management services for the
development.� The commissioner shall establish experiential prerequisites that
a person or entity shall be required to meet prior to obtaining a license as a
community management entity.� Following the effective date of this section, an
entity shall not enter a new contract to serve as the community management
entity for an association in the State unless the entity has obtained a license
from the commissioner pursuant to this section.� If a person or entity is found
to be in violation of this requirement, the commissioner shall impose a penalty
on the person or entity in an amount not to exceed $4,000 per contract in
violation.�

���� b.� As used in this section:

���� �Community management entity� means
a person or entity who, for valuable consideration or the expectation thereof,
performs management services for the association of a planned real estate
development.�

���� �Management services� means
services or functions provided or performed on behalf of an association which
include, but are not limited to:

���� (1)� Acting with the authority
of an association in its business, legal, financial, or other transactions;

���� (2)� Executing the resolutions
and decisions of the executive board of an association;

���� (3)� Collecting or disbursing
moneys, preparing budgets, or otherwise administering the finances or other
property belonging to an association; or

���� (4)� Arranging, conducting, or
coordinating meetings; negotiating contracts or otherwise arranging for the
purchase of goods or services on behalf of an association.

���� c.� The commissioner shall
adopt the regulations necessary to effectuate the provisions of this section
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) on or before the first day of the seventh month next following
enactment of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).

���� 2.� This act shall take effect
on the first day of the seventh month next following enactment.

STATEMENT

���� 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.