Expands DCA oversight over common interest communities; establishes trust fund, advisory council, and ombudsman office.

A4212

ASSEMBLY, No. 4212

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� CAROL A. MURPHY

District 7 (Burlington)

SYNOPSIS

���� Expands DCA oversight over common interest
communities; establishes trust fund, advisory council, and ombudsman office.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning common interest communities and supplementing Title 46 of the
Revised Statutes.

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

���� 1.��� As used in this act:

���� �Advisory council� means the
Advisory Council on Common Interest Communities established pursuant to section
3 of
P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� �Association� means the entity
responsible for the administration of a common interest community, which entity
may be incorporated or unincorporated.

���� �Commissioner� means the
Commissioner of Community Affairs.

���� �Common interest community�
means real estate described in a declaration with respect to which a person is
obligated by virtue of unit ownership to pay for a share of: real estate taxes;
insurance premiums; maintenance; or improvement of, or services or other
expenses related to, common elements, other units, or other real estate
described in the declaration.� Common interest community shall include
condominiums, cooperatives, and any other real estate development composed of
individually owned property units and common property jointly owned and managed
by the unit owners as an association.

���� �Department� means the
Department of Community Affairs.

���� �Office� means the Office of
the Ombudsman for Common Interest Communities established pursuant to section 4
of
P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� �Ombudsman� means the person
appointed as head of the office pursuant to section 4 of P.L.��� , c.��
(C.������ ) (pending before the Legislature as this bill).

���� �Trust fund� means the Common
Interest Community Homeowners' Association Trust Fund established pursuant to
section 5 of P.L.��� , c.�� (C.������ ) (pending before the Legislature as this
bill).

���� 2.��� a.� With respect to
common interest communities, the department shall have authority to:

���� (1)�� initiate, receive, hear
and review complaints, adopt rules, hold hearings, make findings and impose
sanctions with regard to any of the following matters:

���� (a)�� maintaining and granting
access to records required to be maintained by the association and made
available to homeowners;

���� (b)�� through the auspices of
the office the comportment of fair elections for association governing board
members and officers and the establishment of voting procedures and forms as
the commissioner finds necessary, including, but not limited to, ballots, absentee
ballots and proxy ballots;

���� (c)�� establishing and
implementing a fair and efficient procedure for the resolution of disputes
between associations and homeowners;

���� (d)�� determining whether a
conflict of interest on the part of association trustees, officers and
employees exists and whether to impose a sanction;

���� (2)�� issue subpoenas for the
production of documents and the attendance of witnesses with respect to the
investigation of any complaint;

���� (3)�� forward to the
appropriate governmental officials any information that may indicate violation
of any statute, criminal or otherwise, or any rules of court or professional
conduct;

���� (4)�� render advisory opinions
as to whether a given state of facts or circumstances constitutes a violation
of any statute or rule applicable to common interest community associations;

���� (5)�� enforce all statutes and
regulations imposing any duty upon common interest community associations;

���� (6)��
remove
from office, after notice and the opportunity for a hearing, any governing
board member or officer who shall fail to comply with any order issued by the
commissioner to cease and desist from violating any statute, rule, court order
or proper vote of the owners.� Following any such removal, the department shall
provide such assistance as may be required by the association of a common
interest community in scheduling and holding elections or in managing the
association until such time as the governing board is able to function
properly.� Notice, which shall include the underlying basis therefore, of any
fine imposed upon the association or a board member, or removal of an governing
board member or officer by the department shall be provided to all homeowners
by the governing board within 30 days of the action and shall be entered upon
the minutes of the next meeting of the governing board or of the association;

���� (7)�� set
standards and procedures for dispute resolution at the association level in conjunction
with the office in accordance with section 4 of P.L.�� , c.�� (C.��� ) (pending
before the Legislature as this bill);

���� (8)�� select,
assign and provide trained and impartial volunteer mediators for the purpose of
resolving disputes in conjunction with the office in accordance with section 4
of P.L.���� , c.���� (C.����� ) (pending before the Legislature as this bill);
and

���� (9)�� promulgate all rules and
regulations necessary to effectuate P.L.���� , c.���� (C.������ ) (pending
before the Legislature as this bill) in accordance with the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

���� b.��� (1) If the department
determines, after notice, that an officer, governing board member, or property
manager of an association has:

���� (a)�� violated the "Condominium
Act," P.L.1969, c.257 (C.46:8B-1 et seq.), "The Planned Real Estate
Development Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.),
or any other statute or regulation governing homeowners' associations
hereinafter enacted;

���� (b)�� directly or through an
agent or employee, knowingly engaged in any violation of the governing
documents of the association; or

���� (c)�� violated any lawful
order or rule of the department;

then the department may issue an
order requiring the person to cease and desist from the unlawful practice or to
take such other affirmative action as in the judgment of the department will
carry out the purposes of P.L.��� , c.��� (C.������ ) (pending before the
Legislature as this bill).

���� (2)�� If the department makes
a finding of fact in writing that the public interest will be irreparably
harmed by delay in issuing an order, it may issue a temporary cease and desist
order.� Every temporary cease and desist order shall include in its terms a provision
that upon request a hearing shall be held within 10 days of such request to
determine whether it becomes permanent.� Such temporary cease and desist order
shall be forwarded by certified mail.

���� (3)�� The department shall
provide an opportunity for a hearing for any association of a common interest
community prior to the imposition of any sanction, including monetary fines.�
Associations shall be subject to fines only after they have failed or refused
to comply with an order of the department.� The maximum fine that may be levied
against an association for failure to comply with an order to cease and desist
from continuing to violate an order of the department shall be the greater of
$2,500 or one percent of the total annual expenditures as listed on the most
recently adopted budget, per order. The department may impose a monetary fine
on a board member or members, not to exceed $5,000, if it is determined that
the board member or members are solely responsible for the continued failure of
the board to comply with an order or orders issued pursuant to this section,
and the assessment of a fine against the association would be unfair under the
circumstances.� In such a case, the offending board member may not use the
association attorney, but may obtain private counsel at the member�s own
expense.� Appeal from a department determination pursuant to this section may
be made to the Office of Administrative Law.

���� (4)�� The penalties pursuant
to this section may be collected in a summary proceeding pursuant to the
"Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et
seq.).� Jurisdiction to enforce such penalties is hereby conferred upon the
courts specified by section 2 of P.L.1999, c.274 (C.2A:58-11).� Suit may be
brought by the State of New Jersey; payment of a money judgment pursuant hereto
shall be remitted to the State Treasurer, for deposit into the trust fund;

���� c.���� The authority provided
to the department pursuant to
P.L. c, (C. ) (pending
before the Legislature as this bill) shall only apply to common interest
communities with over 100 units and are intended to supplement, not replace,
existing oversight authority provided under the "Condominium Act,"
P.L.1969, c.257 (C.46:8B-1 et seq.), "The Planned Real Estate Development
Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.), or any other
statute or regulation governing homeowners' associations.

���� 3.��� a.� There is established
in, but not of, the Department of Community Affairs, the Advisory Council on
Common Interest Communities.� The council shall consist of nine members
appointed by the Governor, and shall include two representatives of the New
Jersey Common-Interest Homeowners Coalition, one representative from the League
of Women Voters of New Jersey, and one representative of the Center for
Government Studies, Rutgers University.�� The other five members shall be
persons who own units in common interest communities, not more than two of whom
serve, or have served within the immediately preceding 48 months, on the
governing boards of their respective associations.� The ombudsman appointed
pursuant to section 4 of P.L.��� , c.��� (C.������ ) (pending before the
Legislature as this bill) shall serve as an ex officio, nonvoting member of the
advisory council.

���� Within 60 days of the
effective date of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill), and at least one month prior to the expiration of the term of a
member nominated by an organization listed above, that organization shall submit
to the Governor three nominees for consideration, from which the Governor may
choose.� If any organization does not submit three nominees for consideration
at any time required, the Governor may appoint a member of the Governor's
choice.

���� Members shall be appointed to
two-year terms; however, of the five unit owner members first appointed, four
shall be appointed initially to a one year term.

���� b.��� The functions of the
advisory council shall be to:

���� (1)�� receive, from the public
and self-initiated, input regarding issues of concern with respect to common
interest communities and recommendations for changes in the law concerning
common interest communities.� The issues that the advisory council shall consider
include, but are not limited to, the rights and responsibilities of the unit
owners in relation to the rights and responsibilities of the association;

���� (2)�� review, evaluate, and
advise the department concerning revisions and adoption of rules affecting
common interest communities; and

���� (3)�� recommend improvements,
if needed, to the education or other current programs impacting common interest
communities.

���� 4.��� a.� There is established
in the Department of Community Affairs the Office of the Ombudsman for Common
Interest Communities, which, for purposes of separation from activities related
to enforcement powers granted to the commissioner over developers, and over
owner-controlled governing boards, shall be separate and apart from any other
division within the department.

���� b.��� The office shall be
headed by the ombudsman, who shall be appointed by the commissioner and shall
not function in the department in any other capacity other than to carry out
the purposes of this section.� The ombudsman shall be an attorney in good
standing admitted to the bar of New Jersey and qualified by experience in the
areas of planned real estate developments and alternative dispute resolution
procedures.� No person who shall have been a unit owner or an employee of, or
provider of professional or business services to, any homeowners' association
of a common interest community or organization representing homeowners'
associations within the preceding 36 month period shall be eligible for
appointment as ombudsman. �An officer or full-time employee of the office may
not actively engage in any other business or profession; serve as the
representative of any political party, executive committee, or other governing
body of a political party; serve as an executive, officer, or employee of a
political party; receive remuneration for activities on behalf of any candidate
for public office; or engage in soliciting votes or other activities on behalf
of a candidate for public office.� The ombudsman or any employee of the office
may not become a candidate for election to public office unless the ombudsman
or employee first resigns office or employment, as applicable.� The office
shall be funded from moneys deposited into the trust fund.� The ombudsman shall
have the powers that are necessary to carry out the duties of the office,
including the following specific powers:

���� (1)�� maintain access to and
use of all files and records of the department;

���� (2)�� employ professional and
clerical staff as necessary for the efficient operation of the office;

���� (3)�� issue reports and
recommendations to the department, its divisions, and the advisory council.�
The ombudsman shall make such recommendations as deemed appropriate for
legislation relative to departmental rules, jurisdiction, personnel, and
functions;

���� (4)�� act as liaison between
the department, unit owners, governing board members, community association
property managers, and other affected parties.� The ombudsman shall develop
policies and procedures to assist unit owners, governing board members,
community association property managers, and other affected parties to
understand their rights and responsibilities as set forth in the statutes and
the governing documents governing their respective association;

���� (5)�� coordinate and assist in
the preparation and adoption of educational and reference material, and
endeavor to coordinate with private or volunteer providers of these services,
so that the availability of these resources is made known to the largest
possible audience;

���� (6)�� monitor and review
procedures and disputes concerning common interest community elections or
meetings, including, but not limited to, recommending that the department
pursue enforcement action in any manner where there is reasonable cause to
believe that election misconduct has occurred;

���� (7)�� monitor and mediate
claims for "repair and deduct" made pursuant to section 16 of
P.L.1969, c.257 (C.46:8B-16);

���� (8)�� recommend changes to the
department for changes in rules and procedures for the filing, investigation,
and resolution of complaints filed by unit owners, associations, and managers;

���� (9)�� provide resources to
assist members of governing boards and officers of associations to carry out
their powers and duties consistent with the statutes, department rules, and the
common interest community governing documents; this activity shall be coordinated
with the Center for Government Services, Rutgers University and shall include
listings of appropriate reference and educational materials and general budgetary
and financial guidance. The ombudsman and the Center for Government Services may
make contractual arrangements to provide authorized training and materials with
recognized trade organizations currently providing such services to board
members;

���� (10)� (a)� �encourage and
facilitate voluntary meetings with and between unit owners, governing boards,
community association property managers, and other affected parties when the
meetings may assist in resolving a dispute within a community association
before a person submits a dispute for a formal or administrative remedy. �The
ombudsman shall act as a neutral resource for both the rights and
responsibilities of unit owners, associations, and board members;

���� (b)�� develop and maintain, in
consultation with the Association Regulation Unit in the Department of
Community Affairs, a pool and list of volunteers throughout the State who have
been trained in dispute resolution and to establish procedures and a system of
training for such volunteers;

���� (c)�� obtain and compile
information concerning alternative dispute resolution proceedings throughout
the State that may serve as a resource on the methods used to resolve disputes,
for the benefit of associations, homeowners and volunteer dispute resolvers;

���� (d)�� coordinate the selection
and agreement by the parties to a mediator and the dates agreed upon for
mediation;

���� (e)�� conduct dispute
resolution workshops for governing board members and homeowners;

���� (11)� assist associations in
their dealings with municipalities and with other State and local regulatory
agencies;

���� (12) assist owners of low and
moderate income units in inclusionary common interest communities and their
governing boards in developing methods to ensure the continued affordability of
those units, including grants or loans through the Council on Affordable Housing;
and

���� (13) assist homeowners in
common interest communities in which there are shared utility bills to pay
those bills when the association has fallen into arrears and the continued
habitability of the units is at stake.� The commissioner may issue an order to
a governing board to enter into a payment agreement in such an instance, and
may remove a governing board member who fails to comply with such an order.

���� 5.��� a.� Within 90 days of
the effective date of P.L. , c. (C. ) (pending
before the Legislature as this bill), and annually on the same date thereafter,
all homeowners associations shall register with the commissioner, on such form
as the commissioner shall prescribe, and shall pay an annual registration fee,
which the commissioner shall establish by rule, which fee shall not exceed the
sum of three dollars for each unit to which a vote as a member of the
association is allocated within the common interest community in accordance
with P.L. , c. (C. )
(pending before the Legislature as this bill). �This fee shall not be adjusted
annually by the commissioner. Associations shall collect the fee on a per
voting unit basis and report the fee paid in their financial documents separate
from any other assessment or association charges.� An association may file a
lien on a unit if the owner thereof refuses to pay the registration fee as
required by this section, and may also impose fines therefor and avail itself
of the procedure outlined in section b. of this section.� Associations formed
subsequent to the effective date of P.L. , c. (C. )
(pending before the Legislature as this bill) shall register within 30 days of
the formation of the association; provided, however, that any association
required to be registered with the department shall be registered not later
than the date of registration of the common interest community.� Any
association registration fee not paid in full by the date due shall be subject
to penalty charges in the amount of one and one half percent per month or
portion thereof on the unpaid balance. �An association that has not paid in
full all outstanding fees, together with any penalty thereon, shall not have
the authority, notwithstanding any other law to the contrary, to impose fines,
record liens, or restrict privileges until the balance is paid in full, or, in
flagrant cases, and upon proper notice and due process allowing for a hearing,
may have its officers removed from office or its corporation status voided,
pursuant to an order of the commissioner.

���� b.���
In
cases of extreme delinquency in the payment of common expenses of at least 6
months or more, or in the case of delinquency of payment of common fees, late
fees, or fines totaling more than $2,500, an association shall be eligible to
apply to the office for formal arbitration to reduce the outstanding charges to
a judgment for a writ of attachment against the delinquent owner or owners.�
Upon a finding by the arbitrator that the outstanding assessments, charges, or
fines were properly imposed by an association upon the owner, and are duly
owed, and the delinquency is not based on severe financial inability to pay,
such as illness or loss of employment, a lien may be recorded on the defaulting
owners' unit if not previously filed, and the arbitrator may apply, upon the
approval of the ombudsman, for a judgment for a writ of attachment from a court
of competent jurisdiction in the name of the association against the personal
assets of the owner of the unit.� If such a writ is obtained by an arbitrator,
the arbitrator may cause a levy to be issued on behalf of the association upon
any bank accounts or other known assets of an owner and shall turn over any
proceeds obtained to the association to which such amounts are due and owing.

���� c.���� All registration fees
and penalties received by the department pursuant to this section shall be
deposited as specified in the paragraphs below in an interest bearing, non-lapsing
revolving fund, entitled the "Common Interest Community Homeowners'
Association Trust Fund," to be held by the State Treasurer.� Moneys held
in this non-lapsing revolving fund shall be continuously appropriated to the department
for the following purposes and in the proportions specified:

���� (1)�� those amounts as
available from the funds deposited into the fund in accordance with section 6
of P.L.���� , c.���� (C.����� ) (pending before the Legislature as this bill),
for the purposes of making grants to associations comprised, in part or in
whole, of low and moderate income households for assistance to those households
in the payment of the common maintenance expenses;

���� (2)�� those amounts as
available from the registration fees collected pursuant to this section as
necessary in the discretion of the commissioner for:

���� (a)�� the Center for Government
Services, Rutgers University for the purposes of providing educational training
or training materials for board members;

���� (b)�� the Center for
Negotiation and Conflict Resolution, Rutgers University for the purposes of
providing conflict resolution training for board members, property managers and
owners;

���� (c)�� the Association
Regulation Unit in the Department of Community Affairs, for the purpose of
providing arbitration services and for training of volunteer mediators; and

���� (d)�� the purposes of
defraying administrative costs of the department in the enforcement and
effectuation of P.L.�� , c.�� (C.��� ) (pending before the Legislature as this
bill) and P.L.1969, c.257 (C.46:8B-1 et seq.), which shall include funding for
the booklet and advisory council expenses, if any, as required by P.L.���� ,
c.���� (C. ) (pending before the Legislature
as this bill).

���� d.��� All funds collected
shall be dedicated and expended solely for the purposes provided in this
section.� In the event funds are appropriated or transferred from this fund for
any other purpose in contradiction of this section, then the obligation of
associations to pay the annual registration fee pursuant to this section shall
be suspended until such time as the full amount of the funds transferred or
appropriated is reinstated to the fund, and all costs which cannot be paid from
the fund due to insufficiencies thereafter shall be paid from the General Fund
of the State.� Any claims that transfers have been made outside of the purposes
of this section may be submitted to the Joint Budget Oversight Committee of the
State Legislature, or its successor committee for its review.

���� e.���� All associations which
register shall also file annually thereafter an annual report, which shall
include:

���� (1)�� the names of the current
officers or trustees of the governing board, employees names, and salaries and
bonuses paid, if any;

���� (2)�� a copy of the most
recent bylaws and rules, if any were changed since the previous report;

���� (3)�� a copy of the most
recent budget adopted and financial statement;

���� (4)�� the number and nature of
complaints and ADR proceedings entered into by the board as a result of the
complaints;

���� (5)�� the amounts and nature
of fines imposed; and

���� (6)�� any information deemed
to be pertinent by the commissioner.

���� The report required by this
section shall be distributed annually to all of the members of the association
by the association.� This report may contain a copy of the association�s most
recent bylaws and rules, but it is not required to contain such information.

���� 6.��� The department shall
prepare and publish a booklet, which shall be made available at cost to the
general public, to associations and to unit owners in common interest
communities to serve as a general guide to common interest community
associations.� The booklet shall be distributed by the association to each unit
owner free of charge initially, and at cost as required for distribution to
purchasers; it shall be the duty of each selling unit owner to provide a copy
of the booklet to a purchaser of the unit at or before the time of signing of
the sales contract.� The booklet shall include, at a minimum, the following:

���� a.���� an explanation of the
nature of home ownership in a common interest community and a glossary of
relevant terms, including, but not limited to, "master declaration,"
"bylaws," "master deed," "covenants and restrictions,"
and "common elements";

���� b.��� a description of the
rights and responsibilities of unit owners, including reference to applicable
statutes and rules;

���� c.���� a description of the
duties and powers of, and restrictions on, executive boards, including
reference to applicable statutes and rules. The booklet shall include
information concerning conflict of interest requirements applicable to
executive board members and officers and to professionals hired by associations
and shall also include reference to any other sources of information that may
be recommended by the commissioner as being of assistance to executive board
members and officers in the discharge of their duties and to the public and
professional bodies having authority to investigate allegations of statutory or
rule violations by board members and officers or by managers, attorneys,
accountants, or other professionals;

���� d.��� a description of the
statutory and regulatory requirements for association bylaws or rules and such
other material as the commissioner shall deem useful; and

���� e.���� a listing of documents
and other information that a potential purchaser of a unit in a common interest
community should obtain before entering into a contract to purchase a unit,
including, but not limited to: copies of the association's governing documents;
a copy of the latest capital reserve study, if any, showing the condition, life
expectancy and replacement costs of major mechanical systems and other common
elements; any litigation pending against the association; any pending notices
or orders issued by the department or any other governmental entity; the
association's procedures for alternate dispute resolution, adopting rules and
regulations, providing access to records, approval of budgets, and review of
unit owners' applications to do work on their units; delinquency and
foreclosure rates; the association's insurance coverages; and governmental and
non-governmental remedies available in the event of violation of the rights of
unit owners. These documents and this information shall be made available to
prospective purchasers upon written request and copies shall be provided, for a
charge not exceeding the reasonable cost of copying or printing, to any person
who has contracted to purchase a unit within the jurisdiction of the
association.

���� 7.��� There shall be set aside
from the registration fees collected from developers pursuant to section 7 of
P.L.1977, c.419 (C.45:22A-27) and the regulations promulgated pursuant thereto,
an amount equal to $10 per lot, parcel, unit or interest, which amount shall be
deposited into trust fund for the purposes of making loans to common interest
community associations which are formed to manage communities in which are included
units restricted to occupancy by low and moderate income households.

���� 8.��� This act shall take
effect on the first day of the sixth month after enactment, except that the
Commissioner of Community Affairs shall immediately take such administrative
action as necessary to effectuate the provisions of P.L.�� �, c.�� �(C. �������)
(pending before the Legislature as this bill).

STATEMENT

���� This bill enhances the
Department of Community Affairs (DCA) regulatory powers over owner-controlled
governing boards found within common interest communities; creates an Advisory
Council on Common Interest Communities; establishes the Office of Ombudsman for
Common Interest Communities; and creates Common Interest Community Homeowners�
Association Trust Fund.� Additionally, this bill requires DCA to prepare and
publish and distribute a booklet that serves a general guide to community
associations to owners in common interest communities.� Lastly, the bill provides
funding for grants and loans to homeowner associations maintaining common
property in inclusionary common interest communities containing units reserved
for low and moderate income families.

���� Under this bill common
interest communities would include condominiums, cooperatives, and any other
real estate development composed of individually owned property units and
common property jointly owned and managed by the unit owners as an association.

���� Under the bill DCA would have
the power to initiate, receive, hear and review complaints, adopt rules, hold
hearings, make findings and impose sanctions.� Additionally, DCA would have the
power to issue subpoenas for the production of documents and the attendance of
witnesses with respect to the investigation of any complaint; to forward to the
appropriate governmental officials any information that may indicate violation
of any statute, criminal or otherwise, or any rules of court or professional
conduct; to render advisory opinions as to whether a given state of facts or
circumstances would constitute a violation of any statute or rule applicable to
associations; to enforce all statutes and regulations imposing any duty upon
associations;
to remove from office, after notice and
the opportunity for a hearing, any governing board member or officer who fails
to comply with any order issued by the commissioner to cease and desist from
violating any statute, rule, court order or proper vote of the owners; to set
standards and procedures for dispute resolution at the association level; and
to select, assign and provide trained and impartial volunteer mediators for the
purpose of resolving disputes in conjunction with the Office of the Ombudsman
of Common Interest Communities.�
These new authorities provided to DCA
would only apply to common interest communities with over 100 units.

���� The bill also creates an
Advisory Council on Common Interest Communities to assist DCA in formulating
and revising its regulations and policies regarding common interest
communities.� Additionally, the advisory council would recommend improvements
to DCA, if needed, in the education or other current programs impacting common
interest communities.� The advisory council would consist of nine members
appointed by the Governor, and would contain representative members for owners,
board members, governmental entities and a nonpartisan voting rights group.

���� This bill creates a new entity
within DCA, known as the Office of the Ombudsman for Common Interest
Communities. �This office would assist homeowners in understanding their rights
and responsibilities and the remedies available to them, as well as assist
governing board members and officers of associations in receiving appropriate
training to allow them to properly discharge their functions and duties.�
Additionally, this office would function as a liaison between associations and
any entity concerning disputes regarding code compliance or inspections.� The
costs associated with the Office of the Ombudsman for Common Interest
Communities under the bill would be met by a registration fee required to be
paid annually by each unit owner assigned a vote as a member of a common interest
community. �The fee is not subject to being increased by the commissioner.

���� Under the bill, 90 days after
enactment all homeowners associations are required to register with DCA, and
pay an annual registration fee.� The fee would not exceed three dollars for
each unit to which a vote as a member of the association is allocated within
the common interest community.� This fee would not be adjusted annually by the
commissioner. �Associations would collect the fee on a per voting unit basis
and report the fee paid in their financial documents separate from any other
assessment or association charges.� All registration fees and penalty moneys
received by DCA would be deposited in an interest bearing, non lapsing
revolving fund, entitled the "Common Interest Community Homeowners'
Association Trust Fund," to be held by the State Treasurer.� Moneys held
in this non-lapsing revolving fund would be continuously appropriated to DCA
for the purposes of making grants to associations comprised, in part or in
whole, of low and moderate income households for assistance to those households
in the payment of the common maintenance expenses.� As well as, used by the
Center for Government Services, Rutgers University; for the purposes of
providing educational training or training materials for board members; the Center
for Negotiation and Conflict Resolution, Rutgers University for the purposes of
providing conflict resolution training for board members, property managers and
owners; the Association Regulation Unit in DCA for the purpose of providing
arbitration services and for training of volunteer mediators; and the purposes
of defraying administrative costs of the department for the booklet and
Advisory Council expenses, if any.

���� Under the bill, DCA is
required to prepare and publish a booklet, which is to be made available at
cost to the general public, to associations and to unit owners in common
interest communities to serve as a general guide to community associations.�
The booklet would be distributed by the association to each unit owner free of
charge initially, and at cost as required for distribution to purchasers; it
will be the duty of each selling unit owner to provide a copy of the booklet to
a purchaser of the unit at or before the time of signing of the sales contract.

���� Under the bill, funding for
grants and loans to homeowner associations maintaining common property in
inclusionary common interest communities containing units reserved for low and moderate
income families, would be supported by a set-aside of a portion of the
registration fees now charged developers of such communities.