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  • NJ S2492
  • Enhances resident voting participation rights in common interest communities.
Introduced
(9/8/2016)
In Committee
(12/5/2016)
Crossed Over
(5/22/2017)
Passed
(5/25/2017)
Signed
(7/13/2017)
Dead/Failed/Vetoed
2016-2017 Regular Session
This bill enhances resident voting participation rights in common interest communities. New Jersey contains many planned real estate developments in which an association, through its executive board, is responsible for decisions concerning cost of assessments, the maintenance and use of common areas and facilities within the community, as well as other matters of importance to unit owners and tenants. This bill defines an "association member" as a unit owner, and may also include tenants to the extent that the association's bylaws permit tenant membership in the association. Recently-established associations may also permit the developer's membership if all the units have not yet been sold. The bill also creates a definition of "voting-eligible tenant," meaning a tenant residing in a development that permits the tenant's participation in executive board elections through its bylaws. The bill confines voting eligibility to the association members and voting eligible tenants, meaning more than one person per unit could potentially have voting rights. However, the voting influence of a unit would not be altered by the number of association members and voting-eligible tenants connected to the unit. The bill requires that the executive board shall ensure that notice of any executive board election is provided to all association members, and voting-eligible tenants, at least 30 days prior to the election. The bill further requires that each resident-owner in good standing shall have the authority to (1) nominate oneself or any other resident-owner in good standing to run for any position on the executive board; and (2) accept a nomination and run for any membership position on the executive board. The bylaws may permit others to also make nominations and run for executive board positions. The bill requires common interest communities to also allow all association members in good standing, and voting-eligible tenants, to vote in each election for each position of membership on the executive board. Certain types of associations, however, are exempted from some of these requirements. These exemptions consist of the following: 1) In a mixed-use development, certain executive board members may be elected exclusively by the members and voting-eligible tenants of units of the same use-type; 2) Associations may distribute vote shares proportionally to the number of units in different geographical areas of the development, so that the association members and voting eligible-tenants in each area nominates and elects only certain executive board members representing their part of the development; 3) If residents of affordable housing represent a minority of housing units in the development, then associations may limit the number of executive board members that certain association members and voting-eligible tenants may vote for, in order to ensure the election of one or more affordable housing residents; 4) An association may allow the members of the executive board to be separately nominated and elected by the association members, and voting-eligible tenants, of separate developments, so long as each development's voting weight is proportional, based on the number, value, or size of the units; and 5) The executive board of an umbrella or master association that does not directly contain units does not have to be elected by individuals who are association members, and voting-eligible tenants, of units within the geographical area of the umbrella or master association, provided the members of the executive board serve as executive board members of another planned real estate development executive board, and have been nominated and elected by the association members, and voting-eligible tenants, of units in that planned real estate development. Under this bill, unless the bylaws provide for the voting interest of each unit to be proportional to the unit's value or size, each unit shall be entitled to one vote regardless of the number of association members and voting-eligible tenants residing in a unit. The bill requires each position on the executive board to be up for election at least as often as once every four years. Finally, most common interest community bylaws include a method through which the bylaws themselves may be amended through a vote of the association membership. For those associations that do not include a method for amendment by the association membership, or only allow association members to amend the bylaws through a majority vote exceeding a two-thirds majority, this bill establishes a mechanism though which association members would be able to compel the executive board to hold a meeting at which the association membership could amend the bylaws through a two-thirds majority vote. Compelling this vote would require 15 percent of the association members to present a request for a meeting, at which the vote would be conducted. The bill would not allow the use of this mechanism to require a vote on an amendment to the bylaws that had already been voted on by the association in the preceding 12 months.
2nd Reading in the Assembly, 2nd Reading in the Senate, Bills and Joint Resolutions Signed by the Governor, Community and Urban Affairs, Passed Assembly, Passed both Houses, Passed Senate
Approved P.L.2017, c.106.  (on 7/13/2017)
 
 

Date Chamber Action Description
7/13/2017 S Approved P.L.2017, c.106.
5/25/2017 S Passed Senate (Passed Both Houses) (39-0)
5/25/2017 S Received in the Senate, 2nd Reading on Concurrence
5/22/2017 A Passed by the Assembly (74-0-0)
5/22/2017 A Substituted for A4091 (3R)
3/16/2017 A Assembly Floor Amendment Passed (Chiaravalloti)
2/15/2017 A Assembly Floor Amendment Passed (Johnson)
12/5/2016 A Reported out of Assembly Comm. with Amendments, 2nd Reading
12/5/2016 Assembly Housing and Community Development Hearing (14:00 12/5/2016 Committee Room 9, 3rd Floor)
11/14/2016 A Received in the Assembly, Referred to Assembly Housing and Community Development Committee
11/14/2016 S Passed by the Senate (35-0)
10/13/2016 S Reported from Senate Committee with Amendments, 2nd Reading
10/13/2016 Senate Community and Urban Affairs Hearing (11:00 10/13/2016 Committee Room 1, 1st Floor)
9/8/2016 S Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
Date Motion Yea Nay Other
Detail 5/25/2017 Senate Floor: Amend 39 0 1
Detail 5/22/2017 Assembly Floor: Substitute For A4091 Aca (Voice Vote) 0 0 0
Detail 5/22/2017 Assembly Floor: Third Reading - Final Passage 74 0 6
Detail 12/5/2016 Assembly Housing and Community Development Committee: Reported with Amendments 6 0 0
Detail 11/14/2016 Senate Floor: Third Reading - Final Passage 35 0 5
Detail 10/13/2016 Senate Community and Urban Affairs Committee: Reported with Amendments 5 0 0