Bill > A3381

Introduced Session

This bill places certain obligations on creditors to maintain vacant dwelling units in age-restricted communities during foreclosure. The bill provides that if the owner of a dwelling unit in an age-restricted community vacates or abandons a unit on which a foreclosure proceeding has been initiated or if a unit becomes vacant at any point subsequent to the creditor's filing the summons and complaint in an action to foreclose on a mortgage against the unit, but prior to vesting of title in the creditor or any other third party, a representative of the community may notify the creditor of the vacancy. The creditor, in addition to any other applicable responsibilities under the current provisions of section 17 of P.L.2008, c.127 (C.46:10B-51) with respect to maintaining residential property, would then have the responsibility, in the same manner and to the same extent as the title owner of the unit pursuant to the bylaws, rules, and regulations of the community, to: (1) pay the unit's monthly maintenance fee and the unit's share of any other common expenses of administering, maintaining, or operating the community; and (2) maintain the unit. If the creditor is required to pay any outstanding fees or incurs expenses towards the maintenance of a vacant or abandoned property, the creditor may include these costs in any foreclosure or other action against the title owner. If the creditor, subsequent to receipt of notice from the community, fails to pay the monthly maintenance fee or other common expenses, or fails to maintain the dwelling unit pursuant to the bylaws, rules, and regulations of the community, the community shall have the same recourse against the creditor as it would have against the title owner of the unit pursuant to the bylaws, rules, and regulations of the community. The bill provides that the nonpayment of any condominium or age-restricted community unit's monthly maintenance fee and the unit's share of any other common expenses would be an indicia of vacancy or abandonment under section 1 of P.L.2012, c.70 (C.2A:50-73).

Committee Categories

John Catalano (R)*,  Greg McGuckin (R)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 03/07/2022)

Official Document