Bill > A2558

Introduced Session

This bill is part of a package of bills implementing the recommendations of the State Commission of Investigation in its report of March, 2005 entitled "The Good, the Bad and the Ugly: New-Home Construction in New Jersey." The bill requires a developer to post a bond with the Department of Community Affairs to secure the completion of the common elements of a planned community and also requires the developer to maintain adequate reserve accounts for maintenance and replacement of the common elements. The bill establishes specific requirements to turn over documents and assets for a developer upon the transition of control of the association board to the owners in the community. The developer at this time must: cause to be prepared by an engineer chosen by the owners an engineering report on the common elements; provide documentation that all municipal and other required governmental approvals and certifications have been granted for all common elements; and make a full accounting of all association activities during the period of developer control. In addition, the bill provides that, during the period of developer control of an association, two or more owners shall be permitted to file warranty claims derivatively on behalf of the association concerning warranties applicable to the common elements of the planned community.

AI Summary

Committee Categories

Erik Peterson (R)*, 

Introduced, Referred to Assembly Housing Committee (on 01/09/2024)

Official Document