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Bill > S65
NJ S65
NJ S65Requires mortgage lenders to maintain vacant, age-restricted dwelling units during foreclosure.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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, shall 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. The creditor may recover, against the title owner in the foreclosure or any other action, any outstanding fees paid or expenses incurred toward the maintenance of a vacant or abandoned property. 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.
AI Summary
This bill requires mortgage lenders to maintain vacant dwelling units in age-restricted communities during foreclosure proceedings. If a unit in such a community becomes vacant after a foreclosure has begun but before the lender takes ownership, a community representative can notify the lender. The lender then becomes responsible for paying the unit's monthly maintenance fees and common expenses, as well as maintaining the unit itself, to the same extent as the original owner would be under the community's rules. The bill also clarifies that if a lender fails to meet these obligations after being notified, the community can take the same action against the lender as it would against a delinquent owner. An "age-restricted community" is defined as one that meets federal requirements for housing for older persons. The bill also makes a technical change to the definition of "vacant and abandoned" property to include nonpayment of maintenance fees or failure to maintain a unit in an age-restricted community.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S65 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/65_I1.HTM |
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