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Bill > A1947
NJ A1947
NJ A1947Requires licensure of community management entity that contracts to conduct management services for planned real estate development association.
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 requires the licensure of community management entities that contract to conduct management services for the associations of planned real estate developments. Specifically, the bill directs the Commissioner of Community Affairs to establish a system for the licensure of community management entities that contract with the associations of planned real estate developments to perform management services for the developments. The bill directs the commissioner to establish experiential prerequisites that a person or entity is to be required to meet prior to obtaining a license as a community management entity. Following the effective date of the bill, an entity would be prohibited from entering a new contract to serve as the community management entity for an association in New Jersey unless the entity first obtains a license. If a person or entity is found to be in violation of this requirement, the commissioner is to impose a penalty on the person or entity in an amount not to exceed $4,000 per contract in violation. The bill defines a "community management entity" as a person or entity who, for consideration or the expectation thereof, performs management services, such as administering finances and coordinating meetings, for the association of a planned real estate development. A "planned real estate development" is a term defined in the "The Planned Real Estate Development Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.) to encompass communities governed by homeowners' associations, condominiums, and cooperative communities. The bill directs the commissioner to adopt the regulations necessary to effectuate the requirements of the bill on or before the first day of the seventh month next following enactment. The bill takes effect on the first day of the seventh month next following enactment.
AI Summary
This bill requires companies that manage planned real estate developments, such as homeowners' associations, condominiums, and co-ops, to be licensed by the Commissioner of Community Affairs. A "community management entity" is defined as any person or company that provides management services, like handling finances or coordinating meetings, for these developments in exchange for payment. The Commissioner will set experience requirements for obtaining a license, and after the bill becomes law, any entity wanting to enter a new management contract in New Jersey must first be licensed. Failure to comply could result in a penalty of up to $4,000 per contract. The Commissioner is directed to establish the necessary regulations for this licensing system within seven months of the bill's enactment, and the law will take effect on the same date.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly Housing 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/A1947 |
| BillText | https://pub.njleg.gov/Bills/2026/A2000/1947_I1.HTM |
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