Bill > A3314

Introduced Session

This bill prohibits the executive board of an association of a planned real estate development (executive board) from increasing association dues, as defined in the bill, by more than 10 percent, with limited exceptions. Specifically, the bill prohibits an executive board or board member from, over the course of a 12-month period, increasing association dues for unit owners, whether severally or in the aggregate, by more than 10 percent over the amount charged during the prior 12-month period. In addition to any other relief that may be available by law, the bill authorizes certain persons to request an investigation from the Director of the Division of Consumer Affairs in the Department of Law and Public Safety (director), who may investigate the alleged violation; file a court action against the executive board or board member; or exercise the person's right to alternative dispute resolution. The bill authorizes the director, court, or entity with jurisdiction to render a decision to resolve the dispute, upon finding that a violation has occurred, to: (1) declare void any action of the executive board or board member related to the violation; (2) report the violation to the association members; and (3) grant any other relief that deemed proper under the circumstances, based upon the severity of the violation. If an action is filed in a court of competent jurisdiction, the executive board or board member is to be personally liable for a violation of the bill; board members or officers are to be personally jointly and severally liable. The executive board or board members are liable to a penalty of $1,000 per violation, payable to the plaintiff. Further, the bill authorizes the court to order that an amount, equal to the moneys paid to the association exceeding the limitation set forth in the bill, be paid to the plaintiff from the association. A determination under the bill that the executive board or board members have violated the bill, would establish a rebuttable presumption that a violation of the bill has occurred for the purposes of an action filed by a unit owner against the executive board or board members alleging a violation of the bill. The bill permits an executive board or board member to petition the Commissioner of Community Affairs (commissioner) to request approval to increase the association dues by an amount in excess of 10 percent. The bill permits the commissioner, after a hearing, to grant the executive board or board member's request. If the commissioner fails to act within 90 days, the increase in the amount requested is to be deemed approved. The bill would not apply to: (1) increases in association dues that are directly related to compliance with sections 6 and 7 of P.L.2023, c.214 (C.45:22A-44.2 and C.45:22A-44.3); (2) increases in association dues that are subject to an exception established by the commissioner; or (3) an association subject to an exemption pursuant to a petition to the commissioner. The bill requires the commissioner to adopt rules and regulations as necessary to effectuate the provisions of the bill. The bill would take effect on the first day of the fourth month next following the date of enactment, except that the Commissioner of Community Affairs is to take anticipatory action necessary to effectuate the provisions of the bill.

AI Summary

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William Sampson (D)*, 

Introduced, Referred to Assembly Housing Committee (on 01/13/2026)

Official Document