Bill
Bill > A2999
NJ A2999
NJ A2999Requires developer under "The Planned Real Estate Full Disclosure Act" to post bond with DCA and provides for more accountability to owners in common interest community.
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 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
This bill, stemming from recommendations to improve new-home construction in New Jersey, requires developers of planned communities to post a bond with the Department of Community Affairs (DCA) to ensure common elements, like shared amenities, are completed and to maintain adequate reserve accounts for their future repair and replacement. When control of the community's association board transitions from the developer to the owners, the developer must provide an engineering report on common elements commissioned by the owners, proof of all necessary government approvals for these elements, and a complete financial accounting of the association's activities during their control. Additionally, during the developer's control period, two or more owners can file warranty claims on behalf of the association for issues with common elements, and the developer must also provide an annual audit of association funds and maintain a bond or guarantee acceptable to the DCA, initially equal to the annual budget and increasing in subsequent years to include accumulated reserves, which will not be released until all requirements of the bill are met.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
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/A2999 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2999_I1.HTM |
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