Bill > A1138

Introduced Session

This bill establishes fair standards for the election and recall of executive board members of common interest communities and requires association member approval for certain expenditures. The bill would require associations to hold elections at two-year intervals under the administration of an independent election committee of association members who are neither current executive board members nor candidates for the executive board and would restrict the maximum terms of executive board members to two years. The bill would also limit the size of executive boards to three members for communities comprised of less than 11 homes, provide a default size of five members for the executive boards of all other communities unless the bylaws provide otherwise, and extend the election provisions of the "Planned Real Estate Development Full Disclosure Act," P.L.1977, c.419 (C.45:22A-21 et seq.) to include associations with less than 50 units. Further, the bill would clarify an association's election notice obligations by requiring two written notices of an election: the first, to notify members of the election, election rules, and to allow for nominations and interested candidate applications; the second, to provide association members with the official list of candidates, election information, and absentee and proxy ballots. An association would be required to be send the first notice no later than 60 days prior to the election and the second no more than 30 nor less than 14 days prior to the election. The bill would require associations to permit owners to vote anonymously for executive board members and to cast a ballot by mail, in person, or by electronic means. The election committee would have the exclusive authority to investigate election challenges and to report substantiated allegations of vote tampering or fraud to the Division of Housing and Development in the Department of Community Affairs (agency), unless the allegations involve the election committee or its members directly. In such case, any aggrieved association member could report only those allegations directly concerning the election committee to the agency, which would have discretion to conduct its own investigation. If the agency determines that the association's management, legal team, candidates, or the election committee are guilty of vote tampering or fraud, the election would be considered void, violations constitute a disorderly persons offense, and the election committee would be required to report the determination to the county prosecutor's office. The bill also establishes standard procedures for the recall and removal of executive board officers or trustees, and provides that any member of the executive board may be recalled and removed from office, with or without cause, by a majority of the association members at a special meeting called for that purpose. Further, under the bill, any expenditures in excess of $100,000 or maintenance fee increases exceeding the Consumer Price Index (qualifying expenditures) require 30 days' notice to be provided to all association members prior to a formal vote on the expenditures, which require approval by a majority of association members in good standing, or greater if required by the governing documents. The bill contains an exception that allows an association to make qualifying expenditures to respond to an emergency. The bill contains an additional exception allowing the association to make qualifying expenditures that are necessary to comply with statutory and regulatory obligations, on condition that: (1) there are no other less expensive alternatives that receive approval by a majority of association members, or greater if required by the governing documents, and (2) the association provides a written report to all association members of the qualifying expenditures and votes at which the qualifying expenditures and less expensive alternatives, failed to receive approval by a majority of association members, or greater if required by the governing documents. This bill would take effect on the first day of the seventh month next following enactment, and apply to any vote or election conducted on or after the date of enactment, and any actions in relation to the vote or election taken in anticipation of the vote or election.

AI Summary

Committee Categories

Joe Danielsen (D)*, 

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

Official Document