A2271

An Act concerning age-restriction of common interest community dwelling ownership, and amending P.L.2008, c.71.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2008, c.71 (C.45:22A-46.2) is amended to read as follows:

2. a. Notwithstanding any law or governing document to the contrary, the purchaser or grantee by operation of law of a dwelling unit in an age-restricted community shall be required to certify, prior to the resale or transfer by operation of law of a dwelling unit within the community, that the dwelling unit will be occupied by a person of an age that ensures compliance with the "housing for older persons" exception from the federal "Fair Housing Amendments Act of 1988," Pub.L.100-430 (42 U.S.C. ss.3601 et seq.) for that community as set forth in section 100.301 of Title 24, Code of Federal Regulations. The certification shall be on such form as may be prescribed by the Commissioner of Community Affairs, but shall not exceed one page in length. A copy of the certification shall be provided to the purchaser for recording. For the purpose of P.L.2008, c.71 (C.45:22A-46.1 et al.), "resale" shall mean any sale of a dwelling unit within an age-restricted community, other than the initial sale of the unit made by the developer to a purchaser.

b. (1) Provided that a purchaser or grantee complies with the certification requirement established by subsection a. of this section, an association shall permit the owner of a dwelling unit in an age-restricted community to sell or grant the owner’s unit to a person of an age that would not ensure compliance with the "housing for older persons" exception from the federal "Fair Housing Amendments Act of 1988," Pub.L.100-430 (42 U.S.C. ss.3601 et seq.) were the purchaser or grantee to reside in the unit.

(2) The commissioner, through the agency, shall enforce the requirements of this subsection, and in accordance with the penalties provided for pursuant to section 18 of P.L.1977, c.419 (C.45:22A-38), may assess:

(a) an association for restricting a property transfer in violation of this subsection; and

(b) a purchaser or grantee that allows a dwelling unit in an age-restricted community to be occupied by a person who does not ensure compliance with the "housing for older persons" exception from the federal "Fair Housing Amendments Act of 1988," Pub.L.100-430 (42 U.S.C. ss.3601 et seq.).

(cf: P.L.2008, c.71, s.2)

2. This act shall take effect immediately.

STATEMENT

This bill would expressly require the association of an age-restricted common interest community to permit an owner of a dwelling unit in the community to sell or grant the unit to a purchaser or grantee regardless of whether the purchaser’s or grantee’s age does not comply with the applicable age restrictions, were the new owner to reside there. The bill is intended to prevent age-restricted common interest community associations from unnecessarily restricting who owners may sell their homes to, as long as enforceable commitments are established to ensure that the unit occupants continue to meet the required age restrictions.

Federal law permits the existence of age-restricted communities as an exception, known as “housing for older persons,” to the anti-discrimination provisions of the “Fair Housing Amendments Act of 1988,” provided that certain quotas are maintained of age-appropriate persons occupying the premises. For communities that were organized by a developer to restrict occupancy to persons aged 62 or older, 100 percent of the occupants have to be aged 62 or older. For communities which were organized by a developer to house persons aged 55 and over, at least 80 percent of the residents, and one resident per each household, must be aged 55 or older.

Existing State law requires a purchaser or grantee of a dwelling unit in an age-restricted community to certify that the unit will be occupied by a person whose age allows the community to comply with the federal law, even if the owner would be under the age limit. The bill would expressly authorize the Commissioner of Community Affairs, through existing enforcement authority established by “The Planned Real Estate Development Full Disclosure Act,” N.J.S.A.45:22A-21 et seq., to assess penalties on associations that restrict sales in violation of the requirements of the bill. The commissioner would also be authorized to assess penalties on purchasers or grantees who, after taking ownership, allow a dwelling unit to be occupied by a person whose age does not allow the community to comply with federal law.