S2949

An Act concerning inspection information distribution for certain residential property and supplementing Title 46 of the Revised Statutes.

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

1. a. As used in this section:

"Association" means an association of a planned real estate development, as defined in subsection n. of section 3 of P.L.1977, c.419 (C.45:22A- 23).

"Commissioner" means the Commissioner of Community Affairs.

"Department" means the Department of Community Affairs.

"Executive board" means the executive board of an association, as provided for in section 3 of P.L.1993, c.30 (C.45:22A- 45).

"Inspection information" means inspection scheduling information, inspection reports, and other inspection-related information required to be sent to the owner of a residential rental property, or association executive board, pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.), P.L.2023, c.214 (C.52:27D-132.2 et al.), and any other information determined necessary by the rules and regulations adopted by the commissioner pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Management services" means services or functions provided or performed on behalf of an association, or an owner of a residential rental property, which include, but are not limited to:

(1) acting with the authority of an association or owner in its business, legal, financial, or other transactions;

(2) executing the resolutions and decisions of the owner, or executive board of an association;

(3) collecting or disbursing moneys, preparing budgets, or otherwise administering the finances or other property belonging to an association or owner; or

(4) arranging, conducting, or coordinating meetings; negotiating contracts; or otherwise arranging for the purchase of goods or services on behalf of an association or owner.

"Property management entity" means a person or entity who, for valuable consideration or the expectation thereof, performs management services for the association of a planned real estate development, or for a residential rental property.

"Residential rental property" means a rental property that is a multiple dwelling, as defined in subsection (k) of section 3 of P.L.1967, c.76 (C.55:13A-3).

b. (1) A property management entity shall provide the department with the contact information of each residential rental property owner, and the executive board of each association, which the property management entity serves, on or before the 15th business day following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). If the contact information of a residential rental property owner, or executive board of an association, that the property management entity serves, changes following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the property management entity shall provide the department with the adjusted contact information on or before the 15th business day after the property management entity receives the adjusted information.

(2) If a property management entity fails to comply with this subsection, and as a result, a residential rental property owner, or executive board of an association, does not receive inspection information, then, in accordance with the rules and regulations adopted by the commissioner pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the property management entity shall be responsible for the payment of any penalties or fines resulting from the inspection. If a property management entity repeatedly or negligently fails to comply with the provisions of this subsection, then the commissioner shall provide this information to the New Jersey Real Estate Commission, which shall be authorized to revoke any license possessed by the property management entity pursuant to R.S.45:15-1.

c. The department shall establish and maintain a database of the contact information of each owner, and association executive board, as the department determines is necessary for the purpose of facilitating the provision of inspection information. The department shall ensure that the database is accessible to each enforcing agency, as defined in section 3 of P.L.1975, c.217 (C.52:27D-121), each structural inspector, as defined in section 2 of P.L.2023, c.214 (C.52:27D-132.3), and any other parties that the commissioner determines, pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), may need access for the purpose of compliance with requirements for the distribution of inspection information to the owner or executive board.

2. In accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Commissioner of Community Affairs shall adopt rules and regulations necessary to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), on or before the first day of the fifth month next following enactment.

3. This act shall take effect on the first day of the sixth month next following enactment, except the commissioner shall take such anticipatory actions as necessary to comply with the provisions of this act.

STATEMENT

This bill addresses the distribution of information on inspections of certain residential properties, and provides the Department of Community Affairs (DCA) and property management entities with certain responsibilities to provide and maintain contact information for owners of residential rental properties and planned real estate development associations. This bill is intended to prevent circumstances in which inspectors are unable to sufficiently communicate the existence of safety issues in residential properties.

The bill defines a "property 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, or the owner of a residential rental property. A "planned real estate development" (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 defines a "residential rental property" as a rental property that also meets the definition of a "multiple dwelling," in the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.), meaning the property consists of more than two dwelling units and meets certain other criteria.

The bill requires a property management entity to provide DCA with the contact information of each residential rental property owner and the executive board of each development’s association, which the property management entity serves, on or before the 15th business day following the effective date of the bill. If the contact information of a residential rental property owner or executive board of a development’s association, which the property management entity serves, changes following the bill’s effective date, the bill requires the property management entity to provide DCA with the adjusted contact information on or before the 15th business day after the property management entity receives the adjusted information.

If a property management entity fails to comply with the requirements of the bill and, as a result, a residential rental property owner, or executive board of an association, does not receive inspection information, then, in accordance with rules and regulations adopted by the Commissioner of Community Affairs, the bill directs that the property management entity is to be responsible for the payment of any penalties or fines resulting from the inspection. If a property management entity repeatedly or negligently fails to comply with the provisions of the bill, then the commissioner is to provide this information to the New Jersey Real Estate Commission, which the bill authorizes to revoke any real estate license possessed by the property management entity.

The bill further directs DCA to establish and maintain a database of the contact information of each owner and association executive board, as the department determines is necessary for the purpose of facilitating the provision of inspection information. The bill directs DCA to ensure that the database is accessible to each local enforcing agency, as defined in the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), each structural inspector, as defined in P.L.2023, c.214 (C.52:27D-132.2 et al.), and any other parties that the commissioner determines may need access for the purpose of compliance with the bill’s requirements for the distribution of inspection information to the owner or executive board.

The bill takes effect on the first day of the sixth month following enactment, except that the bill requires the commissioner to adopt the regulations necessary to effectuate the requirements of the bill on or before the first day of the fifth month following enactment.