Law Governing Association Elections & Board Member Removal Advances in New Jersey Assembly

Posted on June 30th, 2015

The New Jersey Assembly Housing and Community Development Committee recently favorably reported its Bill No. 3069. If adopted by the full Legislature, and signed by the Governor, New Jersey’s Planned Real Estate Development Full Disclosure Act (PREDFDA) would be amended to further regulate the elections, and board of trustee service, of condominiums and homeowners’ associations.

More specifically, the boards of associations with less than 11 homes would be limited to only three (3) members. The boards of all other associations must have five (5) members unless that association’s bylaws provide otherwise. The law would mandate certain election-related procedures, including anonymous owner voting. It would also create a rather specific process by which member of an association’s board could be removed therefrom. The existing board would have certain powers to remove a board member, following the request of a small portion of the owners.

Further, regardless of the provision(s) set forth in an association’s bylaws, 10% of the owners could force the association to have a special owners meeting for the purpose of board member(s) removal. Not unexpectedly, this law would enlarge the existing regulatory powers of New Jersey’s Department of Community Affairs, empowering it to oversee associations’ compliance. If you have any questions about this pending law, about any other pending law and/or an existing law, relating to New Jersey’s community associations, please contact us.”

 – David Bryne

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