New Jersey Legislature Considering Comprehensive State Oversight Of HOAs
If passed, New Jersey Senate Bill 805 would bring New Jersey into the fold of states that have adopted the Uniform Common Interest Ownership Act ("UCOIA"). However, New Jersey's version of UCIOA adds an Article 5 - State Oversight of Associations - to the provisions contained in the uniform act. (Article 5 begins on page 98.)
This Article would establish a Commissioner of Community Affairs who would have extensive powers including:
- Initiating, hearing, and reviewing complaints, holding hearings and taking enforcement actions
- Issuing subpoenas for the production of documents and witness attendance with respect to any complaint investigations
- Enforcing all statutes relating to associations
- Issuing orders to past or present board members to cease and desist from any unlawful practices
- Removing board members who fail to comply with the Commissioner
- Imposing fines up to $1,000 for failing to comply with the Commissioner
This Article would also establish the Office of the Ombudsman for Homeowners and Associations. This office (unlike the one being proposed in California) would not have any enforcement powers, but rather would assist owners in understanding their rights and responsibilities as association members, as well as helping board members to receive training to govern their associations responsibly.
This bill is receiving its share of controversy with both proponents and opponents (including the New Jersey chapter of the ACLU) vocalizing their opinions. It will be interesting to see if New Jersey adopts this modified version of UCIOA, another version amended by the legislative process, or no version at all.
Another case of the Government getting involved in areas they hove no expertise in, probably no program funding, and most importantly NO people to monitor or control it. So, higher taxes less critical services and government sticking their noses in where they should be. I'm fine with have uniform laws to govern Associations, I'm not fine with oversight and overspending by our governments - local, state or national.
My view is just the opposite of the one held by Mr. Wirkkala..
HOA's are clearly little "private" governments that seek to do what governments do, but to do it outside of the oversight and control of properly established civil government.
I think civil "Governments" have an obligation to not only impose uniform laws upon Associations, but also to demand and enforce compliance in the same draconian manner Associations seek to enforce compliance by their members. Funding for civil government oversight might be accomplished by an "income tax" on association assessments. People to monitor and control might be elected by property owners through the normal civil elections process. - Lou Day
