New Jersey Condo Act 46:8B-15: Association Powers, Fines and Resale Fee Cap

Quick Answer

N.J.S.A. 46:8B-15 lists the powers of a New Jersey condominium association: it can contract, sue and be sued, enter units for repairs, levy assessments, impose fines, and charge a resale or capital contribution fee. Most of the money powers depend on the master deed or bylaws authorizing them. The numbers a board should know are the nine-times-monthly-assessment cap on resale and capital contribution charges, and the requirement that no fine be imposed without written notice and an offer of a dispute resolution procedure.

At a Glance

What the Law Says

The powers are "subject to the provisions of the master deed, the bylaws, rules and regulations and the provisions of this act or other applicable law." The subsections are:

• (a) The association, incorporated or not, is an entity that acts through its officers and "may enter into contracts, bring suit and be sued." Service on any officer or the designated agent is service on the association, and is not service on any individual owner.
• (b) Access to each unit "during reasonable hours as may be necessary for the maintenance, repair or replacement of any common elements" or for emergency repairs. The association may charge the owner for repair of common elements damaged by the owner or the owner's tenant.
• (c) Power to buy, hold, lease, mortgage and convey units, and to lease or license common elements consistently with owners' rights.
• (d) Power to acquire leaseholds, memberships and other use interests in recreational facilities. Costs are common expenses only if fully described in the master deed or bylaws as originally recorded. Otherwise an amendment is needed, or the interest can be acquired as a limited common element for the owners who agree to pay.
• (e) Power to levy and collect assessments, "together with interest thereon, late fees and reasonable attorneys' fees, if authorized by the master deed or bylaws."
• (f) Fines, discussed below.
• (g) Other powers set out in the master deed or bylaws, if not prohibited by law.

Handling of association money

The statute says "All funds collected by an association shall be maintained separately in the association's name." Reserve funds may be commingled with operating funds "for investment purposes only," must be accounted for separately, and the commingled account "shall not, at any time, be less than the amount identified as reserve funds." A manager or management business, and an agent, employee, officer or director, "shall not commingle any association funds" with their own funds or with another association's funds.

Capital contributions and resale fees

If authorized by the master deed or bylaws, the association may collect a "capital contribution, membership fee or other charge upon the initial sale or subsequent resale of a unit." It is earmarked for maintenance of or improvements to common elements, and "shall not exceed nine times the amount of the most recent monthly common expense assessment for that unit."

Fines

If authorized by the master deed or bylaws, the association may impose "reasonable fines" for failure to comply with the master deed, bylaws or rules, subject to these conditions:

• A fine for a violation or a continuing violation "shall not exceed the maximum monetary penalty permitted to be imposed" under section 19 of the Hotel and Multiple Dwelling Law (N.J.S.A. 55:13A-19).
• On roads where Title 39 applies under N.J.S.A. 39:5A-1, an association may not fine for moving automobile violations.
• No fine may be imposed unless the owner gets written notice of the action and its alleged basis, and is advised of the right to participate in a dispute resolution procedure under 46:8B-14(k).
• An owner who is not satisfied with that procedure "shall not be prevented from seeking a judicial remedy."

The referenced penalty section sets a penalty of "not less than $50.00 nor more than $500.00 for each violation, and a penalty of not less than $500.00 nor more than $5,000.00 for each continuing violation." Our reading: the ceilings for an association fine are therefore $500 for a violation and $5,000 for a continuing violation, as long as the cross-referenced section is unchanged. Check the current text of 55:13A-19 before setting or enforcing a fine schedule.

What This Means in Practice

For boards

Most of the money powers in this section start with "if authorized by the master deed or bylaws." Before billing a late fee, attorney's fees, a resale charge or a fine, find the authorizing language in the recorded documents and keep a copy with the board's decision.

A fine process should follow the order in the statute: written notice of the action and basis, a statement of the right to the dispute resolution procedure, then the fine. The text of 46:8B-14(k), which defines the procedure, was not reviewed for this page. Confirm with counsel what your association's procedure must look like.

For owners

An owner facing a fine can ask for the written basis and the dispute resolution procedure. Using that procedure does not waive the right to go to court.

Open questions

The statute does not define "reasonable" fines, does not say how many days of notice must come before a fine, and does not say what happens to a fine imposed without the dispute resolution offer. Our reading is that a fine imposed without the required notice is open to challenge, but the statute states no consequence, so ask counsel.

The section does not say whether the nine-times cap applies per sale or in total, and does not address whether the charge can be passed to the buyer or seller. The text says only that it "shall not exceed nine times the amount of the most recent monthly common expense assessment for that unit."

A bill that did not become law

Senate Bill 1013 (2024 session) was introduced to bar condominium associations from passing an insurance deductible to an owner or group of owners for damage they did not intentionally cause. We read the introduced text only and did not confirm the bill's final status. The current text of 46:8B-15(b) does not contain that language, so as of our reading it is not part of the statute.

Timeline

Related New Jersey Law

• N.J.S.A. 46:8B-14(k), the dispute resolution procedure referenced in the fine rule
• N.J.S.A. 55:13A-19, the penalty section used as the fine ceiling
• N.J.S.A. 46:8B-21, liens for unpaid assessments (see our page on assessment liens)
• N.J.S.A. 45:22A-48.4, EV charging (see our EV charging page)
• New Jersey HOA laws and regulations overview

Board Checklist

• Locate the master deed or bylaw provision that authorizes fines, late fees, attorney's fees and any resale or capital contribution charge.
• Confirm any resale or capital contribution charge is no more than nine times the current monthly assessment.
• Send written notice of the action and its alleged basis before imposing a fine, and state the right to the dispute resolution procedure.
• Check the fine amount against the current ceiling in 55:13A-19.
• Do not fine for moving automobile violations on roads where Title 39 applies.
• Keep operating and reserve funds accounted for separately, and keep a commingled account at or above the reserve balance.
• Make sure the manager and board members do not mix association funds with their own or another association's.

Frequently Asked Questions

Can a New Jersey condo association fine an owner?

Yes, if the master deed or bylaws authorize it. The fine must be reasonable, must stay within the ceiling tied to 55:13A-19, and may be imposed only after written notice and an offer of the dispute resolution procedure.

What is the maximum fine?

The statute caps fines at the maximum penalty under section 19 of the Hotel and Multiple Dwelling Law. That section currently lists up to $500 per violation and up to $5,000 per continuing violation. Verify the current figures before relying on them.

Can an association charge a fee when a unit is sold?

If the master deed or bylaws authorize it, a capital contribution, membership fee or other charge may be collected on initial sale or resale, up to nine times the most recent monthly common expense assessment for the unit.

Can reserve funds be mixed with operating funds?

Only "for investment purposes only," with separate accounting, and the commingled account may never be less than the identified reserve amount.

Can the association enter my unit?

Yes, during reasonable hours as necessary for maintenance, repair or replacement of common elements in or reachable from the unit, or for emergency repairs to prevent damage to common elements or other units.

Does an owner give up the right to sue by using dispute resolution?

No. The statute says an owner who is not satisfied "shall not be prevented from seeking a judicial remedy in a court of competent jurisdiction."

Where This Comes From

We read the current text of N.J.S.A. 46:8B-15 and N.J.S.A. 55:13A-19 (2025 Revised Statutes edition), and the introduced text of Senate Bill 1013 (2024 session). The statute is available at law.justia.com, a mirror of the Revised Statutes.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.