Quick Answer
N.J.S.A. 46:8B-17 is the Condominium Act's rule for how an association spreads its common expenses. Expenses are charged by each unit's percentage interest in the common elements, or in another proportion the master deed or bylaws set. Charges become a lien on the unit, owners cannot avoid them by giving up use of common areas or abandoning the unit, and unpaid charges bear interest.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | N.J.S.A. 46:8B-17, Condominium Act (L.1969, c.257, s.17) |
| Effective date | January 7, 1970 (as shown in the history line) |
| Applies to | Condominiums (not HOAs that are not condominiums) |
| Key sections | 46:8B-17; definition of "common expenses" at 46:8B-3(e); lien rules at 46:8B-21 |
| Remedy or penalty | Charges are a lien on the unit, subject to section 21; interest runs from the due date |
What the Law Says
The section is short. Its operative points, in the statute's words where the wording matters:
- Allocation: "The common expenses shall be charged to unit owners according to the percentage of their respective undivided interests in the common elements as set forth in the master deed and amendments thereto, or in such other proportions as may be provided in the master deed or by-laws."
- Lien: the amount charged to each unit "shall be a lien against such unit subject to the provisions of section 21 of this act."
- Owner liability: an owner is "conclusively presumed" by accepting title to have agreed to pay a proportionate share of common expenses accruing while the owner holds the unit. Liability is "limited to amounts duly assessed in accordance with this act, the master deed and by-laws."
- No opt-out: no owner may exempt himself "by waiver of the enjoyment of the right to use any of the common elements or by abandonment of his unit or otherwise."
- Interest: charges bear interest from the due date the association sets, at a rate not above the legal interest rate that the association establishes, or at the legal rate if none is set.
What This Means in Practice
Boards
The budget has to be divided by the percentages in the master deed (or another proportion the master deed or bylaws provide). In Micheve, the Appellate Division relied on this section to invalidate a fee charged only to buyers; see our page on that case. In Thanasoulis, the Supreme Court invalidated a higher parking fee for nonresident owners, as described in the Micheve opinion.
Owners
Liability for common expenses is limited to amounts "duly assessed." Our reading: an owner who believes a charge was not properly assessed under the Act, master deed or bylaws has a basis to ask the board for the authority behind it, in writing, before paying under protest or disputing. Ask counsel about process.
What the section does not say
It does not set an interest rate figure, a late-fee amount or a collection process. Those come from the association's rules, from 46:8B-21 (liens) and from other sections. It also does not by its words address cooperatives or non-condominium communities.
Timeline
| Date | Event |
|---|---|
| January 7, 1970 | Section 17 effective with the original Act |
| November 3, 2005 | Appellate Division applies section 17 in Micheve v. Wyndham Place |
Related New Jersey Law
- N.J.S.A. 46:8B-21: assessment liens and priority
- N.J.S.A. 46:8B-15: association powers and fines
- Thanasoulis v. Winston Towers 200 Association (1988)
- New Jersey Condominium Act overview
Where We Stand
Our position: we support the rule in 46:8B-17 that expenses follow percentage interests. In practice, a fixed allocation formula is the thing that keeps budgets, owner ledgers and lien claims consistent. The management habit that follows from it is to keep a current schedule of percentage interests, taken from the master deed and recorded amendments, in the owner-ledger setup, and to have counsel review any proposed fee that falls on only one group of owners. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.
Board Checklist
- Confirm the percentage interests in your ledger match the master deed and recorded amendments.
- Check whether the master deed or bylaws set any different allocation for particular expenses.
- Review every fee that applies to only some owners (transfer, rental, parking) with counsel.
- Adopt and document the interest rate on late charges, within the legal rate cap.
- Tie each special assessment to the same allocation unless the documents say otherwise.
- Keep the budget approval and assessment notices in your records.
Frequently Asked Questions
How are condominium common expenses divided in New Jersey?
By each unit's percentage of undivided interest in the common elements, or in another proportion the master deed or bylaws provide.
Can an owner avoid assessments by not using the amenities?
No. The statute says an owner cannot exempt himself by waiving the right to use common elements or by abandoning the unit.
Does the association have a lien for unpaid charges?
Section 17 says the amount charged to a unit is a lien against it, subject to section 21, which sets out the claim-of-lien and priority rules.
What interest can the association charge?
Interest runs from the due date at a rate the association establishes, not above the legal interest rate, or at the legal rate if none is set. The statute gives no percentage figure.
Can the association charge some owners more than others?
Only if the master deed or bylaws provide a different proportion. Courts have struck down charges that fell on only one class of owners without that basis; ask counsel.
Does this apply to my HOA?
Section 17 is part of the Condominium Act. A non-condominium HOA is governed by its own documents and the planned real estate development laws.
Where This Comes From
We read the full text of N.J.S.A. 46:8B-17 as published in the 2023 edition of the New Jersey Revised Statutes on Justia, and the Appellate Division's Micheve opinion for its discussion of the section. We did not check the 2025 text for amendments; the history line shows none after 1969.
How APM Helps
Association Property Managers provides remote HOA and condo management for associations in New Jersey, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in New Jersey, browse every New Jersey state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for New Jersey when we build your proposal.
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.
Ready to work with Association Property Managers?
Get a free, itemized proposal for your community — delivered within 3 business days.
Request a Free Proposal
