Quick Answer
P.L.2017, c.106 (Senate Bill 2492, approved July 13, 2017) rewrote how New Jersey common interest community associations hold board elections. It declares that all unit owners are association members, defines "good standing," allows "voting-eligible tenants" in some communities, sets election rules for associations of 50 or more units (and a shorter list for smaller ones), and limits board appointments. It also changed bylaw amendment procedures.
It covers condominiums, homeowners' associations and cooperatives that fall within the Planned Real Estate Development Full Disclosure Act. The election-procedure provisions in section 6, paragraphs c.(1) through c.(9), became operative later than the rest of the law.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | P.L.2017, c.106 (S2492, fourth reprint); codified at N.J.S.A. 45:22A-45.1 and -45.2 and in amended sections of PREDFDA and P.L.1993, c.30 |
| Approved | July 13, 2017 |
| Effective date | Immediately, except election provisions in section 6, paragraphs c.(1) through c.(9), "inoperative until the first day of the third month next following enactment" (our calculation: October 1, 2017) |
| Applies to | Associations of planned real estate developments: condominiums, HOAs and cooperatives |
| Key sections | 1 (findings); 2 (definitions); 4 (membership); 5 (board election, powers); 6 (election rules); 7 (bylaws); 8 (turnover) |
| Remedy or penalty | None stated in the chapter text we read |
What the Law Says
Membership and good standing
New section 1(c) of P.L.1993, c.30 says membership "shall be comprised of each owner within the planned real estate development." An association may permit tenant participation in elections, tenant membership, or both. A "voting-eligible tenant" has only the owner's voting rights, "in place of and not in addition to" the owner's.
"Good standing" applies solely to voting in board elections, voting on bylaw amendments, and nominating or running for the board. A member is in good standing if current on common expenses and other lawfully assessed charges and not failing to satisfy a judgment for them. A member is also in good standing when in full compliance with a settlement agreement, or when there is a pending, unresolved dispute over charges started through a valid alternative to litigation, through Condominium Act section 14(k) or through a pertinent court action.
Election rules (section 6)
- Elections follow the governing documents; if they set no interval, "the elections shall be held at two-year intervals."
- If no election has been held in compliance in two or more years, one must be held within 90 days of a petition signed by 25 percent or more of members in good standing (but not fewer than the quorum number).
- Proxies must carry a prominent notice that use is voluntary and revocable, and "an association may not use proxies for an executive board member election without also making absentee ballots available."
- Associations with 50 or more units: terms may not exceed four years; written notice of the right to nominate must go out at least 30 days before the election-notice mailing; the nomination period must be at least 14 days; election notice must be sent no less than 14 nor more than 60 days before the meeting; ballots list candidates alphabetically by last name; and votes are one per unit unless the documents provide otherwise within stated limits.
- Associations with fewer than 50 units must provide election notice, ability to nominate and vote for members in good standing, review of candidacy qualifications, ready access to voting information, and non-fraudulent ballot counting, plus the vote-allocation and low and moderate income provisions in paragraphs c.(9) and c.(10).
- For associations of 50 or more units, appointments to the board are not allowed except to fill a vacancy (resignation, death, loss of a reasonable qualification, or removal by a vote open to all members) and developer appointments permitted during turnover.
- Initial condominium board elections follow Condominium Act section 12.1 and are not subject to section 6.
Bylaws and turnover
Section 7 amends N.J.S.A. 45:22A-46. Among other things, a board may not amend the bylaws without a member vote open to all members, with two exceptions: amendments needed for consistency with law, and amendments after notice to all members with a ballot to reject, which are deemed defeated if at least 10 percent of members vote to reject within 30 days. The section also supplies a default amendment procedure (15 percent of members may request a special meeting) for bylaws that lack one. Section 8 amends turnover rules (N.J.S.A. 45:22A-47) to refer to voting-eligible tenants where applicable.
What This Means in Practice
Boards
Most associations should compare their bylaws and election packets to section 6. Our reading: the deadlines are the practical pressure points (30-day nomination notice, 14-day minimum nomination period, 14 to 60 days of election notice). The notice mailing is "effective when deposited in the mailbox with proper postage"; electronic notice needs written agreement or authorization in the governing documents, with another voting method available.
Owners
Owners in good standing have a statutory right to nominate themselves or others in good standing and to vote for any nominated candidate. Our reading: owners with a pending, unresolved dispute over charges started through the listed routes remain in good standing, so a board should not treat every unpaid-charge dispute as a loss of voting rights.
Open questions
- The chapter text we read is the 2017 enactment. Later laws and DCA rules (see our page on election, good standing and removal rules) may add detail, and later legislation, such as P.L.2020, c.100, addressed assessments. Confirm the current codified text with counsel.
- The chapter does not state a penalty or a specific enforcement route in the text we read.
Timeline
| Date | Event |
|---|---|
| July 13, 2017 | P.L.2017, c.106 approved |
| First day of the third month after enactment (our calculation: October 1, 2017) | Section 6 election provisions c.(1) through c.(9) become operative and apply to each election on or after that date |
Related New Jersey Law
- N.J.S.A. 45:22A-43: association organization and membership
- Election, good standing and removal rules (R.2023 d.087)
- Community association governance rules (R.2020 d.056)
- N.J.S.A. 46:8B-12.1: developer turnover
- PREDFDA overview
Where We Stand
Our position: we support this law. Fixed notice, nomination and ballot rules make elections easier to run and harder to dispute, and clear good-standing language reduces arguments over who may vote. The practical tip is to build an election calendar from section 6 deadlines and keep a dated record of notices, nomination requests and ballot counts. 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
- Compare the bylaws and election procedures to section 6, including the two-year default and four-year term cap.
- Calendar the 30-day nomination notice, 14-day nomination period and 14 to 60 day election notice.
- Provide absentee ballots whenever proxies are used.
- Define good standing in a written policy that tracks the statute, including the pending-dispute and settlement-agreement provisions.
- Check how many units you have to know which list of requirements applies.
- Confirm vote allocation (one per unit unless the documents say otherwise).
- Route bylaw amendments through a member vote or the notice-and-reject route in section 7, and ask counsel before relying on the board-only exceptions.
Frequently Asked Questions
Who is an association member under P.L.2017, c.106?
Each owner of a unit in the planned real estate development, and the developer while unsold units remain. Tenants may be permitted by the association to participate in elections or be members.
How often must elections be held?
As the governing documents provide; if they set no interval, every two years.
Can owners force an election?
If no compliant election has been held in two or more years, one must be held within 90 days of a petition signed by 25 percent or more of members in good standing, but not fewer than quorum.
Can the board appoint new directors?
For associations of 50 or more units, not except for vacancies filled as the section allows and for developer appointments during turnover.
Are proxies allowed?
Yes, with a prominent notice that use is voluntary and revocable and with absentee ballots also available.
Does the law apply to condominiums?
Yes, through PREDFDA, whose definition of a planned real estate development specifically includes property subject to the Condominium Act. Initial condominium elections follow section 12.1 instead.
Where This Comes From
We read the full chaptered text of P.L.2017, c.106 on the New Jersey Legislature's chapter law page. We did not check later amendments to the codified sections.
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.
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