SENATE, No. 310 STATE OF NEW JERSEY. 213th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2008 SESSION

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1 SENATE, No. STATE OF NEW JERSEY th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 00 SESSION Sponsored by: Senator CHRISTOPHER "KIP" BATEMAN District (Morris and Somerset) SYNOPSIS Limits homeowners' association right to certain statutory lien; establishes alternative dispute resolution procedures; appropriates $,000. CURRENT VERSION OF TEXT Introduced Pending Technical Review by Legislative Counsel

2 S BATEMAN AN ACT concerning homeowners' associations, amending P.L., c. and P.L., c., supplementing Title of the Revised Statutes and making an appropriation. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. The Legislature finds and declares: a. The corporate model that has been applied to homeowners' associations has proven inadequate in some respects for the governance of residential communities, a fact recognized by the Assembly Task Force to Study Homeowners' Associations in its report. b. By authorizing homeowners' associations in certain planned real estate developments to exercise the power to levy fines on owners residing in the community and to impose liens in order to collect those fines, the Legislature, in effect, delegated governmental powers to private entities. Governmental powers, however, must be exercised in a way that comports with constitutional standards of fundamental fairness and due process, while promoting democratic participation and safeguarding the investment of owners in their properties. c. The need for these standards becomes increasingly significant as residential developments with homeowners' associations continue to proliferate in New Jersey and these associations assume responsibility for providing services that would otherwise be provided by municipalities. d. Accordingly, the Legislature finds it in the public interest that: () homeowners' associations be held to standards of due process, open governance and fundamental fairness, similar to those to which governmental bodies are held; () a fair and efficient system for resolving disputes between homeowners and associations be implemented; and () associations should discharge their obligation to protect the health, safety and welfare of homeowners subject to the oversight of the Department of Community Affairs.. All terms in P.L., c. (C. ) (now before the Legislature as this bill) not otherwise defined shall have the same definitions in section :E- of P.L., c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000).. Section of P.L., c. (C.:B-) is amended to read as follows: EXPLANATION Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter.

3 S BATEMAN Subject to the provisions of the master deed, the bylaws, rules and regulations and the provisions of this act or other applicable law, the association shall have the following powers: (a) Whether or not incorporated, the association shall be an entity which shall act through its officers and may enter into contracts, bring suit and be sued. If the association is not incorporated, it may be deemed to be an entity existing pursuant to this act and a majority of the members of the governing board or of the association, as the case may be, shall constitute a quorum for the transaction of business. Process may be served upon the association by serving any officer of the association or by serving the agent designated for service of process. Service of process upon the association shall not constitute service of process upon any individual unit owner. (b) The association shall have access to each unit from time to time during reasonable hours as may be necessary for the maintenance, repair or replacement of any common elements therein or accessible therefrom or for making emergency repairs necessary to prevent damage to common elements or to any other unit or units. The association may charge the unit owner for the repair of any common element damaged by the unit owner or his tenant. (c) The association may purchase units in the condominium and otherwise acquire, hold, lease, mortgage and convey the same. It may also lease or license the use of common elements in a manner not inconsistent with the rights of unit owners. (d) The association may acquire or enter into agreements whereby it acquires leaseholds, memberships or other possessory or use interests in lands or facilities including, but not limited to country clubs, golf courses, marinas and other recreational facilities, whether or not contiguous to the condominium property, intended to provide for the enjoyment, recreation or other use or benefit of the unit owners. If fully described in the master deed or bylaws, the fees, costs and expenses of acquiring, maintaining, operating, repairing and replacing any such memberships, interests and facilities shall be common expenses. If not so described in the master deed or bylaws as originally recorded, no such membership interest or facility shall be acquired except pursuant to amendment of or supplement to the master deed or bylaws duly adopted as provided therein and in this act. In the absence of such amendment or supplement, if some but not all unit owners desire any such acquisition and agree to assume among themselves all costs of acquisition, maintenance, operation, repair and replacement thereof, the association may acquire or enter into an agreement to acquire the same as limited common elements appurtenant only to the units of those unit owners who have agreed to bear the costs and expenses thereof. Such costs and expenses shall be assessed against and collected from the agreeing unit owners in the proportions in

4 S BATEMAN which they share as among themselves in the common expenses in the absence of some other unanimous agreement among themselves. No other unit owner shall be charged with any such cost or expense; provided, however, that nothing herein shall preclude the extension of the interests in such limited common elements to additional unit owners by subsequent agreement with all those unit owners then having an interest in such limited common elements. (e) The association may levy and collect assessments duly made by the association for a share of common expenses or otherwise, including any other moneys duly owed the association, upon proper notice to the appropriate unit owner, together with interest thereon, late fees and reasonable attorneys' fees, if authorized by the master deed or bylaws. (f) If authorized by the master deed or bylaws, the association may impose reasonable fines upon unit owners for failure to comply with provisions of the master deed, bylaws or rules and regulations, subject to the following provisions: A fine for a violation or a continuing violation of the master deed, bylaws or rules and regulations shall not exceed [the maximum monetary penalty permitted to be imposed for a violation or a continuing violation under section of the "Hotel and Multiple Dwelling Law," P.L., c. (C.:A-)] $0 per day for each separate violation. On roads or streets with respect to which Title of the Revised Statutes is in effect under section of P.L., c. (C.:A-), an association may not impose fines for moving automobile violations. A fine shall not be imposed unless the unit owner is given written notice of the action taken and of the alleged basis for the action, and is advised of the right to participate in a dispute resolution procedure in accordance with [subsection (k) of section of P.L., c. (C.:B-)] section of P.L., c. (C. ) (now before the Legislature as this bill). A unit owner who does not believe that the dispute resolution procedure has satisfactorily resolved the matter shall not be prevented from seeking a judicial remedy in a court of competent jurisdiction. No lien shall be recorded concerning a fine imposed by an association after the effective date of P.L., c. (C. ) (now before the Legislature as this bill) unless: () the right to the lien has been established pursuant to a determination by a court of competent jurisdiction, or () the fine imposition has been authorized through Level II ADR proceedings pursuant to section of P.L., c. (C. ) (now before the Legislature as this bill). (g) Such other powers as may be set forth in the master deed or bylaws, if not prohibited by P.L., c. (C.:B- et seq.) or any other law of this State. (cf: P.L., c., s.)

5 S BATEMAN Section of P.L., c. (C.:B-) is amended to read as follows:. a. The association shall have a lien on each unit for any unpaid assessment duly made by the association for a share of common expenses or otherwise, including any other moneys duly owed the association, upon proper notice to the appropriate unit owner, together with interest thereon and, if authorized by the master deed or bylaws, late fees, [fines], those fines authorized through a determination made in Level II ADR proceedings, pursuant to the provisions of section of P.L., c. (C. ) (now pending before the Legislature as this bill) and reasonable attorney's fees[; provided however that an association shall not record a lien in which the unpaid assessment consists solely of late fees]. Such lien shall be effective from and after the time of recording in the public records of the county in which the unit is located of a claim of lien stating the description of the unit, the name of the record owner, the amount due and the date when due. Such claim of lien shall include only sums which are due and payable when the claim of lien is recorded and shall be signed and verified by an officer or agent of the association. Upon full payment of all sums secured by the lien, the party making payment shall be entitled to a recordable satisfaction of lien. Except as set forth in subsection b. of this section, all such liens shall be subordinate to any lien for past due and unpaid property taxes, the lien of any mortgage to which the unit is subject and to any other lien recorded prior to the time of recording of the claim of lien. b. A lien recorded pursuant to subsection a. of this section shall have a limited priority over prior recorded mortgages and other liens, except for municipal liens or liens for federal taxes, to the extent provided in this subsection. This priority shall be limited as follows: () To a lien which is the result of customary condominium assessments as defined herein, the amount of which shall not exceed the aggregate customary condominium assessment against the unit owner for the six-month period prior to the recording of the lien. () With respect to a particular mortgage, to a lien recorded prior to: (a) the receipt by the association of a summons and complaint in an action to foreclose a mortgage on that unit; or (b) the filing with the proper county recording office of a lis pendens giving notice of an action to foreclose a mortgage on that unit. () In the case of more than one association lien being filed, either because an association files more than one lien or multiple associations have filed liens, the total amount of the liens granted priority shall not be greater than the assessment for the six-month period specified in paragraph () of this subsection. Priority among multiple filings shall be determined by their date of recording with the earlier recorded liens having first use of the priority given

6 S BATEMAN herein. () The priority granted to a lien pursuant to this subsection shall expire on the first day of the 0th month following the date of recording of an association's lien. () A lien of an association shall not be granted priority over a prior recorded mortgage or mortgages under this subsection if a prior recorded lien of the association for unpaid assessments has obtained priority over the same recorded mortgage or mortgages as provided in this subsection, for a period of 0 months from the date of recording of the lien granted priority. () When recording a lien which may be granted priority pursuant to this act, an association shall notify, in writing, any holder of a first mortgage lien on the property of the filing of the association lien. An association which exercises a good faith effort but is unable to ascertain the identity of a holder of a prior recorded mortgage on the property will be deemed to be in substantial compliance with this paragraph. For the purpose of this section, a "customary condominium assessment" shall mean an assessment for periodic payments, due the association for regular and usual operating and common area expenses pursuant to the association's annual budget and shall not include amounts for reserves for contingencies, nor shall it include any late charges, penalties, interest or any fees or costs for the collection or enforcement of the assessment or any lien arising from the assessment. The periodic payments due must be due monthly, or no less frequently than quarter-yearly, as may be acceptable to the Federal National Mortgage Association so as not to disqualify an otherwise superior mortgage on the condominium from purchase by the Federal National Mortgage Association as a first mortgage. c. Upon any voluntary conveyance of a unit, the grantor and grantee of such unit shall be jointly and severally liable for all unpaid assessments pertaining to such unit duly made by the association or accrued up to the date of such conveyance without prejudice to the right of the grantee to recover from the grantor any amounts paid by the grantee, but the grantee shall be exclusively liable for those accruing while he is the unit owner. d. Any unit owner or any purchaser of a unit prior to completion of a voluntary sale may require from the association a certificate showing the amount of unpaid assessments pertaining to such unit and the association shall provide such certificate within days after request therefor. The holder of a mortgage or other lien on any unit may request a similar certificate with respect to such unit. Any person other than the unit owner at the time of issuance of any such certificate who relies upon such certificate shall be entitled to rely thereon and his liability shall be limited to the amounts set forth in such certificate. e. If a mortgagee of a first mortgage of record or other purchaser of a unit obtains title to such unit as a result of foreclosure of the

7 S BATEMAN first mortgage, such acquirer of title, his successors and assigns shall not be liable for the share of common expenses or other assessments by the association pertaining to such unit or chargeable to the former unit owner which became due prior to acquisition of title as a result of the foreclosure. Any remaining unpaid share of common expenses and other assessments, except assessments derived from late fees or fines, shall be deemed to be common expenses collectible from all of the remaining unit owners including such acquirer, his successors and assigns. f. Liens for unpaid assessments may be foreclosed by suit brought in the name of the association in the same manner as a foreclosure of a mortgage on real property. The association shall have the power, unless prohibited by the master deed or bylaws to bid on the unit at foreclosure sale, and to acquire, hold, lease, mortgage and convey the same. Suit to recover a money judgment for unpaid assessments may be maintained without waiving the lien securing the same. Nothing herein shall alter the status or priority of municipal liens under R.S.:- et seq. (cf: P.L., c., s.). Section of P.L., c. (C.:E-) is amended to read as follows:. a. The Office of Dispute Settlement may provide, in the discretion of the Public Defender, mediation, and other third party neutral services in the resolution of disputes which involve the public interest and may enter into agreements or contracts to carry out any of the purposes or functions of this section. The Office of Dispute Settlement may assist public or private parties in resolving disputes. The Office of Dispute Settlement is authorized to: () Facilitate the resolution of disputes through the provision of mediation and other neutral dispute resolution services; () Establish standards for the selection, assignment, and conduct of persons acting on behalf of said office in the resolution of disputes; () Conduct educational programs and provide other services designed to reduce the occurrence, magnitude, or cost of disputes; () Design, develop, or operate dispute resolution programs, or assist in improving or extending existing dispute resolution programs; () Work with the business ombudsman, established by Executive Order No., and take such other action as will promote and facilitate dispute resolution in the State; [and] () Coordinate and cooperate with the Office of Administrative Law so as to avoid duplication of effort and to facilitate alternate resolution of disputes that would otherwise require administrative hearings; and () Work with the Office of the Ombudsman for Homeowners and Associations, established pursuant to section of P.L.,

8 S BATEMAN c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000), to promote and facilitate dispute resolution for homeowners' associations in the State, including the establishment of standards for the selection, assignment, and conduct of persons acting on behalf of that office in the resolution of disputes and the designing and conducting of training programs for volunteers used to provide services on behalf of the office; provided,however, that training programs established pursuant to P.L., c. (C. ) (now before the Legislature as this bill) shall be offered free of charge to a volunteer, in exchange for the agreement of the volunteer to offer dispute resolution services free of charge to associations. Costs of training incurred under this section shall be reimbursed from the Homeowners' Association Trust Fund established pursuant to section of P.L., c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000). The Office of Dispute Settlement shall certify those individuals qualified to be included on the roster of volunteers to be maintained by the Ombudsman for Homeowners and Associations, Department of Community Affairs. b. The Public Defender may establish reasonable fees to be charged to public or private parties for the provision of the educational, consultation, dispute resolution, or other services authorized herein and may apply for and accept on behalf of the State any federal, local, or private grants, bequests, gifts, or contributions to aid in the financing of any of the programs or activities of the office. The Public Defender in the name of the State shall do all that is necessary and proper to receive or to collect all moneys due to the State, including such fees, grants, bequests, gifts, or contributions, by or reimbursement for services rendered pursuant to this section. (cf: P.L., c., s.). (New section) The recording office of any county shall not accept for filing any Notice of Lien concerning fines imposed by a homeowners' association, unless the lien filing is accompanied by proof that the lien filing is authorized pursuant to section of P.L., c. (C. ) (now before the Legislature as this bill) or has been authorized pursuant to a determination of a count of competent jurisdiction. A lien certified by an association to be based on unpaid commons fees, late fees, costs of collection, or interest shall not be required to be accompanied by such proof.. a. (New section) Every association shall provide a fair and efficient procedure that shall be readily available as a cost-effective alternative to litigation for the resolution of qualified disputes between individual homeowners and the association, and between different homeowners. For the purposes of this section, a "qualified dispute" shall be construed broadly, and means those disputes

9 S BATEMAN involving the common interest property, the bylaws or the rules of the association. An association shall not be required to provide alternative dispute resolution proceedings for a dispute that is exclusively a personal dispute between two or more parties and which is unrelated to the common property. b. The procedures for association level alternative dispute resolution (ADR) shall be as follows and shall be adopted by and included in the rules of an association. Upon the written request of any owner, an association shall conduct an alternative dispute resolution proceeding within 0 days of receipt by the association of the written request. () The procedures adopted by the board of an association may provide that a covenants committee or similar group of members may serve as a provider of alternative dispute resolution services for the association, provided that: (a) no one on the committee serves on the board, (b) no one on the committee is involved in the dispute, and (c) all parties to the dispute agree to the use of the committee as the dispute resolver. If the preliminary ADR provided under this subsection is declined, is not offered by an association, does not occur or occurs but does not result in an agreement of resolution of all parties, then any party to the dispute may request Level I ADR under this subsection. A written declination of preliminary ADR by a party shall be sufficient as a request for Level I ADR under this section. () (a) Level I ADR. Upon the written request of any owner for Level I ADR, an association shall promptly send the request to the Office of the Ombudsman for Homeowners and Associations, established pursuant to section of P.L., c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000) for referral to qualified volunteer mediators who may be available to mediate the dispute or, in the discretion of the Ombudsman, in cases involving broader public interest, or complex or multiple party disputes, to the Office of Dispute Settlement for professional mediation. A proposed mediator shall not be a participant in the dispute, nor shall a proposed mediator be a member or employee of or contracted by the executive board of the homeowners' association. The Office of the Ombudsman shall coordinate the selection and agreement by the parties to a mediator and the dates agreed upon for mediation, pursuant to rules to be adopted by the commissioner. Level I ADR meetings shall be held in the common interest community if space is available, or, if there is no suitable meeting facility at the community, at a suitable meeting facility elsewhere in the municipality or, if there is no such suitable facility, in an adjoining municipality. (b) If mediation occurs, but does not result in a written agreement between the parties to the mediation resolving the dispute, the parties shall be so notified within days of the conclusion of the proceeding. Any party so notified shall have the

10 S BATEMAN right to file a petition for Level II ADR with the Office of the Ombudsman in accordance with the requirements of subsection d. of this section. An owner who, after making a written request, and agreeing to a mediator, declines a Level I ADR meeting shall not be permitted to request Level II ADR. c. Any costs of preliminary or Level I ADR at the association level, except for travel expenses for volunteer mediators which shall be paid by the department, shall be paid by the association. d. () Level II ADR. Within days of the conclusion of Level I ADR under subsection b. of this section, a party may apply to the Office of the Ombudsman for professional arbitration of the dispute (Level II ADR), except as prohibited in subparagraph (b) of paragraph () of subsection b. of this section. Such arbitration shall be binding only if both parties agree, except as otherwise provided in this section. Each application shall be subject to a filing fee of no more than $ chargeable against each party in the dispute, which shall be paid by the association; provided, however, if the mediator or arbitrator finds a homeowner's petition to be frivolous or intended for purposes of harassment, then the homeowner will be required to reimburse the association the cost of the filing fee. In the event the dispute involves the imposition of a fine by an association, an association shall be required to petition for Level II ADR proceedings, which shall be binding arbitration, prior to the recording of a lien based solely on the imposition of a fine or fines. An association may record such a lien only if the association receives a favorable decision as a result of the Level II ADR proceedings and, in such case, shall also be reimbursed the filing fee by the Office of the Ombudsman; () The Office of the Ombudsman shall, through an agreement with the Office of Dispute Settlement in the Office of the Public Defender in the Department of State, receive and refer petitions for professional mediation or arbitration to the Office of Dispute Settlement. The Office of Dispute Settlement shall review the petitions and assign the petitions of the most emergent nature to an arbitrator or mediator for scheduling of proceedings. () Emergency relief. If emergency relief is required, a motion to stay the alternative dispute proceedings may be filed. The motion must be accompanied by a verified petition alleging facts that, if proven, would support entry of a temporary injunction, and if an appropriate motion and supporting papers are filed, the office shall abate the alternative dispute proceedings pending a court hearing and disposition of a motion for temporary injunction. () A party to a Level II ADR proceeding shall not be required to be represented by counsel, but shall be permitted to have counsel present at all proceedings, if so desired. Counsel for a party receiving a favorable determination under a Level II ADR proceeding shall be permitted to be reimbursed from the Homeowners' Association Trust Fund created pursuant to section

11 S BATEMAN of P.L.,c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000) to the extent funds are available for such purposes, but in no event shall such reimbursement be greater than the amount received by the parties acting as arbitrator or arbitrators in the case. e. Nothing in P.L., c. (C. ) (now before the Legislature as this bill) shall affect the right of a party to file a claim with a court of competent jurisdiction; provided, however, that such a claim shall not be filed while dispute resolution services, including preliminary, Level I or Level II alternative dispute resolution proceedings, are ongoing pursuant to P.L., c. (C. ) (now before the Legislature as this bill), unless such procedures have been abated pursuant to subsection d. of this section. No application for dispute resolution, including preliminary, Level I or Level II alternative dispute resolution shall be filed with regard to any matter pending before a court of competent jurisdiction, except upon the order of the court. f. The Office of Dispute Settlement, through the office of the Public Defender in conjunction with the Commissioner of Community Affairs, shall promulgate regulations, pursuant to the "Administrative Procedure Act," P.L., c. (C.:B- et seq.), setting forth the procedures to be utilized in providing dispute resolution services under this section, including minimal requirements for petitions, qualifications for volunteer or professional dispute resolvers, including sufficient training for mediating disputes in a common interest community, and requirements for knowledge of community association issues, and any other requirements necessary to provide such services. The Department of Community Affairs shall reimburse the Office of Dispute Settlement the costs of any professional arbitration or mediation services provided under this section, and there shall be appropriated from the Homeowners' Association Trust Fund created pursuant to section of P.L., c. (C. ) (now before the Legislature as Assembly Bill No.0 of 000) such sums as are necessary to provide staffing and other support services to the Office of Dispute Settlement.. (New section) It is the intent of the Legislature that the provisions of P.L., c. (C. )(now before the Legislature as this bill) shall complement the provisions of the "Horizontal Property Act," P.L., c., (C.:A- et seq.), the "Condominium Act," P.L., c. (C.:B- et seq.), and all supplements to that act, as well as the provisions of P.L., c.0 (C.:A- et seq.) concerning homeowners' associations; provided, however, that whenever any conflict or apparent conflict may be read between the provisions of P.L., c. (C. ) (now before the Legislature as this bill) and the provisions of those acts, the provisions of P.L., c. (C. ) (now before the Legislature as

12 S BATEMAN this bill) shall supersede those acts and be deemed to be the controlling law.. There is appropriated from the General Fund to the Department of State, Office of the Public Defender, for the Office of Dispute Settlement the amount of $,000 to effectuate the purposes of this act.. This act shall take effect immediately, but shall remain inoperative until the enactment of P.L., c. (C. ) (now before the Legislature as Assembly Bill No. 0 of 000). STATEMENT This bill would prohibit a homeowners' association from recording a lien to enforce collection of a fine imposed by the association until the association receives authorization to record the lien by review of a professional mediator or arbitrator arranged through the Department of Community Affairs. The bill also establishes the procedures which must be utilized by an association in providing alternative dispute resolution services. The bill also empowers all types of homeowners' associations with the powers and responsibilities now possessed solely by condominium associations. Finally, the bill makes an appropriation of $,000 to the Department of State, Office of the Public Defender, Office of Dispute Settlement to fund the initial training of volunteers for the alternative dispute resolution procedures required under the bill. Subsequent funding for training and oversight costs of the department will be derived from registration fees of associations which are established in companion legislation. This bill would change the manner in which homeowners' associations may record liens attaching to the real property of unit owners for fines imposed upon them for violating the rules of the association. Currently, condominium associations are empowered to file a lien for unpaid common expenses assessments owed by a unit owner, and also may file a lien to enforce fines which have been imposed for violations of association rules. Both types of liens may be filed without judicial review of any kind. Under a ruling of the United States Supreme Court, the filing of a lien upon real property triggers certain due process rights requiring judicial review of the lien prior to its recording. See Connecticut v. Doehr, 0 U.S. (). Under the decision in this case, liens for unpaid common fee assessments, which are subject to documentation and based upon the theory of an implied contract for the unit owner to pay his share of the common expenses, do not require any additional due process, and thus a statute may authorize the filing of such a lien without review. However, liens based upon fines

13 S BATEMAN 0 0 imposed by an association require an additional measure of due process, either in the form of a safeguard to ensure that the lien filing is not erroneous, or in the form of judicial review. This bill, by providing that a lien filing based on fines be reviewed by an arbitrator or mediator, will provide the additional safeguard required under the United States Constitution. An association which receives a favorable ruling from an arbitrator or mediator will be entitled to reimbursement of the costs for submitting the matter for review, and will be entitled to record the lien directly with the county recording office. The bill also sets forth the alternative dispute resolution procedures which may be utilized by an association. The first level, termed "preliminary ADR," allows an association to use a covenants committee or other similar group of members to resolve disputes, provided that () no one on the committee serves on the board, () no one on the committee is involved in the dispute, and () all parties to the dispute agree to the use of the committee as the dispute resolver. If preliminary ADR does not resolve the dispute, then an owner or association may request Level I ADR, which is the provision of alternative dispute resolution services at the association by a trained volunteer, obtained from a pool of qualified volunteers and matched to the dispute by the Office of the Ombudsman for Homeowners and Associations in the Department of Community Affairs. The bill also provides that the training of the volunteers and standards for the alternative dispute procedures will be handled by the Office of Dispute Settlement in the Office of the Public Defender, in the Secretary of State's Office, in coordination with the Ombudsman. The Office of Dispute Settlement will also be utilized to provide low cost professional mediation and arbitration services to associations and owners. These services will be funded from a registration fee collected from associations pursuant to companion legislation. This bill is part of a package of bills based on the recommendations of the Assembly Task Force to Study Homeowners' Associations which were included in its report filed in January. The bill will remain inoperative until the enactment of companion legislation which sets forth the definitions for the entire package of bills, to be codified in a new chapter of Title of the Revised Statutes.