This bill mandates the licensure of community management entities that provide management services for associations of planned real estate developments in New Jersey. It requires the Commissioner of Community Affairs to establish a licensing system, including experiential prerequisites for entities seeking to obtain a license. After the bill's effective date, no entity may enter into a new contract to serve as a community management entity without first obtaining this license. Violations of this requirement could result in penalties of up to $4,000 per contract.

The bill defines a community management entity as any person or entity that performs management services for a planned real estate development association, which includes tasks such as financial administration and meeting coordination. The Commissioner is also tasked with adopting necessary regulations to implement the bill's provisions within a specified timeframe. The bill is set to take effect on the first day of the seventh month following its enactment.