The Owners Rights and Obligations in Shared Ownership Communities Act aims to improve governance and transparency within homeowners associations in New Jersey, particularly for planned communities and cooperatives. The bill establishes a Commission on Shared Ownership Communities to act as a liaison for homeowners, promote education about their rights, and provide a framework for dispute resolution. Key provisions include a structured process for alternative dispute resolution, requiring associations to review disputes regarding unpaid fines before filing liens, and improved disclosures for prospective buyers about their rights and responsibilities. The act also introduces a "Bill of Rights and Responsibilities" for homeowners, emphasizing their rights to information, respect, and fair treatment, while outlining their duties to engage responsibly with their communities.

Additionally, the bill mandates that management contracts during the developer control period cannot exceed two years without ratification by an owner-controlled board, and it requires associations to maintain comprehensive financial records accessible to members. It creates a Bureau of Homebuyers Protection to enforce consumer protections and outlines requirements for reserve funds and annual audits. The legislation also clarifies the governance structure of associations, ensuring democratic practices, and mandates mediation and non-binding arbitration for warranty and construction defect claims against developers. Overall, the bill seeks to enhance consumer protection, improve governance, and create a more equitable environment for residents of shared ownership communities.

Statutes affected:
Introduced: 2A:62A-14, 40:67-23.2, 45:22A-23, 45:22A-24, 45:22A-25, 45:22A-26, 45:22A-27, 45:22A-28, 45:22A-30, 45:22A-43, 45:22A-44, 45:22A-45, 45:22A-46, 45:22A-47, 45:22A-48, 46:8B-14, 46:8B-12, 46:8B-12.1, 46:8B-15