The proposed bill seeks to enhance the oversight of common interest communities in New Jersey by empowering the Department of Community Affairs (DCA) with expanded regulatory authority. It establishes an Office of the Ombudsman for Common Interest Communities and an Advisory Council to assist the DCA in developing regulations and policies. The DCA will be authorized to handle complaints, enforce compliance, and impose sanctions on homeowner associations, particularly those with over 100 units. Additionally, the bill mandates that all homeowner associations register with the DCA and pay an annual registration fee, which will contribute to a newly created "Common Interest Community Homeowners' Association Trust Fund" aimed at supporting low and moderate-income households with maintenance expenses and providing educational resources.

Moreover, the legislation requires the DCA to prepare and distribute a booklet outlining the rights and responsibilities of unit owners and the duties of executive boards, which will be provided free of charge to unit owners and prospective purchasers. The bill also includes provisions for funding grants and loans to associations managing properties with units reserved for low and moderate-income families, utilizing a portion of the registration fees collected. Overall, the bill aims to improve governance, accountability, and support within common interest communities, ensuring that stakeholders have access to necessary resources and assistance in managing conflicts and financial issues.