CAI-NJ Sept.2018(w)(1)

UCIOA... from page 46.

by a “declaration” rather, in the case of condominiums, by a “master deed.” Definitions will make New Jersey consistent with the majority of states around the country. • Although the current Condominium Act makes clear that an association is not to be taxed for the common elements, it is possible for a homeowners association to be taxed for the value of the common property. That will be corrected in the new legislation by making the common elements or common property of all common interest communities non-taxable. As in current day con- dominiums, the value of the common elements will be taxed to the units. • The new UCIOA will apply to all forms of common interest communities, including condominiums, planned commu- nities, and cooperatives. Where the form of the entity requires, the bill makes adjustments to reflect the differing formats – particularly in the case of cooperatives. • The existing provisions of the Condominium Act, the Planned Real Estate Development Full Disclosure Act, and the Cooperative Recording Act will remain in effect unless to the extent they conflict with UCIOA.

as lien priority – which today only benefits condominium associations, not HOA’s, ADR, contract bidding, etc., in separate bills where the attention of stakeholders could be devoted to one issue at a time. After over a year of the Law Revision Commission holding public hearings concerning the proposed form of UCIOA and with CAI providing guidance and suggested language concerning the Act, the Commission approved a final draft in late 2017. In 2018 Senator Van Drew introduced Senate Bill Number S2425, and Assemblyman Herb Conaway intro- duced Assembly Bill Number A3851, which are identical to each other. The significant features of the UCIOA foun- dation bills are as follows: • Definitions – the foundation bill creates definitions planned to be used throughout the legislation. Some ter- minology that is new for New Jersey will be introduced. For instance, whether a condominium or planned com- munity, the common interest community will be formed

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