CAI-NJ Sept. 2019update

NEW JERSEY FORECLOSURE REFORM IS FINALLY ACHIEVED By Thomas C. Martin, Esq., Member, Legislation Action Committee, Partner, Price Meese Shulman & D’Arminio, P.C.

A fter several years working for New Jersey com- mon interest communities, we are very pleased to report that the Community Associations Institute and the members of the Legislative Action Committee have achieved the critically important task of getting leg- islation passed to address and correct the woeful state of the foreclosure process in New Jersey. Two landmark foreclosure reform bills favorable to common interest communities in New Jersey (A5002/ S3414 and A5005/S3413) have been recently signed into law by the Governor at a special signing session in Atlantic City on April 29, 2019.

The law in New Jersey now extends common interest community maintenance fee lien priority to cooperatives and to homeowner associations (whereas up until now it only applied to condominiums). This law now also extends the prior one-time 6 month maintenance fee lien priority to an annual recurring 6 month maintenance fee lien priority. Moreover, the recurring super-priority is also extended to allow for reimbursement of reasonable counsel fees in an amount to be determined by a Court. It is well known that a foreclosure in New Jersey can take several years. New Jersey has been a unique standout in the lengthy foreclosure process. Because

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