Community Trends - May 2025

LEGISLATIVE UPDATE

MATTHEW Z. EARLE, ESQ. KATES, NUSSMAN, ELLIS, FARHI & EARLE, LLP LEGISLATIVE ACTION COMMITTEE CHAIR

As we approach the summer months (and state budget season), be aware of a few things: 1. New mulch regulations that prohibit the placement of combustible mulch within 18 inches of a combustible structure. Note that single family one- and two-family homes, and single family attached homes (i.e. town homes) which are “owner-occupied,’ are exempt from the new mulch regulation. “Owner-occupied” is defined as at least one owner on the deed being in occupan cy. Questions have been posed to the Department of Community Affairs (DCA) regarding how associations are supposed to know whether a particular home is owner occupied. There is also a question of whether the exemption applies to only a particular unit, or the entire building where the owner-occupied unit is located. In light of the confusion surrounding this issue, each asso ciation is well served by seeking its own legal counsel and interacting with local fire officials. 2. The New Jersey Legislative Action Committee (NJ-LAC) continues its efforts to preserve the structural integrity and reserve funding bills. Please be on the lookout for our alerts and please respond! 3. The LAC is aware of emergency temporary “Uniform Housing Affordability Controls” (“UHAC”) regulations. These regulations impact how affordable housing units in associations are assessed, and currently state, “The master deeds [of] and Declarations of Covenants and Restrictions for affordable developments [shall pro vide no distinction] may not distinguish between [the] restricted units and market-rate units in the calculation of any condominium or homeowner association fees and

“The New Jersey Legislative Action Committee (NJ-LAC) continues its efforts to preserve the structural integrity and reserve funding bills.” special assessments to be paid by [low-and] low- and moderate-income purchasers and those to be paid by [market] market-rate purchasers… Any increase to the homeowner association fee, condominium association fee, or amenity fee that would cause an owner of an affordable unit to exceed the housing costs specified in these regulations is prohibited. If renovations or charges related to a special assessment do not impact or benefit affordable units, affordable unit owners may not be sub ject to the special assessment charge.” As you can see, the regulations appear to cap the amount of assessments that can be imposed on affordable units and may carve affordable units out from certain assessments that do not “benefit” them. The regulations are problematic in a number of ways, and we have met with the state to discuss alternative language. 4. We are continuing to carefully monitor our other legis lative priorities, including board member training and manager licensing for legislative action. We expect movement on these bills once the budget is resolved. We are pleased to note that the sponsor, Annette Quijano, has expressed an openness to the drafts of the legislation prepared by the LAC. n

Stay up-to-date on legislative issues at www.cainj.org.

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MAY 2025