September 2025

HOMESTEAD SHEILDS... from page 34.

exemption is applied. For this reason, it would be practically impossible for an association to force the sale of a fore closed unit once the new homestead shield is asserted. Essentially, the bill would let a non-paying owner live for years at the expense of other residents. Is a Carveout the Solution? If A-3538 passes in its current form, the bill could place additional and unwarranted burdens on other, non-de faulting members of a common interest community. Often individuals who are middle-income or living on fixed bud gets. While these communities have the ability to raise fees to offset bad debt, that power is often limited by a community’s governing documents and can take significant time to come into effect (assuming the community can obtain the requisite votes).

tic. As you probably know, associations must fund legally mandated services such as fire suppression, storm-water management, snow removal, and build ing maintenance, yet they generally have only one revenue stream: the assessments paid by their own mem bers. They cannot pick and choose “customers,” perform credit checks, or suspend essential services when a household stops paying. When a delinquency cannot be collected, state law simply reallocates the shortfall to the neighbors who did pay. Because condominium units typically sell for less than detached houses, many will have little or no equity left once the proposed new homestead

Architecture & Design Benchmarking Building Envelope Capital Reserve Studies Civil Engineering Concrete Restoration Energy Services EV Charging Guidelines & Feasibility Expert Witness Façade Inspections Forensics, Litigation & Insurance Claims Local Law Inspections Mechanical, Electrical, Plumbing Parking Garage Restoration Structural Engineering Transition Studies

marketing@thefalcongroup.us www.thefalcongroup.us (800) 839-7740

95 Mount Bethel Road Warren, NJ 07059

66 York Street, 4th Floor Jersey City, NJ 07302

36

SEPTEMBER 2025