Bill Text: NJ S3367 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires certain approvals as a condition of sale or transfer for certain cooperative buildings.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-12-05 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3367 Detail]
Download: New_Jersey-2022-S3367-Introduced.html
Sponsored by:
Senator GORDON M. JOHNSON
District 37 (Bergen)
SYNOPSIS
Requires certain approvals as a condition of sale or transfer for certain cooperative buildings.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the approval of certain sales of cooperative buildings and supplementing P.L.1987, c.381 (C.46:8D-1 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any provision of a governing document of a cooperative association to the contrary, a sale, or transfer in ownership, of a residential building of a cooperative shall not occur unless the owners of more than 50 percent of the residential units of the cooperative vote to approve the sale or transfer.
b. As used in this section:
"Cooperative" means any system of land ownership and possession in which the fee title to the land and structure is owned by a corporation or other legal entity in which the shareholders or other co-owners each also have a long-term proprietary lease or other long-term arrangement of exclusive possession for a specific unit of occupancy space located within the same structure.
"Cooperative association" means the association organized for the management of the common elements and facilities of a cooperative.
"Owner" means a person owning a unit, or an "owner" or holder of a "proprietary lease," as those terms are defined pursuant to subsections i. and k. of section 3 of "The Cooperative Recording Act of New Jersey," P.L.1987, c.381 (C.46:8D-3), or other long-term arrangement providing a long-term exclusive right of possession and occupancy of a designated residential unit.
"Residential building" means a building of a cooperative that includes three or more residential units.
"Residential unit" means a part of a cooperative structure designed or intended for residential occupancy by an individual household.
2. This act shall take effect on the first day of the third month next following enactment, and shall apply to a sale or transfer for which the contract has not been entered prior to that date.
STATEMENT
This bill would prohibit the sale, or transfer in ownership, of a residential building organized as a cooperative from occurring unless the owners of more than 50 percent of the residential units of the cooperative vote to approve the sale. The sale restrictions established by the bill would only apply to a sale or transfer of a building that includes three or more residential units.
A cooperative is a system of land ownership and possession in which the fee title to the land and structure is owned by a corporation or other legal entity in which the shareholders or other co-owners each also have a long-term proprietary lease or other long-term arrangement of exclusive possession for a specific unit of occupancy space located within the same structure. The bill defines an "owner" to include the holder of a proprietary lease, or other long-term arrangement providing a long-term exclusive right of possession and occupancy of a designated residential unit.
The bill would take effect on the first day of the third month following enactment, and would apply to any sale or transfer in ownership for which the contract has not been entered prior to that date.
