KEAN BILL PROTECTING RESIDENTS LIVING IN COMMUNITIES WITH HOMEOWNERS’ ASSOCIATIONS CLEARS COMMITTEE

WASHINGTON, D.C. – December 6, 2016 – (RealEstateRama) — Legislation sponsored by Assemblyman Sean Kean to prevent conflicts of interest by board members of homeowners’ associations was unanimously advanced today by the Assembly housing committee.

The state currently has no oversight of homeowners’ association budgets or guidelines concerning the avoidance of conflicts of interests that may arise. Kean’s bill (A-358) prohibits officers, board members or employees hired to manage homeowners’ associations from engaging in any activity that poses a potential conflict of interest.

“Condominium and homeowner associations are powerful entities, and the members of these boards influence hiring and contract decisions worth hundreds of thousands of dollars,” said Kean (R—Monmouth). “For the protection of the more than 1.3 million New Jersey residents who live in these communities, strict rules prohibiting conflicts of interest are essential, and management employees should be held to those same standards.”

The measure prohibits an officer or board member from acting in an official capacity in any matter in which they, an immediate family member, or a business organization has more than a 5 percent interest or that have a direct or indirect financial or personal involvement that may impair their objectivity. It also prohibits the hiring of their immediate family members.