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S 3913

Relates to the caseloads of preventative services caseworkers

2025 Regular Session Introduced by Robert Jackson and 1 co-sponsor

The bill strengthens resident homeowners’ right to purchase and preserves PRLCs by requiring notice, a 51% group consent purchase window, and potential assignment to public or nonp

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 3913

Summary — S3913 (2024-2025): Rights for resident homeowners in private residential leasehold communities

Status: Reported and committed to Finance (Senate Community & Urban Affairs Committee report with amendments, 6/5/2025). Introduced 12/05/2024. Sponsor: Sen. Sean Ryan; Cosponsor: Sen. Robert Jackson. Companion: A4973.

Purpose

S3913 expands protections and purchase opportunities for homeowners who own mobile/manufactured homes located in private residential leasehold communities (PRLCs, i.e., mobile home parks). The bill is intended to help resident homeowners preserve affordable housing by creating a strengthened right of first refusal and procedural protections when a park owner offers the land for sale or receives a bona fide offer.

Key provisions

  • Definitions: Clarifies terms (PRLC = community with ≥10 home sites; “resident homeowner”; “resident homeowner group” — an organization governed by and open to all resident homeowners).
  • Notice obligations: Landowners must provide certified-mail notice to the Department of Community Affairs (DCA), municipal clerk and mayor (or chief executive), nonprofits listed on a DCA-maintained list, and each resident homeowner. Notice must state price, terms, conditions, and a contact person.
  • DCA nonprofit list: DCA will publish/maintain a list of nonprofit organizations that request notice of potential PRLC sales; DCA updates the list within 90 days of a new request (committee amendment).
  • Right of first refusal:
    • Resident homeowners, acting through a resident homeowner group, may exercise the right to purchase if 51% of resident homeowners consent (down from prior two-thirds threshold for “associations”).
    • The group must meet the price/terms by executing a contract within 120 days of initial notice (previously 45 days).
    • Negotiations must be conducted in good faith; timelines may be extended; financing arrangements permitted.
    • Landowners may require refundable earnest money up to $50,000.
    • Residents may indicate consent via petition or other signed document.
  • Representation and organizational options: Resident homeowner groups may select up to seven representatives (with counsel assistance) to receive and negotiate information; groups may form cooperatives/nonprofits to hold title.
  • Assignment option: Groups may assign purchase rights to the municipality, a housing authority, a State agency, or a nonprofit/cooperative to preserve the property as a manufactured home community.
  • Confidentiality: Parties involved in negotiations must keep proprietary/confidential information confidential; unauthorized disclosure may cause irreparable harm and entitle the harmed party to injunctive relief (committee amendments add/clarify confidentiality).
  • Enforcement and remedies: Resident homeowner groups or the Attorney General may sue in Superior Court for violations of the PRLC law; violations are treated as unlawful practices under NJ’s Consumer Fraud Act and subject to penalties.
  • Exemptions and repeals:
    • Sale/transfer to a resident homeowner group or its assignee is exempted from the Planned Real Estate Development Full Disclosure Act (PREDFDA).
    • Repeals sections 6–9 of prior law (P.L.1991, c.483) and replaces references to “association of unit owners” with “resident homeowner”/“resident homeowner group.”

Who is affected

  • Resident homeowners in PRLCs (owners of homes but not the land) — primary beneficiaries.
  • PRLC landowners — new notice, process and confidentiality obligations; potential exposure to enforcement under Consumer Fraud Act.
  • Municipalities, housing authorities, State agencies and nonprofits — possible assignees and partners in preservation purchases.
  • Lenders and purchasers — will face new timelines and potential assignment/first-refusal claims.

Procedural / timeline notes

  • Resident homeowner group has 120 days from initial notice to execute a purchase contract (with possible negotiated extensions).
  • DCA maintains and updates the nonprofit notification list within 90 days after receiving a request.
  • Committee amendments reported 6/5/2025 (removed NJHMFA from notice list, extended DCA update timeline to 90 days, added confidentiality provisions).

Potential impact

  • Strengthens resident homeowners’ ability to keep communities intact and reduce displacement risk by lowering consent threshold and lengthening the decision window.
  • Likely to slow or complicate some PRLC sale transactions due to added notice, negotiation and confidentiality steps.
  • Could increase opportunities for municipal or nonprofit acquisition to preserve affordable housing.
  • Raises compliance and potential litigation stakes for landowners who fail to follow new procedures.

For more detail, see the committee report (Senate Community & Urban Affairs, 6/5/2025) and companion bill A4973.

Compiled from official sources — confirm details with the bill’s official record.

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