Removal Of Age Restrictions On Home Resales Opposed In Manchester

MANCHESTER, NJ — A bill introduced in the New Jersey Legislature could open the door to fundamental changes to age-restricted communities, if the Legislature approves them, Manchester officials and residents say.

Senate bill 2537 and its Assembly companion, 4106, would allow the resale of homes in age-restricted communities without restrictions on the age of the buyer.

The bills were introduced in the spring by Sen. Troy Singleton and Assemblywomen Yvonne Lopez and Angelica M. Jimenez, and both currently await hearings in their legislative committees.

Manchester Mayor Robert Hudak wants to see them stay in committee until they expire.

In a letter to Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin, Hudak said the bill would be a disaster for age-restricted communities. There are 26 such communities in Manchester, and many in neighboring Ocean County towns as well.

"This bill is predatory in nature in that it could lead to real estate professionals and wealthy investors purchasing a significant stake in the communities, changing their community dynamic, and allowing them to rent or profit from flipping houses within the community," Hudak said.

"An influx of purchases from outside the community with intent to rent or resell houses would also allow those outside sources a vote in the association for a community that they have no legitimate interest in," he wrote.

Currently, state law requires someone buying a home in an age-restricted community to certify it will be occupied by a person whose age allows the community to comply with the federal law governing those communities — even if the home's new owner would be under the age limit.

Under federal law, age-restricted communities are permitted as an exception to the anti-discrimination provisions of the "Fair Housing Amendments Act of 1988," as long as certain quotas are maintained of age-appropriate people occupying the homes. For communities geared to those age 62 or older, 100 percent of the occupants have to be aged 62 or older. For communities organized by a developer for those 55 and over, at least 80 percent of the residents, and one resident per each household, must be aged 55 or older.

State law requires someone buying a home in an age-restricted community to certify the home will be occupied by a person whose age allows the community to comply with the federal law, even if the owner would be under the age limit. But community associations are able currently to object to resales where the buyer does not meet the age restriction.

The bill, S2537/A4106, would require communities to approve any sale where the buyer makes the age certification, regardless of the age of the owner, and provides for penalties if the associations do not comply.

"The bill is intended to prevent age-restricted common interest community associations from unnecessarily restricting who owners may sell their homes to," the bill's explainer says.

Hudak, in his letter, said the bill opens the possibility of investors buying up homes in an age-restricted community and, because each home is granted the ability to vote on association matters, could then change the community's rules and its character.

"Manchester is home to upwards of 20,000 seniors, a majority of which live in the 26 age-restricted developments. Many residents choose Manchester because of the rural nature, affordability, and the plethora of amenities provided by the associations," Hudak wrote. "Many of the associations do not have the resources or appropriate unit size for younger families, especially for those with young adults and potentially children."

"This bill would lead to a mass exodus of retired adults in our community as home prices soared to those wealthy enough to purchase many of these units for rental purposes, and will completely alter the way of life that residents have grown accustomed to," Hudak wrote. "I hope you reconsider allowing this bill to come before the delegation."