N.J. Admin. Code § 5:43-5.4

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:43-5.4 - Qualification for registration of qualified entities

(a) In order to be eligible to register as a qualified receiver with the Department of Community Affairs, the applicant must demonstrate that at least one person holding a position of responsibility in the organization possesses the minimum qualifications set forth under either (a)1 or 2 below.

1. Property Management: The responsible person must demonstrate any one of the following qualifications; provided, however, that such persons may substitute office or retail property management experience for up to one half of the minimum number of units set forth below on the basis of 1,000 square feet of office or retail space equals one residential unit:

i. Three years as owner/operator of a property management company with responsibility for management of 100 or more rental units;

ii. Three years as property manager of a building or buildings with 50 or more rental units;

iii. Three years as the senior individual responsible for property management at a community development corporation (CDC) or public housing authority (PHA) with 50 or more rental units; or

iv. Six years as manager or senior staff with substantial responsibility for property management of 50 units or more within a property management company, CDC or public housing authority.

2. Rehabilitation: Individuals whose principal qualifications are in rehabilitation of multifamily housing may serve as receivers on behalf of qualified entities if their activities are on behalf of a firm or entity that they either own, or hold a responsible position in, which maintains and operates the housing (as distinct from acting as a general contractor or construction manager for other parties). In order to qualify under this section, the individual must demonstrate that he or she had responsibility for successful completion of rehabilitation on 50 or more multifamily rental units within the past 10 or fewer years, acting as owner/developer or as responsible staff of a CDC. In order to meet the standard of an entity that maintains and operates the rehabilitated housing, the firm or entity must continue (or plan to continue) as owner and manager of the rehabilitated units for at least five years after completion of rehabilitation. For purposes of this paragraph:

i. Eligible projects are limited to those in which rehabilitation expenditures were at least $15,000 per unit; and

ii. The individual seeking to qualify as a receiver need not be the individual in the firm or entity with direct (hands-on) property management responsibilities, but must hold a position of senior responsibility with the firm or entity.

(b) Applicants on behalf of a qualified entity can substitute course work for experience as follows:

1. Completion of property management courses sponsored by the Institute of Real Estate Management (IREM) or other entity acceptable to the Department can be substituted for up to one year of property management experience on the basis of one course equals three months of experience;

2. The Department may designate certain courses or curricula as substituting for more than three months of experience, but in no event will allow applicants to substitute courses for more than one year of experience;

3. The Department may reduce the minimum number of units required under (a)li or ii above on the basis of completion of property management courses. The number of units may be reduced by no more than one half for courses equivalent to one year of experience, as provided above, or no more than one quarter for a smaller number of courses.

(c) In connection with the application for registration, each applicant on behalf of a qualified entity must disclose, with regard to himself or herself or any other person holding a position of responsibility in entity, or with regard to the entity itself or any related entity:

1. Any criminal convictions within the previous 10 years other than motor vehicle offenses;

2. Any complaints with any official board or agency filed against the applicant in connection with his or her activities as a property manager, property owner or contractor, and their disposition; and

3. Copies of code violation notices and records of correction of violations with respect to properties under applicant's direct control for previous three years.

(d) Registration may be denied to any applicant where the Department finds any of the following on the basis of the applicant's disclosure:

1. The nature of the applicant's past criminal convictions materially affects the ability of the applicant to act successfully as a receiver;

2. The nature of the complaints filed against the applicant materially affects the ability of the applicant to act successfully as a receiver; or

3. The magnitude of the code violations on properties under the applicants control, and/or the failure of applicant to correct violations in a timely manner, materially affect the ability of the applicant to act successfully as a receiver.

(e) In order to remain registered, each applicant must submit a registration renewal request annually, which shall include disclosure of any matters taking place in the previous year requiring disclosure under (c) above.

(f) The organization shall demonstrate that it has experience in obtaining funding from State, Federal, municipal or private sources.

(g) Monitoring: Every two years, qualified entities shall be required to provide the Department with a report and a certification on their standing with the court on any project for which they have been designated a receiver. The report shall include the following information:

1. The location of the project, city and county;

2. The total number of units;

3. The total number of low income units and of moderate income units; and

4. Funding sources.

N.J. Admin. Code § 5:43-5.4

Administrative correction. See:
37 New Jersey Register 3812(a).