Requires licensure of community management entity that contracts to conduct management services for planned real estate development association.

This bill requires community management entities in New Jersey to obtain a license before contracting to manage planned real estate developments, such as condominiums and homeowners' associations. The Commissioner of Community Affairs must create a licensing system that includes specific experience requirements and will enforce the rule by prohibiting unlicensed entities from signing new management contracts. Violations of this requirement could result in penalties of up to $4,000 for each contract entered into without a license. The legislation also directs the commissioner to adopt necessary regulations within seven months of enactment.