Current through Register Vol. 56, No. 18, September 16, 2024
(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.
