NJ A1572

HOA officers, board members, employees, and their immediate family members are prohibited from having interests in businesses or engaging in transactions that conflict with their duties to the association.

Associations cannot award contracts to board members/officers, their immediate family, or businesses where they hold more than 5% interest, both during their term and for one year after leaving office.

Board members and officers are barred from using their position to secure unwarranted privileges, acting on matters where they have financial or personal involvement, or using non-public information for financial gain.

Contractors must disclose if any HOA officers, board members, managing employees, or their family members are employed by the contractor, and sponsors' contractors are disqualified for three years after sponsor control ends.

The Department of Community Affairs will investigate violations at unit owners' request and can order removal of board members/officers and void related board actions if violations are found.