New Jersey sets no statutory dollar cap on association fines. Fine authority comes from the recorded declaration and bylaws, but PREDFDA and the Condominium Act add fairness requirements: written notice, a chance to cure, and access to mandatory alternative dispute resolution before a fine dispute reaches court.
Neither PREDFDA (N.J.S.A. 45:22A-21 et seq.) nor the Condominium Act caps fine amounts; the power to fine flows from the governing documents. What the statutes add is process. N.J.S.A. 46:8B-14(k) and the PREDFDA regulations require associations to "provide a fair and efficient procedure for the resolution of housing-related disputes," available as "an alternative to litigation," using a neutral third party who is not a board member or involved owner. A member's good standing cannot be stripped over a contested charge if the member "has requested or is participating in Alternative Dispute Resolution" (N.J.A.C. 5:26-8.8). Practically, an owner must receive written notice of the alleged violation and a reasonable opportunity to cure before a fine is imposed.
No specific statutory penalty cap. Fines are set by the declaration/bylaws; the association must offer written notice, a chance to cure, and access to ADR. A member contesting a fine through ADR keeps good standing on that charge (N.J.A.C. 5:26-8.8).
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