Some of the things I have heard:
-no plain extension cords but power strips are ok
-windows can open and are not blocked (for emergency egress)
-circuit breakers identified and accessible
-smoke and CO alarms

They are supposed to inspect 20% of the units every 5 years (same as the fire inspections) and they are coming to my development soon.

Is there any easy-to-read "homeowners checklist", in layman's terms, that would help us prepare?

I sent them an email asking this and got back THREE links to their website where I can search through building, electrical, plumbing, fire protection, energy, mechanical, elevator, radon, asbestos, rehabilitation and barrier-free subcodes, and lead hazard abatement codes. If there's something readable by an ordinary citizen, I couldn't find it.

http://www.nj.gov/dca/
http://www.state.nj.us/dca/contact/
www.state.nj.us/dca/divisions/codes

P.S. Please don't give me any links unless it really does answer the question. The last time I asked, someone gave me a link to a pdf. I had to scroll thru 104 pages of rules and regulations that had nothing to do with it.