Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that amends capital reserve funding requirements for certain real estate developments in New Jersey.

Highlights:

• Amends and modifies certain requirements concerning the capital reserve study, 30-year funding plan, and capital reserve fund of an association of a planned real estate development (Sec. 2).

• Requires a proposed 30-year capital reserve funding plan or plans within a capital reserve study, required pursuant to section 7 of P.L.2023, c.214 (C.45:22A-44.3), to allow a capital reserve fund of an association to reach a dollar balance of zero during the 30-year funding plan projection (Sec. 2).

• Authorizes and permits a capital reserve study to provide additional funding plans that have a minimum fund balance greater than zero, or funding plans with escalating annual contributions, provided the reserve fund balance is not projected to fall below zero dollars (Sec. 2).

• Defines the terms "adequate" and "adequacy" to mean a sum of money, however invested or held by an association of a planned real estate development, that, in accordance with the professional standards applied by the reserve specialist, architect, or engineer performing or overseeing the study, is sufficient so that the balance in the association’s reserve fund will not fall below zero dollars as outlined in the association’s 30-year funding plan, prepared as part of a reserve study (Sec. 2).

• Requires an association of a planned real estate development, instead of a covered building owner, to ensure that a capital reserve study is reviewed by a licensed architect, engineer, or credentialed reserve specialist, and that a capital reserve study is conducted and reviewed at least once every five years (Sec. 2).

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 3).

Full Bill Text