LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 4384
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: DECEMBER 26, 2023
SUMMARY
Synopsis: Concerns structural integrity regulations for certain residential
buildings.
Type of Impact: Increase in annual State and local expenditures; Potential increase in
State and local revenues.
Agencies Affected: Department of Community Affairs; local code enforcing agencies.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Cost Increase Indeterminate
Potential State Revenue Increase Indeterminate
Local Cost Increase Indeterminate
Potential Local Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill will result in an indeterminate
increase in annual costs to State and local code enforcing agencies, including the Department
of Community Affairs, associated with conducting structural inspections of covered buildings,
and with administrative costs related to the preparation of written structural inspection reports.
 The bill may also result in an indeterminate increase in annual revenue to State and local code
enforcing agencies, to the extent that the code enforcing agencies increase their post-occupancy
inspection fees. The collection of fees would be paid by a covered building owner. Any
increased fee would offset certain additional costs incurred by the code enforcing agencies
resulting from the bill.
BILL DESCRIPTION
The bill supplements the State Uniform Construction Code Act to require that certain
covered buildings, which are limited to condominiums and cooperatives, be inspected by a
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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structural inspector, as defined in the bill, at certain times and intervals. Under the bill, following
the issuance of a certificate of occupancy, an initial structural inspection of the building
components forming the primary load bearing system of a covered building is required to be
completed by a post-occupancy structural inspector. The bill further establishes certain timelines
for inspections, dependent on when a certificate of occupancy was issued.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result in an indeterminate increase in annual costs to
State and local code enforcing agencies, including the Department of Community Affairs, which
enforces the State Uniform Construction Code in 45 municipalities in the State, associated with
conducting structural inspections of covered buildings, and with administrative costs related to
preparation of written structural inspection reports.
The bill provides that a structural inspector may be a construction official appointed by a
municipality who is also an engineer licensed by the State, an employee of the Bureau of Housing
Inspection in the Department of Community Affairs who is also an engineer licensed by the State,
or an engineer licensed by the State with whom the covered building owner contracts to perform
structural inspections of a covered building. The bill requires structural inspectors to oversee and
conduct post-occupancy inspections, complete written inspection reports, determine when
subsequent structural inspections should take place, and identify any need for corrective
maintenance.
The Bureau of Housing Inspection and local code enforcing agencies may experience increased
costs, to the extent that additional engineers licensed by the State need to be hired or appointed to
serve as structural inspectors to carry out the provisions of the bill and to the extent that current
employees’ working hours or pay increase as a result of the requirements of the bill. The OLS is
unable to predict the number of covered buildings for which a construction application will be
received following the effective date of the bill and is unable to estimate the number of covered
buildings that have already received a certificate of occupancy in the State or the number of years
the certificates of occupancy preceded the bill’s effective date. The OLS notes, however, that
covered buildings include certain condominiums and cooperatives. The OLS is also unable to
predict the extent to which owners of covered buildings will choose to contract with a privately
employed structural inspector to conduct the structural inspections under the bill, and is therefore
unable to predict the demand for structural inspectors employed by the State or local code
enforcing agencies.
The OLS notes that the bill requires that the covered building owner retain the inspector for
post-occupancy inspections and further provides that post-occupancy inspections can be conducted
in conjunction with other required inspections, such as those inspections required pursuant to the
Hotel and Multiple Dwelling Law. Additionally, if State and local code enforcing agencies
increase their post-occupancy inspection fees as a result of the increased costs, the payment of the
increased amount would offset certain additional costs incurred by the code enforcing agencies
resulting from the bill.
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Section: Local Government
Analyst: Abigail Stoyer
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 45:22A-26