This bill amends existing legislation regarding the capital reserve funding requirements for associations of planned real estate developments. It mandates that the proposed 30-year capital reserve funding plan must allow the reserve fund to reach a balance of zero dollars during the projection period, while also permitting additional funding plans that maintain a minimum fund balance above zero or include escalating annual contributions, as long as the reserve fund does not fall below zero. The bill also clarifies the definitions of "adequate" and "adequacy," specifying that these terms refer to the necessary funds that ensure the reserve balance does not drop below zero, in accordance with professional standards.

Additionally, the bill shifts the responsibility for ensuring that a capital reserve study is reviewed by a licensed architect, engineer, or credentialed reserve specialist from the covered building owner to the association of a planned real estate development. It requires that these studies be conducted and reviewed at least once every five years. The legislation aims to enhance the financial stability and maintenance of common areas within these developments by ensuring that adequate funding is planned and monitored over time.

Statutes affected:
Introduced: 52:27D-132.3, 45:22A-44.2