The bill amends several sections of P.L.2023, c.214, specifically focusing on the definitions and requirements related to capital reserve studies for associations of planned real estate developments. Key definitions are established, including "adequate" or "adequacy," which refers to the necessary financial resources to maintain the association's reserve fund without falling below zero dollars, as outlined in a 30-year funding plan. The bill also clarifies terms such as "covered building," "excluded structure," and "structural inspector," ensuring that associations understand their obligations regarding maintenance and funding.

Additionally, the bill mandates that associations conduct and fund a capital reserve study to assess the adequacy of their reserve funds for maintaining common areas and capital assets. It requires that these studies be performed by qualified professionals and reviewed every five years. The bill also stipulates that associations must adhere to specific funding plans to ensure adequate reserve funds, including providing notice to unit owners if they choose to fund at a reduced level. Certain provisions are deleted, including specific funding requirements and conditions, streamlining the obligations of associations while ensuring they maintain sufficient reserves for future repairs and replacements.

Statutes affected:
Introduced: 52:27D-132.3, 45:22A-44.2
Advance Law: 52:27D-132.3, 45:22A-44.2, 45:22A-44.3
Pamphlet Law: 52:27D-132.3, 45:22A-44.2, 45:22A-44.3