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 with higher minimum balances or escalating contributions, as long as the fund does not fall below zero. The bill also clarifies the definitions of "adequate" and "adequacy," specifying that these terms refer to a sufficient sum of money that ensures the reserve fund balance will not drop below zero, in accordance with professional standards.

Additionally, the bill shifts the responsibility for ensuring the review of the capital reserve study from the covered building owner to the association of the planned real estate development. It requires that the study be conducted and reviewed at least once every five years by a licensed architect, engineer, or credentialed reserve specialist. These changes aim to enhance the financial stability and maintenance of common areas within these developments, ensuring that associations are better equipped to manage their capital assets effectively.

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