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. It clarifies the meaning of terms such as "adequate," "covered building," and "structural inspector," and establishes the necessity for associations to conduct and fund a capital reserve study to assess the adequacy of their reserve funds. The study must be performed by a qualified reserve specialist or licensed engineer and must conform to recognized national standards. Additionally, associations are required to review their capital reserve studies at least once every five years and must undertake a study within one year if they have not done so in the past five years.

The bill also outlines the funding requirements for capital reserve funds, stipulating that associations must ensure adequate reserves to cover anticipated repair or replacement costs without resorting to special assessments or loans. It includes provisions for associations to fund their reserves at 85% of the recommended amount under certain conditions, with specific notice requirements to unit owners regarding potential future assessments. The amendments aim to enhance the financial stability of associations and ensure the maintenance of common areas and facilities.

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