This bill amends existing legislation regarding the capital reserve funding requirements for associations of planned real estate developments. It establishes that a 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 balance above zero or include escalating contributions. The bill defines "adequate" and "adequacy" in terms of ensuring that the reserve fund does not fall below zero, based on professional standards applied by qualified specialists overseeing the reserve study.

Additionally, the bill shifts the responsibility for ensuring the review of the capital reserve study from the covered building owner to the association itself, mandating that the study be conducted and reviewed at least once every five years. It also outlines funding options for existing associations, allowing them to either follow the most recent reserve study or fund at 85% of the recommended plan, with specific notification requirements to unit owners regarding potential special assessments or loans. The bill further restricts the 85% funding option to a maximum of five fiscal years and mandates that newly created associations adhere to the funding plan established in their most recent reserve study. Certain outdated provisions regarding reserve funding have also been removed from the law.

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