NJ Bill S2760/A4384 - Condos & Co-Ops

New & Existing Building Inspection Requirements: 

• 1st inspection must occur within the earlier of: 
• 1 day to 5 years old, within 6 years; 
• 5 years and one day to 10 years old , within 4 years; 
• 10 years and one day or longer, within 2 years 
• Structural inspector (NJ licensed PE) must issue a written report identifying any necessary repairs needed by the primary load bearing system.
• Structural inspector is to determine a reasonable period of time for next inspection but it must be no more than 10 years following the first inspection during the first 20 years following the C.O. issuance or no more than 5 years if building is older than 20 years.
• Buildings with steel, concrete or masonry load-bearing systems are affected.
• Buildings constructed of light timber framing, including pre-fabricated timber truss elements, are excluded from the requirements of the new bill, unless constructed on a concrete podium.

New Building Construction Inspection Requirements:

• Structural inspection is required during and at completion of the construction.
• No certificate of occupancy (C.O.) may be issued without a written report from licensed structural inspector confirming the primary load bearing system conforms with approved construction plans.
• For buildings being converted to condominium or cooperative, a structural inspection report shall be issued as part of the Planned Real Estate Full Disclosure registration process.

Capital Reserve Studies:

• A capital reserve study shall determine funds anticipated for cost of replacement/repair of assets.
• Study shall conform to CAI’s National Reserve Study Standards.
• If a community hasn’t conducted a capital reserve study within past 5 years, they have 1 year to do so.
• A new association must conduct reserve study within 2 years.
• Thereafter, reserve studies must occur at least every 5 years.

Primary Load Bearing System Funding:

• A capital reserve study shall determine funds anticipated for cost of replacement or repair of assets.
• Study shall conform to CAI’s National Reserve Study Standards.
• If a community hasn’t conducted a capital reserve study within past 5 years, they have 1 year to do so.
• A new association must conduct reserve study within 2 years.
• Thereafter, reserve studies must occur at least every 5 years.

Capital Reserve Funding:

• An association must obtain a reserve study including a 30-year funding plan. The study shall include cost of structural inspections for a covered building.
• If funding in the account is deficient and could result in a more than 10% increase in common expense assessment, the deficiency must be recovered in no more than 10 fiscal years to avoid assessment, loan, or to be certain funding does not go below zero at end of any year.
• If a deficiency in the account would require an increase in annual assessment of less than 10%, the deficiency must be recovered within 2 fiscal years.