Yes. Under New Jersey's structural integrity and capital reserve law, P.L. 2023, c. 214 (S2760, effective January 8, 2024), associations of condominiums, cooperatives, and other planned real estate developments must obtain a capital reserve study that includes a 30-year funding plan and update it at least every five years. Associations with less than $25,000 in total common-area capital assets are exempt, and covered condo and co-op buildings with concrete, masonry, steel, or hybrid load-bearing systems must also undergo periodic structural inspections.
Verified against the statute 2026-07-06
Associations of all planned real estate developments regulated under PREDFDA — condominiums, cooperatives, and homeowners associations — except associations with less than $25,000 in total common-area capital assets. The companion structural-inspection mandate covers residential condominium and cooperative buildings whose primary load-bearing system is concrete, masonry, steel, or hybrid construction (single-family and frame-built structures are excluded).
Existing associations without a study from the prior five years had to obtain one within one year of the January 8, 2024 effective date; newly formed associations must obtain one within two years of the owner-majority board election; studies must be updated at least every five years and prepared in conformity with the latest CAI National Reserve Study Standards or similar standards.
Reserves must be funded per the study's 30-year funding plan so that capital assets can be repaired or replaced without special assessments or loans (except early component failure). If curing a funding deficiency requires an assessment increase over 10% of the prior year's assessment, the deficiency must be corrected within 10 years or before reserves reach zero, whichever is earlier, via equal annual line-item increases; deficiencies requiring less than a 10% increase must be cured within two fiscal years.
Developers must make reserve studies and structural inspection reports available to prospective purchasers before the contract date, structural inspection reports must be provided to municipal officials and made available to residents on request, findings must be reflected in public offering statements, and developers must deliver a preventative maintenance schedule for the load-bearing system at transition.
Creates the capital reserve study and 30-year funding plan requirements (supplementing the Planned Real Estate Development Full Disclosure Act, N.J.S.A. 45:22A-21 et seq.), mandates structural inspections of covered condo/co-op buildings, amends public offering statement requirements (N.J.S.A. 45:22A-26), and authorizes boards to assess or borrow for structural corrective maintenance without an owner vote.
Re-verified July 2026: read the full session-law text of P.L. 2023, c. 214 on pub.njleg.state.nj.us and confirmed verbatim the reserve study mandate and 30-year funding plan (C.45:22A-44.2, -44.3), five-year update cycle, exact $25,000 exemption language, one-year/two-year initial-study timelines, CAI National Reserve Study Standards requirement, 10%-threshold deficiency-cure rules (10 fiscal years or reserve-exhaustion date via equal annual line-item increases; two fiscal years for smaller deficiencies), the structural inspection scheme (C.52:27D-132.2 to -132.5), the § 45:22A-26 offering-statement amendment, the C.45:22A-45a board assessment/loan power, and the immediate effectiveness on the January 8, 2024 approval date. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in New Jersey. Report an issue.
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