Your Ultimate Guide to New Jersey's Reserve Study & Reserve Funding Requirements Passed in 2024 Due to Senate Bill S2760 and Assembly Bill A4384.
Which type of properties are affected?
You will need to conduct a Reserve Study if your property has over $25,000 worth of common capital assets. See the properties below:
Condominiums
Cooperatives
When do you need to get the Reserve Study done?
If you have not completed a Reserve Study in the past five years, you will need to have one conducted by January 8th, 2025. If you have a Reserve Study that's been completed in the past five years, you will need to conduct another one within five years of completion of the last Reserve Study. For any properties that are formed after January 2025, you must conduct a Reserve Study within two years once the majority of the board has been elected.
Who can conduct the Reserve Study?
Three professionals can conduct your Reserve Study. First, the study can be completed or overseen by a Reserve Specialist (RS). Second, the study can be completed by a New Jersey-licensed Professional Engineer. Lastly, the study can be completed by a New Jersey-licensed Architect.
Make sure when choosing a company to complete the Reserve Study that they at least have one of those professionals.
What are the funding requirements once you get the Reserve Study?
If the annual reserve contribution recommended by the Reserve Study increases the total annual budget by less than 10%, you will have two fiscal years to make up the difference in your reserve account(s).
If the annual reserve contribution recommended by the Reserve Study increases the total annual budget by more than 10%, you will have ten fiscal years to make up the difference in your reserve account(s). If the reserve account(s) drop to $0.00 before the ten fiscal year mark, you will need to then make up the difference in your reserve account(s) at that fiscal year.
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