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Bill > A5016
NJ A5016
NJ A5016Modifies requirements for associations to protect structural integrity of certain buildings; expands timeframes for associations to establish adequate reserves.
summary
Introduced
11/14/2024
11/14/2024
In Committee
11/14/2024
11/14/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill amends a recent enactment, P.L.2023, c.214, (C.52:27D-132.2 et al.), which imposed various requirements upon associations responsible for the management and maintenance of the common elements and facilities of residential buildings within planned real estate developments. The bill also limits applicability of the capital reserve study and funding requirements of P.L.2023, c.214, (C.52:27D-132.2 et al.) to residential condominium and cooperative buildings that are three stories or more in height. The bill further modifies current law to enable impacted associations to increase the amounts required to hold in necessary reserve funds over a longer period of time. The Legislature enacted P.L.2023, c.214 for the purpose of enhancing the structural integrity of the primary load bearing systems of residential buildings. However, language contained in the underlying enactment may be interpreted as having imposed requirements to protect against failures of common areas and capital improvements even though they do not impact a building's structural integrity. The recent enactment may also be interpreted as imposing requirements on non-residential buildings as well as residential ones. This bill modifies language from the recent enactment to address these issues and to limit applicability of P.L.2023, c.214 to residential buildings that are three stories or more in height. Additionally, the bill would double the timeframe imposed under current law within which an impacted association is required to establish and maintain a reserve fund in an adequate amount.
AI Summary
This bill modifies a previous law (P.L.2023, c.214) that mandates structural integrity requirements for residential condominium and cooperative buildings. The key changes include narrowing the law's applicability to only residential buildings that are three stories or more in height and focusing specifically on the primary load bearing system rather than all common areas. The bill clarifies definitions of key terms like "covered building" and "primary load bearing system," and expands the timeframe for associations to establish adequate reserve funds. For associations that do not currently have sufficient reserve funds, the bill doubles the time to become financially compliant - extending from 10 to 20 years if the required funding increase would exceed 10% of the previous year's common expense assessment, and from two to four years if the increase is less than 10%. The bill requires associations to conduct capital reserve studies that specifically assess the structural components critical to a building's integrity, with a focus on long-term maintenance and replacement of primary load bearing system components without necessitating special assessments or loans. These changes aim to provide more realistic and manageable guidelines for residential building associations to maintain their structures' safety and structural soundness.
Committee Categories
Housing and Urban Affairs
Sponsors (7)
Paul Kanitra (R)*,
Greg McGuckin (R)*,
Robert Clifton (R),
Dawn Fantasia (R),
Michael Inganamort (R),
Gregory Myhre (R),
Brian Rumpf (R),
Last Action
Introduced, Referred to Assembly Housing Committee (on 11/14/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5016 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5016_I1.HTM |
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