NJ A2558

Requires homeowner associations in planned communities to prepare annual operating budgets with adequate reserves for common element repairs and replacements, including roof replacement, building painting, and pavement resurfacing

Mandates developers post a bond with the Department of Community Affairs equal to the annual budget (first year) or annual budget plus accumulated reserves (subsequent years) while they control the association's management contracts

Requires annual audits of association funds by an independent public accountant while the developer controls the executive board, with copies delivered to unit owners within 90 days of fiscal year end

Upon transitioning control to owners, developers must provide an engineering report on common elements prepared by an owner-selected engineer, documentation of all governmental approvals, and a full accounting of association activities during developer control

Allows two or more owners to file derivative warranty claims on behalf of the association for common element warranties during the period of developer control