NJ A5016

Narrows the scope of structural inspection and capital reserve requirements to apply only to residential condominium and cooperative buildings that are three stories or more in height, excluding shorter buildings from compliance

Limits capital reserve study requirements to focus specifically on the primary load bearing system of covered buildings, rather than all common area capital assets

Extends the timeframe for associations with inadequate reserves requiring more than 10% annual assessment increases from 10 fiscal years to 20 fiscal years to achieve adequate funding levels

Doubles the compliance period for associations needing less than 10% assessment increases from two fiscal years to four fiscal years to bring reserve funds into conformity

Clarifies that reserve funds are specifically designated for repair or replacement of primary load bearing system components, allowing special assessments or loans only when components fail earlier than predicted