NJ A3504

Planned real estate development associations must include a 30-year capital reserve funding plan that allows the reserve fund balance to reach zero dollars during the projection period, rather than maintaining a minimum balance above zero

Extends the timeline for associations with inadequate reserve funds to achieve adequacy from 10 fiscal years to 30 fiscal years when required budget increases exceed 10% of the previous year's common expense assessment

Defines "adequate" reserve funding as a sum sufficient to prevent the reserve fund balance from falling below zero dollars over the 30-year funding plan period

Shifts responsibility for ensuring capital reserve studies are reviewed by licensed professionals from covered building owners to the planned real estate development associations themselves

Permits reserve studies to include alternative funding plans with minimum balances greater than zero or escalating annual contributions, provided the fund never falls below zero