NJ S3406

Planned real estate development associations may apply to the Department of Community Affairs to reduce their reserve fund obligations based on risk-mitigating features that limit potential repair or replacement expenses for capital assets.

Amends P.L.2023, c.214, which requires associations to maintain reserve funds with 30-year funding plans to cover common element repairs without special assessments or loans.

The Commissioner of Community Affairs must promulgate rules defining what qualifies as risk-mitigating features, which may include the absence of high-rise multifamily housing structures in the development.

Takes effect on the first day of the third month following enactment, with the Commissioner authorized to take anticipatory implementation actions before that date.