Modifies capital reserve funding requirements for certain planned real estate developments.

This bill (S 3992) modifies New Jersey’s requirements for capital reserve funding plans used by condominium and cooperative associations managing common interest communities. It mandates that 30-year funding plans must allow reserve funds to reach exactly zero dollars (not fall below) during the planning period, while permitting additional plans with higher minimum balances or escalating contributions. Associations must now ensure reserve studies are reviewed by licensed professionals every five years, shifting this responsibility from building owners to the associations themselves. The bill also clarifies that "adequate" funding means reserves sufficient to prevent the fund balance from dropping below zero, applying to associations with over $25,000 in common area assets.