NJ S2760: New Jersey’s Push for Structural Integrity

New Jersey reserve study
The collapse of the Champlain Towers South in Florida in 2021, which resulted in 98 dead and dozens of families without a home, underscored the devastating consequences of neglecting the structural health of a building. Its shocking aftermath became a wake-up call for stakeholders nationwide to recognize the importance of structural integrity in buildings.

One of the impacts of the Surfside condo collapse has been various states pursuing legislation regarding multi-family structures and New Jersey has been one of the states that recently signed the New Jersey Senate Bill No. 2760. This law establishes stringent procedures for structural inspections and reserve studies of condominium residential housing in New Jersey. It aims to safeguard NJ communities and prevent tragedies, like the one in Florida, from happening in New Jersey.

What You Need to Know About Senate Bill No. 2760

The New Jersey Senate No. 2760 or Assembly 3484 (S2760/A4384) was first introduced on June 2, 2022, and was passed into law on January 8, 2024.

This legislation supplements the State Uniform Construction Code Act (UCCA), which regulates the construction, modifications, maintenance, and occupancy of all buildings and structures in New Jersey.

Under the S2760/A4384, a licensed structural engineer NJ must review proposed building plans that propose to create or alter the primary load-bearing system of a condominium or cooperative building. This will now be a requirement when applying for a construction permit in New Jersey, whether intended for new or existing buildings.

Covered buildings, under this law, include only residential condominiums and cooperative buildings with primary load-bearing systems made of:

  • concrete
  • masonry
  • steel
  • hybrid structures (including heavy timber and buildings with podium decks)

The structural inspector may be designated by the permit applicant or chosen by an enforcing agency. The designated building inspection engineer NJ shall:

  • Review the submitted construction plans
  • Set a schedule for a pre-occupancy inspection
  • Inspect the building to verify that the primary load-bearing system follows the approved plans
  • Issue a written inspection report
  • Determine the timing of subsequent inspections

A Certificate of Occupancy (CO) will not be issued until the inspector’s report confirms that the constructed load-bearing system adheres to the approved plans. The law also precludes the issuance of the CO until all necessary alterations or repairs stipulated under the inspector’s report are made.

Post-Occupancy Inspection

S2760/A4384 requires a post-occupancy structural inspection even after the issuance of the original CO:

  • 15 years after the issuance date of the original CO if issued after January 8, 2024
  • Or no later than one year more than the CO date plus fifteen years if CO is issued between January 9, 2009 and January 7, 2024
  • Or within two years if the CO is issued before January 8, 2009
  • Or within 60 days after detecting observable damage to the primary load-bearing system

The post-occupancy inspection shall follow the protocols of the American Society of Civil Engineers (ASCE) or other nationally recognized engineering organizations. The structural inspector is required to be a Licensed Professional Engineer. Upon selecting the structural inspector, the following activities need to be performed:

  • Review of previous structural inspection reports and any prior structural repair reports
  • Site inspection
  • Issuance of a report with recommendations for repair and maintenance
  • Setting the timing of the next inspection

The post-occupancy inspection report shall be issued to the building owner, municipal authority, enforcing authority, and construction official.

Reserve Study

S2760/A4384 also requires a New Jersey reserve study on planned real estate developments. Its goal is to ascertain that the association has sufficient capital reserve funds to meet the anticipated costs of maintaining the building’s structural integrity. The Reserve Study regulation applies to all condominiums and cooperatives regardless of the building construction type.

The NJ reserve study must be performed by either a

  • Credentialed reserve specialist, or
  • Licensed Professional Engineer or architect

The reserve study should include the following details:

  • Capital reserve fund balance
  • Anticipated income and expenses
  • Analysis of the physical status of common area components
  • Anticipated cost of building maintenance
  • Cost of periodic structural inspections
  • Cost of implementing corrective maintenance

As with structural inspections, reserve study inspections must be performed every five years, at a minimum. For associations that have no prior study or their last study was conducted before January 8, 2019, a new study is required no later than January 8, 2025. For new associations, a study must be undertaken within two years of the election of owners as majority of board.

Community associations should have an adequate 30-year reserve fund for the repair or replacement of common elements or facilities without the need for a special assessment. Adequate funding means that the fund does not go below zero at any point during this period. The association should only use these funds for items specified in the reserve study NJ.

If the study shows a reserve shortfall

  • By more than 10%, an increase in the annual contribution is needed to be made up by 10 years or before the fund balance reaches zero.
  • By less than 10%, the annual contribution must be increased to make up the shortfall within two years.

Impact on New Jersey Residents and Property Owners

The signing of S2760/A4384 created new responsibilities for property owners, developers, and community associations. Consequently, it increases New Jersey residents’ safety and peace of mind when it comes to their dwellings.

Impact on NJ Property Owners

  • Regular Inspections: Owners are now required to conduct regular structural inspections of their properties to identify and address any structural issues early on and prevent disastrous accidents.
  • Financial Responsibility: The new legislation requires property owners, particularly those in condominiums and cooperatives, to have sufficient reserves to cover the costs of inspections and building maintenance. Community associations now have to be more stringent about their financial planning and management responsibilities to achieve compliance​.
  • Compliance and Penalties: Non-compliance with the new regulation can result in penalties, adding legal and administrative responsibilities for property owners. ​

Impact on NJ Residents

  • Increased Safety: The S2760 aims for early detection and remediation of structural issues through inspection and adequate reserve funds. This minimizes the risk of structural failures and enhances the safety of residents​​.
  • Peace of Mind: By implementing stringent inspection and maintenance requirements, NJ residents have peace of mind that incidents like the collapse of Champlain Tower South will not happen to their homes.

Role of Structural Engineers in Community Safety

The new Senate Bill S2760 in New Jersey emphasizes the crucial role of licensed professional structural engineers in maintaining community safety.

Engineers play a vital role in detecting issues such as cracks, water damage, building envelope defects, and other signs of structural deterioration. Their detailed reports help property owners address problems before they escalate. ​

Additionally, structural engineers can advise on the best practices for maintenance and repairs. Engineers can facilitate proper and efficient repairs to further safeguard the structural integrity of buildings.

Residents and property owners in New Jersey looking for reliable structural inspection and reserve study services can rely on Lockatong Engineering as a trusted engineering partner. With years of experience and a team of highly-qualified professionals, Lockatong Engineering provides comprehensive inspection services that help confirm properties’ compliance with all safety standards.

Lockatong Engineering specializes in:

  • Detailed structural inspections
  • Detection of potential issues
  • Advising on effective maintenance and repair strategies
  • Performing reserve study inspections and reserve fund projections
  • Compliance with the latest legislative requirements

Contact Lockatong Engineering at https://www.lockatong.com/contact-us/ for a comprehensive structural inspection and reserve study in New Jersey.