Condominium Legislation Law

Condominium Legislation Law – NJ Senate No. 2760 Assembly No. A3484 – Structural Building Inspections and Reserve Studies

On January 9, 2024, a bill was passed in New Jersey establishing inspections, maintenance and reserve funding for condominiums and cooperatives. This bill requires structural inspections to be conducted by a licensed Professional Engineer (PE) and associations to have reserve studies completed and updated on a routine basis. Click here to read full legislation.

New Construction & Structural Modifications to Existing Buildings

At the time of a permit application to “create, amend or modify the primary load-bearing system,” an inspection is required to show the load-bearing system conforms with the plans. The inspection may be performed by an engineer chosen by the enforcement agency or permit applicant.

At the completion of construction, modifications or repair, an inspection is required. Depending on conditions, a report will be provided by the engineer or a certification of occupancy (C.O.) issued by the construction official.

The building owners are required to retain a licensed engineer to perform post certification of occupancy inspections.

Post-occupancy structural inspection will include a report by the inspecting licensed engineer.

  • According to the protocols of the American Society of Civil Engineers.
  • Review of any previous inspection reports.
  • Include recommendations for repair and maintenance with reasonable detail of the required corrective maintenance.
  • Recommend duration to next inspection (maximum 5 years).
  • Report to be issued to owner, municipal authority, construction official and enforcing authority.
  • Report to be available to any resident of the building.
  • Any repair plans to be provided by licensed engineer or architect and be submitted to construction official.
  • Engineers performing duties shall not incur civil liability for injury associated with inspection.

Developers will provide a document with preventive maintenance and inspection of common areas including structural component and budget at transition. The document will be updated after each periodic structural inspection.

The developer will also provide plans and specification for the development at the time of transition. Plans will include as-builts of the primary load-bearing system and mechanical systems.

Capital Reserve Studies

A capital reserve study shall be conducted to determine or assess the adequacy of the association’s capital reserve funds to meet the anticipated costs of replacement or repair of the capital assets of the common elements the association is obligated to maintain. The study should cover a 30-year duration funding plan. In addition to the costs associated with common elements, the funding estimates will include structural repair, periodic structural inspections, and reserve studies.

Associations without a reserve study in the prior 5 years are required to perform one within one year. A new study is required every 5 years.

  • If the date of the last Reserve Study is earlier than January 8, 2019, a new Study is required. An inspection must be made no later than January 8, 2025.
  • If the association is new or no prior Study has been performed, a Study is required within 2 years of election of owners as majority of board.
  • If there is a reserve shortfall by more than 10%, an increase in the annual contribution is needed to catch up.  This must be accomplished within 10 years or before the reserve fund balance reaches zero.
  • If there is a reserve shortfall by less than 10%, an increase in the annual contribution is needed to catch up.  This must be accomplished within 2 years.

Click here for Legislation Requirements for Reserve Studies handout sheet.

Structural Building Evaluations (SBE)

The new legislation applies to condominium or cooperative buildings with a primary load-bearing system of concrete, masonry, steel or hybrids, including heavy timber, and buildings with podium decks. Podium decks are structural platforms that support construction above and is a popular construction method.

  • If the date of the Certificate of Occupancy (C.O.) is January 8, 2024 or after, an SBE inspection is required within 15 years.
  • If the C.O. date is between January 9, 2009 to January 7, 2024, an SBE inspection must be conducted no later than one year more than the C.O. date plus 15 years.  Example: C.O. date is January 1, 2012, then inspection is required no later than January 1, 2027 plus 1 year = January 1, 2028.
  • If the C.O. date is January 8, 2009 or before, an SBE inspection must be conducted within 2 years of the effective date of legislation or no later than January 8, 2026.

Reinspection within 10 years of first inspection during the building’s first 20 years.

Reinspection within 5 years of first inspection if the building is older than 20 years.

Click here for Legislation Requirements for SBE handout sheet.

 

Lockatong Engineering are licensed Professional Engineers and have decades of experience conducting Building Inspections and Investigations, Structural Building Inspections, Reserve Studies, and Transition Studies.

Our Engineering team is available to assist your community association in complying with this new regulation. Contact us to get more information.