Due to limited funds and administrative challenges, property maintenance and replacements of common elements can be challenging for homeowners’ associations (HOAs). Failing to address the need for repairs and replacements can lead to costly reconstructions and even life-threatening situations.
The Champlain Towers collapse in Florida is a tragedy that continues to haunt communities years after it happened. It serves as a reminder of the importance of property maintenance and sufficient planning for asset repairs – aspects addressed in a NJ reserve study.
Under the newly ratified NJ S2760, cooperatives and HOAs must conduct a reserve study every five years. The objective of this rule is to establish an adequate reserve fund for the maintenance of real estate properties.
A reserve study NJ is a budgeting tool that helps property owners make informed decisions regarding major capital projects and investments. Even though association boards have professional managers or volunteers with engineering, construction, and accounting skills, proper qualifications are needed when conducting a reserve study. Enlisting the help of a professional with sufficient knowledge in building inspection, evaluation, and budgeting can benefit associations in the long run.
A qualified reserve specialist or an experienced engineer can conduct a reserve study. The reserve specialist (RS) title is designated by the Community Associations Institute (CAI) to an individual with specialized experience in reserve studies. A reserve specialist has an engineering, architecture, or construction management degree. They have also completed at least 30 reserve studies within two years and abide by the Professional Reserve Specialist Code of Ethics.
Meanwhile, a professional engineer (PE) is licensed and has completed a degree from an accredited engineering course. They can provide a more nuanced technical analysis of a building’s conditions, especially for older properties and condominium buildings. A PE may be a structural engineer with expertise in building inspection, condition assessment, and valuation estimates.
Hiring qualified professionals helps associations conduct reliable reserve studies that comply with regulations. Adhering to the newly ratified NJ S2760 demonstrates the association’s dedication to maintaining the structural integrity of its property.
Learn more about reserve studies and NJ S2760 with this infographic by Lockatong Engineering.