STATEMENT TO
SENATE, No. 3992
with Senate Floor Amendments
(Proposed by Senator SINGLETON)
ADOPTED: MARCH 24, 2025
These floor amendments:
(1) remove language specifying that, for cases in which a capital
asset reaches the end of its established useful life earlier than predicted
by the capital reserve study (reserve study), nothing is to prevent the
association of a planned real estate development from imposing a
special assessment or obtaining a loan;
(2) remove language requiring an association, when capital
reserve funds (reserve fund) are required to repair or replace a
component contained in the reserve study, to use only the amount of
reserve funds allocated by the reserve study to make the repair or
replacement specified, unless certain criteria are met;
(3) remove language requiring an association existing as of
January 8, 2024, the effective date of P.L.2023, c.214 (C.52:27D-
132.2 et al.), to make the association’s reserve fund adequate in certain
time periods, if the association’s reserve fund is not adequate and
would require certain increases in the association’s annual common
expense assessment;
(4) require an association existing as of January 8, 2024 to fund
the reserve fund either: in accordance with the most recent reserve
study and funding plan; or in an amount equal to 85 percent of one of
the association’s reserve funding plans;
(5) require that, if the association chooses to fund the reserve fund
in an amount equal to 85 percent of the association’s reserve funding
plan, the association is to provide certain notice to the unit owners and
provide the year in which a special assessment or loan is anticipated as
a result of the reduced funding of the reserve fund, and the amount of
the anticipated special assessment or loan;
(6) require the seller of a unit within an association that has
elected to fund the reserve fund at 85 percent to provide to the buyer a
copy of the most recent notice provided to the unit owners of the
association concerning the association’s decision to fund the reserve
fund at 85 percent;
(7) prohibit an association from funding the reserve fund at 85
percent for more than five fiscal years; and
(8) specify that an association created after January 8, 2024 is to
fund the association’s reserve fund in accordance with the capital
reserve funding plan set forth in the association’s most recent reserve
study.