State profile
New Jersey
Since January 2024, every New Jersey planned real estate development association — condo, co-op, or HOA, with or without high-rise buildings — must obtain a capital reserve study with a 30-year funding plan at least every five years, prepared by a credentialed reserve specialist or a licensed engineer or architect. Boards must fund a plan from the study, or elect to fund 85% of one with a conspicuous notice to owners — an option the 2025 amendment allows only for five fiscal years after August 21, 2025. Buildings with concrete, masonry, steel, or hybrid load-bearing structures also owe periodic structural inspections. Only associations with less than $25,000 in common-area capital assets are exempt.
Update every
5 yrs
Site visit
Every 5 yrs
Applies to
Condos, co-ops & HOAs with ≥ $25k common assets
What your board must do
01Obtain a capital reserve study prepared to CAI National Reserve Study Standards, performed or overseen by a CAI-credentialed reserve specialist or a New Jersey-licensed engineer or architect (N.J.S.A. 45:22A-44.2(a)) — the board cannot prepare its own.
02Conduct and review the study at least once every five years (N.J.S.A. 45:22A-44.2(c)). Associations without a recent study owed one by January 8, 2025; newly formed associations owe one within two years of owner control of the board.
03Include a 30-year funding plan whose reserve balance never falls below zero dollars — since the 2025 amendment, a baseline plan whose lowest balance reaches exactly zero qualifies (N.J.S.A. 45:22A-44.2(a)(7); "adequate" defined at 52:27D-132.3).
04Fund reserves per a plan in the most recent study, or elect to fund 85% of a plan — the election requires a 20-point bold-font notice to all owners naming the anticipated special assessment or loan, plus resale disclosure to buyers, and is available only for the five fiscal years following August 21, 2025 (N.J.S.A. 45:22A-44.3(e)).
05If the association has a covered building (concrete, masonry, steel, or hybrid load-bearing structure, or podium decks), complete structural inspections by a licensed engineer — initially within 15 years of the certificate of occupancy or 60 days of observable damage, with buildings already 15+ years old due by January 8, 2026, then on the inspector's schedule of no more than 10 years (N.J.S.A. 52:27D-132.4).
Quick answers
- Does New Jersey require a reserve study?
- Reserve study required. Yes. Since January 2024, every New Jersey planned real estate development association — condo, co-op, or HOA, with or without high-rise buildings — must obtain a capital reserve study with a 30-year funding plan at least every five years, prepared by a credentialed reserve specialist or a licensed engineer or architect. Boards must fund a plan from the study, or elect to fund 85% of one with a conspicuous notice to owners — an option the 2025 amendment allows only for five fiscal years after August 21, 2025. Buildings with concrete, masonry, steel, or hybrid load-bearing structures also owe periodic structural inspections. Only associations with less than $25,000 in common-area capital assets are exempt.
- How often must a New Jersey reserve study be updated?
- Update interval: 5 yrs. Site visit: Every 5 yrs.
- What must a New Jersey association disclose about reserves?
- 30-yr funding plan (+ 85% election notice). Applies to: Condos, co-ops & HOAs with ≥ $25k common assets.
Statutes
Last statutory change Aug 2025 · Page reviewed Sep 2026 · Not legal advice