Introduced and signed into law in 2024, New Jersey Senate Bill S2760 and Assembly Bill A4384 established statewide reserve study and funding requirements for condominium associations, cooperatives, and planned real estate developments.
On February 26th, WCCA will have it's first assessment of the neighborhood, which will help determine how much we should be contributing to our Reserve Account to help fund future community repairs.
What this means for WCCA:
We must have a reserve study conducted every five (5) years. Reserve studies assess the conditions of the community and help plan and budget the funds needed for future repairs.
WCCA is legally required to adequately fund our reserve account. Deficiency in funds would require significant contribution increases and set a limited time to attain adequate funds through the use of proportionate annual increases.
Currently, WCCA contributes monthly to our Reserve Funds based on an existing Reserve Study. However, with this new law, we will need to have an assessment completed to determine if we are still contributing enough to these funds.
What this means for residents:
You may see a licensed Reserve Specialist, Engineer, or Architect walking around the neighborhood starting February 26th. The assessment is only of Common Elements in the community so they will not be assessing your home. However, because patios and balconies are considered Common Elements, they may require access to your patios and balconies to complete their assessment.
Our older reserve projections may not prove sufficient enough to be in compliance. As always, WCCA will assess our budget and make cuts before looking into raising monthly dues, but there is a possibility that the findings of this new Reserve Study may result in an increase.
We appreciate your patience and understanding as we navigate these new requirements.
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