Modifies capital reserve funding requirements for certain planned real estate developments.

Homeowner associations gain reserve funding flexibility

Beginning August 21, 2025, New Jersey development associations subject to reserve-study requirements can use 30-year plans that reach $0, but never fall below $0. Studies can also include plans with higher minimum balances or contributions that rise over time. Associations that existed when P.L.2023, c.214 took effect can fund a plan from their latest study at 85% instead of fully funding it. This option lasts no more than five fiscal years following August 21, 2025. Before adopting a reduced-funding budget, boards must notify owners in 20-point bold type and state the expected year and amount of any resulting special assessment or loan. Sellers must give buyers the latest notice before a purchase contract is signed. These options may lower near-term reserve contributions, but owners may face later special assessments or borrowing costs.