November 2022

REPERCUSSIONS... from page 15.

are planning comprehensive structural inspections to be able to respond to the Addendum. A few commissioned inspec tions in late 2021 have already implemented programs of repairs. The domino effect of inspections will be on reserve funding. Even if it will require no structural repairs, a reserve study should include funding for future reserve studies and future structural inspections. While it is unclear what will be in any NJ regulation, recommendations are typically reserve studies every five years and structural inspections every ten years after a building is twenty years old. The Addendum requests the applicant to know well beyond the technical skills of most property managers. Accordingly, they recommend associations retain the services of licensed professional engineers or architect skilled in structural investi gations. To follow the structural inspection, it is important that reserve funding be evaluated to conclude the account can provide for any recommended repairs. New Jersey associations are well advised to pay close attention to the progress of Senate Bill S2760 as it makes its way through the legislature and plan inspections and funding accordingly. In addition, you can depend on Community Trends ® to keep you informed. n

Then in December 2021, the “Condominium Project Questionnaire Addendum” was issued. It asked specific questions about building structural inspections, repairs rec ommended and completed, and violations of codes related to safety, structural integrity or habitability. Further, there were questions about reserve funding, account balances, and funding for deferred maintenance. While the form is a Fannie document, it is intended to be used by the primary lender originating the loan. Since Fannie Mae uses the information of the form to qualify the loan for purchase in the secondary market, it is very much in the primary lender’s interest that all the data conforms to expectations of sound financial and property management. Typically, the form is completed by the condo association/homeowner associa tion or their property manager. Overnight, associations and property managers were asked to provide information on the building’s structural integ rity and the association’s ability to fund deferred maintenance. In response, we see a new level of activity. Some associations

We’re excited to custom build an Insurance Solution that’s just right for you. Our experts from across industries and especially our Residential and Commercial Habitational experts can help you meet your needs. Together, we can put your worries to rest. We’re excited to custom build an Insurance Solution that’s just right for you. Our experts from across i d stries and especially our Residential and Co mercial Habitational experts can help you meet your needs. Together, we can put your worries to rest. www.HOAInsuranceNJ.com

www.HOAInsuranceNJ.com

Protect Y our self with the R ight I nsurance P rogram and S ervices at the R ight P rice. • Homeowners Insurance • Auto Insurance • Business Insurance • Commercial Real Estate Protect Y our self with the R ight I nsurance P rogram and S ervices at the R ight P rice. • Homeowners In urance • Auto Insurance • Busin ss Insu nce • Commercial Real Estate

Responsive Claims Department • • Risk Management Services Responsive Claims Department • • Risk Management Services

908-382-6625 NJ | Info@ InsurePeopleFirst.com. com | 484-546-7770 PA 908-382-6625 NJ | Info@ InsurePeopleFirst.com. com | 484-546-7770 PA Local offices in Pennsylvania and New Jersey

Local offices in Pennsylvania and New Jersey

PeopleFist, through Acrsure National Network, is a leading insurance broker and consultant that provides employee benefits, property & casualty, retirement and individual private client solutions through our licensed subsidiaries and affiliates. Our expertise is matched only by our personal commitment to each client’s goals. PeopleFist, through Acrsure National Network, is a leading insurance broker and consultant that provides employee benefits, property & casualty, retirement and individual private client solutions through our licensed subsidiaries and affiliates. Our expertise is matched only by our personal commitment to each client’s goals.

16

N O V E M B E R 2 0 2 2