Sept 2023

The Need for S2760 — Structural Integrity and Reserve Funding By Ed San George, MPA, PCAM, INTEGRA Management Corp., AAMC

N ew Jersey Senate Bill S2760, concerning structural integrity and reserve funding for community associations sponsored by Senators Troy Singleton and Linda Greenstein and co-sponsored in the Assembly by Yvonne Lopez, is the most important piece of proposed legislation for the CAI-NJ Legislative Action Committee (NJ-LAC) this year. NJ-LAC initiated S2760 in concert with Senator Singleton. The legislation has cleared the Senate Urban and Community

Affairs Committee and the Budget Appropriations Committee. We expect a vote by the full Senate in the fall and are lobbying directly with many senators this summer. If passed, it will significantly and positively influence our industry. In one single piece of legislation, S2760 creates the opportunity to provide vital building structural safety inspections for residents in com mon interest communities (CICs) and defines the methods and needs to fund replacement reserves. S2760 creates the connection between structural inspections, preventive maintenance, corrective

“In one single piece of legislation, S2760 creates the opportunity to provide vital building structural safety inspections...and defines the methods and needs to fund replacement reserves."

maintenance, and reserve funding. From a cost perspective, these requirements will result in a reduction in life cycle costs as the cost of ongoing preventive maintenance is more than offset by the cost of corrective maintenance if preventive maintenance is not performed. For covered buildings to remain safe and avoid tragic building collapses affecting our industry, S2760 provides for timely and strategic inspections by qualified engi neers to create baseline building structural conditions and monitor those conditions with critically timed inspections over the life of the building. Expert eyes on a build ing’s structure will provide boards with an awareness of their building’s condition and allow for cost-effective financial planning to maintain the structure and conduct any needed corrective maintenance.

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