Quick Answer
New Jersey Assembly Bill 5306 (2026) is a proposal, not law. Introduced June 23, 2026, it would let associations of planned real estate developments choose a 35-year reserve funding plan instead of the 30-year plan now required, and would restart the five-year limit on the 85 percent funding option from the date a plan is adopted.
Current law remains P.L.2023, c.214 as amended by P.L.2025, c.132: a 30-year funding plan, and the 85 percent option available for no more than five fiscal years after August 21, 2025. We read only the introduced text and did not confirm any committee action.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | A5306, 222nd Legislature, introduced June 23, 2026; would amend P.L.2023, c.214 (N.J.S.A. 45:22A-44.2 and 45:22A-44.3) |
| Sponsors (introduced) | Assemblyman Donald A. Guardian and Assemblywoman Maureen Rowan; co-sponsors Assemblywoman Fantasia and Assemblyman Inganamort |
| Status | Did not become law as far as we found. Later action not confirmed |
| Proposed effective date | "This act shall take effect immediately" |
| Would apply to | Associations of planned real estate developments |
| Remedy or penalty | None stated |
What the Bill Would Do
35-year option
The bill adds "or 35-year" language throughout the reserve study and funding sections, so a study could include a 30-year or 35-year plan that lets the reserve fund reach a low balance of zero. A new subsection f says an association "may, on or before the 12th month next following the effective date," undertake and fund a new reserve study to adopt a 35-year plan. The bill statement says an association "without action ... may maintain its current 30-year funding plan."
85 percent option clock
Under current law, the 85 percent method cannot be used for more than five fiscal years after the effective date of P.L.2025, c.132. A5306 would change the start of that period to "the adoption of the 30-year, or 35-year, funding plan." The 20-point bold notice to owners and the seller's notice to buyers are unchanged in the text.
Department guidance
Section 3 would direct the Department of Community Affairs to publish updated guidance on compliance with the reserve provisions, under the Administrative Procedure Act.
Stated purpose
The statement says the intent is "to alleviate financial strain on associations while maintaining funding requirements," allowing lower annual assessment increases.
What This Means in Practice
Current law still controls
Boards must work with the 30-year plan and the existing five-fiscal-year window from August 21, 2025 unless and until a bill is enacted. Our reading: adopting a new study in anticipation of this bill would not be required by it, since the 35-year plan is optional.
Open questions
- Whether the bill has had hearings or amendments.
- Whether a new 35-year study would reset the five-year window for associations already using the 85 percent method.
- How a new study cost would be treated; the bill is silent on cost.
Timeline
| Date | Event |
|---|---|
| August 21, 2025 | P.L.2025, c.132 approved (current 85 percent option) |
| June 23, 2026 | A5306 introduced |
| Not confirmed | Committee referral or action |
Related New Jersey Law
- P.L.2025, c.132: reserve funding amendments
- P.L.2023, c.214: structural integrity and reserve law
- S146 and A318 (pending): narrowing covered buildings
Board Checklist
- Plan under current law, not this proposal.
- Ask your reserve specialist what a 35-year plan would change in annual contributions.
- Note the date your five-fiscal-year 85 percent window ends under current law.
- Track the bill on the Legislature's website.
- Keep the owner notice and seller notice process ready if you use the 85 percent option.
- Budget for a possible new study only after the bill is enacted.
Frequently Asked Questions
Is A5306 law?
No. We read it as introduced on June 23, 2026 and found no evidence of enactment.
What would a 35-year plan change?
It would let an association elect a longer funding horizon that still reaches a zero low balance, which may mean lower annual increases (the bill's stated aim).
Is the 30-year plan still required?
Yes under current law. The bill would make the 35-year plan optional.
Does the bill remove the 85 percent option?
No. It would change when the five-fiscal-year limit starts.
Would the bill take effect immediately?
As introduced, yes, upon enactment.
Where does DCA come in?
The bill would require the Department of Community Affairs to publish updated guidance.
Where This Comes From
We read the introduced text and statement of A5306, plus P.L.2025, c.132, on the New Jersey Legislature's bill site: A5306 as introduced. We did not confirm committee referral or action.
How APM Helps
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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.
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