New Jersey DCA Structural Integrity and Capital Reserve FAQ: What the Guidance Says

Quick Answer

DCA's Division of Codes and Standards published a six-question FAQ on New Jersey's Structural Integrity Law (P.L.2023, c.214, called Senate Bill 2760 in the document). Its main points: structural inspections apply to "covered buildings" regardless of height, the capital reserve study duty applies to all associations of planned real estate developments (not just covered buildings), board members cannot prepare the study themselves, and DCA does not oversee owner-controlled associations' reserve compliance. The FAQ is guidance, not a rule, and it is undated.

At a Glance

What the Law Says

The FAQ is built around six questions. Each answer below is DCA's position as written in the document.

1. Who must get a structural inspection?

If an association building is a "covered building" under N.J.S.A. 52:27D-132.3, the association "is required to obtain a structural inspection and report." The cost is a common expense shared by all unit owners. The FAQ quotes the definition: a residential condominium or cooperative building with a primary load bearing system of "concrete, masonry, steel, or hybrid structure including, without limitation, heavy timber and a building with podium decks, but not including an excluded structure." DCA states that height "has no bearing" on whether a building is covered.

2. If we are not a covered building, are we exempt from the reserve study?

No. DCA says the reserve study requirements "apply to all PRED associations and not just those associations that are covered buildings." The cost of the study and the funding of the reserve account are common expenses shared by all unit owners.

3. What are "common area capital assets" for the $25,000 exemption?

N.J.S.A. 45:22A-44.2(d) exempts an association with "less than $25,000 in total common area capital assets." DCA notes the term "is not defined in the law" and offers its own description: significant, long-lasting shared property items such as building exteriors, hallways, pools, parking areas and landscaping, including exclusive use common areas like balconies and parking spaces.

4. Can board members prepare the study?

DCA answers "No," citing the statute's requirement that the study be performed or overseen by a credentialed reserve specialist or a State-licensed engineer or architect, and prepared under national reserve study standards.

5. How much must the association hold in reserves?

DCA says the board, with the specialist, engineer or architect, makes "a business judgment decision as to the capital reserve funding plan that is most appropriate for the association." The FAQ reproduces N.J.S.A. 45:22A-44.3, marking subsections (b), (c) and (d) as deleted by P.L.2025, c.132. What remains includes the 30-year funding plan requirement, and for existing associations the choice between a study funding plan and 85 percent of one, with a 20-point bold notice to owners and disclosure to buyers, limited to five fiscal years.

6. Does DCA review our reserve accounts?

DCA writes that it "does not oversee owner-controlled associations" on compliance with these sections. A board's decision not to comply "could expose the association as well as the individual association board members to civil liability to all unit owners." Owners who disagree "will need to institute civil litigation." DCA says it has "no statutory jurisdiction over the business judgment decisions of association boards relative to the spending of association funds or the issuance of assessments."

What This Means in Practice

For boards

The two duties are separate. Our reading of the FAQ: a community that is not a covered building can still need a reserve study. Budget for both the study and the funding plan as common expenses. DCA treats the choice of funding plan as a board judgment call, and the study as work a professional performs or oversees.

For owners

Because DCA says it does not oversee owner-controlled associations on these points, an owner's practical routes are the governing documents, a petition to the board and, if needed, a civil lawsuit, in DCA's words. This page does not say which route is right for a given dispute.

What is and is not in the FAQ (our reading)

• The six answers do not give inspection deadlines. Those come from the statute; see the inspection page.
• The FAQ's reproduction of N.J.S.A. 45:22A-44.2(c) still reads "A covered building owner... shall ensure" the study is reviewed and conducted at least every five years. The text of P.L.2025, c.132 changed that subsection to "An association of a planned real estate development shall ensure..." so the FAQ's copy of subsection (c) appears not to be fully updated. Read the statute text itself.
• The FAQ's reproduction of 44.2(a)(7) also predates c.132's wording ("plan or plans"). Same advice.
• The $25,000 exemption turns on an undefined term. DCA's description is guidance, not a rule.
• Open question: DCA's reading that board members cannot prepare the study is its interpretation of the statute's "performed or overseen by" wording. A board member who is a licensed engineer or architect is not addressed in the text we read.

Timeline

Related New Jersey Law

• P.L.2023, c.214: structural integrity and reserve law
• P.L.2025, c.132: reserve funding amendments
• N.J.S.A. 45:22A-44.2: capital reserve study
• N.J.S.A. 45:22A-44.3: reserve funding and the 85 percent option
• N.J.S.A. 52:27D-132.4: covered building inspections
• New Jersey HOA laws and regulations

Board Checklist

• Decide with counsel whether any of your buildings is a covered building.
• Check whether your total common area capital assets reach $25,000 before assuming an exemption.
• Hire a credentialed reserve specialist or a licensed engineer or architect to perform or oversee the study.
• Ask the preparer to present a 30-year funding plan.
• If you choose the 85 percent option, prepare the 20-point bold notice and sale-time disclosure.
• Record the board's funding decision and reasoning in minutes.
• Compare the FAQ against the current statute text, not the other way around.

Frequently Asked Questions

Is the DCA structural integrity FAQ legally binding?

No. It is agency guidance explaining DCA's reading of the statutes. The statutes control.

Does building height decide whether a New Jersey condo needs a structural inspection?

According to DCA, no. Height and number of floors do not factor into the covered building definition.

If my building is not a covered building, do I skip the reserve study?

No. DCA says the reserve study duty applies to all planned real estate development associations, subject to the $25,000 exemption.

What counts as a common area capital asset?

The statute does not define it. DCA describes it as significant, long-lasting shared property such as exteriors, hallways, pools, parking and landscaping.

Can the board write its own reserve study?

DCA says no. The statute requires the study to be performed or overseen by a credentialed reserve specialist or a State-licensed engineer or architect.

Will DCA check my reserve balance?

DCA says it does not oversee owner-controlled associations on compliance with the reserve statutes and that disputes would be resolved through civil litigation.

Who pays for the inspection and the study?

DCA says both are common expenses shared by all unit owners.

Where This Comes From

We read DCA's FAQ at nj.gov, which includes its quoted statute text, and the enrolled text of P.L.2025, c.132 on the Legislature's session law page, to check which provisions it amended. We did not read the attachments the FAQ refers to, and the document carries no date.

How APM Helps

Association Property Managers provides remote HOA and condo management for associations in New Jersey, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in New Jersey, browse every New Jersey state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for New Jersey when we build your proposal.

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.