The plan the statute asks for
Since P.L.2025, c.132, the required plan runs 30 years and allows the reserve fund to reach a lowest balance of zero, never less. Firms may add plans with a higher minimum balance, which cost more each year but leave a cushion against surprises. The board chooses which plan to fund.
The 85 percent option
An association that existed when the 2024 law began may instead contribute 85 percent of one of the study's plans. Three conditions come with it:
- Before adopting the budget, the board sends owners a notice in 20-point bold type saying it chose the 85 percent route, the year a special assessment or loan is expected, and the expected amount.
- A seller hands the buyer a copy of the most recent notice before a purchase contract is signed.
- The option cannot be used for more than five fiscal years after the amendment took effect.
What the original law said
The 2024 version told associations to close any gap with equal annual increases over as many as ten fiscal years, or two if the increase was under 10 percent of the prior year's assessments. The 2025 amendment deleted those rules, so older articles describing a ten-year phase-in no longer reflect the law. The DCA FAQ predates the change.
From N.J.S.A. 45:22A-44.3 as amended by P.L.2025, c.132, and P.L.2023, c.214, read November 6, 2026. Not legal advice; check with the association's attorney.