Two duties, two different groups
| Kind of community | Reserve study | Structural inspection |
|---|---|---|
| Mid-rise or high-rise condo, concrete or steel | Yes | Yes |
| Co-op building, masonry or concrete | Yes | Yes |
| Wood-frame condo or garden apartments | Yes | Usually not, unless it sits on a podium deck |
| Townhouse or single-family HOA | Yes | No |
| Association with under $25,000 in common capital assets | No | Depends on the building |
| Rental apartment building, not a condo or co-op | No | No |
What counts as a planned real estate development?
The reserve rules sit in the Planned Real Estate Development Full Disclosure Act, which covers developments with common or shared elements run by an association: condominiums, cooperatives, and homeowners associations in townhouse and single-family communities. If your owners pay common charges toward shared property, you are very likely in.
The $25,000 exemption
An association with less than $25,000 in total common area capital assets does not need a study. The statute does not define that figure, and the Department of Community Affairs only gives examples of the assets it means: hallways, roofs, pools, parking areas. Replacement value of a single private road or a shared roof will pass the line quickly, so few associations can rely on it. If yours might, write down how the board reached its number.
Which buildings need a structural inspection?
A "covered building" is a residential condominium or cooperative building whose primary load-bearing system is concrete, masonry, steel or a hybrid, which can include heavy timber and podium construction. Height does not matter. Four kinds of structure are excluded: typical frame buildings with combustible walls or roofs (though not a podium deck carrying one), buildings whose ancillary elements such as elevator shafts are not part of the load-bearing system, buildings that are mainly rental rather than condo or co-op, and single-family homes. How the inspection schedule works.
New associations and conversions
A new association commissions its first study once owners elect the board, no later than two years after. A building converted to condo or co-op ownership after January 8, 2024 follows the inspection timing for existing buildings, handled during its registration with the state.
Sources: P.L.2023, c.214, P.L.2025, c.132 and the DCA FAQ, read November 6, 2026. Not legal advice.