Permits association of planned real estate development to file application with Department of Community Affairs to lower reserve fund obligations based on risk-mitigating features of development.

This bill (S 3406) would allow associations of planned real estate developments to apply to New Jersey's Department of Community Affairs (DCA) to reduce their required reserve funds. It permits reductions based on "risk-mitigating features" of the development, such as lacking high-rise or multifamily structures, which lower the likelihood of needing major capital repairs. The DCA would establish rules defining eligible features and the application process. This change would directly affect homeowners' associations in planned developments by potentially lowering their annual reserve fund contributions. The bill amends existing law (P.L.2023, c.214) but remains pending legislation, not yet enacted.