Dear New Jersey Condominium and Co-Op Owners,

On January 8, 2024, Governor Murphy signed S2760/A4384 (“NJ Law”) which will most likely have a significant impact and increase to your current homeowners’ association (“HOA”) fees and has a high probability of your association levying significant assessments to your property. Following the letter of the NJ Law, New Jersey condominium and co-op owners will eventually parallel what is currently happening in the Florida condominium and co-op markets where HOA fees and property assessments are causing great hardship to the owners because a similar law was passed.

We agree with the spirit of the NJ Law where safety and structural items should be addressed to ensure a safe environment of all residents, their families, friends and guests. We do not agree with the timing and methodology of implementation of the NJ Law. This law requires all condominiums and co-ops to conduct a capital reserve study to determine how much funds are required to be available by each association.  The NJ Law requires associations to use independent engineering firms and allows that firm to dictate the need for replacement of items, cost to replace in kind, and timing for implementation. In many cases, the items identified have nothing to do with safety or structural integrity of the property. Also, the estimates are based on life expectancy and do not allow for decisions to replace based on current condition or with items or materials that maybe as good but less expensive. As a result, the monies and time frame that are estimated to be in capital reserve fund for the association can be exorbitant and unreasonable.  Worst of all, this may cause our property values to decline because home owners may not be able to afford the assessments and therefore the homeowners may sell their condominiums and co-ops at lower prices.

This petition is a request to legislators in New Jersey to revamp the NJ Law to make it more reasonable for homeowners like us. A petition to change the definition of requirements, the process to comply, and the timing of implementation while keeping the initial intent of safety for all residents, will help every condominium and co-op owner meet the requirements of the law.

If you are a condominium or co-op owner, please sign our petition to show your support to revamp the current law. It is imperative that if you own your unit with someone, that each of you individually sign this petition. Please forward this petition to any condominium or co-op owner that you may know that will be affected by this law.