In 2021, the Champlain Towers South, a 12-floor condominium in Florida, collapsed, leading to massive casualties. This structural failure has become an eye-opener for the importance of building maintenance and evaluation in preventing structural risks and life-threatening incidents. One of the measures that can address these concerns is a New Jersey reserve study.
Now a requirement in the newly ratified NJ Law S2760, a reserve study is mandatory for cooperatives and homeowners’ associations (HOAs) every five years. It is a form of assessment that provides a detailed financial plan to fund potential repair and restoration projects.
A reserve study aims to set a sufficient reserve fund to maintain real estate, be it condominiums or related properties. It involves an in-depth analysis of a physical infrastructure to determine and anticipate its repair needs. Once assessed, a budget tool plan that includes the major expenditures needed for the project will be provided for HOAs and cooperatives.
However, a reserve study in NJ needs qualified experts. It can be a professional engineer who specializes in building inspection or a reserve specialist who focuses on reserve budgeting. While these professionals are both qualified, each has distinct qualities and expertise.
A professional engineer focuses on extensive technical evaluation of a building’s condition. They inspect its physical components, such as HVAC systems, sites, roofs, and other complex systems like elevators. Upon examining an establishment, they issue a detailed narrative report containing its description, current condition, and repair recommendations.
For example, if a condominium building has visible cracks in the walls, a professional engineer will examine the property’s foundation issues to detect hidden defects. The engineer will then recommend the proper strategies and solutions to repair and address the structural damage.
Meanwhile, a reserve specialist’s approach is more financially driven. Reserve specialists specialize in evaluating and planning reserve funding for property repairs and replacements. They are more skilled in creating long-term budgetary plans that help associations efficiently utilize their reserve funds. A reserve specialist’s approach is to establish balanced financial consideration when providing for infrastructure needs.
Hiring a professional engineer or reserve specialist helps achieve high-quality reserve studies. A professional engineer can maintain a property’s structural integrity, and a reserve specialist can take charge of the financial management of capital maintenance. Associations should choose the qualified professional based on the situation and the needs of the community and its properties.
Read more about the distinct qualities of professional engineers and reserve specialists by reading this infographic from Lockatong Engineering.
