By Homeowners’ associations (HOAs) and cooperatives are responsible for managing the maintenance and restoration of their property. However, the lack of reserve funding and the occurrence of administrative challenges often hinder their capability to address structural issues. This is unfavorable because it can lead to costly reconstructions and potential hazards.
Properties need long-term financial planning to maintain structural integrity and value. This is why conducting a NJ reserve study matters. A reserve study seeks to examine a property’s physical condition and provide sufficient reserve funds for real estate maintenance.
In fact, the newly ratified NJ Law S2760 mandates cooperatives and HOAs to conduct a reserve study every five years. Failing to do so can void their Certificate of Occupancy, which could lead to fines and revocation of entitlements and protection.
To remain compliant, associations must hire experts specializing in building inspection and reserve budgeting. Professional engineers (PE) and reserve specialists (RS) are both qualified to conduct the assessment, each having distinct roles that can meet a property’s specific needs.
A state-licensed professional engineer focuses on in-depth technical assessment of the property’s physical components and condition, such as roofs, HVAC, mechanical systems, and sites. One example of a PE is a NJ structural engineer, who is an expert in building inspection and evaluation. Apart from examining assets and identifying building deficiencies, PEs can make strategic recommendations to address needed repairs.
On the other hand, a credentialed reserve specialist (RS) is certified by the Community Associations Institute (CAI). Their roles usually focus on financial management, wherein they evaluate the budgetary needs of a property for repairs and restorations. Unlike PE, which examines an asset’s structural component, RS excels at estimating and assessing the reserve funds for future replacements of such infrastructure.
Both professional engineers and reserve specialists have something to offer in keeping an asset well-maintained. With the help of professional engineers, a property can be assessed entirely to prevent potential conflicts. Reserve specialists, on the other hand, can provide proactive financial planning to guarantee enough funding for future maintenance.
Check out this infographic from Lockatong Engineering to learn more about the differences between professional engineers and reserve specialists.
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