—Curious in Clifton
“The administrative code speaks to “adequate reserves” which is subjective. See, N.J.A.C.-5:26-8.7. A reserve specialist, usually an engineer, is qualified to make this assessment.
“At the start of the community, the Public Offering Statement will include a first year budget with a reserve schedule. Subsequently, every three (3) to five (5) years or so, an updated reserve study should be done.
“The Board of Trustees is typically empowered to change or modify the percentage. Worst case scenario, a homeowner vote can be done to change or amend the same.”