Directs condominium and cooperative housing associations to complete capital reserve studies

◆ The sponsor's argument

Why Siela Bynoe says this is needed

On June 24th, 2021, Champlain Towers South, a 12-story condominium in Surfside, Florida experienced a partial collapse that resulted in the deaths of 98 residents, becoming the third-deadliest non-deliberate structural engineering failure in United States history. In the wake of this tragedy there is more awareness of the need for oversight of condo- minium and cooperative housing associations in order to ensure they are up to building, health, safety, and fire standards. As part of a wider condominium and cooperative housing regulation passed last year, New Jersey has likewise required these associations to complete a capital reserve study. This bill would require condominium and cooperative housing associations to complete capital reserve studies as to determine if associations will have the funding to complete necessary structural and mechanical repairs to the properties which they have authority over. Capital reserve studies are comprehensive planning tools for condominiums and cooper- ative housing associations which provide long-range planning that can help these associations anticipate and prepare for the repair and replacement of the community's common assets. These studies provide an analysis of the property's physical condition as well as a financial analysis of the association. By requiring capital reserve studies to be completed for any condominium or cooperative housing association, the State of New York would be ensuring that theses associations have plans prepared that would be able to guide the board of managers and unit owners to make informed deci- sions about any repairs, and give these associations the opportunity to better plan for necessary repairs and understand the costs and expecta- tions that may be placed on unit owners to maintain the property they own within any association.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.