The tragic incident of the Champlain Towers South condominium collapse in 2021 has served as a reminder of the need for property assessment to prevent structural risks and accidents. In New Jersey, cooperatives and homeowners associations (HOAs) are now mandated by NJ Law S2760 to conduct a reserve study NJ every five years to assess the condition of residential multi-family and cooperative buildings.
A reserve study’s goal is to identify a property’s repair needs and allocate proper funding to maintain structural integrity. Failure to follow this regulation can result in the loss of a building’s Certificate of Occupancy.
When conducting a reserve study, associations must choose between hiring a professional engineer and a reserve specialist. Both experts are qualified, yet they take distinct approaches to conducting building assessments and meeting a property’s needs.
A state-licensed professional engineer (PE) is someone who has completed an engineering program, has four years of work experience under a licensed PE, and has passed the PE examination requirements. They focus on the technical aspects of a property’s structural and mechanical components, providing a comprehensive analysis of its current condition.
One example of a PE is a NJ structural engineer with expertise in building inspection. In addition to identifying structural issues and assessing physical components, PEs can also provide recommendations and solutions based on engineering principles.
On the other hand, a credentialed reserve specialist (RS) is more financially driven. As certified by the Community Associations Institute (CAI), they assist the associations in planning and managing their reserve funds for major asset repairs and replacements. They are competent in financial modeling, making them invaluable in establishing the schedule of funds for the planned improvements.
Both PE and RS are qualified to conduct a reserve study, but the choice between these two experts often depends on a property’s distinct needs. A PE is ideal when an in-depth building assessment is needed. For instance, when a building encounters an issue with its HVAC system, a PE is more likely to inspect its current efficiency and provide detailed recommendations for the needed repairs.
Meanwhile, RS is hired when financial planning is needed. Their role includes estimating the cost and timing of replacements. Further, RS has specialized knowledge in assessing whether there is enough reserve funding for future repairs.
Both professional engineers and reserve specialists have distinct qualities to offer in maintaining a property while complying with New Jersey’s legal requirements. Their skills and expertise allow them to provide the best service possible in conducting reserve studies that can benefit the HOAs and cooperatives in the future.
To learn more about the qualities and roles of professional engineers and reserve specialists, check out this infographic from Lockatong Engineering.
