CharlesL6 (New Jersey)
Posts: 2
Posts: 2
Posted:
I am looking for how other boards in NJ for small associations(we are 12 units) are handling the management of the reserve accounts required by this new NJ law. We currently have one officer who is primary signer and feel this should be not controlled by one person. I drafted these requirements but have only received very costly bids (~$400/month).
We traditionally kept just enough reserves to start work and would coordinate an assessment when a major project came up. Our thinking was why put money into an account where the owner wouldnever see it again if they were to sell?
The new law negates our philospohy so here is what I was hoping to do so there could be no one person in control of the money:
Overview
The Hawaii Kai Condominium Association is seeking proposals from qualified financial institutions or professional service providers to manage our condominium association’s reserve fund. The selected provider will ensure secure, transparent, and compliant management of funds in accordance with our association’s governance policies and New Jersey state law.
Scope of Services and Requirements
Proposals should address the following mandatory requirements:
Interest-Bearing Account
Funds must be held in an interest-bearing account insured by the FDIC or NCUA.
Liquidity
The account must provide liquidity, allowing timely access to funds for qualified expenditures.
Transparency & Visibility
Real-time or periodic (monthly/quarterly) online visibility must be available to all twelve unit owners, with secure and individual access.
Multi-Party Deposits
Capability for each of the twelve unit owners to contribute their share of reserve funding monthly, quarterly, or annually, through various payment methods (ACH, check, bank transfer).
Disbursement Controls
Disbursements from the reserve fund:
Must be reviewed and processed only by the service provider.
Must be restricted to items identified in a qualified reserve study.
Must require and verify majority approval (at least 7 of 12 owners).
Restricted Authority
No individual officer, property manager, or third party may initiate or approve disbursements independently.
Contract Termination and Transition
Association officers, with documented majority unit owner approval, must be able to terminate the service contract and assume control of funds without penalty.
Proposal Requirements
Interested providers must submit the following:
Company background and experience with condominium/HOA financial services.
Description of how your platform meets each requirement listed.
Fee structure and any service charges.
Data security protocols and access control procedures.
Example reports or dashboards demonstrating account visibility.
References from current or former HOA/condo clients, preferably in New Jersey.
We traditionally kept just enough reserves to start work and would coordinate an assessment when a major project came up. Our thinking was why put money into an account where the owner wouldnever see it again if they were to sell?
The new law negates our philospohy so here is what I was hoping to do so there could be no one person in control of the money:
Overview
The Hawaii Kai Condominium Association is seeking proposals from qualified financial institutions or professional service providers to manage our condominium association’s reserve fund. The selected provider will ensure secure, transparent, and compliant management of funds in accordance with our association’s governance policies and New Jersey state law.
Scope of Services and Requirements
Proposals should address the following mandatory requirements:
Interest-Bearing Account
Funds must be held in an interest-bearing account insured by the FDIC or NCUA.
Liquidity
The account must provide liquidity, allowing timely access to funds for qualified expenditures.
Transparency & Visibility
Real-time or periodic (monthly/quarterly) online visibility must be available to all twelve unit owners, with secure and individual access.
Multi-Party Deposits
Capability for each of the twelve unit owners to contribute their share of reserve funding monthly, quarterly, or annually, through various payment methods (ACH, check, bank transfer).
Disbursement Controls
Disbursements from the reserve fund:
Must be reviewed and processed only by the service provider.
Must be restricted to items identified in a qualified reserve study.
Must require and verify majority approval (at least 7 of 12 owners).
Restricted Authority
No individual officer, property manager, or third party may initiate or approve disbursements independently.
Contract Termination and Transition
Association officers, with documented majority unit owner approval, must be able to terminate the service contract and assume control of funds without penalty.
Proposal Requirements
Interested providers must submit the following:
Company background and experience with condominium/HOA financial services.
Description of how your platform meets each requirement listed.
Fee structure and any service charges.
Data security protocols and access control procedures.
Example reports or dashboards demonstrating account visibility.
References from current or former HOA/condo clients, preferably in New Jersey.