Reserve Fund Study

A Reserve Fund is required for Condominiums as per Section 94 of the Condominium Act, 1998 to identify reserve fund requirements and the amount of contributions to be collected to adequately fund expected costs of major repair and replacement of the common elements and assets when needed and does not include maintenance or regular repairs due to wear and tear.

The Study includes common elements such as building envelope, HVAC, elevator, fire alarm, electrical, common interiors, parking garage and needs to be conducted periodically as specified in the Act which in general terms is every 3 years. As per O. Reg 48/01, Reserve Fund Study consists of a Physical Analysis and a Financial Analysis with a 30-year budget plan and has the following 3 classes:

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RFS – Comprehensive Study:  A comprehensive reserve funds study is the one that meets the requirements of this Regulation and is generally done as an initial study and subsequently as needed as includes visual site inspection of the property, verification of records, and interviews of directors, officers, employees, and agents as necessary. 

RFS – Updated study not based on-site inspection is performed if the immediately preceding reserve funds study was a comprehensive study or an updated study based on-site inspection and is based on a verification of records of the corporation and interviews with directors, officers, employees, and agents.

RFS – An updated study based on-site inspection is performed if the immediately preceding reserve fund study for the corporation was an updated study not based on-site inspection and in general terms is a comprehensive study that has been revised so that it is current as of the date of the revision, where the revision is based on a site inspection of the property.

We help Condominiums with accurate forecasts and Reserve Fund Study to meet the requirements of the Act as well as ensure the smooth asset management process and maintainability of the property. We also help you with several optional strategies to meet the forecasted fund requirements and to select the best options to fund the reserve.

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