RESERVE FUND STUDIES
We create sustainable financial models through developing capital budgets, and prioritizing repairs
- Ontario Condominium Act requires periodic updates to the Reserve Fund Study RFS to forecast future major repair or replacement of common elements to reduce the risk of unexpected repairs, and to ensure that proper funds will be available for those repairs when required
- A Reserve Fund Study determines how much money needs to be in the fund to ensure the repairs can be paid for in the future
- A reserve fund study is a report that assists condominium corporations in understanding what they own, how much money they have, the timing of potential replacements, future costs, and, ultimately, how to pay for the replacements when they are due
RESERVE FUND STUDIES
Reserve Fund Study Includes:
- A physical inventory of all common property (including building systems such as roof systems, exterior walls, pavement and landscaping, etc.)
- An analysis of the observed condition, actual and effective age, remaining economic life, and current and future replacement costs for each component of common property;
- A determination of the level of reserves required to meet anticipated future costs
- An analysis of the current balance of the reserve fund and how much the condominium corporation has been contributing historically
- Development of funding models to assist the strata in reaching its funding goals
Types of Reserve Fund Study:
- Class 1: Comprehensive Reserve Fund Study with Site Visit
- Class 2: Reserve Fund Study update with a Site Visit
- Class 3: Reserve Fund Study update without a Site Visit