Reserve Fund Studies
What is a Reserve Fund?
A Reserve Fund is any fund set aside for a specific purpose. For this purpose it would be used for the repair and replacement of building elements and facilities.
What is a Reserve Fund Study?
An independent study done to determine how much money should be kept in the Reserve Fund, so that the Reserve Fund is sustainable and adequate for its stated purpose.
What about Condominium Properties?
The Ontario Condominium Act mandates that: Each Condominium must have one or more Reserve Funds to provide for future major repairs and replacements of Common Elements. Each Condominium must have performed an independent Reserve Fund at its inception, and must update or replace it every three years. Condominium Reserve Fund Studies must project Costs and Contributions over a 30-year period. The Common Elements are those parts of the Condominium held in common, which are not part of any unit. The Condominium Declaration sets out what belongs to the units, and what are Common Elements. We create a schedule of Common Elements, as an integral part of the Study.
What about Non-Condominium Properties?
Non-Condominium Properties also have a need for longer-term planning, but are not subject to the Condominium Act. They may wish to create or review a Reserve Fund. Each property may designate what elements it wishes to include in a Reserve Fund Study. In one study of a senior's complex, unit interiors were included, and we included a schedule of interior renovations. Each property may designate the time period to be covered, and any other relevant parameters.
What additional, related services do we provide?
Operating Cost Analysis Condominium Owners are more interested in the level and trend of future Condominium Fees. We can review past Operating Expenses, to determine longer-term trends. We incorporate those trends into future projections as an identifiable and discrete element in the projection table, to project future Condominium Fees. Non-Condominium Property Owners may also benefit from this approach.
Valuation for Insurance Purposes Where co-insurance is a feature of the insurance policy, the Corporation is usually responsible to ensure that their coverage is adequate. This requires periodic independent valuations. We can conduct an appropriate valuation in conjunction with the Reserve Fund Study, with significant efficiencies, and savings to the Corporation. Alternatively, we are pleased to offer insurance valuation services without RFS, for all types of condominium corporations.