Web Definition: A financial document that identifies the projected costs associated with the repair or replacement of major building components and/or studies to determine whether the amount of money in the fund and the amount of contributions collected, to date, are adequate.
As per the Condominium Act of Ontario, 1998:
The corporation shall establish and maintain one or more reserve funds. 1998, c. 19, s. 93 (1).
A reserve fund study shall be conducted by a person of a prescribed class who shall have no affiliation with the board or with the corporation that is contrary to the regulations made under this Act. 1998, c. 19, s. 94 (6). Source: http://www.e-laws.gov.on.ca
Condominium Corporations have one year from the date the condominium was registered to perform a Reserve Fund Study. The studies have to be updated every three years.
Professionals Accredited to Perform Reserve Fund Studies, under the Act:
- Members of the Appraisal Institute of Canada
- Persons who hold a certificate of practice within the meaning of the Architects Act
- Certified Engineering Technologists
- Architectural Technologists
- Holders of a CRP designation
- Persons who hold a certificate of authorization within the meaning of the Professional Engineers Act
- Quantity Surveyors
There are 3 levels of Reserve Fund Studies
Class I: Comprehensive Reserve Fund Study
- Requires a Site visit
- An in depth inventory of common area element items such as HVAC, boilers, envelope and cladding, roofing, windows, corridors, parking and any amenities.
This level of study establishes a benchmark and future studies and condition assessments of systems are measured from it.
Class II: Update with Site Visit
- A review of all common element systems is performed and life cycle costing adjusted. Usually the review is a visual condition assessment only. Histories of issues as noted by interviewing site staff are calculated into the final study.
Class III: Update with out site Visit
- An update of the comprehensive reserve fund study and is primarily a financial update of the annual reserve fund contributions and reserve fund expenditures that have been made to date.
Need a Reserve Fund Study? Contact one of the Professionals listed above or
Rascom GreenBuild Services will:
- Provide 2 professional engineers to perform the site visit; structural and electrical/mechanical
- Include all travel costs and disbursements in our fee proposal
- Provide a draft copy for review by the Board of Directors
- Attend one Board Meeting at no additional charge
- Will prepare a Form 15 at no additional charge