Reserve Fund Studies

A Reserve Fund Study is a financial document that provides the basis for the funding of major repairs and replacement of the common elements and assets of the corporation.

Condominium corporations in Ontario are legally required to set up and maintain at least one reserve fund. Minimum legal requirements are set out in Sections 93, 94, and 95 of Ontario's Condominium Act, 1998(5a), and clauses 27 to 33 of its Regulation 48/01.

First Condo's Functional Reserve Fund Study exceeds legal requirements and provides condominiums with an effective and realistic plan for managing reserve funds.

First Condo's Functional Reserve Fund Study has been adopted as the standard for the Real Estate Institute of Canada's professional designation of Certified Reserve Planner and is widely recognized as the most advanced reserve fund planning system in Canada.

Our Report

First Condo's Functional Reserve Fund Study is a clear step-by-step report that incorporates clear explanations, comprehensive physical and financial analyses, and valuable tools to assist clients to understand and implement effective reserve fund strategies.

Highlights of our Report include:

• Reserve Fund Component Description and Analysis:includes an information sheet for each of the Corporation's common elements, detailing normal lifespan, observed condition and deficiencies, and estimated repair timelines and costs.
• First Condo Statement of Reserve Fund Operations: examines and compiles the Corporation's past reserve fund transactions to more accurately forecast future reserve fund expenditures.
• First Condo Economic Analysis: examines trends in overall construction cost inflation and achievable interest rates for the Corporation's reserve fund in order to provide realistic projections for repair costs and reserve fund balances;
• First Condo Benchmark Analysis: estimates optimum reserve fund contributions using a sinking fund method, which is more appropriate than the straight line method commonly used;
• First Condo Reserve Fund Deficiency Analysis: compares actual reserve fund balances to estimated reserve requirements to effectively determine recommended annual contributions by unit owners to the reserve fund;
• 30 Year Reserve Fund Projection: presents the proposed reserve fund operations for the next 30 years in one convenient chart.