Condo corporations maintain an operating fund and a reserve fund. The operating fund is used for day to day expenses and maintenance. The reserve fund is “used solely for the purpose of major repair and replacement of the common elements and assets of the corporation”, according to the Condo Act, Article 93. You’ll note an update to the Act would also include “repair of a unit” in the permitted uses of the reserve fund. Each month a portion of income from condo fees is added to the reserve fund.
A reserve fund study (RFS) describes the projects needing reserve fund money, predicts when they must be done and tells us how much we should expect them to cost. Our most recent RFS was completed by an engineering firm in the fall of 2015 and applies to the years 2015-2045. In my opinion, any study that attempts to predict that far into the future must be viewed with caution. What about large increases in the price of materials and labour? What about projects no one can anticipate? However, the RFS at least alerts us to things that will definitely need attention
Examples of RFS projects:
- Fire protection systems
- Fire alarm system
- Emergency generator with fire pump
- Garage roof membrane replacement
- Balcony concrete waterproofing
- Exterior painting and caulking
- Lobby refinishing
In the recent past we paid for the window and balcony door replacement from the reserve fund.
If you would like a copy of our RFS please contact me; be sure to identify yourself as a Frobisher Place owner with your unit number.
- November 12, 2016 @ 11:37:04 [Current Revision] by doug
- November 12, 2016 @ 11:37:04 by doug