As of May 5, 2001, the Condominium Act 1998 requires all existing and new condominium corporations to have a “Reserve Fund Study” undertaken. This article outlines some of the key aspects of Reserve Funds and the Studies.
>[…]The regulations to the Condominium Act stipulate the minimum liability insurance requirements; $1,000,000.
6. What Information Does The Corporation Need To Provide?
Once you have hired a consultant, he/she will require information about the condominium corporation. This will include the following:
- As-built drawings and specifications.
- The Declaration and Description.
- Reciprocal cost sharing agreements.
- Previous reserve fund studies.
- The most recent audited financial statements.
- What the current annual contribution to the Reserve Fund is.
- Repairs or replacements to the common elements that have already been completed and when.
- Similarly, scheduled future work needs to be accounted for.
- A summary of problems being encountered by the Corporation that should be reviewed.
- As an example, water penetration concerns.
7. What Is The Process?
The process is as follows:
- The consultant is provided the above information. One of the most important are the drawings. They will be reviewed prior to visiting the site in order for the consultant to become familiar with the overall design and construction schemes.
- Site inspection. In order to have an understanding on the current condition of the common elements, visual inspections are undertaken. Problem areas noted above can be reviewed. After the first study, the next study update can be completed without a site inspection. The next update must include a site inspection.
- The report is then prepared (see next question). The drawings are used to “take-off” quantities such as roofing, exterior wall cladding, asphalt, hallway finishes etc that will assist in preparing the replacement/repair cost budgets. It is recommended that a draft report should be submitted in order for the Board and Property Manager to review it prior to it being finalized. The consultant should be available to attend a meeting to review the report.
- Upon receiving direction from the Board of Directors, the Reserve Fund Study is finalized and submitted. […]
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