Click here to view the Alberta Condominium Act Regulations, using the information below to quickly find specific information:
- Reserve Fund-Section 38 (1), (2), (3)
- Capital Replacement Reserve Fund –Sections 21,22
- Reserve Fund Study and report- Sections 23
- When reserve fund study and report must be prepared- Section 24
- When study, report must be prepared re rental units – Section 25
- When study, report must be prepared re conversions- Section 26
- Maintenance of reserve fund- Section 27
- Repairs not construed as capital improvements – Section 28
- Annual report- Section 29
- 5-Year review- Section 30
- Investments- Section 43
- Information on request- Section44
- Documents, Specifications and Approvals- Section 46
- Insurance- Section 47, 48, 61, 62,
- Doors and windows –Section 72
Canadian Condominium Institute (CCI) – Go here to get current resource information relevant to Albertan condominium owners.
Review the suggested portions of the documents listed below:
- Strata Property Act– Part 6 Finances Division 1- Operating Fund and Contingency Reserve Fund Sections 91-96
- Strata Property Regulations– Part 3 Section 3.4 – Contingency Reserve fund contribution in first annual budget and Part 6 Finances- Sections 6.1, 6.2 and 6.3
- Bill 12- 2009 Strata Property Amendment Act Section 15– Bill 12-2009 Strata Property Amendment Act Sections 7(c), 12(b), 15 and 33(a) and (d). Amendments to Section 94 of the act brought into law December 13, 2011
- Summary of all Changes and Amendments Approved December 13th, 2011
- Schedule of Standard Bylaws for a Strata Corporation– Division 2 Powers and Duties of Strata Corporation – Repair and maintenance of property by Strata Corporation
Condominium Home Owners Assocation of BC (CHOA) – Go here to get current resource information relevant to BC strata owners.
What are the components of a Reserve Fund Study/Depreciation Report?
- Physical Component – Involves developing a component inventory, reviewing the condition of the components, what their effective age is and estimating a remaining life for them. This is accomplished with a site visit as well as reviewing all available plans and specifications and meeting with property managers and maintenance personnel.
- Financial Component – Involves estimating current and future replacement costs of the assets, current funding levels, predictions of future inflation and interest rates and finally putting it together to come up with a suitable funding model. This is accomplished by reviewing financial statements to identify current reserve fund balances and contributions. Repair and replacement costs for common components are determined using industry accepted costing methods. Future costs are arrived at based on anticipated inflation and time until replacement is required. Reserve fund growth is predicted based on contributions and anticipated interest rates achieved on funds held in the reserve fund. All of this is put together in schedules that provide the financial framework for the reserve fund plan.
How will we be involved?
- Once Taycon has been commissioned to do a Reserve Fund Study/Depreciation Report for your organization you will receive a request for information to get started.
- As we work through the process we would like to speak to your maintenance department on our site visit as well as meet with the property management company. Any specific areas of concern that the board of directors of the Corporation or Strata as well as the Property Managers have should be identified up front.
- Any plans for major repairs or replacements for common components that are anticipated and planned in the next 3-5 years should be discussed so that they are included in the plan.
- Once a set of schedules which form the basis of the report are complete they will be presented to the board for a draft review.
- Any changes that may be required will then be made in the final report.
- Once the final report is presented, Taycon will be available to answer questions at Condo or strata annual meetings where the Reserve Fund Study/Depreciation Report is presented to the owners of the property.
What information is required?
- Financial statements back as far as they can be accessed as well as your current year budgeting information
- Strata/Corp plan including all amendments
- The bylaws and all amendments of the Corp/Strata
- Previous Reserve Fund Studies/Depreciation Reports
- Insurance certificates or appraisals
- Drawings, investigation reports by others, fire inspection reports, maintenance logs
- Any other information that the Corp or Strata feel is important regarding the repair and replacement of the common elements that may be planned for the next 3-5 years.
What will the report look like?
- An executive summary of facts and conclusions, complete with a cash flow table and specific recommendations.
- The Reserve Fund Study/Depreciation Report itself which reviews purpose, methodology, property Information, reserve fund component analysis and estimated costs, reserve fund component estimates, analysis of reserve fund operations, reserve fund management and recommendations.
- Each common component is presented in detail and reviewed within the component analysis section above. In addition schedules are provided for past performance, benchmark analysis of where things currently are, cash flow table showing all funding and expenditures for the period reviewed which would be either 25 or 30 years depending on the regulations, and lastly the funding cash flow table which is provided in the executive summary.