At Belanger Engineering, we want those who fall under the Condominium Act of 1998 to have a complete understanding regarding the requirement of a reserve fund. We believe by sharing vital information about the main components of reserve fund studies, you’ll be in a better position to explain the process with the individual condominium owners.
- Physical inventory- This entails every component that qualifies as common property. That means that no one owner is responsible for the replacement. It generally includes the roof systems, parking lot, exterior walls, and landscaping.
- Condition analysis- Each item found in the physical inventory is analyzed to determine its effective age, how much longer it is expected to last, and what current or future costs are involved.
- Reserves needed- Once all items are considered together as a whole, cost estimates are developed to determine the reserves that will be needed. This amount should be reviewed regularly so that adjustments can be made based on pricing differences and other changes.
- Current reserves- A review of the current reserve fund and what has been contributed to it thus far is completed.
- Reserve fund plan- Finally, we develop a funding schedule so that the anticipated costs have been funded in advance of the expected expenditure. We take the amount needed, less the amount already in the reserve fund, to determine what more is needed and if it is in line with the current contributions or if they should be revised.