A reserve fund study a financial report, which provides the basis for funding major repairs and the replacement of the common elements and assets of a condominium. It is a practical guide to planning budgets and maintenance programs, and is developed on the basis of physical and financial analysis. We provide a comprehensive service, working alongside you, to determine an effective long term funding plan for future expenditures.
A reserve fund study can be completed by a qualified person who, based on reasonable and objective criteria, is knowledgeable with respect to components; the operation and maintenance of components and the cost/replacements of components. A qualified person includes but is not limited to:
- A member of the Appraisal Institute of Canada holding the designation of Accredited Appraiser Canadian Institute (AACI, P.App);
- A member of the Real Estate Institute of Canada holding the designation of Certified Reserve Planner (CRP);
- A licensed applied science technologist within the meaning of The Saskatchewan Applied Science Technologists and Technicians Act;
- A person who holds a certificate of practice within the meaning of The Architects Act, 1996; and
- A licensed professional engineer within the meaning of The Engineering and Geosciences Professions Act.
Qualified persons must hold liability insurance in a minimum amount of $1,000,000.
Grace Muzyka AACI, P.App, CRP from our Saskatoon Office works alongside Terry Sobieski, CRP from Technical Advisory Services Inc. Together, Grace and Terry offer extensive expertise with over a decade of experience in Reserve Fund Studies. By partnering with you, we provide an accurate and detailed guidance to better serve your needs.
A comprehensive reserve fund study involves many components. To make the process a little easier we have provided the details we will be asking you for:
- Access to the physical condominium property.
- Access to blueprints/construction drawings; site plans, architectural, structural, mechanical and electrical.
- A copy of the condominium plan and bylaws.
- Information about, and access to, all relevant documentation pertaining to, remove, repairs and maintenance carried out and/or ongoing projects relating to various building systems (structural, electrical and mechanical).
- Copies of the most recent audited financial statements, current reserve fund contributions and balance, and planned expenditures in the short term.
- Copies of any previous reserve fund studies completed.
- Historic information regarding the condominium complex and any problems experienced, and planned changes (physical and financial) to the complex and/or its various components.
Reserve Fund Checklist
Condominium Building and Improvements
A detailed description is provided of the property, including the site and improvements.
Components Identification and Analysis
A detailed description of all common area components is made as is an assessment of the components observed condition. A condition analysis provides the life expectancy of each component, its remaining life, and recommended date of replacement.
Financial Analysis – Projection Factors
Projection Factors depend on business cycles, economic conditions, interest rates, and building costs, all of which can change from year to year. This section provides a statement of assumption regarding economic factors that affect maintenance affordability. The current and future replacement costs for each component are identified and used to more accurately forecast future fund requirements. An accurate assessment of the reserve fund requirements works to ensure annual contributions by unit owner to the reserve fund are fair and equitable while meeting the needs of the current and future owners.
The analysis provides a practical application of reserve fund budget planning and management. When applied, the reserve fund will cover all anticipated reserve fund expenditures over a 25-year study period.
Cash Flow Analysis
Cash flow scenarios assist to identify ways to accurately finance the reserve fund. The analysis present 25-year repair and capital plan projections, showing cash position, cash flows and cash expenditures.