Reserve Funds

The New Act makes reserve fund studies mandatory PRIORITY AS REQUIRED [section 93]. If the Corporation was created before BY ACT AND REGULATIONS the New Act came into force, conduct a reserve fund study within three (3) years of the New Act coming into force, and thereafter, conduct a new reserve fund study every three years. [regulation 28].

The Corporation need not conduct a reserve fund study when the New Act comes into force if it already has conducted a reserve fund study that meets the requirements under the regulations and it conducts an updated study based on a site inspection within three years of the day the New Act comes into force.

If the Corporation was created after the New Act came into force, conduct a reserve fund study within the year following registration of the declaration and description, and subsequently every three years. [section 94(4)]

Ensure that the board reviews the reserve fund study and proposes a reserve fund plan within 120 days of receiving the reserve fund study. [section 94(8)]

Ensure that, within fifteen (15) days of proposing a plan, the board sends notice to owners containing a summary of the study, a summary of the proposed plan, and a statement indicating the areas in which the proposed plan differs from the study. [section 94(8)]

Ensure that, within fifteen (15) days of proposing a plan, the board sends to the auditor copy of the proposed plan and a copy of the notice sent to owners.

Ensure that the board implements the proposed plan after thirty (30) days from the day notice of the plan was sent to the owners and the auditor.

During the time that a new reserve fund study is being prepared, no less than 10% of common expenses must be paid into the reserve fund. [section 93(5)(6)]

Regulation 28 sets out more information about the different types of reserve fund studies and how often they must be conducted.