Reserve Fund Studies

Manitoba’s new Condominium Act and Regulations came into effect on February 1, 2015. Under the new Regulations, major changes in the development, buying and selling, ownership and operation of condominiums came into force. These changes apply to all condominium developments in Manitoba and require that you must have a Reserve Fund Study completed before February 1, 2018, and then subsequently every five years thereafter. All condominium corporations and their boards, unit owners, developers, and property managers, now have to adjust to these new laws.

A Reserve Fund Study is a financial document that is meant to act as a guide to assist with planning condominium budgets.

A Reserve Fund Study Includes:

• A physical inventory of all commonly owned assets
• An analysis of the observed condition, actual and effective age and current and future replacement costs for each commonly owned asset
• An analysis of the current contribution and reserve fund balance adequacy and suggested reserve fund contribution options to meet future forecasted expenditures

Reserve Fund Study requirements vary from province to province and HLC Consulting is knowledgeable of the various provincial condominium acts.

Reserve Fund Study Benefits

Adequate contributions to the reserve fund will negate the need for special assessments or cash calls. Through detailed analysis of commonly owned assets, future expenditures can be budgeted for and adequate funding can be set aside.

Potential condominium purchasers are becoming more educated about Reserve Fund Studies and the new condominium act. Potential purchasers will be looking for a Reserve Fund Study and confirmation that the condominium corporation is looking towards the future in terms of budgeting and avoiding special assessments. A Reserve Fund Study with solid financials can be an excellent selling feature.