Reserve Fund Studies

The Condominium Act requires condominium corporations to have a reserve fund to be used to offset expenditures associated with the major repair and replacement of the common elements and assets of the Corporation. The Condominium Act also requires that corporations obtain Reserve Fund Studies to determine whether the amount of money in the reserve fund and the amount of contributions collected from Unit Owners are adequate. At Capital Reserve Strategies, our approach to reserve fund planning is collaborative. These are our pillars:

Easy to Read Reports

Each component analysis comes with a picture. We understand that condominium board members come from diverse backgrounds and from all walks of life. We won’t leave any doubt about what part of your property we are reporting on. We enhance our reports with simple graphs, and the 30-year projection graph has the following key elements: annual Fund Opening Balance, Reserve Fund Contributions, Interest Income, Cash Reserves & Forecast Expenditures.

Simplicity

Our mission is simple: Is your reserve fund adequate? We do not deviate from this mission. If your reserve fund is not adequate, we’ll walk you through strategies to put you back on track.

We serve you

A Reserve Fund Study is a financial planning document to help the board make informed decisions. We will work with the board and the property manager to deliver a funding and expenditure strategy which meets the goals of the Corporation.

CRS’ 8 STEP PROCEDURE FOR RESERVE FUND PLANNING:

Property Inspection

Physical inspection of the property, take field notes, take photographs various building components and improvements

Interviews

Meet with the property manager, maintenance manager, or board members familiar with the history, maintenance and operation of the property.

Plans and Specifications

Examine available plans and records to further identify and quantify reserve components

Financial Statements & Records

Analyse financial statements for reserve fund practices, contributions, expenditures and requirements.

Cost Data Analysis

Consult various cost data and information services with respect to building component, material and labour costs

Economic & Business Trends

Apply appropriate inflation and interest rate data based on economic trends

Life Cycle Estimating

Determine the status of component life cycles in order to reliably estimate future capital expenditures

Reserve Fund Study Report

Provide comprehensive report with cost estimates, projections, and analysis of reserve fund operations

Building Condition Assessments

Capital Reserve Strategies also prepares Building (or Property) Condition Assessment Reports for owners and operators of multi-unit residential, commercial, institutional or government properties, to be used for planning (repairs & replacement planning), transactional (buying or selling) or financing purposes.

We follow the guidelines of ASTM E2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process, which is a recognized protocol for due diligence building inspections.

The Property Condition Assessment
Process is divided into 4 parts:

004
Document Review
Examination of drawings, maintenance records, financial statements, past reports.
002
Property Inspection
Prepare cost estimates for recommended major repairs or replacements.
003
Cost Estimats
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004
Report
Document findings and costs for recommended repairs in a written report.