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.