CPA · Condominium Property Act
38 Reserve fund
levied under section 39(1)(a) or under section 39.1, establish and
maintain a reserve fund that is reasonably sufficient to provide for
major repairs and replacement of the following, where the repair or
replacement is of a nature that does not normally occur annually:
(a) any real and personal pr operty of the corporation;
(b) the common property;
(c) managed property.
(1.01) Notwithstanding subsection (1), funds from the reserve fund
may be used for
(a) a reserve fund study and reserve fund report required by the
regulations,
(b) any other report prepared by an expert examining the
condition of the real and personal property of the
corporation, the common property and managed property,
and
(c) any other purpose provided for in the regulations.
(1.1) If, before the coming into force of subsection (1)(c) as
enacted by section 1(2)(a) of the Statutes Amendment Act, 2013, a
corporation was required by bylaw to repair and replace property of
an owner of a bare land unit, the collection and expenditure of
funds to repair and replace that property are valid if
(a) the collection and expenditure occurred on or after the date
the bylaw took effect under this Act, and
(b) the collection and expenditure would have been in
compliance with subsection (1) if subsection (1)(c) as
enacted by section 1(2)(a) of the Statutes Amendment Act,
2013 had been in force at the time the collection and
expenditure occurred.
(2) Notwithstanding subsection (1), funds shall not be taken from a
reserve fund for the purpose of making capital improvements
unless
RSA 2000
(a) the removal of funds for th at purpose is authorized by a
special resolution or is necessary to maintain property
referred to in subsection (1) to comply with health, building
and maintenance and occupancy standards as required by
law, and
(b) there will be sufficient funds remaining in the reserve fund
to meet the requirements of subsection (1).
(3) The money in the capital replacement reserve fund of the
corporation is an asset of the corporation and no part of that money
shall be refunded or distributed to any owner of a unit except where
the owners and the property cease to be governed by this Act.
(4) For the purposes of this section and section 39.1, the following
are not capital improvements:
(a) the replacement of existing real and personal property of the
corporation, the common property or managed property
with
(i) the contemporary equivalent of an obsolete property, or
(ii) a lower cost equivale nt of the existing property;
(b) any other replacement prescribed by the regulations.
RSA 2000 cC-22 s38;2013 c10 s1;2014 c10 s29