RTA · Condominium Property Regulation
Part 2 — Capital Replacement Reserve Fund
23 Reserve fund study, report and plan
to carry out a study of the depreciating property for the purposes of
determining the following:
(a) an inventory of all of the depreciating property that, und er
the circumstances under which that property will be or is
normally used, may need to be repaired or replaced within
the next 30 years or a time period longer than 30 years;
(b) the present condition or state of repair of the depreciati ng
property and an estimate as to when each component of
the depreciating property will need to be repaired or
replaced;
(c) the estimated costs of repairs to or replacement of the
depreciating property using as a basis for that estimate
costs that are not less than the costs existing at the time
that the reserve fund report is prepared;
Section 23 AR 168/2000
(d) the life expectancy of each component of the depreciating
property once that property has been repaired or replaced.
(2) In carrying out the reserve fund study under subsection (1), the
reserve fund study provider must also do the following:
(a) determine the current amount of funds, if any, included in
the corporation's reserve fund;
(a.1) conduct an on-site visual inspection of all visible
components of the depreciating property;
(a.2) interview the members of the board;
(a.3) interview, to the extent the reserve fund study provider
considers necessary, the condominium manager or
managers for the corporation, if any, any employees of the
corporation or condominium manager, or any other
person;
(a.4) review relevant documents, including the condominium
plan, the converted property study or building assessment
report, if applicable, construction documents and
maintenance records;
(b) recommend the amount of funds, if any, that should be
included in or added to the corporation's reserve fund in
order to provide the necessary funds to establish and
maintain or to maintain, as the case may be, a reserve fund
for the purposes of section 38 of the Act;
(c) describe the basis for determining
(i) the amount of the funds under clause (a), and
(ii) the amount in respect o f which the recommendation
was made under clause (b).
(3) After the reserve fund study under this section is completed,
the reserve fund study provider must prepare and submit to the
board a reserve fund report in writing in respect of the study setting
out the following:
(a) the qualifications of that p erson to carry out the reserve
fund study and prepare the report;
(b) a signed statement that the person is a reserve fund study
provider and no grounds of disqualification under section
21.1 or 21.2 apply;
(c) the findings of the reserv e fund study in respect of the
matters referred to in subsections (1) and (2);
Section 24 AR 168/2000
(d) any other matters that the person considers relevant.
(4) On receiving the reserve fund report under subsection (3), the
board must, after reviewing the reserve fund report, approve a
reserve fund plan
(a) under which a reserve fund is to be established, if one ha s
not already been established, and
(b) setting forth the method of and amounts needed for
funding and maintaining the reserve fund.
(5) A reserve fund plan approved under subsection (4) must
provide that, based on the reserve fund report, sufficient funds will
be available by means of owners' contributions, or any other
method that is reasonable in the circumstances, to repair or replace,
as the case may be, the depreciating property in accordance with
the reserve fund report.
(6) Notwithstanding that a reserve fund plan has been approved
under subsection (4), the corporation must provide to the owners
for the owners' information copies of that approved reserve fund
plan prior to the collection of any funds for the purposes of those
matters dealt with in the reserve fund report on which the approved
reserve fund plan was based and that are to be carried out pursuant
that report.
(7) Until such time that a corporation has approved a reserve fund
plan under subsection (4) and has met the requirement under
subsection (6) so as to be eligible to collect funds in respect of the
reserve fund, the corporation may, notwithstanding subsection (6),
collect or otherwise receive funds for a fund that is similar in
nature to a reserve fund and may make expenditures from and
generally continue to operate that fund.
AR 168/2000 s23;108/2004;181/2017;154/2019;138/2021
(1) If a unit factor vote is demanded, the result of the unit factor
vote shall be deemed to be the resolution of the meeting at which
the unit factor vote was demanded.
(2) Where a unit factor vote is conducted, the votes must be
counted by at least 2 individuals.
(3) Where possible, the 2 individuals who count the votes of a unit
factor vote shall consist of a member of the board and an owner
who is not a member of the board.
24 Repealed AR 23/2026 s37.