RTA · Condominium Property Regulation
Part 2 — Capital Replacement Reserve Fund
27.1 Use of reserve fund during emergency
corporation controlled by an interim board may transfer funds
currently in the reserve fund into the operating fund for the
purposes of temporarily paying for the control, management and
administration of the real and personal property of the corporation,
the common property and managed property if the conditions in
this section are met.
(2) Before a corporation may transfer funds under this section, the
following conditions must be met:
(a) a declaration of emergency has been proclaimed under the
Emergencies Act (Canada), a state of emergency or state
of local emergency has been declared under the
Emergency Management Act or a state of public health
emergency or local state of public health emergency has
been declared under the Public Health Act, and the
declaration of emergency, state of emergency, state of
local emergency or state of public health emergency or
local state of public health emergency remains in effect;
(b) the corporation has r eceived lower revenue from
contributions compared to the revenue expected from
contributions levied on owners as a result of
(i) the declaration or state of emergency,
(ii) events that caused or led to the declaration or state of
emergency, or
(iii) events related to the declaration or state of
emergency that occurred during the declaration or
state of emergency;
(c) as a result of the lower rev enue described in clause (b), a
shortfall exists between revenue received and
expenditures to be paid from the operating fund;
(d) the corporation has no prohibition in the corporation's
bylaws on using the reserve fund in this manner.
(3) A corporation may not transfer from the reserve fund to the
operating fund an amount that is more than
(a) the difference between the lower revenue received from
contributions, as referred to in subsection (2)(b),
compared to the revenue expected from contributions
levied on owners,
Section 27.1 AR 168/2000
(b) the actual shortfall that e xists between revenue received
and expenditures to be paid from the operating fund, or,
(c) any limit that may exist i n the corporation's bylaws on
using the reserve fund in this manner,
whichever is less.
(4) Prior to transferring funds currently in the reserve fund for a
purpose identified in subsection (1), the board must
(a) serve a notification to owners consisting of
(i) a statement of the board's intention to transfer
reserve funds for a purpose identified in subsection
(1),
(ii) notice of the date when the board intends to make a
decision,
(iii) a description of any alte rnative that was considered
to transferring reserve funds, and the reason why the
alternative was not adopted, and
(iv) a proposed revision to the reserve fund plan that
(A) identifies the amount of the reserve fund being
transferred to the operating fund under this
section, and
(B) identifies a specific r epayment plan that will be
used to repay the amount transferred from the
reserve fund within 2 years of the date the
declaration or state of emergency has ended,
(b) pass a board resolution w ith a 75% majority of directors
eligible to vote that
(i) authorizes a transfer from the reserve fund to the
operating fund in accordance with this section, and
(ii) approves the proposed revision to the reserve fund
plan referred to in clause (a)(iv),
a n d
(c) serve a notice to owners co nfirming that the changes to
the reserve fund plan have been adopted and provide the
revised reserve fund plan to owners.
Section 28 AR 168/2000
(5) Nothing in this section is to be read as relieving, limiting or
deferring an owner's obligation to pay any contributions levied by
the board.
AR 85/2020 s2