FAQs


WHAT IS A FUNCTIONAL RESERVE FUND STUDY?

A functional reserve fund study is a financial document which provides the basis for the funding of major repairs and replacement of the common elements and assets of the condominium corporation. 


The functional reserve fund study includes a description and estimated life expectancy, over 30 years, of items that are part of common property, common assets, limited common property or parts of the condominium lot that the corporation is responsible for. This may include, but is not limited to:

  • the building's structure
  • the building's exterior  including the roof, doors, windows and skylights
  • the building's systems, including the plumbing, heating, electrical, fire protection and security
  • the building's common facilities and amenities
  • the building's parking facilities and roads
  • the building's utilities
  • the building's landscaping
  • the building's interior finishes, including furnishings and floor coverings
  • green building components, and
  • the building's balconies and patios


As of February 1, 2015 new legislation requires that all condominium corporations in Manitoba have a reserve fund study prepared and updated every five years.


WHO SHOULD HAVE A RESERVE FUND REPORT COMPLETED?

  • Condo Corporations ‐ may be conducted at the request of the Condo Corporation or the Property Manager
  • Institutional and Government Property owners or tenants ‐ provides a framework for stable anticipated repair and maintenance costs
  • Residential, Commercial, and Industrial Investment Property Owners ‐ as above, provides a framework for stable anticipated repair and maintenance costs, which in turn may be passed on in part to the tenant under additional rent.


WHO CAN COMPLETE RESERVE FUND STUDIES?
At this time, the only groups of professionals generally considered to be qualified to perform Reserve Fund Studies have completed the Real Estate Institute of Canada (REIC) Reserve Fund Planning education, which provides the professional designation of CRP (Certified Reserve Planner). CRP designated professionals conduct Functional Reserve Fund Studies, which is described as a financial document, and incorporates both a physical analysis and a financial analysis of the condo corporation; or professional engineers who provide engineered reserve fund studies which is solely a physical analysis of the property.


WHY A RESERVE FUND REPORT?
Our Team of CRP Specialists are ready and qualified to provide your condominium corporation with a Functional Reserve Fund Study to Manitoba legislated standards. The main reasons for having a Reserve Fund Study conducted are as follows:

  • to be in compliance with the Manitoba Condominium Act
  • to fulfill the fiduciary duty of the condominium corporation;
  • to provide the owners with a plan for the establishment and maintenance of adequate funding for current and future repairs and replacements;
  • to equitably distribute the proportionate share of component costs to each owner, regardless of their period of ownership;
  • if implemented appropriately, this plan should mitigate the risk of requirements for future special assessments;
  • should prolong the life of building components through planned maintenance;
  • should result in the improved overall condition and maintenance of the building components; which will help to sustain re‐sale values and reduce overall long‐term repair and replacement costs.