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:
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?
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: