Condos/Stratas › Reserve Funds

• Reserve Fund Requirements
• Reserve Fund Study
• Reserve Fund Plan
• Eligible Reserve Expenses
• Funding the Reserve Fund

Reserve Fund Study

In Alberta, a reserve fund study must be made by a qualified professional, within two years of incorporation and every five years after. The reserve study would calculate the required annual contributions to meet the expected future costs of major capital replacement and repair. Normally, this study would be done by an engineer.

In BC, a strata corporation has the option of making a depreciation report. No professional is required. Section 6.2 of the Regulation gives guidance on how a "depreciation report" would be compiled, including a listing of the assets that may likely need future replacement and repair. The annual contribution to the reserve fund can be determined by this formula:

estimated cost - past contribution
__________________________

             expected life