In 2015, the Government of Manitoba updated The Condominium Act C-170, which requires that all condominium corporations take steps to improve current practices surrounding condo fee fundraising strategies, reserve fund establishment, and budgetary expenditures on major property repairs and replacements.
The new Regulations call for the completion of a reserve fund study every five years. The reserve fund study includes an examination of the condominium’s corporate structure, a physical review of the common elements, a financial assessment of the current reserve fund and projected repair and replacement schedule, as well as consultations with directors and service providers of the condominium corporation.
This study provides essential information about the systems and other physical common elements, specifying a reasonable estimation of the remaining useful life and the anticipated costs to repair and maintain the condominium over time. The study equips condominium stakeholders with a detailed assessment and clear recommendations that support evidence-based decision making on the prioritization of routine repair and maintenance, as well as the ongoing condo fee contributions required to maintain an adequate reserve fund. The strength of the study is that it best ensures the condominium’s long-term financial and physical stability and reduces the likelihood of undesirable special assessments.