An RFS is available to provide your organization with the anticipated costs, service life expectations of building components, and the projected budgeting requirements to maintain or replace common elements on your property over the next 30 years.
The RFS is intended to ensure that adequate funds are allocated and preserved for major repairs and replacements as required.
Every condominium building in Ontario is required to establish a Reserve Fund Study (Capital Replacement Plan) within the year following the registration and periodic planning to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the corporation. This demand is stipulated in the Condominium Act. Its objective is to forecast future major repair or replacement of common elements of the building, to lower the risk of unexpected repairs, and to ensure that proper funds would be available for those repairs when the time comes. Reserve Fund Studies include the following items:
- Comprehensive analysis and visual physical structural condition survey of common element components including roof, exterior walls, windows, structure, plumbing, HVAC, electrical systems, elevators, and interior finishes
- Review of the condition and evaluation of life expectancy of the building components
- Inspect and investigate the need of major repairs for the building
- Cost estimation for major repairs and/or replacement of building components
- Thirty year plans that outlines future needs to repair or replace major components of the building
- Cost analysis and cash allocation for future required repairs
- A description of the on-site physical assessment, inspection methods, and equipment (when applicable)