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Seeing as how it is something we do on a very regular basis, I think that quoting for reserve fund studies should be relatively easy. Unfortunately, we sometimes find that there is a difference in what is requested and what the Condominium Property Act requires. For example, about ten years ago a developer decided to build a condominium project in 4 stages. In the first stage 25 townhouse units were built, the bareland condominium plan (Plan 1) was registered with 28 units (25 townhouse units and 3 units to be re-divided later (Units B, C, and D). The Condominium Corporation was created upon registration of the first plan, with 1000 unit factors distributed amongst the townhouse units and 3000 unit factors each for Units B, C and D. Because there were only 25 townhouse units, the Condominium Corporation decided that they would be self-managed. They elected a Board, created a budget and opened the appropriate bank accounts (reserve and operating) for Plan 1. To this day, they remain self-managed. A couple of years later, construction began on a low rise apartment that was to be built in 2 sections over an underground parkade. Plan 2 was registered as a re-division of unit B with a guest suite, 60 residential units and 100 parking units in the parkade. In the following year, the next phase was built, Plan 3 was registered as a re-division of unit C with 50 residential units and 75 parking units in the parkade. Just before turnover of development, the developer decided that Plans 2 and 3 should be run as a single corporation as they were essentially a single structure and shared the use of the guest suite (common property) and parkade. The developer hired a property manager and the Owners of Plans 2 and 3, elected a Board, created a budget and opened the appropriate bank accounts for Plans 2 and 3. Two years later the final phase, was built. Plan 4 was registered as a re-division of unit D with 95 residential units and 125 parking stalls. They hired the same property manager from Plans 2 and 3, elected a Board, created a budget and opened the appropriate bank accounts for Plan 4. Plan’s 2, 3 and 4 share the access ramps to the parkade, along with the heating and ventilation for the parkade. All phases of the development share common access roadways. Submit your answer to delta@telus.net by December 9, 2011. At Delta Appraisal, we work with property managers and board members to set realistic budgets and to prioritize maintenance and repair projects. Our functional Reserve Fund Studies are unbiased and we are not competitors in property management or maintenance. Thank you for taking the time to read our newsletter. If you have a topic that you would like to see in a future newsletter, please let us know. We are always looking for new ideas and would be happy to give you credit for your topic. Please send your ideas to delta@telus.net.
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