eyre.consulting Inc. Services
Full Reserve Fund Study & Report
Detailed insight into your corporation's reserve requirements.
This service includes a detailed site visit and review of components, an interview of the board or manager to obtain the project history and documents, a thoughtful analysis of the numbers & timing, a detailed report of the findings, and a one hour+ in-person meeting to discuss the report.
Periodic Report Updates
When things change, get the new picture.
On occasion, things may unfold in an unpredictable way. Components may fail much sooner than expected or a corporation may decide to add a capital project where they plan to use reserve funds. Whatever the reason, these changes can be incorporated into the existing study for a modest fee.
FAQ
A reserve fund study & its associated report can be complicated. Check out our FAQs for some of the more common questions. If you don't find what you're looking for there, feel free to contact us using the form below.
What is a reserve fund study?
A reserve fund study is a comprehensive financial planning tool used to manage a corporation’s long-term capital requirements. While an operating budget covers recurring annual expenses, the reserve fund study focuses on the capital budget, forecasting the replacement and major repair costs of common property over a 30-year horizon. The analysis evaluates projected expenditures, the anticipated timing of those costs, and the impact of both inflation and investment income on the fund’s growth. The final result is a professional reserve fund report that provides a strategic funding plan to ensure the corporation remains financially sustainable and avoids the need for unplanned special assessments.
What is a reserve fund plan?
A reserve fund plan is the formal financial strategy adopted by the board of directors once the long-term capital requirements are identified in the reserve fund report. In Alberta, the board is responsible for implementing a plan that ensures the corporation collects and maintains sufficient funds to meet those projected repair and replacement costs. While the study provides the data-driven recommendations, the plan represents the corporation’s official commitment to a specific contribution schedule, ensuring the building’s infrastructure remains fully funded and sustainable over the 30-year window.
When should we have a reserve fund study done?
In Alberta, newly registered condominium corporations are legally mandated to complete their initial reserve fund study within two years of registration with Land Titles. Following this inaugural report, the corporation must conduct a comprehensive update at least once every five years. This statutory cycle ensures that the funding plan remains aligned with shifting inflation rates, updated construction costs, and the actual physical condition of the building's common property components.
Can I do my own reserve fund study?
Yes, though only under specific conditions. In Alberta, condominium corporations with 12 or fewer units may elect to act as their own 'qualified person' to conduct the study. This requires approval via a special resolution of the corporation. While this is an option for smaller projects, most boards still choose a professional study to ensure the long-term financial accuracy and liability protection that a data-driven analysis provides.
We don’t yet have a study, but we would like to begin contributing to our reserve. How much should we contribute?
While it is tempting to use a 'rule of thumb,' there is no reliable industry standard that applies to every corporation. Every building has a unique footprint, age, and set of common property components. An experienced planner can often provide a ballpark estimate based on similar profiles, but a formal reserve fund study is the only way to determine a contribution level that ensures long-term financial health. Commencing the study early is the best way to avoid the risk of underfunding or sudden special assessments.
How much does a reserve fund study cost?
The cost of a reserve fund study is determined by the specific scope and complexity of the development. Fees are calculated based on several key variables, including the total number of common property components, the intricacy of the building’s construction, and the project’s location—whether within Calgary or a surrounding satellite community. Additionally, the availability of existing building plans versus the need for extensive on-site measurements will influence the final quote. We provide customized financial analyses to ensure each study accurately reflects the unique requirements of the corporation.
I have a pending sale; how long will it take to get a reserve fund study report?
Timeline duration is driven by project size, communication speed, and our current capacity. Smaller tasks (2–8 units) generally require a few days to a week, whereas larger projects may take several months to process extensive information and coordinate between stakeholders. These estimated windows begin at the formal start of the project.
Our reserve fund appears to be underfunded. How will that impact the sale of my unit?
An underfunded reserve fund can significantly influence a real estate transaction, as it often serves as a red flag for savvy buyers and their lenders. During the due diligence process, a prospective buyer’s lawyer or accountant will review the information, or disclosure, statement and the most recent Reserve Fund Study to assess the corporation’s financial health. If the fund is deemed insufficient to cover upcoming capital repairs, it may lead to a lower offer price to offset the risk of a future special assessment. Furthermore, some lenders may even decline mortgage financing for a unit if the corporation’s reserve is severely depleted, potentially limiting your pool of qualified buyers.
Can we use reserve funds to cover unexpected operating shortfalls or annual maintenance?
No. Under the Alberta Condominium Property Act, the reserve fund is strictly designated for the non-recurring repair and replacement of common property components. It is a protected capital account and cannot be used to cover day-to-day operating expenses, such as utilities, insurance premiums, or routine landscaping. Maintaining this clear separation ensures that the funds are available when major, long-term projects—like roof replacements or mechanical upgrades—become necessary, protecting the corporation from sudden financial instability
Can reserve funds be used to pay for insurance deductibles?
Potentially, under specific circumstances. In Alberta, if a corporation faces a significant insurance claim and a portion of the resulting deductible is unrecoverable, the board may be permitted to use reserve funds to cover some of that cost. However, reserve fund expenditures are generally restricted to the repair or replacement of common property components. Because the reserve fund is primarily intended for scheduled major repairs and replacements, using it for an emergency deductible often creates a 'funding gap.' If this occurs, the board should consult their reserve fund planner to determine if a revised contribution schedule is necessary to ensure the corporation remains on track for its long-term funding goals.
Contact Us
If you have any questions, would like to request a proposal, or would like to schedule a presentation, fill out the form below or call Susan @ 587-832-6161
