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Building Restoration & Structural Engineering

A reserve fund is a sum of money set aside to cover the cost of major repairs and replacement of the Corporation’s common element components.  The RF is ultimately intended to maintain Condominium buildings in a serviceable condition and to protect Owners from financial liability.

Section 93(2) of the new act states that the fund “ ...shall be used solely for the purpose of major repair and replacement of the common elements and assets of the Corporation.” 
The money is collected from the owners of a Condominium Corporation and is a component of the monthly condominium fees.  Until the Corporation obtains its first reserve fund study, the amount collected cannot be less than 10% of the Corporation’s common expense budget, or the operating budget (93 (5)).