May 2024
Your building is nearing 40 years old and certain major work can no longer be delayed. The biggest job is to replace all windows and window systems at a cost of around $7 million. Other work needing to be completed add another $3 million to the total.
This is the challenge confronted by one condominium community undertaking a window replacement project that started during the pandemic and continued while costs were escalating by 30 percent. Unlike many communities, this one is well funded and able to undertake the work without increasing condo fees or implementing a special assessment.
This is the challenge facing condominium communities when it comes to funding their reserve fund. No matter how many times some accountant, manager or director tells you the reserve fund is strong, few are prepared to discuss the day when $7 million or more will be needed.
The window system replacement project is disruptive and invasive. Each suite is impacted for about a month during this three-year project. Replacing glass windows and doors requires repairs, painting and moving of household items. Few have somewhere else to go while work is being completed, and people enter and exit the home. Residents can spend much of their day in the library, lobby, card room, or other common areas accessible to them during daytime hours when work is occurring.
Each year a portion of condo fees goes into the reserve fund while money is also being spent. While this occurs, does your community have a plan that entails building the fund to $10 million or more for when it is needed?
