August 2015
The current Condo Act came into force on May 5, 2001.
Condo corporations registered as of that date are required to have their reserve funds adequately funded by May 4, 2016.
When the Condo Act was revised in May 2001 it included a ten year extension to top up underfunded reserve funds. These funds are to be available for major repairs and replacement in accordance with their Reserve Fund Study.
This ten year requirement was subsequently extended to fifteen (15) years from the date of a condominium’s first reserve fund for those condominiums registered before May 5, 2001.
The intent of this was to assist condominium corporations in addressing reserve fund shortfalls. It coincided with introduction of the HST which placed a strain on condominium reserve funds.
Some condominium corporations may have allowed their reserve funds to remain underfunded during this time. As they may soon have to replace or repair major parts of their buildings such as roof, façade or underground parking structures, these corporations may soon require significant cash infusions by condo owners.
Condominium corporations which have failed to adequately fund their reserve funds during this period will soon be required to address this funding discrepancy to remain in compliance with the Condo Act.
