Safe and Sound provides comprehensive Reserve Fund Studies for Condominium Corporations, as well as Capital Cost Assessments for Co-operative Housing, Apartment Complexes, and other developments. Our Reserve Fund Studies are completed in accordance with the requirements of SNL 2009 Chapter 29.1, which is the Condominium Act of Newfoundland and Labrador.
A Reserve Fund Study is a financial plan which is completed to ensure that adequate funding will be available for the major repair or replacement of the common elements of a condominium corporation as described in the development’s declaration. The common elements may include but are not limited to items such as roof coverings, asphalt surfaces, electrical components, mechanical components, and elevators.
Safe and Sound utilizes the Real Estate Institute of Canada’s Functional Reserve Study model, which is widely recognized as the most advanced reserve fund planning system in Canada. This model focuses on providing a sound financial plan in addition to a thorough assessment of the building and its components.
Our report includes detailed photos and descriptions of the building’s components and their condition. We provide easy to interpret spread sheets detailing component information, relevant financial data, and summarized projections for ease of reference.
A 30-year projection is provided to estimate the timing and cost of future major repairs or component replacement. The current reserve fund balance and contribution amounts are evaluated based on projected factors which include, but are not limited to:
- The age and condition of the common elements
- Interest rates and anticipated return on investments
- Construction cost inflation
- Prior investment performance.
Different variations of future contribution amounts and the resultant effects can easily be explored using our “Living Fund Analysis Spreadsheet”. This allows us to determine the future contribution amounts that are most optimal to unit owners.
A well-planned Reserve Fund Study minimizes the likelihood of financial burden such as special assessments or disruption caused by unanticipated repair work. We pride ourselves on building long term relationships working with our clients, not just for them.
We would be happy to meet with the corporation’s board of directors to present a sample study which fully details our process. Please contact Tom Gresham, Certified Reserve Planner at your convenience at (709)765-0091, or via email at tom@safeandsoundresidential.com.