In Alberta, a Reserve Fund Study is required every 5 years according to the Condominium Property Act. What happens over the next 5 years when expenses can cost more and or is defrerred for later dates or years?  Or, if the Board does not raise contributions when required.

​ Adjustments are necessary if this is not regularly planned. Over time the corporation can easily lose track over the coming years. When this happenes, this can cause a shortfall of funds In the reserves and/or increases in the costs of the deferred expenses. This can rsult in large unexpected condo fee increases and or special assessments.

 These issues are the responsibility of the corporation. The corporation should disclose to  the owners and potential buyers  the most recent up-to-date information regarding reserves and ongoing expenses that will give confidence that the corporation is run well.

 This all can be very confusing and disappointing for buyers who base their decisions on reviewing the condo documents and surprising for the owners thinking the corporation as been well run. It is estimated that up to approximately  35% to 45% of condominium corporations are operated this way.

 The Board consists of owners who may not have all the skills of operating a corporation, and therefore management decisions may be based on their personal financial decisions rather than the decisions required to run a business as a corporation.

 In most cases owners are unaware of the financial position of the Corporation's health. This includes management companies who may not be well advised or may not be connected to the corporation's financial standing either by having lack of information or simply their contract did not require their service for day to day operations and/or capital expenses.

 CondoFirstReview Ltd. has developed a reserve fund study cash flow plan that can be easily integrated and adjusted in their budgeting. The program includes setting up the system with training and ongoing coaching For the Condo Corporation. It is cost effective and will save the corporation many hours of time and management.