Reserve Fund Study– Q & A for Owners

1. What is a Reserve Fund Study?

A Reserve Fund Study is a professional assessment of all major common‑element components (such as roofs, asphalt, siding, and underground services). It estimates when these items will need repair or replacement and how much they will cost over the next 30 years.

2. Why does PCC41 need this study?

Ontario’s Condominium Act requires every condominium to update its Reserve Fund Study every three years. This ensures the Corporation has enough money set aside to maintain the property without sudden special assessments.

3. What type of study was completed in 2026?

PCC 41 completed a Class 3 Update (no site visit). This is permitted every six years and is based on engineering records, past studies, and financial data.

4. What did the study find?

The study confirms that PCC 41’s reserve fund is stable and can support all projected repairs and replacements over the next 30 years without going into deficit.

5. What are the recommended contributions?

The engineer recommends:

• 2026 contribution: $67,753

• Annual increase: 2% per year

• Special contributions: $25,000 in 2026 and $25,000 in 2027

• Minimum projected balance: $258,918

These contributions keep the fund healthy and avoid large future increases.

6. What major projects are expected in the future?

The study includes long‑term planning for:

• Roof replacement (metal shingles)

• Asphalt and parking area resurfacing

• Siding and masonry repairs

• Fence replacement

• Drainage and underground infrastructure

• Mechanical and electrical systems

• Contingency allowances for unexpected repairs

7. Are windows and doors included?

No. Windows, exterior doors, and most lighting are not common elements and are not included in the reserve fund.

8. Will there be special assessments?

The recommended plan includes two small special contributions ($25,000 in 2026 and 2027). After that, the study shows no need for special assessments if the recommended plan is followed.

9. How does this benefit owners?

A properly funded reserve:

• Protects property values

• Prevents sudden, large one‑time charges

• Ensures timely maintenance

• Keeps the community in good condition

• Meets all legal requirements

10. What happens next?

The Board will review the study and issue the required Notice of Future Funding of the Reserve Fund, which outlines the funding plan that will be implemented.