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what is a reasonable condo RESERVED FUND in toronto?

shouldn't your lawyer know that?

what does the condo strata certificate indicate?
i believe there are standards that condo corps. must abide by.
 
You need to look at the Reserve Fund Study. A fund of $5 million can be too low if there is lots of expensive stuff to do in the near future. A fund of $160K can be more than enough if there is nothing showing up in the RFS as being due to be done. BUT, remember that an RFS is an ESTIMATE of the life-expectancy of building components and an ESTIMATE of the cost of repair/replacement. (RF Studies are carried out by independent professionals, usually engineers, and must be done every 3 years.)
 
Thanks for your reply. My lawyer told me that...the RFS was done in 2009. So they will do it again in 2012.
In 2009's report. The RESERVED FUND should be 320,000 at the end of this fiscal year (Aug, 2011), which means they used too much money. My lawyer did call the manager. He just explained that the reason why they use too much money is because they did the building maintenance (balabalaba....) in advance. He just said...it's OK...and the manage fee might have a minor increase next fiscal year. BUT I do worry about it...I just want to know this kind of situation is normal or abnormal? Thanks again.

PS....I think 320K is reasonable to a 100 units building....and 160K looks too less.....
 
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It is normal that the RFS balance and the actual balance will not agree (in either direction) because the need to replace is an estimate as is the cost. To see if it really matters you need to know what work was 'brought forward" and at what cost. If they replaced the elevators or ?? for $250K ahead of schedule then you still have enough money for other items identified in RFS.

I repeat, it is not the size of the fund (or the building) that is important it is the size of the fund compared to the estimated cost of repairing/replacing items identified in the RFS.
 
Thanks again!

I did ask what work was 'brought forward". BUT it's too hard to remember all of them. The only thing I remember is that they changed the garage door. The total money in RESERVED FUND at the end of previous fiscal year (Aug, 2010) is 190,000. This year (Aug,2010-Aug,2011), there is 50,000 added into RESERVED FUND, BUT they need spend 80,000.

That's the reason I said there is 160K left in the reserved fund.

BTW: this building is 11 years old.
 
As mentioned, there is no "right" answer. A reserve fund study must be done every three years by a qualified person (usually an engineer) and must be attached to the Status Certificate. The latter is required to be supplied to a purchaser when buying the unit.

A lawyer may or may not have enough knowledge to interpret the study. But in any case, the study is based on a number of estimates. The age and remaining life of the various components of the building must be estimated. Another major estimate is the rate of return that the money in the fund will earn. In recent years, interest rates have been historically low, which reduces investment returns.

Don't rely on so-called rules of thumb. A building which is only a few years old probably will require relatively little in the reserve fund, while an older building requires more, particularly if maintenance has been neglected. (see some recent stories about a building in Rexdale where a huge backlog of deferred maintenance has built up.)

The best advice, although pretty unscientific: wander around the building and try to judge for yourself if the place appears to be well maintained. If over 20 or 25 years old, try to determine if the underground garage will need renovation soon. This is a costly item. Other big items include balconies (if any) and elevators.

The condo board of directors is required by law to put into place a specific plan to fund shortfalls. However, people don;t always do as they are supposed to, as recent experience at Panorama Court has shown. (Personally, I'd like to know how they got away with that for so long.)
 
Thanks for the detail reply. This building is 11 years old. I DO walk around the building several times (I lived closed to this building). According to what I saw, I think the external wall is well maintained. BUT I CANNOT check the underground garage.

Tomorrow is the last day to make the decision. I think I will go for it.

Thanks, a lot.
 
around 300 units or so. in the past three years, we have had our lobby, elevators, hallways and recreation centre modernized, and our garage ramp redone. i don't foresee anything else major coming up (except maybe having our rooftop "garden" turned into a proper green roof), so i'm hoping that the fund will grow for a while before the outside of the condo is reclad (it looks dated compared to the MET condos next door).
 
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