Reserve Fund Study Compliance with Act 16 Service

The study of the reserve fund is a requirement of Law 16. Its purpose is to promote the sound management of co-ownerships in Quebec.

This assessment determines the provisional budget for preventive maintenance: major repairs and replacement of common areas.

Thus, it helps avoid special contributions.

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WHY ENTRUST US WITH THE RESERVE FUND STUDY FOR YOUR « CONDOMINIUM »

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Our studies are comprehensive and concise. They are therefore easy to understand and present to your condominium association.

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We have in-depth knowledge of construction, cost evaluation and financial projections. So you are in good hands.

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You will receive a customizable spreadsheet. This will enable you to keep the assessment up to date and reduce your review costs in 5 years' time.

Only experts with skills in property management, engineering or finance can carry out the contingency fund study.

For the sake of uniformity and rigor, our reserve fund studies are aligned with the requirements of the law on co-ownership and the recommendations of the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ).

SPECIALIZATION

IN SMALL CO-OWNERSHIPS

We work a lot with small condominiums.

We help administrators implement best practices in property management and administration. We offer them coaching at competitive rates.

Among other things, we offer group rates for identical buildings located in the same neighborhood.

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FREQUENTLY ASKED QUESTIONS

  • The study of the contingency fund has been enshrined in the Civil Code of Québec since 1994 (article 1071).

    However, it becomes compulsory with Law 16 due to frequent underfunding of co-ownerships.

    Sources

  • According to the RGCQ, the contingency fund study must cover 25 years. This promotes realistic and equitable planning between generations.

    Some major expenses, however, may require a financing plan for more than 25 years. Nevertheless, this plan should not exceed 60 years.

    Boree's experts carry out studies with a 25-year horizon.

    Example

    The roof of a small apartment building with 6 units needs to be replaced in 25 years.

    To ensure fairness between generations, each owner contributes 1/25th of the replacement cost each year.

    So if one of the owners sells after 15 years, they will have financed 60% of the cost of the roof. The new owner will therefore contribute 40%.

    This approach, recommended by the RGCQ, ensures a fair distribution of costs. Without imposing sudden or excessive contributions.

  • We will go to the premises to identify the components of the building and the documents to be analyzed.

    Then, we will evaluate the costs in order to produce a 25-year financial plan.

    What you will do:

    • You will arrange a time with us to visit your building.

    • You will send us the documents required through our secure portal.

    What we will do:

    • We will give you a maintenance logbook, included with our contingency fund studies.

    • We will make your financial projections, which determine your annual contributions.

    • We will provide you with a multi-year financing plan (MFP) to ensure that the contributions do indeed cover the expected expenses. In short, we will estimate the lifespan and the replacement or repair costs of the components. Then, we will propose different contribution scenarios to guarantee the necessary funds for major work.

  • Here is the list of documents and information that we will ask you for.

    • Declaration of co-ownership, easements and amendments

    • Plans and specifications

    • History of works and invoices

    • Tenders (future works)

    • Expert reports (Law 141, Law 122, inspections, etc.)

    • Financial statements

    • Cadastral plans

    • Name of the syndicate and address of the co-ownership at the REQ

    • Year of construction

    • Number of units

    • Number of indoor and outdoor parking spaces

    • Annual contribution and accumulated amount in the contingency fund

    • Value of the building and reconstruction value

    Don't have all these documents? No problem. Only the declaration of co-ownership is mandatory.

  • In most cases, our contingency fund studies are delivered in 90 days or less after the site visit.

  • Yes, we will be happy to accompany you to your board of directors.

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OUR MISSION?                

TO HELP YOU MANAGE

YOUR CO-OWNED PROPERTY

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Act 16 Compliance Resources