Government gives more time to "top up" reserve funds

Time February 23, 2010 User John Moher Email Print Comment 0 Comments Share Link

We have learned that CCI and ACMO successfully negotiated an extension to the requirement found in section 33(2) of O.Reg. 48/01 made under the Condominium Act, 1998 (the “Act”) which provides that condominium corporations registered before May 5, 2001 “top up” reserve funds within 10 years of the date on which an initial reserve fund study is conducted. 

The change gives condominium corporations registered before May 5, 2001, 15 years from the date on which an initial reserve fund study is conducted to adequately fund reserve funds in accordance with section 94(8) of the Act, up 5 years from the current 10-year requirement. 

According to a CCI/ACMO joint announcement, the government believes this change will give condominium boards more flexibility with their budgets and assist in taking some pressure off the need to increase common expenses, or to specially assess unit owners.

The change should also assist in reducing the impact of HST on pre-new Act condominium corporations, as boards of these condominium corporations will have an additional 5 years to collect any shortfall in revenue required to adequately fund reserve funds in light of the significant impact HST will have on reserve funds in Ontario.

This important change is scheduled to come into force on July 1, 2010. Congratulations to CCI and ACMO on this important legislative achievement!

Tags: reserve funds
Categories: General Interest

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