Reserve Funds

November 26, 2024 Published by Toronto and Area Chapter - By Justin Tudor

An Ode to the Reserve Fund Planner

From the Fall 2024 issue of CCI Toronto Condovoice Magazine.

Justin Tudor adds poet extrordinaire to his long list of accomplishments

Driving to a Board meeting on a dark and rainy night
Preparing to discuss how to get the funding plan right
Contemplating how many members in the room
Confident this meeting would have been better on Zoom

Mercifully, the Board has convened a special meeting
The focus: Reserve Funds, other matters shall be fleeting
Two hours scheduled, much to be discussed
This topic’s important and must not be rushed

Discussing a bit of the Reserve Fund process
What’s needed, what’s spent, and where are the losses
Reviewing the need for more in depth inspection
“Reserve Funds are visual; and this roof needs dissection”

The draft had been provided, but scantily read
Presenting a summary of the path ahead
The building is aging and real work projected
The Condo Act requires the building be protected

An increase in fees, but no special assessment
A reasonable plan to protect their investment
But an air fills the room, the tension enhanced
“I have questions for you, not provided in advance”

“My aunt Mary, can roof this for this less”
Has your aunt Mary, considered the rest?
Has she included the full scope of the replacement
Or is it a loose quote with broad limitations

The non-scoped quote may not align
With the forecasted work, the planner has defined
The planner will draw from industry practices
To estimate the costs with reasonable exactness

“How rigid is this? Is this written in stone?”
The work plan’s a guide, and not referenced alone
Boards should be prudent and monitor distress
If an element has failed, is only part of the test

Can the caulking be done when the windows are cleaned?
Does the unit need replacement, or just parts machined?
The Reserve Fund process can’t include every variable
So Board’s must be sure to leave options on the table

“Can we spread out the increase over ten years”
That wouldn’t be fair to your future peers
The fund won’t be adequate, it’s just a charade
And the reserve fund will update three times a decade

“Let’s partially fund – just to get us through
And deal with the future, when the update comes due”
This is not a plan, but a promise to be
In a worse position when this plan becomes three

Adequate is adequate and we should not pretend
That future owners will increase their spend
On projects that Boards knew about today
But didn’t begin to put funds away.

“Why must I fund projects after I’m gone?”
The legacy of the condo lives on
If not for this rule, where would we be?
Special assessments only! (to infinity)

The Legislation, it seems, has created the creed
That Ontario Condos will have the funding they need
For 30-year foreseeable major costs required,
Today, those funds must start being acquired

“Should we look ahead to 50+ years?”
Yes – it’s standard practice to assuage fears
Major work costs beyond the 30-year threshold
Should begin funding now, before they are too old

“If we spread out the project over 4 phases
Won’t that limit the amount of actual raises?”
When practical, this can, be a good approach
But do not just fake it, when it matters most

If the work can’t be done in multiple blocks
Don’t fund it that way, or you’re in for some shocks
Don’t smooth out a cost just to lower your fee
You will buy some time, but at great costs, you’ll see

“We’ve created our own plan” extols the
Board Not fully funded, but one we can afford”
It rarely conforms to the legislation
“I won’t endorse it, I have reservations”

“I’ve provided my opinion and urge you to heed it
My counsel, as always, is there if you need it
I am a planner, I am not a minion;
And this, of course, is not legal opinion”

A good planner’s job should some days be hard
Lest they cop-out and their futures be tarred
Principled approach and knowledge at minimum
Is required to maintain aging condominium

Wrapping up the meeting and resolving to issue
An updated draft that the Board can commit to
A successful meeting – neither bumps nor scrapes
The planner moves on; not all heroes wear capes


Justin Tudor, P. Eng., is the President and Senior Project Manager at Keller Engineering, a multi-discipline building science and envelope firm which has been providing tailored engineering investigatory and project management services with a focus on condominium restoration since 1982.

He has more than 15 years of experience in the field of building science and structural engineering. Justin has overseen and completed hundreds of reserve fund studies, building conditions assessments and technical audits, while leading building element investigation including odour transfers, cladding failures, water infiltration, concrete, masonry deterioration and membrane replacements.

As a contract administrator, Justin prepares drawings and specifications for the structural rehabilitations, window and roofing replacements, parking renewals, and envelope restorations.

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