Reserve Funds

November 12, 2025 Published by Golden Horseshoe Chapter - By Craig McMillan

Blueprints in the Sand: Tools for Funding Condos

From the Volume 25, Fall 2025 issue of the CCI GHC Condo News Magazine

Condominium living offers many advantages—shared amenities, collective responsibility for maintenance, and a sense of community. Yet, behind the scenes, Boards of Directors and property managers are tasked with a weighty responsibility: ensuring that the corporation remains financially stable while meeting its legal obligations. When unexpected financial difficulties arise—whether through sudden repair needs, budget shortfalls, or unforeseen market shifts—the challenge can feel daunting. This session was led by David Heska, Senior Director of Building Sciences at WSP Canada with fellow panellists Edmond Leong, Partner at Tator, Rose & Leong and Craig McMillan President at Maple Ridge Community Management. They shared with managers and Board members practical knowledge and real-life insights into how to navigate these complex situations.

The panel featured a trio of experts: an engineer, an auditor, and an experienced property manager. Together, they brought a holistic perspective on condominium financial sustainability. By drawing on real Reserve Fund scenarios from condominiums they had directly worked with.

The central theme of the panel discussion was the importance of proper Reserve Fund Planning. Properly funded reserves are the backbone of a healthy condominium corporation, yet many communities struggle to keep contributions and spending at sustainable levels. The engineer’s perspective shed light on how Reserve Studies forecast the lifespan of building systems and infrastructure, and why delaying contributions or underfunding reserves can have long-term consequences. Attendees learned not only the mechanics of Reserve Fund Planning, but also how to communicate its importance to owners who may be resistant to higher fees.

The session also addressed the sensitive topic of special assessments. While no Board wants to levy unexpected costs on owners, special assessments often become necessary when reserves are inadequate, or urgent repairs cannot be postponed. The auditor on the panel discussed the financial reporting and compliance requirements that accompany such decisions, emphasizing transparency and accuracy in communication. By examining case studies, attendees gained an appreciation for how careful documentation and clear messaging can minimize conflict and build trust during difficult conversations.

Beyond mandatory expenses, Boards must also weigh discretionary spending. Amenity upgrades, landscaping enhancements, and other “nice-to-have” projects often compete with essential repairs for limited funds. The property manager’s role in advising the Board on prioritization was be highlighted, showcasing strategies to balance owner expectations with fiscal responsibility. The panel shared stories where communities learned, sometimes the hard way, how to differentiate between wants and needs when financial resources are constrained.

Perhaps most importantly, Blueprints in the Sand underscored the importance of collaboration and communication with the owners of the Condominium, Engineers, Auditors, and Property Managers each bring specialized knowledge, but success lies in aligning their perspectives with the Board’s governance role. By candidly sharing both successes and growing pains, the panel illustrated how open communication and mutual respect can transform financial challenges into opportunities for stronger governance and healthier communities.

In the end, attendees walked away with more than technical knowledge—they gained a deeper understanding of how to lead their communities through financial turbulence with confidence. Whether dealing with a failing roof, unexpected inflationary pressures, or owner resistance to fee increases, Boards and managers left better prepared to deal with Reserve Fund challenges.

Craig McMillan, RCM, ACCI, LCCI, CMCA, CAPM, President Maple Ridge Community Management – An Associa® Company