Skip to main content

Ontario · Condominium Act, 1998

Reserve Fund Studies for Ontario condominium corporations

A 30-year plan for the major repairs your corporation will face — what they will cost, when they fall due, and what owners must contribute so the money is there.

Required
Within 1 year of registrationthen updated at least every 3 years
Classes
Class 1, 2 and 3Class 2 and 3 alternate
Prepared by
Licensed P.Engsealed, and accountable for the report
Deliverable
30-year funding planplus Notice of Future Funding (Form 15)

What the funding plan looks like

The study models the fund year by year against the repairs ahead. This example shows a corporation whose current contributions run out in year 13 — the point at which a special assessment becomes the only remaining option.

Recommended contribution Phased increase Current contribution Major expenditure
$-0.4M$0.0M$0.5M$1.0M$1.5M Fund exhausted, year 13 special assessment or borrowing 051015202530 YEAR OF STUDY PERIOD

Swipe the chart to see the full 30 years

Illustrative 30-year projection. Every study we prepare includes three funding scenarios so the board can compare, as the Condominium Act requires.

When each component falls due

Each major component is inventoried, inspected and given a remaining service life. The result is a schedule the board can plan against, rather than a surprise.

YR 0YR 5YR 10YR 15YR 20YR 25YR 30Roof membraneWindows & sealantsElevators (modernization)Parking garage membraneBoilers / HVACBalcony guardsAsphalt & site worksCorridor finishes

Swipe the chart to see the full 30 years

Bars show remaining service life; the gold marker is the year replacement is projected. Illustrative example for a mid-rise residential corporation.

Which condominiums need a study

Every condominium corporation registered in Ontario needs a reserve fund study. What differs is the scope, and two things determine it: the legal type of the corporation, which decides what the common elements are, and the use of the property, which decides how those elements wear.

Most commonStandard condominium

High-rise towers, mid-rise blocks and townhouse complexes. Common elements include the site and the building — envelope, roof, balconies, corridors, garage, and the shared mechanical and electrical systems.

ResidentialCommercialIndustrial
Site onlyCommon elements condominium

The homes are freehold, tied to the corporation as Parcels of Tied Land (POTLs). The corporation owns only the common elements — private roads, walkways, lighting, retaining walls and site services. No building envelope in the study.

Residential
Owners build their ownVacant land condominium

The units are parcels of vacant land at registration; each owner builds the house on their own unit. The corporation is responsible for the roads, services and site works — so the study covers infrastructure rather than buildings, and the timing of registration matters because units may still be undeveloped.

Residential
Built in stagesPhased condominium

Registered in phases as construction proceeds, with units and common elements added over time. The study has to account for a corporation whose asset base is still growing, and for components of different ages within one property.

ResidentialCommercial
Land is leasedLeasehold condominium

The corporation holds a leasehold interest rather than freehold title, often on institutional or public land. The remaining lease term is a real constraint on the funding plan: replacing a component with a 30-year life on a lease with 18 years left is a different decision.

ResidentialCommercial
Not a condominiumCo-operative corporation

Co-ops are not required to complete a reserve fund study, though many do — usually called a Capital Replacement Plan. Common elements often include unit interiors, which adds substantially to the work.

Residential

And the use matters too

The same legal type behaves differently depending on what happens inside it.

Residential Amenities, corridors, balconies and elevators drive the budget. Heavy daily use of finishes, and owners who feel every contribution increase directly.
Commercial Storefronts, signage bands, parking fields and HVAC serving tenants. Unit owners are businesses, so contributions are weighed against operating costs.
Industrial Flat metal roofs, overhead doors, truck courts and heavy asphalt. Fewer components, but replacement costs concentrated in a handful of large items.

Your corporation's name tells you the type

Ontario corporations are named for the land registry division they sit in and the type they were registered as — so the name on your status certificate identifies both.

Toronto  Standard  Condominium Corporation No. 2417

WhereLand registry divisionToronto, Peel, York Region, Durham, Ottawa-Carleton, Simcoe, Waterloo and so on.
What typeStandard, Common Elements, Vacant Land, Phased or LeaseholdCorporations registered before May 2001 predate this convention and carry no type word.
Which oneSequential numberAssigned in order of registration within that division — a rough guide to the building's age.
PrefixStands forWhat it tells you
TSCCToronto Standard Condominium CorporationStandard type, Toronto division, registered 2001 or later
MTCCMetropolitan Toronto Condominium CorporationPre-2001 registration — often a 1970s to 1990s building
TCECCToronto Common Elements Condominium CorporationCommon elements only; units are freehold POTLs
YRSCCYork Region Standard Condominium CorporationStandard type in Vaughan, Markham, Richmond Hill and area
PSCC / PCCPeel Standard / Peel Condominium CorporationMississauga and Brampton; PCC indicates a pre-2001 registration
DSCCDurham Standard Condominium CorporationOshawa, Whitby, Ajax, Pickering
OCSCC / CCCOttawa-Carleton Standard / Carleton Condominium CorporationOttawa and eastern Ontario
SCCSimcoe Condominium CorporationBarrie, Midland, Orillia and Simcoe County
WSCCWaterloo Standard Condominium CorporationKitchener, Waterloo and Cambridge
HSCC / WCCHalton Standard / Wentworth Condominium CorporationHalton municipalities and Hamilton respectively

If you are unsure which type your corporation is, send us the name and we will tell you what the study needs to cover. Working in British Columbia instead? The equivalent document there is a depreciation report.

The three-year cycle

Ontario requires a comprehensive study in the first year, then updates at least every three years, alternating between a study with a site visit and one without.

Class 1 — comprehensive Class 2 — update with site visit Class 3 — update without site visit
3 YEARS3 YEARS3 YEARS3 YEARS3 YEARSYEAR 1Class 1ComprehensiveYEAR 4Class 3Update, no site visitYEAR 7Class 2Update, site visitYEAR 10Class 3Update, no site visitYEAR 13Class 2Update, site visitYEAR 16Class 3Update, no site visit…AND SO ON, EVERY 3 YEARS

Swipe the chart to see the full 30 years

The first study is due within one year of registration. Updates follow at least every three years, alternating between an update with a site visit and one without.

What each class includes

The class determines the scope. All three end in a funding plan and a Notice of Future Funding. For a fuller explanation see classes of reserve fund studies, or what your corporation's prefix means.

Included in the studyClass 1Class 2Class 3
Site visitYesYesNo
Condition assessment (visual inspection)YesYesNo
Component inventoryYesNoNo
Remaining life expectancy of componentsYesYesNo
Evaluation of fund statusYesYesYes
Reserve funding planYesYesYes
Notice of Future Funding (Form 15)YesYesYes

How we do it

Typically four to eight weeks, depending on the size of the property and how quickly documents come together.

01Document reviewDeclaration, prior study, audited statements, maintenance records.
02Site inspectionVisual assessment of every common element, with your staff.
03Inventory & costingQuantities, remaining life, and replacement costs.
04Funding scenariosThree 30-year models for the board to compare.
05Sealed reportDraft for review, then the final sealed study and Form 15.

Components we assess

Scope depends on your declaration — what the corporation is responsible for, not what it happens to own.

Roofing
Windows & doors
Elevators
Parking garage
HVAC & boilers
Electrical
Site & landscaping
Building envelope

Related Insights

Reserve fund requirements have changed more than once since 2001. Our Insights timeline records the regulatory and standards changes affecting this work, in order.

Common questions

Reserve Fund Study Questions

Is a reserve fund study mandatory in Ontario?

Yes. Under the Condominium Act, 1998, every condominium corporation in Ontario must complete a comprehensive reserve fund study within one year of registration and update it at least every three years.

How often must a reserve fund study be updated?

At least every three years. Updates alternate between a Class 2 study, which includes a site visit, and a Class 3 study, which updates the financial projection without one.

What is the difference between Class 1, Class 2 and Class 3?

Class 1 is the comprehensive study, including a full component inventory and site visit. Class 2 is an update with a site visit and revised condition assessment. Class 3 is an update without a site visit. All three produce a funding plan and a Notice of Future Funding.

Who can prepare a reserve fund study in Ontario?

A qualified person as defined in the regulation, most commonly a licensed Professional Engineer or an architect. Every study we prepare is sealed by a licensed Professional Engineer.

How long does a reserve fund study take?

Typically four to eight weeks, depending on the size and complexity of the property and how quickly the corporation's documents are available. Larger properties with multiple buildings take longer.

What is the Notice of Future Funding, or Form 15?

It is the notice the board must send owners and the auditor after receiving the study. The board has 120 days to propose a funding plan, then 15 days to send the notice summarising the study, the plan, and any differences between them.

Do industrial and commercial condominiums need a reserve fund study?

Yes. The requirement applies to every condominium corporation registered in Ontario regardless of use. What differs is the scope, because the common elements differ between residential, commercial and industrial properties.

What is a special assessment and how does a study help avoid one?

A special assessment is a one-time charge levied on owners when the reserve fund cannot cover a necessary repair. A current study identifies future costs early enough for contributions to be adjusted gradually instead.

Due for a Reserve Fund Study?

Send us the corporation name and the property address — we'll confirm which class is due and reply with a fixed quote, usually within one business day.