The 2017 Condominium Act Reforms and What They Changed for Reserve Funds

Two new bodies

The Condominium Authority of Ontario was created to provide information, forms and a dispute resolution tribunal. The Condominium Management Regulatory Authority of Ontario took on licensing of condominium managers and management providers — meaning that managing a condominium in Ontario became a licensed occupation rather than an open one.

Form 15 became the Notice of Future Funding

The document a board must send owners after a reserve fund study was renamed. Many boards, managers and status certificate packages still call it Form 15, and both names refer to the same requirement.

The mechanics are worth restating because they are frequently missed:

• The board has 120 days from receiving the study to review it and propose a plan for future funding.
• Within 15 days of proposing that plan, the board must send owners and the auditor a notice summarizing the study, summarizing the plan, and stating where the plan differs from the study.
• The plan is implemented 30 days after it is sent.

That last point deserves attention. A funding plan that departs from the study's recommendation is permitted, but the difference must be disclosed to owners in writing. It is not a private decision of the board.

What did not change

The study cycle itself was untouched: a comprehensive Class 1 study within the first year after registration, then updates at least every three years, alternating between Class 2 (with a site visit) and Class 3 (an update of the numbers).

Why it still matters to boards

Purchasers and their lawyers read status certificates, and the notice of future funding is one of the documents they look for. A corporation that has completed its study but not issued the notice has a gap that shows up at exactly the wrong moment — during a unit sale.