IVSC Appointment

All of us at Kent Macpherson are proud to recognize [...]

CRA Diversification – examples of how CRAs have successfully diversified their practice.

Article originally appeared in Canadian Property Valuation | Volume 59 | [...]

CMHC 2016 Housing Market Outlook Kelowna CMA released

An expected increase in multiple-family housing starts along with steady [...]

Understanding Reserve Fund Studies

March 11, 2016 as published CPV MAGAZINE 2016 – VOLUME 59 – BOOK 4 Introduction Condominium and strata ownership continues to be a viable housing alternative for many Canadians. To protect the interests of the individual unit owners and the condominium corporations, the majority of Canadian provinces have enacted legislation requiring that condominium corporations partake in a reserve fund study (called a depreciation report in British Columbia). Condominium corporations are referred to as strata corporations in British Columbia, and comply with similar legislated requirements in regards to completing depreciation reports. Contents of the reserve fund study In basic terms, a reserve fund study is a report that assists condominium corporations in understanding what they own, how much money they have, the timing of potential replacements, future costs, and, ultimately, how to pay for the replacements when they are due. A reserve fund study is a financial document that is meant to act as a guide to assist with planning corporate budgets. The study is not a technical audit and does not deal with detailed technical matters or invasive testing. Rather, this document takes a business approach to reserve fund management. A reserve fund study generally includes the following: a physical inventory of all common property (including building systems such as roof systems, exterior walls, pavement and landscaping, etc.); an analysis of the observed condition, actual and effective age, remaining economic life, and current and future replacement costs for each component of common property; a determination of the level of reserves required to meet anticipated future costs; an analysis of the current balance of the reserve fund and how much the condominium corporation has been contributing historically; and development of funding models to assist the strata in reaching its funding goals. The specific requirements vary slightly from province to province, with three cash flow models required in some provinces. […]

Cliff Smirl, AACI P.App awarded Top Appraiser Under 40 Award

The Appraisal Institute of Canada (AIC) is proud to announce [...]

What Is A Depreciation Report or Reserve Fund Study?

A Depreciation Report, also known as a Reserve Fund Study is [...]

Assessment and Tax Appeal

Appealing a commercial property assessment can be a time- consuming [...]

Retaining Objectivity is Critical for an Expert Witness

June 24th, 2013 - The Canadian Property Valuation Magazine, published by [...]