Quote:
Originally Posted by GGG
I just want to point out here that if your condo has a 450k gap between what it can recover and the deductible then the reserve fund needs a 450k line item to pay that deductible.
When I was on my board long ago the number of people who asked to keep Condo fees low and to underfund things was crazy. I think tightening up rules around reserve funds and what needs to be covered in terms of unexpected, uninsured items needs to happen.
This needs to happen earlier in life as well. This will decrease the sale prices of Condos as fees would be higher but for any new owners this is a good trade.
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Technically under
Section 38(1) of the Act, the Reserve Fund is more for capital items (i.e. physical assets of common property i.e. the boiler). The saving of money for a deductible you talk about should probably happen in the annual operating budget which of course sets the monthly condo fees.
Other than that technicality - you're exactly bang on - that's one thing that should be mandated in the Act IMHO. Unfortunately, as you say - that tends to spike monthly fees and the cheapskates would lose it and vote out the Board.
Which is exemplifies the turnover problem with condos. Get in - live cheap with low fees - and get out before the big ticket items come up for replacement in the condo.