A condominium corporation in Edmonton is planning a major renovation to its parkade, which is common property. The board determined that the existing reserve fund is insufficient to cover the estimated $500,000 cost. What mechanism is typically used to raise the necessary funds for such a shortfall?

Question: A condominium corporation in Edmonton is planning a major renovation to its parkade, which is common property. The board determined that the existing reserve fund is insufficient to cover the estimated $500,000 cost. What mechanism is typically used to raise the necessary funds for such a shortfall?

Answer options:

• Increase the monthly condominium contributions indefinitely for all unit owners.
• Apply for a government grant to cover the renovation costs. ✅ Levy a special assessment against the unit owners.
• Sell a portion of the common property to a developer.

Correct answer: Levy a special assessment against the unit owners.

Explanation: When a condominium corporation's reserve fund is insufficient for major capital repairs or replacements, the typical method for acquiring necessary funds is through a special assessment levied on unit owners, as outlined in the Condominium Property Act and its regulations.