The condominium corporation for 'Maple Gardens' in Lethbridge received its updated Reserve Fund Study (RFS). The study recommended significant roof replacement in 5 years, estimated at $300,000, and boiler replacement in 3 years, estimated at $150,000. Current annual contributions to the reserve fund total $60,000. What is the immediate implication of this study for the unit owners?

Question: The condominium corporation for 'Maple Gardens' in Lethbridge received its updated Reserve Fund Study (RFS). The study recommended significant roof replacement in 5 years, estimated at $300,000, and boiler replacement in 3 years, estimated at $150,000. Current annual contributions to the reserve fund total $60,000. What is the immediate implication of this study for the unit owners?

Answer options: ✅ The condominium corporation will need to hold a special general meeting to approve a special assessment or adjust contributions to meet the forecasted expenditures.

• The RFS is merely a suggestion and does not require any action from the condominium corporation.
• All unit owners must immediately pay their proportionate share of the total $450,000 recommended repairs.
• The condominium corporation must apply for a provincial grant to cover the entire cost of repairs.

Correct answer: The condominium corporation will need to hold a special general meeting to approve a special assessment or adjust contributions to meet the forecasted expenditures.

Explanation: A Reserve Fund Study (RFS) provides a financial plan for future capital expenses. If the current fund is insufficient for projected expenditures, the condominium corporation must implement a plan to address the shortfall, which typically involves adjusting contributions or levying special assessments, as mandated by the Condominium Property Act.