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The Shortfall of Condo Reserve Fund Studies and What To Do If Your Condo Corporation Needs to Borrow Money

Man calculating

In Ontario's current real estate market, condominiums have become a popular housing choice for many. However, condo corporations are finding themselves in a financial bind, often due to an array (or even combination) of issues, including: the rising costs of maintenance and repairs, years of prioritizing low maintenance fees over financial sustainability, lack of preventative maintenance, or even the excessive delay of major maintenance and repairs.


The rising costs, shortfall of finances, and lack of adherence to condo reserve fund studies has become a concerning issue, leaving many condo corporations struggling to cover necessary expenses when emergencies arise or capital projects come due.


If your condo corporation is facing financial challenges, levying a Special Assessment may be required and borrowing money may be a viable solution to help pay for the Special Assessment. But where do you start as a property manager, board memb