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Can I Pay for This From the Reserve Fund?

Sally Thompson, Warren Kleiner
Publication date:
February 2, 2022
Article Summary: 

The article discusses the rules and complexities related to using reserve funds for common element repairs and replacements in Ontario condominiums. According to the Ontario Condominium Act, reserve funds should only be used for major repair or replacement of common elements and assets of the corporation. The act also outlines provisions related to additions, alterations, and improvements (AAIs) to the common elements and when they can be made without owner consent. However, not all AAIs are reserve-eligible, and boards must exercise caution in using reserve funds for such purposes.

The article highlights some specific scenarios where questions arise, such as replacement that includes an AAI, repair after damage caused by an insured peril, installation of EV charging equipment, and the installation of additional security cameras. The interpretations of these scenarios can vary, and the authors advise seeking legal opinions to avoid potential disputes and litigation.

The importance of adequately funding reserve funds is emphasized, and boards are encouraged to carefully consider whether an expense is reserve-eligible before charging it to the reserve fund. Seeking legal opinions and consulting reserve fund study providers can help make informed decisions and avoid potential financial burdens in the future.


Reserve Fund, Condominiums, Common Elements, Major Repair, Replacement, Additions, Alterations, Improvements, Ontario Condominium Act, Owner Consent, Reserve-Eligible Expenditures, Insurable Events, EV Charging Equipment, Security Cameras, Legal Opinion.

Source Citation: 
Sally Thompson, Warren Kleiner
Can I Pay for This From the Reserve Fund?
February 2, 2022
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