Condo Case - Investing the Reserve Fund

The Spring 2023 issue of CCI South Alberta CCI Review discusses the importance of properly investing the capital property reserve fund in condominium corporations. With over 20 percent of condo fees flowing into the reserve fund and rising inflation leading to higher interest rates, investing the money becomes crucial to keep up with repair and replacement costs. The Condominium Property Act (CPA) restricts the types of investments that condo boards can make to avoid risky investments. The CPA provides a list of authorized investments, but many condo owners further restrict the list in their bylaws for a conservative approach. The article emphasizes the need for an investment policy and strategy, prioritizing security of capital and liquidity over high returns. Part 2 will cover investment strategies and practical implementation of the investment policy.