Looming Condo Fee Increases

The Canadian Institute of Actuaries has published a research paper on condominium corporation risk management that provides insight into the status of reserve funds throughout Canada. It states that low reserve fund contributions will likely lead to overwhelming annual increases and require lump-sum payments from owners to cover shortfalls. Reserve fund planning is an area where actuaries are needed to accumulate funds to cover uncertain future payments. Governments should administer a standardized form to condo corporations to gather data so that the situation in the industry can be monitored and adjusted if necessary.