Waiting for Amendments About Reserve Funds and Reserve Fund Studies

The Condominium Act, 1998 (the Act) and its regulations in Ontario have undergone various amendments since 2015, introducing changes like the Condominium Authority of Ontario, mandatory training for Directors, Information Certificates, Meeting Pre-Notices, and more. However, several promised amendments and new regulations, particularly related to reserve funds and reserve fund studies, have not been enacted yet. The Stage Two Solutions Report in 2013 recommended several key amendments to reserve fund practices, including proper calculations for first-year contributions, defining an "adequate" reserve fund, including green energy projects in permitted expenditures, and triggering reserve fund study updates when fund balances drop below a prescribed level. Amendments to Sections 93 and 94 of the Act were passed in 2015 but not yet proclaimed in force. The Auditor General's report in 2020 further supported these recommendations and called for additional disclosure by developers, extended reserve fund studies, and stronger requirements for reserve fund contributions. The Ministry of Government and Consumer Services has agreed with the recommendations but indicated the need for consultation with stakeholders and legislative drafting, likely contributing to the delay. The pending amendments are crucial for effective long-term reserve fund planning and condominium buyer protection.