SECTION 14: COST CONSULTANT’S CERTIFICATES OF SUBSTANTIAL COMPLETION
The completion and the individual Certificates Of Substantial Completion, as required under Section 14 of the Alberta Condominium Property Act, is to be performed by a licensed cost consultant; as necessary to access the developer’s purchase closing monies provided in accordance to the Act.
By producing the necessary Section 14 Certificates of Substantial Completion, Aquarius will provide separate certifications, on a per-title basis, as needed by the condominium corporation in accordance with the Alberta Condominium Property Acts and Regulations requirements to conclude the closings for all varieties of condominium units.
This effort will be performed through assessing the remaining costs to complete of the Condominium Plan’s “Common Area” requirements, distributing an inventory of all shared Common Area Costs-to-Complete amongst the assigned unit factors which have been assigned to each individual unit title (per the established condominium surveys and corporation documents).
Through the provision of our professionally executed Section 14 reporting, the purchaser legal sales closings are effectively enabled to transpire; as per the intended business case objectives and also in accordance with all mandated legal parameters outlined within the regulated Condominium Property Act.
RESERVE FUND STUDY & REPORTS
A Reserve Fund Study and Report assembly functions as a critical financial tool; for both property managers and Directors of a Condominium Board. This is achieved through preparing a multi-year funding plan forecast for all future common capital cost expenditures in order to properly determine if an adequate amount of funds will be available to appropriately manage shared depreciating assets; either through replacement or repair.
One of the primary functions of this report will be to calculate the annual contribution amounts required by the condominium corporation’s participants, as needed to fund any major repair items and / or anticipated replacement costs for any of the real property owned by the corporation (or organization); where the repair or replacement is of a nature that does not normally occur annually.
These reports are prepared in order to assess if the accumulated amounts maintained within the Condominium Corporation’s contribution fund are sufficient. These monies are to remain available throughout the life of the property project; as required to address the replacement or repairs of the common elements and assets of the corporation.
This reporting will firstly provide an inventory of all the components within the subject land parcel and buildings that fall within the description of 'common property areas' as outlined by the Alberta Condominium Property Act and Regulation. Specifically these components are defined as “…facilities and property that are intended for common use by the owners". These areas and components are the responsibilities of the condominium corporation; as in accordance to Alberta Condominium Property Act and Regulation.
Secondly, our firm will identify common property components and present them within our reporting, in an effort to establish an adequate fund allowance amount. The allowance is to be based upon the repair or replacement costs of the condominium shareholders' common property components and is to be collected by the condominium corporation from each shareholder as defined within their adopted Reserve Fund Plan. This ΄fund΄ will then be maintained over a thirty year period by the condominium corporation in order to accommodate the segregated capital costs incurred over this time span.
Presented capital costs arise from the depreciated 'common property' building components that require replacement or repair as they reach the end of their functional life-spans. Accumulated funds are to be collected by the corporation from each shareholder, along with other allocated fees the corporation approves through implementation of their adopted Reserve Fund Plan.
As frequently encountered, certain items within our established report’s inventory list may be deemed to have an economic life expectancy of thirty-one years or more. As such, these items will be included within the 'presented inventory' and the annual reserve fund calculations but have been excluded from the capital cost expenditures, as the expected lifetimes for these aspects fall outside of a twenty-five year study period.
The remaining life expectancies and replacement costs for all considered common property items will be assembled within our study (including the appropriately escalated cost amounts) to establish the needed funding as to meet all reserve fund requirements, as depicted within the Alberta Condominium Property Act, Alberta Condominium Property Amendment Act, and the Condominium Property Regulation; along with the considerations within the governance of the proposed changes to the Condominium Property Regulations which take effect in July 2019 and January 2020, respectively.
Furthermore, our analysis will also adjust for an appropriate estimate of inflation when calculating amounts; as based over the course of the thirty year cycle. Recommendations will also be presented so that funds collected over the duration of this term will be maintained in an interest accruing account to address any arising costs.
Our Reserve Fund Study and Report will be prepared for the exclusive use of the nominated 'Condominium Corporation' their own internal purposes to aid in fund allocations and establishing a required Reserve Fund Plan.
At Aquarius Building Consultants, our experienced team of cost specialists will perform under their licensed capacity as Professional Quantity Surveyors to assemble an accurate and reliable Reserve Fund Study & Report.