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Condo Reserve Funds Explained: Fees, Funding & Special Assessments | #WeSpeakCondo

Two podcast hosts with mics on a red background; text reads Reserve Fund Secrets and Why Condo Fees Keep Rising.

Episode Description: 

In this episode of #WeSpeakCondo, Nicholas speaks with Romina Facchini from Statis Inc. about condo reserve funds, reserve fund studies, contribution increases, major repairs, and why keeping condo fees artificially low can create serious financial problems later.


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Romina explains the difference between operating and reserve fund expenses, Class 1, Class 2, and Class 3 reserve fund studies, and how planners estimate the future cost of roofs, windows, garages, mechanical equipment, fan coil units, and other common elements.


They also discuss what happens when boards overspend from the reserve fund, postpone necessary contributions, or disregard the funding recommendations in a reserve fund study. Romina shares how these decisions can lead to sudden fee increases, loans, and special assessments for owners.


In this episode, we cover:


  • Operating funds versus reserve funds

  • Class 1, Class 2, and Class 3 reserve fund studies

  • What happens during a reserve fund site inspection

  • Which expenses are reserve fund eligible

  • The difference between repairs and replacements

  • Engineering and consulting fees

  • Why the reserve fund should not be treated as unlimited money

  • When scheduled projects can be postponed

  • Why contributions cannot simply be reduced when work is deferred

  • Mini reserve fund updates after unexpected expenses

  • Fan coil ownership and declaration interpretation

  • Construction inflation and rising replacement costs

  • 30-year versus longer reserve fund projections

  • Why artificially low condo fees eventually catch up with owners

  • What happens when boards reject a recommended funding plan

  • The importance of the reserve fund’s critical year

  • Preventative maintenance and leak tracking

  • Planning for changes to building and fire codes

  • Shared-facilities reserve fund planning

  • How proactive planning can reduce the risk of special assessments


Whether you are a condo board member, property manager, condominium owner, auditor, engineer, or real estate professional, this episode provides a practical explanation of how reserve funds protect condo corporations and their owners.


Guest: Romina Facchini

Company: Statis Inc.

Website: statisinc.ca


Subscribe to #WeSpeakCondo for practical conversations about condo governance, finances, maintenance, engineering, property management, and the issues affecting Ontario condominium communities.


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