Introducing a new financial planning tool for condos  

Healthy financial planning generally requires annual saving to meet future needs; condominium finances are no different. The Condo Act requires that condo boards maintain a reserve fund that goes toward renewing building assets, planning for building repairs, and to make sure condo finances are on the right track.  

As condo boards plan for the future, they may be considering decarbonization projects to improve resident comfort, increase climate-resilience, and expand building efficiency. New policies like building emissions performance standards (BEPS) will make these considerations a reality, as they require large buildings to meet lower emissions targets gradually over time. TAF has developed an exciting new tool to improve financial planning for these upgrades: Enhanced Reserve Fund Studies.    

Enhanced Reserve Fund Studies 

Enhanced Reserve Fund Studies are intended to align with existing capital planning for condominiums and supplement findings with emissions reduction considerations. In conjunction with completing a typical reserve fund study, the framework for the “enhanced” scope of work consists of three main components:  

Baseline Utility Analysis 

Determining the annual energy and emissions profile of the building is an important first step. This can reveal key characteristics in a building’s performance as well as benchmarking relative to similar buildings.  

Decarbonization Pathway 

Considering the life cycle of existing building components, energy and carbon reduction opportunities are reviewed to assess the pathway to improved building performance and lower emissions.  

Side-by-Side Comparison 

Comparing the decarbonization pathway to the “business-as-usual” standard approach highlights key benefits and insights. Condo boards can use this to compare cost differences and savings needed to fund future capital projects.  

Working with TAF 

The framework for Enhanced Reserve Fund Studies that TAF has created will support condominiums with their capital planning. It also presents a new opportunity for reserve fund planners to deliver this service effectively. TAF’s Retrofit Accelerator is offering up to 70% of the funding needed to complete Enhanced Reserve Fund Studies. 

TAF works closely with condo representatives to outline the scope of work, secures the right consultants, ensures that completed work meets the intents and objectives of the framework, and plans for putting the recommendations into action. TAF is also available to support, through funding and technical services, the retrofit projects that arise as a result of the decarbonization plan. 

Planning ahead with an Enhanced Reserve Fund Study ensures that condos can be strategic about their capital planning, as well as prepare for new policies like BEPS to future-proof their building assets.   

Please share with your networks who may be interested in learning more about Enhanced Reserve Fund Studies. For more information, reach out to: rbon@taf.ca