Strata Reserve Planning assisted the University of BC (Real Estate Division, Sauder School of Business) with valuation theory for Depreciation Reports (Reserve Studies) for distance education material for Realtors and Property Managers in BC and Appraisers in Canada.
But we did not do this alone.
Our methodology was reviewed by CHOA (Condominium Homeowners Association), the largest condominium homeowners association in BC, who referred us to the Ministry of Housing (Deputy Minister Housing Policy), where comments were absorbed into the theory. We also were allowed to provide a seminar to CMHC (Canadian Mortgage Housing Corporation) on analysis of reserve funds.
Based on the concept of Reserve Adequacy (the universally accepted bench-marking tool for Depreciation Reports), Jeremy Bramwell AACI, P.App., CRP, has created the method of determining if the sales price of a Strata Lot (Residential or Commercial) needs a discount due to the Contingency Reserve Fund (CRF), and how much the discount should be, if at all.
Reserve Adequacy is complex specific, taking into account the maintenance of the building in the past and the needs of the future. The ratio changes over time, and provides a performance measurement tool for the Owners, the Council and the Property Manager. It allows the creation of a long term plan to strengthen the CRF and lessen the need for special levies over time.
Strata Reserve Planning is thankful to the efforts of CHOA, UBC and CMHC to achieve what we believe is what Condominium owners want – a consistent financial analysis method that is easy to use and accepted by everyone.
Call us if you would like us to bring this to you.