Reserve funds and budgets: studies, plans and reports to owners in Alberta condos

A reserve fund is the fund a corporation must set up and keep up for major repairs and replacement. Section 38(1) of the Condominium Property Act (consolidation current to 14 May 2026) says it must be reasonably sufficient for work that does not normally occur annually. Alberta.ca says it is not to be used for ongoing maintenance, such as yard work or window cleaning.

Service Alberta's March 2026 tip sheet says buildings need repairs and maintenance as they age, for example replacing the roof of the complex. It says the same is true of common property such as the parking-lot asphalt, underground utilities or services, and landscaping. These are examples, not a list of reserve fund items.

Next step. Ask for the corporation's latest reserve fund report and plan, and read them before the next meeting.

Sources: Condominium Property Act, Reserve funds, Owning a Condominium

It means the property to which section 38(1) of the Condominium Property Act applies. Section 21(1)(b) of the Condominium Property Regulation (consolidation current to 15 February 2026) defines the term that way for Part 2, which deals with the capital replacement reserve fund.

Section 38(1) concerns major repairs and replacement of the corporation's property, the common property and managed property, where the repair or replacement is of a nature that does not normally occur annually. The definition lists no components and sets no dollar threshold.

Next step. When reading the study, ask the provider why each item is, or is not, treated as depreciating property.

Sources: Condominium Property Regulation, Condominium Property Act

At least every 5 years. Alberta.ca says a condominium reserve fund study must be completed no less than every 5 years and should consider a 30-year timeframe. Section 30 of the Condominium Property Regulation (consolidation current to 15 February 2026) sets the deadline. The corporation must carry out a new study, prepare a report and approve a plan on or before 5 years from the day the most recent plan was approved.

This answer covers the repeat cycle only. The first study has its own deadline, counted from the registration of the condominium plan.

Next step. Find the date the current reserve fund plan was approved and set a reminder for the 5-year deadline.

Sources: Reserve funds, Condominium Property Regulation

No later than 2 years after the condominium plan is registered. Section 24 of the Condominium Property Regulation (consolidation current to 15 February 2026) says the corporation must meet the requirements of section 23(1) to (6) by then.

Those subsections cover the study, the provider's written report, the board's approval of a reserve fund plan and copies of the approved plan for owners. After that, section 30 requires a new study, report and plan on or before 5 years from the day the most recent plan was approved. Sections 25 and 26 of the Regulation deal separately with some plans, including conversions, so this deadline may not fit every corporation.

Next step. Find the date the condominium plan was registered and note the date 2 years after it; ask the corporation's lawyer whether any other section of the Regulation changes the deadline for your plan.

Sources: Condominium Property Regulation

A study must, among other things, list the depreciating property that may need repair or replacement within the next 30 years or longer. Section 23(1) of the Condominium Property Regulation (consolidation current to 15 February 2026) requires this. The Regulation also requires the study to give that property's present condition and to estimate when each component will need repair or replacement.

Section 23(2) also requires the provider to make an on-site visual inspection of all visible components, interview the board members and review relevant documents, including the condominium plan, the converted property study or building assessment report if applicable, construction documents and maintenance records. The provider must interview the condominium manager, if any, or any other person, to the extent the provider considers necessary. Nothing in the sources read for this page requires a building-envelope condition assessment or invasive testing as part of the study.

Next step. If the board needs the walls tested, start with the stucco and envelope questions.

Sources: Condominium Property Regulation

Only an individual on the Regulation's list of qualified persons who is not barred, or, under section 22, a corporation whose condominium plan has not more than 12 units, if a special resolution authorizes it. Section 21.1(1)(a) of the Condominium Property Regulation (consolidation current to 15 February 2026) says an individual is not permitted to act as a reserve fund study provider unless the individual is on that list, subject to section 21.1(2).

The list includes a professional engineer, a registered architect, and an individual whose training or qualifications are recognized by the Director. Being on it is necessary but not enough: other requirements apply, and section 21.1(2) bars some people whatever their qualifications. Alberta.ca's condominium information page says other training and qualifications once recognized by Service Alberta and Red Tape Reduction have since expired; it does not say whether the Director has recognized any new training since.

Next step. Ask any provider which listed qualification they hold, and check that none of the groups barred by section 21.1(2) applies to them.

Sources: Condominium Property Regulation, Condominium information

Section 21.1(2) of the Condominium Property Regulation (consolidation current to 15 February 2026) lists people who are not permitted to act as a provider. They include a director, officer or employee of the corporation, a condominium manager under a management agreement with the corporation, an owner of a unit on the parcel and an occupant of a unit on the parcel.

That list names no category for a contractor. Service Alberta's 27 March 2026 fact sheet says people with a conflict of interest, or a potential one, cannot be the provider. It gives as examples anyone with a financial interest in the property, such as a developer, a current or recent contractor or a board member. Section 22 separately makes an exception to the section 21.1(2) list for a corporation whose condominium plan has not more than 12 units, if a special resolution authorizes it.

Next step. Ask the corporation's lawyer before engaging a provider who is a current or recent contractor or has a financial interest in the property.

Sources: Condominium Property Regulation, Reserve fund study providers

Yes, if the condominium plan consists of not more than 12 units and a special resolution authorizes it. Section 22 of the Condominium Property Regulation (consolidation current to 15 February 2026) says that, notwithstanding section 21.1(2), the corporation may then carry out the functions of a reserve fund study provider.

Section 21.1(2) otherwise bars directors, officers, employees, owners and occupants, among others, from acting as the provider. Section 22 does not say a corporation acting as its own provider is excused from the rules for the study and report.

Next step. Check the unit count on the condominium plan before putting the question to owners.

Sources: Condominium Property Regulation

In its section on who can do a reserve fund study, Service Alberta's March 2026 tip sheet says the corporation may want to ask for verification of the person's qualifications, ask for proof of liability insurance, and ask for and check references. It also advises obtaining quotes for a reserve fund study, as for any other contract.

The tip sheet adds that the corporation may want to examine one of the person's other reserve fund study reports to see if it meets the corporation's needs and is understandable. The corporation may also want to interview the person, ask what follow-up assistance the person will provide, and ask about fees and any additional costs and about timelines for completing the study and report. This is advice, not a legal requirement.

Next step. Put the same questions to each provider and ask for the answers in writing.

Sources: Owning a Condominium

No. Service Alberta's March 2026 tip sheet says the reserve fund study is prepared for use by the condominium board, owners and buyers and is not reviewed by the government.

The tip sheet does not say the study is optional. The Regulation (consolidation current to 15 February 2026) requires a new study on or before 5 years from the day the most recent plan was approved, and requires the board to review the report before approving a plan.

Next step. Have every director read the report before the board approves the plan, and put questions to the provider.

Sources: Owning a Condominium, Condominium Property Regulation

Yes. Section 38(1.01) of the Condominium Property Act (consolidation current to 14 May 2026) allows funds from a corporation's reserve fund to be used for a reserve fund study and report.

The same provision allows the fund to be used for any other report prepared by an expert examining the condition of the corporation's property, the common property and managed property.

Next step. Ask the corporation's lawyer whether a particular report fits that wording before paying for it from the fund; the stucco and envelope questions cover an engineer's envelope report.

Sources: Condominium Property Act

The provider gives the board a written report, and the board must review it and approve a reserve fund plan (section 23(4)). The corporation must also give owners copies of the approved plan, for their information. Section 23(6) of the Condominium Property Regulation (consolidation current to 15 February 2026) requires this before the corporation collects any funds for the matters in the report that are to be carried out under it.

The report must set out the provider's qualifications, a signed statement that the provider is a reserve fund study provider and no grounds of disqualification apply, the study's findings and any other matters the provider considers relevant (section 23(3)). Section 23(6) speaks of copies for the owners' information and does not mention an owner vote on the plan.

Next step. Send owners the approved plan before any collection for the work starts and keep a record of when it went out; the board duties questions say how long to keep the report and plan.

Sources: Condominium Property Regulation

The plan must set out the method of and amounts needed for funding and maintaining the reserve fund. It must also provide that, based on the reserve fund report, sufficient funds will be available to repair or replace the depreciating property in accordance with the report. Those are sections 23(4) and 23(5) of the Condominium Property Regulation (consolidation current to 15 February 2026).

Section 23(5) says the plan must provide for those funds to be available by means of owners' contributions or any other method that is reasonable in the circumstances. The sources read for this page contain no definition of "sufficient" or "reasonable in the circumstances".

Next step. Ask the provider or the corporation's lawyer how the plan shows that sufficient funds will be available for each item in the report.

Sources: Condominium Property Regulation

Yes, say Alberta.ca and Service Alberta, but both are guidance. Alberta.ca says a corporation may decide to complete a study sooner or more frequently, depending on its needs. Service Alberta's March 2026 tip sheet says a reserve fund plan may be updated by the board each year.

Section 30 of the Condominium Property Regulation (consolidation current to 15 February 2026) separately requires a new study, report and plan on or before 5 years from the day the most recent plan was approved. Alberta.ca's page does not say that an extra study restarts the 5-year period.

Next step. Ask the corporation's lawyer whether an updated plan or an early study changes the 5-year deadline before the board relies on it.

Sources: Reserve funds, Owning a Condominium, Condominium Property Regulation

An appropriate amount; the sources read for this page contain no minimum dollar figure or percentage of replacement cost. Section 27(1) of the Condominium Property Regulation (consolidation current to 15 February 2026) says a corporation must maintain the funding of its reserve fund at an appropriate amount or in an appropriate state. The aim is that section 38 of the Act continues to be met.

The sources read for this page contain no definition of "appropriate". Section 39(1) of the Condominium Property Act (consolidation current to 14 May 2026) lets the board set the regular contributions to the reserve fund by resolution. CMHC's 2018 condominium buyer's guide is a federal guide for buyers across Canada, not Alberta law. It says the amount that should be in the fund depends on the condition and life expectancy of the common elements and the estimated cost to repair or replace them.

Next step. Compare what owners contribute each period with the amounts the approved reserve fund plan says are needed.

Sources: Condominium Property Regulation, Condominium Property Act, Frequently asked questions

The corporation must prepare a reserve fund annual report each fiscal year. It must show at least the fund's balance at the end of the previous fiscal year and the payments in and out, with their sources and uses. It must also list the depreciating property projected to be repaired or replaced this fiscal year, with projected costs. That is section 29(1) of the Condominium Property Regulation (consolidation current to 15 February 2026).

Section 30(4)(b) of the Act (consolidation current to 14 May 2026) requires the corporation to give each owner copies of the financial statements, the annual report on the reserve fund and the annual budget. The copies are due no less than 14 days before the annual general meeting, and the requirement is subject to the regulations.

Next step. Check the annual report on the reserve fund against the approved reserve fund plan before it goes to owners ahead of the annual general meeting.

Sources: Condominium Property Regulation, Condominium Property Act

At least 30 days before the start of the fiscal year the budget applies to. Section 20.51 of the Condominium Property Regulation (consolidation current to 15 February 2026) requires the corporation to provide a copy of the annual budget by then to owners and to mortgagees who have given written notice under section 26(3) of the Act.

If the corporation revises the budget, it must provide a copy of the revised budget to the owners and mortgagees as soon as possible. Section 20.51 applies in addition to section 30(4) of the Act, which, subject to the regulations, also requires the annual budget to go to each owner no less than 14 days before the annual general meeting. Section 20.51 does not say who approves the budget or that owners vote on it.

Next step. Count back 30 days from the first day of the fiscal year to set the date by which the budget must be provided to owners, and keep a record of when it went out.

Sources: Condominium Property Regulation, Condominium Property Act

Not as a general rule. Section 27(2) of the Condominium Property Regulation (consolidation current to 15 February 2026) says reserve fund money is not to be mixed (commingled) with the corporation's operating funds, except to pay for repairs to or replacement of depreciating property. Section 27.1 allows an exception only in a declared emergency, and only if its conditions are met.

Section 27.1(1) applies to a corporation other than one controlled by an interim board. Such a corporation may transfer reserve fund money to the operating fund if the section's conditions are met, for the purpose of temporarily paying for the control, management and administration of its real and personal property, the common property and managed property. Section 27.1(5) says nothing in the section relieves, limits or defers an owner's obligation to pay contributions levied by the board.

Next step. Ask the corporation's lawyer before any money moves between the reserve fund and the operating account.

Sources: Condominium Property Regulation

All four conditions in section 27.1(2) of the Condominium Property Regulation (consolidation current to 15 February 2026) must be met before a corporation may transfer reserve fund money to the operating fund. There must be a declared emergency that remains in effect, lower revenue from contributions than expected as a result of it, a resulting shortfall between revenue received and operating-fund expenditures, and no bylaw prohibition on using the reserve fund in this manner.

The first condition names the kinds of declaration that count, for example a declaration of emergency proclaimed under the Emergencies Act (Canada). Section 27.1(3) also caps the amount. The transfer may not be more than the drop in contribution revenue compared to the revenue expected, the actual shortfall between revenue received and operating-fund expenditures, or any bylaw limit on using the reserve fund in this manner, whichever is less.

Next step. Ask the corporation's lawyer to check the emergency declaration, the cause of the lost revenue and the bylaws against these conditions before the board relies on them.

Sources: Condominium Property Regulation

Before transferring, the board must serve owners a notification, pass a board resolution with a 75% majority of directors eligible to vote, serve a notice confirming that the plan changes have been adopted, and provide owners with the revised plan. Section 27.1(4) of the Condominium Property Regulation (consolidation current to 15 February 2026) sets those steps, and section 27.1(2) allows a transfer only if its conditions are met.

The notification must state the board's intention to transfer and the date it intends to decide, and describe any alternative to transferring that was considered and why it was not adopted. It must include a proposed revision to the reserve fund plan that identifies the amount transferred and a specific repayment plan to repay it within 2 years of the date the declaration or state of emergency has ended. The resolution must authorize the transfer and approve that revision.

Next step. Ask the corporation's lawyer to check each step and the bylaws before the board serves the notification.

Sources: Condominium Property Regulation

Sometimes. Section 38(2) of the Condominium Property Act (consolidation current to 14 May 2026) allows it only with a special resolution, or where necessary to maintain property to comply with health, building and maintenance and occupancy standards as required by law. Enough money must also remain in the fund to meet section 38(1).

The sources read for this page contain no definition of "capital improvement". Service Alberta's March 2026 tip sheet says the corporation must not use the reserve fund for "improvements" unless owners vote by special resolution. It describes improvements as normally changes, enhancements, alterations or additions to the common property or the corporation's property not listed in the reserve fund study report. For section 38, section 28 of the Regulation (consolidation current to 15 February 2026) says a repair or replacement of depreciating property included in the current reserve fund report is not a capital improvement.

Next step. Before relying on the reserve fund for a project, ask the corporation's lawyer whether it is a capital improvement.

Sources: Condominium Property Act, Owning a Condominium, Condominium Property Regulation

Alberta.ca's Reserve funds page lists levying special assessments and borrowing money among the ways a corporation may meet its reserve fund funding requirements. Alberta.ca describes a special levy as a one-time or temporary assessment to raise money for an unbudgeted expense or shortfall, and lists insufficient reserve funds among its examples.

Section 37(4) of the Condominium Property Act (consolidation current to 14 May 2026) says a corporation may, subject to the regulations, borrow money to carry out its powers and duties under section 37. The Reserve funds page does not mention section 37(4), a borrowing limit or owner approval. Whether borrowing fits a project is for the corporation's lawyer. Service Alberta's March 2026 tip sheet suggests a board could discuss alternatives with owners at a general meeting before deciding.

Next step. Raise the gap with owners early, and see the special levies questions for how a levy is approved and for the rules on borrowing.

Sources: Reserve funds, Special levies, Condominium Property Act, Owning a Condominium