The new regulations requiring Depreciation Reports for Condominium Associations is a start to greater self governance of these groups. It has come on the heels of legislation allowing a higher cap on “Contingency Reserve Funds”. This allows the Associations to prepare for aging contingencies and issues such as the “leaky Condos”. This is really important as buildings get older and also allows for better maintenance and asset replacement as time goes on.
The regulation allows Associations of 5 units or less to opt out of the requirements. However, even if 50% of the Associations do opt out there will not be enough time. The deadline is for December 31, 2013. This means that a lot of associations will be hard pressed to find professionals experienced in this work.
Anyone can do this work at this time: Engineers, Architects, Technicians, anyone. As you might expect this opens the playing field and will present some problems. There is no standard set for these reports, only guidelines laid out by the Condominium Home Owners Association of BC. This will lead to a great disparity in quality of the work and may do little to help Associations prepare for future problems. It is imperative that governing bodies of the Associations choose carefully. The reports will not be inexpensive and will need to be done by professionals with experience.
Cascade Facilities Management Consultants Ltd has professionals that have done this work for larger groups such as municipalities and school boards. Cascade has the ability to apply a number of different levels of expertise to the work. This will ensure that the reports do more than cover the requirements. Long range capital plans can be provided to identify major upgrades and replacements needed over the life of the condominium facility.