Course Outline

CPD 891: Fundamentals of Reserve Fund PlanningCPD 891: Fundamentals of Reserve Fund Planning

The Reserve Fund Planning Program (RFPP) is a national program designed to provide real estate practitioners with the necessary expertise required to complete a diversity of reserve fund studies and depreciation reports. The program covers a variety of property types from different Canadian provinces, offering both depth and breadth in understanding how reserve fund studies are prepared for condominium/stratas and other properties.

Course Description

CPD 891: Fundamentals of Reserve Fund Planning provides a comprehensive overview of the underlying theory, principles, and techniques required for preparing reserve fund studies.

The course is structured in five parts. The first lesson addresses the history and legislative basis for reserve fund studies for property managers and owners of commercial real estate. The second lesson addresses the physical inspection of the property that is the subject of the reserve study. The third and fourth lessons address the evaluation of depreciation and the costing of building elements. Finally, the fifth lesson addresses the methodology used to complete the financial analysis in the reserve fund study.

The course requires completion of multiple choice assignments with each lesson, plus a written project. The project is a challenging, stimulating, and thought-provoking exercise that requires research and analysis beyond the course materials, in applying the course concepts in a practical context. The course ends with a written examination.

CPD 891 is eligible for 12 AIC credit hours.

Course Outline

  • FOREWORD - Introduction to Professional Development Courses
  • LESSON 1 - Overview of Depreciation Reports – Legislative Requirements & Methodology
    Legislative Overview
    Implications of Reserve Fund Studies for Property Managers and Owners
    Reserve Fund Professionals
    Reserve Fund Study Principles and Methodology
    Professional Liability Considerations
    Quantifying Common Elements
    Summary
    Review and Discussion Questions
    Assignment 1
  • LESSON 2 - Identification and Quantification of Common Elements
    Step 1: Identification and Quantification of Common Elements
    Preliminary Research
    Description and Measurement
    Preparing for the Property Inspection
    Inspection Items: Common Element Categories
    Concluding the Inspection: Compiling and Reporting Inspection Results
    Appendix 2.1: Sample Condominium Plans – Ontario Residential High-Rise
    Appendix 2.2: Measuring Areas on Plans – Adobe Acrobat Professional
    Appendix 2.3: Case Study – 55 Summer Lane
    Appendix 2.4: Case Study – Valley Estates
    Review and Discussion Questions
    Assignment 2
  • LESSON 3 - Lifecycle Assessment
    Step 2: Life Span Analysis
    Estimating Life Expectancies of Components
    Case Study – 55 Summer Lane
    Case Study – Kelowna Townhouses
    Case Study – Valley Estates
    Summary
    Review and Discussion Questions
    Assignment 3
  • LESSON 4 - Cost Analysis
    Step 3: Estimate Current Replacement Cost (CRC) of Reserve Components
    Case Study – 55 Summer Lane
    Summary
    Review and Discussion Questions
    Assignment 4
  • LESSON 5 - Financial Analysis Accounting 101 for Condominiums/Stratas
    Step 4: Project Future Replacement Costs
    Step 5: Project Future Value of Current Reserve Funds
    Step 6: Calculate Current Reserve Fund Contributions Required
    Case Study – Saskatchewan Condominiums
    Further Reserve Fund Case Studies
    Summary
    Review and Discussion Questions
    Assignment 5
  • PROJECT
  • AFTERWORD
    The Final Examination

Additional Information

View the Learning Objectives for each lesson in CPD 891