Capital Replacement ​

Capital replacement is the major repair or replacement of your corporation's long-lived shared components — the roof, siding, windows, parking surfaces, elevators, and building systems. These are the expensive, infrequent projects that the reserve fund exists to pay for.

What it means for your board ​

Every shared component has a useful life. A roof might last 25 years, an asphalt parking lot 20, a boiler 15. Capital replacement is the planned, eventual cost of renewing each one — and because the bills are large and predictable in timing, they should be saved for in advance, not scrambled for when they arrive.

A reserve fund study maps out when each component comes due and what it will cost, so your board can fund replacements smoothly through the reserve fund instead of resorting to a special levy.

What the Condominium Property Act says ​

A corporation's reserve fund is intended specifically for the major repair and replacement of common property and the corporation's shared assets — not routine, day-to-day upkeep, which the operating fund covers. The scope of what qualifies is governed by the Condominium Property Act and its regulations.

Confirm which components and costs your reserve fund may be used for before drawing on it.

How Qworum helps ​

Plan and track capital replacements against your reserve fund, and estimate whether you're saving enough with the free Reserve Fund Calculator. Start a free trial.

General information about Alberta condominium concepts — not legal advice. Confirm your corporation's obligations under the Condominium Property Act.