Meaning & Purpose of a Condo Unrestricted Fund
I live in a large residential Condo building that also have the following for owners to rent: 1) Guest suites, 2) An entertainment lounge, and 3) Extra second parking stalls and storage lockers. We also have recreational facilities on the common property grounds that the developer built.
Board recently passed the following two resolutions to spend the following amounts from the Corporation’s “Unrestricted Funds” account: 1) $11,817.75 to purchase a Sweeper/Scrubber for our parkade and 2) $3,968.17 for a Utility Cart, an Air Mover, and a Carpet extractor and shampooer. The Board is also planning on using this “Unrestricted Fund” account to replace one of the common property ground recreational facility that the developer built with a different capital improvement project.
As far as I am aware, there are only three types of account funding modules and spending requirements permitted under the Act: 1) s. 38 – Reserve Fund and, 2) s. 38.1 – Operating Account, and 3) s. 39.1 Special Levy.
I have written the Board, on more than one occasion, questioning the existence and composition of the corporation’s “Unrestricted Fund” and its use. So far, the Board have failed to provide me with this information.
Finally, if there exist such an item as a Condo “Unrestricted Fund”, how is it funded?
I would appreciate it very much if someone can provide me with an explanation.