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Home COFSAB Forum Finances Meaning & Purpose of a Condo Unrestricted Fund Reply To: Meaning & Purpose of a Condo Unrestricted Fund

  • Karen

    Administrator
    April 10, 2022 at 10:01 am

    shebacat

     

    @terry-g

    Thank you for your response. However, I would appreciate it very much if you can provide me with further clarification regarding the following:

    You stated that the Board of Directors is the only authority that can spend money on behalf of the corporation. However, it is my understanding that this does not give the Board a blank cheque to spend money as it please without first complying with the Act. (Ref: “Boily v. Carlton Condominium Corporation 145, 2013 ONSC 1467”).

     

    I support your suggestion of other “reserve like” accounts. However, for full transparency, can you tell me under which of the two main account groups this will fall (Reserve Fund or Operating Account) or should it be a completely new account group without violating the Condo Act?

    Instead of raising a “Special Levy”, as per Condo Act s. 39.1, to replace one of our common property ground recreational facility that the developer built with a completely different capital project, does our Board have the authority to use our Corporation’s existing “Unrestricted Funds” / “Operating Account Funds” or our “Reserve Fund” to fund this project?

    Can the Board replace our existing common property ground recreational facility that the developer built with its planned different capital project without first obtaining an owners’ approval vote to amending the Condominium Plan? (Ref: Condo Regulation s. 71(1) (a) & (d)).