Home › COFSAB Forum › Finances › Meaning & Purpose of a Condo Unrestricted Fund › Reply To: Meaning & Purpose of a Condo Unrestricted Fund
Karen BennettAdministratorApril 10, 2022 at 10:02 am
The following are my comments to your contribution to which I thank you:
You stated that the Unrestricted Fund is probably the operating account mentioned in CPA s. 38.1. I agree with you and this is why I am seeking clarification about this expenditure using this account, without owners’ approval, for two first-time capital equipment purchases that never existed in any form. Had the equipment existed, I would have no problem with the purchase amount coming from the Operating or Reserve Fund accounts.
With respect to what you were taught about adding items to the corporation’s budget and operating portfolio, I agree. However, these two items are not listed, as line items, in any of our budgets and, owners were not consulted and given the opportunity to vote on these two original equipment acquisitions. (Ref: CPA s. 39(1) (a) and (b)).
With respect to the Board’s plan to replacing the existing common property ground recreational facility, that the developer built, with a completely different facility to serve a completely different activity/purpose, it is my view that the condominium plan would have to be first amended by an owners’ 3/4 approval vote and, funded by way of a “special levy” instead of the condo Unrestricted Fund / Operating Account. (Ref: CPA s. 39.1 (2) (d) & (3) and, CPR s. 71(1) (a) & (d)) & “Boily v. Carlton Condominium Corporation 145, 2013 ONSC 1467”).