Please note that this case study has been updated … · provided for your convenience and readers are advised to refer to the full text of this Reserve ... Appraiser, AACI Comment

RESERVE FUND STUDY

55 SUMMER LANE, TORONTO

PROPOSED CONDOMINIUM CORPORATION

TORONTO, ON

PREPARED BY

APPRAISER, AACI

FOR

PROPOSED CONDOMINIUM CORPORATION

c/o MR. DAN DEVELOPER

MAIN STREET

TORONTO, ON

DATE OF INSPECTION: NOVEMBER 7, 2012

DATE OF RESERVE ESTIMATE: JANUARY 1, 2012

DATE OF REPORT: DECEMBER 5, 2012

Please note that this case study has been updated since the course workbook was printed. As a

result, the numbers and excerpts shown in the course workbook do not match this updated version

of the case study.

Case study prepared by Craig Hennigar, AACI, MRICS, CFA, MBA, MA, BCom, Appraisals (Fundy) Ltd.,

www.appraisalsfundy.com, [email protected]

December 5, 2012

Our File No. 12-999

Proposed Condominium Corporation

c/o Mr. Dan Developer

Main Street

Toronto, ON

6E7

RE: Reserve Fund Study, Proposed Condominium Corporation

55 Summer Lane, Toronto, ON

At your request, an inspection of the subject property has been completed for the

purpose of providing a Reserve Fund Study for the above noted property according to the

terms of the Provincial Condominium Property Act.

This summary has been prepared as a reference of pertinent facts and estimates of the

Reserve Fund Study based on the information provided as of the date of this report. It is

provided for your convenience and readers are advised to refer to the full text of this Reserve

Fund Study for more detailed information.

Annual Replacement Contribution (2013): $15,594.63

Monthly Replacement Contribution: $1,299.55

Opening Fund Balance (as of January 1, 2013): $0

Current Reserve Required (2013): $63,556

Shortfall / (Surplus) in Reserve Fund to date: $63,556

Percent Funded: 0%

Total Reserve Fund Contributions 2013-2042: $632,644

Total Interest Earned on Reserve Funds 2013-2042: $93,550

Increase over 2012 Reserve Fund Contributions: New Conversion

Closing Balance of Reserve Fund (December 31, 2042): $136,114

Items not included in this reserve fund study indicated herein are individual unit

fixtures, structural features, individual unit furnishings, appliances, equipment, and other

2

items that are not “common” property to the condominium corporation as well as items that

are deemed to be less than $500 in value.

The reserve fund study that follows presents pertinent data and other specific

information that has led to the conclusions shown herein. This is a complete report, which is

intended to comply with the reporting requirements as set forth under Appraisal Standard

Rules 10.2.1-10.2.14 of the Canadian Uniform Standards of Professional Appraisal Practice

(CUSPAP) for the development of a Consulting Report. As such, it presents concise and

brief summary information relating to scope, property details and characteristics, data

collection and analysis, valuation reasoning and analyses that were used in the consulting

process in order to develop the appraiser's opinion of market net rent. Supporting

documentation is retained in the appraiser’s file. The depth of discussion contained in this

report is specific to the needs of the client and for the intended use stated herein.

Based on the information contained herein, it is our considered opinion that the annual

contribution to the reserve fund for the subject in the 2013 fiscal year is in the order of

$15,594.63. This results in a monthly contribution of $1,299.55 and an average unit

monthly contribution of $54.15.

The above results are based on the assumption that all costs occur at the presented

intervals and that the reserve account as of the reported fiscal year start of January 1, 2013,

had a balance of $0. In the analysis, it is assumed that costs and monthly contributions

increase at an average rate of 2.00% per annum and that the interest earned on the reserve

fund is at an average of 3.50% per annum. The impact of HST has been included in this

analysis; however, there are other taxes that may represent an additional cost for the repair

and replacement of the capital elements of the subject property and it is recommended that

assistance from a qualified tax professional is pursued.

Respectfully submitted,

Appraiser, AACI

Comment [CDH1]: The CUSPAP

standards to be observed for a reserve

study are those for a Consulting Study.

Care must be taken to ensure that all

required elements of the standard are

observed.

3

TABLE OF CONTENTS

PART I - Preface Page No.

Title Page

Letter of Transmittal ..................................................................... 1

Table of Contents ......................................................................... 3

Summary of Important Facts and Conclusions ....................................... 4

Statement of Limiting Conditions ...................................................... 5

PART II - Factual Data

Scope of Work ............................................................................. 7

Purpose and Identification of the Appraisal .......................................... 11

Description of the Improvements ...................................................... 12

Key Capital Items Analyzed ............................................................. 13

Certification ................................................................................ 19

Reserve Fund Status Certificate ......................................................... 21

PART III - Addenda

Annual Reserve Fund Account Activity ............................................... 22

Aerial Map .................................................................................. 32

Photos ........................................................................................ 33

4

SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS

55 Summer Lane, Toronto, ON

Use: 24-Unit Residential Apartment Complex – Conversion to Condominiums

Style: One 24-Unit, 2 and 3-Storey Apartment Building1

Building Area: 27,506 SF

Annual Replacement Contribution (2013): $15,594.63

Monthly Replacement Contribution: $1,299.55

Opening Fund Balance (as of January 1, 2013): $0

Current Reserve Required (2012-13): $63,556

Shortfall / (Surplus) in Reserve Fund to date: $63,556

Percent Funded: 0%

Total Reserve Fund Contributions 2013-2042: $632,644

Total Interest Earned on Reserve Funds 2013-2042: $93,550

Increase over 2012 Reserve Fund Contributions:

New Conversion

Closing Balance of Reserve Fund (December 31, 2042): $136,114

1 The ground floor of the 3-storey building is a partially above grade basement.

5

STATEMENT OF LIMITING CONDITIONS

1. This report is a forecast of reasonably predictable capital expenses that will be required to

maintain the property based on anticipated life cycle replacement of elements of the physical

improvements that are subject to replacement and is not an assessment of the current state

of the property. It is assumed that any existing maintenance issues and damage has been

repaired and that the life cycle of the building elements was, and is not, impacted by these

maintenance and repair issues.

2. No responsibility is assumed for matters of a legal nature, nor do we render any opinion as

to the title, which is assumed to be good. Existing mortgages, liens, encumbrances and/or

special assessments if any, have been disregarded and the property has been appraised as

though held free and clear.

3. A survey of the property has not been undertaken. No responsibility can be accepted for

the accuracy of the plans and sketches contained herein which were provided to assist the

reader in visualizing the property.

4. Whereas the purpose of the report is restricted to replacement reserve requirements, no

analysis or investigation was completed with regard to current zoning, assessment or

highest and best use.

5. It is assumed that there are no hidden or unapparent conditions of the property that would

render it more or less valuable. No responsibility is assumed for such conditions or for

engineering that might be required to discover these factors.

6. Unless otherwise noted in this report, our investigations did not reveal the presence of Urea

Formaldehyde or Asbestos Insulation in the buildings.

Comment [CDH2]: Any existing

maintenance and repair items are

assumed to have been dealt with in this

limiting condition. This would relate to

any building element that is either

damaged or past the point of its

usefulness and should have been

replaced prior to the replacement

reserve study. In the event that this is

a significant or obvious outstanding

item it would be wise to point out this

deficiency in this clause. For example,

“the damaged foundation bricks at the

northwest corner of the building are

assumed to have been repaired.” This

example might be based on a truck

damaging this building element and the

proceeds from an insurance claim may

pay for the repair. This clause is not

meant to be a catch-all to avoid

adequately assessing all the building

elements, but there are often issues

that are to be repaired and once this is

done, the anticipated lifespan of the

building element will be longer than

before this outstanding repair.

Comment [CDH3]: Care must be

taken to limit the scope of the study or

else the requirements of CUSPAP may

dictate a different form of report. No

comments should be made regarding

the zoning or highest and best use of a

property anywhere in the report. If the

condominium (strata) corporation does

feel that the property may have another

higher and better use, then a proper

highest and best use study, or at least

a market value estimate including a

land value should be requested as a

separate report. At no time should the

consultant make comments about

value or alternative uses in the report.

If this is done there may be

consequences that might impact the

consultant’s insurance coverage. As

well, the comments may constitute a

valuation based on CUSPAP

standards.

Comment [CDH4]: The nature of a

reserve study is that of a budgeting

report. The report is not a building

condition report and there should be no

responsibility taken for any form of

building condition assessment. In this

case it is a condition of the report that

there is no responsibility for building

condition elements that may impact

value that are not readily apparent.

6

7. We have not inspected woodwork or other parts of the structure which are covered,

unexposed or inaccessible and we are therefore unable to report that such parts of the

property are free of rot, beetle or other defects. This report does not in any way constitute

a building condition report or an assessment of the current state of the property.

8. This report has been prepared for the exclusive and confidential use of the recipient named

herein and the purpose indicated. Possession of this report, or copy thereof, does not carry

with it the right to reproduction or publication, in whole or in part, nor may it be used for

any purpose by any person other than the recipient without the written consent and approval

of this firm.

9. We have not been advised, nor are we aware of any environmental problems, site audits,

etc., which may have been prepared, nor any Ministerial Orders outstanding or issued by

the Minister of Environment in regard to the property being valued herein, other than those

duly noted herein.

Comment [CDH5]: Similar to limiting

condition 6 above, this condition clearly

states that this report is not a building

condition report or an assessment of

the current state of the property. This

statement will further support the

consultant’s role as that of budgeting

for future replacement of building

elements. It is important to remember

that a building condition report would

cost significantly more than a reserve

study in most cases.

7

SCOPE OF WORK

The scope of work for this appraisal encompasses the necessary research and analysis

required in order to prepare a report in accordance with the Canadian Uniform Standards of

Professional Appraisal Practice (CUSPAP) as administered by the Appraisal Institute of Canada.

In regard to the Subject property, this process involved carrying out the following steps:

1. Appraiser, AACI, carried out an inspection of the subject property on November 7, 2012.

In addition to the site inspection, other information relating to the subject property was also

reviewed.

2. An inventory of the common elements and assets of the condominium corporation was

completed to determine the future need for replacement of same within a 30 year time

frame.

3. An assessment of each key item in the inventory was completed and is presented in tabular

format in the addenda of this report. In the case of each item the following information is

presented:

a. The actual or approximate year of acquisition or most recent replacement of the

item;

b. The actual or estimated age of the item;

c. The normal life expectancy of the item;

d. The remaining life expectancy of the item;

e. The estimated year of the substantial repair or the replacement of the item;

f. The estimated cost of the substantial repair of the replacement of the item; and

8

g. The percentage of the cost of the substantial repair or the replacement of the item

available to be covered by the reserve fund, and the adjusted cost resulting from the

application of that percentage.

4. Review of the draft declaration and description of the corporation.

5. Review of the draft by-laws of the corporation.

6. Request and review of the following documents, if provided:

a. The warranties, guarantees and service contracts of for each item in the inventory;

b. The architectural, structural, construction, mechanical, electrical and plumbing

plans for the condominium property;

c. The specifications for the buildings;

d. The plans for underground site services, site grading, drainage, landscaping, and

television, radio or other communication services for the condominium property;

e. The repair and maintenance records and schedules; and

f. All other records of the corporation required in order to prepare the assessment.

7. Having reviewed the above materials and completed an inspection of the subject, the

following findings are presented in the body of the report or in the addenda attached

hereto:

a. Description of the financial status of the reserve fund as of the date of the

assessment; and

b. A recommended funding plan projected over 30 years beginning in a current

forecast fiscal year of 2013 which includes the following:

9

i. The estimated cost of the substantial repair or replacement of the common

elements and assets of the corporation based on the current costs for the

year in which the study is completed;

ii. The estimated cost of the substantial repair or replacement of the common

elements and assets of the corporation at the estimated time of the repair or

the replacement based on a stated, assumed annual inflation rate;

iii. The estimated opening balance of the reserve fund;

iv. The recommended amount of contributions to the reserve fund, determined

on a cash blow basis, that are required to offset adequately the expected

cost in the year of the expected substantial repair of the expected

replacement of each item in the inventory referred to in item 2 above;

v. The estimated interest that will be earned on the reserve fund based on a

states, assumed annual interest rate;

vi. The total of the amounts described in items iv and v above;

vii. The increase, if any, in the recommended amount of contributions to the

reserve fund over the recommended amount of contributions for the

immediately preceding year, expressed as a percentage, and

viii. The estimated closing balance of the reserve fund.

8. This Replacement Reserve analysis report is a brief recapitulation of the data, analyses,

and conclusions related thereto. Supporting documentation is retained in the appraiser’s

file.

9. The data that the appraiser has assembled has been confirmed whenever possible and

judgements have been made as to its relevance and reliability.

10

10. After assembling and analysing the data referred to within the scope of this appraisal

assignment, a reserve fund status certificate was completed. The certificate includes the

following information:

a. The balance in the reserve fund at the beginning of the current fiscal year;

b. The annual contribution to the reserve fund recommended to be made during the

current fiscal year and in subsequent fiscal years of the study period; and

c. A statement summarizing the repair, maintenance, and replacement

recommendations of the latest reserve fund study or update

11

PURPOSE OF THE ANALYSIS

The purpose of this analysis is to provide an estimate of the anticipated future capital costs

of the property in relation to elements of the building that are anticipated to reach the end of their

life-cycle during the coming 30 years as well as a budget for such replacement based on annual

contributions. The subject property was inspected on November 7, 2012. At that time of the

inspection the buildings were intact and in moderate condition. The date to which the analysis

herein will apply is January 1, 2013, the estimated fiscal year start date of the condominium

corporation.

INTENDED USE

Instructions to undertake this assignment, and the resulting report produced is to be directed

to the proposed Condominium Corporation c/o Dan Developer at Main Street, Toronto, Ontario,

for use in the establishment and annual management of the new condominium corporation for the

subject property.

IDENTIFICATION

The improvements that are described in this report are identified as an integrated property

consisting of one building located in the Kensington Park neighbourhood of Toronto, ON, and

addressed as 55 Summer Lane. The property is a multi-residential property that was developed in

the 1980’s in a decommissioned municipal building. The structure is comprised of a two-storey

masonry structure that is connected to and a three-storey masonry building by way of a breezeway.

The two sections consist of 8 units and 16 units respectively for a total unit count of 24. Overall

appeal of the property is average for the Toronto area and the approximate age of the subject is 81

years as of the coming fiscal year start date on January 1, 2013.

12

DESCRIPTION OF THE IMPROVEMENTS

The following basic data was recorded during inspection of the subject structure which was

carried out on November 7, 2012.

Residence:

Use: - Residential 24-unit apartment complex

No. of Stories: - Two and three-storey wings of one

building

Foundation: - Formed concrete

Exterior Walls: - Masonry Brick

Roof: - Tar and gravel and modified bitumen

Construction: - Masonry Brick – Class C Construction

Comments: - Property consists of two building wings with four

individual entrances comprising 24 dwelling units.

The subject was originally constructed in 1932 and

was converted to residential use in the 1980’s.

Overall appeal of the building is good, having been

substantially updated for sale as condominium units

as per the extraordinary assumptions contained

herein.

Dimensions and Area2:

Building Area: - 27,506 SF

2 Building areas area based on exterior dimensions of the property. Useable areas may differ from measured area.

13

KEY CAPITAL ITEMS ANALYZED

In completing the reserve fund analysis, the following general information was observed

during inspection of the subject.

Building - Structural

Building Siding

The building is covered in two types of siding, brick and vinyl with anticipated lifespan of

80 years and 25 years respectively. All vinyl siding at the property is to be replaced by the

developer as a condition of sale. These building elements have estimated effective ages of 30 and

0 years.

It is noted that the brick work is in good condition given the age of the building. Brick

siding does require periodic maintenance consisting of cleaning and at times repointing of the

bricks by way of replacement of the exterior mortar between brick courses. This work is done for

discreet areas on an as needed basis and comprises part of the annual building maintenance

program; it is not considered to be an element that constitutes capital planning within the reserve

report. A brief report on the condition of the exterior masonry of the property is provided in the

appendix to this report.

Roof Assembly

The roof on the two-storey portion of the building is covered with a built up tar and gravel

roof is reported to have been replaced in 2004 and has been recently updated and maintained.

This tar and gravel roof has an estimated effective age of 9 years. The roof on the breezeway

between the buildings was replaced in 2004 as well and also has an estimated effective age of 9

years.

14

The modified bitumen roof on the three-storey portion of the building is to be replaced by

the developer as a condition of sale3. A brief report on the condition of the roof over the two-

storey portion of the building is provided in the appendix to this report.

Entrance Roofs and Decks

There are three covered porticos that offer shelter from rain to the three main entrances of

the subject property. These features are roof only structures in the case of two of the entrances

and the third has a roof over a deck that is accessed by a stairway. In each case the roof is

constructed of asphalt shingles over plywood decking. These elements are anticipated to have a

lifespan of 22 years and are estimated to have an effective age of 1 year having been newly

constructed in November, 2012 in the case of two of the entrances and 0 years in the case of the

third as it is to be completed as a condition of sale of the condominium units. In the case of the

stairs included in one of these entrances, the anticipated lifespan is 12 years and the effective age

is one year.

Window Assemblies

There are 98 windows at the subject property. 33 windows at the property are to be

replaced by the developer as a condition of sale as these units are old and require immediate

replacement. These units measure in size from 1.66 M2 to 2.33 M2 in size. The remaining 65

windows were replaced in 1998 and are in good condition given their age and wear. It is

concluded that these windows are aging in line with normal lifespan expectations. With estimated

lifespan of 32 years, the windows replaced in the current year are not anticipated to require

replacement within the timeframe of this analysis but the windows replaced in 1998 will require

replacement in 2030.

3 The roof was not inspected during the site visit.

15

Door Assemblies

There are 39 doors that are the responsibility of the condominium corporation including 4

exterior doors providing access to the subject property. There are 24 interior unit doors and 11

interior hallway interior doors to provide access to storage, laundry and electrical rooms.

Exterior Doors – Glass Fire Rated

Exterior doors at the property were replaced in 2000 but have suffered excessive wear and

tear given the property’s former use as a low rent apartment building. The actual age of these

doors is 13 years but due to the increased depreciation on these doors the effective age of them is

estimated to be 18 years. These exterior doors have an estimated lifespan of 32 years and are

anticipated to require replacement in 2027.

Unit solid wood doors

The 24 unit doors in the property that are considered common elements were replaced in

1990 and have an actual age of 23 years. The doors have suffered from little deterioration, have

been well maintained and are estimated to have an effective age of 20 years on average.

Fire rated stairwell doors

The 6 stairwell doors in the property that are considered common elements were replaced

in 1995 and have an actual age of 18 years. The doors have suffered from average deterioration,

have been well maintained and are estimated to have an effective age of 18 years on average.

Mechanical and storage room doors

The 5 mechanical and storage room doors in the property that are considered common

elements were replaced in 1985 and have an actual age of 28 years. The doors have suffered from

limited deterioration, have been well maintained and are estimated to have an effective age of 15

years on average.

16

Mechanical & Electrical Systems

Washers & Dryers

It is assumed that the washers and dryers will be removed from the laundry room because

all units are to be equipped with their own washer and dryer making the laundry room redundant.

Electric Baseboard Heaters in Hallways

There are 10 electric baseboard heaters to be installed in the common areas of the building

by the developer as a condition of sale. In the case of these units, their anticipated lifespan is 20

years and their effective age is 0 years.

Fire Protection and Access Systems

There are integrated building access and fire protection systems that have an anticipated

lifespan of 15 years and estimated effective ages of 0 years and 13 years respectively.

Electrical Service

It is assumed that the electrical services are of current standards, having been replaced

when the building was renovated into residential units. It is not anticipated that the electrical

systems would require replacement during the forecast time horizon of this report. A brief report

on the condition of the electrical system at the property is provided in the appendix to this report.

Plumbing System

It is assumed that the plumbing is of current standards, having been replaced when the

building was renovated into residential units. It is not anticipated that the plumbing system would

require replacement during the forecast time horizon of this report. A brief report on the

condition of the plumbing system at the property is provided in the appendix to this report.

Building Finishes and Decoration

17

Ceramic Tile Flooring

The subject property has approximately 2,216 SF of ceramic tile flooring that is the

responsibility of the condominium corporation. The ceramic tile on the ground floor at the

property measures 1,303 SF and is to be newly installed by the developer as a condition of sale.

This ceramic tile has an anticipated lifespan of 40 years and an estimated age of 0 years.

The ceramic tile in the upper hallway is 28 years old but has seen little traffic due to the

limited number of tenants on the upper floor of the three story building. In this case the tile is

estimated to have an effective age of 20 years and a remaining lifespan of 20 years as well.

Vinyl Tile Flooring

The subject property has approximately 662 SF of vinyl tile flooring that is the

responsibility of the condominium corporation. The vinyl tile on the ground floor in the laundry

room at the property measures 102 SF and is to be newly installed by the developer as a condition

of sale. This ceramic tile has an anticipated lifespan of 10 years and an estimated age of 0 years.

The vinyl tile in the lower hallway is 13 years old but has seen little traffic due to the

limited number of tenants on the lower floor of the three story building. In this case the tile is

estimated to have an effective age of 8 years and a remaining lifespan of 2 years.

Carpet Flooring

The subject property has approximately 347 SF of carpet flooring that is the responsibility

of the condominium corporation. All carpet at the property is to be replaced by the developer as a

condition of sale. The carpet has an anticipated lifespan of 7 years and an estimated age of 0

years.

Decoration – Wall Painting

The subject property has approximately 10,831 SF of wall painted area that is the

responsibility of the condominium corporation. All walls at the property are to be painted with

18

two coats by the developer as a condition of sale. The estimated lifespan of painted areas is 10

years and the estimated age of the painted areas is 0 years.

Decoration – Ceiling Painting

The subject property has approximately 3,224 SF of ceiling painted area that is the

responsibility of the condominium corporation. All ceilings at the property are to be painted by

the developer as a condition of sale. The estimated lifespan of painted areas is 10 years and the

estimated age of the painted ceiling areas is 0 years.

Non Capital Assets

Reserve Fund Studies and Updates

The condominium corporation is required to complete a full reserve fund study for the

subject property no later than every 10 years, or when there are significant adjustments to the

assets of the corporation. In addition, the then current study is to be updated every 3 years. In

the interest of remaining within these guidelines, a new study has been commissioned every 9

years to avoid having to complete 3 updates within each 10-year period. The forecast for report

updates is based on a rate of 50% of the cost of a full reserve report.

Site Improvements & Social Facilities

Concrete Patios and Walkways

The property has approximately 762 SF of concrete walkways and steps. The paving

concrete elements have an anticipated lifespan of 21 years and an estimated effective age of 0

years having been renewed by the developer as a condition of sale.

Uni-Stone Walkways

The property has approximately 275 SF of uni-stone walkways . The uni-stone elements

have an anticipated lifespan of 16 years and an estimated effective age of 0 years having been

newly installed by the developer as a condition of sale.

19

Asphalt - Pavement, Parking, Driveways

The property is estimated to have 14,720 SF of asphalt paving for parking and access. The

asphalt has an anticipated lifespan of 11 years and an estimated effective age of 0 years as it is to

be paved early in 2013 as a condition of sale.

20

CERTIFICATION

I certify that, to the best of my knowledge and belief:

- the statements of fact contained in this report are true and correct.

- the reported analysis, opinions and conclusions are limited only by the reported

assumptions and limiting conditions, and are my personal, impartial and unbiased

professional analyses, opinions and conclusions.

- I have no present or prospective interest in the property that is the subject of this

report and I have no personal interest or bias with respect to the parties involved.

- I have no bias with respect to the property that is the subject of this report or to the

parties involved with this assignment.

- my engagement in this assignment was not contingent upon developing or reporting

predetermined results.

- my compensation is not contingent upon the reporting of a predetermined value or

direction in value that favours the cause of the client, the amount of the value

estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

- the reported analyses, opinions and conclusions were developed and this report has

been prepared in conformity with the requirements of the code of Professional Ethics

& Standards of Professional Appraisal Practice of the Appraisal Institute.

- the use of this report is subject to the requirements of the Appraisal Institute relating

to review by its duly authorized representatives and or the Provincial Condominium

Property Act.

- the property that is the subject of this report was inspected on November 7, 2012, by

Appraiser, AACI.

- no one provided significant professional assistance to the person signing this report.

- the Appraisal Institute of Canada has a mandatory recertification program for

designated members. As of the date of this report, the undersigned has fulfilled the

requirements of the recertification program.

21

The reserve fund study that follows presents pertinent data and other specific

information that has led to the conclusions shown herein.

Based on the information contained herein, it is our considered opinion that the annual

contribution to the reserve fund for the subject in the 2013 fiscal year is in the order of

$15,594.63. This results in a monthly contribution of $1,299.55 and an average unit

monthly contribution of $54.15.

The above results are based on the assumption that all costs occur at the presented

intervals, that the reserve account as of the reported fiscal year start of January 1, 2013, had a

balance of $0. In the analysis, it is also assumed that costs and monthly contributions

increase at an average rate of 2.0% per annum and that the interest earned on the reserve fund

is an average of 3.5% per annum. The impact of HST has been included in this analysis;

however, there are other taxes that may represent an additional cost for the repair and

replacement of the capital elements of the subject property and it is recommended that

assistance from a qualified tax professional be pursued.

Dated: December 5, 2012

Certified by,

Appraiser, AACI

22

RESERVE FUND STATUS CERTIFICATE

In completing a reserve fund study for the subject property located at 55 Summer Lane, Toronto,

ON, as of the date of January 1, 2013 for the coming condominium corporation fiscal year from January 1,

2013 to December 31, 2013, the following information is presented.

Balance of the Reserve Fund

At the beginning of the fiscal year for this reserve fund analysis, the balance of the reserve fund is

calculated to be $0 on January 1, 2013.

Annual Contribution to the Reserve Fund

The annual contribution to the reserve fund for the coming fiscal year of 2013 as well as all years

within the 30-year study is calculated to be as follows:

Fiscal Year

End

Annual

Contribution

2013 $15,594.63

2014 $15,906.52

2015 $16,224.65

2016 $16,549.15

2017 $16,880.13

2018 $17,217.73

2019 $17,562.09

2020 $17,913.33

2021 $18,271.59

2022 $18,637.03

Fiscal Year

End

Annual

Contribution

2023 $19,009.77

2024 $19,389.96

2025 $19,777.76

2026 $20,173.32

2027 $20,576.78

2028 $20,988.32

2029 $21,408.08

2030 $21,836.25

2031 $22,272.97

2032 $22,718.43

Fiscal Year

End

Annual

Contribution

2033 $23,172.80

2034 $23,636.26

2035 $24,108.98

2036 $24,591.16

2037 $25,082.98

2038 $25,584.64

2039 $26,096.34

2040 $26,618.26

2041 $27,150.63

2042 $27,693.64

Recommendations for Repair, Maintenance and Replacement at the Subject

The subject property is in moderate condition having just been adequately maintained since

construction. The overall impression of the property is adequate and the structural integrity of the property

appears to be sound. In terms of ongoing capital replacement programs, there are some significant items for

replacement or repair in the coming 13 years with a total budget for capital items of $173,546 during that

time. There are no budgeted capital items for repair or replacement for the first 2 years of this analysis.

Good maintenance and repair of the assets of the corporation will assist in prolonging the useful life of each

item.

Dated: December 5, 2012 Certified by,

Appraiser, AACI

23

Fiscal Year

End

Opening

Balance

Reserve

Contributions

Interest

Earned

Capital Costs

(Inflated)

Ending

Balance

Accrued

Funds

Required

Account

Percent

Funded

Funding

Shorfall

2013 $0.00 $15,594.63 $272.91 $0.00 $15,867.54 $63,556.29 25.0% -$47,688.75

2014 $15,867.54 $15,906.52 $833.73 $0.00 $32,607.79 $84,230.96 38.7% -$51,623.18

2015 $32,607.79 $16,224.65 $1,237.02 -$10,753.09 $39,316.37 $94,954.11 41.4% -$55,637.74

2016 $39,316.37 $16,549.15 $1,637.83 -$1,591.81 $55,911.53 $115,448.83 48.4% -$59,537.30

2017 $55,911.53 $16,880.13 $2,252.31 $0.00 $75,043.97 $138,349.01 54.2% -$63,305.04

2018 $75,043.97 $17,217.73 $2,885.52 -$2,418.65 $92,728.58 $159,700.37 58.1% -$66,971.79

2019 $92,728.58 $17,562.09 $3,523.27 -$1,689.24 $112,124.69 $182,628.22 61.4% -$70,503.53

2020 $112,124.69 $17,913.33 $3,829.73 -$23,320.79 $110,546.97 $184,811.54 59.8% -$74,264.58

2021 $110,546.97 $18,271.59 $4,188.90 $0.00 $133,007.46 $210,796.35 63.1% -$77,788.90

2022 $133,007.46 $18,637.03 $4,918.67 -$3,585.28 $152,977.87 $232,368.71 65.8% -$79,390.84

2023 $152,977.87 $19,009.77 $5,237.92 -$25,655.81 $151,569.75 $234,549.32 64.6% -$82,979.57

2024 $151,569.75 $19,389.96 $4,131.10 -$86,466.80 $88,624.01 $176,426.32 50.2% -$87,802.31

2025 $88,624.01 $19,777.76 $3,131.82 -$18,064.51 $93,469.08 $186,016.21 50.2% -$92,547.13

2026 $93,469.08 $20,173.32 $3,624.45 $0.00 $117,266.85 $214,344.93 54.7% -$97,078.08

2027 $117,266.85 $20,576.78 $4,034.86 -$24,547.24 $117,331.24 $219,185.14 53.5% -$101,853.90

2028 $117,331.24 $20,988.32 $4,323.70 -$8,582.15 $134,061.11 $240,589.27 55.7% -$106,528.15

2029 $134,061.11 $21,408.08 $4,961.83 -$5,997.14 $154,433.89 $265,518.53 58.2% -$111,084.64

2030 $154,433.89 $21,836.25 $5,585.46 -$11,535.17 $170,320.42 $285,930.65 59.6% -$115,610.23

2031 $170,320.42 $22,272.97 $6,276.01 -$4,284.74 $194,584.67 $312,391.81 62.3% -$117,807.14

2032 $194,584.67 $22,718.43 $6,242.67 -$55,163.60 $168,382.17 $291,189.09 57.8% -$122,806.92

2033 $168,382.17 $23,172.80 $4,150.01 -$122,793.91 $72,911.06 $202,486.27 36.0% -$129,575.20

2034 $72,911.06 $23,636.26 $2,713.30 -$14,412.92 $84,847.70 $220,955.73 38.4% -$136,108.03

2035 $84,847.70 $24,108.98 $1,529.24 -$106,419.45 $4,066.47 $148,364.70 2.7% -$144,298.23

2036 $4,066.47 $24,591.16 $69.94 -$28,727.57 $0.00 $152,601.92 0.0% -$152,601.92

2037 $0.00 $25,082.98 $396.73 -$2,412.66 $23,067.06 $183,838.75 12.5% -$160,771.69

2038 $23,067.06 $25,584.64 $819.26 -$24,903.70 $24,567.26 $193,821.21 12.7% -$169,253.95

2039 $24,567.26 $26,096.34 $1,316.54 $0.00 $51,980.14 $229,531.21 22.6% -$177,551.07

2040 $51,980.14 $26,618.26 $2,195.51 -$5,120.66 $75,673.26 $258,911.10 29.2% -$183,237.84

2041 $75,673.26 $27,150.63 $3,095.12 -$1,633.38 $104,285.62 $295,575.60 35.3% -$191,289.98

2042 $104,285.62 $27,693.64 $4,134.64 $0.00 $136,113.90 $335,269.16 40.6% -$199,155.26

Annual Reserve Fund Account Activity

24

Reserve Account Activity

-$150,000.00

-$100,000.00

-$50,000.00

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

20

13

20

15

20

17

20

19

20

21

20

23

20

25

20

27

20

29

20

31

20

33

20

35

20

37

20

39

20

41

Year

Va

lue

($

)

Ending

Balance

Reserve Contributions Interest Earned Capital Costs (Inflated) Accrued

Funds

Required

25

Capital Cost Items & Lifespan

Building ElementEstimated

Lifespan

Actual or

Approximate

Year of

Acquisition or

Replacement

Actual or

Approximate

Average Age

Effective Age

Remaining

Lifespan

Actual

Remaining

Lifespan

Effective

Current

Replacement

Cost

Annual

Replacement

Contribution

Per Item

(Current Cost)

% of Total

Contribution

Accrued

Replacement

Amount Required

as of 2013


Foundations & Underground Services 100 1932 81 40 19 60 -$ -$ 0.00% -$

Roof - Modified Bitumin Main Building 20 2013 0 0 20 20 41,869$ 2,093$ 11.00% -$

Roof - Tar & Gravel Breezeway 16 2004 9 9 7 7 1,513$ 95$ 0.50% 851$

Roof - Tar & Gravel Meeting Hall 16 2004 9 9 7 7 13,628$ 852$ 4.48% 7,666$

Entrance Roof Spring Street - Roof 22 2013 0 0 22 22 273$ 12$ 0.07% -$

Entrance Roof Breezeway - Roof 22 2012 1 1 21 21 273$ 12$ 0.07% 12$

Entrance Roof St Paul Street - Roof 22 2012 1 1 21 21 312$ 14$ 0.07% 14$

Entrance Breezeway - Stairs 12 2012 1 1 11 11 3,077$ 256$ 1.35% 256$

Vinyl Siding 25 2013 0 0 25 25 12,989$ 520$ 2.73% -$

Windows - 0.70 m2 34 1998 15 15 19 19 626$ 18$ 0.10% 276$

Windows - 0.90 m2 34 1998 15 15 19 19 804$ 24$ 0.12% 355$

Windows - 1.00 m2 34 1998 15 15 19 19 447$ 13$ 0.07% 197$

Windows - 1.10 m2 34 1998 15 15 19 19 8,355$ 246$ 1.29% 3,686$

Windows - 1.15 m2 34 1998 15 15 19 19 6,166$ 181$ 0.95% 2,720$

Windows - 1.45 m2 34 1998 15 15 19 19 18,788$ 553$ 2.90% 8,289$

Windows - 1.66 m2 34 2013 0 0 34 34 3,708$ 109$ 0.57% -$

Windows - 1.90 m2 34 2013 0 0 34 34 849$ 25$ 0.13% -$

Windows - 2.10 m2 34 2013 0 0 34 34 1,877$ 55$ 0.29% -$

Windows - 2.33 m2 34 2013 0 0 34 34 26,026$ 765$ 4.02% -$

Windows - 3.00 m2 34 1998 15 15 19 19 2,681$ 79$ 0.41% 1,183$

Exterior Doors - Glass 2.60 m2 32 2000 13 18 19 14 17,666$ 552$ 2.90% 9,937$

Unit Doors - Solid Wood 1.50 m2 32 1990 23 20 9 12 10,646$ 333$ 1.75% 6,654$

Fire Rated Stairwell Doors - Steel 1.80 m2 25 1995 18 18 7 7 4,223$ 169$ 0.89% 3,040$

Mechanical/Storage Doors - Hollow Wood 1.50 m2 20 1985 28 15 -8 5 2,191$ 110$ 0.58% 1,643$

Subtotal 7,086$ 37.25% 46,780$

Mechanical Systems

Electric Baseboard Heaters in Hallways 20 2013 0 0 20 20 3,803$ 190$ 1.00% -$

Fire Protection and Life Safety System 15 2000 13 13 2 2 8,238$ 549$ 2.89% 7,140$

Access System 15 2013 0 0 15 15 4,877$ 325$ 1.71% -$

Subtotal 1,064$ 5.60% 7,140$

Decoration

Interior Flooring - Ceramic Tile Main Floor 40 2013 0 0 40 40 22,734$ 568$ 2.99% -$

Interior Flooring - Vinyl Tile Laundry Room 10 2013 0 0 10 10 384$ 38$ 0.20% -$

Interior Flooring - Ceramic Tile Upper Hallway 40 1985 28 20 12 20 15,918$ 398$ 2.09% 7,959$

Interior Flooring - Vinyl Tile Lower Hallway 10 2000 13 8 -3 2 2,098$ 210$ 1.10% 1,678$

Interior Flooring - Carpet 7 2013 0 0 7 7 938$ 134$ 0.70% -$

Interior Paint - 2 Coats, No Primer 10 2013 0 0 10 10 16,125$ 1,612$ 8.48% -$

Interior Paint - Ceilings 10 2013 0 0 10 10 4,538$ 454$ 2.39% -$

Subtotal 3,415$ 17.95% 9,637$

26

Capital Cost Items & Lifespan


Lifespan

Actual or

Approximate

Year of

Acquisition or

Replacement

Actual or

Approximate

Average Age

Effective Age

Remaining

Lifespan

Actual

Remaining

Lifespan

Effective

Current

Replacement

Cost

Annual

Replacement

Contribution

Per Item

(Current Cost)

% of Total

Contribution

Accrued

Replacement

Amount Required

as of 2013

Non Capital Assets

Reserve Fund Studes 9 2013 0 0 9 9 3,000$ 333$ 1.75% -$

2013 Reserve Fund Study Updates 1 & 2 3 2013 0 0 3 3 1,500$ 500$ 2.63% -$

2022 Reserve Fund Study Updates 1 & 2 3 2022 -9 -9 12 12 1,500$ Omit - Not Current Period

2031 Reserve Fund Study Updates 1 & 2 3 2031 -18 -18 21 21 1,500$ Omit - Not Current Period

Subtotal 833$ 4.38% -$


Concrete Walkways 21 2013 0 0 21 21 6,486$ 309$ 1.62% -$

Uni-Stone Walkway 16 2013 0 0 16 16 4,369$ 273$ 1.44% -$

Asphalt Paving - 3" Repaving Cost 11 2013 0 0 11 11 66,465$ 6,042$ 31.76% -$

Subtotal 6,624$ 34.82% -$

Total 19,023$ 100.00% 63,556$

Per Unit

Reserve Balance as of January 1, 2013 -$

Reserve Shortfall as of January 1, 2013 63,556$

% Funded 0.0%

(see Update Above)

(see Update Above)

27

Future Replacement Cost Schedule & Budget


Lifespan

Actual or

Approximate

Year of

Acquisition or

Replacement

Actual or

Approximate

Average Age

Effective Age

Remaining

Lifespan

Actual

Remaining

Lifespan

Effective

1st 2nd 3rd 4th

Current

Replacement

Cost

1st Replacement

Cost (Rounded)

2nd

Replacement

Cost (Rounded)

3rd Replacement

Cost (Rounded)

4th Replacement

Cost (Rounded)

1st Replacment

Annual

Contribution (based

on Remaining

Lifespan Effective)


Foundations & Underground Services 100 1932 81 40 19 60 -$ -$

Roof - Modified Bitumin Main Building 20 2013 0 0 20 20 2033 41,869$ 62,210$ 2,093$

Roof - Tar & Gravel Breezeway 16 2004 9 9 7 7 2020 2036 1,513$ 1,740$ 2,390$ 216$

Roof - Tar & Gravel Meeting Hall 16 2004 9 9 7 7 2020 2036 13,628$ 15,650$ 21,490$ 1,947$

Entrance Roof Spring Street - Roof 22 2013 0 0 22 22 2035 273$ 420$ 12$

Entrance Roof Breezeway - Roof 22 2012 1 1 21 21 2034 273$ 410$ 13$

Entrance Roof St Paul Street - Roof 22 2012 1 1 21 21 2034 312$ 470$ 15$

Entrance Breezeway - Stairs 12 2012 1 1 11 11 2024 2036 3,077$ 3,830$ 4,850$ 280$

Vinyl Siding 25 2013 0 0 25 25 2038 12,989$ 21,310$ 520$

Windows - 0.70 m2 34 1998 15 15 19 19 2032 626$ 910$ 33$

Windows - 0.90 m2 34 1998 15 15 19 19 2032 804$ 1,170$ 42$

Windows - 1.00 m2 34 1998 15 15 19 19 2032 447$ 650$ 24$

Windows - 1.10 m2 34 1998 15 15 19 19 2032 8,355$ 12,170$ 440$

Windows - 1.15 m2 34 1998 15 15 19 19 2032 6,166$ 8,980$ 325$

Windows - 1.45 m2 34 1998 15 15 19 19 2032 18,788$ 27,370$ 989$

Windows - 1.66 m2 34 2013 0 0 34 34 3,708$ 109$

Windows - 1.90 m2 34 2013 0 0 34 34 849$ 25$

Windows - 2.10 m2 34 2013 0 0 34 34 1,877$ 55$

Windows - 2.33 m2 34 2013 0 0 34 34 26,026$ 765$

Windows - 3.00 m2 34 1998 15 15 19 19 2032 2,681$ 3,910$ 141$

Exterior Doors - Glass 2.60 m2 32 2000 13 18 19 14 2027 17,666$ 23,310$ 1,262$

Unit Doors - Solid Wood 1.50 m2 32 1990 23 20 9 12 2025 10,646$ 13,500$ 887$

Fire Rated Stairwell Doors - Steel 1.80 m2 25 1995 18 18 7 7 2020 4,223$ 4,850$ 603$

Mechanical/Storage Doors - Hollow Wood 1.50 m2 20 1985 28 15 -8 5 2018 2038 2,191$ 2,420$ 3,590$ 438$

Subtotal 11,234$

Mechanical Systems

Electric Baseboard Heaters in Hallways 20 2013 0 0 20 20 2033 3,803$ 5,650$ 190$

Fire Protection and Life Safety System 15 2000 13 13 2 2 2015 2030 8,238$ 8,570$ 11,540$ 4,119$

Access System 15 2013 0 0 15 15 2028 4,877$ 6,560$ 325$

Subtotal 4,634$

Future Replacement Dates to 2042 Future Replacement Dates to 2042

28

Future Replacement Cost Schedule & Budget


Lifespan

Actual or

Approximate

Year of

Acquisition or

Replacement

Actual or

Approximate

Average Age

Effective Age

Remaining

Lifespan

Actual

Remaining

Lifespan

Effective

1st 2nd 3rd 4th

Current

Replacement

Cost

1st Replacement

Cost (Rounded)

2nd

Replacement

Cost (Rounded)

3rd Replacement

Cost (Rounded)

4th Replacement

Cost (Rounded)

1st Replacment

Annual

Contribution (based

on Remaining

Lifespan Effective)

Decoration

Interior Flooring - Ceramic Tile Main Floor 40 2013 0 0 40 40 22,734$ 568$

Interior Flooring - Vinyl Tile Laundry Room 10 2013 0 0 10 10 2023 2033 384$ 470$ 570$ 38$

Interior Flooring - Ceramic Tile Upper Hallway 40 1985 28 20 12 20 2033 15,918$ 23,650$ 796$

Interior Flooring - Vinyl Tile Lower Hallway 10 2000 13 8 -3 2 2015 2025 2035 2,098$ 2,180$ 2,660$ 3,240$ 1,049$

Interior Flooring - Carpet 7 2013 0 0 7 7 2020 2027 2034 2041 938$ 1,080$ 1,240$ 1,420$ 1,630$ 134$

Interior Paint - 2 Coats, No Primer 10 2013 0 0 10 10 2023 2033 16,125$ 19,660$ 23,960$ 1,612$

Interior Paint - Ceilings 10 2013 0 0 10 10 2023 2033 4,538$ 5,530$ 6,740$ 454$

Subtotal 4,652$

Non Capital Assets

Reserve Fund Studes 9 2013 0 0 9 9 2022 2031 2040 3,000$ 3,590$ 4,280$ 5,120$ 333$

2013 Reserve Fund Study Updates 1 & 2 3 2013 0 0 3 3 2016 2019 1,500$ 1,590$ 1,690$ 500$

2022 Reserve Fund Study Updates 1 & 2 3 2022 -9 -9 12 12 2025 2028 1,500$ 1,900$ 2,020$ (see Update Above)

2031 Reserve Fund Study Updates 1 & 2 3 2031 -18 -18 21 21 2034 2037 1,500$ 2,270$ 2,410$ (see Update Above)

Subtotal 833$


Concrete Walkways 21 2013 0 0 21 21 2034 6,486$ 9,830$ 309$

Uni-Stone Walkway 16 2013 0 0 16 16 2029 4,369$ 6,000$ 273$

Asphalt Paving - 3" Repaving Cost 11 2013 0 0 11 11 2024 2035 66,465$ 82,640$ 102,750$ 6,042$

Subtotal 6,624$

Total Total Cost 27,978$

Per Unit Per Unit 1,166$

Future Replacement Dates to 2042 Future Replacement Dates to 2042

29

Inflated Capital Cost Budget

Building Element 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027


Foundations & Underground Services - - - - - - - - - - - - - - -

Roof - Modified Bitumin Main Building - - - - - - - - - - - - - - -

Roof - Tar & Gravel Breezeway - - - - - - - 1,738 - - - - - - -

Roof - Tar & Gravel Meeting Hall - - - - - - - 15,654 - - - - - - -

Entrance Roof Spring Street - Roof - - - - - - - - - - - - - - -

Entrance Roof Breezeway - Roof - - - - - - - - - - - - - - -

Entrance Roof St Paul Street - Roof - - - - - - - - - - - - - - -

Entrance Breezeway - Stairs - - - - - - - - - - - 3,825 - - -

Vinyl Siding - - - - - - - - - - - - - - -

Windows - 0.70 m2 - - - - - - - - - - - - - - -

Windows - 0.90 m2 - - - - - - - - - - - - - - -

Windows - 1.00 m2 - - - - - - - - - - - - - - -

Windows - 1.10 m2 - - - - - - - - - - - - - - -

Windows - 1.15 m2 - - - - - - - - - - - - - - -

Windows - 1.45 m2 - - - - - - - - - - - - - - -

Windows - 1.66 m2 - - - - - - - - - - - - - - -

Windows - 1.90 m2 - - - - - - - - - - - - - - -

Windows - 2.10 m2 - - - - - - - - - - - - - - -

Windows - 2.33 m2 - - - - - - - - - - - - - - -

Windows - 3.00 m2 - - - - - - - - - - - - - - -

Exterior Doors - Glass 2.60 m2 - - - - - - - - - - - - - - 23,309

Unit Doors - Solid Wood 1.50 m2 - - - - - - - - - - - - 13,502 - -

Fire Rated Stairwell Doors - Steel 1.80 m2 - - - - - - - 4,851 - - - - - - -

Mechanical/Storage Doors - Hollow Wood 1.50 m2 - - - - - 2,419 - - - - - - - - -

Subtotal - - - - - 2,419 - 22,243 - - - 3,825 13,502 - 23,309

Mechanical Systems

Electric Baseboard Heaters in Hallways - - - - - - - - - - - - - - -

Fire Protection and Life Safety System - - 8,571 - - - - - - - - - - - -

Access System - - - - - - - - - - - - - - -

Subtotal - - 8,571 - - - - - - - - - - - -

Year Ending

30




Foundations & Underground Services - - - - - - - - - - - - - - -

Roof - Modified Bitumin Main Building - - - - - 62,215 - - - - - - - - -

Roof - Tar & Gravel Breezeway - - - - - - - - 2,386 - - - - - -

Roof - Tar & Gravel Meeting Hall - - - - - - - - 21,490 - - - - - -

Entrance Roof Spring Street - Roof - - - - - - - 422 - - - - - - -

Entrance Roof Breezeway - Roof - - - - - - 414 - - - - - - - -

Entrance Roof St Paul Street - Roof - - - - - - 472 - - - - - - - -

Entrance Breezeway - Stairs - - - - - - - - 4,851 - - - - - -

Vinyl Siding - - - - - - - - - - 21,310 - - - -

Windows - 0.70 m2 - - - - 911 - - - - - - - - - -

Windows - 0.90 m2 - - - - 1,172 - - - - - - - - - -

Windows - 1.00 m2 - - - - 651 - - - - - - - - - -

Windows - 1.10 m2 - - - - 12,172 - - - - - - - - - -

Windows - 1.15 m2 - - - - 8,982 - - - - - - - - - -

Windows - 1.45 m2 - - - - 27,370 - - - - - - - - - -

Windows - 1.66 m2 - - - - - - - - - - - - - - -

Windows - 1.90 m2 - - - - - - - - - - - - - - -

Windows - 2.10 m2 - - - - - - - - - - - - - - -

Windows - 2.33 m2 - - - - - - - - - - - - - - -

Windows - 3.00 m2 - - - - 3,905 - - - - - - - - - -

Exterior Doors - Glass 2.60 m2 - - - - - - - - - - - - - - -

Unit Doors - Solid Wood 1.50 m2 - - - - - - - - - - - - - - -

Fire Rated Stairwell Doors - Steel 1.80 m2 - - - - - - - - - - - - - - -

Mechanical/Storage Doors - Hollow Wood 1.50 m2 - - - - - - - - - - 3,594 - - - -

Subtotal - - - - 55,164 62,215 886 422 28,728 - 24,904 - - - -

Mechanical Systems

Electric Baseboard Heaters in Hallways - - - - - 5,651 - - - - - - - - -

Fire Protection and Life Safety System - - 11,535 - - - - - - - - - - - -

Access System 6,563 - - - - - - - - - - - - - -

Subtotal 6,563 - 11,535 - - 5,651 - - - - - - - - -

Year Ending

31



Decoration

Interior Flooring - Ceramic Tile Main Floor - - - - - - - - - - - - - - -

Interior Flooring - Vinyl Tile Laundry Room - - - - - - - - - - 468 - - - -

Interior Flooring - Ceramic Tile Upper Hallway - - - - - - - - - - - - - - -

Interior Flooring - Vinyl Tile Lower Hallway - - 2,182 - - - - - - - - - 2,660 - -

Interior Flooring - Carpet - - - - - - - 1,078 - - - - - - 1,238

Interior Paint - 2 Coats, No Primer - - - - - - - - - - 19,656 - - - -

Interior Paint - Ceilings - - - - - - - - - - 5,532 - - - -

Subtotal - - 2,182 - - - - 1,078 - - 25,656 - 2,660 - 1,238

Non Capital Assets

Reserve Fund Studes - - - - - - - - - 3,585 - - - - -

2013 Reserve Fund Study Updates 1 & 2 - - - 1,592 - - 1,689 - - - - - - - -

2022 Reserve Fund Study Updates 1 & 2 - - - - - - - - - - - - 1,902 - -

2031 Reserve Fund Study Updates 1 & 2 - - - - - - - - - - - - - - -

Subtotal - - - 1,592 - - 1,689 - - 3,585 - - 1,902 - -


Concrete Walkways - - - - - - - - - - - - - - -

Uni-Stone Walkway - - - - - - - - - - - - - - -

Asphalt Paving - 3" Repaving Cost - - - - - - - - - - - 82,641 - - -

Subtotal - - - - - - - - - - - 82,641 - - -

Total - - 10,753 1,592 - 2,419 1,689 23,321 - 3,585 25,656 86,467 18,065 - 24,547

Per Unit

Reserve Balance as of January 1, 2013 - 15,868 32,608 39,316 55,912 75,044 92,729 112,125 110,547 133,007 152,978 151,570 88,624 93,469 117,267

Reserve Shortfall as of January 1, 2013

% Funded

Average Annual Contribution (2013 value inflated by 2.0% p.a.)15,595 15,907 16,225 16,549 16,880 17,218 17,562 17,913 18,272 18,637 19,010 19,390 19,778 20,173 20,577

Special Assessments

Capital Costs - - 10,753- 1,592- - 2,419- 1,689- 23,321- - 3,585- 25,656- 86,467- 18,065- - 24,547-

Interest Earned (3.5% interest, avg. balance ) 273 834 1,237 1,638 2,252 2,886 3,523 3,830 4,189 4,919 5,238 4,131 3,132 3,624 4,035

Ending Reserve Account Balance 15,868 32,608 39,316 55,912 75,044 92,729 112,125 110,547 133,007 152,978 151,570 88,624 93,469 117,267 117,331

Annual Contribution Per Unit (average) 650$ 663$ 676$ 690$ 703$ 717$ 732$ 746$ 761$ 777$ 792$ 808$ 824$ 841$ 857$

Monthly Contribution Per Unit (average) 54.15$ 55.23$ 56.34$ 57.46$ 58.61$ 59.78$ 60.98$ 62.20$ 63.44$ 64.71$ 66.01$ 67.33$ 68.67$ 70.05$ 71.45$

Year Ending

32



Decoration

Interior Flooring - Ceramic Tile Main Floor - - - - - - - - - - - - - - -

Interior Flooring - Vinyl Tile Laundry Room - - - - - 570 - - - - - - - - -

Interior Flooring - Ceramic Tile Upper Hallway - - - - - 23,653 - - - - - - - - -

Interior Flooring - Vinyl Tile Lower Hallway - - - - - - - 3,243 - - - - - - -

Interior Flooring - Carpet - - - - - - 1,422 - - - - - - 1,633 -

Interior Paint - 2 Coats, No Primer - - - - - 23,961 - - - - - - - - -

Interior Paint - Ceilings - - - - - 6,743 - - - - - - - - -

Subtotal - - - - - 54,928 1,422 3,243 - - - - - 1,633 -

Non Capital Assets

Reserve Fund Studes - - - 4,285 - - - - - - - - 5,121 - -

2013 Reserve Fund Study Updates 1 & 2 - - - - - - - - - - - - - - -

2022 Reserve Fund Study Updates 1 & 2 2,019 - - - - - - - - - - - - - -

2031 Reserve Fund Study Updates 1 & 2 - - - - - - 2,273 - - 2,413 - - - - -

Subtotal 2,019 - - 4,285 - - 2,273 - - 2,413 - - 5,121 - -


Concrete Walkways - - - - - - 9,831 - - - - - - - -

Uni-Stone Walkway - 5,997 - - - - - - - - - - - - -

Asphalt Paving - 3" Repaving Cost - - - - - - - 102,754 - - - - - - -

Subtotal - 5,997 - - - - 9,831 102,754 - - - - - - -

Total 8,582 5,997 11,535 4,285 55,164 122,794 14,413 106,419 28,728 2,413 24,904 - 5,121 1,633 -

Per Unit

Reserve Balance as of January 1, 2013 117,331 134,061 154,434 170,320 194,585 168,382 72,911 84,848 4,066 0- 23,067 24,567 51,980 75,673 104,286

Reserve Shortfall as of January 1, 2013

% Funded

Average Annual Contribution (2013 value inflated by 2.0% p.a.)20,988 21,408 21,836 22,273 22,718 23,173 23,636 24,109 24,591 25,083 25,585 26,096 26,618 27,151 27,694

Special Assessments

Capital Costs 8,582- 5,997- 11,535- 4,285- 55,164- 122,794- 14,413- 106,419- 28,728- 2,413- 24,904- - 5,121- 1,633- -

Interest Earned (3.5% interest, avg. balance ) 4,324 4,962 5,585 6,276 6,243 4,150 2,713 1,529 70 397 819 1,317 2,196 3,095 4,135

Ending Reserve Account Balance 134,061 154,434 170,320 194,585 168,382 72,911 84,848 4,066 0- 23,067 24,567 51,980 75,673 104,286 136,114

Annual Contribution Per Unit (average) 875$ 892$ 910$ 928$ 947$ 966$ 985$ 1,005$ 1,025$ 1,045$ 1,066$ 1,087$ 1,109$ 1,131$ 1,154$

Monthly Contribution Per Unit (average) 72.88$ 74.33$ 75.82$ 77.34$ 78.88$ 80.46$ 82.07$ 83.71$ 85.39$ 87.09$ 88.84$ 90.61$ 92.42$ 94.27$ 96.16$

Year Ending

33

Aerial View of 55 Summer Lane and Neighbourhood

Subject

34

View of Summer Lane Entrance (note that the entrance roof is yet to be added)

View of St. Paul Street Entrance (new in 2012)

35

View of Breezeway Entrance to Subject (new in 2012)

View of New Windows on Two-Storey Section of Building

36

View of Property from Summer Lane

View of Newly Paved Parking Lot at Subject

37

View of Brick Work on St. Paul Frontage of Subject

View of New Uni-Stone Brick Walkway at Subject

38

View of Interior Hallway Showing Decoration at Subject

Documents

Please note that this case study has been updated … · provided for your convenience and readers are advised to refer to the full text of this Reserve ... Appraiser, AACI Comment