Replacement Reserves
Replacement reserves are established for the purpose of
replacing capital items over the life of a building. See
the
Standardized List of Replacement Reserve Items
for details.
The budgeted annual replacement reserve provision is based on a
fixed list of eligible items and does not normally change from year
to year.
Changes to the annual replacement reserve provision can be done
at the beginning of a building’s budget year when one
of the following occurs:
-
The threshold funding level is below the minimum level established by BC Housing.
-
The society has submitted a capital plan which indicates that they do not have sufficient funds to meet their requirements within the next 5 years.
-
The existing schedule requires corrections, due to substantial changes in item costs, missing or incorrect items.
If these circumstances occur, you are asked to submit a new
Replacement Reserve schedule and a capital planning worksheet where
applicable as part of your operating budget
submission.
-
Annual provision replacement reserve schedule (PDF) Seniors / Families and others
Once these adjustments are done, there will be not further
changes required to the lump sum funding model until one of the
above conditions is met again.
