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.