Author Description

Maintaining Canada's housing stock requires timely investment of funds for replacement of building elements and equipment. CMHC engaged IBI Group to survey experienced building professionals across Canada to obtain real life, non-theoretical estimates of service life for over 230 components in apartment buildings over five storeys high. The information was collected through a three-stage surveyand analysis process resulting in an average high-end and low-end estimate of service life for each building item. The resulting range was ten divided into approximately three equal sub-ranges: below average, average and above average length of service life. Using a model building, costs were developed based on specific assumptions for length of building life, inflation rate for construction and discount rate. This information produced a range of annual contribution amounts necessary to maintain the reserve fund. This report summarizes the study, lists the results and describes a process to make immediate use of the information. A generic reserve fund cash flow model has been prepared as part of this project. You may obtain a copy of the Excel spreadsheet from the following URL address: ftp://ftp.cmhc-schl.gc.ca/servicelife.