Quebec Cooperatives Act: Section 221.2.3 Adopted

Since October 1, section 221.2.3 of the Cooperatives Act, which aims to ensure the long-term sustainability of cooperative housing stock, has been in force.

The main points of this section include:

1. The obligation to have a building inspection carried out every 5 years by a recognized professional;
2. The obligation to present this expert’s inspection report to the general meeting of the cooperative’s members;
3. The obligation to prepare a five-year work plan, including the budgets required to carry it out.

The cooperative’s board of directors will therefore need to plan this inspection of the building and the units.

Nivoex provides these inspection services for cooperatives.

Each component inspected is commented on in a report that includes our analysis and recommendations. Numerous photos support our findings.

We also combine this with a study to establish a capital replacement plan over 5 years and over 25 years.

The capital replacement plan study will help the cooperative prepare its five-year plan (preventive maintenance plan), determine the budgets for the work and set the annual contribution to the replacement reserve in order to comply with this new section of the Act.

The study is presented as a forecast table showing when the work should be carried out.

This table specifies:

1. The building components that will require major repairs, or the items in the units that will need to be replaced;
2. The theoretical and remaining service life, as well as the age of the components;
3. The chronological order of the work to be done in the coming years;
4. The estimated (budget) replacement cost of each component;
5. The amounts that must be paid into the capital replacement plan to carry out major repairs or component replacements;
6. Various potential contribution scenarios.

Contact us for information about our services or to book an appointment

NIVOEXT: 450-695-1265Toll-free: 1-855-595-1265info@nivoex.com

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