The legislation requires that each depreciation report provides three scenarios.
Writers have been proposing at least three scenarios based on a myriad of provider idiosyncrasies.
Common sense dictates that one scenario should represents the future for a condo | strata corporation that elects to continue approaching and funding their requirements the way they currently are.
The REIC’s functional approach makes it clear that another scenario should be the benchmark scenario that is based on the component inventory, with some components appearing once in the 30 years scenarios, some twice or more, and some not at all during the projection but sometimes during the life of the development.
It thus follows that the third scenario can be – assuming that it meets the SPA’s requirements – any plan that falls on a spectrum between the statutory SPA requirements and the benchmark.