As of November 1, 2023, new regulations will come into effect across BC that increases minimum amounts developers and strata corporations must contribute towards contingency reserve funds.
Strata corporations will be required to contribute at least 10 per cent of their annual operating budgets towards contingency reserve funds, up from 5 per cent previously. Meanwhile, developers will be required to include CRF contributions equal to at least 10 per cent of operating expenses in the interim budgets of new buildings.
These regulatory changes are designed to ensure strata corporations maintain healthy contingency reserve funds needed to cover necessary maintenance and emergency expenses - avoiding insurance premium increases and unexpected levies. Adequate reserves are particularly important with the significant number of aging buildings across BC. Additionally, new minimum CRF amounts in interim budgets prevent developers from underestimating strata fees, avoiding unexpected fee hikes in the first few years following new buildings being completed.
Currently, there are approximately 34,000 strata corporations in BC that represent close to a million units. According to the Ministry of Housing, the majority are already meeting the minimum CRF contribution threshold.
See the official Government of BC news release to learn more about the new requirements coming into force in 2023.