New BC Regulations to Increase Minimum Contributions for Contingency Reserve Funds

As of November 1, 2023, new regulations will come into effect that increases the minimum amount developers and strata corporations in BC are required to contribute towards contingency reserve funds.
Categories: Personal Insurance
Feb 16th, 2023 | By: CapriCMW

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. 

Recent Blog Posts

Business Insurance / Manufacturing, wood product, wood processing
Actual Cash Value or Replacement Cost: 9 Key Considerations

Insuring property on an actual cash value (ACV) basis could lead a manufacturing business to…

Mar 24th, 2023 | By: Will Downing
Personal Insurance / data breach, cybersecurity, cybercrime
How Safe is Your Password?

Cybercrime is more rampant than ever before - attacks are growing in sophistication year by year…

Mar 6th, 2023 | By: CapriCMW
Employee Benefits / pay transparency, pay equity
BC Government Introduces New Pay Transparency Legislation

If passed, the new legislation will require employers meeting a certain employee size threshold to…

Feb 24th, 2023 | By: CapriCMW
Search the Blog

Confidence and Freedom

At CapriCMW, we provide personalized insurance and custom risk solutions to give you the confidence and freedom to focus on what matters to you. Talk to an Advisor or get a quote today.

Get a Quote    Or call 1-800-670-1877

Can’t find what you are looking for? Ask us!