New Minimum Contributions to the CRF (as of November 1, 2023)

Strata Tip of the Week - New Minimum Contributions to the CRF (as of November 1, 2023)

1. Minimum CRF Contributions by the Strata Corporation:

Friendly reminder that as per Order in Council No. 32, as of November 1, 2023, the Strata Property Regulation has been amended so that strata corporations and sections must now allocate a minimum of 10% of their annual operating fund to the contingency reserve fund (CRF).

This contribution is required on an annual basis, regardless of the current CRF balance. Previously, contributions were necessary only if the CRF balance fell below a specified minimum.

2. Minimum CRF Contributions by the Owner Developer:

As of November 1, 2023, changes are also coming for new strata corporations. As per the Strata Property Act, the owner developer must establish a contingency reserve fund by paying into the fund. The amount that the owner developer needs to contribute to the CRF has changed, and depends on when the first strata lot is conveyed.

a) If the first conveyance occurs within one year after the deposit of the strata plan, the minimum contribution must now be:

• 10% of the estimated operating expenses, as set out in the interim budget.

b) If the first conveyance occurs later than one year after the deposit of the strata plan, the minimum contribution must now be the lesser of:

• 10% of the estimated annual operating expenses, as set out in the interim budget, multiplied by the number of years or partial years since the deposit of the strata plan, or
• 50% of the estimated annual operating expenses as set out in the interim budget