Condominium Smarts: Right here's what it’s essential find out about new strata laws in impact November 1

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Pricey Tony:

Our property supervisor suggested us that our minimal contributions for our AGM will likely be efficient Nov. 1, however we’re holding our assembly on Oct. 25. With the rise of all working prices, we hoped to delay any contribution this yr to offset important will increase in strata charges.

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Might you please present particulars and clarify the brand new laws?

We’re positive a number of strata companies in our North Surrey neighbourhood are in the identical state of affairs.

— Lucille

Pricey Lucille:

Here’s a abstract of the laws that come into impact quickly for all strata companies throughout BC:

Nov. 1, 2023, strata companies and sections will likely be required to contribute a minimal of 10 per cent of the annual working fund to the contingency reserve fund (CRF) when approving the finances on the AGM. The quantity that proprietor builders should contribute to the contingency reserve fund for brand spanking new strata developments has additionally elevated to 10 per cent.

Contingency reserve fund contributions in first annual finances

The quantity of the annual contribution to the contingency reserve fund for the fiscal yr following the primary annual common assembly should be no less than 10 per cent of the full quantity budgeted for the contribution to the working fund for the 12-month interval lined by that finances.

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Contributions to contingency reserve fund

The quantity of the annual contribution to the contingency reserve fund for a fiscal yr, apart from the fiscal yr following the primary annual common assembly, should be decided after consideration of the latest depreciation report, if any. The quantity of the annual contribution should be no less than 10 per cent of the full quantity budgeted for the contribution to the working fund for the present fiscal yr.

For strata companies whose fiscal yr begins Nov. 1, 2023, or are new strata companies efficient Nov. 1, 2023, the minimal now applies.

The advice to additionally evaluation the latest depreciation report encourages homeowners to judge their future monetary necessities and take into account growing contributions.

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There isn’t a restrict to the quantity which may be contributed; the finances — together with a contingency contribution — could also be amended at your annual assembly earlier than you vote on the ultimate finances.

Any curiosity earned on the contingency or particular levy funds turns into a part of these funds and is non-taxable for strata/rental companies in Canada.

CHOA encourages each strata company to fee a depreciation report and yearly evaluation pending initiatives inside the subsequent five- to 10-year cycle as a part of your annual assembly to find out future monetary calls for and funding choices.

An entire copy of the regulation is posted at choa.bc.ca.