New contingency reserve fund rules for BC stratas

Why your reserve fund matters more than ever

If you own a strata lot in BC, your building's contingency reserve fund (CRF) is one of the most important numbers you'll rarely think about day to day. It's the shared savings account that pays for the big stuff — a new roof, elevator modernization, repiping, a membrane replacement — so those costs don't land on owners as a sudden, painful special levy.

Here's something councils sometimes forget: the CRF isn't optional or a "nice to have." Under BC's Strata Property Act, a strata corporation must establish and maintain a contingency reserve fund and budget an annual contribution to it. A healthy CRF is what keeps a building from lurching from crisis to crisis. It's also a core part of what your strata fees pay for.

What's actually changing

Over the past few years, the Province has been tightening the rules around depreciation reports, and the direction of travel is fairly clear: fewer ways to opt out, more regular reporting, and stronger expectations that reserve planning is grounded in real numbers. If your strata hasn't looked at this recently, start with the 2026 depreciation-report deadline and what it means for your building.

A depreciation report is a long-range forecast. A qualified provider inspects your building's major components, estimates their remaining life and replacement cost, and models how much the strata should be setting aside each year to avoid big shortfalls down the road. The general expectation is that these reports are updated on a recurring cycle rather than done once and shelved. (Wondering about the price tag? See how much a depreciation report costs in BC.)

We're framing this carefully on purpose. The exact effective dates, renewal intervals, and any threshold for how many lots trigger a requirement have shifted over time and are still being phased in. Rather than quote a figure that may be out of date by the time you read it, confirm the current requirements for your building with a strata lawyer or a qualified depreciation-report provider. What we can say with confidence is the trend: it's getting harder for a strata to simply keep voting to skip its depreciation report.

Minimum contributions, in plain terms

The Act sets a floor for how much a strata must contribute to its CRF each year, based on a proportion of your operating expenses. It's a baseline, not a target. Meeting the legal minimum doesn't mean your fund is adequately funded for what's coming — for how to size it properly, see how much a BC strata's contingency fund should be.

This is where the depreciation report earns its keep. A building with an aging roof and original plumbing may need to contribute well above the statutory minimum to stay ahead of its obligations. The report gives council a defensible, evidence-based figure — and gives owners a clear reason when contributions rise at the AGM.

Because the specific formula and any thresholds can change, it's worth not relying on rules of thumb. Have your figures reviewed against the current legislation and your most recent depreciation report before you finalize a budget.

How council should plan

You don't need to become a legislative expert. You need a repeatable process:

• Get the report done and keep it current. Treat the depreciation report as a living document that informs every budget, not a compliance box you tick once.
• Read it, don't just file it. Walk through the funding scenarios with your provider so council understands the trade-offs between higher contributions now and larger levies later.
• Fund toward the future, not just the floor. If the report shows a shortfall, phasing in contribution increases over a few years is usually kinder to owners than a surprise special levy.
• Communicate early and plainly. Owners take fee increases far better when they understand what the money protects and can see the numbers behind it.
• Protect the fund's purpose. CRF money is generally reserved for common expenses that don't usually occur more than once a year, and there are rules about how and when it can be spent — often a vote is required. When in doubt, get advice before dipping in.

A well-run CRF is quiet. It rarely makes headlines at your AGM, because the roof got replaced on schedule and nobody had to remortgage to cover it. That's the goal.

This article is general information about the BC Strata Property Act framework, not legal, accounting, or financial advice. Rules and timelines change, and every building is different. Confirm your strata's specific obligations with a strata lawyer, an accountant, or a qualified depreciation-report provider.

Frequently asked questions

Is a contingency reserve fund mandatory in BC? Yes. Under the Strata Property Act every strata corporation must establish a CRF and budget an annual contribution to it. It isn't optional, even for small buildings.

How much does our strata have to contribute to the CRF each year? The Act sets a minimum annual contribution tied to a percentage of your operating budget, but that floor is rarely enough on its own. A current depreciation report gives council an evidence-based number to fund toward. See our guide on how big the fund should be.

Can the strata spend CRF money on anything? No. CRF money is generally reserved for common expenses that don't usually recur more than once a year, and spending it often requires an owner vote. When in doubt, get advice before drawing on the fund.

What happens if the reserve fund runs short? The strata typically has to raise the shortfall through a special levy — a one-time charge owners vote on. Keeping the CRF healthy is how councils avoid those surprises. Here's how special levies work.

Related reading

• What Do Strata Fees Cover in BC?
• How Much Should a BC Strata's Contingency Fund Be?
• BC Strata Depreciation Reports: The 2026 Deadline Explained
• How Much Does a Depreciation Report Cost in BC?
• What Is a Special Levy in BC?

How Onehive helps

We manage small and mid-sized strata communities — the small and mid-sized buildings where reserve planning tends to get overlooked until it's urgent. Onehive keeps your depreciation report on schedule, builds budgets that reflect what your building actually needs, and handles the trust accounting so your CRF is tracked cleanly and transparently. Owners get a searchable document library, online statements. Keeping reserve planning clean is part of our strata financial management. Call us at 778-386-2058 or email info@onehivepm.com, or request a proposal — we answer within one business day.