Good Morning, while this post might only be applicable to clients living in a strata property, many of us might be heading that way moving forward!
People living in a strata deserve to have peace of mind that their strata corporation has the appropriate reserves to do routine maintenance and keep strata insurance costs down.
Strata corporations in B.C. are required to have a contingency reserve fund (CRF) to pay for infrequent common expenses, such as maintenance work and emergencies. These new rules will increase the minimum amount that developers and strata corporations are required to contribute to a CRF, from 5% to at least 10% of the annual operating expenses every year. These changes will take effect on Nov. 1, 2023.
The new minimums were set with the advice of strata managers and homeowner representatives. According to strata industry experts, the vast majority of approximately 34,000 strata corporations in the province exceed this minimum amount and will not be affected by this change.
It is important that your building has a healthy C.R.F. It has been my experience that contractors will often shy away from buildings for repairs if they find it difficult to get paid for their work. Having a depleted C.R.F. is also a red flag for buyers.
Call me to chat about your value and how to improve your strata value and the value of your building. I am happy to help.