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Summary of Legislative Amendments

As of April 9, 2014, Section 92 of the Strata Property Act was amended to clarify that the cost of a depreciation report can be an operating expense. This means the cost to obtain depreciation report may be included in the annual budget, which is approved by a majority vote.

Also effective April 9, 2014, the cost to obtain a depreciation report can be paid out of the contingency reserve fund (CRF) by a majority vote.

This creates an exception to the general rule that a three-quarter vote resolution is required to approve expenditures from the CRF. Owners are now permitted to approve funding for repairs, maintenance or replacement recommended in the most recent depreciation report by a majority vote.

To summarize: a strata corporation can now use a majority vote to fund both a depreciation report and the work recommended in the depreciation report from the Contingency Reserve Fund Account.

(This information is included in the CHOA Fall Journal, 2014)


Member of CHOA

 

Edmond Schweitzer

Edmond Schweitzer
Qualified Reserve Fund Planner

What is Reserve Fund Planning?

And what is a Depreciation Report?

Condo unit in OsoyoosDepreciation Reports are intended to help strata corporations plan for the repair, maintenance and replacement of common property, limited common property and common assets.

To be done right, these must contain:

Depreciation reports are meant to provide useful information to strata lot owners, prospective purchasers, mortgage providers and insurance companies.

For more information, see About RFP Inc. or Contact Ed.

Why Edmond Schweitzer?

Better Business BureauRFP Reserve Fund Planning Inc is an established Osoyoos, B.C. based consulting firm, serving strata corporations throughout the Okanagan and neighbouring regions.

Our primary goal is to work with councils to produce meaningful Depreciation Reports. The company is covered by errors and omissions insurance, and has earned Better Business Bureau Accreditation.