Advisory

Purpose

On January 24, 2023, the Government of B.C. announced amendments to the Strata Property Regulation in relation to the Form B: Information Certificate (“Form B”) and contributions to contingency reserve funds.

This Advisory is intended to inform strata management services licensees of what these changes mean for strata councils.

Background

The Government of B.C. has deposited the following amendments to the Strata Property Regulation (“the Regulation”):

• Effective April 1, 2023, strata corporations and sections will have to provide a summary of their insurance coverage on the Form B; and
• Effective November 1, 2023, when approving budgets at the annual general meeting, strata corporations and sections will be legally required to contribute a minimum of 10 per cent of the annual operating fund to the contingency reserve fund (“CRF”). The amount that owner developers must contribute to the CRF for new strata developments has also increased. 

Strata managers should inform their strata council clients of the changes to the Regulation in relation to annual budget and contingency reserve planning. If the strata corporation’s bylaws contain provisions regarding minimum annual CRF contributions, strata managers should also advise their strata council clients to review these provisions to determine whether they need to be updated to reflect the upcoming amendments to the Regulation.

Strata managers must ensure that they include certain information about insurance coverage when completing the Form B on behalf of their strata council clients. Strata managers should also ensure they are using the most current prescribed version of the Form B and other provincially prescribed forms when completing these important disclosures to consumers.

Additional Information

To learn more, please refer to:

• B.C. government news release: Amendments will better protect B.C. strata owners, lessen insurance costs;
• Ministry of Housing website, which includes an optional email subscription service to keep informed of any upcoming changes to strata legislation;
• Order in Council; and

• BCFSA Advisory 23-015, “Effect of Amendments to Strata Property Act on Real Estate Development Marketing Act Disclosure Statements.”  

If you have questions about this Advisory, contact BCFSA’s Practice Standards Advisors.