Strata Contingency Reserve Fund (CRF): A Complete Guide

Every BC strata corporation has two funds, and confusing them is one of the most common sources of trouble at general meetings. This guide walks through what the contingency reserve fund (CRF) is, how much has to go into it, where it can be held, and — the question that trips up most councils — which vote is needed to spend it.

What the CRF Is (and Isn't)

Under section 92 of the Strata Property Act, owners contribute through strata fees to two funds:

• the operating fund, for common expenses that usually occur once a year or more often — plus the cost of obtaining a depreciation report and an electrical planning report; and
• the contingency reserve fund, for common expenses that usually occur less often than once a year, or that do not usually occur.

So roof replacement, exterior envelope work, elevator modernization and boiler replacement are classic CRF items. Landscaping contracts, insurance premiums and utilities are operating-fund items. If you are building your fee structure from scratch, our guide on how to prepare a strata annual budget in BC covers how the two funds sit side by side.

How Much Must Go Into the CRF Each Year?

The strata corporation determines the annual contribution, subject to the regulations (s.93). The regulation sets a floor: the annual contribution must be at least 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and — except for the year following the first AGM — must be determined after consideration of the most recent depreciation report, if any (Strata Property Regulation s.6.1). The same 10% floor applies to the first annual budget after the first AGM (s.3.4).

Two points worth underlining:

• 10% is a minimum, not a target. A depreciation report showing major components near end of life is exactly the situation where a larger contribution is prudent.
• The old "25% cap" rule is gone. Some older strata documents still say no contribution is required once the CRF reaches 25% of the operating budget. That rule has been superseded and should not be relied on. The Province's budgeting and strata fees page reflects the current requirement.

Because the contribution is tied to the depreciation report, it helps to know how to read one — see how to read a depreciation report. Depreciation reports are required for strata corporations of 5 or more lots, renewed every 5 years and prepared by a qualified person (s.94); the deadlines are July 1, 2026 for Metro Vancouver, the Fraser Valley and the Capital Regional District, and July 1, 2027 elsewhere in BC, per the Province's depreciation report requirements.

Holding and Investing CRF Money

Section 95 requires the strata corporation to account for CRF money separately from its other money, and to invest all of it in permitted investments or insured accounts with savings institutions in BC. Interest earned becomes part of the fund. Regulation s.6.11 expands the permitted list to include, among others, CDIC- or CUDIC-eligible term deposits and GICs with predetermined interest rates, Government of Canada treasury bills, and certain highly rated bonds and fixed-income ETFs, each subject to the conditions in that section.

The CRF may lend money to the operating fund only in narrow circumstances: the loan must be repaid by the end of that fiscal year and must cover a temporary operating shortage caused by expenses falling due before contributions are collected, and owners must be informed of the amount and purpose as soon as feasible (Regulation s.6.3). This is not a workaround for chronic arrears — see collecting strata fee arrears in BC.

Q&A: Which Vote Does a CRF Expenditure Need?

Q: Does every CRF expenditure need a 3/4 vote?
No. Under s.96, the expenditure must be consistent with the purposes of the fund, and it needs only a majority vote at an annual or special general meeting in five cases:

• obtaining a depreciation report under s.94;
• repair, maintenance or replacement recommended in the most current depreciation report of common property, common assets, or the portions of a strata lot the corporation has taken responsibility for under s.72(3);
• installing EV charging infrastructure or managing the electricity it uses;
• obtaining an electrical planning report under s.94.1;
• obtaining any other report about EV charging infrastructure or the electricity it uses.

Anything else requires a 3/4 vote.

Q: What exactly is a "3/4 vote"?
Section 1 defines it as at least 3/4 of the votes cast by eligible voters present in person or by proxy when the vote is taken, excluding abstentions. It is not 3/4 of all owners, and abstentions do not count against the resolution. A majority vote is more than 1/2 of the votes cast on the same basis.

Q: Can council ever spend CRF money without an owners' vote?
Yes, in limited circumstances. Section 98 permits an expenditure from the operating fund or the CRF where there are reasonable grounds to believe an immediate expenditure is necessary to ensure safety or prevent significant loss or damage; it must not exceed the minimum needed, and owners must be informed as soon as feasible. Unapproved spending from the operating fund alone is capped at the amount in the bylaws, or — if the bylaws are silent — the lesser of $2,000 and 5% of the total operating-fund contribution for the year. Check your own registered bylaws for the figure and any added conditions. Separately, the Province notes that strata approval is not required for a CRF expenditure or special levy to cover an insurance deductible the strata must pay to repair damaged property, unless the strata has decided not to repair or replace.

New Strata Corporations

For strata corporations established on or after July 1, 2027, the owner developer must pay into the CRF, toward the first depreciation report, the lesser of $5,000 plus $200 per strata lot, or $30,000 — no later than the first AGM (Regulation s.6.23).

Keeping the Paper Trail Straight

CRF resolutions live or die on documentation: the wording that identifies the depreciation-report recommendation, the minutes recording the vote, and financials showing the fund accounted for separately. Self-managed councils using ManageStrata can keep budgets, resolutions and fund balances in one place, and tools like SearchStrata can apply AI analysis to depreciation reports and past minutes when you need to confirm whether a project was actually recommended in the current report.

This article is general information about BC strata law, not legal advice; verify against the current Strata Property Act and Regulation or consult a BC strata lawyer.