How to Calculate Your CRF Contribution

Every BC strata corporation runs two funds: an operating fund for expenses that happen once a year or more often, and a contingency reserve fund (CRF) for expenses that usually happen less often than once a year or that do not usually occur at all. That split comes from section 92 of the Strata Property Act. Roofs, elevators, boilers, repiping, envelope work — those are CRF territory.

The question councils ask every budget season is how much to put in. Here is how the calculation actually works.

The floor: 10% of your operating fund contribution

Under section 93, the strata corporation determines its own annual CRF contribution — but subject to the Regulation. And since November 1, 2023, Strata Property Regulation s.6.1 requires that the annual contribution be at least 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and that the amount be determined after consideration of the most recent depreciation report, if the strata has one. A parallel rule in s.3.4 sets the same 10% floor for the first budget following the first annual general meeting.

This applies to each strata corporation and each section that budgets separately. The older rule many councils still quote — that no contribution is required once the CRF reaches 25% of the operating budget — is superseded and should never be treated as current. See the Province's budgeting and strata fees page.

The arithmetic, step by step

There is no official "strata contingency reserve fund calculator," but the CRF contribution calculation in BC is straightforward:

1. Build the operating budget first. Total every recurring expense: insurance, utilities, landscaping, cleaning, management, routine maintenance, administration.
2. Multiply the operating total by 10%. If your budgeted operating contribution is $240,000, your statutory minimum CRF contribution is $24,000.
3. Compare that to your depreciation report. The report estimates repair and replacement costs for major items and their expected life. If it models a funding level well above 10%, the minimum is just a floor — not a target.
4. Add the two contributions and allocate the total across strata lots to get strata fees.

The Regulation sets a floor, not a ceiling. Nothing in the text quoted above caps what owners may approve, so a council that funds above the minimum is on solid ground. For how this feeds into the rest of the budget, see How to Prepare a Strata Annual Budget in BC.

How much should a strata put in the CRF?

Q: Is 10% enough?

Often not. Ten percent is a legislated minimum, not an engineering answer. A 1970s woodframe building facing envelope work has a very different need than a ten-year-old concrete tower. The honest answer is that the right number comes from your depreciation report, not from a percentage.

Q: Do we need a depreciation report?

Strata corporations of 5 or more lots must obtain one from a qualified person under section 94 — the old 3/4-vote waiver is gone. The deadline is July 1, 2026 for Metro Vancouver, the Fraser Valley and the Capital Regional District, and July 1, 2027 elsewhere in BC, with renewal every 5 years (Province of BC).

Q: Who pays what share?

Each strata lot's share of both fund contributions is calculated by unit entitlement under section 99, using the Schedule of Unit Entitlement filed with the strata plan. A different formula is possible only by unanimous vote under section 100, and it has no effect until filed in the land title office. More in How Strata Fees Work in BC.

Budget for the electrical planning report too

Section 92 expressly makes the cost of obtaining a depreciation report and an electrical planning report (s.94.1) an operating fund expense. Stratas of 5+ lots need the electrical planning report by December 31, 2026 (Metro Vancouver / Fraser Valley / Capital RD) or December 31, 2028 elsewhere (Province of BC). Budget the fee now so it does not blindside next year's numbers.

Spending it, and holding it

Collecting is only half the job. Under section 96, CRF spending needs only a majority vote in five cases: obtaining a depreciation report; repair, maintenance or replacement recommended in the most current depreciation report of common property, common assets or portions of a strata lot the strata has taken responsibility for under s.72(3); installing EV charging infrastructure or managing the electricity it uses; obtaining an electrical planning report; and obtaining other EV charging reports. Every other CRF expenditure needs a 3/4 vote — at least 3/4 of the votes cast by eligible voters present in person or by proxy, excluding abstentions (s.1). The Province's CRF page sets this out.

The money must be accounted for separately and invested in permitted investments or insured accounts with BC savings institutions (s.95), with the permitted list expanded by Regulation s.6.11. Interest earned stays in the fund. A short-term loan to the operating fund is possible only on the narrow conditions in s.6.3 — repaid by fiscal year end, and only to cover a temporary timing shortage — and owners must be told the amount and purpose as soon as feasible. For newer corporations, s.6.23 requires an owner developer to seed the CRF where the strata is established on or after July 1, 2027.

Make the math reviewable

Owners approve the budget, so show your work: the operating total, the 10% calculation, the depreciation report scenario you relied on, and why council chose the number it did. If your depreciation report runs to 200 pages, tools like SearchStrata can help council and owners surface the relevant funding scenarios and renewal timelines quickly.

Keep that reasoning with the corporation's records. Management companies and councils change; the budgets, minutes and votes behind your CRF decisions belong to the strata corporation, and platforms like ManageStrata exist so that history stays with the corporation rather than walking out the door. For the wider picture, see our complete guide to the strata contingency reserve fund.

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.