Dear Tony: Can you confirm strata corporations can no longer be exempt from depreciation reports and must obtain an electrical planning report? At our annual meeting the property manager said we can still be exempt from the requirements for a depreciation report provided we vote to extend the period of exemption. We have been unable to confirm this information and while we are only a 35-unit townhouse complex, many owners have been pushing for a depreciation report before our buildings age significantly.
Jeremy S. North Vancouver
Beginning 2023, new legislation and regulations were brought into effect that apply to both depreciation reports and electrical planning reports. They are now mandatory for strata corporations of five units or greater. This includes bare land, townhouse and apartment style strata buildings.
The requirement for an electric planning report is now in effect and the reports must be completed for the defined areas, predominantly metro Vancouver and the Capital Region by Dec. 31, 2026, and all other areas by Dec. 31, 2028. At this time, electric planning reports are a one-time requirement; however, local governments may impose updated permit requirements for major renovations or increased electrical demands. Similar conditions also apply to deprecation reports.
As of July 1, 2024, strata corporations are no longer permitted to pass an exemption from the requirement for depreciation reports. Strata corporations without depreciation reports, or depreciation reports received prior to Dec. 31, 2020, will have time to obtain depreciation reports until July 1, 2026, if located in Metro Vancouver, the Fraser Valley, or the Capital Regional District (excluding the Gulf Islands and other islands within the CRD if only accessible by boat or plane), or until July 1, 2027, located in all other areas of British Columbia.
There are also changes to the persons qualified to complete reports. Effective July 1, 2025, the strata property act and the regulations specify the professions authorized to prepare depreciation reports — they include; engineers, architects, applied science technologists, certified appraisers, certified reserve planners, and quantity surveyors. Depreciation reports are now valid for five years.
Strata corporations are required to disclose to buyers on a Form B Information Certificate whether an electrical planning report or depreciation report has been completed, and if completed must attach a copy of the reports to the form.
One other change strata corporations must note is the minimum contribution to the contingency fund is now 10% of your annual operating fund, regardless of the amount in your contingency fund. There is no limit to the contribution level, and strata corporations by majority vote may contribute any amount above the 10% minimum to their fund, as part of the annual budget approval. For detailed guides and regulatory changes go to: choa.bc.ca/whats-happening/
Tony Gioventu is executive director of the Condominium Home Owners Association
