RECENT AMENDMENTS TO THE STRATA PROPERTY ACT & REGULATIONS

Adrienne Murray, Deputy Superintendent of Real Estate

Recently, changes were made to the Strata Property Regulations, which impact how a strata corporation assesses the amount of the contribution to the contingency reserve fund "CRF" and other financial matters. Following is a brief explanation of the new regulations. The new regulations may be viewed at www.fic.gov.bc.ca under the heading "New Strata Property Act Regulation".

One amendment to the regulation clarifies the requirement to contribute to the CRF for the period of the first fiscal year. Previously the regulations provided for the contribution to the CRF at the end of any fiscal year after the annual general meeting "AGM", but did not provide for the payment during the first fiscal year. This has been clarified by creating regulation 3.4 and repealing and replacing regulation 6.1.

The repeal and replacement of regulation 6.2(4) clarifies that a contribution to the CRF must meet the minimum formula set out in either regulation 3.4 or 6.1 even if the strata corporation has obtained a depreciation report.

Section 6.7 of the regulation was amended to permit strata corporations to pass a bylaw that allows the financial information that must be included with the notice of the AGM to be provided in summary form rather than in complete detail. The amendment provides that even though such a bylaw may be passed, financial statements containing all the information required by section 6.7(1) must be placed before the AGM. Additionally, persons entitled to receive notice of the AGM may request a copy of the all the information prior to the AGM. Such information must be provided to that person promptly. The section of the Act that allows the strata corporation two weeks to respond to requests for information (s. 36) does not apply to a request in the case where summary financial information has been distributed, and the full financial information has been requested.

The regulations relating to correcting errors on a strata plan (14.12) and the cancellation of a strata plan have also been amended (16.1) to clarify their intent.

Finally, a new subsection has been added to section 17.11 of the regulation. As a result of the new subsection, if a strata corporation had a bylaw prior to July 1, 2000 that provided for the apportionment of the contribution to the CRF on the basis of type of strata lot, the strata corporation is permitted to retain such a bylaw.