British Columbia legislation refers to what is commonly known as "Reserve Fund Studies" as "Depreciation Reports". Our Reserve Fund Study complies with the "depreciation report" provisions of The BC Strata Property Act:
Guidelines for depreciation report
- 1. For the purposes of section 94 of the Act, a depreciation report prepared to assist a strata corporation in determining the appropriate amount for the annual contribution to the contingency reserve fund may estimate the repair or replacement cost for, and the expected life of, each of the items set out below, if applicable to the strata corporation, and any other items that the strata corporation considers should be included:
- a. the electrical system;
- b. the heating system;
- c. the plumbing system;
- d. the elevators;
- e. the exterior walls;
- f. the roof;
- g. carpeting and furnishings;
- h. interior and exterior painting;
- i. parking facilities and roadways;
- j. recreational facilities.
- 2. The strata corporation's annual contribution to the contingency reserve fund relating to the repair or replacement of each of the items referred to in subsection (1) may be determined according to the following formula:
estimated cost – past contribution expected life
- 3. For the formula in subsection (2):
"estimated cost" means the estimated cost to repair or replace;
"past contribution" means the amount already contributed to the contingency reserve fund in respect of an estimated cost;
"expected life" means the estimated number of years before the cost of repair or replacement is likely to be incurred.
- 4. A strata corporation must comply with section 3.4 or 6.1, as applicable, whether or not a depreciation report to assist in determining the appropriate amount for the annual contribution to the contingency reserve fund is prepared.
- 5. If a strata corporation contributes to the contingency reserve fund based on a depreciation report, the contributions in respect of an item become part of the contingency reserve fund and may be spent for any purpose permitted under section 96 of the Act.
- [am. B.C. Reg. 241/2001, s. 2 (b).]