Can I special levy the mandatory CRF contribution portion of my operating budget?

As of Nov 1, strata corporations in BC are required to contribute a MINIMUM of 10% of their operating budget to the CRF. Since there are a large number of strata’s across BC who have been using special levies to keep their strata fees artificially lower, this question has come up numerous times in recent budget meetings and AGM’s.

Can I special levy my CRF contribution?

The answer is no, you can’t special levy the mandatory 10% CRF contribution portion of your operating budget. The CRF contribution is part of the operating budget, which requires a majority vote at your AGM.

A special levy, which requires a 3/4 vote and separate resolution at an AGM or SGM, MUST be used for a specific purpose, and CANNOT form part of your operating budget. Any funds NOT used in the special levy must then be returned to the owners if the amount surpasses $100.

While in a practical sense, we have seen strata corporations use special levies for “CRF replenishment” from time to time, we would recommend that you seek separate legal advice for this as technically speaking it’s not intended for “one specific purpose”, and the funds are not being returned to the owners as required by the act.

Looking for some help with your Strata budget?

If you’re looking for some advice with budgeting, and how to work the now mandatory 10% into your Operating budget without breaking the bank on strata fees, reach out to us today!



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