What Can a Strata Use the Contingency Reserve Fund (CRF) For?
When you pay monthly strata fees in North Vancouver or West Vancouver, a portion goes into the contingency reserve fund (CRF). But what exactly can that money be spent on — and who decides?
The rules around CRF expenditures are set out in the Strata Property Act, and they’re designed to ensure fairness and transparency for all owners.
Disclaimer: This content is for general information only and does not constitute financial or legal advice. Always consult with a strata lawyer or financial professional before making decisions about your strata’s CRF.
The Purpose of the CRF
The CRF is meant to cover expenses that occur less than once a year or that don’t usually occur at all. Common examples include:
- Roof replacement
- Elevator upgrades
- Exterior painting or cladding replacement
- Driveway or road repaving
- Depreciation reports and electrical planning reports
In short, the CRF is the strata’s rainy day fund for large-scale or unexpected projects.
Owner Approval: Majority vs. ¾ Vote
How CRF money can be spent depends on the type of expenditure.
- Majority vote required if:
- The expense is recommended in the depreciation report (e.g., planned repairs, maintenance, or replacements).
- The expense is related to electric vehicle (EV) charging infrastructure or an electrical planning report.
- ¾ vote required in most other cases (e.g., unplanned projects not covered by a depreciation report).
- No vote required if:
- The expense is necessary for emergency repairs to ensure safety or prevent significant damage/loss.
- The expense covers an insurance deductible related to repairing or replacing damaged property.
Special Situations: EV Charging and Green Upgrades
As of May 2023, it’s easier for stratas to approve CRF spending on electric vehicle charging infrastructure. Instead of the traditional ¾ vote, only a majority vote is needed.
This change reflects the growing demand for sustainable upgrades in condos and townhomes across BC — especially in North Vancouver and West Vancouver, where many older buildings need electrical upgrades.
Why This Matters for Owners
Understanding what the CRF can be used for helps owners make sense of:
- Why strata fees increase — contributions often go toward building up the CRF for upcoming projects.
- Why a vote is needed — owners have a say in how large sums are spent.
- What to expect as a buyer — reviewing recent CRF expenditures can reveal whether a building is proactive with maintenance.
CRF Limits: Why Levies Still Happen
Even though the CRF covers many major expenses, it’s not always enough for very large projects. In those cases, stratas may still need to issue special levies.
That said, a healthy CRF reduces the frequency and size of levies, making it an important financial safety net for all owners.
Buying or selling a strata condo or townhome in North Vancouver or West Vancouver? Our experienced team can help you understand the CRF and what it means for your investment. Reach out to us today.