6.2 Depreciation Report

• 6.2 (1) For the purposes of section 94 of the Act, a depreciation report must include all of the following:

• (a) a physical component inventory and evaluation that complies with subsection (2);
• (b) a summary of repairs and maintenance work for common expenses respecting the items listed in subsection (2)(b) that usually occur less often than once a year or that do not usually occur;
• (c) a financial forecasting section that complies with subsection (3);
• (d) the name of the person from whom the depreciation report was obtained and a description of
  • (i) that person’s qualifications,
  • (ii) the error and omission insurance, if any, carried by that person, and
  • (iii) the relationship between that person and the strata corporation;
• (e) the date of the report;
• (f) any other information or analysis that the strata corporation or the person providing the depreciation report considers appropriate.

• (2) For the purposes of subsection (1)(a) and (b) of this section, the physical component inventory and evaluation must

• (a) be based on an on-site visual inspection of the site and, where practicable, of the items listed in paragraph (b) conducted by the person preparing the depreciation report,
• (b) include a description and estimated service life over 30 years of those items that comprise the common property, the common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible to maintain or repair under the Act, the strata corporation’s bylaws or an agreement with an owner, including, but not limited to, the following items:
  • (i) the building’s structure;
  • (ii) the building’s exterior, including roofs, roof decks, doors, windows and skylights;
  • (iii) the building’s systems, including the electrical, heating, plumbing, fire protection and security systems;
  • (iv) common amenities and facilities;
  • (v) parking facilities and roadways;
  • (vi) utilities, including water and sewage;
  • (vii) landscaping, including paths, sidewalks, fencing and irrigation;
  • (viii) interior finishes, including floor covering and furnishings;
  • (ix) green building components;
  • (x) balconies and patios, and
• (c) identify common property and limited common property that the strata lot owner, and not the strata corporation, is responsible to maintain and repair.

• (3) For the purposes of subsection (1)(c), the financial forecasting section must include

• (a) the anticipated maintenance, repair and replacement costs for common expenses that usually occur less often than once a year or that do not usually occur, projected over 30 years, beginning with the current or previous fiscal year of the strata corporation, of the items listed in subsection (2)(b),
• (b) a description of the factors and assumptions, including interest rates and rates of inflation, used to calculate the costs referred to in paragraph (a),
• (c) a description of how the contingency reserve fund is currently being funded,
• (d) the current balance of the contingency reserve fund minus any expenditures that have been approved but not yet taken from the fund, and
• (e) at least 3 cash-flow funding models for the contingency reserve fund relating to the maintenance, repair and replacement over 30 years, beginning with the current or previous fiscal year of the strata corporation, of the items listed in subsection (2)(b).

• (4) For the purposes of subsection (3)(e), the cash-flow funding models may include any one or more of the following:

• (a) balances of, contributions to and withdrawals from the contingency reserve fund;
• (b) special levies;
• (c) borrowings.

• (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.
• (6) For the purposes of section 94(1) of the Act, “qualified person” means any person who has the knowledge and expertise to understand the individual components, scope and complexity of the strata corporation’s common property, common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible to maintain or repair under the Act, the strata corporation’s bylaws or an agreement with an owner and to prepare a depreciation report that complies with subsections (1) to (4).
• (6.1) The date prescribed for the purposes of section 94(2)(a)(ii) of the Act with respect to a strata corporation that is formed after December 14, 2011, is the date that is 6 months after

• (a) the date of the strata corporation’s second annual general meeting, or
• (b) if the second annual general meeting of the strata corporation has been waived under section 41 of the Act, the last date by which the strata corporation would otherwise have been required to hold that meeting.

• (6.2) For certainty, a meeting held under section 230 of the Act must not be considered a second annual general meeting for the purposes of subsection (6.1) of this section.
• (7) The following periods are prescribed:

• (a) for the purposes of section 94(2)(b) of the Act, 3 years;
• (b) for the purposes of section 94(2)(c) of the Act, 18 months;
• (c) for the purposes of section 94(3)(a) of the Act, the one year period immediately preceding the date on or before which the depreciation report is required to be obtained.

• (8) A strata corporation is prescribed for the purposes of section 94(3)(b) of the Act if and for so long as there are fewer than 5 strata lots in the strata plan.

[en. B.C. Reg. 238/2011, para. (b), Sched. 1; am. B.C. Reg. 89/2013.]