6.2 Depreciation Report

• 6.2 (0.1) For the purposes of section 94(1) of the Act, “qualified person” means a person who

• (a) 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, and
• (b) in respect of a depreciation report obtained on or after July 1, 2025, is one of the following:
  • (i) a professional engineer registered as a member in good standing with the Association of Professional Engineers and Geoscientists of the Province of British Columbia;
  • (ii) a person registered as an architect with the Architectural Institute of British Columbia;
  • (iii) a person registered as an applied science technologist under the Professional Governance Act;
  • (iv) a person designated Accredited Appraiser Canadian Institute by the Appraisal Institute of Canada;
  • (v) a certified reserve planner accredited by the Real Estate Institute of Canada;
  • (vi) a person designated Professional Quantity Surveyor by the Canadian Institute of Quantity Surveyors.

• (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;
• (g) an executive summary.

• (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, ventilation, air conditioning, 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) [Repealed effective July 1, 2024 (B.C. Reg. 88/2024).]
• (7) [Repealed effective July 1, 2024 (B.C. Reg. 88/2024).]
• (8) [Repealed effective July 1, 2024 (B.C. Reg. 88/2024).]

[en. B.C. Reg. 238/2011, para. (b), Sched. 1; am. B.C. Reg. 89/2013; 88/2024.]