Spending from the contingency reserve fund: which vote is needed?
The reserve fund is the owners' savings for the roof, the elevator and the pipes. Council cannot spend it on its own say-so, and the vote the owners need depends on what the money is for.
Last reviewed November 10, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.
The short answer
Under section 96 of the Strata Property Act, contingency reserve fund money may be spent only on expenses that occur less often than once a year, and only if approved first: by majority vote for a depreciation report, for repairs, maintenance or replacement recommended in the most current depreciation report, for an electrical planning report, or for EV charging infrastructure, and by 3/4 vote for anything else. The exception is an emergency under section 98.
What the reserve fund is for
Section 92 creates two funds. The operating fund is for common expenses that usually occur once a year or more often. The contingency reserve fund is for common expenses that usually occur less often than once a year or that do not usually occur. Roof replacement, repaving, re-piping, elevator modernization and envelope repairs belong to the reserve. Annual gutter cleaning and landscaping do not. The cost of obtaining a depreciation report or electrical planning report is an operating expense by definition, though the Act also permits paying for them from the reserve by majority vote.
The vote required
| Expenditure | Vote |
|---|---|
| Obtaining a depreciation report | Majority |
| Repair, maintenance or replacement recommended in the most current depreciation report | Majority |
| Installing EV charging infrastructure, or managing the electricity it uses | Majority |
| Obtaining an electrical planning report | Majority |
| Other reports on EV charging infrastructure | Majority |
| Anything else consistent with the fund's purpose | 3/4 |
| Emergency under section 98(3) | No prior vote |
| Insurance deductible to repair or replace damaged property | No approval required (section 158) |
The resolution must be passed at an annual or special general meeting before the money is spent. The proposed wording of a 3/4 resolution must be in the notice of meeting.
StrataMinutes can take this off your plate. Money decisions are the ones owners, buyers and the tribunal read most closely. Have the minutes prepared for you, with every motion and vote count recorded. Your first month is free.
The depreciation report shortcut
The majority-vote route applies only where the work is recommended in the most current depreciation report obtained under section 94, and relates to common property, common assets, or parts of a strata lot the strata has taken responsibility for by bylaw. Points to check before relying on it:
- Is the report current, or has a newer one replaced it?
- Does it actually recommend this repair or replacement?
- Is the strata exempt from depreciation reports (fewer than five lots) and without one? Then the 3/4 threshold applies.
Quote the page of the report in the resolution. See the depreciation report guide.
Sample resolution (majority vote): BE IT RESOLVED by a majority vote that The Owners, Strata Plan VIS 1234, approve an expenditure of up to $96,000 from the contingency reserve fund to replace the roof membrane on Building B, being a replacement recommended in the depreciation report dated March 2025, page 41.
Sample resolution (3/4 vote): BE IT RESOLVED by a 3/4 vote that The Owners, Strata Plan VIS 1234, approve an expenditure of up to $18,000 from the contingency reserve fund to install a security gate at the parkade entrance.
Emergencies and deductibles
Without a prior vote, the reserve may be used where there are reasonable grounds to believe an immediate expenditure is necessary to ensure safety or prevent significant loss or damage, limited to the minimum needed, with owners informed as soon as feasible (section 98). Separately, approval is not required for a reserve expenditure to cover an insurance deductible the strata must pay to repair or replace damaged property (section 158). See emergency repairs.
What the reserve cannot be used for
- Ordinary operating expenses, or covering an operating deficit.
- Loans to the operating fund, except a short-term loan for a temporary cash shortage repaid within the same fiscal year, with owners informed (Regulation 6.3).
- Improvements unrelated to the fund's purpose without the proper vote. A new amenity is "something that does not usually occur" and may qualify, but it needs a 3/4 vote, and if it significantly changes the use or appearance of common property, section 71 requires a 3/4 vote as well.
- Refunds to owners. A selling owner is not entitled to a return of contributions (section 101).
How the fund must be held
The strata must account for reserve money separately, and invest it only in insured accounts with savings institutions in BC or in the investments the Regulation permits, such as insured deposits, term deposits and guaranteed investment certificates with predetermined rates, and government-backed securities (section 95 and Regulation 6.11). Interest earned becomes part of the fund. Shares and mutual funds are not on the list.
Contributions
The annual contribution is set in the budget, after considering the most recent depreciation report, and must be at least 10% of the total budgeted contribution to the operating fund (Regulation 6.1). Our reserve fund calculator tests your contribution against your report.
Recording it
Minutes should show the resolution, the threshold, the count and, for majority-vote items, the link to the depreciation report. Council minutes should then record each payment made under the approval. The financial statement must detail reserve expenditures (Regulation 6.7).
Questions councils and owners ask
Can strata council spend the contingency reserve fund without a vote?
Only in an emergency under section 98, or to pay an insurance deductible for repairs. Otherwise the owners must approve first.
What vote is needed to spend from the contingency reserve fund?
A majority for depreciation reports, repairs recommended in the most current depreciation report, electrical planning reports and EV charging. A 3/4 vote for anything else.
Can the reserve fund be used for operating expenses?
No, apart from a short-term loan to the operating fund repaid within the fiscal year.
Can reserve money be invested in the stock market?
No. Only insured accounts and the investments listed in the Regulation are permitted.
Do owners get reserve contributions back when they sell?
No.
Reserve spending is the vote buyers look for
StrataMinutes records each reserve fund resolution with its threshold, purpose, amount and count, so your minutes show the money was properly approved.
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For a 30-lot strata, that is under $1 a lot each month. Have the strata pay: free council approval kit.
This page is general information for BC strata corporations, not legal advice. Your strata's own filed bylaws may differ from the Standard Bylaws. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.
Related guides
Reserve Fund (CRF)
Emergency Repairs
The 3/4 Vote
Depreciation Reports
Strata Borrowing and Loans
Reserve Fund Calculator