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Strata Management Licensing Practice Exam · Question

The operating budget for The Salish Sea Strata Plan VIS7890 in Victoria for the upcoming fiscal year totals $180,000. It includes projected expenses for routine maintenance, utilities, and minor repairs. What is the minimum contribution amount for the contingency reserve fund (CRF) that the strata corporation must budget for the next fiscal year?

Section 93(1)(a) of the Strata Property Act requires a minimum 10% contribution to the CRF based on the previous year's operating expenses, meaning $180,000 x 0

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Question: The operating budget for The Salish Sea Strata Plan VIS7890 in Victoria for the upcoming fiscal year totals $180,000. It includes projected expenses for routine maintenance, utilities, and minor repairs. What is the minimum contribution amount for the contingency reserve fund (CRF) that the strata corporation must budget for the next fiscal year?

Answer options: ✅ $18,000

  • $9,000
  • $36,000
  • It depends on the depreciation report recommendations.

Correct answer: $18,000

Explanation: Section 93(1)(a) of the Strata Property Act requires a minimum 10% contribution to the CRF based on the previous year's operating expenses, meaning $180,000 x 0.10 = $18,000.

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