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Difference between revisions of "Strata Corporation Finances (22:VIII)"
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Strata Corporation Finances (22:VIII) (view source)
Revision as of 17:53, 1 August 2023
, 17:53, 1 August 2023→1. Purpose of Operating Fund
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Each strata corporation must establish an operating fund (SPA, s 92) to be used for common expenses that occur either once a year or more often than once a year. Examples include landscaping, management fees, annual inspection fees, and office and administrative expenses. | Each strata corporation must establish an operating fund (SPA, s 92) to be used for common expenses that occur either once a year or more often than once a year. Examples include landscaping, management fees, annual inspection fees, and office and administrative expenses. | ||
a) Common Expenses | '''a) Common Expenses''' | ||
Under s 1(1) of the SPA, “common expenses” is defined as those expenses: | Under s 1(1) of the SPA, “common expenses” is defined as those expenses: | ||
# Relating to the common property and common assets of the strata corporation; or | |||
Relating to the common property and common assets of the strata corporation; or | # Required to meet any other purpose or obligation of the strata corporation. | ||
Required to meet any other purpose or obligation of the strata corporation. | '''b) Strata Fees''' | ||
b) Strata Fees | |||
To create the operating fund, each owner contributes fees that are determined by reference to the budget approved at the annual general meeting. These fees are generally a strata corporation’s primary source of income. The default formula to calculate strata fees is set out in s 99: | To create the operating fund, each owner contributes fees that are determined by reference to the budget approved at the annual general meeting. These fees are generally a strata corporation’s primary source of income. The default formula to calculate strata fees is set out in s 99: | ||
𝑈𝑛𝑖𝑡 𝐸𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑆𝑡𝑟𝑎𝑡𝑎 | |||
𝑈𝑛𝑖𝑡 𝐸𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑆𝑡𝑟𝑎𝑡𝑎 𝐿𝑜𝑡 | |||
𝐸𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑆𝑡𝑟𝑎𝑡𝑎 𝐿𝑜𝑡𝑠 ×𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛𝑠 | |||
Per s 107(1), interest can be charged by bylaw on late payments so long as the rate of interest does not exceed what is set out by the SPR, which is currently 10% per annum, compounded annually. | Per s 107(1), interest can be charged by bylaw on late payments so long as the rate of interest does not exceed what is set out by the SPR, which is currently 10% per annum, compounded annually. | ||
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