Strata Corporation Finances (22:VIII) - Revision history

LSLAP at 19:46, 13 October 2025

2025-10-13T19:46:00Z

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LSLAP at 18:28, 29 September 2025

2025-09-29T18:28:18Z

LSLAP at 17:46, 6 August 2024

2024-08-06T17:46:22Z

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LSLAP: /* 7. Interfund Transfers */

2024-08-03T23:30:11Z

7. Interfund Transfers

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	# The loan is repaid by the end of that fiscal year of the strata corporation; and		# The loan is repaid by the end of that fiscal year of the strata corporation; and
	# The loan is for the purpose of covering temporary cash flow shortages as described in		# The loan is for the purpose of covering temporary cash flow shortages as described in the provision.
	the provision.

	=== 8. User Fees and Other Income ===		=== 8. User Fees and Other Income ===

LSLAP at 19:42, 31 July 2024

2024-07-31T19:42:48Z

Show changes

Clicklaw Editor: /* 5. Operating Fund Expenditures Not Approved in the Budget */

2023-08-22T19:10:13Z

5. Operating Fund Expenditures Not Approved in the Budget

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	# Less than the amount set out in the strata corporation’s bylaws; or		# Less than the amount set out in the strata corporation’s bylaws; or
	# If the bylaws are silent, the lesser ~~between~~ $2,000, or 5% of the total contribution to the operating fund of the current year.		# If the bylaws are silent, the lesser of
			::i) $2,000, or
			::ii) 5% of the total contribution to the operating fund of the current year.

	S 98 also allows for “emergency”-type expenditures (s 98(3)) if there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage. The strata corporation must inform owners as soon as feasible about any expenditure of this type being made (s 98(6)).		S 98 also allows for “emergency”-type expenditures (s 98(3)) if there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage. The strata corporation must inform owners as soon as feasible about any expenditure of this type being made (s 98(6)).

Clicklaw Editor: /* c) Special Levies */

2023-08-22T18:40:38Z

c) Special Levies

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	Section 108(2)(b) provides a similar mechanism to a s. 100 resolution. If there is another way that establishes a fair division of expenses for a particular special levy, the strata corporation may use that alternate division, but in order to do so, the special levy must be approved by a resolution passed by unanimous vote at an annual or special general meeting.		Section 108(2)(b) provides a similar mechanism to a s. 100 resolution. If there is another way that establishes a fair division of expenses for a particular special levy, the strata corporation may use that alternate division, but in order to do so, the special levy must be approved by a resolution passed by unanimous vote at an annual or special general meeting.


	{{LSLAP Manual Navbox\|type=chapters15-23}}		{{LSLAP Manual Navbox\|type=chapters15-23}}

Clicklaw Editor: /* 1. Annual Budget Contributions */

2023-08-22T18:39:16Z

1. Annual Budget Contributions

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	The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):		The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):

	1. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of		:1. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of
	::a) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and		:::a) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and
	::b) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;		:::b) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;
	2. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.		:2. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.

	=== 2. Capital Planning and Depreciation Reports ===		=== 2. Capital Planning and Depreciation Reports ===

Clicklaw Editor: /* 1. Annual Budget Contributions */

2023-08-22T18:38:46Z

1. Annual Budget Contributions

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	The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):		The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):

	# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of		1. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of
	:a) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and		::a) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and
	:b) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;		::b) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;
	# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.		2. if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.

	=== 2. Capital Planning and Depreciation Reports ===		=== 2. Capital Planning and Depreciation Reports ===

Clicklaw Editor: /* 1. Annual Budget Contributions */

2023-08-22T18:37:29Z

1. Annual Budget Contributions

← Older revision		Revision as of 18:37, 22 August 2023
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	The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):		The amount of the annual contribution to the CRF for any other fiscal year must be determined as follows (''SPR'', s 6.1):

	# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser ~~between~~ 10% of the total amount budgeted for the contribution to the operating fund		# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of
	for the current fiscal year, and the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;		:a) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year, and
			:b) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year;
	# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.		# if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the ''SPA''.

← Older revision		Revision as of 18:28, 29 September 2025
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	=== 3. Amendment of Budget ===		=== 3. Amendment of Budget ===

	Before the budget is put to vote at an annual general meeting, the proposed budget may be amended by majority vote of the owners at the meeting (s 103(4)). There is nothing in the ''SPA'' that allows for amendments to the budget after it is approved at the annual general meeting, although the CRT suggested at para 64 in [https://www.canlii.org/en/bc/bccrt/doc/2019/2019bccrt16/2019bccrt16.html ''Gulf Manufacturing Ltd v The Owners, Strata Plan BCS 1348'', 2019 BCCRT 16] that a special general meeting could be called and a revised budget could be approved.		Before the budget is put to vote at an annual general meeting, the proposed budget may be amended by majority vote of the owners at the meeting (s 103(4)). There is nothing in the ''SPA'' that allows for amendments to the budget after it is approved at the annual general meeting, although the CRT suggested at para 64 in ''[https://www.canlii.org/en/bc/bccrt/doc/2019/2019bccrt16/2019bccrt16.html Gulf Manufacturing Ltd v The Owners, Strata Plan BCS 1348]'', 2019 BCCRT 16 that a special general meeting could be called and a revised budget could be approved.

	=== 4. Failure to Approve Budget ===		=== 4. Failure to Approve Budget ===
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	Other than strata fees, a strata corporation may have other sources of income that include user fees, interest income, rental income, and fines, and more.		Other than strata fees, a strata corporation may have other sources of income that include user fees, interest income, rental income, and fines, and more.

	User fees cannot be collected from the strata corporation for the use of common property or common assets unless, per section 6.9 of the ''SPR'', the fee is objectively reasonable and set out in a bylaw or rule that has been ratified by majority vote at an annual or special general meeting. For example, in [https://canlii.ca/t/h4fkl ''Cody Watson v Strata Plan BCS 1721'', 2017 BCCRT 10] (later affirmed on appeal) the CRT found that a $100 moving fee was unreasonable for residents moving without any furniture. However, in [https://canlii.ca/t/jnpkv ''Malin v Strata Plan VR 1543'', 2022 BCCRT 439], the CRT found a lack of evidence demonstrating that a $150 move-in fee was unreasonable since the owner could not adduce any objective evidence about market conditions or the costs incurred by the strata in facilitating moves into the building.		User fees cannot be collected from the strata corporation for the use of common property or common assets unless, per section 6.9 of the ''SPR'', the fee is objectively reasonable and set out in a bylaw or rule that has been ratified by majority vote at an annual or special general meeting. For example, in ''[https://canlii.ca/t/h4fkl Cody Watson v Strata Plan BCS 1721]'', 2017 BCCRT 10 (later affirmed on appeal) the CRT found that a $100 moving fee was unreasonable for residents moving without any furniture. However, in ''[https://canlii.ca/t/jnpkv Malin v Strata Plan VR 1543]'', 2022 BCCRT 439, the CRT found a lack of evidence demonstrating that a $150 move-in fee was unreasonable since the owner could not adduce any objective evidence about market conditions or the costs incurred by the strata in facilitating moves into the building.

	Interest earned on money held on a special levy or CRF form part of their respective funds (ss 95(3) and 108(7)).		Interest earned on money held on a special levy or CRF form part of their respective funds (ss 95(3) and 108(7)).
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	A special levy is money collected from strata lot owners for a specific purpose and for shared common expenses. Strata corporations may raise money from the strata lot owners by means of a special levy (''SPA'', s 108(1)) as long as it is approved by the owners by way of a resolution passed at an annual or special general meeting. A special levy that is calculated using the formula in section 99 of the ''SPA'' or a different formula that meets section 100 of the ''SPA'' must be passed by a ¾ vote at an annual or special general meeting (s 108(2)(a)).		A special levy is money collected from strata lot owners for a specific purpose and for shared common expenses. Strata corporations may raise money from the strata lot owners by means of a special levy (''SPA'', s 108(1)) as long as it is approved by the owners by way of a resolution passed at an annual or special general meeting. A special levy that is calculated using the formula in section 99 of the ''SPA'' or a different formula that meets section 100 of the ''SPA'' must be passed by a ¾ vote at an annual or special general meeting (s 108(2)(a)).

	If the corporation is unable to approve a special levy resolution to effect repairs and maintenance that are necessary to ensure safety or prevent significant loss of damage, section 173(2) allows a strata corporation to apply to the Supreme Court for an order to approve the special levy resolution. There is no need to prove that the repairs are “crucial” or the threat of loss or damage is “immediate” ([https://www.canlii.org/en/bc/bcsc/doc/2015/2015bcsc13/2015bcsc13.html ''The Owners, Strata Plan VIS 114 v John Doe'', 2015 BCSC 13]).		If the corporation is unable to approve a special levy resolution to effect repairs and maintenance that are necessary to ensure safety or prevent significant loss of damage, section 173(2) allows a strata corporation to apply to the Supreme Court for an order to approve the special levy resolution. There is no need to prove that the repairs are “crucial” or the threat of loss or damage is “immediate” (''[https://www.canlii.org/en/bc/bcsc/doc/2015/2015bcsc13/2015bcsc13.html The Owners, Strata Plan VIS 114 v John Doe]'', 2015 BCSC 13).

	=== 2. Purpose of Special Levies ===		=== 2. Purpose of Special Levies ===
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	# The person who is the owner of the strata lot immediately after the date the strata lot is conveyed owes the strata corporation the portion of the levy that is payable on or after the date the strata lot is conveyed.		# The person who is the owner of the strata lot immediately after the date the strata lot is conveyed owes the strata corporation the portion of the levy that is payable on or after the date the strata lot is conveyed.

	In [https://canlii.ca/t/jlnhh ''Day v The Owners, Strata Plan VR 320'', 2022 BCCRT 11], the CRT found that the ''SPA'' does not entitle strata corporations to retroactively apply special levies and thereby make former owners responsible for paying them.		In ''[https://canlii.ca/t/jlnhh Day v The Owners, Strata Plan VR 320]'', 2022 BCCRT 11, the CRT found that the ''SPA'' does not entitle strata corporations to retroactively apply special levies and thereby make former owners responsible for paying them.

	=== 5. Disposition of Surplus Funds ===		=== 5. Disposition of Surplus Funds ===

	Funds that are surplus from a special levy must be paid to each strata lot owner the portion of the unused amount proportional to the contribution made to the special levy in respect of that strata lot (s 108(5)). If no strata lot owner is entitled to receive more than $100, the strata corporation can instead deposit the total surplus funds into the CRF (s 108(6)). If the owner is new, [https://www.canlii.org/en/bc/bccrt/doc/2020/2020bccrt607/2020bccrt607.html ''Gaudin v The Owners, Strata Plan LMS 2140'', 2020 BCCRT 607] confirmed that it is the strata lot owner at the time the refund is made that is entitled to receive the refund.		Funds that are surplus from a special levy must be paid to each strata lot owner the portion of the unused amount proportional to the contribution made to the special levy in respect of that strata lot (s 108(5)). If no strata lot owner is entitled to receive more than $100, the strata corporation can instead deposit the total surplus funds into the CRF (s 108(6)). If the owner is new, ''[https://www.canlii.org/en/bc/bccrt/doc/2020/2020bccrt607/2020bccrt607.html Gaudin v The Owners, Strata Plan LMS 2140]'', 2020 BCCRT 607 confirmed that it is the strata lot owner at the time the refund is made that is entitled to receive the refund.

	== D. Borrowing by Strata Corporation ==		== D. Borrowing by Strata Corporation ==
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	==== a) Unit Entitlement or Not ====		==== a) Unit Entitlement or Not ====

	Generally, all owners must contribute to the costs of repair and maintenance in accordance with unit entitlement, as decided by the courts in [https://www.canlii.org/en/bc/bcsc/doc/2003/2003bcsc1085/2003bcsc1085.html ''Owners, Strata Plan LMS 1537 v Alvarez'', 2003 BCSC 1085].		Generally, all owners must contribute to the costs of repair and maintenance in accordance with unit entitlement, as decided by the courts in ''[https://www.canlii.org/en/bc/bcsc/doc/2003/2003bcsc1085/2003bcsc1085.html Owners, Strata Plan LMS 1537 v Alvarez]'', 2003 BCSC 1085.

	==== b) Everyone, or Allocate to Individuals ====		==== b) Everyone, or Allocate to Individuals ====
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	==== a) Operating Fund ====		==== a) Operating Fund ====

	Section 100 resolutions can provide an alternate formula for the entire operating fund, such that no expenses outlined in the budget are apportioned by unit entitlement, or for only certain expenses from the operating fund. Courts can also impose section 100 resolutions, like in [https://www.canlii.org/en/bc/bcsc/doc/2008/2008bcsc453/2008bcsc453.html ''Shaw v The Owners Strata Plan LMS 3972'', 2008 BCSC 453] when the court found unit entitlement allocation of expenses to be significantly unfair due to the strata corporation consisting of two sections, residential and commercial.		Section 100 resolutions can provide an alternate formula for the entire operating fund, such that no expenses outlined in the budget are apportioned by unit entitlement, or for only certain expenses from the operating fund. Courts can also impose section 100 resolutions, like in ''[https://www.canlii.org/en/bc/bcsc/doc/2008/2008bcsc453/2008bcsc453.html Shaw v The Owners Strata Plan LMS 3972]'', 2008 BCSC 453 when the court found unit entitlement allocation of expenses to be significantly unfair due to the strata corporation consisting of two sections, residential and commercial.

	==== b) Contingency Reserve Fund ====		==== b) Contingency Reserve Fund ====