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Difference between revisions of "Strata Corporation Finances (22:VIII)"
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Strata Corporation Finances (22:VIII) (view source)
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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. | ||
== F. Allocating Expenses == | |||
=== 1. Two Main Issues with Allocating Expenses === | |||
'''a) Unit Entitlement or Not'''<BR> | |||
Generally, all owners must contribute to the costs of repair and maintenance in accordance with unit entitlement, as decided by the courts in Strata Plan LMS 1537 v Alvarez, 2003 BCSC 1075. | |||
'''b) Everyone, or Allocate to Individuals'''<BR> | |||
There are, however, exceptions in which common expenses are allocated using a different formula than the formula in s 99 (s 100(1)). For example, certain common expenses that relate to and benefit only limited common property can be allocated to only those strata lot owners entitled to the use of that limited common property. If different “types” of strata laws are distinguished by the bylaws, common expenses that relate to and benefit a particular type of strata lot can be allocated to only the strata lots of that type. | |||
== 2. Unit Entitlement == | |||
=== a) Relating to Owners ==== | |||
“Unit Entitlement” is the number used in calculations to determine the strata lot’s share of common property, common assets, common expenses, and common liabilities of the strata corporation (s 1(1)). The SPA and the SPR require the calculation of contributions to the operating fund, the contingency reserve fund, and a special levy to be based on unit entitlement. Otherwise, if a strata corporation has failed to calculate contributions to the operating fund in accordance with unit entitlement, the owner may be able to obtain an order from the CRT requiring the corporation to determine the correct strata fee calculations. | |||
=== b) Relating to Limited Common Property === | |||
23-49 | |||
Provided there is no alternate formula adopted by way of a s 100 resolution, the SPR allows for the formula in s 99 to be amended for operating fund expenses that relate to and benefit only limited common property as follows: | |||
𝑈𝑛𝑖𝑡 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑠𝑡𝑟𝑎𝑡𝑎 𝑙𝑜𝑡𝑇𝑜𝑡𝑎𝑙 𝑢𝑛𝑖𝑡 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑠𝑡𝑟𝑎𝑡𝑎 𝑙𝑜𝑡𝑠 𝑤ℎ𝑜𝑠𝑒 𝑜𝑤𝑛𝑒𝑟𝑠 𝑎𝑟𝑒 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝑢𝑠𝑒 𝑜𝑓 𝑙𝑖𝑚𝑖𝑡𝑒𝑑 𝑐𝑜𝑚𝑚𝑜𝑛 𝑝𝑟𝑜𝑝𝑒𝑟𝑡𝑦 𝑡𝑜 𝑤ℎ𝑖𝑐ℎ 𝑡ℎ𝑒 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑟𝑒𝑙𝑎𝑡𝑒𝑠 X 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑡𝑜 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑓𝑢𝑛𝑑 | |||
That formula cannot be used for contributions to the contingency reserve fund and special levies. Instead, the contributions are allocated among all of the owners as follows: | |||
𝑈𝑛𝑖𝑡 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑠𝑡𝑟𝑎𝑡𝑎 𝑙𝑜𝑡𝑇𝑜𝑡𝑎𝑙 𝑢𝑛𝑖𝑡 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑠𝑡𝑟𝑎𝑡𝑎 𝑙𝑜𝑡𝑠 X 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑡𝑜 𝐶𝑅𝐹 𝑜𝑟 𝑠𝑝𝑒𝑐𝑖𝑎𝑙 𝑙𝑒𝑣𝑦 | |||
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