Strata Corporation Bylaws and Rules (22:X): Difference between revisions
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==== b) Doing Work to a Strata Lot, Common Property, or Common Assets ==== | ==== b) Doing Work to a Strata Lot, Common Property, or Common Assets ==== | ||
In remedying a contravention of a bylaw or rule, a strata corporation can do work to a strata lot, common property, or common assets, or remove objects from common property or common assets (''SPA'', s 133). | |||
It is recommended that before work is done to a strata lot or limited common property designated for the exclusive use of one owner, the strata corporation obtain an injunction. Injunctions can include terms that if an owner refuses to do work to a strata lot, then the strata corporation can do it and charge the cost of such work back to the owner. | |||
==== c) Injunctions ==== | |||
S 133 states that the strata corporation may do what is reasonably necessary to remedy a contravention of its bylaws and rules. This includes an injunction. For example, injunctions have been granted against owners from commencing further appeal court actions against the strata corporation ([https://www.canlii.org/en/bc/bcca/doc/2010/2010bcca463/2010bcca463.html ''Bea v The Owners, Strata Plan LMS 2138'', 2010 BCCA 463]), and against owners to do things that have led to them constantly and continually contravening bylaws. | |||
==== d) Recovery of Legal Costs ==== | |||
Generally, the requirement for an offending person fined under s 130 to pay reasonable costs of remedying the contravention does not include legal costs, as it includes, at most, tariff costs. However, the court in Strata Plan | |||
NW 1260 v Neronovich (31 October 2001), Vancouver L012803 (BCSC) determined there are some significant circumstances and serious contraventions sufficient to warrant actual costs incurred, including legal costs, to be recovered. | |||
==== e) Denial of Access to Recreational Facility ==== | |||
Under section 134 of the ''SPA'', the strata corporation may, for a reasonable length of time, deny a strata lot owner, tenant, occupant, or visitor access to a recreation facility that is common property or a common asset. Usage of this measure is limited to transgressions of bylaws or rules that relate to use of that facility. | |||
==== f) Eviction ==== | |||
Under sections 137 and 138 of the ''SPA'', tenants who repeatedly or prolongedly contravenes a “reasonable and significant” bylaw or rule may be evicted, pursuant to section 47 of the [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/02078_01 ''Residential Tenancy Act'', SBC 2002, c 78]. There is no case law outlining the difference between a significant bylaw and an insignificant bylaw, and one would expect such a determination to be one based in each case on its facts. Either the landlord or the strata corporation may carry out the eviction. | |||
=== 4. Enforcement procedure === | |||
Section 135(1) of the ''SPA'' prevents a strata corporation from immediately fining, ordering payment of the costs of remedying, or denying access to a recreational facility upon becoming aware of a possible contravention. The strata corporation must first satisfy the following: | |||
# Receive a complaint about the contravention; | |||
# Disclose the owner or tenant the particulars of the complaint in writing; | |||
# Give that person a reasonable opportunity to answer the complaint, including holding a hearing if requested by that person; | |||
# In the case of a contravention by a tenant: give notice of the complaint to their landlord. | |||
If the strata corporation does not strictly follow section 135, any resulting enforcement actions are invalid: see [https://www.canlii.org/en/bc/bcca/doc/2016/2016bcca449/2016bcca449.html ''Terry v The Owners, Strata Plan NW 309'', 2016 BCCA 449]. | |||
==== a) Due Diligence ==== | |||
strata | |||
The strata council has its obligations and duty of care reflected in section 31 of the ''SPA''. Part of this is to collect as much data as it can when making a determination. If a strata council decides a bylaw or rule has been contravened, then enforcement procedures set out in sections 129 and 138 commence. Complainants alleging the strata council has wrongly decided there is no rule or bylaw contravention, the complainant has remedies as reflected in ss. 163 and 189 of the ''SPA''. | |||
==== b) Particulars of Contravention ==== | |||
S 135(1)(e) provides that an owner or tenant must be given the particulars of a complaint. There is no definition of “particulars”, but in [https://www.canlii.org/en/bc/bcca/doc/2016/2016bcca449/2016bcca449.html ''Terry v The Owners, Strata Plan NW 309'', 2016 BCCA 449] at para 28, the court held that the owner or tenant must give particulars “sufficient to call to the attention of the owner of tenant the contravention at issue.” | |||
==== c) Hearings ==== | |||
S | |||
The CRT in [https://www.canlii.org/en/bc/bccrt/doc/2019/2019bccrt655/2019bccrt655.html ''Eastman v The Owners, Strata Plan PGS 217'', 2019 BCCRT 655] found that the “hearing” should be defined as “an opportunity to be heard in person at a council meeting.” If the complaint is against a strata council member, the member must not participate in the hearing decision (''SPA'', s 136). | |||
A strata council does not need to grant a hearing in every possible circumstance. In [https://www.canlii.org/en/bc/bccrt/doc/2018/2018bccrt91/2018bccrt91.html ''Hales v The Owners, Strata Plan NW 2924'', 2018 BCCRT 92], the strata council was justified in denying an owner a hearing due to the following facts: | |||
1. The owner has not been fined, nor has he been penalized; | 1. The owner has not been fined, nor has he been penalized; | ||
2. The owner has made previous requests and was granted a hearing; | 2. The owner has made previous requests and was granted a hearing; | ||
3. The owner acted abusively at the August 2015 hearing and the council could expect | 3. The owner acted abusively at the August 2015 hearing and the council could expect the same conduct at the four requested hearings; | ||
the same conduct at the four requested hearings. | 4. The owner wished to discuss alleged contraventions of the strata and reparations to the owner due to the alleged contravention; and | ||
5. The reasons for the requests were with respect to the governance of the strata and would be more properly addressed at a meeting of the owners, or by majority direction of the owners. | |||
== E. Miscellaneous Issues on Bylaws and Rules == | |||
=== 1. Retroactivity === | |||
Bylaws do not typically create exemptions based on retroactivity except for the main examples in section 123(1) and (2) which address retroactivity with respect to pet and age requirements. The issue of retroactivity is largely up to the courts, like in [https://www.canlii.org/en/bc/bcsc/doc/1996/1996canlii2957/1996canlii2957.html ''The Owners, Strata Plan NW 243 v Hansen'', 1996 CanLII 2957 (BC SC)] when a bylaw prohibiting hot tubs was passed subsequent of the placement of a hot tub, and it would be unreasonable to force Hansen to remove the hot tub. | |||
== F. Acceptable Bylaws == | |||
Some provisions in the ''SPA'' permit strata corporations to influence their governance though bylaws not included in the Standard Bylaws. | |||
=== 1. Strata Council === | |||
Section 28(2) of the ''SPA'' permits a strata corporation to allow a class of persons, other than those referred to in s 28(1), to be strata council members. This does not permit a strata corporation to create a bylaw reserving positions on a strata council for owners of a section or type of strata lot. | |||
Section 28(3) permits a strata corporation by bylaw to prohibit a person from standing for strata council or continuing as a strata council member with respect to a strata lot if the strata corporation is entitled to register a lien against that strata lot under s. 116(1). | |||
=== 2. Voting and Quorum === | |||
Section 53(2) permits a strata corporation by bylaw to prohibit a vote being exercised for a strata lot, except on matters requiring a unanimous resolution, if the strata corporation is entitled to register a lien against that strata lot under s. 116(1). That strata lot’s vote must not be considered for the purposes of determining a quorum (s. 53(3)). | |||
Section 48(2) provides that a quorum for an AGM or SGM is eligible voters holding 1/3 of the strata corporation’s votes, present in person or by proxy unless there are fewer than four strata lots or four owners (in which case it is eligible voters holding 2/3 of the strata corporation’s votes present in person or by proxy). | |||
Section 48(3) provides that in the case of a lack of quorum within 1/2 hour from the time appointed for a general meeting, then the meeting is adjourned one week. If 1/2 hour passes without a quorum at the meeting a week later, then those present constitute a quorum. Holding two meetings is expensive, so many strata corporations pass a bylaw that calls for those present after 1/2 hour passes in the first meeting to constitute a quorum. | |||
=== 3. Financial Considerations === | |||
Section 98(2) prohibits expenditures from the operating fund in excess of the lesser of $2,000 or five per cent of the annual operating fund budget, unless a bylaw states otherwise. A large strata corporation may wish to pass a bylaw increasing the limit, if the budget is substantial. | |||
Section 107(1) permits the strata corporation by bylaw to establish a schedule of strata fees that sets out a rate of interest, not to exceed the rate set out in the ''SPR'', to be paid if the owner is late paying strata fees and special levies. | |||
=== 4. Commencing Action in Small Claims Court === | |||
Section 171(2) provides that before a strata corporation sues under s 171 for money owing including a fine, the suit must be authorized by a resolution passed by a ¾ vote at an annual general meeting or special general meeting. | |||
=== 5. Maximum Fines === | |||
The Standard Bylaws provide that a strata corporation may fine a maximum of $50 for contravention of a bylaw and $10 for contravention of a rule. Section 132 of the ''SPA'' permits the strata corporation by bylaw to provide maximum fines in excess of the amounts noted in the Standard Bylaws, to a maximum set out in the ''SPR''. Section 7.1(1)(a) of the ''SPR'' notes the maximum fines to be set out in bylaws are (with specified exceptions) $200 for contravention of a bylaw and $50 for contravention of a rule. Section 7.1(1)(c) provides that the maximum fine that a strata corporation may set out in bylaws for each contravention of a bylaw that prohibits or limits use of all or part of a residential strata lot for remuneration as vacation, travel, or temporary accommodation is $1,000. | |||
The maximum frequency that a bylaw can set out for the imposition of a fine for a continuing contravention of a bylaw or rule is every seven days (s 7.1(2)(a)). However, in the case of contravention of a bylaw that prohibits or limits use of all or part of a residential strata lot for remuneration as vacation, travel, or temporary accommodation, the frequency may be daily under s 7.1(2)(b). | |||
=== 6. Insurance === | |||
Section 149(4)(b) provides that property insurance obligations must include major perils, as set out in the ''SPR'', and any other perils specified in the bylaws of a strata corporation. “Major perils” as defined in s 9.1(2) of the ''SPR'' does not include earthquakes. It is recommended that a strata corporation pass a bylaw requiring it to obtain insurance against earthquakes. | |||
=== 7. Limitation of Liability === | |||
A strata corporation may pass a bylaw limiting the strata corporation’s liability to owners on property loss claims. This was confirmed by the CRT in [https://www.canlii.org/en/bc/bccrt/doc/2021/2021bccrt655/2021bccrt655.html ''Guemas v The Owners, Strata Plan NW 2382'', 2021 BCCRT 655]. | |||
== G. Rules == | |||
=== 1. Mechanics === | |||
As the strata council exercises the powers and performs the duties of the strata corporation (''SPA'', s 26), the strata council may make rules governing the use, safety, and condition of the common property and common assets that do not contravene the ''SPA'', the ''SPR'', the ''Human Rights Code'', or any other enactment or law. | |||
the | |||
not | |||
A rule made by a strata council is valid only until the first general meeting (annual or special) after the rule is made. At that general meeting, the rule must be passed by a majority vote of the strata lot owners, or it will cease to have effect (s. 125(6)). Once the rule is so ratified, it is effective until it is repealed, replaced, or altered, without need for further ratification (s. 125(7)). | |||
A rule made by a strata council is valid only until the first general meeting (annual or | |||
special) after the rule is made. At that general meeting, the rule must be passed by a majority | |||
vote of the strata lot owners, or it will cease to have effect (s. 125(6)). Once the rule is so | |||
ratified, it is effective until it is repealed, replaced, or altered, without need for further | |||
ratification (s. 125(7)). | |||
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