Part 18 published on 01/05/07
Strata Corporation authorized to levy special assessment
The building was experiencing water penetration due to defects in the envelope. Owners could not agree upon the necessary remediation. One independent expert recommended repairs estimated at about $1.8 million. The Strata Corporation obtained a second opinion that questioned that approach and offered a less expensive alternative. The Strata Corporation did not want to be forced to proceed with the “$1.8 million option”.
Because of the disagreement, the owners had not given the necessary ¾ voting approval to any special assessment.
The Court did not decide on the necessary special assessment. Instead, the Court authorized the Strata Corporation to issue a special assessment in an amount “not exceeding” $1.8 million. This would then allow the Strata Corporation to consider all of the expert reports and exercise its discretion about the appropriate repair strategy. The Court said: “In performing its obligation (to repair and maintain the common elements) the Strata Corporation must have regard to the observations and recommendations contained in both of the (expert reports).”