Part 7 published on 01/08/04
Sharing of repair costs only by specific type of Strata lot ordered in this case
The Strata Corporation contained two different types of Strata lots – townhouses and apartments – and was constructed in phases. Ms. Mason owns a townhouse in Phase Four.
The Strata Corporation had levied special assessments to repair water ingress problems related to townhouses constructed in Phase One. The special assessment was allocated to the owners of all townhouses. Problems had not yet appeared in Phase Four and Ms. Mason was also unhappy that she was obligated to contribute to the special assessment and that the owners of the apartments were not.
British Columbia’s Condominium Act was replaced by the Strata Property Act on July 1, 2000. The Strata Property Act established new requirements for reserve fund expenses to be allocated only to certain types of Strata lots within the Strata Corporation. However, the Court also said that: “The scheme of the legislation, in relation to existing Strata Corporations that had allocated both operating and contingent expenses by type, was to permit the Corporation to continue such allocation provided it had passed and followed a by-law to that effect prior to July 1, 2000.” The Court found that such a by-law had been passed and filed in this case. The Court concluded as follows:
“In summary, on this aspect of the case, I conclude that By-law 2.2 authorizes (the Strata Corporation) to allocate operating fund expenses and contingency reserve expenses, including those raised by special levy, according to type of strata lot (i.e. townhouse or apartment), both before and after January 1, 2002.”
The Court also found that this result could not be considered “significantly unfair” or oppressive to Ms. Mason.