Part 29 published on 01/02/10
No significant unfairness where special levy is based on unit entitlements
In this 41-unit strata corporation, the unit entitlement schedule fixed the nine basement units at 2 and the 32 crawlspace units at 1. A special levy was necessary in order to raise approximately $3,000,000 for necessary repairs. The basement unit owners asserted that payment of the special levy in accordance with unit entitlements was “significantly unfair” (per Section 164 of the Strata Property Act) because such a sharing did not fairly reflect the amount of repair attributable to the different units.
The Court held that the strata corporation was obligated, by Section 108 of the Strata Property Act, to allocate the special levy in accordance with unit entitlements. As such, there was no decision or “action” of the strata corporation which could be considered significantly unfair as required by Section 164 of the Strata Property Act.
Therefore, the action by the basement owners was dismissed.