Part 34 published on 01/05/11
Developer must share costs attributable to common facilities
The Timberline Lodges complex consists of 175 strata lots in six buildings, developed in 11 phases. The complex includes six hot tubs, each associated with a particular lodge, elevators in four of the lodges and a common laundry room in each of 3 of the lodges.
The strata corporation claimed that the developer was obligated to share in certain costs relating to the hot tubs, elevators and laundry rooms. The strata corporation relied on Section 227 of the Strata Property Act which states that, in the case of a phased development, the developer must share expenses attributable to “common facilities”. At any given time, expenses are allocated as if the development is complete, and the developer pays the portion (for common facilities) attributable to the undeveloped part of the property.
The Court held:
- The hot tubs are common facilities and the developer accordingly had to share in the costs to replace two of the hot tubs (due to wear and tear over time).
- The laundry facilities are common facilities. However, the cost to replace the washers and dryers was not “attributable to the common facilities” because they were removed by a departing property manager, and their removal was accordingly “attributable to a business dispute between the plaintiff and its property manager”.
- The elevators are not common facilities. Therefore, the developer was not obligated to share in expenses attributable to the elevators.