Part 52 published on 08/14/15
Strata corporation granted authority to proceed with special levy
Under Section 108(2) of the Strata Property Act, the strata corporation had sought approval by ¾ vote to proceed with a special levy for the purpose of funding the cost to install a waterproofing membrane over portions of the garage slab, and for certain other ancillary work.
Ultimately, a majority of the owners supported the resolution, but the requisite three-quarter vote was not obtained.
The strata corporation then petitioned under section 173 (2) of the Strata Property Act for an order deeming the necessary resolution approved and allowing the strata corporation to proceed with the special levy. The petition was granted.
The Court said:
In my view, giving s. 173 (2) its plain meaning and taking into account the purpose of s. 173, which is to provide the means for strata corporations in appropriate cases to be able to proceed with necessary repairs and maintenance to common property in circumstances where they obtain majority support but not a three-quarter vote, I find that the appropriate test of what constitutes “significant” damage or loss is whether the damage or loss is extensive or important enough to merit attention.
The strata corporation has relied on the advice it has received from the engineers. It is entitled to do so. Bearing in mind all of the engineering evidence, including the evidence of Levelton, I find that the repairs and maintenance proposed by the strata corporation through the resolution are repairs and maintenance necessary to prevent significant loss or damage to the common property.
The Court also said that there was no need for a three-quarter vote to authorize the corporation’s commencement of the petition under section 173 (2). The Court said that requiring such a three-quarter vote would defeat the purpose of sections 173 (2) to (4).