Tony Gioventu
Province
Dear Condo Smarts: Our property manager suggested we pass a 3/4 vote as soon as possible so we wouldn’t get burdened with the additional fees for a depreciation report that’s required with the new amendments to the Strata Property Act. So at our AGM in February, we passed a 3/4 vote to exempt our strata. Now we have a challenge with the resolution, because we also voted to not be obliged to contribute any amount, yet the regulations still require a minimum contribution of 10 per cent. So if we change back and reverse the 3/4 vote, we have two questions: How do we proceed with a depreciation report and who is a qualified person?
— John Fischer, Richmond
Dear John: Your strata is a bit ahead of the legislation. Yes, the amendments to the Strata Act under Bill 8 were passed; however, only certain sections were brought into force by the regulations.
The sections that deal with depreciation reports, audits, arbitration, Provincial Court, and amendments to Form B Information Certificates all require extensive development and consultation before the regulations can be created, and are therefore not yet in effect.
However, exempting your strata from the funding obligations has significant repercussions in the future, especially if your neighbouring properties are participating in active depreciation/reserve fund reports and are funding them over the long term. At some point, your strata will be faced with substantial special levies to address repairs, and future buyers, mortgage providers, mortgage insurers and insurance companies will begin to view your lack of long-term planning and financial commitment as a significant risk. That will have a negative effect on the value of your properties.
Before you decide to exempt your strata from these obligations, think of what the future may hold for your property values and owners’ personal financial risks.
The Condominium Home Owners’ Association is hosting three forums on reserve fund studies that are open to the public at no cost.
Their purpose is to provide strata corporations with an understanding of reserve fund studies (depreciation reports) and to seek feedback on the issues that strata corporations will be facing in the near future.
The forums will be held on Saturday, April 17 from 10:30 a.m. to noon at Douglas College, 700 Royal Avenue in the New Westminster Large Lecture Theatre; on Saturday, May 15 from 2:30 p.m. to 4:30 p.m. at the Days Inn, 152 Riverside Drive in Penticton; and on Saturday, May 29 from 2:30 p.m. to 4:30 p.m. at the Comfort Hotel, 3020 Blanshard Street, Victoria.
Space is limited, so please contact the CHOA office to register, toll-free, at 1-877-353-2462, extension two.
Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail: tony@choa. bc.ca
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