Prepare detailed reports

Tony Gioventu
Province

Dear Condo Smarts:

Our strata corporation is about to proceed with some major exterior work. Can a strata corporation borrow money in the same way an individual takes out a mortgage to buy a home? How and what are the best ways to set the payment schedule? Is it best through a special levy or through our monthly strata fees?

— John Alton, Burnaby

Dear John: Yes, strata corporations can most definitely borrow funds, and they can borrow large amounts. There are several banking institutions in the province which lend to strata corporations for major construction and upgrades.

Your strata council should first start with a complete construction report on the scope of work you intend to conduct, and once you have established an accurate cost estimate, it is time to start shopping around for the best service and best rates. Provided the ratio of the loan, versus the capacity of value is not excessive, the rates should be competitive at a commercial level, and the terms of repayment can be five to 10 years.

Repayment could be achieved by one of two methods. A special levy, or levies, could be imposed until the loan is paid. An expense to the annual operating budget is a second method; the monthly fees would include the value of each strata lot’s loan payment by unit entitlement.

Depending on the term of the loan, value of the loan, and your management administration costs it may be more economical and efficient to approve the loan as part of the operating budget and monthly fees. If the repayment is short term and a fixed rate with no variables, then a special levy may be the appropriate decision.

The strata corporation enters into a loan agreement, which is a contractual document that will grant the lender the first priority of receipt of special levies or strata fees.

Because the strata cannot mortgage common property, this is the security required by most lenders to ensure that they have the legal authority to collect on behalf of the strata corporation in the event that the strata corporation defaults on the loan.

Before you enter into a loan agreement you will first need the approval of three-quarters of the owners for the value of the loan, terms and conditions of the loan, and the period of the loan.

It is critical for the owners of the strata, the strata council and the lender, that the three-quarter resolution is properly written and reflects all of the conditions and payment schedules of the loan.

A strata council should seek legal advice on the writing of the resolution, and the loan negotiations. If the resolution is not properly worded owners may be exposed to changes in the loan rates or terms that they did not approve, and the council and the lender may not be granted the authority necessary to execute the loan or take proper action for collections.

When negotiating a loan, it is critical to identify what the monthly payments will be in the repayment schedule. And don’t forget the economics of the loan repayment.

It may have seemed like a good idea to borrow the funds, until you discover the payments have raised strata fees or a special levy by $300 to $500 monthly.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected].

© Copyright (c) The Province

Strata councils are well advised to establish a long-term relationship with one broker

Suzanne Morphet
Sun

Insuring your strata property in case it’s damaged by fire, storms, earthquakes and other hazards is not just common sense; it’s the law.

Section 149 of the Strata Property Act requires strata corporations to obtain enough insurance to cover the full replacement cost. Section 150 requires strata to purchase a minimum of $2 million in liability insurance in case of property damage or bodily injury.

So important is insurance that section 154 says strata corporations must review the adequacy of their insurance every year and report on their coverage at every annual general meeting.

Yet insurance is a major expense for most strata corporations and it’s tempting to reduce expenses. One reader wrote to me: “A small complex such as our own (six units) finds the premium for compulsory liability insurance too onerous . . . Okay, so one year we decide to allow the policy to lapse. Who knows and who is watching?”

His point is that nobody enforces the Strata Property Act, which is true. But when it comes to insurance, it’s probably not a good idea to flout the law.

If your strata corporation is underinsured, it could be subject to something called a co-insurance penalty.

For example, if the appraised replacement cost of the strata building(s) is $10 million and your strata corporation has purchased an $8 million insurance policy, it is 20 per cent underinsured, which means it would be covered for only 80 per cent of any loss. So if, say, you have a $10,000 claim for water damage, your insurance would pay only $8,000 less the deductible.

According to Harvey Williams, the past president of the Vancouver Island Strata Owners Association, insurance brokers sometimes quote on a policy that has a co-insurance clause in it, stating that the insurer will cover, for example, only 90 per cent of the replacement value. Such policies are illegal.

Harvey says he’s even heard of strata corporations with four buildings buying sufficient insurance for only one of them, believing that they can apply that insurance to any one of the four should something happen. “It comes as a shock when there is a loss to discover that there is de facto co-insurance and only one-quarter of the loss, less deductible, is paid,” he says.

Even if you and your strata corporation have no intention of under-insuring, you might be tempted to seek out the best rates you can every year, changing insurance companies, if necessary.

Don’t do that, at least not routinely. “It’s not a good idea to shop around

year to year because if you move from insurance company to insurance company based on price you don’t build a relationship with that company,” says Gerald Matier, executive director of the Insurance Council of B.C., the organization that licenses insurance agents.

He explains that if you have a claim and if you’ve only been insured by that company for one year, it may decline to insure you again. Rates, he says, are “a big factor, but one has to be conscious of the fact there is a benefit to loyalty and consistency.”

And even if loyalty wasn’t a consideration, you probably don’t have the knowledge to pick the best insurance.

In his information booklet for strata corporations, Williams writes: “Strata councils that obtain quotes from several different insurance companies and who then try to compare policies and costs are attempting a task for which they are ill-equipped.”

In other words, when it comes to insurance, find a broker you trust, rely on his or her advice and find other places to cut your expenses.

Williams’ booklet, Strata Insurance, can be ordered from the VISOA website at www.visoa.bc.ca

© Copyright (c) The Vancouver Sun

Be proactive by watching for signs such as covered windows, venting odours, late-night deliveries

Tony Gioventu
Province

Dear Condo Smarts: What do you do when your strata has a dangerous person living in the complex? In February, there was a police raid in one of the town houses in our complex. Two people were arrested and a marijuana growing operation was busted. Now the strata is still trying to clean up the pieces from the grow op and there is damage to units on either side of the grow op. Our insurance does not cover damages due to grow ops and the cost for restoration to the neighbours units is almost $100,000. Our 38-unit strata simply does not have enough money to make the repairs to the common areas, including the attics, roofing, and mould contamination. What recourse do strata corporations have against grow ops? To our strata, it is the worse-case scenario and we’re going to be left paying the bills because someone else ran an illegal operation.

— DW, Richmond

Dear DW: You are absolutely right about one thing: a grow op or meth lab can be almost the worst thing to happen. In most cases, there is no insurance. In addition, if there is any type of toxic or chemical contamination, it may require the evacuation of an entire building or complex for an extended period of time.

Being proactive is one of the first steps. Watch for the signs of sealed-up units, covered windows, venting smells at night, owners paying strata fees in cash, frequent late-night or secret deliveries, gardening supplies in the trash, unauthorized alterations to exhaust fans and locations. Alone, the indications are common, but combined with an owner or occupant who refuses to permit inspection of a strata lot, they are a good sign of an illegal activity.

Strata corporations can also contact their local community police office to report unusual activities, or for additional security assistance and information. Most neighbours are aware of a grow op, however are often concerned for their safety and reluctant to file complaints. Council can act for the owners and contact the authorities.

When you discover a grow op, make sure the police are called first. Once the authorities are done, your next steps are critical. Contact the local bylaw enforcement officer of your local government and find out what is being done about the orders to repair the strata lot and adjacent lots that are damaged. Everything from walls and windows, to structure, roofing, insulation, plumbing electrical and all finishes may have to be replaced.

The Strata Property Act gives the strata corporation a significant amount of power to enforce the repairs and recover funds from the eventual proceeds of the sale of the strata lot. Sections 83-85 refer to work orders.

These are orders issued to the strata lot owner and often include and name the strata corporation. Under section 85, if an owner does not perform the work, the strata corporation has the ability to advise the owner it is going to commence the work within one week, proceed with the work if the owner does not appeal or commence, and the owner must reimburse the strata corporation for the cost.

The real strength in this measure is that under the act, the amount becomes lienable, and the strata corporation may seek an order for sale of the strata lot to recover the amount. Even if the property is mortgaged, the strata corporation’s claim will take priority. The strata council needs to act quickly to seek legal advice on its next steps to ensure the work is performed properly, in a timely fashion and that the strata lot owners are not left holding the cost. In the event the property is seized under the proceeds of crime legislation, your lawyer’s assistance will be invaluable. We have worked with many strata corporations that have been the victims of grow ops and meth labs, and provided the strata takes action quickly and engages an experienced lawyer in the topic, the results are positive.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail tony@choa. bc. ca

© Copyright (c) The Province

Failure to elect members doesn’t rule out alternatives

Tony Gioventu
Province

Dear Condo Smarts : In 2001 our strata council adopted a set of bylaws that included a limit on the number of consecutive terms a councillor might serve. The number is three. Our records show this limit was a recommendation from a parliamentarian who assisted us with our bylaws: he thought a term limit would facilitate change at the top. Our strata corporation has recently started to run out of people to serve. At our AGM, none of our five council members could continue because they had all served three years and no one else wanted to be elected to council. No one knows what to do, and we now have no strata council. We are an aging community and most residents couldn’t even be bothered in coming to our meetings. What happens when a strata does not elect a council?

— Marj D. Kelowna

Dear Marj: Your problem is a growing concern in the province. Council members are volunteers serving their fellow owners, and the role can be a very time-consuming and stressful job.

Your strata obviously needs to amend its bylaws quickly to ensure you can elect those people who are willing to serve.

Strata corporations are best served if their strata councils are well served. Annual budgets should include consulting services for legal, procedural and operational professionals. When a strata council runs into a bit of trouble, they should have the resources available to pay for the professionals who can help them out.

Strata councils often find bylaw enforcement very frustrating, often because the owners do not provide enough resources for council to take action when it’s needed. Absent funds or support, condo smarts councils are often resigned that there is little they can do.

There are serious repercussions if your corporation does not elect a council. You will not be able to enforce bylaws, which instantly means if someone does not pay strata fees no one can collect the funds. If you are self managed, no one can sign information or payment certificate requests for sales agreements, and generally the strata corporation will cease to operate within the requirements of the legislation.

Eventually an owner(s) will have to apply to the courts for the appointment of an administrator to manage the affairs of the corporation. If a strata corporation reaches a serious impasse over administration of affairs, the administrator may be the correct decision, but simply failing to elect a council may not be the appropriate decision.

Strata corporations have many choices in addition to owners being elected to council. Bylaws can be amended to permit the election of: “spouses of owners not on title, family members of owners not on title, professionals, tenants, or other parties.”

Whether your strata is self managed, or contractor manager, make sure your bylaws truly reflect the needs of your community, and your annual budget provides the necessary tools for the strata council to perform their roles effectively.

© Copyright (c) The Province

Fee increase before council approval like putting cart before horse;

Tony Gioventu
Province

Dear Condo Smarts: We have an awkward situation in our strata with our manager. We really like our manager and have been very satisfied with our contract, but for this year’s AGM, the manager drafted the new budget, and then sent it out without the council’s review. It included an 11-per-cent fee increase.

Council was embarrassed to admit it had not reviewed the proposed budget, and in the end the amount was amended to a five-per-cent increase in management fees. Our fiscal year-end was Jan. 31, we had our meeting in June, and the next day after the budget was approved, our manager charged and paid the increase back to Feb. 1, without a council meeting or the consent of the council.

We don’t want to lose our manager, but we also want to be responsible in our decision-making. What should have been the proper procedures to follow?

— Hilary W., Abbotsford

Dear Hilary: It is important to understand the relationship between the strata council and the strata manager. The strata council members are the legally elected representatives of the strata corporation and are ultimately responsible for the decisions of the corporation, administration of the operations, financial operations, maintenance and repair of the common property, insurance, and the enforcement of bylaws and rules.

Basically, the strata corporation may contract out as many or as few of the operational services that it wishes to negotiate in the contract. The fees that a strata manager charges for their monthly services, and any disbursements or additional costs, or funds or benefits received on behalf of performing work for the strata corporation, must also be included in the contract or an additional signed addendum by the strata corporation.

Even if the fees are approved in the budget, the additional increase or service costs cannot be received by the management company unless they have either been specifically agreed in the contract schedule or until the strata council agrees to sign the new service agreement.

The approved budget simply authorizes the strata council to expend the funds. It is not a general practice for the manager to send out the budget and notice package without the approval of council; however, some strata corporations only meet once a year and rely on the manager to coordinate their notices and agendas for the meetings. Council members need to clearly understand the roles and duties of both the manager and the strata council.

Hilary’s strata corporation also needs to be mindful that it far exceeded the requirements for holding its AGM. The AGM must be held no later than 60 days after the fiscal year-end. Once an increase is approved at an AGM, the council needs to place that item on the agenda of the next council meeting, to discuss and ratify the fees and amendments to the contract.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected].

© Copyright (c) The Province

Taxman can sting strata corporations making cash on the side

Tony Gioventu
Province

Dear Condo Smarts : Our strata has always been under the impression that strata corporations were tax-exempt. As a result, we are not required to file tax returns and we don’t pay taxes or collect HST on strata fees. We have just received a notice that we are being audited by the CRA, and we’re not sure why or what we have to do. We are a residential highrise building in Burnaby with no commercial strata lots.

–Vicky M.

Dear Vicky: Strata corporations, for the most part, are classed as non-taxable corporations under tax laws, but not all strata corporations are tax-exempt. There are several types, usually non-residential, that are not necessarily tax-exempt. But there are even exceptions where a residential strata corporation is operating a commercial enterprise as part of the strata functions. If a condominium corporation carries on a business, any profits from that business must be included in its income and it will not be considered a non-profit corporation.

The following quote from the Canada Revenue Agency FORM IT-304R2 is very clear: “Paragraph 150(1)(a) of the Income Tax Act requires all corporations, including condominium corporations, to file an income tax return each year, even if they are exempt from paying tax under Part I. A residential condominium corporation that qualifies as a non-profit organization under paragraph 149(1)(l) is exempt from Part I tax on its taxable income, but is required to file Form T1044, Non-Profit Organization (NPO) Information Return, with its T2 tax return. Although it is a question of fact whether a particular condominium corporation qualifies for an exemption under paragraph 149(1) (l), most residential condominium corporations qualify as non-profit organizations within the meaning of this paragraph.”

Strata corporations are permitted to invest their reserve funds, and the interest earned on those funds for residential strata corporations is non-taxable; however, there are many strata corporations that have variations on income that transcend the intent of activities that are intended to generate profit. This may result in lower strata fees, which could be interpreted as profit.

Because strata corporations are permitted to charge user fees, some have been innovative with their options. For example, a user fee for additional parking in a building of $25 per month is unlikely to gain much attention, but a strata corporation that rents parking to the public as an enterprise for $300 a month can generate a significant amount of revenue. Both revenues must be reported in your annual income statement, and user fees are not necessarily tax-exempt.

Strata corporations are also permitted leases or licences over common areas. Again, this can generate substantial revenue. A series of rooftop communication towers can easily generate $100,000 a year or more.

If your strata has a long-planned and funded reserve fund study, or has conducted a major special levy, you are likely generating a significant amount of interest from the investments. That interest will generate a tax statement, and your strata corporation has to ensure it has filed an annual tax return with a yearend financial statement.

Contact your accountant or the CRA if you have any questions.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected].

© Copyright (c) The Province

But strata can’t penalize until after filing

Tony Gioventu
Province

Dear Condo Smarts: An owner is challenging us on our new pet bylaws. Our strata adopted a new bylaw in January that limits the number of pets to one per strata lot. There are owners who had more than one pet at the time, and we understand that those pets are exempt until they pass away or move with their owners. This guy brought in another dog in May and has cited new amendments to the act that stipulate that bylaws have no effect until they are filed in the land title office. Does this mean that even if a strata passes a bylaw that prohibits pets, an owner can get a new dog the night after the meeting and it is going to be grandfathered with the other pets?

— Barbara Morin, Kamloops

Dear Barbara: The new amendments to the act address the issue of enforceability of bylaws. Bylaws can’t be enforced by the strata council until they are filed in the Land Title Registry, but there is a separate provision that impacts the exemptions.

There is a limit that applies to pet, age and rental bylaws that occurs at the moment they are passed by 3/4 vote at either an annual or special general meeting.

Even though the strata cannot enforce them and impose fines or penalties until they are filed, the bylaws come into effect at that time and only those existing relationships of age, pets or tenancy are exempt.

Technically, once you file the bylaw, provided it is enforceable, the council has the authority to enforce the bylaw against the person who has brought in the additional pet after the meeting. As the act reads, a bylaw that prohibits a pet does not apply to a pet living with an owner, tenant, or occupant at the time the bylaw is passed and which continues to live there after the bylaw is passed. The same condition applies to tenants where a new bylaw that limits or prohibits rentals may apply to them, and even then a landlord has a one-year extension beyond the new bylaws when that current tenant leaves.

An important concept that strata owners and councils need to understand is that the term “grandfathering” does not appear in our legislation. Many times, the term grandfathering implies a perpetual exemption, whereas most of the exemptions in the act are provisional.

An updated version of the Strata Property Instruction Guides has been posted to the FICOM website and has useful explanations on the common use of the act, regulations and bylaws.

The address is fic. fic.gov.bc.ca.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected].

© Copyright (c) The Province

We all agree late-night parties are a pain, but consensus can be an issue with other concerns

Tony Gioventu
Province

Dear Condo Smarts: Our strata corporation is constantly dealing with complaints about noise, smoking, barbecue smoke and odours. All of these fall under the bylaw in the strata act that deals with items that are a nuisance. Smoking is the most obvious problem we frequently have to address. Our strata is an older building, so ventilation, indoor air quality and the passage of air and odours from unit to unit is a common occurrence. If we took all these items seriously, everyone in our strata would likely be in violation of the bylaws every month. We know some people are more sensitive, but with such an older building and living in a collective, there has to be some reasonable level of nuisance that everyone has to deal with. Where do we draw the line? Are there court cases or definitions that give us a better understanding?

Dvora and John North Vancouver

Dear Dvora and John: A number of terms used in the Strata Property Act and Standard Bylaws require the strata council to make an interpretation that is both reasonable and comparable to the circumstances of each community.

For example, there is a provision in the act where an owner may apply to the council for a hardship exemption from rental bylaws. Hardship itself is not defined and only the council may decide. The council could look to other definitions or examples, but ultimately it acts as the hearing body to gather information to make the decision. The duty to make the decision regarding a hardship exemption, bylaw enforcement, fines, penalties or special accommodations to the bylaws, cannot be delegated.

Nuisance can be interpreted quite broadly. Here are some of the interpretations the courts have issued in establishing a nuisance.

At common law, a “nuisance” is a condition on a property or use of a property that interferes with a neighbour’s ability to enjoy their property. For example, an industrial plant that otherwise operates lawfully may cause a nuisance if smoke or noise invades the right of enjoyment of neighbours to an unreasonable degree.

Elaine McCormack, a Vancouver lawyer whose expertise is in strata law, says: “The law of nuisance attempts to reconcile competing uses of land. It endeavours to balance the rights of one occupier of land to use his or her property for lawful purposes with another occupier’s right to the quiet use and enjoyment of his or her land. The court can intervene when the interference with the other’s use or enjoyment of land is unreasonable.”

If you look at the Standard Bylaws, these terms are almost identical. “Use of property … unreasonably interferes with the rights of other person to use and enjoy the common property, common assets or another strata lot.”

In a 1990 Supreme Court case in B.C. of Popoff v. Krafczky, the court approved the objective test as follows: “In every case, it is not whether the individual plaintiff suffers what he (or she) regards as substantial discomfort or inconvenience, but whether the average man (or woman) who resides in that locality would take the same view of the matter. The law of nuisance does not guarantee for any man (or woman) a higher immunity from discomfort or inconvenience than that which prevails generally in the locality in which he lives.”

Every strata council must decide what’s reasonable, balanced and is reasonable use and enjoyment of property without interruption.

Some nuisances we all understand: a loud party or vacuuming at 3 a.m., a dog barking all day, cigarette or barbecue smoke, cooking odours, exercise machines or hot tubs running at night causing disruptive vibrations or noise.

Many complaints relate to building designs or age. Older wood-frame buildings with hardwood floors may have no sound suppression, so even a pet or person walking across the floor may be an irritant.

The remedy may be notice of complaint and eventual bylaw enforcement. But where building designs or systems contribute to the nuisance, the corporation may have to assess other remedies first within its operations and bylaws to reduce the impact on owners.

In some instances, strata corporations have upgraded ventilation systems to deal with smoke or odour, adopted bylaws requiring area carpets in high traffic areas, and even in some cases amending bylaws that limit or restrict activities to make the lifestyle more reasonable for the occupants.

Tony Gioventu is executive-director of the Condominium Home Owners’ Association. E-mail: [email protected].

© Copyright (c) The Province

As objections to the standard property-management agreement demonstrate, fair is an eye-of-the-beholder conclusion

Suzanne Morphet
Sun

Recently I wrote about StrataWatch, a website that monitors companies which manage strata properties. The founder of StrataWatch, Bob Harper, automatically treats membership in the Strata Property Agents of B.C. as reason to lower his rating of a company.

He operates that way because two property-owner organizations think its members should not use the contract prepared by the Strata Property Agents of B.C. for its members.

The contract does not represent the best interests of property owners, the Vancouver Island Strata Owners Association and the Strata Home Owners Association of B.C. say.

Harvey Williams of the island association says the contract allows property-management companies to pool accounts for all properties they manage, making the monitoring of property-manager expenditures by strata corporations and councils difficult.

Kevin Thom, the executive director of the Strata Property Agents of B.C., says the Real Estate Council allows a brokerage to have a pooled trust account.

“This is often done to facilitate being more ‘green’ and only sending of one cheque to BC Hydro for, say, 200 clients,” he says.

Furthermore, Thom thinks the council’s annual audit of each brokerage, or their spot audits, would catch any money that goes “missing.”

Another objection Williams has to the SPABC contract is its “nickel and diming” content.

For example, the contract allows management companies to charge strata corporations and councils $95 per hour if a meeting lasts longer than two hours; to charge $300 for an annual review of the corporation’s trust accounts; and to charge $25 per month per box to store a corporation’s records.

Thom says management companies are required by the Real Estate Council to spell out every possible service fee, and says: “I believe it is in the clients’/consumers’ interest to know what they may be charged for.”

One more complaint Williams and others have with the SPABC contract is that it protects the management company from all “claims, damages, costs and liabilities” unless there’s gross negligence or deliberate misconduct on the part of the agent.

The Vancouver writer who blogs about strata living at Strata 101 doesn’t think that’s fair. She writes: “Property-management contracts essentially protect property management from everything….so much so, you have to wonder what service they do that a core group of owners couldn’t do just as easily themselves without the cost!!!”

On this point, both sides actually agree. Kevin Thom says it’s “absolutely true” owners can manage a common property themselves. There’s no law saying a corporation or council must hire a management company.

There’s also no law saying you have to agree to the SPABC contract if you do hire a manager.

© Copyright (c) The Vancouver Sun

They must be in place now, but strata corporations must find out who’s responsible for them

Tony Gioventu
Province

Dear Condo Smarts: We received a notice that the government brought in new regulations regarding mandatory smoke alarms in residential buildings. Our council gave notice to all the owners in our complex regarding the requirements for the smoke alarms, but several owners have refused and come back to the strata council and demanded that we install the smoke alarms. We don’t know how we are supposed to enforce the regulations. We are a strata of detached town homes, and the strata has no authority or obligation to maintain or repair the inside of the strata lot. We are concerned that this might put our insurance in jeopardy, and council is afraid of being sued if we don’t bring our buildings up to date. So how can we get our owners to co-operate?

— J.S. Myers, Nanaimo

Dear Ms. Myers: The B.C. Fire Code requires that every residential building built before March 31, 1979 shall have a smoke alarm installed by May 1, 2010. This new law applies to every private home, suites within apartment buildings and sleeping rooms such as those found in hotels or motels.

It also includes strata-titled residential buildings. Owners of these buildings are permitted to install battery-operated smoke alarms rather than alarms that are connected to the building’s electrical system.

Before any strata corporation can determine who is responsible for the smoke alarms or fire-safety systems, it needs to first understand whether the system is part of the strata lot, part of the common property, or a system that forms the common property. Once you understand where the responsibility lies, you then have to look at each of your bylaws to determine if your strata corporation is responsible for those portions of the services or safety systems.

The Strata Property Act sets out a definition for common property in Section 1. If it is common property as defined in the act, then it will fall on the shoulders of the strata corporation to inspect, maintain and repair the system.

A simple example of this relates to the emergency sprinkler systems in a condo building, where the entire system is interconnected and monitored by the strata corporation. This is routinely a common system that is inspected, maintained and repaired by the strata.

If you look at a typical older town house complex or condo before 1979, the interior services and obligations of most of the units are contained within the strata lot boundaries of that unit, and their services may not be part of a common system or interconnected; therefore, not part of the obligations of the strata to maintain and repair.

If a smoke alarm is not monitored or connected by the strata corporation, then it is the responsibility of each strata-lot owner to install his or her smoke alarms, maintain, and repair them. There are a few options for strata corporations. The first is a bylaw that reflects the requirements of the legislation, requiring smoke alarms in all residential units. The same bylaw may also set standards that require owners to maintain and repair the smoke alarms.

There still remains the challenge for the strata corporation to enforce the bylaws and inspect the units for compliance. Another option is for the strata corporation to adopt a new bylaw, where the strata corporation will be responsible for installing the smoke alarms and maintaining them annually. There are benefits to this bylaw in that the strata corporation can control the installation and service; you can gain the economics of cost.

For more information on the new regulations go to: www.housing.gov.bc.ca

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail: [email protected].

© Copyright (c) The Province