Strata Tip - Maximum Strata Fee Increases
1. Is there a maximum by which strata fees can increase from year to year?
In British Columbia, the maximum amount that strata fees can be increased is not explicitly regulated by the Strata Property Act (SPA). In other words, the SPA does not set a limit on the percentage or amount by which strata fees can be increased from year to year.
Instead, the SPA requires that the owners of a strata corporation approve an annual budget at each annual general meeting (AGM) through a majority vote resolution. The approved budget determines the strata fees for the upcoming year and establishes the spending limits for the strata council during that year.
For more information on the formula used to calculate strata fees, you can read this article titled Ensure the Strata Fees are Calculated Correctly.
2. What happens if the owners don’t approve the budget presented at the AGM?
If a budget is not approved at the AGM, the strata corporation must put forward a new budget to be voted on at a special general meeting (SGM). The SGM must be held within 30 days of the AGM (or longer if approved by a 3/4 vote at the AGM).
3. So what, ultimately, dictates what the strata fees are going to be?
Overall market increases in the costs of goods and services, as well as the strata corporation’s revenues, expenses and long term saving strategy, will ultimately dictate how much a strata corporation will need to increase strata fees (if at all), in order to meet its legal and financial obligations.
Source/Original Article: Condo Clear Services Inc. | www.condoclear.ca
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