Dear Tony: Our strata owners have refused to approve a special levy of $300,000 for an upgrade to one of our two aging elevators. It has been down for two months, and owners are very concerned our second elevator will fail leaving our many residents with disabilities with no access.
How do we force our corporation into action? Even if we approve the levy, it is going to be three months before the service provider can have the elevator operational.
Carolyn M.
We are definitely feeling the affordability crunch these days. Increased taxes, financing costs, service fees and utilities are all on the rise. The result is many strata corporations are struggling to pass levies for urgent repairs.
Older communities are especially hard hit as their aging building systems are now imposing pressure on repairs and renewals, yet their reserve funds are at an all-time low. Compound that with owners who purchased more than 20 years ago as downsized retirement homes, and the pressure for owners on fixed incomes is a significant stress factor.
Affordability is the main reason owners vote against levies, but there are options, and while it may result in some owners being forced to sell, a strata corporation has no choice. You must maintain and repair your common property.
When a special levy resolution is defeated, the Strata Property Act permits a strata corporation represented by their council to proceed to Supreme Court for an order for the repairs and the levy, if more than 50% of the owners at the meeting in person or by proxy, voted in favour of the repairs, where a repair is necessary to ensure safety or to prevent significant loss or damage, whether physical or otherwise.
The council does not require the approval of the owners. They retain legal representation to make the application, and under the circumstances will order the levy and the repairs.
If the strata corporation did not obtain the minimum voting required, an owner(s) may apply to the courts for the appointment of an administrator and the order for the repairs and levies. The administrator is responsible to implement the order including the repairs and collection of the levies. An owner may also consider a Human Rights Complaint if the elevator failure results in an accessibility restriction; however, such an order may not be timely.
Strata corporations also have the option of borrowing funds and financing the repairs. The interest rates are higher for commercial loans, but the strata may negotiate a 10-year amortization. While it reduces the initial cash flows, the cost overall is substantially higher.
I share your concern regarding the age of the elevators and likelihood of both failing. The most economical option is to negotiate the overhaul of both elevators to reduce costs and ensure they are eventually operating efficiently and safely.
From Dec. 10-20, CHOA is hosting a province-wide survey on consumer impact of elevator operations and deficiencies. Consumer feedback is essential as it influences policy reviews and future regulations. Please go to www.choa.bc.ca and sign up for the e-update to receive an automatic survey link.
Tony Gioventu is executive director of the Condominium Home Owners Association.
