Strata Tip of the Week - 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 our email 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.

That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca.

Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice.

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