Bill 12 (the Natural Gas Development Statues Amendment Act) has now received Royal Assent as of April 9th. The amendments to SPA (in sections 39-44 of the bill) take effect as of that date.
As VISOA President, Sandy Wagner, noted: “The updates to the SPA are well-warranted, and will have huge impact in my opinion. Stratas are now explicitly permitted to pay for the cost of obtaining a Depreciation Report through their annual budget, as many stratas tried to authorize this as a CRF expense, which as we all know, requires a ¾ vote. The other important change is this: the CRF cost of repair for items recommended in the Depreciation Report can now be authorized by a simple majority vote instead of the usual ¾ vote. We at VISOA are pleased that these changes have been made, as it will eliminate the possibility of a small group of short-sighted owners blocking these necessary expenditures.”
In general, the amendments make it easier for strata councils to carry out their responsibilities by removing regulatory barriers for strata corporations and owners, clarifying requirements and refining problematic definitions. A key focus is supporting strata corporations in maintaining their buildings and other assets.
One amendment clarifies that paying for and accruing funds to pay for a depreciation report is a legitimate operating fund expense, and can be approved by a majority vote.
Another amendment makes it easier for strata corporations to pay for repairs recommended by their depreciation report by reducing the required approval for contingency reserve fund expenditures for such repairs from three-quarters to majority vote. Expenditures from the contingency reserve fund that are unrelated to the repair and maintenance of the common assets—e.g., the addition of a covered walkway or swimming pool—would still require a three-quarter vote. Other minor changes help clarify the definition of purchaser and that storage locker allocations are required records.
It typically takes several days if not weeks for Queens Printer to update the online version of the SPA at www.bclaws.ca.
The complete text of Bill 12 can be found here however the following are key amendments for Strata Property Owners.
Strata Property Act – Bill 12 Amendments:
39 Section 1 (1) of the Strata Property Act, S.B.C. 1998, c. 43, is amended
(a) in the definition of “contingency reserve fund” by striking out “that usually occur less often than once a year or that do not usually occur“, and
(b) in the definition of “operating fund” by striking out “that usually occur either once a year or more often than once a year“.
40 Section 35 (1) (c) (i) is amended by striking out “parking stall numbers,” and substituting “parking stall and storage locker numbers,“.
41 Section 89 (1), (2) and (5) is amended by striking out “the purchaser“ and substituting “the purchaser or, if the strata lot is conveyed to the purchaser and the purchaser becomes the owner of the strata lot, that owner“.
42 Section 92 (a) is repealed and the following substituted:
(a) an operating fund for common expenses that
(i) usually occur either once a year or more often than once a year, or
(ii) are necessary to obtain a depreciation report under section 94, and
43 Section 96 is repealed and the following substituted:
Expenditures from contingency reserve fund
96 The strata corporation must not spend money from the contingency reserve fund unless the expenditure is
(a) consistent with the purposes of the fund as set out in section 92 (b), and
(b) approved or authorized as follows:
(i) the expenditure is first approved by a resolution passed by
(A) a majority vote at an annual or special general meeting if the expenditure is
(I) necessary to obtain a depreciation report under section 94, or
(II) related to the repair, maintenance or replacement, as recommended in the most current depreciation report obtained under section 94, of common property, common assets or the portions of a strata lot for which the strata corporation has taken responsibility under section 72 (3), or
(B) a 3/4 vote at an annual or special general meeting if the expenditure is not described in clause (A) (I) or (II);
(ii) the expenditure is authorized under section 98.
44 Section 109 is amended
(a) in paragraph (a) by striking out “the seller owes” and substituting “the person who is the owner of the strata lot immediately before the date the strata lot is conveyed owes”, and
(b) in paragraph (b) by striking out “the purchaser owes” and substituting “the person who is the owner of the strata lot immediately after the date the strata lot is conveyed owes“.
45 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:
Provisions of Act
|Anything not elsewhere covered by this table||The date of Royal Assent|
|Section 17||October 4, 2010|
|Section 18||May 31, 2012|
|Sections 19 to 38||By regulation of the Lieutenant Governor in Council|
The complete text of Bill 12 can be found here