CBC DOC ZONE VIDEO "The Condo Game"
Are you thinking of buying a condo? If you do, you should set aside money for special strata assessments that are additional to any regular monthly "contingency" strata fees. AND read this CONDO USER'S GUIDE prepared by Ted Kesik, University of Toronto building science professor.
Here is an excerpt from the BC Housing Home Owner Protection Office website "Managing Strata Repairs FAQ"
Can the strata corporation use the Contingency Reserve to fund repairs? What options are available to fund the repairs?
According to the BC Strata Property Act, monies in the Contingency Reserve Fund can be used for emergency repairs without approval from the owners. Beyond emergencies, owners must give their approval at a general meeting to use these funds.
The strata corporation has two options for raising money:
1) The strata corporation can borrow money and collect additional amounts from owners each month to repay the loan
2) Special assessments can be levied against each strata unit
Either course of action requires approval by the owners at a general meeting of the strata corporation.
What happens if not all owners are able or willing to contribute their share of the repair costs?
Once the strata corporation has approved a resolution to levy special assessments, the Strata Property Act provides remedies for those who do not pay on time. Ultimately, the strata corporation can place a lien against the strata lot requiring it to be sold and monies owing to the strata corporation are collected from the sale proceeds.