Quote:
Originally Posted by Gridlock
Strata Fees:
So in regards to the lame realtor yesterday^^, he did tell me about one thing regarding strata fees.
Apparently, the laws regarding their funding have changed that complexes need to have a depreciation report on all common property(siding, roofing, pipes, mechanicals) and have a funding plan for their replacement.
Basically, that backtracks to: we know we need to replace the roof in 10 years, we know its going to cost this much, so what does our strata fee need to be now in order to fund the maintenance of the building/complex.
So you are going to see a change in how buildings determine what their fee is going to be and how its charged.
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Depreciation Reports
Status: In Effect
A depreciation report help strata corporations plan for the repair, maintenance and replacement of common property, limited common property and common assets.
Strata corporations in British Columbia need to obtain depreciation reports every three years unless they hold an annual 3/4 (three quarter) vote to exempt or have four, or fewer, strata lots. There are different timing requirements for the first depreciation report depending on when the strata corproation was formed.
For strata corporations formed on or before December 14, 2011, a depreciation report is required by December 13, 2013.
For strata corporations formed after December 14, 2011, a depreciation report is required within 6 months after their second AGM. While the requirement for new strata corporations took effect via an Order in Council dated February 28, 2013, it will take several weeks for the new changes to be reflected in the online version of the strata property regulations.
See Guide12: Depreciation Reports
Further Resources:CHOA (Condominium Home Owners Association) and VISOA (Vancouver Island Strata Owners Association).
Yup, the strata council that I was part of before I sold my condo had to deal with this. Lots of angry owners, but our hands were forced. It's better to deal with it on a higher monthly strata fee, than to have a special assessment every few years to deal with these huge increases. Lots of people are new condo owners who have never had to deal with a $8000 special assessment levied because their suppressed strata fees never covered the future large repairs (ie. elevator replacement).
They've also never had to deal with shitty developers who put in sub-par HVAC systems, poor plumbing in the pool area, etc. Sure, your unit has shiny quartz counters and lovely Bosch appliances, but too bad they skimped on the basics in the actual building itself. Of course warranty only covers something that breaks down, not things that are inefficient or prone to failure every 5 years. You think replacing a furnace in a single-family home is expensive? Look at what needs to budgeted in a high-rise tower...