Condo Strata Councils Must Justify User Fees, Says Expert
In a recent inquiry from Kelowna, a strata corporation has come under scrutiny for imposing significant charges on owners for access to their own properties. The council is demanding $100 for replacement keys to common areas and $250 for new parking garage fobs, with additional fees for extra keys and strict limits per unit. This situation highlights a growing issue in condominium management where user fees may overstep legal boundaries.
Legal Limits on Strata Fee Collection
According to Tony Gioventu, executive director of the Condominium Home Owners Association, strata corporations have restricted powers when it comes to collecting funds. Strata fees must be approved through annual budgets, while special levies require a three-quarters vote at general meetings. User fees, such as those for keys or facility access, are permissible but must be reasonable and justified, often requiring owner approval via bylaws or rules.
"User fees are not a cash grab," Gioventu emphasizes. "They can be legitimate but must be justified with clear cost breakdowns for services like janitorial or security." Without proper authorization, councils risk imposing unauthorized fees that could compromise owner rights.
Risks of Unauthorized Fees and Access Denial
The Strata Property Act does not allow strata councils to deny property access as a penalty for unpaid fees, including strata fees or special levies. In the Kelowna case, the council's refusal to provide new keys or fobs without payment first is deemed heavy-handed and potentially illegal. This approach may place families at risk, especially those with working parents and school-age children who need separate access for daily routines.
Gioventu points to Civil Resolution Tribunal decisions where excessive user fees have been dismissed due to lack of justification. For instance, a recent case involving strata plan LMS 4439 rejected a common move-in fee because the costs were not adequately supported. Most moving fees are under $500, but they must be backed by verifiable expenses.
Guidance for Owners Facing Unfair Charges
Owners concerned about user fees should review their strata's bylaws and rules to ensure any charges are properly approved. If fees seem unreasonable, they can challenge them through the tribunal or by raising the issue at general meetings. Gioventu advises that user fees should include detailed cost justifications, such as for repairs or additional security, to avoid being seen as arbitrary or exploitative.
This case serves as a reminder that while strata councils have authority to manage common properties, they must operate within legal frameworks that protect owner rights and ensure fair access to homes.
