B.C. Liberal government pushing ahead with strata law amendments despite criticisms

The B.C. Liberal government is pushing ahead with amendments to strata law despite criticisms that it has broken a pre-election promise to consult the public on the legislation.

On October 5, with a 45-32 vote, MLAs belonging to the governing party defeated a motion by the NDP to delay consideration of Bill 8 for six months. The proposal was intended to allow public input. Known as the Strata Property Amendment Act, 2009, the legislation went through second reading on that day.

NDP MLA Diane Thorne (Coquitlam-Maillardville), a former housing critic, noted during the debate that the measure isn’t different from Bill 12, which was filed in the previous legislative assembly by Finance Minister Colin Hansen.

Bill 12 died on the order paper on March 31 this year when the B.C. Liberals shut down the legislature to pave the way for a spring election. On that day, Hansen said on the floor that the government was “committed” to hearing suggestions from the public. “We should go out and invite feedback from organizations rather than pushing this bill through to a conclusion in a rushed manner,” Hansen said at the time.

The Vancouver Island Strata Owners Association has recommendations to improve Bill 8, which is being shepherded by Housing and Social Development Minister Rich Coleman. However, VISOA spokesperson Deryk Norton isn’t sure the B.C. Liberal government will accommodate changes. He bases this on its record of consulting stakeholders in the past.

“Beyond the lack of public input into the development of the bill, particularly from strata owners, I would cite its failure to address the pitifully weak standards for strata-management companies in B.C.,” Norton told the Georgia Straight in a phone interview.

According to VISOA, there are 460,000 strata-titled units in B.C.

Although strata-property managers have had to be licensed by the Real Estate Council of B.C. since January 2006, Norton explained that these administrators aren’t subject to a code of ethics and conduct.

VISOA is also suggesting the establishment of fines and other penalties against developers for misrepresentation in their disclosure statements to property buyers.

This brings Norton to his third area of concern. “The act has no—except for a rare exception about filing a false certificate of strata incorporation—offence and penalty provisions in the legislation to do with any noncompliance,” he pointed out. “If somebody is being run roughshod over by a strata corporation or a strata developer or a strata-management company, it’s left up to the victim to sue the perpetrator under the current act before the civil courts.”

In debates relating to Bill 8, Coleman has stressed that the measure will increase the rental stock in the province. A spokesperson for the Condominium Home Owners’ Association is skeptical about whether or not this will help the housing problem, but he welcomes the changes being introduced by the measure in connection with rental arrangements.

CHOA executive director Tony Gioventu explained that with the proposed law, strata corporations can no longer override any rental designations of properties made by developers. “It does address an unfairness that exists in strata corporations,” Gioventu told the Straight in a phone interview.

The legislation will also allow first purchasers to pass on the ability to rent to subsequent buyers. “Under current regulation, that privilege is passed to the first purchaser only,” Gioventu noted.

Although VISOA believes that Bill 8 needs a lot of work, the association has acknowledged that the measure contains a number of good reforms.

In a position paper, VISOA noted that the legislation provides access to the provincial court to resolve strata disputes. This is a more affordable option than the B.C Supreme Court, which is currently the only venue to resolve legal disagreements between property owners.

The bill also requires strata corporations to keep depreciation reports. This would provide prospective buyers with more information to guide their purchasing decision. In addition, the measure will likewise compel the professional audit of financial statements by the corporation.

Comments

2 Comments

StrataWatch

Oct 9, 2009 at 11:52am

It is about time Strata Owners can take their disputes to Small Claims Court. My guess is that in Five years this will be changed due to the Sunami of Strata Owner Complaints that will be filed in Small Claims Courts. Now if only Strata Owners would understand, their Strata Corporations are operated by their Strata Council not Strata Management Companies.
Bob Harper

Advocate

May 11, 2011 at 10:14pm

Here we are, going on 2 years since this legislation was passed, and strata owners still do not have access to the Provincial Court to resolve disputes.