A Strata Corporation in Victoria, BC, is considering a major roof replacement project estimated at $350,000. Their current Contingency Reserve Fund (CRF) has $120,000. Property Manager, Sarah, needs to advise the Strata Council on funding this project if they proceed. What is the most appropriate action for the Strata Council to take regarding the funding shortfall?

Question: A Strata Corporation in Victoria, BC, is considering a major roof replacement project estimated at $350,000. Their current Contingency Reserve Fund (CRF) has $120,000. Property Manager, Sarah, needs to advise the Strata Council on funding this project if they proceed. What is the most appropriate action for the Strata Council to take regarding the funding shortfall?

Answer options:

• Use operational funds to cover the difference ✅ Levy a special assessment (special levy) on all owners
• Borrow the amount from a commercial bank without owner approval
• Increase the monthly strata fees indefinitely until the amount is collected

Correct answer: Levy a special assessment (special levy) on all owners

Explanation: For significant capital expenditures not adequately covered by the Contingency Reserve Fund, the Strata Property Act in BC allows a strata corporation to raise funds by levying a special assessment (special levy) on owners, requiring a 3/4 vote at a general meeting.