Strata Plan VIS 1122 in Nanaimo discovered a maintenance issue where the exterior common property paint was peeling due to improper application by a contractor hired 6 years ago. The original contractor is no longer in business. The cost to repaint the affected areas is $45,000. The strata corporation has an annual operating budget of $120,000 and a CRF of $150,000. What is the most appropriate financial strategy for the strata council to address this unforeseen maintenance cost?

Question: Strata Plan VIS 1122 in Nanaimo discovered a maintenance issue where the exterior common property paint was peeling due to improper application by a contractor hired 6 years ago. The original contractor is no longer in business. The cost to repaint the affected areas is $45,000. The strata corporation has an annual operating budget of $120,000 and a CRF of $150,000. What is the most appropriate financial strategy for the strata council to address this unforeseen maintenance cost?

Answer options:

• Amend the current year's operating budget at the next general meeting to include the $45,000. ✅ Fund the entire $45,000 from the contingency reserve fund (CRF) after obtaining a 3/4 vote of owners.
• Raise a special levy for $45,000 as this is related to a past defect.
• Use current operating funds, even if it means exceeding the budget for the year.

Correct answer: Fund the entire $45,000 from the contingency reserve fund (CRF) after obtaining a 3/4 vote of owners.

Explanation: Funding a significant unforeseen maintenance expense that is not part of the annual operating budget from the Contingency Reserve Fund (CRF) requires a 3/4 vote of owners, as per Section 96 of the Strata Property Act. This is the correct procedure for capital or major repair expenses not budgeted for.