Strata councils play a vital role in the management and governance of strata properties in British Columbia.
These elected bodies act as the executive arm of strata corporations, making crucial decisions that affect the daily operations and long-term planning of their communities.
With over 1.5 million people living in stratas in B.C., understanding the function and responsibilities of strata councils is essential for both property owners and potential council members. Let’s dive in!
Table of Contents
Why do Strata Councils exist?
What Roles & Responsibilities Exist on Strata Councils?
How does the council interact with managers and property owners?
Do Council Members Get Compensated?
How is Removal or Changes in Council Members Handled?
Being an Effective Strata Council Member with Tech
Final Thoughts
Why do Strata Councils exist?
Strata councils exist to represent the interests of property owners and ensure the smooth operation of strata corporations.
Their primary purpose is to exercise the powers and perform the duties of the strata corporation, including enforcing bylaws and rules. The Strata Property Act in British Columbia provides the legal framework for strata councils, outlining their responsibilities and limitations.
The Act is comprehensive, containing extensive regulations and over 26 forms that cover key matters such as strata fees, records, contracts, work orders, budgets, voting, meetings, and the obligations of council members.
This legislative structure ensures consistency in the way each strata operates across the province.
How are members elected?
Strata council members are typically elected annually at the Annual General Meeting (AGM) of the strata corporation.
The election process is governed by the strata’s bylaws, which also determine the number of council members.
Under the Standard Bylaws, which can be amended, a council must consist of three to seven members, unless there are fewer than four lots or owners in the strata.
It’s important to note that there are certain restrictions on who can serve on the council:
- Owners whose strata lots can be liened for money owing to the strata corporation may be ineligible if a bylaw supports this restriction.
- Generally, only one owner per strata lot can serve on the council, except in very small stratas where all owners are required to be council members.
What Roles & Responsibilities Exist on Strata Councils?
Strata council members have a wide range of responsibilities that are crucial for the effective management of the strata corporation. These include:
- Financial Management: Preparing budgets, financial statements, and directing investments and expenditures.
- Maintenance and Repairs: Approving maintenance proposals and overseeing repairs to common property.
- Bylaw Enforcement: Enforcing the strata’s bylaws and rules.
- Meeting Management: Calling and conducting general meetings, including AGMs and Special General Meetings (SGMs).
- Record Keeping: Maintaining a list of owners and tenants, as well as other important documents.
- Insurance: Ensuring the strata corporation has adequate insurance coverage.
- Contractor Management: Hiring and supervising employees and vendors for various services.
Council members are expected to act honestly and in good faith, with the best interests of the strata corporation in mind. They must exercise the care, diligence, and skill of a reasonably prudent person in comparable circumstances.
Recommended Reading: Strata vs Condo – What’s the Differences?
How does the council interact with managers and property owners?
Strata councils often work closely with condo management companies or licensed strata managers to facilitate decision-making and gain valuable advice.
However, it’s important to note that the strata council remains ultimately responsible for making decisions and providing direction.
Strata managers play a crucial role in supporting the council by:
- Preparing for and conducting council meetings;
- Providing recommendations on quotes or projects;
- Implementing council decisions;
- Overseeing employees and vendors;
- Managing financial matters;
- Facilitating communication between council members and residents.
The relationship between the strata council and property owners is one of representation and accountability.
Councils must operate transparently, providing regular reports to owners and ensuring that their actions align with the best interests of the strata corporation.
Recommended Reading: Strata management – what is it anyways?
Do Council Members Get Compensated?
Generally, strata council members serve on a volunteer basis and are not compensated for their roles. This practice aligns with the principle that council members are owners themselves, working for the collective benefit of the strata community.
However, in some cases, strata corporations may choose to provide modest compensation or reimbursement for expenses incurred in the course of council duties, such as travel costs for attending meetings or training sessions.
Compensation, if any, must be approved
It’s important to note that any form of compensation for council members must be approved by the owners through a resolution passed at a general meeting. This ensures transparency and prevents potential conflicts of interest.
Strata corporations considering compensation should carefully review their bylaws and consult legal advice to ensure compliance with the Strata Property Act.
Recommended Reading: Can our strata get a loan instead of a special assessment from owners?
How is Removal or Changes in Council Members Handled?
The Strata Property Act and individual strata bylaws provide mechanisms for removing council members or handling changes in council composition:
1. Removal of a Council Member
A strata council member can be removed, with or without cause, by a majority vote of the owners at a general meeting. If a council member is removed, the owners must elect a replacement at the same meeting.
2. Voluntary Stepping Down
If a council member is unwilling or unable to perform their duties for two months or longer, they can be replaced by a new member appointed by the existing council members.
3. Growing the Council
The size of the council can be changed through an amendment to the strata’s bylaws, which requires a 3/4 vote at a general meeting. If the bylaws allow for a range in the number of council members (e.g., 3-7), the owners can decide on the specific number within that range at each AGM.
4. Handling Vacancies
If a council position becomes vacant between AGMs, the remaining council members may appoint a replacement to serve until the next AGM.
It’s worth noting that a petition to remove a strata council member requires support from 25% of the owners under the Standard Bylaws, unless the bylaws have been amended to specify a different threshold.
Other strata-related resources
For those seeking additional information on strata living and management in British Columbia, the following resources may be helpful:
- BC Government Strata Housing Website: Offers comprehensive guides and information on strata living.
- Condominium Home Owners Association of BC (CHOA): Provides education and resources for strata owners and councils.
- Civil Resolution Tribunal: Handles strata property disputes in BC.
- Real Estate Council of BC: Offers information on strata management licensing and regulations.
- Eli Report Blog: Provides insights and articles on various aspects of strata management and financial planning.
Being an Effective Strata Council Member with Tech
In today’s digital age, technology plays a crucial role in enhancing the effectiveness of strata council members and property managers. Eli Report offers an innovative solution to streamline condo document review and provide valuable insights for strata management.
The Annual Benchmark Report, provided by Eli Report, is a powerful tool that allows strata councils to compare their financial and operational performance with similar buildings in BC. This report offers:
- Line-by-line budget comparisons;
- Insurance premium and deductible benchmarks;
- Projections for upcoming special levies;
- Calculation of ‘overall reserve adequacy;
- Recommendations for Contingency Reserve Fund (CRF) contributions.
By leveraging this technology, strata council members can make more informed decisions, identify potential cost savings, and ensure their strata corporation is on a solid financial footing for the future.
Recommended Reading: Why You Need Condo Document Review Software
Final Thoughts
Serving on a strata council is a significant responsibility that requires dedication, knowledge, and a commitment to the community’s well-being.
By understanding the roles, responsibilities, and the tools available to them, you can now effectively navigate the complexities of strata management and contribute to the long-term success of your community.
Take the first step towards more effective strata management today by exploring how Eli Report can support your council’s decision-making process and long-term planning efforts. Try it free today!