SOLUTIONS
When a depreciation report shows the contingency reserve fund can’t cover the work ahead, a strata corporation usually has three options: a special levy, increasing strata fees to save and complete in the future, or putting the repair off entirely. Condominium Lending Group adds a fourth. We lend to the strata corporation so the work can be completed, and the loan is repaid through strata fees over time.
For illustration, a 100-lot strata facing a $1,000,000 re-roofing project would need to raise an average of $10,000 per unit through a special levy, with each unit’s actual share set by unit entitlement. With corporation-level financing, that cost can be repaid through strata fees over a set term instead of up front with one lump sum through a levy. Specific terms depend on the situation, and a BC Strata Property Act specialized account manager works with council to set them out in a financing summary before asking the owners to vote on the work and funding mechanism.
THE PROBLEM
Since July 1, 2024, a depreciation report has been mandatory for strata corporations with five or more strata lots, updated every five years, and corporations can no longer defer one with a 3/4 vote. Existing stratas in Metro Vancouver, the Fraser Valley and the Capital Regional District needed a current report by July 1, 2026. Stratas in the rest of the province have until July 1, 2027.
A current report often shows the contingency reserve fund is short of what the building needs: envelope and rainscreen work, roofing, piping, elevators, parkades. A special levy lands on every owner at once, and putting the work off usually makes it more expensive. Our BC depreciation report guide explains what the report covers and what changed in 2024.
THE FINANCING OPTION
Condominium Lending Group lends directly to the strata corporation. The strata uses the funds to complete the repair, and repays the loan over time through strata fees. Because the corporation is the borrower, the financing does not interfere with personal borrowing or individual-level mortgage arrangements.
The corporation can also combine sources: use what’s in the contingency reserve fund first, then finance the rest. Council can compare the financing option with a special levy or a fee increase so owners can understand the monthly cost of each. See how this works for reserve fund financing across Canada.
THE STRATA PROPERTY ACT
Borrowing, raising a special levy and spending the contingency reserve fund each have their own approval rule under the BC Strata Property Act. When council funds one project from more than one source, each piece needs its own approval.
| Decision | Vote needed at an annual or special general meeting |
|---|---|
| Borrow money (s. 111) | 3/4 vote |
| Raise a special levy (s. 108) | 3/4 vote (unanimous if the levy is shared out some other way) |
| Spend the contingency reserve fund on work recommended in the most current depreciation report (s. 96) | Majority vote |
| Spend the contingency reserve fund on other work (s. 96) | 3/4 vote |
The contingency reserve fund step has the lowest bar: work your current depreciation report recommends needs only a majority vote. Section 111 also sets out how a strata can secure a loan, for example by assigning its unpaid strata fees or special levies. Owners don’t pledge their own strata lots.
Loan and levy resolutions are legal documents, so have the strata’s lawyer prepare or review the wording before the meeting.
Source: Strata Property Act, Part 6, sections 96, 108 and 111 (BC Laws, checked September 2026). General information, not legal advice.
HOW IT WORKS
Most strata councils receive an initial response within one business day. The full timeline depends on the project, the documents available and when council can hold the owner vote.
Send a short summary of the building, what the depreciation report shows, the project and the timeline council is working with.
We review the depreciation report, recent financial statements, the current budget and the project details, then give council a preliminary view of what financing may look like.
We work with council and the strata manager to prepare the written package that is sent to owners. Typically, an information meeting / town hall is held to share information on the project and funding models, and to answer questions. Once these steps have been taken, formal resolutions are presented to the owners for voting at a special or annual general meeting.
Once owners approve the resolution and the loan documents are signed, funds are advanced to the strata corporation. While there are different ways to structure the payment, typically repayment runs through strata fees.
WHO WE WORK WITH
We lend to registered strata corporations, where the funding need belongs to the building rather than to individual owners taking out personal loans.
Our Western Canada work is led by Kelly McFadyen, Director of Strata & Condominium Finance. Kelly currently serves on the CCI Vancouver board, was previously a board member of PAMA, and regularly speaks at educational events including various CCI chapters, BUILDEX Vancouver and PAMA on financing large capital projects for strata corporations. Condominium Lending Group is listed in the CHOA, VISOA and PAMA member directories as well as various local CCI chapters.
Councils whose first or updated depreciation report shows the contingency reserve fund can’t cover the work coming up.
Older buildings where major common property such as the roof, piping or elevators are reaching the end of their expected life around the same time.
Repairs that can’t wait for the contingency reserve fund to catch up. Financing lets the work go ahead now while repayment is spread over time.
Strata managers who want a financing option to put in front of council alongside a special levy.
Yes. Under section 111 of the Strata Property Act, a strata corporation can borrow the money it needs after owners approve it by a 3/4 vote at an annual or special general meeting. The loan is to the corporation, not to individual owners.
It can replace a levy or make it smaller. Council can also draw on the contingency reserve fund first and finance the rest.
Yes. Spending the contingency reserve fund on work recommended in your most current depreciation report needs a majority vote under section 96. The loan needs its own 3/4 vote under section 111.
No. The strata corporation is the borrower, so there are no personal guarantees or personal credit checks on individual owners, and no security is taken against unit titles.
Send us what the report shows and the project you’re facing, and we’ll explain how financing compares with a special levy or higher strata fees. Our BC depreciation report guide covers the rules and deadlines.
Yes. We work with strata corporations across British Columbia, and with condominium corporations across Canada: Ontario, Alberta, Saskatchewan, Manitoba and Nova Scotia.
GET STARTED
Tell us what your depreciation report shows, what the project may cost and when council needs to decide. We’ll explain what financing could look like before council takes it to owners.
