Condo Smarts: Borrow from contingency fund to avoid loan charges
Dear Tony: Every year, our strata corporation insurance renews at exactly the same time as our new budget is approved. As a result, we never have enough money in the our operating fund to pay the bill, so the strata corporation finances the insurance policy over 12 months for easy payment, which is more than $80,000. One of our owners has challenged this practice, claiming we did not disclose the amount of the financing in the budget, and the strata did not get approval for the financing. Have we violated the Strata Property Act? Read the article………..