When a BC Strata Can Spend Without an Owner Vote

Most strata money is spent because owners approved it — in the annual budget, in a contingency reserve fund resolution, or in a special levy. But the Strata Property Act also recognizes that a burst pipe at 2 a.m. cannot wait for a general meeting. Understanding exactly where the line falls is one of the most useful things a self-managed council can learn, because spending outside those limits exposes the council to challenge, and refusing to spend inside them can turn a small leak into a large claim.

The default rule: owners approve the spending

Three approval routes cover almost all strata expenditures:

• The budget. Owners approve the operating budget by majority vote at a general meeting, and that budget sets strata fees for the year. See our guide on how to prepare a strata annual budget in BC.
• The contingency reserve fund (CRF). Under s.96, CRF spending needs a majority vote in five specific cases — obtaining a depreciation report under s.94; repair, maintenance or replacement recommended in the most current depreciation report of common property, common assets or portions of a strata lot the strata has taken responsibility for under s.72(3); installing EV charging infrastructure or managing the electricity it uses; obtaining an electrical planning report under s.94.1; and obtaining other reports about EV charging infrastructure. Any other CRF expenditure needs a 3/4 vote. More detail in our CRF guide.
• A special levy. Approved by 3/4 vote where each lot's share is calculated under ss.99, 100 or 195 (normally unit entitlement); if the strata divides the levy in another way that establishes a fair division for that particular levy, s.108(2)(b) requires a unanimous vote.

Remember that a "3/4 vote" means 3/4 of the votes cast by eligible voters present in person or by proxy, excluding abstentions — not 3/4 of all owners (s.1).

The two exceptions in section 98

Section 98 governs unapproved expenditure — money spent that was never put forward in the budget or at a general meeting. There are exactly two doors.

1. The small-expenditure allowance (operating fund only). The expenditure may come out of the operating fund if it, together with all other unapproved expenditures in the same fiscal year, is:

• less than the amount set out in the bylaws, or
• if the bylaws are silent, less than $2,000 or 5% of the total contribution to the operating fund for the current year, whichever is less.

This is a cumulative annual ceiling, not a per-invoice one. A bylaw setting the amount may also add further conditions or limits (s.98(4)) — so your strata's own registered bylaws are the first place to look before assuming the statutory default applies.

2. The safety and significant-loss exception (either fund). Under s.98(3), money may be spent from the operating fund or the CRF where there are reasonable grounds to believe an immediate expenditure is necessary to ensure safety or prevent significant loss or damage, whether physical or otherwise. Section 98(3.1) confirms that preventing significant loss includes obtaining and maintaining insurance required under s.149 or s.150 or the bylaws. Two limits attach: the spending must not exceed the minimum needed (s.98(5)), and the strata must inform owners as soon as feasible (s.98(6)).

Questions councils actually ask

Does a council member need council approval before spending in an emergency?
Standard Bylaw 21 provides that a person may not spend the strata's money unless delegated the power to do so under the bylaws, but a council member may spend it to repair or replace common property or common assets where the repair is immediately required to ensure safety or prevent significant loss or damage (Schedule of Standard Bylaws). If your strata has replaced or amended bylaw 21, your own registered version controls.

Is a roof replacement an emergency because it is leaking?
It depends on the facts. A tarp and an emergency patch to stop active water ingress is a plausible s.98(3) expenditure; a planned full replacement generally is not, and should go to owners as a CRF resolution or special levy. The duty to repair and maintain common property under s.72 and Standard Bylaw 8 does not by itself authorize unbudgeted spending.

What about the insurance deductible?
Under s.158(3), strata corporation approval is not required for a special levy or a CRF expenditure to cover an insurance deductible the strata must pay to repair or replace damaged property — unless the strata has decided not to repair or replace under s.159. That is a genuine exception to the usual 3/4-vote rule for levies.

One more timing trap

Where a resolution requiring a 3/4 vote passes but is supported by persons holding less than 50% of the strata's votes, s.51 bars the strata from acting on it for one week — and longer if holders of at least 25% of the votes demand a reconsideration meeting. The exception, again, is reasonable grounds to believe immediate action is necessary to ensure safety or prevent significant loss or damage.

Document the decision, not just the invoice

For any spending outside the budget, minute the reasoning: what the risk was, why it could not wait, what the least-cost option was, and when owners were told. Those minutes are strata records the corporation must prepare and retain (s.35), and they are what a skeptical owner — or the CRT — will read later. Tools like ManageStrata help councils tie an expenditure to the resolution or bylaw that authorized it, and SearchStrata can run AI analysis across your bylaws, minutes and financials when you need to find your strata's actual spending-limit bylaw fast. Where fees and shares are in question, our explainer on how strata fees work in BC is a useful companion.

This article is general information about BC strata law, not legal advice; verify against the current Strata Property Act and Regulation or consult a BC strata lawyer.