A commercial unit owner in a mixed-use strata development in Vancouver has raised concerns about a confusing bylaw amendment that changed the voting threshold for commercial property owners to a two-thirds majority vote. The owner, identified as Kyle D., wrote to Tony Gioventu of the Condominium Home Owners Association seeking clarification.
Understanding the Voting Threshold Issue
Kyle explained that when the development was created, the developer filed a series of bylaws that have been helpful for operations over the past eight years. However, one amendment changed the voting threshold for all decisions of commercial property owners to a two-thirds majority vote. This has led to confusion about whether this bylaw overrides certain parts of the Strata Property Act that require three-quarters votes or majority votes.
What Does 'Majority' Mean?
The term 'majority' is not defined in the bylaw, leading to disputes. At a recent annual meeting, a 45-minute argument erupted over how votes should be calculated. Kyle questions whether the two-thirds majority bylaw applies to all decisions or only specific ones.
Tony Gioventu's Response
Gioventu explains that the Strata Property Act allows for amending voting thresholds for non-residential owners in mixed-use strata. For bylaw amendments that apply to the entire strata corporation, a three-quarters vote of both residential and commercial units separately is required. However, there is a provision that allows commercial units to pass resolutions by a three-quarters vote or as otherwise provided in their bylaws, but this applies only to bylaw amendments.
Limitations of Commercial Bylaws
Commercial section bylaws cannot change voting requirements for:
- Majority votes for budgets or approval of rules
- Three-quarters votes for special levies or changes in property designations
- 80 percent votes for winding up the strata
- Unanimous votes for changes to the strata plan or unit entitlement
A two-thirds majority vote is not defined in the Act. The terms 'majority' and 'three-quarters vote' refer to votes where more than 50 percent or 75 percent of votes cast are in favor, excluding abstentions. The chairperson must have a copy of the voting rights schedule for mixed-use strata, as commercial units may have different fractional votes based on unit size.
Recommendation
Gioventu advises the strata corporation to consult a lawyer experienced with mixed-use strata and propose a bylaw amendment to clarify voting thresholds and their necessity. This will eliminate confusion for all owners.
