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When a major project comes due (the roof needs replacing, the boiler is failing, the building envelope needs work), the council faces a funding choice. Use money already saved (a reserve fund draw)? Collect new money from owners (a special levy)? Or some combination?
The two mechanisms in plain language
Reserve fund draw
A withdrawal from the contingency reserve fund (CRF) to pay for a project. Doesn't increase strata fees in the short term but reduces the balance available for future projects.
Special levy
A one-time additional charge to owners, separate from the regular strata fee, used to fund a specific project. Approved by a three-quarter vote at a general meeting. Each owner pays in proportion to their unit entitlement.
When a reserve fund draw is right
- The project is in the depreciation report and the CRF balance is at or above the projected need
- The project doesn't exceed the CRF's annual draw threshold without exhausting it
- Owners have been contributing for years specifically to fund this category of work
- Avoiding a levy is consistent with the corporation's funding model
When a special levy is right
- The project wasn't anticipated in the depreciation report
- The CRF balance is below the projected project cost
- Owner consent is desirable beyond the corporation's normal authority
- The project is large enough that depleting the CRF would leave the corporation exposed for upcoming work
The hybrid path
Most major projects in BC stratas in 2026 use a combination. Examples: $1.2M envelope project: $700K from CRF, $500K from special levy; $2.5M repipe: $1M loan, $1.5M phased levy over two years; $400K roof: $300K from CRF, $100K levy.
Process: how a special levy actually happens
- Council resolves to recommend the levy. Documented in council minutes.
- Notice for an SGM (or AGM). The notice must include the resolution, the amount, and the method of allocation.
- Owner information session (optional but increasingly standard).
- Vote. Three-quarter vote of eligible voters at the meeting.
- Levy notice. Corporation issues levy notices to each owner with payment instructions.
- Trust account. Levy proceeds go into a separate trust account.
- Project execution. The corporation pays for the project from the levy account.
- Closeout. Any surplus is returned to owners.
Borrowing as an alternative
BC strata corporations can borrow money. Specialty lenders provide multi-year loans at rates 1–3% above prime. Loans convert a one-time levy into manageable monthly payments, are typically 5–20 year terms, and are useful when owner financial capacity varies widely.
For more on the broader financial landscape, see our reserve fund planning guide and construction cost management guide.