Overseeing a special levy repair project, from vote to final payment

Last reviewed November 13, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.

What section 108 requires once the levy passes

The levy resolution itself must set out the purpose, the total amount, the method used to divide it, each lot's share, and the payment dates (section 108(3)). Once money starts arriving, section 108(4) requires the strata to:

1. Account for it separately from all other strata money. A separate bank account is the clearest way.
2. Invest it only in investments permitted by the Regulation or insured accounts with BC savings institutions.
3. Use it only for the purpose in the resolution. A levy for the roof cannot pay for the lobby, even if the roof comes in under budget.
4. Inform owners about how it was spent.

Interest earned on the levy money is part of the levy (section 108(7)), so it follows the same rules.

Before work starts: the team and the contract

• An independent consultant. For building envelope, roofing, structural, mechanical or electrical work, most stratas hire an engineer or building envelope consultant to prepare specifications, tender the work, review progress and certify completion. Their fee is a normal part of the levy budget.
• Competitive tendering. Get comparable bids on the same specification. See hiring contractors.
• A written contract with a fixed price or a clear pricing basis, a schedule, insurance and WorkSafeBC requirements, warranty terms and a change-order clause.
• A single council contact, with a clear limit on what that person can approve alone. Standard Bylaw 20 lets council delegate spending only by resolution, with a maximum amount and stated purposes.
• A contingency inside the levy. A levy resolution that includes a reasonable contingency avoids going back to owners for small overruns.

During the work: change orders and reporting

Change orders are where levy projects go off track. Set the rules before they arise:

• Every change order is written, priced and reviewed by the consultant before approval.
• Council approves change orders by resolution in the minutes, or under a delegated limit recorded in the minutes.
• Track spending against the levy budget in a simple running table that the treasurer updates monthly.

Report to owners regularly, for example with each set of council minutes or a monthly update. Section 108(4)(d) requires owners to be informed about the expenditure, and regular reporting is far easier than a single reckoning at the end.

If the project will cost more than the levy, council cannot simply find the money. Options are a further special levy (3/4 vote), spending from the contingency reserve fund (majority vote if the work was recommended in the current depreciation report, otherwise 3/4, section 96), or using the operating fund within the unapproved-expenditure limit in section 98. Emergency spending under section 98(3) is only for immediate safety or significant loss.

Verifying completion and final payment

• Completion inspection. The consultant inspects and issues a certificate of substantial or total completion, with a deficiency list.
• Deficiencies. Hold back enough money to cover the deficiency list until it is cleared.
• Builders lien holdback. Under BC's Builders Lien Act, the payer on a contract generally must retain a holdback, commonly 10%, until the lien period after completion expires. Confirm the exact amount and timing with your consultant or lawyer before releasing the final payment.
• Warranties and as-built documents. Collect warranties, product data, as-built drawings and maintenance instructions.
• Records. Engineers' and consultants' reports on major items must be kept until the items are disposed of or replaced (section 35(2)(n.2), Regulation 4.1(2.1)). Contracts must be kept for 6 years after they end (Regulation 4.1(4)). Update the depreciation report data with the new component.

Closing out the levy and refunding the surplus

1. Final accounting. The treasurer prepares a statement of money collected, interest earned and money spent, and circulates it to owners.
2. Surplus. If money is left, section 108(5) requires it to be paid to the owners in proportion to what each lot contributed.
3. Small surplus. If no owner would receive more than $100 in total, the strata may deposit the surplus in the contingency reserve fund instead (section 108(6)).
4. Unpaid shares. Owners who did not pay their share remain liable. Interest on late levy payments can apply if a bylaw or the levy resolution set a rate, up to the Regulation's maximum.
5. Record it. The council minutes should record the final accounting and the refund or CRF transfer decision.

Questions councils and owners ask

Can special levy money be used for something else?

No. Section 108(4)(c) requires it to be used for the purpose set out in the resolution. A new purpose needs a new owner vote.

What happens to unused special levy money in BC?

It must be refunded to owners in proportion to their contributions, unless no owner would receive more than $100, in which case it may go to the contingency reserve fund (section 108(5), (6)).

Does a special levy need its own bank account?

The Act requires the money to be accounted for separately. A separate account is the simplest and clearest way to do that.

Who verifies that levy-funded repairs were done properly?

Usually an independent engineer or consultant hired by the strata, who reviews the work during construction and certifies completion.

What if the project costs more than the levy?

Council needs further owner approval: another levy, or contingency reserve fund spending approved under section 96, unless the amount fits within the section 98 unapproved spending limit.

This page is general information for BC strata corporations, not legal advice. Your strata's own filed bylaws may differ from the Standard Bylaws. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.

Related guides

Special Levies
Hiring Contractors
Reserve Fund Spending Rules
Council Spending Limits
Depreciation Reports
Records Retention