Tony Gioventu
Province
Dear Condo Smarts: Our strata of 32 units has a rental bylaw that only permits three rentals. Since the economic slump, we have received five applications from owners claiming hardship due to job loss, financial pressures, relocation and loss of value. We can’t find any resources to help us define hardship or how to assess claims. — Jay W, Prince George
Dear Jay: Hardship is a term created under the Strata Act that potentially permits an exemption to rental bylaws; however, it is not defined by the legislation. It is not defined because what constitutes a hardship for one person, may not be a hardship for another. For example, if owners lose their job, and are unable to pay their strata fees and mortgage because they have no other financial resources, that may be reasonable grounds for hardship. If they lose their job, but have no mortgage and substantial financial assets to support their lifestyle, that may not be a hardship. While the Act leaves little interpretation, it does provide you with tools to process the application. When a person applies for an exemption, there is a short window to respond with as little as two weeks after the application is given. If you miss the dates, the exemption is automatically given.
In decision of Als vs NW1067, a number of precedents were established. A strata corporation is permitted to request copies of the owner’s financial information and information regarding other grounds of the alleged hardship that is necessary to establish whether the claim is credible. A loss of property value itself may not constitute hardship, but other compounding circumstances may.
It is necessary for the strata to collect all relevant information before they can make a decision. Remember, you must not unreasonably refuse. The courts have also quashed a bylaw that elevated the test to “undue” hardship. The Personal Information Protection Act also applies in these circumstances if your strata corporation has collected any personal information from the owner to assess the application.
If you deny the claim, ensure that you have maintained copies of those records in accordance with the Privacy Legislation. You may find yourself in court defending such a claim. The strata is also permitted to limit the period of time of the exemption. The strata may limit the period and request that the exemption be renewed before the period would be extended.
Tony Gioventu is executive director of the Condominium Home Owners’ Association. [email protected].
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