The general decay of the building (even a single building), if not maintained over time, not only erodes asset value of those units within the Community Scheme, but also the properties surrounding it.
In some cases, the non-payment of levies is more severe and not even necessity-items such as basic utilities can be paid. In this scenario, where utilities have been disconnected and in the absence of individual water and electricity metres, even the paying unit owners suffer the consequences of the non-payment of levies.
It is essential to note that the BC Funding Solutions’ lending model offers the Community Scheme a debt rehabilitation option for their non-paying owners. In the absence of the funding from BC Funding Solutions, the Community Scheme would be forced, in terms of the applicable legislation and / or contractual provisions, as well as to avoid prejudice to the paying owners, to immediately institute legal action against the non-paying owners. This immediately adds large legal fees to the existing levy debt.
If unresolved, legal action could lead to the unit owners losing their homes. The provision of the loan stabilises the Community Scheme’s cash flow and enables it to offer their levy debtors time to repay their debt without legal action or costs. The debtor-rehabilitation opportunity is often the difference between the unit owners keeping or losing their home.