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Strata heat pump rejection reasonable, B.C. tribunal rules

B.C. Civil Resolution Tribunal member said a strata's AGM decision to have an overall plan for heat pumps was reasonable.
heat-pump-install
A technician installs a heat pump at a house in the United States. Two strata owners argued their strata should have anticipated a spike in demand for heat pumps after the 2021 heat dome.

B.C.’s Civil Resolution Tribunal has rejected an attempt by two strata owners to have their building reverse its refusal to allow a rooftop heat pump.

Instead, said tribunal vice-chair Eric Regehr, it was reasonable for the strata to wait until it had an overall heat pump strategy in place.

Kenneth Brown and Elizabeth Dales own a strata lot in a complex that has two sections: one for the strata’s apartment building and another for its townhouses. The pair's strata lot is located in the apartment section.

The dispute was about the apartment section’s rejection of the pair’s request to alter common property by installing a heat pump that includes rooftop components, according to the Oct. 22 decision.

Brown and Dales claimed the refusal was unreasonable and asked for an order that the apartment section grant permission for them to install a heat pump, plus $5,000 in compensation to reflect increased costs since they first requested permission.

A strata bylaw says an owner must request approval from their section to determine if certain criteria are met for common property and strata lot alteration requests.

Brown and Dales did not dispute that the installation of a heat pump on the strata building’s roof required apartment section approval.

However, a bylaw subsection said that the apartment section cannot unreasonably refuse an application to alter a strata lot.

“That same limitation does not exist for common property alterations,” Regehr said.

The apartment section first began considering the implications of heat pumps at its Feb. 10, 2022, executive meeting. It set up a working group to explore new bylaws and options for building cooling systems.

“Section executive meeting minutes from May 2022 show that the working group was leaning towards a building-wide solution rather than heat pumps in individual units,” Regehr wrote.

It was Jan. 5, 2023 when Brown and Dales requested permission to install a heat pump. On Feb. 6, 2023, the apartment section said it was concerned about how to retrofit the building for cooling systems it was not designed to accommodate.

The section said it intended to present a resolution at the next annual general meeting (AGM) to fund a building-wide study that would address the feasibility of heat pumps.

“The apartment section denied (Brown and Dales’) request but invited them to make a new request after the study was complete,” Regehr said.

Strata overall strategy

At the Feb. 22, 2023 AGM, the owners approved a $15,000 expense for a “comprehensive whole building strategy for the future heating and cooling of the building,” and sent out a request for proposals later that year.

“As of February 2024, an engineer was working on the project,” Regehr said. “The apartment section also hired a lawyer to draft a very detailed heat pump bylaw, which created a process for approving individual heat pumps that pierce the building envelope.”

Brown and Dales, however, argued that heat pumps are extremely common in B.C., including in multi-floor buildings, and that their building is relatively new and relatively small.

They argued the section’s approach was overly cautious and contrary to common sense. And, they pointed out, the installers who provided them with quotes would not have done so if the building could not handle heat pumps.

“They also note that none of the quotes contemplated any upgrades to the building’s wiring or building envelope,” Regehr said. “However, I find that the installers would not necessarily consider the cumulative impact of multiple heat pumps when quoting on a single installation.”

Further, Brown and Dales argued the section lacked diligence and foresight by failing to proactively adopt a plan for heat pumps. They said the section should have anticipated a spike in demand for heat pumps after the 2021 heat dome and promptly prepared itself for the resulting alteration applications.

“They do not believe they should have to ‘pay the price’ for this lack of foresight by waiting for a building-wide study,” Regehr said.

Regehr relied on a previous tribunal decision that said that strata’s decision to consider the broader implications of heat pump installations was done in good faith.

Regehr acknowledged Brown and Dales might be right that the heat pump would have little or no impact on the building’s envelope, on noise, or on the building’s electrical load. He said the section’s caution may ultimately have been unwarranted and that other strata corporations have taken a less cautious approach towards heat pumps.

“That does not necessarily make the apartment section’s approach unreasonable or unfair,” he said. “Based on the AGM vote, the apartment section’s approach enjoys broad owner support. As noted, it is also based on rational considerations. I find the evidence shows the apartment section acted in good faith.”