Cooperation, Civility, and Compromise

Condominiums mean many things to different people. They may be an investment in your portfolio, trusted clients of yours, or they may be the place you call home. For everyone though, condominiums are shared communities where success is dependent on cooperation, civility, and compromise.

Between December of 2019 and August of 2020, the Office of the Auditor General of Ontario audited the performance of the regulatory and administrative bodies overseeing the Ontario condominium industry, being the Condominium Management Regulatory Authority of Ontario (CMRAO), the Condominium Authority of Ontario (CAO), and the Ministry of Government and Consumer Services (Ministry). The results of the audit were described in a final report that was released in December of 2020. The December 2020 report did not paint a pleasant picture of the Ontario condominium industry. It was provided that many of the regulatory measures in place at the time of the audit were ineffective and that many changes needed to occur to better protect condominium stakeholders.

The December 2020 report described the prevalence of serious issues in the condominium industry, such as:

• insufficient reserve fund budgeting;

• the prevalence of unlicensed condominium management service providers;

• a lack of action taken by the CMRAO on complaints;

• inadequate training for condominium directors; and

• inadequate dispute resolution processes.

To address the issues that were found during the December of 2019 and August of 2020 audit and to bring about positive change in the condominium industry, the Auditor General’s Office made several recommendations for the CMRAO, CAO, and the Ministry to implement. Those recommendations included expanding the information the CAO collects, making more data available for the public to view, increasing the jurisdiction of the Condominium Authority Tribunal (CAT), extending the length of time reserve fund studies must address, enhancing the director training program, increasing the possible penalties for breaching the Condominium Act, and setting performance related goals for the CMRAO, among other recommendations. It was clear that the overall goal of the Auditor General’s Office was to facilitate the enactment of stronger consumer protection measures in the Ontario condominium industry.

Recently, the Auditor General’s Office released a follow up report to its initial audit. The follow up report describes the progress that the administrative bodies have made in implementing the recommendations from the December 2020 report as of November 4, 2022. It was found that 41% of the recommendations made in the December 2020 report have been implemented thus far. Among the many recommendations acted on, the CAO’s mandate has been reviewed and clarified, information is now available on unlicensed condominium management providers, the CMRAO’s procedure for addressing complaints has been revised, and the director training program has been enhanced. Alongside the already implemented recommendations, the expansion of the CAT’s jurisdiction is being further explored with a formal proposal to be presented on that matter in 2023. On another note, the follow up report states that, disappointingly, steps have not been taken to ensure reserve funds receive sufficient attention and stronger penalties have not been implemented for breaching the Condominium Act.

While not all of recommendations made by the Auditor General’s Office have been fully implemented, bringing about change requires time and effort, and with each continuing day the condominium industry continues to grow in a direction that is beneficial for all stakeholders.

Link to 2020 Report: https://www.auditor. on.ca/en/content/annualreports/arreports/ en20/20VFM_10condominium.pdf

Link to 2022 Report: https://www.auditor. on.ca/en/content/annualreports/arreports/ en22/1-10condominium_en22.pdf

Brian Horlick B. Comm, BCL, L.L.B., ACCI, FCCI

Whiterose

Fully insured & bonded, Whiterose is a member of the Canadian Condominium Institute (CCI) and the Association of Condominium Managers of Ontario.

Key Services include:

• Floor cleaning & refurbishing

• Carpet installation & cleaning

• Window & wall cleaning

• Live-in/-out superintendent duties

• Contract cleaning services

• Garage cleaning services

• Floor cleaning & refurbishing

• 24-hour emergency services

• Marble polishing

• Live-in/-out superintendent duties

• Carpet installation & cleaning

• Interior & exterior painting

• Construction cleaning

• Contract cleaning services

• Window & wall cleaning

• Vent & duct cleaning

• 24-hour emergency services

• Interior & exterior painting

• Vent & duct cleaning

• Garage cleaning services

• Marble polishing

• Construction cleaning