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Over forty years of helping our clients with all aspects of condominium law including:
• Advising Boards of Directors
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OUR CONDOMINIU M LAWYER S
Maria Durdan, ACCI
Cameron Neil
Bilal Mirza
Christopher Dilts
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Asad Hashim
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Carole Booth Paola Beci Gjata
Jeremy Nixon Colin Ogg
Dave Williams
Tim Van Zwol
Jonathan Miller
Patrick Greco Board Liaison
Luka Milidragovic
Condo News
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Articles of interest to condominium owners and directors are welcome. See details for submissions on page 50.
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Golden Horseshoe Chapter of the Canadian Condominium Institute
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From the President FROM THE PRESIDENT
Richard Elia, B.Comm., LL.B., LL.M.(ADR), ACCI GHC-CCI President
Fall is an interesting time. In nature, leaves on trees change colour and fall (suggesting that we either collect or mulch them). Boards and Managers of condominium communities begin getting nervous about all the tasks that must be completed before freezing begins. Winter is coming – and so much around us just seems to start getting ready to go into hibernation.
Not so for CCI-GHC! Here, summer was for planning the work. Fall is for working the plan.
I’m going to start off by saying “What a Fabulous Conference!!” and offering special thanks to the Conference Committee Members – led by Will Mackay and Natalie Park. The conference really underscores the value of membership. Not only was there a lot to learn from the various formal sessions, but the idea that you can simply walk around and talk with anyone – i.e. networking – can be invaluable whether you are an owner, board member, manager, professional, etc… I don’t believe that it is possible to embrace the conference and not take home at least one (likely several) nuggets of knowledge.
The theme for the conference – “Back to Grassroots: Growing The Future In Condominium Living” – is right on point for CCI-GHC and the greater condominium community. At first blush, it might sound a bit like a contradiction - but is it really? We all want be in the know - to be “cutting edge.” Absolutely, lets explore and embrace options for tomorrow. However, can we afford to ignore the historical lessons learned in getting to where we are?
To quote Stephen Breyer – retired U.S. Supreme Court Justice - “Stare decisis thereby avoids the instability and unfairness that accompany disruption of settled legal expectations. For this reason, the rule of law demands that adhering to our prior case law be the norm. Departure from precedent is exceptional and requires special justification…if you change the law too often, even when it was wrong before, people cannot live their lives. They can’t plan how to live; they can’t plan their societies.”
Condominium corporations were introduced in Ontario in 1967 – 57 years ago. That is 57 years of learning. Some things have worked, others haven’t. However, more and more, I’m having a hard time reconciling court and tribunal decisions of today with those that have come before them. Worse, there seems at times to be a lack of appreciation of what went into yesterday’s decisions.
We have 57 years of history to draw on in finding the way forward. Yes, we have to evolve, be cutting edge, embrace change, but we can’t do it on a whim or we risk disrupting how people live and plan their lives.
Golden Horseshoe Chapter of the Canadian Condominium Institute
Alicia Gatto, CPA, CA, LPA (Chair Finance Committee)
SECRETARY
Michelle Joy, BA, RCM, OLCM
BOARD OF DIRECTORS
Maria Durdan, B.A., LL.B., ACCI
(Member Education Committee, Member Finance Committee, Member Ron Danks Award Committee)
JJ Foulds, BA, OLCM, RCM
Tom Gallinger, BBA, FCIP
Patrick Greco, B.A.Sc., LL.B. (Chair Policy & Governance Committee, Member of the Communications Committee)
Thomas F. Nederpel, B.Sc., PEng (Chair External Relations Committee)
Kevin Shaw, B.Tech (Arch. Sc) (Board Liaison Professional & Business Partners’ Committee)
Denis Theriault
Golden Horseshoe Professional & Business Partners Directory
When your condominium corporation needs someone, we encourage you to look to this directory for goods & services providers that are dedicated to the condo industry. These are the businesses that support our chapter... Let’s do our best to return the support!
The directory can be accessed online where you will find llinks to the various directory categories. Click on a category and go directly to that section.
Dave Williams
A Chat with Eric Plant, President of ACMO
Eric Plant is the current President of the “Association of Condominium Managers of Ontario” and a Director of Brilliant Property Management in Toronto. Eric’s work with ACMO involves the development of advanced training courses for Property Managers. The following interview is the next in a series, featuring principals from different sectors of the Condo industry.
D.W. If you were to write a brief “next” 5 year “Vision Statement” for the Condo Industry, what would it look like?
EP. First and foremost, we would like to see our managers being able to operate in safe work environments, with reasonably sized portfolios, and welltrained boards of directors. We would also like to see each manager have sufficient education and experience to do the job well and to be seen as a trusted professional by their respective boards. Finally, we would like to continue to see salaries for our managers increase to reflect the skill and experience that each possesses.
DW. The industry has many challenges currently; including shortage of property managers, possibly skill sets of property managers (given more complex issues to deal with), need for better industry communications generally, need for condo board directors to have better all-round experience, underfunded Reserve funds and in some cases fees.
The current industry players. ACMO, CCI, CMRAO and CAO will play an important role in making improvements in the next five years. How do you see marshalling these various groups to organize and cooperate in terms of the needed changes?
EP. ACMO’s position has always been to provide education to the condominium managers. Since licensing, we have shifted to more advanced education for those who really want to hone their skills, and we offer this free to every member. Education will of course play a large role in improving the industry, but several other factors – size of portfolio for one, must improve, and for this we need more people in the industry. Rising salaries will help, but it will take time to educate many of these new entries.
ACMO currently has an agreement with CCI-Toronto and works closely with them on the Condo Conference as well as other initiatives. We are also in regular communication with the CMRAO and have ties with several MPPs. While
each organization has its own mandate, all of us share a desire to see improvement through collaboration in our industry.
DW. Do you think the average condo corporation understands the need to fund the reserve appropriately to meet the challenges inherent in building (asset) deterioration over time? Also, are you comfortable that the average condo manager can “coach” their boards in terms of good reserve management?
EP. I believe that most boards do understand. The last four years have seen a substantial increase in the construction price index (upwards of 100% in Toronto and over 80% in much of the rest of the province, according to Statistics Canada). This “sticker shock” can be difficult to work through, especially when a condominium that has been keeping up with its Reserve funding is, suddenly, well behind on savings due to inflation alone.
DW. A blend of reasonable assessments and supportive funding of the reserve could be a solution to modern condo financial management. It could be said that residents should be a part of deciding about this process and not something done by the board in isolation. What would be the ACMO position on this?
EP. Legislation in the Condo industry does mandate transparency when it comes to the community’s finances. A good board and management company will go well above and beyond the required minimum and will strive to be as transparent as possible. While residents do not typically get involved at a granular level (we sometimes don’t even
get candidates for the board!) owner’s meetings and regular communication is often enough to lower owner anxiety about how the building’s finances are being handled.
DW. Five-year plans are important for many reasons. Good “rolling” five-year plans are updated annually, dropping the current year and adding a year at the end. One of the major benefits is continuity of governance in terms of achieving future goals.
What is the ACMO position with respect to ensuring that Condo Corporations plan appropriately? Should 5-year plans be mandatory? Should property managers lead their condo boards in annual planning exercises?
EP. Reserve Fund Studies are typically the standard used when looking at planning for large projects, and these are repeated every three years. A good board and management company will typically take the time at least once per year (if not more) to go over a high-level view of their community and put together a plan to make the repairs and improvements that they feel are necessary. The best managed condominiums will take it a step further and track metrics or KPIs ( Key Performance Indicators) in various categories to help guide these conversations and ensure that their community is getting resources where they are most needed. We do not feel at this time that a 5-year plan should be made mandatory.
DW. People arriving at retirement often purchase a condo in efforts to downsize, economize, and eliminate maintenance tasks. They
see the condo as being their final residence. Appropriate “reserve funding” can often, over time, put their monthly costs “out of reach.” This phenomenon is probably more evident after the recent round of inflation. Do you see a fix for this?
EP. It is an unfortunate truth that inflation, especially on construction related projects, has caused many well-funded condominiums to fall behind. For example, if a condominium is saving for a window replacement at $2.5 million, and the price jumped to $4 million, this can have serious implications on the Reserve Fund contributions, and thus maintenance fees. However, the same would be true for those who chose to retire outside of condominiums as well. The cost of living is an issue that impacts all of us, and unfortunately retirees have been hit especially hard. A good condominium will explore different paths to funding and will work closely with their Reserve Fund engineer to ensure that the funds can be raised in a manner that is not overly difficult for residents.
A nother solution would be to increase education provided to potential condominium buyers. Many buy into condominiums with limited knowledge of what that entails and about what authority the board of directors must have to raise money. Improved education in this area would help avoid the shock some owners face when their property is underfunded and looking to raise revenue.
DW. In my experience, condo boards can be notoriously lacking
in “the art” of communication. How would you see mandating better communication practices?
EP. We must remember that condominium board members are volunteers who often have full time jobs. Communication with their neighbors may not be their top priority, especially if the news is not good. A good manager should take on this role, and we have seen time and time again that it is better to communicate too much than not enough. ACMOs position would not be that a set amount of communication should be mandated, but that managers be educated and encouraged to do so as part of their regular routine and responsibilities.
DW. Many states in the US have robust laws covering all aspects of condo governance. All board meetings must be posted for everyone to see, people are free to attend and ask questions or make comments, minutes of meetings must be very detailed and director terms are mandated. The same applies to nominating committees. There seems to be a reluctance in Ontario to adopt some of these practices. Is there a lobby or lobbies against adopting more democratic approaches to condo governance?
EP. ACMO has connections with several MPPs and has been looking for the government to pass the amendments to the Act for some time. Our laws are not all that different than those in the US. The Act and Regulations mandate various practices, while giving each condominium the space to govern based on their own needs. Additional legislation (beyond the amendments listed above) could
certainly be beneficial, but with any new laws, there are often pros and cons, and these would need to be well thought out. I am not aware of any lobbies that exist to oppose adopting more democratic approaches to governance. I would suggest, if anything, the opposite is true.
DW. The condo governance model in Ontario can sometimes be a bit autocratic. This can be measured in terms of poor or no communication, lack of prescribed turnover of board members, lack of the use of nominating committees etc. How does ACMO envision correcting some of these practices?
EP. It is true that a poorly run building can end up feeling quite autocratic. While the legislation does provide owners the opportunity to remove board members, misinformation or poor communication can make this difficult in practice. A good management company can often overcome this, but the incentive to do so needs to be in place. Managers with limited supervision, or who are afraid to “stand up” to their boards for fear of losing their jobs may end up making the problem worse. Ultimately, as is true of any level of government, it is up to the owners to act when their condominium’s governance is no longer working in their favor.
DW. Nominating committees can be very useful. Does ACMO see this and other meaningful changes coming to the governance model in the next five years?
EP. Nominating committees could work in favor of a more democratic process, but may also have the opposite effect, de -
pending on the make-up of the committee. As is true with any legislative cure, there will always be people who will use the rules to their advantage, and any new legislation needs to ensure that it functions as intended. ACMO believes that a strong manager who is open and transparent can drastically improve the governance of a condominium, and we are educating our managers to follow best practices.
DW. The cost of “Property Management” fees towards the overall costs of any condominium’s monthly expenses is reasonably insignificant. If say a 50% increase in these costs could provide a higher skill level, that might offer more objectivity and informed input, would that not be attractive to most condo corporations?
EP. As in any industry, higher salaries attract more individuals, and more candidates typically means better managers. Increasing the attractiveness, and competitiveness of the job would indeed, over time, improve the quality of managers. There is, however, reluctance on the part of many condominiums to pay extra for a service, especially at a time when costs are going up across the board.
Eric, thanks for your time and input on a very important subject. Your ideas around collaboration with all sectors of the industry will indeed be critical to the future success of the industry.
Dave Williams is a retired corporate executive and graduate of York University. As is our usual practice we invite comments from our readers at williamsdavem7@gmail. com.
JOIN US on Wednesday, October 16, 2024 at Lakeview by Carmens 180 Van Wagners Beach Road, Hamilton, ON L8E 3L8
for the Golden Horseshoe Chapter Annual General Meeting
Schedule of Events:
• Wine & Cheese Reception – 6:00 pm – 9:00 pm
(Join us and visit with some of our Professional & Business Partner members)
Mike Mullen, B.A., R.C.M. CMCA, is Executive Vice President of Property Management for Wilson, Blanchard Management Inc., an Associa Company. As Executive Vice President, Mike oversees the four offices of Wilson, Blanchard in the Hamilton, Toronto, St. Catharines and Waterloo regions.
Mike has been with Wilson Blanchard Management Inc. since 1999, fulfilling various roles within the company from Property Manager to Manager of Business Development, Executive Director and in his current role as Executive Vice President.
PANELISTS
Patrick Greco
Partner, SimpsonWigle LAW LLP
Patrick Greco is a partner in the Condominium Law group at Shibley Righton LLP, where he enjoys the full perspective gained from providing both solicitor and litigation services to condominium clients. As a solicitor, Patrick helps Boards and Property Managers navigate the day-to-day issues they face. Patrick sits on the CCI Golden Horseshoe Board of Directors, the CCI Toronto Education Committee, and the CCI Golden Horseshoe Professional and Business Partners Committee.
Maria Durdan, BA (Hons), LL.B.
Partner,
SimpsonWigle LAW LLP
Maria specializes in condominium law, development and administration. Maria supports over 650 of the firm’s residential and commercial condominium clients throughout Ontario. Maria has also obtained her Associate of Canadian Condominium Institute (ACCI) designation in law, which recognizes that she has achieved a high level of knowledge and skill of condominium law. Maria is the Chair of the Education Committee and a member of the Hamilton Law Association Real Estate Subcommittee. Maria's practice includes advising boards of directors, property managers and developers on all areas of condominium law.
Stephanie Sutherland, LCCI
Cohen Highley LLP
Stephanie Sutherland is a condominium lawyer with Cohen Highley LLP, working with condominium corporations, property managers, Boards, and unit owners. Stephanie sits on the CCI-GHC Board, as well as the CCI-GHC Conference and Professional & Business Partners Committees, the GRC Education Committee, and the CCI-N Resource Content Committee. She is a frequent speaker at CCI events and authors articles for condo publications. She obtained the (former) ACCI designation in 2015, and the LCCI designation in 2022.
Tom Gallinger
Atrens-Counsel Insurance Brokers
Is Your Property Insurance Proper?
Contending with property damage is an undesirable – yet unavoidable –reality of condominium management. For this reason, having the right property insurance goes a long way toward protecting your financials and giving all stakeholders greater peace of mind.
That being said, is your property insurance the proper fit for your building?
It’s a question that demands consideration, especially as property insurance is mandatory for all condominiums. For review, Ontario’s Condominium Act requires all standard registration condominium corporations to carry property insurance covering the common elements and the units, but not any betterments done to the units. Importantly, it clarifies the types of loss that a property needs to be insured against (aka “major perils”) and makes it clear that the insurable value must be the full replacement cost of the property. Additionally, the Act specifies that the insurance policy must be set up to protect three key parties, including the condominium corporation, each unit owner, and each unit’s mortgagee.
The mandatory requirement for property insurance for condos makes complete sense. Since unit owners collectively own the condominium, they want
to protect their investment but do not want to bear any personal risk from an inadequate insurance limit or insurance companies that are not financially able to pay their claims during a catastrophic event. Meanwhile, mortgage providers and lenders want assurances that a condo corporation’s insurance coverage will restore the livability and sellability of the unit by repairing damage to both common elements and the basic unit.
Similarly, financial institutions that provide mortgages on condo units will often be concerned that the policy is insured to full replacement cost value at all times and insured with financially stable, A-rated insurance companies. Savvy owners will want to ensure this as well, as the intent of the insurance is to transfer risk to an insurance company.
So, what should a condo board look for to know if their property insurance is adequate? From a high level, you want to ensure your coverage program is:
● Entrusted with stable and financially sound insurers;
● Has a proper replacement cost limit of insurance;
● Carries reasonable deductibles (as required by the Condo Act), and
● Does not contain any co-insurance penalties.
There are additional points and tips to consider when assessing if your property insurance is the right fit. They include:
The AM Best Guide:
When brokerages evaluate the financial stability of potential insurers, they will commonly consult the AM Best Guide. This is a reputable
and independent rating agency that assesses the financial strength and stability of insurance companies. An "A" rating indicates that the company has a strong ability to meet its financial obligations, including paying out claims. This verifies that the insurer has sufficient funds to cover potential losses and provides peace of mind to policyholders. Many large corporations and financial institutions require a minimum "A" rating for their insurers.
Replacement cost appraisals:
To ensure your corporation carries an appropriate limit of property insurance, you should secure a replacement cost appraisal regularly. This report should be completed by an accredited independent third-party appraiser that carries an ASA or AACI designation. This will provide your board with assurances that your corporation is insuring its full replacement cost value and is in compliance with the Condo Act. Your declaration may specify how often to secure an accredited appraisal; but when in doubt, most condos observe the rule of thumb of every three to five years.
Reasonable deductibles:
The Condominium Act specifies that a condo corporation’s property insurance may carry a deductible but that the deductible must be reasonable. The term “reasonable” is used often in the Act, and it essentially means that the deductible is appropriate (and not in excess) based on the details of your particular condominium.
In our experience, many condos carry a water damage deductible of $25,000 or $50,000 as they feel that it is a good "managing deductible" for the corporation. In essence, it allows the condo to charge back up to that amount to the responsible
unit for the nuisance unit-to-unit losses but still allows the corporation to access its insurance coverage at a reasonable deductible level.
What is coinsurance?
Coinsurance is a penalty designed by insurers to penalize an insured (and make them a co-insurer on the loss) when an insureds property insurance limit is below the full replacement cost. As a basic example, if you have a coinsurance clause in your policy, and only insure to a limit that is 50% of the replacement cost value of your property, the insurer will only pay 50% of any loss your corporation incurs. This makes the condominium, and ultimately the unit owner, a co-insurer in the loss.
Be cautious of workarounds that require a board member or property manager to sign off on the insurable property value. These forms create significant exposure to boards and property managers and if requested should only ever be signed by an accredited independent appraiser. The most optimal option is to have your insurer remove any coinsurance penalties and provide a true no-coinsurance policy which offers maximum protection.
Between floods, fires, windstorms, and owner accidents, property damage is a near inevitability in a condominium. But when repairs or restorations are needed, there is value in being equipped with a properly-tailored property insurance policy that will insulate the condominium corporation from financial burdens and let everyone rest easier.
Tom Gallinger is Senior Vice President of Atrens-Counsel Insurance Brokers (www. atrens-counsel.com).
A Village with a Heart Halton Condominium Corporation #37
Incorporated in 1975, this 93-unit townhouse community located within blocks of Lake Ontario in a large suburban municipality enjoys the feeling of a village with gardens, shared spaces, and winding pathways — many with ‘street’ names; it is typical to meet neighbours walking around the complex, sitting on benches, sharing time at the pool, or participating in one of the weekly get togethers in the community centre. Members report feeling welcome in the friendly community, with events taking place throughout the year to bring neighbours together including weekly teatime and monthly potlucks in the on-site community centre, and the annual “Neighbourhood BBQ” in September to celebrate new and long-term neighbours. A welcome package is sent to new residents, sharing the village events and some of the businesses and services in the area. This sense of belonging has contributed to second and third generations now in the Village.
As the village approached 40 years, the corporation began addressing larger infrastructure items. Over the past 10 years, the external streetscape was improved with a standardized colour palette reflective of the design features of the various units, fence
and balcony replacement in phases, changes to infrastructure enhancing safety and security of the community, and unplanned upgrades required by the Region.
With the benefits of underground parking, came additional challenges. The need to replace the membrane above the parking garage and associated items such as the ramp heater and door opening mechanism, required the board to make challenging decisions to ensure regular repair schedules were maintained while completion of the major project of membrane replacement. As a result of the work, an opportunity to take a responsible approach to the environment enabled the acquisition of a grant for the transition to sustainable gardens.
Shared use and common element area gardens were designed using endemic species based on drought-tolerance, sustainability, and support for pollinators in a flowing pattern for continuity throughout the complex.
To balance fiscal responsibility with the project scope, the plan was divided into four phases, allowing regular maintenance to continue. The result has been a beautiful and visually appealing complex and a significant reduction in the costs of water and weekly lawn cutting.
Items on the to-do and wishlist will continue, and the Board is proud of the accomplishments without negatively impacting cash flow or Reserve Fund. Community members have been supportive, and appreciate the efforts made to improve their investment and at the same time, maintain and further enhance the sense of community in our village by the lake.
Rebecca Boyd has been involved with the HCC37 community for more than two decades, first as frequent visitor, and most recently as an owner, and Board member. She is heavily involved in volunteer activities and works at a large university in the athletics and recreation department. As a Board member and member of the community, she is passionate about engaging owners, and providing physical and psychological spaces where owners are happy to live and play.
PHOTOGRAPHY CREDITS:
Alex Solovjovs has lived in Central Park Village for more than a decade and is currently raising his family in the community. Alex brings his skills as a professional accountant to the Board, in addition to his considerable communication skills. He is a passionate amateur photographer and enjoys seeing the hard work of the Board in the beauty of the community space.
Patrick Greco
Shibley Righton LLP
Holding Out for a Hero: Where Have All The Property Managers Gone?
Finding a property manager who is the right fit for a community sometimes feels like a quest for the Holy Grail. And if you’re in the condominium industry, you know that this quest is becoming more like a desperate scramble.
The Vanishing Act
Prior to the recent slowdown, Ontario’s condominium market was booming for most of the 2000s. According to the CAO, there are just under 900,000 units and counting. The demand for property managers is skyrocketing. But here’s the kicker, according to the CMRAO, there are only 2,600 General Licensee property managers licensed to oversee all these units.
Why the Shortage?
Several factors contribute to this shortage. First, the regulatory landscape has changed. The Condominium Management Services Act, 2015, which came into force in 2017 brought in strict licensing requirements. While this was a
necessary move to weed out the bad apples, it also meant that many experienced managers either retired or left the industry rather than jump through these new hoops. It also presented a formidable hurdle to bringing fresh blood into the industry.
Second, the job itself is no walk in the park. Property managers are responsible for everything from maintenance and financial management to dealing with disgruntled residents. It’s a high-stress, often thankless, job that requires a unique skill set. The worst-kept secret in the industry is the escalated level of workplace harassment that property managers have faced since the start of the pandemic which does not seem to be abating, causing increased stress and burnout.
The Ripple Effect
The shortage of property managers has a domino effect on the entire industry. With fewer managers available, those who remain are stretched thin. This leads to even more burnout and, you guessed it, more managers leaving the field. It’s a vicious cycle.
The Broader Employee Shortage
The property manager shortage is just one piece of the puzzle. The entire condominium industry is facing a general shortage of good employees. From maintenance staff to administrative personnel to young lawyers and other professionals, finding qualified individuals interested in working in the condominium industry is becoming increasingly difficult. This is partly due to the same factors affecting property managers: high job stress and better opportunities in other sectors.
The Legal Perspective
The legal ramifications of this shortage are significant. When property managers are overworked or distracted, mistakes happen. These can range from minor oversights to significant legal issues. For example, failing to arrange for maintenance can lead to costly repairs and even lawsuits. Financial mismanagement can result in budget shortfalls and even special assessments. Heap on top of all that the ever-increasing forms and formalities foisted on condos by the CAO, such as the Requests for Records regime, coupled with the sword of Damocles of a CMRAO complaint or CAT case from a resident who doesn’t like the answer they get.
Solutions on the Horizon?
So, what’s the solution? Unfortunately, there’s no magic wand to wave. However, there are steps that can be taken to mitigate the problem.
• Attracting New Talent: The industry needs to make property management an attractive career option. This means offering competitive salaries, benefits, and opportunities for advancement. One silver lining of the property manager shortage is that good property managers can command higher salaries, commensurate with the tremendous amount of responsibility they bear. The industry needs to use this as a beachhead and directors and unit owners need to appreciate that you truly get what you pay for.
• Regulatory Support: Instead of inventing new frivolities to consume property managers’ time, the government and regulatory
bodies need to work together to create a supportive framework. Urgent within this is the need for a province-wide recognition and action plan at all levels –including the police and courts – to combat harassment and violence toward property managers. Other elements of such a framework could include incentives for entering the field and streamlined licensing processes.
• Technological Innovation:
Embracing technology can also help. From property management software to automated maintenance systems, technology can reduce the workload and make the job more manageable.
Conclusion
Property managers are the glue that hold our condominium communities together. It may feel like a daunting task to address the critical shortage of good people entering the job but, like our housing shortage in general, we must start somewhere. In addition to implementing the kinds of ideas discussed in this article, it is also crucial to emphasize the great parts about the job: helping solve people’s problems, the ability to help sculpt a safe and enjoyable community for residents, and lots of opportunity for advancement as the whole industry expands to fill Ontario’s housing needs.
Patrick Greco, Partner SHIBLEY RIGHTON LLP Barristers & Solicitors
Highlights of the 2024 Annual Conference
By Will MacKay
As Conference Co-Chair, with my great Co-Chair Natalie Park, I’m delighted to share the success of the 2024 CCI Golden Horseshoe Chapter Conference. Thanks to the great work of the Committee comprised of additional members, Sokal Meta, Thomas Noel, David Corbett and the team at Association Concepts. This year we had our most successful and best
attended event ever at 427 attendees and a phenomenal sold out field of 46 exhibitors. Thank you to our great sponsors for the day and our Conference Partner, Simpson Wigle Law LLP. I have been fortunate to be a part of the conference committee for the past 8 years and we are blessed to have learned from many of the past chairs and committees.
In my business I am often brought back to the famous saying “Culture eats strategy for breakfast”. Simply, no matter how well-designed your strategic plan is, it will fall flat unless your team shares the appropriate culture. This year we wanted to focus on recognizing the shared interest in the communities we live in or manage and the ways to cultivate that common under-
standing. Our theme focused on “Back To Grassroots, Growing The Future In Condominium Living” reinforcing the power of community-led condominium management. Our keynote speaker, Neil Thornton, set the tone with an inspiring address on the importance of authentic leadership and resilience. His insights resonated deeply, reminding us that the most impactful condo communities are those driven by strong, engaged individuals rooted in their local values.
The day’s sessions reflected this theme. Updates on the Condominium Authority Tribunal underscored the need for grassroots governance, emphasizing how recent rulings affect everyday operations in our communities. We hope the attendees left equipped with a clearer understanding of how local perspectives in governance contribute to a thriving condo environ-
ment. We also explored government grants and funding, with a practical session on financing sustainability projects, helping attendees discover how these tools could benefit their communities directly.
In another session on maintenance project planning, we delved into the essentials of cost forecasting and prioritization. Participants gained practical tips for managing their reserve funds while keeping a community-first approach at the
forefront. Grassroots engagement took center stage in our session on volunteer involvement, where we discussed the importance of recruiting motivated board members and fostering a collaborative spirit that reflects the unique needs of each condo community.
Our legal panel provided invaluable clarity on governance and compliance issues, tailored to specific challenges condominium boards face. By tackling these
common issues, we reviewed the importance of a community-centered approach with a focus on communication assisting in navigating legal complexities.
We wrapped up with a cocktail reception, where we shared insights from the day and connected over our shared experiences. This networking time is what truly reflects our “back to grassroots” theme, as
we hope that everyone left inspired and empowered to foster stronger, more resilient condominium communities rooted in local engagement and proactive management. It was a day of learning, connecting, and strengthening the bonds that make our communities thrive.
On behalf of myself, my co-chair Natalie and the rest of the conference committee we would like
to thank all of the great speakers that provided such great sessions to learn from, our exhibitors and sponsors for we could not have this without you, and to all of you for your attendance and participation. We look forward to next year’s event already.
Jeremy Chan, P.Eng. Brown & Beattie Ltd.
PMMA Waterproofing in Parking Garages
Ithink we all understand that it is of utmost importance that the structural elements of your buildings are protected from damage. Failure to do so, in the worst case, can lead to significant harm and breakdown of the structure to perform as needed. In the case of underground parking garages, this protection is often provided by an elastomeric waterproofing system, which is in place to protect the underlying concrete from elements that can potentially cause damage, namely, moisture, road salts, and chlorides.
Most of us reading this are probably quite familiar with these elastomeric waterproofing systems, along with the issues that often arise with them. In general, if properly cared for and maintained, a typical elastomeric waterproofing system within an underground parking garage has a service life of approximately 15 to 20 years, depending on use, after which they typically need to be stripped and reapplied. This maintenance, of course, includes locally repairing areas that may have debonded, worn away, or deteriorated, in addition to localized repair of the underlying concrete. If left unrepaired, these areas of deteriorated concrete expand at an exponential rate, increasing related repair costs and service disruptions.
There are often areas in a garage that experience higher levels of traffic, such as ramps and main drive lanes, where all cars must drive through to get to and from their designated parking spots. There are also areas like the corners and turning radii that experience much higher forces and wear due to increased shear (lateral) forces (think about the cars whipping around corners at speeds much higher than the posted limit). It is at these areas that the elastomeric waterproofing system tends to deteriorate and wear away more quickly. It is also at these areas where there’s more headache associated with partial or full closures, traffic management, and other logistics. There are often times when it is not feasible or practical to close whole sections of the garage to complete repairs and phasing the work is awkward, time consuming, and more costly due to lost productivity and temporary vehicle relocation. It’s at these times that an alternative waterproofing can be used to decrease all the headaches and frustration that comes with repairs and maintenance.
Polymethyl methacrylate waterproofing systems, or PMMA for short, are a premium alternative to conventional elastomeric water-
proofing systems at higher traffic areas, and locations where closures are difficult or not feasible. These waterproofing systems are growing in popularity due to the fast turnaround and increased durability that they offer in comparison to elastomeric waterproofing.
The first, and arguably most important, benefit of using PMMA waterproofing is that it only takes an experienced crew about 6 to 8 hours to install from start to finish at a given area, including installation and cure times. In comparison, elastomeric waterproofing takes approximately 2 to 3 days to complete (primarily due to required cure times), depending on the thickness of the wear coat, meaning that sections of the garage need to be closed for that portion of time. With this advantage, PMMA systems can be installed within a working day or overnight, when garage traffic is significantly lower, greatly reducing impacts to daily operations.
Granted, a full closure of the area will still be required; however, this is often much preferred to closing areas for 3 days or phasing the work in halves. In larger projects, the reduced timeline can reduce the overall schedule and impact on building residents. The benefits only increase when installing
these systems at high traffic areas, such as ramps or main drive aisles, where phasing is a nightmare and closures just aren’t feasible.
The second strength of PMMA systems is that they are considerably more durable than conventional elastomeric systems and bond better to concrete substrates. Typically, when using elastomeric waterproofing systems, an additional coat of wear course (or two) will be installed at high traffic areas such as drive lanes and turning radii since the material is anticipated to wear away with time. While effective, this also means that there will be increased application times (and related closures) associated with installation as each layer of waterproofing cures.
Without boring you with the science of why, PMMA membranes are more robust and less susceptible to wear than conventional elastomeric systems, making them ideal candidates for these high traffic areas as previously mentioned. The surfaces of the PMMA are harder and more durable (due to an additive mixed into the pail), making them more resistant to the shear forces applied by tires, particularly at turning radii. This durability also means that periodic maintenance and repairs are less
frequent, further reducing impacts to garage operations. It should be noted that this also makes them less pliable, meaning that they are more prone to cracking in extreme cold or significant thermal variation; however, this isn’t often a concern in underground parking garages.
An added benefit, and more assurance to the quality of PMMA waterproofing systems is that most manufacturers require proper training, approved applicators, and for the manufacturer to be on site during installation. This is partly because the installation process is slightly more complicated and time sensitive, but also because
compatibility. These systems are generally compatible with most surfaces, as well as other waterproofing systems, including elastomeric waterproofing systems and even hot rubber, which you’d typically install on a garage roof deck. This means that you can install a PMMA waterproofing on garage exit stairs and have it tie directly into waterproofing in landscaped areas, ensuring that the structure is completely protected.
PMMA waterproofing systems are not cheap, at least not in comparison to conventional elastomerics. On average, depending on the size of the repair area, PMMAs can
shut down, installing a PMMA starts to make a lot more sense.
While there is a higher cost of installation up front, often the logistics and costs associated with relocating vehicles offsets the premium; more so in revenue generating garages. Additionally, as the system is incredibly robust, and has the potential to decrease the amount of maintenance repairs required, there may be further life cycle cost savings.
As you can see, there are plenty of benefits to smartly utilizing PMMA waterproofing in parking garages. If your underground parking garage is slated for repair in the
manufacturers often offer extended warranties. With conventional elastomeric waterproofing, warranties are often limited to 2 years, perhaps up to 5 if you pay a premium and ensure that an approved applicator is completing the installation. In comparison, most PMMA manufacturers will supply a 5 to 10 year warranty on the system, which allows for better assurance that the waterproofing will last and be effective at protecting the suspended garage structure.
Further, when installing a PMMA waterproofing system, one thing you won’t need to worry about is
cost 2.5 to 3 times more to install. This is often a hefty fee to pay up front and, in reality, it’s not always feasible to install such a premium system throughout the entirety of the garage. Rather, PMMA can be used selectively in combination with elastomeric waterproofing to create a system which is durable and able to adequately resist constant wear and vehicular traffic where required. Realistically, it’s a little overkill to be installing such a robust system in parking stalls in most cases; but in high traffic areas, which just so happen to be the areas which are most difficult to
near future, talk to your building Engineer about the potential use of this material!
Jeremy Chan, P.Eng. is a Project Engineer at Brown & Beattie Ltd., a building science engineering firm dedicated to providing clear and sensible building improvement, maintenance, and repair planning advice by listening to clients’ objectives. Mr. Chan specializes in investigations and condition assessments of low-rise and high-rise buildings, primarily focusing on structural components. He has developed a deep understanding of the role of various building components, including moisture protection systems, and their interactions, which allows him to critically assess buildings for areas of existing or potential failure.
OCTOBER 16
October 16, 2024 Meeting Annual General Meeting
OCTOBER 22
October 22, 2024 Level 100 Course Introduction to Condominiums
OCTOBER 29
October 29, 2024
Condo Talk
Out of Control Renovations: Forgiveness is not always Easier than Permission
Loans Q&A
Ryan Griffiths Managing Director, Condominium Lending Group
Luka Milidragovic Director, Condominium Lending Group
Why would a condo corporation borrow a loan and what are the benefits?
A condo corporation may consider borrowing a loan for several reasons, including but not limited to: financing major repair & replacement projects, funding additions or alterations to the common elements, replenishing or topping-up the reserve fund, or refinancing existing debts. The most common reason is undoubtedly for financing major repair & replacement projects. Specifically, the case for a loan arises when the condo corporation’s reserve fund does not have adequate funding to complete the required work/ project at-hand. This scenario is often referred to as a reserve fund shortfall.
In such cases, short-term additional funding is required. A condo corporation has limited options, funding can be raised through either: a special assessment of the unit owners, or a loan to the condo corporation. While special assessments provide quick funding, they can be financially disruptive to the unit owners. This can be especially problematic when large sums are involved. As an alternative, borrowing a loan as a condo corporation would enable the unit owners to spread the financial impact over an extended period of time, elim-
inating the immediate financial pressure of a special assessment.
How does the condo loan process work?
The process begins once a Board identifies a need for additional funding. The board or property manager should then reach out to a lender to learn more about their options, the loan process, and to get answers to any questions they may have. When considering a loan, a board should always schedule a meeting with any potential lending partner. An experienced lender can provide the board with different loan options, as well as sound advice and guidance throughout the process of considering a loan.
Once a lender is selected, the Board must work toward passing a borrowing by-law to authorize the borrowing. This will require 50%+1 of unit owners voting in favour of said by-law. To achieve success, it is critical that the unit owners are aware of the reason borrowing is being considered, the loan details, and the resultant implications, prior to casting their vote. Owners will need a lot of information to make an informed decision, and the corporation should expect support from the lender. It is typical for a lender to attend owners’ meet-
ings to present the details and answer owner questions.
An important consideration is that the process of proposing a borrowing bylaw can be a tool to empower the owners in a condo corporation to make the important decision on how best to raise the additional funding that is necessary. The process can be used to effectively propose both a loan or special assessment, or some combination of both as potential solutions to the owners. The borrowing bylaw voting process allows the owners to choose the best solution for their particular community and specific circumstances.
If a borrowing by-law is passed, the lender should further guide the Board through the loan process from documentation to funding, through to finalizing the loan.
How does a condo loan affect me as a unit owner?
The primary impact on unit owners is the likely increase to condo fees after the loan is implemented. Prior to any Board proceeding with a loan, the selected lender should provide different options for how the loan can be structured, and how each would impact the future condo fees.
Notably, the condo loan will not have any impact to owners’ personal credit or home equity. This is because the loan is between the lender and the condo corporation, not the individual unit owners. The condo loan repayments become an expense of the condo corporation, and hence the condo corporation is the entity that is making the loan repayments to the lender, not each individual owner.
While condo fees may be higher due to the condo loan, it is worthwhile to note that the loan was most likely used to finance a major repair & replacement project. These improvements can of course have a significant positive impact on a unit’s price and marketability. For example, a renovated cladding system can drastically improve the appearance of a condo property, and similarly the marketability of the corresponding units. Resultantly, a trade-off becomes evident with the implementation of a condo loan: the unit owners will be subjected to higher condo fees, but the condo corporation has now upgraded and improved one or more of the common elements. It is up to the unit owners at the condo corporation to balance this trade-off and decide as a collective group.
What happens if a unit owner doesn’t make loan payments?
Will I be able to sell my unit if the corporation has a loan?
Yes, unit owners can still sell their units even if the condo corporation has a loan. However, the key consideration here is whether the increased condo fees required to service the loan remain marketable. This is a subjective consideration and there is no one-size-fits-all formula to determine the marketability of a unit’s condo fees. Several factors will be considered, such as the condo’s location, condo fees at surrounding comparable condos, the age of the condo, etc.
Since the condo loan is between the lender and the condo corporation, individual unit owners cannot default on the loan itself. The condo corporation is the entity providing the loan repayments to the lender. Instead, unit owners pay back their portion of the condo loan through their condo fees. Therefore, a unit owner can only default on their own payment to the condo corporation, and the collection process in-place remains completely unchanged following loan implementation. The collection rights afforded to the condo corporation under the Condominium Act provide strong collection rights. These collection rights protect the unit owners who are relying on the other unit owners in the community to share the common expenses.
Golf Day 2024
CCI-GHC & The Ontario Building Envelope Counsel came together to host the Building Better Together Golf Tournament at Century Pines Golf Course, Hamilton, held on the afternoon of August 7th, 2024.
Set against the breathtaking backdrop of the Century Pines Golf Club, this tournament promised to deliver an exceptional display of skill, strategy, and sportsmanship where every shot counted, well maybe just a great day out on the course with industry colleagues soaking up the warm summer weather and a beverage or two. Thanks to all the sponsors who made this day extra special. Starting with the Caesar-Mania tent sponsored by Registon Building Restoration Ltd at the first hole, which was a busy venue as golfers quenched their thirst.
And that was only the beginning of many sponsored holes that offered various options to keep the golfers’ spirits up as they tried to improve their game -- there was the Candy Shack sponsored by Wilson Blanchard Management to keep those sugar levels up and even Fairway Rejuvenation Massages sponsored by Egis Group, as well as more complementary massages at the clubhouse after the round sponsored by Rimkus Consulting Group – the massages were amazing.
Back to actual golfing… Longest drives and closest to the pins were sponsored by Brown & Beattie
Building Science Engineering, as well as closest to the Fan Coil, yes there was an actual fan coil in the middle of the fairway you had to try and hit it, sponsored by Unilux. The “out of the box challenge” was also a big hit, where golfers had to draw which club they had to drive with -- have you ever tried to drive with a putter? sponsored by Service Master Oakville, and the History Club hole where golfers used an antique driver to hit their best shot sponsored by CIBC Private Wealth, The Mackay Financial Group.
The Halfway House snack fill up was sponsored by Pretium Engineering and where would we have been without the beverage carts roaming the course providing timely refreshments sponsored by Skyline Contracting. The Roll’em Poker Hole sponsored by Property Management Guild added a little gambling to the round. MJ Building Envelope Solutions Inc along with Elevate Roofing and Wall Systems hosted a selection of craft beers station from Muskoka Breweries in case golfers were between beverage cart deliveries.
Finally, after the tally of lost golf balls for the day, the great shots, the near misses and cursing at your favorite Tree Wood, it was time to get to the cocktail reception sponsored by Polyglass, with photography sponsored by Telstorm Engineering & Building Science and videography sponsored by Heritage Restorations Inc.
Dinner Table tops was sponsored by Morrison Financial and the all-important food stations were sponsored by The Condominium Lending Group and Eagle Restoration. During Dinner we learned just who was either really good at golf or terrible at arithmetic with
audio visuals for these winning golfers sponsored by Edison Engineering Inc
Wrapping up with desert sponsored by Leading Edge Building Engineers, a great day was had by all making this event a memorable occasion for everyone involved. Thank you to everyone that attended and sponsored golf holes and prizes, as well as to the club staff that looked after everyone during the event.
Jordan Swail, P.Eng. RJC Engineers
Window Replacement: Getting it Right
As a condominium Owner/Director, replacing windows can be a significant investment in your building. Window replacement can be expensive and disruptive, but can also transform building aesthetics, and maintain the value of your property. To ensure a successful project and avoid common pitfalls, the Board should answer the following questions when considering a window replacement project:
1. When Should I Replace My Windows?
There are a number of reasons to replace windows, including leaks, drafts, energy costs, and fogged glass, to name a few. The timing of replacement will depend on the Reserve Fund Study and how widespread the issues have become. An owner survey can provide a good representation of how many occupants are currently having issues.
It is important to understand the reason for replacement to ensure that the work will address the problem. For example, suspected leaks could be occurring
within the window system or could be due to condensation. Accurately diagnosing existing issues early can reduce the potential of re-work or improper window selection.
Improvements to interior comfort and energy performance go hand in hand, and are common reasons for window replacement projects. This is particularly so in 1970s or 1980s-era buildings that have clear uncoated glass, non-thermally broken (uninsulated) frames, and drafty windows.
Condensation problems are also common in buildings with older windows and poor ventilation. Improvements in window frame designs can significantly reduce or eliminate condensation. As with all products, different window products may be better at addressing these issues - make sure to consult with your engineer early in the planning stages.
2. What Types of Windows Should We Choose?
Windows are available in a variety of operable types/configuration such as horizontal and vertical sliders, casement, awning, tilt and turn, etc. The operable window type will impact ease of operation, durability, energy savings, and how well they resists leaks. The window layout and number of operable windows can also be changed to optimize function for your building.
Common window frame materials include aluminum, fiberglass, vinyl, and wood. Aluminum window frames are more common on high rise buildings, due to fire resistance and strength requirements. In addition to good strength properties that allow large window sizes, aluminum is durable over time.
Vinyl windows are most commonly used for low-rise residential
buildings and smaller window sizes. Vinyl is a very energy efficient material, but lacks the strength or fire resistance required for high rise buildings.
Fibreglass and wood windows are both less common in condominium buildings due to their cost, but may be an option if energy efficiency or aesthetics are of primary concern.
Not all windows perform the same and varying price points exist for all window types – make your priorities and budgetary constraints clear to your engineer.
3. How can we reduce construction issues?
As with any capital repair project, proper planning can help reduce the potential of common
construction issues and surprises. Make sure you have the following measures in place prior to proceeding with window replacement:
1- Get Real Numbers
It’s common for condominium boards to rely solely on reserve fund studies for financial planning of window replacement projects. While comparable data and ballpark figures can be beneficial for long term planning, a more detailed window assessment will reveal the true anticipated cost. A comprehensive window assessment gives owners detail and anticipated costs that are geared towards the current condition and performance requirements of your building.
2- Project Team
A ssembling the correct team can reduce delays, cost overruns, and reduce headaches. Window replacement is a complex process that requires specialist experience and oversight from contractors and engineers. Ensure your engineer includes regular meetings and site visits to manage the construction process and reduce the burden on the Board and Property Manager.
3. Time your Quotations Right
There are good times and costly times to tender a window replacement project. Obtaining pricing in the late fall or early winter will generally yield the best pricing, as contractors are planning their workload for the upcoming summer construction season. Missing this optimal timing can increase project costs by 25% or more.
4. Interior Impacts
Ensure your window design includes requirements for interior protection and security. Window replacement can be disruptive for anyone in the unit during the work, but each window is typically completed before the end of a work day and the unit is handed back watertight. Finish painting or drywall repairs may require return visits. Furniture must be moved away from the windows and protected with drop cloths. Window blinds should be removed and reinstated to reduce the potential for damage.
5- Hazardous Substances
Many buildings constructed in the 1970’s and 1980’s may have hazardous materials such as asbes-
tos in drywall or ceiling finishes. Make sure your engineer or contractor proactively retains the services of an environmental consultant to perform asbestos testing prior to undertaking work. Finding asbestos during construction can be costly and hazardous.
In summary, it is important to properly plan for window replacement to ensure the project meets the building’s needs, your expectations, and budgetary constraints. Addressing the above questions will help start a window replacement project in the right direction and ensure that the new windows meet your expectations.
Jordan Swail, P.Eng. Associate RJC Engineers
Tool Talk
The mandate for the Professional Partners Committee has always been to promote and grow a network of trusted professionals for the benefit of all CCI members. To that end much of our focus has been organizing networking events where we bring together our business partners with our CCI members. The majority of these events are planned as educational seminars where our professionals present on a wide variety of topics that the Committee feels will benefit our membership.
The Tool Talk series of videos will provide some behind the scenes views of our professionals to highlight a few of the many services our experts provide to their condo clients. The idea is for these short videos (3 to 4 minutes each), to give our membership a behind the scenes look at our experts at work. Many of these clips will be a view of activities/operations which may never have been seen/witnessed by our members before.
Some of the first videos will focus on engineering, contracting and emergency/ disaster response.
The video clips will be uploaded to the CCI Golden Horseshoe website for easy viewing access and a library of multiple topics/insights will be created. We hope the clips will provide a fun and interesting look “behind the curtain” with our professionals while also educating the viewers on the methods, materials, operations utilized to inspect, resolve and repair typical problems being faced by condominiums within our community.
You can review our current library of videos here:
As always, the committee welcomes input from our members. If anyone has a suggestion for one of our videos, please feel free to reach out to us at admin@cci-ghc.ca.
View Tool Talk Videos
New CCI Golden Horseshoe Members
to our Newest Members:
CONDOMINIUM CORPORATION (50-149
UNITS)
HSCC #746 (20 Units) Oakville, ON
WSCC #649 (75 Units) Waterdown, ON
BUSINESS PARTNER
Ecolo Synergy GTA 1 Inc. – Richard Lepine Burlington, ON
Gro Construction – Adam Isgro Burlington, ON
PRC Group Ltd. – Savo Popovic (Construction Company) Etobicoke, ON
Burlington Electric Services – Angelo Gracina Burlington, ON
New Member PROFILE
New Member Profile - PRC Group
PRC Group – Building Restoration and Remediation Professionals with over 30 Years of Industry Experience. Pop’s Restoration & Contracting Group, operating as PRC Group Ltd. We are tailored towards the maintenance, rehabilitation and remediation of high-rise condominiums and townhouse complexes. Contact us today to discuss our extensive list of services or visit us at: www.popspro.ca
Sandy Fantino BFL CANADA
Like People, Older Buildings Need a Little Extra Care
It’s a fact of life that regular medical check-ups are important to stay healthy. The same is true when it comes to the wellbeing of the condos where we make our homes. And as condos are aging like the rest of us — with as many as 60% of condos in the Greater Toronto Area having been built before 1980 — this is becoming ever more important. Having a good understanding of the issues facing older buildings is essential to being prepared to meet any challenges and to avoid unforeseen surprises.
A practical approach to risk management
Ensuring the health of the condo building requires a planned, ongoing commitment based on a regular, systematic approach that proactively maps out and prepares for the challenges that older structures will invariably face. This
is also essential to maintaining adequate insurance renewals for aging buildings, specifically those that are 40 years of age and older. These require renewal information from underwriters and markets on available upgrades and improvements to heating, electrical, roof and plumbing. While it doesn’t prescribe specific actions, the Condo Act provides some overall direction (see sidebar below).
By actively managing these matters, homeowners and condo associations can better protect themselves from the risks associated with aging condos and ensure a safe, well-maintained living environment.
Here are a few key areas owners and condo corporations should be focused on in managing the elder-building:
Regular Inspections and Preventative Maintenance to Ensure
Structural Integrity: It is quite reasonable to expect that aging buildings may have issues like foundation problems, the need for a new roof, and may require upgrades to plumbing and electrical systems. Key parts of a building such as roofing and the heating, ventilation and air conditioning (HVAC) systems often need to be upgraded or even replaced every 20 to 30 years. Other concerns may relate to balcony repairs, replacement of windows, external cladding and the need to renovate parking garages subject to the often corrosive wear and tear of successive winters.
Regular inspections by qualified professionals can identify and address these matters before they become major problems. Routine maintenance tasks such as cleaning gutters, sealing leaks, and servicing HVAC systems can prevent
more costly repairs.
Updating Systems and Components such as Electrical and Plumbing, Fire Safety: Older systems may not meet current municipal building codes or may be more prone to failure. Upgrading these systems can reduce risk and improve safety. Ensuring that fire alarms, sprinklers, water shut-off systems, and fire extinguishers are up-to-date and functioning is critical in adequately managing risk.
Association Reserve Fund: The condo association should maintain a reserve fund to cover major repairs and replacements for common areas and structural elements. An aging building may require more frequent and significant repairs, so a well-funded reserve is essential. The Condo Act also requires periodic reviews to determine if the reserve funds are adequate. The level of funding has become more significant with the rise of inflation over the past five years and the increasing costs and shortages of building materials and skilled labour. The summer issue of Condo News (“Aging Condos and Shrinking Dollars”) provided an excellent overview of the financial pressures facing condos, not least of which is the jump in the residential construction price index produced by Statistics Canada due to the rate of inflation. This index is something that insurance professionals pay particular attention to when assessing a property.
It's also important that each condo owner take an active interest in the financial health of their condo association and engage in its daily operation. Owners need to be mindful of and alert to the potential upcoming costs and have their own
financial affairs in order just in case they need to fund a special assessment.
Professional Risk Assessment: Periodic risk assessments by insurance professionals or risk management consultants can help identify vulnerabilities and suggest improvements. It is important that maintenance of older electrical, roof and plumbing components show they are being inspected semi-annually or, even more often for proper working order and wear and tear. Regularly review insurance policies to ensure adequate coverage as the building ages and its replacement cost value changes.
Communication and Policies: Keeping residents in the loop and informed is mission critical. It’s important to ensure that residents are knowledgeable about maintenance schedules, potential risks, and how to mitigate them.
Know the rules and the regulations
Unlike the approach to personal health care, the methodology behind a condo check-up is dependent on rules that govern the condo corporation. The headline is that in condos, responsibility for upgrades can vary based on the specifics of the condominium association's rules and the terms outlined in the individual ownership agreements.
Generally speaking these agreements cover:
Internal Upgrades and Approval Process: Homeowners are typically responsible for upgrades within their individual units. This includes things like kitchen remodels, flooring changes, and bathroom
updates. Homeowners can usually make these improvements as long as they comply with local building codes and the condo association’s rules. Many condo associations have rules about modifications to ensure they do not affect the structural integrity or aesthetic of the building. Homeowners usually need to seek approval from the association before undertaking significant changes.
Structural and External Upgrades: The responsibility for structural changes or upgrades to the exterior of the building often falls on the condo association. This includes things like roof repairs, exterior painting, and upgrades to shared amenities such as pools and clubhouses. These are usually funded through the condo association’s budget and maintenance fees.
Shared Spaces: For common areas like lobbies, hallways, and recreational facilities such as pools and gyms, the condo association typically handles upgrades. Costs for these improvements are usually covered by the association’s budget and are shared among all unit owners through their monthly fees or special assessments if needed.
Insurance and Maintenance:
The condo association often carries insurance for common areas and structural components. Homeowners are usually responsible for insurance covering their own units and any upgrades or improvements they make.
So, ensuring a healthy building is much like ensuring a healthy person. Keep things ship shape, have a secure financial base, and schedule regular check-ups to prevent or mitigate any future problems.
Sandy Fantino R.I.B. (Ont.) is a Vice President, Client Executive for the BFL CANADA Realty Division with over 12 years of insurance industry experience. Her focus is finding the best insurance solutions for condominium corporations and along with her team, she prides herself on professionalism and service to her clients.
About BFL CANADA
BFL CANADA Risk and Insurance
Services Inc. is one of the largest em-
ployee-owned and operated commercial insurance brokerage and consulting services firms in Canada. Our Realty Division, with a team of over 200 real estate professionals located in 27 cities across the country, understands the risks faced by all types of properties from strata and condo corporations to apartments, commercial and bare land properties. To learn more about us and what we do, visit www.bflcanada.ca/realty-insurance-services
Seeking guidance from the Condominium Act
While there is no legislation that mandates a regular condo health check, the Ontario Condominium Act, 1998, which governs the operation and management of condominium corporations in Ontario does offer some general guidance and good practices for older buildings.
While the Act itself doesn't provide detailed guidelines on specific upgrades or renovations, it does cover aspects related to maintenance, repairs, and upgrades through various sections. For residents and managers of older buildings, there are several key points to keep in mind to ensure you have all of your bases covered. They fall into five key areas:
1. Maintenance and Repairs: The Act requires the condominium corporation to maintain and repair the common elements of the property. This responsibility extends to ensuring that the property is in good repair, which can involve upgrading older systems and structures as needed.
2. Reserve Fund: The Act mandates that condominium corporations maintain a reserve fund to cover major repairs and replacements of common elements. For older buildings, this fund is particularly important as it helps ensure that there are financial resources available for significant upgrades and repairs.
3. Major Repairs and Replacements: For significant upgrades or replacements, such as replacing old plumbing or electrical systems, the condominium corporation typically needs to follow procedures outlined in the Act. This can include obtaining the consent of owners, particularly if the work affects the common elements or individual units. See #5 below.
4. Bylaws and Rules: Condominiums can have their own bylaws and rules, which might set specific procedures or requirements for renovations and upgrades. For older buildings, these may include provisions on how to handle significant upgrades or changes to the property.
5. Consultation and Voting: Major changes or upgrades, especially those that impact the common areas of the building, often require approval from the unit owners. The Act outlines the process for holding meetings and obtaining the necessary votes for such decisions.
Would you like to Win
hat is the overall environment like within your condo community; and
• What makes residents proud to live in this community?
Have your condo featured in a future issue of “Condo News” for a chance to win Condo of the Year and $500 for your condo! One entry will be featured in each issue of the “Condo News” magazine – Spring, Summer, Fall and Winter.
The winner of the Condo of the Year will be selected by the GHC-CCI Communications Committee and will be announced at the Annual General Meeting in the fall.
More details can be found on page 34 of this issue, and in each issue of “Condo News”.
The GHC Communication Committee
Craig McMillan, RCM, ACCI, LCCI, CMCA, CAPM
Maple Ridge Community Management
My Shovel Isn’t Big Enough, Digging Deep for Volunteers
“My Shovel Isn’t Big Enough, Digging Deep for Volunteers” at this year’s conference discussed the critical issue of community involvement and succession planning within Condominium Boards with panelists Craig McMillan, Colette Ertel and Mike Mullen.
How do Boards address the challenges that arise when there's a lack of volunteers. Why do some owners shy away from Board roles? Are they unaware of the opportunity, intimidated by the commitment or simply don't care? We explored these questions and more, fostering a grassroots conversation to uncover the root causes of apathy and inaction faced by many Condominium Corporations. The discussion focused on the newer director education requirements as well as an understanding that these requirements will continue to evolve as the CAO’s sphere of influence continues to grow in the condominium sector.
Real fear of harassment concerns, as these volunteers are subject to the possibility of ongoing harassment in their own homes, liability issues and duty of care as a director also add to the challenges in getting people to volunteer.
Through interactive discussions and real-world examples, the panel offered strategies to deliberate on how to reignite community engagement and cultivate a culture of participation. From demystifying the role of the Board of Directors to highlighting the importance of succession planning, we empowered attendees with practical insights and actionable steps to drive meaningful change within their own communities.
The session also explored what motivates individuals to step up, how to nurture future leaders, and ultimately, how to build stronger, more vibrant communities from the ground up.
Mike Mullen discussed how long is too long to serve on any Condominium Board of Directors. A great volunteer is like a great employee -- they need to be valued by the community they serve, and the desirable length of service depends on many variables including whether these long-term Directors are still contributing to the community in a positive manner.
Colette Ertel provided insight into her own personal experience from the viewpoint of being a long-serving Condominium Director with over nine years on the Board of her high-rise condominium in Burlington. Colette spoke on what makes a good Director, from being approachable and empathetic, to having a backbone when faced with the tougher decisions. She touched on the rapidly changing industry through her nine years of service and the importance of timely and concise communication in the Boardroom, with the residents, management, and vendors.
Colette also spoke about building the Board of Directors like developing a professional business team, looking for skills that can enhance and complement the Board’s performance with intent, making sure the Board has a representative with great financial acumen, another with great interpersonal skills, and a detail-orientated person who can communicate effectively. These skills, among others, will be beneficial to outcomes for the Corporation as the Board navigates the challenges of the community.
Overall the audience came away with both practical and real life examples of how to deal with succession planning in their own communities.
Craig McMillan, RCM, ACCI, LCCI, CMCA, CAPM - Maple Ridge Community Management
Craig McMillan is President of Maple Ridge Community Management (MRCM) an Associa Company. He has been a Condominium Professional since 2003. Craig holds his RCM designation from ACMO, and his ACCI and LCCI designation from CCI-National. He is a member of the Project Management Institute and holds his Certified Associate in Project Management designation CAPM.
He currently serves on the Board of Directors for ACMO and ACMO’s Membership & Programs Committee as well as the Condo Conference Committee hosted by ACMO & CCI-Toronto.
He also serves on the Professional & Business Partners Committee and the Communications Committee with CCI-GHC, as well as an inaugural member of CMRAO’s Advisory Committee. He is a frequent speaker at industry events & conferences, as well as contributing articles for various industry publications.
The Golden Horseshoe Chapter of the Canadian Condominium Institute would like to give your Condominium $500.
Tell us why your Condominium is worthy of winning the “Condo of the Year” award? We are all proud of our homes, you just need to highlight the following points in your article that describes your condominium:
l What are the qualities and features of your Condominium?
l What are the accomplishments achieved by your Condominium Corporation?
l What is the overall environment like in the Condominium?
l What makes residents proud to live there?
Each entry will be featured in one of the upcoming issues of the “Condo News” magazine. There are four issues per year:
Spring
Summer
Fall
Winter
Article deadline March 15th
Article deadline June 15th
Article deadline September 15th
Article deadline December 15th
You can either send an article or we can interview you via phone and write an article about your condo for you! Don’t forget to include photos of your condominium.
Interested applicants should submit their articles or contact information for an interview to:
by mail
OR by email
CCI-Golden Horseshoe Chapter, admin@cci-ghc.ca
PO Box 37
Burlington, ON L7R 3X8
The Condominium will be selected by the GHC-CCI Communications Committee and will be announced at the Annual General Meeting in the fall.
Are you still stressing over holding your Annual
General Meeting
virtually?
Can’t find a service provider to host your meeting?
Are you a member of Golden Horseshoe Chapter –Canadian Condominium Institute?
Yes!
THEN WE CAN HELP!!
The GHC-CCI will offer our technical expertise and the use of our Zoom platform to host your AGM. You will still be required to prepare everything needed for your AGM:
•PowerPoint
•Script
•Host
•Collection of proxies
•Minute taker
•Polling/voting questions and choice of answers
•Distribution of your AGM package
•Provide GH with name/emails of partici-pants
Golden Horseshoe Chapter will supply the following:
•Zoom Pro platform (including polling through Zoom)
•Conference call number for those not able to connect through zoom
•Any confidential voting requirements through an online survey link
•A technician to run the event in the background who will:
-set Up link and any recording requirements
-set Up polls
-launch Polls and surveys
-provide tech help/troubleshooting
This service is available for smaller condo’s as follows:
1-19 Units - $250 + HST
20 – 49 Units - $350 + HST
50 – 80 Units - $450 + HST
This service is only being offered to small condominium units that are members of GHC-CCI and is on a first come, first served basis.
If you are interested in using our services please email us at admin@ghc-cci.ca with the date and time of your AGM, and we will get back to you with our availability.
