Canada’s Most Widely Read Condominium Magazine
August 2016 • Vol. 31 #5
THE PEOPLE ISSUE
An AODA update, the bathroom debate and personality type-based management
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The path into, out of and through court-appointed PA R T O F T H E administration
P A R T
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T H E
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Contents FEATURES
DEPARTMENTS
14
A call for resources for lone elderly residents By Barbara Carss
18
Maintenance Sanitation for spaces shared by seniors By Paul Goldin
20
The one per cent By Michelle Ervin
26
Finance Underfunded reserves: Half empty or half full? By Jeremy Taylor
30
Management An executive reflects on the 1998 Condominium Act reforms and their implications today By Shlomo Sharon
32
What’s your (personality) type? By Michael Le Page
35
Legal AODA Update: Employment standards By Doug MacLeod
IN EVERY ISSUE
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Ask the expert Smart ideas
DEPARTMENTS
10
12
Governance Top five condominium talking points By Sue Langlois Do you know where your documents are? By Noah Maislin and Marko Lindhe
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EDITOR'S LETTER
The people issue
Publisher Mitchell Saltzman Editor Michelle Ervin Advertising Sales Sean Foley, Stephanie Philbin, Daniel Ross
When Britain shocked the world by voting
in favour of exiting the European Union, aka Brexit, one of the immediate narratives to emerge was how older, rural citizens had foisted upon younger urbanites a future they didn’t want. Without giving away my personal politics, which I shelve in my professional life in the name of dispassionate reporting, it hit close to home for me. As a millennial, I have grumbled about decisions made by politicians decades my senior, who will be long gone as I continue to pay for said projects via tax dollars for years to come. But that’s how democracy works, isn’t it? A fellow millennial friend pointed out the obvious dangers of toying with the equation of one (equally weighted) vote per person. Condominium corporations face similarly diverse populations that can divide over a range of fault lines — old versus young, singletons versus families, end user versus investor. And sources of conflict only become more fraught, because not only are corporations government-like, but unit owners have a more direct and greater stake in their condo board’s decisions. This month’s cover story looks at what happens when communities devolve into dysfunction. In particular, it breaks down the path into, out of and through court-appointed administration, which, I learned, was a mechanism incorporated into the 1998 iteration of the Condominium Act. Also on the topic of different condominium constituencies, you will find a feature written by my colleague Barb Carss about the challenges of managing properties that are home to growing populations of elderly residents who live on their own. Plus, lawyer Deborah Howden highlights how the transgender bathroom debate in the U.S. has long been settled in Ontario, and what obligations condominium corporations have under the human rights code. The fact that people are now protected from discrimination based on gender expression and identity offers a reminder that public policy changes gradually, eventually reflecting changing attitudes. And different generations often have more in common than they recognize — after all, this recent addition to the human rights code merely builds on legislation first introduced in the early 1960s.
Senior Designer Annette Carlucci Designer Jennifer Carter Production Manager Rachel Selbie Digital & Sales Coordinator Paula Miyake Contributing Writers Barbara Carss, Paul Goldin, Sue Langlois, Michael Le Page, Marko Lindhe, Douglas MacLeod, Noah Maislin, Shlomo Sharon, Jeremy Taylor Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*. Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Circulation Department Maria Siassina circulation@mediaedge.ca (416) 512-8186 ext. 246 CONDOBUSINESS is published eight times a year by
President Kevin Brown Accounting Manager Samhar Razzak Group Publisher Melissa Valentini 5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca
Michelle Ervin Editor, CondoBusiness michellee@mediaedge.ca
CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs. Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.
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6 CONDOBUSINESS | Part of the REMI Network
THIS MONTH’S ONLINE EXCLUSIVES ALL THE BUZZ
New property transfer tax makes waves An additional property transfer tax aimed at stemming the tide of foreign investment in residential real estate has made immediate waves in the Metro Vancouver market. In a surprise announcement in late July, the B.C. government introduced the 15-per-cent surcharge without grandfathering provisions to protect deals that were in place but would not close before it took effect Aug. 2.
B.C. has relaxed the threshold of support required to sell a strata property at the end of its life cycle.
FROM THE GREEN BIN
Pest prevention for pools and other amenities A condominium’s amenities should set it apart from competitors, keeping owners and residents happy and suites occupied — at least, that’s the goal. A property manager should have a plan for keeping the amenities in pristine condition. That plan should include pest management because a building’s amenities are an easy target for pests seeking food and shelter.
Vancouver developers to pursue zero emissions Publicly owned rental housing will be thrust into the role of demonstrating how greenhouse gas (GHG) emissions from Vancouver’s building stock can be significantly reduced. However, the city’s newly adopted Zero Emissions Building Plan (ZEBP) ultimately demands similar results from all types of new development, with the goal of entirely eliminating emissions by 2030.
The Canada Green Building Council is offering free LEED registration in Fort McMurray, Alberta, as the community rebuilds.
EXPERT ADVICE
Interior designer Anita Wiklém walks through lobby design trends.
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ASK THE EXPERT
The bathroom debate In the U.S., the question of whether trans people should have access to whichever lavator y best
matches their gender expression has become a political f lashpoint. In Ontario, the answer came three years ago, when the province added new protections to its Human Rights Code. Deborah Howden, partner, Shibley Righton LLP, highlights what condominium communities need to know:
8 CONDOBUSINESS | Part of the REMI Network
Inclusion is not bringing people into what already exists; it is making a new space, a better space, for everyone. – Dr. George Dei The law on gender protection is poised to expand in the not too distant future. The federal government has recently introduced Bill C-16, a proposed law to protect the human rights of transgender people. Among other changes, the law seeks to amend the Canadian Human Rights Act by adding “gender identity” and “gender expression” to the list of prohibited grounds of discrimination. These protections are not new to Ontario, as they were specifically added to the province’s Human Rights Code in 2012. Under the Code, there is an obligation on a condominium corporation not to discriminate against any person because of their g end er id entit y or g end er expression. “Gender identity” means whether a person identifies internally and personally as a male, female, or some combination of the two. “Gender expression” refers to how a person chooses to express their masculinity or femininity. Gender identity and expression can be related, but they sometimes are not. In other words, for example, a resident may identify with being male, but have stereotypically female expression. Practically speaking, the requirement not to discriminate means that all residents and employees of the condominium have the right to use any washroom that best corresponds to their gender identity, regardless of their sex assigned at birth and regardless of whether or not they have, or intend to have, sex re-assignment surgery. In addition, both residents and employees have the right to use a change room that corresponds to their gender identity. Ideally, privacy options should be provided within the change rooms for anyone (including nontrans persons) who wish to use such options. Failing to accommodate a transgender resident or employee by disallowing him or her access to an appropriate washroom/ change room could result in a successful human rights claim.
In 2013, for example, the Human Rights Tribunal of Ontario ruled in favour of a fired employee undergoing a gender transition. While employed, the employee began hormone treatments to transition from a man to a woman. She was ultimately terminated. In its ruling, the Tribunal found that the applicant suffered discrimination and that her employer did not accommodate her needs, which included allowing her to use the women’s washroom. In an unrelated case, three transgender women and their employer won damages against the organizers of a market who tried to shut their booth down because they claimed the trans women were dressed “inappropriately.” In Salsman v. London Sales Arena Corp., the Tribunal heard evidence that the respondent said he was unhappy that the women were scantily clad at a “family market.” He also made reference to “people like that,” and “guys dressed up as girls.” The Tribunal ordered damages payable in the amount of $40,000. One of the takeaway lessons for a board of directors and property management is that non-affirming actions and language can result in a finding of discrimination against the corporation. The condominium also should be very careful to recognize a trans person’s preferred name and gender in all of the corporation’s communications, files and documents. In addition, property management should consider whether there is a valid need to ask for information about a resident’s gender or sex. If the information is indeed required for legitimate purposes, it is recommended that the corporation allow people to self-identify their sex or gender identity on any required documentation. As recommended by the Human Rights Commission, the option of a blank box is the most inclusive for this purpose, as opposed to providing the resident with a choice between male or female. Here are some practical tips on avoiding discrimination claims on the basis of gender identity or gender expression
1. Watch the language. Always recognize a trans person’s preferred name and gender. Be aware that some people do not feel comfortable being addressed with either masculine or feminine pronouns. Instead, some choose “they” or “ze.” Others prefer “name only” — meaning they do not wish to want to be referred to by any thirdperson pronoun, only their given name. 2. Don’t restrict accommodation efforts. “Transgender” refers to people with diverse gender identities and expressions that differ from traditional gender norms. The community includes (among other persons) trans women (male-to-female), trans men (female-to-male), transsexuals, cross-dressers, and gender queer persons (persons who identify with neither, both, or a combination of male and female genders). The obligation on the condo corporation to accommodate extends to all persons in the community. 3. Focus on individual needs and preferences. Accommodation takes on many forms and individualized accommodation plans are advisable. In all cases, however, communicate to the trans person that they will not be required to use separate facilities because of the preferences or negative attitudes of others. Make clear that accommodation o ptions w ill b e prov id e d on an individualized basis. 4. C r e a t e a “z e r o t o l e r a n c e f o r harassment” environment. Property management should promptly and effectively address any harassment of trans residents or employees. 5. Involve legal counsel early. The corporation should seek legal advice early in the process and certainly as soon as any accommodation difficulties arise. Good, proactive advice can assist in meeting accommodation needs and avoiding a discrimination application. 1
www.REMInetwork.com | August 2016 9
GOVERNANCE
Top five condominium talking points The number one complaint at a condominium corporation’s annual general meeting (AGM)
BY SUE LANGLOIS
is quite often poor communication. On the one hand, owners feel left out of the decision-making loop and on the other, board directors lament that residents don’t know the rules, regularly resulting in numerous extra expenses that can eventually lead to increases in condo fees.
10 CONDOBUSINESS | Part of the REMI Network
GOVERNANCE
include information about current usage, fun facts, the benefits of conservation and of course, tips on how to save. 2. Waste management If condominium staff is spending inordinate amounts of time trouble-shooting the chute, a campaign that reminds residents to walk common culprits such as pizza boxes, hangers or oversized bags down to the garbage room for disposal can help reduce extra cleaning supply and repair costs. And simply educating residents that the disposal of regular garbage can cost up to three times more than recyclables can have a huge impact on the condominium corporation’s bottom line.
Good communication in a condominium just makes common and economic sense. Sharing information and educating residents about all aspects of life in their community keeps residents happy and condo fees stable. In most condominium corporations, there are lawyers for legal, engineers for planning, and landscapers for lawns but no position for communication or marketing. Yet good communication planning can drastically cut costs across various budget line items. So, what to do in this situation? Focus on improving communication in the areas that will generate the biggest bang for the corporation’s communication buck. Here are five money-saving campaigns worth considering: 1. Water/energy conservation What residents don’t know about water or energy conservation can mean money down the drain. With the average 10-minute shower using 100 litres of water, it’s no wonder that many condominium corporations cite water as their top expense. To cut costs and stabilize fees, corporations can run campaigns that
3. Balcony safety The physical removal of items tossed from balconies can not only eat into the cleaning budget, but it can pose a time cost for the board/management teams, who must address the associated complaints. Add to that the safety risk posed by discarded cigarette butts and it is clear to see why this issue is an important talking point for many condominium corporations. Safety first! 4. AGM attendance Rescheduling an AGM due to lack of quorum comes with costs, so a simple campaign to get people in the seats can make a difference. What about the time wasted explaining and collecting proxies? Perhaps the overall strategy could include electronic proxies and/or mailing services. The effectiveness of a campaign focused on getting residents to attend the AGM can be measured in the short term by a simple head count, but the long-term payoff can be huge. AGMs are a great way to build community, set the condo culture and improve relations between owners and the board/management team. And crafting notices (such as a save-the-date for the AGM) specifically designed to enhance communication between boards and owners can go a long way towards promoting a fiscally healthy condominium corporation and responsible resident lifestyle.
5. Short-term rental rules With the shared economy on the rise, the phenomenon of short-term rentals has many board directors rushing to determine what is and isn’t allowed in their condominium corporation. On properties that do not permit short-term rentals, clear communication of the rules can prevent wear and tear on amenities and reduce security risks. On properties that do allow short-term rentals, posting the rules is critical to setting parameters that will give the board a sense of control and most importantly, provide legal counsel with valuable information in the event of an incident. Implementing a campaign to get the word out will take some careful thought about the target audience. A three-pronged approach could reach on-site owners considering renting out their units, off-site owners already doing so, and the guests themselves when they arrive at the property. This type of campaign is a long-term commitment to continuously educate not only owners, but the marketplace as well, so it’s important to have a cost-effective plan to achieve the corporation’s goals. No matter the subject of a communication campaign, it’s important to focus on goals, get a strategy in place, implement the plan and then monitor the results. It is through the careful evaluation of the results that further campaigns can be rolled out and tweaked as needed to provide the maximum return on the condominium corporation’s investment in communication. 1
S u e La n g l o i s i s th e fo u n d e r/ C EO of Diginotice, a digital notice board c o mmunic atio n ser vic e fo r c o nd o s seeking to improve their bottom line. A pioneer in the digital condo landscape, Sue was recently elected to the CCIToronto board of directors and serves on the communication committees for both CCI-Toronto and CCI-National. She contributed the Communications chapter of CCI-T’s Board of Directors’ Tips, Tools and Techniques. Sue can be reached at sue@digi-notice.com.
www.REMInetwork.com | August 2016 11
GOVERNANCE
Do you know where your documents are? Ta k i n g m i nute s for c ondo board meetings is a task that not everybody enjoys, but one that
BY MARKO LINDHE AND NOAH MAISLIN
needs to be done in order to meet Condominium Act requirements. As most board members and managers understand, minutes serve to protect unit owners, the board and serve as a reference for decisions previously made and actions that need to be taken. A good set of minutes is typically concise, articulate and covers what was done at a meeting, not what was said. In a previous article these authors discussed the importance of good minutes and how a recording secretary (either a board member, the property manager or a third party) can ensure that minutes are taken correctly and encapsulate all pertinent information. However, once the minutes are recorded, what should a diligent board do with them? Recently, the Toronto condo industry was in the news due to a major probe by the Competition Bureau of Canada into allegations of bid-rigging and conspiracy in the supply of condo refurbishment services. The Competition Bureau asked the Ontario Supreme Court to order roughly 140 condo
corporations in the GTA to produce certain records in connection with the investigation. Although the condo corporations did not appear to be the target in this investigation, they were obligated to comply with the orders and produce the requested records. The order to produce certain records included board meeting minutes dating as far back as 2006. Most well-structured condo boards keep a thorough minute book which contains a meticulous sequence of any relevant records, financial statements and minutes from previous meetings. Making sure they are retained and accessible is imperative;
12 CONDOBUSINESS | Part of the REMI Network
with a united board operating under a wellversed property manager, the task should be relatively straightforward. That being said, this is not always the case. Turnover of individual board members, managers and management companies is common in the condo world. Board members can be removed or replaced by democratic vote when their term expires. Managers can change buildings, and corporations can change management companies entirely — sometimes as frequently as every two years or less. Amid these ongoing changes, the responsibility of keeping records can be
GOVERNANCE
transferred, fumbled, or in some cases entirely lost. Circumstances like this can often go unnoticed or disregarded completely, until a situation comes along in which records are requested. Unfortunately for many condos, once this happens it is too late to effectively backtrack, and panic can ensue. So how can condo boards, managers, and corporations in general avoid such scenarios? The short answer is: establish a proper method for archiving minutes. It seems simple enough, but its importance is not always emphasized. There are several methods that parties can employ in order to ensure that minute books are easily recalled. With the prevalence of technology, digital archiving has become increasingly available. There are several document- hosting platforms that are free and user friendly. A board can add, save and share digital files in the cloud. Some portions of minutes may be subject to privacy laws (and in some cases contain sensitive information). Using password protection to restrict primary access of the minutes and records in such platforms can address confidentiality issues. All board members and the property manager may have the ability to view the hosted documents, but perhaps only the president, the manager and the secretary (as an example) have the ability to upload or amend files. If one of the members with primary or general access is removed from the board, their privileges can be removed and reassigned. Always be aware of who is responsible for managing the documents, as well as who can view them. If a board member leaves, remember to change the password; only a select few should be made privy to it. Having a “back-up” method of storage is imperative, but it’s up to the board to decide how it goes about doing this. Maintaining physical documents may not be fool proof, as it is human to sometimes lose or misplace things, but technology does not take away from the benefits of keeping hard copies either. If the board is against printing and keeping physical copies of minutes in a filing cabinet (which also works), they can be kept on an external hard drive, in a safe and identified location such as the manager’s office. Some boards hire a third party to take their minutes, which removes the task
from the plate of the board or manager. If a corporation is vetting minute-taking companies, it may want to ask about archiving service as another method of storage. The recent orders to produce records in connection with the Competition Bureau inquiry offered a reminder to condo corporations to confirm that they’re taking appropriate measures to ensure their documents are not only secure, but also available. Plus, there’s the perennial
imp or t ance of c ommunic ation and transparency between condo owners, board members and managers, which readily accessible records help support. At the end of the day, taking good minutes is futile if they can’t be retrieved on request. 1 Marko Lindhe and Noah Maislin are partners at Minutes Solutions, a Canadian thirdparty minute-taking company established in 2008. Marko can be reached at marko@ minutessolutions.com or (647) 389-1568.
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FEATURE MANAGEMENT
A call for resources for lone elderly residents Aging in place is a concept that carries a host of positive connotations. It’s typically envisioned
BY BARBARA CARSS
in tandem with a package of support services and accessibility aids to offset health, mobility and sensory challenges, enabling seniors to live safely
and contentedly in familiar surroundings. This can likewise have positive spinoffs for their neighbours and the wider community.
14 CONDOBUSINESS | Part of the REMI Network
FEATURE
“I do prescribe to the belief that behaviour, in general, improves when more than one generation is present,” reflects Constable Tom McKay of the Peel Regional Police, one of Canada’s foremost experts on crime prevention through environmental design (CPTED). “Seniors are potentially very important in terms of presenting eyes on the street in residential neighbourhoods.” A generational mix creates what he terms a “natural supervision/responsibility d y n a m i c” w h i c h m a ke s w o u l d - b e disruptive forces less inclined to act out. Seniors also tend to be present at times of day when it might be assumed easier for antisocial conduct to go unnoticed. Whether looking out their windows, sitting outdoors or congregated in shopping mall food courts, McKay characterizes them as guardians of public space and commonly accessible private spaces, who may also be consciously adept at surveillance. Yet, sadly, property managers often see a reality far removed from this best-case scenario. As with other philosophies of community care, aging in place seems best suited for those who have ample financial resources and helpful family and/ or friends nearby. For seniors on their own with modest fixed incomes, aging in place may simply be the only option, while landlords, condominium boards, property managers and superintendents can be involuntarily cast in the role of caregivers. “We’re finding there is an increasing rate of incidents that relate to aging tenants becoming ill in their suites and not having a network to look after them or even to discover them,” says Randy Daiter, vice president, residential proper ties, with M&R Proper ty M a n a g e m e nt . “ W h e n eve r we c a n , we promptly reach out to emergency contacts, but of ten find that those contacts are unavailable, out of town or outdated, or the resident just didn’t have any to begin with.” A n aging population in a countr y where it’s not uncommon for parents and their adult children to live hundreds or thousands of miles apart fuels the trend. In other cases, lone elderly residents originally moved into their apartments with a spouse and, as widows or widowers, are now dealing with grief and unaccustomed solitude along with physical decline.
“We’re seeing a lot of older people unlocking the equity in their homes. They decide to move into rental housing and that becomes the plan, long-term, until some other situation arises,” Daiter notes. Legal compliance complexities Those situations are rarely straightforward for property owners/managers juggling legal obligations to protect privacy, accommodate disabilities and ensure the health and safety of all building residents. Even intend e d helpful inter vention like asking a social agency to visit and assess an ailing resident could have consequences for disclosing personal information. Sometimes landlords must take harsher steps to evict a tenant before social agencies will get involved — a move unlikely to win accolades from the wider public. The demographic shift is perhaps even more apparent in the condominium se c to r, c re atin g new m an a g e m e nt considerations and priorities. From a lifesafety perspective, for example, building evacuations will be more complicated and time-consuming if a larger share of residents have mobility challenges and would need assistance to negotiate stairs or exit the building. As a practicality, children hiring personal support workers for their elderly parents are advised to ask about fire safety and evacuation training among other qualifications, but proper t y owners/ managers bear the responsibilit y to comply with Ontario’s Fire Code. It mandates at least one annual fire drill in residential buildings, and that a list of all occupants who would require assistance to evacuate be kept with the fire safety plan that firefighters consult when they arrive on-site. “The list is supposed to be updated as needed, which means if someone comes into the building on crutches, the list needs to be updated that day,” reiterates Kevin Boudewyn, principal of Boudewyn Training & Consulting and a firefighter with Toronto Fire Services. “Does that actually happen? Not often enough.” Other non-compulsory documentation is also recommended, both for due diligence and as a good management p r a c tic e fo r as sistin g resi d ent s in emergency situations.
“In the tenant screening process or as part of the condo rules, it’s helpful if there is a requirement on the resident to provide detailed contact information for emergency contacts, including powers of attorney and family members,” advises Joe Hoffer, a partner and specialist in residential tenancy and municipal law with Cohen Highley LLP. “There should also be a consent to release of personal information in the event that the board or landlord reasonably determines that the resident may need assistance from a social service agency or a health care provider. This avoids liability for breach of privacy.” Never theless, Daiter reminds emergency contacts that the Residential Tenancies Act remains the guiding authority. “Often we will get calls from concerned friends or family who want us to go into a unit and check on one of our tenants, but we can’t just do that,” he says. Sensitive management required Human rights legislation broadly mandates accommodation of disabilities, but details of enforcement vary depending on the specifics of each case. Concerns about the health and safety of other residents can supersede individual rights. Indeed, the occupier’s duty of care would make landlords or condo boards liable if they failed to address a foreseeable safety hazard. S eniors’ reduced mobilit y, vision and/or hearing impairments can trigger requirements to accommodate, which will likely also come with capital costs. Meanwhile, issues related to residents with A lzheimer’s or other t ypes of dementia c all for a high degree of sensitivity as managers strive to be sympathetic and respectful while fulfilling responsibilities to the larger occupancy. Hoffer cites examples of dementia sufferers verbally abusing and physically threatening their neighbours, throwing items of f their balconies or simply getting to a stage where it’s risky to be unsupervised. Notably, landlords and condo boards also have a duty of care to guard against residents with dementia causing harm to themselves. “Under the Human Rights Code, the primary duty of the landlord is to ensure
www.REMInetwork.com | August 2016 15
FEATURE
“Sometimes, we almost become the de facto social worker.”
the tenant is able to reside in the rental unit and to take steps to make such residency accessible. That might mean installing automatic door openers if a tenant has a mobility issue,” he says. “But let’s say the issue is that a resident keeps causing fires by careless smoking or cooking. Then, because human health and safety is in question, steps must be taken to terminate the tenancy.” Ontario’s Residential Tenancies Act and Condominium Act afford the opportunity for rental housing owners to appeal to the Landlord and Tenant Board or for condo boards to argue their case before a Superior Court Justice. Condo boards that secure a removal order would also be able to recover costs through proceeds from the sale of the unit. Still, Hoffer warns it is a long and often disheartening process. “Each case turns on its own facts so the strategies for dealing with standard of c are and accommodation of the person creating the risk will differ,” he explains. “If proper standards are taken to accommodate the individual, but the individual refuses or is incapable of mitigating the safety risk to others, then the scale tips in favour of the housing provider and termination/eviction will be granted.” Ultimately, eviction or termination is an outcome that no one likes to see. It’s not uncommon for landlords to make extra efforts to help — Hoffer recounts how one of his clients helped a tenant find a new wheelchair-accessible apartment and paid for her moving expenses; Daiter tells of recently arranging for someone to feed an elderly tenant’s cats while she was in the hospital — that aren’t part of the dayto-day business of property management. “Sometimes, we almost become the de facto social worker. We do make a valiant effort to assist tenants who find themselves with no one to turn to, but we need to tread carefully as this is not our area of expertise,” Daiter says. “It would be great if there were more social support resources that could be easily tapped into when the need arises. From what we’re seeing, a lack of support networks is one of the worst parts of aging.” 1 B arb ara C arss is e d ito r- in - c hief of Canadian Property Management. The preceding article originally appeared on the REMI Network.
16 CONDOBUSINESS | Part of the REMI Network
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MAINTENANCE MANAGEMENT
Sanitation for spaces shared by seniors In September 2015, Statistics Canada data showed that while the
BY PAUL GOLDIN
country posted annual population growth of less than one per cent, the number of Canadians over the age of 65 continued to increase significantly. There are now more people over the age of 65 than under the age of 15 in Canada.
With life expectancies of up to 80 years for many Canadians, this means more housing developments of all kinds will be needed to accommodate seniors. These developments will likely fall into one of the two following categories. Independent living is where seniors live in separate spaces such as condos, townhouses, or apartments. They likely have their own kitchenettes and shared common areas. (See sidebar: Why worry?) The standard assisted-living arrangement is apartment style. Typically, there are no kitchens in the individual spaces, often for safety reasons. They also have shared common areas. These “shared common areas� may include kitchens, where food is prepared for some or all residents; large living or meeting rooms; play rooms; dining rooms; possibly theatres, along with gyms and pools. These community areas enhance the social lives of residents, whether
18 CONDOBUSINESS | Part of the REMI Network
they own their own condo and live independently or live in an assisted arrangement. If disease-causing germs and bacteria are present in housing with significant seniors populations, they most likely will be found in these high-traffic shared common areas. Germs and bacteria can be a serious problem for both the residents and staff members who work in these shared common areas. Older people have weaker immune systems, so they may be more adversely affected by germs and bacteria that may not cause illness in a younger person. Also, older people may have mobility issues and use these areas more than a younger person would. Plus, disease can spread much faster in these shared common areas. The staff is not immune to illness. A U.S. study by the Family Care Alliance found that nearly 20 per cent of caregivers report
MAINTENANCE
WHY WORRY? Administrators of independent living centres may not worry about shared common areas because seniors own their condos and often take their meals on their own. But being more active, they are more likely to use the health-club style facilities — pool or gym areas and equipment. Like their public-sector counterparts, these areas demand careful attention to avoid the spread of germs and bacteria.
their health has suffered because of working in a senior housing facility. This is often due to the added stresses of working with and caring for older people. And when a staff member becomes ill — or takes days off because they believe they may be ill — it means the remaining staff must pick up the slack. This can lead to more sickness, starting an unfortunate vicious cycle. Very often in senior living centres — whether condos with large elderly populations or assisted living — staff takes action after it becomes clear that an illness is spreading. However, the best way to deal with this type of situation is to address illness before it surfaces. Common sense prevention There are a number of common sense prevention steps all types of senior living centres can take. For one, encourage everyone to get the flu shot every year. Then, if a resident gets sick, ask them to stay in their own independent or assisted-living space. Likewise, if staff members get sick, ask them to stay home. For another, educate everyone — staff, residents, and visitors — on the importance of frequent hand washing or hand sanitizing. Also teach residents and staff how to wash hands properly. Lastly, install antibiotic hand sanitizers. Note: Sanitizers do not clean hands; they just reduce the germs and bacteria present at the time of use. Cleaning prevention There are also a number of cleaning prevention measures senior living centres can take. Very often shared common areas where people meet for activities or gather for meals are cleaned as if they were in an office building, meaning no disinfectants or special cleaning strategies are typically used. These shared common areas should be treated as if they were part of a healthcare facility. The spread of infectious diseases in senior living facilities is preventable through an effective cleaning and disinfecting program. Design the program to help eliminate harmful bacteria and viruses on frequently touched surfaces in shared common areas, including furniture (especially the arms or tops of chairs), countertops, tables, trays, wheelchair wheels, washroom tiles, walls, and mirrors. Other “critical touch points” that need cleaning attention include: light switches; TV remotes; shared telephones and computers; doorknobs and intercoms; faucets, restroom counters and fixtures; gym equipment; railings; elevator buttons and call buttons of any type. Disinfectant guidelines Whenever possible, consider using green-certified disinfectants, which have been proven effective and have a reduced impact on the user and the environment. In Canada, many of these disinfectants have been
certified by EcoLogo, now known as UL Environment. Also look for a “broad-spectrum” disinfectant with a broad range of kill claims. A hospital-grade disinfectant can help keep the use of powerful disinfectants to a minimum.* And a product with a higher parts per million (PPM) at similar dilution rates is typically a more costeffective choice. The regular use of disinfectants in these shared common areas is only effective if these products are used properly. When using a disinfectant, the surface must be cleaned first to remove soils, and then cleaned again with a disinfectant. And don’t forget to follow the dilution ratios and dwell time, as surfaces must remain wet during the dwell time. As Canada’s senior population swells and elderly residents opt for condo living, property managers and maintenance staff have an obligation to their residents to stop the spread of disease-causing germs and bacteria in shared spaces. The common sense and cleaning prevention tips outlined above are designed to do just that. 1 Paul Goldin is vice president, professional cleaning solutions, at Avmor, a leading Canadian manufacturer of green and sustainable cleaning solutions. He can be reached via his company website at www.avmor.com. *The kill claims of a disinfectant can be found on the label and printed material supplied with the disinfectant. As an example, the printed material on one disinfectant indicates the following: Effective for use against Herpes Simplex Type 2, Influenza Type A2 and HIV-1 (Human Immunodeficiency Virus).
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COVER STORY
THE ONE PER Fifteen years after it was introduced, court-appointed administration remains an extraordinary measure. Although rare, its use to date may be instructive for condominium corporations that wish to avoid or overcome the kinds of crises that lead courts to suspend the governing powers of democratically elected boards BY MICHELLE ERVIN
COVER STORY
R CENT
www.REMInetwork.com | August 2016 21
COVER STORY
It was added, along with many other changes, to Ontario’s Condominium Act in 1998, but wouldn’t take effect until three years later. Section 131 gives the courts the ability to appoint an administrator to take over some or all of the authorities and duties of the board of directors if a corporation becomes ensnared in crisis, dysfunction or misconduct. Fifteen years after it came into force, the extraordinary measure remains just that —
extraordinary. The court’s test is a tough one for an application to meet. It must be in the best interests of unit owners as well as convenient and just with regard to the intent of the legislation to suspend the governing powers of a democratically elected board of directors. The number of cases to date where the courts have appointed administrators are so few that they likely represent one per cent or less of Ontario condominium corporations,
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industry experts estimate. So, there is no playbook (nor are there standards under the act) for those who are recruited to return these communities to legislative compliance as well as fiscal, governmental and physical health. But, experts add, these communities are the exceptions, so the rules wouldn’t apply anyway. Although court-appointed administration is rare, understanding how corporations enter and exit this temporary state of affairs may be instructive for those who wish to avoid or overcome such crises. The application to the courts The paradox of cour t- appointed administration is that the Condominium Act makes self-governance paramount. However, it’s precisely because selfgovernance is so important to the function of corporations that the legislation requires this safety mechanism. “You can’t move forward with a condo without a board,” explained Brian Horlick, a partner with Horlick Levitt Di Lella LLP. “And if the board that’s in place is not following the Condominium Act, or you cannot get people interested inside or outside your community to run for the board, what are you going to do?” It’s a draconian measure, he said, which is why the courts demand compelling evidence of the need to appoint a third party to temporarily assume authority over the affairs of the corporation. Some examples of circumstances that have led to successful applications include financial mismanagement leading to underfunded reserves and physical deterioration of major building components. An application for court- appointed administration can come from either an owner’s group or the board itself, if a majority of its members conclude that they are unable to function. “What the courts don’t want to see is some boards have tried to use this provision not in the best interests of the condo, but in the best interests of themselves,” Horlick said. The condominium lawyer cited a case in which a board of directors that had lost the confidence of its community asked the courts to appoint an administrator in an effort to circumvent an owner-requisitioned meeting. The judge, realizing this, denied the application.
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COVER STORY
“What the courts don’t want to
see is some boards have tried to use this
provision not in the best interests of the condo, but in the best interests of themselves.” The terms of administration In cases where a court approves the application, the judge must also establish what powers the administrator will take over, and for how long, as well as any other directions deemed necessary. Once appointed, the administrator is required to report back to court at regular intervals. And at the end of the prescribed term, he or she can request an extension to complete the assignment if required. The party that applied to the court for the appointment of an administrator normally submits one or two names of people as recommended candidates for the role. The Condominium Act contains no criteria as to who is eligible to serve as an administrator. Horlick said that the general profile for a good candidate is a person who possesses all the knowledge and skills of a property manager, including an understanding of everything from accounting to building systems, but that isn’t currently working as a property manager.
He noted that a condominium corporation under court-appointed administration retains a property manager. That’s because, even if the administrator has property management experience, his or her role is to oversee duties and responsibilities of the board — not to manage day-to-day operations. John Oakes, CEO of Brookfield Condominium Services, pointed out that there have been cases where law yers have served as a court-appointed administrator. However, given the expense of hiring a court-appointed administrator, he suggested that a person with a property management background would probably be the most cost- effective option — especially considering the corporation may already be in financial distress. Oakes fits the profile of a court-appointed administrator, so it’s no surprise that he’s currently serving as one. Although, he clarified
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COVER STORY
“They’re not going to be best friends
— they previously had strong words for each other — but at least they’ll go to an AGM or an owners meeting and listen to everyone’s opinion without yelling and screaming.” that he isn’t presiding over the typical circumstances that lead the courts to temporarily assign board governance to a third party. He’s resolving legal issues in a hotel condominium. The work of an administrator In the typical scenario, where a corporation has avoided fee increases (or even reduced fees over multiple years), underfunded the reserve and faces major repairs, the impetus is to complete critical work. It requires a phased approach, asserted Oakes, one that balances the need to fix or replace failing building components with the ability of unit owners to cover the cost of any shortfalls. “If you raise the fees, or increase the contribution to the reserve fund, or go out and finance projects, it puts such a financial burden on the owners that they can’t afford it,” he illuminated. “As a result, you’re going to have people trying to get out of the building and significant drops in the value of units.”
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Robert Buckler, founder of Beredan Management & Consulting, has used non-binding polls to determine whether the community prefers fee increases, special assessments or a combination of both, when they’re necessary. The condominium consultant has served two stints as a court-appointed administrator. With support from management, Buckler begins his assignments by investigating the corporation’s circumstances, and then develops an action plan based on what he finds. This period of distance also helps to establish his impartiality despite having been selected by either the corporation or an owner’s group. “It’s not exactly explicit, but implicit is the payback that, ‘We got you in, so how are you going to help our cause?’” he acknowledged. “You make clear once you’re appointed, ‘I definitely thank you for this opportunity, but I’m going to work in the best interests of the whole condo and all owners.’” After investigating and developing an action plan, the condominium consultant turns his focus to communicating with and involving unit owners as much as possible in the affairs of the corporation. And when the situation is under control, he encourages owners to participate in committees and works to mend fences. “In some case we have [held events] and it’s helped heal the community,” said Buckler. “They’re not going to be best friends — they previously had strong words for each other — but at least they’ll go to an AGM or an owners meeting and listen to everyone’s opinion without yelling and screaming.” The return to self-governance One of the difficulties, said Horlick, is determining the appropriate time to return a condominium corporation to self-governance. The courts are always eager to restore decision-making authority to community members, but they have to be cautious. Those who played a role in the circumstances that led to administration may be biding their time on the sidelines. “They want to go back to the good old days, so you have to be very careful that the administrator doesn’t leave too soon,” he elaborated. In a landmark Ontario case, said Horlick, the judge asked the condominium corporation to hold a referendum to see whether the community wanted its self-governance restored. A majority voted in favour, so the judge respected its will. Although, technically speaking, the legal test is, again, whether terminating court-appointed administration is in the best interests of owners and convenient and just with regard to the scheme of the Condominium Act. One way to prepare condominium corporations for the return to selfgovernance is by planning for succession before the transition begins, which is exactly what Buckler does. Once a community is back on
COVER STORY track, he hosts in-house education sessions to walk interested unit owners through what it means to be a board member. That includes discussion of the condominium documents and the difference between a board member and property manager as well as how to read monthly financial statements and run board meetings. Buckler’s barometer for when the administration should come to an end is based on the owners being ready to govern responsibly and the work of crisis management being complete. He pointed to projects with a payback, such energy-efficiency retrofits, as examples of discretionary initiatives that would rightfully be up to unit owners to pursue. “Anything extra that would delay the transfer of governance because of the complexity of a project that’s undertaken, or that really is up to the resident if it will have an impact on them directly in the long term, should be left in their hands, once the board is back in place,” said Buckler. After the board is back in place, he watches for a recovery in unit resale values and the stability of the board and property management, among other indicators, as signs of a successful administration. The lessons to date from administration In communities where fees have remained flat year after year, the increases required to replenish the reserve to adequate levels will be steep. Consequently, Oakes conceded that it may not be possible to complete the critical work that needs to get done in a condominium corporation under administration without stretching owners’ pocketbooks to the point that some decide to sell. “I’m sure some administrators would tell you it can’t be done,
because they’ve tried it,” he said. “Every building is unique, every situation is unique, so you can’t generalize; you can’t read a textbook and say, ‘Okay, here’s what we have to do.’” If there are any widely applicable lessons, one may be that fee levels and maintenance levels need to be carefully weighed in respect of one another, because there are tradeoffs. And the fact that most condominium corporations operate without being placed under courtappointed administration hints to Oakes that many boards of directors are finding that balance. Property managers can do their part to guide corporations in the right direction, but it’s hard to stop a board that is intent on charting its own path. In fact, Oakes likened running a condominium to steering a cruise ship. “If you leave New York for London in a cruise ship and you get off course by a few degrees when you leave the port, you’re going to end up in Iceland,” he said. “It’s a hell of a job to turn that ship back onto course without some significant impact on everybody on the ship.” While it’s certainly easier to stay the course in a condominium corporation than to course correct, there is hope for communities that find themselves in that rare position of requiring court-appointed administration. Horlick held up the example of a townhouse community that had fallen into a disarray of dysfunctional governance, financial irregularities and physical deterioration. “We were able to get an order there for an administrator,” he recalled. “We were able to build up the reserve fund; we were able to fix the roofs; we were able to fix the basements. “When the administrator left, it was going great. It was a tremendous success story. They don’t all work out that way.” 1
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Underfunded reserves: Half empty or half full? In an ideal world, BY JEREMY TAYLOR condominium ow ners a re satisfied with the way their corporation is run, fees
are comparable to the condominium down the street, major repair and replacement projects are well-managed, and the reserve fund maintains a healthy balance. Then again, in a perfect world, condos never leak! The unfortunate reality is that many corporations have underfunded reserves, which can limit available options.
26 CONDOBUSINESS | Part of the REMI Network
FINANCE
following, and whether or not the reserve fund study consultant has endorsed it. Other provinces have no such requirement for “adequac y” in their respec tive legislation.
An underfunded reserve is one where the reserve fund contributions are not enough to cover the expenses expected to crop up over the span of the reserve fund study. T his puts the long -term durability of the property at risk, will usually diminish proper t y value, and may compromise safety. Ontario’s legislation only loosely defines what constitutes an “adequate” reserve fund. The Condominium Act requires the board to review the reserve fund study and propose a plan for future contributions that ensures the fund will be adequate for the prescribed time period of the study. Most interpretations of the act suggest this means that contributions should be fair and uniform to present and future owners, over the life of the property. To a c hieve t his , t h e c o r p o r ati o n should be setting aside enough money to cover annual expenses while limiting annual increases to contributions to the rate of inflation. This results in equitable payments for current and future owners. T h e a c t f u r t h e r re q u i re s b o a rd s to declare what funding plan they’re
Why the reserve is underfunded There may be many different reasons that a reserve account is underfunded. Common reasons include: The board adopts a funding plan not endorsed by the reserve fund planner; major projects must be completed sooner than anticipated in the reserve fund study (therefore there is less time to save for these expenses); and project costs run higher than was budgeted for in the reserve fund study. Let’s look at each of these scenarios. The board does not adopt recommended plan. Outside of Ontario, there is no direct link between the funding plan(s) in the reserve fund study and the funding plan the board actually adopts. For example, in Alberta and British Columbia, the board is required to approve a plan, but not necessarily one of the plans provided in the reserve fund study. There is also no requirement to disclose whether the plan the board has adopted was endorsed by the reserve fund study planner. If the recommended plan will require an increase in contributions, the board may be pressured to generate an alternate plan which avoids or defers the increase. Projects must be completed sooner than planned. Restoration planning for a reserve fund is based on the average lifespan of systems and components. Of course, reality rarely complies. In some cases, major systems will last longer than normal. In cases
where a major repair or replacement is required sooner than expected, the corporation loses time to build up the reserve, and so may fall short. Project costs are higher than anticipated. The reserve fund study is not intended to generate specification-level pricing. The analysis is based on a visual assessment, a review of the performance and repair history from board members, property management and service contractors, and a review of construction drawings and past reports. With this high-level information, the reserve fund study consultant provides order- of- magnitude opinions of cost. These should be accurate within about 25 per cent. The reserve fund study will identify what components require additional evaluation to prepare more accurate budgets, one to three years before the expenditure is planned. Without these detailed condition assessments, actual repair costs may vary considerably, but detailed reviews are not always done. How to make up the shortfall The good news is that if the reserve is underfunded, it’s possible to remedy the corporation’s position. First, analyze the cash-flow shortfall. Several variables influence the cash flow in this financial analysis. The most important variables are the critical year, the interest/inflation rates and the phase-in period. The board sets a minimum balance that the reserve fund should remain above over the term of the study. This is an important contingency against unexpected repairs. The analysis will yield a “critical year” where the reserve fund reaches its
www.REMInetwork.com | August 2016 27
FINANCE
While in the long term the best way
to make the required increase is right away, current owners rarely appreciate a large jump in contributions within a single year. lowest point (i.e. the minimum balance). The timing of the critical year has a big impact on cash flow. If the critical year is close (within about 10 years), then the corporation has less time to save up for large repair projects and the recommended increase may be steep. The required contributions can be reduced if projects are moved past the critical year. The analysis is an iterative process, so the critical year gets re-calculated and may actually be pushed out. But not all repair projects should be deferred. What projects have tolerance? Discretionary projects, such as those based primarily on aesthetics, can often be moved or scaled back, especially since renovation costs have risen dramatically in recent years. For example, rather than a full corridor renovation, consider only replacing the carpets, repainting the walls, or replacing lighting (which is also an opportunity to reap energy-efficiency incentives). Similarly, major restoration of structural components (such as balconies and parking garages) or building envelope components (exterior walls, windows, doors and roofs) can sometimes be significantly deferred by completing targeted repairs. That’s provided that there is tolerance for more frequent repair intervals and a potentially patchwork appearance. Some mechanical equipment c a n a l s o b e m a int a in e d b eyo n d a typical lifespan by replacing individual components. Work with the condominium’s property manager and reserve fund study consultant to identify these projects, complete detailed evaluations where necessary, and discuss the advantages and disadvantages of targeted repairs and local replacements compared to general replacement. The required contributions are also
sensitive to the difference between the assumed interest and inflation rates used by the analysis. When the critical year is close, using the interest rate that the fund is currently achieving avoids overstating the projection for interest earnings. If the critical year is far off, using the current rates penalizes owners, as the long-term (30-year) average is normally much higher. Higher reserve fund balances can also command higher interest rates. If annual contributions are too low, increases will be required. While in the long term the best way to make the required increase is right away, current owners rarely appreciate a large jump in contributions within a single year. When a large increase to reserve fund contributions is required, it can often be phased in over several years while still meeting the intent of fair and uniform contributions. Limiting the phase-in period to about three to five years provides disclosure to existing unit owners and potential purchasers. What other options are available Sometimes t weaking variables in the funding analysis doesn’t produce a workable plan, or the shortfall is too great. Fortunately, other funding options can be employed. They include special assessments/levies and loans. Sinc e t h e s e o p t i o n s i m p o s e a n additional burden on current owners, t h ey a re u su a ll y c o nsi d e re d a l a s t resor t, but they do not have to be. Creative use of a low - interest lo an can effectively reduce a corporation’s shortfall while maintaining manageable annu al c o ntr i b u ti o ns . T he p ro p er t y manager can help the corporation work with a condominium lender to prepare a funding plan that is fair for current and future owners. If the pessimist would say the reserve
28 CONDOBUSINESS | Part of the REMI Network
is half empt y, perhaps the optimist would ask “Is the reserve fund half full?” Increased contributions to the RF could represent opportunities. If the corporation has been making lower than necessary contributions, age and wear may be showing, so chances are the corporation has a lower market value. Increasing RF contributions allows for major repair and replacement projects to be completed. This renewal adds value for those who continue to live and work at the condominium and for those planning to sell. Leading up to repair/replacement projects, speak with the property manager and reserve fund study consultant; there are almost always opportunities — for energy savings, more durable systems, more efficient equipment, easier to maintain/repair equipment, and so on. Completing an energy audit in conjunction with the reserve fund study can help form a holistic and practical plan. Knowing what goes into the reserve fund study allows the corporation to make the most of what comes out. Maintaining a financially healthy reserve fund requires not only technical knowledge but an understanding of the needs of the board and unit owners. When the board has a clear vision for the corporation, its reserve fund consultant can help act as a guide along that path. 1
J e re m y Ta y l o r i s a tec hnic al lead a n d p ro j e c t m a n a g e r a t W S P. A structural engineer by training, his ex p e ri e n c e i n c l u d e s re s e r v e fu n d studies, performance audits, property condition assessments, and evaluation, specification, and construction review of structural and building envelope systems. He can be reached at jeremy.taylor@ wspgroup.com.
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2016-06-24 8:59 AM
MANAGEMENT
An executive reflects on the 1998 Condominium Act reforms and their implications today O ver the last 35 yea rs, the c on d o m i n iu m management
BY SHLOMO SHARON
industry has witnessed many changes as more condominium buildings have been constructed. One of the biggest changes occurred when the 1998 Condominium Act replaced the 1978 Condominium Act. The previous Act contained few guidelines, leaving many grey areas in the operation and management of condominium corporations, as well as for consumer protection. As a result, owners became a lot more vocal about the way their communities were being managed. The 1998 Condominium Act was helpful to a point. It protected new condominium owners by outlining who was responsible for
managing the corporation, including the role of management companies. It also defined the duties and responsibilities of the board of directors and the expectations of residents and owners. However, the Act did not cover many internal issues, such as how to resolve disputes between owners and the board/ management. For example, the courts are the only avenue available to an owner who
30 CONDOBUSINESS | Part of the REMI Network
disagrees with a decision made by the board/ management and is unable to resolve it with them. Turning to the courts is very expensive and many owners cannot afford it. With a new set of changes to the Condominium Act recently passed (but not yet proclaimed into law), it’s a good time to reflect on what happened during the last round of reforms. In 19 9 8 , for the first time, the
MANAGEMENT
Condominium Act mandated developers to give purchasers greater disclosure concerning proposed condominiums. That disclosure included the terms of the amount and the timing of the down payment as well as the interest on the unpaid balance of the purchase price that would come due to the developer during the interim occupancy (the period between the occupancy of the units and the time of the condominium corporation’s registration). As well, the Act required the developer to properly notify the purchaser of any delay in the occupancy timeline. Despite this, owners continue to experience delays in the timing of the occupancy and misunderstand the HST requirement at closing to this day. This contributes to a foul mood and mistrust of anything the developer does, justified or no. Also new in 1998 was the performance audit process following the registration of the condominium corporation and the role of Tarion in resolving disputes between the owners and builder. Tarion was established in 1976 to protect the rights of new home buyers and to regulate new home builders. Tarion has come under fire as some owners have questioned its objectivity. At times, this has put the property management company in the position of acting as referee between the owners and Tarion. One of the biggest changes to the Act in
1998 was the new requirement for reserve fund studies every three years. The studies were to be conducted by a professional independent engineer/architect, who would calculate what amount should be contributed to the reserve fund to cover major repairs and replacements of the corporation’s capital assets when they came up. Before then, the Act required that a minimum of 10 per cent of the operating expenses be contributed to the reserve fund, without any reference to the structural, mechanical, electrical or any other components of the buildings. While the requirement to conduct regular reserve fund studies helped to reduce the need to special assess owners, it also created confusion. Owners did not always fully understand what was required, why it was required and the separation between the cash reserve bank account and cash operating bank account. As well, the Act introduced rules in 1998 governing where the reserve fund may be invested and a mechanism to deal with any additions, alterations and improvements to the common elements. The mechanism required the owners’ approval to undertake certain changes to the common elements. Specifically, the Act set a threshold of twothirds’ support from unit owners for any substantial changes to the common elements to proceed.
Even all these changes, among others, have not been able to cover all the situations that arise in condominium corporations, such as the investment criteria for the reserve fund, which is currently very limited. And as the number of condominium communities have increased, so have the issues that cannot be anticipated within the condominium corporation and that may require a periodic review and update of the Act. The current environment in Ontario condominiums prompted a review and update of the Condominium Act as well as a review of Tarion’s performance. This, together with new condominium case law, is a testament to the challenges that the players in the life of a condominium corporation continue to face. While the 1998 Act was a good attempt to regulate and deal with condominium corporation issues, it can only be a benchmark that needs to be built upon in order to deal with future life of condominium corporations. The latest set of changes to the Condominium Act reform the existing legislation rather than replace it, leaving the details to the regulations to make it easier to update as needed. 1 Shlomo Sharon is CEO of Taft Management Inc. He can be reached at shlomos@taftforward.com.
www.REMInetwork.com | August 2016 31
MANAGEMENT
What’s your (personality) type? Ever wonder why a member
BY MICHAEL LE PAGE
of the condo corporation prefers to communicate in a certain way? Why a fellow member of the property management team has certain work preferences? Why someone’s office is neat and tidy versus one’s own office, which is the exact opposite?
32 CONDOBUSINESS | Part of the REMI Network
MANAGEMENT MANAGEMENT
The answer is as simple as it is complex. It is because all individuals are unique and have distinct personalities. Personalities impact how people work, how and when people play, how people communicate, what people value, what s t re s s e s a n d f r u s t r a te s i n d i v i d u a l s and what brings individuals joy and happiness. Having an increased awareness of one’s own personality and that of others can help improve communication, connectivity and build stronger relationships. And it is impor tant for management companies to build solid, l o n g - l a s t i n g re l a t i o n s h i p s w i t h t h e communities they serve. To b e s t s e r v e c o m m u n i t i e s a n d individuals, firms must first understand
the indiv idu al and und erst and their community. One way to do this is to complete a personality assessment and subsequent training on how to capitalize and leverage this information. The writer’s firm uses the Canadian assessment tool Personality Dimensions ®, which is based on leading - edge research into what motivates behaviour in people with different personalities or temperaments. The tool helps users understand why they behave the way they do and why they don’t always see and do things the same way as others, using colours, descriptive words and symbols to identif y those preferred temperaments.
The four basic personality types are described as follows: 1. The Authentic Blues are ethical, honest and sincere and have a great ability to persuade and facilitate organizational growth and development. However, they are extremely sensitive to criticism and conflict. 2. The Inquiring Greens are logical, rational, global and strategic thinkers. To others they can come across as impatient and arrogant. 3. The Organized Golds are task-oriented, dependable and reliable, possess a strong sense of right and wrong, but can be rigid and resistant to change.
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LEGAL MANAGEMENT
“One board of
directors may
prefer to provide loose guidelines. The next board of directors may prefer to provide detailed instructions.” 4. The Resourceful Oranges are independent, resourceful, and competitive and can think well on their feet. Although they are easy going and entertaining, they can act too quickly and may not follow through. Through training, participants learn how to understand and appreciate differences, and capitalize on them rather than view them as faults to be fixed. E xperience has shown that this c an be an ef fective management training tool, helping company executives in facilitating team building; increasing corporate communications; and enhancing customer service and satisfaction by providing
innovative solutions to common problems encountered by property managers. Employees learn how to use practical tools to effectively manage people issues, coach staff to solve interpersonal problems and stop minor conflicts from escalating. The strategies for communicating and identifying problems covered by personality training can improve interpersonal skills in all aspects of one’s life (work, home, family and school). The strategies also equip staff to deal with diverse communities. For example, one board of directors may prefer to provide loose guidelines and give the property manager the freedom to try new ways of getting the job done with minimal feedback. The next board of directors may prefer to provide detailed instructions and give the property manager strict timeframes with very little room, if any, for anything other than its specific direction. The property manager can very easily take the latter personally and allow this misconstrued “personality conflict” to taint the relationship. With training, it’s possible to depersonalize these situations by “speed reading” others, recognizing different personalities, and altering communication to ensure that messages are received as intended. In this writer’s experience, personalit y assessment and training has led to improved work performance, more effective team building, enhanced cooperation and workplace relationships, improved morale and retention, decreased conflict within departments, improved critical judgement and greater customer service and satisfaction. It’s important for management companies to recognize what clients want and need, and deliver it to them in a way that they would like to receive it. Personality assessment and training is one way to support that goal, and more broadly, can offer a competitive edge and attract quality management professionals. 1 Michael E. Le Page, R.C.M., is president of Maple Ridge Community Management Ltd., an Associa company and an ACMO 2000-certified firm founded in 1984. MRCM invests heavily in employee development, through industry-related courses and its exclusive L.E.A.D. program (Leadership Evolution and Development). For more information, contact Michael at mlepage@ mrcm.ca or visit www.mrcm.ca.
34 CONDOBUSINESS | Part of the REMI Network
AODA update: Employment standards The Accessibility for Ontarians with Disabi l it ies Ac t (AODA) is
BY DOUG MACLEOD
constantly changing. Employers must comply with new obligations under AODA by July 1, 2016 and January 1, 2017. How do condo corporations and property management corporations do that?
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LEGAL
The Accessibility for Ontarians with Disabilities Act (AODA) is constantly changing. Employers must comply with new obligations under AODA by July 1, 2016 and January 1, 2017. How do condo corporations and property management corporations do that? Employment Standards Regulation: January 1, 2017 The most important amendment to AODA that applies to employers with one to 49 employees takes effect on January 1, 2017. The Employment Standards Regulation applies to small employers such as condo corporations and property management corporations. Here are the 11 new obligations that are being imposed on employers: 1. A ll employers must notif y jo b applicants that, where needed, accommodations for disabilities will be provided, on request. 2.
All employers will notify job applicants who have been invited to participate
in a recruitment, assessment or selection process that, where needed, accommodations for disabilities are available, on request.
7.
Employers are required to develop individual accommodation plans for employees with disabilities of which they have been made aware.
3. All employers will notify successful a p p li c ant s of their p o li c ie s fo r accommodating employees w ith d is a b ili tie s w he n of fe r in g employment.
8. Employers will have in place a documented process for supporting employees who return to work after being away for reasons related to their disabilities.
4. All employers will inform new and existing employees of their policies for su p p o r tin g em p l oye es w ith disabilities.
9.
5. A ll employers will consult with their employees who have disabilities in order to provide them with the accessible formats and c o m mu ni c at i o n s su p p o r t s t h ey require to do their jobs effectively.
10. E m p l o ye r s t h a t p rov i d e c a re e r d evel o p m ent an d a d van c em ent opportunities will take into account the accessibilit y needs of their employees who have disabilities.
6. All employers will prepare for the specific needs that employees with disabilities may have in emergency situations.
All employers that use performance management processes will take into account the accessibility needs of employees with disabilities.
11. A l l e m p l o y e r s t h a t u s e redeployment processes will consider the accessibility needs of employees with disabilities when moving them to other positions.
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LEGAL
Experience suggests that many
small employers have not provided AODA training to employees. Experience suggests that most small employers do not currently prepare a n in d i v i d u al a c c o mm o d ati o n p l a n for a disabled employee who seeks accommodation. Accordingly, ever y employer should develop the framework for an individual accommodation plan. U n d e r t h e Em p l oy m e nt S t a n d a rd s Regulation, this accommodation plan must address eight specific issues. Ontario Regulation 165/16: July 1, 2016 Before the Emp loy ment St and ards R e g u l a t i o n t a ke s e f f e c t , a n o t h e r r e g u l a t i o n — O . R e g . 16 5 / 16 — takes effect on July 1, 2016. It will consolid ate all of the accessibilit y standards in the Integrated Accessibility Standards Regulation. Thereafter both small (one to 49 employees) and large (more than 50 employees) organizations will be required to do the following: 1. Training C u r r e n t l y, o r g a n i z a t i o n s a r e o n l y required to provide customer service training to employees and volunteers who deal with third parties, and those w h o p ar tic i p ate in d evel o p in g the organization’s policies. However, the new regulation will require organizations to, as soon as practicable, train: (a) all employees and volunteers; (b) ever y
person who participates in developing the organization’s policies; and (c) every other person who provides goo ds, services or facilities on behalf of the organization. Experience suggests that many small employers have not provided AODA training to employees. All employers, including condo corporations, should do so as soon as possible. There are a number of no or low-cost online training options. 2. Documenting accessibility policies, practices and procedures Currently, organizations with 20 or more employees must “document” their customer ser vice policies, practices and procedures, and make a copy of that document available on request. However, when this regulation t akes ef fec t , this requirement will only apply to organizations with 5 0 or more employees. In other words, organizations with 20 to 49 employees are no longer required to document their customer ser vice policies, practices and procedures. This amendment is good news for organizations with 20 to 49 employers who did not comply with their obligations to document their customer ser vice accessibilit y policies. These organizations are no longer required to
SINCE 1987
comply with these obligations. All organizations with 20 or more employees must confirm their compliance with the above requirements by submitting an accessibility compliance report by no later than December 31, 2017. Press reports suggest that more than 60 per cent of organizations are not currently complying with AODA . T he Ontario government is now checking to see whether organizations have filed this report, so organizations should make a note to file their accessibility compliance report by December 31, 2017. 1 For more than 25 years, Doug MacLeod of the MacLeod Law Firm has been advising employers on Ontario’s employment laws. He can be contacted at 416 317-9894 or at doug@macleodlawfirm.ca.
Find the latest on legislative updates at
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Phone: 416-234-9901 | Email: info@cordeiroroofing.com
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Reserve Fund Studies Performance Audits Condition Assessments Specifications & Tendering Forensic Engineering Roof Consulting Construction Review Contract Administration www.brownbeattie.com
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SMART IDEAS
You’ve got email Electronic proxies have arrived. Two Toronto condominium directors and a corporate lawyer are behind a new platform that lets unit owners vote online
Electronic proxies have arrived, meaning it’s now possible to elect condominium directors with the clicks of a mouse. Faced with rising owner apathy and declining AGM attendance, two Toronto condominium directors and a corporate lawyer teamed up to create the platform called GetQuorum. Last fall, co-founders Ben Zelikovitz, J.J. Hiew and Trevor Zeyl took the earliest iteration of their software out for a test-run, reaching quorum in their 200-unit, mixed-use, downtown condominium days before the meeting began. Since then, they have commercialized the platform, working with several large property management firms, including Brookfield and Malvern, to roll it out to nearly 20 condominium corporations in Ontario to date. A common concern surrounding paperbased proxies is the potential for tampering.
38 CONDOBUSINESS | Part of the REMI Network
GetQuorum creates unique access codes and tracks IP addresses to verify the identity of the person filling out the proxy form. In addition to capturing quorum, the software allows corporations to elect directors and pass bylaws on desktop or mobile devices as well as send AGM packages electronically if owners opt in. Certain changes to the Condominium Act, passed last fall but not yet in force, are expected to make it easier for Ontario condominium corporations to use technology. In the meantime, however, the creators of GetQuorum obtained a legal opinion from Miller Thomson confirming that their software meets the current requirements of the legislation. GetQuorum has also been accepted into Ryerson University’s Legal Innovation Zone, an accelerator for start-ups that will contribute to the modernization of the law and justice system. Their participation will give them the opportunity to speak with the provincial government as it works out the details of the regulations that will accompany the recently passed changes to the Condominium Act. For more information, visit www.getquorum.com.
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