CONDO May/June 2022

Canada’s Most Widely Read Condominium Magazine

June 2022 • Vol. 37 #2

EASY TARGET PM#40063056

Condo corporations have become more susceptible to fraud. How can they reduce the risk of financial crime?

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PA R T O F T H E

8TH ANNUAL WHO'S WHO A ranking of the Canadian condo industry's major players and portfolios

P A R T

O F

T H E

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Contents 12

42

FINANCE 28

Dodging the Fraudsters

By Stephen Chesney

50

Catastrophe Modeling Tools

By Dru Douglas

32 The CAT’s Elusive Middle Ground

MANAGEMENT

By Victor Yee

14 Improving the Condo Manager’s Workplace

By Juliet Atha

38

A Higher Purpose

HOUSING MARKET 20 A Home ‘Not Quite’ Away From Home

ELECTRIC VEHICLES

12 Employee Disconnection Policies and Condo Corportations

42

Plugging Into the Future

By Greg Fraleigh

46 Offsetting the Cost of EV Chargers

By Ilia Alexeev

TRIVEST WILL MANAGE ALL THE DETAILS OF YOUR CONDOMINIUM BUILDING CUSTOMER SERVICE Make sure condo owners feel heard and supported in their living community.

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Editor's Note

8

Ask the Expert

54

New & Notable

SPECIAL FEATURE

LEGAL

For more information, call 416.449.4100 ext. 24 tony@trivestdev.com

6

By Rebecca Melnyk

By Bogdan Alexe and Val Khomenko

By Josh Milgrom

IN EVERY ISSUE

REGULAR MANAGEMENT REPORTING Accurate and timely financial statements.

DETAILED OPERATIONAL UPDATES Daily maintenance, tender review and contractor management.

26 8th Annual Who’s Who Survey of the Canadian Condo Industry’s Major Players and Portfolios

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Director, Business Development Office: 1.877.81CONDO (26636) x 467 Cell: 647.887.5676 k.m.shahnewaz@condominiumliving.ca www.condominiumliving.ca

EDITOR’S NOTE

Associate Publisher Bryan Chong

Easy targets

Editor Rebecca Melnyk

The Canadian Anti-Fraud Centre reported that Canadians of all ages lost $379 million to scams and fraud last year, a rise of 130 per cent compared to 2020. Much of this was supposedly due to the massive shift in digital payments during lockdowns, but scammers are also becoming more sophisticated in attaining large sums of money. In just the first four months of 2022, $163.9 million has already been lost to fraud.

In this issue, our cover story explores what could realistically happen within condo corporations, which are far from untouchable when it comes to money scams. Notably, boards, managers and financial advisors all play a role in protecting condo communities.

Also in this issue, you will find context behind recent rulings from the Condominium Authority Tribunal and advice on detoxifying the condo manager’s workplace as psychological health and safety matters more than ever. With co-ownership on the rise due to the housing market headache, we look at a growing move towards multi-generational living. Realtors and architects discuss what trends they're seeing and what’s missing from truly viable multi-gen spaces.

Among the pages, we also present our eighth annual Who’s Who, a rundown of the major players and portfolios in Canada’s condo industry. If we missed you, please contact Gerald Ngan at geraldn@mediaedge.ca to be included in our 2023 contact list.

As always, we would like to thank all our expert industry contributors. Please visit us online at the REMI Network for timely news, and if you would like to see a topic covered in a future issue, we would love to hear from you.

Advertising Sales Bryan Chong, Sean Foley, Ron Guerra, Jason Krulicki, Melissa Valentini Art Director Annette Carlucci Graphic Designer Thuy Huynh Production Manager Rachel Selbie Contributing Writers Bogdan Alexe, Ilia Alexeev, Juliet Atha, Stephen Chesney, Dru Douglas. Greg Fraleigh, Val Khomenko, John Lusink, Josh Milgrom, Victor Yee 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.

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LOOKING UP John Lusink, president of Right at Home Realty, answers: What do rising interest rates and housing-related measures announced in the 2022 federal budget mean for Ontario's condo market?

We are currently seeing a dramatic shift in the housing market with housing activity slowing down, thanks to a drop in demand. The housing market cool-down was prompted by rising interest rates, with the most recent quote for two-year fixed mortgage rates rising to 4.03 per cent.

Mortgage insurers in Canada are seeing a drop of nearly 40 per cent on unit application volume. Borrowers who are up

for renewal will see their rates double in many cases, creating some real risk in the markets. The sales-to-new listings ratio in Toronto suggests that sales and selling prices will begin trending downwards at a rapid pace. In addition, other inflationary pressures such as fuel, the cost of food and other worldwide conflicts and challenges risk pushing the economy into a recession.

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The Dual Impact of Rising Rates One of the impacts of interest rate increases on potential homebuyers is with respect to their house-buying power, which has been reduced by almost $100,000 in many areas.

However, we have also seen increases in household income, which has helped to temporarily ease the loss in house-buying power, that is, until we see another rate increase.

ASK THE EXPERT

Another impact of rising interest rates is the financial disincentive that is created for sellers to sell their homes and buy a new home at a higher mortgage rate, which will further constrain housing supply and make real house price declines potentially unlikely.

As a point of reference, the 30-year average fixed five-year rate is just over eight per cent, compared to where we have been and the current posted rate of four per cent.

Housing Related-Measures Building The housing accelerator fund, rapid housing initiative and multi-generational home renovation tax credit will not impact the supply or market materially. These measures still have yet to be passed, and to be meaningful, overhaul of the municipal approval process and reduction of red tape is required to accelerate delivery times of new homes.

Saving The proposed Tax-Free First Home Savings Account, increase to the First-Time Home Buyers Tax Credit (HBTC) as well as the proposed increase to the Home Accessibility Tax Credit (HATC) are all positive measures, but will not provide any material boost to enable those already marginally qualified to be able to enter the housing market.

Notwithstanding that Canadians saved record amounts during the pandemic, the recent spike in borrowing costs coupled with the increases in prices, services have easily eroded any additional buying power that they may have had.

Anti-Flipping and Foreign Investment Ban The proposed anti-flipping and foreign investment ban are not based on any sound data or research. While politically this may appeal to voters, the fact remains there is little research to back up the “assumption” that the overheated market has been caused by foreign buyers and other investors.

Ontario’s Condo Market While overall activity has declined, condo supply continues to remain very constrained in the primary GTA markets. However, new pre-construction launches continue to be very popular.

Signs that developers are having to be more competitive, such as offers of rental

guarantees, upgrades, inclusion of parking spaces, cash back and more flexible deposit structures are being seen now.

The key going forward is for buyers to ensure that the developers have “cost certainty” around their proformas. Recent reports of having to cough-up additional funds to cover the massive increases in construction costs have made preconstruction buyers a little wary of what they are getting into.

According to data from Right at Home, looking at January to May 2022 versus January to May 2021, we see price increases of 22 per cent on sales and a 13 per cent increase in rentals. On the transaction volume side, there is a decline of nine per cent, while lease transaction volume has declined by 11 per cent over the same period.

A 2022 Forecast Rate increases, conflicts, supply constraints, savings and the recent relaxation of travel and other COVID-19 related measures will all contribute to the consumer taking a break

from the real estate market and heading off to cottages and other destinations.

As such, we will continue to see a drop in market activity. This should not be translated into a crash, or bubble bursting or even major price drop. While the price acceleration will certainly slow, inflationary pressures will keep the new home/condo markets at their current levels and the continued restrained supply of resale homes will also serve to keep prices from dropping precipitously.

Subject to world events and federal policy makers being able to impact rising inflation in a positive way, we could see a slight rebound in the fall real estate market.

Effectively, the 2022 spring market has been a no-show. Given that comparisons to 2021 and 2020 are not as relevant, we feel, 2019 is a much better frame of reference and as such, this is still a healthy real estate market. . . for now. 1 John Lusink is president of Right at Home Realty.

Building Science & Structural Engineers Building Structure Parking Structures Building Envelope Reserve Fund Studies Performance Audits

Joyce | Vancouver, BC

rjc.ca www.REMInetwork.com | June 2022 9

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THE VALUE OF INDEPENDENT PRE-CONSTRUCTION SURVEYS Protect your building with a reliable condition assessment you can trust As Ontario neighbourhoods adapt to accommodate more and more new citizens, the expansion of mass transit, residential housing and infrastructure could have consequences for pre-existing building owners.

To limit the impacts of adjacent construction work on older assets with damage potential, many building owners and condominium corporations are turning to independent pre-construction surveys. Conducted by qualified engineers prior to the onset of neighbouring work, these detailed inspections provide a snapshot of an existing property’s condition so that owners are aware of the issues that may be exacerbated by the sustained vibrations caused by construction work.

While in some cities, such as Toronto, developerled surveys of all neighbouring buildings are mandated before any new development can proceed, structural experts warn that existing assets aren’t being adequately protected given the surveys are more designed as a loss control and claims defense mechanism for the developer.

“For that reason, we recommend to our clients that they allow the developer do their preconstruction survey, then we’ll come in and conduct an independent survey they can directly rely on,” said Justin Tudor, President, Keller Engineering. “Developerled preconstruction surveys have value, but they are often cursory and may provide insufficient detail to ensure a comprehensive capture of existing conditions.

Furthermore, the developer is often not required and is commonly resistant to providing the findings of their pre-construction survey to the owner.”

Referring to an independent pre-construction survey his company recently conducted in Mississauga, Tudor explained that the assessment involved identifying existing cracks in walls, floors, and exterior cladding of the first two storeys above grade, and interior finishes of all storeys below grade to facilitate a comparison once the adjacent construction was complete.

“Although other building elements can be affected by adjacent work, extensive monitoring of elements such as stone facades require detailed investigations and costly initial surveys,” he said. “In our experience, crack creation or propagation in the building’s parking garage and lower levels is the most effective way to monitor for building movements as a result of adjacent construction activities.”

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TYPICAL PROJECT SCOPE For most independent pre-construction surveys, the scope of the project includes: 1. A site review to document the building’s condition, noting existing cracks in foundation walls, and signs of deterioration and settlement.

A basic review typically focuses on the first two storeys of exterior cladding, below grade interior walls of common rooms, stairwells, corridors, and parking garage floors, walls and ceiling, but can be expanded to include upper stories by way of drone (if permitted in the area); 2. Preparation of video showing the general location and extent of pre-existing deterioration; 3. A report on the findings, including a detailed summary with photographic documentation and recommended remedial actions, if required; 4. Storage of the documentation for a three-year period.

BENEFITS FOR THE PROPERTY OWNER According to Tudor, the peace of mind independent pre-construction surveys bring to all types of building owners can’t be underestimated.

“Developments and transit expansions are happening all around us,” he said. “Those excavations will vibrate and potentially damage adjacent properties. Aging buildings need to be documented to capture the difference between what’s fallen apart due to wear, and what’s damaged as the result of the construction.”

With a pre-construction survey, owners can rest assured that the conditions of their building are appropriately documented prior to any adjacent construction activities, so that any resulting damage can be attributed back to the source.

For more information on independent preconstruction surveys and other related services, please visit www.kellerengineering.com.

EMPLOYEE DISCONNECTION POLICIES AND CONDO CORPORATIONS On April 11, 2022, Ontario’s new Working for Workers Act,

BY JOSH MILGROM

2021 received royal assent, which introduced many employee-friendly changes to the Employment Standards Act, 2000. The Minister of Labour declared that the changes would “require most workplaces to have a right to disconnect policy.”

The government’s boastful statements could understandably make an employer— and condo directors, owners and residents—worry that their employees or service providers, including management, were about to become completely unreachable outside their scheduled work hours.

Well, not quite.

Right to a Disconnection Policy, but no Right to Disconnect The new rules don’t actually give employees a right to disconnect. In fact, they don’t give employees any new rights to refuse work or ignore work communications. Instead, the new rules require some employers to simply have “a written policy in place for all employees with respect to disconnecting from work.”

12 CONDOBUSINESS | Part of the REMI Network

Employers are essentially free to determine the content of their disconnection policies for themselves. The only requirements are that the policy must: (i) address disconnecting from work. (ii) include the date the policy was prepared. (iii) include the date any changes were made to the policy.

LEGAL The new rules tell us that disconnecting from work means “not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages, so as to be free from the performance of work.”

The Ministry of Labour suggests that a disconnection policy could address the employer’s expectations about reviewing and responding to after-hours emails or phone calls or for setting out-of-office notifications.

However, the new rules don’t require that disconnection policies say anything in particular about disconnecting from work.

This means that a disconnection policy does not need to say that employees have an actual right to disconnect.

Instead, an employer can have a disconnection policy that is limited to explaining that the employer follows the relevant employment standards, such as those relating to hours of work, vacation, holidays, and overtime — all of which existed before the new rules came into effect. However, if an employer adopts a policy that does offer additional rights for its employees, the enhanced rights could be enforceable against the employer.

For instance, the new rules are a reminder that sending and reviewing messages, whether by phone, email, or instant message, is a type of work. And although the new rules may not create any new rights for employees, they shine a spotlight on unpaid, off-the-clock work that many employees perform when they invariably respond to messages after hours.

Some email clients, such as Microsoft Outlook, now have features that suggest when emailing after-hours that your email message be scheduled to be sent during business hours; in condoland, however, this may be impractical as directors have a varying ability to respond to emails during the day.

Employers, particularly employers whose employees are paid by the hour, should review their practices and policies for tracking and recording hours of work to ensure that after-hours work is being properly tracked and paid.

Condo directors needn’t worry that their managers will all of a sudden become radio silent after their designated office hours.

However, employers, and condo corporations that don’t have any employees, should take a hard introspective look at their own

workplace culture when it comes to unwritten expectations for responding to inquiries (and, in particular, non-urgent communications) after hours. For some service providers, directors may consider requesting a copy of their service provider’s disconnection policy; this could assist in the condo corporation’s review of their own culture and, in some cases, the policy may be necessary to an assessment of excess charges paid to service providers for after-hours work.

While the new legislation may not create a right to disconnect, given the public attention the issue has received, many employees are likely to begin tracking their time and demanding payment for all off the clock work — or considering other opportunities where disconnecting from work is encouraged. 1 Josh is a condo lawyer at Lash Condo Law whose experience spans all things condorelated. He is actively involved in the condo industry and is a frequent speaker at industry conferences and seminars. As the past president of his condo corporation in downtown Toronto, Josh learned first-hand about being a director — and gained valuable insight into what directors want from their lawyers.

Disconnection Policies not Required for Small Employers An employer is only required to have a disconnection policy in a given year if it employed 25 or more employees on January 1 of that year. The obligation doesn’t change during the year if the employer gains or loses employees; the January 1 date is all that matters.

Each employee counts towards the 25-employee threshold, whether employed full-time, part-time, or casually. However, employees of temporary help agencies who are assigned to a client business are treated as the agency’s employees, not as the client business’s employees.

Condo corporations themselves would rarely reach the 25-employee threshold, meaning they wouldn’t have an obligation to have a disconnection policy. However, many condo-related service providers, such as management and security service providers, will in many cases have 25 or more employees.

What’s the Takeaway?

Although the new rules fall short of “requiring most workplaces have a right to disconnect policy”, they do serve as an important reminder to employers and condo corporations on certain issues.

www.REMInetwork.com | June 2022 13

IMPROVING THE CONDO MANAGER’S WORKPLACE Psychologically safe environments matter more than ever

It’s hard to imagine that

BY JULIET ATHA there’s a condominium manager anywhere in Ontario who would describe their job as easy. The breadth and depth of knowledge required

to do the job well are astounding. The hours are long, and condo managers rarely get to “switch off.” They are never more than a few feet away from their phone, even when taking a shower.

14 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

Soft skills are necessary to do the job well, including communication, time management, and people management. On any day, a condo manager can be pulled in many different directions, depending on the latest crisis or deadline.

Casting a shadow over all these challenges to perform is the worry that an owner will file a complaint with the CMRAO against the manager because he or she didn’t like a board decision or how long it took to respond to emails. For some owners who are angry or distrustful of the condo manager or the board, this frustration escalates into actual harassment.

While there are no statistics, anecdotal evidence suggests that almost every condo manager has experienced some form of workplace disrespect, and a majority have experienced workplace harassment.

Hopefully, only a very few were subjected to physical threats or assault; but there shouldn’t be any at all.

Condominium corporations have a duty to protect their directors, manager, staff, and owners. There are plenty of stories and increasing court cases and CAT decisions that shine a light on some outrageous behaviour.

Recent Court Decisions Denounce Owners’ Abusive Behaviour Section 117 (1) of the Condominium Act states: “No person shall, through an act or omission, cause a condition to exist or an activity to take place in a unit, the common elements or the assets, if any, of the corporation if the condition or the activity, as the case may be, is likely to damage the property or the assets or to cause an injury or an illness to an individual.”

In TSCC 2519 v. Emerald PG Holdings et al., 2021, the Superior Court of Justice ruled that injury “includes psychological harm that is beyond a trifling nature.”

The Ontario Superior Court of Justice has also now ruled that the right to accommodate a disability is no longer the ultimate “right” (MTCC 580 vs Mills, 2021).

Those in the condominium community also have a right to be protected from harassment or oppressive behaviour.

Workplace safet y legislation also protects against harassment. In TSCC 2519 v Emerald PG Holdings et al., 2021, the ruling stated that when a unit owner or owners engage in threats of litigation, intimidation and excessive hostility toward a board and its property management, such actions constitute workplace harassment.

The ruling states, “The verbal abuse, door banging, physical intimidation, accusations of wrongdoing, shouting, and micromanaging constitute workplace harassment within the meaning of the OHSA” (Occupational Health and Safety Act).

If a condo manager or director is su b j e c t to h a r a s s m e nt o r a b u si ve behaviour, it is vital to keep records of the incidents, either copies of emails or diarized descriptions of the interaction.

The corporation should consider seeking legal advice from its solicitor early in the process. Early intervention, a lawyer’s letter to the owner, for instance, may help stop the situation from escalating. It will also demonstrate that the corporation takes the situation seriously and acts promptly to protect its directors and management. It may also be necessary to contact the police.

In extreme cases, the lack of respect shown to managers, the board, or other residents escalates into a messy situation involving the police or the courts.

Although it may be a lengthy process, legal tools are available to stop excessive abuse. A ndrea Lusk, a law yer with Gardiner Miller Arnold LLP, has provided helpful comments about de-escalation.

“A common preamble to written decisions from court or CAT where harassment is alleged is how poor communication or failure to deal with a legitimate request can cause bad feelings,” she says. “These initial bad feelings snowball a non-dispute into a claim of mutual harassment. Often, harassment is not found— just frustration by all sides.”

For example, a slow or non-response to a standard request—for records, maintenance, or enforcement—may cause an owner to then question management and the board. That owner may then consider

communicating their displeasure to fellow owners or to management, repeatedly.

When we get past the “normal complaints” stage, the owner and the condo are put onto two sides, and many get trapped in those roles. What could have been a short response has now turned into exponentially more work for the manager. If the condo’s lawyer has to get involved, it escalates.

Absent an actual physical threat or emergency, many items presented as “urgent” can probably wait a day, or a week, and be dealt with in due course with no hard feelings. It’s best practice to acknowledge a request, what must be done to address it and communicate the timeline to the person making the request.

Diarize the timeline for yourself. If you have communicated a reasonable timeframe for a response (even saying “the board meets once a month, this is on the agenda and I will reply to you after their next meeting” or “we’ve called the contractor, we will let you know when they get back to us”) you have done what you can on that item until you have more information. Continue to communicate progress but otherwise keep your boundaries.

The underlying foundation of some of the abuse and harassment that a condo manager or director experiences is the general lack of respect for the work they do.

A recent Ontario Superior Court ruling (Niagara South Condominium Corporation No. 12 v. Kore et al., 2021) contains a very astute observation. “It comes down to respect: Respect for the rules. Respect for employees, the board and one’s neighbours.

Respect for the common and shared space of others.” Even though most condo managers are not employed directly by a condominium corporation, it is reasonable to assume that “respect for employees” is intended to include the condo manager.

It ’s d is a p p ointing th at so m any condominium managers are subject to a lack of respect for their ability to do such a challenging job. That was supposed to change with licensing: condo managers would be considered professionals like lawyers and engineers.

www.REMInetwork.com | June 2022 15

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IS YOUR BUILDING EV-READY? With a Smart System, you’ll be Set for the Surge!

The world is rapidly changing, with sustainable technology driving the way to a cleaner, healthier tomorrow. By 2035, all cars sold in Canada will be zeroemissions vehicles—an endeavour that will require robust, ongoing investment in charging infrastructure wherever Canadians live, work, and play.

For condominium communities, that infrastructure is quickly becoming non-negotiable. With more Canadians making the switch to electric vehicles than ever before, the growing need for charging stations could create a costly bottleneck if the right steps aren’t taken today.

Fortunately, technology has made it possible to accommodate multiple electric vehicles at once with smart systems that load balance the demand and reduce the costs associated with single charger installations. Gone are the days of wiring each charger directly into the building’s limited electrical system, which was the go-to method when EVs were less prevalent.

“No building’s transformer will be able to handle a large number of users,” says Tasso Eracles, President, Smart Energy Recovery—hence why his company’s solution has been gaining momentum in condominiums with an offering that costs the condominium corporation nothing. Rather than spending $5,000 $8,000 per parking spot and the ongoing costs to repair, upgrade, bill, collect and manage a system, condominium owners can now rent a state-of-the-art charging system on a one-year rental agreement for $125 per month, plus $1.25 per charging hour to reimburse the condominium for the electricity used.”

In terms of payback, Eracles says it represents about five years to recoup the installation cost for the condominium owner. Meanwhile, the benefits to the condominium corporation include avoiding all the logistical issues of installing, maintaining and operating a system without having to upfront any money. Simultaneously, the resident reaps the benefits of hassle-free terms

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and maintenance, as well as the convenience of being able to manage and monitor their own usage via an app. If that resident chooses to sell the unit, no problem—the new buyer can simply take over the annual rental agreement.

“We take care of everything, including repairs, replacement, servicing, and updating technology as needed at no additional cost,” Eracles says. “We think it’s a tremendous offering for both the condominium and the individual, particularly given the exorbitant price of gas.”

In terms of big-picture benefits, smart panels add value by future-proofing the asset and creating a holistic EV-Ready building. Not only does this positively impact condo values and attract new buyers, but it benefits the environment too.

Smart Energy Recovery is an eco-friendly company dedicated to helping condominium corporations and property managers reduce their buildings’ carbon footprint.

Adhering to our motto of “Savings Made Simple,” we specialize in no risk, no cost energy savings solutions like condo retrofits, green loans, sub-metering systems, and EV infrastructure. Visit www.smartenergyrecovery.com for more information.

WHY NOW IS THE TIME TO INVEST IN EV INFRASTRUCTURE: • Transportation currently accounts for roughly one-quarter of the country’s greenhouse gas emissions. Given Canada’s goal of being emissions-free by 2050, facilitating the move to clean technology will help your building prepare for the 2035 zero-emission vehicle sale target.

• To date, nearly 200,000 Canadians and businesses have taken advantage of federal incentives to purchase a zero-emission vehicle—a number that’s expected to rise as EVs become more affordable.

• Condominiums equipped with EV chargers have a competitive advantage in today’s real estate market; those ignoring the movement to EVreadiness will lose favour with potential buyers.

• Technology is only getting better. Installing a smart system as opposed to adding chargers on a case-by-case basis could save your condo hundreds of thousands of dollars in expensive electrical service upgrades.

• The high cost of gas is prompting more Canadians to make the switch to an electric vehicle sooner; not having the right infrastructure in place cost be a costly mistake.

MANAGEMENT Replenishing the Condo Manager Shortage Condo managers also deserve respect because this industry is in crisis. Unless something changes, there simply won’t be enough professionals to meet the legal requirements of having each condominium corporation managed by a licensed manager.

There are 12,120 condominium corporations in Ontario but only 2,270 general licensees and 1,399 limited licensees.

Burnout or disillusionment is a real issue contributing to why condo managers,

both new and experienced, are leaving their jobs.

There is no sign that the shortage will improve in the near future, so it’s critical that current condo managers want to stay in the profession. Managers, management companies and boards need to work together to reduce the incidents of abuse or harassment and encourage respect for the condo manager.

Given this growing shortage, a community must treasure a good manager. There is no guarantee that the next condo manager will

meet the high standards of a demanding board—the grass is not always greener.

This is especially true for ACMO Registered Condominium Managers. An RCM is bestin-class in the profession and has plenty of employment choices. Less than a quarter of all condominium managers hold this designation. RCMs have always been committed to high standards and continuing education, and they can find a new job almost immediately.

Top 7 Signs that a Manager is Respected

1

No tolerance for abuse: It should go without saying that threats or physical abuse warrant police involvement and advice from the corporation’s solicitor.

There’s a perception by some that verbal or psychological abuse is “part of the job” and isn’t a “big deal.” Foul language or verbal abuse should not be tolerated. Boards have accountability for making the bad behaviour stop. Trying to avoid legal expenses should not be a barrier to protecting the condo manager. Have a Workplace Harassment Policy in place and enforce it.

2

Perspec tive: The manager has probably done 50 (or 100?) things right today. So “going off the deep end” about the one or two things that weren’t done right, including a typo in a notice, is an over-reaction. The courts have said that corporations aren’t expected to be perfect, so the manager shouldn’t be either. Ask rather than accuse when in doubt about something a manager has done.

3

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Realistic expectations: Acknowledgement that a manager can’t get everything done at once and tasks need to be prioritized. Major physical building projects, legal disputes, ongoing noise complaints and flood investigations all take time away from regular duties.

Sometimes a manager might feel like a magician when they have accomplished so much in a day or solved a particularly complex problem, but they don’t actually have a magic wand. There are only eight hours in a workday and five days in a workweek.

4

Work-Life Balance: Recognition that the manager has a right to personal time. Perhaps a meeting can be held at 8 a.m. or 5 p.m. instead of 8 p.m. so

MANAGEMENT

“The underlying foundation of some of the abuse and harassment that a condo manager or director experiences is the general lack of respect for the work they do.”

that the manager can enjoy time with their family. Equally, if a condo manager stays late for a meeting, it should be standard practice to come in late or leave early the following day.

With no commuting time and less socializing, Zoom meetings are more productive and more respectful of the manager’s time.

5

Contract hours do not equal of fice hours: The manager has many tasks and duties, which require quiet concentration or private time for confidential discussions with a resident. If the posted office hours when residents can drop by are from 9 a.m. to 5 p.m., when does the manager find that quiet time? Would it truly negatively impact residents if the hours were, for example, 9 a.m. to 3 p.m.? This would provide the manager with two hours a day of valuable uninterrupted time.

6

A p p r e c i a t i o n : T he manager is thanked for their efforts, their guidance and their long hours. In many condominiums, the manager will be thanked only once a year (at the AGM), and sometimes not even then. It makes a huge difference to the work environment when a condo manager feels supported by the board and the community.

7

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www.REMInetwork.com | June 2022 19

A HOME ‘NOT QUITE’ AWAY FROM HOME Over the past two years, Canadians have found more reliance on family—one that housing cannot support. What is driving multi-gen living and how design can help people live with dignity—together.

20 CONDOBUSINESS | Part of the REMI Network

BY REBECCA MELNYK

FEATURE Royal Oaks in Oakville, designed by Q4 Architects, will feature rear-lane townhomes with multi-gen design, including secondary suites in the coach house. Image by NAK.

“Once upon a time, not too long ago, it was extremely common to be living with your in-laws.”

These days, when real estate broker Chris Cansick is touring buyers through Toronto’s costly housing market, he’s more consistently seeing clients looking to co-own with other family members so they can afford to live downtown.

“Once upon a time, not too long ago, it was extremely common to be living with your in-laws,” says the Bosley Real Estate professional. “It’s hard to find an old stock Toronto home in Little Portugal or Little Italy that doesn't have two kitchens. But today, we’ve become so accustomed to living individually that we think it’s odd people would live with parents.”

In a supply-dry city, where the cost of living rose 38 per cent since last year, and

where the population is projected to add 966,000 by 2046 — the average price of a home, as of April, is more than $1.3 million.

For young families wishing to stay put, the choices are slim. “Your choice will become, do I want to live in a tiny condo or do I want to pool my assets together and try to buy a freehold property, which makes sense if you think about the prices of condos,” says Cansick.

Affordability aside, family dynamics have changed. During the pandemic, parents working without childcare and skepticism over the adequacy of long-term care meant more reliance on the family, says Frances Martin-DiGiuseppe, founding principal, Q4 Architects Inc. “We saw a heightened loneliness as people were forced to shelter in place. Even for parents living independently, the lack of seeing family became a huge issue,” she says. “We also saw that in young people living alone — wanting to join the family bubble meant living together.”

But the construct of an extended family looking out for everyone’s well-being under one roof is enshrined in old traditions that are hard to physically realize in Ontario.

A report last year from Q4 Architects and Housing L ab Toronto, Resilient

Ontario:Housing & Community Planning for Multi- Generational Living, states that the province doesn’t just have a housing supply problem; it has a housing type problem that is not responding to trends like an aging population that faces spiraling elder care costs and social service deficiencies.

And more needs to be done. The latest Canadian census shows that between 2016 and 2021, the number of people 65 and older rose 18 per cent to seven million. In more detail, the 85-plus age group reached 861,000, a number that is projected to triple by 2046.

Canada also expects over 432,000 more immigrants in 2022 and even higher numbers in 2023 and 2024, who bring with them cultural norms that disrupt the concept of a post-World War II nuclear family house, Martin-DiGiuseppe notes.

With new Canadians in particular, who also look to sponsor relatives, many end up in precarious multi-gen living situations due to lack of city planning.

The Q4 Arc h i t e c t s / H o u s i n g L a b Toronto report details, in part, how an influx of large numbers of immigrants is causing them to live in overcrowded housing. In Brampton, secondary suites

www.REMInetwork.com | June 2022 21

LEGAL

have become so popular within the immigrant community that the building department created a multilingual guide to assist homeowners with permits and construction.

“In 2019, the City of Brampton received 1,577 complaints about illegal or unregistered secondary suites or basement apartments,” the report states. “This shows the desire for home sharing is outpacing the legal framework allowing it.”

“I think there’s a real opportunity to create better multi-gen homes: attached, contained, within, adjacent, but separate facilities so both families can live with dignity,” says Martin-DiGiuseppe.

Making it Work Multi-gen living is often an afterthought for builders who continue to favour homes geared to nuclear families. Rarely do municipalities legislate them.

22 CONDOBUSINESS | Part of the REMI Network

Particularly for townhomes in suburban communities, solutions proposed in the Q4 report are varied, but include flexible zoning that allows for garage conversions into secondary suites by reducing parking requirements, and zoning that allows for more than one “dwelling unit” within or adjacent to the primary dwelling unit.

Various housing models could address an array of multi-gen situations: more stacked townhomes, a front load townhouse with separate suite and shared kitchen for meal sharing, or a rear load townhouse with a coach house for increased privacy.

Inside, adaptable designs like movable par titions bet ween rooms separate disruptive activities in open - concept spaces; kitchen triangles — t y pic ally designed for gender roles — c an be replaced with larger prep zones and pathways, with an extra sink and counter space. Garages that convert into multigenerational suites should rough - in electrical capacity and supply and insulate exterior walls and under slabs.

Existing provisions rarely acknowl edge the future of multi - gen living.

B asements, for inst ance, are of ten designed with inadequately sized windows for secondary egress. “We know that basements are being converted; we know that they are becoming rental suites, so we’d like to see basement apartments made safe and habitable,” says Martin-DiGiuseppe.

As well, the floor between a secondary suite and the primary dwelling must be constructed as a fire separation and cannot be interconnected. “What we’re advocating for is a recognition of multi-gen in the building code that is different from secondary rental suites; its families living together; they will protect each other; they’re interested in family security,” says Martin-DiGiuseppe.

We don’t need the same kind of onerous and expensive requirements separating two suites.”

When it comes to condos, there’s not a whole lot of multi-gen design. Suites have become smaller and not larger. “Some families are buying several suites, choosing to live together in the same building to assist with childcare or aging parents,” says MartinDiGiuseppe. “But with condos, we haven't seen how [developers] plan to address multi-gen. There’s always a fear of doing something outside of the market.”

FEATURE

“I think there’s a real opportunity to create better multi-gen homes: attached, contained, within, adjacent, but separate facilities so both families can live with dignity.”

Amenities that cater to various generations are more likely found: daycares, senior facilities for social activities and co-working areas, for instance. Living arrangements are more challenging. “There are a lot of hurdles to jump through, but if you could have a connected suite that allows your parents to live independently, but be right there, you could combat loneliness, mental health, personal care, and family inclusion,” she adds.

Sandy Chen, broker for RE/MAX Ultimate Realty Inc, has clients who have purchased condo units in the same building as their kids or parents. “To have their own space, but close enough to help out,” she says.

But when it comes to families under one roof, she sees multi-gen as more of a trend with freehold homes.

“I have had situations where both the children and parents sell their homes and purchase a larger one together,” she says. “I do not find townhouses as popular for multi-generational purposes because there are too many stairs, and the space is not big enough.”

“I know for certain cultures it is more common.” Speaking about the Chinese community in Markham and Richmond Hill, she says the needs of multi-generational homes are not necessarily separate apartments within the same house. “Everyone lives together in the same space, the house just needs to be big enough.”

Amy Youngren, founder of NorthGroup.com, concurs that such dwellings are more common in the suburbs, outside of urban locales due to cultural values and extra square footage and lot sizes. Still, she sees multi-gen living “becoming more and more prevalent” as housing prices hit all-time highs in Toronto and the GTA. “It remains to be seen where our market goes in the coming months and years, but we do anticipate that the desire for multigenerational living will continue to grow,” she says. 1

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TECH-SAVVY IN THE PROPERTY MAINTENANCE INDUSTRY Q&A with MJW Team Technology has touched all corners of the property management sector, but not all prop-tech is easy to spot.

In the world of waste equipment cleaning, for example, there are tech-savvy tools and systems used behind the scenes to achieve quicker, cleaner, and higher quality results.

“We’re using technology as much as any other service provider but given the nature of our work and where we do it, our clients don’t always see that,” says Brian De Carli, Vice President with the MJW Team (division of Metro Jet Wash Corporation).

How is tech upgrading the property cleaning process? We asked Brian for his insights.

HOW MUCH TECHNOLOGY GOES INTO YOUR WORK? Over the years, we’ve used tech to

completely transform how we work, both at our clients’ sites and at our head office in Etobicoke. Some of that tech is more obvious, like in the trucks we drive, the cleaning equipment we rely on, and the safety gear we use, like CO2 detectors. Then, there are the systems we use to coordinate our services, like our integrated sales, dispatch, and human resources system that make our teams far more responsive and efficient.

HOW IS TECHNOLOGY ENABLING YOU TO WORK SAFER? Working safe relies on the ability to track and monitor what happens on the job and then using that data to address risks as they crop up.

For instance, we use digital case management tools to log incidents that happened on the job to track their impacts, how often they occur,

and what might be causing them.

That way, we can discuss them in our health and safety meetings and take immediate actions to ensure those incidents don’t happen again.

HOW SPECIFIC IS THIS DATA? It can be as specific as we want it to be. For example, we have data on buildings that we have done in the past, which we use to instruct teams of any concerns on-site when they return. This is particularly important for our teams to have this information on hand, especially for time management and accuracy.

ASIDE FROM JOBSITE SAFETY, HOW ELSE ARE YOU USING TECH IN THE FIELD? It’s in the integrated dispatch system that enables us to be more connected and responsive with our clients.

SPONSORED CONTENT

It’s also in the advanced machines and tools we use on the job, be it our hot and cold industrial pressure washers, odour control systems, ride-on mobile sweepers and floor scrubbers, industrial vacuum trucks, and our GPS-enabled trucks.

WHY MAKE THESE INVESTMENTS? The simple answer is that it’s part of doing business; being the best at what we do means using the most up-to-date equipment. The other answer is that our job has us working in some of the dirtiest parts of a building, whether it’s the garbage room, parking lot, or catch basins.

Safety is on everyone’s mind, so we need to continue using the best technology to protect our teams and keep these properties safe and hygienic for anyone who works or lives in these buildings.

WHY IS IT IMPORTANT TO STAY CURRENT WITH TECHNOLOGY IN YOUR FIELD? Nothing is ever static. Whether

we’re working in condos, apartment buildings, office towers, retail/ plazas, and commercial/industrial facilities, there will always be new challenges and considerations that we need to be able to deal with. We need to continue delivering the service we’re known for and keeping up with technology is one way we do that.

Learn more about The MJW Team (divisions of Metro Jet Wash Corporation) at www. metrojetwash.ca or contact the team directly at 416-741-3999 or toll free at 1-844-669-3999.

CONDOBUSINESS WHO’S WHO 2022

TOP

TEN

IN THE CONDO BUSINESS INDUSTRY

CONDO BUILDINGS

TOTAL

FirstService Residential Management Canada

1,214

CONDO UNITS

TOTAL

FirstService Residential Management Canada

115,315

Wilson Blanchard Management Inc.

628

Crossbridge Condominium Services Ltd.

93,279

Pacific Quorum Properties Inc.

624

Del Property Management Inc.

77,000

Crossbridge Condominium Services Ltd.

390

Rancho Management Services

50,992

Tribe Management Inc.

362

Wilson Blanchard Management Inc.

44,148

Rancho Management Services

355

Pacific Quorum Properties Inc.

36,107

Del Property Management Inc.

280

ICC Property Management Ltd.

KDM Management Inc.

248

Icon Property Management

ICC Property Management Ltd.

238

Tribe Management Inc.

28,381

AWM-Alliance Real Estate Group Ltd.

212

AWM-Alliance Real Estate Group Ltd.

24,876

RANK

UNITS

BUILDINGS

1

FirstService Residential Management Canada

115,315

1,214

2

Crossbridge Condominium Services Ltd.

93,279

390

3

Del Property Management Inc.

77,000

280

4

Rancho Management Services

50,992

355

5

Wilson Blanchard Management Inc.

44,148

628

6

Pacific Quorum Properties Inc.

36,107

624

422

The number of licensed condominium management providers in Ontario.

4,322

Total number of active licensees as of March 29, 2022, according to the Condominium Management Regulatory Authority of Ontario. They include General Licensees (2,270), Transitional General Licensees (245), and Limited Licensees (1,399).

12,000+

The estimated number of condominium corporations in Ontario.

26 CONDOBUSINESS | Part of the REMI Network

RANK

31,963 29,000

UNITS

BUILDINGS 238

7

ICC Property Management Ltd.

31,963

8

Icon Property Management

29,000

110

9

Tribe Management Inc.

28,381

362

10

AWM-Alliance Real Estate Group Ltd.

24,876

212

11

KDM Management Inc.

18,177

248

12

Goldview Property Management Ltd.

16,700

98

13

Apollo Property Management Ltd

15,888

131

14

Percel Inc.

15,200

187

15

SolutionCondo/Rentalys Solution

14,962

184

16

GPM Property Management Inc.

14,500

80

17

Nadlan-Harris Property Management Inc.

14,000

84

18

Comfort Property Management Inc.

8,000

80

19

Equium Group

7,850

88

20

AA Property Management

7,000

45

21

MF Property Management

6,805

105

22

Bayshore Property Management

5,273

77

23

Meritus Group Management Inc.

5,125

53

24

Shelter Canadian Properties Limited

4,344

29

25

Whitehill Residential

4,165

39

CONDOBUSINESS WHO’S WHO 2022

RANK

UNITS

BUILDINGS

RANK

UNITS

BUILDINGS

26

HighPoint Property Management

3,957

60

45

Southwest Properties Ltd.

200

2

27

Berkley Property Management Inc.

3,950

42

46

Glenview Management Limited

163

1

28

SmartCentres REIT

2,767

5

47

Mainstreet Equity Corp.

129

29

Dove Square Property Management Inc.

2,753

36

48

Sterling Karamar Property Management

88

1

30

Real Estate 360 Property Advisory

2,753

41

49

Armadale Property Management Inc.

64

9

31

Canlight Management Inc

2,589

41

50

Melchior Management 777 Corporation

63

4

32

Brilliant Property Management

2,306

20

51

The Regency Group

54

33

Guardian Property Management Services Ltd.

2,200

41

52

McCor Management (MB) Inc.

42

34

The Enfield Group Inc.

2,200

50

53

Skywater Property Management

41

35

Royal/Kente Property Management

2,000

60

54

Sabjoy Inc.

1

36

Lionheart Property Management Inc.

1,700

61

37

Colliers Macaulay Nicolls Inc.

1,590

30

38

Warrington PCI Management

1,491

7

39

Taft Management Inc.

1,437

17

40

Downing Street Property Management Inc.

915

7

41

Condominium Living Management Inc.

576

42

Huntington Properties Ltd.

465

13

43

Summa Property Management

366

31

44

Arnon Corp.

MetCap_CPM_WhosWho_Supplement_2017.pdf

281

1

3

2017-03-20

1

12:28 PM

#1

RANKED APARTMENT MANAGEMENT COMPANY

C

M

Y

CM

MY

CY

CMY

K

MetCap Living knows the importance of your property investment. With over 30 years in professional property management and experience in owning and managing all aspects of multi-unit housing, we have the expertise to boost your NOI. From Marketing, Leasing, Utilities and Site Management, Collections and Accounts Receivable, we tailor our services to your needs.

We manage over $2 Billion in assets owned by private families and institutional investors. Our focus is on revenue growth and vacancy reduction, while maintaining strict control over expenses. We also To ensure the health of your bottom line, contact: Kazi Shahnewaz, Director, Business Development Cell: 647.887.5676 k.m.shahnewaz@metcap.com www.metcap.com www.REMInetwork.com | June 2022 27

DODGIN FRAUDS

28 CONDOBUSINESS | Part of the REMI Network

NG THE STERS Condo corporations are ripe with golden opportunities for swindlers. What property managers, boards and financial advisors should do about it.

BY STEPHEN CHESNEY

www.REMInetwork.com | June 2022 29

FEATURE

In these economically

trying times, as one would expect, fraud has been rearing its ugly head. Unfortunately, condominium corporations have increasingly become an easy target.

The reason condos have a metaphorical bullseye on them is likely due to the widespread knowledge of legislation that requires them to maintain large amounts of money in their reserve funds. This, in conjunction with board of directors who often do not have extensive education and experience on corporate governance issues, results in a recipe for disaster.

Many years ago, there had been some major condominium frauds.

While these large-scale schemes have obtained significant public attention, these swindlers are consistently developing new types of frauds on a smaller scale, which are preventable and can be detected in a timely manner.

The following three examples are types of fraud that could easily transpire.

Example One: A condominium corporation pays its suppliers by way of physical cheques. Suppliers can deposit the cheque from the condominium corporation by using a feature offered by its financial institution wherein it can simply take a picture of the cheque with their phone, thereby never actually visiting a bank branch or depositing the cheque by way of an ATM. A fraudster intercepts the cheque by somehow obtaining the envelope mailed to the supplier with the cheque in it (possibly from the Canada Post box). They change the payee and the amount and deposit the cheque either on their phone or at the bank into their own account. If the condominium corporation does not reconcile its bank statement in a timely manner, the fraud remains undetected for an extended period of time.

Example Two: A fraudster obtains the branch and bank account number of a condominium’s bank account. The fraudster sets up an automatic payment or electronic transfer out of the condominium’s bank account to their account (possibly a shell company used to redirect funds). Despite this charge appearing on the condominium corporation’s bank statement, it goes undetected as the monthly bank statements are not reconciled in a timely manner.

Example Three: The board of directors decides to invest the corporation’s reserve monies into a GIC or term deposit with a financial institution or they pay a supplier’s invoices by electronic transfer. Due diligence is not conducted on the financial institution with whom the condominium intends to invest or the supplier and the funds are transferred electronically to the account number provided. Unfortunately, the financial institution or supplier’s information is not legitimate, and the money is actually transferred into a fraudulent bank account.

Given this real and impending threat, it is imperative that every person involved with the financial administration of condo corporations do their part to prevent or at least reduce the risk of a financial crime being perpetrated. The management company, financial advisors (brokers) and the board of directors should develop, enforce and continually tighten internal controls to ensure that there is an efficient system in place to prevent fraudulent activity such as the ones described above.

The Role of Management Given the extensive involvement of the management in the financial administration of a condominium corporation, it is crucial they develop a set of controls and ensure that those controls are consistently followed. The most vulnerable processes that require protection include the collection of revenues (mainly common elements assessments), the payment of all invoices, and the investing of the reserve funds.

• Management should implement a procedure that requires all revenue be deposited to the corporation’s bank account only, and not deposited to any other individual or company’s bank account.

• Management should ensure that review processes are in place to confirm that invoices are legitimate before paying them and that payments are actually received by the intended vendor.

• Bank accounts need to be reconciled at a minimum each month upon receipt of bank statements, but ideally more frequently.

Any discrepancies or suspicious activity needs to be investigated immediately. If fraud is suspected, the bank and/or the police should be notified immediately. The longer it takes to report, the less likely it is that stolen funds will be recovered.

• Management should ensure they receive and review relevant documentation from financial advisors (as outlined further below).

“The reason condos have a metaphorical

bullseye on them is likely due to the widespread knowledge of legislation that requires them to maintain large amounts of money in their reserve funds.”

30 CONDOBUSINESS | Part of the REMI Network

FEATURE

• Management should conduct due diligence on all institutions with whom the corporation is investing. Even if directed by the board of directors, management should ensure the integrity of the financial institution before making any transfers. A thorough investigation should be conducted of the financial advisor and financial institution, especially if a higher than market value rate of return has been offered.

The Role of Financial Advisors Financial advisors, such as investment brokers, often provide guidance and subsequently facilitate a condominium’s investments, resulting in a flow of funds that is susceptible to fraud. It follows that safeguards at each stage of the investment process will decrease the likelihood of misadventure or, at worst, limit the extent of the wrongdoing.

First, there is the decision of where to invest. Part of the reason that there are legislative restrictions on the use of condominium funds is to protect the corporation. As such, it is important in the context of mitigating risk that financial advisors to condominiums are educated and assist the condominium with complying with the applicable laws.

Once a decision is made as to where to invest funds, there needs to be a process in place to ensure that the investment is legitimate and that the money is properly received by the financial institution facilitating the investment.

Financial advisors should then provide written confirmation for each investment in a timely manner and send monthly statements to the management or to the board of directors (if self-managed).

The Board of Directors' Role The board may be in the best position to protect the corporation as they can oversee all of the processes and insist that controls be enforced. It would be ill-advised for the board of directors to

simply rely on management, instead of using their mandate to affect corporate governance and to ensure the implementation of appropriate safeguards.

For example, the board should endeavor to: • Review the full financial statement package provided by management each month and ensure the bank accounts are reconciled and that the reconciling items are accurate and understandable.

• Review the payment process and ensure that payments are made to legitimate suppliers and cheques are only signed with proper support.

• Consistently monitor management to ensure all controls are followed.

An Auditor's Role An auditor cannot and should not be relied on to uncover fraud. Moreover, financial audits are not designed or intended to detect fraud.

Since condo auditors only begin their work after the end of every fiscal year, waiting for the auditor to detect fraud is not reasonable and will simply be too late. Pro-active conduct and vigilance throughout the year by the above-noted personnel can mitigate the damage of a fraud.

There is really no excuse for stakeholders in the condominium industry to be complacent. Use this opportunity to assess your condominium’s processes and ensure the appropriate checks and balances are in place at all levels to ensure that the hard-earned money of the condominium’s owners remain where it is supposed to be, in the corporation’s bank accounts. 1 Stephen Chesney, F.C.P.A , F.C.A., is a partner with the firm Yale PGC, LLP Chartered Professional Accountants in Richmond Hill and currently specializes in the auditing of Ontario condominium corporations.

www.REMInetwork.com | June 2022 31

THE CAT’S ELUSIVE MIDDLE GROUND How fast is too fast; how far is too far?

For a household cat, that warm spot on the f loor in the direct sunlight is just the right temperature.

BY VICTOR YEE

For the Condominium Authority

Tribunal of Ontario (the CAT) though, it’s often a bit more diff icult to figure out where that sweet spot is.

32 CONDOBUSINESS | Part of the REMI Network

LEGAL

In the very first reported decision issued by the CAT in 2022, the Tribunal ruled that the condominium corporation ought to have commenced its online application to the CAT sooner, to enforce against an owner who was keeping a pet cat in her unit (contrary to the condominium’s no-pets prohibition), instead of sending a second legal enforcement letter to the owner from the condominium’s legal counsel. The Tribunal held in Metropolitan Toronto Condominium Corporation No. 736 v.

Verstova, 2022 ONCAT 1 (Verstova): “The legal demand letter sent in April, 2020 stated that the corporation intended to take legal steps to enforce Ms. Verstova’s compliance if she did not remove the cat from the property. On October 1, 2020, jurisdiction over disputes relating to provisions in governing documents which prohibit pets was transferred to the Tribunal. Rather than filing an application with the Tribunal, the corporation sent a second legal demand letter in November 2020, notwithstanding that the two letters sent by Mr. Marshall in 2019

and the April, 2020 legal letter had all failed to secure her compliance.

MTCC 736 delayed filing an application with the Tribunal until June, 2021, more than a year after the first legal demand letter was sent.

This delay resulted not only in additional legal costs associated with the November 2020 letter but also in continued inconvenience to the owners affected by Ms. Verstova’s violation of the pet rules.”

However, a few months later, the Tribunal suggested in another case that perhaps the condominium ought to have waited a little longer before pursuing the CAT application. In Toronto Standard Condominium Corporation No. 2745 v. Islas, Barahona and Martinez, 2022 ONCAT 36 (Islas), the Tribunal held that: “While it would be unfair to characterize this case as a matter “blown out of proportion," it appears to be a matter that might have been resolved with both a bit of patience and cooperation. A condominium corporation is entitled and obliged to seek compliance with its governing documents, but there is

also an expectation of reasonableness in its enforcement actions.”

In Islas, a tenant’s large pickup truck was parked in a parking unit, which exceeded the parking unit’s boundaries, and Article 4.5(a) of the condominium’s declaration explicitly stipulated that, “The Owners of Parking Units shall not permit any portion of any motor vehicle parked within a Parking Unit to protrude beyond the boundaries of the Parking Unit and encroach upon any portion of the Common Elements or upon any other Unit.”

The condominium warned the owners of the parking unit that their tenant’s large pickup truck exceeded beyond the defined boundaries of the parking unit and, therefore, was in contravention of Article 4.5(a) of the declaration.

On at least two separate occasions prior to the CAT application being filed, an owner of the parking unit advised the condominium that the matter would be rectified; and on both occasions, a subsequent inspection by the condominium discovered that the large

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LEGAL

pickup truck was still exceeding the parking unit boundaries and encroaching onto the common element drive aisle.

Since the parking unit in question was located at an intersection where drivers turned on a daily basis, the pickup truck’s protrusion into the aisle interfered with the available driving area.

In view of the false assurances by the unit owner and the potential risk that the oversize truck presented to others, the condominium filed a CAT application against the parking unit’s owners and tenant to enforce compliance.

As the CAT application was ongoing, the tenant eventually cleared out the other items that were being stored in the parking unit, and began parking the pickup truck further into the parking unit, which lessened the encroachment into the drive aisle, but did not entirely eliminate it. Due to its sheer size, the large pickup truck was still exceeding the parking unit boundaries.

The Tribunal ultimately held that the condominium had properly commenced the CAT application to enforce compliance and was, therefore, entitled to have the owners of the parking unit reimburse the condominium for the $150 that it paid in CAT filing fees — effectively allowing the condominium to charge a monetary “fine” for the tenant’s infraction.

However, the CAT was of the view that the pickup truck was now “virtually in line with the pillar” which demarcated the boundary of the parking unit and, therefore, no further Order was required from the Tribunal. The CAT held at paragraph 14: “It may not be ‘perfect’ compliance (that might require a vehicle shorter by several centimeters), or perhaps it is negligibly noncompliant, but it does show compliance with the intent of Article 4.5(a)."

But in paragraph 13 of Islas, the CAT noted that “Compliance with the terms of the TSCC 2745’s governing documents is an obligation of owners and their tenants” — and clearly, even the photographs appended to the CAT decision in Islas show that the tenant’s large pickup truck is still exceeding beyond the

parking unit boundaries, in violation of Article 4.5(a) of the condominium’s declaration.

Contrary to paragraph 16 of Islas, there clearly still is no “compliance with the declaration” here, as Article 4.5(a) of the declaration is explicitly clear that no “portion of any motor vehicle” may “protrude beyond the boundaries of the Parking Unit.”

The courts of Ontario have repeatedly held that the provisions of a condominium’s declaration are not required to be “reasonable” like a condominium’s by-laws or rules are, and that a unit owner of a condominium is entitled to expect that the other owners will be held to comply with the provisions of the declaration.

If, for example, a potential purchaser was aware of the requirement in Article 4.5(a) of the declaration that their vehicle must not exceed the parking unit’s boundaries, then that unit owner might have deliberately chosen to purchase a more expensive parking unit with larger dimensions to wholly fit their vehicle — to ensure that there would not be “any portion” of the vehicle which protruded out, in violation of the declaration. Now, with the CAT’s ruling in Islas, that unit owner might be wondering why they even bothered paying for a larger parking unit; when they could have just bought a smaller parking unit instead, parked their large vehicle which exceeds the parking unit’s boundaries by “several centimeters,” and asked for forgiveness later.

The CAT itself has previously held in Essex Condominium Corporation No. 25 v. Ferrari et al., 2021 ONCAT 79 (Ferrari), that a unit owner’s choice of a large pickup truck which does not fit inside the underground parking garage does not mean that the unit owner can consequently violate the condominium’s governing documents and park their truck however they want. In Ferrari, the Tribunal held: “The fact that large pick-up trucks might now be a vehicle of choice for a large portion of the population does not make the Rule unreasonable; nor does the fact that the Rule has remained unchanged for 30 years. The Respondents would have been aware of the size of the parking spots assigned to them when they purchased

34 CONDOBUSINESS | Part of the REMI Network

their units and, thus, would have been aware of the size of the vehicle that could fit in their designated spot. If they owned or chose to purchase a vehicle that did not fit into the spot, this was their choice. […]

While the Rule may be very inconvenient for owners who do have a large truck, I conclude that it is not unreasonable.”

Despite Ferrari being referenced on multiple occasions by the condominium (represented by this author) in the correspondence and the evidence submitted to the CAT in Islas, the Tribunal’s final decision in Islas makes no reference to the Ferrari case.

So, what is the appropriate middle ground here, according to the CAT? How fast is too fast to bring an enforcement matter to the Tribunal, and how far can a vehicle protrude out from the physical dimensions of a parking space before it is no longer merely “negligibly noncompliant” in the eyes of the CAT? In Verstova, the CAT held that the condominium did not proceed quickly enough to the Tribunal. In Islas, the CAT suggested that the condominium could have perhaps slowed down.

In Ferrari, the CAT held that just because a large pickup truck cannot physically fit within the parking garage’s dimensions, that does not mean the vehicle can be parked in violation of the condominium’s governing documents. In Islas, the CAT ruled that a large pickup truck which does not physically fit inside the dimensions of the parking unit could still be parked in violation of the declaration.

Maybe like Goldilocks at the home of the Three Bears, it might take multiple attempts of chair-sitting, porridge-eating, and bed-sleeping to figure out where that elusive middle-ground lies. 1 Victor Yee is a condominium lawyer and litigator at Elia Associates, a law firm that specializes in condominium law. Victor has successfully represented clients at all levels of court in Ontario, in various tribunals throughout the province (including the CAT), and in condominium-related mediations and arbitrations. He can be reached via email at vyee@elia.org.

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SPONSORED CONTENT

SHOULD I SUBMIT THAT CONDO INSURANCE CLAIM?

Insights for making an informed decision

By Tom Gallinger, Vice President, Atrens-Counsel Insurance Brokers It’s a scenario that any Canadian might encounter. In a rush to get lunch between meetings, you jump in your car, reverse quickly out of the driveway, and – crunch – slam directly into your neighbour’s car door. After apologies are made, and cooler heads prevail, the next move is to make a decision: Do I put this through my insurance? Even though I pay thousands of dollars to insure my cars and property, is it worth it to make a claim?

It’s a difficult question. It’s also one that condominium board members, property managers, or even unit owners can face when an incident occurs at their building.

Determining the best answer begins by understanding the factors at play regarding property insurance. Across the globe, insurance companies employ actuaries who help them review and determine what price levels to charge for insurance on buildings. Their determinations are based on risk factors at a property, including geographical location, construction material, age, size, occupancy, maintenance standards, physical protection, and (especially) the building’s claims history.

One of the most important factors that insurers review is the frequency, severity, and cause of any insurance claims that have occurred. To that end, insurers and their actuaries and underwriters follow the general rule that losses in the past are the biggest predictor that a client

will incur losses in the future. Essentially, what this means is that if you have one claim or multiple claims in the past five years, you are viewed as a more risky client and will pay premiums according to that heightened risk level.

PREPARING FOR A CLAIM Let’s go back to the questions at hand. When an incident occurs, what can a condo corporation do? Moreover, when is the best time to submit a claim?

For one, it’s important to understand that corporations don’t have to file a property claim immediately. In most cases, corporations have up to a year – or, in some cases, two – to formally submit the claim.

While you may have time to submit a claim, the clock will be ticking on mitigating loss or damage following an incident. Herein, one thing corporations benefit from doing is calling a restoration contractor to perform emergency services as soon as possible. For example, if dealing with an incident that caused water damage (one of the most common types of loss for condominiums), they will bring in equipment to suck up excess water, use fans and dehumidifiers to stabilize the damage, and take other actions as necessary to prevent mold or further damage from occurring.

When seeking a contractor, it’s important to verify they

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are on your insurer’s pre-approved list. That way, if the work becomes a claim, you know that the pricing the contractor charges is acceptable to the Insurers.

It is also important that the contractor has experience with condominium insurance claims. They can be complicated as only some of the damaged property is the responsibility of the condominium. Some will be the responsibility of unit owners, such as any moveable property within the unit and betterments over and above the condominium’s standard unit bylaw. A contractor with condo experience will know this and be sure not to include any unit owner costs in their estimate for the condominium.

TO CLAIM OR NOT TO CLAIM Once the immediate emergency services are complete, there’s more time to determine whether or not submitting a claim makes sense. At this point, the board or property management might consider requesting an estimate from the contractor on the approximate cost to do the repairs and restoration work. This will help them decide if they want to proceed and submit the claim.

The decision to submit will vary for each situation. The general rule of thumb, however, is if the amount you’re seeking is three times the condominium’s deductible it is worthwhile to consider submitting a claim. Still, it is always best to speak with your insurance broker, an independent partner who is not the insurance company and will work for the condo to negotiate with the Insurance companies.

They can review your claims experience and offer insights based on their own experiences on what might happen if you go through with the claim.

CHOOSING TO FILE If a claim is formally submitted to the Insurers, an independent adjuster will be assigned. They will work with the board and property management to further quantify the damage, get the right contractors to properly repair the damage and ensure the contractors and condominium are reimbursed by the Insurers for all covered costs.

For larger claims, the adjuster will manage the process of securing multiple bids from contractors to ensure their restoration costs are competitive. The condominium’s adjuster will also coordinate with any impacted unit owners and their insurance adjusters to ensure all costs are divided fairly based on the condominium’s standard unit bylaw. The insurer will pay for any covered damage above the condominiums deductible.

Condominium insurance policies contain multiple deductibles that are dependent on what kind of claim causes the loss or damage to the property. Although the condominium must pay its own deductible out of its operating expenses, there are situations where the condominium may be able to recover this deductible amount from a unit owner. Discussing this with your insurance broker or corporation lawyer will help ensure that the condominium minimizes its own expenses during a property loss.

Deciding to file a claim for condo damage is never cut and dry. That’s why, after the immediate risks are addressed, it pays to take time to assess the damage, seek advice from trusted partners, and make decisions that make sense for you.

For more multi-family property insurance insights and support, visit Atrens-Counsel Insurance Brokers (part of Arthur J Gallagher Canada Limited) at www.atrens-counsel.com, call at 1-877-627-6222 or email info@atrens-counsel.com.

A HIGHER PURPOSE For condo managers, dea ling w it h unethica l behav iour and

BY BOGDAN ALEXE AND VAL KHOMENKO

inter persona l con f l ict is a da i ly occurrence that escapes a 9-to-5 life. So, why should anyone join this profession?

Ontario’s condominium management industry has rapidly evolved over the last few years with the emergence of licensing and regulatory requirements. But now it faces a staffing crisis at an unprecedented level, with many seasonal managers and executives leaving the industry due to retirement or other opportunities.

To woo talented and futuristic candidates, management service providers attempt to sway the troops with top dollar and the promise of a great community, but rarely discussed are the reasons why someone should join, or even remain within, this somewhat unknown career path.

38 CONDOBUSINESS | Part of the REMI Network

There are valid reasons deterring people from the profession, namely difficult personalities.

Managers might be cursed at and threatened throughout the course of their career; their names, and the management service provider, might be dragged through the mud in the newspapers for something that they have no

MANAGEMENT

control over. There may be instances of unethical behaviour they are powerless to stop, and interpersonal conflict will be a daily occurrence because the Condo Act and various condo documents are adversarial in nature. Ultimately, this breeds contention. A manager may feel anxious, frustrated, alone and ask: “Why am I here”?

Nor is this a 9-to-5 career. Clients have monthly meetings with often late nights; the workload keeps managers past “office hours,” into the weekend sometimes. Calls come in past 5:00 p.m. to address various types of emergencies, ranging from multi-floor floods to fires and major equipment breakdowns.

Managers now face a high risk of burnout and there is a mental health crisis in the industry with few resources to help. Meanwhile, condo boards today want a manager who is capable of withstanding all this pressure.

But for those keen on dealing with people from all walks of life, while not being glued to a desk, this is also a wonderful time to work

in this profession. Managers get to service communities and residents, learn new and exciting topics, which make for a well-rounded working life, and become leaders in the corporations they service, in the industry and in the communities where they live.

Crisis management will be your forte. People skills will be your sword and shield. Knowledge and ability to adapt will be your power.

Duty to Serve The rush from successfully problem-solving an issue is intriguing, with time spent prolonging the lifespan of equipment through proper maintenance and adhering to manufacturers’ recommendations and best industry practices.

Managers are involved in replacing major components of the building’s assets to preserve the best interests of the corporation, formulating and maintaining an annual plan that keeps the wheels of the corporation turning, and servicing residents administratively.

There is a higher purpose in this line of work.

Over a million residents live in condos, and more buildings are being built today than ever before.

To provide service to residents, especially in the vicinity of their home, is a challenging and fulfilling task. To preserve their assets and the assets of the corporation is the obligation and duty under the Act. That ultimate sense of duty to serve is what calls to this industry. This is the most opportune time to answer the call.

Opportunity for Life-Long Learning To be able to execute on a high level in a fast-paced environment, learning is the key ingredient. During the span of a condo management career, people learn about the building and workings of condo communities, as well as other aspects of professional life.

There are great service professionals, trades and vendors to meet. Through them or inadvertently, there is much to learn about laws, government structures and corporate governance affecting condo corporations.

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MANAGEMENT There are opportunities for public speaking, chairing meetings, record keeping and minute taking, and the chance to wear many hats — to be a generalist.

Trust.

Mechanical & Electrical Engineering Generator Diesel Fuel Systems d e s ig n e d fo r yo u r b u ild in g

Becoming a Leader For those looking to display their leadership qualities, this is an industry in need of strong leaders. A manager is the frontand-centre person for the corporation in its day-to-day operations and beyond, dealing with various stakeholders and managing multiple staff. Residents and owners will look to you for guidance about their home and their role in the condominium.

More beneficially, many managers are joining the board of directors in the communities where they live to serve as a volunteer member. Managers are also stepping-up and joining volunteer industry organizations to promote education, higher service standards and to shine a light on issues facing condominiums.

A number of management service providers have opened charity organizations, giving back to the communities in their respective regions. Managers are also organizing charity drives in partnership with other stakeholders to raise awareness and funds for a particular cause. There are many opportunities to volunteer and give back in this sector, which is a fulfilling experience.

Being a condo manager is not the most glamorous of professions by any means; it is an industry rapidly evolving, with many challenges and opportunities to grow.

There will be difficult times and many will likely reconsider this path, but to truly succeed in the field, one should embrace the challenges and accept the obstacles.

The satisfaction of solving issues is unparalleled. 1 Bogdan Alexe is President and CEO of B1 Management Group Inc. B1 Management Group provides expert condominium management and consulting services for clients in the GTA, employing the latest technology and 20+ years of hands-on experience. B1managementgroup.com

1 Concorde Gate, Suite 808 Toronto, Ontario 416.443.9499 mcgregor- allsop.com

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Val Khomenko is a Senior Condominium Manager with ICON Property Management Ltd. based in Toronto, Ontario providing condominium management services in the Greater Toronto Area. Val can be reached at val@iconpm.ca

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PLUGGING INTO THE FUTURE Electric vehicle chargers: reserve funds and visitor parking

You may have noticed a change in the gas pumps recently, and

BY GREG FRALEIGH

it ’s not just the price of f uel. Your local garage may have recently retrof itted

their pay-at-the-pump

screen options to accommodate the increased cost of gas, updating prepaid amounts to a higher value since a twenty-dollar top-up now barely moves the gas gauge.

Consumer confidence in the viability of electric vehicles is growing as we consider the longterm impact of what these price hikes mean.

Whether it’s getting to work, running errands, or visiting friends and family, the cost of travel is becoming evident. We can now envision a future where it will be cheaper to buy electric rather than a mechanical, gasoline-fueled

vehicle. The goal is that by 2035, we’ll all be driving them. What will this look like?

Connor Stewart started up his company, Charge Guys, in 2018 when he recognized a gap between people purchasing their first electric vehicle and being set-up with a charging station.

As the company grew, he saw an opportunity to educate and provide solutions for multi-

42 CONDOBUSINESS | Part of the REMI Network

residential spaces.

“Up to now, we’ve been very reliant on oil and gas to transport us,” says Stewart “We've recognized as a country and as a society that this is no longer sustainable. In Canada, we are now shifting from gas sources of energy—from ‘dirty’ sources to clean and renewable sources.

EV charging is the first piece of the puzzle. If

MANAGEMENT

everyone is switching their number one mode of transport to something electric and renewable, what’s to say they aren’t comfortable switching their entire home?”

It’s something to consider given the dynamic of the environmental crisis and the speed with which the climate is changing.

“In Toronto there’s already a framework in place called the Toronto Green Standard (TGS),” continues Stewart. “It’s a framework that by 2030, every building built in Toronto has net-zero emissions being emitted into the atmosphere.

So, we’re already seeing it further up-stream.”

A poll conducted by Clean Energy Canada in May found 53 per cent of Ontarians now lean towards choosing electric over gas or diesel, but are bothered the province isn’t keeping pace with the rest of Canada.

“There was a higher proportion of EVs sold in the Yukon last year than in Canada’s most populous province,” Transportation Program Manager Joanna Kyriazis said in a statement.

“A lack of provincial EV policies has meant that the majority of new EVs made for the Canadian market are sent to Quebec and B.C., making it even harder for Ontarians to get behind the wheel.”

Another factor stalling operations is the wait time for ordered vehicles, with the demand for microchips causing delays.

“I ordered an electric Ford F150. I was told it’ll be here in 2025,” says Stewart. Meanwhile, his father, who owns an automotive dealership in Woodstock, Ontario, has had to completely close for the time being due to the exorbitant cost of stocking new vehicles. “Dealerships are cutting staff and other expenses to save costs,” he says. “Prices will come back down eventually, but right now it’s chaos.”

Stewart says this period is a time of caution but suggests that it also offers an opportunity for condo managers to think ahead. “Now is the time to be proactive. The automotive industry is lagging now, but when it catches up, it’s going to

hit hard. You’ll want to have EV charging built into your next reserve fund study and be prepared for demand.”

Revving-up the Reserve Fund This sentiment is shared by many. While subsection 93(2) of the Condominium Act specifies that the reserve fund can only be used for the purpose of ‘major repair and replacement of the common elements and assets of the corporation, including the potential existence and planning of such a system in the reserve fund ensures that it becomes part of the corporation’s long-term goal.

The first step is requesting an Electric Vehicle Study. This allows a corporation to structure the costs of EV charging and to incorporate the cost of installing the electrical panel into their next reserve fund study. As of today, if a unit owner approaches the board to say they’re buying an electric vehicle, there’s only 30 days to provide a plan of action. Proper planning now will mean that when this happens, the corporation will

have an agreement already drawn up (preferably by a lawyer) and know exactly what the cost to the unit owner will be.

Once installed, maintenance and repair of the charging stations and panel becomes a reserve fund expense, but the planning and installation can be taken care of by one of the many emerging turnkey EV companies that operate throughout Ontario and British Columbia.

New buildings are subject to laws and regulations, which require them to be compatible with EVCs. The benefits of making electric vehicle charging accessible in all multi-residential buildings—both old and new—are numerous. It is an attractive salesfactor for potential purchasers, can provide an alternative revenue stream through branding and advertising on charging stations, as well as offer potential revenue from pay-as-you-charge users. Adding to this is the simple factor of the convenience of charging at home.

While the initial cost of electric vehicles may seem expensive now, consider the reduced

The automotive industry is lagging now, but

when it catches up, it’s going to hit hard. You’ll want to have EV charging built into your next reserve fund study and be prepared for demand.” www.REMInetwork.com | June 2022 43

MANAGEMENT

“53 per cent of Ontarians now lean towards choosing electric over gas or diesel, but are bothered the province isn’t keeping pace with the rest of Canada.”

cost of maintenance (think: ‘no more oil changes’) and the $5 billion being spent in Windsor for a battery plant, and the $2 billion spent by GM to update the Oshawa and Ingersoll vehicle assembly plants to support manufacturing electric vehicles. The increase in the number of available electric vehicle models is multiplying quickly.

When implementing the systems, Stewart says that while some buildings may take a solution allowing billing of individual users, others may tap into an existing sub-meter going to a specific unit and adding the charging costs to their monthly bill. Property management, for the most part, should be excluded from the final billing process, and it should be noted that most property management agreements include a clause that they will not be responsible for hydro billing.

So, where do you put the charging stations? Communal parking spots are desired, but not readily available. Visitor parking stalls may seem like a perfect solution, but the current legislation around their use means their use is a revolving-door of condo-conundrum.

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Charging-Up in Visitor Parking?

Can a corporation install electric vehicle charging stations in visitor parking?

In a post on Miller Thomson Lawyer’s website, lawyer Jason Rivait explains that: “A common thought from condominium corporations is to install the electric vehicle charging station in the visitor parking spaces of the property. Most declarations will contain language regarding the specific use of visitor parking spaces. Commonly, declarations will provide that the use of visitor parking spaces shall be for visitors to the building and for no other purpose.”

“If visitors are only permitted to park in visitor parking spaces, then an electric charging station in such parking spaces would be of limited value to the residents,” Rivait continues. “Additionally, if residents parked in visitor parking spaces to charge their vehicle (even if only for an hour or two), then such residents would be in contravention of the declaration, and the condominium corporation would be obliged to enforce compliance.”

Jake Fine of Lash Condo Law further commented on this in a Zoom call interview. “Generally speaking, if a declaration prohibits the use of visitor’s parking by residents or owners, and exclusively limits it to use by visitors or guests. . . a corporation would not be able to install electric vehicle charging stations in the visitor’s parking for the use by owners or residents. For visitors, yes, that technically would be permitted, generally speaking, of course, but I would say no for the use by owners and residents.

“Now, the workaround—which is not really a workaround— is to amend your declaration, which is an onerous process. Each corporation should ensure to check its documentation and any development agreements because some development agreements require that corporations have a certain number of visitor parking spaces.”

So, does current legislation need to change to meet the demand we’re expecting in the very near future?

“It’s definitely possible,” says Fine. “The electric vehicle charging provisions right now are fairly new and in their infancy. Once amendments are introduced to help reflect some of the problems that are now being seen, it's possible that the legislation will continue to change to address the evolution of electric vehicles in condominiums.”

Thankfully, hope is on the horizon with revisions to the Condominium Act (Section 93) anticipated, allowing corporations to include green energy projects as approved reserve fund projects. Until then, using the reserve fund for a component, which has not yet been budgeted for, means taking funds away from a repair or replacement which has been preplanned. As always, it is best to consult your corporation’s legal counsel before moving ahead. 1 Greg Fraleigh is President of The Enfield Group Inc.

44 CONDOBUSINESS | Part of the REMI Network

www.REMInetwork.com | June 2022 45

MANAGEMENT

OFFSETTING THE COST OF EV CHARGERS New rebates bring some relief

I n Ca n a d a , t h e g o v e r n i n g L ib e r a l Pa r t y announced a

BY ILIA ALEXEEV

mandatory target for all new light-duty cars and passenger trucks to be zero-emission by 2035. Many suburban homeowners are warming up to the idea of trading in their tried-and-true gasoline engines. With gas prices on the rise, and the federal government expanding its electric-vehicle rebate program in April to include new larger, more expensive offerings from automakers, it may not be difficult to justify an investment in an upgraded 200-amp service and a home charging station.

46 CONDOBUSINESS | Part of the REMI Network

TECHNOLOGY

The same is also true for new residential a n d h i g h - r i s e c o n s t r u c t i o n w h e re developers are keen to take advantage of clean technology incentives and rebates and recognize the long-term benefits of an all-electric infrastructure. However, the path to real EV adoption lies in building a robust infrastructure for city dwellers who did not have access to this technology in the past.

An EV Challenge in Older Buildings For residents of older, existing multitenant condo and residential buildings, charging station availability is a major issue. An April 2021 Metro Vancouver Climate Action Committee report found that despite EVs being key to the region reducing its carbon emissions, there wasn’t enough infrastructure in multiresidential buildings for drivers to charge their vehicles at home.

Installing one or two charging stations in older buildings shouldn’t present a problem. The additional electrical load won’t be significant and should be easily supported by the existing infrastructure.

But ultimately, adding more than a few stations is where mass adoption may come to a screeching halt since the costs to retrofit an entire parking lot are significant.

A Challenge for Energy Providers Energy providers have been optimizing the way their grid is utilized for about a decade now. Many of us are familiar with time- of-use rates which enable us as consumers, and as Canadian citizens, not only to manage energy costs, but also to be more conscious of our collective energy usage and how it affects the infrastructure and the country we live in.

With the advent of mass EV charging, grid utilization patterns will experience a paradigm shift as hundreds of thousands of Canadians plug in their EVs after work.

As governments continue to promote adoption of zero - emissions vehicles, our energy providers are challenged to scale their distribution grids to be able to accommodate significant loads associated with hundreds of thousands of future charging stations.

A Range of Rebates Fortunately, there are rebates available to offset the cost of installing EV chargers.

For example, B.C. and Québec offer rebates specifically targeted at multiresidential buildings.

In B.C, there are two provincial rebate options: the EV Ready rebate program and a standalone EV charger rebate.

• For the first, there are three components.

A rebate of up to $3,000 is offered for the creation of an EV-ready plan, which is defined as a professional strategy to have at least one EV charging spot available for each residential unit. The EV Ready infrastructure rebate offers buildings up to 50 per cent of costs to install the electrical infrastructure required to implement the EV Ready plan, to a maximum of $600 per parking space and a project maximum of $80,000. Finally, as of May 2022 the EV charger rebate has some limited-time increases, and offers up to $4,400 per charger (regularly $1,400) to purchase and install Level 2 networked EV chargers to implement your building’s E V

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Ready plan, to a maximum of $25,000 (normally $14,000).

• As of May 2022, the second rebate offer has also increased temporarily.

The EV charger rebate provides up to $5,000 per charger (regularly $2,000) for the purchase and installation of Level 2 networked EV chargers at residential parking spaces. This is up to a maximum of $25,000 (regularly $14,000).

In Québec, buildings can receive 50 per cent of eligible costs for the acquisition and installation of EV chargers, up to a maximum of $5,000 per wireless station or $5,000 per connector for charging stations with one or more connectors, which allow for simultaneous recharging for the equivalent number of electric vehicles. The maximum total a building can claim through the program varies depending on the number of units. The maximum for a building with 20+ residential units is $25,000.

Nationally, Natural Resources Canada accepted requests for proposal (RFP) for charging in public places, on-street, multiunit residential buildings, workplaces and

light-duty vehicle fleets until August 11, 2021. For Level 2 chargers, the ministry offered to cover up to 50 per cent of the total project cost, up to a maximum of $5,000 per connector. The ministry plans to launch another RFP process early this year.

The Solution With many people still working from home in the face of the global pandemic, smart building and smart community solutions aim to enhance the way property managers operate their infrastructure. Submetering systems, moisture sensors for leak detection and indoor air quality — among other Internet of Things (IoT) devices — are quickly becoming essential to providing an efficient and safe environment, especially in multi-residential buildings.

Experienced utilities providers can offer a robust smart building platform to ensure EV stations are seamlessly added to the building infrastructure as easily as installing new applications on a cellphone.

Besides providing a common interface to manage various maintenance tasks (service calls, resident move-in/out, etc.), these

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platforms can easily pair new EV chargers to their respective owners, so once the necessary power cabling is complete, energy consumption is added to the tenants’ electricity bills.

Accurate billing of residents and visitors for station usage is an out-of-the-box service, but as more stations are added to the platform in the future, energy and property managers will leverage the smart building and EV infrastructure to ensure optimal energy utilization, manage demand, and monitor other building operational efficiency metrics.

Rebates offered by the Canadian government significantly offset the initial costs, making it more affordable to set up an EV charging footprint and attract new residents— transforming the charging infrastructure into a stable source of recurring revenue.

There are many new solutions to put EV infrastructure within reach for Canadian developers and property managers looking to do their part in making the country a safer, cleaner, and smarter place to live. 1 Ilia Alexeev is a solutions architect with Trilliant, a global provider of smart communications platforms.

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CATASTROPHE MODELING TOOLS Securing Appropriate Property Coverage and Mitigating Risks

From summer hail storms in Ca lga r y to f lood ing in Br it ish

BY DRU DOUGLAS

Columbia to windstorms in the Eastern provinces, the big story of 2021 was catastrophic losses. In fact, Canada hit $2.1 billion in insured losses last year, the sixth highest in insured losses since 1983.

50 CONDOBUSINESS | Part of the REMI Network

FINANCE

At the same time, residential property risk The Impact of Catastrophic Exposures on increased, including for condo buildings. As the Real Estate Market a result, real estate owners with multi-family Western Canada faced an extreme heat high-rises in their portfolio are beginning to wave last summer that shattered all previous layer policies just to secure their baseline records, and wildfires led to issuing 181 coverage needs. evacuation orders and the burning of 8,700 Planning in 2022 is more worrying than square kilometres of land in B.C. alone. usual. With hard-to-secure coverage and While these stories may seem extreme, limited policies available, many property they are no longer rare. Climate-related owners and condo boards are stressed over catastrophes are growing around the the possibility of frequent and significant world, both in frequency and severity, claims without adequate coverage in place and the possibility of catastrophic losses for when the next catastrophe hits. should be taken into account during the In 2022, insurance professionals will planning stages. Whether your condo is be relying on risk management tools like near woodlands or water, it is at risk from catastrophe (CAT) modeling to help owners wildfires, flooding and even extreme heat understand their financial risks and secure waves. And since the costs of CAT claims appropriate coverage — a trend that will can be so high, it’s not realistic to self-fund. actually help mitigate risk over time and even The real problem is that the trend is DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 lower the costs of coverage as well. continuing into 2022.2:44 ThePMresidential real

Risk Management Tools to the Rescue Globally, first-half 2021 catastrophe losses reached $42 billion, of which $40 billion was related to natural disasters. With scientists expecting the climate-related disasters to continue, it would be easy for condo boards and operators to give up.

Instead, real estate owners and operators are digging in to the data, working intimately with tech tools such as catastrophe (CAT) modeling to provide information and make the right choices when it comes to risk management.

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estate market will be particularly affected, with reinsurers exiting the market, drying up capacity. As a result, there will be fewer coverage options and higher rates for condo buildings, particularly in areas where catastrophes are more frequent.

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FINANCE

“There will be fewer coverage options and higher rates for condo buildings, particularly in areas where catastrophes are more frequent.”

In short, CAT modelling is a computerized process that simulates possible catastrophic events in order to estimate the amount of loss that stems from those events. When done right, this kind of data analytics connects data sets to draw important conclusions, such as helping property owners understand their risk, estimate suitable policy limits and even secure appropriate coverage.

At the same time, however, traditional, low-tech risk solutions and controls, such as water mitigation and disaster recovery planning, will never go away completely. In many cases, you may be able to secure lower rates by creating risk mitigation plans that are unique to the building, training your staff to implement

those plans and allowing regular on-site inspections.

Underwriters have begun to take notice of the trend. As a result, they are beginning to require CAT modeling and other predictive tech for large real estate portfolios as a means of mitigating risk and providing coverage.

Owners may also discover that they need to paint a clear picture of their risk management processes and operational controls — whether high- or low-tech — in order to secure any coverage at all.

Best practices in the 2020s Higher prices for less coverage seem to be the trend — and the challenge — of the 2020s. To counter that challenge,

it’s imperative that condo operators and boards demonstrate best practices in risk management. Owners who want to reduce their exposure and increase resiliency will need to engage both new tech and traditional controls across their portfolio — regardless of location, condition and catastrophe exposure.

Appropriate coverage will be difficult — but not impossible — to find, and successful real estate owners and operators will have to go the extra mile to secure it. 1 Dru Douglas is an account manager for the Ontario region for global insurance brokerage Hub International. He specializes in insurance and risk solutions for the office, retail, industrial and multifamily sectors of commercial real estate.

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Costa advised that he no longer wished to occupy his role as president. The emergency meeting took place at the defendant’s (MTCC 1292’s) premises.

At the emergency meeting, the plaintiff and Mr. Da Costa entered into a heated argument, which led Mr. Da Costa to “lose it” and strike the plaintiff on the head with a chair. Mr. Da Costa was charged by the police and received a conditional discharge for assault with a weapon. iff commen The plaintiff commenced a civil action against Mr. Da Costa fo for his use of force as well as MTCC TCC 1292 for fo failing to ensure her safety and nd failing to employ security meet measures at board meetings.

MTCC 1292 brought a motion summary judgment otion for su to dismiss the plaintiff’s plaintiff’ claim against it nly opposed by Mr. Da Costa which was only given his crossclaim MTCC 1292 ossclaim against ag on and indemnity. inde for contribution

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their premises reasonably safe for those who enter it. But what about when an individual commits assault while at one of these meetings? Should the occupier or organizer of the

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In Omotayo v. Da Costa, 2018, the defendant occupier, Metro Toronto Condominium Corporation 1292 (MTCC 1292), was successful in dismissing the plaintiff’s claim and the assailant’s crossclaim when a member in attendance at a condominium board meeting struck another meeting attendee with a chair.

Justice Nishikawa found that the duty the condominium corporation owed to the plaintiff did not include preventing an assault that occurred during their condominium board meeting.

Facts of the case T he plaintif f, J ac queline O mot ayo, was a resident and former chair of the condominium corporation. The defendant, Jose Da Costa, was also a resident and former president of the condominium corporation. An emergency board meeting was held on Oct. 4, 2011, to discuss the future organization of the board as Ms. Omotayo had recently been removed from her position as chair and Mr. Da

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

Let’s face it, we all want our businesses to be social media rock stars, and we know it ain’t easy.

It’s becoming more prevalent that some of the most popular social media platforms have been infiltrated by those who game the system.

This includes those that buy fake followers and “likes” in order to create the illusion that their social media profile is more popular than it is.

These fake followers are predominantly bots – accounts run by software designed to look and act like real people.

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New services are also popping up that allow authentic social media accounts to become part of the bot game. By signing up for the service, the user authorizes their account to automatically like, follow and randomly comment on other users’ posts, and in turn they trade that fake engagement with other users. Sound harmless enough? The thing is you have no say in in the message your account is spreading or where it ends up.

CARING FOR FRAGILE FLOORS

Summary judgment motion udgment m positi MTCC took the position that its duty w is confined confine to the physical under the law condition of the premises premise and foreseeable e unforese risks, not the unforeseeable conduct of individuals in attendan attendance. Meanwhile, Mr. Da Costa that MTCC 1292’s a argued th s to having rules of conduct duty extends s, policies re for meetings, relating to abusive l an gu a g e, thre at s aan d intimid atin g d a duty to h behavior, and hire and supervise competent professional professionals to oversee its luding, if appropriate, ap business (including, security Cos further argued personnel). Mr. Da Costa ult was foreseeable fore that the assault given the M quarrelsome nature of MTCC 1292’s board nd a prior unrelated u meetings and incident involving the plaintiff and another member of MTCC 1292 wherein the police was 292 wherei called. ng her dec In reaching decision, Justice Nishikawa looked Coleiro v. Premier ooked to C s where summary sum Fitness Clubs judgment d in favour of the defendant was granted

MALL GERMS: TOP FIVE HOT SPOTS

Ask yourself this: What’s more important, having 50,000 cosmetic followers, or having

500 followers who are in your target market REMEDYING FOUR that actually want to hear from you?

COMMON CARPET As a consumer, it’s even simpler, as PROBLEMS deceptive tactics are easy to spot. If you’re using underhanded methods to promote your business, this can be viewed as a reflection of your product or service. Your integrity is at stake.

This is one of the more complex topics that can’t be fully covered in this space. As always, I invite you to stay social and continue the conversation on Twitter at @Chestergosocial where I’ll share a link to the full article.

SCENT OF

SUCCESS Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.

www.REMInetwork.com | June 2018 15

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World’s Tallest Passive House Planned for Vancouver A 60-storey, 501-unit residential development is planned for downtown Vancouver. According to developer Brivia Group, it will be the world’s tallest passive house building and will set the record in the category of low-carbon, energy efficient buildings.

“Designed to harness its own energy, deliver ultra-filtered air and attenuate noise from outside, Curv will be the most energy-efficient structure of its type ever built,” said Kheng Ly, president and CEO of Brivia Group. “We hope it will quickly become a blueprint for future towers around the world as cities push for a more sustainable future.

The idea of a super-tall passive house tower is especially fitting in a city with such high environmental aspirations.”

Inspired by nature, the architecture of Curv takes on the curved form of a new shoot, a symbol of regrowth and environmental hope. 1

Bike-Centric Condo Bound for Gas Station Site Windmill Developments is transforming an existing gas station and garage into a mid-rise development at Kingston and Courcelette Roads in the Upper Beaches area of Toronto’s East End. Named for the street upon which it will rise, Courcelette will be an eight-storey, 57-suite boutique community, with neighbourhoodfocused retail on the ground level and a balcony for every suite. The building will feature one bike parking space per suite, a dedicated bike entrance and a bike repair/wash station. Residents, tenants, and the neighbouring community will have access to a car share program.

Courcelette will follow the One Planet Living framework, which comprises ten principles, including measurements around active transportation, health, and happiness. The development is also targeting LEED Platinum certification and aiming to meet the Toronto Green Standards, Tier 2, with a high-performance envelope and a geo-thermal system for heating and cooling. It will also have electric vehicle chargers and infrastructure. 1

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