Condo March 2015

Canada’s Most Widely Read Condominium Magazine

March 2015 • Vol. 30 #1

BUILDING CHECK-UP Vital signs of a healthy living environment

Green O&M Next gen gyms No-smoking rules

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Contents FOCUS: HEALTHY BUILDINGS

18

Health facilities and programming fit for a new generation

By Mark J. Stables

20

Making a green sweep

By Stephen Ashkin

22

Eco-friendly pest management

By Alice Sinia

28

Why radon should be on your radar

By Scott Cryer

30

Smoke-free communities

By James Katz

IN EVERY ISSUE

10 54

Ask the expert Smart Ideas

Innovative thinking. Practical results.

Structural Restoration Structural Engineering Building Science Parking Facility Design

FEATURE

14

Financial recovery after fraud

DEPARTMENTS

36

Legal New owners and unapproved alterations

40

Maintenance Weathering pothole season

42

Finance Green loans and energy retrofit financing

44

Management The ins and outs of submetering

48

Technology Neighbourhood watch

50

Sustained occupancy

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EDITOR'S LETTER

Associate Publisher Mitchell Saltzman

Healthy Building Index

Urban living started to fall

Revolution,

out of favour during the Industrial

marred by the crime, disease, pests and pollution found in city slums at the time. Our answer to overcrowding and unsanitary conditions was separation, which has most notably endured in the form of suburbs, as journalist Charles Montgomery recounts in the book Happy City.

Today, the trend has reversed. No surprise given Ontario’s legislation aimed at curbing sprawl and intensifying urban centres. Of course, we’ve also made dramatic strides on many of the 19th-century scourges that sent city dwellers scattering in search of refuge. But it begs the question: Now how do we measure the healthiness of our living environment?

Delos’ pilot WELL Building Standard® aims to provide a benchmark for human wellness in the built environment similarly to the way LEED provides a benchmark for energy and environmental design.

The standard, informed by input from building industry pros and medical scientists, covers buildings including newly constructed or majorly renovated multi-family residential. Performance is measured in seven categories: mind, comfort, fitness, light, nourishment, air and water.

With these categories in mind, CondoBusiness’ March issue presents a package of articles on amenities, operations and maintenance methods, and rules aimed at supporting occupant wellness.

Mark Stables shares what millennials are looking for in fitness facilities; Scott Cryer explains what radon is and why building managers should be testing for it; and James Katz talks about a court case on smoke migration and tools for creating a smoke-free community. Think of it as an informal healthy building index.

Plus, a feature on financial recovery after fraud looks at why, after finding irregularities, a condo corporation may want to make their first call to a lawyer, not to police.

This month, we also introduce an Ask the Expert column, where we pose a topical question to subject matter pros. For our inaugural column, we asked local landscapers for advice on making the most of the type of limited green spaces commonly found at condos landlocked in the downtown core. To suggest a question or participate in a future column, email me at michellee@mediaedge.ca.

Fortunately, as we return to denser urban living, we don’t have to worry about the same health and safety concerns as our forebears. These days, one of our main concerns around living in close quarters is getting along with our neighbours — but that’s another big topic for another issue.

Editor Michelle Ervin Advertising Sales Sean Foley, Robert Koven, Stephanie Philbin Senior Designer Annette Carlucci Designer Jennifer Carter Production Manager Rachel Selbie Contributing Writers

Mihae Ahn, Stephen Ashkin, Scott Cryer, Jason Falbo, Robin Farley, James Katz, James Kennedy, Lou Natale, Alice Sinia, Mark J. Stables, David Thiel

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Kazi M Shahnewaz

647.887.5676 k.m.shahnewaz@condominiumliving.ca

THIS MONTH’S ONLINE EXCLUSIVES ALL THE BUZZ

Ontario aims to move new Condo Act this spring The Ontario government is aiming to introduce a modernized Condo Act this spring, Minister of Government and Consumer Services David Orazietti told CondoBusiness in a phone interview.

Specifically, Min. Orazietti said the government is targeting the spring session of the provincial legislature, which runs from Feb. 17 to June 4.

Canary Park condos prepared for Pan Am Games The Canary Park condos are nearly ready to be turned over to the Toronto 2015 Pan Am/Parapan Am Games organizers for fit-up for the athletes, coaches and officials who will bunk there this summer. Soon after the games, the condos, along with the rest of the 35-acre site, will undergo another round of rapid transformation as the Athletes’ Village is converted to its legacy uses.

GTA housing market faces structural challenges A weak diversity of housing choice, marked by the steady stream of ever-shrinking condo units, is one of three structural challenges facing the GTA housing market, according to a special Jan. 19 TD Economics report. Alongside decreasing selection are the challenges of deteriorating affordability and a strained transportation system.

How a purpose-built luxury rental is gaining economic viability.

FROM THE GREEN BIN

A steel-manufacturing company showcases its stormwater management project and becomes an industry frontrunner.

EXPERT ADVICE

Susan Richardson, co-founder of and principal coach at Leadership That Matters, suggests these time management tips to strike a better work-life balance.

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ASK THE EXPERT

How to create an outdoor oasis in the city With Ontario’s planting season around the corner, CondoBusiness asked local landscaping experts for their number-

one tip for urban condos with limited green spaces. Here’s what they had to say: Choose bold containers One way to maximize the impact of planting is with bold containers. Look for fiberglass and steel, either custom made or off the shelf. Then fill the containers with all-season arrangements. In general, try to do away with predictable annuals.

Favour perennials and even compact flowering shrubs that extend the flowering season. Corporations can save thousands over the years with plant materials that return rather than being trashed.

Kent Ford, founding member, Kent Ford Design Group Inc. Introduce urban agriculture Use the planting areas to introduce urban agriculture oppor tunities. These opportunities can be presented through a series of growing garden planters that sit amongst the ornamental plantings. This will support the increasing interest in farmto-fork lifestyles by enabling residents to contribute to food production.

Jackie VanderVelde, landscape architect/founding principal, Land Art Design Landscape Architects Inc. Pick a focal point The first consideration should be ‘how is the space to function’ within the space limitations? Is it recreational space or a planted garden? These spaces can potentially become ecological resources close to the urban city core. Consider using a small tree (Paperbark Maple) as a focal point under planted with small evergreens (Emerald spreader Japanese Yew). If against a building wall, the background perimeter could be planted with groups of Hosta combined with medium-sized grasses.

Ron Swentiski, principal, Trillium Associates Go vertical Go vertical: Smaller spaces may have horizontal limitations but not necessarily vertical restrictions. Features such as a pergola, arbour or lattice can completely transform a space into a grand and welcoming space.

Frank Aiello, landscape designer, Green Leaf Landscaping Limited Mix annuals and perennials Incorporate a mix of seasonal plantings (colourful annuals) with perennial foundation plants for year-round interest. Daylilies are an excellent choice of perennial, as are Hostas and ornamental grasses. Keep these gardens healthy and beautiful by installing a smart irrigation system that operates based on weather data. Further enhance the gardens with landscape lighting.

Nathan Helder, president, Gelderman Landscape Services

10 CONDOBUSINESS | www.condobusiness.ca

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FEATURE

Financial recovery after fraud A condo corporation suspects

BY MICHELLE ERVIN

it has been defrauded. Time to call police, right? Not so fast, according to condo lawyer Chris Jaglowitz. Turns out it’s more

complicated than that. Misconceptions to the contrary, he said, going to police is not the surest path to financial recovery.

Jaglowitz, partner at Gardiner Miller Arnold LLP, has handled condo fraud cases and is currently working with a few corporations that claim they have been victimized by an alleged rogue management firm that’s still at large. The case — in which police have yet to lay charges despite possessing what he believes to be compelling evidence — has illuminated a larger lesson for corporations.

“In the words of Law and Order, the police’s job is to investigate crime and the state’s job is to prosecute the offenders,” he said. “It’s not their job to return money to victims of crime.”

While Jaglowitz recognizes that police play an important role in bringing fraudsters to justice, he advocates that corporations prioritize the civil process over the criminal process. If the corporation has the resources to do both simultaneously, great, but its own financial recovery hinges on getting good advice and taking decisive steps fast, he said.

W i l l i a m S t r a t a s g e n e r a l l y a g re e s with Jaglowitz about prioritizing the civil process. Stratas is the managing director of Eagle Audit Advantage Inc., a firm that specializes i n f r a u d p reve nt i o n , d ete c t i o n a n d inve s t i g at i o n fo r c o n d o s . H oweve r, he added that corporations ought to invoke the indemnific ation clause in t h e i r m a n a g e m e n t c o n t r a c t b e fo re proceeding with formal legal action.

The indemnification clause essentially protects condo corporations by holding

the management firm responsible for any damages or losses incurred as a result of the contract.

“In the context of condo management agreements, the fundamental presumption is that the volunteer board does not have professional training and relies 100 per cent upon the recommendations and the leadership of their trusted management agent,” said Stratas.

“Therefore, the typical management agreement is ver y strong in indemnification. I’ve yet to see one that’s anything less than basically promising you will be covered for all losses.”

As soon as a corporation suspects financial irregularities, Stratas said it should enlist a certified fraud examiner (CFE) or certified professional accountant (CPA) with forensic accounting qualifications to review its records and prepare a schedule of losses.

Then, stressing that he is not giving legal advice, he said he recommends that a corporation take two steps, with guidance from its lawyer.

As a first step, a corporation would have its lawyer send a letter simply outlining the discovery of unexplained anomalies.

The idea, said Stratas, is to allow the management provider to respond without threat of further action. The letter also serves as a time-stamp for when the corporation became aware of the anomalies, after which the corporation faces a two-year deadline for commencing civil action.

As a second step, in the absence of strict

14 CONDOBUSINESS | www.condobusiness.ca

proof that the anomalies are in fact valid condo expenses, the corporation would have its lawyer send an itemized demand letter.

In taking these steps, Stratas emphasized that it’s unnecessary to point fingers. It’s enough to assert, for example, that the management firm paid out a series of phony invoices it shouldn’t have and, due to the error, the management firm owes the corporation full reimbursement.

“Leave the messy business of assigning blame to someone else if they care, but what you want is recovery,” he said. “Now, it gets stickier when it’s a bigger scale of anomalies … anomalies in the hundreds of thousands … and that’s where, typically, more serious consequences arise.”

Det. Rudy Martin, of Toronto Police Ser vice’s Financial Crimes Unit, was the lead investigator in the infamous M a n zo o r K h a n c a s e, i n w h i c h t h e president of a property management firm allegedly bilked seven Toronto area condo corporations of an estimated $20 million. The Khan case went through lawyers first and was brought to police some months later.

Martin said Jaglowitz is technically right that the civil process is faster.

“Our court orders are very difficult to get, and time - consuming as well,” he s ai d . “ W hen we d o p ro d u c ti o n orders just to get the banking records, we have to be full, frank and fair in providing the justice of the peace all

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FEATURE

the material we have to show … to get that information.”

Often, police will work hand-in-hand with civil law yers, Det. Mar tin said, citing one c ase he was involved in where police coordinated an arrest with a mareva injunction.

“They were ready to seize all the person’s assets,” he said, “and then I was ready to MJW_halfPage_island_V2_BLEEDS.pdf arrest them a day or two later, preventing them from fleeing.”

1

In the Khan case, the accused had already fled to Bangladesh, said Det. Martin. Police lost the money’s trail after it was laundered out of the countr y.

Having exhausted all means of bringing the accused back to Canada, Martin has stopped the investigation.

Still, in cases where an accused rogue remains in the country, civil recovery only 2015-03-12 12:02 PM goes so far. Often the stolen funds have already been spent, said Jaglowitz.

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16 CONDOBUSINESS | www.condobusiness.ca

Condo corporations have a number of time-sensitive tools for recovery at their disposal. For example, if a fraudulent cheque is caught within 30 days of a bank statement, a corporation can demand reimbursement from the bank.

In cases where the rogue has played a “shell game,” a condo corporation may be able to track down their missing funds.

“Where the money from Condo A went to fund the roof repair at Condo B, we actually sued Condo B and said, ‘You used our money that you got from the bad guy to fund your roof repair, so now you’ve got to pay us back,’” he said. “And we did make significant recoveries using that method.”

The best case scenario would be to stop fraud from occurring in the first place.

Jaglowitz pointed out that even if rogue managers are convicted and sent to jail, Ontario currently lacks the legislation to b a r t h e m f ro m re - e nte r in g t h e profession after serving their sentence.

Cases such as the one he is currently working on add increased urgency to the provincial government’s pledge to introduce licensing for condo managers, a regime expected to include this type of safeguard, he said.

Minister of Government and Consumer Services David Orazietti said he appreciates the sense of urgency of moving forward with the modernized Condo Act, which will include licensing for condo managers.

Min. Orazietti specified that the Ontario government is aiming to unveil the legislation during its spring session.

Said Orazietti: “I believe that the legislation will also assist with the incidents or issues around fraud, frankly because the transparency and governance components around requirements for boards and condo managers will raise the standards under which they will conduct business.”

For now, Jaglowitz said, boards can protect their corporations through vigilance.

That means reviewing monthly bank statements, being closely involved in the condo’s finances, conducting annual audits and calling in accountants and lawyers quickly if anything appears amiss.

“Running to the police and making complaints is not going to solve their problem,” he said. “It seems like the right thing to do … but in this instance, it’s not effective to either prevent fraud or recover money.” 1

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HEALTHY BUILDINGS

Health facilities and programming fit for a new generation The landscape of condo health and fitness is evolving. The 1980s-

BY MARK J. STABLES

era aerobics classes, stair climbers, ab-rollers,

and recreation

management are in retrograde, and a new generation of health-obsessed condo dwellers has ushered in the need for innovation.

Condo demographics and exercise trends As urbanites increasingly opt for the conveniences of condo living, today’s residents seek the best in health and fitness amenities as well as challenging and engaging new programs. Although condo dwellers still aim to get healthy and fit, they are demanding a new approach to exercise in residential environments.

An emerging, younger condo demographic wants affordable group

fitness classes such as yoga, Pilates and boot camps. These workout options have made exercise more enjoyable, accessible and social, marking a shift away from traditional health club memberships and fitness services such as personal training.

Though this dominant condo demographic is driving fitness and technology innovation, the aging b a b y b o o m e r s s t i l l h o l d s to c k i n private health and fitness ser vices.

The latter demographic desires more

18 CONDOBUSINESS | www.condobusiness.ca

focused personal attention for postrehab, managing injuries, health contraindications, and disease prevention.

How recreation programming has changed In the 1980s, a contracted recreation director who had limited fitness knowledge and facilitated bus trips or billiards clubs may have addressed the general needs of residents. But today, condo dwellers are highly educated and

HEALTHY BUILDINGS

sophisticated and expect those working with them to have the same type of expertise in their field.

The next generation of fitness consulting companies strives to cultivate healthy communities by taking a personalized approach. It’s an approach that addresses the new era of condo ‘lifestyle,’ while remaining mindful of condo fees.

T hese companies tailor ‘lifest yle’ programming to a building’s demographics and its residents’ unique interests. A few examples of this type of programming include celebrity chef or nutritionistled cooking classes; a wine, whiskey or scotch tasting with a sommelier; and painting classes for kids. These are only a few programs that can help promote a social community around a condo’s particular lifestyle.

Supporting programming with the right facilities It’s hard to address the health and fitness needs of a building’s demographics w i t h o u t t h e p r o p e r ‘p l a y g r o u n d .’

Consulting companies work with builders at the early stages of development to

create condo fitness amenities that can rival big-box gyms. They also modify and redevelop existing, older spaces to better suit a building’s demographics and its specific programming needs.

With the right playground, a condo can offer an array of health and fitness programming to residents — from TRX Suspension Training to spinning and from group fitness classes to functional training.

The newest generation of condo dwellers are not only seeking the most progressive health and fitness programming, they’re also demanding fitness equipment that brings exercise back to basics (think CrossFit-style training).

Achieving the proper playground is relatively straightforward. The modern gym provides ample well-lit space that addresses acoustic challenges. The modern gym is also outfitted with modern equipment set up for all ages (again, knowing the building demographic is paramount). Complementing these facilities with health and fitness professionals can help a building’s residents maximize their workout potential.

Altogether, these features make a building more attractive to potential buyers and tenants, and increase resale values. At the same time, they address the health and fitness needs of existing residents.

Since condo demographics are shifting, and exercise trends along with them, it now makes even more sense to invest in exceptional gym spaces that can be programmed to foster healthier, more vibrant communities. 1

Mark J. Stables is the founder and CEO of Benchmark Group & Movement Haus.

A renowned fitness and wellness expert with more than 17 years’ experience in the industry, Mark collaborates with condo developers and architecture and interior design firms to cultivate healthy communities internationally. Having spent more than 16,000 hours assisting thousands of condominium dwellers achieve optimal health, he has amassed valuable experience and insight into the functional design of condo health and fitness amenities and the way people use them. He also currently serves as the president of his condo board. Reach Mark at hello@benchmarkgroup.ca or 416-428-3536.

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HEALTHY BUILDINGS

Making a green sweep In 1997, a study of

healthcare

BY STEPHEN ASHKIN professionals working in hospitals in three U.S. states linked cleaning products used in the facilities to one-quarter of the work-related asthma cases among housekeepers — the people using the chemicals every day.1

Housekeepers were not the only ones at risk for increased asthma attacks, as was revealed in another study published a decade later. Nurses in many hospitals have high rates of work-related asthma as well, much of which is associated with the chemicals used to clean the facilities.

While the nurses are not using the chemicals directly, they are inhaling fumes from the chemicals. 2 These are but two of many studies conducted over the years that have shown a connection between traditional cleaning products and respiratory problems, skin and eye irritation, headaches, and other ailments.

These studies are of particular concern to c o n d o d i re c to r s a n d m a n a g e r s because they oversee facilities in which people live. While the housekeeper or nurse can walk away from unhealthy fumes at workday's end, residents of a condo building cannot. Chemicals that are marring indoor air quality or having

other negative effects can contribute to an unhealthy living environment.

If, in 19 97, after hearing about the hospital housekeeper study discussed earlier, a medical facilit y or a condo b o a r d d e c i d e d to s w i tc h to g re e n cleaning products, it may have found the journey difficult. The key problem was that, at that time, there were no indep endent org aniz ations that had created criteria outlining what exactly was required to make, for instance, a window or all- purpose cleaner green.

And along with no criteria, there was also no independent way to certify that a product had a reduced impact on the environment.

Jump ahead to today, and all of that has changed. At one time, manufacturers took existing chemicals and re-engineered them to meet green standards. Today many, if not most, new professional cleaning chemicals are developed and

20 CONDOBUSINESS | www.condobusiness.ca

manufactured to be environmentally preferable from the start.

A green cleaning product, as the term is being used here, is a cleaning chemical, tool, or equipment that has a lower impact on human health and the environment than traditional tools used for the same purpose. Chemicals also refer specifically to those that have been certified green by leading authorities such as GreenSeal or UL/Environment.

Here are some tips on selecting green cleaning equipment and supplies as well as hiring cleaning staff: Vacuum cleaners Select machines that have earned the Seal of Approval from the Carpet and Rug Institute. Among other things, this approval verifies that the vacuum cleaner has a highly effective air-filtration system designed to keep impurities from being released into the air as it is used.

HEALTHY BUILDINGS Floor machines Unfortunately, there is no Seal of Approval for floorcare equipment; however, condo directors and managers can select newer floor machines that use less water and chemical. Also look for floor machines that have built-in or passive vacuum systems. Floor machines can generate a considerable amount of dust. A vacuum system helps capture this dust, keeping it from being inhaled.

Stephen P. Ashkin is president of a consulting firm specializing in greening the cleaning industry and CEO of Sustainability Dashboard Tools, which offer a cloud-based dashboard that allows organizations to measure, report, and improve their sustainability efforts. He is also coauthor of both The Business of Green Cleaning and Green Cleaning for Dummies.

References 1. Pechter E, Davis LK, Tumpowsky C, et al. Work-Related Asthma Among Health Care Workers: Surveillance Data From California, Massachusetts, Michigan, and New Jersey, 1993–1997. Am J Ind Med 2005; 47:265 –275.

2. Delclos GL, Gimeno D, Arif AA , et al. Occupational Risk Factors and Asthma among Health Care Professionals. Am J Respir Crit Care Med 2007; 175:667– 675.

Cleaning cloths Some microfiber cleaning cloths have proven to be more effective at removing pathogens and soils from surfaces, and they typically use less water and chemical in the process than traditional terry cloths (cotton). Note: This may not be true of all microfiber cleaning cloths, so be sure to select high-quality cloths to receive these benefits.

A quick indicator of microfiber’s quality is where it was purchased. Janitorial distributors are more likely to sell higher grade microfiber than grocery stores or big-box retailers. Also, if a cloth pulls when run over the top of a person’s hand, it is a higher quality microfiber.

Cleaning staff It’s one thing to switch to green cleaning products, but it’s another thing to know how to use these products safely and effectively, and to protect oneself, building users, and the environment. Condo directors and managers should consider hiring custodial workers who have been trained by distributors on how to use these products and in green cleaning strategies. Both GreenSeal and ISSA, the worldwide cleaning association, now offer training programs that teach cleaning best practices overall, with an emphasis on green cleaning protocols.

Condo directors and managers who are concerned about the health and environmental impact of their cleaning program should be aware that the use of green cleaning chemicals does not, in and of itself, constitute a green cleaning program. Green cleaning is like a bicycle wheel. Each spoke in the wheel symbolizes a different cleaning product — a chemical, a vacuum cleaner, a floor machine, even a cleaning cloth — and if one spoke is weak or missing, it can affect the strength and stability of the entire wheel, or in this case, a green cleaning program. 1 March 2015 21

HEALTHY BUILDINGS

Eco-friendly pest management Today, in t he bu i ld ing and property management industry,

BY ALICE SINIA

sustainable practices are the norm. It’s not enough just to recycle anymore. From water and electricity to pest management programs,

businesses must consider their impact on the environment and how to implement environmentally conscious practices.

22 CONDOBUSINESS | www.condobusiness.ca

HEALTHY BUILDINGS

Pests can damage a building’s or property management company’s reputation, cause costly structural damage and negatively impact the health of residents and staff.

Pests, and the risks they pose, are often overlooked until there is an infestation. This leads to short-term reactive measures that can be costly and impact normal operations.

More importantly, these steps often fail to treat the main cause of pest pressures.

Therefore, it is important to empower property managers and their staff to identify pest hot spots and continuously monitor for early signs of pest activity. The key to an effective pest management program is to take preventative steps.

A n Integrated Pest M anagement (IPM) program is the one of the most environmentally conscious approaches to pest management. It focuses on sanitation, habitat changes and facility maintenance.

These proactive measures help prevent pest activity and minimize dependency on harmful products that can endanger the health of building occupants, making IPM a crucial step along a building’s road to sustainability.

Put prevention first Some of the biggest headaches for property managers stem from ants, cockroaches and flies. To combat these pests, start by making a facility air-tight. Potential pest entry points include cracks in a building’s foundation, damaged windows or vent screens, and gaps around doors and windows.

• Assess potential pest entry points around the building.

• C h e c k g u t te r s fo r l e a k a g e s a n d debris, which can cause moisture and attract carpenter ants.

• Trim any tree branches that have grown against exterior walls.

• Seal cracks and crevices throughout the building with weather-resistant sealant.

• Use weather-stripping around windows and install door sweeps on all exterior doorways.

• Implement and follow strict garbage management and sanitation measures to limit access to food and water.

Ants Bec a u s e o f t h e i r s t r o n g survival instincts, ant colonies can be difficult to control

once they have gained access to a building. One reason is that they leave an invisible pheromone trail for others to follow once inside. An infestation may require treatment, but the treatments for controlling these crawling pests can be targeted, using the least toxic products.

Baits are the safest and least toxic option. They come in different forms

including gels, granular and bait pucks, and feature a combination of attractants. Ants not only eat the bait but also share it with their colony. A pest management provider can apply these directly into infested areas, away from the public, offering a safer way to control and monitor these pests.

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HEALTHY BUILDINGS

Cockroaches Cockroaches are one of Earth’s oldest and most common pests.

They c an c arr y a number of disease-causing pathogens on their bodies, including salmonella and E. coli.

Repeated exposure to cockroach allergens such as shed skins and droppings also can exacerbate respiratory problems such as asthma in at-risk individuals.

The most common structure infestin g s p e c ies in C an a d a is the German cockroach, which is typically 13 to 16 millimetres in leng th and can be identified by its light brown, oval-shaped body with two dark long, parallel stripes on the thorax. German cockroaches reproduce ex tremely quickly, with a pair of cockroaches producing as many as 400 offspring in

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six months. This rapid reproduction is another reason to prevent an infestation from occurring in the first place.

While a strong IPM program should reduce the risk of cockroaches, the following monitoring tools are available: Available in gels or puck formulations, non-volatile baits can be placed in specific locations to target cockroaches, such as in cracks and crevices and high-traffic areas. Since they do not become airb orne, non volatile baits can be safely incorporated into pest management ef for ts when used correctly.

Glue traps offer an environmentally f r i e n d l y a n d e f f i c i e n t w a y to t r a p c o c k ro a c h e s w h e n p l a c e d in a re a s likely to attract the pests. In addition to t r a p p i n g c r a w l i n g c o c k r o a c h e s , they also serve as a monitoring device that allows a pest management professional to track the number and type of pest present.

Flies Flies are not just a nuisance to residents, but they pose a serious health threat, as they carr y dangerous microorganisms on their bodies and leave them behind every time they land. There are proactive and green tactics building staff can use to ground flies as well.

Environmentally responsible strategies for managing flying insects include: • Air Curtains – Fans can be mounted on top of entrances, creating a wall of a ir t h at im p e d e s fl y in g ins e c t p e s t s f ro m g e t t i n g i n s i d e . K e e p entrance doors shut at all times.

• Fly Baits – These baits, when applied on the exterior areas, can be highly effective as a means of reducing fly population.

Flies are attracted to and eat the baits, which can be in granular or liquid form.

• Insect Light Traps (ILTs) – Commonly known as fly lights, ILTs use ultraviolet light to attract and draw flies to a nontoxic sticky board trap. In addition to managing flies, these traps can also be used to help monitor and identify the types of flying pests you’re dealing with.

A pest management professional can help a property manager determine strategic locations to place ILTs.

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Proactive measures help prevent pest activity and minimize dependency on

harmful products that can endanger the health of building occupants • Fly Traps – Much like ILTs, fly traps draw insects in and trap them. A pest management professional can determine the specific species of flies plaguing a facility and choose the most appropriate traps and placements, out of view from building occupants.

• Eco-friendly cleaners – These cleaners use naturally occurring enzymes and beneficial micro-organisms to break down dirt and grime that can attract flies and provide breeding grounds. Consider using the professional cleaning solution (as per label requirements) on floors, around and in drains, and on sinks and garbage disposals to eliminate sludge that can attract and provide breeding grounds for a variety of fly species.

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It is important to note that IPM is not a one-time event, but an ongoing process to maintain a green pest management program. Pests are in constant search for the three survival elements — food, water and shelter. This puts all buildings at risk, but taking proactive sanitation and facility maintenance measures can significantly reduce the likelihood of their presence.

With these tactics, it’s possible to manage crawling and flying pests while making a building a little greener.

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Alice Sinia, Ph.D. is the Resident Entomologist – Regulatory/Lab Services for Orkin Canada focusing on government regulations pertaining to the pest control industry. With more than 10 years of experience, she manages the Quality Assurance Laboratory for Orkin Canada and performs analytical entomology as well as provides technical support in pest/ insect identification to branch offices and clients. For more information, email Alice Sinia at asinia@orkincanada.com or visit www.orkincanada.com.

26 CONDOBUSINESS | www.condobusiness.ca Premier_Elevator_1/2_Island_2014.indd 1

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March 2015 27 15-03-12 10:51 AM

HEALTHY BUILDINGS

Why radon should be on your radar After smoking, radon exposure

BY SCOTT CRYER

is t he ne x t lead ing cause of lung cancer. According to Health Canada, it is responsible for approximately 16 per cent of the country’s lung cancer deaths, claiming around 3,200 lives every year.

Radon is a naturally occurring radioactive gas caused by the breakdown of uranium in soil, rock and groundwater. The gas deteriorates into radon decay products (RDPs), which, when inhaled, can adhere to lung tissue and emit high-energy alpha radiation particles that can damage cells and increase the risk of lung cancer.

Present at extremely low levels in outdoor air, radon can become a problem if it accumulates to elevated levels inside a

building. Radon can potentially enter a building at any point where it is in contact with the subsur face soil or rock, including through cracks, sumps, floor/wall joints or unfinished floors in crawlspaces. Testing is the only way to detect elevated indoor levels of the invisible, odourless, tasteless gas.

H e r e’s w h a t c o n d o b o a r d s a n d managers need to know about testing for and mitigating high radon levels.

28 CONDOBUSINESS | www.condobusiness.ca

Radon testing There are two general categories of tests to measure radon: short-term tests (typically lasting 48 hours to seven days) and long-term tests (ranging from 91 days to one year). Radon levels in a building can vary significantly from hour to hour, day to day and even more so from season to season. Given these variances, long-term tests are better at estimating the annual average radon concentration in a building.

HEALTHY BUILDINGS Health Canada says that decisions for radon mitigation should be based on the result of a long-term radon test.

For occupied areas/rooms of buildings, Health Canada has set 200 Becquerels per cubic metre (Bq/m³) as the action level for mitigation. The term ‘occupied’ refers to those areas/rooms which are occupied by an individual for more than four hours per day. If radon levels exceed 200 Bq/ m³ but are less than 600 Bq/m³, Health C anada recommends mitigating the radon within two years. If levels exceed 600 Bq/m³, Health Canada recommends mitigating the radon within one year.

Mitigation strategies In buildings without a robust mechanical ventilation system, the most common and effective way to mitigate radon is to install a sub-slab depressurization (SSD) system. An SSD system draws air from beneath the building and exhausts it to the outdoors where it is diluted to safe levels. If a building has a robust mechanical ventilation system, the system can potentially be manipulated to dilute indoor radon concentrations and/or pressurize a building to essentially ‘push’ the radon out.

Efforts to limit indoor radon levels in newly constructed buildings are underway.

Specifically, the 2010 National Building Code (NBC) defines requirements for Readily Remediated New Construction (RRNC).

These requirements not only limit radon entr y into a building, but also m ake it simp ler to mitig ate rad on concentrations after a building has been constructed. Examples of these provisions include installing an airtight sump pit cover, caulking the slab perimeter and penetrations, placing granular fill and a soil gas membrane under the slab as well as roughed in piping for an active SSD system, if required.

T he radon - related aspects of the NBC have not been widely adopted in new construction in Canada. However, given the health risks of high indoor radon levels, it’s no surprise that more and more municipalities across the country are starting to implement them.

Owners and managers of existing buildings can reduce their risk by following Health Canada’s guidelines for testing and mitigating high radon levels indoors. If assistance is required, be sure to work with a certified radon professional. Health

Canada and the Canadian Association of Radon Scientists and Technologists (CARST) have established the Canada National Radon Proficiency Program (C-NRPP), which certifies and licenses professionals. Local professionals are searchable on the C-NRPP website: http://nrpp.info/cnrpp.shtml. 1 Scott Cryer is an operations manager with the Hazardous Materials group at Pinchin’s Mississauga, Ontario office. A professional geoscientist (P.Geo.) since 2004, Scott has more than 25 years of experience dealing with environmental, health and safety issues.

He is also certified with the Canadian National Radon Proficiency Program (C-NRPP) as a radon measurement and mitigation provider and a director with the Canadian Association of Radon Scientists and Technologists (CARST). Scott is one of the Pinchin Group of Companies experts on radon, providing consulting service to clients nationally regarding radon issues.

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COVER STORY

SMOKE-FREE COMMUNITIES

BY JAMES KATZ

Last year, the Ontario Superior Court of Justice ruled that a condominium board failed to handle complaints about smoke infiltration fast enough. The case concerned two Toronto condominium owners who had been forced out of their high-rise unit due to the pervasive infiltration of a neighbour’s cigar smoke.

Repairs eventually blocked the tobacco smoke from wafting into the owners’ unit but, due to the delay, the court found that the corporation had neglected its statutory duty under the Condominium Act to carry out repairs to its common elements. As a result, the court ordered the corporation to pay the owners $32,000 toward their legal costs.

COVER STORY

S

March 2015 31

COVER STORY

Some developers have set out smoking restrictions in the declarations of new condominiums, catering to the increasingly popular smoke-free lifestyle.

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T h e c a s e i s m o re t h a n a n ot h e r cautionary tale for condominium boards about the pitfalls of failing to exercise their statutory duties. The decision’s broader impact is this: condominium owners can now, in certain cases, insist on living smoke-free inside their units.

T he m ovem ent to m ake O nt ar i o smoke -free, already well established in public places and the workplace, has also made significant inroads into condominium living, as this recent cour t case demonstrated. Given the almost universally accepted facts that tobacco smoke is toxic, harmful to those who breathe it, and can ultimately be lethal, this is not surprising. What is surprising, however, is that establishing smoke -free condominiums has taken so long. The tools to accomplish this have been around for many years.

They include the rule-making authority vested in condominium boards by the Condominium Act, as well as statutory and other legal remedies.

A condominium board can make rules that promote the welfare and safety of owners and property, or that prevent u nre a s o n a b l e inte r fe re n c e w i t h a n owner’s use of their unit and common elements. Tobacco smoke likely falls under both categories, although there is no cour t decision to confirm this interpretation of the Condominium Act. M any co n d o m i niu m b o a rd s h ave already taken the prohibition - by- rule approach. Procedurally, it’s fairly easy to do: All the board has to do is pass a rule and provide notice of it to owners.

As long as the rule is reasonable, it sh o u l d b e e nfo rc e a b l e, b u t a g a in , there is no case law to confirm this.

To meet the test of being reasonable, such rules generally grandfather in

32 CONDOBUSINESS | www.condobusiness.ca CertifiedBuilding_Condo_2013.indd 1

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COVER STORY

If common element defects are to blame for smoke migration, then the

condominium corporation may have to locate the problems and fix them.

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existing owners who smoke in their units, allowing for a gradual transition to a completely smoke-free condominium.

Although likely not legally required, a grandfathering provision ser ves t wo purposes. For one, the board avoids h av in g to imm e d i atel y enfo rc e the new rule against existing owners who smoke. For another, the board pre empts possible legal action from existing owners who smoke and feel the new rule infringes on their property rights.

A more concrete but procedurally difficult approach is for the c o n d o m i n i u m b o a r d to a m e n d t h e corporation’s declaration to prohibit smoking in units and all common elements. Under the Condominium Act, the declaration can regulate how units and common elements are used.

H oweve r, the b o a rd re q uire s the approval of 80 per cent of unit owners to make such an amendment. If the board obtains consent, then the amendment prohibiting smoking b ec omes ef fec tive and enforce ab le as soon as it’s registered on title. A grandfathering provision need not be c o nsi d e re d , n o r is t h e a m e n d m e nt required to be “reasonable” in scope.

Despite the challenges of this approach, it has been used in a few condominiums since at least 2007. Some developers have also set out smoking restrictions in the declarations of new condominiums, catering to the increasingly popular smoke-free lifestyle.

Even in the absence of no -smoking rules, condominium dwellers have laws at their disposal to prevent tobacco smoke problems. As discussed earlier, the recent court decision established that second-hand-smoke problems are to be confronted, not ignored.

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COVER STORY

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34 CONDOBUSINESS | www.condobusiness.ca

In that case, an investigation revealed the cigar smoke in question was seeping into the complainants’ unit through openings left by defective construction. The Condominium Act requires corporations to repair common elements. The openings were in the communally owned concrete slab floor, which provided the court with an enforceable legal remedy.

In that case, the owners also cited the Condominium Act provisions that require condominium corporations to prevent health and safety risks generally. However, the court only required the one remedy. What this all means is that if common element defects are to blame for smoke migration, then the condominium corporation may have to locate the problems and fix them.

Condo owners can also turn to the Smoke Free Ontario Act, which prohibits smoking in indoor common elements, which likely includes exclusive-use common elements. This law applies to hallways, enclosed patios or balconies, and parking garages, but not outdoor areas and inside units.

Unit dwellers affected by smoke infiltration from another unit that is unrelated to defective construction can consider a complaint under the Ontario Human Rights Code. In situations involving proven medical conditions exacerbated by tobacco smoke, the Code has been effectively used to force condominiums to take immediate action to protect such owners and, in some cases, to pay damages.

Finally, owners who deal with excessive and frequent tobacco smoke problems may be able to rely on the common law tort of nuisance, which exists to stop others from substantially and unreasonably preventing owners’ use and enjoyment of their property. However, it is difficult to gauge the likelihood of this tool’s success at trial, as there is no published court decision on this issue.

Residing in a smoke-free condominium is now an increasingly popular lifestyle choice. Prospective condominium owners can expect to see more and more developers codifying this in their condominium declarations or rules. In the meantime, current owners will have to seek support from their board and other owners if they want to convert their established condominium into a smokefree dwelling, or rely on other legal rights for protection from the harm that tobacco smoke is known to cause. 1 James Katz is an associate lawyer at Nelligan O’Brien Payne LLP, and a member of its condominium law group.

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March 2015 35

LEGAL

New owners and unapproved alterations

BY DAVID THIEL An Ontario Court of Appeal decision released in December, 2014, has shone a spotlight on a problem condominium

cor porations

occasionally face: How should boards and managers handle

unauthorized alterations to a unit or adjacent common elements? The problem is especially difficult in cases where the unit has been, or is about to be, transferred to a new owner, as in the recent Orr case.

The Orr case Orr v. Metropolitan Toronto Condominium Corporation No. 1056 concerns a unit owner in a condominium townhouse complex who installed an unauthorized addition to the common elements. In effect, the owner converted an attic area into a third floor, unbeknownst to the board or management.

T h e p l a i nt i f f p u rc h a s e d t h e u n i t from the owner who had per formed the at tic inst allation assuming that

the third floor at tic was included in the unit. After the new owner and the condominium corporation discovered that the alterations were unauthorized, t h e p l a i nt i f f c o m m e n c e d l i t i g a t i o n against various par ties, including the condominium corporation, the corporation’s management company and the lawyers that acted for her on the unit’s purchase.

One of the Court of Appeal’s major findings was that the condominium

36 CONDOBUSINESS | www.condobusiness.ca

corporation made a negligent misstatement in the status certificate.

This led the court to award damages against the condominium corporation.

The relevant provision in the status certificate was the statement: “There are no continuing violations of the declaration, …” Note that this statement was not a required part of the status certificate and was voluntarily added.* No one inspected the unit in preparing the status certificate.

LEGAL

The Orr case raises serious concerns for condominium corporations, in par t bec ause of the costs involved.

The trial lasted 4 3 hearing days over three months, and the various parties’ combined legal costs appear to have been in the millions of dollars.

Preventative measures The ideal starting point for dealing with unapproved alterations is to prevent them.

For example, a condominium board may consider including written reminders to owners in notice of meeting packages or newsletters. Hopefully, reminders that alterations to the common elements must be authorized by the board will reduce the chance of owners undertaking unauthorized alterations in the first place.

The status certificate, of course, is a critical point for addressing unauthorized installations before the sale of a unit to a new owner. In particular, the Orr case raises the question of whether a unit inspection should be performed when preparing a status certificate.

T h e re a re v a r i o u s re a s o n s w h y inspections can be problematic. From a practical perspective, there is a capped fee of $100 for status certificates pursuant to section 18(2) of O. Reg 48/01 under the current Condominium Act, which makes it difficult to justify spending additional time on their preparation. What’s more, the condominium corporation must ensure that inspections are complete and note all potential violations of the current Condominium Act, declaration, bylaws and rules. Making a mistake here could expose the condominium corporation to additional liability, as it did in the Orr case.

But including inspections in status cer tific ates could enable the condominium corporation to address unauthorized alterations before a prospective buyer completes the p u rc h a s e. F o r ex a m p l e, i n O r r, a n inspection could have identified the u n a u t h o r i ze d a t t i c i n s t a l l a t i o n a n d prevented the complex litigation and substantial legal costs that followed.

Each condominium corporation

has to make its own decision as to whether inspections are wor thwhile or appropriate based on legal advice particular to its unique circumstances.

For example, a unit inspection in a high rise may not involve the same types of issues as those for a townhouse. At the least, a condominium corporation should not make an unqualified blanket st atement in its st atus cer tific ate, as was done in the Orr case, saying there are no violations of the Ac t , declaration, bylaws or rules. S ome qualified wording would be in order.

After discovery Having laid the groundwork set out a b ove, d e a lin g w i t h t h e d i s c ove r y of an unauthorized alteration after a new owner has moved in should prove less difficult. In these cases, a condominium corporation would be in a bet ter position to require removal of the unauthorized alterations and commence legal proceedings if the new owner does not comply.

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I have the privilege of employing a special group of dedicated, honest individuals who help our company service the most unique marketplace in Ontario, Condominiums.

We have worked shoulder to shoulder with the most unique professionals, Condominium Managers, administrators and superintendents, to provide Clothes Dryer Dismantling and internal removal of fire hazardous lint and dryer exhaust system cleaning in well over 200,000 residential condominium suites.

I and Dryerfighters staff have enjoyed personally meeting thousands of condominium unit owners throughout the years.

I wish to be the “FIRST TO THANK YOU as a group”. Thank you to all condo unit owners, who are likely one of the largest employers in Ontario. Thank you for employing tens of thousands of individuals.

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LEGAL

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The precise enforcement steps could heavily depend on the par ticular facts of these situ atio ns , s o c o n d o minium corporations should consult with their law yers first. The legal issues could be complex and involve legal proceedings to recover restoration costs from the previous owner.

A nother option for condominium corporations to consider is whether to a l l ow t h e a l te r a t i o n s to s t a y. I f, fo r example, the alteration is not entirely objectionable, it may be that the reasonable solution would be to approve it and effectively “legalize” the alteration.

This would be subject to an agreement with the unit owner, which, for proper authorization, would need to be registered on the unit title under Section 98 of the Act. Depending on the precise nature of the alteration, this may also require other steps as contained in the Act and the condominium corporation’s documents.

The Orr case demonstrates that the stakes are huge when dealing with new ow ner s and un author ize d alterations.

Inspections may help to address the issue before it becomes a bigger problem with the new owner, but each situation will be different.

8:50 AM *A nticipated changes to the current C o n d o m i n i u m A c t m a y a d d re s s t h e st atus cer tific ate form. In par ticular, the Condominium Act Review: Stage 2 Solutions Repor t makes the following recommendation: “The certificate should include a range of new information, such as a warning that the unit has not been inspected for alterations (unless otherwise stated)…” (emphasis added). 1 David Thiel is a partner in the C o n d o m i n i u m L a w G ro u p a t F o g l e r, Rubinoff LLP. He can be contacted at dthiel@foglers.com or 416-864-9700.

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March 2015 39

MAINTENANCE

Weathering pothole season Pothole season is nearly here.

BY ROBIN FARLEY

During the spring, more than at any other time of year, water infiltrates cracks in the pavement.

As water freezes and thaws repeatedly, the asphalt f lexes up and down, back and forth, and weakens. Adding to the assault, pooling water causes asphalt to breakdown prematurely.

When water makes its way below the asphalt, it begins to erode the sub base, leaving little or no support for the asphalt. This increases the size of the original crack and creates a pothole. Left neglected, cracks and potholes get bigger and multiply.

Fortunately, pavement maintenance season is also around the corner.

Property managers face a wide variety of solutions to repair and replace failing asphalt. W hen making a selection, consider safety (eliminating a trip hazard), the size of the corporation’s budget, and whether a short-term or long-term fix is needed. Here’s a survey of five options:

1. Cold patch For potholes, a quick, short-term fix is cold patch. A bag of cold patch can be brought at a hardware or home improvement store. The repair can be done in the winter time and quickly resolves urgent problems such as potholes, which are trip hazards. Cold patch is a temporary fix and the area often needs to be repaired again and again until a more permanent repair can be done.

2. Hot asphalt A fast, semi-permanent repair is placing hot asphalt into the pothole. The best time of year for this type of repair is from April to November. Hot asphalt will fail due to water penetration. Water will seep into the seams around the repair, the cracks will expand, and more potholes will form.

3. Saw cut, remove and replace Another similar repair is a saw cut, remove and replace. This is better than hot asphalt alone because the damaged edges are cut, debris is removed, and hot asphalt added then compacted. It lasts longer than hot asphalt alone, but potholes will form along the saw cut edges. Saw cuts do create seams and access for water. This is best suited for larger areas leaving only one cut at the perimeter, rather than many small cuts within the area.

40 CONDOBUSINESS | www.condobusiness.ca

MAINTENANCE 4. Seamless asphalt repairs Infrared seamless asphalt repairs uses new technology to provide excellent, permanent patching and spot fixes. Water will not penetrate the seams because there are no seams.

Infrared light is used to heat an area slightly larger than the damage area. Once the asphalt is soft and pliable, new asphalt is added and the old and new asphalt are blended. The edges are then pinched and compacted.

Seamless repairs can be done anytime of the year but are less costly from April to November. If the asphalt is too far gone, too old or poorly maintained, the next choice is repaving.

5. Repaving The gold standard in asphalt repairs, repaving can fix any problems with slope and pooling water in a parking lot. It works best when the old sub-base is removed and replaced. Beginning with the sub-base, proper grading ensures water flows towards catch basins and gutters. This is the time to make sure the grade or slope drains water away from areas where people walk and park their vehicles. Repaving looks new because it is.

The downside of repaving is it is very expensive and disruptive to traffic and pedestrian flow. The repaving season is a short season (May to October), as there shouldn’t be any frost on the ground.

The ultimate goal for many property owners and managers is to prolong the life of parking lots and roadways, and delay the need to repave until absolutely necessary.

Crack fill, which can be done from late April to early October, is cost-effective preventative maintenance. It seals the asphalt and fills and bonds to both sides of the crack, keeping water away from the sub-base, which prevents erosion. For crack fill to be most effective, cracks need to be 1.5 inches to pencil width. The hot rubber needs to “fill a space,” like an hour glass.

T h e ke y t o g o o d c r a c k f i l l i s preparation. A hot air lance will etch the walls of the cracks, using extreme heat to burn of f and blow away any debris, such as sand, dirt or vegetation, allowing for proper adhesion. Crack fill adheres better to a rough edge. The crack fill material should be of sufficient qualit y to expand during the winter months and shrink during summer.

Pothole season provides an opportunity to think about how best to maintain parking lots and roadways. There are a range of options for asphalt repair and replacement, including short- and longterm fixes. With proactive maintenance, property owners and managers can avoid premature asphalt failure and postpone expensive repairs. 1

Robin Farley is the vice- president of marketing and sales with Addaline Asphalt Maintenance. Addaline, serving property managers from Windsor to Oshawa, specializes in asphalt and catch basin maintenance and repairs, crack fill and line painting services.

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FINANCE

Green loans and energy retrofit financing G i v e n t h e o p p o r t u n it y t o generate energ y cost sav i ng s ,

BY LOU NATALE

energ y eff icienc y upgrades have become increasingly popular in the condo industry. The only catch is that condo developers or boards have to find a way to fund the upfront costs, because the savings come later.

Condo developers, directors and managers may have heard buzz words such as “green loans” and “energy retrofit financing” being bounced around. But what’s the difference between these programs? How does a developer-initiated green loan work? And how does a condo corporation pay for energy efficiency upgrades?

Herewith is a high-level overview of financing for green energy initiatives in both new and existing condos.

Green loans for new condos In recent years, a number of developers have constructed condos that surpass building code standards for energy efficiency. Their intent is to generate energy savings that will ultimately benefit unit owners over the life of the equipment they install. The predicament these developers face is how to pay for these energy-efficient upgrades while continuing to deliver sensitively priced new units.

A “green loan” is one way for developers to address this dilemma. The developer must clearly spell out in the disclosure and declaration his intent to incorporate energy-

efficient equipment, building materials and systems in a condo’s construction. On or shortly after the registration of the condo, the newly formed condo corporation enters into a loan agreement with the lender. The lender then advances loan proceeds directly to the developer, to reimburse any incremental costs incurred in acquiring energy-efficient equipment. Green loan payments are included in the condo corporation’s common expenses and reflected in the corporation’s annual operating budgets for the term of the green loan. Typical loan terms are fixed for five years. Amortization periods will usually range from five to 15 years, so that the resulting energy savings can offset the annual loan payments.

Before the lender will advance the loan, the developer must get a third party (typically an engineer) to verify the condo’s energy performance. This is to demonstrate that the condo has been designed and constructed to the standard the lender established as a condition of making the green loan.

The green loan concept is a win-win for developers and unit owners. The developer that constructs an energy-efficient building is

42 CONDOBUSINESS | www.condobusiness.ca

creating a higher quality building with greater long-term capital appreciation. The condo corporation directs funds that would have otherwise gone toward paying rising utility bills to paying down the loan. Once a green loan is fully repaid, unit owners continue to benefit from the utility cost savings. The environment is also a "winner" as a result of lower utility use.

Energy retrofit financing for existing condos As developers use green loans to finance energy-efficient equipment in new condos, existing condos are faced with a different type of challenge: how to pay for energysaving retrofits and improvements.

With energy costs on the rise, many condo boards are seeking ways to reduce their energy bills.

Some older condos are enlisting engineers or energy management firms to conduct energy audits and identify energy cost-saving measures. Quite often, energy savings will exceed the cost of energy-savings measures, with payback periods of less than 10 years in some cases. Although the costs

FINANCE may be partially offset by government financial assistance programs, condo boards must determine how to pay for the upfront costs of these energy-efficiency projects.

There are essentially three sources of financing for a retrofit project in a condo: the reserve fund, special assessment or operating budget, or financing (borrowing).

Section 93 of the Condominium Act states that the reserve fund shall be used only to fund “major repairs and replacements of the common elements and assets of the corporation”. Retrofit projects may qualify, but the reserve funds may not be available or may be needed for other, non-energy-related major repairs and replacements (e.g. roof replacement or underground garage waterproofing).

A board could fund all, or a portion of, an energy retrofit project through a special assessment or an existing accumulated surplus from the operating fund. It may also be possible to fund an energy retrofit project through the annual operating budget, but this may involve a substantial increase to the annual budget, depending on the size of the energy retrofit project.

The decision to fund an energy retrofit by way of a special assessment or through a large increase to the annual budget is within the board's sole authority, but may be unpopular with owners and result in a backlash against the board and property manager. If pursuing this funding option, it is critical for the board to consult and communicate with unit owners beforehand.

A common, and generally accepted, way of funding all, or a portion of, large energy retrofit projects is to borrow money from a third-party lender (such as a bank or other financial institution). Money borrowed for energy retrofit projects may be used for both major replacements and improvements to the common elements.

Section 56(3) of the Condominium Act requires the board to first pass a borrowing bylaw specific to the energy retrofit financing. Then the board is required to get it approved by a majority of unit owners (50 per cent plus one) at a meeting duly called for that purpose. The new bylaw must set out all of the basic details of the proposed loan: the principal amount, interest rate and term. Most lenders require the corporation to enter into a loan agreement and a general security agreement, which set out all basic terms and conditions relating to the loan and its repayment. As well, the condo corporation must comply with section 97 of the Condominium Act, which deals with situations where the condo is considering making a “change” to the common elements or the corporation’s assets (as may be the case with an energy retrofit).

Whether newly established or existing, condominiums are consciously shifting toward going green. Developers are offering purchasers energy-efficient buildings, and condo boards of existing buildings are creating energy efficiencies to benefit unit owners. Green loans and energy retrofit financing are a practical alternative for funding energy-efficiency upgrades. 1 Lou Natale is the chair of the Condo Law Group at Fogler Rubinoff LLP, which is a full-service law firm based in Toronto. Lou and his colleagues represent hundreds of condominium corporations and provide advice to property managers, unit owners and developers throughout the Greater Toronto Area, the Golden Horseshoe and Resort Country. Lou was one of the founding members of the Huronia CCI Chapter and is a regular speaker and contributor at ACMO/CCI events, including the annual National ACMO/CCI Conference. He can be reached at 416-941-8804 or lnatale@foglers.com.

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MANAGEMENT

The ins and outs of submetering As utility costs continue to rise, more condo corporations may

BY MIHAE AHN

consider submetering. Essentially, submetering tracks perunit utility consumption so that utility costs are allocated based on use and paid directly by the unit owner or tenant rather than through maintenance fees. The results are

lower maintenance fees and, typically, when residents are responsible for the costs of their personal consumption, lower utility consumption in the overall building. Here’s what condo corporations need to know about how submetering works, why boards do it, and what installation involves.

44 CONDOBUSINESS | www.condobusiness.ca

MANAGEMENT

By making owners financially responsible for their

personal utility use, submetering incents them to reduce their in-suite consumption.

How it works A submetering company installs submeters behind (downstream from) a local utility bulk meter. The local utility continues to supply the bulk meter and send a bill to the condo corporation as it did all along. The submeters measure electricity, water, or natural gas consumption in each of the building’s suites.

Once submeters are installed, residents are billed by and make their payment to the submetering company for consumption in their suite. T he s u b m e te r i n g c o m p a n y t h e n e i t h e r directs the money it has collected to the condo corporation or pays the utility bills on behalf of the condo corporation.

In other words, this cost is no longer i n c lu d e d i n t h e m a i nte n a n c e fe e s .

Common area consumption continues to b e p a i d by t h e c o r p o r at i o n a n d remains in the condo fees.

By making owners financially responsible for their personal utility use, submetering incents them to reduce their in-suite consumption. For example, an analysis of 1,200 suites in 15 Toronto buildings showed that in-suite electricity consumption drops by up to 48 per cent when a building is submetered.

Submetering is feasible whether a building is low-rise or high-rise, old or new. For mixed-use condo buildings, submetering can

measure consumption in both residential and commercial units.

In most cases, a submetering system can be installed at no capital cost to the condo corporation. The submetering company will recover its costs through a monthly administration fee charged to each unit owner. Charges var y by project and are usually lower than the local utility’s administration charges.

Why boards do it 1. It reduces maintenance fees.

Residents in each suite are responsible to pay for their own utility use, so this cost is removed from the maintenance

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MANAGEMENT

fe e c a l c u l a t i o n , w h i c h l o w e r s t h e maintenance fee.

CONDO GROUP

2. It’s green.

Once residents become utility bill-payers, they become aware of their utility use and its cost. This encourages a culture of conservation. It also encourages residents to invest in more energy-efficient products such as energy-efficient light bulbs.

Practical Advice, Creative Solutions. condoreporter.com Aird & Berlis LLP is committed to helping our clients make informed decisions and create strategies to successfully resolve condominium issues.

We act for hundreds of condominium corporations, cooperatives and co-ownerships, as well as some of the largest condominium developers in the GTA. Our depth of experience representing both owners and developers gives us the expertise and perspective necessary to provide high-quality and cost-effective advice on issues affecting those in the condominium industry.

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3. It increases owner satisfaction.

Submetering is fair as users are only responsible for their own consumption. In a building without submeters, residents are powerless to control their utility costs: low users are forced to subsidize high users’ consumption through the maintenance fee. This can in turn decrease resident satisfaction. In mixed-use condo buildings, submetering also helps residents avoid subsidizing disproportionate energy use in commercial units.

4. It reduces financial risk to condo corporations.

Utility costs are on the rise. Electricity costs in Ontario have, on average, increased by 9.3 per cent annually over the last five years.

According to Ontario’s Long Term Energy Plan, electricity prices will continue to increase over the next 20 years. Submetering reduces the condo corporation’s exposure to volatile utility costs, allowing the corporation to focus on other priorities.

5 . I t i n c re a s e s s e l l i n g va l u e f o r owners.

Submetering lowers maintenance fees, which can be a great selling feature.

Conversely, high maintenance fees can reduce property values and be a major deterrent for some buyers.

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What installation involves Installing electrical submeters is relatively simple and causes minimal disruption.

The meters are typically installed in hallway electrical closets or electrical rooms. It takes approximately one hour per suite to install submeters. Verification requires five-minute in-suite interruption.

Once the building’s submeters are installed, the submetering company enrolls each suite’s owner or tenant in its billing service. The enrollment process varies by submetering company.

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MANAGEMENT

For some condos, it may also be feasible to submeter water use. It ROOFING SOLUTIONS YOU CAN TRUST! depends on a building’s piping. In many high-rise buildings, water submetering is impractical because each suite is Thanks for allowing 30 YEARS supplied by seven or more different feeds, STRONG requiring seven or more meters. However, to be of service to you! in complexes where there are only one Thanks for allowing Viana Roofing to be of service or two pipes supplying each suite, water to you and congratulations on your success! submetering is straightforward.

Water submeters are typically installed in the utility closet, under the kitchen sink or under the bathroom vanity. The install, which takes approximately one hour per suite, requires the shut-off of the suite’s water supply. Once the install is Viana Viana Roofing & Sheetmetal Ltd. isLtd. a progressive roofing, Roofi ng & Sheetmetal is a progressive roofiwaterproofing ng, waterproofing and restoration company successfully completed thousandsofof and restoration company whowho has has successfully completed thousands finished, the submetering company enrolls projects overpast the past 30 years.

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Then either the submetering company or the condo corporation directs this money to the utility provider. With utility costs projected to keep climbing, for many condominium buildings, electrical VianaRoofing_Condo_March_2015.indd 1 15-03-12 and water submetering is a feasible and economic way to reduce maintenance fees. It is also a way to foster a culture of c o nser vatio n, in c re ase resi d ent satisfaction, and bring owners financial and marketing benefits. 1

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9:17 AM

TECHNOLOGY

Neighbourhood watch: Look out for these five emerging trends in condo security

BY JASON FALBO

In recent years,

there has been a huge shift toward urbanization, as people move to high-rise buildings in downtown cores. By 2030, it is expected that twothirds of the world’s population will live in cities.

The high-rise condominiums many of them will call home have some unique security challenges. A limited number of public exits, centralized HVAC and water systems, and multi-storey construction dictate that these occupancies require customized security and home-monitoring solutions differentiated from those offered in single-family homes.

At the same time as urbanization is becoming more pronounced, security technologies are advancing to meet these challenges. Here are five emerging trends to lo ok out for in modern condo security solutions: 1. Biometrics Biometrics is a maturing technology that offers an increased level of home protection and peace of mind. Rather than relying on a key that can be copied or stolen, a person’s unique fingerprint or other biomarker is his or her secure 'key' to enter a premises.

With improved reliability and cost effectiveness, biometric sensors such as iris scan, facial recognition and fingerprint readers play an increasingly important role in modern security systems design. Biometric technologies have already been selectively deployed in airports, financial institutions,

and ATMs; it’s only a matter of time before they become mainstream in the home.

Consumers’ acceptance of biometric technology is accelerating quickly and this is evolving the traditional access control system.

2. Smartphone lock integration Typically, there are three things most people bring with them when they leave their home: their smartphone, wallet, and keys. Soon, two of these items will be optional. Smartphone apps are virtualizing physical items such as keys and wallets at a rapid rate. A variety of existing apps already provide the following functionalities: Home/condo owners can send, edit and delete temporary digital keys to visitors such as handymen and babysitters via their mobile phones; they can lock their door from anywhere in the world; they can access a log of lock activity or set up notifications; they can receive picture alerts when their door is unlocked (especially useful to keep track of service providers, visitors, etc.); and they can use the app to unlock their door automatically as they approach it, without taking their smart phone out of their purse or pocket.

Other benefits of these solutions include simple, do-it-yourself installation; compatibility with clip-on electronic fobs and traditional

48 CONDOBUSINESS | www.condobusiness.ca

key backups for homeowners without smartphones; and eliminating the need to lend out physical keys and worry about them being lost or copied.

Overall, consumers appreciate being able to control their locks and check their lock status, on demand, at home or on the road.

3. Remote health management Home health-monitoring and management is a natural extension of the traditional home security solution. At inception, security systems were designed to protect occupants from harmful threats at the perimeter of their home. While this is still necessary, it is also true that harm to an occupant can come from within the home, and further, from within occupants themselves.

Real-time monitoring of occupant health through the recording and analysis of “big data” collected in the home and transmitted to monitoring services is a provocative shift in home security technology. A variety of manufacturers are coming up with biosensors and smart devices that capture various health-related data points — such as heart rate, blood pressure and glucose/insulin levels — and transfer the information to cloud storage. This may lead to the sale of these monitoring services to households.

TECHNOLOGY

Combining data collection and analytics with real-time notifications and alerts to first responders, doctors, or family members allows these types of products to help the aging baby boomer demographic live independently in their homes for longer.

Children at home alone and those with disabilities can also greatly benefit from this lifeline to medical professionals.

example, a fire. Additionally, tablets d ep loye d throughout a building c an provide occup ants with audio / visual instruction, as well as direct access to support services, in the event of an emergency.

5. Integrated platforms and in-building social networks The future of condo security appears sure to 4. CCTV camera surveillance and include a platform that seamlessly integrates real-time two-way audio/video physical and logical access control, home communication automation, internal building communications, CCTV cameras have for years been available emergency alerting, and property/tenant to security officers in buildings; however, m anag ement sof t ware. C ommunit y a more recent trend provides all residents portals introduce a unified social platform access to these streams so they might for the building that enhances the occupant assist in the ‘community watch’ of a high- experience, while eliminating paperwork for rise building. This helps distribute the condo managers. responsibility of identifying potential threats Portals normally house a database of in the building beyond the single security occupant details as well as centralized guard and empowers residents to participate communit y documents, forms, FAQs in the safeguarding of their community. and bulletin boards. They equip residents Improvements in real-time two -way with a self- ser vice por tal for various audio/video communications systems requests such as trade services, lost have enabled this technology to alert keys replacement , 11:49 amenity booking, TorontoDecorating_Condo_March_2015_FINAL.pdf 1 15-03-03 AM occupants to the current status of, for parking spot reservations, and much more.

These solutions are also accessible via smartphones, tablets and PCs/laptops.

As these five emerging trends make clear, this is an exciting period of innovation for smart home and condo security solutions.

Considering the advances in technology and an increasingly sophisticated and demanding condo buyer, it’s no wonder that today’s top security solutions are customizable, social, and flexible to protect against multiple classes of personal and asset threats.

The days of simple perimeter protection and intrusion detection may be numbered.

Condo directors and managers, as well as consumers, are looking for complete and scalable solutions to address all of their peace-of-mind and security concerns. 1 Jason Falbo is VP of engineering at Mircom.

In his role, Jason is responsible for the overall management of the engineering and R&D teams, including new product development, regulatory approval, and customer support for Mircom’s portfolio of intelligent building solutions. He can be reached at 905-6604655 ext 7025, jfalbo@mircom.com or via www.smartcondo.com.

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TECHNOLOGY

Sustained occupancy

For some, the full restoration of power across the GTA following the

BY JAMES KENNEDY

devastating December 2013 ice storm took more than 10 days.

One million people were affected by the storm, which occurred during a period of extreme cold.

Residents in condominiums faced a particularly stressful holiday season, as thousands were left without light, heat and water, forcing many to temporarily vacate their homes for safety reasons.

Read more about condo technology at

The 2013 ice storm precipitated an urgent re-think for condominium managers.

Many had already recognized what the ice storm drove home: secure, long-term power is needed to address long-term power outages. A system, using proven technology in a new way, is promising to deliver just that.

The challenge The City of Toronto (and others) defines the challenge of securing long-term power as sustained occupancy — how to keep people in their buildings in the event of a lengthy outage. Jim Baxter, the city’s director of Environment & Energy Division, gave an Energy Crunch in the City presentation prior to the ice storm. In

50 CONDOBUSINESS | www.condobusiness.ca

TECHNOLOGY

it, he highlighted the potential risks posed

by Toronto’s strained and outdated electrical grid, the city’s high level of construction activity and the ever-increasing incidence of extreme weather events. Baxter emphasized the particularly challenging implications of evacuating elderly and disabled residents who live in multi-level residential communities.

Toronto Hydro’s Independent Review Panel (IRP) appears to agree. In its report entitled The Response of Toronto HydroElectric System Limited to the December 2013 Ice Storm, it concluded: “The IRP recommends that the provincial government consider a requirement for all new and existing buildings to provide a means for

back-up power for a longer period of time.

This will allow for the safe evacuation of and access to vulnerable populations that live in high-rise buildings.”

By law, emergency generators are required to supply back-up power to elevators, fire pumps and lights to enable the safe evacuation of a building in the event of fire.

This puts the focus solely on evacuation — not occupation — and means that water pumps for sanitary needs, heating systems and other life-sustaining systems are not legally required to operate during a power outage. Consequently, additional backup power is required to sustain basic living necessities during an extended outage.

Proven technology The combined heat and emergency power (CHeP) system responds to the sustained occupancy challenge. The solution features a natural gas-fed microturbine capable of delivering an unlimited supply of power in emergency situations. It runs continuously (not just in emergency situations) to provide day-to-day heat and power.

On a day-to-day basis, buildings use the heat from the microturbine’s electrical generation for space heating, domestic hot water, de-humidification and cooling. In power outages, the system is sized to keep residents in the building (as opposed to simply providing the bare minimum of services to get residents out).

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TECHNOLOGY

A microturbine is like a boiler that generates electricit y and doubles as a back- up generator. The equipment is easily installed close to mechanical systems: approximately the size of two residential refrigerators, it is compact enough to fit through doorways and into elevators, making it a highly feasible retrofit. Microturbines are vibration f r e e a n d m e e t t h e w o r l d ’s m o s t stringent clean emissions guidelines set out by the California Air Resources Board. They also run for long durations (20,000 hours over three years) without requiring maintenance.

New application CHeP providers may structure their of ferings to buildings in various different ways. One new approach is an agreement under which the CHeP provider will supply, install, own and operate the system at no upfront capital cost to condo corporations. In return, the provider gets a long-term energy

contract at the prevailing market rates — allowing the condo to ensure sustained occupancy at no capital cost while maintaining their existing utility costs.

While CHeP has been around ‎for as long as fuel- based power generation (80 - plus years), it's historically been undertaken on a much larger scale — for example, in data centres, hotels, hospitals and universities. The only difference is that these buildings tend to own the asset.

But now — due to a d van c es in technology, deregulation, higher electricity transmission costs and more extreme weather events — it’s become far more accessible and practical for multi-level residential buildings. This arrangement also removes the upfront costs, which could other wise be prohibitive and require a long payback period, and frees the condominium from monitoring and maintenance activities.

W ith its promise of sustained occupancy, this new approach to CHeP has already caught the attention of at least

one condominium corporation. What’s more, the Toronto Community Housing Corporation is looking to replace old generators with natural gas generators as a means of facilitating sustained occupancy.

As organizations strategize how to prevent disruptions of the magnitude that occurred during the 2013 ice storm, sustained occupancy will remain top of mind for many. In the context of an aging electrical grid and increasingly frequent extreme weather, the technology may well gain traction as condo managers contemplate how to address the risk of long-term power outages. 1

J ames Kennedy is a princip al of To ro nto - b a s e d M a g n o l i a G eneration, whic h s p ec i alizes in t h e m u l t i - l e v e l re s i d e n t i a l C H e P m arket. For more inform ation, visit www.magnoliagenerationinc.ca or email jkennedy@magnoliaenergy.ca.

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SMART IDEAS

New working at heights training standards for construction industry The Ontario Ministry of Labour is rolling out standards and requirements for working at heights training for workers on construction projects that will take effect on April 1, 2015.

In an online FAQ, the ministry identifies falls from heights as a leading cause of critical injuries and fatalities in the construction sector.

Under Occupational Health and Safety Awareness and Training (O. Reg. 297/13), employers will be obligated to ensure workers using specific fall protection systems on construction projects complete working at heights training.

The specified fall protection systems are the travel restraint system; fall restricting system; fall arrest system; safety net; work belt; and safety belt. The training program and provider must be Chief Prevention Officer (CPO)-approved.

Existing training requirements for workers using fall protection systems, found in the regulations for construction projects (O. Reg. 213/91), remain in place.

Workers who complete use of fall protection systems training that fulfills Section 26.2 (1) of the regulations for construction projects before April 1, 2015, will have until April 1, 2017, to comply with the new requirements as part of a two-year transition period.

Approved training providers will give workers proof of training once completed. Employers will be responsible for keeping a record of a worker’s training, including the worker’s name, approved training provider’s name, date training was completed and the name of the CPO-approved program.

Training is valid for three years, at the end of which workers will need to renew the validity of their training. Workers can meet this requirement by taking an approved refresher training program.

Source: Ontario Ministry of Labour

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