CondoBusiness Summer 2023

Page 1

A NEW WORLD

The promises and risks of AI in condo operations

PART OF THE

+9TH ANNUAL WHO'S WHO

A ranking of the Canadian condo industry's major players and portfolios

PART OF THE

PM#40063056
Summer 2023 • Vol. 38 #2 Canada’s Most Widely Read Condominium Magazine

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TECHNOLOGY 24 AI As Virtual Assistant By
26 Legal Implications of AI
44 Giving Hybrid Meetings a Second Thought By Juliette Hunter GOVERNANCE 36 Risky Business By Rebecca Melnyk SPECIAL FEATURE 34 The 9th Annual Who’s Who A round-up of the major players and portfolios in Canada’s condo industry Contents LEGAL 12 Falling Victim to Mortgage Fraud By
16 Enforcing the Governing Documents: What the CAT Expects By
MANAGEMENT 40 A Road Less Traveled By Sarah
ENERGY MANAGEMENT 6 Deadline Extended For Energy/Water Data 8 Ontario Offers Bonus Incentives for Retrofits RISK MANAGEMENT 42 Warding Off Property Crime By Drew Fenton IN EVERY ISSUE 4 Editor’s Note 46 New & Notable 16 36
By Laura Gurr
Ellad Gersh
Sonja Hodis
Farr

A game-changer

Artificial intelligence is a field bursting with

innovation and risk. As it finds its way into a range of industries, including condo management, there are ideas brewing on how AI can augment managers’ work, especially with the lack of licensees available to effectively oversee operations and day-to-day tasks for the thousands of condos in Ontario.

In this issue, with a focus on technology, we present articles on the opportunities, but also legal implications that come with using AI.

On the legal and governance front, a condo lawyer outlines various new cases, which reflect the nuances of the Condominium Authority Tribunal’s response when it comes to enforcing a condo’s governing documents.

Also in this issue, we look at the financial risks of condos as they age and deteriorate, as well as how to deal with property crime, which occurs across all types of neighbourhoods.

Turning to management again, another piece explores what led some women to become successful condo managers. Fun fact: according to recent findings, more than half of Registered Condominium Managers in Ontario are women.

Finally, check out our 9th annual Who’s Who, which offers a run down of the top players and portfolios in condo management. See page 34 for more.

Happy summer!

Make

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Editor Rebecca Melnyk

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Annette Carlucci

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Ines Louis

Contributing Writers

Douglas Baker, Sarah Farr, Drew Fenton, Ellad Gersh, Laura Gurr, Sonja Hodis, Juliette Hunter.

Digital Media Director Steven Chester

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DEADLINE EXTENDED FOR ENERGY/WATER DATA

The deadline to submit consumption data to Ontario’s energy and water reporting and benchmarking program has been extended to October 31 to help accommodate a large new cohort of participants in 2023. This year sees the final phase of designated reporters — owners/managers of commercial and multifamily buildings in the range of 50,000 to 99,999 square feet — join the exercise that was first launched in 2018.

The extension provides an extra four months to submit 2022 energy and water consumption data. Ontario’s Ministry of Energy announced the adjustment in a June 28 memo, but noted that building owners/managers were still encouraged to “take all reasonable steps” to comply with the conventional July 1 deadline.

“The Ministry will accept the 2022 reporting year data until October 31, 2023, to allow new reporters more time to gather data and to increase their comfort with the reporting process,” the memo states.

Under the original stipulations of the provincial regulation, owners/managers of buildings in the range of 50,000 to

99,999 square feet were slated to begin participating in 2020 — just one year after owners/managers of buildings ranging from 100,000 to 249,999 square feet began submitting information. However, that requirement was amended in early 2020 to grant three more years of reprieve. 1

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ONTARIO OFFERS BONUS INCENTIVES FOR RETROFITS

New conservation programs and time-limited specials unveiled for Q2 and Q3

Bonus incentives for energy efficiency upgrades will be available to select commercial and multifamily landlords and condominium corporations in Ontario during the second and third quarters of 2023. Project proponents in Niagara Region, Kingston, Pembroke, Kenora and some mostly rural areas of Huron and Perth counties can qualify for double the usual incentive dollars for non-lighting prescriptive measures if they submit applications to Ontario’s Save on Energy program by October 3.

8 CONDOBUSINESS | Part of the REMI Network

Meanwhile,the looming reintroduction of the custom track retrofit program will come with a province-wide boost to the funding ceiling since it was last offered in 2020. The payout has been set at $1,200 per kilowatt (kW) or $0.13 per kilowatt-hour (kWh) of achieved savings for both non-lighting and lighting projects. However, the latter is scheduled to be short-lived, lasting only until a planned shift to point-of-purchase subsidies occurs later this fall.

“Take advantage of these incentives for lighting now because we’re expecting to introduce the midstream lighting program in Q4 this year,” Rob Edwards, private sector business manager with Ontario’s Independent Electricity System Operator (IESO), urged during a webinar sponsored by the Building Owners and Managers Association (BOMA) of Greater Toronto. “What that means is lighting will no longer be part of either the prescriptive or custom retrofit program.”

That’s part of a slate of adjustments set for the final half of the 2021-24 conservation and

demand management (CDM) framework, many of which are related to an additional $342 million in program spending that the Ontario government pledged last September. The time-limited bonus incentives for the five specified areas where the electricity transmission network is deemed to be “constrained” were announced in early April, while the custom retrofit program was formally relaunched on May 17.

“We are looking at increasing savings, both in megawatts (demand) and in energy by the end of the framework,” Edwards reiterated.

Customized retrofit options and building commissioning program coming soon The scope of retrofit program was narrowed solely to prescriptive measures with incentives tied to a specified list of energy-

www.REMInetwork.com | Summer 2023 9
ENERGY MANAGEMENT

efficient products and equipment beginning in 2021, in an effort to simplify and speed up approval of applications. The IESO’s midterm review of the 2021-24 CDM framework, released last December, credits that move for cutting the program’s administrative costs by “nearly 50 per cent on a per-kWh basis” but also cites “customer dissatisfaction” with the disappearance of the customized retrofit option among its key findings.

In announcing the pending relaunch of the program, the IESO states: “This will enable the program to incent more energyefficiency measures in non-standard projects that are more reflective of actual operating conditions, and to capture more savings.” Along with a more lucrative incentive rate, the new version will no longer impose a $1 million maximum per project, provided the incentive covers no more than 50 per cent of project costs. As well, project proponents will not be required to submit a measurement and verification (M&V) plan unless they receive at least $80,000, providing more room to maneuver than the previous $40,000 threshold.

In an associated change, which came into effect May 17, the incentive structure for networked lighting controls switched from $0.15 per square foot to $0.35 per kWh. Incentives to promote commissioning/retro-commissioning of existing buildings — initially intended to be rolled out in 2022 — are also now available.

The IESO has a program administrator in place and is currently recruiting qualified delivery agents to guide enrollees through the three components of the commissioning program. Participating owners/managers can receive: an investigative incentive of up to $50,000 for the commissioning agent’s review and recommendations; an incentive of up to $50,000 based on a formula of $0.03 per kWh of confirmed energy savings for implementing the recommended energysaving measures; and a further incentive of $0.03 per kWh to a maximum of $50,000 for maintaining those savings for a full year.

“In order to participate in the program, you must go through an approved commissioning partner,” Edwards advised.

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“We’re looking at getting 20 to 50 commissioning agents on board.”

Regional adders, targeted local initiatives and recruitment for capacity building

Time-limited bonus incentives — which the IESO has dubbed “regional adders” — could be extended to more areas of the province as the year progresses. For now, commercial electricity customers (including multifamily landlords and condominium corporations) in 35 specified postal code districts are eligible. The 20 within Niagara region encompass several cities and towns, including Niagara Falls, St. Catharines, Thorold, Welland, Fort Erie, Port Colborne, Grimsby, Dunnville and Beamsville. Elsewhere, bonus incentives are on offer in St. Marys, Kingston, Amherstview, Gananoque, Pembroke, Petawawa, Kenora and Keewatin.

The regional adders are separate from other targeted local programs, which have either recently been launched or are expected to be deployed in the coming months. They are meant to respond to concerns about electricity system stability in four areas of the province: the Richview community in the west end of Toronto; York Region; Ottawa; and the Belle River area of Windsor-Essex, and will be a collaborative effort of the IESO and the pertinent local distribution company.

Edwards also made a pitch for the recently launched strategic energy management program, suggesting that there is still plenty of time for companies and their designated staff representatives to join the envisioned capacity-building exercise. Ultimately, IESO administrators foresee as many as 10 groups, each geared to a particular type of facility such as office, multifamily, grocery-anchored retail, etc.. Participants will be eligible for incentives of $0.02 per kWh of energy savings implemented and up to $5,000 to invest in energy management tools.

“We no longer provide incentives for an organization to hire an energy manager, but this is the next best thing,” Edwards asserted. “The basis of it is: education; training; best practices; and tools. We want these practitioners to hang out together and share best practices. There’s going to be a ton of training available and we’re really excited to see this.”

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FALLING VICTIM TO MORTGAGE FRAUD

part of

outlined two types of real estate fraud on the rise and seven practical tips for condo owners to protect themselves from mortgage schemes. What if you do become a victim? This second part focuses on legal remedies and next steps when reclaiming the interest in your home.

on mortgage

Picture a scenario in which you receive a Notice of Sale from an apparent mortgagee of your condominium. The Notice of Sale states that your mortgage (which you know nothing about) is in default, and the mortgagee will sell your condo to recover the mortgage debt if payment of the full amount of the mortgage, including accrued interest, penalties and other exorbitant fees

are not paid within 35 days. You have never even heard of or met the mortgagee and you thought your mortgage was in good standing.

This is the stuff of nightmares for many firsttime homeowners who may have used their life savings to purchase their first condominium. If you do find yourself in this nightmare scenario, here is what you can do next to try and reclaim this interest in your home.

Consult with a commercial litigation lawyer immediately, preferably a lawyer with real estate dispute and mortgage fraud experience. The lawyer will search the Property Identification Number (PIN) confirming whether the subject mortgage has, in fact, been registered on title to the property and will also identify precisely what other mortgages are registered on title to the

12 CONDOBUSINESS | Part of the REMI Network
The first
this two-article series
fraud
Legal remedies and reclaiming the interest in your home

property to see if there are any that you do not recognize.

Your lawyer can also get a copy of the mortgage document which will identify the face value of the mortgage, the identity of the mortgagee, and the law firm that was responsible for registering the mortgage on title to the property.

From there, your lawyer can contact that law firm and request the mortgage file, including the copies of the mortgage documents that were used to register the mortgage. This will help your lawyer assess your case and determine whether the mortgage documents were forged,

stuff of nightmares

falsified or registered in other fraudulent circumstances. Depending on the evidence, your lawyer should now be able to determine how best to proceed in the short-term to preserve your rights.

If you need to go to court, time is not on your side. These initial steps should be taken as soon as possible. Hopefully by the time you receive the Notice of Sale, you still have the benefit of the full 35-day statutory notice period under the Mortgages Act that the mortgagee is required to provide before exercising any enforcement methods, including proceeding by way of power of sale and potentially selling the

property from under you or prejudicing your rights to redeem the mortgage.

Depending on the circumstances of the fraud, your lawyer may seek an injunction in court seeking to restrain the mortgagee from selling the property under power of sale, if advisable, or take other such steps as are necessary under the Land Titles Act to preserve your rights and the status quo, pending determination as to the validity of the mortgage.

If a review of the file indicates that the mortgage documents were forged, you may have recourse outside of court by seeking a hearing before the director of titles to discharge the fraudulent

www.REMInetwork.com | Summer 2023 13
LEGAL
18 50 20 C M Y CM MY CY CMY K DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 2:44 PM
“This is the
for many first-time homeowners who may have used their life savings to purchase their first condominium.”

mortgage, pursuant to the Land Titles Act. Under this scenario, the director of titles may freeze the PIN pending the hearing, precluding any dealings with the property until the hearing.

If the mortgage fraud did not involve forgery and you may have been duped into signing mortgage documents unwittingly, you may still have recourse in court to seek a discharge of the mortgage or modification of its terms.

If you succeed with your court case, you will ask the court for an Order removing the mortgage from title which you can then file with the Land Registry Office. This will effectively remove the encumbrance from title to your property.

If you are the victim of mortgage fraud involving a mortgage lender and a third- party fraudster, chasing after the fraudster should be secondary to taking immediate steps to try and preserve your rights and prevent your condo from being sold. Ultimately you may succeed in obtaining a civil judgment against the fraudster, but this will take time and cost money. Typically, fraudsters do not keep money in the jurisdiction, and your money as

well as their assets likely will be long gone by the time you obtain judgment against them.

So, you may end up with what is known in the litigation business as a “hollow judgment,” in other words, judgement in your favour with no money or assets available to recover.

Therefore, as a practical matter, a civil judgment against the third-party fraudster may not be all that useful unless you have evidence that the mortgagee was also involved or complicit in the fraud.

If you purchased title insurance when you purchased or re-financed your condo, you or your lawyer should file a title insurance application as soon as possible to preserve possible coverage. Title insurers may cover losses sustained by homeowners who are victims of fraud when there is evidence of forgery or falsification of documents.

Lastly, you can report the mortgage fraud to the police as well as the Canadian AntiFraud Centre.

Unfortunately, this is mostly a matter of public record and recognition. Unless the fraud is widespread (affecting hundreds

of homeowners), the police may not investigate. They have limited resources and may view any isolated incident as a civil matter that does not warrant their involvement.

Even if the police do investigate the fraud and charge or convict the fraudster, this may not assist you in retrieving your money or discharging the mortgage unless the fraudster is willing to make restitution for your damages to be factored into sentencing.

If you have fallen victim to a mortgage fraud, you should consult with an experienced commercial litigator immediately to help you navigate through the very difficult process of trying to discharge the mortgage and regain the equity in your home. 1

Ellad Gersh is a partner at Robins Appleby LLP, with an emphasis on litigating real property disputes, including construction litigation, mortgage fraud, and condominium disputes.

The first part of this article series can be found in CondoBusiness' spring issue or on the REMI Network website.

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ENFORCING THE GOVERNING DOCUMENTS: WHAT THE CAT EXPECTS

One of the many duties the board of directors of a condominium corporation has is to enforce the condominium’s rules, declaration and bylaws as well as the Condominium Act. Directors are often criticized for either not taking enough action or taking an overly aggressive approach. Sometimes this criticism is directed at the property manager who usually implements enforcement steps in order to carry out the board’s directions.

How can a property manager or board member understand what steps to take when enforcing the governing documents? The starting point is always section 17 of the Condominium Act, which instructs the board (and by default the property manager) to take reasonable steps.

Unfortunately, the Act does not provide any further direction on what is reasonable. Given that most of the enforcement-type issues condominiums are going to deal with will now be dealt with at the CAT if voluntary compliance is not achieved, a review of recent CAT cases provides some insight into what the

CAT expects of condominium corporations and property managers when they enforce the rules.

A duty to enforce

In Manna v. York Condominium Corporation No. 62, the CAT made it very clear that the condo corporation has a

16 CONDOBUSINESS | Part of the REMI Network

duty to enforce. Period. As the CAT pointed out, the duty to enforce exists even if the owner is not on good terms with the board. It does not matter if the owner has a bad history with the board or if they may be raising issues appropriately.

As stated by the CAT, the board’s duties under the Act are not erased just because you are dealing with a difficult owner. As such, it is important for boards to separate the request for enforcement from any other issue they may have with an owner. Even a difficult owner has a right under the Act to expect that the board will fulfill their duties to enforce the rules.

The Manna case also provides a good discussion on the difference between situations where the board has some discretion as to whether they enforce a rule or not and cases where there is no discretion.

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The CAT reminded us that if the board is going to exercise their discretion to not enforce, they must be able to provide a valid purpose for not doing so. On the other hand, when the rules are clear and mandatory (such as you cannot park in a parking space unless the vehicle is licensed), there is no discretion for the board to exercise. A failure to enforce a clear and mandatory rule would be considered an arbitrary exercise of discretion and a finding that the board has not fulfilled their duty to enforce.

The lesson to be learned is that you need to carefully review your rules (and perhaps amend them) to determine whether or not there is any discretion built into them. In addition, if you are going to exercise discretion, be sure to document the reasons why in case the exercise of discretion is challenged.

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A step too far

On the other end of the spectrum, in Hum v. Waterloo Standard Condominium Corporation No. 670, the CAT criticized the condominium for going too far when exercising their discretion regarding enforcement options. This case involved the ticketing and towing of a vehicle for failing to display a parking pass. The owner commenced a CAT application against the condominium, seeking damages equal to the cost of the ticket and towing fees incurred.

The CAT awarded the owner the towing costs and Tribunal fees on the basis that the condominium corporation was acting unreasonably when they exercised their discretion to have the vehicle towed. In this case, the owner had just moved in one week before his car was ticketed and towed, and as such this was clearly not a case of chronic infractions.

The CAT held that the rule in question indicated that ticketing was mandatory, but there was discretion with towing as it indicated that towing was a possibility.

The CAT held that a ticket would have been a sufficient warning to this new owner, and the condominium corporation failed to provide an explanation as to why the extreme remedy of towing was necessary, given that this was not a chronic problem.

When deciding what enforcement step you are going to take, it is always a good idea to ask yourself whether the step is necessary in the circumstances to obtain compliance or would another step, that would result in lesser consequences, be sufficient.

When employing a consequence that will have a significantly higher cost or inconvenience to the owner or occupant, can you justify the decision to go with

18 CONDOBUSINESS | Part of the REMI Network
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“When a complaint is received, especially a nuisance type complaint. . . the condo corporation must undertake an independent investigation..”

the harsher route? If not, you should likely consider taking a different step first.

The concept of progressive discipline, often found in the employment context, can be incorporated into the condominium setting. Starting off with a lesser consequence for first-time offenders and progressively increasing the consequences should be something that boards and property managers consider when deciding what steps to take in terms of enforcement. Starting off with a letter from property management or the board reminding owners of the rules and asking them to comply is always a good first step.

As we know, many people who move into condominiums are unfamiliar with all the rules and sometimes just need a friendly educational reminder about what is required of them. The goal in condominiums should always be to obtain voluntary compliance. This can be achieved when people are first made aware that a rule has been breached and are asked nicely to comply.

Investigating for evidence

Another important lesson from the CAT about enforcement is that condominiums must undertake proper investigations as part of their enforcement procedures. The CAT in Ottawa Carleton Standard Condominium Corporation No. 656 v. Denize reinforced this obligation. In this case, the condominium corporation alleged that Denize violated the nuisance rules with respect to smoking.

Denize conceded that smoking occurred on one occasion shortly after he moved in but stopped after he was notified of the rules. Denize consistently denied that smoking continued in his unit after that one incident. He invited the board to inspect his unit and he agreed to participate in any investigations.

Unfortunately, the board made a big mistake by not taking Denize up on his offer. The CAT found that the board was unreasonable in persisting in their accusations against Denize without first conducting an independent investigation in the face of his repeated denials. The CAT dismissed the condominium’s case against Denize and ordered that the condominium pay him $4,000 in legal costs.

This case is an important reminder to those who are enforcing the condomini

um’s governing documents to make sure that they do not just rely on the evidence of the individuals making the complaints.

When a complaint is received, especially a nuisance type complaint such as smoking and noise, the condo corporation must undertake an independent investigation.

It would also be wise for the condominium to secure independent thirdparty evidence as well as photographic or video evidence of the offences being

alleged before formal enforcement steps are taken.

Costs and chargebacks

Finally, you cannot discuss enforcement in condominiums without dealing with the issue of costs and chargebacks. It has long been a principle recognized by the courts that the “innocent owners” should not be saddled with the costs of enforcement as a result of one owner/occupant breaching the rules.

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Historically, the courts have been more generous in awarding condominiums a fairly good percentage, if not all, of their costs in compliance type cases. The Act is also clear that when a condominium was successful in obtaining a compliance order and even some but not all costs, the remainder of the costs (provided they were reasonable) could be charged back to the unit regardless of the actual costs awarded by the court.

The transfer of most compliance type cases usually heard by the court to CAT has now occurred. Very few, if any cases, will be heard in the courts going

forward. Unfortunately, the transfer of how costs are handled has not followed suit. The cases decided by the CAT have demonstrated that its adjudicators are inconsistent in how they approach the issue of reimbursement of costs through damages and costs awards. In cases where costs are awarded, the percentage of costs recovered versus costs incurred is nowhere near what the courts were awarding in pre-CAT days.

The approach by the CAT, to date, has created a great deal of uncertainty for all parties involved, and the ability to obtain a fair reimbursement for costs incurred is

highly dependent on the adjudicator you are assigned. However, recently, we have a glimmer of hope in Toronto Standard Condominium Corporation No. 2804 v. Micoli that the pre-CAT days and the courts approach to costs will resurface.

In this case, the condominium corporation was able to recover approximately 65 per cent of costs of the pre-Stage 3 costs incurred jointly from both the owner and the tenant and approximately 50 per cent of the costs incurred during Stage 3.

These percentages are more in line with the partial indemnity cost recovery scales

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“The cases decided by the CAT have demonstrated that its adjudicators are inconsistent in how they approach the issue of reimbursement of costs through damages and costs awards.”

awarded by the courts to a successful party. It is refreshing to see not only a recognition of, but also the actual application of, the “innocent owner” principle the courts historically employed in a CAT decision.

We can only hope that this case is a signal that other adjudicators at the CAT will be moving in the same direction, and we will begin to see a more consistent approach to the reimbursement of actual costs incurred by a condominium with the award of a mixture of damages and costs that are in line with what the courts had historically established.

This would be a welcome change for the innocent condo owners who have been saddled with the vast majority of costs of compliance, thus making any victory at the CAT a hollow victory.

Achieving compliance in a condominium setting should not be considered a “cost of business” for the condo. Condominiums are not businesses. They do not operate to make a profit. They are communities and their costs are borne by

In communities, one should expect that individuals who have voluntarily decided to join the community by virtue of purchasing or renting a unit therein will comply with the rules of the community they are choosing to be a part of.

When an owner/tenant decides not to follow the rules they have agreed to live by, the consequences of forcing the community to fulfill the duty to enforce the rules should be reimbursement to the community of the costs incurred to obtain compliance. This approach will avoid burdening innocent owners with the costs of enforcement, especially since the CAT has indicated that a condominium does not have a choice when it comes to enforcement, but rather a duty.

On the other hand, the act of noncompliance with a community’s rules is a choice, which should have consequences. The governing documents, which have been accepted by the community, recognize that distinction and implements (in most cases) full indemnification provisions for breaches of the rules. Now

recognize and respect that contractual term when they award damages and costs in cases where compliance orders have been obtained. 1

Sonja Hodis is a litigation lawyer based in Barrie who practices condominium law in Ontario. She advises condominium boards and owners on their rights and responsibilities under the Condominium Act, 1998 and other legislation that affects condominiums. She represents her clients at all levels of court, various Tribunals and in mediation/arbitration proceedings. She also acts as mediator or arbitrator in condo disputes. Sonja can be reached at (705) 737-4403, sonja@hodislaw.com or via her website at www.hodislaw.com.

This article is provided as an information service and is not intended to be a legal opinion. Readers are cautioned not to act on the information provided without seeking legal advice with respect to their specific unique circumstances. Sonja

www.REMInetwork.com | Summer 2023 21
LEGAL

Superstar Superintendents

WHITEROSE JANITORIAL PROVIDE A FIRST-CLASS SUPPORT TEAM

Property managers with someone trustworthy on-site, who answers their phone or responds in a reasonable time frame, have an advantage. A building’s sta are the manager’s boots on the ground—trusted people who react quickly and help work through urgent maintenance situations.

Finding the right people is crucial. With thirty-seven years of experience under their belt, WhiteRose Janitorial Services Ltd. has cultivated a proficient interviewing process to account for the changing needs in modern buildings, particularly high-rises, and of the management companies who support them. Recognizing the key role Superintendents play in assisting building facilities, prospective WhiteRose employees are required to know the basics of building maintenance systems—enough that they can provide support and often be the first point of contact for maintenance.

As part of the interview process with WhiteRose, employees tour a building and are required to complete a checklist of tasks, such as identifying components of the mechanical system and conducting routine maintenance processes. When consulting with clients, Albert Crimi, Founder and Chairman of the company, says he often finds managers juggling the cleaner’s schedules and duties themselves. “We see managers

taking a big role in running the dayto-day of the cleaning sta , and they shouldn’t be. When managers try to take on the role without having specific experience in cleaning duties, they often lose sight of what is going on at the site.”

GEOFENCING TECHNOLOGIES

Crimi notes that buildings making use of in-house cleaners—residents who have taken over cleaning duties—as being particularly troublesome. When taking over duties for one building, he describes a situation which had got out of hand.

“The in-house model doesn’t work. People were hiding in closets on recliners!” he says. “We don’t depend on the manager or security for backup. We have a lot of support behind the scenes, and we di erentiate ourselves from our competitors because we are always professional.”

As part if its evolution, WhiteRose has invested in the future with the hiring of new President, Joe Gallo. Joe’s experience in leading customercentric businesses that utilize

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technology in the right areas has already paid dividends at WhiteRose. “We are very excited to have Joe on board. With Joe’s knowledge, we have been successful in automating a number of back-end processes so we can spend more time and focus on delivering the highest quality services to our clients,” notes Crimi.

WhiteRose has implemented a system that geofences their team’s arrival at the building and automatically sends a notification to the o ce and the team’s area supervisor. “It red flags anything out of sequence,” he explains.

When consulting with a new building, the team considers the current sta ng model in comparison to the building’s size, and how detailed a cleaning it is getting.

“A lot of people don’t realize how much there is to cleaning,” says Crimi, who established the business in 1986 with his wife, Sandra. “We have a lot of checks and balances in place and our system is fully automated.”

Cleaners are provided with a detailed schedule for each day of the week, which establishes a time frame for the day’s activities.

“We do that to properly evaluate the cleaner—you can’t evaluate them if you don’t have the means to measure them. We make everyone accountable, and by doing that, it also allows us to properly praise them,” he says.

ANNUAL SCHOLARSHIPS

When hiring, WhiteRose will look for cleaning sta who show competency and punctuality, and they pay special attention to retaining those already on the payroll.

“We implemented a health spending account for all cleaners which escalates the longer they have been with our company. We were one of the first cleaning companies to o er superintendent services along with cleaning services, and to o er our superintendents benefits,” Crimi says proudly.

Now in its third year, an exciting recent initiative of WhiteRose is an annual scholarship program for employees’ children. “We try to give back,” he says. “We implemented a scholarship program through a third party, and we o er thirty scholarships for our sta and their families every year.”

Employee satisfaction is beamingly evident in the positive Google reviews left by current and former sta , and countless clients are also leaving messages of appreciation. “We have a lot of superstars,” he says.

WhiteRose Janitorial takes pride in providing an elevated level of professionalism to the buildings they serve, and extensive detail when it comes to cleaning. To the average person, Crimi says, most buildings will look clean. When he tours buildings with prospective clients, they are often surprised by what is uncovered.

He was meeting with a property manager of a new condominium who, despite noting that ‘everything was great’ with the current janitorial company, was looking for competitive quotes. After touring the building, Crimi was thanked for alerting the manager to the many cleaning deficiencies he identified and was told that the meeting had been informative. “Many times, I’ve seen property managers doing the cleaning inspections themselves,” he says, noting that it takes a trained eye to see the full cleaning needs of a building. “It was a new building, so you’re not going to see these deficiencies unless time goes by. A regular person will see a clean building.”

The Superintendent role is especially important, he says, and WhiteRose takes the time to review the needs of the building to ensure the right fit. “We take our Superintendent positions very seriously. When a manager asks me if I am going to give them an experienced super, I’m ba ed. Of course!”

“Throughout the 37 years we have been in business, I have seen many competitors quickly rise without giving thought to the level of support and quality of service they o er. The WhiteRose reputation is important, and we won’t ever compromise it.”

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Albert Crimi is the Founder and Chairman of WhiteRose Janitorial Services Ltd. WhiteRose is a full-service janitorial company servicing the Condominium, Retail, Commercial and Industrial sectors across the GTA. Connect at www.whiterosejanitorial.com

THE AI REVOLUTION

Artificial Intelligence is gaining popularity in the condo industry, partly because it promises to revolutionize how buildings are managed, as Douglas Baker writes on page 26. Cutting-edge tools, like ChatGPT, may come with benefits, but also challenges. Laura Gurr outlines some important legal considerations on page 29.

FEATURE
FEATURE

AI AS VIRTUAL ASSISTANT

Artificial Intelligence (AI) is rapidly transforming various industries. Condominium management should be no exception. As the multi-residential condo market continues to grow at a breakneck pace, boards face an increasing demand for efficient management of their properties. This can be highlighted by a shortage of management professionals in the sector compared to an unmanageable volume of work.

Condo management companies can turn to AI to streamline their operations and improve overall performance. Here are just a few of the ways AI can be used to improve management processes, acting as a virtual assistant to condo managers and administrators.

Predictive maintenance

One of the main benefits of AI in condominium management is predictive maintenance. AI algorithms can detect patterns in data, allowing condominium managers to predict when equipment will need maintenance. For instance, AI can detect when an HVAC system needs servicing or when a roof is about to fail.

Predictive maintenance helps condominium managers avoid costly repairs and unexpected breakdowns, which can improve resident satisfaction and reduce maintenance costs. Condominium managers can use AI-powered maintenance management software to schedule repairs, track maintenance requests, and monitor vendor performance. AI can

26 CONDOBUSINESS | Part of the REMI Network
FEATURE

also provide condominium managers with data on maintenance costs and vendor efficiency, allowing them to optimize their maintenance processes and reduce costs.

Smart security

AI-powered security systems are gaining popularity in condominium management. Smart security cameras can detect unusual activities and alert condominium managers in real-time. AI-powered security systems can also identify potential safety hazards and alert condominium managers before any accidents occur. These systems also provide data that condominium managers can use to optimize their security processes and reduce the risk of security breaches.

Intelligent energy management

AI algorithms can analyze energy usage patterns and provide insights that can help

condominium managers reduce their energy consumption. AI can monitor heating, cooling, and lighting systems and suggest energy-efficient settings. This can help condominium managers reduce energy costs and improve their environmental footprint.

Streamlined communications

Condominium management involves a lot of communication among tenants, managers, and maintenance staff. AI can streamline communication processes by automating routine tasks and providing personalized responses to tenants' inquiries. Chatbots powered by AI can handle tenant inquiries 24/7, freeing up time to focus on other tasks.

Common element fee collection

AI-powered fee collection software can automate the common element fee collection process and reduce the risk of late payments. Condominium managers can set up automated maintenance fee reminders, send out invoices, and track payments using AI-powered software. This can save time and improve cash flow for their properties.

The challenges

Management companies must collect and manage large amounts of data from various sources, such as tenants, maintenance staff, and vendors. Ensuring the accuracy and security of this data is crucial to the success of AI-powered condominium management solutions.

Another challenge is the cost of implementing AI technology. Condominium management companies must invest in hardware, software, and personnel to implement AI solutions.

Benefits outweigh the costs

AI-powered condo management can improve

efficiency by transforming processes, providing managers with new tools to streamline their operations, and improve their performance.

As well, AI-powered software provides managers with real-time data on their properties, including maintenance requests and security alerts. It can also provide predictive maintenance, smart security, intelligent energy management, streamlined communications, predictive analytics, maintenance management, fee collection, and even remote condominium management solutions.

These solutions can help reduce costs and improve board and owner/resident satisfaction. As this technology advances, condo management companies can expect even more benefits. For example, AI algorithms can learn from past data to improve their predictions and optimize their performance. AI can also integrate with other smart home technologies, such as Internet of Things (IoT) devices, to create even more efficient condo management solutions.

AI can be a revolutionizing force. While there are challenges associated with implementing the technology, the benefits often outweigh the costs. 1

Douglas Baker is an Ontario Licensed Condominium Manager with seven years experience in the industry and is currently working remotely from Thailand. He has an educational background in technology and worked as a Programmer/Analyst in Toronto’s financial sector.

Note: This article was written in less than 60 seconds by ChatGPT 4 and edited by Douglas Baker, OLCM with a total completion time coming in under 10 minutes.

www.REMInetwork.com | Summer 2023 27
FEATURE

LEGAL IMPLICATIONS OF AI

The use of Artificial Intelligence (AI) tools, like ChatGPT, is becoming more commonplace, and likely to continue to evolve and embed itself in business practices.

28 CONDOBUSINESS | Part of the REMI Network

In condominium management, AI can have several legal implications, depending on how it's implemented and used. Here are some important considerations.

Privacy and data protection

Managers and management companies have an obligation to ensure that appropriate measures are in place to safeguard the privacy and security of personal data. This includes ensuring protection is in place when using AI technology tools. For example, ChatGPT’s terms of service permit it to share and store the information and data input into the platform. In so doing, the manager may be breaching contractual obligations, internal policies and procedures, and/or privacy legislation.

When using ChatGPT for business purposes, managers should not input any confidential or personal information as this could constitute breach of data protected by law (personal information or information that is privileged in other ways under specific laws, such as personal medical or banking information).

Contractual agreements

If you plan to integrate AI tool into your condominium management services, it is essential to review and update your

contractual agreements with corporations, owners, residents, and other stakeholders. You should clearly define the scope and purpose of the use of AI technology, data handling practices, and any implications on individual rights and obligations.

Privacy policies should also be updated and managers should clearly communicate to owners, residents, and stakeholders that they are interacting with an AI system and how the information will be collected, used, and stored. Provide transparency about the capabilities and limitations of AI systems to manage expectations and avoid any potential confusion or misrepresentation.

Liability and accuracy

AI tools can provide automated responses based on training data and algorithms. While it can be helpful, it may not always provide accurate or reliable information. Property management companies should be cautious about relying solely on AI for important decisions or legal advice.

It is crucial to ensure the accuracy and suitability of information provided by tools like ChatGPT and, if necessary, involve human oversight or verification.

For example, a manager may want to use ChatGPT to draft a letter to a unit owner to

respond to a question or concern that the owner has raised. The manager can use a prompt such as:

“draft a brief e-mail to [condominium unit owner] responding to complaint about noise from neighbouring unit from a party at 3 a.m. on a long weekend” or

“draft an empathetic letter to [condominium unit owner] responding to request for human rights accommodation for an accessible parking space and request further medical information”

While tools like ChatGPT can assist with drafting language for a letter, the AI tool is of limited value and the manager must ensure the accuracy and suitability of information provided. Condominium managers in Ontario must be licensed and comply with the CMRAO’s Code of Ethics; this professional responsibility cannot be outsourced to AI tools. Additionally, AI tools like ChatGPT should never be used to provide legal advice, as legal issues are highly nuanced and fact specific.

Discrimination and algorithmic bias

Condominium managers must be aware of human rights laws and regulations that prohibit discrimination. Unfortunately, training data and algorithms used by AI tools can inadvertently perpetuate discriminatory practices or bias due to various factors.

www.REMInetwork.com | Summer 2023 29 FEATURE

First, if the training data used to train an AI system like ChatGPT is not diverse and representative, it may reflect existing societal biases or disparities. If the data predominantly includes certain demographic groups or contains inherent biases, the system may learn and replicate those biases in its responses. Second, biases can emerge if the training data reflects historical or systemic discrimination, leading the AI system to inadvertently perpetuate discriminatory patterns.

Additionally, algorithmic bias can arise if the training process or algorithms inadvertently amplify certain patterns or make erroneous associations between protected characteristics and certain behaviours. These biases can manifest in the system's responses and decisionmaking processes, potentially resulting in unfair treatment or discrimination.

It is crucial for the companies designing AI tools to carefully design the tools to recognize and mitigate these risks and to curate training data. Ultimately, if managers are going to leverage these AI tools, it is important for users to acknowledge this systemic bias and employ bias mitigation techniques and conduct regular monitoring and testing to mitigate and rectify any biases that may arise from the algorithms.

Bottom Line: tools can be useful for condo managers, but there are important legal considerations that need to be addressed to protect managers, condo corporations, and owners.

If you have further questions, it is important to consult with legal professionals who specialize in privacy, data protection, and condominium law to assess and address the specific legal implications of using AI tools in condominium property management 1

Laura is a managing partner with Cohen Highley LLP and is part of the multiresidential housing group. Her practice focuses on condominium law, acting for condominium corporations, property managers, and developers in a broad range of litigation, operational and governance matters. Laura is actively involved in the condominium and multi-residential housing industry. She regularly writes and speaks about legal issues affecting the industry. Since 2014, Laura has been a board member of the Canadian Condominium Institute (London Chapter) and on the board of directors for Homes Unlimited (London) Inc.

30 CONDOBUSINESS | Part of the REMI Network
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SUMMER LANDSCAPING ESSENTIALS

Salivan Landscape shares insights into the hot season

With a hundred years of experience under its belt, it’s safe to say Salivan Landscape knows a thing or two about preparing its multi-residential clients for each Canadian season. Now, after sharing its insights into getting properties ready for spring in the last issue of Condo Business Magazine, the GTA-based crew is back to do the same for summer.

Ask anyone on the Salivan Landscape team what’s on the top of their radar heading into the hot months and the answer is unanimous.

“Summer annuals are the number one thing on everyone’s mind,” says John Bontje, Manager of Landscape Maintenance and Snow Removal with Salivan. “For every condo manager and every condo resident, it’s all about annuals.”

No doubt, says Mike Walker, Assistant Manager of Landscape Maintenance and Snow Removal with Salivan, one of the main priorities from early May to mid-July is ensuring summer plantings

are given the best odds of blooming: “That’s when we’re going around with our water truck and fertilizer to all of the sites where we’ve planted and making sure they’re being well taken care of.”

Warmer weather also means more landscaping maintenance. For the Salivan team, that means busy days of weeding, cultivating, and performing a number of actions to keep flowers looking their best.

HEDGING FOR THE SEASON

Hedges are also on the top of Salivan’s to-do list during summer. This means constant pruning and looking for anything that may jeopardize their growth.

“Part of the job with hedges is to monitor them closely to catch any diseases or issues early,” says Bontje. “Most of the time, when we catch something early, we can remedy the issue ourselves or call in a specialist to solve that problem before it gets bigger.”

It helps to be something of a hedge expert, Bontje adds: “Sometimes, you might see a little bit of a shaggy hedge but that’s only because it’s in the process of flowering. That’s why our foreman need to know what type of hedge will bloom on every property so they know not to cut off their blooms before they flower.”

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“That applies to all planting,” adds Walker. “Some flowers grow differently from another, so we’re also keeping that in mind and letting our clients know what to expect for their plantings and when they’re ready for maintenance.”

GOING WITH THE FLOW (AND KEEPING PESTS AT BAY)

Over the decades, Salivan has come to expect a lot of questions about their clients’ irrigation systems.

“A lot of our condos ask us to keep a very close eye on their irrigation systems because there might be a break that’s leaving an area really dry or there can be sites that are soaking wet and need the system toned down,” explains Walker. “Either way, once the flowers are in, we need to monitor those sites regularly to verify they’re getting hit with the right amount of irrigation. Otherwise, a beautiful garden can go bad very quickly.”

Keeping unwanted pests from chewing up a condo’s greenspace is another summer task. The fact insects operate on different cycles makes it important to have seasoned professionals who know when and where to check for infestations.

“We know when certain insects are active. For example, it’s important to tell clients that they will have these pest-related problems on their evergreens or deciduous trees in June or July and to watch out for them,” says Bontje.

OPPORTUNITIES FOR IMPROVEMENT

Summer is an ideal season for fresh looks. To that end, Salivan’s crew has a knack for spotting landscaping enhancement opportunities.

“Summer is also a good time of the year to do some upgrades to your garden,” says Walker. “You might have some plants that died back or some bare areas that haven’t been replanted or

reused. If we see that, we’ll work with the client to figure out the best ways of filling those areas.”

A TEAM APPROACH

One benefit of being in the landscaping business for a century is that you get to know the players. And over the years, Salivan Landscape has developed a network of landscaping partners it can trust to handle more specialized work.

“For the most part, we take care of everything else in-house, but when dealing with large trees we can’t reach, specialized spray programmes, or irrigation work, we work with companies that we know will do the job well,” says Bontje.

It should come as no surprise that summer keeps landscapers on their feet. And a er a century of tending properties throughout the GTA, laying a fresh and healthy foundation comes naturally for the Salivan team.

Since 1923, Salivan Landscape has been a go-to landscaping partner for residential, commercial, and public property owners. Learn more about the company’s services and history at salivanlandscape.com or call 416-321-2100

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IN THE CONDO BUSINESS INDUSTRY

MANAGEMENT 34 CONDOBUSINESS | Part of the REMI Network FirstService Residential Management Canada 1,130 Wilson Blanchard Management Inc. 675 Pacific Quorum Properties Inc. 632 Tribe Management Inc. 394 Crossbridge Condominium Services Ltd. 390 Rancho Management Services 335 Del Property Management Inc. 294 KDM Management Inc. 243 ICC Property Management Ltd. 240 AWM-Alliance Real Estate Group Ltd. 223 FirstService Residential Management Canada 142,500 Crossbridge Condominium Services Ltd. 93,279 Del Property Management Inc. 84,000 Rancho Management Services 50,605 Wilson Blanchard Management Inc. 48,382 Pacific Quorum Properties Inc. 36,272 ICC Property Management Ltd. 30,349 Icon Property Management 30,000 AWM-Alliance Real Estate Group Ltd. 29,750 Tribe Management Inc. 29,608 CONDO BUILDINGS TOTAL CONDO UNITS TOTAL
411 4,549 68 Th e n um ber of licensed condominium p rovider com pa nies in O nta rio. H ow ma ny licensed condo ma nagers in O nta rio a s of March 30, 2023 , according to th e Condominium M a nag em ent Reg ulator y Authorit y of O nta rio Th ey includ e G e ne ral Lice nse es ( 2,528 ),Tra nsitional G e ne ral License es (9 ), a nd Limited Licensees ( 1,601 ) . Th e average n um ber of n ew Limited Licence a p plic ations per month in th e fi rst eig ht months of th e 2020 -2021 licensing yea r. CONDOBUSINESS WHO’ S WHO 2021 R A N K U N I T S B U I LD I N G S R A N K U N I T S B U I LD I NG S 1 First Ser vice Residential Management C anada 115,315 1 , 214 2 Crossbridge Condominium Ser vices Ltd 89, 577 476 3 Del Property Management Inc 75 ,00 0 270 4 Rancho Management Ser vices 46 , 28 6 0 5 Wilson Blanchard Management Inc 4 4,14 8 628 6 Pacific Q uorum Proper ties Inc 39, 552 6 87 7 ICC Proper t y Management Ltd 28 , 2 35 2 30 8 Icon Proper t y Management 28 ,00 0 110 9 AWM-Alliance Real E state Group 26 , 553 2 51 10 Gateway Proper t y Management Corporation 17,999 246 11 Percel Inc 16 ,101 1 82 12 KDM Management Inc 16 ,03 1 209 13 Apollo Proper t y Management Ltd 15 ,4 80 128 14 SolutionCondo/Rentalys Solution 14,9 62 1 8 4 15 GPM Proper t y Management Inc 14, 20 0 72 16 Goldview Proper t y Management Ltd 12,00 0 8 8 17 Nadlan-Harris Proper t y Management Inc 12,00 0 78 1 8 Comfor t Proper t y Management Inc 8 ,00 0 80 19 A.A Proper t y Management 7,00 0 45 20 MF Proper t y Management 6 , 855 103 21 Bayshore Proper t y Management 6 ,19 6 10 8 2 2 Equium Group 5 , 28 6 60 2 3 Meritus Group Management Inc 4,70 8 53 24 Shelter C anadian Proper ties Limited 4,412 30 2 5 C anlight Management Inc 4,00 0 50 FirstSe r vice Resid e ntial M a n ag e m e nt C a n a da 1 , 2 14 Pa cifi c Q u orum Prop e r ties In c 6 87 Wilson B la n ch a rd M a n ag eme nt I n c 62 8 C rossb ridg e C ond ominium Se r vices Ltd 476 D e l Prop e r t y M a n ag eme nt In c 270 AW M -Allia n ce Re al E state G ro up 2 5 1 Gateway Property Management Corporation 24 6 I CC Prop e r t y M a n ag e m e nt Ltd 2 3 0 K D M M a n ag eme nt In c 20 9 S olution C on d o/Re ntalys S olution 1 8 4 FirstSe r vice Resid e ntial M a n ag e m e nt C a n a da 1 1 5 , 3 1 5 C rossb ridg e C ond o minium Se r vices Ltd 8 9, 57 7 D e l Prop e r t y M a n ag eme nt I n c 75 ,0 0 0 Ra n ch o M a n ag e m e nt Se r vices 4 6 , 28 6 Wilson B la n ch a rd M a n ag eme nt In c 4 4 ,14 8 Pa cifi c Q u orum Prop e r ties In c . 39, 5 52 I CC Prop e r t y M a n ag e m e nt Ltd 28 , 2 3 5 I con Prop e r t y M a n ag e m e nt 2 8 ,0 0 0 AW M -Allia n ce Re al E state G ro up 26 , 5 5 3 G ateway Pro p e r t y M a n ag eme nt Co rp o ration 17, 99 9 CON DO BU ILDINGS TOTAL CON DO U N ITS TOTAL
CONDOBUSINESS WHO’S WHO 2023 RANK UNITS BUILDINGS RANK UNITS BUILDINGS 1 FirstService Residential Management Canada 142,500 1,130 2 Crossbridge Condominium Services Ltd. 93,279 390 3 Del Property Management Inc. 84,000 294 4 Rancho Management Services 50,605 335 5 Wilson Blanchard Management Inc. 48,382 675 6 Pacific Quorum Properties Inc. 36,272 632 7 ICC Property Management Ltd. 30,349 240 8 Icon Property Management 30,000 140 9 AWM-Alliance Real Estate Group Ltd. 29,750 223 10 Tribe Management Inc. 29,608 394 11 KDM Management Inc. 18,258 243 12 Goldview Property Management Ltd. 17,900 104 13 GPM Property Management Inc. 17,200 130 14 SolutionCondo/Rentalys Solution 16,070 187 15 Percel Inc. 15,200 187 16 Nadlan-Harris Property Management Inc. 14,000 100 17 Apollo Property Management Ltd 13,598 122 18 Equium Group 10,800 114 19 Comfort Property Management Inc. 8,000 80 20 AA Property Management 7,000 45 21 MF Property Management 6,805 105 22 Lionheart Property Management Inc. 6,310 162 23 Meritus Group Management Inc. 5,594 60 24 Bayshore Property Management 5,206 76 25 Whitehill Residential 4,390 38 26 Berkley Property Management Inc. 4,000 44
TEN TOP
IN THE CONDO BUSINESS INDUSTRY TEN TOP
TECHNOLOGY www.REMInetwork.com | Summer 2023 35 CONDOBUSINESS WHO’S WHO 2023 RANK UNITS BUILDINGS RANK UNITS BUILDINGS 27 HighPoint Property Management 3,966 60 28 Shelter Canadian Properties Limited 3,783 24 29 Royal/Kente Property Management 3,500 80 30 Colliers 3,306 60 31 Dove Square Property Management Inc. 3,098 42 32 SmartCentres REIT 2,767 5 33 Real Estate 360 Property Advisory 2,753 41 34 Canlight Management Inc 2,589 41 35 Brilliant Property Management 2,306 20 36 Guardian Property Management Services Ltd. 2,200 41 37 The Enfield Group Inc. 2,200 50 38 Skywater Property Management 2,000 38 39 Taft Management Inc. 1,847 20 40 Downing Street Property Management Inc. 1,033 8 41 Huntington Properties Ltd. 465 13 42 Summa Property Management 314 15 43 Southwest Properties Ltd. 200 2 44 Glenview Management Limited 163 1 45 Sterling Karamar Property Management 88 1 46 Armadale Property Management Inc. 84 10 47 Mainstreet Equity Corp. 69 48 Melchior Management 777 Corporation 62 3 49 The Regency Group 54 50 McCor Management (MB) Inc. 42 1 51 Sabjoy Inc. 1 0 At Construction Talent Services, our sole purpose is to recruit high-performing career professionals for our clients. Our focus is on attracting top talent across North America, and we provide support to companies and their teams in their hiring efforts. Contact Mich Ward at: linkedin.com/in/mich-ward-46245410b (647) 981-7461 mich@constructiontalent.ca Construction Talent Services the following industries: Construction, Architecture, Real Estate, Property Management and Engineering

RISKY BUSINESS

Canada’s aging condos demand financial acumen and far-sighted attention

TheCanadian Institute of Actuaries’ latest insight statement on the longevity of condo infrastructure explores several emerging risks. “These condos will likely experience very similar issues concurrently since they were built at roughly the same time,” the report states. “If they all experience unexpected issues in parallel, the cost of maintenance will rise across the industry, potentially causing a rift in the condo market.” The demand for labour will likely soar as well.

Henry Chio, FCIA and co-author, who penned the paper alongside Jean-Sébastien Côté and John Nguyen, is calling for more awareness around proper planning. “Condo

buildings are complex and a huge asset to manage, and the owners are expected to have that expertise,” he says. “Sometimes that may not be the case, so it’s important to use experts to ensure there is a good understanding of condo operations.”

This newest statement builds off a 2022 research paper on the risks associated with setting and maintaining adequate condo reserve funds, written by Côté and engineer Jon Juffs.

Boards are encouraged to gather advice from various corners of the industry, including qualified professionals who oversee reserve fund studies, governance experts to train boards and financial

specialists, including actuaries, who can help estimate future costs. Preventative maintenance is also key for curbing unexpected and reactive maintenance costs.

As well, new legislation is recommended, such as a mandatory board education course that teaches emerging risks. “My personal wish is to have some element to prevent conflict of interest and look at it as a continuing education concept, as well, with a yearly update,” Chio suggests. “Also consider an annual attestation, making sure directors are acting with good conscience.”

While legislation varies from province to province, requirements around reserve fund studies are crucial for strengthening

There are currently more than 12,000 condo corporations and more than 900,000 condo units owned by residents or investors in Ontario, according to the Condominium Management Regulatory Authority of Ontario. Those numbers don’t even account for all the units currently in the pipeline. When it comes to overseeing the maintenance and repair of existing assets, it’s up to condo boards to find the right approach, especially as condos age and their infrastructure deteriorates.

condo infrastructure for the years ahead. Unexpected high inflation can also threaten to boost condo fees.

“We should introduce some stress testing for reserve fund studies,” urges Chio. In the insurance industry, insurance studies are based on large volumes of data to quantify the risk associated with insurance operations. Some of this concept can be borrowed so condo boards see the impact of how much more contribution would be required if inflation were 1 per cent higher for example.

“No matter which method you choose to estimate the expected failure and how much

it will cost with the particular element of failure, there is going to be a variance around the point estimate,” he says. “It is important to stress those assumptions and see those parameters shift by a few notches. The reserve fund study is still able to make that result acceptable and that will give a lot more confidence in terms of the level of the fund that the corporation is targeting.”

When studying contribution funds, a longterm, risk-based view is advised, rather than evaluating short-sighted savings that condo owners may see.

QUELLING FINANCIAL MISUNDERSTANDING

What to expect from a director sitting on a board?

1. A director should know enough about accounting that they can understand the financial statement produced each year for the condo corporation and how the budget is managed.

2. A director must avoid conflicts of interest and the appearance of such conflicts.

3. A director should act prudently and use experts in appropriately maintaining the condo property.

4. A director should not prioritize their own interests but rather make decisions that will benefit the largest number of condo owners possible.

Condo owners must:

“Some condo owners may think they’ll be keeping the condo for a few years without any intention of holding it for a long period of time,” says Chio. “That kind of creates an incentive for them to advocate for lower condo fees in the short term. However, in recent years, the general market economy shows it can take a turn very quickly, resulting in the unexpected use of money.”

Alternatively, when long-term owners are ready to sell, they may be doing so in a softer market. “The adequacy of the reserve fund would play a role in determining the value of the condo,” says Chio. “It’s in

1. Think critically about what makes a director efficient and competent at their job.

2. Think about what increases the value of a condo property and what can destroy value.

3. Assess how all condo owners’ interests can be appropriately represented by the board.

The tips listed above are extracted from the CIA Insight Statement: Longevity of Condo Infrastructure.

GOVERNANCE

CON D O L A W . T O

everyone’s interest to increase the value of the assets they hold.”

As well, prior to purchasing their units, buyers might not consider how poor management of the condo’s reserve funds can negatively affect insurance availability and the cost of the premium the corporation is required to pay when it comes to unforeseen events, some of which have led to special assessments for owners.

“That’s coming from inadequate knowledge of what insurance contract is in place for that condo,” says Chio. “I think the boards have the responsibility to make sure the insurance contracts they have are adequate and within the appetite of what they want to maintain with the building and also owners.

“One is the overall coverage they want to include in the contract and the other is the deductible. These are things not everyone talks about, but impact condo owners when an insured event happens. By having this conversation, owners will be better equipped to understand what is coming down the pipeline in terms of the expected costs they would need to pay in an event.”

Climate change is another emerging risk. If maintenance budgets are determined by the current climate, with no “margin for adverse deviation,” a property could face higher costs if the common elements degrade faster than expected due to weather-related events like floods and rising temperatures.

“This will probably result first in special assessments and then in higher condo fees to compensate for any underfunding patterns based on inaccurate projections of climate-based deterioration,” the report warns.

Extreme conditions can speed the aging of infrastructure. To better determine the future costs that come with maintaining their condos, Chio encourages boards and owners to examine the components of their reserve fund studies and conduct some form of assessment— looking at the expected repairs and maintenance versus the actuals they performed.

“Do some comparison in the last one or two years because we’ve seen some drastic inflation in the interest rate environment,” he suggests. “That will give you a sense of how well the reserve fund study was carried out in the past. If there are any areas that need to be strengthened, then get a second option on those figures; that’s always good to do earlier than later.” 1

The full CIA Insight Statement on the Longevity of Condo Infrastructure can be accessed at: https://www.cia-ica.ca/publications/publicationdetails/223073

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Smetanin also noted the lack of attractive alternatives available to baby boomers who might otherwise downsize from detached homes. What’s conspicuously absent on the market is what has come to be known as the ‘missing middle.’

“One part of the community is rat, pack and stack, and the other part of the community is very flat,” he said.

The CANCEA report cites zoning as a contributing factor, with vast swaths of

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Gentle-density options, somewhere between single-family home and skyscraping condo, would give households an opportunity to ‘right-size’ their home based on their needs, he explained. As it stands, a similar scenario is playing out in communities across the GTHA, where empty nesters tend to be sitting on extra bedrooms while households of five or more tend to be short on bedrooms.

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This finding was eye-opening for city councillor Ana Bailao, who chairs Toronto’s affordable housing committee and represents Ward 18 Davenport. It suggested that a provincially and federally supported city program designed to help seniors age in place might be less than constructive with respect to housing affordability.

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“We’re actually incentivizing people to stay longer in their homes, paying for renovations and so on,” said Bailao, speaking on a panel following the release of CANCEA’s report. “So now we have all this data in front of us that should

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ON A ROAD LESS TRAVELED

Being a condo manager wasn’t the expected career path for Michelle Joy, who received her RCM designation in 2017 and is now an executive director of property management for Wilson Blanchard Management.

Looking back, the 34-year-old is surprised where life has taken her. She joined the accounting team at Wilson Blanchard in 2014 and quickly took up the ACMO courses offered in-house to become licensed. Having already earned a degree in political science and

an accounting diploma, studying was nothing new to her.

Her accounting skills helped navigate the financial planning and budgeting aspects of the corporations she managed. In fact, it was through work with an auditor that she gained her first insight into the industry. “We were at the office (at WB) in our little backroom for four or five days straight,” she says. “I thought it looked like a fun place to work.”

Five years after achieving her license, she was invited to be a guest speaker

and moderator on panels, sitting next to the lawyers who inspired her as a junior manager.

“One of the first public speaking events I did was with Patricia Elia (of Elia Associates) when the new Act came out,” Joy says. “I had the worst case of imposter syndrome. It took me a while to build confidence for public speaking. Now, I love it.”

When asked how she’s been so successful, she says it’s important for new managers not to put too much pressure on themselves. “Property managers are

40 CONDOBUSINESS | Part of the REMI Network
Traditionally, building management has been seen as a male-dominated industry; yet in a recent email correspondence, the Association of Condominium Managers of Ontario (ACMO) confirmed that, according to a 2020 survey of members, over 55 per cent of their Registered Condominium Managers (RCMs) are female. Here, a few women executives explore their journey into condo leadership.
MANAGEMENT
The underrepresentation of women is a prevailing narrative across the building sector, but the world of condo management tells another story. A spotlight on women leaders. Angel-Marie Renier Elaina Kutz Michelle Joy

expected to be so well-rounded in such a diverse number of topics. There's no way you can know it all.”

Her career now involves teaching with the Condominium Management Regulatory Authority of Ontario (CMRAO)—something that she enjoys immensely—and she’s seeing a lot of female enrolment. “There are so many more women in the industry and I think that's fantastic.”

Angel-Marie Reiner is the owner, co-founder, and president of the Onyx Group of Companies, which she operates with her husband, Eric. In 2018, the Onyx Group managed a portfolio of commercial and residential properties but also developed their own low and mid-rise apartment buildings.

“We tried to find managers and found it difficult to find somebody who cared about our tenants and the aesthetic of our property and investment,” Reiner says. Frustrated, she took over the management side of the operation. “I woke up one day and I was a property manager.”

In 2019, Onyx started getting requests to manage condominiums. After working through the licensing requirements, Onyx opened their own condo management division, which Reiner now owns and leads—headed up by a primarily female team.

Bringing strong and supportive women together paid off for her that same year when a sub-metering division of the Onyx Group received a $100,000 federal government grant through the Women Entrepreneurship Fund. “I felt particularly proud because that space (sub-metering) is very male-dominated.”

She’s seeing more women rising up in leadership roles, but has noticed hesitation from some of the trades.

“A lot of people don’t know that as part of my early career, I sold construction materials. We had to do a roof inspection on an industrial roof and, I won’t name the company, but he suggested I didn’t need to come up to look.”

Many female managers begin as administrators and work their way up. “We share the path our staff have taken and what it could look like for them. Females within the industry are supporting each other in a wonderful way. I don’t think the career is for the faint at heart, but it’s very rewarding.”

Elaina Kutz is co-founder of Three By Three Inc, a boutique condominium management company in Calgary, Alberta. By the time the 39-year-old entrepreneur bought a unit in a self-managed condo, she already owned several revenue properties. She volunteered for the board and quickly discovered the amount of work involved in self-managing.

“We were all getting burnt out,” she says. When they started to look into condo management firms to take over, costs were “crazy expensive” and she was told the 16-unit condo didn’t translate to enough profit.

Every now and then she’d joke with another woman board member about starting a condo management company. Initially, the two hadn’t got along, but after a board meeting one evening, Kutz convinced her to go for drinks.

Both agreed that “someone needed to look after the little guys,” so the conversation around managing condos returned and Three By Three was formed. The name is based on three women using three very different methodologies. Employees work remotely and maximize the use of Google Suite.

She asserts that to make a difference in this industry, it’s not whether you’re male or female, but how you handle tricky situations. “The way that some individuals speak to me versus how they would speak to a male is very different,” she says.

Discussing organization, all three women say they strategize their days using calendars, and keeping on top of their emails is paramount.

“My inbox is organized,” explains Joy. “I have a bajillion folders— probably more folders than anyone needs.”

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”?

Kutz also agrees that inbox organization is an important tool. “Being at a zero inbox is a massive takeaway that I would recommend anybody do,” she says. “I live and die by my calendar. Anytime anybody wants anything, it goes in my calendar.”

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.

in this profession. Managers communities and residents, exciting topics, which make for working life, and become corporations they service, in the the communities where they live. Crisis management will be your skills will be your sword and shield. and ability to adapt will be your power.

Duty to Serve

Reiner says that keeping connected to her team has been an important structuring tool. “We have team meetings and talk about what’s getting us stuck. When I get to the office each day, I get my ideas into a OneNote and decide how I’m going to tackle the day.”

For anyone considering a career switch into condominium management, Kutz recommends researching how the company operates. “The work-from-home option for someone new to the industry is phenomenal. Being male or female is irrelevant; you still end up with chaos on your plate.” 1

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

Sarah Farr is a writer, researcher and condo geek. In her spare time, she writes about historical true crime from her hometown of Hamilton, Ontario.

The rush from successfully problem-solving an issue is intriguing, with prolonging the lifespan through proper maintenance to manufacturers’ recommendations best industry practices. Managers are involved in components of the building’s assets the best interests of the corporation, and maintaining an annual plan wheels of the corporation turning, residents administratively.

www.REMInetwork.com | Summer 2023 41 MANAGEMENT
■ ■ ■ ■ ■ ■ ■ ■ 588 P PRACTICAL Building Management Done Right Rental, Condominium and Commercial Property Management Berkley provides comprehensive management services to properties throughout the GTA and Southern Ontario. Trusted by residents and home owners for over 30 years. 905-763-8203 www.berkleypm.ca Paul Chisholm, MBA CPA CA Pchisholm@berkleypm.ca Berkley_GTA_November_2016.indd 1 2016-11-11 10:34 AM

WARDING OFF PROPERTY CRIME

Ontario are growing busier again. Yet as people leave their homes to return to work and regular activity, the criminals have also returned. And while 2020 boasted the lowest property crime rate in more than 50 years, crime rates have not continued to sink since then.

For real estate owners and operators –especially those who manage high-rise condos in the city centres – the property crime rate is the one to watch. Although non-violent crime is down slightly across the province, the rate isn’t down enough to alleviate all concern.

Experts agree that organized crime is rising across Canada, and no one is even

certain how many groups exist. Law enforcement struggles to prevent and prosecute those crimes, but property owners and operators are left to foot the bill – an expensive proposition in today’s uncertain economy.

As a result, building security is growing in importance. For example, common areas in condo towers house a variety

of important spaces, including vehicle parking, storage lockers and bicycles, all under one roof. Offering the right security to protect these belongings – as well as their owners – goes a long way toward protecting your building overall.

Yet insurance coverage is no longer the simple proposition it once was. Underwriters are nervous about which

42 CONDOBUSINESS | Part of the REMI Network
With the fear of a global pandemic receding, city centres across
Protecting investment and minimizing loss

buildings should be able to secure coverage. Property owners can’t assume their buildings will be safe just because the neighbourhood is safe. They will need to take other steps to protect themselves and their buildings.

Today, property owners must face real estate crime head on by taking active steps to protect their investment and minimize their losses. These tactics work together as a single system, introducing risk mitigation practices and securing appropriate insurance coverage to protect you from the worst.

Here are five tips for increasing safety and security at your high-rise property:

Assess your property

Begin at the beginning; a thorough risk assessment will reveal any weak links and problematic issues, from great to small. Remember, even buildings in terrific neighbourhoods can be the focus of criminals. The risk assessment identifies improvements that building owners and operators can take to reduce the threat

of crime, especially when it comes to increasing security.

Train employees

The most important component of building security is employee and resident safety. While staff members don’t need to also provide building security, they should be trained to ensure safety in case of a crime on the premises. If possible, hire extra security services to reduce crime, particularly if your building is in an area where law enforcement cannot respond quickly.

Bulk up

A building that creates the illusion of a bigger footprint can deter criminals as well. Add high-intensity LED lights in public areas and be sure you have sufficient outside lighting. Expand building security systems to include cameras in all public areas. Finally, perform regular maintenance on all security measures already in place, including locks, alarms, generators and backup systems.

LOW-COST FLOOD INSURANCE PROGRAM IN THE WORKS

Take advantage of technology

High-tech solutions can support building safety in a variety of ways. High-rise buildings benefit from electronic key cards and other barriers to entry. Visible security cameras and alarms discourage criminals, while silent alarms protectbuilding staff. Finally, video surveillance and analytics software will help to provide a record that can be used to support a claim after the fact.

Secure real estate crime insurance

Many property owners rely on their general liability (GL) insurance to cover them in the event of a crime, but there are limits to what GL can cover. In fact, it only covers third-party bodily injury and property damage. Anything related to a crime must be covered by real estate crime insurance (CI). Property owners should determine a maximum allowable crime loss and ensure their CI coverage is commensurate with that amount.

All of these tactics, taken together, tell a risk story to the underwriters. By increasing safety and security, you demonstrate that your property is a “good” risk, securing appropriate insurance coverage in the process. Consult with your broker to see what your building needs to support a stronger risk story and secure appropriate coverage. 1

Drew Fenton is the Ontario Real Estate Practice Leader for global Top 5 insurance brokerage Hub International

The Canadian government is sponsoring the development of a low-cost flood insurance program to cover current gaps in coverage. The newly released 2023-24 federal budget allocates $32 million over three years to lay the groundwork.

“This would include offering reinsurance through a federal Crown corporation and a separate insurance subsidy program,” the budget document states. “The government will engage provinces and territories on the development and implementation of the program, as well as the requirements for its long-term fiscal sustainability, including cost-sharing and risk mitigation.”

The budget also pledges $15 million over three years to underwrite a new online portal that will give users easy access to information about their exposure to flood risk. As well, the government announces its intentions to revise the framework for disaster financial assistance, which has seen it pay out more than $5 billion in aid during the past 10 years.

“As climate change makes natural disasters more frequent, the program must be modernized to increase its focus on prevention and resilience,” the budget document advises. “Budget 2023 proposes to provide $48.1 million over five years, starting in 2023-24, and $3.1 million ongoing to Public Safety Canada to identify high-risk flood areas and implement a modernized Disaster Financial Assistance Arrangements program, which would incentivize mitigation efforts.”

www.REMInetwork.com | Summer 2023 43
RISK MANAGEMENT
“Property owners can’t assume their buildings are safe just because the neighbourhood is safe.”

GIVING HYBRID MEETINGS A SECOND THOUGHT

care

Most corporations have struggled to reach quorum at some point in time, especially when things are going well. Owners don’t have issues to bring up, so they simply don’t come.

Voter apathy is a costly problem for condominium corporations

Condo managers know that voter apathy is more than a minor complication for corporations. It’s a costly challenge that directly impacts the efficiency of operations.

Without enough votes, important condo business gets delayed. Corporations also need to use more resources and money to reschedule the AGM or member meeting,

and there’s no guarantee that quorum will be reached on the second try.

Costs also add up when meetings have to be rescheduled. Generally speaking, a building of 100 units spends anywhere from $600 to $1,000 for one in-person meeting, and another $600 to $1,000 each time it needs to be reorganized. And considering how thin 2023 budgets have been spread, this is not a great time to incur avoidable expenses.

Virtual meetings advanced new possibilities when traditional meetings were not an option

When the 2020 pandemic hit, Ontario

condo corporations were granted permission by the provincial government to hold meetings virtually, as applicable, notwithstanding certain restrictions or requirements, even if their bylaws did not explicitly allow them.

AGMs would not have to be cancelled after all, but managers who had never hosted a virtual meeting before may have wished that they were.

Fortunately, companies that build software for condominiums were able to connect managers and their corporations to very simple, user-friendly virtual meeting solutions. People who had never attended an owner meeting before were suddenly

44 CONDOBUSINESS | Part of the REMI Network
If you
for a condo corporation that consistently shows up when it’s time to vote, consider yourself lucky.

showing up because they could participate from the comfort of their suites.

Legislation was previously revised to give corporations the option to host meetings electronically until September 30, 2023. Bill 91, the Less Red Tape, Stronger Economy Act, 2023, received royal assent in June and becomes law on October 1, 2023, allowing condo corporations to hold virtual meetings and permit e-voting without a by-law.

Hybrid meetings: The best of both worlds

Not everyone loves virtual meetings. There are managers, boards and owners who prefer to keep things the same because, for the most part, they worked. There’s no need to acquire audio and visual hardware or remind someone they are on mute.

The majority of corporations do seem to prefer the virtual option. So why not seize the opportunity to make everyone happy? It doesn’t happen often, but hybrid meetings can do exactly that.

While it sounds like twice the work, the reality is that once a hybrid meeting system is up and running, it will save a lot of time and maybe money, too. You won’t need to reserve such a large meeting space, or you can have it in your corporation’s party room if you have one. You won’t have to print out so many AGM packages, and you may reach quorum before the meeting begins since owners can submit votes ahead of time.

If one primary meeting objective is to get enough votes without excluding owners who prefer in-person meetings, then hybrid is the way to go. Just make sure there is a quality internet connection before this process begins. Bad internet will ruin a hybrid meeting.

The process might be a little bit different for every corporation, but here’s an idea of what some managers have experienced when they launched their first hybrid meeting:

Choose your meeting date

You’ll need to select a date, which virtual meeting package you’d like to have, and sign a contract detailing the terms and conditions. Meetings can be hosted in the evenings, but a morning or afternoon spot is encouraged if that suits your owners better.

Hybrid meeting orientation email

Once the contract is completed, you will get an introductory email that contains important information about deadlines for preliminary notices, notice of meeting, and practice session availability. These deadlines are important to ensure there is enough time to set up for the big day.

Prepare preliminary notice

Send over your preliminary notice to review. Once you’re happy with it, the notice is distributed to owners. If you have a digital communications system, the notice can be shared through this avenue as well as mailed out to owners who prefer to receive hard copies of documents.

Prepare notice of meeting

Send over your notice of meeting before the e-voting module can be set up. The notice of meeting documents can

be reviewed before they are finalized and sent to owners.

See how automation increases participation

Once setup is complete, owners will get an introductory email, as well as reminders (up to 10) if they do not send an RSVP or cast votes by certain dates. Each email will contain a link that is unique to every owner (this is done to prevent voter fraud). The link will take them to a secure e-voting portal. From here, owners can read the cover letter for the AGM, download attachments, see meeting details for both in-person and virtual attendance, and RSVP or cast a vote.

Monitor votes

Managers have access to the e-voting dashboard before the meeting takes place. The dashboard lets them see how many votes have come in, and how close they are to reaching quorum.

The meeting

Getting a moderator for your meeting is strongly recommended. If you do, it will be one of the least stressful AGMs you’ve ever attended. All you will need to worry about is the setup for the in-person portion of the meeting. Everything on the virtual side will be handled by the moderator. They will do things like let the chairperson know if any virtual hands are raised, and unmute participants when it is their turn to talk.

Hybrid meetings give owners more ways to participate in condo business and provide managers with more control over the entire process. There are so many benefits to this model. 1

Juliette Hunter is a customer success manager at Condo Control who currently holds her General License with the Condominium Authority of Ontario. She previously worked as a commercial and condominium manager, and then held head office roles at multiple condominium management companies. She has a keen understanding of the condo management industry and what types of solutions managers need in order to excel in their roles.

www.REMInetwork.com | Summer 2023 45
TECHNOLOGY 1
5 6 7
2 3 4

EYE TO THE SKY

BDP Quadrangle’s design of 307 Lake Shore Boulevard East in Quayside was presented with the Future Project Award by the Council on Tall Buildings and Urban Habitat (CTBUH).

Plans for the 49-storey Toronto Waterfront condo entail meeting Passive House and Zero Carbon standards and setting new sustainability benchmarks through airtight enclosures, highperformance windows, and efficient mechanical systems.

Renderings showcase a lattice of offset triangular balconies spread across a flatiron shape. As the surrounding area develops, the shape and open-air feel of the balconies are designed to reduce building congestion and protect sky views and access to sunlight. The balconies feature solar screening to lower the building’s heat gain and reduce energy loads.

Plaza Partners is also focusing on affordable housing options and cultural and community spaces. Construction is set to begin in 2026, with plans for 430 units.

NEW HOME, SWEET HOME

Energy efficiency is a key consideration for 96 per cent of Ontarians who plan to shop for a pre-construction or newly built home. This feature was ranked as being nearly equally important as cost and size, according to the 2023 Tarion New Home Buyers Report.

The online survey was conducted by Environics Research Group in late 2022 and included responses from 526 Ontario residents between the ages of 25 and 75 who plan on buying a new home in the next 12 months.

“With many Ontarians working from home in an environment of high inflation and energy costs, both environmental and economic factors play into their decision calculus,” said David MacDonald, Group VP, Financial Services at Environics Research Group who led the survey work. “New homes are associated with the latest building codes, better quality, and fewer problems.”

Who is buying new? More than one-third were born outside of Canada, but have been established here for 17 years. The survey found 35 per cent are first-time buyers and 65 per cent are repeat purchasers who tend to be baby boomers or Gen Xers. Millennials are more likely to consider pre-construction and homes located in urban areas.

46 CONDOBUSINESS | Part of the REMI Network NEW AND NOTABLE
Fully detached homes were the most attractive property type for 66 per cent of new home buyers, followed by semi-detached and townhomes, both at 38 per cent, while 32 per cent of respondents preferred condos.

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