Stage 1 Findings Report
January 2013

The Phase 1 consultations and road shows had been completed and a summary had been published.

In particular, some owners were concerned about how condominium communities manage and resolve disputes. When boards, managers or other owners fail to comply with the Condominium Act, they said, there is no reliable and cost effective way to enforce the rules: the Condominium Act
lacks “teeth”.

However, others replied that most noncompliance issues, such as breaking a rule or by-law, will be more effectively managed through better information, communication, or mediation, rather than through more enforcement tools. They agreed that effective enforcement is necessary, but stressed that relying too much on this approach can erode trust and create new and even deeper tensions within the community.

(Is it possible that the managers, boards and other experts do not want enforcement ? —editor)

Seven values
Panel members proposed a list of seven basic values they felt should be supported by a revised Act:

•  Well-being
•  Fairness
•  Informed Community Members and Stakeholders
•  Responsiveness
•  Strong Communities
•  Financial Sustainability
•  Effective Communications

Governance
Condominium boards of directors, particularly first-time directors, need training and support.

Boards need to be more diligent in informing and educating their own members and the owners  about everything from community rights and responsibilities to the financial state of their condominium.

Boards also need to take steps to increase their responsiveness, transparency and accountability.

In particular, corporate and governance documents (such as by-laws or board meeting minutes) must be made more readily available and information must be accurate, accessible, up to date, and complete.

For their part, owners need to be more engaged and accept a greater degree of responsibility for the good governance and management of the community, including participating in AGMs.

Dispute resolution
Although a more effective and efficient means to enforce the rules and responsibilities set out in the Condominium Act is needed, this is only one part of a high-quality system for resolving disputes.

Participants agreed that issues could often be resolved quickly and amicably if they had better access to the right information, informed and impartial advice, and reliable, trusted mediation.

However, this raised further questions around how such a system would work and be managed. Many felt that some form of independent, authoritative agency or organization is needed to oversee the development and implementation of these tools and processes.

Financial management
Reserve funds must be adequately funded through contributions that are based on appropriate, standardized studies.

The rules around the use of operating funds need to be revisited and adjusted.

Consumer protection
Documents related to the sale of a condominium unit should be supported by plain language summaries. The full cost of purchasing and living in a condominium must be fully transparent. All costs should be included in the first year.

Manager qualifications
A higher standard of skills and training is necessary for managers and management firms. This almost certainly involves mandatory knowledge and may also require regulation of the industry by government, or some organization acting on its behalf.

Issues outside the Act
These included concerns around property taxes, condominium conversions, insurance rates, tenant rights and responsibilities, as well as industry trends and power imbalances in the condominium sector. These comments and
proposals have been duly noted and shared with officials in the appropriate ministries.

The three stages
Stage One of the review process is complete.

Stage Two will begin in March 2013 when groups of experts in condominium issues (including owners) will be convened to review the findings from this report. Based on the issues, proposals and arguments it contains, the experts will work together to develop a detailed set of options for renewal of the Condominium Act.

In Stage Three, which will begin in the fall of 2013, the options will be reviewed and validated by condominium owners and other stakeholders, after which they will be presented to the government and the condominium sector.

Conclusion
Everything is still extremely vague. There is no suggestion that condo conversions will be warrantied under Tarion. We are not yet given any idea what body will licence and discipline property managers or what kind of dispute resolution is being planned.

Information sessions
There may be more information sessions held in different Liberal ridings once the new Liberal leader has been elected and a new cabinet is selected.

Ask your MPP if there will be any information sessions in an area near you.


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