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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