Last week the Standing Committee on Finance and Economic Affairs listened to presentations from various condominium industry stakeholders providing feedback on Bill 106. The first presentation of the day was made by representatives of the Association of Condominium Managers of Ontario (“ACMO”).
In addition to this oral presentation, ACMO, together with the Toronto and Area Chapter of the Canadian Condominium Institute, submitted a Legislative Brief containing comments and recommendations on 28 issues. The purpose of these recommendations was to prevent unintended consequences that could arise if Bill 106 is passed in its present form. Below is a summary of some of those recommendations:
- Make declarants responsible for three times the amount of any first-year budget deficit.
- Require declarants to post a bond or letter of credit that the condo corporation can draw on to collect the budget deficit payment.
- Continue to allow condo corporations to enter into a unit or exclusive use common elements in the event of an emergency without notice and without any authorization contained in the corporation’s by-laws or declaration.
- Define the time frame within which the condo manager must transfer documents and records upon termination of a management services contract (rather than require an immediate transfer of such documents and records) to enable managers to prepare financial statements for the final month of their contract.
- Allow condo managers to retain copies of documents after termination of the management services contract.
- Include an indemnification provision in the legislation so that unit owners will be responsible for their own misdeeds or negligence or alternatively, have a standard indemnification provision deemed to be included in every declaration.
- Continue the use of a by-law to extend the circumstances under which a condo corporation can charge back the deductible to individual unit owners, rather than requiring that this be included in the declaration.
- Ensure that condo corporations are permitted to borrow below a certain amount without a borrowing by-law or alternatively, permit borrowing below a certain amount by way of credit card or overdraft protection without a borrowing by-law.
- Delete the provision in Bill 106 which requires mandatory mediation and arbitration of disputes between condo corporations and managers.
The Legislative Brief not only contains recommendations on 28 issues, but also describes the potential adverse consequences relating to those issues that could arise with the existing wording contained in Bill 106.
The Standing Committee will continue to hear oral presentations on Thursday, October 29, 2015. While the deadline to request the opportunity to make an oral presentation has already passed, written comments on Bill 106 can still be submitted by no later than 6:00 pm on October 29, 2015.