In 2017, a series of changes to the Condominium Act were implemented. The goals of the changes were to provide new services and protections for Ontario condominium owners. It has resulted in the designation of two administrative authorities: the Condominium Authority of Ontario, and the Condominium Management Regulatory Authority of Ontario.
https://www.condoauthorityontario.ca/
What is the Condominium Authority of Ontario? (CAO)
The CAO is an administrative authority created under the Condominium Act, which means that it is:
- An independent, not-for-profit organization
- Managed by an independent Board of Directors
- Funded by condominium corporations, and users of its services (not taxpayers)
- 100% of funds collected are used for executing the responsibilities delegated to it by the Condominium Act and its regulations
- The Ministry of Government and Consumer Services maintains accountability for the performance of the CAO and is responsible for reviewing annual reports, business and strategic plans (including budgets), and ongoing monitoring and oversight
Fees
The CAO charges assessment fees to all condominium corporations in Ontario to fund its services to condo communities.
Assessment fees are calculated based on $1 per month, per voting unit (or per vote for common elements condominium corporations) – HST is not charged on assessment amounts. This amount is subject to change based on the operating needs of the CAO.
According to the Condominium Act, the total assessment fee for each condominium is to be considered part of the corporation’s common expenses.
Individual condo owners are to be charged based on the percentage that they contribute to the common expenses, as set out in the condominium corporation’s declaration.
If a condominium corporation fails to pay the assessment fees, the corporation may be subject to administrative financial penalties, may be unable to maintain a dispute before the CAT, and the information may be made public on the CAO’s public registry.
The CAO’s Mandate
The CAO launched on September 1, 2017, providing new services for condo communities. These include:
- easy-to-use information to help owners and residents understand their rights and responsibilities;
- free online resources to assist individuals with identifying and resolving common issues before they escalate into disputes;
- mandatory training for all condo directors elected or appointed after November 1, 2017;
- resources to help condo owners and residents resolve common issues;
- an online dispute resolution service through the new Condominium Authority Tribunal (CAT)
Condo Director Training
As of November 1, 2017, all condominium directors in Ontario must complete the CAO’s director training program within 6 months of being appointed, elected, or re-elected to a board (unless they have already completed the training within the preceding seven years).
The training is provided by the CAO through its website and is available to everyone, free of charge, and covers many relevant topics, including director responsibilities and obligations.
While the training does not contain a formal exam or test, there are knowledge checks throughout.
If a director does not complete the training within 6 months of being appointed, elected, or re-elected, they immediately cease to be a director of the corporation, as set out in a regulation to the Condominium Act.
Condominium Authority Tribunal (CAT)
The Condominium Authority Tribunal, or CAT, is a new online tribunal that helps to resolve condominium-related disputes. The CAO developed the Condominium Authority Tribunal Online Dispute Resolution (CAT-ODR), to help people resolve their disputes conveniently, quickly, and affordably
The CAT has a three-stage dispute resolution process to encourage Users to work collaboratively to resolve their issues, while still providing formal decision making by an impartial Tribunal Member. The three stages are:
- Negotiation
- Mediation
- Tribunal Decision
A regulation to the Condominium Act sets out the types of disputes that can be filed with the CAT. At this time, only Section 55 “records disputes” can be filed with CAT, though we expect that the government will add more dispute types in the future.
Other disputes continue to be addressed through mediation, arbitration, or the courts.
Condo Returns
As of March 31, 2018, all condo corporations are required to file condo returns with the CAO. Filing a condo return means providing specified key information about the corporation.
There are four different types of returns. The number and type of returns that each corporation must file depends on the date that the corporation was created, and when its turnover meeting was held.
The CAO uses the information provided in the returns to maintain a public registry of condominiums in Ontario.
GOVERNMENT ON THE MOVE: MORE REGULATION ON THE HORIZON
The CAO’s current regulations are only the beginning. In the coming years the CAO will be:
- Gathering feedback from condo communities to better understand and respond to their needs
- Increasing and improving the information and resources available on the CAO’s website
- Refining the mandatory director training
- Expanding the functionality and capacity of the Condominium Authority Tribunal
- Doing more outreach and consultations
Some of the current changes that have been implemented since 2017 include:
Communication & Transparency
- Information Certificates are sent to owners, at least twice a year, with information about the condo corporation
Director Disclosures & Training
- Mandatory disclosures for condo directors and candidates for director positions
- Mandatory training for condo directors
Records
- New requirements for accessing condo corporation records
Meetings
- Prescribed forms for meeting notices and proxies
- New quorum rules for certain meetings
Condominium Management Regulatory Authority of Ontario (CMRAO)
The CMRAO is responsible for the mandatory licensing and regulation of condominium managers and condominium management companies.
Condo Manager Licensing
Anyone providing management services for condominiums is now required to hold a licence from the CMRAO. Management companies are also required to hold a company licence.
Fees
Every year, management companies and managers are both required to pay fees to the CMRAO, which funds its operations.
Enforcement
Effective February 1, 2018, there will be a public complaints process and enforcement measures where the Registrar may, for example:
- Require additional education
- Propose to suspend, revoke or add conditions to a licence
- Refer alleged Code of Ethics violations to a Discipline Committee
CHANGES TO THE ACT: MORE DETAILS
Directors: New Training and Disclosure Requirements
New candidates standing for election or re-election will be required to provide a statement of disclosure, so that the disclosure may be included with the notice of meeting, or at the meeting itself. If the director does not provide the required disclosure within the required time, they will immediately cease to be director. What do directors have to disclose? Primarily, a director must disclose:
- If they are not an owner or occupier of an unit
- If they or a family member are party to any legal action involving the condominium
- If they have been convicted of an offence under the Condominium Act within the past decade
- If they have a vested interest in a contract or transaction involving the condominium
- If they are in arrears for 60 days or more
Directors must also receive training within six months of being elected or appointed. The modules are offered online.
Information Certificates
There will also be more communication between corporations and unit owners. Condominium Corporations are required to send out three different types of certificates. The first, a Periodic Information Certificate [PIC] similar to a Status Certificate, is to be provided twice per fiscal year, within 30 days of the end of the first and third fiscal quarters. The second, an Information Certificate Update [ICU], will be required any time there is a change in certain information, including a change of address, property manager, or directors. The third, the New Owner Information Certificate [NOIC] including the most recent PIC and ICU, will be sent within 15 days of a new owner giving notice in writing of becoming an owner.
Records
The importance of such paperwork translates to record-keeping as well. There is now a seven year minimum for financial records and other operating records of the corporation. Fundamental corporation documents must be retained for an unlimited amount of time. A process for access to these records has been set out, under the regulations. Using a prescribed form, a requester may identify the records requested and the preference to access.
Meetings
There are new requirements in terms of meeting notices and the information contained in these notices. First, there must be a prescribed preliminary notice of meeting, sent before the notice of meeting. The preliminary notice must include a request that candidates notify the board in writing of their intention to be a candidate if the meeting includes election of directors, and that owners wishing to propose a candidate for auditor do so in writing prior to a deadline where the removal or appointment of the auditor is included on the meeting agenda. Owners may also include any material with the notice of meeting, provided it is made on behalf of at least 15% of owners and does not add anything to be presented at the meeting that is contrary to the Act or Regulations. Quorums are now at least 25% of owners on the first and second attempts at holding a meeting, and 15% on subsequent attempts. Proxies are in a prescribed form, and voting will be permitted through telephonic or electronic means (dependent upon By-laws).