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Rapid Fire Legislative Update. What do you really need to know? April 6 th , 2011 PMExpo – Toronto, Ontario. Legislative Brief Fairness in Municipal Taxation Licensing of Property Managers Presented by: Armand Conant. Condominium Act, 1998 Is it Changing?. LEGISLATIVE BRIEF
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Rapid Fire Legislative Update What do you really need to know? April 6th, 2011 PMExpo – Toronto, Ontario
Legislative Brief Fairness in Municipal Taxation Licensing of Property Managers Presented by: Armand Conant
Condominium Act, 1998Is it Changing? LEGISLATIVE BRIEF Joint CCI/ACMO Initiative
LEGISLATIVE BRIEF Previous Legislative Committee (1990’s) Huge joint effort of CCI and ACMO Very successful Over 150 recommendations About 70 accepted/ adopted Over 80 recommendations not accepted
LEGISLATIVE BRIEF Today’s Condominium Community Approx. 6,700 residential condo corporations Toronto – over 2,000 corporations Over 1.3 million people live in condos Over 500,000 voters live in condos Politicians beware
LEGISLATIVE BRIEF Joint Committee formed in 2004 Contacted government to open the Act Told to come back in 5 – 10 years Input from all parts of community: Owners, Boards, and professionals
LEGISLATIVE BRIEF Recommendations Property Tax Assessment – Fairness in Municipal Taxation Governance Remove notification requirements for candidates Remove owner-occupied elected Board position – because not unnecessary
LEGISLATIVE BRIEF Governance If no address given then can use unit address Officers should be protected from liability if they rely on professional advice. Clarify that voting can be done by secret ballot Better accountability by developer for first year budgetary shortfall
LEGISLATIVE BRIEF Other Corporate Records – better access for owners Owners’ Rights - Improve manner to deal with legitimate concerns of owners so as to minimize legal costs and time required Maintenance and Repairs – clarify Reserve Funding by Developers - more
LEGISLATIVE BRIEF Other Disclosure Statement - Better disclosure Reasonable costs in obtaining compliance Reserve Funds and Reserve Fund Studies Insurance Deductible – cover damage to common elements and other units Section 97 changes
LEGISLATIVE BRIEF WE NEED YOUR HELP Contact your M.P.P. Contact all politicians in all parties Write, email, call, fax government Pressure, pressure, pressure
FAIRNESS IN TAXATION Condominiums are not recognized as a distinct class and are taxed at the same level as single family homes Each class has its own mill rate as set by the municipality to raise sufficient taxes to meet the budgets set by the local municipality.
FAIRNESS IN TAXATION A 500 unit high-rise condominium has a land footprint equivalent to that of 15-20 single family homes…. BUT All 500 condominium units are taxed as single family homes though not receiving any of the same benefits
FAIRNESS IN TAXATION Solution Two Property Tax Classifications for Condos High Rise Townhouses
LICENSING Industry growth in the past 7 years has been remarkable In 2003 there were 5847 Condominium Corporations with 426,000 individual units or homes In 2010 there are 6680 Condominium Corporations with 510,000 individual units or homes
LICENSING The value and complexity of the condominium Communities is increasing. The potential for damage by the untrained, and unscrupulous is increasing.
LICENSING In 2002 a Halton Region condominium was defrauded of at least $190,000. (the condo claims it was $282,000) This individual could be employed as a condominium manager today.
LICENSING In 2009 a Toronto based company – (not an ACMO member) indicated that one of its employees or sub-contractors had defrauded several condominium corporations of over $250,000. While the employee has since deceased the Management company is still managing condominiums
LICENSING The condominium sector has developed into a complex home ownership market Owners have tools under the Act to supervise the Boards Licensing is one option to remove unscrupulous people from our profession
Ontario Human Rights Code • Accessibility for Ontarians with Disabilities Act 2005 Prepared By: John A.A. Deacon, LLB, Certified Arbitrator/Mediator Partner of Deacon Spears Fedson + Montizambert
Ontario Human Rights Code In updating statutes and their impact on condominium corporations there are two possibilities: Reference to new legislation and its perceived or anticipated impact. Reference to recent case law interpreting the impact of existing legislation on condominium corporations. The structure of the Ontario Human Rights Code is to provide protection against discrimination on the basis of specified headings in the Code including – the right of access to accommodation, services and facilities if the complainant can establish he/she is discriminated against because of gender, disability, familystatus, or other specified heading in section 1 or 2 of the Code.
Some Recent Applications of the Code: • Family Status • Kilfoyle v. Nipissing Condominium Corp. No. 4 • Disability • McMillan v. Bruce • DiSalvo v. Halton Condo. Corp. No. 186 • Other Cases – an indication of future issues • Iourtchak v. York Condo Corp No. 201 • Anderson v. Carleton Condo Corp No. 8, • Kabatoff v. Strata Corp Plan NW 2767 • Myrand (decision of the Quebec Human Rights Commission)
Accessibility for Ontarians with Disability • Act 2005 (AODA) • Purpose is to ensure that, by the year 2025, the Province of Ontario is totally accessible and barrier free for persons with disabilities. • Five different accessibility standards have been developed by the Province of Ontario under the AODA. • Customer Service Standard • Transportation • Information and Communication • Employment and • Built Environment
Occupational Health and Safety Presented by: Patricia Elia, B.Comm, LL.B., ATC
Workplace Violence and HarassmentBill 168 Have you ever been a victim?
What do you need to know? • Purpose: To Eliminate Violence and Harassment in the Workplace • Legal Duty: You MUST have a policy and procedures that deal with Workplace Violence and Harassment • You must review the policy - Annually • You must actually implement the policy
Westray/ C-45 – Criminal Liability Duty of Persons Undertaking Acts 217. Every one who undertakes to do an act is under a legal duty to do it if an omission to do the act is or may be dangerous to life. Duty of Persons Directing Work 217.1 Every one who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task. Criminal negligence • 219. (1) Every one is criminally negligent who • (a) in doing anything, or • (b) in omitting to do anything that it is his duty to do, • shows wanton or reckless disregard for the lives or safety of other persons.
Purpose of the Section Accountability !!!! • FOR actions or omissions • BY organizations and those individual placed in authority, either individually or in the aggregate
Proactive Management of Risk • Clarity of Objective: • Keep people safe • Analyse sources of risk: • Relationships • Activity • Materials • Policies and Procedures: • Develop, Implement and Review
Tarion Reserve Fund Studies Green Initiatives Peter Leong, P. Eng., ACCI Director, Buildings - GTA GENIVAR
Tarion - What’s New Process Timing Protection?!
Tarion Builder Bulletin 49 • Post Performance Audit Follow-Up • Developer Reply 60 days after PA done • Resolve Deficiencies 18 months from the 1st anniversary of the date of condominium registration • Conciliation Request within 60 days after 18-month period • Developer Repairs Pre-Conciliation Repair Period (90 days) • Conciliation 91 to 150 days after the 18-month period • Developer gets almost 3 years by statute
Tarion Builder Bulletin 49 • Process • Must file Common Elements Form and • PA Tracking Summary on time and completely • Cannot drive the Developer too hard • Filing Fees to go to Conciliation • What about the Professional Fees????
Tarion Builder Bulletin 49 • Protection • Fairer Outcome for Condominiums? • Monetary Penalty – not much • Reputational Risk – should be higher • More Consumer Protection – Missed Opportunity!
Harmonized Sales Tax Impact Reserve Funds What is Adequate?!
HST • Joint effort by ACMO and CCI-Toronto’s Government Relations Committee • Numerous meetings with different levels of government to raise awareness • Condominiums ARE different.
HST • Government makes concession on annual Reserve Fund Contributions • Condominiums registered before • May 5th 2001 • 15 years to top up the Reserve Fund as opposed to 10 years.
What is an Adequate RF? • Regulations say RF must be “Adequate” over 30 years • Minimum Threshold Balance • $ 0? $1,000/unit? $5,000/unit? • Accuracy of Major Repair/Replacement Costs