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Legislative Brief (C ondominium Act,1998) Primary Topics. Brief & Summary submitted May 31, 2011 Well received by government Meeting with government – very productive Might form basis of their analysis Must finalize submissions & soon. Government has 4 primary topics: (a) Governance
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Brief & Summary submitted May 31, 2011 • Well received by government • Meeting with government – very productive • Might form basis of their analysis • Must finalize submissions & soon
Government has 4 primary topics: (a) Governance (b) Financial (b) Dispute Resolution (ADR) (c) Licencing of Managers
Governance -Corporate Records – Access for owners -Collect all reasonable costs in compliance -Owner-Occupied Elected Director position -Proxies -Directors minimal compulsory education
Corporate Records – Access (s. 55)55(3) – Examination - can charge a reasonable fee for retrieval, organization and monitoring 55(4)(b) – Exception - Include confidential matters which if disclosed would prejudice the corporation, employees, owners, residents
Corporate Records – Access (s. 55)55(4)(c) – Produce names of owners and address for service that is in corporate recordsCondo Commando (fishing) vs. Rogue Board (improper interference of legitimate request)55(8) – Delete Penalty ($500 fine)
Compliance- no pre-condition for mediation & arbitration (amend 134(1) and 132(4))- Costs of enforcing order can be added to common expenses for unit- add breach of joint by-law or joint rule- ability to order termination of lease and eviction on first application
Owner-Occupied Elected Director- Sec. 28 and 51(5) & (6)- Eliminate concept and position - not necessary - make elections, ballots and proxies easier- If not eliminate then: - criteria should not be “if at least 15%” but rather “if less than 70% - Change definition in 55(5)
Proxies- Sec. 52(5) – delete subsection- Proxies not have to name candidate- Allow to be used for nominations from floor- Add right not to vote, but use for quorum Mandatory Education of Directors-Sec. 29 (3)-introductory, minimal course – within 2 years
FinancialInsurance DeductibleMore Disclosure by Developers Accountability – 1st Year Budget ShortfallTarion to cover Conversions Alterations Common Elements (S. 97) – - increase monetary threshold
Insurance Deductible-Sec. 105(2) and new (3)-damage to common elements and other units-repairs to be carried out by Corporation Developers-More disclosure-key financial issues (s. 72& 112) -better budgets -disclose all agreements, leases, -Accountability 1st year budget shortfall (s. 75) -new 75(7) – interest if not paid within 30 days
Alterations to Common Elements-Sec. 97-Increase monetary threshold (97(2)(c))-greater of 3% of budget or $15,000 -delete “in any given month” – confusing -if no quorum at requisitioned meeting then approved-Delete definition of “Substantial Change”
Reserve Fund - FundingMinimum contribution in 1st year budget increase to 20% -Define “Adequate” not “Sufficient” - inflation-matched; - no deficit - balanced-We recommend inflation-matched in 3 years
DISPUTE RESOLUTION - Sec. 132, 134 and 135- Single biggest issue across Canada- no easy solution- models across North America- condo commandos and rogue boards- emotional, passionate
ADR ModelsOmbudsmanInformation Office/Officer - Government - Private (e.g. CCI(T) or ACMO)
ADR ModelsTribunals (a)Operated & Funded by Government - government officer represents owner - owner represents self or with lawyer (b) Privately Operated - ACMO or CCI(T)
TribunalsNova Scotia - Condominium Dispute Officer - either side can apply - very limited grounds - Fee of $115 - right of appeal – condo appeal officers - similar to Tarion and LATOtherwise arbitration
TribunalsBritish Columbia(a) Provide Resources and Information (b) Formal Dispute Resolution - Try to get settlement - Make binding decisions- limited jurisdiction- Still access to Superior Court
TribunalsAmerican Models-Most have mediation (voluntary or mandatory) – state may offer service -Most have some form of arbitration -binding and non-binding -Trial de novo in court but huge cost consequences if not do better - Condo corporation can issue fines
Other AlternativesWilliam Stratas Concept (MTCC 933)-Statutory Director appointed by gov’t to sit on dysfunctional, rogue boards - mentorship, teaching, coaching, etc - Owners or Board members can trigger - limited time on Board but full voting - Corporation pays for Director
Dispute Resolution- More to do - Wish 2-3 models to take to community for feedback-Will never satisfy everyone, but hopefully better solution and balance