Legislative Brief (Condominium Act,1998) Primary Topics

-Brief & Summary submitted May 31, 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 records Condo 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

Financial Insurance Deductible More Disclosure by Developers Accountability – 1 st Year Budget Shortfall Tarion 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 1 st 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 - Funding Minimum contribution in 1 st 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 Single biggest issue across Canada - no easy solution - models across North America - condo commandos and rogue boards - emotional, passionate

ADR Models Ombudsman Information Office/Officer - Government - Private (e.g. CCI(T) or ACMO)

ADR Models Tribunals (a)Operated & Funded by Government - government officer represents owner - owner represents self or with lawyer (b) Privately Operated - ACMO or CCI(T)

Tribunals Nova Scotia - Condominium Dispute Officer - either side can apply - very limited grounds - Fee of $115 - right of appeal – condo appeal officers - similar to Tarion and LAT Otherwise arbitration

Tribunals British Columbia (a) Provide Resources and Information (b) Formal Dispute Resolution - Try to get settlement - Make binding decisions - limited jurisdiction - Still access to Superior Court

Tribunals American 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 Alternatives William 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