New Proposed Regulations Under the Condominium Act

The Ontario Government has released a summary overview of the proposed draft regulations under the Protecting Condominium Owners Act (the “PCOA”) on February 14, 2017. These regulations are anticipated to come into force on July 1, 2017.

You can access a PDF copy of the Government's summary on their website: here.  A PDF copy of the proposed draft Regulations to the Condominium Act, 1998, S.O. 1998, c. 19 (the "Act") is now available as well: here.

The Government's summary provides a helpful look at 4 key areas of change which are critical to the well-being of condominiums:

1. Communication:
   1. a Periodic Information Certificate sent twice a year, containing information found in status certificates, and other matters affecting the condominium;
   2. an Information Certificate Update that would be triggered by certain events, such as a change in the directors or property manager; and
   3. a New Owner Information Certificate that would be sent to each new owner of the condominium, containing a copy of the most recent PIC and ICU.
2. Director Qualifications and Disqualifications:
   1. directors and candidates for elections must make certain disclosures; and
   2. directors must complete mandatory educational training.
3. Meetings and Voting:
   1. preliminary notices and notices of meeting;
   2. the timing and process for submitting information about candidates for directorships;
   3. the timing and process for owners to submit other material for inclusion in the notice of meeting;
   4. how condominiums hold votes at meetings;
   5. mandatory proxy forms;
   6. lowering quorum requirements; and
   7. greater flexibility for board meetings to be held by electronic communication.
4. Records:
   1. how a new owner must give notice to the condominium that they are an owner within 30 days;
   2. the form in which owners can agree to receive notices electronically, and the way in which electronic notice may be delivered;
   3. a default 7-year minimum records retention period for financial records and other operating records, and an unlimited retention period for fundamental documents such as the governing documents, insurance policies, meeting minutes, performance audits, and reserve fund studies;
   4. proxies, ballots, and recorded votes must be kept for 90 days after meeting; and
   5. a revised process for unit owners to access records.

The Ontario Government is asking members of the public to provide their comments on these proposed regulatory changes. The ministry will be taking the feedback it receives into consideration, when bringing forward the final regulation for approval. The summary also provides timeframes which may be of assistance.

We encourage you to provide feedback on the proposed regulatory changes through the link: here.

Due Date for Comments:

March 30, 2017

Contact Address:

56 Wellesley St. W, 6th Floor, Toronto ON, M4Y 1G2

The ministry is also seeking the public’s input on a regulatory proposal to support the implementation of the CMSA, which will license and regulate condominium managers and condominium management providers in Ontario. The due date for comments on those proposed regulations is February 24, 2017. To view and comment on this proposal, please visit: here.

All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.

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