Rapid Fire Legislative Update

What do you really need to know?April 6th, 2011

PMExpo – Toronto, Ontario

Legislative BriefFairness in Municipal Taxation

Licensing of Property ManagersPresented by:

Armand Conant

Condominium Act, 1998 Is 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 BRIEFRecommendations

• 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 CondosHigh 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:

1.Reference to new legislation and its perceived or anticipated impact.

2.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, family status, 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. BruceDiSalvo 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

Are you Safe?

Ontario

Accident Investigation Responsibilities:

Jurisdiction Duty to InvestigateCommittee Involvement

Written Report Required?

Ontario [OHS Act, Ss. 8, 9, 32.02 (2)]

No specific requirement; general duty may imply.

Employer’s violence policy to set out how incidents of workplace violence will be investigated.

Worker committee member or H&S Rep to investigate accidents involving critical injury or death.

Yes

OHSA Regulations – A highlight for PMs

Accident Reporting Requirements (Ontario):Notification Req’d for Accidents Involving Serious Injury, Death, or Dangerous Occurrences

Other Accidents Notification Req’d to Joint Committee/ H&S

Reference

Yes, notice to Ministry of Labour:Inspector, within 48 hours by telephone, telegram or other direct means.Director, within two days of dangerous occurrence that does result in death or serious injury

Notice to director of:Accidents, explosions, fires or incidents of workplace violence involving disabling injuries only, if so required by inspector.Occupational disease, within 48 hours of being informed.

All notices also to committee/H&S representative and trade union, if any

OHS Act, Ss. 51-53; Regulations for different types of industries (e.g. Regulation respecting Industrial Establishments, S. 5)

Competency Requirements (Ontario):

Regulation respecting Construction and Construction Projects Definition: Competent worker

General;–Supervisor or assistant personally supervising work–to perform tests and observations to detect - hazardous conditions

Fall Protection:–To instruct workers in use of fall protection system–To inspect travel restraint system–To inspect fall restricting system–To inspect fall arrest system–To install safety net, inspect and test the installation–Worker designated to inspect horizontal lifeline system

s. 1.1 ss. 14 & 15

s. 26.2 s. 26.4s. 26.5s. 26.6s. 26.8s. 26.9(8)

Competency Requirements (Ontario) Continued

Regulation respecting Asbestos in Construction Projects

Definition: Competent workerApplication to every ownerAdoption of standard:– To collect material samples for establishing asbestos content

Type 1, 2 and 3 Operations

s. 30 of the OHSA

s. 1(1) s.2s. 3 

  Section 12

Regulation 490/09 – Regulation of Designated Substances: Section 5(1) paragraph (c)

Competency Requirements (Ontario) Continued:

Window Cleaning Regulation

Safety precautions and requirements:-Every Window cleaner must be at least 18--Every window cleaner must use protective equipment, clothing or devices and must be trained before using-- Fall arrest system if exposure to a fall of more than 3 meters

–To inspect lifeline used in fall arrest system

Scaffolds, boatswain’s chairs and related equipment:–To supervise erection, alteration or dismantling of scaffold–To inspect primary suspension lines and lifelines–To inspect anchor points and permanently installed suspended scaffolds

s.8s.9

s.10 (1) to (3)

s. 10(6) s.21 s.27 s.41

Director’s Legal Duties:

Requirements Reference

OHS legislation imposes duties on directors and officers of a Corporation to “take all reasonable care to ensure that the corporation complies with” the Act and regulations and orders and requirements of Ministry Inspectors and Directors and of the Ministry of Labour.

OHS Act, S. 32

Education and Training (Ontario):

Jurisdiction Training Requirement

Ontario Employers to provide workers with information, instruction, and supervision necessary for health and safety (S. 25), (and) acquaint workers and supervisors with hazards related to work (S. 25).

Education and Training (Ontario) Continued:

Jurisdiction Time Off for Training Specified Training Content

Who Requires Training?

Ontario(OHS Act, S. 9 (12) – Note WSIB sets out training standards for certification)

Time not specified, but pay

Certification training- must meet WSIB standards.

Certified JHSC members

JHSC’s and OHS Worker Safety Reps:Jurisdiction Worker’s Safety

RepresentativesHealth and Safety Committees

Ontario – Occupational Health and Safety Act

Generally, for any workplace (including contraction) where the number of workers exceeds five and where a committee is not required. The powers of representatives are described in the Act. Time spent by a representative carrying out his functions is deemed to have been spent at work (s. 8). There is protection against dismissal or disciplinary action if acting in accordance with the Act and a right to complain to the Ontario Labour Relations Board, with the burden of proof being on the employer (s. 50).

Mandatory if: 1) there are 20 or more workers; 2) a regulation made in respect of a designated substance applies to the workplace; or 3) an order has been issued regarding a biological, chemical or physical agent. Exclusions specified in the Act: construction projects lasting less than three months, other workplaces exempted by reg. Notwithstanding above, committees may be required by the Ministry of Labour. The Act specifies their functions and power. Time spent by a committee member carrying out his duties is deemed to have been spent at work (s. 9).

Workplace Violence and Harassment

Bill 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 Acts217. 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 Work217.1 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

What happens if Workers are not safe?

Proactive Management of Risk

• Clarity of Objective: Keep people safe

• Analyse sources of risk:RelationshipsActivityMaterials

• Policies and Procedures: Develop, Implement and Review

TarionReserve Fund Studies

Green Initiatives

Peter Leong, P. Eng., ACCIDirector, Buildings - GTA

GENIVAR

Tarion - What’s New

Timing Process Protection?!

Tarion Builder Bulletin 49Post 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

• 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!

Tarion Builder Bulletin 49

Harmonized Sales Tax

Reserve Funds Impact 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

Energy Initiatives

Financial Environment Comfort

Why Go Green?

Financial Reasons

• Good Rate of Returns $$

• Lower Operating Costs

• Higher Resale Value

Why Go Green?

Non-Financial Reasons

• Saving the Environment

• Increased Comfort to Residents

• Reduce Unit Owner Complaints

Possible Energy Retrofit Projects

• Boilers• Chiller• Lighting• Building Envelope (Roofs, Walls, Windows)• Solar Panels (Feed-In Tariff (FIT) Program)

Energy Initiatives

Energy InitiativesToronto Hydro 2011‐2014 Programswww.torontohydro.com

• Conservation and Demand Management (CDM)• Appliance Exchange/Retirement Programs • Demand Response Program• Energy Audit Program • Instant Rebate Programs• HVAC Rebates Program• Consumer Incentives• Commercial Retrofit Program• Industrial Retrofit • Small Business Program

Incentives

Source Incentives AvailableEnbridge Gas Up to $100,000

www.enbridge.com Better Buildings Partnership Up to 50% of project costs

bbptoronto.caNatural Resources Canada Up to $50,000

nrcan.gc.ca/eneene/index-eng.php

Energy Initiatives