Sunday, December 4, 2011

Are you on a Toronto Condo Board?

If you are on a Board of Directors for a condo this is well worth the read; Found this within the comments section while looking for square footage costs of other condo building in South Toronto with Lake Ontario access.

many older buildings (1970s, early 1980s) who ignored the 10 year grace clause in the 2001 Act about having their reserve fund catch up, and now they are handing out huge increases. It also seems that the number of Boards who are finding their owners unmanageable and are forced to go to the Superior Court of Justice, under S 130 of the Condo Act (1998) to have a court appointed Inspector take control of the building. This is an ugly and desperate process, but dysfunctional Boards, or uninformed Board members sometimes force the issue. When the Inspector waltzes in, compliance is NOT an option. When he/she hand out a 45% increase, they are in no mood to work out a payment plan. They will be merciless with costs and expenses, and they will try to fire everyone in sight. Not pretty.
Most older buildings pool their utilities and that is a nightmare as utility costs escalate. Some building managers stand by the lobby cameras to intercept laundry being brought into the building because (generally renters) with ‘free’ utilities invite their nearby friends and family to do their laundry.
Newer buildings with their 5-star hotel amenities are going to regret them one day. The good news: you will need an 80 or 90% vote of ALL owners to get rid of those expensive toys. Good luck with that. Getting quorum for a meeting or a 51% vote on what kind of pizza to order for a meeting is a chore.
Most Board members are not educated, and owners most certainly are not. The Condo Act does not say ‘shall,’ it says ‘must’ a heckuva lot. D & O insurance will not cover directors who ignore Reserve Fund studies, nor will spiteful owners be rewarded by voting directors (or Managers) off the island just because they are doing their due diligence.
If your building is rotating Managers or Management companies like a revolving door, then know something is wrong with the building, not the management companies.

I’ve often thought that anyone who eagerly wants to be on a Board should automatically be disqualified under the Act: after all, there is no pay and there is no glory, so other than revenge, a personal vendetta, or the misapprehension that they will gain experience and have some ‘fun,’ why else would any rational person want to be on a condo Board?

1 comment:

arrielle_p said...

Informative post you have shared in here. Thanks for blogging.

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