Ontario publishes draft condominium regulations

14 February 2017

By Kevin Zakreski

24 February 2017 Update: The text of the draft regulation under the Condominium Act, 1998, is now available (PDF).

In December 2015, Ontario enacted the Protecting Condominium Owners Act, 2015 (PDF), a statute containing sweeping reforms for Ontario’s condominium sector. While the act isn’t yet in force, it has moved closer to that goal with the appearance yesterday on the Ontario Regulatory Registry website of new draft regulations developed by the Ministry of Government and Consumer Services for Ontario. Two sets of draft regulations are currently open for public comment.

Draft regulation under the Condominium Act, 1998

The first draft regulation is a proposed regulation for the Condominium Act, 1998. The ministry has prepared a plain-language summary of this draft regulation (PDF) for public review.

Implementation of the reforms is planned to take place in phases. This draft regulation supports the first phase. The intent of this phase is described in the following terms:

This phase of regulation amendments primarily addresses condo board governance. The proposal incorporates input that was received during an open and collaborative public engagement process that the government undertook from 2012–2014 as a part of the Condominium Act Review, as well as from input received since then.

An outline of the proposed regulatory changes, along with a timeline for implementation, has been provided:

  1. Communications (planned to come into force on July 1, 2017)

Improving communications between boards and owners, including:

  • Regular mandatory updates about the corporation, including its finances.
  • Clearer rules around the corporation’s requirement to maintain a record of owners.
  1. Director Qualifications & Disqualifications (planned to come into force on July 1, 2017)

Improving condo board transparency and training, including:

  • New requirements for mandatory director training.
  • New requirements for candidates for director positions and sitting directors to disclose information such as potential conflicts.
  1. Meetings (planned to come into force on July 1, 2017)

Improving meeting and voting procedures, including:

  • New notice of meeting procedures.
  • Establishing new mandatory proxy forms.
  1. Records (planned to come into force in fall 2017)

Providing clearer rules regarding records retention and access, including:

  • A non-exhaustive list of records that need to be retained by each corporation and a minimum retention period for each type.
  • A more standardized process for records requests.

The ministry “welcomes feedback and encourages anyone interested to provide comments on the proposal by e-mail or mail.” The period for comments runs until 30 March 2017.

Draft regulation under the Condominium Management Services Act, 2015

The second draft regulation (which was originally posted late last year) is intended to support the “Condominium Management Services Act, 2015, which, once proclaimed into force, will regulate and provide for the licensing of condominium managers and condominium management providers in Ontario.” The ministry has provided both the proposed text of the draft regulation (PDF) and a plain-language summary (PDF) for public review.

The ministry has also prepared this outline of the proposed regulatory changes:

  1. Licensing & Transition

The licensing and transition aspects of the proposed General Regulation address:

  • Two-stage licensing;
  • Application requirements;
  • Educational requirements;
  • Conditions of a licence;
  • Exemptions from licensing; and
  1. Regulation of Licensees

The remaining aspects of the proposed regulation address:

  • Content of licence;
  • Proof of licence;
  • Retention of business records;
  • Transfer of client condominium corporation records;
  • Public information on licensees; and
  • Complaints procedures.

The ministry is aiming to bring this regulation into force on 1 July 2017.

This draft regulation is open for public comment until 24 February 2017.

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