Bill 72: A Buy for Some Condominium Act Changes, a Bye for Others

by Gregory Kim

In 2015, the Ontario government delivered the Protecting Condominium Owners Act, which was intended to create a new Condominium Act (the “Act”). It contained many sections which were to be proclaimed in the future. In Ontario, sections that are not proclaimed within 10 years automatically lapse and do not become law.

This month, the Ontario government passed Bill 72, also known as the Buy Ontario Act, giving itself more time to bring certain changes to the Act into effect. These changes are not yet law, but the extension gives the government an additional year to finalize them and draft regulations that clarify how they will work. For condominium corporations and managers, this development signals that some long-discussed updates remain on the horizon, even though nothing changes immediately.

The extended changes affect several areas of day-to-day condominium operations. The following proposed changes are still on the table:

1. Shared Facilities: Corporations that share amenities like gyms or pools will need formal agreements. Future regulations may set rules for cost-sharing and governance of these agreements.
2. Owner-Occupied Unit Position: Boards will only be required to reserve a special director position for owner-occupied unit owners, if one of those owners requests it. Owners must confirm their unit is not leased before voting for that position. These changes are intended to replace the current owner-occupied director election provisions.
3. Owners’ Meetings: A standard form will be introduced and required for owner requisitioned meetings, and corporations must respond and hold the meeting. Disputes could go to the Condominium Authority Tribunal if its powers expand.
4. Developer Restrictions: Developers will face tighter limits on clauses in governing documents that harm corporations later, giving boards better tools to challenge construction-related issues.
5. Board Terms: Directors elected by owner-occupied unit owners can remain in their roles until the next election, even if their term expires in the interim.
6. Status Certificates: Status certificates will include additional information. Boards will be required to disclose the impact of lawsuits and shared facilities agreements on the financial health of a corporation.

Not all proposed changes were extended. The following proposed changes will expire at the end of this month and will not move forward:

1. Reserve Funds: The proposed changes would have provided clearer guidance on adequate funding levels and major repair qualifications. These changes would have required Corporations to seek out expert opinions when reserve funds are insufficient.
2. Procurement: The proposed changes would have introduced a standardized procurement process. Corporations would have been required to follow a regulated process before entering certain contracts or transactions.
3. Annual Budgets: Owners would have been entitled to individually request and receive updated budgets without having to wait for biannual updates through Periodic Information Certificates.
4. Chargebacks: The proposed changes would have provided greater transparency around chargebacks, including new scenarios where chargebacks apply and mandatory notice and response timelines.

The decision not to extend these proposals results in their elimination. For now, and in near future, corporations will continue to follow existing rules in these areas. For condominium boards and managers, the key takeaway is that the government is keeping the door open for some updates in the future. The next step will be for the province to decide which amendments to proclaim and to draft regulations that explain how they will work in practice.