The Ontario government unanimously carried the Protecting Condominium Owners Act yesterday in its second of three readings, with the qualified support of the opposition parties. The provincial legislature referred Bill 106, as it is known, to the standing committee on finance and economic affairs. If passed into law, the bill will update the Condominium Act, introduce the Condominium Management Services Act and amend other legislation including the Ontario New Home Warranties Plan Act.
During the preceding debate, the Progressive Conservatives and NDP acknowledged the bill’s merits, but also raised a range of concerns. Despite their concerns, the opposition parties recognized the urgency of moving the draft legislation along. They will have a chance to address what they see as the bill’s shortcomings at committee stage, where it heads next for in-depth review.
MPPs from all parties welcomed many of Bill 106’s proposed consumer protection measures, such as introducing an easy-to-read condo guide, standardizing disclosure statements and preventing surprise increases to fees. Other well-received features of the draft legislation included basic education for directors and condo manager licensing.
Randy Pettapiece, the PC’s former critic for government and consumer services, singled out the proposed legislation’s condo authority as “arguably the most important and most controversial part of this bill.”
The condo authority would maintain a registry of the province’s condo corporations as well as deliver education and dispute resolution services. The Ontario government would fund its start-up costs, and its operating costs would be funded through a combination of user fees and a levy on condo owners of roughly $1 per unit per month.
David Orazietti, minister of government and consumer services, touted the condominium authority tribunal as a fast, cheap alternative to the courts with the potential to divert around 75 per cent of cases from costly litigation, mediation and arbitration.
Pettapiece said he agreed with tribunal’s intent, but he questioned whether it would be effective, pointing to the wait time for cases to be heard at some of the province’s existing dispute resolution agencies, such as the Landlord Tenant Board.
Jagmeet Singh, the NDP’s critic for government and consumer services, suggested the proposed legislation didn’t take the condominium authority’s dispute resolution function far enough. The tribunal would only hear disagreements between condo boards and owners.
“Many of the complaints that people have when it come to their condominiums — those complaints are against the developers and condo managers,” he said. “Those are the two individuals that people have the most complaints with, but very curiously, those are the two people that the tribunal that’s created by this legislation does not in any way cover.”
Other issues raised by the opposition parties included a desire to reform Tarion and concerns about adding new layers of bureaucracy and red tape in the form of not only the condominium authority but also the condo manager licensing authority.
As he moved the bill into second reading, Min. Orazietti asked for the provincial legislature’s support in passing the reforms into law. He described the reforms as critical improvements to consumer protection in a market that has changed dramatically since the legislation governing it was last updated almost 17 years ago.
The proposed legislation touches five key areas: consumer protection, dispute resolution, governance, condo management and finance. Its reforms are based on more than 200 recommendations to come out of a three-stage public consultation spanning 18 months.
“During the extensive consultation process which preceded the drafting of the proposed legislation, we heard from condo owners and residents who were worried that their quality of life and significant monetary investments were in jeopardy,” said Orazietti. “It’s imperative to overhaul the existing condo laws to better meet the needs of the province’s transformed landscape.”
Following approximately 10 hours of debate that occurred across seven days in the provincial legislature, the Liberals’ Mike Colle, MPP for Eglinton-Lawrence, called on his colleagues to refer the bill to committee, to add the voices of the public, experts and stakeholders to the debate.
After committee stage, where members may hold public hearings and consider revisions, the bill will reported back to the provincial legislature for third reading and put to a final vote. For now, the current Condominium Act remains in effect.
Michelle Ervin is the editor CondoBusiness.
