Special Assessments and the Power of the Board

The answers and comments to this concern is in Red , embedded in the comments.

Hello,

I am a condo owner in downtown Calgary . I purchased my unit 5 years ago. Recently, our board decided to have our lobby repaired. Apparently, the floor tiles were falling apart, so they have all been removed and are being replaced. Also, there was a waterfall that leaked and so, not only was it dismantled, but a new one is being built because the board decided to do so. The owners are being charged $100,000 for these repairs; my share comes to $850. I was under the impression that any major changes in a condominium should be decided by a majority vote by the owners, and not by a few board members. Is this correct? The Board is responsible for making these decisions and is not required to bring these to the owners for a vote. If the owners do not agree with the decisions of the Board they should state so in writing and bring this to the attention of the other owners at the Annual General Meeting of the Owners. Elect those Board members who you are confident will make decisions that are in the best interest of all owners and the property as a whole.

This is not the first time we that we have been forced to pay "Special Assessments." Every year since 2001, there have been financial shortfalls and some major construction defect that needed repairs. The condo Developer, has not only refused to correct these defects, but they are suing the owners over petty issues. We have tried, with little success, to have the Developer take responsibility for their actions - or INactions. They seem to be "untouchable." I don't know why.

Every year, the burden falls upon the owners to deal with the building's deficiencies. My unit, for instance, has a patio door that blows open in the wind, a glass pane that rattles and flecks of dried paint on the patio door. Also, my entrance door (hallway) was never properly painted. If that wasn't enough, my living-room windows were leaking during the heavy rains, last summer.

I had some other deficiencies but they were corrected, only after much persistence on my part. Other owners have unit defects, as well.

Am I legally obliged to pay this $850 Special Assessment? It seems more like a ransom demand. How do I know the money is not going to be pocketed by individual board members / managers? How do we know that the lobby repairs are being done properly? I find it hard to trust anyone, vis-a-vis this building. If you are concerned over the handling of the money you can suggest that the board put a Fidelity Bond in place in an amount that will cover the amount in the Reserve Fund Account and the Operating Account. As an owner, you have the right to request information under Section 44 of the Condominium Property Act. You would be required to make the request in writing and the board would then be obligated to provide the documents to you within 10 days. You could ask for copies of the Board meeting minutes and the financial Statements showing the months the money was collected and spent. The Act also allows that a board may charge a reasonable fee for providing the documents.

I have paid for my condo in full, I have never missed a monthly condo fee and I have always paid the demanded Special Assessments. But enough is enough. Is there not some limitation as to how much condo owners must pay for the irresponsibility of the vendors / condo board? The Board has the responsibility of maintaining the buildings and with it the power to collect the money it requires to fulfill this responsibility. The board is to act reasonably and in the best interest of all owners and the property as a whole. You may find it benefitial to sit down and talk to the board members. Ask them why they have not pursued the Developer for recovery of deficiencies, ask when the maintenance and repairs will be completed and when the demand for money is expected to end. Assume the Board members are doing their best to get the building repaired in a timely manner and as reasonably as is possible. Expect them to answer your questions in a reasonable amount of time and to respect your frustrations. You may want to consider getting on the board as this would give you the ability to be involved in the decision making process. Remember, the board members are volunteer owners who are also responsible for paying their share of the assessment. Over the past 30 years I have not come across boards that charge these assessments without there being good cause as they impact them personally as well.

Your feedback would be greatly appreciated.

Thank you.

JS

Pet Policy

When we moved into this condo two years ago the bylaws stated that this was a pet friendly condo, with certain restrictions such as only 1 pet per unit and size of dog etc. Over the last two years there has been a determined effort among some of the owners to get rid of pets entirely. A pet committee was formed a couple of times in an effort to come up with a bylaw which would be fair to both pet owners and non-pet owners alike, without any success.

As pet owners we are willing to walk our dogs inside but we have a problem in that one of our buildings has only one elevator in the centre of two long wings and we have many elderly, single people for whom this is a problem and yet the Board will not allow them to use the stairwells at either end to exit the building unless the pet is carried. This seems like a very dangerous situation to us as it is difficult to go up and down stairs carrying a dog and holding on at the same time. We have asked for a Special meeting to try and iron this out once and for all and this has been called. Our two points in the resolution are that Owners should be allowed to sell their units to a pet owner and secondly that pet owners should be allowed to walk their dogs using the stairwells, safety being our No. 1 concern.

Our questions are:

Can the Condominium Board change the bylaws so that no pets will be allowed? If a vote were to be taken, pet owners, being in the minority,would be at a distinct disadvantage. We also feel this will affect resale value., and also don't believe they have the right to change the rules
when the building was designated "pet friendly" in the first place.

If the Condo Board insists that pets be carried down stairwells , will they be liable for damages in the case of a person falling while doing so?
.
FID

Thank you FID for your comments and question. These are common concerns brough forward by condominium owners.

First, I would like to address the Special meeting for the purpose of passing a Special Resolution on this matter. The pet bylaw is what you will need to amend by way of Special Resolution. A Special Resolution requires 75% of "all registered owners" and 75% of all the "unit factors" to vote in favor of the resolution. The change must then be registered against the condominium plan at the Land Titles Office, in order to be enforceable. The current bylaws often require a specific number of days allowance for owners to consider the Resolution before voting. Be sure to comply with this bylaws when proceeding to change or amend the clauses.

Your question regarding weather the board can or cannot change the bylaws to say NO PETS. The Board does not have the power to change , replace or amend bylaws without a Special Resolution of the Owners being properly passed. Once the 75% criteria has been met the Board then must proceed to register the change, replacement or amendment with the local Land Titles Office.

The argument for pets impacting property values has been going on for over 30 years and never has been proven to be a factor. There are always an abundance of people who love pets and those who do not. This is one of the toughest issues in condominium and for those condo's that are trying to find a happy medium in this matter it is often best to bring in a professional mediator who has experience in condominium matters.

With regards to the concern over carrying pets when on the common property (the stairwells in your complex). This is a typical bylaws in south Alberta. The idea behind this is that people do not or cannot carry big dogs. This bylaws is a polite way of regulating the size of dogs without getting into weight and height restriction criteria. With regard to your concern over liability if an owner is injured while carrying their pet; if this is a breach of the bylaws the condominium is not liable. In fact the condominium may have the power to fine the owner for being in breach of this bylaw.

The bottom line is that the bylaws of a condominium regulate the ability to have or not have pets within the property boundaries. The variances in the wording for pet bylaws is as vast as the number of condominiums that exist. I would suggest first identifying the concerns of those owners who do not want pets and then look at ways to solve these concerns. It is know that buildings with dogs have fewer break-ins and it is also know that for people with allergies dogs can create real health issues as their dander circulates in the air system. It is a two sided argument that bears no simple answer. Compromise is all that can resolve such a matter. Unfortunately if the majority are of the conviction that they prefer a no-pet condominium, then a property passed Special Resolution could result in a No Pet bylaw. Be sure that any amendment to the existing bylaws includes wording that clearly allows those with approved pets before the bylaw was amended to continue to keep their pet. It is important that qualified professionals are hired to assist in the amendment of bylaws process.

Wishing you success with this matter. Thank you for contacting Betty's Condo Owners Club.

Cheers!