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