CONDO Business - April 2022

Canada’s Most Widely Read Condominium Magazine 

April/May 2022 • Vol. 37 #1 

UNDERFUNDED 

Many condos have not saved enough for future expected 

payments or unexpected repairs, study warns 

PART OF THE 

PM#40063056+Spring Maintenance 

Getting ahead of water leaks, 

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COMMITTED TO EXCELLENCE SINCE 1986

Contents 

16 

FINANCE 

10 Inflation Impacts Condo 

Budgeting 

By Shlomo Sharon 

LEGAL 

16 Legal Cases Spotlight 

Maintenance and Repair 

Obligations 

By Sonja Hodis 

GOVERNANCE 

28 E-Voting Ethics Under 

Scrutiny 

By Rebecca Melnyk 

34 

SPRING MAINTENANCE 

12 Getting Ahead Of The Leak 

By Ayman Ashebir 

20 Not Enough 

By Rebecca Melnyk 

32 Audit Flags Poor Waste 

Diversion Efforts 

IN EVERY ISSUE 

6 Editor's Note 

8 Ask the Expert 

38 New & Notable 

DESIGN 

34 The Bright Idea Behind Lilies 

Adding summer interest to condo 

landscapes 

By Kent Ford 

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EDITOR’S NOTE 

Saving up for 

the unexpected 

More than two years into the 

pandemic, we’re still canceling birthday parties, 

vacations, family reunions and in-person meetings due 

to cases of COVID. But if there is one thing many of us have 

learned since 2020, it is how to deal with disappointment and expect 

the unexpected. 

As "the unexpected" has us reshuffling personal plans, condo 

buildings are also experiencing unanticipated challenges. 

The rising cost of goods and services is one issue creating 

uncertainty around condo reserve funds. As new research by the 

Canadian Institute of Actuaries finds, newer condos are not setting 

enough money aside for future expected payments or unexpected repairs, which will become 

pricier over time. The result is that many condos will face large lump-sum payments to cover future 

shortfalls and dramatically increasing annual fees. 

In our spring maintenance issue, we take a deeper look at this on page 20. Even small details 

within the changing condo landscape that could seem small will inevitably create expenses in the 

long-term if not managed properly. 

We also bring forth articles on getting ahead of water damage, what recent legal cases mean for 

maintenance and repair obligations, and inflation impacts on condo budgets. 

As the Ministry of Government and Consumer Services consults on permanent changes to the 

Condo Act regarding virtual meetings and electronic voting, an article on page 28, rounds up some 

industry thoughts on the ethical concerns of digital voting platforms amidst news that the technology 

can allow people to access owners' votes ahead of a meeting. Ensuring fair elections will be a key 

consideration moving forward. 

There's more, so please enjoy the magazine, and if you would like to comment or contribute to a 

future issue, feel free to reach out. With spring in full swing, we wish you brighter days ahead. 

Rebecca Melnyk 

Editor, CondoBusiness 

rebeccam@mediaedge.ca 

JTB_Condo_May_2020_FINAL.pdf 1 2020-06-16 12:16 PM 

Associate Publisher 

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Editor 

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Contributing Writers 

Ayman Ashebir, Kent Ford, Sonja Hodis, Claudia 

Pedrero, Shlomo Sharon 

Digital Media Director 

Steven Chester 

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A condo in Toronto recently made the news 

after levying a $14-million special assessment. 

The corporation gave owners 15 days to pay for repairs, ranging from $30,000 to 

$42,500 per unit. Claudia Pedrero, associate in the real estate group at Robins Appleby LLP, 

explains how other condo corporations can avoid this predicament. 

York Condominium Corporation (YCC) 

No. 82, which operates a 10-storey, 

321-unit building in the Jane and Finch 

neighbourhood, is facing the proverbial 

‘perfect storm’ in condo operations, 

maintenance, and governance, with unit 

owners footing the bill. 

In September 2021, YCC No. 82 sent 

letters to all owners announcing an 

$11,235,000 special assessment. This 

translated to $30,000 to $42,500 per unit, 

depending on unit size. 

After the special assessment was issued, 

a unit owner brought a court application 

seeking an order to compel YCC No. 82 to 

hold a requisition meeting to remove the 

condominium’s board of directors. 

The decision from Justice William D. Black 

of the Ontario Superior Court of Justice, 

released mid-January 2022, goes to great 

length to describe the state of the building 

and the many difficulties faced by the 

condominium. 

The engineering report described by 

the court illustrates a building fallen into a 

state of significant disrepair. A recent 

engineering report advised immediately 

installing shoring to maintain the structural 

integrity of the building. There are also 

defects in the underground parking garage 

8 CONDOBUSINESS | Part of the REMI Network

ASK THE EXPERT 

roof and cracks in the foundation. The 

report describes loose concrete on many 

balconies and recommends that residents 

and children avoid them. The City of Toronto 

has commenced proceedings against the 

condominium for fire code violations. 

The estimated cost of repairs to the 

building within the next year alone would 

exceed $14 million. 

But YCC No. 82 couldn’t pay. According 

to the financial material presented to the 

court, YCC No. 82 had only $1.75 in its 

reserve fund and just over $5,000 in its 

operating fund. It pays $80,000 a month 

in interest to service existing debts for 

repairs. These debts relay a history of 

difficulty. The court noted that the loans 

were entered into when the condominium 

was facing insolvency and put under the 

control of a court-ordered administrator. 

Like all condo corporations, YCC No. 82 

is overseen by a group of owners elected 

to a board of directors. Under Ontario’s 

Condominium Act, the board has the power 

to require that all owners pay for common 

expenses and can levy a special assessment 

if the condo does not have an adequate 

reserve fund to cover the cost of repairs or 

unexpected projects. 

Unit owners who fail to pay a special 

assessment run the risk of a lien being 

placed on their unit. If the lien is not 

discharged, the condominium can sell the 

unit to recover the amount owing. 

to be in the fund to ensure the condominium 

can afford necessary repairs in the future. 

Raise Common Expense Fees When 

Needed 

Older buildings require more maintenance 

and repair as they age. In condominiums, 

these costs are borne by unit owners 

through their monthly common expenses 

and contributions to the reserve fund. 

Increasing monthly expenses is unpopular 

among unit owners and condominium 

boards may be hesitant to do so, but 

inevitably someone needs to pay for the 

repairs. A healthier reserve fund makes 

a condominium better equipped to 

respond when faced with major repairs or 

unexpected expenses. 1 

Claudia Pedrero is an associate in the 

Real Estate Group at Robins Appleby 

LLP, where she practices in the areas of 

affordable housing, condominium and real 

estate development. 

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How can other condo corporations avoid 

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directors should have some knowledge of 

condominium governance and funding while 

being committed to staying on top of their 

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Follow the Advice of Reserve Fund 

Studies 

Condominium boards and management 

should follow the advice of each reserve 

fund study to determine how much needs 

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INFLATION IMPACTS CONDO BUDGETING 

If you’ve shopped at the local 

supermarket recently, you probably 

noticed items are more expensive than they were not too 

long ago. Or maybe you’ve ordered an item online for next day delivery, only to be 

told it would take much longer to arrive and at a higher cost than expected. Welcome 

to our new and unfortunate reality. 

BY SHLOMO SHARON 

This phenomenon of price increases and 

shortage of items is also affecting every 

aspect of daily life, including common 

element fees, which are paid each 

and every month to both new and old 

condominium corporations. 

A short time ago, corporations were 

preparing their yearly condo budgets, relying on 

historical actual expenses, which were almost 

in line with past expenses. After taking into 

consideration a reasonable inflation rate, such 

as C.P. I., a new budget was created. 

As well, the reserve fund contribution, 

representing one of the largest expense items 

in the budget, was based on the reserve 

fund study, prepared by the corporation’s 

engineer. This deals with the major repairs 

and replacement and is updated every three 

years, based on the costs available to the 

engineer and taking the inflation rate into 

consideration. However, the corporation’s 

engineer will have to update the study in 

order to reflect the new reality of costs, of 

which there are various contributing factors. 

The pandemic has heightened 

the cost and shortage of labour, in 

turn impacting delivery and cost of 

materials, as well as other company 

expenses like wages and salaries. 

Boards and management companies 

are now required to reduce and control 

the impact of these costs on common 

element fees. 

To start, they should identify what expenses 

they can control, while at the same time, 

recognizing costs such as insurance which 


FINANCE 

also will be affected because the insurance 

companies will take expenses into 

consideration when determining the premium 

and the cost of replacement. Utility 

prices are expenses which we cannot control 

and, therefore, will be an issue for the 

condo corporation to deal with. 

The board of directors, together 

with its management company, should 

explore all the possibilities, for instance, 

LED retrofitting of the light fixtures and 

installing energy efficient equipment. In 

doing so, they should inquire about any 

available government incentives and if it 

would be worthwhile and beneficial to the 

condo corporation to take advantage of 

them. 

As well, the board should review all its 

existing contracts, noting the expiration 

day and the cost for each service. The 

corporation should then enter into 

negotiations with the contractors to see 

what possibilities there are to get the 

best price possible and what is currently 

available, while exploring if the contract 

can be extended for a longer period in 

exchange for a better price. 

In doing so, the corporation should 

also consider if the contract still has a 

few years left, to blend the past contract 

price with the current contract price. To 

be in a position to negotiate any price, it 

may also require the corporation to obtain 

new quotes to better understand the new 

reality costs. 

With the shortage of labour comes 

an increase in the cost of labour. This 

new reality might affect almost every 

aspect of the operating expense. Condo 

corporations that employ a superintendent 

should see if certain maintenance can be 

done in-house or consider the possibility 

of hiring an in-house maintenance worker 

(if you find one). Of course, a corporation 

would have to consider if the liability of 

hiring an employee outweighs costs of 

outsourcing repairs. 

To avoid unnecessary expenses that 

will come at a higher cost, it is ever 

more important to maintain the various 

physical aspects of the building due to 

the inflationary factors of the operating 

expense. This new reality requires 

attention to details and competence to 

work through this difficult time. 1 

Building Science & 

Structural Engineers 

Building Structure 

Parking Structures 

Building Envelope 

Reserve Fund Studies 

Performance Audits 

Pearl Block - 2910 Shelbourne Street | Victoria 

Shlomo Sharon is the CEO of Taft 

Management Inc. 

rjc.ca 


MANAGEMENT 

GETTING AHEAD OF THE LEAK 

As the rapid growth of 

condominium living in 

Canada continues, corporations 

and their suite owners need to be on alert for an omnipresent danger: 

water damage. 

BY AYMAN ASHEBIR 


MAINTENANCE 

“Unfortunately, while the damages can be 

catastrophic, adequate in-suite care remains low.” 

According to Statistics Canada, the share of 

condominiums among newly built dwellings 

has increased five-fold since 1980 with as 

much as 30 per cent of residents in cities like 

Vancouver and Toronto residing in condos 

by 2016. For condos housing hundreds of 

residents, easily addressable leaks of some 

form can occur at any given moment, 

whether from a leaky faucet, drain, or 

appliance. As buildings age, however, there 

is increased risk of more significant leaks and 

floods that can result in considerable water 

damage. 

A KPMG study for the Canadian 

Institute of Actuaries highlights two 

primary areas of concern related to the 

increase of property damage claims: the 

rise of people living in condominiums 

and aging infrastructure. Many condo 

residents reside in late-twentieth century 

buildings that grapple with underlying 

plumbing and mechanical systems 

reaching or surpassing their estimated 

useful life. 

The Autorité des marchés financiers in 

Quebec identified water damage as the 

leading cause of insurance claims, while 

internal data from Aviva Insurance found 

water damage claims doubled over a tenyear 

period ending in 2012. 

While residential home and 

commercial owners reported 40 per 

cent of insurance claims being related 

to water damage, the share for condos 

is between 60 per cent and 90 per cent, 

according to KPMG’s study. Unlike in 

single dwellings where the impact is 

limited to that home, leaks in condos 

DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 2:44 PM 

can become more substantial and 

widespread. 

Sprawling Water Damage 

Even mid-size condos often have more 

than 100 suites, all with their own set of 

appliances, plumbing fixtures, and HVAC 

systems. A broken washer, or leak in the 

fan coil or vertical heat pump of a suite on 

the ninth floor, can impact suites several 

floors below. 

Recent news reports of sprawling water 

damage in Canadian condos have illuminated 

troubling causes such as faulty gaskets, 

frozen pipes and plumbing failures, all of 

which impacted multiple units. 

Just as condo corporations and suite 

owners need to cautiously maintain 

their plumbing and appliances, proactive 

C 

50 

M 

20 

18 

Y 

CM 

MY 

CY 

CMY 

K 


MAINTENANCE 

“Many suite owners are unaware of simple, 

yet vital, safety tips like keeping their HVAC systems 

running while on extended absences.” 

14 CONDOBUSINESS | Part of the REMI Network 

maintenance of in-suite HVAC systems 

is also critical. The Canadian Institute of 

Actuaries, Chubb Homeowners Study, 

and the Privilege Underwriters Reciprocal 

Exchange all identify in-suite HVAC 

systems as a leading area of concern for 

water damage. Looking at fan coils, for 

example, here are some of the ways leaks 

and floods can occur: 

1 

Over time, drain pans rust and 

corrode, potentially creating holes 

for water to escape. 

2 

Deteriorating insulation within the 

fan coil cabinet can lead to debris 

falling into and potentially clogging the 

drain pan, drain hose, and condensate 

lines. 

3 

When turned off for extended 

periods of time during the winter, 

the pipes and coils can freeze and burst, 

leading to significant water damage. 

4 

As risers expand and shrink 

throughout the year, considerable 

strain is placed on the valves which can 

lead to leaks and cracks over time. 

Water Damage Claims Climb 

As water damage claims rise 

exponentially, insurers are taking note. 

The BC Financial Services Authority 

reports that in 2020, insurance premiums 

for strata (condominium) corporations in 

the province increased by about 40 per 

cent while a Deloitte report on B.C.’s 

insurance market found water damage 

deductibles increased by 135 per cent. 

According to a 2021 Home Insurance 

Price Index published by LowestRates.ca, 

condo insurance rates for suite owners 

also increased, with year-over-year 

increases in Ontario, Alberta, and B.C. of

MAINTENANCE 

8 per cent, 23 per cent, and 34 per cent 

respectively, all while residential home 

insurance rates decreased. 

To get water damage claims and rising 

insurance premiums back under control, 

corporations and suite owners need to take 

preventative measures. Unfortunately, while 

the damages can be catastrophic, adequate 

in-suite care remains low. 

A 2019 Chubb Homeowners Risk 

Survey found that only 20 per cent of 

homeowners completed even a single 

water-related risk mitigation activity, 

and only 19 per cent completed regular 

inspections of their HVAC systems. In 

truth, this is more an issue of awareness 

rather than purposeful neglect. A lack 

of knowledge was among the principal 

reasons for inattentiveness, highlighting 

the need for increased guidance so 

corporations and suite owners can use 

preventative measures to strengthen their 

protection. 

In aging buildings where a complete 

retrofit is the best course of action, owners 

should be alerted to the risks of inaction 

before it’s too late. 

Ultimately, while the risk of water 

damage is pervasive, so too are the 

preventative solutions. And through 

increased knowledge, shared community 

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awareness and due diligence, many of 

the risk factors of water damage can be 

avoided. 1 

Ayman Ashebir is currently the director of 

sales at Unilux CRFC Corporation. He can 

be reached at ayman@uniluxcrfc.com / 

Company Website: www.uniluxcrfc.com 

Educating Communities About Risks 

Evidently, education is the key to getting 

ahead of the curve. In addition to actively 

maintaining plumbing and mechanical 

systems under its purview, corporations 

should take an active approach to educating 

their community on the need for each suite 

owner to properly maintain their appliances, 

plumbing, and in-suite HVAC systems. 

Many suite owners are unaware of 

simple, yet vital, safety tips like keeping 

their HVAC systems running while on 

extended absences. Corporations can share 

knowledge and best practices through notice 

boards or interactive displays, newsletters, 

general meetings, and welcome packets 

provided to new owners. 

Corporations should also raise awareness 

for necessary maintenance, repair, and 

retrofit work where needed. Semi-annual 

maintenance services for fan coils often 

include the removal of debris and water tests 

for clogs and leaks. Modern components like 

flood sensors and automatic shut-offs can 

be added to older plumbing and mechanical 

systems as helpful safeguards. 

Corporations can engage the original 

equipment manufacturer to provide condition 

assessments of aging equipment and 

estimate its remaining useful life. 

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LEGAL CASES SPOTLIGHT MAINTENANCE 

AND REPAIR OBLIGATIONS 

There is no doubt that a 

condominium corporation has maintenance 

and repair obligations; however, the extent of those obligations is often 

debated and results in a court dispute to be decided by a judge. 

BY SONJA HODIS 

Maintenance and repair obligations of both 

owners and condo corporations are defined 

in the Condominium Act, which sets out 

the minimum default obligations. These 

default obligations can be redefined by a 

condominium’s declaration. 

As such, when examining the extent of 

the corporation’s obligations, in terms of 

maintenance and repair, one must look 

to sections 89 to 92 of the Act and then 

your specific declaration. However, to fully 

understand the repair and maintenance 

obligations of a corporation it is always 

helpful to look to the courts as well, to see 

how they have interpreted and defined 

these obligations. 

Here are three cases over the last year 

which shed some light on what condos 

should and should not be doing to fulfill 

their maintenance and repair obligations. 

The Court in Berman v. YCC No. 99 

(Oct 2021) dealt with the issue of the 

reasonable expectation of owners regarding 

maintenance and repair of common 


LEGAL 

elements. In this case, the issue was 

the replacement of a bedroom window. 

The owner, Mr. Berman, wanted his 

bedroom window replaced as he felt it 

was too drafty. He expected that it would 

be replaced when he said it needed 

replacement. The condo did not agree 

that the window needed immediate 

replacement as suggested by the owner 

but had the window on its list of windows 

to replace in the next year. 

The condo was a 160-unit condo. It 

was 50 years old and everyone wanted 

new windows. The condo was replacing 

windows as needed and replaced them 

in priority depending on the amount of 

age and wear. The condo had a window 

replacement policy. Mr. Berman’s 

window was scheduled to be replaced 

in 2021. Mr. Berman began his court 

application for oppression under s. 135 

of the Condo Act in November 2020. 

The window was replaced in March 

2021 as originally promised. Despite this, 

Mr. Berman continued his court action 

for damages as the temperature in his 

bedroom was a few degrees colder than 

the rest of his unit. The court dismissed 

the owner’s application and held that an 

owner cannot expect more from the board 

other than for the board to manage the 

condo honestly, in good faith and with 

due diligence as required of them under 

s. 37 of the Act. The court found that the 

condo had an economically responsible 

and sensible window replacement 

policy. It inspected the owner’s window 

multiple times over the years. It did not 

ignore his unit. It replaced a bathroom 

window when needed. It re-caulked when 

needed. The court found that the owner 

could not show that the condo behaved 

unreasonably or oppressively. There 

was no evidence that the window failed 

or needed to be replaced before it was 

replaced. The condo met their obligations 

to repair and maintain the common 

elements. 

An earlier case from April 2021, which 

was referenced in the Berman case, 

set out the factors a court will take into 

account when assessing the corporation’s 

duty to repair. These factors are: 

• Relationship between the condo 

corporation and the unit owners 

• Opinion of the unit owners 

• Wording of their contractual obligations 

• Nature of the condo development 

• Objective standards of quality and 

workmanship 

• Replacement cost of the facility to be 

repaired 

• Economic and budgetary constraints 

• Need for repairs 

• Nature of the work required to effect 

the repairs 

Experience 

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9/29/17 10:20 AM

LEGAL 

• Timetable for effecting the repairs 

• Benefit that may be acquired if the repairs 

were done compared to the detriment that 

be occasioned by the failure to undertake 

the repairs 

The court emphasized that the standard a 

corporation must meet will be fact specific 

but it will not be perfection. The standard is 

one of reasonableness and given that it is fact 

specific, it will be a flexible test taking into 

account specific circumstances. The court 

noted, in the above case, that the COVID-19 

pandemic affected the progress of anything 

in Ontario and as such a condominium 

corporation could not be faulted for the 

delay in implementing its plans to repair the 

common elements of the building. The court 

noted that the condo must balance the private 

interests of individual unit owners with the 

communal right of all and some deference 

should be afforded to a condo’s repair and 

maintenance obligations. The court found 

that the condo was not slow to act and their 

actions were not unreasonable. 

A very recent case regarding winter 

maintenance, Musa v. Carleton Condominium 

Corporation No. 255 (Feb 2022) addressed 

the importance of following industry 

standards. In this case, the court was dealing 

with a negligence claim for a slip and fall in a 

condo’s parking lot. The condo corporation 

and the snow removal contractor were sued. 

The contractor acknowledged that all the 

condo’s obligations with respect to winter 

maintenance was completely delegated to it 

by contract and as such for the purposes of 

the court action the contractor was deemed 

the “occupier” under the Occupier’s Liability 

Act and liable for damages. 

The issue in this case came down to the 

contractor’s delay in spreading salt which 

was found to be unreasonable as it was 

not in accordance with industry standards. 

The expert who testified referenced two 

specific industry standards. The first being 

the “Best Management Practices for Salt 

Use, Technical Bulletin No. 6,” Canadian 

Parking Association, CPA, 2006 and the 

second being the “Best Practices Road Salt 

Management, Salt Use on Private Road, 

Parking Lots and Walkways,” Transportation 

Association of Canada, April 2013. 2. The 

court found that the contractor did not follow 

these standards and as such his actions were 

not reasonable. 

These cases illustrate three very important lessons for condo 

directors, owners, property managers and contractors. 

1. As your buildings start to age and major components (such as windows) require 

replacement but the cost of replacing them all at once is not feasible, develop an 

“economically responsible and sensible” policy for replacement of those items as the 

condo did in Berman and make sure you follow the policy. The court in Berman placed 

a great deal of weight on the policy that the board developed and followed when 

finding that the condo did not breach any duties. Rely on professionals to advise you as 

to what factors should be taken into account when determining what is a priority. 

2. Take note that the court is not going to hold condos to the standard of perfection. 

There are a variety of factors, as described above, that the court will look at when 

assessing whether or not the condo breached its duty to maintain and repair. 

The test is fluid and very fact specific. If there are extenuating circumstances 

that are delaying repairs and maintenance (such as the COVID pandemic, supply 

chain issues, availability of contractors, etc.), make sure you properly document 

these extenuating circumstances and consider getting letters from contractors 

and suppliers to confirm that these are reasons why things are delayed. You 

never know when those letters will come in handy to show that the specific 

circumstances the condo was dealing with was out of their control. These letters 

could provide useful evidence in case an owner commences a court application 

complaining that the condo is not repairing things quickly enough. 

3. The importance of carefully drafted written contracts with contractors, especially 

in terms of winter maintenance but definitely applicable to all types of contracts, 

cannot be overstated. If you are expecting the contractor to assume any type 

of legal liability that would normally fall on the condo, be sure to include clear 

language in your written contracts stipulating this and make sure you are not 

taking on any of the duties or work that the contractor is being contracted to do 

and you are not directing the contractor on how to do the work. 

In terms of winter maintenance contracts, from a condo’s perspective, it is important 

that the entire obligation to maintain the roads and walkways is delegated to the 

contractor and the condo does none of this work and does not tell the contractor 

how to do this work. The contractor should not be taking any direction from the 

condominium or its management. The potential short-term savings of doing some of 

the work yourselves and leaving other parts to the contractor does not help the 

condo in the long run when a condo is facing a negligence claim for slip and falls. 

Neither does telling the contractor how they should do their job. 

If you are trying to limit your liability, assign the entire maintenance obligations 

to the contractor under a clearly written contract with properly drafted 

indemnification provisions as the condo did in the Musa case. In addition, it 

would be a good idea to ask your winter maintenance contractors if they follow 

the most current industry standards and incorporate these standards into your 

written contracts as the standard you are expecting the contractor to meet. 1 

Sonja Hodis is a condominium lawyer based in Barrie who practices condominium law in 

Ontario. She advises condominium boards and owners on their rights and responsibilities 

under the Condominium Act, 1998 and other legislation that affects condominiums and 

represents her clients at all levels of court, various tribunals and in mediation/arbitration 

proceedings. Sonja can be reached at (705) 737-4403, sonja@hodislaw.com or you can visit 

her website at www.hodislaw.com. 


SATURDAY, MAY 28, 2022 

Register at cci.ca 

An event not to be missed by Condo Board Members, Owners, and Industry Suppliers! 


NOT 

ENOUGH 

In an overheated housing market, condos are 

comparatively less expensive than single-family 

BY REBECCA MELNYK 

homes. But deferred contributions to reserve funds 

are casting a shadow on their true market value and creating an uncertain 

financial future for owners. 



FEATURE 

The growing crop of condo owners across Canada will likely encounter 

huge annual fee increases and lump-sum payments due to low reserve fund 

contributions, authors of a new research report are warning. 

As detailed in the Canadian Institute of Actuaries’ 140-page paper, 

Longevity of Infrastructure – Reserving and Risk Management in 

Condo Maintenance in Canada, owners will ultimately absorb deferred 

contributions left behind by their unit-owning predecessors who rashly 

agreed to initial “artificially low” fees, particularly in condos constructed 

since 2000. In newer condos, once a reserve fund study is performed 

and unforeseen repairs pop up, annual increases will likely skyrocket 

compared to older buildings. 

Data compiled from about 300 reserve fund studies from clients 

of engineering firm McIntosh Perry was examined through the lens 

of actuarial science. A mathematical stochastic model was created to 

assess the viability of reserve funds and understand how they evolve 

through time in existing condos, both high-rise and townhomes. 

Corporations must reasonably fund these reserve accounts used for 

the major repairs and replacements of common elements, the cost of 

which is also rising higher than the rate of inflation, making it harder for 

boards to predict required funds 10 to 60 years down the road. 

Owners will need more time to pay into the reserve account. As the 

analysis found, the typical 30-year coverage period of a reserve fund 

study isn’t enough. Sixty years would be more appropriate, as some 

common elements have a longer life cycle. 

Authors Jean-Sébastien Côté, Fellow, Canadian Institute of Actuaries 

and Jon Juffs, Director, Facility Assessment and Restoration, at 

McIntosh Perry, propose solutions that boards should consider to 

protect their investments. 

“Reserve funds are often looked upon as a necessary evil of 

condominium living, but they should be looked upon as a necessary 

investment in your home,”says Juffs. “A well-kept building will retain its 

market value.” 

Rising Expenditure Costs Creating More Guesswork 

The cost of goods and services used within condos—from building 

system components to contractors’ services—tend to be higher than 

inflation or the average salary. 

As displayed in the report, the inflationary price of common 

elements between 2001 and 2020 neared to almost 90 per cent due to 

variables like pricier materials (or lack thereof) and labour cost increases. 

Expenditure costs come in all forms. Sealant materials are just one 

example. As Juffs explains, caulking may contain silicone or oil industrydependent 

polyurethane materials, which are rising dramatically in 

price. Silicone has doubled over the past three months. 

“People may think it only costs a couple hundred dollars to seal joints 

around a window, but now it costs $400 and next year it will be $800,” 

he says. “As fossil fuels disappear from the production line, we’re going 

to have to come up with new and creative ways to seal joints.” 

On a larger scale, sand used for glass is becoming more difficult to 

source, and glass manufacturers are looking for new ways to use less 

of it. This change in glass performance will be challenging to evaluate, 

says Juffs. “Look at every new building; they’re nearly completely 

glass. They are in high demand and they’ve got a dwindling supply of 

raw materials.” 

The need for specialized equipment, primarily in downtown cores, 

is yet another concerning impact on future maintenance costs. 

Dismantling a mechanical system and moving components down 

an elevator takes substantial labour, as does steering them down the 

exterior side of a condo. 

“Most buildings don’t have those original construction fasteners there 

anymore because they’re covered up in wall materials,” says Juffs. 

“These taller buildings are going to become an interesting challenge. To 

change out a $50,000 to $60,000 make-up air unit you might end up 

spending $100,000 to $150,000 in excess equipment to get to it and 

bring it down.” 

A financial cushion for emergencies and unexpected market changes 

would be above what is required by a reserve fund study. Taking a risk 

management approach to reserve funds is what more condos should 

do, says Côté. Similar to the field of retirement planning in which he 

works as an actuary, problems arise when it comes to accumulating 

capital in condo reserves. 

“Doing a budget for one year is easy. 

Managing assets over a long period of time, 

over decades; it takes dedication and knowledge and it 

takes the right people to tell you you’re wrong about the 

level of contribution you think is good.” 


FEATURE 

“Not many people save much for retirement and when they get 

there, they deplete their fund quite quickly at the beginning and are left 

with RPP and OAS,” he says. “Doing a budget for one year is easy. 

Managing assets over a long period of time, over decades; it takes 

dedication and knowledge and it takes the right people to tell you you’re 

wrong about the level of contribution you think is good.” 

Condo Directors Unprepared To Manage Assets Over Time 

Condo corporations may house low pools of experienced owners or 

reluctant volunteers who need nudging to the board table. Owners who 

do find themselves in a governing position will need to be cognizant of 

reserve funds. 

“This is a key point of education that is going to become more 

necessary as time goes on and as people continue to age in place,” 

says Juffs. “Most people who are retiring in their home don’t really 

want to be involved in going back to school again.” 

In Quebec, like other locations across Canada, Côté explains owners 

aren’t required to take any courses. “If they are serious about their job, 

they will obtain education, but it’s not easily available,” he says. “There 

is a lack of finding proper ways to manage a condo and get information 

on how to apply some rules into the condominium.” 

As it stands, Ontario is the only province that legislated 

mandatory director training through the Condominium Authority 

of Ontario. Even so, anyone who has fulfilled that online course 

likely became swiftly certified, without the chance to dig deeply 

into reserve fund studies. 

In her value-for-money audit on condominium oversight in 2020, 

Ontario Auditor General Bonnie Lysyk flagged serious flaws in director 

education. At the time, the audit discovered more than 6,000 ineligible 

condo directors, who did not complete the designated training, 

continue to serve on boards. 

Directors are also completing the course without reading the training 

materials. “If directors do not spend the time needed to properly 

review training content and gain an understanding of it to manage 

the obligations and finances of the condo corporation, they might not 

possess the necessary knowledge to fulfill their duties and obligations,” 

the audit stated. 

“Most people need both the interaction of other students learning 

and instructors talking to them and engaging in the situation,” 

adds Juffs, who champions in-person, continuous education like 

associations offer, depending on the locale. “Have meaningful 

conversations about what applies and doesn’t. Interactive back-andforth 

discourse with experts at the table helps an awful lot.” 

Ongoing training is key in an ever-changing industry that must also 

keep up with the evolving needs of residents. For instance, forthcoming 

legislation related to the Accessibility for Ontarians with Disabilities 

Act, which will make existing and new buildings more accessible and 

inclusive by 2025, is another impending cost that might not be on 

a corporation’s radar. The law will soon dictate that walk-up condos 

accommodate persons with disabilities. 

“I think vertical transportation of people is going to be a big 

concern,” says Juffs. “The Ontario Building Code is making a bunch of 

“I think vertical transportation of people is 

going to be a big concern.”

FEATURE 

“Reserve funds are often looked upon as a 

necessary evil of condominium living, but they should be 

looked upon as a necessary investment in your home.” 

changes right now for the next edition of the Code that will affect new 

construction and major improvements, but if these buildings are left the 

way they are and people are trying to age in place, those condos will be 

facing human rights issues.” 

Legislation For Greater Data Transparency 

There is a lack of data related to reserve funds. Increasing the 

availability and collection of this data would provide greater 

transparency for potential purchasers and help protect the value 

of condo infrastructure, the report concludes. This could come 

by way of a standardized form, administered by governments to 

gather more relevant data. 

Ontario is currently inundated with forms, from annual reports 

to new owner information certificates. Juffs isn’t so sure the 

information on those forms is of much value and believes a 

repository of data is the way to go. 

As he explains, this would be aggregated public information, 

administered by someone with authority, but without direct 

interest in the data. It wouldn’t be specific to a property, but 

rather a location. 

A potential purchaser could gauge their ability to afford 

typical common expense fees for a specific area without realtor 

pressure weighing on the decision. They’d be able to compare 

and ask better informed questions to condo corporations about 

why their contributions are too high or too low. 

“Eventually, once the data set is robust and readily available, 

people will start to come up with all sorts of ways to compare,” 

says Juffs. If pools are high on the list, a buyer could understand 

what kind of condo fees are associated with those types of 

buildings. 

Reviewing Minimum Annual Contribution and Reserve Fund 

Balance 

The strength of legislative requirements related to reserve funds 

varies across Canada. The report evaluated provinces and territories 

based on a number of contributing factors, leaving out Prince Edward 

Island and Nunavut, which are devoid of any requirements. 

British Columbia and Saskatchewan sit at the bottom, but even in 

places like Ontario and New Brunswick, which garnered the most 

points, there is room for improvement. 

Sustaining a minimum yearly contribution that is reasonable and 

a fund balance is just one element in all this. It’s advised the fund 

balance doesn’t dip below the amount of deductible for property 

damage on the corporation’s insurance policy. 

The minimum annual contribution should be prescribed through 

an up-to-date reserve fund study, with a legally mandated review 

and update every three years. In absence of the study, the ‘bare 

minimum’ should be 1 per cent of the full reconstruction cost of the 

condo, the report emphasizes. 

Provinces vary in this regard. Quebec determined that 0.5 per 

cent of the replacement value of the building is the right amount to 

contribute. 

“The Condo Act in Ontario still allows developers to set up the initial 

contributions at 10 per cent of operating, which I think is absolutely the 

worst model,” says Juffs. “The right contribution is the one where you 

have enough money to pay for the future repair or replacement needs, 

but not so much, as this only comes back to the homeowners if the 

condo is dissolved.” 

He estimates this to be in the $250 to $275 per unit per month 

range, although he feels that’s likely too high for most corporations, 

and spot on or a little low for others, and also depending on variables 

like pools and parking garages. 

To grasp the urgency of reserve funds, all one needs to do is look 

at the repair oversights that surfaced from the condo collapse in 

Surfside, Florida last summer. 

“We learn a lot from tragedy,” says Juffs. “What I would stress to 

Canadian condo corporations is don’t bury your head in the sand. Take 

the information, prioritize the work that is being identified—life safety 

is the priority—followed by functional use of the building and technical 

obsolescence.” 

The concept of risk management throughout the report is what 

the authors hope their readers will grasp, as it identifies a low risk of 

concern in the immediate term, but impending shortfalls that threaten 

affordability. 

“Is the need to contribute to a fund and afford common element 

repairs going to stop you from living in condos? No,” says Juffs. “But 

you should be cognizant and aware of the ever increasing risk of 

those costs going up dramatically, so you can manage your 

own personal circumstances and make sure you’re in the 

right place at the right time.” 1 

The full report, Longevity of Infrastructure – Reserving and Risk Management in Condo Maintenance in Canada, is 

available at: https://www.cia-ica.ca/research/research-projects 


PM#40063056 


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their premises reasonably safe for those who enter it. But what about when an individual 

commits assault while at one of these meetings? Should the occupier or organizer of the 

board meeting be liable for failing to ensure the safety and security of those lawfully on the 

premises? 

14 CONDOBUSINESS | Part of the REMI Network 

PART OF THE 


BY DAVID ELMALEH 

AND GABRIELA CARACAS 

PART OF THE 


In Omotayo v. Da Costa, 2018, the defendant 

occupier, Metro Toronto Condominium 

Corporation 1292 (MTCC 1292), was 

successful in dismissing the plaintiff’s 

claim and the assailant’s crossclaim 

when a member in attendance at a 

condominium board meeting struck 

another meeting attendee with a chair. 

Justice Nishikawa found that the duty 

the condominium corporation owed to 

the plaintiff did not include preventing 

an assault that occurred during their 

condominium board meeting. 

Facts of the case 

The plaintiff, Jacqueline Omotayo, 

was a resident and former chair of the 

condominium corporation. The defendant, 

Jose Da Costa, was also a resident and 

former president of the condominium 

corporation. An emergency board meeting 

was held on Oct. 4, 2011, to discuss the 

future organization of the board as Ms. 

Omotayo had recently been removed 

from her position as chair and Mr. Da 

Canadian Publications Mail Product Sales Agreement No. 40063056 

Costa advised that he no longer wished 

to occupy his role as president. The 

emergency meeting took place at the 

defendant’s (MTCC 1292’s) premises. 

At the emergency meeting, the plaintiff 

and Mr. Da Costa entered into a heated 

argument, which led Mr. Da Costa to 

“lose it” and strike the plaintiff on the 

head with a chair. Mr. Da Costa was 

charged by the police and received a 

conditional discharge for assault with a 

weapon. 

> SOCIAL MEDIA COLUMN 

Sponsored by MediaEdge 

Want to stand out 

on social media? 

Don’t fake it 

Let’s face it, we all want our businesses to 

be social media rock stars, and we know 

it ain’t easy. 

It’s becoming more prevalent that some of 

the most popular social media platforms have 

The plaintiffiff commenced a civil action been infiltrated by those who game the system. 

against Mr. Da Costa for his use of force 

This includes those that buy fake followers and 

as well as MTCC 1292 for failing to ensure 

“likes” in order to create the illusion that their 

her safety and failing to employ security social media profile is more popular than it is. 

measures at board meetings. MTCC 1292 These fake followers are predominantly bots – 

brought a motion for summary judgment accounts run by software designed to look and 

act like real people. 

to dismiss the plaintiff’s claim against it 

which was only opposed 

by Mr. Da Costa New services are also popping up that allow 

given his crossclaim against MTCC 1292 authentic social media accounts to become 

for contribution and indemnity. 

part of the bot game. By signing up for the 

CARING service, FOR the user authorizes their account 

to automatically like, follow and randomly 

Summary judgment motion FRAGILE FLOORS 

comment on other users’ posts, and in turn 

MTCC took the position that its duty they trade that fake engagement with other 

under the law is confined to the physical users. Sound harmless enough? The thing 

is you have no say in in the message your 

condition of the premises and foreseeable MALL GERMS: 

account is spreading or where it ends up. 

risks, not the unforeseeable conduct TOP of FIVE HOT SPOTS 

individuals in attendance. Meanwhile, Ask yourself this: What’s more important, 

having 50,000 cosmetic followers, or having 

Mr. Da Costa argued that MTCC 1292’s REMEDYING 500 followers FOUR who are in your target market 

duty extends to having 

rules of conduct that actually want to hear from you? 

for meetings, policies relating toCOMMON abusive CARPET 

As a consumer, it’s even simpler, as 

language, threats 

and intimidating PROBLEMS 

deceptive tactics are easy to spot. If you’re 

behavior, and a duty to hire and supervise using underhanded methods to promote 

competent professionals to oversee its your business, this can be viewed as a 

business (including, if appropriate, security reflection of your product or service. Your 

personnel). Mr. Da Costa further argued 

integrity is at stake. 

that the assault was foreseeable given the This is one of the more complex topics that 

quarrelsome nature of MTCC 1292’s board can’t be fully covered in this space. As always, 

meetings and a prior unrelated incident I invite you to stay social and continue the 

conversation on Twitter at @Chestergosocial 

involving the plaintiff and 

another member 

where I’ll share a link to the full article. 

of MTCC 1292 wherein the police was 

called. 

In reaching her decision, Justice 

Steven Chester is the Digital Media Director of 

MediaEdge Communications. With 15 years’ experience 

Nishikawa looked to Coleiro v. Premier 

in cross-platform communications, Steven helps 

Fitness Clubs where summary judgment 

companies expand their reach through social media 

and other digital initiatives. To contact him directly, email 

was granted in favour 

of the defendant 

gosocial@mediaedge.ca. 

By Steven Chester 

SERVING THE FACILITY CLEANING & MAINTENANCE INDUSTRY 

www.REMInetwork.com | June 2018 15 

Whiterose Janitorial Services’ 

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September 2019 • Vol. 34 #4 

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VOLUME 16 / NUMBER 4 / 

SEPTEMBER/OCTOBER 2019 

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E-VOTING ETHICS 

UNDER SCRUTINY 

The controversy 

surrounding digital 

voting platforms that make 

it possible for board members 

and property managers to 

spy on owners’ votes ahead 

of a meeting has left industry members 

wondering what’s next for protecting the 

integrity of condo governance in the age 

of technology. 


GOVERNANCE 

n this new frontier of electronic voting 

Ilies a confluence of ethical factors: 

individual managers acting unfairly, 

board members who pressure them to 

do so, unregulated service providers, 

and years-old condo legislation. 

The Ministry of Government and 

Consumer Services is currently working 

on implementing permanent changes to 

the Condo Act that will allow condos to 

hold virtual and hybrid meetings and vote 

electronically. But this also comes at a time 

when industry stakeholders are waving red 

flags over such flaws in the system. 

Condo lawyer Denise Lash is one of them. 

She says there needs to be a whole new set 

of governance rules for virtual meetings. 

“Virtual meetings do not and should 

not replicate in-person meetings,” she 

says. “In-person meetings were far from 

perfect when they were the norm and 

we have many proxy battles and litigation 

resulting from the manner in which in-person 

meetings and voting were conducted. 

“Having the Ministry consult with the 

industry and looking at ways to provide 

greater accessibility and direct voting for 

owners will work towards a more democratic 

process.” 

There’s been more urgency on the 

matter since William Stratas, managing 

director of Eagle Audit Advantage, wrote a 

public interest whistleblower letter to the 

Condominium Management Regulatory 

Authority of Ontario—the provincial 

regulatory body that oversees property 

managers. 

Stratas says sources started coming forth 

early last year, claiming licensed property 

managers were choosing e-voting platforms 

that disclose advance election results. “The 

motive is probably beyond mere curiosity,” 

he says. “It's as anti-democratic an initiative 

as you could ever conceive.” 

Armed with knowledge about who is 

winning, managers could be asked to show 

results to board members who would then 

have a tactical advantage over challengers 

running against them. 

In a blog post, CMRAO responded, 

“licensees are advised to refrain from this 

activity and should be aware that any 

attempt to influence the outcome of 

owners’ votes in any way constitutes 

a violation of the Condominium 

Management Services Act, 2015, and the 

Code of Ethics regulation, and the licensee 

will be subject to disciplinary action by the 

CMRAO.” 

Some say the response isn’t emphatic 

enough. “I believe they missed an 

opportunity to show their licensees a 

clear red line on a fundamental ethical 

matter that touches all condominiums,” 

says Stratas. “Perhaps in future their 

disciplinary panel will have an opportunity 

to set forth a more strongly articulated 

position if a complaint on an e-voting 

anomaly is ever filed.” 

Lash is calling for a more formal response, 

with stronger language that aligns the 

industry and gives managers powerful 

wording to use when directors ask them to 

act unethically in such a case. 

“I don’t even think it is possible to 

‘prove’ that managers have influenced a 

vote, and leaving CMRAO’s position with 

[this] wording… would essentially mean 

managers can still gain access, give in to the 

pressures of board members, and as long 

as no one can prove it influenced the vote, 

then CMRAO would not bring disciplinary 

action,” she wrote in an email response to 

the CMRAO. 

Technology Outpacing Legislation 

At the heart of the issue are board 

candidates interested in knowing outcomes 

beforehand and technology outpacing 

years-old legislation, said Rod Escayola. He 

was speaking at a CAI Canada seminar in 

February that was raising awareness about 

the problem. 

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GOVERNANCE 

“Having the Ministry consult with the 

industry and looking at ways to provide greater 

accessibility and direct voting for owners will work 

towards a more democratic process.” 

When the Condo Act was amended 

five years ago and the Condominium 

Management Services Act enacted, the 

province focused its attention on the “known 

evil”being paper proxies, which were rife 

with abuse, Escayola pointed out. 

“The pandemic has totally changed the 

landscape and pushed us forward into a 

universe that we never thought existed two 

and half years ago,” he said. “The weapon of 

choice now is voting electronically.” 

He fears the province will be timid as it 

attempts to regulate e-voting, as drafts of 

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Condominium 

Management 

The Condominium Management program 

is offered in partnership with the 

Condominium Management Regulatory 

Authority of Ontario (CMRAO). 

the future legislation imply. “If we don’t tell 

people what that means and how that works, 

that's going to be really problematic going 

forward,” he said. 

While the advantages of electronic 

platforms may outweigh the need for 

proxies—“you’d have literally 15 days or 

more to cast some form of vote, 24 hours a 

day, at the convenience of wherever you are 

in the world,” said Stratas—technology is 

amplifying risk around confidentiality. 

In the past, when bylaws were 

required for e-voting, the industry 

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focused on principals like transparency 

and confidentiality, Escayola added. “The 

province should pay as much attention 

now when it regulates electronic voting 

as it did when it attempted to regulate 

proxies.” 

Some service providers allow clients 

to view results ahead of time. Lash, who 

was one of the founders of CondoVoter at 

its launch in 2017, started noticing a pattern 

where licensed property managers were 

inquiring about the platform's ability to offer 

advance vote results. Their interest wandered 

when told the feature wasn’t available due to 

ethical and privacy concerns. 

“If the technology allows people to have 

access to the vote, of course the temptation is 

too hard to resist,” Escayola maintained. “We 

really need to regulate the service providers— 

you can’t let technology regulate itself.” 

In a follow-up interview, Stratas said 

e-voting providers should “organize an 

industry association or trade group to 

formulate and enforce uniform codes of 

business and technical practices.” 

“This sort of collective leadership 

would elevate the ethical, well-resourced 

e-voting providers and marginalize any 

sketchy fringe providers who might 

not qualify,” he said. “Audit reporting 

and transparency standards should be 

established within these uniform practice 

codes. All of this will greatly reinforce 

public confidence and trust in e-voting 

practices for condominiums.” 

Next Level Management 

As condo corporations await legislation, 

some believe policies currently in place 

at property management companies 

are lacking. “I find that some property 

management providers appear to tippy-toe 

their way around sensitive ethical matters 

and are reluctant to set unambiguous red 


GOVERNANCE 

lines in their policies and practices so their 

employees are strongly deterred,” said 

Stratas. 

“Leaders of management companies 

should step-up assertively and enforce strongest 

possible standards with unambiguous 

consequences to their licensees for e-voting 

misconduct.” 

Some companies are doing so. Speaking 

at the CAI Canada seminar, Julian McNabb 

of Melbourne Property Management, said 

“you need to create a policy within your 

organization, but when you're entering into 

an agreement with a company that is going 

to provide e-voting or other services, you 

do need to make sure they have a policy 

they follow—similar to tendering any other 

contract the condo depends on.” 

Melbourne Property Management 

recently implemented a policy dealing 

with knowledge of advance voting results. 

“Managers generally want help; they want 

to do their jobs better; we are trying to be 

more professional and it starts around the 

new legislation,” McNabb acknowledged. 

John Damaren, vice-president, community 

development and governance at FirstService 

Residential, said in a phone interview that a 

manager’s job to protect voting information is 

nothing new in condos, given the prevalence 

of hardcopy proxies. 

“In the age of e-voting, the provider is 

basically keeping that information and doing 

a recorded vote where they are going to give 

the managers a tally at the appropriate time, 

either right when it’s to verify quorum and 

during and throughout the voting process. 

But in these days of electronic meetings, 

the companies should not be disclosing this 

information to managers.” 

If boards members hound a manager for 

information, he advises speaking with a 

supervisor and making the management 

company aware. Put concerns in 

writing and potentially reach out to the 

corporation’s solicitor. 

There is always a risk of someone 

privy to the unethical behaviour making 

a complaint to the CMRAO, he warns. 

“There are already cases that have been 

published about unethical managers. 

I’m hoping the next time something like 

this happens, it will be the subject of a 

complaint where CMRAO could then 

take a stand and specifically call out the 

individual.” 

There are likely more owners who care 

about running fair elections inside the 

province's 12,000-plus condo corporations. 

“There are a lot more people now who are 

considering a condominium as their home. 

. . people living in the building have a more 

active role,” McNabb said. “Voter apathy is 

slipping away for resident engagement.” 

Privacy is also top of mind. As the federal 

government plans to overhaul the Personal 

Information Protection and Electronic 

Documents Act and adopt a privacy tribunal, 

Stratas hopes that concerns around privacy 

invasion trickle down to members of the 

condo industry. 

All one needs to do is consider the 

repercussions of Elections Canada passing 

on preliminary votes to the governing party 

in an election. “No one deserves to know 

how anyone else voted in a federal election,” 

he said. “That kind of ethics scandal would 

take down a government. Same risk can 

be present in condos where managers 

choose to use advance vote knowledge for 

manipulation of outcomes.” 1 

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MAINTENANCE 

AUDIT FLAGS POOR WASTE DIVERSION 

EFFORTS 

Ontario’s Auditor General recommends outreach and oversight for multi-res waste diversion. 

Subpar waste diversion results in Ontario’s ICI and multiresidential 

sectors are hobbling ambitious targets to conserve existing 

landfill capacity. Recommendations released late last year from provincial Auditor General 

Bonnie Lysyk call for more outreach, enhanced data and firmer oversight to improve compliance 

with recycling regulations. 

It’s currently estimated that about 50 per 

cent of waste generated from Ontario’s 

single-family households and other 

sources eligible for municipal collection 

services is diverted from landfill through 

recycling programs for various inorganic 

and organic materials. In contrast, about 

85 per cent of waste from an array of 

businesses, public institutions, residential 

buildings with six or more units and 

construction/demolition sites ends up 

in landfill, including a vast amount of 

recyclable material. 

The value-for-money audit of waste 

reduction and diversion — one of five 

released as part of the Auditor General’s 

annual environmental review — concludes 

that Ontario came close to meeting its 

2020 objective to divert 30 per cent of 

generated waste from landfill on the 

strength of the residential contribution. 

However, it is well off-pace to achieve 

stated targets of 50 per cent diversion by 

2030 and 80 per cent diversion by 2050. 


MAINTENANCE 

“If Ontario continues on its current 

trajectory of waste generation and disposal, 

existing landfill capacity in the province will 

be filled within the next 11 to 14 years,” the 

audit report projects. “Our audit found that 

improving waste management in the IC&I 

sector — which generates and disposes of 

the majority of Ontario’s waste — holds the 

key to meeting the province’s waste goals, 

as well as to avoiding Ontario’s looming 

landfill shortage.” 

As recommended, that would 

involve a three-pronged approach of: 1) 

expanding the base of regulated entities 

required to recycle, conduct waste 

audits and implement waste reduction 

plans; 2) providing more resources for 

compliance and beefing up enforcement 

of regulations; and 3) mandating a broader 

range of materials to be recycled. 

Many businesses and institutions 

exempt from recycling obligations 

The current triggers for imposing mandatory 

recycling and waste reduction obligations are 

meant to target the largest waste producers, 

but the audit report calculates that up to 98 

per cent of organizations in the ICI sector are 

not captured. Exempt entities are believed 

to be collectively responsible for generating 

more than half of the sector’s waste volume. 

For example, while the six-unit threshold 

arguably brings the major share of multiresidential 

properties into the scheme, office 

buildings and retail malls, plazas or stores are 

exempt until they surpass 107,000 square 

feet (10,000 square metres) in size. The 

same goes for construction and demolition 

sites smaller than 21,500 square feet (2,000 

square metres), hotels and motels with fewer 

than 75 rooms, and schools with fewer than 

350 students. 

“More than 98 per cent of businesses 

and institutions are not required to recycle, 

so they often don’t,” Lysyk submits. 

“Sending waste to landfills is relatively 

cheap, so even easily recyclable products 

from places like offices, restaurants, 

movie theatres, retail stores and 

warehouses end up as landfill garbage.” 

The remaining 2 per cent 

encompasses about 7,000 office 

buildings, 3,000 educational facilities, 

1,500 manufacturing facilities, 1,500 to 

4,000 retail venues, 800 hotels/motels 

and 100 hospitals. The report estimates 

that 100 to 600 qualifying construction 

or demolition sites in 2019 represented 

less than 1 per cent of such worksites in 

the province that year. 

The audit reveals varying commitment to 

compliance among those players. Data for 

approximately 1,260 inspections the Ministry 

of Environment conducted in the five-year 

period ending in 2019 shows an overall 88 

per cent compliance rate with building-level 

requirements to separate out recyclable 

materials from the waste stream, with 

office and multi-residential buildings both 

surpassing that average. 

Waste audit figures for the same period 

provide more insight. Multi-residential 

buildings are not subject to requirements 

for self-reported audits and waste reduction 

plans, but office buildings demonstrate a 

wide range of performance — from a low of 

36 per cent to a high of 90 per cent waste 

diversion. That’s a pattern seen elsewhere, 

with universities exhibiting one of the widest 

swings from a low of 11 per cent to a high of 

81 per cent diversion. 

Neither quality control nor recordkeeping 

enforced through inspections 

The report notes that inspectors look for 

designated bins for recyclable materials and 

waste as evidence of source separation, but 

typically do not check to ensure recyclable 

material is uncontaminated with waste or 

organics. Nor do they require record-keeping 

to show that recyclables are shipped to 

legitimate recycling facilities. 

“Broad compliance with the Source 

Separation Regulation does not necessarily 

result in higher waste diversion. The 

regulation does not require establishments 

to achieve a specific performance outcome, 

such as a diversion target, only to make 

‘reasonable efforts’ to divert collected 

materials,” the audit report states. 

It suggests the government’s pullback 

on requirements for audits and reduction 

plans could be part of that disconnect. 

Since April 2019, Ministry inspectors 

have focused only on the rules for 

separating recyclable and waste materials, 

downplaying the documentation and 

planning exercises that are meant to steer 

participants’ attention to opportunities to 

curb waste and increase diversion. 

The audit also raises serious concerns 

about where much of the recyclable material 

goes after it is sorted out at buildings — 

deducing that it often ends up in landfill 

because it is taken to transfer stations that 

aren’t equipped to handle it. In response, the 

report calls for more data and transparency. 

“Establishments do not have access 

to information about waste industry 

activities to verify where recyclables are 

taken or to make informed decisions when 

contracting waste services,” it states. 

“The Ministry does not compile or publish 

information about waste management 

companies’ operations, such as their 

diversion rates, the types of materials they 

divert, or what they do with the materials 

they handle.” 

The Ministry is urged to update its 25-yearold 

list of mandated materials for recycling to 

add the coffee cups, compostable packaging 

and an expanded range of plastics that it is 

now feasible to recycle, and to more actively 

promote looming targets for diverting organic 

waste in the ICI and multi-residential sectors. 

The latter were invoked through the 2018 

organic waste policy. 

“The policy requires multi-residential 

buildings and large establishments to 

reduce and divert organic waste by either 

50 per cent or 70 per cent, depending on 

their size and subsector, by 2025,” the 

audit advises. “This could result in added 

costs for the affected multi-residential 

buildings and establishments that require 

budgeting, but the Ministry has not yet 

provided essential guidance on how to 

calculate the baseline for the target, nor 

undertaken outreach activities to promote 

compliance with the policy.” 1 


DESIGN 

THE BRIGHT IDEA BEHIND LILIES 

Adding summer interest to condo landscapes 

Bulbs are typically 

BY KENT FORD 

associated with 

those planted in the 

fall, such as the famous tulips and daffodils. 

There is another world of colour and scent, however, 

and they emerge from bulbs planted in the spring. Known by their 

Latin name as Lilium, or more commonly as lilies, these unusual 

beauties aim to please any condo landscape from June to September. 

Clockwise from top left: Lillium Orientalis ‘Star Gazer’; Lilium Trumpet ‘Golden Splendour.' inter-planted with Purple Leaf Sand 

Cherry shrubs; and Lilium Trumpet (white with purple ‘throat’), inter-planted with Butterfly Bush. 


DESIGN 

Clockwise from top left: Lilium Tiger (red/yellow); Lilium Orientalis ‘Casablanca’; and Lilium Asiatic (various). Varieties in yellow with burgundy speckled ‘throats’ and white 

with yellow ‘throats.’ 

The great flexibility with lily bulbs is 

that they can be inter-planted into existing 

landscaping. If a hole can be dug with a bulb 

digger or small shovel, three inches wide by 

six to eight inches deep, then a lily bulb can 

be planted. 

Where they will not grow is in heavy clay 

or poor draining soil where they will inevitably 

rot. They will also grow in either full sun or 

part shade, which is usually the case for most 

established condo planting beds. 

There is also a variety of heights ranging 

from 18 inches, which suits planting in 

containers, and up to 44 to 60 inches suitable 

for inter-planting around existing tall perennials 

and shrubs. They are all sure to please both 

condo residents and visitors as all their 

blooms are large and fragrant, outperforming 

any other summer flowers for visibility. 

The Asiatic Group 

These are the first group to bloom, usually 

emerging in late June and early July. They are 

winter hardy to Zone 2, which means they 

have no problem thriving as far north as Thunder 

Bay. The remaining groups are winter hardy 

to Zone 3. Colours usually have a dramatic burgundy 

or soft yellow ‘throated’ centre. 

The Trumpet Group 

These are the next in sequence to bloom in 

July. What is incredible about these varieties 

is their height, three to five feet, making 

them perfect to integrate with tall shrubs. Also 

worth noting is their intoxicating fragrance 

such as those pure yellow and white and purple 

varieties. 

The Oriental Group 

The Oriental Group blooms in late July into 

early August. Most famous for its extraordinary 

fragrance and four-to-six-foot mature 

height is the Oriental Casablanca. Pure white 

blooms suit any landscape colour scheme. 

Star Gazer is slightly shorter, but with stunning 

deep pink and pink speckled blooms and 

equally fragrant. 

Tiger Lilies 

These are the last to perform in mid-to-late 

summer, going into early September. These 

blooms face downward, which is atypical to 

the other groups and in a variance of yellow 

with red speckles, and yellow and red stripes. 

Coming into their own when most of the 

landscape starts to tire, fade and wane the 

Tiger group is a great pick-me-up. 

Maintenance 

The ease of Lilium is their ability to do 

what is known as ‘perennialize.’ What this 

means is that the bulbs multiply with age 

by producing smaller bulb offsets. Some 

varieties will last for years and when 

weighed against the cost of bedding 

annuals that are planted year after year, 

the savings for the condo corporation can 

be significant over a 10-year period. 

Planting in the spring involves the same 

level of skill from a landscape crew that 

would be required for fall bulb planting. 

Spraying for lily beetle and staking of taller 

varieties may be required. If inter-planted 

amongst sturdy existing perennials and 

shrubs, the need for staking can be 

by-passed. Cut the spent foliage down 

to the ground in the fall and the cycle will 

begin again the following spring. 1 

Kent Ford is principal Landscape 

Architect and founder of KFDG Inc., a 

Toronto-based Landscape Design and 

Project Management firm specializing 

in Condominiums. He can be reached at 

416-368-7175, www.kentforddesign.com 

or by email at kent@kentforddesign.com 


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realized through a joint venture between Windmill Developments 

and Leader Lane Developments. 

In total, 83 condo units will be spread between three properties, 

each of which is located next to each other and anchored by the 

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Each building is being developed to Passive House standards 

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