Alexander Etkin Horlick Levitt Di Lella LLP
Maintaining Reserve Funds
The Trifecta of a Dysfunctional Condominium Corporation
Condominium corporations [with collective input and support from (1) the board, (2) management, and (3) owners] that do not raise their common expense fees annually do so at the peril of their fiscal and operational wellbeing On January 24, 2022, the CBC published an article about the troubled state of York Condominium Corporation No. 82, which operates a 321-unit residential property in the Jane and Finch neighbourhood. YCC 82’s board of directors recently approved a special assessment totaling $11,235,000, or approximately $35,000 per unit, to cover the cost of numerous repairs, including serious and potentially dangerous structural and building envelope deficiencies. The repairs are estimated to total $14,285,000. While the CBC article presents a heart-
breaking picture of YCC 82 and the financial hardship of the special assessment on its owners, especially seniors who are living on a fixed income, I believe a review of the past and ongoing litigation involving YCC 82 would supplement the CBC’s report and give readers a better understanding of what has transpired (and continues to transpire) at this troubled condominium.
PART ONE The Background of YCC 82’s Predicament YCC 82’s poor state of repair today is the result of a troubling history of mismanagement and neglect going back several decades, all set out in the recent decision Jasper Developments v. York Condominium No. 82, 2022 ONSC 768 (“Jasper Developments”).
All in all, it is important to recognize that YCC 82 did not get to where it is overnight.
By way of context, the Applicant in this case, Jasper Developments, is a non-resident investor in multiple units in YCC 82 that sought a court order compelling the corporation to call and hold a requisitioned meeting of owners to vote on the removal and replacement of its Board of Directors. The reason for the requisition was ostensibly to bring in a new Board to cancel or modify the above-noted special assessment.
This article discusses: 1) the background of YCC 82’s current financial troubles; 2) YCC 82’s options under the Condominium Act, 1998 (the “Act”) and; 3) best practices for the corporate governance of condominium corporations.
Per Jasper Developments, YCC 82 was inCONDOVOICE SPRING 2022
CV
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ILLUSTRATION BY JASON SCHNEIDER
The Importance of Adhering to the Reserve Fund Study and Financial Management Duties
