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Canada’s Most Widely Read Condominium Magazine

April/May 2022 • Vol. 37 #1

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Many condos have not saved enough for future expected payments or unexpected repairs, study warns

PA R T O F T H E

Spring Maintenance Getting ahead of water leaks, maintenance and repair obligations and fair elections in the age of e-voting

P A R T

O F

T H E

Condominium

Residential

Commercial

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Contents 16 FINANCE 10 Inflation Impacts Condo Budgeting By Shlomo Sharon

LEGAL 16 Legal Cases Spotlight Maintenance and Repair Obligations

34 SPRING MAINTENANCE

IN EVERY ISSUE

Editor's Note

Ask the Expert

New & Notable

Getting Ahead Of The Leak By Ayman Ashebir

By Sonja Hodis

Not Enough By Rebecca Melnyk

GOVERNANCE 28 E-Voting Ethics Under Scrutiny By Rebecca Melnyk

32 Audit Flags Poor Waste Diversion Efforts

DESIGN 34

The Bright Idea Behind Lilies dding summer interest to condo A 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

Associate Publisher Bryan Chong Editor Rebecca Melnyk Advertising Sales Bryan Chong, Sean Foley, Ron Guerra, Jason Krulicki, Melissa Valentini Art Director Annette Carlucci Graphic Designer Thuy Huynh Production Manager Rachel Selbie Contributing Writers Ayman Ashebir, Kent Ford, Sonja Hodis, Claudia Pedrero, Shlomo Sharon Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*. Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Circulation Department Adrian Hollard circulation@mediaedge.ca (416) 512-8186 ext. 234 CONDOBUSINESS is published six times a year by

President Kevin Brown Director & Group Publisher Sean Foley Accounting Manager Michele Therien 2001 Sheppard Avenue East Suite 500 Toronto, Ontario M2J 4Z8 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs. Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.

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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

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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

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 this nightmare? Here are three lessons for condo boards and owners. Profes sional Ac c redited Proper t y Management and Engaged Directors Even though the condominium is led by a board of directors, it needs to rely on the advice of professionals for the proper management and budgeting for a building. The property manager plays a key role. At the same time, condominium directors should have some knowledge of condominium governance and funding while being committed to staying on top of their condo’s operations. 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

BY SHLOMO SHARON

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. 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.

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The pandemic has heightened the cost and shor tage of labour, in turn impacting deliver y and cost of materials, as well as other company ex p e n s e s like w a g e s a n d s a l a r i e s . 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. T he b o ard of direc tors, to gether 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 cor p oration 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. T his new realit y requires attention to details and competence to work through this difficult time. 1 Shlomo Sharon is the CEO of Taft Management Inc.

Building Science & Structural Engineers Building Structure Parking Structures Building Envelope Reserve Fund Studies Performance Audits

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rjc.ca www.REMInetwork.com | April/May 2022 11

MANAGEMENT

GETTING AHEAD OF THE LEAK As the rapid g row th of condom in iu m l iv ing in

BY AYMAN ASHEBIR

Canada continues, corporations and their suite owners need to be on alert for an omnipresent danger:

water damage.

12 CONDOBUSINESS | Part of the REMI Network

MAINTENANCE

“Unfortunately, while the damages can be catastrophic, adequate in-suite care remains low.”

According to Statistics Canada, the share of residents reside in late-twentieth century condominiums among newly built dwellings buildings that grapple with underlying has increased five-fold since 1980 with as p lum bin g and me c h anic al systems much as 30 per cent of residents in cities like reaching or surpassing their estimated Vancouver and Toronto residing in condos useful life. by 2016. For condos housing hundreds of The Autorité des marchés financiers in residents, easily addressable leaks of some Quebec identified water damage as the form can occur at any given moment, leading cause of insurance claims, while whether from a leaky faucet, drain, or internal data from Aviva Insurance found appliance. As buildings age, however, there water damage claims doubled over a tenis increased risk of more significant leaks and year period ending in 2012. floods that can result in considerable water While residential home and damage. commercial owners repor ted 4 0 per A K P M G stud y for the C anadian cent of insurance claims being related Institute of Actuaries highlights two to water damage, the share for condos primary areas of concern related to the is between 60 per cent and 90 per cent, increase of property damage claims: the according to KPMG’s study. Unlike in rise of people living in condominiums single dwellings where the impact is 2:44 PM and agingDelProperty_Condo_March_2018_torevise.pdf infrastructure. Many condo limited1 to2018-04-13 that home, leaks in condos

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 a n b e c o m e m o re su b s t a nt i a l a n d widespread.

CMY

www.REMInetwork.com | April/May 2022 13

MAINTENANCE

“Many suite owners are unaware of simple, yet vital, safety tips like keeping their HVAC systems running while on extended absences.”

maintenance of in-suite HVAC systems is also critical. The Canadian Institute of Actuaries, Chubb Homeowners Study, and the Privilege Underwriters Reciprocal E xchange all identif y in - suite H VAC 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:

Over time, drain pans rust and corrode, potentially creating holes for water to escape.

Deteriorating insulation within the fan coil cabinet can lead to debris falling into and potentially clogging the drain pan, drain hose, and condensate lines.

When turned off for extended periods of time during the winter, the pipes and coils can freeze and burst, leading to significant water damage.

A s r i s e r s ex p a n d a n d shr ink 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 Ser vices Authorit y 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

14 CONDOBUSINESS | Part of the REMI Network

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. 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.

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 per vasive, so too are the preventative solutions. And through increased knowledge, shared community

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

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LEGAL CASES SPOTLIGHT MAINTENANCE AND REPAIR OBLIGATIONS T he r e i s no d o u bt t h at a

BY SONJA HODIS

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. 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.

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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 re p l a c e m e nt p o li c y. M r. B e r m a n’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 an d se nsi b l e w in d ow re p l a c e m e nt 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: • Rel ationship b et ween the c ond o 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

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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.

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SATURDAY, MAY 28, 2022 Register at cci.ca

An event not to be missed by Condo Board Members, Owners, and Industry Suppliers! www.REMInetwork.com | April/May 2022 19

NOT ENOUGH In an overheated housing market, condos are BY REBECCA MELNYK comparatively less expensive than single-family homes. But deferred contributions to reserve funds are casting a shadow on their true market value and creating an uncertain financial future for owners.

20 CONDOBUSINESS | Part of the REMI Network

www.REMInetwork.com | April/May 2022 21

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.” 22 CONDOBUSINESS | Part of the REMI Network

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

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transactions with less paperwork. In other words, it can help streamline accounting processes and accelerate a paperless office strategy. For a property manager or landlord, this could mean being able to accept or request payments directly from tenants with immediate access to funds, paying contractors and invoices for work specific to the property with greater ease and retaining payment confirmations. Further, property managers and landlords could send a reminder for rent payment via request-to-pay capability and easily reimburse tenants for costs incurred on behalf of the property manager or for payment returns. Receiving payments instantly in this way can also be a game changer if a manager is largely reliant on cheques, eliminating any uncertainty around when one will arrive in the mail or whether it will clear. With Interac e-Transfer for Business, property managers can receive payment instantly, reducing the number

of cheques and cash they receive, eliminating the risk of late payments, and gain easy visibility into what the payments are for using structured data. Eight in 10 (80 per cent) business decision makers surveyed agree that moving from traditional payment options to digital ones will be essential to post-pandemic growth . Assessing how a business can revamp its payment processes and financial management to become more efficient and effective with tools like Interac e-Transfer for Business can help to equip the commercial property industry as it embarks upon growth and recovery plans. Those interested in using the solution are invited to learn more by visiting Interac.ca/business, In The Know and to discuss the offering with their financial institution. Interac and Interac e-Transfer are registered trademarks of Interac Corp..

(1)Interac commissioned Hill+Knowlton Strategies to conduct a national survey of adult Canadians. A total of 1,000 adult residents of Canada were surveyed online in April 2021. The sample was randomly drawn from a panel of potential survey respondents. An associated margin of error for a probability-based sample of this size would be ±2.5%, 19 times out of 20. (2)Interac commissioned Phase 5 Consulting to conduct an online survey of 152 financial decision-makers in Canadian midsized businesses with 100-499 employees. Participants were recruited via an online research panel. Fieldwork was conducted in English and French in May 2021. (3)Interac participated in RFi Group’s online commercial banking and payments syndicated survey of decision makers at 363 commercial enterprises with revenues between $10M and $100M. Fieldwork was conducted in English and French in June 2021. Note: Finance transformation describes any strategic initiative meant to create new opportunities for the finance function to add value to the business and align with overall company strategy.

E-VOTING ETHICS UNDER SCRUTINY The controversy s u r r o u nd i n g d i g it a l voting platforms that make

it possible for board members and proper t y 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.

28 CONDOBUSINESS | Part of the REMI Network

GOVERNANCE

this new frontier of electronic voting lies 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 Ministr y 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 Authorit y 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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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. I n t h e p a s t , w h e n b y l a w s w e re re q uire d fo r e - votin g , t h e in d u s t r y

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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 sor t 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 proper t y 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

30 CONDOBUSINESS | Part of the REMI Network

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 Proper t y 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 c o m p a n y a w a re . P u t c o n c e r n s i n 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 CMR AO 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 multi-

residential 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

32 CONDOBUSINESS | Part of the REMI Network

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, m o v i e t h e a t re s , re t a i l s to re s a n d warehouses end up as landfill garbage.”

The remaining 2 per cent e n c o m p a s s e s a b o u t 7, 0 0 0 o f f i c e 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 industr y 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

www.REMInetwork.com | April/May 2022 33

DESIGN

THE BRIGHT IDEA BEHIND LILIES Adding summer interest to condo landscapes

Bulbs are typically BY KENT FORD associated w ith 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.

www.REMInetwork.com | April/May 2022 35

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.

36 CONDOBUSINESS | Part of the REMI Network

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 Ken t F o rd i s p ri n c i p a l L a n d s c a p e 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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NEW AND NOTABLE

Toronto’s First Pre-fabricated CLT Condo The cross-laminated timber “CLT” construction of a new condo in west Toronto will be prefabricated off-site to significantly reduce embodied carbon. The project will be a first in the city as plans are 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 Mimico GO Train Station. Each building is being developed to Passive House standards through the use of a CLT structure and will be targeting LEED Platinum certification with inspiration from the One Planet Living principles. “Our team believes real estate is ripe for innovation, especially when it comes to making an impact in the fight against climate change,” says Jonathan Westeinde, CEO of Windmill Developments. “Not only will these buildings be built faster, and with less waste, they will be the most sustainable homes available on the market.”

38 CONDOBUSINESS | Part of the REMI Network

R-Hauz will be the design-build contractor on each building, following its pre-fabricated pilot project which is the first all mass timber six-storey residential building in Ontario, located on Queen Street East. Leader Lane partner Don Manlapaz says the new partnership with Windmill is intended to support missing middle housing types, introducing soft density into supply-constrained neighbourhoods that are experiencing high demand. “Not only will our approach allow for a total construction timeline of eight to twelve months, but we anticipate efficiencies in planning and approvals as well,” says Manlapaz. “The scale of projects we are pursuing means we should avoid a lengthy re-zoning process, focusing instead on site plan approval and minor variances. The net result is both speed to market, and speed to occupancy, both of which are critical in a city experiencing a housing crisis.” All three properties will be receiving funding from the One Planet Living Fund. 1

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24 HOUR EMERGENCY SERVICE ASPHALT PAVING CONCRETE PAVING SITE servicing LANDSCAPE CONSTRUCTION BUILDING RESTORATION WINTER SNOW SERVICES service@forestgroup.ca 416.524.3000 www.forestgroup.ca

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