CONDO BUSINESS by MediaEdge

Canada’s Most Widely Read Condominium Magazine

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July/August 2017 • Vol. 32 #3

Toronto poised to define, regulate and tax short-term rentals

3RD ANNUAL WHO'S WHO

PA R T O F T H E

A ranking of the Canadian condo industry’s major players and portfolios

P A R T

O F

T H E

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Contents FEATURE

Court decision opens door to patients growing medical marijuana in condo units By James Davidson and Cheryll Wood

Governance Much a-doo about dogs By Garry Bradamore and David Spencer

Management Contract changes could undermine proposed elevator-repair legislation By Ray Eleid

Maintenance A guide to treating three persistent pests By Dr. Alice Sinia

Check-in time By Michelle Ervin

FOCUS ON: TECHNOLOGY

Data-driven diagnoses support costeffective solutions By Dale Kerr Intruder alert: Integrated security solutions add new layer of protection By Scott Hill

DEPARTMENTS

Conflict management Communicating more effectively during difficult discussions By Marc Bhalla Legal Code changes could turn down volume of noise complaints By Megan Mackey

SPECIAL FEATURE

The 3rd Annual Who's Who survey of the Canadian condo industry's major players and portfolios

IN EVERY ISSUE

Ask the expert

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EDITOR'S LETTER

28 days or less The rapid rise of the sharing economy in

recent years has sent policymakers scrambling

to respond with rules that address this new reality. First, the municipality of Toronto tackled ride-sharing apps, such as Uber, which disrupted the taxi industry. Now Canada’s largest city has turned its attention to home-sharing platforms, such as Airbnb, which is disrupting the hotel industry. These platforms are also in some cases disrupting condos, in a different kind of way. Condo buildings possess many of the same features as hotels, such as gyms and pools, making them attractive targets for shortterm rentals, from the perspective of both guest and host. But with transient visitors come concerns about noise and safety, as well as about building damage resulting in extra maintenance and costs. That explains why some condo corporations ban them altogether in their governing documents. The trouble is, these provisions can be a pain to enforce, despite a recent court ruling that bolstered their cause by confirming that short-term rentals are incompatible with single-family uses. Condo stakeholders who were hoping more help was on the way may be disappointed by the regulations proposed in Toronto. As covered in this month’s cover story, the contemplated rules allow short-term rentals in condos, as long as the unit is a primary residence. In other words, commercial operators and investors would be cut off. Condo corporations would retain the ability to use their declarations, bylaws or rules to impose an all-out ban if they so desired. Conversely there are concerns about what the contemplated rules would mean for condo corporations specifically set up to allow short-term rentals. But this story isn’t over yet, with city staff slated to take the proposed regulations out to public consultation. Also in this, our technology issue, you will find articles on data-driven building diagnoses, e-voting and intrusion detection systems. Plus, we bring you our third annual Who’s Who, a rundown of the major players and portfolios in Canada’s condo industry. If we missed you, please email Daniel Ross at danielr@mediaedge.ca to be included in our 2018 contact list. A quick point of clarification: The May/June 2017 article “What to ask your auditor” refers to a “certified public accountant.” That’s what the U.S. designation is called. In Canada, the designation is called the Chartered Professional Accountant, or CPA. Until regulations are in place, condo communities are left to their own devices in determining how to handle short-term rentals. As you’ll discover in this month’s cover story, some of the board members who are dealing with the phenomenon have a few ideas about what should be done. Michelle Ervin Editor, CondoBusiness michellee@mediaedge.ca JTB_Condo_March_2017_FINAL.pdf

Publisher Mitchell Saltzman Editor Michelle Ervin Advertising Sales Sean Foley, Stephanie Philbin, Melissa Valentini Senior Designer Annette Carlucci Production Manager Maria Siassina Contributing Writers Marc Bhalla, Garry Bradamore, James Davidson, Ray Eleid, Scott Hill, Dale Kerr, Megan Mackey, Dr. Alice Sinia, David Spencer, Cheryll Wood 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 Aashish Sharma circulation@mediaedge.ca (416) 512-8186 ext. 234 CONDOBUSINESS is published six times a year by

President Kevin Brown Director, Sales & Strategy Eric Harbottle Accounting Manager Nadia Piculik, CPA, CMA 5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 (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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Get out the e-vote This fall will usher in legislative changes to Ontario’s condominium landscape. Specifically, parts of the Protecting Condominium Owners Act — which will introduce the Condominium Management Services Act and overhaul the Condominium Act — will come into force. Trevor Zeyl, co-founder of GetQuorum, answers: How will these changes empower condominium corporations to improve governance through the use of technology? As they start to roll out in phases, regulations new and reformed will, among other things, change how property management companies operate as well as how condominium corporations are governed, including allowing condominium corporations to use new technologies to improve governance. Standardized forms coming The Protecting Condominium Owners Act refers to the required use of a standardized proxy form for owners’ meetings. This is no surprise to many condo industry stakeholders, however, as such a requirement was recommended during the Condominium Act review that preceded the legislative reforms. A number of other proxy-related recommendations were also made during this review, including a recommendation that proxy holders be required to sign their name next to the candidate(s) of their choice when voting in condo board elections or next to the bylaw they are endorsing. Another proposal was to have proxy holders fill in the name of the candidate that they are voting for instead of using a pre-printed name on the proxy form. An additional suggestion was to provide copies of the proxies either electronically or in an automated form. To date, the Ontario government has not disclosed what the standardized form of proxy will look like.

8 CONDOBUSINESS | Part of the REMI Network

Electronic voting allowed Once in force, section 52(1) under the amended Condominium Act will authorize the use of ‘electronic or other technological means’ to record voting at owners’ meetings. Practically speaking, this will allow condo corporations to use technology that accepts and tabulates ballots in real time at or during owners’ meetings. Electronic voting, however, should not be confused with electronic proxies. Electronic proxies are already permitted under the Condominium Act and have been widely adopted in the condo marketplace. They allow owners to complete a proxy form, designate a representative in their absence at an owners’ meeting, and submit such proxy in advance of and up to the start of the meeting. The use of electronic proxies allows owners who would otherwise be unable to attend an owners’ meeting (including off-site owners) have their voice and vote heard. This can increase overall ownership participation as well as the likelihood of achieving quorum. Electronic proxies also safeguard against tampering and other irregularities, such as altered votes and forged signatures, which lead to election misconduct. Electronic proxies typically require owners to enter a pre-provided access code to complete their proxy. Copies of the electronic proxies are also sent to the owner and stored online, which means election results are available for auditing in the future.

ASK THE EXPERT

No ‘soliciting’ proxies In addition to the proxy regime changes addressed in the Protecting Condominium Owners Act, the new Condominium Management Services Act will specifically address how proper ty managers are required to handle proxies. Under this new legislation, property managers will be prohibited from soliciting proxies for owners meetings if the subject matter of the meeting is directly related to the property manager, or the election or removal of the condominium’s board directors. This new legislation defines “solicit” to mean petitioning for, or trying to directly obtain, a proxy for a meeting of owners. However, activities such as collecting or holding proxies, reminding owners to submit proxies, explaining how to submit proxies and providing proxy forms are exempt from the prohibition. These proposed changes came about as a means to prevent any undue influence a property manager may have on the voting choices made by owners. Electronic proxies remove the property manager from the proxy voting processC altogether by requiring owners to submitM their electronic proxies directly to a third-Y party electronic proxy provider.

MY Quorum threshold relaxed Failing to reach quorum is a challenge thatCY some condo corporations face. Lack of voter CMY participation has been attributed to a number K of factors, including owner apathy and failure of owners to understand their rights. Under the current Condominium Act, at least 25 per cent of all units must be represented in person or by proxy for an AGM or a requisitioned meeting to validly proceed. Once relevant provisions of the Protecting Condominium Owners Act come into force, quorum requirements will drop by 10 per cent if quorum is not achieved in the first and second attempts at holding an owners’ meeting. However, with the introduction of new technologies such as electronic voting and electronic proxies, achieving quorum in the first instance should be easier for condo corporations. T h e ro l l o u t o f t h e P ro te c t i n g C ondominium O wners Act will be

a big step forward for the Ontario condo will undoubtedly improve communication industry. The coming changes acknowledge between condo corporations and owners, challenges that corporations and owners foster transparency and address quorum have felt for the past 20 years, as well as issues. 1 the technological shifts that have happened since the Condominium Act was first Trevor Zeyl is a co-founder of GetQuorum.com, introduced. Allowing for electronic tools an online proxy voting system and meeting in the management of owners’ meetings package distribution service for owner meetings. Lionheart_Condo_March_2017_FINAL.pdf 1 2017-02-16 10:40 AM

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TECHNOLOGY

Data-driven diagnoses support cost-effective solutions Building science engineers have many tools to help diagnose building performance problems.

BY DALE KERR

Most are quite simple â&#x20AC;&#x201D; a gauge for measuring crack widths, a smoke pencil to locate air leakage, a probe to determine moisture content. However, many building performance problems are cyclic, and may appear or disappear depending on changes in the exterior and/or interior climates. In such cases, the simple tools are not sufficient, and long-term monitoring is needed to determine exactly what is causing the building problem.

10 CONDOBUSINESS | Part of the REMI Network

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TECHNOLOGY

The data was used to prove to the door manufacturer that there was a problem with the thermal resistance of its door.

There are many different types of sensors that will collect data over an extended period of time, anywhere from a few days to a year or more. The parameters typically measured include temperature, relative humidity and pressure. Here’s a look at three case studies where long-term data collected from a sensor was used to help solve the building performance problems: Investigating excessive condensation using a surface temperature sensor Excessive condensation and frost was occurring on the doors of a building, so surface temperature sensors were taped to the surface of various locations on the interior of a typical door as well as the wall surrounding the door. The sensor used can record and hold up to 2,048 measurements, and can be programmed to record at any interval. So, for example, it will record every five minutes for a week or every hour for 85 days. The cost of the sensor is approximately $60, with a one-year life expectancy. To download the information, the sensor is snapped into an adaptor that is then connected to either a USB or Ethernet port on a computer. The recorded temperatures were correlated to the exterior temperature, and the data was used to prove to the door manufacturer that there was a problem with the thermal resistance of its door. Investigating mould growth using a temperature/relative humidity sensor A unit in a high-rise was experiencing mould growth on the interior of the exterior walls. The brick masonry building was approximately 40 years old, poorly insulated, with separately metered electric heating and newly replaced windows. No other units in the building were experiencing the same problem. A combination temperature/relative humidity sensor was installed in the unit for a month in the winter to try to determine why this particularly unit had a problem.

The sensor used will record 16,000 readings, meaning it can record for 27 days every five minutes or almost a year every hour. The sensor costs approximately $90 and the replaceable battery has a life of two years. The sensor incorporates a USB connection in its construction to allow the data to be downloaded directly to a computer. The collected data was used to determine that during the day, the temperature in the unit dropped and the humidity increased such that the interior wall temperature fell below the dew point temperature of the air. The dew point is the temperature at which moisture will condense out of the air at a given relative humidity level. The moisture on the wall surface then provided an environment conducive to the growth of mould. It turned out that the residents were turning the heat off during the day when they were not home in an attempt to reduce their energy costs. With these findings, it was possible to convince the owners that leaving the heat on would prevent further mould growth. Investigating water penetration using pressure taps A brick veneer high-rise in Ottawa was experiencing water penetration. Veneer walls incorporate an air gap behind the exterior cladding, whether it be brick, siding or precast concrete. When the wind blows on a building, it creates a positive pressure on the wall, which pushes rainwater inwards. The intent of the air gap is to create a “pressure break” so that should rain get past the exterior cladding, it is not pushed further through the wall; instead, gravity drains the water down the inside face of the veneer to flashing that directs the water back to the exterior. Another consultant had diagnosed the problem in the Ottawa building as a positive pressure difference across the air gap that was forcing water to penetrate through the

12 CONDOBUSINESS | Part of the REMI Network

walls to the building interior. That consultant’s solution was to remove all the exterior brick, apply waterproofing to the exterior of the back-up wall (the portion of the wall on the inside of the air gap), and then reinstall the brick. The total cost was projected at well over $1 million. To measure the pressure difference across the veneer and across the air gap, pressure taps were installed. A pressure tap is simply an open-ended plastic tube that is connected to a manometer, which is a device that converts the air pressure in the tube to an electric signal that can be recorded by a data logger for later downloading to a computer. Pressure taps were installed on the exterior face of the wall and on both sides of the air gap. Measurements were recorded over several months to ensure various wind conditions were examined. This proved that there was no pressure difference across the air space, and that the problem was actually that the flashings were not continuous, allowing water to seep into the interior at floor levels. The cost to repair the flashings was a fraction of the cost of the repair proposed by the other consultant. The sensor and measurement options presented here are simple, inexpensive solutions. More expensive sensors are available that can wirelessly transmit data in real time, without the need to manually download the information. Experience suggests that, while building owners expect long-term monitoring to be costly, the information gained can allow a building science engineer to design a far more economical solution to the problem, with savings that can outweigh the cost of the monitoring. 1 Dale D. Kerr is chief operating officer and a technical specialist at Pretium GRG Building Engineers. She can be reached in their Newmarket office at (800) 838-8183, or through Pretium Anderson’s offices in Toronto, Burlington and the Waterloo area.

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Q&A: Toronto Decorating Corporation What has attributed to TDC’s growth? Our goal has always been to provide excellent service and ensure complete customer satisfaction. One of our main objectives is to ensure we work within our clients’ budgets and do what it takes to facilitate their vision. That mindset has helped TDC grow, along with word of mouth and referrals from our customers. TDC is thankful for its industry connections and the opportunities they create. Reputation is everything in this industry, which is why it’s so important to maintain that positive reputation through hard work while continuing to build on that momentum. It has been 45 years since Louis Evagelou opened the doors to Toronto Decorating Corporation (TDC), bringing his distinct renovation style to the GTA market. As he sets a course for future growth, the life-long tradesman is taking a moment to reﬂect on what has made TDC one of the most reputable commercial and residential renovation ﬁrms in the industry.

You’ve been in the renovation/decorating field for a while. How did you start? I started working in the trade when I was younger and living in Greece. I worked at a design company that took care of every aspect of the job from beginning to end, including the initial designs, completing construction and adding all ﬁnishes. I spent ﬁve years with them before I came to Canada in 1967. It was a few years later, in 1972, when I decided to open up my own company in Canada. In the early days of TDC, we were doing what I knew best: painting, wallpapering and general contracting. For over 15 years, TDC mostly worked on custom home developments in GTA neighbourhoods including Rosedale, Bridle Path and Forest Hill. After I became involved with a number of property management companies, I started to focus on growing my commercial business.

How have you seen the industry change since you started? In the last ﬁve years alone, I have seen a trend towards providing clients with the “full package“, which is where we facilitate everything from the beginning of the project – from the design aspect to project management and everything in between – in a very professional manner. That has been my vision since the beginning of TDC, and it is what my team and I strive to provide.

What services does TDC provide? Today, we handle everything from high-end interior renovations

to building repairs, on-going maintenance and exterior alterations. We refurbish common areas such as lobbies and corridors, renovate complete amenity spaces, including condo change rooms, party rooms and any other common areas. Building maintenance may consist of repairing water leaks, to replacing drywall, to renovating an entire suite. Upkeep of parking garages is also part of our expertise. In most cases, TDC uses environmentally friendly products when the opportunity arises. We are a well-rounded and full-service company and we take pride in our workmanship and the services we deliver.

What does your team look like?

TORONTO DECORATING CORPORATION FOUNDED: 1972 PRESIDENT: Louis

Evagelou

SERVICES: Commercial and residential renovations, refurbishment, and maintenance AREA OF OPERATION: GTA PORTFOLIO: Amica,

Crossbridge Condominium Services (Formally known as Brookfield Residential Services) DEL Property Management, FirstService Residential, ICC Property Management, Larlyn Property Management Ltd., Maple Ridge Community Management Ltd., Northcan Property Management, Wilson Blanchard Management ASSOCIATIONS: Association

of Condominium Managers of Ontario (ACMO) & Canadian Condominium Institute (CCI)

Currently, there are 25 talented individuals on my team, all of whom are highly skilled at their trade. When I look for talent, the ﬁrst thing I search for is the right attitude, along with a strong work ethic. With each individual who joins our team, no matter how long they’ve been in the industry, I take my time to mentor each one in my style, techniques and ﬁnishes. This focus has been critical in building a strong team.

What’s next for TDC? We have many ongoing projects and proposals in the pipeline. Personally, I’ll be approaching retirement in a few years, but I look forward to staying partially active in supporting TDC as it continues to grow.

Louis Evagelou is founder and president of Toronto Decorating Corporation. For more information, visit www.torontodecorating.com

Author: Matthew Bradford is an industry writer with MediaEdge Communications.

Louis Evagelou, President Toronto Decorating Corporation

TECHNOLOGY

Intruder alert: Integrated security solutions add new layer of protection â&#x20AC;&#x153;Security is always too much until the day that it is not enough.â&#x20AC;? This quote, coined by former FBI BY SCOTT HILL director William H. Webster, perfectly

summarizes the physical security industry. The irony of this fact is that a wellfunctioning security solution is transparent to the end-user. It is only if the security system fails that it comes to the attention of management.

For this reason, both developers and condominium boards have shown some reluctance to invest in high-end security methods. There are many good reasons for this hesitation. Previously any security system over and above a camera system (referred to as a video surveillance system or VSS) has been seen as an upgrade due to the cost of the equipment and of running cables. Recent advances in the equipment have made VSS, and other technologies, much more useful and affordable to condominiums. New technologies, such as network video recorder (NVR) cameras, have reduced setup costs because no cables are required. All these cameras need is a power source and

an Internet signal. These cameras also have remote-monitoring capabilities, meaning end users can view footage from off site, which helps reduce false alarms. Advances in technology have also introduced solarpowered security cameras, although a security professional would be hard-pressed to recommend that this be the sole source of the VSS at this time. Further advances mean that corporations can now store information for months, years, or indefinitely should they choose to do so. Besides improving the functionality, expandability, and accessibility of existing security solutions like video cameras, advances in technology have also opened

16 CONDOBUSINESS | Part of the REMI Network

up new possibilities for security solutions in condominiums. Security technology, like all technology, has a life cycle. Technology rapidly becomes obsolete as new advances are made, which has the benefit of lowering costs. Security solutions that would have only been affordable to large government organizations 15 years ago are routinely installed in all types of businesses now. Biometric access control systems, such as fingerprint locks, are readily available, and affordable. One of these security solutions, the intrusion detection system (IDS), is slowly being incorporated into the integrated condominium security solution. The goal

TECHNOLOGY of the integrated condominium security solution is to detect, delay or deter intruders accessing or attempting to access the condominium. Locks, fences and signage are meant to delay, or in the best case, deter unauthorized access to the facility. Video systems and intrusion detection systems are meant to detect, and in some cases, respond, to an intruder. IDS come in many different forms. There are systems triggered by motion, sound, pressure, or the act of opening of a door. The motion sensor is perhaps one of the most common. Placed in the high corner of a room, facing outwards, this small device is wired into a system and will trigger an alarm when motion is sensed. The alarm could be as simple as a loud noise that alerts nearby residents that an intrusion has been recorded (and scares off the intruder). Or the alarm can be wired into a monitored security system, which will allow a dispatcher to send out trained personnel to deal with the issue. Door window contacts, typically installed in residences and offices, are another common intrusion detection device. When a door is opened, an individual is required to enter a (usually numeric) password to prevent an alarm from sounding. As with motion sensors, the alarm sounded could be a noise meant to act as a deterrent, or it could be tied into a system to dispatch a response. On occasion, this system is mistakenly categorized as access control, but in reality it is intrusion detection. The roll out of these types of IDS measures reflects a security concept called “protection in depth,” which sees that assets are protected by rings of security measures. Although the asset might be secured behind a locked door, if the key is lost or stolen, then the thieves would have unlimited access to the asset. Proper security design builds in safety measures and security redundancies/ contingencies to ensure that any asset is not protected by a single source. A large part of conducting condominium security audits is ensuring that such redundancies/contingencies are in place. The more valuable the asset, the more impact its loss will have on a condominium. The bigger the potential impact of loss (sometimes referred to as criticality) to the condominium, the more integrated (and layered) security measures should be in place to protect the asset. The brain of the security system is called the physical protection system (PPS), which is usually a computer that contains

the database for the access control, among other things, and runs the video surveillance system. Condominium security audits suggest that there is a tendency to monitor the area where the PPS is stored with equipment that is controlled in the same area that it is monitoring. Take, for example, a security camera located in the security office, with the computer that controls the cameras in that same office. This is an example of poor security design, because once an intruder gains access to the office, he or she has the ability to destroy or alter the security system. Proper security contingencies would dictate that this area be covered with additional layers of security, such as intrusion detection systems. With all these advances, condominiums are sometimes paralyzed in moving forward with the purchase of newer or different security measures. They feel that the technology will be obsolete in short order. This is true — no matter what, the equipment will become obsolete. However, it must be understood that obsolete does not mean ineffective. A security system might have older or dated equipment, but it is performing properly. This

is because the security system was properly designed to ensure that the equipment met the condominium’s security requirements. All security systems should be designed to be integrated with one another as well as allow for growth and expansion. There is an adage that any security is better than no security. However, a condominium must ensure that their security budgets are spent with the best return on investment in mind. As the cost of technology comes down, condominiums can employ an increasingly wide variety of security measures to protect their property and residents. To ensure best protection for the facility, condominiums should look at integration and security layers when considering upgrading their security to a more modern protection system. The tools are out there — it is just a matter of proper planning. 1 Scott Hill of 3D Security Services has been a practicing RCM with ACMO since 2012, a Physical Security Professional (PSP) with ASIS and a Certified Security Project Manager (CSPM) with the Security Industry Association. 3D Security Services is an industry leader in physical facility security with a specialization in condominium security.

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CONFLICT MANAGEMENT

Communicating more effectively during difficult discussions It can be tempting not to have a difficult discussion. Even though an

BY MARC BHALLA

uncomfortable situation will almost always persist — or even worsen — if nothing is done to address it, the discomfort, anxiety and stress associated with speaking about an issue can make procrastination a very attractive option.

18 CONDOBUSINESS | Part of the REMI Network

CONFLICT MANAGEMENT

This is especially the case in the condominium environment as directors, property managers and residents often hesitate when they first face the potential of having a hard conversation. It can seem easier to send an e-mail or template letter than to address a matter in person — in part, because best practices encourage record keeping — however, impersonal options often intensify rather than ease tensions and are rarely the best way to raise a concern. There are many potential reasons why people avoid difficult discussions. A situation may pose emotional triggers or raise delicate subjects. There may be dread surrounding the reaction of the person on the other side of the discussion — he or she might get angry or react in a way that hurts an ongoing relationship. There may be uncertainty as to the outcome of bringing up the matter, and potential risk that doing so may not improve the situation but worsen it. To this end, the status quo may even offer a degree of comfort. Mediation concepts apply to these types of considerations. In weighing whether or not to try to address an uncomfortable situation, a person often considers the different options that are available and goes with the choice that seems best. Weighing the options The option of doing nothing is typically only appealing for so long. Eventually, a person reaches a point where he or she no longer feels that a situation is tolerable or may somehow miraculously improve on its own. Rather than agonizing over the unknown and getting lost in the world of what-ifs, spend some time reflecting on the situation. What makes it difficult, and what could improve it? What is known and unknown about a circumstance? Who is involved? What is the root of the issue? Say, for example, a condominium resident is regularly annoyed by the loud barking of a neighbour’s dog. Perhaps the difficulty in addressing it is not wanting to be seen as a complainer and not wanting to risk upsetting the neighbour. There may even be fear that raising the issue may cause the neighbour to retaliate — perhaps making counter-complaints about noise. A factor that may increase the difficulty of the situation is the forced ongoing relationship between neighbours — before, during and after the conflict. It may not be important for neighbours to be the best of friends, but developing friction can be quite uncomfortable. It could perhaps even get worse with each chance encounter, leading them to purposely try to avoid each other as they go about their business in and around their homes. The thing is that the constant barking is annoying to the condo resident, increasingly so with each passing week. The resident’s mind turns to more extreme options, choices that would surely escalate the situation but seem more appealing as emotions rise with the negative impact on the enjoyment of his or her home. Raising the issue Think about the best strategy for raising an issue. Select the delivery, tone and approach of the message based on what is most likely to achieve the desired outcome. It’s possible to present the situation in a positive and encouraging way. One approach would be to gently express to a neighbour that his or her beloved pet

www.REMInetwork.com | July/August 2017 19

CONFLICT MANAGEMENT

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can be heard from one’s own unit, and offering to work together to address the issue. Compare that to another approach, such as referring to the dog as an ugly, smelly, flea-infested nuisance who should move out at once. That being said, it’s not possible to control another person’s reaction. In her “guide to conquering life,” YouTube sensation Lilly Singh illuminates this with a video game analogy. Specifically, she points out that video game players can only control their character — as opposed to other characters or circumstances in the game. Remembering this fact of life and thinking about the controllable a s p e c t s o f a s i t u a t i o n — o n e ’s own behaviour — c an productively complement a good communication strategy. Imagine the worst possible response and think through how to respond. In many condominiums, everyone is a stranger. However, when neighbours are able to put names to faces, exchange pleasantries as they go about their business and otherwise get to know one another, it can be much easier to approach uncomfortable subject matter together. It is much easier to consider how best to approach a situation and reflect on the reality of the situation with a better understanding of those involved. Planning and strategizing the best ways to approach a difficult discussion and to carry oneself, even when it may get emotional, can help answer when to address an awkward situation and lay the foundation for constructive next steps. Too often, people wait until a situation has gotten worse than it needed to be to find their voice and take active steps to address an issue. Communicating positively, earlier on, can often make these t ypes of interactions far less painful. 1 M a rc B h a l l a h o l d s t h e C h a r te re d Mediator (C.Med) designation of the ADR Institute of Canada, the nation’s most senior designation available to practising mediators. He focuses his mediation practice on condominium conflict management. Marc leads the C O N D O M E D I ATO R S . c a t e a m a n d manages MarcOnMediation.ca.

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CONDO UNITS

TOTAL

FirstService Residential Management Canada

129,160

Wilson Blanchard Management Inc.

515

Crossbridge Condominium Services

Pacific Quorum Properties Inc.

392

Del Property Management Inc.

64,000

78,722

Crossbridge Condominium Services

384

Rancho Management Services

38,132

Rancho Management Services

324

Wilson Blanchard Management Inc.

Gateway Property Management Corporation

255

Pacific Quorum Properties Inc.

25,627

Del Property Management Inc.

250

AWM-Alliance Real Estate Group

22,865

AWM-Alliance Real Estate Group

242

Gateway Property Management Corporation

19,753

KDM Management Inc.

185

ICC Property Management Ltd.

18,553

ICC Property Management Ltd.

158

KDM Management Inc.

13,535

34,009

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CONDOBUSINESS WHO’S WHO 2017 RANK

UNITS

BUILDINGS

RANK

UNITS

BUILDINGS

AWM-Alliance Real Estate Group

22,865

242

Gateway Property Management Corporation

19,753

255

250

ICC Property Management Ltd.

18,553

158

FirstService Residential Management Canada

129,160

1,371

Crossbridge Condominium Services

78,722

384

Del Property Management Inc.

64,000

Rancho Management Services

38,132

324

KDM Management Inc.

13,535

185

Wilson Blanchard Management Inc.

34,009

515

Apollo Property Management Ltd

11,420

118

Pacific Quorum Properties Inc.

25,627

392

GPM Property Management Inc.

10,106

Vero Property Management

10,000

Royale Grande Property Management Ltd.

8,200

Icon Property Management

8,000

Percel Inc.

7,920

360 Community Management Ltd.

7,338

Dorset Realty Group

6,500

Nadlan-Harris Property Management Inc.

6,235

Canlight Management Inc

6,000

A.A Property Management

6,000

Shelter Canadian Properties Limited

5,514

Royal Property Management

5,000

BayShore Property Management

4,287

ComField Management Services Inc.

4,100

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CONDOBUSINESS WHOâ&#x20AC;&#x2122;S WHO 2017 RANK 26

UNITS

BUILDINGS

RANK

CitiGroup Properties Limited

3,026

Devon Properties Ltd.

190

Summa Property Management

149

Lawrence Construction/Grant Management

128

Shepherd Village Inc.

115

Firm Capital Properties Inc.

Landmark Properties Inc.

Loncom Property Management

Ronmor Holdings Inc.

Marklyn Management

Lanesborough Real Estate Investment Trust

Fyrst Avenue Property Management Inc.

Glenview Management Limited

Creative Realty Corp

Skywater Property Management

3,000

The Enfield Group Inc.

2,471

Colliers International

2,398

Martello Properties Services Inc.

2,186

Berkley Property Management Inc.

1,950

Around The Lakes Property Management Limited

1,680

Downing Street Property Management Inc.

1,507

Connium Management Inc.

1,200

G3 Property Solutions Inc.

1,175

Lionheart Property Management Inc.

1,115

Warrington PCI Management

981

Taft Management Inc.

928

Westcorp

716

Huntington Properties Ltd.

465

Regional Group of Companies Inc., The

424

Prospero International Realty Inc.

281

Sterling Karamar Property Management

228

Arnon Corp.

218

UNITS

BUILDINGS

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COVER STORY

CHECK-IN TIME BY MICHELLE ERVIN

The City of Toronto has released proposed regulations for short-term rentals. While they have seen early signs of support, there may also be some shortcomings for condo communities to consider as the draft rules head to public consultation

COVER STORY

“It is currently very difficult for condominium corporations and property management teams to enforce short-term rental regulatory compliance.”

Since short-term rentals arrived on their door step, condo corporations have been grappling with how to handle home sharing in their community. Do their governing documents allow it, ban it, or say nothing about it? And if not, do they need a rule? Condo corporations are not alone in grappling with how to respond to the new realities of the sharing economy. The City of Toronto first responded to the car-sharing apps that have disrupted the taxi-cab industry with regulations and has now turned its attention to setting rules for home sharing. Some condo board directors would like to see municipal regulations support efforts to enforce condo rules outlawing short-term rentals. But the regulations as proposed in Toronto last month might actually limit the ability of condo corporations to make community-specific rules without providing measures to make sure the practice only occurs in communities where it’s permitted.

Proposed regulations City of Toronto staff have proposed limiting short-term rentals — defined as paid accommodations stretching fewer than 29 days — to principal residences. Basically, the person offering the short-term rental must primarily live in the home or unit they’re listing, which would rule out commercial operators renting out multiple units and condo owners renting out secondary residences. “Condominium boards would continue to be able to utilize their existing authority to further limit or prohibit short-term rentals through a declaration, bylaws or rules,” states a staff report to executive committee. Under th e p ro p o s e d re g u l at i o n s , operators of short-term rentals would be required to register with the city and platforms for short-term rentals, such as Airbnb, would require a license. Both groups would be subject to fees designed to recoup the city’s administration and

28 CONDOBUSINESS | Part of the REMI Network

enforcement costs, and operators may face a contemplated short-term rental tax. Operators would also be required to comply with relevant laws, including noise bylaws, and give emergency contact information to guests. Registrations could be revoked for reasons including criminal activity at the property that results in convictions. Platforms would be accountable for dealing with problem operators and removing the listings of unregistered operators. They would also be obligated to convey information about municipal rules to operators, disclose data wiped of identifying details to the city on a quarterly basis as well as data with details about operators on request by the city’s municipal licensing and standards division. The city’s zoning bylaws would be updated to include a “short-term rental use” in residential buildings in lands zoned for mixed and residential uses. “It should be noted that short-term

COVER STORY

rentals were not previously defined in the city-wide zoning bylaw or other zoning bylaws, and therefore are currently not permitted,” states the staff report. The proposed regulations for shortterm rentals in Toronto saw early signs of support, with a few exceptions, when the staff report went before executive committee in June. Many short-term rental hosts welcomed rules, provided that they’re fair. Other stakeholders, including some condo board directors, expressed general support, adding that rules would have to be accompanied by adequate enforcement and penalties in order to be effective. Outstanding concerns Some of the outstanding concerns included condo residents operating short-term rentals in breach of corporation rules and short-term rental platforms saddling condo corporations with the extra costs that come with increased C foot-traffic in their buildings. M “If a unit is to be rented by a condo Y resident, evidence must be provided that the condo regulations allow short-term rentals,” CM Steven Tufts, a member of the Fairbnb MY Coalition, told executive committee. “While CY some condos are open to such activities, CMY many are not.” Mara Epstein, a condo board president K and representative of the Bloor East Neighbourhood Association, suggested to executive committee that condo documents or lease agreements could be used during the registration of operators to verify this. “It is currently ver y dif ficult for condominium corporations and property management teams to enforce short-term rental regulatory compliance by both property owners and their tenants,” said Epstein, “as we have extremely limited authority and an ever-growing lack of bandwidth to do so.” Epstein added that she would like to see a list of condo buildings that allow short-term rentals created through self-identification. Chicago took a similar tack when it moved to regulate home-sharing, introducing a list of buildings that prohibit short-term rentals, which now contains more than 1,200 communities, including many condo associations. For the Residences of Maple Leaf Square, which attracts a lot of short-term rental guests, the increased wear and tear on common elements was a concern.

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COVER STORY

“I’ve yet to experience these wild parties or a guest that has been cause for complaints.”

“Elevator reliability — already a major problem in our City — suffers from the extra usage brought by short-term rentals,” wrote Davin Michael Garg, VP of TSCC 2130, on behalf of his condo corporation. “We are also not equipped, financially and otherwise, for the additional demands on our security, cleaning staff, property management, and insurance. “Amenities such as the pool, gym, and terrace also see higher need for maintenance and repair.” In this letter to executive committee, Garg argued that it’s not fair for condo owners and residents to absorb the associated uptick in expenses. He called for the regulations to hold short-term rental platforms accountable for compensating condo corporations for what he said should be costs of doing business. Responsible hosting “I’m here to greet my guests when they arrive, and to supervise, and do not burden our concierge by having them drop keys off,” said Nick Christoforou, who told executive committee that the guests who have rented the spare bedroom in his condo unit on a short-term basis have been quiet and respectful. Alyas Ali, who offers his condo unit for short-term rental when away, shared a similar experience, saying he is considerate of his neighbours in home sharing. “It’s fine to have a great time, but it’s important to remember that these are people’s homes, and I’ve yet to experience these wild parties or a guest that has been cause for complaints at all,” said Ali. The staff report detailing the proposed regulations showed that the city received 20 noise complaints about short-term rentals via its 311 line over the span of close to threeand-a-half years. Airbnb employee Todd Hofley pointed out this figure to executive committee, decr ying the “anecdotal evidence” and “hyperbole” in portrayals of how home-sharing is affecting condos.

Hofley also serves as president of his condo board and of a residents’ association representing 18 condo corporations in Liberty Village. He listed off noise and party complaints as being among the many issues he confronts as a condo board president, but described them as a fact of multi-residential living as opposed to a side effect of short-term rentals. “As a president, all of these issues are real, they are substantive and they are of constant concern, but they are also occurring all the time, across the city, in every condo or rental building,” said Hofley. Although largely welcoming of rules, some short-term rental hosts urged against additional restrictions. “I hope to continue sharing my condo without a night cap [a limit on the number of days within a set timeframe a home can be offered for short-term rental] and doing it responsibly,” said Vanessa Tam, who told executive committee that she rents out a spare bedroom in her condo unit on a short-term basis. Potential shortcomings Condo lawyer Rod Escayola, a partner at Gowling WLG, observed that shortterm rentals are a polarizing issue. While some condo communities are hoping the regulations will help back up rules against home sharing, Escayola said he has heard from upset condo owners in corporations with declarations that specifically permit short-term rentals. They bought into the community with the expectation that they would be allowed to rent out their unit on a shortterm basis, Escayola explained. Now, if the regulations are adopted as proposed, those who own units as investment properties or secondary residences may no longer be able to do so. “That limitation, which appears to be creating the greatest amount of waves, is only going to address a relatively small portion of the “problem,” if there is a problem,” said Escayola, pointing out that, by the city’s own

30 CONDOBUSINESS | Part of the REMI Network

estimate, the proposed regulations would only eliminate about 30 per cent of the short-term rental activity currently occurring in Toronto. The proposed regulations would curtail the ability of corporations to create communityspecific rules by allowing them to tighten but not loosen their rules compared to the city’s baseline rules. “By having a blanket set of rules at the city level, you’re taking away one of the tools that the corporation had to build the community that they wanted,” said Escayola. “And at the same time, you’re still expecting them to do most of the policing in any event.” The condo lawyer advised that best practices for condo corporations are to have clear rules in place and to communicate and enforce them. Some communities take a more proactive approach to enforcement than others; he suggested the amount of effort exerted should be proportional to the nuisance caused by short-term rentals. Another shortcoming of the regulations as proposed is that they neglect to require short-term rental hosts to provide guests with condo rules as it requires hosts to provide guests with safety and security information, said Escayola. The condo lawyer said he will be watching to see what impact, if any, public consultations will have on the proposed regulations. Public consultations The proposed regulations could change as they head to public consultations next. Staff are expected to report back to the municipal licensing and standards committee on the proposed short-term rental regulations and to the planning and growth management committee on the accompanying zoning bylaw changes before the end of the year. At this time, staff are also expected to recommend possible penalties for short-term rental operators and platforms that flout the rules as well as ways to require proof of principal residence. 1

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LEGAL

Code changes could turn down volume of noise complaints In buildings containing multiple dwelling units, it is inevitable that

BY MEGAN MACKEY

residents will hear their neighbours. Condominium lawyers are frequently contacted

about noise issues. People often ask: Just how much noise is too much? What kinds of noises are condominium residents expected to put up with, and when is the condominium corporation required to step in? Should the neighbours be blamed, or poor construction? Can the developer be held accountable for noise transmission in new condominium buildings? Condominium corporations can implement and enforce rules to eliminate noise caused by behaviour issues such as raucous parties. This article discusses noise that cannot be addressed through behavioural changes. Noise transmission can also be attributed to construction or design deficiencies. Fortunately, noise problems caused by the building itself can be resolved through remedial work. There is an improving understanding of sound attenuation. More importantly, the provincial authorities, responsible for building standards, are

finally taking notice of this problem and are preparing to introduce requirements relating to sound transmission that could cut down on noise complaints. Condominium corporations should retain engineers with expertise in noise issues if construction or design deficiencies may be causing or contributing to noise complaints. This is because sound engineers can confirm whether there is a problem that needs to be addressed and provide concrete recommendations on how the situation can be improved.

32 CONDOBUSINESS | Part of the REMI Network

Using specialised equipment, acoustical engineers can objectively measure the volume of noise entering a unit. If the condominium is subject to rules or agreements regarding permissible levels of noise, the level of noise entering the unit can be compared against the requirements to determine whether it is excessive. If the condominium does not have requirements pertaining to the transmission of noise, acoustical engineers can compare the noise levels against recommended guidelines for sound exposure in dwelling units. If

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MANAGEMENT LEGAL

It is anticipated that as a result of these changes, condominium purchasers will be able to hold builders accountable for noise issues.

the noise is within acceptable levels, the complaint might be dismissed. If the noise is considered to be excessive, further action will be required. If an engineer determines that noise being transmitted into a unit exceeds required or recommended levels, the condominium corporation must investigate and intervene where it is appropriate to do so. Individuals exposed to high levels of noise often report sleep deprivation and adverse impacts on their physical and mental health. Condominium corporations are required, by section 117 of Ontario’s current Condominium Act, to ensure that dangerous conditions do not exist within units or the common elements. Permitting unacceptable levels of noise in a unit is a breach of the act because it can physically harm residents. There are two ways of addressing excessive noise transmission: by eliminating either the source of the noise or its path of transmission. In some cases, the problem may be resolved at its source by replacing outdated equipment or servicing equipment with moving parts. If this is not possible, the path of noise transmission should be addressed. Noise can be transmitted through building components such as floors and walls. Structure-borne noise transmission, or vibration, is a common problem in condominiums bec ause mechanic al equipment is often installed in close proximity to dwelling units. Impact noise, due to objects being dropped or dragged, is common where dwelling units are stacked. Structure-borne noise can be addressed by isolating the source of the noise from the structure. “Isolators” such as hangers, springs, or rubber pads can be used. Noise can also travel directly through wall and ceiling assemblies. Some residents report hearing their neighbour speak in a low voice. This problem is usually caused by poor construction or poorly designed wall assemblies. One condominium, which was converted from a church, experienced severe noise transmission between dwelling units.

Investigation revealed that the demising walls (between units) did not even reach the ceiling! This construction flaw in the lofty ceilings was hidden behind large structural beams. All of the noise issues described in this article can be attributed in some way to the builder. The builder may have failed to install mechanical equipment in accordance with the manufacturer’s recommendations, failed to ensure that construction was completed according to the specifications, or designed a building without proper soundproofing. However, this lawyer is not aware of many cases where builders have been held accountable for noise transmission into residential units. Most buildings experiencing noise transmission between units actually meet or exceed building code requirements. The problem is that the building code has not addressed noise transmission in a meaningful way. In 2010, minimum standards for sound transmission were introduced into the National Building Code. The 2010 code requires demising walls between residential units to be designed to prevent a certain amount of noise transmission. However, the 2010 code only mandates requirements pertaining to wall assembly design. The 2010 National Building Code does not address structure-borne noise transmission from materials flanking demising walls and does not contain any limit on the volume of noise that can enter a dwelling unit. Consequently the 2010 code does not address the practical reality of noise transmission. Fortunately, the situation is changing. In 2015, the National Building Code was revised to include minimum requirements for apparent sound transmission (ASTC) and materials flanking demising walls. “Apparent sound transmission” is the total sound that enters a residential unit through all possible transmission paths. The 2015 code therefore regulates the volume of noise actually heard by residents, as opposed to regulating construction features. When the new building code requirements are

34 CONDOBUSINESS | Part of the REMI Network

implemented in Ontario, dwelling units experiencing excessive noise will not meet code. It is anticipated that as a result of these changes, condominium purchasers will be able to hold builders accountable for noise issues through Tarion or through construction deficiency lawsuits. These requirements may be phased into the Ontario Building Code in January, 2019. The changes to the building code will not be retroactive. Buildings that met code when they were constructed are considered code compliant. Existing condominiums can still work towards quieter units. The following steps may help to reduce noise transmission: 1. Require rugs and acoustical under pad on at least 75 per cent of flooring within dwelling units. This will dampen sounds coming into units and will minimize sound reverberation within units. 2. Require all equipment, including washers, dryers, treadmills, and speakers, to be on vibration isolators. 3. When noise issues are reported, retain a contractor to ensure all holes and gaps between units are sealed. Poorly sealed electrical outlets and pipe penetrations can result in sound (and smoke) transmission. 4. When replacing mechanical equipment o r b uil d in g c o m p o nent s , ensure soundproofing is factored into the design. Although this will no doubt increase the cost of the work, it is likely to reduce problems in the long run. 5. W hen units are renovated, insist upon materials and designs with high soundproofing ratings (especially when carpet is being replaced by hardwood flooring). Sound transmission into dwelling units is incredibly frustrating for affected residents. Noise issues should not be ignored. Condominiums that address noise issues will have happier residents and, in all likelihood, higher market values. 1 Megan Mackey is a partner at Shibley Righton LLP.

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LEGAL

Court ruling opens door to patients growing medical marijuana in condo units

A recent court decision may have opened the door to medical marijuana

BY JAMES DAVIDSON AND CHERYLL WOOD

patients to grow a limited number of a marijuana plants in their condominium units for personal use, and condominium corporations may not be able to stop them.

36 CONDOBUSINESS | Part of the REMI Network

LEGAL

In Allard v. Canada, four individuals argued that federal regulations passed to control the use of medical marijuana were unconstitutional. In a ruling issued February 24, 2016, the Federal Court of Canada agreed and confirmed the rights of authorized marijuana users to grow marijuana for their own purposes. From 2001 until 2013, the federal government’s Marijuana Medical Access Regulations allowed patients with authorization from a medical practitioner to gain lawful access to marijuana in one of three ways. Authorized patients could either designate someone to produce marijuana for them, purchase marijuana directly from Health Canada, or cultivate their own marijuana plants. In 2013, the federal government replaced those regulations with the Marijuana for Medical Purposes Regulations. One of the key changes was to remove the rights of authorized marijuana users to grow their own marijuana. The new regulations forced them to purchase marijuana from a licensed producer. In response to the Allard decision, the federal government replaced the Marijuana for Medical Purposes Regulations. The new Access to Cannabis for Medical Purposes Regulations allow authorized individuals to grow a limited amount of marijuana for their personal use (or to have someone do this growing on their behalf). Registered patients who intend to grow their own medical marijuana must comply with the requirements under these latest regulations. The regulations include provisions to help maintain safety and security of patients, growers and surrounding communities. Moreover, registered patients are required to comply with all relevant provincial/territorial and municipal laws, including bylaws respecting zoning, electrical safety, and fire safety, along with all related inspection and remediation requirements. If patients do not comply with the regulations, they are in violation of the Controlled Drugs and Substances Act and the Criminal Code. Even though, prior to 2013, a patient with a doctor’s prescription had the right to grow marijuana, there was relatively limited public awareness of medical marijuana at the time. More recently — particularly as a result of the Allard decision and the subsequent changes in the regulations — there is a drastically increased awareness of the right to grow medical marijuana. These latest regulations raise several issues for condominiums. Most importantly, it appears that authorized individuals (patients who need marijuana for medical reasons) may now have the right to grow a limited number of marijuana plants, for their own use, in their units. Condominium corporations may not be able to prevent this. In many cases, registered patients will be entitled to accommodation by their condominium corporation under human rights law. Therefore, condominium corporations would be obligated to accommodate these individuals to the point of undue hardship, meaning that the corporation might have to allow marijuana cultivation, in such cases. While condominium corporations may not be able to prevent such marijuana cultivation, they can certainly regulate the marijuana cultivation by way of a rule. It is recommended that condominium corporations consider passing a rule stating, among other things, as follows: • Only registered patients (persons with an established medical need) may grow marijuana. • The cultivation must comply with all applicable federal regulations. • The cultivation also must not cause any harm to the property or any disturbance to other persons.

• The grower must advise the corporation of the cultivation, and the corporation may access the unit at any reasonable time, on reasonable notice, to observe the cultivation. In some cases — for instance, where humidity levels are a particular concern in the building — it may be possible to consider a rule prohibiting all plant growing (including marijuana growing) in the units. This is something to be considered on a case-by-case basis. There are also some other issues for condominium corporations to bear in mind. Increased energy/water consumption Someone who is growing marijuana for personal use may use significantly more hydro or water than other occupants. In a condominium corporation where water and/or hydro consumption are included in the common expenses for the units this may result in inequities. The Ontario Small Claims Court reviewed this issue in Metropolitan Toronto Condominium Corporation No. 659 v. Truman. In that case, Mr. Truman had a permit to grow marijuana for personal use (presumably under the Marijuana Medical Access Regulations) and he did so in his unit. Mr. Truman’s growing of marijuana resulted in a significant increase in overall water consumption. The declaration for the condominium stated that the common expenses for the corporation included “water, except such that is used for commercial and industrial purposes, and except hot water.”

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LEGAL

Someone who is growing marijuana for personal use may use significantly more hydro or water than other occupants.

The court found that Mr. Truman’s use of water was not “for commercial or industrial purposes.” However, the court found that Mr. Truman’s use of water was disproportionate to his allotted share of common expenses and this was inequitable and unfair. As a result, the court said that the condominium corporation could recover excess water charges from Mr. Truman. This case demonstrates the need for condominium corporations to be aware of the potential financial impacts of marijuana cultivation, and to take steps to mitigate the effects. Smoking in units Smoking of marijuana in a unit is another matter entirely and is subject to a separate set of considerations. Smoke migration and

the impacts of second-hand smoke can apply documents and make changes as necessary to all types of smoke, including marijuana to protect the health and safety of all smoke. A smoking ban would also normally residents. Furthermore, corporations should apply to all types of smoke. Condominium consider the potential increase in expenses corporations that are smoke-free should due to marijuana cultivation. 1 ensure that the language is broad enough to cover marijuana smoke. Even so, an owner James Davidson is a partner at Davidson with a medical need for marijuana might have Houle Allen LLP, and has been practicing the right to smoke, depending on numerous condominium law for more than 34 years. He considerations in each case. The point is represents condominium corporations, their that growing marijuana in the unit and then directors, owners and insurers throughout smoking that marijuana in the unit are two eastern Ontario. entirely separate considerations. And these issues will only increase if Cheryll Wood is an associate at Davidson Houle Allen LLP, and has been practicing marijuana use is legalized. In summary, the growing and use condominium law for four years. She of marijuana are important issues for represents condominium corporations, their condominiums in the future. Condominium directors, owners and insurers throughout TorontoDecorating_Condo_November_2016_FINAL.pdf 1 2016-11-10 eastern Ontario. corporations should review their governing

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GOVERNANCE

Much a-doo about dogs An informal survey conducted in Toronto found that there is an average of

BY GARRY BRADAMORE AND DAVID SPENCER

seven dogs per floor in most condominium buildings. That’s 280 pooches in a typical 40-storey building. With the average dog producing roughly 120 kilograms of waste every year, it’s possible to appreciate the kind of issues property managers and residents are dealing with. The City of Toronto suggests there isn’t enough public property to handle the growing number of pets. The municipality wants to see more pet amenities introduced on privately managed properties. Most new multiresidential builds are adding amenities such as dog runs, designated poop-and-scoop areas and pet wash systems, while older properties are looking to retrofit them. In addition, as the Canadian Public Health Association (CPHA) has pointed out, dog

waste is toxic, and the viruses, bacteria and parasites found in dog waste can cause disease. With children and other dogs being particularly susceptible to the diseases transmitted by dog poop, this issue extends well beyond the inconvenience of dog poop on a person’s shoe. So, what to do about the increasing concentration of pets and pet waste in condo communities? Some condo boards in Toronto have

40 CONDOBUSINESS | Part of the REMI Network

recently chosen to ban pets from properties. Another option that is relatively new in Canada is dog DNA registration, which matches waste to offending pooches. The aim of such programs is not to catch and fine pet owners for not scooping their dogs’ poop, but instead to make residents aware that they can be caught and held accountable for not being responsible pet owners. When it was rolled out across the U.S., the program’s introduction alone was enough to change

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The aim of such programs is not to catch and fine pet owners for not scooping their dogs’ poop.

behaviour, with only a small number of fines actually being issued. Before proceeding with a dog DNA registration program, it’s important to educate residents about a condo corporation’s existing pet policies through emails, flyers and notices. Explain the health risks posed to other residents and pets when they don’t scoop up after their pooch. Also publish the estimated cost of clean-up per incident, including estimated costs of damage to grass, trees, flowers and sidewalks as well as carpet, wallpaper and furniture. And don’t forget to mention the $240 City of Toronto fine for not scooping. If there isn’t a drastic reduction in pet waste within 30 days of posting educational notices, the board has at least informed residents of their obligations to the property. It is now the board’s obligation to protect all residents from potential health risks, protect the corporation from any liability associated with said health risks and preserve property assets. If the board decides to pursue a dog DNA registration program, it will have to answer some questions. Will the dog DNA registration firm or property management company manage the program? And will the dog DNA registry be rolled out to existing residents or begin with new residents? The board should ensure that the firm it selects complies with federal privacy laws. If the firm provides prepared pet policies, they should be reviewed by the condo corporation’s legal counsel to identify whether they require any customization. Most condo boards make dog DNA registration mandatory by passing a rule. The condo board has to carefully consider the terms to make sure the rules conform to its declaration and the Condominium Act. If the issue is significant, the board may want to go further and try to obtain the requisite unit owners’ support to pass a bylaw establishing mandatory DNA registration.

Convince your CEO to join social media

If the condo board passes a rule, it must send an initial notice to all residents, informing them of the decision, why it has been made and what is to follow. If the 30-day notice period for the new rule expires without a challenge from owners, the board must then send a second notice providing instructions on how to register dogs, which involves using a cheek swab kit. Lastly, the board needs to determine the number of waste sample kits required and the procedure for processing any dog waste found on the premises. The dog DNA registration firm should also provide ongoing updates of registered pet certificates to be crossreferenced with a list of known pet owners. Going forward, developers may want to consider enshrining mandatory pet DNA registration provisions in declarations when condo corporations are first registered. In the meantime, existing condo corporations tackling the issue must take a fair, balanced approach to enforcing rules relating to dog waste, following the law and the specific provisions of their declaration. 1 Garry Bradamore brings 25 years of marketing and service expertise to the introduction of PooPrints Canada, which was launched in September of 2016. His projects gravitate toward environmentally conscious products and services; through technology, software, recycling, energy and waste. For more information visit: http://www.pooprintscanada.ca or call: 1-844-477-8877 David Spencer earned his B. A . from Queens University in 1980, his LLB from Osgoode Hall Law School in 1983 and was called to the Ontario Bar in 1985. D avi d h a s b e e n with S R Law s i nc e 2001, and became a partner in 2009. For more information visit: http://www. srlawpractice.com

By Steven Chester If your company’s leader is still resisting social media, they’re unfortunately not alone. But as businesses evolve and attempt to attract younger employees and clients, the results of a recent Ryerson University survey should be enlightening. The survey found that 53 per cent of the country’s top CEOs are on at least one social media platform, and only 16 per cent are using more than one. Despite the many benefits, fear remains a major factor. Stories of misuse and blunders abound daily; however a desire to remain positive can go a long way. Not surprisingly the bar to entry is quite low. According to the report: • While 45 per cent of CEOs surveyed have a LinkedIn account, only 50 per cent have a profile picture, and only 33 per cent have a biography. • Only seven per cent of Canadian CEOs in the top 100 have Twitter accounts. On average, CEOs followed just 65 users – showing a high level of disengagement with the outside world. • Seventeen per cent of CEOs studied have Facebook accounts. Nine of those accounts were publicly viewable, with 78 per cent of posts being personal in nature and only two per cent promoting their business. Active CEOs were sharing several different types of content on social media, including thought leadership, philanthropy, mentorship and governance – a great game plan to play it safe and still promote your company in a positive light. It’s time for business leaders to swim with the tide. Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.

www.REMInetwork.com | July/August 2017 41

MANAGEMENT

Contract changes could undermine proposed elevator-repair legislation A s p r o p e r t y m a n a g e m e nt professionals may know, Bill 109, the

Reliable Elevators Act, passed

BY RAY ELEID

its second reading, meaning that the proposed

legislation is moving closer to becoming law. The act states that in most buildings, if an elevator breaks down it must be repaired within 14 days after the day the contractor first learns of the problem. This is unless the regulations allow otherwise, a provision likely reserved for fire, flood or other acts of God. If the elevator company fails to repair the elevator within the proposed time frame, then a financial penalty can be imposed on the offending contractor. What MPP Han Dong, who introduced the act, may not know is that the elevator industry is moving away from all-inclusive maintenance agreements. These agreements cover all work not related to force majeure. Instead, the industry is moving toward contracts focusing on minor parts and expert labour maintenance. This is a significant issue that has the potential to undermine the act and turn the table on elevator owners and managers.

Today, for the most part, when building owners and managers sign an elevator service agreement, they enter into an allinclusive agreement with the elevator contractor. This agreement covers callbacks (elevator breakdowns), maintenance repairs, maintenance tasks required to maintain the equipment under the code, as well as major parts such as ropes, sheaves, bearings, motors, etc. This is provided the failure did not occur under conditions beyond the elevator companyâ&#x20AC;&#x2122;s control, such as flood, fire, or any act of God. But some contractors are excluding all or most major parts from their agreements. They donâ&#x20AC;&#x2122;t explicitly indicate in their agreement that the part is not excluded, they just donâ&#x20AC;&#x2122;t mention the part in the inclusion list. So, the typical property manager may not know what parts are included or excluded, and sign the agreement as they have done many times

42 CONDOBUSINESS | Part of the REMI Network

before. Only this time, they may be surprised by what happens when the major parts require replacement. If the act becomes law, elevator consultants and industry insiders strongly believe that elevator contractors will unload the cost of the major elevator parts onto building owners and managers. Long-lead repair items, such as obsolete parts, ropes, motors, drives and valves, are likely to be added to the list of items not covered under the contracts, or that the elevator contractor cannot be fined for (or, as previously stated, they will just not be mentioned at all). Elevator consultants and industry insiders also believe that contractors will shift the blame to the elevator owner and the fines will be levied on the building owner and managers, not the contractors. When the long-lead major parts are not part of the elevator maintenance program, then the

MANAGEMENT contractor is not responsible for it. How can a company be fined if it is not responsible for the product? And since the material is not part of the contract and purchasing the parts will require lead times and payment, the contractor cannot be blamed or levied with the responsibility. Most responsible business entities, such condos, require multiple proposals for costs exceeding a certain amount. Anyone who is familiar with the elevator business can appreciate the cost of parts and labour is not cheap. The elevator trade is one of the top three highest paid trades and the barriers to entry are high. Therefore, this act may preclude the building owner from performing due diligence, driving up prices and the cost for failure. That’s because the owner is left with one of two options: price check and face hefty fines, or pay now and get the work done as soon as possible. What if the act calls for fully inclusive maintenance agreements and requires contracts to include major parts? If an elevator contractor that installs proprietary equipment refuses to sign the agreement, the result is no elevator maintenance. Proprietary elevators

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cannot function without the support of the elevator industry and the original equipment manufacturers. There is also the issue of obsolescence, which could force the building owners and managers to modernize their elevator equipment, as elevator contractors will not agree to fully inclusive contracts on outdated equipment. Another unintended outcome of this act could be safety. The “penalty clock” starts after the day the contractor first learns of the problem. So in some cases the property owner or manager could demand to delay the shutdown until the part is ordered. This could also happen if the elevator contractor responsible for the part does not have access to the part and decides to order the part before shutting the elevators down. The unintended consequence of such a request is the possibility of elevators operating in an unsafe or unreliable condition in violation of other, safety regulations. What can building owners and managers do? 1. Install truly non-proprietary third-party controllers;

2. Sign contracts designed by elevator consultants or owner advocates — and know what is being signed; 3. Ensure annual inspections are being performed on the elevators and the contractor is recording the deficiencies; 4. Have a plan to order long-lead items; 5. Modernize elevators older than 25 years; and 6. Ensure that, on a monthly basis, a building’s elevators are getting a sufficient number of maintenance hours. (The recommendation for roped elevators is two to four hours; for hydraulic elevators, it’s one to two hours.) 1 Ray Eleid, P.Eng, MBA, is a consulting engineer. As a graduate electrical engineer, he has worked for two international elevator companies, one national elevator company and Canada’s largest elevator consulting firm. Ray has more than 27 years of elevator-related experience in various capacities as an elevator mechanic; maintenance supervisor; training coordinator for new product development; construction and modernization supervisor; branch manager; operations manager; and now an elevator consultant.

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2017-03-15 1:41 PM

MAINTENANCE

How to send persistent pests packing Add ressing a persistent

pest BY DR. ALICE SINIA problem in condominium properties can be challenging. There are numerous factors that can affect pest activity, including property location, environment, climate, landscaping, building design, sanitation and maintenance practices. These factors must all be considered when developing an effective pest management program. The best defense against pests is being proactive with a preventive approach. Integrated Pest Management (IPM) assesses all of the factors that could affect pest behaviour and finds the root cause behind pest issues. Once the problem is eliminated, this strategy aims to prevent future issues from occurring. Some of the most troublesome pests for multifamily properties include ants, gnats and pest birds. Here are some tips to help rid a property of the following persistent pests should an infestation occur: Pharaoh ants This notorious, invading pest is easy to miss because of its size and colour. Worker ants reach only two millimetres in length and their yellow to light brown colouring can often appear translucent. Found mostly in warm and moist environments, pharaoh ants are the most persistent of all ant species and are especially common in condos. A few stray ants may even be ignored during the early stages of activity. Unfortunately, the issue can grow quickly as ants build their colonies and move easily from unit to unit. These ants can infest almost every area where food is available, traveling along electrical wires and plumbing to

disperse throughout buildings. A single colony may contain as many as 2,500 workers. Another reason why this pest is so problematic is because they can form small nests in unlikely places, such as in shoes, closets, folded clothing, boxes, drawers and even in between sheets. First, itâ&#x20AC;&#x2122;s important to positively identify pharaoh ants. They are often mistaken for other ant species, which is a common cause of treatment failure. Once pests have been positively identified as pharaoh ants, they can be treated appropriately. Do not spray pharaoh ants with residual or contact insecticide. This kills only about five per cent of the foragers and can actual split up the larger colony into smaller colonies. Instead look for domestic insecticide for ants or specifically for pharaoh ants, including gel, granular or jelly. It is very important to read and follow label directives. Before placing the bait, locate forage trails using non-toxic pre-bait. Put a small amount of food on a one-inch index card and place the cards in strategic locations around the unit and by all rooms. Once forage trails have been located, place several baits along the trail and replace them frequently. Note that it can take several months before control is achieved, so a condo board

44 CONDOBUSINESS | Part of the REMI Network

or property manager may want to leave this treatment to professionals. Fungus gnats Although fungus gnats are most active during months of warmer weather, they are a concern year-round as they can produce multiple generations within the year. Unlike some other small flying insects, fully mature fungus gnats often remain low to the ground, close to plants and soil. They may congregate on windows or glass doors because they are incapable of traveling great distances, and such gatherings can indicate a nearby infestation. Most infestations will occur indoors as fungus gnats can breed in potted plant soils or other moist areas with build-up of decaying organic matter, such as where leaks or water damages have occurred. Most outdoor sources are a result of over-watered flower beds or other moist areas located near the building exterior. For effective long-term control of fungus gnats, it is critical to find the breeding source and eliminate it. A common source is indoor potted soil or an atrium, so look for the presence of adults around plants. Keep in mind that allowing soil to dry between watering will kill larvae and turning or raking

MAINTENANCE

the mulch frequently will allow more drying time to kill larvae. It’s also important to identify and correct indoor moisture problems such a leakages or excess condensation. The larvae feed on mould or any fungal growth associated with moisture, so if such conditions exist in building, fungus gnats will be a problem. Installing domestic insect light traps will help in reducing active adult population, but will not control the infestation. Exterior residual treatment can be performed, but needs to be done by a licensed professional. Outdoor lighting can also attract fungus gnats, so replacing exterior lights with sodium vapour lamps can help prevent attraction. Nuisance birds Birds such as pigeons or starlings are not only a nuisance but can carry mites, lice and disease-causing pathogens; therefore, they become a health hazard for residents if left untreated. Nesting in electrical-related areas is a fire hazard. Similarly, nests and droppings can block air intakes, vents and gutter spouts. A major issue with birds is caused by the uric

acid found in excess droppings, which causes prevent nesting and seal openings and gaps in exterior walls to help prevent access to those deterioration of building structures. Birds play a vital role in the ecosystem, so nesting sites. For exclusion techniques such as the use of any pest management measures should fully comply with the Ministry of Natural Resources netting, bird spikes, coils and other repellent Fish & Wildlife Act and Environment Canada’s devices, condo boards and property managers Migratory Bird Act. These regulations protect should work with professionals. With the right strategies, it is possible to some bird species, while allowing for humane resolve persistent pest problems caused by methods of pest bird control. Since some species are protected by local ants, gnats and nuisance birds. After such a or national laws and regulations, these types problem has been resolved, condo boards of infestations can be particularly difficult and property managers should work with their to treat. It is recommended that condo pest management to protect their properties boards and property managers work with from pests in the future. 1 a pest control professional in cases of bird Alice Sinia, Ph.D. is Quality Assurance infestations. Consequently, the treatment of bird Manager – Regulatory/Lab Services for Orkin infestations tends to focus on prevention Canada focusing on government regulations measures, such as educating residents pertaining to the pest control industry. With about the negative impacts of pest birds, more than 15 years of experience, she advising residents not to feed pest birds and manages the Quality Assurance Laboratory for Orkin Canada and performs analytical encouraging residents to report any sightings. Other prevention measures relate to entomology as well as provides technical maintenance, including trimming tree limbs support in pest/insect identification to branch and other vegetation back and away from offices and clients. For more information, buildings to discourage roosting near the email Alice Sinia at asinia@orkincanada.com or BrownBeattie_GTA_March_2017_FINAL.pdf building. Also screen vents or air intakes to visit www.orkincanada.com. 1 2017-02-01 10:36

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NEW AND NOTABLE

Updated timeline released for condo law reforms Changes originally slated to take effect this summer are now slated to roll out in the fall The Ministry of Government and Consumer Services has released an updated timeline for the roll out of condo law reforms. A new tribunal that will provide alternative dispute resolution services for certain types of disagreements is among the many Condominium Act changes that will take effect this fall, on Nov. 1. So is licensing for condo managers and condo management providers under the Condominium Management Services Act. The rest of the Condominium Management Services Act is due to take effect in early 2018, on Feb. 1. The Condominium Authority of Ontario is due to receive its designation Sept. 1 as the administrative authority established under Condominium Act reforms. Its role will include overseeing the new tribunal, which will provide dispute resolution services for disagreements over records. The Condominium Management Regulatory Authority of Ontario is due to receive its designation Nov. 1 as the administrative authority established under the Condominium Management Services Act. Its role will include licensing condo managers and condo management providers.

Sept. 1, 2017

The Condominium Authority of Ontario (CAO) will receive its designation and begin responding to inquiries from condo directors and owners.

Nov. 1, 2017

The CAO will begin providing director training, which will be mandatory for directors elected from this date onward. The CAO will also begin providing dispute resolution services for disagreements relating to records. Licensing requirements for condo managers and management companies will start to roll out.

For the stakeholders who are trying to understand the impending legislative changes, fact sheets and plain language guides are coming, the ministry reported. There will also be new forms to help condo corporations fulfill new obligations under the Condominium Act. And condo managers can expect to see educational and exam requirements announced soon. There will be more opportunities for stakeholders to weigh in as the ministry develops additional regulations. Future rules will create a code of ethics, complaints procedures and set insurance requirements for condo managers as well as establish a public registry of condo corporations. New regulations under the Condominium Management Services Act and reformed Condominium Act regulations were originally slated to start taking effect this summer, on July 1. Find the most up-to-date coverage of the coming condo law reforms at www.reminetwork.com.

Dec. 31, 2017

Assessments for the first seven months of the CAOâ&#x20AC;&#x2122;s operations will come due on this day. Condo corporations will be required to collect from owners and remit the monthly fee of $1 per voting unit that will help to fund the dispute resolution, education and information services provided by the CAO.

Feb. 1, 2018

A code of ethics for the condo management industry, as well as licensing and appeals committees, are slated to be in place. Complaints about licensees will be subject to review.

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