Water leaks 101, capital project deferrals, preventing plumbing disasters, shared condo costs, and tips for hiring independent contractors
Trusted for over 65 years, we are your proven performer within the Condominium Property Managers and Commercial Real Estate Market. We’re proud to be your premium choice, full-service exterior contractor for large municipal, industrial/commercial, and private projects.
“Being proactive turned out to be a really valuable resource. ”
Over the past few months, a couple of condo owners reached out to us with concerns about special assessments they were facing and couldn’t afford. Their dilemma is increasingly common these days, given rising construction costs and the inadequacy of reserve funds to pay for major repairs and replacements. To address this growing issue, a team of engineers gathered in February for a CCI Huronia discussion about the possibility of prolonging the life of building equipment to defer capital projects. Their perspectives may help other condos. They also describe real-life scenarios, which can be found on page 24.
In this issue, the majority of maintenance-dedicated articles span across seasons. They address plumbing disasters, water leak liability and management, how to prevent unwelcome costs when hiring independent contractors, and new legal cases that address cost-sharing among condos.
Developers are also facing financial conundrums. A story on page 36 looks at the insolvency facing new projects.
And speaking of new condos, one Canadian developer is piloting the residential version of a global health and well-being standard that also targets existing buildings (page 31). The program creates a pathway for people-first communities and helps scale healthy housing, which can greatly support mental health.
We wish you a peaceful spring. As always, please feel free to reach out with questions or story ideas.
Rebecca Melnyk Editor, CondoBusiness rebeccam@mediaedge.ca
Educating residents about the deeper meaning behind proper waste handling
The stakes are high for condominiums when it comes to seizing waste-diverting opportunities as households continue to be large contributors to landfills.
As the latest report on municipal solid waste generation in Canada shows, between 2002 and 2020, overall waste rose by 17 per cent to reach 36 million tonnes. Although diversion from residential sources increased by 85 per cent during this time period, the amount of waste sent to disposal rose by 29 per cent. Data also varies depending on the province. Ontario produced the most residential waste for disposal in 2020 (3.8 million tonnes), a
decline from two years prior, but still 11 per cent higher than in 2002.
Promoting responsible waste management practices in condominiums can include enforcing rules when necessary to maintain high standards and engaging residents in conservation resources.
Cameras can be used to take videos and photos to identify emerging issues and
BY KWAME ANANE FREMPONG
report to property management, such as the improper disposal of waste materials and sharp objects that are harmful to cleaners.
Residents who break waste management rules often claim that there is only one chute in their building. While most modern condos have separate chutes for garbage, food waste, and recycling, older buildings may only have one chute. This can lead to
improper disposal of various types of waste. While it may be inconvenient for residents to separate their waste and bring it to the designated room, this does not justify breaking the rules.
The waste management of sites can be audited and necessary information shared with property managers. Cleaning supervisors can send monthly reports and infographics to property management and area managers who then share them with condo boards. Key information contained in these reports may include the number of times in a month that garbage and recycling machines had a maintenance issue and the cause of odours found inside garbage chutes and compactor rooms.
On designated days, cleaners and superintendents can move waste and recycling bins to secure locations for scheduled pickups to protect them from vandalism or unauthorized use.
By placing bins in a secure area, such as a locked storage room or enclosed space, the bins are less likely to be tampered with. This helps to ensure that the waste and recycling materials are properly collected, handled, and disposed of in an environmentally responsible manner. Storing the bins in secure locations can also help prevent animals from accessing and dispersing the contents, reducing potential litter and mess in the surrounding area.
After residents who violate waste disposal rules are given a warning, property management can decide to issue fines after a second warning. Each building has specific waste management rules for its residents. Common violations include dumping large items in the garbage chute room instead of the designated location in the garbage room, as well as leaving food waste in the chute room instead of disposing of it properly. These violations can result in fines being imposed. It goes to the board bank account to maintain some of the building’s expenditure.
Health and safety is a powerful motivator for encouraging residents to adopt responsible waste management practices. By highlighting the potential risks associated with improper waste disposal, such as con -
tamination of water sources, air pollution, and the spread of diseases, residents are more likely to understand the impact on individuals and communities.
Using scent-free cleaning detergents approved by property management is also a health-friendly strategy. Cleaners often apply these detergents in waste/garbage and compactor rooms.
Since residents enter designated areas in the garbage room to deposit items like batteries, bulbs, electronics, etc., into a labeled bin, a working partnership with companies collecting recyclables and hazardous materials is essential.
Understanding the deeper meaning of proper waste handling—for instance, protecting ecosystems and reducing greenhouse gas emissions—may boost active participation in waste diversion efforts.
Occasionally, sustainability events can inform residents about the deep connection between the environment and waste
management practices. Waste Reduction Week in Canada is structured into seven daily themes, for instance, “Textiles Tuesday” and "Plastics Thursday.” “E-Waste Wednesday” focuses on electronic waste, which is quickly becoming one of the fastest growing waste streams in the world.
Each daily theme can be highlighted and connected to waste management practices in the building. Display educational materials around the common areas: elevator TV screens, TV slideshows in lobby areas, emails and monthly newsletter publications. Residents can learn various facts about it and how to keep various materials out of landfills.
Condos can also tap into outreach programs organized by local municipalities or community groups to raise awareness about proper waste disposal practices. 1
Kwame Anane Frempong is the Client Relations Manager at Diamond Property Services. kwame@diamondps.ca
•
•
•
•
•
•
•
•
•
Waste disposal systems in multi-residential buildings are under a great amount of pressure. Every day, residents pack their garbage down the interconnecting metal chutes which make up a building’s garbage disposal system, culminating in the garbage room. Cleanliness and garbage rooms may not instantly seem conducive, but the sanitary health of the waste disposal room is more important than you think. Here, we learn from the MJW Team the importance of ensuring garbage room maintenance is never overlooked:
1. Hygiene & Pests
“Food waste and household garbage is going down chutes unbagged. This is creating problems.” - Frank Spadafora, General Manager of MJW Team
• Health: Dirty trash chutes are a breeding ground for harmful bacteria and fungal pathogens which can significantly affect resident health. Ensuring a regular cleaning program will alleviate this risk.
• Pest Infestations: If garbage chutes aren’t cleaned regularly, the walls get thick with grease and organic matter. This creates a food source for pests like cockroaches. If waste collection bins and rooms are not thoroughly cleaned, rodents can become a problem. Cockroaches, mice and rats are some of the pests that can thrive in unsanitary garbage rooms, rapidly breeding. A building manager can reduce pest control costs by keeping waste management systems clean.
2. Odour Control
“Every time the garbage is picked up, the bin needs to be washed, and not just with water. We provide industrial degreaser to
building staff—the same product that our teams use when onsite for scheduled cleanings.” - Albert Perri, Accounts and Business Development Manager of MJW Team
• Unpleasant Odours: Regular cleaning helps control unpleasant odours which come from the garbage room making living conditions more pleasant for residents and guests.
• Industrial-Grade Cleaning Products: In-between cleaning visits, MJW educates onsite staff on recommended cleaning products and odour control methods and provides helpful recommendations for day-to-day upkeep. When used properly, the industrial-grade cleaning products give your staff the upper hand with cleaning garbage areas. Coupled with eco-friendly odour control products from shopmjw.com, the dirtiest room in the building can be kept clean, safe and hygienic.
3. Equipment Preservation & Fire Safety Systems
“Regular maintenance and cleaning of a building’s waste system allows for essential repairs to be identified and completed before they become an issue.” - Frank Spadafora, MJW Team
• Damage to Equipment: While the first noticeable sign of a problem is often the lingering smell from the chute, garbage bin, and the garbage room itself, there’s a bigger problem to contend with. Grease, oil and residue eat away at the waste equipment—that’s when things stop working correctly. In addition, the corrosive nature of garbage eats away at floors and waterproofing systems.
• Long-Term Savings: Establishing a regular cleaning regime preserves the life expectancy of waste disposal equipment and saves on emergency repair and replacement costs.
• Fire Safety: A building’s garbage disposal system consists of a network of garbage chutes which collect garbage from building floors and lead it to the garbage compactor. The area is protected from fire by a fire damper, a spring-loaded shield device at the bottom of the garbage chute which is an essential life safety system. “If there’s a fire within the compactor, a mechanism within the fire damper melts away releasing a spring-loaded door so that the fire is unable to travel up the chute,” Spadafora explains.
“Regardless of whether you’ve got a 5-storey or a 60-storey building, the condition of the garbage chute remains dirty and needs to be maintained.” - Frank Spadafora, MJW Team
• Waste Equipment Maintenance Plan: For boards and managers, a specialized garbage room maintenance plan can ensure safer living conditions for residents, cut building maintenance costs, and save time. While the biggest complaints around garbage might be the smell and infestation concerns, the fire safety significance should not be overlooked. MJW offers a convenient waste equipment maintenance plan to make things easy for busy building managers.
• Predictable Monthly Fee: Using a predictable monthly fee, garbage chute maintenance and odour control can be easily built into the property’s annual budget with payments spread out during the year.
• Quality Control and Waste Equipment Inspection: Following a cleaning by MJW, a representative will return to the building to complete a Quality Control and waste equipment inspection. Going floor-by-floor checking chute doors, fire dampers, sorters, compactors and bins, MJW will provide a full report on the mechanical and sanitary health of the waste control equipment. Recommendations for any faulty or damaged parts are noted along with quotations for their repair or replacement.
• Cost Savings: Extending the scope of possibilities, over the course of a three-year commitment, MJW maintenance plan clients ensure priority booking, and are able to take advantage of 10% off any other service offered by MJW, services which include underground and parking lot sweeping, washing and waterproofing, drains and catch basin cleaning, and parking lot striping and painting.
Establishing a regular maintenance plan with MJW for waste disposal systems makes it easy for boards, building owners, and managers to focus on matters which really need their attention. The services offered by MJW play a crucial role in supporting clean, hygienic garbage rooms, positively impacting residents’ health and living conditions, and keeping budget costs down.
MJW Team offers services throughout the Greater Toronto Area, London, Ottawa, and Montreal. To learn how the MJW team can help service your building, call 416-741-3999 or visit www.mjwcanada.ca
Vancouver Council will gain more authority to impose landscaping requirements on new development and hand off responsibility for revoking dog licences under proposed amendments to the City’s charter. The British Columbia government characterizes the enabling legislation, which was recently tabled in Bill 4, as a tool to support Vancouver’s climate change adaptation policies and streamline administrative processes.
Under current rules, Vancouver Council can pass a bylaw to establish requirements for “the provision, maintenance and retention of landscaping” in situations where a developer must seek special approval for a conditional land use or if the development site is located in a designated district or zone where special approvals are required. The proposed amendment would allow the City to broadly apply landscaping
requirements as a condition of any development permit.
Along with t hat, development proponents could be asked to submit supporting plans to show how they will ensure landscaping is introduced or retained and then maintained. They may also be required to produce and submit reports assessing a site’s existing landscape and/or the projected effects of proposed new landscaping.
Meanwhile, Council would no longer have to act as the dog licensing court, with a proposed rule change to allow it to delegate that authority to an animal control officer emp loyed on City staff. Currently, Vancouver’s chief licensing officer can recommend the revocation of a dog licence, but Council must make the final decision. Appeal processes for dog owners would remain in place with any shifting of authority. 1
Looking for a reliable partner to help bring your building project to life?
Look no further than Egis, formerly known as McIntosh Perry. With a staff of over 600 professionals and technical experts, we offer a comprehensive range of consulting engineering and technical solutions that cover all stages of a building project. From concept to completion, we work with you every step of the way to turn your possibilities into reality.
Trust Egis to help you achieve your building g oals with our full range of services for the building industry.
They say that first impressions last a lifetime; this is still the case when it comes to condominiums. A condo’s parking lot is typically the first thing a visitor sets foot on, and a cracked, uneven surface speaks volumes. The condition of the asphalt shows how well a building is cared for and maintained, and hints of healthy financial planning.
Potholes, pooling water, dips and depressions: it’s inevitable these issues will arise. When the time comes to repave your parking lot the work is dependent on budget and weather conditions.
From a contractor’s perspective, a paving project typically begins with a manual survey and stake-out of the current asphalt conditions. This takes time, and involves taking photos, reviewing site maps, and evaluating square footage by using measuring wheels.
Now, new technology is changing the playing field for surveying mechanisms. An innovation known as “SmoothRide” is now available in Ontario, allowing for very accurate, 3D surface scanning of paved areas. Forest Contractors Ltd. are the first in Ontario to o er SmoothRide scanning for roads and are believed to be the first worldwide to be using the innovation to redesign parking lots!
Originally designed for roadways, SmoothRide is the first tech to combine Geographic Information Systems (GIS) and the Global Positioning System (GPS) into a unique paving solution. SmoothRide is designed to optimize the planning, design and execution of road and parking lot repaving projects, making them easier, more cost-e ective, consistently better quality, and less hassle to manage from a disruption perspective.
• Lidar scanning components are installed on Forest Contractor trucks. Using laptops to collect data, the full scope of the paved area is driven at the speed of moving tra c. Over 8500 data points per second are gathered.
• After the parking lot or roadway is scanned, the data is uploaded into the SmoothRide software. The information is then provided to a designer who manually designs the paving requirements based on desired thickness, final grading and smoothness requirements, and who can then optimize how much asphalt is initially removed and later put back.
• Milling, Paving, and Compacting work begins. Machines equipped with GPS are used to perfect grading to the nearest millimetre, to optimize elevations, and ensure that the thickness of asphalt and sub-base assures its maximum lifespan. Increasing the lifespan of asphalt means less asphalt repair long-term!
Proposed slopes scan
Shave and pave scan
CAN INCREASE A PAVING PROJECT’S EFFICIENCY THROUGH:
1. Quicker production speed
Cumbersome and expensive manual surveys are no longer needed; the time to mill, grade and pave is shorter, and there’s greater confidence in the work being undertaken.
2. Improved Accuracy and Visual Reporting
Elevations are optimized and accurately designed at a 1.5-2% slope towards local drainage. Smoothness levels can be madeto-measure using SmoothRide’s adjustable settings. GIS and GPS technologies reduce risks of human error and deficiencies.
The software provides mapped reporting of the existing paving’s condition, allowing Property Managers a better understanding of issues, and a detailed report to share with the Board or engineers and consultants.
SmoothRide reports provide a benchmark which can be referred to in follow-up years to see how the successfully repair work has sustained.
3. Reduced Costs & Timelines
With a better understanding of what’s below the surface, the amount of asphalt removed and subsequently dumped at waste facilities is significantly lowered, and less new asphalt is used for
the repaving process. This is better for the environment, and better for the budget.
The improved fuel economy reduces each project’s carbon footprint, and since the mapping designs provide better project certainty, it is easier to schedule the project within a firm timeline, making it less burdensome for those a ected by the work.
4. Increased Sustainability
SmoothRide Solutions optimizes the removal of old asphalt, minimizing the disposal of millings, and reducing the use of excess asphalt. The prolonged lifespan of the asphalt, coupled
with the elimination of deficiencies and e ciency optimization, results in reduced overall waste on each project. The enhanced e ciency in work completion times also contributes to increased fuel economy and improved air quality, ultimately mitigating Forest’s asphalt plant emissions, and Forest’s environmental impact associated with construction activities.
In cases where there are specific problem areas which may not warrant a full repaving project, SmoothRide makes it possible to complete a partial asphalt removal without removing asphalt in low areas, thus allowing for a su cient slope to be created. This can significantly decrease overall costs to a client and is almost impossible to achieve using traditional surveying methods.
Forest Contractors Ltd. are the first to o er this unique, innovative technology in Ontario. To book a visit with a site representative, or to find out more, please contact 416-951-2159 or visit www.forestgroup.ca
With costs on the rise, many condominiums are choosing to retain independent contractors to provide superintendent and/or cleaning services, which tend to come at much more affordable rates in comparison to larger companies.
Also, by retaining an independent contractor, as opposed to an employee, there is no need for a condominium to set aside funds for vacation pay, benefits and statutory deductions, such as CPP and EI. Independent contractors are also not entitled to reasonable notice of termination or pay in lieu thereof, which can save a condominium thousands of dollars upon the relationship coming to an end.
However, problems arise when an independent contractor provides services to a condominium on paper as “independent contractor,” yet their relationship with the condominium resembles a traditional employer/employee relationship.
In such a scenario, the independent contractor may be deemed by the courts to be an employee for the purposes of termination and, as such, may be entitled to reasonable notice of termination or pay in lieu thereof upon their relationship with the condominium being terminated. This can result in a condominium being forced to pay thousands of dollars as pay in lieu of notice and/or incurring exorbitant legal fees if sued for wrongful dismissal.
BY ASHLEY WINBERGA condominium can safeguard itself from the foregoing risks and benefit from the cost savings associated with retaining an independent contractor by ensuring that the solicitor prepares a carefully drafted contract in advance.
To ensure that the contract achieves its intended purpose, it should contain provisions that reflect the following:
1
If the independent contractor is economically dependent on the condominium, they will be deemed to be an employee for termination purposes. Accordingly, the contract should be non-exclusive and enable the independent contractor to perform work for other condominiums.
The contract should also stipulate that the independent contractor is responsible for arranging and paying for their insurance, remitting their statutory deductions and taxes, and providing all of the tools and supplies required to perform the services under the contract.
If the independent contractor does not have some degree of control over the day-to-day performance of the services, it is more likely that a court will find that the independent contractor is an employee for termination purposes. Thus, the contract should be drafted in a manner that provides the independent contractor with some degree of control over how and when the services will be rendered on a daily basis.
A well drafted contract can only achieve its intended purpose if the parties govern their relationship in accordance with its terms. Accordingly, it is advised that a “failsafe” provision be included in the contract stipulating that if the independent contractor is deemed to be an employee of the condominium if and when the contract is terminated, the indepen dent contractor’s entitlements upon the ter mination of the contract (and consequently their employment) will be limited to the mini mum statutory entitlements provided under the Employment Standards Act (ESA).
If such a clause is not included, the condo minium runs the risk of the independent contrac tor being entitled to notice of termination or pay in lieu thereof at common law, which is always substantially more than the minimum entitle ments provided under the ESA.
If a condominium is considering retaining an independent contractor, it should ensure that its solicitor drafts a contract in advance of one being retained and that the contract contains provisions reflecting these recom mendations. Doing so will allow the condo minium to reap the cost savings associated with retaining an independent contractor, while at the same time, safeguarding itself from having to incur exorbitant costs upon the relationship being terminated 1
Ashley Winberg is one of the leading condominium lawyers in Ontario and is the Head of Corporate Practice at Pulver on Condos, which is a boutique condominium law firm that provides specialized legal services to condominium corporations and unit owners throughout Ontario. Ashley can be reached at ashley@pulveroncondos.com.
Whether the fan coil units are owned by the corporation or the unit owners, the condo board of directors has a duty of care and a financial interest in doing it right the first time.
A fan coil unit (FCU) is the heating and cooling equipment commonly found in condominium and apartment dwelling units. When designing a building, an engineer uses a heat loss calculation, which is a function of the suite’s square footage and exterior insulation, to size each fan coil. The size, measured in CFM (cubic feet per minute of air) or in MBH (thousand BTUs per hour) of every fan coil in the building, usually in the hundreds, are summed and used to determine the size of the chiller, boiler, risers, and pumps. The fan coil units connect to a larger, corporation owned, holistic system.
The useful lifespan of a fan coil is 20 to 25 years, after which there is an increased risk of floods, mold, and compromised indoor air quality. To properly replace a fan coil, regardless of whether it is owner owned or corporation owned, the board should follow these steps to ensure due diligence:
1. Review the original specifications found in the mechanical drawings. Many performance specifications were calculated by hand and are not accurate to today’s performance standards. As a secondary assurance, physical coil sizes should be measured and inputted into AHRI 410 standard software to calculate the performance specifications.
2. Check with the original equipment manufacturer for the shop drawings or request them recalculate the specifications to standard AHRI 410.
3. Ensure the performance specifications of the new equipment align with the existing corporation owned mechanical infrastructure.
4. Ensure the replacement process follows today’s building codes and EACO Level 2 protocol to ensure resident and sta safety.
Example 1: A 30-year-old condominium in Burlington with over 200 units paid $1 million in 2018 to replace their fan coils, and then paid $1.3 million in 2021 to replace them again.
Given the fan coil age and su icient funds in the reserve, the board hired an engineering firm to manage replacement. The fan coil manufacturer chosen to build the replacement had inadequate experience. They attempted to copy the original design, without understanding the nuances of airflow and the need for a third-party performance certification. Consequently, this knock-o unit caused several expensive problems.
The retrofit issues came to light within a year after the project. A resident called Unilux, because their original name plate was still on the access door, to complain about a lack of heating. Upon inspection, Unilux found the knock-o replacement fan coil unit to be under sized. Secondly, they lacked a name plate and a registered third-party inspection mark, such as ESA, ETL, UL, or CSA. These certifications are important to ensure that the mechanical equipment 1) performs as it should, and 2) will not cause an electrical fire. Thirdly, the drain pans had already rusted as the incorrect variant of stainless steel was used. Lastly, there were breaks in the thermal barrier within the cabinet, leading to condensation and drywall damage.
Upon further inspection, these problems were found to be consistent throughout the building. After a two-year legal pursuit for compensation, the board chose to have all 200 fan coils re-replaced.
Example 2: A 43-year-old building in downtown Toronto had maintained a “hands o ” approach to fan coil units, leaving the repair and replacement at the sole discretion of the individual owners. Without having a clear understanding of the communal e ects their fan coil has on the rest of the building, owners looked online for the cheapest knock-o units available.
This continued for many years until the multiple leaks and heating complaints reached a tipping point. In 2023 the board hired an engineering firm to perform an audit which uncovered under and oversized fan coil units and, once again, a lack of third-party certification. The replacement
manufacturers were contacted to provide evidence of a third-party mark but were unable to do so. Due to this, the building has been flagged as a fire risk because the integrity of the electrical components could not be verified.
The board is now debating whether to force all owners to re-replace their fan coil(s) or to hire a third party to certify the electrical components. Either option is costly. Owners are furious because the previous board neglected to vet manufacturers and installers on their behalf.
To learn more, visit www.uniluxcrfc.com
Best practices in the age of deferred maintenance
Plumbing is often an avoided topic until it is not. Nobody likes to think about the ins and outs of sanitation and how water is being supplied to one’s faucet. It’s certainly not a magical place.
Nonetheless, plumbing is a circulatory system of any community, whether it be a building complex or freehold townhomes. Often taken for granted, plumbing maintenance service providers are the unsung heroes of modern infrastructure. They silently work behind
the scenes and on the front lines to provide communities with smooth functioning and flow of water and waste.
However, as time and usage take its toll, plumbing systems deteriorate. Improper and deferred maintenance lead to disastrous results, causing hundreds of thou -
BY VAL KHOMENKO, INGRID KULIK & DEREK SMENDRA
sands in repair and replacement costs of the common elements. There are methods that condominiums must undertake to keep buildings healthy and systems flowing. This is achieved through key plumbing maintenance efforts and strategic replacement schedules.
Plumbing inspections are often overlooked or delayed due to administrative reasons – bid gathering or while seeking approval. The preventative maintenance program of plumbing systems establishes key controls that help prevent water damage, secure energy efficiency, and comply with the pertinent regulations.
The program must include both a physical and administrative approach. An annual full building maintenance program contract can be set up with a plumbing contractor so that all key component areas are attended to and serviced regularly.
Here are best practices to ensure effective maintenance:
Draft and carry out an inspection schedule to identify potential issues.
Check drains for water level and valves for leaks. Regular visual inspection can ensure that the plumbing systems operate within the parameters and that water flows in the right direction.
Implement a preventative maintenance schedule to key components.
Have your kitchen stacks been cleaned? If not, a multi-year program with high pressure power flushing and using the latest manufactured equipment is key to prevention of backups and water damage. Vertical stacks can prevent the costly expense of pipe replacement, since debris inside the pipes eventually will become hard like a rock and cause major blockages.
Have your valves responsible for water supply been checked and calibrated? If not, establish a maintenance schedule for your mixing, pressure regulating and backflow prevention devices to prevent service interruptions. Do you have your area drains and sump pits regularly inspected and cleaned? Otherwise, it’s time to bring that specialized truck to your property to suction the excess water and debris out of the drains.
Maintain the records.
Knowledge is a saviour when it comes to emergencies and maintaining the plumbing systems. Is your valve chart accurate and is the location of each valve known? Does your service provider have the necessary valve chart and equipment locations, including service maps and drawings of all the shut off valves, clean-outs, pumps, other key equipment in case of an emergency? Are they readily available?
Educate the community and staff.
Awareness of the plumbing systems and best practices nurtures and fosters healthy buildings. Residents and building staff need to be aware of the plumbing maintenance not only in the multiplex community but also within homes. When was the last time anyone checked the toilet seals or shut off valves to the water supply in the unit?
Educating residents that dumping cooking waste particles, grease and cat litter, in particular, may cause a major clog in the drain piping system. Cat litter, particularly, will turn into concrete at the first piping offset, and even a plumber’s snake will not be able
to break through the clog which may result in a pipe that may disconnect and cause a major flood.
Are all staff members aware of the emergency procedures and how to communicate with residents when an emergency occurs? Staff templates for different scenarios could be helpful for timely and effective communication between the community, in-person or electronically.
Preventative maintenance can keep the plumbing systems running for a prolonged period. There comes a time when the equipment is at its end of the life span and the system begins to exhibit deterioration. Domestic hot water running at high temperatures in a system not properly balanced at high velocity will quickly deteriorate the pipes and cause leaks in the system.
Installing a Judo filter to the main incoming cold-water line can prevent all the debris found in domestic water piping, which leads to problems with cartridges being clogged up within the units in a high-rise building. The key to success: strategic replacement of plumbing components.
Timing is everything
Strategic replacement of plumbing equipment can deter costly emergencies and ensure longevity of the equipment. The considerations to keep in mind are:
Age and performance issues: As the plumbing systems have a set life span, they could become prone to failures and inefficiencies. Consistent problems with leaks, clogs and corrosions prompt a discussion on full scale or sections of plumbing.
Technological advances. The world of plumbing is flowing in the right direction when upgrading to newer materials, and technologies can improve water flow efficiency, reliability of the equipment and avoid unexpected breakdowns.
Cost-benefit analysis. As replacement is considered, weigh in on the opportunity costs, the avoidance of future repairs and, most importantly, reduction of service.
Environmental cost savings. Did you know that toilets account for almost 30 per cent of an average home’s water consumption?
Consider water saving fixtures, which could drastically reduce the amount disposed, help the environment, and enlarge your pocket.
By implementing preventative maintenance programs and strategic replacement schedules of various components, property managers and building owners can safeguard against costly emergencies, promote sustainability, and prevent costly disasters.
Remember, the water may flow quietly, but the diligence and dedication behind its maintenance speak volumes in preserving the integrity of our infrastructure. 1
With over 45 years of experience in condominium law, DSFM is legal counsel to over 500 condominium corporations, as well as condominium purchasers and homeowner groups, across Ontario.
Val Khomenko, RCM, OLCM is a Regional Condominium Manager with TSE Management Services Inc., providing full-service property management and consulting services in the Greater Toronto Area.
Ingrid Kulik, RCM, CMCP is a Condominium Manager with Icon Property Management Ltd., providing full-service property management services in the Greater Toronto Area.
Derek Smendra is the president and master plumber at ABM Plumbing and Heating Services Inc., a dedicated plumbing company serving condominium, commercial and industrial clients in the Greater Toronto Area since 2005. He can be reached at info@abmplumbing.com.
Whiterose Janitorial Services Ltd. specializes in high-quality industrial, condominium and commercial cleaning and superintendent services.
Founded as a small, family-run Canadian business in 1986, our professional cleaning services company has grown into a multi-faceted business providing a full range of quality cleaning services across Canada.
• Fully Customized Schedules
• Janitorial Services
SERVICES
• Floor Cleaning
• Window Cleaning Services
• Carpet Cleaning
• Garage Cleaning
• Pressure Washing
• Floor Polishing
• Construction Cleaning
• Stripping and Waxing
• Emergency Services/ On Call
• Live-in and Live-out Services
• Daily Readings
• Generator Tests
• Small Repairs
• Mechanical Systems
• Garbage Disposal Services
• Pool and Hot Tub Services
For centuries, locks have secured our possessions, playing a vital role in our personal security. Traditional locks date back to the nineteenth century; some of the names established back then are still household names today. But the most common access credential — the traditional, mechanical key and deadbolt lock — has become outdated. A digital transformation is taking place: the internet, connectivity, and digital technology are merging and integrating into the locking industry ensuring heightened security for today and tomorrow.
We’re already familiar with digitized security in the hospitality industry, where keycards have become the norm. The demand for safer, more secure buildings is now seeing digital technology merging with the multi-residential market.
Recently, options for single-family residential smart deadbolts have boomed. However, their use in multiresidential properties has been limited since they lack integration with access control systems. Physical credentials such as keycards and fobs are now pivoting towards digital technologies like BLE (Bluetooth Low Energy) credentials. It’s as easy as tapping our phones.
“We want technology to make our days easier and seamless,” explains Preston Grutzmacher, Residential Business Leader for SALTO WECOSYSTEM North America. “Investment into the property tech market has risen massively over the last five years. Much of that is geared towards the multi-family market.”
Grutzmacher explains there are clear benefits to using digital tech in multi-residential buildings. “It’s easy to imagine the number of products we use in our homes that
connect to Wi-Fi,” he says, “in a community-based system it can be di cult to manage. Having a larger system that’s not individually linked to each unit but can be managed centrally has value.”
Traditional keys are typically made of six teeth which are easy to manipulate. “If you can see a mechanical key, you can copy it,” he warns. For many condominium and apartment buildings, a master key for all individual units is kept on-site allowing access in case of an emergency. If this key gets into the wrong hands, the results could be costly. Smart locks allow for heightened security, and a way to report and audit. If an investigation is needed, a full record is at hand: the locks read and write data, creating an indelible record of every entry.
“There’s an audit of every turn of the door handle, but this doesn’t mean it’s connected to the internet,” Grutzmacher says. “You want to control when a guest can come in—to give a credential that only works on specific days. Doing this through your smartphone doesn’t mean that your lock is connected to the internet in any way. Through a smartphone, a user can send a digital pass, and this connects with a unit lock or building’s main entry.”
Designed specifically for the multi-residential market, Salto DBolt Touch is a standalone, battery powered smart lock ideal for updating existing mechanical deadbolts. A significant modernization for multi-residential communities, the Salto Dbolt Touch gives the property owner or building manager the ability to install individual locks that connect to the main management platform. Users can use their smartphone, or keycard or fob as their access credential, or choose to set up a PIN code.
Perfect for both new builds and retrofits, the Salto Dbolt Touch is practical for multi-family applications and replaces a traditional deadbolt lock using the same hole — no drilling or wiring is needed.
The Salto Dbolt Touch connects to the Salto Homelok management software. From Salto’s cloud-based Homelok application, building managers can access information via their laptop or computer and single-handedly manage all locks in the facility.
The Salto DBolt Touch is also ready for whatever comes next in the digital locking industry, allowing for flexibility in access control methods, and avoiding the need for hardware changes even as software evolves.
To ensure absolute security, SALTO WECOSYSTEM locks get put through rigorous third-party testing with governmenttrusted agencies. Choosing a trusted brand is important. Salto has partnered with Apple Wallet to allow for Apple credentials to integrate with Homelok.
The nouveau design of smart locks is pleasing to the eye and fits with a modern aesthetic. O ering unparalleled convenience and security, Salto continues to champion new technologies and be a leader in the innovation of digital locking mechanisms. The future is ready to unlock.
To learn how your building can benefit, visit www.saltosystems.com.
Construction cost inflation conjures advice from the field about prolonging equipment life
Many condo corporations are feeling the pinch of inflation, which is putting pressure on reserve funds and prompting special assessments in some cases. While residential construction costs trended down in 2023 compared to the double-digit increases seen in 2022, prices remain higher than they once were due to skilled labour shortages, rising material prices and higher interest rates.
Residential construction inflation was 10.08 per cent, year-over-year in Q4 2023, which is still higher than the long-term average of 4.66 per cent, Chris MacMillan, owner of Avid Capital Reserve Planning, observed during an online discussion, hosted by CCI Huronia. “We have seen exorbitant increases in costs in recent years, which has led to a shortfall in funding for many corporations,” he said.
“The shortfall can be realized in the shortterm when reviewing the bids for recently
tendered work and comparing those costs to your current fund balances or passed budgets. But it can crop up in the long-term when your reserve fund study is updated with current costs and inflation rates are applied to future work.”
The industry panel discussed what major repairs and replacement costs could potentially be deferred by prolonging the life of various building components and what professional resources to seek out for guidance on the matter.
Reserve fund studies include a physical analysis with an assessment of each item to determine its remaining life. MacMillan also noted the limitations of basic studies, which do not include detailed condition assessments or invasive investigations that could generate more options for corporations looking to prolong the life of capital assets.
“Reserve fund estimates are subjective; they are based on planners’ understanding of the life cycle of building components and
their experience gained from observing buildings,” he noted. “We are giving you our best guess; the study is a financial document based on the visual inspection of a sampling of the components where feasible and based on interviews with directors and agents of the corporation.”
Boards may wrestle with the decision around phasing or deferring projects. MacMillan laid out three factors to consider before formulating a plan: a risk assessment to determine potential safety issues such as poor air quality or excessive heat; business interruptions or financial loss; and secondary damage that might escalate costs.
“In weighing those decisions, remember in Section 37 of the Act, a director is not liable if relying on good faith on a report or opinion from a professional,” he noted.
Jeff Livingstone of Pretium Engineering leads the mechanical engineering division. Some invasive en-suite mechanical projects include fan coil replacements, heat pump units and perimeter radiation heating units, which he says can cost anywhere between $500,000 to $5 million depending on the size of a building and whether riser pipes are being replaced.
Domestic water riser replacements are also invasive and can potentially be pushed off every 50 years instead of 40 years, he suggested. At one condo where he was conducting a feasibility study, a condo’s reserve fund study determined its domestic water risers were in need of replacement due to reaching a typical 50-year lifespan. The two 20-storey condos had never experienced a single pinhole leak or pipe failure across those decades, so the engineering team dove deeper into their investigation using ultrasonic pipe thickness testing, which can be used for any type of riser, typically steel, copper and cast iron.
“We were surprised to find the thickness of the piping was actually equal to and in some cases thicker than the gauge of new piping that we would have installed today,” said Livingstone. “They don’t make things like they used to.”
The original cost estimate was nearly $6 million for full replacement of the risers across both buildings, but the project is now being revisited in about 5 years.
“This was an opportunity for a building that could have gone in blindly and done a major renovation, but because they were willing to take the time and do the study, they are now pushing off this major project for some number of years,” he said. “Being proactive turned out to be a really valuable resource.”
Being mindful of scheduled maintenance outlined in the reserve fund is key. Livingstone
described the importance of making sure a chiller receives its mid-life overhaul, which typically happens at the 12 to 15-year mark.
He said this his can cost between $7,500 to $150,000, depending on the size and number of chillers.
“Many property managers and board members have asked me, ‘Do I need to do this’?
The answer is and should be yes,” he stressed. “This is similar to changing the oil in your car.”
A chiller had a bearing failure at a Toronto condo building. This caused one
of the major components to break, ultimately destroying the machine at the beginning of summer. Contractors can identify potential issues at this midlife mark and replace necessary parts to ensure the equipment performs as expected over the next 15 years.
Protecting concrete components and waterproofing
“What we’re seeing is that even though inflation is starting to temper, the actual
construction prices are not, at least if you’re looking at your construction prices from one reserve study to the next; you’re going to see a big jump,” said Jeremy Nixon, an engineer with Brown and Beattie.
Deferring concrete projects for balconies and garages are increasingly seen as an unhelpful strategy. “The costs of concrete tend to escalate at greater rates than are often carried in reserve funds studies,” he noted. “Concrete has the potential to get exponentially worse in time the more you defer.”
Depending on the case, there may be an opportunity to defer if pieces of concrete are not falling off. He also suggested looking at the corrosion of embedded steel. “The longer you leave things un-repaired, the worse they can get,” he said.
In garages, waterproofing should be kept in good condition because the salt that cars transport inside causes steel to deteriorate at an accelerated rate. Nixon said there are pricey alternatives to chloride salt, but the operational cost might save some capital cost over time by extending the element's life.
Methods for waterproofing have greatly evolved over the past 30 years. “There was a time when we didn’t even waterproof our garages, at least the interior slabs, but we learned that was a really bad thing,” said Nixon. “Anyone who operates on one of those older buildings has probably gone through at least one major restoration.
“They are at a bit of a lifetime disadvantage unfortunately. If it hasn’t been totally replaced, you’ll still have those embedded chlorides in those un-repaired areas. With a good waterproofing system on it you’re at least limiting the introduction of new salts.”
Strategies in newer buildings that have been waterproofing for 25 to 30 years are different, he noted. “Increasingly, there is more emphasis on local repair of the waterproofing, perhaps in more regular intervals. Understanding how exponentially damaging unprotected concrete can be should factor into some early thinking.”
Jon Dickson, an engineer with Pretium Engineering, often encounters significant shortfalls when providing cost estimates during the pre-design assessment or design process. For a window replacement project at a Toronto condo, he discovered a shortfall of more than
twice what the corporation had planned in their reserve fund. The updated budget revealed a price tag around $6.5 million.
Due to a lengthy deferral of the window replacement, there was leakage in several units, condensation throughout the building, and temperature imbalances where residents were either overheating or freezing, depending on their unit’s location. The corporation underwent the borrowing bylaw process; however, the majority of owners lived outside Canada. It took them over two years to pass the bylaw to accomplish the work.
“If you are the property manager or board member for a building, which is highly dependent on rentals, so close to universities, schools, etc., passing a borrowing bylaw in your building can be a very difficult process,” he noted. “Just achieving quorum can be difficult.”
Delayed projects could also advance into other capital work. Reserve funds are spaced out to prevent a snowball effect. “If you see a major capital expenditure project coming up in the next few years, I’d recommend you conduct a condition assessment to get what the real value is,” cautioned Dickson. “Make sure that if you do have to scramble, you have time to do so without negatively impacting the building.”
Sometimes, window replacement projects can be deferred to a future year. In one case, a three-tower, 1000-unit condo deferred what would have been a $10 million-plus project.
“The window replacement in their reserve fund is on an as-needed basis, but they were getting to the point where it was needed,” he said. The units, which began leaking one by one, were replaced randomly until the yearly allowance was exceeded. However, this caused an equity issue in the building and a mismatched exterior.
Deciding to do a whole replacement was inevitable, but a conditioning assessment found that 5 to 7 years was a reasonabletime frame in which to defer this line item. The project moved from a localized approach to a wholesale approach.
If corporations cannot pay for the major replacements scheduled in their reserve fund study, they can also question if a problem truly exists. Depending on the case, some work can be completed for the short-term and the rest deferred for a future year.
A two-tower condo of 400 units was experiencing widespread leakage from
the perimeters of the windows. Residents were also complaining about its exterior appearance. The condo planned to undertake a full window replacement, which was more than double the price than anticipated.
It was determined the project could be deferred up to 10 years if current work was executed: full replacement of sealant around the windows, rejuvenating the exterior through painting to address premature corrosion, and localized replacement of the hardware.
“By undertaking a project that was less than eighth of the cost of the replacement, they were able to defer the replacement by 10 years and generate the capital accordingly,” said Dickson. “Looking at the long term, this is likely a more expensive option because you have to access the exterior of the building twice; however, it was really their only option with the financial situation in front of them.”
At another condo, the corporation replaced all its sealant due to leakage through cladding systems, costing around $800,000. But the leakage occurred two years later. “After investigating, we found that the leakage was actually occurring behind the brick; it was a membrane tie-in between the brick and windows, not the exterior sealant,” said Dickson. “If you are choosing to modify the scope, make sure you are modifying the right portion to address the problems that you have.”
Once detailed reports on a building’s condition are sent to reserve fund planners, they can use that information to determine potential options and calculate the impacts on funding needs, suggested MacMillan.
“Perhaps there is a cash flow issue, and slight modifications to the expenditure plan will avoid a special assessment,” he said. “But if the motivation is to keep monthly fees lower, from my experience, just slight deferral of work will not often make much of an impact on paper.”
Bringing in professionals helps with this decision-making, said Sonja Hodis, a condo lawyer with Hodis Law who also moderated the event. “You may have to spend a little bit of money upfront to be able to defer the larger expense down the road, so you need to prepare and budget for that as well.” 1
5 years fixed price contracts available 416-789-7611 www.jermark.ca
The second wave of plumbing failure has arrived. First it was Kitec, which caused chaos and floods in buildings due to the use of two dissimilar metals in the plumbing system. And now there’s another system raising eyebrows, and budget expenditures.
Although on a smaller scale, the newest pandemic in plumbing failure is epoxy-lined plumbing pipes. Around 2010, building owners began relining rather than replacing their piping to save costs. Now, the epoxy linings are failing, causing major blockages in the water and heating systems. A temporary repair to unblock the lines can cost tens of thousands of dollars, and even though fan coil units and heat pumps are often the responsibility of the individual unit owner, buildings with epoxylined heating or air conditioning risers are discovering that since the deficiency lies outside of the unit boundary, the corporation could be responsible for the repair or replacement of the fan coil or heat pump.
“We are finding in some of the newer buildings with epoxy piping that the risers are failing prematurely and causing leaks, some of them catastrophic,” says Mark Cohen, founder of Jermark Plumbing and Mechanical, a company which specializes in high-rise properties. “And we’re finding a lot of older buildings with copper piping are also starting to fail.”
According to Cohen, the industry is currently incredibly busy due to work previously delayed during Covid. “The industry is
still trying to catch up, and the cost to repair water damage is escalating,” he says.
While the process of repiping is invasive for residents, the work is a lot less intrusive and damaging than the possibilities resulting from a flood. Residents will feel more comfortable if they have confidence with the contractors doing the job, and for those receiving and reviewing quotes, that means spending time qualifying the right companies for the job and not jumping at the cheapest pricing.
“I always recommend an engineer be hired and consulted to investigate,” comments Cohen. When the work goes to tender, he urges a Board of Directors to consider the following:
Length of Time in Business: Many new companies try to enter this market and fail, he says, suggesting the company chosen should have experience repiping buildings for “at least 15 years, if not longer.”
Master Plumber’s License: Does the principal of the company hold their Master Plumber’s license or are they renting one from someone that may not be working daily for the company? A Master Plumber’s license is needed to get a business license with the City of Toronto. “Some companies reside outside of Toronto as a way to sidestep the credentials,” Cohen warns.
Ontario College of Trades membership: Insist on having a copy of each plumber’s Ontario College of Trades membership number, and verify they are working for the company you are using.
No Sub-Contracting: Ensure the company does not subcontract the plumbing portion of the project. Make sure this is stated in the tender documents directly.
Make the “A” list: Newer companies with less experience may have challenges completing large projects on time. Ask the “A-listers” to tender the project.
Ten Year Warranty: Request a 10-year warranty on the piping in the tender documents. Despite the known issues with some times of piping, a few buildings have held out and not yet replaced the piping due to the cost and being underfunded. According
Cohen
to Cohen, this is now creating an issue with insurance companies. “Some buildings are being told that coverage for flood is not offered, or the cost of their deductible is increasing to hundreds of thousands of dollars.”
If you’re starting to see four or five leaks in a one-month period, Cohen recommends consulting with an engineer to determine the severity of the problem: “Even if your Reserve Fund says you don’t need to repipe your building for another twenty years—if you’re getting leaks—you need to deal with it.”
Understandably, a Board of Directors may feel nervous about announcing such a big project. Not only is it expensive (does this mean a special assessment?), but it also means contractors coming into private residences to complete considerably noisy and dusty work and making some people uncomfortable. During Jermark piping contracts, a representative will meet with residents to explain what’s going on. “This helps them understand the work and feel better about the project,” Cohen explains.
In a high-rise, plumbing failures don’t go unnoticed. If you have concerns or questions, Mark invites you to email him directly at mcohen@jermark.ca. If there’s an emergency, use dispatch@jermark.ca. For general information, please contact 416-789-7611 during offfice hours.
Mark Cohen is the founder of Jermark Plumbing. Established in 1982 in the city of Toronto, the company specializes in repiping and plumbing for the high-rise industry. is the principal of the company and holds his Master Plumber’s License. Learn more at www.jermark.ca One of our experience plumbers soldering a domestic hotcold riser Insulation and fire stop installed
Buildings have a huge influence on both physical and mental health and wellbeing. Minto is pioneering the Canadian adoption of an architectural benchmark that addresses this matter in residential communities.
123 Portland, a brand new boutique condominium in downtown Toronto’s King West neighbourhood, developed by Minto Communities, is the first in Canada to pilot the WELL for residential program, which sets out to create healthier, more resilient homes.
The WELL standard came onto the scene 10 years ago and has since widened its scope based on evolving research. Described as a roadmap for creating and certifying spaces that advance human health and well-being, the program has manifested throughout offices and other commercial spaces. It’s been called the first peoplecentred standard for the built environment. By implementing ten wellness concepts: air, water, nourishment, light, movement, thermal comfort, sound, materials, and mind and community, spaces can exceed industry averages in performance and sustainability.
But applying WELL to residential buildings has never materialized until recently. Standards and regulations focused on resident health are lacking overall. Carl Pawlowski, senior manager of sustainability at Minto Communities, says the pandemic is one key motivator that has pushed people to focus on health and well-being in general. This new iteration presents an evidence-based approach that shows what features can actually impact condo residents and staff when they’re inside their buildings. “It gives some trust and validation,” he says.
There is also the larger impact it holds for the overall housing market, according to Olesy Alekseev, vice-president and Canada lead for the International WELL Building Institute. “As we set out to address the growing housing demand for the rapidly increasing population in Canada, it is essential to prioritize healthy homes designed, built and operated for longterm resilience,” he said in a statement last November.
Over the past two years, a team of 20 builders and developers worked alongside more than 100 advisors from the IWBI to bring various insights and recommendations
The exterior envelope is insulated with glazing that offers sufficient daylight and maintains energy efficiency. Photo courtesy of Binyan Studios & Minto Communities.
to the new program, which consists of more than 100 health strategies for both new and existing residences, from single-family homes to multi-residential buildings. When it opened for enrollment last year, 25 pilot participants from around the world jumped on board, including Minto Communities.
Before that, Minto had been pursuing the existing version of the WELL standard at 123 Portland until it switched over midstream. The new residential-focused version doesn't follow some of the traditional scoring framework seen in commercial buildings.
“There are no Silver, Gold and Platinum (certification levels) that you’ll see in the existing standard,” says Pawlowski. “It’s more like a scale, so the idea is more tangible to homeowners where their unit would achieve x number of points out of 198. That’s a bit easier to comprehend how the unit is performing.”
Fundamentally, all the categories of WELL remain the same, but once a developer digs into the details, weighing them might differ within a residential context or due to the technical requirements. Some might be more relevant in a home where people are spending the majority of their time.
There are components that can be tied to the units or common areas. It depends on the exact requirements and where it makes sense to implement features.
“Looking at air quality for example, people are spending all night sleeping in their suite, so maybe you’re going to prioritize that over spending money on a common area where people are there for maybe only an hour,” Pawlowski explains. “In terms of sound attenuation, maybe you’re doing a bit more around the gym or units adjacent to those areas.”
The 116-suite condo has been under construction for a number of years. Residents began moving into their units in December 2023, with more to follow. The Parisianinspired condo has all the fittings one would expect these days—a 24-hour concierge, parcel storage, a co-working space and building-wide Wi-Fi—but there’s much more when it comes to health and wellness.
Those who are using the gym will find noise-reducing flooring and towering windows
for natural light. On the roof, 15-storeys up, are unprogrammed spaces for morning fitness routines and lush green plantings that connect residents to nature. Biophilic design is also incorporated into the interior finishing through natural and textured materials.
To keep air quality high, the design used low volatile organic compound paints, sealants, adhesives, flooring materials and insulation, supported by an ionized air system.
Chemical and scent-free cleaning systems are used in the common areas.
The amenities are designed to “catalyze social interaction,” such as the lounge area. According to the website, they aim to inspire a mindful routine and “reestablish what it means to connect as a community.”
Companies earn the WELL Residence seal upon completion of third-party review and verification of the selected strategies
the developer used. A home must achieve a minimum of 40 points to become certified. Projects can also become pre-certified as a WELL Residence before construction so that developers can communicate that during the sales launch. “People aren’t waiting a year or two after occupancy to get certification; they can see it’s been reviewed and verified before they even make a purchasing decision,” says Pawlowski. “Especially in the market today it is a huge differentiation.”
Pending how the pilot meets certain expectations, Minto will look at its portfolio and consider undertaking the standard elsewhere.
“With the standard being applicable to both new and existing buildings, it also means that if we design a building to achieve 80 points, an individual unit owner can, down the road, make improvements to their suite to bring their score up. That will differentiate their unit versus the rest in the building or other homes in the community.
“This makes it a bit more tangible to them and it gives them an opportunity to be engaged in the process. . . and a framework to work off of. I think that’s really interesting for keeping the program moving forward.” 1
We invite you to join our dynamic team and many satisfied clients.
LOBBIES
AMENITY SPACES
PROJECT MANAGEMENT
CORRIDORS BUILDING RESTORATION
FULL DESIGN-BUILD
PAC Building Group is a full-service General Contra cting firm servicing Southern Ontario, Ottawa and Montréal. We partner w ith our clients to understand their goals and interpret their vision, building spaces that are distinctly suited for each environment. Through one contract and one point of responsibility, we consistently outpace traditio nal expectations.
An upswing in defaulted real estate loans signals a continued downward trend in the market cycle.
Developers with in-progress residential condominium projects are particularly struggling with insolvency, but legal specialists who advise both lenders and borrowers report a growing demand for remedies across all types of distressed properties.
Most discussions I’ve had involve mezzanine lenders, private lenders and those who charge higher interest rates and are more
susceptible to these kinds of upsets in the market,” Norman Kahn, a partner with Aird & Berlis LLP’s real estate group, reported during a recent webinar. “But, from calls I’ve had from some of my institutional clients, I know they’re also getting ready, expecting there will be mortgage defaults coming their way.”
Many creditors and debtors are now grappling with the fallout from a largely unexpected change in market conditions over the
BY BARBARA CARSScourse of their loan agreements. Kahn noted that his 42-year career has thus far encompassed two real estate recessions, but, tellingly, they occurred in the early 1980s and early 1990s. With a majority of today’s real estate players lacking familiarity with those times, he and other Aird & Berlis colleagues offered something of a crash course in the machinations of power of sale, foreclosure, judicial sale, receivership and workouts.
Beginning with the most precarious market segment, Sam Billard, a partner with Aird & Berlis’ financial services group, stressed that condo projects are most vulnerable to unexpected upheaval during the construction period when their financing has been fixed and they can’t generate income until completion. Typically, developers look to presell about 70 per cent of the units and use deposits from those buyers to secure the remainder of their financing. Prior to 2020, they could generally expect to retain 10 to 20 per cent of total funds from unit sales once they had completed the project and paid off the construction loans, but delays and spiking costs have recently eroded those margins.
Statistics Canada has pegged construction cost inflation at about 80 per cent between the second quarters of 2020 and 2022,
which occurred alongside pandemic-related work slowdowns or outright stoppages and supply chain constraints. Even if developers had foreseen that trio of challenges coming, it’s unlikely they could have successfully accounted for it in unit presales.
“When you’re selling on day one, you couldn’t tell people: You have to pay double the (current) market rate to get your condo. Nobody could price that much price increase into a presale contract; you wouldn’t sell it,” Billard observed. “Also, they have been working on slower cycles and delays are rampant. If you start out at 15 per cent recovery on the basis of an 18-month construction cycle and that becomes as 36-month construction cycle, that’s a problem.”
He concludes that most developers in southwestern Ontario are taking losses as
they complete projects. For now, that’s primarily flowing through to subordinated debt holders when lenders are affected.
“It hasn’t got up to the senior secured level yet, but it may get there,” Billard mused.
Power of sale unfolds outside the courts sketched out the relative merits of power of sale versus foreclosure and some scenarios in which each approach may work best for lenders or borrowers. Either action must begin with a series of required steps to give debtors notification and time to repay the loan, but power of sale is typically faster and less costly because it does not involve court proceedings. Meanwhile, Sanjeev Mitra, a partner in Aird & Berlis’ financial services group, explained that receivership, which involves a licensed third party to oversee all aspects of recovering funds owing, is typically more time-consuming and costly than either power of sale or foreclosure, but is often favoured for complicated insolvencies with multiple creditors.
Through power of sale — which is authorized under Ontario’s Mortgages Act (or equivalent statutes in other provinces) and is generally also contractually stated in mortgages — creditors take possession of and sell a property in order to recoup the debt. This option allows them to recover the defaulted loan amount only and makes them responsible for disbursing surplus earnings from the property sale to other creditors and/ or back to the borrower.
On the flipside, lenders have the right to pursue borrowers for the remaining loan amount if the property sale is insufficient to cover the debt. Since creditors don’t take ownership of the insolvent property, they avoid land transfer tax and many obligations that landlords incur, although there are special circumstances for power of sale of a residential complex.
“The other big liability you try to avoid is, of course, environmental issues. So that’s the best way to keep yourself out of it,” Kahn said.
For their part, insolvent borrowers can legally challenge a power sale and require creditors to prove it is valid. Beyond adhering to statutory or contractual requirements for notifying borrowers and providing time repay the debt, creditors must be able to prove the sale price reflects the property’s market value.
“The best practice would be to make sure that you’ve got at least two appropriate appraisals from appraisers who understand the market, and that you have listed the property with an appropriate real estate broker who markets the property appropriately, advertising it widely to the appropriate audience,” Kahn advised. “If you can establish you’ve done that and sold the property within the appraisal values, you are likely to be okay.”
Foreclosure claims often converted to judicial sales
With foreclosure, creditors take ownership of the property in exchange for the debt. In doing so, they pay land transfer tax, relinquish the right to further pursue the borrower and are entitled to keep all profits from the eventual sale of the property. However, other legal mechanisms to protect borrowers makes this a relatively rare outcome.
Foreclosure is a legal proceeding, which begins when the creditor issues a statement of claim. At this point, the borrower can appeal to the court to convert the foreclosure to a judicial sale. If granted, that will force the creditor to sell rather than hold the property and it will reestablish other creditors’ and the borrower’s entitlement to any surplus proceeds beyond the amount owing. Kahn likened judicial sales to the power of sale process, but with court oversight that eliminates the debtor’s ability to challenge its validity.
“If the lender wants to foreclose on the property and the borrower has good grounds to believe that the property is worth more than the amount of the debt, the bar is low to go to court, within a certain time limit, and require the court to turn that into a judicial sale,” he said. “The reason is, the borrower should have the right to redeem the mortgage to pay it off and get an accounting if there are excess proceeds.”
A straightforward foreclosure is most likely to occur in cases where the debt surpasses the value of property. In this, Kahn speculated there could eventually be a payoff if the new owners hold it until market conditions change.
“If you have patience and patient money, you may think: well this property may turn around in the future and I may take a windfall on it down the road with a redevelopment. Foreclosure, in those circumstances, may make some sense,” he mused. “The reason the remedy is not used very often is because, in most instances, a borrower will require you to sell the property under judicial sale so you’re stuck with selling it anyway, especially if the property is worth more than the value of your mortgage.”
Receivership relies on licensed third-party trustee
Receivership unfolds similarly to a judicial sale, but with the third party receiver administering it. In some cases, a mortgage contract will include authority to appoint a receiver, but, more commonly, receivers are court appointed and act as legal officers of the court. WE
Having the technical expertise and insight to conduct retrofit projects in established buildings without affecting the day-to-day business of occupants is our specialty. It’s what sets us apart.
The truth is, existing buildings are far more complex and challenging than new construction, and require a unique game plan every time. It’s why the process for delivering mechanical and electrical engineering solutions requires more than a cookie cutter approach – it demands that you have a deep insight into the building and how new systems can be integrated into existing systems seamlessly.
All of our projects are reviewed by senior engineers, each with over 30 years of experience in their respective fields, ensuring that our clients always receive engineering services of the highest quality.
T: 416-443-9499 | E: marketing@mcgregor-allsop.com mcgregor-allsop.com
“Usually when you’ve got an insolvent situation, all the creditors are scrambling to try to get their money back. The receiver focuses first on monetizing the collateral and then taking steps to distribute to the creditors based on the statutory scheme of priorities — property taxes get paid out first; the first mortgagee gets paid out next; there may be CRA (Canada Revenue Agency) trust claims; there may be unsecured creditors; there may be new claimants,” Mitra said. “It’s complicated, but that’s one of the reasons that you have a court supervised process. It’s meant to get priorities and disputes resolved and moneys paid to the correct parties as transparently and efficiently as possible.”
Receivers also oversee any required emergency maintenance and repairs or ongoing property management, as well as the marketing and sales process. Much of the added costliness of the process is for covering the receiver’s professional services, which, along with property tax, take precedence over other claims.
“If you’re going down this route, you want to know that there’s probably enough equity to pay for this process,” Mitra said. “The other reason you might
be using a receiver is if there are some environmental concerns and the lender doesn’t want to even risk getting associated with the project — let the receiver and the court make the determination as to how the property should be wound down, decommissioned or sold.”
Alternatively, lenders and borrowers may choose to resolve a default collaboratively through a workout. Such a plan and schedule for remedying the debt could be enacted through amendments to the original loan agreement or a forbearance agreement, which is a new contract stating conditions the borrower must fulfill.
“It’s a lot less risky and more efficient to get a voluntary payout than going through the process of enforcement, but it requires a good level of trust and cooperation between the borrower and lender,” maintained Mistrale Lepage-Chouinard, a partner with Aird & Berlis’ real estate group. “On the borrower’s side, it requires a solid plan to remedy the situation. On the lender’s side, it requires some finan -
cial and legal due diligence to determine the strength and weakness of the borrower and the lender’s security.”
Kahn cited a current example in Allied Properties REIT’s recent announcement that it is converting the mezzanine loans it holds on Westbank Corp. developments in Vancouver and Toronto into equity in the projects. The deal, which is expected to be completed next month, will give Allied Properties respective ownership stakes of 90 and 95 per cent — an increase from its previous 50 per cent interest in the Toronto project. “The transactions will reduce Westbank’s debt to Allied materially and afford Allied a large ownership position in two triple-A urban properties as they near successful completion and full lease-up,” the REIT’s announcement states.
“I wouldn’t exactly call it a quit claim, but it’s tantamount to what a quit claim really does and represents,” Kahn submitted. “I assume they think they are better off having an ownership interest than having a debt that is in default.” 1
Water damage in condominium buildings remains a pervasive problem. Yet, there remains a disconnect between the risks of water leaks
and damage and homeowner awareness.
Based on its 2018 c ross-Canada survey of over 3,000 people, Quebec lender Desjardins Group found that water damage was the number one cause of loss among homeowners. Nearly half of those respondents were unaware of the potential sources of water leaks or how to prevent them.
A 2019 Chubb Homeowners’ Risk Survey also revealed that no more than 20 percent of homeowners took pre-
emptive measures to reduce the risk of water leaks in their dwellings despite water damage being among their top three concerns.
Causes of water leaks in condos
Water leaks and damage can significantly impact condominium buildings more than single-family dwellings. In fact, due to the vertical nature and design of condominiums, a water leak in a unit
BY DENIS GAGNON, P.ENG.can negatively impact units adjacent to and be low the affected unit. Water leaks can also impact the building’s common elements, shared utilities, and structural elements.
The potential risks of water damage may vary based on factors such as construction, location and maintenance. The causes of water leaks are often related to materials, installation, maintenance and operational issues. Some
of the most common sources and causes of leaks affecting condominiums include:
Pipe leaks and bursts: Pipe leaks and bursts in domestic, storm, rain and waste piping in condominium buildings can significantly and negatively impact multiple building floors. The causes of pipe leaks in condominium buildings may be due to aging or corroding pipes, high water pressure, water hammering, freezing and thawing, poor design or installation, inadequate pipe support, improperly sealed, connected or soldered joints, pipe blockages and clogs, material defects, external damage, and lack of maintenance.
Roof leaks: Because high-rise condominium buildings often have flat roofs, they are susceptible to water pooling and leaking through roof membranes, often leading to water infiltration into multiple units. Some common causes of roof leaks include improper design, poor roof installation, lack of maintenance, bird or pest damage, aging roof materials, damaged flashing, cracked roof membranes, sealant deterioration,
ice dams, structural movement, and water penetration at poorly sealed rooftop HVAC systems, vents pipes and skylights.
HVAC system issues: Heating, Ventilation and Air-Conditioning (HVAC) systems in condominium buildings are complex, with many components. Depending on the design and requirements of the system, various fluids, including water, brine, and glycol, are used. Refrigerants and oil may also still be present in older HVAC systems. HVAC components vary based on the condominium building requirements but generally include heat pumps, air handling units, fan coil units, cooling towers, boilers, humidifiers, dehumidifiers, pumps, valves, piping and ductwork.
Leaks can be due to poor design or component installation, condensate drain blockage, faulty condensation pans, refrigerant leaks, poorly sealed ductwork, frozen evaporator coils, improperly installed or damaged insulation, faulty pumps and seals, excessive humidity, corrosion of components and piping, vibration and movement, and poor maintenance practices.
Sprinkler system malfunctions: High-rise condominiums typically have sprinkler systems for fire protection, and malfunctions can cause unintended water releases. Common causes of water leaks include corroding metal pipes, fittings and components, freezing and thawing, mechanical damage, faulty sprinkler heads, water hammering, faulty valves, aging components, seal and gasket deterioration, improper installation or system modification, and lack of regular maintenance.
Window and façade leaks: The leading causes of window leaks in high-rise condominiums include poor window installation, damaged or missing sealant, inadequate flashing, cracked or damaged facade materials, defective window frames, faulty joints and connections, lack of waterproofing, material deterioration, building movement, and insufficient maintenance.
Basement flooding: Condominiums may have basements prone to flooding, especially in areas with a high water table. Common reasons for water-related issues include poor drainage systems, high water tables, cracked foundation walls, poor waterproofing, lateral
Water contamination from leaks in condo buildings is typically classified by the source and nature of the water contamination, with each water source impacting the cost of remediation differently. Classifying water contamination can help establish the severity and guide the appropriate response and remediation measures. In addition, it also helps assess the cost of remediation. Professionals generally classify the water source into the following three categories:
Clean Water – Clean or white water refers to water that does not pose an immediate health risk. Clean water typically originates from sanitary or hygienic sources like leaking domestic cold or hot water pipes, sink(s) or bathtub overflows, appliance malfunctions, rainwater and melted snow. While clean water may not contain harmful contaminants initially, it can become contaminated if left untreated or if it comes into contact with other materials.
Grey Water – Grey water contains some level of contamination that may cause discomfort or illness if ingested. This type of water may originate from washing machines, dishwashers, or clean toilet bowls. While it is not as hazardous as black water, proper handling and cleanup are necessary to prevent further contamination and potential health risks.
Black Water – Black water is highly contaminated and poses a significant health risk as it may contain pathogens, toxins, and other harmful substances. Sources of black water include sewage backups, flood waters, and water from sources with a high risk of contamination. Cleanup and restoration efforts for black water incidents require specialized training and equipment due to the severe health risks associated with exposure.
To minimize health risks and additional property damage, it is crucial that unit owners and building managers address water leak damages promptly and that professionals be engaged when dealing with contaminated water.
Many water damage claims can be prevented by taking proactive steps to reduce the risk of water damage. By adopting preventative measures, performing regular inspections and maintenance, and promptly responding to issues, unit owners and building management can help lower the risk.
Unit owners should begin by learning what water damage looks like. They should also learn how to identify and address potential sources of water-related problems and, in an emergency, know how to turn off the water. Owners should also learn how to invest in regular home maintenance. Simple steps to reduce the risk of water leaks and damages include:
• Installing leak detection sensors, automatic water shut-off devices, and HVAC system switches.
• Placing a drain pan under washing machines and flexible water supply lines.
• Avoiding overloading washing machines.
• Checking for corroded pipes and damaged hoses.
• Checking dishwasher door seals.
• Replacing aged water heaters and appliances.
• Repairing or replacing leaking faucets and toilets.
• Setting the heat at a minimum of 18 degrees in units that serve as secondary homes or are unoccupied for extended periods.
Condo managers are also crucial for preventing water leaks and mitigating potential damages to buildings. Water leak prevention programs may include:
pressure from soil, sewage line backups, surface water runoff, faulty sump pump systems, foundation settling or shifting, cracked basement floors, and plumbing leaks.
Appliance leaks: Household appliances, including dishwashers, washing
Regular inspection: Implementing a routine inspection schedule for all key areas prone to leaks, including roofs, windows, foundations, plumbing systems, and common areas. Maintaining a log of leakage occurrences can be very helpful in diagnosing the cause of leaks. Logs should include photos and information such as location of the leak(s), time of day and environmental conditions.
Maintenance programs: Establishing a comprehensive maintenance program for plumbing systems, including regular checks for leaks, pipe integrity, and proper HVAC and fire sprinkler system functioning.
Proper construction and installation: Ensuring the construction and installation of building components, such as roofs, windows, and plumbing systems, meet industry standards and best practices.
Waterproofing: Periodically investing in proper exterior surface and basement and foundation waterproofing to prevent water infiltration.
Landscaping and grading: Ensuring the landscaping and grading around the building directs water away from foundations and that the drainage system is functioning effectively.
HVAC system maintenance: Regular service and maintenance of HVAC systems to prevent leaks from cooling towers, riser pipes, air conditioning units, and associated components.
Sump pump maintenance: If applicable, periodically testing and maintaining sump pump systems to ensure they function correctly in case of flooding.
machines, water coolers, ice makers, water filters and water boiler tanks, can leak and cause water damage.
Common causes include overloading of washing machines, clogged water and drain lines, defective or corroded fittings, seals and pumps, faulty pres -
Pipe insulation: Insulating pipes, especially those in unheated or exposed areas, to prevent freezing and potential bursts.
Emergency response plan: Developing and communicating an emergency response plan for water leaks and ensuring staff and residents know the proper steps to take in case of a water leak.
Education and awareness: Educating residents about water conservation practices and the importance of promptly reporting leaks.
Tenant education: Providing tenants with guidelines on properly using and maintaining plumbing fixtures and appliances to reduce the risk of water leaks.
Up-to-date records: Maintaining up-todate records of building systems, including plumbing, roofing and HVAC systems, to facilitate efficient and targeted maintenance.
Monitoring and technology: If possible, installing water monitoring systems or leak detection technology to identify issues early.
Emergency shut-off procedures: Ensuring that residents and staff know the location and proper use of emergency shut-off valves for water supplies.
Collaboration with professionals: Working closely with qualified contractors, engineers, and other professionals to assess and address potential vulnerabilities.
Regular inspections, preventative maintenance, and an emphasis on resident education can help mitigate water-related issues and leaks within condominiums.
sure relief and bypass valves, frozen evaporator coils in air conditioners, damaged water softener resin tanks, worn-out seals, aging wax seals in toilet bowls, leaking toilet tanks or bowls, and aged seals and loose connections in faucets.
When a leak or flood in a unit causes water damage to a lower or adjacent unit, the responsibility for the cost of repairs typically depends on the circumstances and the specific regulations outlined in a condo’s governing documents and bylaws. Responsibility for damage from a water leak can also depend on the terms of the rental agreement in the case of a rented unit.
Generally, the condo corporation's insurance policy will cover repairs to structural elements, shared utilities and common areas, even when a unit within the building is the cause of the damage. If the water damage results from a common element failure, the corporation's insurance will usually cover the cost of repairs. The corporation's bylaws may determine the
responsibility for the deductible, which can be shared among affected unit owners or borne by the unit owner where the leak originated.
In the absence of negligence or a specific bylaw making a unit owner liable for water damage to another unit, each unit owner and their insurer are generally responsible for the cost of the damage to their unit. Owners must also pay their insurance deductible.
It is advisable for unit owners to promptly report water leak damages to the property management or condo board. Owners
should also quickly report water leaks to their insurance companies that can investigate the cause of the damage and determine liability based on the specific circumstances of the incident.
Legal advice may be sought to clarify responsibilities and rights in complex cases or when it is suspected that a party may have breached a statutory, regulatory or contractual obligation, technical standard or best practice during the installation, maintenance or operation of some of the condo building's structural or mechanical elements. 1
Denis Gagnon is currently the Senior Engineer for Mechanical and Materials Claims at Arbitech Inc. He has more than a decade of experience as a forensic mechanical and materials/metallurgical engineer and expert witness. His project experience in the claims arena has helped determine the root causes of mechanical and material failures through non-destructive and physical testing and inspection of equipment and components to establish evidence-based failure mechanisms.
At Crossbridge, we consistently strive to provide the best possible service to owners and residents alike. As the leading condominium property manager in Ontario, our experienced team focuses on your needs and offers industry-best practices that help to promote operational efficiency and long-term satisfaction.
Great condominium communities don’t just happen on their own. Let our team help.
New cases have shed light on a condo corporation’s obligation to share in the maintenance and repair costs of amenities. In the case of OCCC 574 v. OCCC 573, there was a retaining wall located partially on each property. About 60 per cent of the retaining wall was on the OCCC 574 property, and about 40 per cent of the retaining wall was on the OCCC 573 property.
BY CHRISTY ALLEN AND JAMES DAVIDSON
Theretaining wall was nearing the end of its life, and needed to be rebuilt. There was no registered agreement addressing responsibility for the retaining wall. The two corporations could not agree on the sharing, and this dispute ultimately ended up in Court.
OCCC 574 argued that the cost-sharing should be 60/40 (based upon the relative portions of the retaining wall as actually located on each property). Among other things, OCCC 573 argued that it should only be responsible for 8.11 per cent of the cost, based upon the origi nal proposed location of the retaining wall shown on the original site plan for the development.
The Court agreed with OCCC 574, stating:
“574 owns roughly 60% of the Wall. 573 owns roughly 40%. This suggests the obvious starting point to allocate the costs of repairing and maintaining the Wall. There is no cogent evidence that suggests a fairer way to allocate costs.”
The Court also decided—on the facts of this case—that it didn’t make sense to try to allocate the cost-sharing obligations based upon the relative benefit of the retaining wall to each property. The Court said that the retaining wall clearly benefited both properties and the relative benefit to each was not a helpful or practical method to deter mine responsibility (in this case).
Cost-sharing obligations are further highlighted in the case of CCC 519 v. OCSCC 656 et al. There was an electrical vault on the CCC 519 property containing electric switchgear (ESG) serving three condominiums. Again, there was no registered agreement. The ESG was past its reasonable life expectancy and needed replacement. CCC 519 argued that the other condominium corporations should share the costs (to repair, maintain and replace the ESG) based upon the relative benefit received by each property. The Court agreed, based upon the principle that there would otherwise be an “unjust enrichment” to the other condominiums corporations.
The Court directed a reference to determine an equitable sharing of the costs as between the three corporations. OCSCC 656 appealed the decision, which was upheld by the
The Court also awarded OCCC 574 costs on a substantial indemnity basis, in light of the history of the dispute. The Court also noted the reasonableness of the costs claimed by OCCC 574.
respecting cost-sharing for a shared facility, the goal should be to come up with a sharing that is fair and reasonable in all of the circumstances.
For condominium corporations, these sorts of disagreements about shared facilities should hopefully be reduced if and when the proposed Section 21.1 of the Condominium Act comes into force. By way of summary, Section 21.1 will make shared facilities agreements mandatory in most such cases.
Much of the confusion has been caused by some historical legal precedents which, in our respectful view, are simply not correct in law. The case of TSCC 1633 v. TSCC 1809 is an important example.
TSCC 1809 had the benefit of an easement over part of the TSCC 1633 lands, namely a shared laneway. However, there was no cost-sharing agreement. The Court
James
determined that there was no legal basis on which TSCC 1809 could be forced to contribute to the laneway costs. Respectfully, we don’t agree with the TSCC 1633 decision.
A long-standing principle of our common law is that someone having the benefit of an exclusive easement over another person’s property bears the obligation to maintain and repair the easement lands. In the case of shared rights (for instance, where both the owner and easement holder have the right to use the easement lands), it follows that the repair and maintenance obligations should be reasonably shared.
In the case of condominium properties, note as well that Section 12 of the Condominium Act may create statutory easement rights. Section 12 (1) 4 states as follows:
12 (1) The following easements are appurte-
nant to each unit and shall be for the benefit of the owner of the unit and the corporation:
4. If a corporation is entitled to use a service or facility in common with another corporation, an easement for access to and for the installation and maintenance of the service or facility over the land of the other corporation, described in accordance with the regulations made under this Act.
Note the specific reference to maintenance in the above section.
Easements are also appurtenant interests that normally form part of the common ele ments (accordingly falling within the obliga tions of the corporation to repair and maintain the common elements).
If these obligations are shared with another party, the task is to determine a fair and reasonable sharing, not whether or not the basic obligations exist
Committed to delivering exceptional guardrails, fencing, privacy screens and gates without compromising on service quality. Our innovative designs elevate the aesthetics, security, and safety of your residential, low rise, mid rise, and commercial projects.
One of the biggest decisions that a board of directors will face when owning a condo that is more than 20 years old will be to replace the windows and doors.BY THOMAS NOËL
Boards choosing to query third party expertise on this matter might be looking to make better informed decisions. Here are some tips to help decipher window lingo.
The ENERGY STAR program, which has been evolving since 1992, is a government initiative from Natural Resources Canada (NRCan) and the U.S. Environmental Protection Agency that helps consumers better differentiate products to reduce energy costs and lower greenhouse gas emissions.
To qualify for ENERGY STAR certification in Canada, window manufacturers must subject their products to third-party testing by NRCan accredited laboratories. An energy rating (ER) system is used to help gauge a window's ability
to prevent heat loss, directly contributing to overall energy savings in homes and buildings. This rigorous evaluation ensures that Canadian consumers can compare the energy efficiency of different windows.
A NRCan report in 2018, Paving the Road to 2030: Market Transformation Road Map for Energy Efficient Equipment in the Building Sector, stated that residential windows can account for up to 35 per cent of heat losses in a home, so widespread adoption of advanced window technology could potentially reduce total home energy use by 9 per cent and lower greenhouse gas emissions by more than 5 megatonnes.
U value
Some window companies might promote the U value, which measures how
well the glass of the window prevents heat from escaping the home. The lower the number, the slower the heat loss (better insulating properties) of the glass. The U value is based on the R-value used in construction for insulating walls. You can transform the U-Value (imperial) to R-Value with the simple formula: R-Value = 1 / U-Value.
When comparing U values, make certain to compare apples to apples since some companies will present a U value in the metric system expressed in Watts per square meter Kelvin (W/m2·K) versus the imperial system (US): BTU/ hr·ft2·F.
For example, 1.42 W/m2·K in the metric system equals to 0.25 BTU/hr·ft2·F in the imperial system. Comparing the U value in the same metric or imperial system will give you the opportunity to
Delivering Connected Building Services to make your job easier and your projects more cost effective.
Our connected building services include:
• Project and construction management
• HVAC repair and maintenance
• Electrical
• Building automation
On call for your business needs 24 hours a day 7 days a week 365 days a year.
For more information visit ambientmechanical.ca
make the right decision when choosing the glass. The U factor for windows in Canada varies from 0.65 to 1.93 (W/ m2·K). The lower the number, the better.
Solar heat gain coefficient (SHGC) is another measurement used for the selection of glass. SHGC measures how much solar heat passes through windows. Higher SHGC aids passive solar heating in cold climates but increases cooling needs in warm climates. It's rated from 0 (no heat gain) to 1 (all solar radiation is heat gain).
In Canada, it ranges from 0.02 to 0.69. Ask for a SHGC above 0.3 to reduce heating cost in the winter and lower than 0.60 to avoid overheating in the summer. Glass with low SHGC will offer less visual transmittance and be darker inside.
A window’s visible transmittance (VT) measures how much light comes through the window. The higher the VT, the more natural light will enter the
house. In Canada, the average is 0.55 and above.
Air leakage measures the amount of air that transfers through the window. Air leakage infiltration and exfiltration equal or less than 0.02 (l/S·m2) in metric or 0.3 (U.S./l-P) in imperial is good. Many offshore windows have very poor air leakage, which equates to drafty windows.
The most important measurement is the ER since it includes the whole window (glass and casement). The ER value serves as a measure of a window's overall energy performance, indicating its resistance to heat transfer. A higher ER value signifies greater energy efficiency, with calculations based on factors such as U-value, SHGC and air leakage rate. These factors collectively determine the window's overall energy efficiency rating.
To reduce confusion, consumers will find that ENERGY STAR-rated windows
have a sticker where the metrics are listed. Higher ER numbers correspond to reduced heating energy consumption, leading to lower annual energy bills. They also convey better insulation, which minimizes the need for heating and cooling, while enhancing indoor comfort by reducing drafts and temperature fluctuations.
Maximum energy savings can be found in windows that are rated "Most Efficient Energy Star Certified" (ER of ≥40), which are crafted from microcellular PVC 1
Thomas Noël is the director of the condominium division for Nordik Windows and Doors, the largest window and door replacement company in Ontario for the residential sector, including townhouses and condominium complexes four storeys or less. He sits on the Expert Advisory Council for Windows for the Ministry of Natural Resources Canada (NRCan) and advised on the launch of the $2.6 billion Canada Greener Homes Grant. He can be contacted at: 1-888-677-5343 or condos@nordik.com
Dec 4 - 6, 2024
Metro Toronto Convention Centre
A deep clean and thorough inspection are extra important for newly built homes during the spring season to
help identify and address any damage or defects.
Beingvigilant early on preserves a home’s value and is key to getting support from the new home builder’s aftersale warranty.
After a new home is completed, the builder’s warranty provides coverage against a number of potential construction issues for up to seven years. The first spring season is an important time to identify issues and work with the builder since the warranty offers the most coverage during the first year.
Focus spring maintenance jobs on three key areas:
Protect indoor air quality
After a long season of closed
windows and limited air flow, it’s essential to check and clean out the home’s air circulation systems, including the furnace filters and air ducts, to keep indoor air clean.
For condos, the property management typically takes care of changing air filters, but some condo residents prefer changing theirs more frequently.
In townhomes, change furnace filters regularly to keep dust, pollen, mould spores, and dirt out of the air. A clean filter also helps the furnace run efficiently and minimizes energy bills. The furnace manual includes information on what type and size of filter to use and how often to replace them. The builders should be able to help with any questions about furnace maintenance.
BY PETER BALASUBRAMANIANAlso vacuum and clean out air exhaust systems, including ducts, vents and covers, as well as the heat recovery ventilator (HRV) and filter, if there is one in the home.
Keep water and moisture out
When water enters a home, it can cause damage to the foundation, structure and finishings, eventually causing mould. If any snow and ice remain around the home, clear it away from the roof overhangs, foundation, window wells, walkways and driveway to ensure that meltwater runs away from the house, not towards it. Make sure the eaves and downspouts are kept clear of leaves, dirt
or other debris and that water doesn’t pool near the exterior walls.
In high-rise condos or townhomes, snow and ice removal for common elements is typically handled by the condo corporation. But if there is a balcony, terrace or groundlevel entrance that’s considered part of the unit, this is the owner’s responsibility.
Inspect exterior areas
As the weather warms up, check the home’s exteriors for any defects or damaged items. Start by inspecting the windows and doors, checking the weather stripping and caulking for air or water leaks, and ensuring that all doors, windows and screens work properly. Around the home’s exterior finishes, check for signs of deterioration, like cracks, peeling paint or loose siding. In condos, these areas are likely considered common elements and should be reported to the property manager.
For freehold homes, check the foundation walls for cracks or damage. If you have a deck, check for shaky railings or handrails with slivered surfaces, nails that
pop above the wood surface, or decking boards that are split, warped or cupped.
When spotting damage and other issues
Depending on the issue and what caused it, the builder may be responsible for addressing some (or all) of these issues through its warranty. The Home Explorer Tool, available at Tarion’s website, can provide some guidance on whether an issue might be covered to determine if a warranty claim is merited. Team members can also take owners through necessary next steps to file a warranty claim. In general, the builder’s warranty will cover defects in work and materials, but will not cover damage or issues that result from normal wear and tear caused by the homeowner.
Want to take on DIY repairs or improvements? Proceed with caution
If owners are considering taking on repairs or installations, even putting on a fresh coat of paint, these jobs may need to wait. Any
alterations made are not covered by the builder’s warranty, so it’s essential to share plans with the builder first to best understand how it will impact the warranty.
Spring landscaping is a common example to be careful of. The grading or sloping around a home is specifically designed to avoid water accumulation and help prevent water penetration into the home. Be careful not to modify this if considering changes to the landscaping or planting a garden.
Be proactive in protecting the investment
A new home is one of life’s biggest financial commitments. Maintaining it comes with a learning curve. That includes learning how to work with the builder to resolve any issues and filing and managing warranty claims if needed. 1
Peter Balasubramanian is the President and Chief Executive Officer of Tarion, a notfor-profit consumer protection organization that helps Ontario’s new homeowners understand their builder’s warranty and make a claim with confidence.
The city mirrors the evolution of housing development
Looking back on the evolution of condominiums in North American cities, especially in Toronto, it is fascinating to see how social, legislative, technical, and economic factors have spurred their development and what the future holds for this type of housing.
BY NICK AINIS
Condos are likely to remain a major residential force in Ontario.
Between 2010 and 2018, 165,828 condo units were finished, and from 2002 to 2018, 186,000 condo units were registered, accounting for 72 per cent of the city’s growth. By 2020, condos became the preferred way to accommodate Toronto’s burgeoning population. More recent data from Urbanation found that almost 32,000 condo units were set for completion in the Greater Toronto Area in 2023.
But the condo culture shifted dramatically long before that. In 1991, a court ruling cited adult-only buildings as unconstitutional under Canada’s Human Rights Code. Once the go-to for seniors and empty-nesters, condominiums then became available to all segments of the marketplace, from professional singles to families. As people got busier, the appeal of having major maintenance handled for them through a condominium corporation was enormous, and still is to this day.
Another situation that contributed to the condo craze was Ontario’s protection of the Greenbelt and other sensitive areas. This
essentially cut down on the available land for development. The answer was to build up instead of out—and intensification, especially in Toronto, became the target. Developers were encouraged to build condominiums in urban locations close to amenities and public transit, and they have done just that.
Today, the question is, how can we possibly increase supply and make housing within reach of the average Canadian? Explosive immigration has spawned demand for all housing, which, in turn, has caused prices to skyrocket. Of course, the pandemic and the supply chain problems it brought added complexities to that situation.
One approach is to study the past, especially where government intervention and cooperation with the private sector have been involved. For example, wartime houses were a staple in Canada during the 1940s. It was announced in December 2023 that the federal government is reviving a Canada Mortgage and Housing Corporation program to provide standardized housing blueprints to builders. Although this is not an overarching solution, some of it may work and, frankly, the experimentation process is necessary. It’s a step in how the public and private sectors can actively work together.
While improvements in construction technology, metallurgy and resource management have helped developers to build high-rises at more feasible costs, the design process could be more closely considered. Over the past few years, condominiums have allowed many buyers to enter homeownership, but this trend has also brought challenges for residents. To name a few, there may be a lack of areas where children can play, some balconies may be unusable because of high winds, and high-rises that are clustered along the street can limit the sunlight that gets through.
Amid all of this, consumer preferences in housing have evolved as well. Today’s buyers are quite different from those who purchased condos decades ago. As we go forward, we need more research on how intensification affects infrastructure and services, how people use spaces, as well as post-occupancy assessments to guide policies for future design. Sustainability is another major consideration, as buyers are more educated than ever before on the topic of carbon footprints. Climate change and new laws pertaining to it will take their place in future design.
Multi-residential living has changed dramatically over the years, dating back to the ancient Roman insula, large apartment buildings where the lower and middle classes of Romans lived, some with 200 stairs. Centuries later the first condos in Toronto were built in the 1960s. Over the coming years, condos will continue to evolve—to satisfy changing needs, laws and preferences, and the industry will need to adapt to meet the inevitable challenges and opportunities.
Nick Ainis is the author of “Building Toronto's Skyline: Toronto Condominiums Through the Decades.” From the precursors to condos such as boarding houses and apartment buildings, through to the explosive demand for condos in the late 20th and early 21st centuries, the book presents an exploration of what makes a condo a condo in Canada, the pros and cons of this type of housing, as well as the future of what condos might become.
Nick is also the Founder & CEO of Fusioncorp Developments, a boutique construction management company and general contracting organization specializing in multi-unit residential condominiums.
A new examination has revealed the top condo buildings in the Greater Toronto Area with the most and least expensive median monthly condo fees.
Digital real estate platform, Wahi, ranked condo buildings based on maintenance fees for one-bedroom units that were sold between 2021 and 2023. The report established a median monthly payment for thousands of multi-family buildings throughout the GTA and includes the age of each building and their amenities. Condo townhomes were excluded from the rankings.
The most expensive fees were predominantly concentrated within older luxury buildings in downtown Toronto, with only one located outside the city’s limits, in Oakville. An estimated 13 GTA condos had a median monthly maintenance fee in excess of $1,000 per month.
Older buildings typically have larger floor plans and heat and hydro rolled into fees, which can skew fees higher. A luxury building with lots of fancy amenities costs more to maintain.
The Residences of the Ritz Carlton and Four Seasons Private Residences topped the list at $2,268 and $1,561, respectively. The Granary in Oakville, came in third place with an average monthly maintenance fee of $1,440.
The least expensive maintenance fees were mainly located beyond Toronto’s core, in Milton and Oakville, as well as more suburban parts of Toronto, such as Scarborough and North York. They were built within the last several years, with the majority completed between 2018 and 2022.
The top three condos with the lowest fees include Origin Condominiums’ two towers in Milton ($217 and $241). SweetLife Condos in Scarborough came in third at $237.
The City of Toronto is moving forward with a bylaw that requires owners of buildings, 50,000 square feet or larger, to report their annual energy and water usage. A reporting link has now opened for owners to input 2023 data, ahead of the July 2, 2024 deadline.
Toronto City Council approved Municipal Code 367 last December to help owners reduce greenhouse gas (GHG) emissions, save on utility costs and make their buildings more efficient.
Owners of buildings this size are already required to report the same data to the province of Ontario. To simplify the process, Toronto is also using Energy Star Portfolio Manager so owners can report their data to both the city and province using the same online tool.
Tracking a building’s performance over time helps compare it with the performance of similar buildings. The data will be used to design future city programs, policies and supports. The City’s Net Zero Existing Buildings Strategy aims to lower GHG emissions from buildings to net zero by 2040.
Beginning in 2025, owners of buildings that are 929 square metres (10,000 square feet) or larger will also be required to report their energy and water use to the City of Toronto.
