November 7, 2018 at 11:52 am #2471
Posted by Rick M on March 09 2018 at 09:41 AM | 6 comments
We own an Edmonton bare land condo in a small community featuring fourplex, duplex and single family units.. Our bylaws provide authority for the board to collect fees and levy assessments re a Reserve Fund and to make payments for repair and replacement of COMMON and managed property.
I am aware of the 2012 QB decision that disallowed bare land condos to collect fees and pay for repairs and replacement of common property. How ever I thought that the 2013 Statutes Amendment Act fixed the matter.
I am now hearing from colleagues who understand that bare land condos are going to have to make changes ( ostensibly to bylaws I assume) so that owners bear the responsibility for maintenance of managed property. I have attended one recent CCI update re the CPA and I did not hear anything about this SPECIFIC question. Nor have I found any references to the matter in the Service Alberta documents or the recently published changes to the CPA. I am very concerned about this issue if what I hear is accurate.
Can anyone advise me of any specific information on the question of changes that will require owners of bare land condos to now or eventually assume responsibility for repair and maintenance of managed property such as roofs,walls,windows.
Thank-you very much,
November 7, 2018 at 11:52 am #2472
Common Property has always been owned by the Corporation and its maintenance was always paid for by fees collected. The problem was managing property NOT owned by the Corporation, property such as siding, windows, roofs etc. which are actually owned by the unit holder. Corporations in the 2012 decision were not allowed to collect fees for such maintenance until the 2013 Amendment Act. However they must pass bylaws defining which properties they manage but do not own, and for which they collect fees to maintain.
Bill D on March 09 2018 at 09:56 AM
November 7, 2018 at 11:53 am #2473
Thanks Bill. So it is a bylaw issue that requires further clarification of the specific properties ( and parts/elements thereof) to be managed by a corporation ( assuming owners want/support that).
If we do this, I assume that operationally our board can continue to carry out the responsibility of repair and maintenance of common property on behalf of owners?? Sorry if I sound paranoid with my repetition.
Is there a source or posting I can go to for my record and use…
Rick M on March 09 2018 at 10:25 AM
November 7, 2018 at 11:53 am #2474
The court ruling you refer to is “Maciejko v. Condominium Plan No. 9821495, 2012 ABQB 607”. I tried to post it here without success but you could google it. Essentially, the ruling says that, in the case of a bareland condo, the corporation cannot accumulate a reserve unless the components for which the reserve fund is established are specifically mentioned in the bylaws and the responsibility for those replacements or repair falls to the Corporation.
As to your question about “Common Property”, typically your bylaws will name your condominium corporation as the responsible party to maintain and to repair and replace common property components. The court ruling does not affect that.
Mark R on March 09 2018 at 01:41 PM
November 7, 2018 at 11:53 am #2475
Thanks,Mark.The court transcript is an interesting read (Canlit) Queensbench, 2012 and it basically concluded that the Condo Act of that time did not specify that bare land condos could administer managed property therefore they could not collect fees for that purpose.The Amendment ACT added a provision to the Condo Act to allow bare lands to henceforth collect fees for that purpose.Our bylaws amake our association responsible for managed property so we should be okay and as Bill states we may need to specify the specific properties we are responsible for.
I am still looking however for any draft statutory information that perhaps exist re this topic as there seems to be some impetus and discussion to proceed to clarify. But who says so and where?What is the authority?
Rick M on March 09 2018 at 03:42 PM
November 7, 2018 at 11:53 am #2476
Hi Rick, the judge’s recommendation was to amend bareland condo bylaws to include “managed” property for the purpose of creating a reserve fund. That can be done without contravening the Act.
Mark R on March 12 2018 at 10:56 AM
November 7, 2018 at 11:53 am #2477
Your summary of the Shores Decision and the resulting amendment is correct. So long as your bylaws obligate the Corporation to take care of the managed property the Corporations should do so. Nothing in the Amendment Act will change this, in fact, such further confirms the obligation of a Corporation in regards to managed property.
TODD S on March 12 2018 at 07:57 AM
This thread has been double posted and the response has been moved to the original thread.
Alan W on March 12 2018 at 03:15 PM
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