Posted on February 24, 2010 by Chris Jaglowitz

CCI-T and ACMO secure concession to offset impact of HST

In a special update released this week, CCI-Toronto and ACMO announced that they have successfully lobbied the provincial government to amend the regulations under the Condo Act so that corporations registered before May 5, 2001 will have 15 years (not 10 years) from the date of their first reserve fund study to top-up their reserve funds.

[Update (March 7, 2010):  The regulation making this amendment is now published here.]

Condominium corporations existing as of May 1, 2001 were required to have their first official reserve fund study under the New Act within three years after that date. Generally speaking, that means that they must top up their reserve funds by the year 2016 or 2019.

CCI-Toronto and ACMO deserve kudos for securing this concession to help condo corporations offset the deleterious effects of the ever-looming HST.   We wish them well in their continued negotiations with government.

 

 

 

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Important update on Reserve Fund Change 
made by the Ontario Government:

Together CCI (Toronto) and ACMO are pleased to update you on important progress we have made in our discussions with the Ontario Government related to Reserve Funds. 

The provincial government has just confirmed that it will be giving condominium corporations that were registered before May 5, 2001 more breathing room when it comes to their reserve funds and the requirement to "top them up". According to the Minister of Consumer Services, this is a move the government believes will give Boards more flexibility with their budgets, and assist in taking some pressure off increasing common expenses.

Acknowledging that the statutory "topping up" deadline is fast approaching, the government agreed with our submission that it was appropriate to review the environment within which the industry is operating, including the current economic climate.

Thus the government has taken an important step by deciding that Corporations registered before May 5, 2001 will have 15 years, and not 10 years, from the date of their first reserve fund study to top up their reserve funds. This change will reduce the impact of the HST on reserve funds as any shortfall can be gradually collected or transitioned over an additional 5 years, eliminating the need for immediately seeking additional funds from owners, which would have put an additional financial burden on them.

This change will come into effect on July 1, 2010 and ACMO and CCI (Toronto) look forward to working with the government in implementing it.

This Reserve Fund extension is one of several constructive solutions that we recommended to the government and have been advocating very hard over the past year. These are solutions to try to solve many serious issues related to condominiums in Ontario, including the impact of the HST on owners. It is a greatly appreciated measure from the government that will benefit many owners in Ontario to varying degrees.

However, our work does not stop here. CCI (Toronto) and ACMO are continuing with their efforts on behalf of the condominium industry to obtain solutions to the serious and unique problems facing condominium owners, and we look forward to continuing our constructive dialogue with the government on these issues, and in particular with the Hon. Sophia Aggelonitis, Minister of Consumer Services.

Armand Conant, B.Eng., LL.B., D.E.S.S. (Sorbonne)
President, Toronto Chapter 
Canadian Condominium Institute

Chris Antipas, RCM, ACCI
President, Association of Condominium
Managers of Ontario
 

 

 
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Posted on February 18, 2010 by Chris Jaglowitz

FAQs on HRTC

The Toronto Chapter of the Canadian Condominium Institute has posted a special info bulletin on how condominium unit owners can claim the Home Renovation Tax Credit (HRTC).

From the bulletin:

On behalf of CCI Toronto & Area Members, and in conjunction with ACMO, a lawyer specializing in tax law was retained to coordinate a meeting with CRA representatives in order to address many questions submitted by our members regarding the legal interpretation of the HRTC rules and how they affect the practical management of Condominium Corporations. This meeting with CRA representatives was also attended by an Auditor specializing in condominium accounting and taxation.

16 questions and answers are then provided.

See the bulletin (in pdf) here.

Kudos to CCI-T and ACMO for gathering and presenting this useful information.  

Pass it on!

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Posted on November 21, 2009 by Chris Jaglowitz

CCI's fight against HST takes to the airwaves

Many condo boards and unit owners are concerned over the impact of the proposed Harmonized Sales Tax on their condominium corporations and their own pocket books.  They will be glad to know that  the Toronto Chapter of the Canadian Condominium Institute (which represents over 113,000 condo units in the GTA) has been valiantly advocating against the proposed tax.  

CCI-Toronto is taking their fight to the airwaves on TV tonight.   Hear the latest about what is being done.   According to their news release: 

 Tune in to Focus Ontario on Global Television on Saturday, November 21st at 6:30 p.m. to hear host Sean Mallen speak with guests Armand Conant - President, Canadian Condominium Institute - Toronto Chapter and Robert Hattin - Canadian Manufacturers and Exporters, on the issue of the Harmonized Sales Tax.

Mr. Conant, President of CCI Toronto, Co-Chair of the Joint CCI-T/ACMO Government Relations Committee and a lawyer with the firm Heenan Blaikie LLP will focus his comments on Saturday's show on CCI-T's opposition to the inequities the HST will create for condominium owners.

For details on Focus Ontario click here.

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Posted on November 2, 2009 by Chris Jaglowitz

Education is often the key to solving condo problems

Most problems facing condominium corporations are either created or made more complicated by the simple fact that owners or directors (sometimes both) lack basic knowledge about the rights and responsibilities of the various stakeholders in the condo community.

This obstacle can be partly overcome in a number of ways. Here are four:

First, your corporation should engage the services of a professional property management firm. One of the main functions of any reputable management firm is to direct their collective skill, knowledge and experience to solving a host of problems or disputes in a condominium setting. In selecting a management firm, start with those that have earned or are working towards the ACMO 2000 certification. This designation is conceptually similar to the well-known ISO-9001 certification and consists of measurable minimum standards of performance and service. The ACMO 2000 certification is administered by the Condominium Management Standards Council at the Association of Condominium Managers of Ontario (“ACMO”).

Second, insist that your on-site manager possess or be working towards the Registered Condominium Manager (“RCM”) designation. This designation, administered by ACMO, is granted to individuals who have achieved a minimum two years’ experience in condominium property management and have successfully completed a comprehensive educational program covering administration, condo law, physical building management and financial planning. The condo board is often only as knowledgeable as its front-line manager. Make sure yours is well-qualified.

Third, your corporation and unit owners can (and should!) take advantage of the excellent educational courses offered by your local chapter of the Canadian Condominium Institute. Here in Toronto, the local CCI chapter has a full slate of courses of various lengths on a number of practical topics for condo directors, owners and even prospective purchasers. It would be ideal for every condominium director and owner to take some of these courses.   The small cost of these courses is insignificant when you consider the fact that most condominiums are million-dollar operations that directly and significantly impact the lives of their unit owners.  

Fourth, managers, directors and owners should consider and explore other educational opportunities, such as:

Having professional management and a well-educated board and membership will go a long way towards avoiding or minimizing the most commonly encountered disputes and problems.  
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Posted on August 30, 2009 by Chris Jaglowitz

Is your condo corporation budgeting for HST yet?

The Toronto Star reports that an ACMO luncheon panel to be held in September on the topic of the HST will feature a very brave parliamentary assistant to the minister of revenue.   The article also outlines ACMO and CCI's estimation of the impact the new tax will have on condo corporations and unit owners, which information has been submitted to the Ontario government.  (See ACMO's submission here.)

Update (Sept 27/09):   National Post reports on the above-mentioned ACMO luncheon here.

Unfortunately, it appears that arguments being made by the condo industry associations in support of exemptions or reductions of the HST  are falling on deaf ears, as are the pleas of every other industry association, social group and watchdog.   By all accounts the government has very clearly made up its mind on the HST and is now firmly focused on "selling" the tax to anyone who will listen.   The time for submissions and petitions has therefore passed -- Consumers and their condo corporations will be paying HST starting next July.   It now falls to condo boards to prepare themselves and their unit owners to deal with the coming new reality.

We wrote about the HST back in March when it appeared imminent that the province would introduce this new tax to help offset massive multi-year deficits.    We suggested back then that condo corporations begin budgeting for HST and establish a program of reducing expenses and increasing contributions to the common expenses and reserve funds.    See that piece here. 

With only ten months until the HST becomes effective, there is no time to lose.

What steps are you taking at your condo corporations?   

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Posted on January 9, 2009 by Chris Jaglowitz

CCI Toronto course offerings for Jan/Feb 2009

Education for condo directors and owners has become increasingly important.    

Regardless of their experience, any condominium director, prospective director or interested unit owner should seriously consider taking one or more of the excellent courses offered by the various chapters of the Canadian Condominium Institute.  

The following message from the Toronto and Area Chapter of CCI describes their course offerings for January and February.     

Sign up today.   This small investment will pay for itself in spades.

 


CCI Toronto and Area Director Courses
There is still time to register for......
Condo 101 Course - Saturday January 17th, 2009

CCI-Toronto's Condo 101 Course will be offered on Saturday January 17th, 2009 from 9:00 a.m. to 12:00 p.m. at the Novotel North York Hotel - 3 Park Home Ave. This intensive 3 hour session provides participants with an overview of the Condominium Act and is an excellent means to find out what you need to know to be an effective condominium owner or director. The course is presented by a panel of Condominium Experts, including a Lawyer, Property Manager, Accountant and Engineer.

For full course details or to register online, click here.

Level 200 Course - Starts on Wednesday February 11th, 2009

The Winter session of the Level 200 Condominium Course starts on Wednesday February 11th and will run on Wednesday evenings from 7:00 to 10:00 p.m. until Wednesday March 11th, 2009.   

This five night follow up course expands upon the information provided in the Condo 101 session and is a 'must attend' for all new Directors or Condominium Residents who want a better understanding of the way Condominiums function and should operate. Topics covered include: What is a Condo, Property Management,   Insurance, Finance and Status Certificates , Reserve Funds and Physical Building Management.

For full details or to register online, click here.  

Register Today... Don't Delay!

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