Report on 2011 ACMO AGM

I attended the recent annual general meeting of the Association of Condominium Managers of Ontario (“ACMO”). While those meetings are normally attended exclusively by condominium managers, the board invited me to assist them with any legal or procedural matters that might arise. While nothing exciting developed that required legal intervention, the meeting was very well attended and the election to fill vacancies on the ACMO board was especially noteworthy.

Eight members stood to fill three slots on the 9-member board and each described their vision for the future of ACMO and the condominium management profession. The candidates were diverse in their location and the nature of their practice, but all were united by their exceptional experience and desire to serve their fellow condo managers.

In the end, the members re-elected Allan Rosenberg of Toronto and elected two new directors, Helen Kennerney of Alliston and Debbie Wilson of Ottawa.

Allan’s re-election is welcome news and Helen and Debbie joining the board is seen as particularly positive as they practice their craft outside the Toronto area. This added regional diversity on the board will obviously help ACMO increase its presence in other regions of the province, a goal that is common among GTA-centered industry associations but is not easy to conquer.

Additionally, this election brought the number of women on ACMO’s board to a 5-4 majority. While the significance of such developments might seem to decrease with the increasing frequency of these milestones, they are still cause for celebration.

Before being roundly applauded for his nine years of service on the board, outgoing president Chris Antipas reported on the association’s work over the past year and the remarkable progress that has been made. He also spoke of the future and some of ACMO’s goals, including:

  • Continued expansion of the Registered Condominium Manager (RCM) designation;
  • A licensed RCM in every condominium;
  • Expansion of the ACMO 2000 certification program;
  • Increased educational opportunities for managers both in and outside the GTA.

Outgoing director John Belford, who chose not to stand for re-election, was also saluted for his contributions to the ACMO board and for his trademark sincerity and passion which is always evident in his dealings with stakeholders.

Congratulations to ACMO on a successful year and a lively AGM, and thanks for giving me a front row seat.

Self-regulation for HR professionals: A model for condo managers?

A bill now under consideration by the Ontario Legislature suggests that the concept of condominium managers becoming a self-regulated profession is not far-fetched. It may also signal that the time has come for condominium managers to step up their campaign for self-regulation.

Under Bill 138, the Registered Human Resources Professionals Act, 2010, the Human Resources Professionals Association of Ontario (“the Association”) would be established as the regulatory body charged with overseeing the human resources profession.

If passed, Bill 138 would:

  • authorize the Association to set qualification requirements to be admitted as a member;
  • prohibit any person who is not a member of the Association to use its designations, including “Registered Human Resources Professional” and impose fines for unauthorized use;
  • permit the Association to grant, refuse or restrict the ability of a firm to practice in the field of human resources;
  • require members to be investigated immediately upon becoming bankrupt or incapacitated;
  • establish procedures for dealing with complaints against the Association’s members and firms and establish a disciplinary process;
  • allow the appointment of investigators and inspectors to conduct investigations and inspections under the Act;
  • permit the Association to obtain a court order for custody of a members property in certain circumstances.

The current status and full text of the bill can be viewed on the legislature’s website.  See also Hicks Morley’s HR Legislative Update blog for useful expert commentary.

While the concept of regulating HR people might not generate much excitement for our blog’s loyal readers, it presents an interesting opportunity to help kickstart the movement to regulate the condo management industry. At first glance, Bill 138 appears to provide a reasonable model for converting almost any industry association into a self-regulating body. Its provisions would likely work well for the condo management industry while providing meaningful protection to the public, which should be the ultimate factor in considering the regulation of any industry.

Instituting proper regulation of the condo management industry is long overdue and the public interest demands it. Despite the good work of organizations like ACMO in raising the bar for managers and helping condo boards identify suitably qualified firms and individual practitioners, the daily news in every province and state contains stories of incompetence, misfeasance and outright theft committed by property managers. In places like Ontario where no government regulation exists, homeowners victimized by a manager are left to rely on the criminal justice system to punish the offender and must fend for themselves in civil court to recoup their losses. This government inaction costs Ontario condo unit owners countless millions of dollars each year and, even worse, allows untrained or corrupt property managers to victimize an endless stream of condominium corporations and their owners with impunity. This is a travesty that the industry, led by ACMO, seeks to address.

It is strikingly odd that human resources professionals, whose impact on the general public is relatively minimal, have made such advanced progress towards government-sanctioned self-regulation compared to condominium managers. The condo management profession is arguably a far superior candidate for self-regulation (or any form of government regulation), given that managers are entrusted with administering assets worth billions of dollars belonging to millions of Ontario home owners. The daily work of condo managers hits much closer to home, quite literally, than almost any other profession and it seems astonishing that their industry does not receive proportionate attention by the government when compared to human resources professionals as evidenced by Bill 138. While the analogy is overly simplistic, it defies logic for a person or firm that keeps track of employee sick days to be more tightly regulated than the person or firm that manages the multi-million dollar reserve funds of several condo corporations. This point (or, hopefully, a better one) needs to be made to government now, using big bright letters.

Bill 138 was introduced as a private members bill by a liberal MPP in November 2010, passed second reading on March 3, 2011 and was referred to committee. It is unclear whether the bill will become law before the current legislative session is terminated for the general election this fall. If the bill dies on the order paper, it is even less clear if the bill will be revived after the election.

Regardless of whether Bill 138 passes or sputters out and dies like most private members’ bills, its framework and laudable goal to increase professionalism can and should be salvaged, improved and customized to suit the needs of other organizations, such as ACMO in the case of the condominium managers. The managers and their clients, being the millions of condo unit owners in this province, should take advantage of whatever opportunity might arise to make their voices heard and get the government’s attention.  Work needs to begin soon on the Registered Condominium Managers Act, 2011.

Best of the blogosphere for April 2010

It's time once again to sample some of the best condo-related news from the blogosphere.

Spring has different meanings to different people – With winter behind us, it’s time to get to work on the year’s maintenance and reacquaint yourself with your neighbours.   Hats off to the Community Associations Network blog for some pleasant seasonal tips!

Owner posts website about his HOA problems and gets sued – The title says it all.   Check out the story and follow the links to the offending website to see what all the noise is about and whether you can get to the bottom of the million dollar question... oops, I mean “lawsuit.”

Proper Protocol for a Board’s Use of Emails – Everybody and their brother uses email these days and condo boards are no exception. Donna Berger offers some practical guidelines to avoid typical problems arising from condo boards use of email.

Condos/HOAs Have a Lot to Lose if Design Professional Protection Bills Become Law – Imagine if you couldn’t sue architects, engineers or surveyors if their negligence affects your condo.  That nightmare scenario may come true in Florida if legislators don’t give their heads a good shake. Sanjay Kurian sounds the alarm.   

Condominiums and Second Hand Smoke Claims – Mark Wiechnik of Stark & Stark summarizes the leading cases on second hand smoke in condos, including a Canadian case, and offers his prediction of what may result and how those cases might impact condos in New Jersey (and everywhere else!).

Spiteful Conduct by Board Member – This Q&A on the Virginia Condo and HOA Law Blog offers some guidance on the potential liabilities that arise by vindictive conduct of a board member.

 "Not by the Hair of my Chinny-Chin-Chin!" – Is this the answer your manager gets when trying to make entry to a unit?   Check out California lawyer David Swendelson’s suggestions before huffing and puffing.

When Condo Fires Strike...... – Lawyer Stuart Lieberman recites some of the considerations that come to mind when you put “fire” and “condo” in close proximity to each other.

Keeping Your Association Afloat: Implementing Hardline Collections Tactics – Effective collection of common expenses is critical.   Sarah Lappin at the Vial Fotheringham blog suggests that misguided soft-heartedness shouldn’t be allowed to destroy your condos finances.  

CMCA Program Achieves National Accreditation – The Community Associations Institute announces on their Ungated blog that their professional designation for community association managers (“CMCA”) has received special national recognition. Congratulations to CAI on this achievement!

The Challenge of Structural Distress in Aging Buildings – Florida condo construction litigator Alan Tannenbaum warns that most Florida condos are unlikely to meet the 50-year lifespan predicted by studies. He offers advice on how to stretch out those years.

Lenders and Squatters Accessing Homes Prior to Foreclosure -- Daniel Zimberoff of the Northwest Condo & HOA Law Blog highlights a common problem facing American community associations in areas where the housing market crisis shows no signs of abating.

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.  

Best of the blogosphere for September 2009

Here are some of the many interesting condo-related items from around the blogosphere last month.  Click the bolded titles to view the original entries.

Virginia homeowner may lose home because of failure to fund reserves – The HOA Legi-Slate blog of law firm HindmanSanchez in Colorado cites a heart-wrenching story of a condo board’s failure to properly fund its reserve leading to a special assessment of $15,000 per unit in order to raise the $2 million needed for emergency repairs. A recently laid-off unit owner stands to lose her home as a result. This piece contains helpful lessons for board members and for unit owners, who should remember that this scenario can easily happen anywhere, especially when directors are elected on the ever-popular (but foolish) "zero increase" platform.

How to pick the right attorney for your community – Florida HOA attorney and blogger Donna Berger gives some pointers on choosing lawyers that will best serve your community association. I say (with tongue-in-cheek) to select the firm with the best condo law blog!

Alzheimer’s Advance: 115-million by 2050 – Toronto trusts and estates lawyers Hull & Hull discuss a recent report pointing to an imminent explosion in Alzheimer’s cases around the world. Start asking how this trend will impact your condo and what you should do to prepare. Consider asking a local estates lawyer to give an info session to your residents on the importance of having their personal care affairs in order.

Illinois Manager Licensing FAQUngated, the blog of the Community Associations Institute, reports that law has now passed regulating the property management profession in Illinois starting in January 2010. An FAQ page is presented. 

Aging in Place: A New Plan for the Suburbs? – In a rather futuristic piece, California lawyer Tyler Berding predicts the coming end of suburban neighbourhoods as we know them and suggests that aging condominiums and their residents may become the building blocks for a new way of living.

New York contemplates regulation of property managers

Stark & Stark reports that the State of New York is considering legislation that will, if passed, require residential property managers to be certified by a state-approved certifying organization and then register with the state.

This approach may be an interesting hybrid between self-regulation and state regulation but, as with all legislative initiatives, the devil will be in the details (which can be seen here).