Reminder: ACMO CCI-EO 5th Annual Conference on Friday June 2, 2017: Jim Davidson and Nancy Houle presenting

Davidson Houle Allen LLP Condominium Law is proud to be a Gold Sponsor of the 5thAnnual ACMO CCI-EO Condominium Conference being held in Ottawa on June 2, 2017.

The schedule for the day includes exciting presentations, with timely and relevant issues geared towards condominium property management to be discussed. Jim Davidson is presenting on the Condominium Act updates, and Nancy Houle is speaking on the Legal Panel.

The conference has a comprehensive array of fantastic exhibitors ready to speak with attendees about condominium issues throughout the day. Davidson Houle Allen LLP has a booth; please come by and visit us !

Register today by visiting the CCI -EO website here !

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act and upcoming events .

Share this:

First Phase of the Condominium Act Amendments -Update

The latest we’ve heard is that the “arrival date”  for the first phase of the Amendments (including the arrival of the new Licensing Requirements for Managers) will now occur later than anticipated, in the fall of 2017, not July 1, 2017.

We look forward to providing our readers with more exciting updates about changes to the Condominium Act, as information becomes available.

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act.

 

 

 

Share this:

Insurance Deductibles By-laws – A Continuation

There’s been considerable dialogue across Ontario on the following:  When Section 105 of the Condominium Act is amended, condominium corporations will no longer be able to pass Insurance Deductibles By-laws.  But what about by-laws passed before then?  Will those existing by-laws still be effective?  Will they be “grandfathered”?

We’re pleased to advise that the province has offered some helpful additional comment on this issue.

The bottom line is as follows:  No decision has yet been taken about the possible “grandfathering” of insurance deductibles by-laws passed before the new Section 105 comes into force.

As mentioned in my previous blog on this topic, the draft new Regulations say that Periodic Information Certificates (PICs) to be issued by condominium corporations will include reference to insurance deductibles by-laws.  The province has confirmed that this doesn’t mean that insurance deductibles by-laws will necessarily be grandfathered.  It’s just that Section 105 won’t be amended as part of the first phase of condominium legislation amendments – and the new requirements respecting PICs will be part of the first phase.   The point is that existing insurance deductibles by-laws will certainly still be effective – at least until Section 105 is amended (some time in future) – and therefore will need to be mentioned in PICs (at least for the time being).  That’s what the new Regulations are saying – nothing more.

However, the province has also said this:

“No decisions have been made as to whether there will be transitional rules and, if so, how they would apply, in relation to the coming into force of the amended s. 105 of the Act. …This is something we intend to consult on as part of later phases of regulation development.”

I think this means that existing insurance deductibles by-laws might be grandfathered.

[This might be achieved, for instance, by saying that the new Section 105 won’t apply in certain circumstances – or in other words that the new Section 105 will only be proclaimed in force for certain situations.  For example, the current Section 105 might be allowed to continue in certain cases – for instance, where an insurance deductibles by-law has been passed prior to the date on which the new Section 105 comes into force.]

So again:  Existing insurance deductibles by-laws MIGHT be grandfathered.  We just don’t know.

What does this mean for condominium corporations?

Condominium corporations might wish to consider passing (or amending) insurance deductibles by-laws (pursuant to the current Section 105) for two reasons:

(a) Such by-laws will certainly be effective for the time being – until Section 105 is amended; AND

(b) Such by-laws also MIGHT be grandfathered (and therefore may continue to be effective even after the new Section 105 is proclaimed in force).

Here’s the added wrinkle:  In order to pass such a by-law, we of course need the support of the owners of a majority of the units.   It can be tricky to explain these insurance deductibles issues to owners (and to obtain their support).   I wonder if this will be even more difficult if we’re required to tell owners that the by-law might only be effective for a limited period of time (i.e. until Section 105 of the Condominium Act is amended).

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act.

Share this:

Insurance Deductibles By-laws – Will Existing By-laws be Grandfathered?

There’s been considerable dialogue across Ontario on the following:  When Section 105 of the Condominium Act is amended, condominium corporations will no longer be able to pass Insurance Deductibles By-laws.  But what about by-laws passed before then?  Will those existing by-laws still be effective?  Will they be “grandfathered”?

My answer to this question is:  Maybe; but I don’t think so.

In my view, the amendments to Section 105 of the Act are clear:  Insurance deductibles by-laws will no longer be effective after the amendments to Section 105 come into force.  Put simply, the amended Section 105 says that the corporation’s deductible is a common expense except in certain specific circumstances listed in the Section – and a by-law is not one of the circumstances [As our readers will know, one new exception will be an amendment to the Declaration.]

The bottom line is as follows:  For insured events that occur after Section 105 is amended, I don’t see how a by-law can have any effect on responsibility for the corporation’s deductible.

HOWEVER:  According to the draft new Regulations, the information to be contained in Periodic Information Certificates (to be issued by condominium corporations) will include the following:

If an insurance policy obtained and maintained by the corporation in accordance with the Act contains a deductible clause that limits the amount payable by the insurer, a statement that,

(i) describes any such deductible clause, including the portion of a loss that would be excluded from coverage,

(ii) clearly identifies, for any such deductible clause, the maximum amount that is to be added to the common expenses payable for an owner’s unit under section 105 of the Act or as a result of a by-law passed under clause 56 (1) (i) of the Act before the repeal of that clause came into force, and

(iii) warns owners of their liability as described in subclause (ii).

This is unquestionably confusing.  Why refer to insurance deductibles by-laws in Periodic Information Certificates if such by-laws will no longer be effective?

I think there may be two answers:

(a) Insurance deductibles by-laws will of course continue to apply to any insured events that occurred before the amendments come into force. Adjusting those “pre-amendment losses” may take some time; and

(b) The amendments to Section 105 are not expected to be part of the planned First Phase of the amendments (whereas Periodic Information Certificates ARE expected to be part of the First Phase). Therefore, insurance deductibles by-laws may still be effective for some time to come – ie. until Section 105 is ultimately amended.

The Canadian Condominium Institute is checking with the province to see if the confusion can be resolved.

In the meantime, what should a condominium corporation do?

If you don’t currently have an Insurance Deductibles By-law, I suppose you could consider passing such a By-law.  The by-law certainly will be effective until Section 105 is amended.  And the by-law might continue to be effective after Section 105 is amended. But I have two cautionary notes:

I. Again, I think there’s a real possibility that such by-laws will have no further effect after Section 105 is amended.

II. Owners might be reluctant to consider passing a by-law that might soon be ineffective.

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act.

Share this: