Draft Reg#3 Available for Comment

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The following post was researched and written by Daniel Brockenshire, a law student at Sutherland Kelly LLP. Thanks, Daniel!

The third draft regulation, which was released on February 24, 2017, is aimed at regulatory changes to the Condominium Act, 1998 (the Act) and the Condominium Management Services Act (the CMSA). More specifically, the regulation proposes the scope of the Condominium Authority Tribunal and the designation of two new administrative authorities, one for the Act the other for the CMSA. Comments are due by April 10, 2017.

  1. Condominium Authority of Ontario (CAO)

The CAO was incorporated under Ontario law on July 11, 2016 but is not designated until the Minister for Government and Consumer Services (Minister) enters into an administrative agreement with CAO.

Once designated, the CAO would be delegated administrative authority over the following areas of the Act:

  1. Returns – under Part II.1 of the Act;
  2. Director Training;
  3. Compliance Orders made by the Registrar; and
  4. Contravening the provisions of the Act dealing with filing returns and paying assessments to the CAO will be an offence.

The CAO’s designation would also see it responsible for management and oversight of the Condominium Authority Tribunal, once the provisions related to the Tribunal’s creation are in effect).

Date in force: mid- to late-2017

 Condominium Authority Tribunal (CAT)

One of the most interesting topics in the proposed regulations is the scope of disputes CAT would be permitted to hear. Under ss. 1.36(1), (2) and (3) of the Act, CAT’s scope would be as follows:

  1. Corporations, owners, and mortgagees could apply for resolution of disputes about compliance with s.55 of the Act or any regulations made under it; and
  2. Purchasers could only apply for resolution of disputes with the Corporation related to compliance with subsection 55(3) of the Act.

However, s.55 (2.2) disputes related to providing records to a condominium management company or manager would be excluded from the scope of CAT’s authority.

Date in force: fall 2017

Publication of Tribunal Orders

Another proposal is that under s.1.48 of the Act, CAT has to ensure any Order is available online in a searchable database, free of charge to the public. However, the Tribunal would not be able to disclose the following personal information online:

  1. An individual’s name, unless the name identifies the individual in their professional, business, or official capacity;
  2. Unit and street number of an individual’s address, unless the number identifies the individual in their professional, business, or official capacity;
  3. Other personal information, if despite not disclosing information under points 1 and 2 above, could reasonably lead to identifying a person, unless the information identifies the individual in their professional, business, or official capacity.

Sensing a theme?

Date in force: fall 2017

  1. Condominium Management Services Act (CMSA) and Condominium Management Regulatory Authority of Ontario (CMRAO)

The final topic of the proposed regulations would designate the Condominium Management Regulatory Authority of Ontario (CMRAO) as the administrative authority for most provisions of the CMSA and associated regulations.

The CMRAO was incorporated under Ontario law on July 8, 2016 but like the CAO it isn’t designated until the Minister for Government and Consumer Services enters into an administrative agreement with CMRAO.

Finally, the CMSA would authorize the Lieutenant Governor in Council (LGIG) to delegate some or all of its regulatory creation powers to the Minister. More specifically, the LGIG would delegate to the Minister the authority to make regulations related to a bunch of paragraphs within subsection 78(1) of the CMSA.

Date in force: mid- to late- 2017

And that’s a wrap!