Law Times

Law timeS • September 30, 2013 Page 7 COMMENT Condo bureaucracy set to grow as report touts major reforms F ans of the seminal 1960s conspiracy theorists' TV series The Prisoner will find the recent release of the government's second stage report on Condominium Act solutions very ominous indeed. The report confirmed some of the major themes the government will be pursuing in its "comprehensive approach to reform." Now to those who have been following the condominium law reform movement, there really isn't anything shockingly new about the themes, but the release of the new report has brought home the very real possibility of a whole new branch of government dedicated, for better or worse, to all things condo. One of the first things confirmed by the latest report came as no surprise at all: The government will regulate property managers. This comes as no real surprise precisely because this is one plank of the government's proposed overhaul of condominium law that had already emerged ahead of this summer's provincial byelections in response to widespread concern that fraud and embezzlement were becoming seriously problematic in the industry. Like in many other aspects of life, it was obviously an example of a few bad apples spoiling it for the rest but it was a foregone conclusion that the government would regulate property managers regardless of what else came down the pike in terms of condominium law reform. What did come as a bit of a surprise to me, although perhaps not to industry insiders, was the announcement of the new condo licensing agency, a move Y of dealing decisively with that will keep that function in government hands. Also new The Dirt condominium matters. Like all new dispute resolution was the suggestion that such protocols, it will take time for property manager licenslitigators to make the transiing might be a two-staged tion. And only time itself will process with a preliminary tell if the new condo court entry-level stage followed by dispute resolution paradigm advanced accreditation some is in fact better or worse — time later in a property manin terms of speed, cost, and ager's career. The industry Jeffrey Lem perceived fairness — than the already unofficially rallies one it replaces. around the registered condoIn addition to the new condo licensminium manager designation awarded by the Association of Condominium ing agency and the condo court, the Managers of Ontario that requires can- report is also proposing the introducdidates to attend relatively rigorous tion of a new condo registry. While a courses at Mohawk College or Hum- condominium's constating documents ber College (or the equivalent online must already be registered on title, upprogram deliveries) on technical, legal, to-date information on the corporation's and ethical matters relevant to condo- current directors, property managers, miniums. What's uncertain is whether and rules and regulations are rarely registered managers will get byes in the publicly available. The report will see to accreditation process and, if so, whether the development of a new public condo the designation will then translate into registry and corresponding annual filthe entry- or advanced-level equivalent. ing requirements that are presumably The new report also calls for radi- not much different than the corporate cally new dispute resolution protocols registries maintained under the Ontario all under the umbrella of a new so-called Business Corporations Act. A central location known as the concondo court. Currently, condominium disputes are subject to cumbersome do office will administer (and presummandatory mediation and arbitration ably house) the new condo licensing rules for some disputes and both Small agency, court, and registry. This condo Claims Court and Superior Court venues office, in addition to overseeing the other for others. The new report is calling for an government condo regulatory functions, overhaul of the mediation and arbitration will also have staff tasked with the general protocols together with two distinct but didactic duties to educate the public on parallel tribunal-like bodies: the dispute all things condo, including, among other resolution office and the quick decision- things, the proposed mandatory training makers both given the eponymous tasks of first-time condo directors. Of course, none of this proposed new condo administration juggernaut is going to be free. While the report doesn't fix the funding formula for all of this condo largesse, it openly acknowledges that user fees for various services, together with a surcharge of $1 to $3 per unit each month, will fund this new bureaucracy. Let's call it a new condo tax for want of a better term (and we'll see how that goes over with the condo-owning public). Although fans of The Prisoner will see nothing but the imprint of big government in the latest report, the bureaucracy of the condo office is only a fraction of the themes actually explored in it. Readers should also know that the report advocates far-reaching consumer protection reforms, such as banning developer sales of superintendent and guest suites back to the condominium corporation, and better developer upfront disclosure. There's also discussion of corporate governance by, for example, lowering quorum requirements and raising proxy-use guidelines and financial management reforms through better budgeting and more flexibility to dip into reserve funds. While some proposals may be controversial, it's all a reflection of the political reality that comes with more than 50 per cent of all new housing stock coming online in the province now being condo developments. LT uJeffrey W. Lem is a partner in the real estate group at Miller Thomson LLP. His e-mail address is jlem@millerthomson. com. Big shift in Ontario's political landscape ou can forgive Progressive Conservative Leader Tim Hudak for being a clock-watcher these days. His campaign bus is ready to go and he has been issuing the policy platforms. In addition, he has just shrugged off a small klatch of party vultures who complained his lack of charisma was killing their election chances. He wants to take his act on the road because we all know a general election will happen sooner rather than later. It's just a question of when. Despite her hints she was ready to throw down the writ this year, Premier Kathleen Wynne has since backed off and it appears playing for time will be her strategy from now until the spring budget. Her bet is to stall and hope the economy recovers in time to pronounce things are back in the black. Unfortunately, it's a strategy her predecessor tried without much success, although eventually the fallout of the recession has to end sometime. Still, time is maybe the one thing Hudak needs. He's got a few weeks or maybe a few months to show the electorate how he wants people to perceive him and, by extension, view his party. Hudak has an image problem. In the last general election, he rolled out a tough-oncrime platform that promised chain gangs working the highways. More recently, he has been threatening labour groups with U.S.style right-to-work legislation that will allow employees to opt out of joining unions. Currently buried in his stack of white papers on policy are some good ideas, but some of them are dogmatic concepts best left on the shelf. What Ontarians want is a clear alternative to Wynne and he can play ball instead of just the Liberals through someone who will restore some sanity Queen's obstructing things. approv"We'll push through to spending and clean up the Park al of these housekeeping meafinancial mess that accrued sures since the Liberals claim under former premier Dalton that's the only thing standing McGuinty. between them and a supposed So enter the new and implan to create jobs," he taunted proved Hudak. In a strategy rein a statement. versal, Hudak and the Conser"Well, the deck has been vatives have stopped blocking cleared. It's time to get serious and delaying every bill brought about the problems this provto the legislature and are breakIan Harvey ince is facing." ing the logjam. Hudak is remaking his image The deal is they'll support with the time available to him, but don't exopponents' bills if they support theirs. First up was the third reading of bill 14 pect to see him on a reality makeover show that amends the Co-operative Corpora- with a new wardrobe and a spiky hairdo. tions Act and the Residential Tenancies What Hudak is going for is a subtler gamble. He's going for real. As TVO anchor Steve Act to allow for faster processing of disPaikin noted in his keynote address to a putes. Next will be bill 30, an act to regulate the marketing of tanning services and gathering of chartered professional accountants last week, real is in. Paikin is a savvy obultraviolet light treatments to teenagers. In exchange, the Liberals will finally server who has interviewed every Ontario support Oxford Conservative MPP Er- premier who served over a 50-year stretch nie Hardeman's tenacious struggle to have bill 18 go to second and third readings. It would amend the Fire Protection and Prevention Act to require carbon monoxide detectors in residential buildings. Also, Wynne and Hudak have closed ranks on the necessity to free construction firm EllisDon Corp. from a 55-year-old piece of obscure legislation that requires it to hire only unionized workers. The Conservatives are using a programming motion to get three of their bills through in exchange for five from the Liberals. Considering nothing has passed so far this year save the budget, it's a huge step. For Hudak, though, it's a chance to show www.lawtimesnews.com and he says there's a fundamental shift in the political landscape. The concept of a right and left wing is fading, regionalism is on the rise, and voters are looking for authenticity over charisma in their politicians, he argued. Hudak's direction seems attuned to that. My former colleague, Mark Bonokoski, recently became Hudak's director of communications and if there's anyone who can put what journalists call a face on the story, it's him. What Hudak wants to do now with the time available to him is sound less like a policy wonk and more like someone who's ready to roll his sleeves up and get the job done with no glitz or bribes and little fanfare. Hudak is about to get real, but is it too little too late? Time will tell. LT uIan Harvey has been a journalist for 35 years writing about a diverse range of issues including legal and political affairs. His e-mail address is ianharvey@rogers.com.

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