CONDO BOARD HAS RIGHT TO RAISE FEES
Q Can a condominium board raise condo fees by 40 per cent without any notice, other than an email, and request the new fee be paid immediately, stating it was effective Nov. 1 when we only got notice Nov. 25? The board decided to allow the owners two months (December and January) to make up for the difference in the funds that had already been sent to the board for November 2017, and then the payments would revert back to the 40 per cent. Is this legal?
A Yes, it is legal to increase your condominium fees by 40 per cent. From a legal perspective, there is nothing preventing a board from doing so. From a managerial and board governance perspective, I am shocked that a board would increase condominium fees by so much on a one-time basis. This tells me that the condominium corporation has, in the past, either budgeted poorly or they have significant costs coming up and they are reluctant to issue a special levy. The other key point is the fact that it would appear, based on your question, that the board did a very bad job of communicating its plans to owners. I am hopeful that an explanation was provided at the most recent annual general meeting, or some detailed explanation was provided to the owners by way of written correspondence. Helpful Hint: When issues like this arise, get involved in your condominium. I am hopeful that this will entice people to attend the annual general meeting and perhaps get elected to the board so that other people can have a look at the current financial situation of your building. Q Three years ago we bought a condominium unit with a balcony overlooking a river, and each year we are inundated with mayflies from May until September. I approached the condo board for permission to screen in the patio, which would allow us to enjoy our property. The work was to be done by a firm specializing in such installations, and plans were submitted to the condo board for their review. Both my contractor and myself offered to meet with the board to answer any questions or concerns but the board simply denied approval, saying no permanent structures are allowed that could alter the appearance of the building exterior. We feel we are being unreasonably denied the enjoyment and use of our property, and in the event of a resale this mayfly situation would negatively impact our selling price. Our building was a new construction, and the builder knew of this issue but never disclosed it to potential purchasers. Do we have any recourse?
A Probably not. There is a court decision from Edmonton in which an owner wanted to put up a type of screening on her window to minimize the sunlight. The screening would have been a different colour from the other windows. The board said “no” and the court agreed with the board. The other key point is the fact that a board must provide reasons as to why they have denied your request. If their decision is reasonable, then it is my opinion that a court of law would support a board’s decision. If this is of such importance to you, you may want to hire a lawyer to get a definitive answer on your question relating to your specific facts.
Helpful Hint: A condominium board has to balance the interests of all owners. Boards are required to receive requests and provide an explanation as to why a request was denied. If the board is acting within the law and the explanation is reasonable, a court will support the board. Courts give considerable deference to decisions made by a board. Q It always seems difficult to get owners to volunteer to serve on the condominium board. Is it possible to offer financial compensation as an incentive? What would have to happen to allow this to take place?
A Some condo boards in Alberta pay an honorarium to board members. The amount of the payment varies from board to board, and could be as simple as a payment of $50 per meeting. In order to provide board members with an honorarium, the power to do so must be in the bylaws of the condominium corporation. If the bylaws do not provide for that ability, then you cannot offer an honorarium. Check your bylaws.
Helpful Hint: I am not a big fan of paying board members an honorarium. However, if that is the will of the owners then you must have that power in your bylaws. If you do not, then amend your bylaws accordingly.