New rules coming for the governance of Alberta condos
Alberta has announced new regulations for condominium governance scheduled to take effect next year, including rules around meetings and requirements for insurance and rental deposits.
The regulations were approved by cabinet earlier this month and most will come into effect July 1, with the rest taking effect Jan. 1, 2020.
Service Alberta Minister Brian Malkinson said the changes follow consultations held in 2017 and 2018. The governance regulations are the second phase in a series of changes, following new rules announced last year, which were aimed at improving the condo buying experience.
“These regulations cover the day-to-day living in a condominium,” Malkinson said. “More specifically, they cover the governance of condominiums and the working relationship between condo owners and condo corporations.”
The provincial government said the new regulations will improve rules around meetings, such as requiring more notice to attend general meetings;
Revamp voting rules with the aim of allowing owners to more effectively participate in meetings;
Provide easier access to condo documents by clarifying which documents must be provided to owners;
Require a more fair process when condo corporations issue bylaw fines, establish more protections for condo owners’ investments, strengthen how reserve funds are managed;
Establish new requirements for insurance and rental deposits.
Bob MacLeod, a director of the Condominium Owners Forum Society of Alberta, said many condo owners want to know more details about the management of their investment and how to improve condominium communities.
“Historically, many condo owners have felt isolated and alone and had difficulty finding information or programs about the management of their condominiums,” he said. “These regulations will substantially address these issues.”
Jennifer MacFarlane, on-site property manager for The Wedgewoods condos in Discovery Ridge, called the regulations a positive step forward for condo owners and managers.
She said condominium management has been a challenge, “with a lot of grey areas.”
“Some of the areas before surrounding insurance, for instance, where the unit owners were compelled to have insurance,” she said. “But these regulations go a little bit further and they specify what type of insurance and how the board and the condo corps can request that proof of insurance — that’s really important.”
June Donaldson, founder of a grassroots group of condo owners called the Alberta Condo Act Team, said she was disappointed to see that a number of areas were not addressed in the new regulations.
“I wish it had been more in terms of dealing with some of the specifics,” she said.
She said during the consultation process the group asked Service Alberta to create rules on limiting or banning proxies, not allowing redactions in condominium documents and banning omnibus presentations of bylaw changes — which Donaldson said can be overwhelming for condo owners.
The Condominium Property Amendment Act was passed in December 2014. The province said the next step was to create more than 50 supporting regulations, which are being developed and implemented in phases.
Malkinson said the new regulations “provide the best balance” of interests and diverse views heard during the consultation process.
He said the third phase of regulations will be focused on dispute resolution.
“Currently, really the only way for those to get resolved is through the courts,” he said. “That is not efficient, that is not effective, and it’s frankly quite expensive for things that could be done through noncourt dispute resolution and mediation services, so we’re going to consult on that.”
I wish it had been more in terms of dealing with some of the specifics.