Fitness gear runs as an operating fund expense
Would payment for fitness room equipment come out of our corporation’s reserve or operating fund?
The operating fund. The reserve fund may only be used for major repairs to, and replacements of, the common elements and assets of the corporation. Section 97 of the Condominium Act may permit or require a vote by the owners for the purchase. The Condominium Act says that a condo with fewer than 25 units may choose to not appoint an auditor at the annual general meeting. At the AGM for our 20-unit building, a motion to dispense with that appointment passed unanimously. Is the management company now correct in saying that the vote was invalid because there must be 100-percent approval of the owners?
Yes. All of the unit owners must agree in writing, prior to the AGM, to dispense with the audit for the current fiscal year. Is our board correct in refusing my requests to attend the board of directors’ meetings as an observer, and to receive copies of board minutes?
A unit owner is not entitled to attend a board meeting unless invited by the board.
You are entitled to examine minutes of board meetings with a writ- ten request and reasonable notice. You are entitled to copies of the examined records upon payment of a reasonable fee for labour and copying charges. Information relating to employees of the corporation, or to actual or pending litigation or insurance investigations involving the corporation, or relating to other owners or their units, will be removed. The Condominium Act defines a substantial alteration as one estimated to cost 10 per cent of the annual budget. Does the budget for that calculation include the total amount of the owners’ annual contributions to the reserve fund?
Yes. The Act provides that owners’ reserve fund contributions shall be collected as part of their contributions to the common expenses. Our board is changing the colour of our building’s exterior as part of a refurbishment that will cost more than 10 per cent of the budget. The board maintains that, under the Condominium Act, the consent of owners is not required. Is this not a substantial common element alteration requiring approval by a vote of two-thirds of the owners?
No, the change in colour will not convert a necessary common element refurbishment into an alteration requiring a vote of the owners. Lawyer Gerry Hyman is an expert in condominium law. Send questions to gerry@gerryhyman.com or fax to his attention at 416-925-8492. Letter volume prevents individual replies.