News / Articles

• Condominium Act Amendments
• The Condominium Act Discussion Paper Released
• The CCI Nova Scotia Advocacy Committee Proposal to Government
• Condominium Act Review - Stakeholder Update
• Energy Retrofit Program
• Danny Chedrawe-Third-Party Needed To Ensure Condo Quality

Condominium Act Amendments

The Nova Scotia Government had tabled Bill 38, The Amendments to the Condominium Act. Bill 38 can be accessed on line at the following address:
http://www.gov.ns.ca/legislature/legc//b09n.htm

As an alternative the Bill can be seen by going to the Nova Scotia Government website ( www.gov.ns.ca), put “2009 status of bills” into the Search in the upper right hand corner, click on the top response (NOVA SCOTIA LEGISLATURE....STATUS OF BILLS - 2009) and scroll down to the alphabetical listing (condominium act - amended - Bill 38).

Who to call to appear at Law Amendments:
http://www.gov.ns.ca/legislature/COMMITTEES/law.html

The Condominium Act Discussion Paper Released

The Nova Scotia Government has released The Condominium Act Discussion Paper.

The CCI Nova Scotia Advocacy Committee Proposal to Government-INTRODUCTION

The CCI Nova Scotia Advocacy Committee Proposal to Government-INTRODUCTION

The Nova Scotia Chapter of the Canadian Condominium Institute has, for some time, been concerned that many purchasers of residential properties, particularly condominium developments, are faced with a multitude of varying latent defects and construction deficiencies soon after the Condominium Corporation assumes control of the property.

Concerns were first mentioned at CCI-Nova Scotia's annual general meeting in 2006. In an effort to be constructive we formed an Advocacy Committee in early 2007 to document the problem, examine the options for dealing with the problem, and recommending a course of remedial action to the Nova Scotia Government. The recommendations were formally adopted as policy at our 2007 annual general meeting and they were presented to the Nova Scotia government during the fall sitting of the legislature in November, 2007.

The CCI Nova Scotia Advocacy Committee Proposal to Government-PROPOSAL

The proposal is shown below. You can also download the Proposal to Government in PDF Format.
(NOTE: More information is available about the PDF Format)

CCI Canadian Condominium Institute
Nova Scotia Chapter
ADVOCACY COMMITTEE
PROPOSAL to GOVERNMENT November 2007

The Canadian Condominium Institute (CCI) is celebrating its 25th Anniversary this year. It prides itself as being the voice of condominium in Canada. The Nova Scotia Chapter began 24 years ago as a Provincial Association and later joined CCI Canada as the Nova Scotia Chapter. There are approximately 20,000 condominiums units in Nova Scotia and 4,000 of these are members of the Nova Scotia Chapter through their condominium corporations. Member corporations are located in Sydney, Truro, Pictou County, Annapolis County, Lunenburg County and Halifax County. The number of members is growing each year and membership is spreading across Nova Scotia as new condominium projects are being developed.

CCI provides a forum for condominium owners to get together for:

• Educational Courses and Seminars

• Networking

• Professional Referrals and Advice

• A Voice to Government Legislation

CCI services include an ACCI designation for Professionals involved in the industry, Chapter and National Newsletters, publications related to Condominium ownership and management and advice on development standards.

At a recent Annual General Meeting of the Nova Scotia Chapter the audience expressed the feeling that CCI Nova Scotia Chapter was performing well with respect to its mandate to educate those involved in condominium, in offering professional advice to its members, and developing best standards and practices for condominium directors and professionals. There was a feeling, however, that CCI Nova Scotia Chapter should assume more of an advocacy role with respect to developing methods to protect condominium buyers and owners from a serious problem that has long existed and is growing exponentially with the explosion of Condominium Developments in Nova Scotia.

The Problem

The root problem is that many purchasers of residential properties, particularly condominium developments of all types, are faced with a multitude of varying latent defects and construction deficiencies soon after the Condominium Corporation is registered and assumes control of the property.

These deficiencies are sometimes apparent shortly after management of the property is transferred from Developer to Condominium Corporation, but often, they do not manifest themselves until the Warranty Period has expired.

When these problems are detected, Condominium Corporations seek remediation from the Developer. All to often, they are met with either complete denial of any responsibility or with insincere assurances of action that only serve to delay and compound the problem.

In some instances, the company that developed and sold the property turns out to be a stand-alone shell corporation that no longer has any assets. This leaves the Condominium Corporation owners with only one option, fix and pay for the problem themselves with successful legal action to recover their costs extremely doubtful; even if the law rules in their favor with a positive judgment.

Who is left holding the bag for the unexpected costs of fixing construction deficiencies for what is probably the largest purchase of their life? The Condominium buyer !

It is not a coincidence that many developers build sub-standard, deficiency riddled buildings. There are many good developers and builders but there are also many developers that take full advantage of the lenient permit requirements, loopholes in the inspection process and lack of knowledge or license requirements. Many provinces have regulations in place that require all Developers and contractors, not only plumbers and electricians, to pass stringent testing prior to obtaining a license. Nova Scotia does not.

CCI Action

CCI Nova Scotia formed the Advocacy Committee. Its members include condominium owners, lawyers with vast Nova Scotia condominium experience, Property Managers, Real Estate specialists and a former Developer. Their combined experience means they were very familiar with all aspects of Condominium purchasing, living, construction and management.

Their mandate was to explore and recommend methods of ensuring that the purchasers of residential properties, particularly multi-unit Condominium buildings could purchase their home with adequate regulations and safeguards in place to protect them from problems of this nature.

CCI Nova Scotia Chapter sent out a questionnaire to all members requesting more information on their experiences in purchasing their condominium. The responses were overwhelmingly filled with experiences of having to fund repairs for construction deficiencies. Respondents reported costs ranging from hundreds of thousands to over a million and a half dollars. This was a cost to individual owners in the building,$37,000.

Many condominium owners are reluctant to publicly state the problems they are facing because taking this action may impact negatively on the value of their home. For many it is their major asset. In circulating the questionnaire the Advocacy Committee stated that the responses would not be released in any manner that would identify the problem with a particular condominium development. The following quotes from returned questionnaires will serve to illustrate the problem while still maintaining the confidentiality of the respondent:

• “After five years from new (the building), moisture and rot. Outer cladding and balconies removed and replaced. Cost $400,000".
• “Leaks; Drainage Problem; Roof Shingle Replacements; Building Settling Problems; General Repairs. In many cases work started but not completed. Promises, Promises, Promises - Never kept.”
• “Chimney needed replacement. Furnace changed from specs resulting in extreme heat (in original chimney) and in units above the furnace room.”
• “Poor construction......Inferior wooden windows and patio doors were installed without proper insulation, resulting in leaks and eventual rot...........To date the cost to the owners has totaled approximately 0.5 million dollars”
• “A professional engineer was employed by the Board to assess the building for leaks and their causes.......It was recommended that the siding (brick) be removed and flashing installed correctly around decks and windows. The cost was borne by a special assessment for the owners and re-mortgaging the superintendents unit. Condo fees will be substantially increased this year since the reserve fund must be replaced.”
• “Brickwork was removed from entire damaged area. Extensive structural rotting resulted in replacement of beams, studs etc. Steps were taken to remove mold. Corporation (Condo) assumed responsibility because repairs had to be done and warranty claim was denied.”

These quotes taken from responses made by different condominium corporations serve to illustrate the problem. Recent press coverage identified problems in one condominium that will result in special assessments to the owners of $20,000 - $35,000.

The CCI Advocacy Committee gathered information on the programs in place in other Provinces with particular emphasis on Quebec, Ontario, and British Columbia where similar problems have been encountered in the past. The Committee was particularly impressed with the process used in Quebec.

The Recommended Solution

Based on the information gathered, the CCI Advocacy Committee has developed a list of recommendations with the goal to have Government enact Legislation to provide increased protection to the residential purchaser.

These recommendations when enacted would provide more stringent requirements for obtaining developer/contractor licenses, building permits and more complete consumer protection for the residential property purchaser.

Our recommendations are:

1. Improve the quality of construction by:
(a) Mandatory annual licensing of all developers/contractors, through a Province regulated program of education and testing.
(b) More stringent requirements to obtain new Residential Development Permits such as, the obligation to register with a Provincially regulated Construction Association.

The developer would be required to deposit in a Fund controlled by this Association, a Performance Bond based on a percentage of the value of the development for which the permit is requested. This bond would be held for a pre-determined period of time after the completion of the project to cover any latent construction defects.

c) Mandatory third party (arm's length) Project Management of the development by a certified engineering firm. The engineers would supervise the complete construction project on behalf of the Condominium Corporation to be registered. Their job would be to insure that all is in compliance with the approved plans and all building codes.

2. Amend the Provincial legislation to include developers, contractors, sub-contractors and suppliers in the arbitration provisions of the Condominium Act.

These recommendations were discussed at the CCI Nova Scotia Annual General Meeting held in September 2007 and unanimously endorsed by the members in attendance.

Further Recommendations

In addition, the members present at the annual meeting unanimously recommended that the following issues be addressed and added to the report:

• The Residential Construction Regulations Committee recently announced and established by the Minister responsible for the Condominium Act should include representatives of the industry and not just government employees.
• The same process re inspections during construction should apply to remedial projects
• Architects & Contractors should be at arm's length from the Developer or company
• Realtors should be acting at arms length from the Developer
• Developers and Contractors should be held responsible - not sub-contractors

CCI Nova Scotia Chapter respectfully submits all these recommendations to the Government of Nova Scotia for action. CCI Nova Scotia will make its resources available to work with the Government to bring about the necessary changes to the Condominium Act and such other Acts of the Legislature that may be affected.

Sincerely
Norma Cameron, President Dan Galletti, RPM, Chaiman
CCI Nova Scotia Chapter CCI Advocacy Committee

Condominium Act Review - Stakeholder Update

The Condominium Act Review Committee

The Condominium Act Review Committee, formed of representatives from Condominium Corporations, Developers, Property Managers, Condominium Owners of Nova Scotia, the Nova Scotia Branch of the Canadian Condominium Institute (CCI), and the legal community, as well as representatives from Service Nova Scotia & Municipal Relations (SNSMR), met on Wednesday, June 25th to begin a review of the Nova Scotia Condominium Act.

The members brought forward concerns and areas for improvement on behalf of the groups they represent. These items will be discussed by the committee at three additional meetings that will take place over the summer months. SNSMR staff will also look at how other provinces and jurisdictions are addressing similar issues.

The second meeting is scheduled to take place on July 17, 2008. A Discussion paper will be released in fall of 2008.

The Condominium Act

The Condominium Act was established 1976 to specifically address the unique nature of condominiums. It was last amended in 2000, and lists required documents to register a condominium and establishes a basic framework for the operation of a condominium corporation (including bylaws, disclosure requirements, and corporate responsibilities). The Act also defines the role of the Registrar of Condominiums.

It is not the purpose of the Act or its Regulations to deal with the day to day operations of condominium corporations. Each condominium has a Declaration (written and filed by the Developer) and Bylaws (created by the condominium corporation). The bylaws, which must agree with the content of the act, establish terms for day to day operations and may be amended by the condominium corporation.

Committee Members

John MacKay, Chair, SNSMR
Jo-Ann Hamilton, Registrar of Condominiums, SNSMR
Ian MacLellan, Deputy Registrar of Condominiums, SNSMR
Brad Gibb, Project Coordinator, SNSMR
Rhia Perkins, Research & Statistical Officer, SNSMR
John Cameron, QC (SNSMR)
Patrick Cassidy, Cassidy Nearing Berryman
Patsy Ernst, Canadian Condominium Institute
Carol Conrad, Canadian Condominium Institute
Elizabeth Haldane, Nova Scotia Barrister’s Society
Lorne Verabioff, Condominium Owners of NS
Ray Hunt, Condominium Owners of NS
Erin O’Brien Edmonds, Burchell MacDougall
Bryna Fraser, Burchell MacDougall
Dan Galetti, Merit Property Management
Lisa Power, Citigroup Property Management

Energy Retrofit Program

Energy Retrofit Opportunity for Condominium Corporations

Condominium Corporations in Nova Scotia will soon be able to reduce their electricity and water use with help from a new Conserve Nova Scotia program that will combine education, information and rebates to promote the use of fast payback, low cost energy and water conservation devices.

Eligible equipment is expected to include items such as LED exit lights, high performance T8 fluorescent lighting products, compact fluorescent lights, energy efficient outdoor lighting, and water conservation devices such as low-flow showerheads and front-load washing machines used in common laundry areas.

Energy savings from lighting improvements can add up quickly, especially for lights that must be left on 24 hours per day.

• retrofitting an incandescent exit sign with LED lamps can cut electricity use by $25/year/fixture plus virtually eliminate maintenance.
• replacing a conventional 60-watt lamp with a 13-watt compact fluorescent lamp can save up to $40 per year /fixture plus maintenance
• retrofitting an older two lamp fluorescent lamp to a new high performance T8 lamp can cut electricity use by almost $30 per year/fixture

Water use can also be dramatically decreased through the use more efficient devices and better maintenance practices. For example, low-flow shower heads can reduce hot water use by 30 per cent or more.

To participate in the program, condominium corporations must receive advance approval for the products they need to improve their building's energy efficiency. Once approval is received, the product may be purchased and installed. After proof of purchase is forwarded, a rebate cheque will be issued.

The program will be administered by the Investment Property Owners Association of Nova Scotia (IPOANS) on behalf of Conserve Nova Scotia. The program will be open to all landlords and condominium corporations in Nova Scotia. In addition to the rebate program, IPOANS will provide participants with information regarding the use and benefits of energy saving devices.

To learn more about this program watch the IPOANS website for more information as program details are finalized or send an email to association@ipoans.ns.ca to register your interest in the program.

Danny Chedrawe-Third-Party Needed To Ensure Condo Quality

Third-Party Needed To Ensure Condo Quality

Through its Homeowner Protection Review process, the Nova Scotia government is seeking input from all sides to address concerns about poor quality construction in new homes and condominiums.

CCI-NS asked well-known Halifax developer, Danny Chedrawe, for his thoughts on ways to improve construction quality. His company, Westwood Construction, built the Wellington South and Garden Crest Tower & Villa condominiums and is now building the Gladstone Ridge complex.

Nova Scotia's condominium industry has to change. It has to be managed better than it has been. Solutions have to be sensitive and sensible. If you over-regulate, you discourage growth and drive up costs and prices. If there are too few regulations, the consumer is not protected.

Right now, there is virtually no regulation and there is a tendency to blame. The first thing people do is blame the developer, blame the manufacturer, blame the government. That's the easy way out.

Recommendations:

Legislation to mandate third-party independent review for all projects. Especially to oversee the installation of the roof membrane and exterior envelope. Third-party review (by an engineering consultant, for example) is worth the money spent. It helps avoid long-term problems.

Establish a Contingency Fund, run by the Registrar of Condominiums and levy an additional fee ($500, perhaps $1,000) for every new condominium registered in Nova Scotia. The fees would be collected and the fund administered by the Registrar of Condominiums. Proceeds would act as an insurance policy to be used to correct problems associated with poor-quality construction.

Atlantic-region-wide certification of tradesmen: We have to find a better way to certify skilled trades people in the Maritimes to ensure the men and women that Developers employ deliver uniform, consistent-quality work.

To sum up, it's very important that this industry runs well. If the consumer is protected in ways that make the marketplace stronger, then everyone wins.

-- Daniel Chedrawe

About The PDF Format

These documents are in PDF format. You will need Adobe Acrobat Reader to view/print this PDF file. If you do not have it on your computer already, you may download the newest version of this program for free from the Adobe web site. If you are a blind or visually impaired user, Adobe provides PDF conversion tools that may be of interest to you. If you require a text version of this file or if you experience any problems with this PDF document, please contact us.