Bill 106, Protecting Condominium Owners Act, 2015 proposes to add an entire section on Corporations’ budgets.
The existing Condominium Act is relatively silent with respect to budgets. The new amendments, if passed, will still provide that Boards continue to adopt budgets, and not be the subject of a vote by owners.
In addition, Boards will have more stringent timelines, along with disclosure obligations when dealing with these budgets.
It is proposed that Corporations will have to adopt their budget at least 30 days before the end of their fiscal year and will have to circulate it to the owners within 15 days of its adoption. More importantly, Boards will not be allowed to implement their budget until it has been circulated to owners. In the event a Board is to amend the budget, it will also have to provide notice of such amendments to owners. Many Property Management companies, such as Central Erin Property Management, have been in compliance with this change and many other changes, well in advance of the Bill 106 even being proposed, advising the Boards of the proper protocols.
It is interesting to note that Corporations will not be allowed to go over budget on certain expenses (which have yet to be identified by regulation) unless notice is provided to owners.
Bill 106 proposes to require specific procurement processes when Corporations contemplate entering into certain contracts or arrangements. The kind of contracts requiring a more stringent procurement process and the kind of process to be followed has yet to be defined by the Regulations.
Stay tuned to more updates on Bill 106.