July 9, 2021
On June 24th, part of the Champlain Towers South condo building in Surfside, Florida, suddenly collapsed, resulting in a tragic loss of life. To our knowledge this was a direct result of structural deficiencies at the time of construction, delayed repairs because of lack of funds and a series of other unfortunate events. However, this occurrence brought about several questions regarding the state of our condominiums here in Ontario and the regulations and procedures in place to prevent a similar event.
The most crucial difference we at Alwington Communities would like to highlight is that the Ontario Condominium industry is fully regulated, unlike that of our Floridian counterparts. This regulation is in the form of the Condominium Act, 1998. This Act regulates most aspects of condominium formation, purchasing, living in, and governance. It provides strict guidelines regarding the maintenance and repairs of the property that we, as the management company have a fiduciary obligation to follow.
The first major inspection of a property comes at the end of construction. The Condominium Act requires that a performance audit of the common elements be conducted. This audit specifically looks for any deficiencies in the construction and is conducted by an independent engineer hired by the board of directors. Once the audit is completed any deficiencies highlighted must be corrected by the builder. Also, under the Ontario New Home Warranties Plan Act and Regulations (Tarion) the property is protected under the Seven Year Warranty regarding any major structural defects.
Along with the performance audit, the Condominium Act, requires that all condominiums have a reserve fund. The reserve fund is used to pay for major renovation or repairs projects and comes from a portion of owners monthly maintenance fees. According to the Condominium Authority of Ontario, reserve fund studies include both a physical assessment and a financial plan. Some of the areas the study will address, includes but not limited to, details such as:
all parts of the building the corporation will have to repair or replace. These are usually referred to as “components.” These can include exclusive-use common elements, like balconies and backyards.
estimates as to when the repair or replacement of a component is expected to occur.
estimates of the amount of each expenditure in each year.
This study is done every three (3) years, alternating between an update with physical inspection and one without, therefore the longest a property goes without an engineer’s inspection is six (6) years.
Based on our research and communication with industry professionals in the US, it is not a requirement for them to have Reserve Funds and their typical cycle for an engineer’s inspection is every 40 years. This is shocking as the properties on the sunbelt of the US are subjected elemental issues like sea salt, hurricanes, surges, and tropical downpours on a regular basis, all of which are known to deteriorate concrete. Also based on this information, except for the 2018 inspection, it is a possibility the Surfside property had not been inspected for decades as they were on the cusp of their 40-year anniversary.
While this event is a culmination of different incidents; having a licensed management company and an educated and active board is important for the success of your community as they can mitigate any unforeseen issues. At Alwington Communities we:
Interact with our board of directors weekly, and board meetings are held either monthly or quarterly.
Site inspections are done weekly, biweekly, monthly, or quarterly depending on the property.
All deficiencies are reported immediately, and the appropriate contractors are contacted with board’s approval.
We pride ourselves in having open communication with owners, for any records owners would like to review; a request can be made to the manager who will assist you in the request procedure. This is important as there are rules for the request of core and non- core records.
The health and safety of our owners and residents are of utmost importance to us, and we can confirm that all regulatory requirements are being met and are updated regularly. Therefore, you can rest assured that your community continues to be safe.
Alwington Communities Inc.
Ashlee Henry. BSc. OLCM RCM CPM Candidate
Vice President of Operations/Condominium Manager
Alwington Communities Inc.
Alwington Communities Inc.
310 Bagot St. Kingston ON K7K 3B5
