Here are some items in relation to prior newsletter articles, Lunch-n- Learns, webinars and Conversations in prior Newsletter editions. If you want to contribute to the discussion, you can make a submission to cci-manitoba.ca/resources/condo-conversation-corner

UNAUTHORIZED CHANGES TO COMMON ELEMENTS OR UNITS
We had an inquiry from someone who purchased a condo unit, and then sometime after moving in, they were approached by the condo corporation (CC) about an unauthorized change by the prior unit owner, who had put in a patio. Sound legal advice is required here and CCI Manitoba is not in a position to provide such advice. For reference, here is our standard disclaimer

Please be advised that our office is unable to provide specific legal advice. We recommend that you speak to a lawyer regarding the challenges or problems you may be experiencing. For your information, a list of lawyers who are Professional Members of the Manitoba Chapter of the Canadian Condominium Institute can be found in the newsletter and on our website.

While we can’t provide advice, we can use this as a learning example and consider the general case of an unauthorized change within the context of new ownership of a condo unit. This is where you, our members can help. We’d like to have a comprehensive discussion on the topic and are asking you to contribute through our Condo Conversation Corner. While buying or selling a condo do you have any first hand experience with unauthorized changes, disclosure problems or material changes? How familiar are you with the disclosure requirements? Do you thoroughly read the disclosure statements and the status certificate, or just rely on your lawyer to do so? What other comments do you have to contribute to the discussion?

CONDO CORPORATION PUBLIC HEALTH ORDERS

A question was submitted asking whether a condominium corporation (CC) could ban all visitors in a building and/or ban visiting between condo owners and renters in the same building. This was touched on during our April 27th webinar Condos & Covid-19, the recording of which is available on our website https://cci-manitoba.ca in the Members Only area under Podcasts. At about the 35 minute mark of the recording the question about the authority of CCs is raised in relation to public health orders. Basically, the CC does not have the authority to enforce a public health order.

CONDO CORPORATION LOANS

A Lunch-n-Learn presentation was made on the topic of Condominium Corporation Financing: An Alternative to Special Assessment Feb 27, 2020.¹ The spring 2020 Newsletter also contained a related article², that prompted a member to provide feedback. The member expressed concern that by promoting the option of condo corporation loans, CCI was enabling CC Boards to underfund the reserve fund providing an advantage for current owners at the expense of future owners. We agreethat underfunding a reserve fund is problematic, and in some cases, a loan might be a reasonable alternative to a special assessment. CCI is not endorsing one plan over another, only pointing out an option that unit owners and CC boards have.

When the Manitoba Condo Act was updated in 2015 requiring reserve fund studies (RFS) every five years, many CC Boards found their reserve fund inadequate. Diligent CC Boards would have responded promptly based on their RFS, and increased their contributions to their reserve fund. However, if there were urgent needs to repair or renovate the common element, if the CC was unaware of the loan option, the current owners might have had to fund a special assessment for current repairs or replacement while also increasing their reserve fund contributions. In this case a CC loan would seem to be a reasonable course of action.