CCI Manitoba Chapter News

Political Updates Impacting Condos March 2025

We now have a new Prime Minister, a disappearing consumer carbon tax and potential tariffs due to the POTUS. These major political events offer us an opportunity to strengthen our efforts, but there are also impacts to condominium corporations that our members should be aware of.

Courtesy of the CCI Toronto chapter, we are sharing some information about the carbon tax and tariff implications.

Carbon Tax

Mark Carney has announced the removal of the Consumer Carbon Tax on April 1.

Condominium corporations currently preparing a budget should be aware of the upcoming removal of the Federal Carbon Charge from their natural gas bill. This amount should be clearly identified on your natural gas bills. Be mindful in budget preparation that commodity prices may still increase year over year.

Condominium corporations who have already set their budgets for the current fiscal year should see a growing positive variance each month as a result of the elimination of the Carbon Tax.

The elimination of this tax is significant because the previous government had approved a 25% increase in the carbon tax each year going forward until we reach NetZero in 2050.

Tariffs

The POTUS announcement of tariffs on construction materials such as steel, aluminum, lumber, and glass could have a significant impact on condominium budgets and capital projects. With much uncertainty about how and when tariffs will be implemented, we are in a period of economic uncertainty and condominium corporations may be unsure of what to do, or how the tariffs will impact their projects, and consequently their reserve funds. For condominium boards, it’s crucial to take a proactive approach to financial planning and project management to mitigate risks and maintain stability within your condo community.

Key Recommendations for Condo Boards and Property Managers:

1. Stick to the Fundamentals – Develop budgets based on current market conditions. While tariffs could introduce cost fluctuations, it is important to rely on the best available information and adjust as needed. Avoid speculative decision-making or attempts to “time the market”.

2. Update Reserve Fund Studies (RFS) More Frequently – When tariffs become a reality, updating your RFS more frequently than the standard five-year cycle may provide a clearer picture of long-term financial impacts and ensure funding remains aligned with anticipated costs. This can be especially critical if there are several major near-term projects.

3. Review Project Timelines – Work with your professionals to assess whether advancing or postponing specific projects makes financial sense. Consider early procurement of materials where advantageous, but only if the terms and conditions align with your overall financial strategy.

4. Evaluate Alternative Options – Explore price differentials between domestic suppliers and imported materials, as well as alternative products that could offer cost savings without compromising quality.

5. Prioritize Communication with Owners – Transparency is key. Keep owners informed about the potential impact of tariffs and the proactive steps the board is taking to manage costs effectively. Consider adding this topic to your next monthly board meeting agenda to ensure alignment on strategy and messaging.

6. Engage Industry Professionals – Work with consultants, contractors, and suppliers to understand how tariffs might impact supply chains and costs. Re-tendering for specific services or materials may be beneficial in some cases, but only if the timing and contract conditions allow for it.

Bottom Line:

Stay the Course. Similar to past economic uncertainties, such as the COVID-19 pandemic, attempting to time the market can often lead to higher costs and project delays. The best approach is to remain informed, stick to well-established planning principles, and make strategic adjustments as needed.

We encourage boards and property managers to remain proactive, communicate openly with their communities, and leverage professional expertise to navigate these potential changes effectively.

Stay informed and stay ahead!