Background – The Condominium Act Review
Due to the growth and change in Ontario's condo sector over the past decade, in 2012, Ontario announced a review of its condo law, the Condominium Act. This review was meant to ensure that the legislation would be current given the growth of the condominium sector, the corresponding growth in demand for enhanced standards in condo management services and the diversity of disputes that are arising within the condo communities.
The Condominium Act Review was an 18-month collaborative public engagement process undertaken by the government that provided condo owners, owner associations, condo directors, condo developers, condo managers and other experts an opportunity to identify issues in condo communities and to work together to develop long-term solutions.
The review was extensive and generated more than 2,000 submissions and more than 200 recommendations. These included significant reforms to strengthen consumer protection and support the needs of both current and future condo owners. Canada's Public Policy Forum has published reports outlining the findings and recommendations from Stage One and Stage Two of this review.
Based on the findings of the review, the government introduced new legislation and amended existing legislation to be responsive to Ontario's changing condo sector.
Protecting Condominium Owners Act
The Protecting Condominium Owners Act, 2015 (PCOA) was the province’s first major update in condo law in more than 16 years. The Protecting Condominium Owners Act:
- amends the Condominium Act, 1998 and the Ontario New Home Warranties Plan Act
- enacts the Condominium Management Services Act, 2015 (CMSA)
- makes consequential amendments to other relevant legislation
These legislative changes enable the establishment of two new condo sector administrative authorities.
The majority of the provisions of the Protecting Condominium Owners Act are not yet in force and will come into force on dates set by proclamation of the Lieutenant Governor. Due to the fact that the condo sector continues to change rapidly, regulations are needed to support the implementation of these legislative changes. The government is preparing and will continue to prepare these regulations with input from the public, condo unit owners and the condo sector, including consultation through Ontario's Regulatory Registry.
The Condominium Management Services Act, 2015
In response to feedback received during the Condominium Act Review, the Ontario government is working to implement new legislation, the Condominium Management Services Act, 2015 (CMSA), which, once proclaimed into force, would provide for the licensing and regulation of condominium managers and condominium management providers in Ontario to establish standards and enhance condo management, ensuring competence and integrity.
If designated, the Condominium Management Regulatory Authority of Ontario (CMRAO) would administer the CMSA and regulations made under it, which will, among other things, set out training and education requirements to apply for a licence, for condo managers, a code of ethics for licensees and provisions governing the conduct of licensees. There will also be a process for responding to complaints regarding condo managers.
The Ministry of Government and Consumer Services has posted the General Regulation to support implementation of the Condominium Management Services Act, 2015. This regulation contains information about the requirements for condominium manager licensing and is expected to come into force November 1, 2017.