In this installment on the changes Bill 106 may bring to the existing Condominium Act, we focus on the changes expected to affect how corporations adopt and disclose their yearly budgets.
Bill 106 proposes to add an entire section on corporations’ budgets. This is new as the present Condominium Act is nearly silent on this question.
If the amendments are passed, corporations’ budgets will continue to be adopted by boards and will continue to not be the subject of a vote by owners. However, boards will have more stringent timelines and disclosure obligations when dealing with their budgets. For instance, 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.
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. It is also interesting to note that 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 regulation.
In our next post, we will turn our minds to some of the changes affecting how reserve funds are planned for and what they can be used for.
To read our other posts on the proposed changes to the Condominium Act, search this blog by topic (see the menu at the top of the page) and select “Amendments to the Condo Act“.