Residents of an apartment complex in Kanata’s Katimavik neighbourhood are facing a huge repair bill that some say came as a complete surprise.
In March, the 40 condo owners in Stratas Court off Eagleson Road learned that it would cost them a total of $600,000 to repair the railings and leaky glass solariums in the 40-year-old complex.
Although they had been warned of an impending special levy last September, the owners stated that they had only learned of the amount of the levy three months ago and now had less than three weeks to pay their share.
It will set me back years financially. – Jonathan Gibson Davis, condo owner
“To be honest, I was completely shocked. I cried,” says retiree Lynn Braun, who bought her condo just a year ago.
Braun said she had only been living there for nine months when she received the letter from Carleton Condominium Corporation 281 (CCC281) informing her that her share of the special assessment was $13,000, in addition to her usual mortgage and condo fees.
Braun said she is now struggling to raise the money and is so unsettled by the unexpected burden that she is considering taking another step.
“I can’t live with the fear that they might do something like that. That’s not retirement for me,” she said.
Lynn Braun, left, moved into her Stratas Court condo last June and now faces a $13,000 repair bill. (Stu Mills/CBC)
Leaky conservatories
The five three-story brick buildings at Stratas Court were built in the 1980s. Thirty of the 40 units feature a glass-enclosed conservatory that, according to a property listing, welcomes visitors to “a light and airy interior, the highlight of which is the solarium, which floods the space with natural light and creates a cozy and inviting atmosphere all year round.”
However, this natural light comes at a price.
A study conducted last year to examine whether the housing association had sufficient cash in its reserves recommended that the cause of the recurring leaks in these solariums be investigated and fixed once and for all.
Rotting exterior wooden elements and safety barriers that no longer comply with building regulations also need to be repaired, the report says.
In a March letter, Sentinel Management, the property manager hired by the housing association, asked owners to shell out the $600,000 by June 30. The amount each owner must pay is based on the size of their unit.
Part of the $600,000 will be spent on investigating and repairing leaky seals around distinctive conservatories like this one. (The Agency Real Estate)
Threatened with lien
Residents, including Jonathan Gibson Davis, were warned that neither deferment nor installment payments would be offered as a payment option. He was told that if he did not pay his share of about $11,000 by the deadline, the housing association would immediately seek to foreclose on his property.
In Ontario, this would give the company priority over virtually all other claims to the unit, including those of the mortgage holder.
“It seems a little aggressive and a little premature to me,” says Davis, a single father whose share of the $600,000 is on the lower end.
“I’m going to have to push everything to the limit and take out a loan. That will set me back years financially,” he said.
However, CCC281 insists that the full amount must be in place by the end of the month so that contractors can be hired in time for the construction season and before the inevitable increase in costs.
“I understand it’s a difficult situation,” said Noah Johnston of Sentinel Management, adding, “Health and safety must come first.”
Jane Duplante, a board member of the condo association, said the latest special levy is the third she has had to pay since purchasing the property in 2011. (Stu Mills/CBC)
Mandatory financial audit
In Ontario, homeowners associations are required to conduct a reserve analysis during their first year of registration – and at least every three years thereafter – to determine whether they have sufficient cash to cover upcoming repair and maintenance costs.
Rod Escayola, a lawyer specializing in condominium law, said other condominium associations have recently experienced a “price shock” when it comes to repair costs, with the actual bill often far exceeding reserve study estimates.
“It’s a very incomplete science at best,” says Escayola, who advises condo buyers to always look for a “certificate of status” – a current picture of a condo association’s financial health.
Railings and other outdoor facilities have deteriorated and no longer meet regulations. (Stu Mills/CBC)
At Stratas Court, this is the third time that board member Jane Duplante has been faced with a large special assessment bill since she moved in 13 years ago.
Still, she remains optimistic about the $18,000 bill that is due in a few weeks.
“It has to be done, it’s part of buying a condo. You still have to put money aside, you’re part of a community,” she said.
Lynn Braun said she wished she had heard this advice sooner.
“Obviously I didn’t do enough research on this,” she said.
