The province’s annual report card from the Auditor General was released today, which included 13 stand-alone value-for-money audits, including an audit of Condominium Oversight in Ontario (adsbygoogle = window.adsbygoogle || []).push({});>Auditor General Bonnie Lysyk’s sweeping annual report covers a wide range of areas, such as the oversight of retirement homes and condominiums, and co-ordination of Indigenous affairs, as well as the delivery of virtual health care, which has increased in use significantly since the onset of the COVID-19 pandemic. According to the report, Lysyk found many condominium purchasers may not fully understand the financial implications, such as maintenance fees and reserve funds needed for repairs, of buying this type of home. The audit also found that condo owners had difficulty accessing condo corporation information and records, and complaints were closed too soon.READ: The Toronto Housing Market is on Fire, Except Where it’s Not“The existing model for the condo sector does not provide effective consumer protection and does not address the risks that exist for condo owners and buyers,” the auditor warned in her multi-volume 1,444-page report.“For example, reforms not yet in force at the time of our audit included changes to help ensure that condo buyers receive accurate financial information about the cost of purchasing and maintaining their home,” she said.“This has resulted in some condo developers understating condo fees so as to stay competitive with other developers to attract potential buyers.” Lysyk also found problems with the Condominium Authority of Ontario, noting it “lacks the ability to inspect or investigate potential abuses or misconduct by condo boards, or investigate non-compliance and enforce compliance with the relevant legislation and regulations.” Another agency, the Condominium Management Regulatory Authority “does not effectively address complaints, inspect condo managers and management companies proactively, or identify unlicensed individuals and companies providing management services,” the report says. “Overall, we concluded that the mandates given to the Condominium Authority of Ontario (Condo Authority) and the Condominium Authority Tribunal (Tribunal) are limited and do not sufficiently protect condo owners against common issues that they may encounter in their daily condo living,” reads the report. “Many of the relevant 2015 amendments to the Condominium Act, 1998, that would provide more consumer protection giving condo owners and boards a stronger ability to manage their ownership interests and/or responsibilities effectively, are not proclaimed and therefore are not in force.” The audit also found the majority of condo boards surveyed did not have adequate reserve funds set aside to cover future repairs and replacements, while purchasers are not provided enough information on how condominium fees are set and managed
