Toronto Development Charges Condo and SFD

Proposed Development charges increase in 2014 approved as presented at Toronto City Council October 8th 2013.

Development chargesCouncil approved changes to the development charges the City collects from new construction to pay for a portion of growth-related capital costs. The new development charges bylaw will take effect on November 1. Under the new bylaw, rates will be increased over two years by about 75 per cent for residential development by 25 per cent for non-residential development beginning February 1, 2014. Council also adopted several motions concerning requests for reports and/or potential actions on topics such as affordable housing, development within priority neighbourhoods, and provincial development charges legislation. 

http://markgrimes.ca/toronto-city-council-highlights-meeting-october-8-9-10-11-2013/ 

While the City of Toronto is building 3 times as many condominium units as compared to the Region of Peel; the Development Fees are less than half and actually a third.  http://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-59642.pdf  The aging / mature population and the influx of people to Toronto continues. To suggest there will be more building of single family homes [in the 416] is uninformed.  Building will be up and ever higher. 

The Development Fees should be equivalent  or at least similar between municipalities as we build more condos for Mature Housing and [individually owned] rental units. If you have purchased a condominium unit that is not yet registered, effective the implementation date, if the builder needs to pay these expenses they will be passed on to you at closing.

This is why Stan Gelman urges you to CAPP THE CLOSING COSTS in the Agreement of Purchase and Sale during the Period of Rescission. [Cooling off Period]

Good Advice...  Are you closing on a condo soon?  

New IMPROVED Condo Act coming

Adding a layer of Government that is similar to a Tribunal will create additional government red tape and bureaucracy.  Court Rooms, Paralegals, defenders. Hearing Rooms, Benches, Judges, recordings, DARP where we already have arbitration and mediation available.

All because Buyers refuse to read and understand condo Declarations and want to appeal BY LAWS after they move in.  Yes, I understand that there is opportunity for abuse of the Rules process.

09/24/2013

Residents, stakeholders and experts representing Ontario’s booming condo industry have shared their proposed solutions for updating the province’s Condominium Act. Released on September 24, 2013, the stage two solutions report is the result of extensive public engagement efforts undertaken by Canada’s Public Policy Forum and Ontario’s Ministry of Consumer Services (MCS).

Key recommendations include:

• Creation of a Condo Office, an arm’s length umbrella organization that could provide functions such as education and awareness, dispute settlement, condo manager licensing, and a condo registry.
• Improved consumer education and protection
• Updated financial management rules and dispute resolution mechanisms
• Stronger qualification requirements for condo boards, including mandatory training for first-time members
• A new licensing program, managed by the condo office, to ensure that condo managers are properly trained and qualified.

To produce this report, people with expertise in various condominium issues reviewed the Stage One Findings Report and the public comments it generated.

Documents

Stage 2 participant list

News release

Backgrounder

Stage 2 solutions report--full report

Executive summary

Condominium Management Working Group Outcomes.pdf

Consumer Protection Working Group Outcomes.pdf

Dispute Resolution Working Group Outcomes.pdf

Finance Working Group Outcomes.pdf

Governance Working Group Outcomes.pdf

http://www.ppforum.ca/publications/ontarios-condominium-act-review-stage-two

Condo Owners Need and Boards of Directors also need to band together to get better representation, prices for services and contracts that are tendered.
 https://plus.google.com/u/0/communities/107767300045256504419

Have you had condo problems?

How will you know it's a good deal?

When the traffic is SLAMMED in the other direction with Police, Fire and Ambulance vehicles...  Do you slow to take a grim look around...

The internet is the same.   It's a snap shot of sizzle that grabs your attention... for a moment.

Builders and Developers of Condominium Units understand this concept really well and apply it in their marketing for you be attracted to their plate, to eat the sizzle, consume the hype.  But what is the value when you wake in the morning? 

After the building is up and running the issues are very practical and pragmatic.   Now you need to explain the legal workings and realities of a condo community
I do that.   I help people understand.    Call me 

Condo Corp applies the money you owe where it likes first

If you are behind and have other claim or insurance items outstanding with a Condo Corporation in Ontario;  Case law is clearly on their side.

Owner had set up a pre-authorized payment plan for her common expense payments. In addition to falling behind in the payment of several monthly common expense payments, the owner also was indebted to the Corporation for two chargebacks. One was for plumbing services relating to a leak which the Corporation claimed emanated from the owner’s unit, and the other related to damage caused by the owner to the common element garage door. A lien was then registered against the unit, a notice of sale was issued and the Corporation subsequently commenced an action for possession of the unit. By this time, the Corporation claimed that the total amount owing was in excess of $42,000. This included arrears of common expenses, the two chargebacks, legal costs relating to the lien and the sale proceedings, plus interest. 

This case  is reassuring for condominium corporations as it upheld the practice of most condominium corporations: allocating common expense payments to the oldest indebtedness, including chargebacks. 
http://www.condoreporter.com/allocation-of-common-expense-payments-by-condominium-corporations/


What's the moral of this story? 

Controlling the Condo Inventory

Growth of Condo Units sales has slowed appreciable but has not stopped.  The Rental Price Index has actually increased by 4.6%.  Toronto continues it's stride to become a world class city and destination for money, education and health care. 

Now that the Toronto TTC will receive Federal Funding, the provincial Government, that has had its own spending problem, will increase taxes of its own to raise money for subway construction.

Development charges are only permitted to fund 90 per cent of the capital cost of new transit services, Miller noted. But the charges can be used to fund 100 per cent of the cost of other municipal services, including roads.“Transit is not treated fairly,” says Ontario’ s environment commissioner Gord Miller.
Development charges are fees paid by developers in recognition of the fact that new housing and commercial development increases the strain on municipal services.
http://www.thestar.com/business/2013/09/24/development_charges_should_fund_transit_environment_commissioner.html

Toronto City Council is meeting to decide the fate of the additional taxes for the portion they need to Co -Fund the TTC Subway Dig.

The Provincial Development Charges Act requires municipalities to adopt a development charges bylaw every five years, if not sooner, in order to implement its development charges rates. The City's development charges bylaw will expire in early 2014. The review is being conducted in order to adjust the development charges rates to reflect updates to the City's growth related capital expenditure plans, including the recently adopted 2013-2022 Capital Budget & Plan.Executive Committee Meeting – September 24, 2013

• Staff Report - Development Charges Bylaw Review – Results of Additional Consultation (with Appendix 2) – September 13, 2013

• Appendix 1 - Proposed Development Charges Bylaw (Revised)

• Appendix 3 - 2013 Development Charges Background Study Addendum – September 13, 2013

• Appendix 4 - Letter from BILD

http://www.toronto.ca/finance/dev_charges_bylaw_review/2013.htm

So if you are condo shopping and want to secure your purchase you will CAP your Closing Costs confirm the final square footage, ensure all development charges are included in the contract so the Purchaser's are not shocked by the fees to close.

Lets get you started on your way to living debt free.

Coverage for Special Assessments

Why Should you be Scared?

Why should you be afraid of Special Assessments? You can have coverage.

You can indeed get coverage for Special Assessments in a Condominium
1) You are covered; If through the Title Insurance it was OMITTED from the Status Certificate 
2) You are covered; Through your Home Insurance Coverage 

 II.  SPECIAL ASSESSMENT INSURANCEA unit owner can also obtain insurance coverage specifically for special assessments. This coverage will benefit a unit owner in circumstances where a condominium corporation suffers an insured loss, the insurance proceeds are inadequate to cover the costs, and the corporation levies a special assessment for the difference. This would only occur in very unusual circumstances.
A real life example involves a condominium corporation that incurred environmental clean-up costs because of a heating oil leak into the common elements. The town home units in this condominium had oil tanks that were buried in the common elements, which serviced each individual unit’s furnace. Pipes ran through the concrete basement floors of the units from the heaters to the oil tanks. As a result of a pipe break, oil seeped into the ground and the resulting environmental clean-up cost was over $300,000.
- See more at: http://www.condoreporter.com/special-assessments-insure-your-risk/#sthash.AJsAjsce.dpuf

If you have not requested this coverage from your Independant Insurance Broker  I suggest you pick up the phone immediately and call someone who knows.

 

Coverage Chart – Condominium

Condominium Protection	Comprehensive
.
Insured Perils	All Risks
Unit Improvements and Betterments Unit Additional Protection Common Elements Loss Assessment	$500,000 Single Limit Limit is per occurrence for any one or combination of these coverages   $1 million condominium protection available
Building Fixtures and Fittings	10% of single limit

. 

 

 

Will Chan, B.A., FCIP, CRM   Branch Manager (Mississauga)  Pacific Insurance Broker Inc. 

(P) 905-565-5565 x 118  (F) 905-565-5562  (C) 416-844-7660 www.pacins.ca

Contact Will at William Chan <wchan@pacins.ca>

If you are looking for professional representation in the Toronto Condo Market call David 

Pylyp    647.218.2414

Home Verified Report - For Sale after damage

Photo Cred Tom Ryaboi

We have had two major floods in Toronto in the last few years. Storm Damage has been swift.   

They sweep out the water.   The broadloom has dried and dehumidified for weeks / months.  Now, that house is up for sale.     How will you find out what happened in the past.    I do.

Home Verified Reports are available to real estate agents through Geo Warehouse. This provides a documented 5 year claims history of that property's activity including if its been a GROW HOUSE.

   

HomeVerified Brochure by David Pylyp

The Home Verified Report allows you access to the exclusive database for property insurance claims.  Any claim by any insurer in Canada is recorded here incl; fire, flood, sewer back up, hail etc., going back a five year period.  Grow OPS Records are also included.

This  means that our team is able to provide you more details about the home you are considering as a resale home purchase and give you clarity and confidence to move forward.

Is this the type of information you need?

Lets get started buying your next home.