Rules, Provisions and Policies regulate condominium corporations
Shared ownership of a condominium property in New Brunswick requires reasonable and clear Rules, Provisions and Policies for effective management.
A good way to inform owners and residents of standard procedures in any condominium corporation is with the use of a policy. Keep in mind, policies must be fair and comply with any other legislation in effect. But are policies always legal and enforceable?
Including a policy in one of the governing documents (Declaration, By-Law) is the best way to ensure it is legal and enforceable. However, over time, a policy may need to be updated or amended to accommodate the changing needs of the property. Changes in a policy that are written into a governing document require an amendment to that document. An amendment requires a vote at a General Meeting of the Owners and registration of the amendment in the Land Titles Office before the changes can be enforced. There are also costs involved (preparing the document, registration fees).
A more effective way to accommodate changes to a policy is to give the board of directors the permission to make changes as needed. The permission is included in the governing document, usually in a Rule or Provision in the By-Law. But the actual details included in a policy are created and updated by the board of directors and distributed to all owners and residents. This method allows for policy-making and updates that are enforceable, yet does not require an amendment to a governing document, a vote at a General Meeting or the costs to prepare and register the amendment.
EXAMPLES:
- A By-Law could include a procedure with full description in the Common Element Rules, as follows…
Garbage shall be transported to the garbage dumpster and all garbage shall be contained in leak-proof bags. Recyclables shall be separated and disposed of in the blue bins provided.
- Or the By-Law could include permission for the board of directors to create, amend and update a Policy as the corporation’s needs change……
Garbage and recyclables shall be transported from each Unit to ensure no contents spill and no damage occurs along the way, as instructed by the board of directors from time to time and according to the Refuse Disposal Policy.
When a corporation includes permission in one of their governing documents, then the board of directors is responsible to create and update the policy as needed. This avoids the time, costs and requirement of conducting a vote at a General Meeting.
EXAMPLE of a policy
Refuse Disposal Policy: effective June 30, 2020
- Garbage shall be transported in sealed, leak-proof bags and deposited in the garbage bins in the garbage room.
- All garbage shall be placed inside the garbage bins and the bin lids shall be closed.
- Recycled items shall be transported to the recyclable room and placed in the appropriate bin according to the type of material.
- All cardboard shall be flattened and placed in the designated area provided.
In early September the board and some owners noticed a problem with odour in the recyclable room. It was obvious that some residents were disposing recyclable containers that had not been rinsed out. The board of directors decided the Refuse Disposal Policy needs to be updated to remind residents that food and beverage containers need to be rinsed. The policy is revised and distributed to all owners and residents.
Refuse Disposal Policy: effective September 15, 2020
- Garbage shall be transported in sealed, leak-proof bags and deposited in the garbage bins in the garbage room.
- All garbage shall be placed inside the garbage bins and the bin lids shall be closed.
- Recycled items shall be transported to the recyclable room and placed in the appropriate bin according to the type of material.
- All food and beverage containers shall be rinsed out before being placed in the recycling room containers. Containers that are not rinsed will not be collected by the City. Containers that are not rinsed cause odour and may attract rodents to the property. Any resident not willing to rinse recyclable containers, shall dispose of them with their garbage.
- All cardboard shall be flattened and placed in the designated area provided.
Including permission for the board of directors to update the policy in the governing documents is a good way to ensure proper procedures are quickly updated and communicated to address the changing needs of the property. There is a caution, however.
- This type of policy should be used only for regular procedures for all residents to follow. This includes such things as Refuse and Recyclables Disposal Policy, Snow Removal and Parking Lot Maintenance Policy and Moving and Delivery Policy. These apply uniformly to all residents.
- Any Provisions or Rules regarding pets, smoking, or any other issue that may invoke a wide range of very personal opinions should be clearly stated in the governing documents. Any changes for these Provisions and Rules require a vote at a General Meeting of the Owners. This is to ensure that individual owners are protected from changes that affect them in a personal way. For example, consider an owner who purchased a Unit specifically because they were permitted to have a small dog. The board of directors should never be able to update a policy to ban dogs. This is not reasonable. However, the owners could decide at a General Meeting to amend the governing documents to ban dogs. This is a democratic process permitted by the condominium’s Declaration. Many condominium corporations consider a “grandfather clause” when making amendments about restricting pets, smoking or other issues that affect residents in a personal way. For information on “grandfather clauses”, refer to the article discussing the use of grandfathering. The link is http://condo-link.ca/2019/08/
- Another important point to consider when creating policies, is that all policies must apply to all residents (owners and tenants alike). It is not legal to impose different restrictions on tenants as opposed to owners. The same can be said about Rules and Provisions. If owners are permitted a pet, so must a tenant be permitted a pet. All Rules, Provisions and Policies must provide regulations for all residents equally.
EXAMPLES OF POLICIES
Snow Removal and Parking Lot Maintenance Policy
- During the winter season (November 1 through April 30) all vehicles shall be removed from the parking lot by 9:30 am following a snow event.
- Vehicles are not to be brought back and parked on the property until after 11:30 am.
- When seasonal maintenance is required, all vehicles shall be removed from the property until the work has been completed.
- Notices will be distributed by email and posted on the bulletin board to give advance notice of any parking lot maintenance.
Moving and Delivery Policy
- All moves and deliveries of large items in and out of the building shall be scheduled with the (building superintendent/property manager/board). This is to ensure all other residents are notified of the move and lack of access to (the elevator/stairway/front entryway/garage).
- Any damage to the property caused by any move shall be the responsibility of the owner scheduling the move or delivery.
- Moving and delivery vehicles shall be parked in the designated area.
- All moving and delivery vehicles shall have the engine turned off while parked on the property.
- There may be a fee of xxx to cover the cost of supervising the locked entryway, hanging protective blankets in the elevator cab and cleaning up after the move. Refer to the Resale and Rental Assessment Fee in Article VIII of the By-Law.
- Moves and deliveries are permitted between the hours of 8:30 am and 5 pm Monday through Friday.
- Moves and deliveries shall be permitted on Saturdays, Sundays or after 5pm only with the advance written permission of the board of directors.
These are examples of some typical policies a corporation may use to inform owners and residents. Keep in mind, policies do need to address the specific needs of the type of building.
- The garbage and recyclable policy will be based on the unique collection arrangement for the property. Not all corporations have pickup by the municipality; not all corporations can accommodate a recycle program; not all corporations have a garbage room or recyclables room; and the type of containers used to collect the garbage varies among properties.
- In an apartment-style condominium with locked entryways, the policy may need to protect the entryway by having someone supervise the area for the duration of the move or delivery.
- Often elevators are held or propped open by those moving. This can cause damage to the elevator door mechanism. If an elevator is to be used, someone should put the elevator on hold for the duration of the move and residents need to be advised when and for what duration the elevator is “on service” for a move or delivery.
- For many properties, where a moving or delivery van shall be parked needs to be defined. This is to avoid blocking a resident’s vehicle, blocking emergency service vehicles or blocking access to an entryway.
- In some instances, moving vehicles may be required to be turned off to avoid fumes entering a building.
- For a condominium with limited parking, it may be necessary to consider a strategy for handling the removal of all vehicles to facilitate snow removal or maintenance. Some condominiums have found parking at a nearby mall while others manage by shifting vehicles from one part of the property to another while the work is being done. The corporation’s policy can provide the details and update the details whenever a change is needed.
For more information on the use of Policies or questions about making amendments to Declarations and By-Laws, contact Condo-Link Services. We can provide information on what Rules and Provisions can be created, and explain the process for amending the PROVISIONS RESPECTING THE USE AND OCCUPATION OF UNITS and RULES AND REGULATIONS GOVERNING THE USE OF THE COMMON ELEMENTS.
www.condo-link.ca 506-206-2080