First

Session, 50th General Assembly

Elizabeth II, 2022

BILL 56

AN ACT TO AMEND THE

CONDOMINIUM ACT, 2009

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SARAH

STOODLEY

Minister of Digital

Government and Service Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Condominium Act, 2009 to

prescribe the time period in

which a condominium corporation is required to hold its annual general

meetings;

allow the board of directors of

a condominium corporation to have less than 3 directors where the property

contains less than 3 units or where the declarant has not sold any units;

clarify the time period in

which a condominium corporation is required to have a reserve fund study

conducted;

clarify that a condominium

corporation is dissolved at the time of the registrar's acceptance of a notice

of withdrawal; and

incorporate gender-silent

language.

A BILL

AN ACT TO AMEND THE CONDOMINIUM ACT, 2009

Analysis

S.2 Amdt.

Interpretation

S.4 Amdt.

Deputy registrar of condominiums

S.5 Amdt.

Protection of the registrar

S.13 Amdt.

Notification of encumbrancers

S.18.1 Added

Annual

general meeting

S.27 Amdt.

Board of directors

S.29 Amdt.

Designate

S.39 Amdt.

Duties and powers of auditors

S.47 Amdt.

Easements

S.49 Amdt.

Reserve fund and reserve fund study

S.51 Amdt.

Lien

S.59 Amdt.

Where property destroyed

S.63 Amdt.

Withdrawal from this Act

S.85 Amdt.

Repair and maintenance

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cC-29.1

as amended

1. Paragraph 2(1)(

j) of the Condominium Act, 2009 is repealed and the following substituted:

(j) "court" means the Supreme Court of

Newfoundland and Labrador;

2. Paragraph 4(

b) of the Act is amended by

deleting the words "his or her".

Section 5 of the Act is amended by deleting the

words "his or her authority" and substituting the words "the

authority of the registrar or deputy registrar".

4. Subsection 13(1) of the Act is amended by

deleting the words "his or her" and substituting the words "the

owner's".

5. The Act is amended by adding immediately after

section 18 the following:

Annual general

meeting

18.1

(1) A

corporation shall hold its first annual general meeting not more than 18 months

after the corporation is created.

(2) A corporation shall hold subsequent annual

general meetings no later than 15 months after the immediately preceding annual

general meeting.

6. (1) Subsection 27(1) of the Act is repealed and

the following substituted:

Board of

directors

(1) The

affairs of the corporation shall be managed by a board of directors.

(2) Section 27 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) The board of directors referred to in

subsection (1) shall be comprised as follows:

(

a) where the property consists of only 2 units,

the board of directors shall consist of 2 persons elected by the members of the

corporation; and

(

b) where the property consists of 3 or more

units, the board of directors shall consist of 3 persons or a greater number as

the declaration or by-laws may provide, elected by the members of the

corporation.

(1.2) Notwithstanding subsection (1.1), where the

declarant has not sold any units, the board of directors may consist of one

person appointed by the declarant.

(1.3) Notwithstanding paragraph (1.1)(b), where all

the units in the property are owned by only 2 different owners, the board of

directors shall consist of 2 persons elected by the members of the corporation.

(3) Subsection 27(2) of the Act is amended by deleting

the reference "subsection (1)" and substituting the reference

"subsection (1.1)".

7. Subsection 29(1) of the Act is amended by

deleting the words "his or her" and substituting the words "the

unit owner's".

8. Subsection 39(5) of the Act is amended by

deleting the words "him or her as auditor" and substituting the words

"the auditor".

9. Paragraph 47(1)(

c) of the Act is amended by

deleting the words "his or her" and substituting the words "the

owner's".

10. (1) Subsections 49(2) to (6) of the Act are

repealed and the following substituted:

(2) Where a corporation has, as one of its

objects, the management of a property consisting of less than 10 units, the

corporation shall assess and collect the owner's contributions to the reserve

fund in an amount that would result in the amount of the reserve fund becoming,

and continuing to be, within 5 years after the corporation is created, 100% of

the annual operating budget of the corporation.

(3) Where a corporation has, as one of its

objects, the management of a property consisting of 10 or more units, the

corporation shall

(

a) complete a reserve fund study before the sale

of the first unit; and

(

b) assess and collect the owner's contributions

to the reserve fund in an amount that would result in the amount of the reserve

fund becoming, and continuing to be, the minimum amount recommended in the

reserve fund study within the time period recommended in the reserve fund

study.

(4) A reserve fund study shall

(

a) be completed in accordance with the

regulations;

(

b) be prepared by the person or a member of the

class of persons prescribed in the regulations; and

(

c) contain the information, opinions and

recommendations of the person preparing the report.

(5) Where this

section requires that a reserve

fund study be completed, the corporation shall, within every 10 years from the

completion of the previous reserve fund study,

(

a) complete an updated reserve fund study in

accordance with subsection (4); and

(

b) provide a copy of the updated reserve fund

study to each of the unit owners as soon as it is completed.

(6) Where an updated reserve fund study is

completed in accordance with this

section and the amount of the reserve fund of

the corporation is less than the minimum amount that the reserve fund study

recommends that the fund ought to be, the corporation shall assess and collect

contributions from the unit owners in an amount that shall result in the

reserve fund amount recommended by the study being achieved within the period

of time recommended in the study and continuing to be at least the minimum

amount recommended in the reserve fund study.

(2) Section 49 of the Act is amended by adding

immediately after subsection (6) the following:

(6.1) Where requested by the registrar, a

corporation shall provide a copy of a reserve fund study to the registrar.

(3) Subsection 49(9) of the Act is amended by

deleting the words "he or she" and substituting the words "the

declarant".

11. Subsection 51(1) of the Act is amended by

(

a) deleting the words "him or her" wherever

they appear and substituting the words "the owner"; and

(

b) deleting the words "he or she" and

substituting the words "the owner".

12. Subsection 59(1) of the Act is amended by

deleting the words "his or her" and substituting the words "the

owner's".

13. Subsection 63(3) of the Act is amended by deleting

the word "and" at the end of paragraph (d), deleting the period at

the end of paragraph (

e) and substituting a semi-colon and the word

"and" and adding immediately after that paragraph the following:

(

f) the corporation is dissolved.

14. (1) Subsection 85(4) of the Act is amended by

deleting the words "his or her" and substituting the word

"the".

(2) Subsection 85(5) of the Act is amended by

deleting the words "his or her" and substituting the word

"the".

Queen's Printer