Part 15 published on 01/08/06
Special assessment against one unit found to be valid
A reserve fund study, arranged by the condominium corporation, identified $82,000 worth of original building deficiencies. The developer, Fantasy, continued to own a unit in the condominium. The condominium corporation passed a by-law establishing the special levy in the amount of $82,000 and requiring that it be paid by the one owner, Fantasy.
The Court said that this special levy was permitted by Section 39(1)(c) of the Condominium Property Act. The Court also said that this was fair and consistent with the purposes and objectives of the Act. The Court said:
“Having regard to the purpose and the objectives of the Act, I have no difficulty concluding on the basis of fairness that this is a proper circumstance for allocation against one owner’s unit albeit arising from what appears to be misconduct of that owner as a developer. I am bolstered in my view in reaching this conclusion as otherwise the developer would retain a benefit for itself by in effect taking a profit while failing to meet its obligations to the condominium corporation which by definition is all of the owners including the developer as owner.”