Part 16 published on 01/11/06
Condominium corporation failed to allocate expenses fairly
In this case, the by-laws of the condominium corporation allow the corporation to allocate expenses, costs or charges in an equitable manner determined by the Board, if the allocation would be inequitable on the basis of unit factors. The applicant owner asked for an order declaring that the condominium corporation had conducted itself improperly, as defined by section 67(1) of the Condominium Property Act, or had conducted the business and affairs of the corporation in an oppressive or unfairly prejudicial manner, in that the Board had failed to make an equitable allocation of expenses. The Court agreed with the applicant, and granted the order. The Court ordered the Board to reallocate the costs of utilities and also to charge only the second floor owners with janitorial expenses and the expenses for security.
Note, however, that the Court also said that in general, structural repairs of common property, and also maintenance of the elevator, are important to the entire building and should therefore be shared by all owners based upon unit factors.