Gerry Hyman has a new article for the Toronto Star. I would like to discuss some of the questions he responded to. Firstly, this one:
Q: Our board has been funding a social committee to the tune of $200 a month to finance assorted functions that are attended by fewer than five per cent of approximately 400 residents. Is it legitimate that all owners are required to contribute through their common expenses to events that the vast majority have no interest in attending?
A: The Condominium Act defines common expenses as “the expenses related to the performance of the objects and duties of a corporation and all expenses specified as common expenses in this Act or in a declaration.” The objects of a corporation are “to manage the property and assets, if any, of the corporation on behalf of the owners.” The duties of a corporation are “to control, manage and administer the common elements and assets of the corporation.” I am of the opinion that the social committee expenditures benefitting very few of the residents are not related to the performance of the objects or duties of the corporation.
The board, if it wishes to obligate all of the owners to provide such funding, should amend the declaration to specify that the expenditures are common expenses. The declaration amendment will require written approval of owners of 80 per cent of the units.
The person raising the question has not specified whether or not the Board has allowed the Social Committee to raise funds on their own through a donation box, 50/50 draws, etc. The Board should allow the Committee to do this in any case as it may help to either reduce, or eliminate the need for monthly amounts plus as long as it voluntary it allows those attending to decide whether or not they wish to give any money or not. Continue reading
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