Can the condo board raise my common expenses without my approval in Ontario?
Yes, in most cases the board of directors can increase common expenses without a vote of unit owners. Under the Condominium Act, 1998, the board has authority to set the budget and levy the fees required to fund it. If the operating budget goes up — due to rising insurance premiums, utility costs, staffing, or reserve fund requirements — fees follow without a unit-owner referendum.
However, if the board wants to make an addition to the common elements or a change in a service that increases the annual budget by more than ten percent, owners must be given notice and may requisition a meeting to vote on it. This threshold protects owners from drastic unannounced spending.
Boards must provide owners with audited financial statements and the annual budget. If you believe a fee increase is unreasonable or that the board is not managing finances properly, you have recourse through the Condominium Authority Tribunal, which handles many condo disputes in Ontario, or through the courts for more serious governance issues.
Key takeaways
- Boards can raise fees to cover increased operating costs without a unit-owner vote.
- Additions or changes costing more than ten per cent of the annual budgeted common expenses are “substantial” and need approval by a vote of owners of at least two-thirds of the units (s. 97).
- Financial statements must be provided to owners annually.
- The Condominium Authority Tribunal offers dispute resolution options.