Condominiums are one of Canada’s fastest-growing housing types, yet they remain a largely untapped resource in the fight against climate change. Buildings account for 18 per cent of the country’s greenhouse gas emissions, and deep energy retrofits in condos could cut emissions by up to 59 per cent per building while reducing operating costs by nearly 50 per cent.

However, despite the potential gains for owners, adoption has been stubbornly low. Many condominiums have yet to implement upgrades such as high-performance building envelopes or modern HVAC systems and lighting. Deep energy retrofits, though highly effective, are far from standard practice in the sector.

To address this gap, Efficiency Canada, a non-governmental research and advocacy organization focused on promoting an energy-efficient economy, recently hosted a webinar examining how barriers such as high voting thresholds, restrictive reserve fund rules, and ambiguities in Ontario’s Condo Act continue to stall projects that could otherwise deliver significant emissions reductions and cost savings.

Yazan Zamel, researcher and president of the Sustainable Engineers Association at the University of Toronto, said the condo sector plays a critical role in Canada’s climate action strategy. “Unfortunately, Canada’s retrofit rate is only at around 1 per cent per year, which is below the 2.5 per cent that we need by 2030 to stay on track for net zero,” he said. “Unlocking deep energy retrofits in this sector can certainly accelerate our pathways towards decarbonization, while also driving substantial cost savings in those communities.”

Zamel, alongside Sustainable Buildings Canada (SBC), presented findings from his paper, Legal and Policy Barriers and Enablers to Deep Energy Retrofits in Ontario Condominiums, which examines Ontario’s Condo Act, comparisons with other provinces, interviews with key stakeholders, and highlights how current regulations impede retrofit feasibility. It also provides actionable policy recommendations to modernize condo legislation and support climate-smart upgrades.

His research builds upon SBC’s Better Condos Boot Camp, a program that equips condo managers, boards, and residents with the tools to drive deep energy retrofits and building decarbonization.

Voting threshold hurdles in Ontario

In Ontario, section 97 of the Condo Act outlines the process for altering common elements. Repairs and maintenance are defined as replacing or restoring existing components to substantially the same condition as when they were originally built—a ‘like-for-like’ requirement that governs how reserve funds may be used. Larger improvements, on the other hand, especially those with financial implications, require the consent of the building’s owners.

For projects costing less than 1 per cent of the annual budget, no vote is required. If the cost is between 1 and 10 per cent, owners must receive written notice, along with a 30-day requisition period. If more than 15 per cent of owners submit a requisition, a meeting will be held, and the final decision will rest on the majority vote of those attending.

However, the challenge lies in projects costing more than 10 per cent of a condo’s annual budget, which require a two-thirds majority vote from all owners, not just those attending the annual general meeting. With attendance typically around 30 to 40 per cent, this threshold is hard to meet, particularly in large buildings with low participation.

Reserve fund limitations and untapped opportunities

Reserve fund limitations also persist. Section 93 of the Condo Act states that condo corporations must maintain a reserve fund exclusively for major repairs and replacements of the common elements. Having an updated reserve fund study is essential to account for inflation, rising construction costs and new efficiency standards. In turn, corporations can better finance anticipated retrofits.

“Unfortunately, just 18 per cent of Ontario condo reserve fund studies, between 2018 and 2022, explicitly considered high performance elements or carbon reduction,” said Zamel. “There is not high consideration for the retrofit components.”

He noted that boards are often unaware that a petition from 12.5 per cent of owners can trigger an enhanced reserve fund study, opening the door for more in-depth retrofit planning. But this option is rarely used due to a lack of education and engagement.

Legal loopholes

Ontario’s legal framework presents some opportunities amid the hurdles. For instance, engineers may be able to reclassify upgrades—like water technology or lighting replacements—as repairs instead of improvements. If the upgrades are required to meet current building codes, safety standards, or industry benchmarks, they may qualify as repairs, even if they enhance performance.

“If the replacement of old lights is coming in for LEDs, that may qualify as maintenance if that old technology is considered no longer relevant in comparable residential settings,” he detailed. “Of course, coming up with that conclusion can actually be really significant as per my conversation with Ontario condo lawyers.

Additionally, a lesser-known provision in the Act, section 97.5(d), though un-proclaimed since 2015, could allow condo boards to approve sustainability projects without the need for a full owner vote. If proclaimed, this provision could make Ontario one of the most progressive provinces for condo decarbonization.

Rather than overhauling the legal framework, activating the provisions already in place could make a big difference. Zamel emphasized how data highlights the importance of this approach: only 15 per cent of major retrofit proposals in Ontario are implemented, compared to 35 to 40 per cent in British Columbia and Nova Scotia.

Regional variances and lessons from other provinces

Condo retrofit policies across Canada show a wide disparity between provinces. B.C., for example, offers more flexible rules. A majority vote is sufficient for retrofits if the project is included in the depreciation report and pre-funded. As well, the province offers special voting relief for electric vehicle (EV) infrastructure projects.

In contrast, Ontario struggles with its two-thirds approval requirement. Condo lawyers Zamel interviewed said many owners live abroad and rarely engage in discussions or vote. A building designer added that retrofit votes in large condos are “practically unfeasible.”

Other provinces present their own obstacles. Alberta mandates a 75 per cent approval threshold for significant changes, while Manitoba and Saskatchewan require 80 per cent written consent.

On the other hand, Nova Scotia offers a promising case where, despite a 80 per cent voting requirement for any improvement over 25 per cent of the building’s appraised value, owner turnout has exceeded 70 per cent for some retrofit votes. One large-scale EV infrastructure project received 92 per cent approval; its success attributed to early engagement and education.

In Alberta, the province offers flexibility in its condo legislation. For example, section 38 of Alberta’s Condominium Property Act permits reserve fund withdrawals without a vote if the project involves replacing components to meet current standards or comply with new building or health codes, as long as it is explicitly included in the reserve fund study

In Saskatchewan, a property lawyer communicated that the flexibility of condo bylaws is a key factor in driving progress for retrofits. As Zamel observed, “there’s a pattern about how the legal text matters, but human engagement matters just as much, which is very important to consider.”

Long-terms goals in Canada’s climate strategy

Overcoming condo retrofit barriers could greatly advance Canada’s climate goals. Harmonizing provincial frameworks could boost retrofit completion rates from the current 15 to 20 per cent to 35 to 40 per cent. Streamlining voting thresholds, and providing clearer funding guidelines could greatly reduce project timelines, increase energy savings, and create jobs.

To enable decarbonization in the condo sector, the top three recommendations include:

• Removing the “like-for-like” replacement requirement to encourage upgrades to higher-performance systems;
• Lowering approval thresholds and tying them to meeting attendance rather than total ownership; and
• Educating owners and boards on the long-term financial benefits of energy-efficient retrofits.

Other critical elements include unified definitions, such as classifying energy upgrades as repairs, and clarifying “common areas” versus private unit ownership, and mandating decarbonization planning in reserve fund studies with minimum scenario requirements and greenhouse gas reduction modeling.

With proper reforms, Zamel argues, retrofits in condos could reduce building sector emissions by up to 60 per cent, create millions of skilled jobs, and play a key role in meeting Canada’s commitment to net-zero emissions by 2050.

“Every retrofit we are delaying could keep that potential locked away,” he posed. “The biggest climate wins may not come from new technologies, but from fixing the rules that govern them.”