condo manager condominium governance

Condo manager licensing reg released for comment

Thursday, December 22, 2016

The Ontario government’s plans to license condominium managers inched closer to reality with the release last week of a general regulation for public comment. The first set of draft rules under the Condominium Management Services Act has mapped out what the transition to licensing could look like, along with possible application and education requirements, conditions and exemptions.

The proposed transition to licensing would give condominium managers who are active when the new legislation rolls out around five months (150 days) to apply for a license. In the interim, they would be considered to hold a particular class of license based on their education and experience.

Managers with less than two years of experience would be eligible to apply for an entry-level limited license, which would come with conditions and restrictions. Managers with more than two years of experience would be eligible to apply for a transitional general license, which would give them time to complete education requirements that have yet to be specified.

The registrar would have the authority to recognize previous education and experience, such as courses, internships and training programs, as having met the education requirements for a limited or general license. During the transition, managers with more than two years of experience who have also successfully completed the Association of Condominium Managers of Ontario’s (ACMO) four courses would be eligible to apply for a general license. A summary of the draft rules notes that ACMO’s four courses and exams are under consideration as the educational prerequisite to applying for a general license.

The regulation proposes to exempt from licensing requirements many of the other professionals who provide services to condominium corporations, including accountants, engineers and lawyers. The regulation also proposes to exempt board directors from licensing requirements, unless a board director is being compensated for providing condominium management services.

Whatever their form, be it corporation, partnership or sole proprietor, providers of condominium management services will have to be licensed, too. The application process would involve naming a general license holder as their principal condominium manager, among other things.

In addition, the proposed regulation lays out what information licenses could contain, a possible obligation to produce licenses on request on the job, and timeframes for retaining business records and transferring client records. Further, the draft rules touch on requirements for disclosing conflicts of interest and whether a manager possesses insurance as well as complaints procedures and what information could be made publicly available about license holders.

Members of the public and stakeholders will have until Feb. 6, 2017 to comment on the proposed regulation, which the government is aiming to finalize for roll out on July 1, 2017. At least one industry association is planning to submit feedback.

“ACMO is pleased with the draft regulations released last week,” said Amanda Curtis, executive director of ACMO, via email. “They clearly reflect our association’s efforts and we will be working with members to provide detailed comment to the government early in the New Year.”

Further proposals for regulation under the Condominium Management Service Act are slated to be released for public comment in early 2017 and projected to roll out before the end of the year. They are expected to outline a code of ethics as well as processes for discipline and appeals committees.

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