Condo Living

March 27, 2026 Published by Golden Horseshoe Chapter - By Kevin Shaw, Luka Milidragovic, Salim Dharssi, Patrick Grecco, David Mendel,

Turbulence Ahead – Steering Through Today’s Condo Challenges

From the Volume 27, Spring 2026 issue of the CCI GHC Condo News Magazine

Friday, February 6, 2026
Canadian Warplane Heritage Museum, Mount Hope, ON

The CCI Golden Horseshoe Professional and Business Partners Committee hosted another successful Lunch & Learn event, bringing together industry professionals to explore emerging trends affecting condominium corporations across the Golden Horseshoe. This year marked the third consecutive event held at the Canadian Warplane Heritage Museum—our largest audience yet of condominium directors and managers.

Speakers included Luka Milidragovic (Condominium Lending Group), Salim Dharssi (Managemate), Patrick Grecco (Shibley Righton LLP), and David Mendel (Aura Signature Realty). The session was moderated by Kevin Shaw of Cion Engineers & Building Scientists.

Below is a synopsis of the presentations delivered during the event.

Luka Milidragovic – Underfunding of Reserve Funds

Luka opened with a sobering statistic from the Auditor General of Ontario’s 2020 report, noting that 69% of surveyed condo boards lacked adequate reserve funds for major repairs. Combined with sharp cost escalation, many Ontario condominiums now face significant reserve shortfalls.

Statistics Canada data shows that the Greater Toronto Area experienced an 87% increase in residential construction inflation between 2019 and 2024. As Luka explained, inflation far outpaced the conservative assumptions historically used in reserve fund studies, leaving many corporations unprepared.

He then discussed a common knee-jerk reaction: deferring repairs. Boards must weigh this approach carefully. Key considerations include:

• Health and safety
• Unit values and marketability
• Owner comfort
• Whether viable alternatives exist

Luka also outlined short-term funding strategies for corporations facing reserve deficits, including special assessments, loans, or hybrid solutions to bridge the financial gap.

Salim Dharssi – Communication: What Leading Communities Are Doing in 2026

Salim explored the dramatically shifting communication landscape. With virtual tools now ubiquitous, mobile technology standard, and AI enabling instant information access, expectations for condominium communication have fundamentally changed.

In 2026, stakeholders increasingly expect:

• Opportunities to participate
• Transparent and accessible information
• Rapid, responsive communication

Communication is no longer merely administrative—it is integral to operational success.

Different audiences have distinct needs:

• Boards want concise, decision-ready updates.
• Managers want full context without duplicating effort.
• Owners want clarity, transparency, and easy engagement.

Salim emphasized that traditional communication methods are breaking down. Email overload, paper-based processes, and one-channel approaches no longer meet modern expectations.

Emerging trends shaping effective condo communication include:

• Centralized communication platforms
• Transparency through audit trails
• Data-driven decision making

According to Salim, leading communities in 2026 are:

• Designing communication intentionally
• Separating information sharing from decision making
• Centralizing records and engagement tools
• Using multiple channels to engage diverse audiences

His message was clear: more communication isn’t better—better communication is.

Patrick Grecco – CAO Guide on Procuring Goods and Services

Patrick began with four key principles from the CAO procurement guide:

1. Procurement as Governance
High-risk and requiring transparency, legal compliance, and deliberate planning.

2. Contract A and Contract B

• Contract A begins when the tender is issued and requires fairness.
• Contract B is formed with the winning bidder.

3. The Importance of Early Planning
Boards must prepare months in advance to avoid rushed decisions and inflated pricing.

4. Engaging Experts Early
Engineers, lawyers, and managers provide essential guidance on scope, legal compliance, and communication.

Building on Luka’s presentation, Patrick covered the risks of deferred repairs—including sudden financial pressure, increased future costs, legal exposure for failing to maintain common elements, and potential insurance issues.

Patrick also addressed the growing challenge of re-tendering due to higher-than-expected bids. Boards should:

• Avoid asking bidders to reduce pricing unless permitted
• Honour all Contract A obligations
• Revise tender documents before re-issuing
• Maintain fairness by never sharing prior bid prices

Regarding Contract B, Patrick warned of the risks of extended payment arrangements, which may conflict with the Condominium Act or Construction Act and alter contractual obligations. Legal advice is essential before accepting such terms; conventional financing is typically safer.

He also noted that improperly terminating a contract can expose corporations to significant damages. Boards must act reasonably, in good faith, and with legal guidance. A negotiated settlement may often be the best risk-management strategy.

David Mendel – A Condo Cautionary Tale

David shared a real-life story from his time as a condominium director—a cautionary example of how poor communication and governance failures can spiral quickly.

The issue began with concerns about how reserve funds were being invested. The property manager recommended transferring funds to an outside investment firm promising higher returns. Questions arose about whether the proposed investments complied with the Condominium Act. From there, the situation deteriorated:

• Funds were moved without proper authorization
• Board composition shifted multiple times
• Management issues escalated
• The Property Manager’s licence was revoked
• Several long and costly court battles followed

David’s experience underscored the importance of transparency, compliance, strong communication, and diligence—especially when dealing with reserve funds and investment decisions.

For more details—including a full list of sponsors and event photos—visit the Golden Horseshoe Chapter of CCI at cci-ghc.ca under Courses and Events.

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Authors

Kevin Shaw, B.Tech.(Arch.Sc.), LCCI, Principal – Cion
Luka Milidragovic, Director – Condominium Lending Group
Salim Dharssi, CEO & Founder – Managemate
Patrick Grecco, Lawyer – Shibley Righton LLP
David Mendel, Realtor - Aura Signature Realty