Legal

June 22, 2026 Published by Toronto and Area Chapter - By Warren Kleiner

Legislative and CAO Update

From the Spring 2026 issue of CCI Toronto Condovoice Magazine.

On January 27, 2026, CCI Toronto hosted a highly successful Legislative and CAO Update event featuring myself and Marc Bhalla of the Condominium Authority of Ontario (CAO). The session drew strong engagement from boards, managers, and condominium professionals, reflecting the sector’s keen interest in understanding how legislative, regulatory, and planning changes will affect condominium operations in the years ahead. The presentation provided clear, practical insights into recently preserved Condominium Act amendments, new compliance obligations, and emerging trends such as decarbonization planning—making complex topics accessible and relevant. This article offers a high-level overview of the key information shared during that presentation, while also highlighting the value of attending future CCI events that deliver timely guidance, expert perspectives, and meaningful opportunities to stay ahead in an evolving condominium landscape.

Ontario condominiums are entering a pivotal year marked by legislative extensions, new compliance requirements, regulatory expansion, and evolving expectations around long-term capital planning.

A major focus remains on proposed amendments to the Condominium Act, 1998, originally introduced under the Protecting Condominium Owners Act, 2015. Many of these amendments faced expiry at the end of 2025. Following strong advocacy from the condominium sector, including extensive engagement with government, Bill 72, the Buy Ontario Act, 2025 was introduced to preserve certain amendments and extend the deadline for proclamation to the end of 2026. While there is no guarantee that all preserved amendments will ultimately come into force, the extension signals continued government intent to modernize the condominium framework.

Among the preserved amendments is a notable change to the owner-occupied director position, which will be renamed “Non-Leased Voting Units”. This position will no longer be mandatory in most corporations and will only be required upon request, and only where a majority of units are leased, reducing unnecessary governance complexity.

Another significant proposed change would make Shared Facilities Agreements (SFAs) mandatory when condominiums share facilities, services, or assets with other condominiums, declarants, or other third parties. Once proclaimed, all covenants under an SFA, including positive covenants such as cost-sharing obligations, will run with the land, addressing long-standing enforcement issues.

Other preserved amendments would prevent developers from requiring condominiums to waive legal rights against the declarant beyond Tarion warranties, and would clarify that requisitioned owners’ meetings are limited to matters owners are legally entitled to address, such as information meetings, director elections, rules, or section 97 changes.

Separate from condominium legislation, Employment Standards Act changes in force as of January 1, 2026, impose new hiring obligations on Ontario employers with 25 or more employees. These include mandatory compensation ranges in job postings, disclosure of AI use in hiring, elimination of Canadian experience requirements, defined applicant notification timelines, and expanded record-retention obligations.

Fire safety compliance has also intensified under Ontario Regulation 87/25, which updates the Ontario Fire Code. Key changes include expanded rules around exit doors, new carbon monoxide alarm requirements, and increased use of Administrative Monetary Penalties (AMPs) by municipalities, raising the stakes for documentation, testing, and timely remediation.

Looking ahead, the Condominium Authority of Ontario (CAO) is preparing for a future expansion of CAT jurisdiction, including some meeting-related disputes, and has launched a Reserve Fund Survey in partnership with Toronto Metropolitan University to improve sector data.

Finally, interest is growing in Enhanced Reserve Fund Studies, which combine traditional reserve fund planning with voluntary decarbonization roadmaps. While not mandatory or considered reserve fund studies under the Act, these studies encourage long-term planning for electrification, energy efficiency, and climate resilience—an area likely to shape future policy discussions.

Boards and managers should stay informed, plan proactively, and seek professional advice as these changes continue to unfold.

Warren Kleiner
Partner
Shibley Righton LLP