Overview of an Interim Condominium Board
An interim condominium board is the initial governing body of a condominium corporation before unit owners elect a permanent board. It is established by the developer and plays a crucial role in overseeing the corporation’s financial, administrative, and operational responsibilities until the transition to an owner-elected board.
Under the CPA, a developer must appoint the first board of directors, known as the interim board, within 30 days after the condominium plan is registered.
Statutory Responsibilities of an Interim Board
The CPA and Condominium Property Regulation define the key responsibilities of an interim board, including:
Corporate Governance Responsibilities
Managing the affairs of the condominium corporation in compliance with the CPA and its bylaws.
Holding board meetings and maintaining meeting minutes.
Enforcing condominium bylaws and rules until a permanent board is elected.
Representing the corporation in legal matters if necessary.
Financial Responsibilities
Collecting condominium contributions (fees) from unit owners.
Preparing and maintaining financial records in accordance with the Condominium Property Regulation.
Ensuring the establishment of a reserve fund, including conducting or obtaining a reserve fund study.
Governance and Decision-Making Responsibilities
An interim board must exercise decision-making authority in accordance with the CPA and condominium bylaws. The following governance principles apply:
Board Decision-Making Process
The interim board must act in the best interest of the condominium corporation.
Quorum requirements (minimum number of board members present) must be met for valid decision-making.
Decisions must be recorded in meeting minutes to ensure accountability.
Financial Oversight
Preparing an initial budget to cover operational costs.
Overseeing special levies if additional funds are required for expenses.
Ensuring compliance with trust fund and financial reporting obligations under the CPA.
Applying CPA Provisions to Interim Board Operations
A condominium manager working with an interim board must ensure compliance with CPA provisions by:
Reviewing financial records to confirm that common expenses and reserve fund contributions are properly documented.
Ensuring board meetings follow CPA requirements, including proper notice and quorum rules.
Assisting in the transition by verifying that the interim board has obtained all required documents from the developer before the first owner-elected board takes over.
Key Legal Requirement
Under the CPA, a condominium corporation must establish and maintain a reserve fund to cover major repairs and replacements of common property. This ensures the financial stability of the corporation beyond the interim board’s term.
