Compliance Obligations Under Alberta Legislation
Condominium corporations and managers in Alberta are legally required to assess, manage, and mitigate risks to ensure the safety, security, and financial stability of condominium properties. To comply with this requirement, condominium managers must:
Implement risk assessment plans and ensure they are followed.
Conduct regular property inspections and address hazards.
Keep detailed documentation of maintenance and compliance activities.
Respond promptly to resident and board concerns regarding safety and security.
Failure to comply with these obligations can lead to legal liability, financial penalties, and reputational damage.
Methods for Monitoring Risk Management Implementation
To ensure compliance, condominium managers must actively monitor risk management activities using structured assessment methods.
A. Conducting Internal Audits
Internal audits help verify that risk management plans are being followed. Recommended practices include:
Monthly safety inspections of common areas (e.g., fire exits, stairwells, lighting, security systems).
Quarterly financial audits to ensure reserve funds and operating accounts are properly maintained.
Annual risk assessments to identify areas of improvement and update mitigation strategies.
B. Reviewing Legal Obligations
Condominium managers must ensure that policies and procedures align with legislative requirements. Key steps include:
Regularly reviewing the Condominium Property Act and Regulation for updates.
Ensuring contractors and service providers comply with safety regulations.
Verifying that privacy policies align with the Personal Information Protection Act (PIPA).
C. Addressing Resident and Board Concerns
Managers must be responsive to risk-related complaints from residents and board members. Best practices include:
Maintaining a complaint tracking system to document and address reported concerns.
Communicating remediation timelines to ensure issues are resolved efficiently.
Ensuring regular board meetings include risk management updates.
By implementing these monitoring methods, condominium managers can proactively identify and address risks before they become serious legal or financial issues.
Enforcement and Remediation Strategies for Risk Violations
If a condominium corporation is found to be non-compliant with risk management obligations, corrective actions must be taken to remedy the issue and prevent recurrence.
A. Common Risk Violations in Condominium Management
Failure to maintain common property (e.g., neglected repairs, uninspected fire safety equipment).
Improper financial management (e.g., inadequate reserve funds, unapproved expenditures).
Non-compliance with privacy regulations (e.g., unauthorized disclosure of resident information).
B. Corrective Actions to Address Non-Compliance
To enforce compliance, condominium managers should:
Develop an action plan to address violations and document corrective measures.
Notify the board and relevant authorities (e.g., RECA) if a serious compliance issue arises.
Train staff and board members on legal responsibilities and risk management best practices.
Schedule follow-up audits to ensure corrective measures are properly implemented.
Case Studies: Assessing Risk Compliance Scenarios
Scenario 1: Fire Safety Compliance Failure
Issue: A recent inspection found that the fire alarms in a condominium building have not been tested in over a year.
Risk: The condominium corporation is non-compliant with fire safety laws and faces potential liability if an incident occurs.
Corrective Action: The condominium manager should immediately schedule fire alarm testing, update maintenance records, and implement a routine inspection schedule.
Scenario 2: Unauthorized Resident Data Sharing
Issue: A board member shared a list of resident contact information with an external contractor without consent.
Risk: The condominium corporation violated PIPA, exposing it to privacy complaints and legal action.
Corrective Action: The condominium manager should report the breach, ensure that all personal information is handled in accordance with privacy laws, and provide board training on data protection requirements.
Scenario 3: Poor Reserve Fund Planning
Issue: A condominium board has not conducted a reserve fund study in over five years, despite a legal requirement to update it every three years.
Risk: The corporation may face financial shortfalls for future repairs, leading to special assessments or legal penalties.
Corrective Action: The manager should schedule a reserve fund study, provide financial reports to the board, and ensure compliance with funding requirements.
