Understanding the Organizational Structures of Developments
Governance in condominiums is defined and regulated by the Condominium Property Act, Condominium Property Regulation, and the Real Estate Act Rules.
WHAT YOU'LL LEARN
Roles and Responsibilities of Condominium Boards
Understanding Governance Structures
Relationship Between Condominium Managers, Boards, and Owners
Evaluating Governance Models
Roles and Responsibilities of Condominium Boards
Under the Condominium Property Act, a condominium board is responsible for managing the affairs of the condominium corporation. Specific duties include:
Controlling, managing, and administering the common property.
Enforcing bylaws and rules.
Ensuring the corporation complies with the Condominium Property Act and its regulations.
Boards must act in good faith and in the best interest of the condominium corporation. Decisions should align with bylaws and the Condominium Property Act.
Role of the Condominium Manager
Per the Condominium Property Regulation, condominium managers are tasked with supporting the board in executing their responsibilities.
This includes:
Collecting condominium fees.
Maintaining financial records.
Overseeing day-to-day operations, such as property maintenance.
Understanding Governance Structures
The governance structures of condominiums, cooperatives, and community associations vary in scope and responsibilities:
Condominium Boards
Governed by the Condominium Property Act
Board members are elected by unit owners.
Primary focus is the management of common property and enforcement of bylaws.
Cooperative Boards
Governed by cooperative-specific legislation (e.g., Cooperatives Act).
Members own shares in the cooperative and vote on governance matters.
Community Association Boards
Governed by organizational bylaws and possibly municipal requirements.
Typically responsible for amenities such as recreational facilities or community events.
Relationship Between Condominium Managers, Boards, and Owners
Delegation of Responsibilities
The board of directors may delegate specific duties to the condominium manager. However, the Condominium Property Act clarifies that the board remains responsible for ensuring these tasks are performed in compliance with the Act and bylaws.
Interaction with Owners
Owners have rights and responsibilities outlined in the Condominium Property Act, such as the right to:
Vote at general meetings.
Access corporation financials upon request (subject to limitations under the Condominium Property Act).
The condominium manager serves as a liaison between the board and owners, ensuring communication and operational transparency.
Evaluating Governance Models
The governance model impacts the effectiveness of a condominium's operations and dispute resolution.
Condominium Governance
Strength: Clear regulatory framework under the Condominium Property Act.
Weakness: Disputes between boards and owners can escalate if communication is poor.
Cooperative Governance
Strength: Greater owner involvement due to the share-based structure.
Weakness: Decision-making can be slower because of collective ownership.
Governance in condominiums requires an understanding of roles, responsibilities, and relationships as defined in Alberta’s legislative framework.
Key takeaways include:
The Condominium Property Act outlines specific responsibilities for boards and managers.
Effective governance requires collaboration between managers, boards, and owners.
Each governance model has strengths and weaknesses, which must be considered in operational and dispute resolution contexts.
