An update on the BC Leaky Condo issue

Beginning around March of 1998, an explosive issue hit the papers about leaking condominiums in the Lower Mainland of British Columbia. It was not clear why they were leaking or who was responsible. What was clear, however, was that many home owners were footing the bills.

Upon learning that affected owners were not alone in this matter, there was a public outcry to find out who was actually responsible for these "water-soluble" buildings. On April 14th, 1998 there was a public meeting held in Vancouver where concerned owners could state their case. Over one thousand people attended. It is interesting to point out that professionals within the construction industry had been aware of this problem long before this meeting. A report had been generated by the CMHC in 1995 that examined more than 40 buildings with water damage. Also, the Architects' Institute of British Columbia's Housing Committee produced a roundatble synopsis in 1995 on building envelope failures of condominiums. The City of Vancouver had even produced an administrative report in 1995 that recognized envelope failures and proposed a clarification of its building by-laws. Thus, the problem was not new to buidling specialists even though it did not gain public notice until 1998.

The sudden increase in public awareness, however, forced the government to take some action on this matter. It appointed former premier, Dave Barrett, to head a commission of inquiry into leaking condominiums on April 18th, 1998. By this time, the leaky condo phenomenon was being coined as a "disaster". Barrett's report was not completed until June and is currently available online at: http://www.qp.gov.bc.ca/condo/ and is entitled The Renewal of Trust in Residential Construction. The report makes a number of recommendations that includes establishing a Homeowner Protection Act, a Homeowner Protection Office, responsible for consumer protection, and the creation of a Reconstruction Fund to assist homeowners in need of financial support.

In June the provincial government announces the introduction of Bill 46--1998, The Homeowner Protection Act that is intended to protect homeowners by regulating the construction industry. A proposed fund of $250 million is intended to help those most affected by the results of poor construction. Unfortunately, the Bill continues to place ultimate financial responsibility on owners. It is yet unclear how the construction industry will be adequately regulated since the issue pervades a variety of trades.

In response to the events of the last six months, the Condominium Home Owners' Association has sent out a petition demanding that the provincial government allow homeowners to repeal and refund all G.S.T. on qualified repairs, to ensure that the cost of all qualified repairs are deductible from income, retroactively and in the future, to permit Registered Retirement Savings Plan (RRSP) funds to be used to undertake qualified repairs, without penalty, and to permit previously withdrawn RRSP funds used to pay repair special assessments to be income tax rebated.

Go To Page: 1 2

Articles in this Topic    Discussions in this Topic