Condo Board’s Trailer Parking Ban Upheld by Condominium Authority Tribunal

Recently, in 1199831 Ontario Ltd v. Halton Standard Condominium Corporation No. 732, the Condominium Authority Tribunal (“CAT”) considered whether a Condominium Corporation’s changes to parking rules were enforceable against unit owners.

Factual Background

1199831 Ontario Ltd. (the “Applicant” or “unit owner”) operated various businesses and relied on the regular use of utility trailers. At issue were amendments to Halton Standard Condominium Corporation No. 732’s (“HSCC 732”) Rule 15 that specifically excluded utility trailers from parking on common property and limiting parking spaces per unit. Another issue that was raised was that the APS, negotiated by the buyer and the Declarant, stated that trailers could be parked in any available spots without restriction.

CAT’s Analysis

The CAT determined that Rules regarding excluding utility trailers were valid and enforceable. The CAT while coming to its decision, affirmed that HSCC 732 adhered to procedural requirements under sections 58(6) and 58(7) of the Condominium Act, 1998 (“Act”). The Board conducted owner consultations and properly notified unit owners of the proposed changes.

The Tribunal also found that the rule changes met the statutory purpose under section 58(1) and 58(2) of the Act, aiming to prevent unreasonable interference with the common elements. The Board provided evidence that parking congestion due to storage significantly impacted owners’ enjoyment of property. The Tribunal emphasized that it would not second-guess reasonable board decisions when made prudently within their mandate.

Lastly, while the Applicant argued that the exclusion of trailers negatively impacted their business while highlighting that a purchase agreement explicitly allowed trailer parking, the Tribunal clarified that individual contractual terms cannot override Condominium Declarations and Rules lawfully enacted under the Act.

Key takeaways

This decision highlights the importance of Condominium Boards ensuring procedural and substantive compliance when amending rules. It confirms Condominium Corporations have broad authority to manage common elements effectively, provided the Board acts transparently and reasonably.

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