July 2015
The Condo Administrator is the final option for a condo corporation that has proven incapable of managing its affairs. It is typically the only practical solution following severe financial problems.
The court has discretion to transfer authority and all the powers of a Board of Directors to an administrator. This request to the court may be made by a Board of Directors, an owner or another party.
Condo Act – Section 131(1)
Upon application by the corporation … the Superior Court of Justice may make an order appointing an administrator for a corporation under this Act
This may be the consequence of years of financial mismanagement after which time the condominium corporation is unable to fulfill its financial obligations. It may be necessary to impose a large special assessment or a dramatic increase in monthly maintenance fees to prevent a financial collapse. The Board of Directors may not be prepared to impose this burden on condo owners who are their neighbours, perhaps due to conflict or animosity between owners and the Board of Directors which may have led to threats and intimidation.
The Board of Directors from past years may have been unable to recognize earlier problems or unprepared to take less drastic steps prior to the current predicament. The current volunteer Board of Directors may not include individuals prepared to or capable of taking the necessary steps to adequately govern without outside assistance.
Requesting an administrator is a last resort to resolving problems and moving forward. It is an admission that the condo corporation is incapable of managing its affairs and a request for someone else to do so.
An administrator is a short term role. They may be in place for 90 days or longer but eventually the condo corporation must commence managing its own affairs. The problems that lead to an administrator being appointed must be resolved. Conflicts must be addressed and the corporation must have sufficient financial resources to function for the long term.
