Turnaround Story – Recovering from Bad Management

December 2022

The condominium corporation was in trouble after years of poor board oversight.  There were no elections or financial reports.  Residents did whatever they wanted.  Nobody followed rules because there were none.  Water leaks proliferated because the developer did a poor job of waterproofing.  If a major disaster occurred, the corporation did not maintain sufficient insurance.

Problems came to a head in 2015 after a newly elected director delved deeper.  There were numerous water leaks.  More than $350,000 was owed to vendors with only $15,000 in the bank.  Half of all unit owners, including two directors, were not paying their condo fees and in arrears.

It took six years to negotiate those debts down and pay them, build up financial reserves, collect arrears and start fixing up the building.  A $1.5 million loan was refinanced so that $700,000 could be pulled out to make repairs.

The building culture was revamped.  Rules were implemented and enforced.  Some were upset they could no longer leave personal items in hallways or store items in the garage.

Most are now happy to be living in an improved community.