Under the Ontario Condominium Act, 1998, boards cannot make major decisions affecting the building, common elements, or finances without following specific legal steps.
These are called “significant changes”, and they trigger strict owner rights:
- The board must notify all owners
- In many cases, the board must call a meeting
- Sometimes, the board must hold a vote before proceeding
The 10% Rule: The Financial Test for “Significant Change” 💰
Section 97(4) of the Condominium Act sets a clear threshold:
If the cost of a project or change is more than 10% of the corporation’s annual budgeted expenses, it is automatically considered a “significant change.”
For 2025, our condominium’s annual budget = $1,723,148.
That means:
- Any project costing over $172,315
- Triggers the significant change process
- The board cannot approve it on its own
What Counts as a Significant Change
A change is considered “significant” if it:
- Costs more than 10% of the annual budget
- Alters the look, function, or use of common elements
- Creates a long-term financial obligation
Examples from our community:
- Garage staircase repairs → $178,000 ✅
- Exceeds the $172,315 threshold
- Should have triggered owner notification and possibly a vote
- Boiler replacement → ~$598,888 ✅
- Far above the 10% threshold
- Should have required formal owner consultation
- Window replacement project → ~$3,000,000 ✅
- Nearly double the annual budget
- Absolutely required owner approval
What Counts as a Repair
Repairs and maintenance do not require owner approval if they:
- Are necessary to maintain the property
- Restore the property to its original state
- Don’t change the appearance, function, or use of common elements
Examples:
- Fixing a leaking pipe
- Replacing broken garage lights
- Patching small cracks in the pavement
Where the Process Wasn’t Followed ⚠️
Recent examples show that significant projects have been approved without proper owner consultation:
- Garage staircase repair ($178,000) → Over the 10% threshold, but no owner meeting was called
- Boiler replacement (~$598,888) → Massive cost, but no formal consultation
- Window replacement (~$3M) → Extremely high financial impact, yet no owner vote
Under the Act, these projects should have triggered owner notification – and in some cases, a mandatory vote – but they didn’t.
Why This Matters
When boards bypass the proper process, they:
- Erode owner rights
- Approve large financial commitments without consent
- Undermine transparency and trust
The Condominium Act exists to ensure owners have a say before significant money is spent.
The Bottom Line âś…
Under the law:
If a project costs more than 10% of the annual budget or changes the property’s look, function, or use — owners must be informed and, in many cases, must vote.
Before approving future projects, ask these three questions:
- Does it cost more than 10% of the annual budget?
- Does it change the property’s look, function, or use?
- Does it create long-term financial obligations?
If the answer is yes to any of these, you are entitled to be notified, consulted, and heard.
đź“° For more resources, rulings, and real examples, visit CondoTribune.com.
đź“Ł Because knowing your rights is the first step to enforcing them.
👉 If you believe your rights have been violated, contact us confidentially through the Condo Leak Tipline at www.CondoTribune.com/tipline – your story matters, and you’re not alone.
👉 If you believe your rights have been violated, contact us confidentially through the Condo Leak Tipline at www.CondoTribune.com/tipline – your story matters, and you’re not alone.
Disclaimer: This post is for general information purposes only and does not constitute legal advice. For legal guidance specific to your situation, please consult a qualified lawyer.
