The relationship between submetering and the Ontario Condominium Act, 1998 (the "Condo Act") is a frequent topic for boards considering the transition. While the Condo Act does not specifically address submetering, several provisions are relevant.
Board authority to implement submetering typically falls under the board's general power to manage the property and affairs of the corporation. Most boards proceed with a board resolution, though some corporations may require a vote of the owners depending on their declaration, bylaws, and the specific arrangements involved.
The question of whether submetering constitutes a "substantial change in the assets" or "addition, alteration, or improvement" requiring an owner vote depends on the specific circumstances. Boards should consult with their condominium lawyer to determine the appropriate approval process for their corporation.
Common expense contributions may change after submetering is implemented. When in-suite electricity costs shift from common expenses to individual billing, the electricity component of common expenses may decrease. Boards should work with their property manager and auditor to adjust budgets accordingly.
The Condo Act requires boards to act in the best interests of the corporation. When presenting submetering to owners, boards should clearly communicate the rationale (fairness, conservation, operating expense management), the process, and the expected impact on common expenses and individual costs.
Some boards have faced questions about whether submetering requires a bylaw amendment. In most cases, submetering is implemented as a service arrangement rather than a change to the corporation's governing documents. However, this is a legal question that should be confirmed with counsel.
The practical advice for boards is straightforward: get legal advice on the approval process, communicate clearly with owners, choose a licensed USMP, and follow a structured rollout plan.