10 Trends to Watch in 2022
The last two years have seen tremendous changes impact the world, primarily as a result of the Covid-19 pandemic. Condominiums have not been immune to these changes and, in fact, have experienced them as a microcosm of the world at large.
As 2022 nears, it is clear that there will be a need to adjust to new realities both about the pandemic and other emerging trends. Here are ten themes and trends related to condominium living in Ontario to watch in the year ahead:
1. Changes to Condominium Act and Expansion of CAT – As of January 1, 2022, a number of changes to the Condominium Act, 1998 (Act) will come into force, including amendments to section 117 to include prohibited nuisances (e.g., odour, smoke, vibration, light). The jurisdiction of the Condominium Authority Tribunal (CAT) is expanding to include disputes about unreasonable nuisances as set out in the amended section 117(2) of the Act and disputes about provisions in a condominium's governing documents (i.e., the declaration, by-laws, or rules) dealing with nuisances and indemnification for breach of the provisions.
2. Provincial Elections – Ontarians are once again heading to the polls to elect their premier in June 2022. Condominiums represent a significant and growing percentage of homes in Ontario and the concerns of condominium owners and residents are becoming more prominent in provincial politics. The outcome of the election is likely to impact condominium living and governance depending on the incoming government's priorities.
3. Omicron and Evolving Covid-19 issues – As we approach the second anniversary of Covid-19's emergence, the new Omicron variant has thrown a wrench in everyone's plans to return to "normal". Condominiums, like the rest of society, will need to be vigilant about the evolution of the Covid-19 virus and the changing public health recommendations intended to keep everyone safe. Condominium boards will need to continue making tough decisions for their communities.
4. Rise of Digital Economy – The digital economy is becoming an inescapable and mainstream part of 21st century living. The digital economy is being discussed everywhere, iconic sporting venues are being renamed after cryptocurrencies, NFTs are being sold for digital assets, and regulations are tightening around these disruptive technologies. Condominiums ought to be aware of how the digital economy will impact them – for example, it is becoming more common for owners to question whether reserve funds can be invested in crypto (spoiler: they cannot).
5. Insurance – For some time, industry stakeholders including our condominium group have made submissions to the Ontario Government for it to step in and address condominium insurance. It now appears that those calls have been heard. The Government of Ontario has initiated public consultations to develop a better understanding of the issues facing condominiums in Ontario's insurance market, including affordability, deductibles, availability for condominium corporations, and the definition of 'standard unit' under the Condominium Act, 1998.
6. Climate Change and Green Initiatives – As wildfires, heatwaves, cold waves, and floods increase in frequency around the world, people are increasingly becoming more interested in tackling climate change and demanding that green initiatives be implemented, whether from their government, their employers, or their condominiums. Condominiums should be prepared to address questions regarding energy conservation, refuse disposal (e.g., recycling and composting), and environmental certifications (e.g., LEED).
7. Electrical Vehicles – One of the most relevant topics tied to climate change in condominiums is electric vehicles. The growth in the electric vehicle market is happening as we speak. Electric vehicles are not restricted to Teslas anymore; all the major automotive manufacturers have either released electric vehicles or have indicated that they will be doing so very soon. If your condominium has not received a request from an owner to install electric vehicle charging stations, then it will likely start receiving them soon.
8. Deliveries – If there has been one thing that the pandemic has accelerated, it is the explosion in deliveries being made to condominiums. For many condominiums, it is starting to feel like the concierge/security are acting as a post office and storage facility. Residents have completely bought into online shopping and now condominiums are receiving countless more packages from on-line sellers. That said, it's not just packages, it is also prepared food deliveries, or groceries. Condominiums need to have strategies in place to manage all the deliveries and set expectations with residents.
9. Drones – In the last ten years, drones have become a mainstream part of society, including even being toys for children. Anyone can buy a drone and use it for all sorts of exciting personal or commercial purposes. However, the features that make this powerful new technology attractive also create potential risk of invasions of privacy. For example, a drone can capture data about a building's structure as it scales the envelope, but it could unintentionally (or intentionally?) capture images of residents as it flies past their windows. Condominiums should consider the advantages of drones while taking reasonable precautions to ensure they are not misused.
10. Virtual and Hybrid Meetings – Because of the pandemic many condominiums hosted their owners' meetings virtually (e.g., via Zoom). While some owners have expressed discontent about the virtual forum, overwhelmingly the response to virtual meetings appears to be positive. This makes sense given the convenience a virtual meeting provides for all owners to participate without travel, in addition to their more efficient nature. Owners can expect virtual meetings to stay and for hybrid meetings to become more commonplace.
Our Condominium Law Group is here to assist you with all of these developments to watch in 2022 and we wish you a very Happy New Year!