Caring for Our Condominiums: The Urgent Need to Act Before the Implementation of Bill 16’s Regulations

As the Draft Regulation Implementing Bill 16 Nears Adoption, Quebec Condominium Syndicates Are Urged to Take Action Now to Improve the Financial and Structural Health of Their Buildings

Historically, the minimum contribution to the contingency fund was set at 5% of operating expenses. Today, several studies show that actual needs often range between 15% and 25%, or even more in some cases. Without adequate reserves, unforeseen expenses require the convening of special meetings—often contentious—where special assessments become necessary.

Quebec’s condominium stock is aging: with an average age nearing 30 years, the need for major renovations, especially in common areas, is intensifying. The time has come to stop “kicking the can down the road,” as Me Stefania Chianetta, president of the Condominium Mediation and Arbitration Center (CMAC), puts it.

Three Mandatory Tools for Healthy Condominiums

The draft regulation proposes three essential pillars:

• The Maintenance Logbook: It must include an assessment of the lifespan of common area components and a 25-year maintenance plan. Updated annually, it must be reviewed every five years (or every 10 years for condominiums with 8 units or fewer) by a qualified professional.

• The Reserve Fund Study: To be conducted every five years, this study determines the funding needed for the interventions planned in the logbook. Syndicates should already aim for annual contributions equivalent to 0.5% to 1% of the building’s reconstruction value.

• The Disclosure Certificate for Buyers: This will become mandatory upon the regulation’s adoption. It must provide a detailed account of the condominium’s financial situation and history. A syndicate without a recent reserve fund study will not be able to produce this document adequately, which could hinder unit sales.

Better Safe Than Rebuilt

Too many buildings still suffer from undetected construction defects due to insufficient inspections. In the worst cases, buildings have to be demolished, leaving co-owners bankrupt and unable to refinance their mortgages. The Residential Construction Guarantee plans to introduce three on-site inspections starting in 2029—an improvement, but too late for many.

In response, Me Yves Joli-Cœur, president of the RGCQ, has long stressed the importance of a robust legislative framework and concrete measures to preserve Quebec’s built heritage. The maintenance logbook and the reserve fund study are essential tools that, in his view, should have been mandatory much earlier.

Late Legislation, But Essential Nonetheless

Though praised for its thoroughness and flexibility, the government's slowness in adopting these regulations remains a concern. The advisory committee report recommending these measures dates back to... 2012.

The RGCQ gives the government a B for the quality of the proposed framework, but an E for the delays in its implementation. It also commends the perseverance of stakeholders who have been advocating for more responsible and preventive management for over a decade.

The transition will not be smooth. Fee increases will be inevitable in some condominiums, and volunteer board members will face increased pressure. But the stakes are worth it: preventing costly disasters, preserving property values, and ensuring the long-term viability of Quebec’s housing stock.

The Key Message: Act Now

Syndicates have everything to gain by starting the process immediately. Reserve fund studies carried out up to two years before the regulation comes into force will be recognized. Delaying action could hinder sales, lead to legal disputes, or force sudden and painful financial catch-ups.

Now more than ever, let’s care for our condominiums. Prevention, inspection, and capitalization are the keys to a more secure collective future.