WHITBY FREE PRESS, WEDNESDAY, FEBRUARY 2, 1977, PAGE 15 Dispute between region and developers over lot levies Godfrey defends condominium owners' registration rights EDITOR'S NOTE Condominium housing developments are a controver- sial new way of living which are creatingpoliticalproblems in the Durham Region. The following is a brief on the subject of condominiums submitted by Durham West MPP Dr. Charles Godfrey to the Ontario Residential Condominium Study Group, at the Scarborough Civic Centre, Jan. 26. The study group is sponsored by the Ministry of Consumer and Commercial Relations. Dr. Godfrey's brief deals with the issue of additional lot levies required on con- dominiums by the region, which have prevented owners from registering their homes, and the need for inspection of condominium develop- ments. By DR. CHARLES GODFREY, MPP This brief is concerned with the difficulties bonafide purchasers have in obtaining registration of their condo- miniums in the Durham Region. Although the prob- lem may be unique to areas where regional government has taken over from municipal government, there's a principle of generalitywhich merits the attention of your hearing. In the latter part of 1975 and early part of 1976 a group of persons purchased units in a 91 unit complex "Briarwood Townhomes" located at 1331 Gleanna Rd in Pickering. These units had been erected by Briar- wood Townshomes Devel- opment. Many of the purchasers took advantage of the 1975 AHOP programme entitling them to receive as much as $100.00 per month subsidy to their mortgage on registration. Although the complex was sold to a level at which registration could beexpected, registration was denied by the Region of Durham. This denial was based on the fact that a lot levy agreement by the developers with the municipality of Pickering, completed and payment made, was not upheld by the Region of Durham which now chose to impose an extra lot levy on each unit. This amount is in some cases up to $1570.00 per unit. (This was lowered to $1200.00 per unit at a later date). The developers took the attitude that a deal had been made with the municipality, and refused to pay any further lot levy (called a Regional Development Charge Levy) on the basis that... "the Minister's powers relating to financial require- ments of a municipality as a condition of the approval of plan of a condominium are restricted to financial require- \ments generated or otherwise precipated by the granting of such approval and do nlot permit a collection of . arbitrary amounts to subsi- dize a tax roli". Thus purchasers who had acted in good faith and paid their downpayments were unable to secure registration of their homes. The result of this was that they were re- quired to sign an Interim Occupancy Agreement, with the developers which amount- ed in some cases to more than $500.00 per month. This occupancy fee did not apply rn any way to a reduction of the capital costs of the units. Subsequent to this, numerous representations were made to various levels of regional government and to the Minister of Housing to effect some relief for these innocent buyers. However the situation remained dead- locked. The Region insisted on the collection of its additional levies. The devel- opers insisted that this was not a reasonable charge and pointed out there was no provision for them to pass through these charges to the purchasers and payment of same would result in a radical distorting of the 'condom- inium. Drawing on a previous example (Condominium project of Anglo-York Industrial Ltd.) in the same Region, a proposition was out forward that the developer would put forward a Letter of Credit while waiting the outcome of the dispute in order to facilitate registration of the units. The Region of Durham, while it agreed in principle to this step, would accept this solution only if the developer took his case before the Ontario Municipal Board rather than the Supreme Court of Ontario. The developer refused with the result that the proffered Letter of Credit was refused. In an action before the Supreme Court of Ontario, decision dated December 30, 1976, a verdict was rendered that "in the present case the applicant is not obligated to pay the Regional Development Charge Levies proposed by the Regional Municipalit.y of Durham relating to this con- dominiuin proposal". The Regional Municipality is now appealing this decision. Meanwhile letters sent to the Ministry of Housing that their good offices be exerted to persuade the Regional Municipality to accept this means of relieving the purchasers have gone sub- tantivally unanswered. The result of this dispute between the Regional Munici- pality and the builder/devel- opers is that a large number of purchasers have been denied their natural right to registration of their homes. In doing so, they have been forced to pay an occupancy fee which does not reflect in any reduction of capital costs. In most cases, the situation has resulted in considerable personal hardshipas it amount- ed to an unbudgeted expense which has to be met from an extraordinary source of funds. In addition, purchasers who have been transferred from this area to another and wish Whitby Plaza to dispose of their purchase are prohibited from doing so inasmuch as they do not have title. This results in consi- derable further economic hardship. In addition the purchasers are denied their natural right to the benefits of the AHOP programme. Àdditionally therehasbeen considerable expenditure of funds by the purchasers in order to bring legal action to facilitate registration of their units. There has been much anguish because of the uncertainity of the state of their purchases. To the objective observer it would appear that this is not a complicated problem. It should be soluble by the good faith of the developer in putting up a Letter of Credit, and by the acquie- scence of the Regional Municipality in accepting insurance that it will receive that to which it is entitled. However, obduracy on the part of the Regional Municipality has prolonged the physical and financial suffering of innocent house- buyers. I recommend to this inquiry that strong recom- mendation be forwarded to the Ministry of Housing that he will establish a mechanism whereby it is impossible for this type of situation to re- occur. The provision by the Ministry of a guarantee of funds to ensure that munici- palities can give permission to registration is the obvious route. This problem is the result of a formation of a Regional government on a Municipal government and is part of the start-up respon- sibilities of the central aovernment. Ken Bagnell is speaker Ken Bagnell, Editor of the Imperial Oil Review, and a resident of Whitby, will be guest speaker at the annual meeting of the Whitby Branch of the Canadian Red Cross Society. The meeting will be held at 6:30 p.m.· at the Whitby Malt Restaurant, Feb. 8. Tickets are available at the Red Cross office in the Centennial Building until Feb. 3. Anyone wishing tickets, reservations or infor- mation may caIl the Red Cross at 668-2741. Mr. Bagneil has a long history of work in journalism, having been managing editor of the United Church Observer, editor of the Globe Magazine, and daily columnist for the Globe and Mail. His topic at the Red Cross meeting will be: "The Media and the Myth". 668-6922 Because of the shoddy workmanship which is a common finding in condo- miniums, and inspite of the fact that municipal inspec- tors ensure minimal quality of construction, it is recom- mended that the Ontario Federation of Condominium Owners be encouraged to enter the field of inspection 8P.M. Dinner 1OP.M. Show of condominiums. This inspection would be carried out by a qualified buildingi inspector prior to acceptancei of the condominium by the purchasers. Such inspectors would be paid by the Ontario, Federation on the basis of* membership fees of condo- minium groups on Ontario. In practice it would mean. that associations would he formed by would-be condo- minium owners and member- ship taken out in thecentOl organization. This membeir- ship would include fees which would permit the retention of expert building inspectors who would be responsible to the -would-be owners of the condominiums. Big increase in building since 1974 The number and value of building permits issued by the Town of Whitby rose slightly in 1976 over the previous year, but showed a significant increase over 1974. The town issued 687 building permits in 1976 compared to 598 in 1975 and 377 .in 1974, said a recent public works report. The value of building permits in 1976 was $25,668,737 compared to $23,770,171 in 1975 and $17,299,398 in 1974. There was a significant increase in commercial per- mits in 1976: 40 in 1976, valued at $2,089,925 com- pared to 30 valued at $800,060 in 1975. In 1974 there was a greater value of commerical permits, 34 permits valued at $4,082,505. Industrial permits were down about a million dollars in 1976. Twenty-nine permits valued at $3,285,583 were issued, compared to 32 valued at $4,396,645 iss-ued in 1975. In 1974 there were 21 industrial permits valued M - at $3,635,150. Residential permits have slowed a steady increase since 1974. At that time there were 232 residential permits issued, valued at $6,932,988. In 1975 there were 443 permits issued, valued at $14,794,486; and in 1976, 530 residential permits valued at $17,689,393. Residential agricultural permits have dropped slightly, to 30, valued at $801,971 in 1976, compared to 40 at $947,400 in 1975 and 45 at $995,415 in 1974. Institutional permits numbered the same as last year (nine) but their value was half that of 1975. Insti- tutional permits in 1976 were valued at $1,560,465, com- pared to $2,287,100 in 1975, and $969,000 in 1974. Three permits were issued in 1974. There was one recreational building permit issued in.each of the three years. Values were $615,000 in 1974, $3,000 in 1975 and $24,000 in 1976. The number of agricultural permits remained about the same, 19 in 1975 and 1976 and 20 in 1974, but values fluctuated. Values in 1974 were $74,340, 1975 $541,480, and 1976 $217,400. Deloitte, Haskins & Selis CHARTERED ACCOUNTANTS Offices in Major Canadian Cities Bell Canada Building Oshawa Centre, Oshawa Phone 579-8202 BRIGADOON Restaurant Tavern & Banquets Hwy. 2 E. of Port Union Rd. Scarborough 286-1212 $120 p/p Thurs. $15" p/p Fri., Sat. P.O. BOX 800, OSHAWA, ONT. Brigadon Coming February 3rd. JOHN CARNEY An evening of solo performances Dinner and Show Look Naturally Good Ir bng eut the bst ia you eri "eu h: We oit IW the Jsitt "gtyr face. MEN'S HAIRSTYLING Come & enjoy an evening with one of Scotland's most celebrated actors. Feb. 3, 4, 5, 10, 11, 12, 17,18, 19 RESERVE EARLY Sunday Brunch $24 L- 1 -T- - ffl * qký