MEMO TO RESIDENTS June 17^th, 2022

       On February 15^th, 2022, the Court of Queen’s Bench issued a ruling that the Bylaw amendment proposed by the Board to alter traditional unit factor apportionment of Reserve Fund Expenditures, was invalid. As a result, a correction and credit to those negatively impacted by the unlawful assessments is in fairness necessary. On March 11, 2022, the Board issued a memo to residents advising that “there are assessment adjustments that need to be made to bring practice in line with Bylaw 3”. However, on June 8^th, 2022, the Board issued a further memo advising residents of their refusal to establish any corrective measure to correct the previous reserve assessments that were deemed invalid by the Court.

1. The Board’s memo states: “The Condominium Property Act specifically and clearly states that refunds of reserve assessments cannot be made. Within the Act there are no exceptions”. HOWEVER, the “reserve assessments” included in the Board’s proposed bylaw amendment presented to the Court for its review were deemed to be unlawful and invalid as a result of the Court’s February 15^th, 2022 decision. Provisions within the Condominium Property Act regarding “refunds of reserve assessments” DOES NOT APPLY TO UNLAWFUL AND INVALID RESERVE ASSESSMENTS. Therefore, a “refund” is certainly in order and payable to 02 and 03 owners immediately. As an alternative, a request can be made to the bank to simply issue a credit to the accounts of 02 and 03 owners and a charge to 01 owner accounts.

•  On February 15^th, 2021, Justice N.D. Crooks ruled that the respective amendment to the Bylaws as proposed by the Board, DID NOT receive the necessary support, effectively deeming all previous assessments to be invalid. It is important to note, that contrary to the Board’s declaration that “refunds of reserve assessments cannot be made and within the Act there are no exceptions”, all owners of 01, 02 and 03 units, who paid the unlawful $3000 assessment due June 30, 2021 were offered a full refund of their $3,000 payment. It is interesting that the Board deemed a full refund of an unlawful assessment of $3000 to be just fine when 01 owners were unlawfully assessed, but then refuse a refund to 02 and 03 owners for their excessive contribution to an unlawful assessment.

• It is important to ensure that the negative impact of the previous unlawful assessments be corrected with adjustments to the invalid assessments. As residents were advised subsequent to the February 15, 2022 Court decision, the following corrections are necessary (considering contributions to these unlawful assessments as of March 31, 2022):

-amount payable by 01-226 unit owners $ 891.98

-amount payable by 01-228 unit owners    944.51

-amount refundable to 02 unit owners       815.01

-amount refundable to 03 unit owners       132.21

A further correcting adjustment is required for each month subsequent to March 31^st, 2022.

Any responsible resident owner will demand prompt, fair and equitable address of this matter.

Dennis Tofin Unit 603