Serious problems with condominiums in Alberta continue to surface - and experts say the latest case, Castledowns Poite in northwest Edmonton, is a cautionary tale that demonstrates the need for greater regulation.
Anand Sharma, a condo manager and president of the North Alberta chapter of the non-profit Canadian Condominium Institute, said the evacuation at Castledowns Pointe gives him a sense of déjà vu.Experts say a condo in the Castle Downs neighbourhood is at risk of collapsing. An engineering report found trusses holding up the building were "crushing, splitting and twisting." This week, residents of the condo were told to leave immediately.
The evacuation triggered a $60-million lawsuit against more than 28 defendants, including the companies that built the complex, the architect and engineering firms that designed it, and the municipality that approved it. Litigation dragged on until final settlements were approved in 2017. The details are sealed by an order of court.
Through a receivership order, control of the property fell to a property management company that was given the power to borrow up to $1 million to bring the building up to code. The condo was sold out of receivership in March 2013.In November 2017, 125 residents of Kensington Manor in northwest Calgary were ordered to evacuate over structural concerns with the building. Attempts were made to shore up the structure with 800 trusses but residents were never allowed back.
Burton said more enforcement and oversight is needed in the construction phase to ensure condos are safe. Legal battles for damages are further complicated by ownership structures often involved in large construction projects. Developers often create a new, separate corporation that they use to purchase and develop a property, and then dissolve the company once the project is complete.
"When you get into construction and it's long-term, it becomes very difficult because the owners are responsible and there's very little recourse to others," he said. Stronger penalties, in effect since 2020 under the Safety Codes Act, mean builders can be fined from $15,000 to $100,000 for a first offence, and up to $500,000 for a second. Infractions can include interfering with the work of a safety officer, or any contraventions of the act.
In 2021, Alberta removed requirements for building assessment reports for new condominium developments. Under the previous policy, consultants were charged with closely monitoring new condo construction and drafting a report that outlined any deficiencies with a building.Sharma said milestone inspections should be mandatory at every stage of construction to ensure unsafe properties are never occupied.
The inspection process is less rigid than many believe, Christenson said. At Castledowns Pointe, the city did not monitor each phase of construction.
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