RTA · Condominium Property Regulation
Part 1 — .1
20.04 Consequences of underestimated expenses
the 12-month period beginning with the first month in which
contributions are first levied on owners at regular intervals are
more than 15% above the projected total expenses of the
corporation as set out in the proposed budget, the corporation shall
provide the developer with
(a) a notice setting out
(i) the actual and projected total expenses, and
Section 20.05 AR 168/2000
(ii) the amount of the actual total expenses that is greater
than 15% above the projected total expenses,
a n d
(b) a copy of the financial statements and any other
documents from which the actual and projected total
expenses were determined.
(2) For the purposes of this section, the projected total expenses
are the lowest projected expenses disclosed by the developer to any
purchaser.
(3) The corporation shall provide the notice under subsection (1)
within 90 days after the preparation of the financial statements for
the 12-month period beginning with the first month in which
contributions are first levied on owners at regular intervals.
(4) Subject to subsection (5), within 60 days after receiving a
notice under subsection (1), the developer shall pay the corporation
the amount specified in subsection (1)(a)(ii).
(5) This section does not apply in respect of underestimated
expenses that result from
(a) an increase in an expense incurred by the corporation as a
result of terminating an agreement under section 17 or
17.1 of the Act and entering into a new agreement for the
same or similar services,
(b) an expense that was not reas onably foreseeable at the time
the proposed budget was prepared,
(c) an increase in an insu rance premium or insurance
deductible paid in respect of any policies paid for by the
corporation,
(d) an increase in utility charges from the market rates at the
time of the proposed budget,
(e) charges for legal services provided to the corporation aft er
the meeting convened under section 29 of the Act,
(f) an increase in the cost of a reserve fund study, or
(g) an increase in inflation, as compared to an estimate of
inflation included under section 20.03(2).
AR 181/2017 s5