'No one has $70,000 dollars lying around': Toronto condo owners facing massive special assessment

Owners of a North York condominium are facing a potential $70,000 special assessment to address repairs to their building's parking garage.

“$70,000 is a significant amount. It makes me anxious and stressed to suddenly be burdened with this large debt," said Ligeng Guo.

Guo, who purchased a unit in the complex at 869 Wilson Avenue five years ago, currently rents out the unit and lives elsewhere in a more affordable rental. He expressed concern about the looming financial burden, particularly since he does not even have a parking space in the garage.

Guo received a notice from the property's management company, stating that repairs to the parking garage could require the condo to secure a $7 million loan, or impose a special assessment of $70,000 per unit on about 100 unit owners.

When CTV News Toronto visited the property, other residents echoed concerns about the repair costs, especially given that the building is only seven years old.

“No one has $70,000 readily available, so it’s hard to wrap our heads around what we need to do," said condo owner Augustine Ogditi.

Another owner, Elvin Aoegria, added, “The cost of living is already so high with inflation, and now we’re being hit with these additional expenses."

During a tour of the garage, it was not immediately apparent that extensive repairs were necessary. However, engineers have advised the condo board that water infiltration is posing a serious structural risk.

In response to CTV News, Patrick Greco, a partner with Shilbley Righton LLP, issued a statement on behalf of the Toronto Standard Condominium Corporation No. 2579. He noted, “The Board has been working with professional engineers to assess garage deficiencies and explore repair options. What may seem fine to a layperson is irrelevant; we must rely on expert analysis."

He further explained that water penetrating the garage's concrete roof slab presents a serious structural threat. “The Board is taking this issue very seriously, particularly in light of the 2021 Surfside, Florida condominium collapse, which had similar causes. Even if the decisions are unpopular, we must prioritize safety,” Greco said. He emphasized that board members, who are also unit owners, share the frustrations over repair costs but must ensure the building's safety.

Special assessments for condos are often necessary for major repairs, such as roofs, balconies, and parking garages. In this case, owners felt pressured by the size of the potential financial burden.

“What we’re asking for is more transparency, time, and options,” said owner Adam Lipowitz.

Following CTV News' inquiry, Greco provided an update: “Construction deficiency repairs are still needed. However, after hearing owners’ concerns at the recent town hall meeting, the Board has decided to delay the vote to give owners more time to review and consider their options.”

Owners were relieved by the delay. “We’re very happy with this decision, as it gives us more time to evaluate the situation," Guo said.

Many condominiums aim to keep maintenance fees low, but this can lead to challenges when significant repairs are needed. Prospective buyers are advised to carefully review a building’s financials and check for any upcoming special assessments.