2023 14-5 November Issue Number Real Estate

Condo Corner: Condominiums can have merchants and services on their property too

By Melinda Andrews

We are seeing more and more mixed-use condominium developments, which include units for both commercial and residential uses. These developments can be a great benefit to the community when managed well. They can add to the convenience of condominium living with goods and services being immediately available to residents and the public. That being said, these communities do present special considerations that Boards need to be aware of. This article will discuss some of those special considerations, namely safety and security, complaints and representation on the Board of Directors.

Safety and security

Users of commercial and residential spaces typically have different needs. Public access, for instance, might be required by commercial units, while residential condominiums generally want to limit access to units and common-element areas. 

Because of this, Boards in mixed-use condominiums need to be mindful of the differing, often competing needs of residents, owners, and guests in governing shared spaces. Making and applying rules and regulations in this setting might require some extra thought and perhaps more creativity than in communities where interests are more easily aligned. 

When it comes to property access by the general public, regulating access to a shared parking facility in a mixed-use complex will be different than in a strictly residential condominium. How Boards address these kinds of concerns will vary, but the point is that accounting for these differing needs can raise unique safety and security concerns.

Complaints 

Dealing with complaints is something that every condominium Board faces. In a mixed-use setting, the differing needs of owners and residents might present a challenge to responding and fulfilling the condominium corporation’s enforcement obligations.

Boards might need to consider where business activities can be carried out, whether special measures are needed to address noise transfer and whether there are limits on use of common elements in advertising, for instance. 

It’s a good idea to make sure there is clear guidance in the condo’s governing documents. If an issue is not clear, it’s a good idea to consider adopting a policy or making the necessary adjustments to the governing documents to properly address the issue. Taking these steps will help to ensure clear expectations and consistency.  

Representation on the Board

In mixed-use complexes, there are  typically more residential units than commercial units. In those cases, its important to consider what fair representation would look like on the Board.

There are options available, such as setting out requirements for the composition of the Board in a bylaw, to ensure the Board is representative of the community’s interests. 

In summary, the convenience and benefits of mixed-use condominiums mean that there will likely continue to be an increase in the number of these developments. At the same time, the benefits realized in these communities depend on good governance and awareness of the considerations unique to these communities.

Melinda Andrews is a lawyer at Davidson Houle Allen LLP Condominium Law.