A new report commissioned by Sustainable Buildings Canada (SBC) identifies Ontario’s outdated condominium legislation as a key obstacle to achieving the province’s climate and affordability goals. The study—Legal and Policy Barriers and Enablers to Deep Energy Retrofits in Ontario Condominiums by researcher Yazan Zamel—reveals that procedural rules embedded in the 1998 Condominium Act are significantly hindering the progress of deep energy retrofits in high-rise buildings.

These retrofits, which can cut emissions by 31–59% and reduce operating costs by 30–50%, are essential to improving building performance and affordability. Yet between 2018 and 2025, only 15% of high-rise retrofit projects in Ontario moved forward, compared to 35–40% in provinces like British Columbia and Nova Scotia.

The primary barrier? A requirement that 66.7% of all condo owners approve major upgrades, a threshold many buildings struggle to meet due to low meeting turnout. This supermajority requirement makes energy retrofits nearly impossible to approve in practice.

SBC Chair Bettina Hoar emphasizes that Ontario’s current governance model is “locking in inefficiency, higher costs for residents, and climate risk.” However, the report offers hope by pointing to a solution already embedded in the legislation: Section 97(5)(d) of the Condominium Act, which, if proclaimed, would empower condo boards to approve sustainability upgrades without needing two-thirds owner consent. Despite being passed in 2015, this provision has never been enacted.

Other challenges include legal ambiguity around whether high-performance replacements can be funded using reserve funds. Between 2018 and 2022, only 18% of Ontario reserve fund studies considered decarbonization or energy efficiency upgrades.

By contrast, other provinces offer successful models:

• British Columbia permits majority votes for projects in depreciation reports.
• Nova Scotia has seen over 90% approval for EV infrastructure projects thanks to clear processes and strong engagement.
• Alberta allows boards to fund upgrades using reserve funds if the work aligns with modern building codes.

SBC is advocating for four key reforms:

• Proclaim Section 97(5)(d) to streamline approval for sustainability upgrades.
• Mandate GHG and decarbonization planning in reserve fund studies.
• Clarify what qualifies as a necessary repair, enabling modern, energy-efficient upgrades.
• Expand training and engagement for condo boards and property managers.

“Modernizing Ontario’s condo rules isn’t just about climate,” said SBC Executive Director Brynn NHeiley. “It’s also about protecting affordability, supporting skilled construction jobs, and catching up to other provinces.”

SBC will continue working with policymakers, industry stakeholders, and condo communities to promote a more flexible and forward-looking governance model—one that empowers buildings to meet both environmental and economic objectives.

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