Edmonton

Residents of evacuated Edmonton condo building saddled with $750K levy for repairs, shortfalls

Residents forced out of a north Edmonton condo building say they're now being told to pay thousands of dollars for a special levy.

'None of us deserved this,' condo owner says

Two women stand in jackets.
Rebecca Gillis and Chantal Piché, who own condos in Castledowns Pointe, are among the dozens of owners responsible for paying a special levy following the evacuation of the building in September. (Travis McEwan/CBC)

First came the fire. Then, an evacuation. And now, north Edmonton condo owners face thousands of dollars in fees.

Owners and tenants were ordered to vacate Castledowns Pointe at 12618 152nd Ave. in September after engineers investigating the damage caused by a recent fire determined the four-storey building was at risk of collapsing.

An engineering firm found structural problems with the building, not just because of the fire that had damaged 44 of its 83 units. The building had incomplete framing beginning to twist and crack, bowing walls, incomplete foundations, and weak trusses inside walls, among other problems.

Four condo owners told CBC News on Thursday that they are expected to pay thousands of dollars in fees.

At a Dec. 5 Zoom meeting, the condo's board of directors passed a resolution to assess a special levy for $750,000.

Owners must pay their share by Jan. 8, and interest will be charged on late contributions.

According to condo board meeting minutes, which a resident shared with CBC News, the special levy will be used to pay for "unexpected and urgent maintenance, repair or replacement costs" associated with the fire loss and structural repairs and "unexpected shortfalls" due to higher insurance premiums, security, legal and expert fees and other costs.

"None of us deserved this," said Salwa Mohamud, who owns a two-bedroom unit in the building and is facing an $8,550 bill.

Mohamud said she and her husband were in the process of selling their condo, and the possession date had been set for the end of September, but after the evacuation order came, the couple informed the buyers, who backed out. 

A building is seen on a cold, snowy day.
Engineers found structural problems in Castledowns Pointe after investigating the cause of a March fire. (Travis McEwan/CBC)

Calls for better protection

Anand Sharma, a condo manager and president of the non-profit Canadian Condominium Institute's North Alberta chapter, said the special levy is a symptom of a lack of protection for condo owners.

He said it's difficult for a condo board to assess a building's structural integrity after being built. 

Sharma said as corporation shareholders, the owners have no choice but to pay for repairs through condo fees or special levies. 

He said more government regulations could better protect consumers, but the developers he has spoken with want to avoid seeing seismic changes.

"It's important that we protect consumers better in Alberta, and there's no appetite to do that, unfortunately," he said.

Sell the land or rebuild

Condo owner Chantal Piché said owners have learned it would cost $7 million to rebuild Castledowns Pointe, costing each owner tens of thousands of dollars.

And that doesn't include costs for security guards, lawyers and other expenses.

"In my opinion, we're only going downhill," she said.

Piché said the levy payments are significant sums of money for many of the building's low-income residents. She said she may have to dip into her RRSP to pay her $8,500 bill. 

She and other owners want the board of directors to hold an extraordinary meeting next month to vote on whether to sell the land or rebuild.

Rebecca Gillis said she can't afford to pay her $12,000 bill and wants to see the property sold.

She said the building has become an emotional burden, and the anticipation of more costs down the road is stressful.

A woman wearing green smiles.
Kelly-Anne Durand says the evacuation of Castledowns Pointe upended her finances. (Submitted by Kelly-Anne Durand)

"It's hard to sleep at night," she said. 

CBC News requested interviews with two condo board members and the condo corporation's lawyer but has not yet received responses. 

Owners have turned to their city councillor, Erin Rutherford, for help.

Rutherford declined an interview Thursday but, in a recent statement, said she and her colleagues have asked city administration to provide a memo on the outcome of a safety codes investigation into the cause and circumstances that led to the evacuation order.

"I'm looking forward to seeing the outcomes of this investigation so we can make sure that this situation does not re-occur," she said.

Facing foreclosure

Kelly-Anne Durand, who owns a two-bedroom condo in the building and lost her income a couple of months before the evacuation, said the building problems put her in a tailspin.

She said before the evacuation, her sons lived with her in the condo and paid the property's bills, but they have since found other places to live.

Durand, who has been staying with friends and family, said she can't afford to keep paying her mortgage, let alone the levy. She said she is facing foreclosure, may have to declare bankruptcy and has come to terms with that.

"I just need to walk away and move on," she said.

ABOUT THE AUTHOR

Madeleine Cummings is a reporter with CBC Edmonton. She covers local news for CBC Edmonton's web, radio and TV platforms. You can reach her at [email protected].

With files from Ariel Fournier and Travis McEwan