There’s been a change in the gas pumps, and it’s not just the price of fuel. Your local garage may have recently retrofitted their pay-at-the-pump screen options to accommodate the increased cost of gas, updating prepaid amounts to a higher value since a twenty-dollar top-up now barely moves the gas gauge.

Consumer confidence in the viability of electric vehicles (EVs) is growing as we consider the long-term impact of what these price hikes mean. Whether it’s getting to work, running errands, or visiting friends and family, the cost of travel is becoming evident. We can now envision a future where it will be cheaper to buy electric rather than a mechanical, gasoline-fueled vehicle. The goal is that by 2035, we’ll all be driving them. What will this look like?

Connor Stewart started up his company, Charge Guys, in 2018 when he recognized a gap between people purchasing their first EV and being set-up with a charging station. As the company grew, he saw an opportunity to educate and provide solutions for multi-residential spaces.

“Up to now, we’ve been very reliant on oil and gas to transport us,” says Stewart “We’ve recognized as a country and as a society that this is no longer sustainable. In Canada, we are now shifting from gas sources of energy—from ‘dirty’ sources to clean and renewable sources. EV charging is the first piece of the puzzle. If everyone is switching their number one mode of transport to something electric and renewable, what’s to say they aren’t comfortable switching their entire home?”

It’s something to consider given the dynamic of the environmental crisis and the speed with which the climate is changing.

“In Toronto there’s already a framework in place called the Toronto Green Standard (TGS),” continues Stewart. “It’s a framework that by 2030, every building built in Toronto has net-zero emissions being emitted into the atmosphere. So, we’re already seeing it further up-stream.”

A poll conducted by Clean Energy Canada in May found 53 per cent of Ontarians now lean towards choosing electric over gas or diesel, but are bothered the province isn’t keeping pace with the rest of Canada.

“There was a higher proportion of EVs sold in the Yukon last year than in Canada’s most populous province,” Transportation Program Manager Joanna Kyriazis said in a statement. “A lack of provincial EV policies has meant that the majority of new EVs made for the Canadian market are sent to Quebec and B.C., making it even harder for Ontarians to get behind the wheel.”

Another factor stalling operations is the wait time for ordered vehicles, with the demand for microchips causing delays.

“I ordered an electric Ford F150. I was told it’ll be here in 2025,” says Stewart. Meanwhile, his father, who owns an automotive dealership in Woodstock, Ontario, has had to completely close for the time being due to the exorbitant cost of stocking new vehicles. “Dealerships are cutting staff and other expenses to save costs,” he says. “Prices will come back down eventually, but right now it’s chaos.”

Stewart says this period is a time of caution but suggests that it also offers an opportunity for condo managers to think ahead. “Now is the time to be proactive. The automotive industry is lagging now, but when it catches up, it’s going to hit hard. You’ll want to have EV charging built into your next reserve fund study and be prepared for demand.”

Revving-up the reserve fund

While subsection 93(2) of the Condominium Act specifies that the reserve fund can only be used for the purpose of ‘major repair and replacement of the common elements and assets of the corporation, including the potential existence and planning of such a system in the reserve fund ensures that it becomes part of the corporation’s long-term goal.

The first step is requesting an Electric Vehicle Study. This allows a corporation to structure the costs of EV charging and to incorporate the cost of installing the electrical panel into their next reserve fund study. As of today, if a unit owner approaches the board to say they’re buying an electric vehicle, there’s 60 days to provide a plan of action. Proper planning now will mean that when this happens, the corporation will have an agreement already drawn up (preferably by a lawyer) and know exactly what the cost to the unit owner will be.

Once installed, maintenance and repair of the charging stations and panel becomes a reserve fund expense, but the planning and installation can be taken care of by one of the many emerging turnkey EV companies that operate throughout Ontario and British Columbia.

New buildings are subject to laws and regulations, which require them to be compatible with EVCs. The benefits of making EV charging accessible in all multi-residential buildings—both old and new—are numerous. It is an attractive sales-factor for potential purchasers, can provide an alternative revenue stream through branding and advertising on charging stations, as well as offer potential revenue from pay-as-you-charge users. Adding to this is the simple factor of the convenience of charging at home.

While the initial cost of EVs may seem expensive now, consider the reduced cost of maintenance (think: ‘no more oil changes’) and the $5 billion being spent in Windsor for a battery plant, and the $2 billion spent by GM to update the Oshawa and Ingersoll vehicle assembly plants to support manufacturing electric vehicles. The increase in the number of available electric vehicle models is multiplying quickly.

When implementing the systems, Stewart says that while some buildings may take a solution allowing billing of individual users, others may tap into an existing sub-meter going to a specific unit and adding the charging costs to their monthly bill. Property management, for the most part, should be excluded from the final billing process, and it should be noted that most property management agreements include a clause that they will not be responsible for hydro billing.

So, where do you put the charging stations? Communal parking spots are desired, but not readily available. Visitor parking stalls may seem like a perfect solution, but the current legislation around their use means a revolving-door of condo-conundrum.

EV charging in visitor parking?

Can a corporation install electric vehicle charging stations in visitor parking? In a post on Miller Thomson’s website, lawyer Jason Rivait explains that: “A common thought from condominium corporations is to install the electric vehicle charging station in the visitor parking spaces of the property. Most declarations will contain language regarding the specific use of visitor parking spaces. Commonly, declarations will provide that the use of visitor parking spaces shall be for visitors to the building and for no other purpose.”

“If visitors are only permitted to park in visitor parking spaces, then an electric charging station in such parking spaces would be of limited value to the residents,” Rivait continues. “Additionally, if residents parked in visitor parking spaces to charge their vehicle (even if only for an hour or two), then such residents would be in contravention of the declaration, and the condominium corporation would be obliged to enforce compliance.”

Jake Fine of Lash Condo Law further commented on this in a Zoom interview. “Generally speaking, if a declaration prohibits the use of visitor’s parking by residents or owners, and exclusively limits it to use by visitors or guests. . . a corporation would not be able to install electric vehicle charging stations in the visitor’s parking for the use by owners or residents. For visitors, yes, that technically would be permitted, generally speaking, of course, but I would say no for the use by owners and residents.

“Now, the workaround—which is not really a workaround—is to amend your declaration, which is an onerous process. Each corporation should ensure to check its documentation and any development agreements because some development agreements require that corporations have a certain number of visitor parking spaces.”

So, does current legislation need to change to meet the demand we’re expecting in the very near future?

“It’s definitely possible,” says Fine. “The electric vehicle charging provisions right now are fairly new and in their infancy. Once amendments are introduced to help reflect some of the problems that are now being seen, it’s possible that the legislation will continue to change to address the evolution of electric vehicles in condominiums.”

Thankfully, hope is on the horizon with revisions to the Condominium Act (Section 93) anticipated, allowing corporations to include green energy projects as approved reserve fund projects. Until then, using the reserve fund for a component, which has not yet been budgeted for, means taking funds away from a repair or replacement which has been preplanned. As always, it is best to consult your corporation’s legal counsel before moving ahead.

Greg Fraleigh is President of The Enfield Group Inc.

 

 

Correction, August 18, 2022: This article has been updated to note that a board has 60 days to provide a plan of action if a unit owner approaches with the intent on buying an electric vehicle.