Base31 Association Gets Lien And Fee Powers

Summary#

This private bill creates special rules for the Base31 Community Association in Prince Edward County. It makes every owner of land in the Base31 area a mandatory member, bound by the Association’s by-laws. The goal is to manage and fund shared services and assets in a new mixed‑use community.

• Mandatory membership for all owners of “Base31 land,” with by-laws that bind all members.
• The Association can set and collect fees (including interest on late payments) and may register a lien (legal claim) on property for unpaid amounts, enforceable like a mortgage.
• A required reserve fund (savings for big repairs) and periodic reserve studies; the board can spend reserve funds without owner consent.
• A detailed “status certificate” must be provided on request to owners, buyers, and lenders, and must be given to first purchasers before a sale is binding.
• Owners and certain occupiers (like tenants or businesses on the land) can be jointly responsible for fees, and owners can be put in default if an occupier on their land does not pay.
• The Association’s board sets by-laws on membership classes, voting, fees, and how land can be added to or removed from Base31, subject to municipal rules taking priority.

What it means for you#

• Owners of Base31 land

  • You must be a member of the Association and follow its by-laws.
  • You must pay Association fees set by the board; interest and costs can apply if you pay late.
  • If you do not pay, the Association can register a lien on your property and enforce it like a mortgage (this could lead to a forced sale if unpaid).
  • You can ask the Association for a status certificate for your lot, which confirms current fees, arrears, voting rights, insurance, budgets, and other key facts. The Association must provide it within 10 days or it is deemed given with no fee arrears.
  • You may apply to remove your lot’s “Base31” designation, but approval is up to the Association and may include conditions.
  • If someone leases or runs a business on your lot and does not pay what they owe the Association, you can be required to pay, and you can be put in default after notice.

• Tenants and businesses on Base31 land

  • You can be granted membership under the by-laws.
  • You may owe fees to the Association. If you do not pay, the owner of the lot can be required to pay, and the owner’s property can face a lien.

• Home buyers and sellers in Base31

  • Before the first sale from the developer is binding, the buyer must receive a status certificate for the lot.
  • Status certificates must disclose the basic annual fee, any stated future fee freezes, any entry fee on first purchase or resale (if applicable), other fee bases, voting structure, and key financial and legal information about the Association.

• Lenders (mortgagees)

  • You may request a status certificate for a Base31 lot and can rely on its contents as of the date given.

• Developer of Base31 land

  • You must request and deliver a status certificate to the first purchaser of each lot before the purchase agreement is binding.

• Municipalities (Prince Edward County)

  • Municipal by-laws, registered subdivision agreements, and Planning Act rules override any conflicting Association by-laws.
  • The Association may act as a liaison on matters related to Base31 and may monitor and enforce certain municipal restrictions identified in its by-laws.

Expenses#

No publicly available information.

• Private costs for owners: ongoing Association fees; potential interest and collection costs on late payments; risk of lien enforcement if unpaid.
• Possible “entry fees” on first purchase from the developer and on resale if set by by-law; the status certificate must disclose the basis for these.
• A reasonable fee may be charged for a status certificate (not more than the fee allowed under the Condominium Act, 1998).
• Administrative and reserve funding costs are borne by members through fees; amounts are not specified in the Act.
• No direct public (government) cost is identified in the bill text.

Proponents' View#

• The bill appears intended to ensure stable funding and management of shared assets and services in a new mixed-use area by making membership and fees mandatory.
• Lien powers could be seen as necessary to collect fees fairly so all owners contribute and no one free-rides.
• Required reserve funds and studies could improve long-term upkeep of shared infrastructure and amenities.
• Status certificates provide buyers and lenders with clear, standardized information before and during transactions, which could reduce disputes.
• Court “oppression remedy” gives members and others a way to challenge unfair conduct by the Association.

Opponents' View#

• Mandatory membership and fee-setting by the board may concern owners who prefer not to join or who disagree with by-laws, fees, or voting rules that are not detailed in the Act.
• Lien enforcement “like a mortgage” could lead to forced sale if debts are unpaid, which is a significant risk for owners.
• Owners may be held responsible for unpaid fees of tenants or businesses on their land, which could be seen as unfair or burdensome.
• Directors do not need to be members, and by-laws can create classes of membership with different rights; some may worry about unequal influence or accountability.
• Many key details (fee amounts or caps, voting structure, criteria to add or remove land from Base31) are left to by-laws, so the real impact depends on rules not set out in the Act.