Charged up: an Analysis on Electric Vehicle Parking in Ontario Condominiums

By Nathan Henderson and Ashley Hizo

In an effort to lower Canada’s environmental footprint, the federal government has recently published proposed regulations that set sales targets for zero-emission vehicles (ZEVs). The proposed regulations will require that at least 20% of new vehicles sold in Canada be zero emission by 2036, at least 60% by 2030, and 100% by 2035. According to Statistics Canada, approximately 86,032 electric vehicles are already currently on the road, with sales of zero-emission vehicles on the rise at 43.2% per year.

As a result of these government initiatives and emerging consumer trends, the need for accessible and convenient electric charging systems faces an unprecedented demand. While this may be a straightforward issue in a single-family home, it can become complicated in large condominium developments where multiple charging stations occupy a single parking garage, and with many condominium owners not actually ‘owning’ their parking space.  This article will discuss the legal classifications of ownership and use of a parking space in a condominium, how the installation and use of an electric car charger is initiated, and the pros and cons related to a parking space characterized as a common element.  

Legal Classifications of Ownership/Use of a Parking Space in a Condominium

A condominium’s declaration, by-laws, and rules will almost always set out what is and what is not allowed when it comes to parking.

The starting point to determine the legal ownership of a parking space is to look at the condominium declaration. A condominium declaration can be thought of as the constitution of the corporation. Among other schedules, a declaration will set out the provisions relating to the legal boundaries of a parking space.In addition to a declaration, a condominium’s by laws and rules may also inform the legal parameters of a parking space. By laws specify how the condominium corporation will run, which includes the number of directors on the board above what is minimally required by the Condominium Act, 1998, S.O., 1998, c. 19 (the “Act”), quorum, and board meeting procedures. By laws can cover an extensive range of matters but by and large usually focus on the governance of the property and how the board will carry out their duties. Rules define how the units and common elements can be used, as well as the standards of behavior for the community. Rules promote the safe and continuous enjoyment of units and common elements; they will often dictate what individuals can and cannot do on the condominium property. As set out in a condominium’s declaration, by laws and/or rules, parking spaces are additions to condominium units that can generally be classified in one of four different ways:

1. A Legal Unit

   A separately identified and transferable unit, with its own registered legal description;

2. Part of a Residential Unit

   As part of the dwelling or other main unit being purchased (a parking space may be an integrated part of a townhouse unit);

3. Non-Exclusive Use Common Elements Parking

   As part of the general common elements of the condominium, with (or without) the board assigning all parking and locker spaces to unit owners from time to time. Spaces included as part of common elements include visitor parking and often barrier-free parking as well. In this case, the declaration does not attach parking to any particular unit; or

4. Exclusive Use Common Element Parking

   As an exclusive-use common element legally attached to a specific dwelling unit, with each such parking space designated as belonging to a specific dwelling unit in a schedule to the declaration. This would be most beneficial for driveway type spaces in front of townhome units where it makes sense that the parking space be tied to a specific residential unit in perpetuity.

Installation and Use of Electric Vehicle Charging Systems

Regardless of who owns the parking space, deciding who pays for the installation of an electric vehicle charger and who pays for the use of the electric vehicle charger after installation (i.e., utility charges, any fees for the metering/submetering company, etc.) is an important financial consideration. There are currently no federal or provincial requirements for condominiums to provide electric vehicle charging infrastructure to residents. However, in 2018 Ontario established a new approval process for the installation of electric vehicle charging systems in condominium buildings for owners and corporations to follow. Installation may be initiated either by the corporation or by the owner.

Installation costs will often depend on who initiates the installation process. If initiated by the corporation, the costs of installation and maintenance and repair would generally be considered common expenses of the corporation, with the costs of use payable on a pay-per-use basis to the condominium. Resultingly, all owners would be responsible for the installation and repair and maintenance of such systems through payment of condo fees. As such, this can only be done if the parking spaces form part of the common elements of the condominium corporation. For any exclusive use areas, any cost of installation or repair/maintenance would generally still be undertaken by the condo corporation, but through language in condominium documents and as per the Act, those costs may be assessed directly to those unit owners who have exclusive use to such spaces and be added to their common expense fees.

If initiated by the owner, the owner will likely be responsible for all installation and maintenance and repair costs along with any metering/submetering costs, subject to an agreement stating otherwise. This will likely be the avenue owners take if a parking space is legally owned by them and is not considered a common element of the condominium corporation.

For the prescribed approval process under the Act, the process would be as follows:

The Condominium Authority of Ontario has also prepared a step-by-step guide on their website for owners and boards, in addition to templates to assist owners in applying for and boards in responding to applications.

Common Element: Pros and Cons

If a parking space is legally characterized as a common element and a condominium corporation initiates the installation of an electric vehicle charger system – costs will generally be distributed to all owners as a common expense, through condo fees. While the distribution of costs may result in lower installation costs to residents who need the electric vehicle charger system, residents who do not require the use of such system will experience increased condo fees for a system they do not use. That said, any use of the spaces will incur costs to the user (whether it be visitors or owners using the chargers on a pay per use basis), which may be made payable to the condominium and which would help to offset the costs for the installation and repair and maintenance of the systems going forward.

If installation for an electric charging system is initiated by the owner, (which will more likely be the case when parking is not a common element of the corporation), the owner will generally be responsible for all installation related costs, and all usage fees going forward.

With the growing demand of electric vehicles and in paving the way for a sustainable future in condominium living, it is crucial for condominium corporations and owners alike to understand what processes are/ should be in place in regard to electric vehicle charging systems.

For owners looking to install an electric vehicle charger, it is well advised to read your condominium declaration, rules and by-laws to inform yourself of the legal parameters of one’s parking space ownership.

For condominium corporations and developers, it is well advised to adopt reasonable rules and regulations governing the installation of electric vehicle charging stations in parking areas. To do so, the condominium corporation should ensure that such clause be included someplace in the declaration, rules and/or by laws, which our office has experience in implementing

For questions related to this article or legal assistance regarding a real estate matter, please reach out to one of our experienced real estate lawyers at SorbaraLAW.