HST impacts condo boards in many ways that can include setting condo board’s operating budget and the reserve fund (existing and future contributions). Condo boards will need to top up their building’s reserve fund if major works such as replacing roof, windows, under ground garage repairs, heating and air conditioning equipment etc. are slated for the near future.
Day to day expenses such as the cost of hydro and natural gas, landscaping & snow removal contracts, salaries of concierge and the other staff who manage and maintain the properties will also get impacted from the proposed HST hike.
As per Canadian Condominium Institute, condo fees can go up 6 to 7% in monthly common expense, as a result of this tax. For example, a 600 square foot, one bedroom condo paying 45 cents a square foot in monthly condo fees of $270 may end up paying $16 to $20 more in monthly condo fees.
Indirect impact of Harmonized Sales Tax increase might be borne by renters as a result of hikes based on operating costs for their buildings.
Read more about HST
Proposed new housing rebate in Ontario
Condo crowd ramps up for HST fight
A harmonized crush of housing market