Local Improvement Rates and the Deteriorating Concrete Fence
By Brian Madigan LL.B.
This concrete fence is simply falling apart. The problem is that it was originally constructed upon private property.
Without a local homeowners association, without a condominium association, without any kind or organized local citizens group, this problem simply went unresolved for many years.
So, without a specific call to action how can this matter be resolved.
Let's consider "local improvement rates". These are assessments, just like taxes for a few specific property owners. Assuming that there are 30 homeowners who will benefit then the cost is apportioned appropriately among all 30 owners.
Now, the simple solution would be to have all 30 property owners pay in full upfront. The entire capital cost is absorbed and expended in one year. But, the fence will last for 20 years.
With local improvement rates, there is an opportunity to spread the cost over 20 years, being the life of the new fence. This is fair to both present and future homeowners. Really, only the municipality can coordinate this undertaking. But, it makes a lot of sense.
In some cases, the municipality might be called upon to contribute. So, the municipality assumes perhaps 50% of the entire expense with the remaining 50% to be assessed against the individual property owners and collected as "local improvement rates" over the next 20 years.
A municipality may be reluctant to set a precedent by assuming a contribution to the cost. However, in a recession, where both federal and provincial grants are available, they may form the basis of a very ideal and workable solution to a difficult problem.
Thanks to the recession and the infrastructure program.
Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com
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