Update: Original developer of Bella Vista condos was Seven Seven’s Corporation.
According to the CBC and Metro, Bella Vista is the latest casualty in Calgary’s growing number of condos that have been found to have significant problems costing owners tens of thousands of dollars.
Located just off 17th Avenue S.W. on 14A Street S.W., it’s less than 10 years old.
Owners are facing a bill of between $77,000 and $189,000 each, to pay for repairs to the roof, eaves, balcony and parkade in a building where some of the condos are only worth about $200,000. (Source)
According the article sourced above, an inspection turned up building code violations.
“We’ve seen substandard condo projects and building projects go up in time of a boom and there is still no government act or regulations on the books to protect homeowners and that’s what I am most disappointed about,” said Liberal MLA Ken Hehr. ”It’s very sad, my heart goes out to them. Some of the constituents I have met with are contemplating bankruptcy,” Hehr said. “This is a serious, life changing event for people. It’s very tragic.”
New homes and condos in Alberta are only covered under a one-year warranty, which isn’t enough, he said.
Alberta’s municipal affairs spokesperson Donna Babchishin pointed out that her department recently announced a move towards mandatory home warranties in the province and stricter penalties for substandard development.
“We (have) found, No. 1, that our building codes are good, but we wanted to take more steps to ensure more compliance with the building code,” she said. (Source)
Related article: Special Assessments Becoming More Commonplace
UPDATE, June 28, 2011 Calgary Sun: Bella Vista condo association president Robin Weseen said the board plans to go ahead with legal action against Seven Sevens Corp., the building’s original developer.
Al Sajan, president of Seven Sevens, said the building was built to conform to all codes and standards, and said upon completion, the building passed all the required inspections.
“We had a clean bill of health, everything was approved.” he said.
He added that regular maintenance over the 10 years since construction should prevent the kinds of issues the Bella Vista building is experiencing.
“Obviously if the issues are this extensive they didn’t occur overnight,” he said.
-
Readers, do you think it’s plausible that up to $7 million in repairs is due to the owners neglecting to do regular maintenance on the brand new building?
Important Update: The original developer of the Bella Vista was Seven Seven’s Corporation.
Prism Developments, on the other hand, wasn’t incorporated until 2006 according to the BBB and currently has an “A” rating.
Quotable:
“If you buy a car and 10 years later your engine goes bonkers, you can’t go back to the car manufacturer and say your car isn’t built right”- Al Sajan
Read more at CBC
Shoddy workmanship blamed as Calgary condo owners crippled by huge repair bills
Read more in the Calgary Herald
Some more info on Seven Seven’s Corporation from October 20, 2010 in the Calgary Herald:
Builder fined $282,375 for evading GST
Court – A Calgary condominium developer has been fined $282,375 for evading goods and services taxes over a five-year period. Alnoor Sajan, sole director of Seven Sevens Corp., was handed the fine after pleading guilty in provincial court.
The fine, court heard, represents about 75 per cent of the $375,000 the accused failed to remit to the Canada Revenue Agency between 2002 and 2006.
Sajan began construction on a condo project in Calgary in 2002 and sold all of the units by April 2006. A revenue agency investigation revealed Sajan had collected GST on all appropriate units but only remitted tax on three of them. Instead, he used the collected GST on the other units to pay suppliers, purchase real estate and invest in other development corporations.
I think that individuals such as Sajan should be banned from being involved in development projects. Otherwise, he will likely file for bankruptcy and open a new shop. A building roof should require minimal maintenance in a 10-year period.
Wondering why the city inspectors didn’t detect anything when they did the initial inspection. Should they take part of the blame?
Wasn’t squidly77 working for the developer 10 years ago?
I really recall a post of his on his always informative blog in which he stated that. Just sayin’…
Well I cant say I disagree with the developer regarding his car comment. It seems odd that “inspections” were completed during time of construction, all was approved. Now recent “inspection” has turned up many faults that should have been seen during construction?
There is no doubt the City and all involved in the inspection of this building should be held accountable but good luck with that. The consumer of this country is always on their own for everything. These people should claim bankruptcy asap and move on. Lesson learned. Many condos like this these days. Most recent is Ft. Mac. among many others.