A Toronto condominium developer that moved in residents before it obtained occupancy permits is facing new calls for accountability over alleged construction deficiencies.
Residents of the 11-storey building at 859 The Queensway have reported flooding on the top floors and the ground floors, water spraying through an electrified exit sign, as well as failing mechanical systems such as air conditioning and automated garage doors.
“The AC broke down multiple times – I lost count after the fifth time – and one time it was down for a whole weekend, which was during a heat wave, obviously with a newborn they are at higher risk,” said Melanie Lima-Robeiro, whose child isn’t yet a year old. Some of the owners are on a group chat that fills with new issues every week. “One gentleman on the 11th floor, he had a crazy flood that ruined his drywall and his washroom,” she said.
First Avenue Properties and Latch Development, who partnered on the development of 859 The Queensway, were already facing demands for rebates based on city permitting issues related to the transition from builder to individual buyers.
When condominiums are nearing completion developers can begin charging preconstruction buyers what are known as occupancy fees, which can be thousands of dollars per month. In order to charge those fees, the builder must first obtain permits from municipal planning authorities affirming that a building is fit to live in.
In May, The Globe and Mail published a story detailing how First Avenue began signing occupancy agreements with 859 Queensway buyers in September, 2023, almost a week before it had obtained the necessary permits from the City of Toronto.
One of those residents, Ms. Lima-Robeiro, was living in her unit as of Sept. 29, 2023, but documents obtained by The Globe show that 859 West Condos Inc. did not get the permits necessary to legally enter into occupancy agreements with buyers until Oct. 4.
In May, owners were informed that the Home Construction Regulatory Authority had opened an investigation into First Avenue’s handling of all the units in the building given the issues reported in The Globe and Mail.
Since then, the building has been officially registered, preconstruction buyers have completed their transactions and a new board has been elected by owners to run the building’s corporation, known as TSCC 3049.
But the water and structural issues at Ms. Lima-Robeiro’s building echo those alleged in a legal claim filed by the corporation for another recently completed First Avenue building.
In 2020, a mid-rise building known as The Bennett on Bayview (3237 Bayview Ave.) was completed and registered by First Avenue and Latch. In January, 2024, the new corporation responsible for running the building, TSCC 2775, filed a claim for $2.5-million and alleged the builders failed to adhere to Ontario Building Code standards and that it shirked responsibility to correct faults under the New Home Warranties Act. They also allege a number of construction deficiencies and deviations from permits and architectural plans were not disclosed to buyers ahead of that building’s registration.
None of the allegations have been proven in court, and First Avenue did not respond to requests for comment.
The claim filed by Richard K. MacGregor of Miller Thomson, alleges, for instance, that the mechanical penthouse on the building was not waterproofed as was outlined in the architectural drawings: “Bare concrete walls have been left exposed, and have cracks due to shrinkage. The cracks now allow water penetration on windy days, and because no waterproofing was installed, constant cleanup and potential water ingress damage has been incurred.”
The condo included the City of Toronto as a defendant in the claims as “a result of failures by the City of Toronto to identify building code deficiencies prior to closure of building permits and/or occupancies.” Among the issues city inspectors should have caught, according to the complaint, is that contrary to city regulations the parking garage was left completely unpainted. “Every ceiling, wall and column shall be painted white from 60 centimetres above floor level,” the complaint reads. “None of the above were complied with by the declarant, nor did the City of Toronto require this work to be completed before closing permits.”
The parking garage at 859 Queensway was also left unpainted, according to Ms. Lima-Robeiro and confirmed by pictures shared with The Globe.
“A lot of the stuff is similar, it gets you thinking where is this building going to be in five years?” said Ms. Lima-Robeiro. “My husband said, ‘We’re the little man and they are wealthy, so they don’t really care.’ It’s hard to fight against them.”