Kaindub said:
The strata act says that this situation has to be rectified within 3 months.
I only mention this because I made the same error a couple of weeks ago and was corrected offline. Section 76 (2) only says the OC must, within three months, determine the amount to be levied to repay the loan, not actually repay that loan within that timescale.
It would be very easy to see how that figure could slide around for years while the committee is recommending keeping the levies to a minimum.
And it looks very like in this case the committee/treasurer is using the capital works fund as a bank for the admin fund, and having kept levies too low in the past, and now the chickens are coming home to roost.
I wonder how old this building is, because if it’s post-2016 the developer could be forced to make up the deficit if they set the levies unrealisitically low to encourage sales.
Section 76 (2) The owners corporation must, not later than 3 months after the transfer or use, determine the amount to be levied as a contribution to the fund from which the transfer or use was made to reimburse the amounts paid from the fund.