#25753
rhea
Flatchatter
Chat-starter

    Hello proudsceptic,

    Thank you for your detailed response. I live in Sydney. Unfortunately I do not know much about Strata law nor the processes that are in place.  I was under the impression that if 75% of committee member agree then the rest 25% cannot do anything. Can NCAT help me if the majority of committee were in favour of the special levy?

    Answer to your question:

    Was an option of the Strata scheme borrowing money to conduct this major work ever voted upon? We were not given an option to raise the money via a Strata Finance loan,  but asked to pay 50k each  as one instalment within the month, to which all the other owners agreed. I asked the committee to source competitive quotes but no one was in agreement to my proposal. They told me it was waste of time and they did not want to spend money on structural engineer.

    Originally two quotes were sourced for window replacement but one company withdrew therefore they engaged the other one. They did not source any more quotes.

    Excerpt from AGM minutes held on 1st Sept 2015….

    “Subject to either of the next two succeeding motions being passed, the Owners Corporation SPECIALLY RESOLVE pursuant to S65A of the Strata Schemes Management Act (1996) to authorise replacement of existing single glazed windows on common property with double glazed windows. (Balcony doors and windows are not common property).

    RESOLVED that a Special Levy contribution be raised to the Administrative Fund, pursuant to Section 76 (4) of the Strata Schemes Management Act (1996), based on Units of Entitlement such levy to be for an amount of $600,000 including GST, to be raised in one instalment due and payable on 1/10/2015, for the specific purpose of funding the balcony works and window replacement project.

    LEVY CONTRIBUTIONS: RESOLVED that levy contributions be determined pursuant to Sections 76 (1) (2) and 78 of the Strata Schemes Management Act 1996 commencing 1 October 2015:

    1. To the Administrative Fund – at the rate of $31,000 including GST per annum payable quarterly in advance (last year: $31,000).

    2. To the Sinking Fund – at the rate of $6,500 including GST per annum (last year: $5,800 including GST).”

    As you can see the strata manager has quoted all the relevent sections from the Act. I read the Section 76 there is no reference to imposing special levy nor does it sets the limit to contribution towards special levy.

    Raising another special levy before christmas is not fair. Honestly I am quite lost.

    Regards

    Rhea