#65853
Jimmy-T
Keymaster
Chat-starter

    One of the “myths” I didn’t mention in my AFR article was the misinformation that strata schemes can’t use capital works funds to install EV charging as that is an upgrade or an improvement, rather than a repair or maintenance.  This is not so, according to this from a Fair Trading spokesperson:

    Section 79(2) of the Strata Schemes Management Act 2015 (SSMA) sets out the various aspects of capital works that an owners corporation must consider and estimate expenditure for at each annual general meeting.

    This includes expected expenditure relating to renewing or replacing fixtures and fittings that are part of the common property, or replacing or repairing the common property.

    Section 79(2) notes, that “expenses of a capital nature would include expenses in relation to major repairs or improvements to the common property of the owners corporation…”.

    Accordingly, section 79(2) would permit the owners corporation to use their capital works fund to pay for the installation of infrastructure such as an electric vehicle charging station on common property as it states funds can be used for improvements.

    The NSW Government’s reforms to the SSMA in February 2021 has made it easier for lot owners to seek approval for the installation, financing and/or changing of by-laws relating to sustainability infrastructure, such as electric vehicle charging stations.

    The reforms reduced the voting threshold required for sustainability infrastructure changes to common property to a simple majority vote of the owners corporation.

    So there!  Another anti-EV myth exploded. And you don’t even need to pass a special resolution. A simple majority is all that’s required for sustainability infrastructure changes.

     

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
    • This reply was modified 1 year, 11 months ago by .