› Flat Chat Strata Forum › Common Property › Owners refuse to approve essential repairs › Current Page
Repairs just requite an ordinary resolution, which is 51% or more of the unit entitlements, while improvements require a special resolution which is a majority for, and less than a quarter voting against.
So it can be tricky, if you want to replace existing features with better ones – is that a repair or an improvement?
It’s best to get quotes that are specifically for repairs, and even if the new version is better, then they can be considered as repairs. Repairs can be paid from the Administration Fund, while improvements are paid from the Capital Works Fund – if owners are investors who are renting out the Units, then this will matter too – since these are treated differently as the type of tax deductions they can claim (ie, depreciation over years or an immediate deduction).
If you get 2 builders to put together a full repair program with costings and options, and present them at a general meeting, which say that the repairs are urgent and necessary to preserve the building. These are attached to the agenda, so any purchaser will see this in a future sale, from the strata search. So you have an argument that their Units are unsaleable, or sellable at a discount, because the building needs expensive repairs. So the current owners need to get on with it… Or else they end up with Units they cant sell, and which are losing value as the building degrades. If all else fails go to the Tribunal for an Order to carry out the repairs and raise a special levy to do so.