› Flat Chat Strata Forum › Levies and Unit Entitlements › Hit by another special levy being collected within one year › Current Page
Rhea you have two separate posts on the same topic.
In relation to the levies and payment arrangements – the new Act that comes into effect at the end of this month provides that an owners corporation can agree with an owner to a payment plan for overdue levies. This can only be for 12 months but can be extended by a further resolution of the OC. The OC can also resolve not to charge an owner interest on overdue levies. Refer section 85 of that Act. So what you need is a resolution of the owners at a general meeting to enter into the payment arrangement with the relevant owner.
Similar provisions applied under the old (current) Act. As proudsceptic says, these types of arrangements are not uncommon.
The OC can also resolve when it is considering a special levy to impose that levy in instalments – we have done that before, spreading the payments over a number of periods. You can also delay the payment, for example by providing that it is not payable immediately, but in three months time. However note that the OC can’t enter into a contract for works unless it has the money to pay the contract price.
I don’t agree with you that there should be a cap on levies – unfortunately that is what you sign up for when you buy into a strata scheme. The owners have an obligation to repair and maintain a building, and if a large amount of money is required then they have to raise it.