› Flat Chat Strata Forum › Levies and Unit Entitlements › special levy where 3 out of 4 owners benefit › Current Page
tiny – I don’t entirely agree, primarily because you are the fourth owner whose Lot has the possibly incorrect units of entitlement, and so any resolution such as one for the Owners Corporation not to maintain / replace items of its common property such as the garage doors would fail so long as the other three owners vote as a block.
Secondly, I don’t agree that you shouldn’t be required to contribute (via your levies) to replace an item of the common property just because you don’t personally benefit from that activity, as in addition to the proposed garage door replacement, there would be many other scenarios where you may benefit by such activities and the other owners may not to the same extent if at all.
The replacement of the roof guttering or of a faulty window above/in your Lot are but two examples that come to mind, so in this and that broader context I don’t agree that you can or should be exempted from contributing to the replacement of the garage doors just because your Lot doesn’t have one.
That’s not to say that you shouldn’t adopt Jimmy’s suggestion to seek Orders to have the units of entitlement of your Plan reallocated under Sect 183(2), as it does seem on the basis of the information provided that the original (equal) allocation was in error.
I think that the matter raised in your other post goes more to the core issue here, where the Owners Corporation refuses to set owners’ levy contributions in accordance with the Strata Schemes Management Act so that those are properly reflective of actual and expected expenditures for in the case of the Administrative Fund property insurance and recurrent expenses, and in the case of the Sinking Fund for capital expenses such as renewing / replacing common property items such as those garage doors.
The Special Levy that you mention here has been proposed for the garage doors has to be agreed to by a majority vote at a General Meeting of the Owners Corporation (e.g. and AGM), so that’s really putting the proverbial cart before the horse as that same Meeting MUST include a Motion to set realistic levies for the Administrative and Sinking Funds that must “…. take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments” (ref: Sect 75) and in the case of the latter, as Jimmy mentioned a 10 year (forward estimates) Plan.
I’m assuming that whilst the replacement of the garage doors may be somebody’s good idea, it’s likely not critical, and so I’d be advising the other owners and your Strata Manager (if you have one) in writing, that the proposed Special Levy won’t be necessary as the proposed expense has, at the next AGM, to be incorporated into the next budget estimate for the Sinking Fund as a planned renewal/replacement of an item of common property, and that whilst they’re at it, that Meeting needs to also prepare a proper budget estimate for the Administrative Fund and that 10 year Sinking Fund Plan so as to ensure that your Plan’s overall deficit of funds can be addressed.
If the other Owners have other ideas, then please come back for more (and possibly heavier) options to address the issues.