› Flat Chat Strata Forum › Levies and Unit Entitlements › Strata Loan › Current Page
OK, I’m going to take a punt here and say that there is a way that this could be done by stepping through sections 110 and 111 of the Act, the first of which allows the owners corp to borrow money and the second that allows the owners corp to provide a service to lots.
I hope someone with a better knowledge of Owners Corp finances will have a view on this but here goes.
The OC borrows the money to get the work done and issues “loans” to owners to pay for the work, according to their Unit Entitlements.
The owners then repay the loans according to an agreed schedule and their share is apportioned to their levies bill as loan repayment, not as a part of their levies.
This is the same principle by which some owners have to pay penalty interest for late payment – it’s not a cost that shared across the board but bills come as part of the levies.
Part of the agreement is that anyone who wants to pay off their loans faster gets priority on having the work done.
Does that boat float? Maybe you should call Paul Morton at Lannocks who advertises at the bottom of this page. He must surely have encountered this before.