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  • #8569
    Mailbox
    Flatchatter

      [This has been posted on behalf of a reader , MQ007]

      ]I read your Column regularly, and now, unfortunately for me but maybe fortunately for you, make a contribution.

      We live in a wonderful small harbourfront block which is due for repainting and other minor refurbishment after similar works were done about 12 years ago.

      Some 3 years back, Owners were notified well in advance of the impending works and the Executive agreed it was prudent to gradually raise a budget for around $200,000 based on a quote for repainting. This Budget was then used to progressively raise levies until the required work could be commenced.

      This appealed as sound management at the time and a gradual way to levy the required expense to repaint the building as a form of preventative maintenance.

      Now that we have achieved our Budget of $270,000 in the Building fund, there has been a change in the Chair and Secretary (who is also now the Treasurer) and they are refusing to get the required work done. In consequence, the building is now looking progressively worse, rust marks and other things are getting progressively worse and all our apartments are being effected in value by the dilapidated appearance of the common property and external painting.

      As some of the repainting work is also protecting timber windows and steel , it is now only getting worse and more expensive to repair.

      If we contributed our Levy’s for over 3 years for a specific purpose of repainting the building and that repainting work is now not going to be done (by the way – there is no other work being done – in substitute) what avenues have we open to either have our Levies returned and /or force the Executive to deliver on its mandate and have the Building repainted?

      Or , more basically, what can Owners do ?

      We are all frustrated at the inactivity and many of us are keen to take it to another level but feel powerless nowadays due to the stranglehold the Chairman, Secretary and Treasurer have on the funds and the agenda.

       

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    • #18271
      Whale
      Flatchatter

        You say that repainting of the Building was “agreed” and that Owners’ levy contributions were increased in order to raise the additional funds necessary to do that, and I’m assuming here that the original decision to repaint was properly resolved and minuted at a General Meeting of the Owners Corporation.

        That being the case, Section 62 of the NSW Strata Schemes Management Act (SCMA) states at Cl. 1 that “an Owners Corporation must properly maintain and keep in a state of good and serviceable repair the Common Property and any personal property vested in the Owners Corporation”, and it’s worth noting that Cl. 3 only permits an Owners Corporation NOT to comply with that requirement if “ its decision will not affect the safety of any building, structure or Common Property in the strata scheme or detract from the appearance of any property in the strata scheme”.

        Clearly your new Executive Committee’s decision not the repaint the Building (Common Property) breaches the statutory obligations of the Owners Corporation to properly maintain, and it’s further in breach as that decision may affect the structure and will undoubtedly detract from the appearance of that Building.

        What can Owners do?

        As a first step they can, individually or collectively, apply for mediation of the matter with the NSW Office of Fair Trading by completing this application form, noting the requirement for you to have evidence in support of your claim that the repainting works were agreed to be done and that your new Executive Committee is refusing to get that work done.

        If mediation fails, then there are subsequent avenues for Owners to pursue resolution, commencing with this application for Adjudication and the issuing of Orders under S138 or S140 of the SCMA by the NSW Consumer, Trader and Tenancy Tribunal.    

        This may all sound very intimidating, technical, and legalistic, but I can assure you that it’s none of those, and that on the basis of what you’ve outlined in your post, you and the other Owners are on very sound grounds to quickly and inexpensively get the outcome that you’re after; using the collected funds for the purpose intended. 

        #18272
        kiwipaul
        Flatchatter

          Whales suggestion is perfectly valid but I consider premature.

          Do you have a Strata manager or is it self managed.

          The EC can consist of up to 9 members and the Chairman, Sec and Treasurer only have 1 vote each so they can be outvoted at an EC meeting.

          If you can get 25% of owners to sign a request for a general meeting hand it to your SM with a motion to accept one of 2 quotes you will have to obtain prior to the SM sending out the agenda for the meeting.

          Simple majority of those present at the meeting is enough for one of the quotes to be accepted. You can also nominate someone other than EC member who is to be key contact to manage the painting by just passing another motion nominating this person.

          Any motion passed at an AGM or GM trumps any EC decision and so the chairman and rest would be out of the loop.

          Suggest you nominate yourself and other like minded people to the EC at next AGM.

          #18276
          Whale
          Flatchatter

            Don’t want this to sound like a mutual admiration society (Laugh), but Kiwipaul’s advice is also valid.

            My first thoughts were that as MQ007’s Building is “small”, depending upon the numbers on the Executive Committee and the extent of those member’s support, it may be difficult for him/her to achieve a majority vote; absolutely worth a try though!

            One last point (from me) – that 25% requirement in order to requisition a General Meeting is calculated on the basis of unit entitlements not Lot numbers. 

            #18301

            Thanks to Whale ,Kiwipaul and the advice of others.Its all been very helpful.

            The Exec had minuted some year or so ago a mandate to raise the >$200K of Levies to repaint and make good the building but now the Chair and Treasurer and Secretary ( the latter two being the same person in two roles) are trying to change that.  Makes one understand just how hard it must be to get Legislation through Parliament.

             

            Don’t want this to sound like a mutual admiration society (), but Kiwipaul’s advice is also valid. My first thoughts were that as MQ007’s Building is “small”, depending upon the numbers on the Executive Committee and the extent of those member’s support, it may be difficult for him/her to achieve a majority vote; absolutely worth a try though! One last point (from me) – that 25% requirement in order to requisition a General Meeting is calculated on the basis of unit entitlements not Lot numbers. 

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