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I am an owner in a strata plan that is part of a community association.
The Community executive are proposing to change the usage of a small building in the community grounds and upgrade the surrounding area with landscaping, paving, roofing and retaining walls.
When this proposal is put to a meeting of the community in an AGM, is the voting on this matter treated as an ordinary resolution or a special resolution.I enjoy reading your column each week and the information it provides.
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Chesa – a Special Resolution is required for your Owners Corporation (O/C) to consent to the upgrade works, where ≥75% of those Owners in attendance, both personally and by proxy, at the General Meeting need to be in favour in order for the Motion to pass.
That percentage is calculated on the basis of the sum Lot Units of Entitlement (LUOE) of those at the Meeting who vote in favour, and the sum LUOE of all those in attendance (i.e. a “poll vote”).
The relevant section of the NSW Strata Schemes Management Act is 65A, which in part states, at clause (1):
For the purpose of improving or enhancing the common property, an owners corporation or an owner of a lot may take any of the following actions, but only if a special resolution has first been passed at a general meeting of the owners corporation that specifically authorises the taking of the particular action proposed:
(a) add to the common property,
(b) alter the common property,
(c) erect a new structure on the common property.
By the way, if the proposed change of use for the building eventuates, it would be prudent to discuss that (change) with your Strata Insurer.
So the small building on the community grounds are the association property of the community association? i.e. the building doesn’t belong to any one strata scheme in the association?
Apologies if the following is the bleedin’ obvious…
The legislation for Community Associations can be found here:
Management Act: https://www.austlii.edu.au/au/legis/nsw/consol_act/clma1989255/
Development Act: https://www.austlii.edu.au/au/legis/nsw/consol_act/clda1989292/
There is a living in community schemes doc from NSW Fair Trading here:
https://www.fairtrading.nsw.gov.au/pdfs/About_us/Publications/ft191.pdf
Schedule 6 of the Management Act mentions what sorts of motions need unaminous &/| special resolutions & what sort require amendment to the community association management statement. Direct link here:
https://www.austlii.edu.au/au/legis/nsw/consol_act/clma1989255/sch6.html
I suspect community schemes are a rare commodity at the moment, so if you can’t find the answer in the legislation or the by-laws/docs for your community association, I suggest consulting a strata lawyer who knows the community scheme stuff as well.
Sorry to be no more use than a link fest.
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