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Our building replacement insurance is due for renewal in two weeks. We don’t have enough in the admin fund to cover the cost of the premium. The shortfall is significant – around $9,000.
We could borrow from CWF but then we are obligated to raise a special levy to replace the funds we borrow within 90 days.
This would ordinarily be fine except we just recently voted to raise a special levy for some major common property repairs and the financial burden of a second levy could send some owners to the edge.
When I asked our strata manager about the possibility of premium funding he responded: “That is not recommended as the interest in funding of such works would be too high around 12-15% in addition to the fact that there will be a need to hold a EGM to resolve accepting the funding of which will also mean striking a special levy”
I’m so confused. Why would we need an EGM to take up premium funding and why would we need to raise a special levy to replace these funds???
- This topic was modified 1 year, 4 months ago by .
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