- This topic has 14 replies, 4 voices, and was last updated 10 years, 2 months ago by .
-
Topic
-
We have apprx $80,000 of repairs and maintenance approved for a small townhouse block which has been neglected over the years. One owner continually blocks all attempts to introduce a special levy – always has some reason for not agreeing. What can be done?
-
Replies
-
To avoid replies heading down the wrong path, could you please elaborate a little; like what type/s of repairs are being proposed and does this dissenting Owner own the majority of Lots or have the majority units of entitlement?
Thanks maryjane – when you say that this one Owner won’t contribute to common costs, are you saying that they’re not making Levy Contributions at all, or just that they won’t contribute to a special levy to fund the repairs that you’ve listed?
Whilst awaiting your reply, the situation (in NSW) is that your Owners Corporation (comprising you and the other 4 Owners) is legally bound to follow the requirements of the Strata Schemes Management Act (1996) and the Regulation (2010).
The relevant legal provisions in your situation are Sections 62 ,76 (clause 4), and 80, where in summary your Owners Corporation (O/C) has an absolute responsibility to properly maintain and repair its Common Property (which you’re trying to do), is able to raise a Special Levy if there’s insufficient funds to do that in its Administrative and Sinking Funds, and can collect any non-payments by an Owner via normal debt-collection processes.
All of the above can be resolved by way of a simple majority of Owners voting in favour at a General Meeting of the Owners Corporation, so a NO vote by 1 dissenting Owner in a 5 Lot Strata Plan cannot frustrate any part of the process, including the raising of a Special Levy.
I have a feeling that there’s more to come with this, so we’ll await that detail after you’ve had a chance to read through the “links” that I’ve provided and to put those in context with your situation.
Apologies for answering your questions with questions, but do you have a Strata Manager?
OK thanks for that, and the good news is that you don’t need the agreement of the dissenting Owner, just a majority vote in favour at a General Meeting; which you have.
So don’t have another Meeting or wait for the now wavering Owner to convince the dissenter, but just use the majority vote at the Meeting that’s already been held (ie when 3/5 were in favour) and instruct your Strata Manager to get cracking with invoicing and collecting that special levy.
PS – if the repairs are becoming critical as a consequence of the delays that you’ve described, you may suggest to your O/C that they contact one of FlatChat’s sponsors HERE about the pros & cons of borrowing the required funds, and then making the repayments via that Special Levy…..Whale 1740.
I agree with Whale you’ve had the vote and it passed by 3 for 2 against so get your SM to issue special levy to pay for the repairs (it doesn’t matter that 1 has changed their minds as the vote is all that counts).
Don’t wait and give the others a chanced to call an EGM to re-vote the issue because once the levy has been sent out by the SM and the due date has passed the ones that haven’t paid are then non financial so ineligible to vote on any motion until they pay this special levy.
Once the special levy has been received by the Strata it is virtually impossible to get it repaid and so you will find it easier to get the repairs done once the cash is available.
It depends on what the resolution said, the resolution should usually state when the levy is to be due and payable.
Can you provide us with the contents of the resolution?
The strata manager shouldn’t be telling you when the levy should be raised, if the work needs to be done, it needs to be done. Is the strata manager close to the dissenting owner? (not beyond the realms of possibility if he is the former Chairman)
Perhaps you need to make it clear to the strata manager that the wishes of one owner don’t govern how things are to be progressed.
Maryjane – sorry to overload you with “Guru” questions, but I was wondering about on what basis the dissenting “family member” is voting; do they hold the Owner’s proxy on each occasion?
And lastly….. did your O/C at least consider borrowing the money for the repairs as I suggested, because it appears to me that may be the solution to getting the works done now, and collecting the special levy to repay that over time; unless of course the 5 Owners can each stump-up around $16K in one hit.
MJ you have got to decide which is more important getting the repairs done or trying to please all the owners. As was said the motion to raise a special levy should have included the detail about how it was going to be raised and I would say if it didn’t it defaults to all in one hit.
BEWARE
If you let this drag on the owners might realize they could call an EGM (only requires 7 days notice) to overturn the original motion to raise the levy. Even if you raise it by a levy of $1,000 / month you need to get the first levy statement out to all the owners ASAP with an early pay by date such that those that don’t pay are then non financial and unable to obstruct your plans (until they pay).
What was the proposed resolution in the notice of meeting?
There must have been one to vote on – it can be amended at the meeting, provided the substance doesn’t change.
- You must be logged in to reply to this topic.