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  • #8656
    levy issues
    Flatchatter

      We are strata owners who are being hit with a levy to pay for photographs to be printed and placed in the lobby and for a flag pole and flag to be placed on the roof of our building. We have supplied professional quality artworks for free for almost 2 years to decorate the lobby which was much admired by every other strata occupier we have spoken to but a member of the executive committee insists we must now remove the artwork so they can be replaced with photographs instead. We said we have no objection to removing our artworks as long as we don’t have to pay for the replacement option as it would be an unnecessary cost since the current option is supplied free. We were assured there would be no cost involved but now I discover that we and every other unit owner (regardless of size) are to be hit with a $70 levy to pay for not only the unwanted new photographs but also a flag pole and flag for the roof! Is there any right for us not to pay for this unwanted and unnecessary expense or to prevent this option being foisted upon us. I have no objection to contributing to maintenance, cleaning and repairs to common areas but not unnecessary decorative changes. Can you advise us of our rights in this matter as we are on a very limited income and fear we may be forced out by such imposts if they continue?

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    • #17655
      struggler
      Flatchatter

        I believe a special levy would have to be agreed upon at an AGM or EGM with the agreement of owners. I don’t think the EC can just impose a special levy.

        You are very lucky to only have an amount of $70 asked of yourself and other owners. I am concerned when you say that this amount could force you out. We have had a apecial levy of $500 in the past. And acquaintances of mine have been hit with $10,000 special levies for essential repairs and miantainence. You should keep in mind that there may well come a time where you will have to pay a much larger special levy than $70.

        You do not state how many units are in your complex. I personally would wonder as to how much money is in the bank. For a small complex this would not be a lot of money. A large complex of 100 would mean $7000. A lot to spend on decorations. Though not alot with a healthy bank balance in a large complex. Does your complex have enough more to cover repairs/maintenance that come up so that owners are not hit with special levies left right and centre?

        A well decorated foyer I believe would add to the value of units in a complex. It is the apartment block equivalent of “street appeal”. Don’t know that a flagpole is really necessary. And would think that this would account for the majority of the costs in this circumstance.

        #17656
        Cosmo
        Flatchatter

          I agree with struggler, a special levy or even a levy increase can’t just be imposed by the EC or even the OC.  I  think it requires a vote with not less than 25% of those voting against the levy/special levy.

          It is a matter of who will support the levy.  When you say “We have supplied professional quality artworks” I am not sure whether you are saying just yourself or various owners.  If the supplied artworks are “very much admired by every other strata occupier” perhaps it wouldn’t be too hard to get other owners to vote against the levy.

          Knowing how most owners hate levy increases and special levys pointing out to other owners that they are paying for something that you all now get ‘for free’ has to be a strong argument for not replacing the paintings.  As for the flag pole the same rules apply, how many want it and are willing to pay for it?

          As for the legalities, acquistion of the photos and flag pole would not be authorised from the Admin fund, refer section 68 and 75(1) of STRATA SCHEMES MANAGEMENT ACT 1996. This is because the expenditure is not recurrent.  The expenditure probably could be authorised under sections 71 and 75(2)(a) as acquistion of personal property.

          #17659
          excathedra
          Flatchatter

            This is not the central issue but, while a wish to fly the flag from a flagpole is commendable, someone is going to have to be responsible for raising it in the morning and lowering it at sunset (unless it is to be kept illuminated overnight).  There are rules to be observed, including a requirement to replace it promptly and properly when it becomes faded and battered from exposure to sun and wind.  If the person behind the idea is committed to doing this, fine, but what happens when they move on for whatever reason?

            #17661
            Austman
            Flatchatter

              It might depend on  where the OP lives, but Special Levies do not need a Special Resolution in Victoria if they raise less than double the annual budget.  I suspect other states could be similar  – in that there is a limit before a Special Levy needs a Special Resolution?

              Jimmy, is it possible to make the Location field in user profiles compulsory?  At least then we’d have a better chance of knowing where the poster comes from and which state law applies.

              Also, the committee has quite wide powers regarding the use of common property.  If you don’t like what the committee does then vote them out or arrange for an EM to be held – if you can get the numbers to do that – to overrule them.  If the OC buys a flag pole and erects it on common property the flag pole itself becomes common property and has to be repaired and maintained (or removed if it’s later voted to do that) by the OC into the future.

              #17662
              Jimmy-T
              Keymaster

                @Austman said:
                Jimmy, is it possible to make the Location field in user profiles compulsory?  At least then we’d have a better chance of knowing where the poster comes from and which state law applies.

                I wish! The software doesn’t allow for that (although I will check again as it’s constantly being tweaked). Meanwhile all I can do is send out a reminder with the registration emails.

                The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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