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    I have two very small strata units in a commercial block. There is central airconditioning which has been causing problems for many years but I have not been concerned because my contributions have been very small. The units themselves are worth only about 140K each (<20sqm)

    The body corporate has said they will no longer maintain the central air as it is very expensive and pass a bylaw to this effect I believe. They have got quotes for each individual unit to install their own personal airconditioning unit (with external units on roof) with upgrades of electricity to each unit – each unit will be about 14-18K depending on size (mine is about 14K). Each unit will have individual controls. This not at all related to the strata proportion. So a small unit with about a 3rd of the strata propotion of the larger units is only paying about 20% less for the aircond

    The body corporate says the central air will be turned off, but it will be up to us to pay the 14K – if I dont then I will be left without aircond.

    So essentially what has happened is that the larger units with more strata proportion will be much better off as they have got the smaller units to subsidise the cost of upgrading the aircon. It would be much more beneficial for me to keep paying for maintenance of old central system or even new central system as my proportion is very low.

    BTW I am the only holdout – all the other owners with with small units did not pick this up and have agreed to proceed with individual units

    Anyway, apologies for long story. Interested in question and advice how to proceed.

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    Whale
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      kitkatz – it really depends upon how the Owners Corporation (O/C) resolved not to maintain its existing air-conditioning system, and how the decision to raise the necessary funds for the replacement units was taken.

      If you’re in NSW, then Sect 61(3) of the Strata Schemes Management Act (the Act) gives your Owners Corporation (of which you’re a member) the ability to not maintain its communal air-conditioning system, but only by the Secretary or Strata Manager placing an Item on the Agenda of a General Meeting (e.g. the AGM), and by a minimum 75% of Owners present at that Meeting (including by proxy) voting in favour of that action in accordance with their Lots’ “strata proportion” (actually their Lot’s units of entitlement).

      If that Item was properly passed, then there should have been a vote taken on how the funds for the replacement air-conditioning systems will be raised, where the only options are for the O/C to either meet the total expense from the Sinking Fund, or if insufficient funds exist there and in the Administrative Fund, for the raising of a Special Levy in accordance with each UOE or by the O/C borrowing the necessary funds and individual Owners contributing to the repayments in accordance with their UOE under the provisions of Sect 76(4).

      An O/C can only raise funds by way of levy Contributions from all Owners in accordance with the UOE of their Lots, and whilst a Special By-Law such as the one that you believe is proposed would be necessary if only to clarify who will “own” and will therefore be responsible for the ongoing maintenance, repair, and replacement of the individual air-conditioning systems (i.e. the O/C or the Lot Owners?), it would be of no effect unless the correct procedures as required under the Act have been followed.  

      If as I think you are claiming the correct procedures as required under the Act have been not been followed, then you need to immediately make your Secretary and Strata Manager aware in writing of the fact that the O/C’s proposals are not in accordance with the relevant Sections of the Act, and of your intention to seek Mediation of the matter by the Department of Fair Trading if they continue with implementation.

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