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I hope this is the right place to post about my problem. All of a sudden we have a Special Levy of $330,000 incl GST spread over four quarter instalments. For us that means $10.560 in the next year or $2,640 a quarter. It’s a nasty surprise for our small Sydney block of cheaply built 70s units.
Some of the windows need repairing and some need replacing. The issue has been on agendas for four years with a few repairs etc. along the way, but nothing big has been approved because of the lack of homework done. There have been a rough quote or two without support data.
There were never options, recommendations or choices about materials or contractors. Never enough information to win approval.
Last week’s AGM was an electronic Zoom meeting. I judge the Strata Committee and Strata Manager thought it’d be the perfect time to slip something through under the cloak of COVID. They rightly thought owners would be even more apathetic than usual, ignore the agenda and meeting and the committee lined-up their numbers. There was a quorum but no more. BTW the committee has been the same for a few years and are pretty lazy and incommunicative. They keep outsiders out. Everything is signed over to the unresponsive SM.
When the AGM agenda went round, they must have had SOME blow back. There was an item for window replacement with just one quote at $300,000 for replacing our 150 windows with minimal information about look or materials. Plus a separate item for the Special Levy mentioned above. But a few days later a separate email came from the Strata Manager saying he and the committee had managed to find a supplier who could do the windows for $200,000. A HUNDRED GRAND LESS!
Thinking most other owners like me would see this all sounds weird and dodgy, I voted ‘No’ and sent in my voting paper. But the minutes of the Zoom meeting have made me flummoxed.
The window item did not get approved. ‘No one could agree on materials’. But the Special Levy for window repairs of $300,000 got approved, to be paid over a year as above. No mention at all about the lesser two hundred grand email.
So we have a giant Special Levy for something not hugely urgent over only a year. With COVID-19 causing some degree of financial hardship for some or even many. I think the Strata Committee and Strata Manager were worse than insensitive, I think they were downright sneaky with this.
I would like to readdress this ‘wrong’ and I have allies. I think many more will be shocked to see we’re getting a Special Levy right now, for a project that hasn’t been properly planned or costed or approved in any way, really. Can anyone suggest what we can do?
(I should mention there were additional dodgy things approved as well and some reasonable.)
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So a special levy for a project has been approved, but not the project.
If you have allies then you can request a general meeting to rescind the special levy. You will need a quarter of the unit entitlements to call the meeting. Do you think you can do that? If you do, I would get a move on before the levy notices are issued.
Another avenue is to ask the SM for details of the voting on the special levy, to determine if it was properly done. The resolution may not have been properly passed.
I agree with scotlandx.
If the special levy was correctly approved at a General Meeting, it needs to get “unapproved” at a General Meeting or by the Tribunal.
At least any money raised stays with the OC. And, although difficult to do, can be redistributed back to the owners or used for other purposes.
At least any money raised stays with the OC. And, although difficult to do, can be redistributed back to the owners or used for other purposes.
Before “difficult” insert the word “ridiculously”. Under section 77 of the NSW Act, reimbursement of unused strata funds require a unanimous vote by owners. However, there is a provision for owners to apply to NCAT for the funds to be distributed according to the calculations on which they were raised – i.e. your unit entitlements.
But if one or more people are going to vote against reimbursement – and the thwarted owners will – you might guess they will put up a fight at the Tribunal.
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.
‘Before “difficult” insert the word “ridiculously”.’
Agree. But:
“or used for other purposes.”
There can be other ways, including setting the regular levies lower for the next financial year(s) so that the “excess” administration funds are consumed.
Very awkward, and undesirable but that least the funds are eventually returned to the lots.
That’s really disappointing to hear. If no laws have been broken looks like you are out of options. Maybe try another approach. Try and join the strata committee, you only need one person to second it. Then, instead of wasting all of your energy badmouthing and making complaints against the committee, put your time to good use and help getting something done in your block of units and find a good quote for the windows yourself?
Try it!
Best of luck.
Someone from your committee has been in touch to say that you were informed about the meeting (as were other residents) and that the payment that was approved was a lot less than you said and that when someone approached you to try to explain you accused them of bullying you and harassing you at your front door.
So what’s the story here? Are you the only person in your block complaining? If nobody is listening to your complaints it may be for other reasons than those you have outlined.
I really hope you aren’t using this website and my column in the AFR to harass your neighbours (for instance by sticking copies up all over your block to “prove” you are right).
If that’s the case, you need to pull your head in. Or is everybody out of step except you?
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.
This discussion has now descended into personal attacks – some of which I have deleted – which don’t do anyone any good, least of all the readers of this website. This topic is now closed. Don’t try to post any further messages here, don’t try to start this up in another topic (unless you want to be permanently banned from the site). Move on. Resolve your differences and, most importantly, do it elswhere.
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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