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Hi,
An ambitious 10-year sinking fund forecast has our small strata making big investments next year.
However, we’ve been forced to spend very heavily on a possible legal dispute, which has left us deeply in debt (third special levy on the way!).
Question is: is it mandatory to complete every item on the 10-year plan as and when it comes up? Or, can the OC amend the plan (especially in financial hardship)?
Thanks
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The law is very vague on this. You must have a plan and you are supposed to fund it. But then you are also expected to review it periodically and there are no penalties for not funding it.
However, it’s a really bad idea to scrimp on your sinking fund if you have identified areas that will need repairs and maintenance. There are plenty of options available to you that don’t include a special levy, including a gradual increase in levies over several years or a strata loan.
Re-think the finances but don’t create problems that will come back to bite you some time in the future.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.
We had one of those sinking fund forecasts done. The report did point out some things that we hadn’t considered. But it also included items that were not common property ie items that were considered owners responsibility.
So where does a complex stand if a forecasts states that you have to increase levies for repairs to areas of the complex that are not common property?
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