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Topic
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We live on the ground floor of a self-managed 4 unit strata block. The owners upstairs owners want insulation installed in the roof. The two ground floor owners will get little/no benefit from this. The roof is common property so insulation must be approved by the body corporate.
Is there a precedent or guideline on how much of the cost of insulation should be contributed from the strata funds?
Thanks
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I am surprised someone has not answered this already.
The roof space is common property. If the upstairs occupants want insulation, they would need to raise a by law.
For the OC to install insulation, it would considered to be an enhancement of the property, which requires a special resolution to be passed.
Since a special resolution requires no vote to be cast against it, you have the power to oppose it. (Not so – see Item 3 below – JimmyT)
Now if the upstairs occupants want to raise a by law, include that they pay for the installation as well as maintains it.
Robert
@kaindub said:
…Since a special resolution requires no vote to be cast against it, you have the power to oppose it.Not sure where the poster is from, but as far as I know, in all jurisdictions, a ‘special resolution’ requires, firstly, a majority in favour, and secondly, fewer than one quarter or one third opposed, in the cases of NSW and ACT, respectively. I this OC, with 4 units, it is possible that one vote against would not amount to a quarter and prevent a special resolution from passing if a ‘poll’ is demanded and the one person opposed has less than a quarter of the unit entitlements.
Now if the upstairs occupants want to raise a by law, include that they pay for the installation as well as maintains it.
That seems reasonable if the upstairs occupants are the only beneficiaries. If there is a stairwell or other common property with exposure to the uninsulated ceiling then that might not be the case. In that case a pro-rata arrangement by area might be more reasonable, perhaps 40% to each upstairs unit and 20% to the whole OC.
I agree with Peter C but I would add that there would be an argument (which may not fly too far) that in not insulating the roof the owners corp is not properly maintaining common property.
Look at it this way, the upstairs apartments, by default, provide insulation for the lower floors – but who provides insulation for them. Then there is the question of shared responsibility.
Q: If my unit is contained within the East, South and West walls – why should I contribute to the maintenance of the North wall?
A: Because it’s not just about me and what directly affects me.
I can think of half a dozen strata lawyers who would love to run that argument through NCAT. However, as PeterC says, this should be done amicably and without getting all Rumpole of the Bailey about it.
If everyone accepts that insulation is a good thing for the environment, if nothing else, and the owners corp wants to avoid unnecessary costs and have some control over the quality of the insulation, you should reach an agreement, take a financial contribution from the upstairs owners and get on with it.
The financial and social cost of fighting this outweighs any benefit that might later accrue, especially if NCAT ultimately ordered the Owners Corp to install the insulation at its expense.
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.
Good point that the upstairs units are providing insulation to the downstairs units.
Also good point that it is in the OC’s interests to control the installation of the insulation on the common property and ensure a good job is done that does not risk other aspects of common property (no dislodging roof tiles, covering wiring etc.)
Perhaps better for the whole OC to do the insulation and perhaps then apply the same principle to some other improvements that might disproportionately benefit the downstairs units, just so everyone feels that it was evened out.
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