SA lot owners are wondering how to raise a special levy.
Question: What is the procedure for raising a special levy in a community strata corporation? Is it necessary to call an Extraordinary General Meeting?
Answer: While the Act does not specifically address raising special levies, it is common practice for body corporate managers to impose special levies when unexpected costs arise and funds are insufficient.
The Community Titles Act mandates that contributions be fixed at general meetings, specifying that this can only be done at such meetings and not by the committee. My interpretation is that this pertains to the regular contributions raised following the presentation of the corporation’s annual budget.
While the Act does not specifically address raising special levies, it is common practice for body corporate managers to impose special levies when unexpected costs arise and funds are insufficient. This underscores the importance of ensuring corporations contribute adequate funds to cover unforeseen expenses.
Given the current cost of living challenges many owners face, many corporations are hesitant to increase their regular contributions. This reluctance can lead to situations where corporations are unable to cover everyday expenses or save for emergencies. It is the responsibility of body corporate managers and committees to act in the corporation’s best interests, ensuring the property is well maintained, and emergency works are arranged as needed. Managers and committees often raise special levies to minimise further costs and address emergencies promptly.
I recommend that each community corporation authorise their committee to approve special levies during meetings to ensure the corporation remains solvent.
The Community Titles Act differs from the Strata Titles Act. The Strata Titles Act explicitly allows corporations, by ordinary resolution, to levy contributions against all unit holders and grants the committee the authority to execute decisions requiring an ordinary resolution.
Carrie McInerney Horner Management E: carrie@hornermanagement.com.au P: 08 8234 5777
This post appears in Strata News #705.
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This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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