How are levy defaults handled when funding major building repairs?

You've asked a relatively short question, but it raises a lot of issues.

First, you are correct; the owners corporation has a positive obligation to “repair and maintain” the common property (noting this is not a new obligation — what has changed is that compliance will now be regulated and enforced).

Concrete cancer would fall under the owners corporation's positive obligation to repair — not doing so is not an option.

Second, you ask what happens if you can't get a vote to spend money on the repair across the line?

Before answering this question, we'd like to note how often owners corporations conflate the decision about what repairs to do with the decision of how to pay for the repairs.

It might sound easy for us to say; however, we strongly recommend that these steps be recognised as being different.

If a repair is required, the first step is to understand exactly what repair is necessary. Once that is understood, the cost must be established.

At this point, an owners corporation is in breach of the legislation if it doesn't vote to undertake the repair. If it doesn't — for example, the owners vote against it in the general meeting — then any owner can apply to NCAT for an order to have it fixed. Applications to NCAT are not necessarily straightforward, and whilst it's not necessary to engage lawyers to assist, it's likely a good idea to do so. We also have the Office of Fair Trading now making clear its intention to step in and do this as well, if necessary.

Along with the obligation to “repair and maintain,” an owners corporation also has an obligation to levy members to obtain the funds to do so. Owners are obligated to pay levies, so they must find the money to pay one way or another. If they don't, they will be in arrears and the owners corporation can be expected to take action.

An alternative to owners having to find all the money required to fund repairs up front through special levies is for the owners corporation to borrow the funds, and several lenders do this.