Disagreement is healthy. Dysfunction is not. Here's why and how to tell the difference

By Neziah,

Not every heated owners corporation meeting is a sign that something has gone seriously wrong. But knowing the difference between healthy disagreement and genuine dysfunction, and understanding what happens when you get it wrong, could save your building years of pain and significant financial damage. Julia Moroz, Partner at Bugden Allen Group Legal, and Alex McCormick, Managing Director of SOCM, joined LookUpStrata for a Victorian webinar that covered exactly that.

What If Owners Can’t Afford the 10-Year Capital Works Plan?

By Neziah,

What happens if half of the owners in a 13 unit block can't afford to pay for the repairs suggested in the first year of the 10 year plan. Our 10 year maintenance plan states $92,000 has to be raised.

Our levies have had a 95% rise in 12 months. We have several pensioners and low income earners in the block who struggle to pay the current fees, not to mention any further increases.

Can a Strata Manager Change Levy Amounts Without Owner Approval?

By Neziah,

At our last AGM, the Strata Company voted for an amount of both ordinary and reserve fund levies to cover costs in the proposed budget and to maintain our reserve fund balance after planned project costs at a figure that was agreed on at a previous AGM.

Our Strata Manager has varied the levy amounts, considerably decreasing the levy for the reserve fund. Can the manager do this without another vote from the strata company?

Can a Body Corporate Offer Loans to Encourage Individual Water Meter Installation?

By Neziah,

We have a situation where the Body Corporate committee wants to put water meters into each individual lot but some can't pay for it upfront. To try to convince these owners to approve the installation (which is on each owner's private lot) there have been rumours that they will be "helped" to pay presumably by the Body Corporate.

I am speculating that this will be some sort of loan from the Body Corporate. Is this legal? If so, what are the procedures and limitations? I can't find anything in the laws or searching on the internet about this.

Alan Short

By Nikki,

Alan took over as Managing Director in 2006 when his father and company founder, Robert (Bob) Short, semi-retired. His focus is sales and marketing, building Fire & Emergency Services SA's profile among property and facility managers, aged care providers, and hotel maintenance teams across South Australia—making him a familiar face at Property Council and Facility Management Association events.