This article discusses NSW capital works fund requirements, explaining whether owners corporations must establish a capital works fund and how legislation allows fund borrowing between accounts.
Question: Are owners corporations required to have a capital works fund? Has new legislation been introduced in NSW allowing owners corporation to borrow money from the administration fund to pay for capital works?
Answer: In NSW, capital works funds are required by the Act to be established by owners corporations.
In NSW, capital works funds are required to be established under the Strata Schemes Management Act 2015 for strata schemes and under the Community Land Management Act 2021. You can resolve to use money from one fund for administrative fund purposes and not pay it back or only part pay it back.
This post appears in Strata News #708.
Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990

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