Question: Is voting for a special levy a general, special or unanimous resolution? If it’s a general resolution, as an equally split OC can a poll be called to help us land on a decision?
I live in a 4 unit strata property. An engineer’s report has indicated we require significant work to replace our roof and façade features. Due to age and condition, there are also concerns over continued degradation and safety as well. We have shingles, tiles and wooden frame sections gradually falling off onto pedestrian areas.
There’s not enough money in the capital works fund, so we need to raise a special levy.
What are the rules around voting for a special levy? Is it a general, special or unanimous resolution? If it’s a general resolution, can an entitlement poll still be called to help us land on a decision as an equally split OC?
How do we best manage the repayment terms for the special levy? Due to the safety and integrity issues, to expedite the work there’s a preference with some to take the mortgage refinance route. However, others would prefer to run the gauntlet and pay over a couple of years. Can we vote on different timeframes to reach a majority agreement?
Answer: It is an ordinary resolution – majority vote. A poll can be called.
Ordinary resolution – majority vote. Yes, a poll can be called by any entitled owner if the decision is split on a per lot vote.
There are ways to balance this, however, strata finance is the best option to get urgent works underway and then you can raise significant levies over a slightly longer timeframe (than if you were needing the money upfront) which should negate paying much interest while giving you flexibility.
This post appears in the February 2022 edition of The NSW Strata Magazine.
Andrew Terrell Bright & Duggan E: Andrew.Terrell@bright-duggan.com.au P: 02 9902 7100