Question: Section 180(1) of the regulations (standard module) states that “the body corporate must maintain common property in good condition ….”. If the common property is an item of swimming pool machinery that has broken down, is it permissible for a body corporate to resolve not to repair or replace that item and if so what type of resolution is required?
Answer: The question to ask is whether repairing or removing the item can be classified as an improvement to the pool.
The question to ask is whether repairing or removing the item can be classified as an improvement to the pool. If you are talking about some machinery that is defunct and perhaps has already been replaced by a more modern system then the change could be classified as an improvement and approved by the body corporate. On the other hand, if you are just looking for a cheap way out of not repairing or replacing the item and by doing this the condition of the pool will be degraded then the conditions around maintaining the common property should be applied.
In body corporate legislation, improvements can include changes made by addition, exception, omission or substitution. Removing some worthless machinery that is no longer required fits into that category.
How the improvement gets approved may will depend on the cost and the module you are in.
There are three standard limits requiring different approval levels. Committees can approve the change up to the committee spending limit multiplied by the number of lots. The default limit is $200, so at a 20 lot scheme the committee can typically make the approval up to $4000. After that, resolution is required at a general meeting. An ordinary resolution is applicable for costs below $2000 times the number of lots. So a 10 lot scheme can approve improvements up to $20,000. After that a special resolution is required.
See this link to the BCCM website for more details on spending limits.
As a next step you might want to get a quote for the removal of the machinery and look at calling a meeting to ratify the decision to do this.
This post appears in Strata News #568.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924