Question: Can the body corporate committee ask for a special levy for multiple urgent water ingress building repairs without obtaining a firm quote?
Can the body corporate committee ask for a special levy for multiple urgent water ingress building repairs without obtaining a firm quote?
Background: Can we ask for $500k at our AGM to repair windows, guttering, roofing, waterproofing membranes etc which we’ve found have not been built to standard initially? Total works will be more, but we need this asap to get started prior to the wet season and getting quotes and going to EGM will lose valuable time.
Answer: A special levy doesn’t have to be linked to a specific invoice or expense.
A special levy doesn’t have to be linked to a specific invoice or expense. Indeed, it’s fairly common to have levies raised to restore liquidity if there is a deficit in the admin or sinking funds or to help set aside money for a future major project.
However, urgent levies do tend to be linked to specific expenses or at least issues – that’s why they are urgent as the money is needed for something now. If you are just asking for a general increase in liquidity – and $500k is quite a bit of liquidity – you can reasonably expect a lot of questions back about why the money is required and how it will be spent. If that is not clear it is quite possible that the proposal to raise funds will be rejected. People like to know what they are paying for.
In that context then, I would recommend that any proposals you do put to owners are supported with a clear plan and some evidence that you have sought costings and advice to see where you stand. If you can demonstrate what is required and why owners are more likely to provide a positive response.
William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924
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