This Q&A from a WA Lot Owner about Council of Owner spending limits for items not in the budget has been answered by Brian Rulyancich, StrataTAC.
Question: Does the Council of Owners have a spending limit for items not in the budget? In this case, specifically for common area security eg CCTV cameras.
Is there an upper expenditure limit which the Council of Owners can authorise if the purchased item is not budgeted? Specifically, installation of CCTV cameras and associated hardware on common areas for security.
Can this expenditure be authorised by COO without gaining the approval of all or a majority of the 80 owners?
Answer: With the new legislation that came into effect 1 May 2020, limits have been set on unauthorised budgeted expenditure and limits have been set on expenditure associated with improving common property.
There are two issues here, one dealing with unauthorised budgeted expenditure with the general management of common property, the other dealing with improvements to common property.
Under the reforms to the strata Titles Act 1985 as amended 2018 and the subsequent Regulations 2019 which all came into effect 1 May 2020, limits have been set on unauthorised budgeted expenditure and limits have been set on expenditure associated with improving common property.
- The limit for unauthorised budgeted expenditure is $500.00 per lot per financial year.
- The limit for expenditure on improving common property is $500.00 per lot.
What is Required For a Special Resolution?
A special resolution is whereby 50% or more of owners and 50% or more of their unit entitlements agree, but no greater than 25% of owners and 25% of their respective unit entitlements disagree.
This post appears in Strata News #353
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