This article discusses whether a strata manager change levies without owner approval is lawful, explaining the voting requirements under the Strata Titles Act 1985.
Our Strata Manager has varied the levy amounts. Can the manager do this without a vote from the strata company?
At our last AGM, the Strata Company voted for an amount of both ordinary and reserve fund levies to cover costs in the proposed budget and to maintain our reserve fund balance after planned project costs at a figure that was agreed on at a previous AGM.
Our Strata Manager has varied the levy amounts, considerably decreasing the levy for the reserve fund. Can the manager do this without another vote from the strata company?
Section 102(4) requires an ordinary resolution of the strata company to vary an approved budget.
The short answer is no.
There is no provision in the Strata Titles Act 1985 for a strata manager to vary the levy contributions. Section 100 clearly states that the strata company (i.e. all owners) must determine the amounts to be raised via a general meeting, and as part of the Budget required by Section 102.
Section 102(1) requires that the budget for each financial year is submitted for approval at each Annual General Meeting, and Section 102(4) requires an ordinary resolution of the strata company to vary an approved budget.
This post appears in Strata News #524.
Andrew Chambers Chambers Franklyn Strata Management E: andrew@chambersfranklyn.com.au P: 08 9200 4200