Question: Is the cost for installation of solar panels to be paid from the Reserve Fund? I would consider solar a new asset and, therefore, funds would need to be raised for this item.
Answer: It is ultimately the decision of the Strata Company, from where the funds are being drawn from.
Not knowing the financial situation of the Strata Company, the size of the strata scheme and the lot boundaries, we can only give a generic response.
Under Section 64 – Common Property (utility and sustainability infrastructure) easement – the strata company can enter into a contract – an infrastructure contract – with a person under which the person owns and operates the utility infrastructure or sustainability infrastructure on common property in the strata titles scheme, and such an infrastructure would require an Ordinary Resolution of the Strata Company.
Section 91 (2) stipulates that a strata company may improve or alter the common property in a manner that goes beyond in such repair, renew and replace common property.
If expenditure is being proposed for the installation of solar panels, that expenditure can be authorized by an ordinary resolution under Section 102; and if existing funds – whether kept in the Administrative or the Reserve Fund – does not allow such expenditure, the Strata Company can resolve by ordinary resolution to raise a Special Purpose Fund levy. It is ultimately the decision of the Strata Company, from where the funds are being drawn from.
Again, without knowing the financial situation, the size of the scheme and the lot boundaries, we are unable to advise anything further.
This advice does not constitute legal advice and we recommend that the owner obtains their own legal advice to suit the circumstances.
This post appears in Strata News #623.
Marietta Metzger magixstrata E: marietta@magixstrata.com.au P: 08 6559 7498