Question: We require a special levy to pay for an urgent roof repair. What is the process for raising a special levy?
Our strata complex of 9 units has recently completed a large scope of work regarding maintenance of the buildings, for example – replacing barge boards, scribes, Hardie sheeting etc.
During the process, the carpenters found and completed roofing issues that needed to be fixed immediately. The original maintenance and painting invoices amount to $51,000. We have enough in our reserve fund to cover these expenses. The unplanned additional work is $13,000, due for payment in a few week’s time. We do not have the fund available to pay for the extra work.
We are looking to raise a special levy to cover the roofing invoice. The levy will be a one-off payment of $1,445 per unit.
What is needed in the correspondence to all of the complex owners, and what is the process for raising the special levy?
Answer: You have two options for raising the special levy.
There are two options:
- Pursuant to Section 128 of the Strata Titles Act 1985, the strata company (via the Council of Owners) instructs the strata manager to convenes an Extraordinary General Meeting that includes a motion to raise a special levy.
- Pursuant to Section 120 of the Strata Titles Act 1985 & Regulation 89 of The Strata Titles (General) Regulations 2019, the strata company (via the Council of Owners) instructs the strata manager to put a motion to all owners to raise a special levy outside of a general meeting.
Note: Regulation 89 has five specific conditions to be met when voting outside of a general meeting.
This post appears in the December 2022 edition of The WA Strata Magazine.
Andrew Chambers
Chambers Franklyn Strata Management
E: andrew@chambersfranklyn.com.au
P: 08 9200 4200
Is it normal practise that DEFT fees are charged out per unit to the administration fund or are they generally incorporated into the charges in the strata manager’s contract?
Can the reserve fund be increased so there is $500k sitting in the bank for an emergency.
We have a lot of older owners who will never see that money vein used.
We ask what it’s for and advised ‘for an emergency’
My fees gave j crease by over 110% in 3 years.
My strata fees increased by 60percent from $1175/quarter to $1750/quarter. The fee rise was voted on the affirmative at an AGM. However after the AGM when owners received their new strata fees up 60percent., there was a general outcry. The main reason was that at the AGM the strata managers, in the minutes and orally at the meeting failed to reveal that the levies voted on were that extensive. The minutes showed only each units share of the increase.. I understand that under the Corporations Act. Minutes are required tobe understandable to the layman.
I this case the amount of the new strata fees voted on was not clear, and I believe may have been deliberately concealed by strata language that was not understood by a majority of owners. Is it the case that the minutes, by law, should be understandable to the layman?
Hi Sally
Andrew Chambers, Chambers Franklyn Strata Management has responded to your comment in the article above.
The following comment has been submitted by Rayna Robinson, Rainbow Coast Insurance Brokers:
I’ve just read Shelley’s response to the above question in the LookUpStrata newsletter #491.
One thing you should have included in your response is to warn strata companies that if they’re going to reward busy bee participants in any way, it makes them a worker under the WA Worker’s Comp Act – therefore, they need to ensure they have such a policy in place.
Work for no reward = voluntary worker
Work for reward in cash or kind = employee
Hello, with changes to the strata titles act, can the budget and levies be changed without having to hold a general meeting?
I’m owner of a unit in a small complex of three. Since I arrived there is a lady “in charge” of the Strata Title. So called Secretary.
She charge me different amount of dollars every two months without inform what is that pays for. She oppose of any small improve i like to do, she says the property is common and it’s necessary ask to do so. The other owner lives In Singapore.
I don’t like to get into arguments. So I don’t know what to do and where ask for help or advised
I am the owner of a villa in a 12 units strata for over 55`s.. The owners are mostly older people : two are in hospitals , one was dead at the time of the latest AGM , for two others English is a second language , one is too ill to be bothered , there was another one who seemed interested in being active in the Council of Owners , but gave up because “life is too short” to waste in Council disputes , There are two ladies who are very active : one is self elected President of the Council who nominated her two friends Secretary and Treasurer of the Council of owners . The President also nominated volunteers two other owners who follow her directives .
The Manager was acting as Chairwoman in the last AGM and was cheering up with teenager enthusiasm for any proposal put forward by the Council of Owners Secretary.
I am one of the owners whose English is a second language. I had the proxy for one of the owners “whose life is too short to waste in the Council dispute”. I had a list of questions for the Secretary : any question was badly answered or not answered at all. The Secretary stated that she has no receipt for presumed work carried out by “very skilled ” workers on the roof of my villa badly damaged by a tall truck . The reason : in WA workers do not release receipts , confirmation was asked to one of the volunteers present who declined answering because hearing impaired… and so on . The Manager decided the majority win anyway and I was sadly outnumbered to have any right at all in that council.
I pay $440.00 a quarter for close to nothing . I do not even get minutes or communications other than to pay on time. It is clear that cannot be alright a majority obtained with proxies from people who do not know what is going on . I wish to know where my money are spent ,who get the interests, what kind of project my money are used for… As one of the Directors of the strata company I do not wish to be involved in any scum. We pay too much : I am very upset that people suggested I should look for a cheaper accommodation . I purchased the villa more than 10 years ago and I do not agree with the notion that we pay more to acquire some kind of better social status ?!!
Hi Luisa
This article should be helpful:
WA: Strata manager or council of owners not acting in your best interest?
I am a unit owner in a complex of eight commercials.Recently my roller door mechanism broke and the chain cannot lift it up.Also I have a box gutter running across my factory unit that is leaking down onto the work area.
I spoke to my strata manager who said it is classed as common area and that the work would be covered by building maintenance.
I went ahead and got quotes for the work and supplied them to the manager who turned around and said that gutters and external doors are my problem now .
Could you perhaps shed some light or direction on this matter please.
Thankyou.
Totally confused now!!!!
Gutters and external doors (front door) are common property and fixed through strata.
Can our strata manager release to an owner all the other owners private details emails address etc without consent
No they can’t.I wanted to access the emails of other owners in my complex who rent their property to notify of my intent to get our strata fees reduced and was told by the strata company that emails of other owners were not disclosed.
Hi Nola
The Act does provide for a “person with a proper interest” (which would include an owner within the scheme) to apply for information or to inspect and take extracts of that information (including photograph it). Fees may apply.
[see STA 1985 s.107-109]