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