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What is a Special Levy?

If either the Capital Works or Administrative funds has insufficient funds, these may be raised by striking a special levy.  

 

To raise a special levy, the owners corporation must give all owners a written Notice of the proposed special levy and: 

– describe the proposed new service, shortfall, facility, upgrade, or improvement. 

– show the total amount proposed to be raised by the levy. 

– set out the amount or method of calculating the special levy needed from each owner.  

– state when the special levy will be due in one sum or by instalments. 

– explain how the owners can vote on the proposal. 

The Notice must be given to all owners. The special levy is approved if the majority of owners who are present and financial, vote in favour of the special levy. 

 

Once the special levy is paid, it can only be used the purpose it has been raised.  

How is the Strata Committee elected?

The owners corporation elects the strata committee at each annual general meeting (AGM) and decides the total number of members, which cannot be more than nine. Previous strata committee members may stand for re-election at subsequent AGMs. If a committee member resigns, the committee may choose someone to fill the vacancy until the next AGM.  

 

Two-lot schemes require at least two members (one from each property).   Schemes of more than 100 lots, must have at least three members.  

Owners can nominate one person for election for each property they own in the scheme.  As an owner of a lot you may nominate yourself, another owner or someone who doesn’t own a property. This might be a tenant or the tenant representative.  

 

The following are not eligible to serve on a strata committee:  

– the building manager   

– an agent who leases any property in the strata scheme to tenants  

– someone connected to the original owner (developer) or building manager of the scheme, unless you disclose this in writing before election  

– an owner who owes money to the scheme at the time of the AGM.  

What are the office bearing positions of the Strata Committee?

The committee selects the office bearers namely the chairperson, secretary, and treasurer.  

 

Chairperson: runs meetings and oversees administration  

 

Secretary: arranges meetings, prepares and gives out meeting agendas and minutes, updates the strata roll, issues notices, and does other administration including correspondence  

 

Treasurer: keeps accounting records and issues levy notices  

How do you remove the Strata Committee? 

The owners corporation can remove one or more members of the strata committee at a general meeting.  

Another way a committee member may be removed is through the NSW Civil and Administrative Tribunal (NCAT) if it is established the member:  

– didn’t follow NSW strata laws  

– didn’t exercise due care or diligence, or  

– engaged in serious misconduct.  

What powers does the Strata Committee have?

The type of decisions that a Strata Committee would normally make include:  

 

 – Appointing contractors such as cleaners & gardeners  

– Approval of minor renovations (those that don’t require a General Meeting approval)  

– Accepting quotes for work to the building  

– Accepting quotes for insurance  

– Reviewing the budget and making recommendations to the owners for future Strata levies  

– Review of the Financial Statements prepared by the Strata Manager  

– Compliance matters such as by-law breaches and Office of Fair Trading mediation  

– Reviewing requests from Owners and the suitability of each request  

– Investment of surplus funds into Term Deposits 

 

If a strata committee member can’t attend a meeting, subject to the approval of the committee they can choose an ‘acting’ committee member or owner to attend in their place.  

 

Can the Owners Corporation install EV Charging Stations?

Alternative energy sources are coming and it is likely Strata Committees and Owners Corporations will need to turn their minds to the installation of charging stations. Sales of electrical vehicles is on the rise and sooner or later, petrol vehicles will be a thing of the past. Driverless cars are also being tested by most of the reputable vehicle companies. 

 

If it is intended to install an EV station sometime in the future, it is a good idea to informally discuss with owners in relation to their interest for such a proposal. Assuming there is interest, contact either an electrical engineer or an experienced electrical contractor to carry out a site inspection and write a report relating to installation. Do you have the basic electrical infrastructure to support EV charging stations? The experts should also advise on the optimum space to install the charger and the type of charger most suitable to your building or you. 

 

Turn your minds to the costs of the purchase of the equipment and installation and obtain several quotes. The cheapest is not necessarily the best, and one should consider what type of charger(s) is/are required e.g., a fast charger or an overnight one. Technology is changing at an exponential speed, so it is a good idea to keep an eye on developments. Once you have an idea of the costs and have decided to proceed, these estimated costs should be a line item in your next budget. 

 

Check out the environmental and sustainability benefits. 

It’s best to take time, get professional advice and carry out your research. We wish you all the best in adapting to our fast-changing world.