OC Stationery and Admin Costs passed onto Lot Owner

Hi Jimmy

I am in NSW in a small scheme of 14 Lots. I have been reviewing our by-laws and am again concerned about a few more registered by-laws. Some of our by-laws have a differentiated cost plan – that is if you are an investor and need the Fire Safety Compliance Certificate you are charged $55;  If I choose to receive communication via any other means other than email, they are charging $20 (including AGM/EGM notices). I thought the decision how to receive information form the OC was the decision of the lot owner (s22 (2d)). There used to be a 95yr old lady in the complex – I doubt she wanted to use email to receive anything!

Some of the other by-laws below are a real scream – the OC will charge you ‘for additional management operations that have occurred due to the activities or behaviour of an owner/s or tenant/s of a lot within the scheme’. Any and all Administration Costs that the strata manager has charged the Owners Corporation will be charged back to the Lot Owner – including preparation and service of By-Law Breach Notice. Seems that this rogue little committee I now find myself on has decided to operate as a pseudo NCAT!

I approached the strata manager – his response was its the by-law so they can do it. I’ve been told I can ask the Strata Committee for exemption, but he just keeps saying its a by-law and when I’ve pointed a few things out (like the previous bizarre by-laws that move all OC costs to the Lot Owner), he says ‘I’m not a lawyer’.

These by-laws again look like a huge ove-reach of interpretation. I think the SC think they can issue a Notice to Comply (but they call if a By-Law Breach notice), make a decision to ‘fine you’ and then add it to your next levy – that is what I believe has been happening – if you don’t pay for the supposed breach. a debt notice is issued for recovery of monies – completely by-passing NCAT!

The by-law is below.

Recovery of Administrative Costs Registration

The intention of this By-law is to provide the Owners Corporation with a fair and equitable mechanism to recover the costs of reasonable administrative charges incurred by the Owners Corporation for additional management operations that have occurred due to the activities or behaviour of an owner/s or tenant/s of a lot within the scheme.
Examples include, but are not limited to, additional expenses incurred for remedying By- law breaches, damaged caused to common property as a result of moving furniture, damaged caused to common property as a result of refusing to allow access to a lot, fines or call out fees imposed by the NSW Fire brigades due to false alarms, costs of removing abandoned goods.
Definitions

Terms used in this By-law which are defined in the Strata Schemes Management Act 2015 have the same meaning given to them in that Act
The following terms are defined to mean:

‘Administrative Cost’ means the costs incurred by the Owners Corporation imposed by the Owners Corporations Agents, other authorities or increases in insurance premiums.

‘Owners Corporations Agents’ means the Strata Managing Agent, Strata Committee or any contractor, consultant, legal counsel or other personnel engaged by the Owners Corporation.

‘the Act’ means the Strata Schemes Management Act 2015

‘Other Authorities’ includes but is not limited to any government or statutory authority such as the NSW Fire Brigades, Local Council or Work Cover.

‘Increases in Insurance Premiums’ means increases in the Owners Corporations building insurance or public liability premiums

‘Activities or Behaviour’ includes but is not limited to, breaching the Owners Corporations By-laws, damaging common property, refusing access to the lot to allow an inspection of fire services and window locks, excessive or inordinate contact with the Owners Corporations agents which incurs a fee.

Rights and Obligation of Owners

A lot owner shall be liable to compensate the Owners Corporation for the Administrative Costs charged to the Owners Corporation by the Owners Corporations Agents, other authorities or increases in insurance premiums to the activities or behaviour of owner/s or tenants;
A lot owner must take all reasonable steps to ensure that any occupier of their lot/s complies with all by-laws;

This By-law applies equally to the behaviour and activities of owners and tenants (and visitors to each) and where a lot has been leased, the lot owner shall be responsible for the behaviour of their tenants;

Where an administrative cost has been applied pursuant to this By-law, a lot owner may apply to the Owners Corporation that the administrative fee be reduced or waived.
In the event the Owners Corporation rejects a request made by a lot owner pursuant to sub-clause B)(iv) above, all charges imposed by this By-law shall stand.

Rights, Powers and Obligations of the Owners Corporation

The Owners Corporation shall have the following additional powers, authorities, duties, functions and obligations;
The Owners Corporation must not impose a fee or seek compensation from a lot owner unless the proposed fee has been approved by the Strata Committee or Owners Corporation;

The Owners Corporation shall have the power to recover all costs outlined in clause B) above from a lot owner as a debt by way of a levy charged to the lot;

The Owners Corporation must serve upon the owner a written notice of the contribution payable;
The Owners Corporation may charge interest upon any contribution payable under this By-Law pursuant to section 85 of the Act;
The Owners Corporation may initiate debt recovery proceedings for any contribution payable under this By-Law pursuant to section 86 of the Act.

Recovery of Stationery Expenses Registration

Intention

The intention of this By-law is to provide the Owners Corporation with a fair and equitable mechanism to recover the costs of reasonable stationery expenses incurred by the Owners Corporation for the distribution of serving notices on lot owners via post or other non-electronic means.
The Owners Corporation recognise that the Strata Schemes Management Act 2015 enables the Owners Corporation to issue notices to owners and tenants via email and that this medium of communication is far more cost effective and environmentally friendly than non-electronic means.

Definitions

Terms used in this By-law which are defined in the Strata Schemes Management Act 2015 have the same meaning given to them in that Act
The following terms are defined to mean:

‘Stationery Expense’ means the costs incurred by the Owners Corporation for serving documents on lot owners by

post or other non-electronic means;

‘Administrative Fee’ means an amount of $20.00 per quarter (or other such amounts that may be determined by the Owners Corporation or Strata Committee from time to time acting reasonably) commensurate with administrative costs charged to the Owners Corporation

‘New Owners’ mean any owner/s that purchases a lot in the scheme after the date this By-law is registered. ‘Notice’ means any written correspondence that is issued by the Owners Corporation by post or other non- electronic means

‘the Act’ means the Strata Schemes Management Act 2015

Rights and Obligation of Owners

Where a lot owner has not provided the Owners Corporation with an email address for the service of notices as prescribed by the Act, the Owners Corporation may impose upon that lot owner an Administrative fee for reimbursement of serving documents via post or other non-electronic means.
A lot owner has 6 months from the date this By-law is passed to register an email address for the service of notices before the Owners Corporation is entitled to charge an administrative fee.

In the case of ‘new owners’, they shall have 3 months from the date the Owners Corporation is furnished with a Section 22 notice pursuant to the Act before the Owners Corporation is entitled charge an administrative fee

Where an administrative fee has been applied pursuant to this By-law, a lot owner may apply to the Owners Corporation or Strata Committee that the Administrative fee be reduced or waived.
In the event the Owners Corporation rejects a request made by a lot owner pursuant to sub-clause B)(iv) above, all charges imposed by this By-law shall stand.

Rights, Powers and Obligations of the Owners Corporation

The Owners Corporation shall have the following additional powers, authorities, duties, functions and obligations;
The Owners Corporation shall have the power to recover all costs outlined in clause B) above from a lot owner as a debt by way of a levy charged to the lot;

The Owners Corporation must serve upon the owner a written notice of the contribution payable;

The Owners Corporation may charge interest upon any contribution payable under this By-Law pursuant to section 85 of the Act;
The Owners Corporation may initiate debt recovery proceedings for any contribution payable under this By-Law pursuant to section 86 of the Act;

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