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  • #10219
    tiny
    Flatchatter

      I live in a building with 4 lot owners. We all have equal lot entitlements. The floor space of the units internally is the same.

      The only difference is there are 3 units with a lock up garage; the 4th unit (me) does not have a garage- I have a car space allotted on the driveway.

      One of the owners has proposed new garage doors and wants to raise a special levy that we all pay equally. Another owner initially suggested I be exempt from paying for the garage doors.

      Is there a way I can be exempt from paying for this or challenge paying given I do not have a garage?  

    Viewing 5 replies - 1 through 5 (of 5 total)
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    • #24144
      Jimmy-T
      Keymaster

        My first instinct is to ask how come your UEs are the same when three people have a lock-up garage and the fourth doesn’t.  Sounds like whoever created the original plan bothced it,

        That aside, there is no way you should be paying for the new garage doors, the question is how to get around it.

        One way would be for your Owners Corp to pass a by-law saying that all owners with garage doors are individually responsible for their repair and maintenance (with conditions attached, such as appearance, etc). This would pas at a general meeting even if the fourth owner objects as special resolution require that no more than 25 percent of votes (unit entitlements) vote against it.  Creating a by-law would, however, cost a little money. 

        Another option would be for the owners collectively to make an application to the Tribunal  (NCAT) under Section 145 of the Act for a variation of the payments of levies (in this case, a special levy).

        If you meet with any resistance to either of these plans, you could launch an action under section 145 yourself or, if you wanted to get really heavy, say you are going for a Section 183 reassessment of Unit Entitlements.  However, that might be more trouble and cost than it’s worth.  

        Having said that, if the value of your apartment is wildly different from all or any of the others, it’s something you should consider. And if so, your next call should probably be to an experienced strata lawyer.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #24147
        Whale
        Flatchatter

          tiny – I don’t entirely agree, primarily because you are the fourth owner whose Lot has the possibly incorrect units of entitlement, and so any resolution such as one for the Owners Corporation not to maintain / replace items of its common property such as the garage doors would fail so long as the other three owners vote as a block.

          Secondly, I don’t agree that you shouldn’t be required to contribute (via your levies) to replace an item of the common property just because you don’t personally benefit from that activity, as in addition to the proposed garage door replacement, there would be many other scenarios where you may benefit by such activities and the other owners may not to the same extent if at all.

          The replacement of the roof guttering or of a faulty window above/in your Lot are but two examples that come to mind, so in this and that broader context I don’t agree that you can or should be exempted from contributing to the replacement of the garage doors just because your Lot doesn’t have one.

          That’s not to say that you shouldn’t adopt Jimmy’s suggestion to seek Orders to have the units of entitlement of your Plan reallocated under Sect 183(2), as it does seem on the basis of the information provided that the original (equal) allocation was in error.

          I think that the matter raised in your other post goes more to the core issue here, where the Owners Corporation refuses to set owners’ levy contributions in accordance with the Strata Schemes Management Act so that those are properly reflective of actual and expected expenditures for in the case of the Administrative Fund property insurance and recurrent expenses, and in the case of the Sinking Fund for capital expenses such as renewing / replacing common property items such as those garage doors.

          The Special Levy that you mention here has been proposed for the garage doors has to be agreed to by a majority vote at a General Meeting of the Owners Corporation (e.g. and AGM), so that’s really putting the proverbial cart before the horse as that same Meeting MUST include a Motion to set realistic levies for the Administrative and Sinking Funds that must “…. take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments” (ref: Sect 75) and in the case of the latter, as Jimmy mentioned a 10 year (forward estimates) Plan.

          I’m assuming that whilst the replacement of the garage doors may be somebody’s good idea, it’s likely not critical, and so I’d be advising the other owners and your Strata Manager (if you have one) in writing, that the proposed Special Levy won’t be necessary as the proposed expense has, at the next AGM, to be incorporated into the next budget estimate for the Sinking Fund as a planned renewal/replacement of an item of common property, and that whilst they’re at it, that Meeting needs to also prepare a proper budget estimate for the Administrative Fund and that 10 year Sinking Fund Plan so as to ensure that your Plan’s overall deficit of funds can be addressed.

          If the other Owners have other ideas, then please come back for more (and possibly heavier) options to address the issues.

          #24148
          Sir Humphrey
          Strataguru

            Are the three carports shown as parts of three of the lots? Is the fourth lot shown as having a parking space on the driveway, but not a carport? 

            I suggest that a general meeting could resolve that unit owners may install garage doors within their lots at their own expense subject to (some sensible conditions such as their style or colour or whatever matters in the context) and subject to agreeing to be responsible for their repair and maintenance.

            If the fourth lot could have a carport constructed over its space, perhaps the resolution could also grant permission for that unit to construct a carport (at its own expense, responsible for repair and maintenance etc). 

            If each unit owner would be just doing something at their own expense, within their unit, with permission, then the money need not go via the OC accounts. 

            However, if the 4 parking spaces are not parts the unit/lot areas and instead are common property, then perhaps nobody has a valid claim over the covered spaces. If that is the case, perhaps the OC should look into validly creating and allocating covered parking for all units?

            #24149
            Jimmy-T
            Keymaster

              Normally I would agree with Whale that everyone should pay their share of levies related to common property expenses, regardless of whether they use them.  However, that assumes that each lot’s Unit Entitlements have been calculated to roughly reflect the value of the lot, including facilities and shared access to usable common property (or not).

              In this case, they haven’t.  Everyone pays the same levies, regardless of whether or not they have a garage.  So, while Whale is right to say that everybody should pay their share, the shares have been divided unfairly to begin with and I believe the lot owner is entitled to find a way to even up the burden (as the Act allows).

              My suggestion that owners should make a Section 145 application to remove the financial burden of a special levy presumes that at least two of the three other owners agree.  This would be my preferred option as a pragmatic response to this dilemma – the final arbiter on this would be an NCAT adjudicator who would at least be independent.  If not, tiny could go it alone.

              Everything Whale wrote about sorting out the sinking fund and other finances first, and the garage doors later, is spot on.  But it sounds like none of the other three are interested in paying more in general levies so it could require a lot of horse-trading to get the scheme’s finances on an even keel.

              Peter C’s comments have made me wonder if the garages are part of the lots or allocated common property.  If it is the former, you might have an argument for saying the garage doors are the individual lot owners responsibility (although I’m not sure if that would stand up to a challenge in the Tribunal). 

              The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
              #24218
              tiny
              Flatchatter
              Chat-starter

                thanks everyone for the feedback and input.

                I’ll start with the approach of pushing the need for setting realistic levies for the Administrative and Sinking Funds that must “…. take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments” (ref: Sect 75) and in the case of the latter, as Jimmy mentioned a 10 year (forward estimates) Plan.

                I’ll also ask for a review of Lot entitlements as the garages are on the title of Lots 2, 3 and 4, and mine has the car space only (the other 3 lots also make use of the equivalent space in front of their garages anyway).

                I’ll also try and get them to arrange and pay for their own garage doors.

                 

                I’ll let you know how I go.

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