1. Home

tracer

Forum Replies Created

Viewing 4 replies - 16 through 19 (of 19 total)
1 2
  • Author
    Replies
  • 18/01/2012 at 3:03 pm in reply to: Confusion #14550
    tracer

      Hi Gilgal1 – thanks for your reply.The issue here is not the purpose of the money, but the method of raising it. We live in a building which has been neglected for years. Our EC is stacked and have a record of running the place very poorly.

      In these circumstances, surely it is preferable and appropriate to increase levies to the sinking fund, rather than attend to capital expenditure by way of ' just a one-off, never to be repeated' special levy. This would ease the burden on owners by staggering payments. At the last AGM owners overwhelmingly voted to commission a structural engineers report (not proposed by the EC) and tenders so we know what's ahead of us.

      The reference to fraud was a touch emotional, however the EC reasoning is that potential purchasers would be put off if future standard levies were high, however are likely to forget a 'one-off' payment Confused  

      29/04/2011 at 11:55 am in reply to: Special Levies #12726
      tracer

        Sorry to keep on about our tawdry affairs; but we do have a problem regarding gross abuses of owners rights. To update:

        1. It has been over 2 weeks since our AGM concluded; and no minutes have been received by owners.

        2. Fair Trading advise that the 'conversion' of a large special levy into a one year contribution to the sinking fund is at least improper, and likely illegal. Especially as there were already adequate funds to pay for the intended works. In addition there was no motion on the agenda dealing with this.

        3. Despite the lack of minutes owners have been issued with levy notices (up 70% on the usual). Tears are beginning to flow.

        Do strata managers have any responsibility at all in ensuring that meetings are conducted and reported properly? Are owners fair game for any mugger that comes along?

        Would really appreciate any suggestions.  Confused 

        18/04/2011 at 1:18 pm in reply to: Special Levies #12683
        tracer
          JimmyT said:

          What can be done is that you can alert all owners to the fact that their money is being wasted.

          Somewhere at the back of my mind there's a thought that you will also be taxed on the excess in the sinking fund.  Since it's not ussed or allocated to projects that haven't been contracted out, I think the Tax Office considers it a profit and will tax you accordingly.

          Don't quote me on that without checking with your strata manager but if it's true, then you'll be hit with a double whammy – an unnecessary special levy and then a tax on the excess.

          Get a hold of your strata roll and write to or call every owner personally and tell them (in as unemotive language as possible) what the problem is and why they need to vote against this.

           

          Thanks, Jimmy T – will do. Unfortunately the vote has been taken, and I don't think owners were aware of the implications. At the meeting the strata manager played dumb when queried about the legality of converting a special levy into a temporary increase in the sinking fund contributions even though the costs were already covered.

          18/04/2011 at 10:35 am in reply to: Special Levies #12679
          tracer
             struggler said:

            When you say you have sufficient funds, does that mean to pay for the works and have enough money left in the bank to cover other incidentals? 

            Our complex has discussed previously that, should we need any major works, we would take some of the money out of the fund and organise a spec\\\\

            tracer:

            Yes , there is already enough in the sinking fund to cover the intended works. In addition, one owner went to a lot of effort in preparing an alternative 10 year sinking fund plan together with the same quantity surveyor used by the OC – the quantity surveyor confirmed this new plan as feasible and much less onerous on owners.

            Our major objection is 'converting' a one off special levy (as stated in the agenda) into a short term sinking fund 'contribution'.

            Surely this is taking a lend of owners – especially as NSW legislation states that monies standing to the credit of the sinking fund should be utilised.

            As a result, owners are effectively paying twice – due to, at best, bungling by our EC.

            Not sure if anything can be done to rectify a ridiculous situation!
          • Author
            Replies
          Viewing 4 replies - 16 through 19 (of 19 total)
          1 2