How to manage strata finances if levies dry up

Thanks Scottie and Jimmy. I live in a block that has no garden, no pool, a new lift, and has a healthy Capital Works fund. Currently, there are no special levies being paid.

I pay $1700 a quarter in strata levies, which I think is already an exorbitant amount. Each day, I get emails from companies telling me they are taking the coronavirus into consideration and not charging me eg unlimited wifi, extended bundles on cable TV, no membership fees, no hikes in health fund fees etc etc.

We all need help in these troublesome financial times. And that includes Strata Land!

As Jimmy has set out, it’s not that simple. We have one owner who wants a six month levy holiday to be applied across the board, that is just not feasible – I am not sure what they think will happen if urgent works are required.

The levies are determined at the AGM, by reference to the budget, i.e. the projected outgoings for the year. So for example if the OC knows that its projected expenses over the coming year are going to be $10K, it can’t say we we will only raise $5K.

Mixed into that is the OC’s overall obligation to maintain the common property – if you don’t have enough money for that then you are in breach of the Act.

One thing you can do is call a general meeting and ask the owners to agree to a payment plan for your payment of levies, this would give you a degree of certainty and mean that while you still owe the money you won’t pay interest or be subject to recovery action.

In answer to your question – you can hold a general meeting or vote on a resolution by electronic or other means if the owners vote to adopt that method.