And the most common reason for a special levy is…. perhaps not what you would think.
We’ve all heard about a strata plan that has raised a special levy to pay for unexpected expenses such as roof replacement or building defect repairs. That’s never fun, however the most common reason we wholesale NFL jerseys see for a special levy is something a little more mundane; to simply repay a deficit in the administrative fund.
Special levies fit firmly into the less glamorous side of strata living. No one likes unexpected expenses and being part of a strata plan, if the majority of owners decide to raise one all FOR owners have to pay whether they agree or not.
A deficit in the administrative fund can occur when actual administrative fund expenses are higher than budgeted or when owners are in arrears creating a cash flow problem.
In the short term an owners corporation can borrow money from the sinking fund to cover the deficit. Under strata law this is allowed however technically the loan has to be repaid within 3 months. In wholesale NBA jerseys these situations an owners corporation has several options including;
Do nothing (i and potentially go further into DEL deficit
Increase the administrative fund budget at the next annual general meeting to repay the deficit The over a period of time.
Repay the deficit in Intergeo a once off special levy
In short special levies are used to cover unexpected expenses of an owners corporation or when they simply don’t have enough money to pay the bills. Whilst a visual inspection of a property might highlight to a purchaser potential upcoming expenses the most common wholesale MLB jerseys special levy reason highlights the importance of checking the records as well.
Relevant legislation extract;
Section 76 of ????? the Strata Schemes Management Act 1996
Owners corporation to set levy for contributions to administrative and sinking funds
(4) If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner a contribution to the administrative fund, determined at a general meeting of the owners corporation, in order to meet the expenses.