NSW: Q&A Foyer Christmas Decorations Purchased by Strata Funds

Question: We have discussed putting up some foyer Christmas decorations. Some residents have voiced their concerns about strata funds paying for the cost of acquiring the seasonal decorations.

Out strata has an uninteresting entry foyer that would benefit from some visual enhancement. Hanging some artwork on the blank walls would make both residents and visitors entrance and exit far more appealing.

This time of year, a Christmas tree and some festive decorations would also enhance everyone’s enjoyment of our property, and so I propose some foyer Christmas decorations.

Some residents have voiced their concerns about strata funds paying for the cost of acquiring artwork or Christmas decorations.

Answer: We recommend you obtain an empowering by-law permitting the owners corporation to purchase artwork and foyer Christmas decorations.

While an owners corporation may acquire “personal property” (which is what foyer Christmas decorations would be) because the acquisition is not for the maintenance and keeping of the common property in a state of good and serviceable repair but rather for the “enhancement” of the common property, unfortunately, in our view, a special resolution (by-law) would first be required.

So, while the decorations and artwork cannot be paid for this year in time for Christmas, we recommend you obtain an empowering by-law permitting the owners corporation to purchase artwork and foyer Christmas decorations, and then pass a resolution to acquire same.

Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.