A LookUpStrata reader, who recently moved into a unit, wanted to know how he could get an entrenched and highly resistant executive committee to acknowledge their obligations under the new legislation, to have a 10 year plan, have it professionally costed and take immediate steps to raise the required funds to support it as well as commence overdue works?
Leanne contributed to the detailed response, which you can read here.
In summary, it is mandatory for an Owners Corporation to have a 10 year capital works fund on file and must review the plan at least every 5 years. This is a requirement under Section 80 of the Strata Schemes Management Act 2015.
There is no obligation on how much funds should be raised to the capital works fund (formerly referred to as the sinking fund) however the Act is clear in that a capital works fund must be established and amounts of contribution to the capital works fund must be determined annually.