Background

The amendments to the Act in May 2020 required owners within designated schemes to have a 10-year maintenance plan carried out and then subsequently updated at 5-yearly intervals. 

For some schemes with healthy reserve funds, the need to raise additional funds is not too onerous, but for those in poorly maintained schemes, they could be confronted with either a big increase in reserve fund levies or special levies, so that documented maintenance items are addressed and rectified. 

An alternative option for owners is to consider is a Strata Loan. This can be a great option for the following reasons

• the work can be carried out immediately without the need to save (locking in today's prices)
• the current owners in the scheme pay the cost of the works which they benefit from
• funds can be drawn as work is carried out in stages