Residential Estate Industry Journal 3 - Page 36

LEGISLATION PAGE 34 CsoSA Objectives • • • • • • To take custody of your governing documents To monitor governance and compliance To train directors, homeowners and staff To provide dispute resolution Outstanding issues that communities need clarity on 1. The issue of fiscal power to collect a levy – There is no evidence provided by the Department of Human Settlements or the To appoint and train adjudicators CSOS as to where the CSOS Act finds its To impose a levy fiscal powers to impose a levy. Levy • The Community Schemes Ombud Service Act – A summary The lesser of R 40 or 2% of the amount by which the monthly levy charged by the • scheme exceeds R 500. • • waiver. • • capped at R 40. Units with monthly scheme levies of R 500 per unit or less are entitled to a 100% All units will be entitled to a waiver of the levy on the first R 500. For units with a scheme levy of R 2 500 per unit or more, the CSOS monthly levy is The higher the monthly levy, the higher the levy contribution to CSOS, with a cap of R 40. Levies are paid quarterly. Compulsory insurance 2. The issue of a cross-subsidised levy – All over the world an ombudsman is a free service to assist parties to have a dispute heard. The CSOS is charging schemes that have a monthly levy of R 500 or more and not charging schemes with a lower levy. 3. The issue of what constitutes a levy – Schemes operate differently and apply a range of different budget line items that are included in their operational budget. There is no clarity on what is deemed to be included in a levy. 4. The issue of VAT – There are schemes that are not VAT-exempt. The question of whether the levy is VAT-inclusive or VAT-exclusive has not been answered. 5. The issue of capital expenditure and reserves “Insurable person” means any (a) scheme – There are schemes that allocate part of the executive; (b) employee or agent of a community monthly levy to a reserve [[[Y\‚[YH\۝ݙ\H[ۙ^HوB]Z\HH]H܈\][^[\ˈ\B[][]H[YN HX[Y[Y[܈  B\\]Hۈ]\HY[][ۈZ\‚۝X܋[\YYH܈\\ۈX[ۂ\[X[܈ Z[و܈[\H\X[ۈوHX[Y[˜Y[ [HܛX[\HوH[][]B[Yx&\YZ\\X\܈۝ݙ\H[ۚY\وH[][]H[YKHZ[[][H[[[وHY[]H[\[Bݙ\\]Z\Y\H[[YHوB[][]H[Yx&\[\Y[[\\\˜]H[و]\[[X[YX\[ IBH\YHو]HY][\8$[]Y\ق[Y\\H\Yۈ[\][ۘ[Y] YH]HY[X\^HZ\]Y\܈^Hݙ\H]K]\[\XH^HH]HH˂[\]][HH[YHXY\H[[™X[]H܈H]KˈH\YHوۋ\^[Y[HH[YH8$‚وH[][]H[Yx&\\][ۘ[Y]]Y[[[\H]HۈB܈]\[[[X[YX\[YH]\^HH]Hݙ\‚