Residential Estate Industry Journal 3 - Page 37

LEGISLATION PAGE 35 What if a scheme has legal difficulties or challenges the collection and payment of levies in terms of its Memorandum of Incorporation (MOI)? These questions remain unanswered. 8. The issue of a scheme’s rights in respect of passing a third-party cost on to its members – Every scheme is governed by an MOI or constitution that can only be changed via a special resolution of members. What legal powers does the CSOS have to force a majority vote to change the governing documents to include the enforcement of the CSOS levy? 9. The issue of the CSOS budget – The CSOS have advised us that their audited financials will be included in their annual report. This does not answer the question. The basis on which their budget was drafted is unknown and our questions in this regard could not be answered by the CSOS. Our view is that revenue determination is being undertaken without reference to an approved operational budget – a highly disturbing situation. 10. The issue of sectional title schemes – The critical question of CSOS levy determination for units in sectional title complexes within estates administered by homeowners’ associations remained unanswered despite having been included in submissions and raised in meetings with the service and the department. We will await the revised regulations and the outcome of the parliamentary process, after which further information will be distributed. Jeff Gilmour Association of Residential Communities thesen islands