Summary
If a Strata Company would like to improve the Common Property, and the cost is greater than $500.00 per lot then it must be approved by Special Resolution. The exception of this is if it is for Sustainability Infrastructure which is authorised via an ordinary resolution.
General Common Property Improvements
The Strata Company has a general duty to maintain and repair the common property. However, the Strata Company is not obligated to improve it over time - simply to maintain and repair it.
However, if the Strata Council or an owner wants to propose that the Strata Company make an improvement to the existing common property, they can do so by proposing a motion, and having it on the agenda for a General Meeting.
There are 2 options depending on the type of improvement being proposed, and the cost of the improvement being proposed.
Sustainability Infrastructure
If the Strata Company want to install sustainability infrastructure - such as solar panels - onto common property, the approval for the upgrade and expenditure can be granted through a Simple Resolution. The budget will be amended accordingly, and obviously funding will also need to be determined at the meeting.
Sustainability infrastructure means infrastructure that is designed or is likely to avoid, remedy, or mitigate adverse effects on the environment. Examples are:
- LED lighting upgrades & lighting sensors
- energy saving controls for fans and pumps
- water & energy meters and monitoring
- solar panels
- installation of bike racks or clotheslines
- increasing the green spaces i.e. gardens, veggie patch
- wastewater recycling
- rainwater tanks
All Other Improvements
Strata Companies can propose any other type of improvement to common property - such as a BBQ area, pool installation, etc. When this proposal is being put on the agenda, the cost of the Improvement will dictate what level of approval will be required at the General Meeting.
If the improvement costs more then $500 per lot (or any other amount dictated in the Regulations), then the Strata Company will need to put forward this expenditure proposal as a Special Resolution.
If the improvement costs less then $500 per lot, then the Strata Company can approve the upgrade via a Simple Resolution.
Keeping in mind that in both cases, the Strata Company should be suggesting an appropriate funding proposal at the same Meeting.
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