strata. give loan to owner corporation.

Hi,

committee member for our strata will have a meeting about owner corporation taking loan from owners.
so what they will do is, owner can fix and maintain their property first then reimburse later from owner corporation at a later stage.
strata manager invite me to come to the meeting and there will be solicitor present.

is it good or is it bad?

has it to be agreed by all owners or committee member have such power?


thanks.
 
What is the logic behind having a loan to the BC as opposed to raising a special levy?

Will having a loan breach the Strata Act due the the BC being incapable of paying the debt? How will BC pay back the loan if its only source of income is levies?
 
What is the logic behind having a loan to the BC as opposed to raising a special levy?

Will having a loan breach the Strata Act due the the BC being incapable of paying the debt? How will BC pay back the loan if its only source of income is levies?

thanks for the response scott

currently we already having a special levy agreed for current financial year.
i think the budget does not include on what certain owner need to repair on their house.

strata manager said that bc will reimburse later, perhaps from next yearr budget.
maybe they have urgent works but cant wait for next year budget.(try to have positive thinking)
but i dont know how will they control it.

please advise....
 
You will need to consider whether this is an appropriate risk for the BC to have? It would be much safer to have another special levy to cover this expense.
 
If your strata scheme is in such dire straits for repairs to lots, they either need to special levy or look at strata finance providers.
 
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