What is a special levy and how is one created?
A Special Levy is often raised when there aren’t sufficient funds in either the Administrative Fund or the Sinking Fund to pay for an expense/project that has not been budgeted for.
Special levies may also need to be raised when there is a deficit of funds in the Administrative or Sinking fund.
If the owners corporation is subsequently faced with expenses it cannot at once meet from either fund, it must levy on each owner a contribution (i.e. Special Levy) to the administrative fund, which is to be determined at a general meeting of the owners corporation, in order to meet the expenses.
Examples of capital expenditure that a building may need to raise a Special Levy for include: painting of the common property, fire safety compliance, upgrading the balustrades of the building etc.
A Special Levy can only be raised at a general meeting of the Owners Corporation by an ordinary resolution (i.e. simple majority of owners which are entitled to vote in favour of the motion, eg over 50%)