Different charges raised differently

Our Trustees have proposed to have the security levy split equally between all sections and the normal levy to be raised per PQ. The Chairperson heard of a scheme where the special levies were split equally between all sections. Is there a legal way of doing this?

The STSM Act states the following about contributions (levies):

Section 3
  1. (1) A body corporate must perform the functions entrusted to it by or under this Act or the rules, and such functions include—
(a) to establish and maintain an administrative fund which is reasonably sufficient to cover the estimated annual operating costs— (b)to establish and maintain a reserve fund in such amounts as are reasonably sufficient to cover the cost of future maintenance and repair of common property but not less than such amounts as may be prescribed by the Minister; (c) to require the owners, whenever necessary, to make contributions to such funds: Provided that the body corporate must require the owners of sections entitled to the right to the exclusive use of a part or parts of the common property, whether or not such right is registered or conferred by rules, to make such additional contribution to the funds as is estimated necessary to defray the costs of rates and taxes, insurance and maintenance in respect of any such part or parts, including the provision of electricity and water, unless in terms of the rules the owners concerned are responsible for such costs; (e) to determine the amounts to be raised for the purposes of paragraphs (a), (b) and (c); (f) to raise the amounts so determined by levying contributions on the owners in proportion to the quotas of their respective sections;

The STSM Act also states the following:

Section 11
  1. (1) Subject to subsection (2), the quota of a section must determine—
  • the value of the vote of the owner of the section, in any case where the vote is to be reckoned in value;
  • the undivided share in the common property of the owner of the section; and
  • subject to section 3(1)(b), the proportion in which the owner of the section must make contributions for the purposes of section 3(1)(a) or may in terms of section 14(1) be held liable for the payment of a judgement debt of the body corporate of which he or she is a member. 
(2) (a) Subject to section 3(1)(b), the developer may, when submitting an application for the opening of a sectional title register in terms of the Sectional Titles Act, or the members of the body corporate may by special resolution, make rules under section 10 by which a different value is attached to the vote of the owner of any section, or the liability of the owner of any section to make contribution for the purposes of section 3(1)(a) or 14(1) is modified.  (b) Where an owner is adversely affected by such a decision of the body corporate, his or her prior written consent must be obtained.

I always held the opinion that should the PQ be changed to nominated values as per Section 11(2)(a) then that would affect everything – the value of the vote; and all levies and recoveries.

In a recent debate with some industry experts I was convinced that it is possible to have more than one set of nominated values for different things.  In other words – it is possible to have your security levy raised equally between all sections and your admin fund levy raised on PQ.  The Body Corporate only need to pass a special resolution to create these different nominated value schedules – to put them in the Conduct rules is also possible.  As Managing Agents we will then have to keep track of what needs to be calculated per which schedule.