Body Corporate inside an HOA

Our Body Corporate is situated inside a Homeowners Association. The HOA is expecting us all to pay an HOA levy to them – how does that work?

It is not unusual in big estates to have complexes situated inside the estate – you will have the Master HOA and can find separate sectional title complexes situated inside the perimeter of the HOA.  The MOI / Constitution of the HOA will determine if the Sectional title owners will be individual members of the HOA or if the Body Corporate will be the member.  Membership voting and levies normally goes hand in hand.

Where the Body Corporate is the member the Body Corporate will normally pay one levy to the HOA and where the unit owners in the Body Corporate are each defined to be members of the HOA they will generally each have to pay a levy to the HOA.  This is defined in the MOI / Constitution of the HOA.

In this example below where there is a Body Corporate situated inside the HOA the BC will be the member and not the individual unit owners.

In the following example from an MOI a unit is defined as either an erf or a Sectional title unit so the owners of sectional title units inside the estate will be individually members of the HOA :

Should the BC be the member then the BC should only pay 1 HOA levy and have 1 vote at an HOA meeting.  Should the individual owners of the BC be members of the HOA individually they should each pay an HOA levy and each have a vote at the HOA meetings.