The Trustees of our Body Corporate are proposing a 12% increase in the monthly levies – to be approved as part of the budget at our upcoming AGM. One of the owners – who knows about these things – pointed out that the levies may only be increased by a maximum of 10% in terms of the STSM Act. Is this true?
Your clever owner is only halfway correct.
The STSM Act allows for the Trustees – at the financial yearend – to increase the levies by a maximum of 10% – without having to consult the owners.
PMR 21
(3) The body corporate may, on the authority of a written trustee resolution—
- increase the contributions due by the members by a maximum of 10 per cent at the end of a financial year to take account of the anticipated increased liabilities of the body corporate, which increase will remain effective until members receive notice of the contributions due by them for the next financial year; provided that the trustees must give members notice of such increased contributions by notice in terms of rule 25, with such changes as are required by the context;
There is however no limit on the increase that the owners can approve at a general meeting. So if needed to cover the expenses the owners at a general meeting have the right to increase the levies by 12%