Strata Act Reform
The Lego Land of Strata
HFM’s General Manager of Technical Services, David Chokolich, was the keynote speaker at the recent Strata Communities Australia (WA) workshop; “The Lego Land of Strata”.
David’s presentation centred specifically on two of the key proposed changes to the Strata Act:
- Documents for a Scheme
- Reserve Fund Plan
These make up 2 of the approximate 27 changes currently proposed by Landgate, who has been tasked with the management of the reform process by the Western Australian Government.
Documents for a Scheme
The draft bill sets out that the original proprietor of a scheme must take all reasonable steps to acquire and deliver the scheme documents to the strata company at the first AGM [s27C]. The reasoning for this is that key documents are required for the operation of a scheme and if they are not supplied, it can cause great difficulty and expense for the strata company.
Some of these documents include
- Development Approvals
- Building Permit
- Practical Completion Certificates
- Defects Lists
- Fire Engineering Report
- Operating and Maintenance Manuals
- Asset Registers
- Maintenance Contracts
- As Constructed Documentation:
Reserve Fund Plan
The draft bill stipulates that any schemes with greater than 10 lots (or less if they are of significant value) will be required to prepare a Reserve Fund Plan every 5 years. It will also be a requirement to present the reserve fund plan at each AGM.
David’s presentation stepped the audience through the process of preparing a Reserve Fund Plan. At HFM Asset Management, we can assist with the major components of these plans for our clients; commencing with the Asset register and then undertaking a condition audit and life cycle costing assessment.