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QNA Does the committee has a power to reduce an OC’s levy contribution?

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Question: A landlord has suffered loss of rent due to repairs to common property. Does the OCC have the power to reduce that lot’s levies by the amount of the lost rent?

Could an OCC pass a motion in favour of reducing a particular lot owner’s levy for a fixed period?
Authorised works are being conducted on a lot owner’s property. The works have resulted in loss of rental to the landlord. The landlord is looking for the OC fees to be reduced by the amount of the lost rent.
Does the OCC have the power to reduce the levy or would an Extraordinary General Meeting be required?

Answer: The committee does not have a legal power to reduce an owner’s levy contribution

In Victoria, the committee does not have a legal power to reduce an owner’s levy contribution.

That said, it is lawful for the committee to pass a resolution that the OC would provide a credit to the owner’s account as a result of the circumstances described, being loss suffered by the owner caused by the OC to the owner’s property. Alternatively, the committee could decide to pay the owner cash for the loss the owner has suffered.

Rochelle Castro
RC & Co Lawyers

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