July 3, 2020 at 3:27 pm #232315GoodDeedsMember
When the admin fund is in deficit, how long before this must be rectified?July 4, 2020 at 7:53 am #232380Amanda FarmerExpert
There is no law in NSW that requires an Owners Corporation to run its funds in the black.
It’s common for us to see buildings run either one of their funds in deficit for some time, which really means the money from the other fund is being used to meet expenses (in practice, there is a single bank account. The separate accounting is ‘on paper’ only). Reena mentioned this on episode 218 of the podcast.
In that case, the time frame that would be relevant is that set out in section 76: where money from one fund is used to pay expenses of the other, the money is supposed to be reimbursed to the correct fund within 3 months (this has been extended to 6 months by Regulation 73, being a temporary COVID extension).
As Reena says in the episode above, her experience as a strata manager is that this reimbursement almost never happens! But if you need some law to cite to someone, that’s it.
Amanda.July 6, 2020 at 5:12 pm #232523GoodDeedsMember
Thanks for clarifying Amanda!
- You must be logged in to reply to this topic.
(02) 8262 6100
0410 488 802