NSW How can an OC spare lot owners, who can pay their special levies in one go, from paying the strata loan interest like those who can't pay upfront?

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lp1

Member
23 February 2021
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Situation:
  • An Owners Corporation (OC) needs to strike a huge special levies to repair the building.
  • Some of the owners can pay this special levies in one go, but others can't.
  • In order to commence any building work, the OC is considering to borrow money from a bank and repay back over a 5 years period. However, the interest rate for strata loan is 3~4 times higher than what one may get through a mortgage.
Questions:
  1. In order to commence any building work, is the OC required to have the funds in full in their trust account?
  2. Is it legally possible for the OC to spare the lot owners, who can pay their special levies in one go, from paying the heavy interest through the OC's loan? If so, how?
If not, it would be quite unfair for those lot owners, who can afford to pay their Unit Entitle (UE)-share of the special levies upfront. Just because some of the owners can't afford to pay their special levies in one go, others would have to pay extra interest? Is the current strata law that unfair?​