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Stabroek News



Shortcomings of the Strata Act
published: Friday | October 3, 2008

THE EDITOR, Sir:

I live in an apartment complex which falls under the Strata Plan Act, having bought the apartment some 22 years ago.

Recently, we were without light or power for nine weeks, because the Strata Plan owed the Jamaica Public Service $1.8 million and the company, understandably, disconnected the supply.

Regrettably, the plan does not have individual meters for each apartment, so we had to learn to live as our ancestors did before Thomas Edison invented the light bulb in 1878.

The reason the indebtedness reached this level was because the management committee was negligent in its responsibilities. However, more important, there are three or four owners who do not pay their maintenance on time. One owner owes $500,000 and has not paid for years.

A Strata Plan bases its maintenance regime on a forecast of the next year's expenses divided on the entitlement basis for each apartment. The plan has no other source of income and, if even one owner does not pay, then there is a shortfall.

The gravamen of the problem is that the Strata Law does not permit for any meaningful and realistic action to be taken against an owner who does not pay their maintenance on time. There is no way of effectively collecting the maintenance. There is only moral persuasion which can be used, and this is ineffectual where persons do not accept their responsibilities.

Antagonistic attitude

Some owners seem to regard themselves as 'tenants' of the Strata Plan and adopt an antagonistic attitude, rather than recognising that they are in a cooperative and must make common cause with all the other owners.

I know that many of the Strata Plans have similar problems and when a Strata does have the funds to retain an attorney and take the long and tedious route of going to court, which may take two years or more, provided the bailiff can eventually 'find' the delinquent owner, the court will not allow the attorney's fee nor the collection fee to be added, so they must be absorbed as a part of the overall maintenance. Hence, the Strata is short of these funds.

The Strata Plan Act needs to be amended to provide for a severe penalty to be imposed on owners who do not pay on time. It is only in this way that we will get to understand the reality of a co-operative undertaking.

If maintenance is not paid on time, there should be a penalty, after one month, of 20 per cent of the monthly maintenance, added for each month, and until the obligation is paid in full.

I am, etc.,

WILLIAM G. WHITING

billwhiting@hotmail.com

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