Special fees

[huawei]

Hi

 

can anybody point me to the reference in the condominium act that allows “ special assessment” fees above and beyond the normal cam fees if a significant repair needs to be undertaken. 

 

Thanks.

[huawei]

Follow up question. If a committee members refuses to pay these additional fees is he still eligible to be a committee member, or if he is eligible , can he still vote in the meetings?

[Delight]

 It is not specified directly.

However the Act does give authority to the JPM to make decisions to protect the property. To protect the building against serious decline.

This is the work around.

To satisfy the land office -these increases are typically limited to 3 years.

In my building an 8 baht/m/month special  assessment was introduced back in 2010. It had a 3 year life.

Every 3 years it is re -introduced.

A 7 baht/M/month was introduced shortly afer the 8

It has the title -Sinking Fund special assessment.

Both will go on forever.

The building would be in serious trouble with out these measures.

 

 

Edited May 4, 2019 by Delight
additional info.

[Delight]

There is no connection between committee membership and late payment

I attach 3 jpegs

[lkn]

10 hours ago, Delight said:

However the Act does give authority to the JPM to make decisions to protect the property. To protect the building against serious decline.

It also makes it clear that co-owners must pay for common expenses based on their ratio of ownership.

 

Therefore if co-owners decide to put zero baht as common fee in their bylaws, I would argue that the condominium corporate can still collect money from them, but it must be based on actual expenses.

 

As a budget is passed on the AGM, that would show the expected expenses, as agreed to by the co-owners, and could form the basis of collecting these money, possibly as a “special fee”, as seems to be the case in many buildings.

 

But I would further argue that technically such fee should/could only be set/collected for one year at a time.

 

I don’t know if the Land Office is pragmatic in allowing it to be set for 3 years, but I could certainly see a problem if you introduce new long-lasting fees regularly, you would basically have to read through all meeting minutes from all past AGMs to figure out what the effective management fee is.

[Delight]

1 hour ago, lkn said:

It also makes it clear that co-owners must pay for common expenses based on their ratio of ownership.

 

Therefore if co-owners decide to put zero baht as common fee in their bylaws, I would argue that the condominium corporate can still collect money from them, but it must be based on actual expenses.

 

As a budget is passed on the AGM, that would show the expected expenses, as agreed to by the co-owners, and could form the basis of collecting these money, possibly as a “special fee”, as seems to be the case in many buildings.

 

But I would further argue that technically such fee should/could only be set/collected for one year at a time.

 

I don’t know if the Land Office is pragmatic in allowing it to be set for 3 years, but I could certainly see a problem if you introduce new long-lasting fees regularly, you would basically have to read through all meeting minutes from all past AGMs to figure out what the effective management fee is.

 I like your idea of having a vote on a 'Special assessment' on an annual basis. As I stated earlier in my building it has been every 3 since 2010

 One year it was forgotten. That took a chunk out of cash reserves.

Annual becomes habit.

If you have a management company then cost of management will be itemised.

As will everything else.

Raising more money is one thing. Justifying the increase is something else.

[KittenKong]

3 hours ago, lkn said:

But I would further argue that technically such fee should/could only be set/collected for one year at a time.

This is how it happens in every building that I have been connected with. The amount is decided by the committee (or whatever passes for a committee) each year according to the budget (or whatever passes for a budget), and voted on by co-owners.

 

I dont think that setting the figure for more than one year would be either legal or desirable, unless perhaps it was to cover a large payment for a major item like elevator replacement that was being spread over x years.

[huawei]

Thanks, to all who have taken time to respond. It has helped.

[lkn]

9 hours ago, Delight said:

One year it was forgotten. That took a chunk out of cash reserves.

Annual becomes habit

Presumably you also approve budget year-by-year.

 

Actually curious, the year you forgot to vote on special assessment fee, didn’t the budget show it as part of the income?

 

The Land Office though only require meeting minutes (they do not care about the actual budget passed), but we always put in the meeting minutes the amount co-owners are supposed to pay (according to budget) and the expected profit/loss for the year.

[Delight]

10 minutes ago, lkn said:

 

 

Actually curious, the year you forgot to vote on special assessment fee, didn’t the budget show it as part of the income?

 

 

 The accounts at the end of that year showed a loss. The accounts simply highlighted not enough income.Expenditure was un affected.

The condo survived

Voting for the special assessment on an annual basis is better.

I may recommend the idea.

[lkn]

1 minute ago, Delight said:

Voting for the special assessment on an annual basis is better.

I may recommend the idea

I would also strongly recommend it be made part of the budget presented at the AGM (under income), and I would say that approving the budget then indirectly approves the special assessment fee.

[Delight]

1 hour ago, lkn said:

I would also strongly recommend it be made part of the budget presented at the AGM (under income), and I would say that approving the budget then indirectly approves the special assessment fee.

 There is no other legal way to do it. The approval -by simple majority vote-can only take place at a legally convened general meeting.

Easy.

Any condo that votes negative can look forward to a dismal future.

[lkn]

22 minutes ago, Delight said:

There is no other legal way to do it. The approval -by simple majority vote-can only take place at a legally convened general meeting

Either you misunderstood me or I do not understand you.

 

The AGM is the “legally convened general meeting” (Annual General Meeting).

 

On our general meeting we present the co-owners for a budget, this will show expected income/expenses for the coming year, and it also has a column for actual income/expenses from last year, although this is just to make it easier to follow the progression of our finances.

 

This budget should include everything, i.e. income would be management fee, profit from sales, water supply, special assessment fee, etc. and expenses would be the recurring expenses, salaries, planned investments/renovations, etc.

 

On the following AGM there will an audited financial report and if the condominium corporate has done their job, it should be close to the budget passed the year before.

 

It sounds to me like your AGM does not present a budget to the co-owners, but only the audited financial report, and that is why management can forget about passing the special assessment fee.