Condo Common Fees and Special Assessments - Votes needed to increase

[Phulublub]

A thorny subject for sure, but does anyone have definitive advice on what is allowed and required? 

 

As I understand things, to increase the Common Fee requires an AGM vote of at least 50% of the ownership.  If this is not achieved ( acommonn occurance where nowhere near 50% attend or send proxies - apathy rules!), a follow up EGM can pass an increase with a reduced hurdle - but I have seen and heard various numbers mentioned.

 

Then there is the option of Special Assessmnet which, if I am correct, is primarily brought in the restore the Sinking Fund - but is it limited to that?   Can this be brought up at AGM?  If so, what is the vote needed (I have heard majority, with minmum 25% of ownership in favour). 

 

I have read discussion that any EGM for either or both of the above must be held within two weeks of any AGM where a quorum is not achieved - which seems daft, especially for the SA which might need urgent and unforeseen action in the case of emergeny works being carried out.

 

Am seeking professional advice but, of course, everywhere is closed for NY and there must be members here who sit (or have sat) on Committees and dealt with these issues. 

 

Appreciate any experience and directions to any useful publications that might help unmuddy the waters.

 

PH

[Delight]

 You are correct. Increasing the Common Fee is just about impossible.

The solution -special assessment(SA).

In the building where I live this option has been adopted twice.

1st for a  sinking fund -the 2nd for general expenditure.

It can only happen at an AGM or an EGM.

A  simple majority vote is required at a legally convened general meeting. That is it.

In my building  these SA's have a life span of 3 years. After which they have to be renewed. Very simple.

Without them the building where I live would be in serious trouble

 

[scubascuba3]

1 hour ago, Delight said:

 You are correct. Increasing the Common Fee is just about impossible.

My condo voted an increase in common fees last year, At the second meeting it was either over 50% of those attending or over 35% of total ownership, I can't remember which it was.

 

Up until then it was just supplementary fees in recent years

Edited January 1, 2023 by scubascuba3

[Delight]

3 hours ago, scubascuba3 said:

My condo voted an increase in common fees last year, At the second meeting it was either over 50% of those attending or over 35% of total ownership, I can't remember which it was.

 

Up until then it was just supplementary fees in recent years

Would you describe your building as large?

[scubascuba3]

17 minutes ago, Delight said:

Would you describe your building as large?

Medium, 250+ condos

[Phulublub]

Searching around the 'net found this thread from 2013 (which had not come up in Forum Search) which may be of interest but highlights the confusion:

 

 

 

[soi3eddie]

My condo is 13 years old and only once has the common area fees been increased and that was after the first year when the original fees were unrealistically low. Since then, no increase at all. The building is well run by Plus management and the co-owners are a decent, educated group. First AGM was packed with co-owners. Since then, it's dwindled and now only about 12 of us attend (out of 99 units). Just 3 foreign owners in our building.

 

In recent years we've had a number of special assessments to cover one off things such as equipment replacements and pool deck replacement. I would rather increase fees than have special assesments every year. I had suggested this at the AGM but, Thais being Thais, they just won't accept it. What they don't seem to get is that we pay for it at one time or another! For me, I would rather just make one payment a year but I gues Thais don't budget even when they know fees are payable by end of January each year.

 

[scubascuba3]

10 minutes ago, soi3eddie said:

My condo is 13 years old and only once has the common area fees been increased and that was after the first year when the original fees were unrealistically low. Since then, no increase at all. The building is well run by Plus management and the co-owners are a decent, educated group. First AGM was packed with co-owners. Since then, it's dwindled and now only about 12 of us attend (out of 99 units). Just 3 foreign owners in our building.

 

In recent years we've had a number of special assessments to cover one off things such as equipment replacements and pool deck replacement. I would rather increase fees than have special assesments every year. I had suggested this at the AGM but, Thais being Thais, they just won't accept it. What they don't seem to get is that we pay for it at one time or another! For me, I would rather just make one payment a year but I gues Thais don't budget even when they know fees are payable by end of January each year.

 

Yep it's better they accrue properly for expenses every year otherwise you'll be hit eventually, we are just paying for new lifts, common fees were increased from 25 to 35 per M² monthly, this year 115 per M². Predominantly Thai owned condos in Pattaya tend to get run down due to the reasons you say

[Peterw42]

OP, Google and download a copy of the condominium act. its all covered in the act, and is reasonably easy to follow. There is a section on meetings and requirements.

See section 48

 

https://www.samuiforsale.com/law-texts/new-thailand-condominium-act-2008.html

[lkn]

To add to what @Peterw42 said, the common fee is stated in the bylaws, therefore changing the common fee = changing the bylaws, which need no less than half the total votes.

 

The special assessment fee is just a regular AGM proposal, so all which is required is that co-owners receive sufficient information about this, no less than seven days before the AGM.

 

Although one could question whether the AGM has the power to vote on “collecting money” from co-owners beyond what the Condo Act already specifies (that building expenses should be shared according to ownership ratio). But it seems to be tolerated, not explicitly disallowed, and sort of in the spirit of sharing building expenses.

[MRToMRT]

At mine if they do not meet the quorum requirements they then ask the shareholders to give a proxy vote permission. I have always refused but sometimes wonder as the building is slowly falling apart.

[scubascuba3]

2 minutes ago, MRToMRT said:

At mine if they do not meet the quorum requirements they then ask the shareholders to give a proxy vote permission. I have always refused but sometimes wonder as the building is slowly falling apart.

Building will fall apart if you don't pay enough common and supplementary fees