Much have been publicised in the media about the new Sectional Title Schemes Act and the Community Schemes Ombud Service Act (‘CSOS-Act).
The CSOS also requires additional administration for the provision of yearly returns,submission of financials and payment of fees. On 7th October 2016, the Minister of Human Settlements promulgated the levies payable by every unit Owner. This was published in the Government Gazette 40335. Regulation 1232 sets out the following:
(1) The Schemes must collect as follows the prescribed monthly levy from every unit within a community scheme, and pay to the Service on quarterly basis: –
The following table gives illustrative values of the prescribed monthly levy payable:
|Monthly levy charged by the community Schemes||Monthly CSOS Levy Payable|
|Zero to R 500.00||R0.00|
The CSOS Act provides for the Adjudication and issuing of orders of numerous types of complaints relating to Financial Issues, Behavioral Issues (Conduct Rules), Governance Issues (Management Rules), Meetings Issues (AGM, SGM decisions), Management Services (Managing Agent), Works Issues (Repairs and Maintenance), General and Admin Issues or any other issue as determined by the Ombud.
The CSOS Act drastically changes compliance enforcement by the issuing of compliance orders by the Ombud that will have the same power as a Magistrate’s Court Order or a High Court Order enforceable by the Sheriff of the Court. Non-compliance with these orders can be deemed to be contempt of court with the resultant probable penalties.
The Act and Regulations provides for fees (Levies) payable by individual Members and the Body Corporate and any other Community Scheme to the CSOS.
Applications (complaints) to CSOS and adjudication thereof will also attract cost, mainly for – – if “defense” is required or to apply for an order against a member or resident. In terms of the above-mentioned Regulation, CSOS-levies becomes payable by all Community Schemes/Body Corporates in January 2017. The Directors of Amberfield Manor – have therefore instructed that the levy be billed on your levy account in addition to the normal levy that you pay. This will reflect on your January 2017 levy statement.
It is Important to note that in terms of the Regulation, any community scheme which, or person who, fails to pay a levy or any other amount due to the Service on the date that amount is due and payable must pay the Service interest on that amount for the period it remains outstanding at a rate prescribed by the National Credit Act, 2005 (Act No. 34 of 2005), as amended.
Any Member wanting to receive more information about the legislation may obtain such information from Kibo or visit http://www.csos.org.za/