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Long Term Maintenance Plans for Sectional Title residential complex

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Posted Sep 16, 2017 | Hits: 612
Province: Gauteng
City: Kempton Park
We specialize in developing Long Term (10 year) maintenance plans for sectional complexes in South Africa.

Save up to 50% when ordering your Long Term / 10 year Maintenance Plan from SA Business Planning.
• Massive discounted fee structure: 30%-50% reduction in initial cost!
• Free updated Maintenance Plan after first 12 months!
• Accurate pricing through a network of benchmark sources!
• We can include costing for future ‘green projects’* as part of your plan.
• Reliable reserve fund calculations due to accurate benchmark costing and projections.
• Annual updated plans at a fraction of the normal cost!
• You receive a 10 year Plan ready to sign off by the Body Corporate.
• No complex calculations and quotations needed: We ensure your compliance.
• Order early to avoid the 2017 rush of 40,000 complexes that needs to comply.

SA Plan offers a valuable, cost effective service for the Sectional title owners, Body Corporate or Trustees since the changes in the Community Schemes Ombud Service Act (CSOSA) and the Sectional Titles Schemes Management Act (STSMA) have taken effect. In the past, some schemes made little or no provision in their annual budgets for future expenditure; instead, they raise special levies whenever they are faced with a major expense. The STSMA requires a body corporate to establish two funds: an administrative fund and a reserve fund. Contributions (levies) collected from owners must be paid into the administrative fund and used only to fund operating expenses in the current financial year. A portion of the contributions must also be allocated to the reserve fund and used to pay for future expenditure determined by a Long Term maintenance, repair and replacement plan, which the body corporate is required to have at all times. The regulations now prescribe a formula that must be use to determine the minimum allocation to the reserve fund when it prepares its annual budget.

This new management regulation requires from Sectional title owners/ Body Corporate or Trustees to have available a plan for the maintenance, repair and replacement of major capital items on the common property within the next 10 years. “Major capital items” includes items like electrical distribution systems and local transformers, plumbing and storm water and drainage systems, carpeting, fittings and furnishings, roofing, internal and external painting, waterproofing, communication systems, paving and parking areas, security systems and any recreational facilities within the common property area. The plan must point out the current condition or the state of repair of each of these capital items; when each item will have to be maintained, repaired or replaced and what the expected associated cost will be. It should also indicate the expected lifespan of the items when they are replaced or maintenance completed on them.

The regulations further prescribe a specific formula that Sectional title owners, Body Corporate or Trustees must use to determine the annual contribution to the reserve fund to maintain, repair or replace a capital item. This formula should include the previous contributions made for that purpose with reference to the expected life-span of these items. The formula is further also based on the amount in the reserve fund at the end of a financial year and the total contributions collected in that year as well as the percentage of the administrative fund in proportion the reserve fund.

Although trustees will still be allowed to raise special levies in the future, it is clear from the wording of the regulations that the reserve fund is intended to cover expenditure that many bodies corporate are currently funding via special levies. This expenditure includes repairs that could not have been reasonably foreseen when the maintenance plan was drawn up or urgent repairs and maintenance required to prevent damage to property or to ensure people’s safety. The maintenance plan must be approved by the body corporate at the AGM and afterwards again at each AGM, the trustees must in future then report to the body corporate the extent to which the plan has been implemented.

Our service takes away the complexity of this assessment, future projections, and calculations and allows you the opportunity to comply with the requirements of the act at a fraction of the normal cost of expensive on-site audits.

SA Plan also offers a free update on your original LTMP after a 6 month period from your initial order (not longer than 12 months from the original order). This will allow the trustees/ body corporate to evaluate and incorporate any spending during this past period to be incorporated into the calculations and the recalculation will extend the LTMP automatically for a further 10 years. (Approval at each AGM meetings)

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