Forecasting for funds to be recovered from owners
From time to time, the body corporate has to manage and initially fund repairs to individual owners and then recover the costs of the job after the work has been completed.
Most often, the costs aren't significant and the body corporate has adequate cash in the bank to pay for the work upfront. However, at Plan Heaven, we often have to plan the funding for more expensive works that the body corporate doesn't have the cash to fund.
A case study
A good recent example is a 20 unit townhouse development in Lower Hutt where 12 of the units had a skylight that needed replacing at around $3,700 each. Or a total cost of around $75,000. The other eight units didn't have skylights.
The body corporate manager and committee were satisfied that it was the duty of the body corporate to manage the project and initially fund it. Then on completion, each owner was to be invoiced for the cost of the replacement on their unit.
Where does the cash come from initially?
The body corporate manager and committee was also satisfied, that because it didn't have $75,000 in the bank, at least some of it be raised from all of the owners - including the eight that didn't have skylights. But how much?
Demonstrating the cash flow in the LTMP
While the concept is simple enough, our planner, Rhys, needed to demonstrate the cash in and cash out to make it clear for owners and our hard-coded template didn't provide for it. So this feature was added as an upgrade in version 5.
The screenshots below show what the tables look like
If you have any feedback or questions please use the feedback form.
The Plan Heaven team.
Disclaimer. Plan Heaven is not qualified in law and any comments made on this website should not be regarded as legal advice. Our comments are merely providing some thoughts on how the legislation might be interpreted and how we went about attempting to meet its requirements. You should not rely on this information in isolation and do you own homework and at all times if you wish to be sure of your position relating to legal matters you should seek advice from a suitably qualified lawyer.