REPAINTING APPROVAL – COLOUR CHANGES EXPLAINED

Repainting of a strata building is a reoccurring maintenance requirement that occurs every 8 to 15 years, depending on who you ask and where the building is located. There are many reasons why painting maintenance occurs which you can read about in the many articles that painting service providers have written and saved Here.

In this article we will explore the approval requirements for when it’s time to change the colour and also delve into painting balconies that are within the private lot boundaries.

Recently, I had a scenario where a scheme was ready to arrange repainting of the building, which after providing the committee some guidance on committee and major spending limits, compliant proposals with like for like specifications were received and the committee reached agreement on the preferred repainting service provider. A group of same issue motions was approved to be submitted to the Annual General Meeting (AGM) for owners to consider repainting approval of the committee preferred service provider.

Sound familiar, well it should have all gone to plan and the committee preferred service provider approved, then engaged to repaint the building. On the lead up to the AGM though, the committee decided to investigate changing some of the buildings colours, which did not have any additional cost.

Changing the colour is not within the committee’s authority as the change of the colour is no longer defined as maintenance and is considered separately as an improvement to the common property.

In considering if a change to the colour of the building is in fact an improvement, the committee are required to consider the definition of improvement in schedule 6 of the Body Corporate and Community Management Act 1997 (the BCCM Act) which states that an improvement includes:

1. the erection of a building; and
2. a structural change; and
3. a non-structural change, including, for example, the installation of air conditioning.

This brings us to ask the question, what is a change? The definition of change as stated in the Acts Interpretation Act 1954, schedule 1 includes:

1. Addition
2. Exception
3. Omission
4. Substitution

A change can include adding, removing or swapping something. See section 36 of the Acts Interpretation Act 1954.

As swapping the colour is captured within this definition, it is deemed to be an improvement.

The committee are then required to consider the improvement limits for approving improvements and confirmed that the Special Resolution Improvement (SRI) Range applied. This range is for when the improvement cost is more than the Ordinary Resolution Improvement range, i.e. more than $2,000 multiplied by the number of lots in the scheme and the painting lot improvement motion required to be submitted as a special resolution at a General Meeting.

This range would apply given that there was no extra cost to change the colour, however the cost for the proposal approved at the AGM to repaint the building did exceed this limit.

Summary

If considering repainting your strata building, separating the matter of what is maintenance and want is the improvement element should be considered so that these separate elements can be decided separately. If the motion proposes to paint the building and only provides the option to do this with a different colour, you may risk approval of repainting not receiving approval at all if the motion does not gain the required votes for the improvement limit resolution type required.

Stay tuned for part 2 – Painting Internal Balconies coming soon in the Smart Strata Update!

This article was contributed by Grant Mifsud, Partner – Archers the Strata Professionals