Sunday, June 13, 2010

OCN Victoria Closes it’s Doors

After a few years of stop-start operation the Owners Corporation Network Victoria (Registration Number A0050795) has closed it’s doors.

The Owners Corporation Network Victoria was established by a few strata scheme owners who felt that their voices weren’t being heard and wanted to create a group to share experiences, compare problems (and solutions) and have a combined voice to government and other strata stakeholders.  Over the last few years OCN Victoria has participated in the Victoria strata law reform process, owner education programmes, lobbying the state and local governments and the Griffith University bi-annual conference Strata & Community Title in the 21st Century for Australia III.

But now, Michelle Anderson, the head of the Owners Corporation Network Victoria has issued the following open letter that explains it all.

Open Letter from the Owners Corporation Network Victoria - A0050795

It is with much sadness that I send this letter advising our database that I am planning to de-register the OCNV – and in effect close it down.

I will briefly explain the reasons for this action – but I also want to use this email to stress that the need for an effective OCNV-type organization is profound – and will continue to be.

Unfortunately all members of the Committee have now resigned due to either ill health or selling of properties that are OC controlled. And I am finding that my role as Chair of a large and troubled OC absorbs so much of my energy and time that it is unrealistic to continue to try to get the larger OCNV body up and running.

But this in no way means that the need for an effective OCNV is not as strong now as ever it was.

It is my prediction that Government policy will see more OC-type developments arise in Victoria – and many will be very large. But I fear that the mistakes and unfairnesses of the past will be repeated.

Looking back on what I have learnt let me suggest that there are three main problem areas.

First – managers.  Although there are good managers, there are too many very bad ones. Finding a good manager by trail and error - going through three or four bad ones – condemns OC’s to years of hellish problems.

Second – developers and the failure of Government to improve relevant regulation.  I respect the right of developers to enjoy a good return on capital that they put at risk – but as long as only developers have ready and effective access to government, owners will continue to be the victims whose interests only emerge after projects are completed and lots sold.  Two painfully obvious examples - inadequate action on metering of services to lots and inadequate control (or publishing of predictions on) mixed usage of lots are problems that beset owners after purchase. Yet there is no action planned (that I know of) to address these issues.

Third – OC Committees and Chairs. I know from bitter experience just how hard it is to run an effective OC for a big development. And I know from discussion with others that problems apply just as much in the smaller developments. As long as voluntary committees and chairs are expected to learn all about how to monitor their cash flow planning, and how to evaluate the suitability of their insurance cover – AND find a competent and trustworthy manager that will work with them effectively, we will continue to see well-meaning people cast in roles that overwhelm them and leave others ill-served. While the new Owners Corporation Act was a good and major step forward, the pity is that the Government has really just washed it hands of all the consequential impacts that the act has brought forward – like effective training/support for Committees and Chairs.

Maybe an election is a good time for Government to realise that they have only half done what they have started. “Planning” extends well beyond such contentious matters as the Windsor Hotel and an effective policy for sustainable growth for Melbourne – for hundreds of thousands of Victorians it extends to their very living situations. As long as Melbourne’s accommodation future has a big role for both high rise and smaller multiple living structures, the enormous need for an effective OCNV stands and deserves some supportive hand from Government.

My greatest hope is that – within our database, or known to someone on it – there are some people who can pick up the OCNV from where it is now and bring into existence an effective voice for owners. After almost four years of effort, I now put that challenge behind me, but as I said at the outset, the need continues. If you are such a person, I encourage you to “step up to the plate” – I will be able to help with any information that you need in order for the OCVN to continue.

Regards
Michele Anderson
Theandersons4@bigpond.com

So, the first attempt at an strata owners’ organisation in Victoria has failed.  And, that’s a shame.

Let’s wait and see what happens next.


Francesco ...

4 comments:

  1. Is such an organistation necessary.....?

    Personally as an OC Manager, and I'd like to think one of the "good ones", we should be positioned to receive feedback & concerns from members both directly and through the Committee's, and provide this feedback to the appropriate Government Agencies and through our State body. Owners Corporation of Victoria [OCV]

    I feel as well as our role of performing the core management functions for an OC we have an obligation to actively communicate with owners about their concerns within the OC and possibly with the industry. Through our strong OCV we can loby the appropriate areas of government, as we currently actively do. I truly believe this provides great outcomes that benefit the industry and of course owners.

    If there are "bad managers" who dont or are unable to do this then maybe yes, onwers do need some other representative body.

    [Thanks for your posts Francesco, great to see you are still active in the industry!
    Your experience, views and contribution I'm sure will be invaluable.]

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