Strata & Surfing in Victoria

Torquay, on the Great Ocean Road in Victoria, is famous for its surfing beaches.  But in two weeks time the surfing is giving way to some serious strata conferencing when Strata Community Australia (VIC) hosts its 2011 Principals Forum & Symposium.

It's being held at the Wyndham Resort Torquay between 16 and 18 November.  The programme is labelled as "Unravelling the Mysteries of Success' and features presentations about marketing, management business operations, new age developments, strata law changes, OH&S law changes, and communications issues. Plus I'll be running a Geoffrey Robertson style hypothetical about some challenging strata issues.

You can find out more about the Principals Forum & Symposium and register here.

So, see you in Torquay talking Victorian strata soon.

Francesco ...

City Futures Reports about NSW Strata Title

As you'll know from my earlier blogs the clever people at the City Futures Research Centre at UNSW are studying NSW strata title.

And as part of their study they publish STRATA DATA Residential Strata in NSW which captures and reports on the state of NSW strata title.  Issue 4 has just been released for October 2011 and you can get a copy here.

It contains many interesting facts including that between July 2010 and July 2011 -

• there was an overall increase of approximately 3% (1,957 schemes) in the total number of residential strata schemes in NSW
• there was an overall increase of 27,941 lots (close to 5%) across NSW
• there was very little change in the balance of owner occupation to investor ownership in strata schemes across NSW (from 53.2% to 52.8% investor owned).
• the number of strata schemes with 100 lots or more registered in NSW increased by 25 schemes, or 8%, to 326
• the percentage of residential strata schemes in NSW registered more than 30 years before increased from 19.6% to 22.6%

So things in NSW strata just keep going on.

Francesco ...

Sticking the World Under the Highline in NYC

In New York City  there’s a new outdoor installation underneath the High Line called Tight Spot.

It’s been created by David Byrne (remember him?) in conjunction with The Pace Gallery and involves a 48-by-20-foot inflatable terrestrial globe which appears to be gently crushed by the towering High Line.  An audio program by David Byrne sends out low-frequency vibrations from speakers placed within the globe that are meant to be heard from the surrounding streets and the elevated park so that passersby  discover the art installation.

It’s fun, interesting and uses wasted space.  I’d love to see more of this in many other cities (including Sydney).

Enjoy!

Francesco …

Hurry Up! Before NSW Home Building Insurance Disappears Completely

After blogging about how severely NSW Home Building Warranty & Insurance protections have been wound back over the last 10 years (see Shrinking NSW Home Warranty Insurance) and thinking things couldn't get much worse for home owners - they have.


Last week in NSW the Home Building Amendment Bill was passed into law and it reduces consumer rights over residential building work even further.


Amongst the various changes time limits for claims for breach of statutory warranties have been reduced.  The existing 7 year limits have come down to 6 years for structural defects and 2 years for everything else. The starting dates for these time limits have been tightened up and, in many cases, are earlier than before.  And, where building work is staged there will be staged time limit start and finish dates.


A positive thing is that developers are more clearly included as liable for Home Building Act breaches and the proportionate liability provisions of the Civil Liability Act have been excluded from Home Building Act claims.  But, if you can't take legal action because you're out of time that's not much help.


You can read more about the Bill (including what the Minister said about it) here. 


And, here's a short article in the SMH about the possible impact of the law changes and another one from the Brisbane Times about how this is happening in an environment where complaints against builders is increasing. 

So, regardless of anything else I'd suggest getting a taste of NSW Home Building protections sooner than later since at the rate they're shrinking there won't be anything left in a very short time.




Francesco ... 

A Strata KISS in NSW

Someone's always asking whether something in a strata building is common property or owner property (and who should pay for it).


But, even though the rules for working it out haven't changed for more than 35 years it appears that NSW strata stakeholders are still confused and can't work it out.


So, the NSW Government has issued a formal property Memorandum to try and simplify things and make it easier to that out.  You can read more about the Memorandum here.


It covers a range of building components and lists what's owner or strata corporation responsibility so that NSW strata corporations can make a by-law adopting the Memorandum and then use it to avoid problems.


From my perspective, I doubt it will really help much.  After all, it's pretty easy to work this out now with a bit of experience and advice; the really difficult issues (like floating timber floors) a re not covered and will always be difficult; and some of the things in the Memorandum are confusing too.


But, I guess there's a lot of people who want everything to be made simple so the Memorandum will be an attractive option for them.  


So if you want the simple answers to responsibilities in NSW strata buildings try the NSW Memorandum Who is responsible for items in a Strata Scheme.




Francesco ...

When Strata Storage Becomes a Hazard

Our homes (apartments, garages and storerooms) are places where we live and keep the things that are necessary and important to us. 

So, they’re important warehouses of our stuff.  And, that’s entirely appropriate since we all have stuff and need to keep it somewhere.

But what about when it goes too far and storing stuff becomes a problem?

This story posted by Summit Strata highlights how one apartment owner created a rabbit warren of junk in their apartment and how it was handled here.

But, it’s not the only example of storage becoming a hazard in strata buildings.

There’s apartment hoarders who keep paper and other stuff that becomes a fire hazard, those owners and residents who never clean up and create vermin and health hazards in the building, people who stack their garages and parking spaces with old junk and the business operator who stores their products, supplies and waste in their lot or garage.

Every situation is difficult to handle because the storage is in private property so it’s hard to detect and do much about. 

There’s often rules or by-laws that control some things (like flammable materials or things that cause noise or odour) and sometimes strata laws prohibit things that cause nuisances or hazard.  Sometimes, local planning laws also control over-storing and fire, health and planning authorities can intervene.

But, in every case there’s a lot of work to fix the problem and no guarantee it won’t re-occur.

So, beware of over storing in your strata building.

Francesco …

Watching Out for Strata Managers

Strata managers are watching out for their strata corporations and owners.

But who’s watching the strata managers?  And, how can owners or executives find out more about their strata manager or prospective strata manager?

Well if you live in Toronto, Canada you could check on www.stratawatch.ca

It’s a website that’s been created by strata owners with information about many strata management companies, a rating system (out of 5 stars) for them and news highlighting problems in strata management companies. 

It looks like it’s negative about strata managers but any site or service that highlights problems and failures will inevitably be so.  Nevertheless these kind of sites are likely to continue and grow, so everyone in Strataland should get used to them.  After all they are very common in other business sectors.

So, strata managers should realise that someone (or many people) are watching them.

Francesco …

Another Specialist Strata Tribunal (this time in Canada)

In British Columbia strata disputes have to be decided by the Supreme Court.

So, owners and strata corporations complain about the cost, complexity and delay that this causes – making everyone less able to deal with disputes and enforce strata laws.  And, after public consultation there’s a new proposal in BC to introduce a specialist tribunal.

It’s said that the proposed tribunal would provide a dispute resolution process that is affordable, timely, user-friendly and accessible, and would improve compliance with strata laws.  It will also use web-based systems, provide flexible and responsive options for disputes and would not require a lawyer, although the parties might still choose to retain legal representation.  Mediation will be available to parties.

There will still be matters that must be addressed through an application to the B.C. Supreme Court.

Importantly for strata stakeholders who have not yet been involved in disputes, the proposed tribunal would establish a searchable database of tribunal decisions and opinions, with personal information removed.

This sounds like many specialist strata tribunals that have been set up around the world (including in Australia) and opinions are being sought by the Housing Policy Branch at – www.housing.gov.bc.ca/strata/ind ex.htm 

You can read more about the new tribunal at the Times Colonist.

And if you're interested express your opinion too.

Francesco ….

Chicago Strata Buildings Lose Rebate to Help Deficit

There’s an ongoing debate about how strata owners pay the same local government rates as home owners but often have to provide for and pay for typical services themselves (like garbage collection, roads, lighting, drainage, etc.

So, it’s unfair since strata owners pay twice and/or pay for services they will never get.

In most parts of the world the debate simply continues to rage and strata owners just pay. 

But, some cities have implemented solutions for some of these problems. Like Chicago where they introduced a rebate of $75 per apartment in 1984 for strata buildings with 5 apartments of more since it did not collect garbage from those buildings. 

But things have changed now that Chicago has a  $635.7 million deficit.  And the rebate is being scrapped.

Interestingly, the Chicago Mayor says that the abolition of the rebate ‘is the fair and honest thing to do for Chicagoans’ which must mean fair for non strata owning Chicagoans.

Whilst this is an isolated example, it highlights the lack of understanding and concern for the extra burdens strata owners take on.  When will regulators take more notice?

Francesco …

10 Reasons Why you Should be on Your Strata Committee

I’ve blogged before about the lack of owner engagement and participation in strata committees before (see If Not You … Then Who?).

Now here’s a great piece by Four Points Property Management in South Florida called Top 10 Reasons to Volunteer for your Community Association which simply and straightforwardly explains why owners should.

It makes great sense to me and, I’m sure, that if enough people explain things this simply to owners they’ll get it too.

And, thanks Chris Jaglowitz for tweeting the link to this piece.

Francesco …

Strata Trots Along in Sydney's Inner West

It's all about urban renewal these days.  And in Sydney's inner west, it's happening again on one of the few remaining large sites.


Mirvac is developing the historic Harold Park race track site in Sydney  into a $1 billion  master-planned community.

The development has 1250 new homes, with the first phase of 296 apartments and strata-titled terraces sand is designed by the architectural firms Hassell, Mirvac Design and SJB Architects with landscaping by Aspect Studios.  And, the $1 billion redevelopment is expected to take up to eight years to complete.

More information about the development is available here.

It's another great example of how strata development is transforming our cities.

Francesco ... 

Making a Business out of Graffiti

I’ve blogged about graffiti and Banksy a few times before.

And, now I’ve found an interesting article about both by Louise Leontiades called Graffiti is Good for Your Business that discusses the tensions between graffiti as art or crime over the centuries and how the anti-social dimension of graffiti is itself becoming a business.

It’s a fascinating proposition and echoes what we’re seeing as mainstream business try to become more ‘streetwise’ and ‘edgy’ by adopting ‘enfant teribles’ like graffiti artists, hackers, skateboarders, etc.

The article also includes the provocative quote from Banksy in 2005 -

“Imagine a city where graffiti wasn’t illegal, a city where everybody draw whatever they liked. Where every street was awash with a million colours and little phrases. Where standing at a bus stop was never boring. A city that felt like a party where everyone was invited, not just the estate agents and barons of big business. Imagine a city like that and stop leaning against the wall – it’s wet.”

And, BTW, if you’re a Bansky fan (like me) you can now get an iPhone app that give you a tour of Banksy graffiti locations and more - Banksy iPhone App

Francesco …

Online Tools to be a Better Strata Executive

It’s tough for most owners to know everything they need to be good executives for their strata corporations.  Even when they have the time and motivation there aren’t too many places to get the necessary information and learn more.

But thanks to SCA (NSW) there’s now free online course for New South Wales strata executives.  

It’s an extension of their pilot face-to-face executive committee training course from April 2010 covering governance and ethics module, roles and responsibilities, strata plan interpretation, administrative matters and communications. 

SCA (NSW) says that completion of this course will provide participants with the basic knowledge of executive committee membership in a NSW strata plan. I think it’s useful for anyone interested in doing better when making decisions in strata corporations.

After all there’s so much to know in strata titles that you really can’t learn enough or have what you know refreshed frequently enough.

So, well done SCA (NSW).

Why not do the course yourself (it can't hurt)?

Francesco …

When Good Managers do Bad Things

In Toronto there’s a few strata corporations and others who are pondering their fate after one manager has apparently defrauded them of up to $20 million.

The Toronto Star reports that Manzoor Moorshed Khan and Channel Property Management have been involved in the following activities –

• registering fake by-laws without committee knowledge authorising multi million dollar loans against the property and then misappropriating the loaned money,
• rigging tender processes on major building projects by creating a company that would come in at the lowest bid to win lucrative jobs and then subcontract the work at half the cost, and
• after securing major works contracts with the lowest bids then varying the work and inflating prices by more than 100%.

At least 7 buildings have identified these situations occurring at their buildings and are taking legal action.  Equitable Trust (who lent most of the money) has advised shareholders of the suspected fraud in relation to four loans with total outstanding balances of approximately $14 million.

Channel Property Management has also ceased trading and Manzoor Moorshed Khan has left Canada.

These are very serious problems and will cause the affected strata corporations and owners severe financial hardship.  It’s also affected Channel Property Management employees and business associates who have been caught up in the frauds.  Plus the whole strata management industry in Toronto is tainted by the revelations.

However, the more long term and serious questions that arise from this situation are about appropriate governance and risk management for executives, committees, managers and management staff at strata corporations (since any one or more of these could do the same) and what, if any, protections by insurance, fidelity bonding, government underwriting or other mechanisms should exist and apply.

It’s a debate that has no easy answers.  But, which we'll have to resolve in the future. 

Francesco …

Why’s Water Such a Strata Issue?

Over the last 30 years 3 I’ve noticed that one of the most significant things that affect strata buildings (after people and money) is one of earth’s primary elements - water.

Funnily enough that simple composition of hydrogen and oxygen has and continues to be very important to strata corporations, committees, managers, owners, residents, neighbours and the community.

Let’s look at how (and why) that is.

To start with strata corporations spend a lot of time and money keeping water out of their buildings. Leaking roofs, windows, balcony doors, balconies, decks, planter boxes, showers, and every other conceivable locations cause damage, disturbance and anguish.  They take time and expertise to find and decide how to fix.  And, the cost plenty to fix.  Sometimes, water enters because of poor building design or construction, sometimes due to wear and tear and sometimes due to damage.  Either way for most of a strata building’s life there’ll be water leaks to fix.  As we all know one of the most common (and expensive) building defects is water penetration.

And of course, water leaks and entry causes many insurance claims and affects premiums and excess payments.  In more extreme weather conditions the damage from water entry can be the largest component of a strata building’s insurance claim.  Just look at the effects of Cyclone Yasi in far Noth Queensland last year.

If keeping water out is important, strata building must also make sure they can get it in to apartments as water supply and then remove it as grey and black water.  Getting water (hot and cold) to apartments at the right pressure and temperature (especially when it’s a high-rise) is not always easy.  And disposing of used water from apartments can also present some challenges. 

These days, strata buildings are also storing rainwater in detention tanks before releasing it into main water disposal systems or onsite tanks for re-use.   It’s obviously important to do so but also takes management of the water detention, storage and distribution systems. 

More recently there’s been some focus on water consumption in strata buildings.  It appears that it’s generally higher than comparable free standing housing and no-one’s sure why.  Some argue that the absence of separate metering in apartment buildings (so that water consumption is measured at the boundary and water use charge split between owner according to levy proportions rather than actual use) is to blame.  So, there’s pressure to install separate meters in new strata buildings and retro fit meters to existing strata buildings to raise water consumption awareness and make users pay.  Here’s a recent Sydney Morning Herald article on that issue which highlights more of the problems.

And, there’s a tax angle involving water in strata buildings too.  Although water is exempt from Goods & Services Taxes in Australia, because water charges to strata corporations are included in their annual budgets and strata levies are subject to GST, then most strata owners pay GST on water (when everyone else doesn't).  It’s an anomaly that everyone’s aware of but about which nothing has ever been done.

So, as you can see water plays an important part of strata life (as it does everywhere else).

Francesco …

Make My Home Modular Please

Ever wanted to change your home just bit and/or just for a little while?  Then you might want to get a modular house.

Michael Jantzen has designed the M-House which is a modular home that can be easily reconfigured to serve a variety of functions.

Based on Jantzen’s M-Vironment system, which consists of a space frame grid clad in hinged horizontal and vertical panels  Some panels have insulation and windows in order to enclose indoor spaces, others are open to create patios and other open living spaces. The M-house is also designed to be energy self sufficient and can be disassembled and moved with relative ease.  Check it out here.

And, here's a 3D rendering of the M-House.

So far the only M-House built was sold to an art collector in Korea for an undisclosed sum.  So, it will probably be a little while before you see one in your neighbourhood.

And, just imagine stacked up M-Houses to create M-Apartments.

Francesco …

The Strata Drug Scene

I began thinking about how drugs affect strata ownership and living after reading a recent story about an explosion in a strata building in Nashville, Tennesse.

It happened at Cedar Place Apartments in Nashville on a Saturday night when a 28 year old making crystal meth in his bathroom made a mistake and the chemical compound exploded.  The explosion knocked out an entire wall and door of the apartment.  Luckily no-one was seriously hurt.  You can read more about it here.

The incident is a timely reminder that just like the rest of society, drugs are reality in strata corporations and buildings and they can have more or less dramatic effects on everyone involved.

There’s the possibility of drugs being manufactured or grown in apartments like in Nashville.  You might be surprised how often it's happening.  Like the story I heard of the hydroponic cannabis farm in a strata apartment occupying three of four rooms.  Such illegal activities not only cause damage to the building but introduce a criminal element into peoples' homes.

Worse still is the situation where drug deals are done in and around strata buildings (especially in inner city areas).  When dealers use hidden corners in alleys behind buildings, secure carpark areas and other private or hidden areas in buildings to sell drugs.  In one case, drug deals were being done in the lifts of a high rise strata buildings as it travelled between floors allowing the dealers and buyers to enter and exit on different floors.  This exposes residents to drug activity and potential violence.

And, there’s also the possibility of recreational drug use by residents as they live their normal lives; leading to strange odours in the corridors, parties running well into the night (and morning) and strange behaviour by drug affected people in the building.  I was once involved in a case where a resident regularly returned home at 2.00 and 3.00 am after a night of stimulant abuse to start weightlifting exercises in his apartment before finally crashing to sleep.  After all when people are high they often lose some sense of reality and forget how the things they do affects others.

Drugs are an issue that’s often ignored in strata title because they're seen as a police matter, there’s usually no direct or easy controls and/or management of the risk is awkward and uncomfortable.  But, it’s a real issue and can affect any strata corporation at any time.

So, watch out for the strata drug scene in your strata building.

Francesco …

San Francisco Time Lapse

It’s been a while since I’ve posted a time lapse video and never of San Francisco.

So, here’s one called The City created by Wesley Townsend Kitten (WTK Photography) over a period of a year.

Enjoy.

The City from WTK Photography on Vimeo.

Francesco …

There’s Now A Strata Community in Australia

I’ve blogged about Australia’s NCTI and it’s transformation into Strata Community Australia before (see Strata Goes National in Australia).

But now, Strata Community Australia has started to make it’s presence felt.

The new website is up and running with lots of useful information here - stratacommunity.org.au

So, have look and keep an eye out for more developments on Australian strata and community titles in the future.

Francesco …

What’s Specially or Unanimously Decided in NSW?

When NSW strata corporations need to make decisions there’s three different kinds.

Most things are decided by simple majority vote, but there are 25 things that need to be decided by special or unanimous vote or consent. 

Some of those things are obvious like special votes for by-laws, subdivisions and changing common property and unanimous resolutions (or consents) for terminating the strata corporation.  But some are less obvious or common.

The Strata Experts have produced a simple summary of those things for NSW strata corporations called What’s So Special & Unanimous In NSW Strata Title Resolutions ?

which you can read at its website.  So, if you need or want to know more check it out.

Special resolutions (or votes) involve a three quarter majority and, interestingly, unanimous resolutions simply mean that no one votes against the motion (in other words a resolution without dissent).  And, of course that’s only counting the votes made at the meeting itself.

So, make sure you get decision making right and that the unanimous decisions are unanimous, the special decisions are special and everything else is a majority.

Francesco …