“Community schemes, such as sectional title, homeowners’ associations, retirement housing schemes, share block companies and housing cooperatives, are regulated under the Community Schemes Service Act 9 of 2011,” explains CSOS acting chief ombud Thembelihle Mbatha.
“However, not all stakeholders are well-versed with the regulations or their rights and responsibilities. The first CSOS Indaba will offer an opportunity for stakeholders to get to grips with community scheme governance and regulations and share their challenges and lessons learned.”
The event aims to address a range of problems experienced in community schemes, including unregistered schemes, inadequate governance, non-payment of levies, a lack of transparency and inconsistency in financial management, unconstitutional rules, and poor records management.
Mbatha says common problems reported in community schemes also include rules being enforced without submission to CSOS for approval, no proper handover of records to new trustees or new managing agents, special levies being imposed on members without appropriate SGM resolutions, and disputes emerging over resolutions made during AGMs.
Issues that could prompt homeowners to take disputes to CSOS also include a lack of accountability in the management of schemes, poor maintenance of common areas, or a conflict of interests by the board of trustees in business decisions made on behalf of the scheme.
The sessions will address these issues and elaborate on how to resolve them, with an overview of the role CSOS plays in regulating the conduct of parties within community schemes and ensuring good governance, fairness, transparency and resolution of disputes.
The CSOS Indaba is free to attend, but delegates need to be accredited. Go to www.csos.org.za for more information.
