Special Levy Fatigue

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Having to Continually Raise Levies?

How Body Corporate Loans Help Avoid Special Levy Fatigue


Understanding "Special Levy Fatigue"

Special levies represent significant upfront costs: a $150K roof repair could mean each owner paying around $12.5K, often with minimal consultation. For many households, this is a considerable financial burden - sometimes ill-prepared for - and suddenly arriving without warning.


Levy decisions can be top-down. One owner on Reddit noted they were blindsided after the committee proposed a large levy at the AGM without wider consultation. This breeds distrust, legal challenges, negative postal ballots, or meetings unable to reach quorum.


When owners can’t or won’t pay, levies become debt tied to the unit. Non-payment leads to interest, legal costs, and even restrictions - such as losing the right to vote at meetings. This places extra burden on paying owners to cover deficits, increasing their levy share.

Unpaid levies or looming financial projects deter buyers. A unit sold with outstanding levies may be unsellable - or only at a heavy discount.



Broader Negative Outcomes

Body Corporate Perspective:

  • Delayed projects due to lack of funds or quorum
  • Erosion of trust—spurring more disputes
  • Increased admin, accounting, and legal costs
  • Potential loss of insurance, regulatory pressure


Individual Owner Perspective:

  • Lump-sum levy demands destabilise household budgets
  • Credit impacts, legal costs, and interest accrue
  • Owners barred from voting or accessing services
  • Sale complications: buyers wary of hidden debts



Recent Context & Expert Insight

A CBCS NZ guide (August 2024) explains just how levies are structured and the difficulty in raising funds when budgets spike unexpectedly.


According to a local body corporate specialist, sudden maintenance projects combined with rising insurance, building compliance, and maintenance costs are prime contributors to unexpected levies.



How MOD Finance Eases the Pain

  • No More Lump-Sum Surprises: Instead of asking owners to dig deep at once, MOD Finance allows the Body Corporate to take a collective loan, spreading the obligation over multiple years. Owners get certainty, not shock.
  • Boosted Governance & Confidence: With the funding secured, committees don’t need to rely on unanimous or postal-vote buy-in. Projects proceed with clarity—minimizing conflict and accelerating decision-making.
  • Protecting Owners’ Finances: By smoothing payments, loans help owners avoid debt, defaults, and penalties—helping to preserve credit and peace of mind.
  • Stabilising Long-Term Value: Consistent funding keeps facilities maintained, insurance valid, and property values robust—without financial whiplash.



From Special Levy Fatigue to Financial Flexibility

  • Body Corporate wins: Projects proceed on schedule, transparency increases, and administrative burden drops.
  • Owners win: Budgeting becomes manageable, financial stress eases, and resale value is preserved.
  • Wider community wins: A proactive, funded Body Corporate signals stability and enhances the reputation of your building.



Final Take

Special levies may be common - but levy fatigue is avoidable. A lack of funding shouldn’t mean deferral of necessary projects; nor should it mean placing undue burden on individual owners. MOD Finance steps in to provide a fair, structured, and sustainable alternative - protecting both the community and individual unit holders.


Let’s discuss how we can structure a Body Corporate loan that balances budgets, defuses conflict, and keeps your project on track (or get it started!).

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