Investigative Journalism and Learning Hub - Waratah Strata Management in Large Strata Complex SP52948, NSW, Australia

Welcome to the blog of NSW strata investigative journalism

From: SP52948 owner
To: Waratah Strata Management
Subject: SUMMARY SP52948 fire safety issues, smoke alarms, illegal parking, townhouse problems, accounting errors, and strata document search on 31May2019
Date: 31/5/19, 8:08 am

For SP52948 owners' attention. Please let us know if you wish not to be notified about what is happening in the complex. All such requests have always been respected and complied with.

Some of the issues that Lot 158 works on to help owners corporation avoid serious fines and litigations due to lack of maintenance and non-compliance with laws and regulations:

a) Illegal use of public land for parking towards M2 motorway - Lot 202 DP848752, 440 Lane Cove Road, classified as Public Recreation Space (attachment "Strata-Plan-SP52948-undisclosed-use-of-Ryde-Council-land-for-parking-May2019.pdf").

In simple terms, it was/is illegal to park in that area. Ryde Council finally enforced it in April 2019.

b) Facilitating smoking in basement and near fire doors for almost a year.

c) Fire and Rescue NSW and Ryde Council confirmed number of long-running fire safety issues in the complex and will visit the site after Waratah Strata Management rectify them.

Ryde Council visit forced our complex to clean up all wells near the fire stairs. They are now finally clean from rubbish and other building material (including having broken gym treadmill left near fire door for more than six years!).

On the negative side, the following issues were uncovered recently:

1. All door handle latches on fire doors in the basements were removed without owners corporation knowledge, approvals, or notice. That happened recently and without obvious trace who authorised or organised it.

2. The exits from fire door 1, 2, and 3 was possible without using push bars or door handles. With a simple push of the finger, one could open some of the fire doors effortlessly.

3. Some fire doors still do not have proper fire safety notices and warnings about penalties.

4. Fire door 6 was so jammed from opening from inside, it would be a death trap in a real emergency scenario.

5. Doors did not close properly and stay ajar, allowing anyone to enter the complex without challenge and without being detected (no CCTV) in those areas. Video evidence collected. As an example, anyone can enter the complex at night through fire door 1 and 3, without detection.

6. Smoking behind fire door 2 still continued on a regular basis, albeit the smoker removed cigarette butts immediately.

34 out of 192 lots in four buildings required annual fire safety re-inspection on 7 March 2019 - one month after the first one, and evidence shows that some of them are still unattended. Photo from Lot 154 on 17 May 2019 shows that the fire checks have not been completed yet, although AFSS documents needed to be submitted in April of each year.

Attachment "SP52948-ongoing-issues-fire-safety-and-other-maintenance-problems-30May2019.pdf".

d) Smoke alarms in units.

In an effort to protect residents from this risk, the NSW Government introduced the Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006. As of May 2016, a legislative change came into force requiring that all smoke detectors MUST be replaced when they are 10 years old.

Under current legislation, the owners corporation is responsible for repairing AND maintaining smoke alarms IF the smoke alarms are hard-wired to the lot's electricity supply with a backup battery or connected to a common fire board or panel.

However, if the smoke detectors are stand alone and battery-operated, then the lot owner (or tenant) is responsible for checking and changing the battery. Ultimately, the owners corporation is responsible for replacing or repairing a faulty smoke alarm.

The law is that repair and maintenance of smoke alarms are an owner’s responsibility unless it was installed at time of construction (which is the case in SP52948).

Attachment "SP52948-examples-of-smoke-detectors-in-units-and-townhouses-replaced-from-common-funds.pdf".

e) There are number of problems with lighting being switched off near townhouses before daylight, undisclosed gate behind townhouses that allowed open access to complex without being detected, unsafe fences, and more.

Attachment "SP52948-serious-problems-behind-townhouses-that-Waratah-Strata-Management-hide-from-owners-May2018.pdf".

f) Multiple versions of accounting data for FY 2018 and attempts by Waratah Strata Management to avoid collecting levies for second gas connections properly. This also affects the collection of GST for Australian Taxation Office.

It is duty of the strata manger to enforce unpaid levies and charge 10% simple interest for all overdue payments - that is part of their job at no extra costs.

Attachment "SP52948-dubious-utility-expenses-and-financial-accounting-data-generated-by-Waratah-Strata-Management-for-FY2018-29May2019.pdf".

In September 2017 in the case of McElwaine v The Owners – SP 75975 [2017] NSWCA 2 the NSW Supreme Court of Appeal decided that in addition to the rights of the Lot owner to obtain appropriate orders that the Owners Corporation maintain the common property in accordance with Section 62 of the SSMA 1996 [which is similar to Section 106 of the SSMA 2015] a Lot owner who suffers damages as a result the default by the Owners Corporation is entitled to common law damages.

In that case McElwaine was entitled to damages in nuisance. Similarly damages will be awarded against an Owners Corporation due to the negligence of the Owners Corporation in the appropriate case.

g) As part of paid document search on 31 May 2019, Lot 158 requested these documents that must be in strata files. Attachment "SP52948-document-search-partial-listing-of-files-required-on-31May2019.pdf".

Among the other issues: As per Clause 21 of the Strata Schemes Management Regulations 2016 that the accounts and financial statements of the owners corporation with budget above $250,000.00 must be audited before presentation at AGM in accordance with Section 95 of the Strata Schemes Management Act 2015, and based on evidence that number of serious financial errors were found after the AGM 2017 and 2018, it is requested to provide contact details of the Auditor for SP52948 for FY 2017 and 2018 and the audited files (they were not provided to owners before AGMs).

Secretary of the Executive Committee as per SSMA 2015 Section 43(f) must respond to the document search request and comply with provision of the files.

Regards,