Mascot Towers Update – Special Levy

Cracking in Sydney’s Mascot Towers building saw residents of 132 apartments evacuated in mid-June this year. It has now been 3 months since the evacuation and residents are still unsure when they will return to their homes.

A motion to raise a $7 million special levy for stage one of the rectification works was passed in late August. However, 35 per cent of owners have expressed that they are unable to afford the circa $60,000 which is their share of the overall levy. If the $7 million special levy wasn’t enough, homeowners will be required to pay GST on top of this amount.

Stage one works on the building are due to begin on September 30. However, the strata committee has voiced that the contract is unable to be signed due to the shortfall in funds. 

Financial assistance

The apartment owners of Mascot Towers have asked the New South Wales government for financial assistance “so rectification works can commence, and the building does not deteriorate to a point where it is commercially unviable to fix.”

The Owners Corporation stressed that if the building is left for too long, the condition will become worse and become more costly.

In a letter sent to NSW Better Regulation Minister Kevin Anderson on Monday, comments were included from owners expressing the struggles they are facing in their financial situation.  

Commissioner concerns

NSW building Commissioner David Chandler expressed his concerns in front of a budget estimates hearing on Monday.

“They are not in a position to start the work any time soon,” Mr Chandler claimed.

“My concern is that they may be induced to start work on something that actually turns out to be not viable,” said Mr Chandler.

What is next for Mascot Towers homeowners?

Residents are no closer to finding out when they will be permitted to return to their homes. 

In the meantime, the NSW State Government is continuing to provide a no-interest loan to residents of up to $400 per night to cover the cost of temporary accommodation.

For areas of common property, SSKB recommend that Bodies Corporate obtain quotations for a building defect report as soon as possible, particularly if you are within the defect liability period. As well as this report, it is important that your Committee and/or Building Manager is doing a monthly walk around to identify any possible defects. Holding regular committee meetings where any concerns can be discussed.

Are you with a Strata Manager who has the experience to deal with concerns of residents and the Committee? Employing experienced Strata and Building Management Services can assist in stopping major issues before they occur.

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