An OC fighting fund and resident’s action group

An example of an owners corporation fighting proposed developments on nearby land that may affect the amenity of lot owners.

Concerned that proposed nearby inner-city developments would affect the rights of lot owners in their development, an OC Committee sought a special resolution of members to enable the Committee to act as a ‘resident’s action group’ to scrutinise planning permit applications and make objections to them. A special resolution was required because this is not a function of the Committee specified in the OC Act.

The owners of a lot challenged the actions of the OC Committee and the OC. In deciding the issues the Tribunal, in Mahon v Owners Corporation PS349276K [2012] VCAT 1605 upheld the special resolution authorising the committee to provide the service to scrutinise and object to development applications. A special levy on lot owners to create a ‘fighting fund against developments’ was also held to be valid.

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