Exorbitant Increase in Levies
- Sep 5, 2022
- 2 min read
Photo: Isaac Smith (Unsplash)
Several Homeowners (and tenants who are indirectly impacted) have recently asked Pecanwood Watch to compare the unprecedented increase in levies over the past year with earlier levy increases. A snapshot levy calculation was done for the same period over the last 3 years and this is what it looks like.
Date | 2020/09/01 | 2021/09/01 | 2022/09/01 |
Levy | R 4274.00 | R4504.00 | R5108.00 |
Special Levy | | | R2200.00 |
VAT | 641.00 | 676.00 | 1096 |
Total | R4915.00 | R5180.00 | R8404.00 |
>60% average YoY Increase over the last 3 years
17% average YoY Increase over the last 3 years if the special levy is excluded. However, as per past practice, the HOA has automatically incorporated the special levy into the normal levy after the period of the special levy has expired. It is expected that the PHOA and Board of Directors will deviously try and do the same this time around.
In addition, as of May this year, homeowners selling their homes are liable to hand over 1% of the selling price of their homes + VAT, to the Pecanwood HOA. This was implemented earlier this year despite the fact that the Chairman of the Board, at the last AGM, gave the assurance that this will not be implemented before the MOI is changed.
To this date, no proper disclosure was made available as to exactly which projects justify the current special levy being charged. A cumbersome preliminary spreadsheet was presented at a Residents’ Meeting and a subsequent email was sent, however the following information is ominously absent:
1. Cost benefit analysis
2. Timeline for implementation of each project
3. Evidence of proper services & asset costing
4. Vendor selection process, etc
5. Together with the usual prudent way of running an organization according to good governance.
It is several homeowners’ views that these numbers were conjured up without any diligence being performed and homeowners are now being charged an exorbitant levy for a ‘thumb sucked’ amount.
We re-iterate the call for homeowners to:
1. Boycott the special levy, whilst making the reason for your objection known to the PHOA.
2. Start looking into, especially, the financial affairs of the running of this estate and question the HOA as they are obliged to make operational details available to homeowners.
3. Join the group of homeowners’ class action suit in order to make sure that you can continue to afford living in our beautiful estate and that we do not experience the same tragedy as our Country experiences as a result of its leadership. Fill in the attached form if you would like to join the other residents in the Class Action Suit, alternatively if you do not have access to a computer, send us an email with your name, address, and cellular number with a short sentence confirming that you wish to join the class action.
Lastly, if you choose to be a spectator whilst the levies grow exponentially without any accountability on the part of the PHOA Board, you will have only yourself to blame when outrageously unaffordable levies force you to leave our beautiful Estate.
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