IMAGES: SIMBITHI ECO ESTATE AND COUNTRY CLUB
expertise in budget preparation and review. A
developer who lacks the necessary expertise
should seek professional assistance and
organize the association as a NPC or
common law Association.RCC encourages
developers to formulate the association
budget on the basis of fiduciary duty and
responsibility, and to ensure that resultant
levies are not adjusted or amended as a
result of marketing or sales considerations,
but are adequate to ensure that the initial
budget and capital reserve analysis reflect
not only annual operating considerations,
but also provide for the initial funding and
investment of a capital reserve account
established for future repair and replacement
of capital facilities and equipment.
20.Government legislation
in community associations
The background
Due to the growth and popularity of the
community association form of homeownership,
there will always be interest and activity
at a national government level regarding
legislative and regulatory proposals to control
and oversee this industry. The sectional title
industry is regulated through such national
legislation, and an ombudsman service has
been legislated to provide a dispute resolution
and management oversight service to
property owners in both the sectional title and
the broader association-managed residential
industry. Due to the significant differences
between the sectional title and associationmanaged residential industries, the members
of the Association of Residential Communities
have established the Residential Community
Council to act as a self-regulatory body on
their behalf, and to intercede with national
government to ensure that any legislation
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passed is appropriate to and for the industry.
Local legislation concerning the creation
or governance of community associations
is seen as antithetical to a balanced, wellconsidered, broad-based assessment of all
issues and interests affecting community
associations on a national level.
The policy
RCC supports effective national legislation, or
revisions to existing statutes or common law,
when it is deemed necessary for consumer
protection, conversion limitations, proper
establishment of community management
associations,
protection
for
ongoing
community operations, or to ensure that
community association housing is developed
and maintained consistently with legitimate
public policy objectives and standards
that protect individual consumers, while
balancing the legitimate rights of the property
development industry.
RCC objects to local legislation which is not
aligned with national legislation on the industry,
or is not aligned with common practice or
commonly held policies on any issues which
affect the industry. RCC supports the principle
of self-governance and self-regulation, to
ensure that government at all levels recognises
the ability of the industry to set standards and
ensure member compliance.
RCC supports the principle of advocacy for
appropriate legislation on industry matters,
and to that end supports the establishment
and maintenance of democratically formed
working committees and advocacy structures
which will lobby government at all levels on the
passing of appropriate legislation concerning
the industry.