Requirement to have a long-term maintenance plan

A body corporate previously needed to have a long-term maintenance (LTM) plan covering a period of at least 10 years, and needed to review the LTM plan every 3 years. Changes to the Unit Titles Act now require large unit title developments (10 or more principal units) to establish a LTM plan covering a period of 30 years from the date of the plan’s commencement or last review. As well as having their plan reviewed every 3 years, it must be reviewed as soon as is practicable after becoming aware of any matter that will have a material impact on the LTM plan.

The purpose of the LTM plan is to:

• summarise the current state of the common property
• identify future maintenance requirements and estimate the costs involved
• support the establishment and management of long-term maintenance funds
• provide a basis for levying unit owners
• provide ongoing guidance to the body corporate to assist it in making its annual maintenance decisions.

Long-term maintenance plans for large unit title developments

The body corporate of a large unit title development must, unless it decides by special resolution not to do so, consult with building or other suitably qualified professionals, as necessary and appropriate.

Larger developments will need to ensure their LTM plans meet the new requirements. Any existing LTM plans, or plans that are under review, will need to ensure they have been updated to meet the new updated requirements now in effect.

Long term maintenance plan (complex)
Long term maintenance plan (small bodies corporate)

Funding sources of the LTM plan

The LTM plan must specify the sources of funding for the LTM plan.

The long-term maintenance fund

A body corporate will need to establish a long-term maintenance (LTM) fund unless it decides not to by special resolution. If a body corporate decides not to establish a LTM fund, it will need to review this decision annually and may later choose to establish a LTM fund by another special resolution.

The funds in the LTM fund can only be applied towards spending relating to the LTM plan.

A body corporate will be able to determine the level of funds held in the LTM fund. An LTM fund will not need to fully cover the costs anticipated in the LTM plan.

Length of LTM plans

All body corporates must have a plan that covers at least 10 years. Large unit title developments (10 or more units) must have a LTM plan covering a period of 30 years from the date of the last review. For these LTM plans, there must be detailed costings for the first 10 years of anticipated maintenance, and 20 years of high-level maintenance planning, without detailed costings.

Review of LTM plans

For large unit title developments, the LTM plan must be reviewed by the body corporate every 3 years, or as soon as is practical after becoming aware of any matter that will have a material impact on the LTM plan.

Funding sources

The LTM plan must specify the sources of funding for the LTM plan.