Strata Building Upgrade Finance

We have been receiving interest from owner corporations and property managers requesting suitable finance for strata owned buildings. Strata owned buildings are able to access both EUA and Sustainable Melbourne Fund’s direct investment finance to upgrade building and improve efficiency, although EUA do require agreement from all lot owners. We are able to lend to both commercial and residential strata buildings, although we are only able to provide finance for ‘common area upgrades’ in residential buildings.

Our finance options are suitable for buildings with equipment that is coming to end of its useful life such as heating, cooling and ventilation (HVAC), boilers, chillers, upgrades of ducting, common area and car park lighting upgrades, lift upgrades and the installation of solar or green roofs. Below we’ve identified some of the important steps an owners corporation will need address.

For strata titled buildings the owners corporation will need to complete three steps according to Owners Corporations Act 2006, section 25:

  1. Table a motion at the Owners Corporation meeting and pass the resolution to undertake the  proposed upgrades to your building,
  2. Table a motion at the same Owners Corporation meeting and pass resolution to obtain funding from Sustainable Melbourne Fund to complete the upgrades. Owners Corporations have the power to borrow money and levy the repayment charges for common area improvements onto lot owners. A 75% majority will be required to facilitate the loan. In the case of default, the Owner Corporation would be liable to recover the fees through the appropriate channels under the relevant legislation. and
  3. Complete a Sustainable Melbourne Fund investment application form.

Sustainable Melbourne Fund has previously invested into strata buildings, and in one case provided a $440,000 loan for the upgrade and consolidation of old chiller units resulting in a $16,000 p.a, saving and an annual saving of 285 tonnes of carbon.

Finally, we can boost or match private and public sector funding, such as the City Of Melbourne Smart Blocks rebate program and Sustainability Victoria’s Office Building $20,000 - $150,000 program. To discuss specific details of a project you may have in mind please contact Michael Lambden on (03) 9658 8740 or michael.lambden@sustainableaustraliafund.com.au.

 

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