Loadshedding, water security put trustees under added pressure in community schemes

Governing community schemes has become increasingly challenging for trustees, who are under pressure to comply with complex legislation, overcome challenges like non-payment, and deal with a growing number of disputes over issues such as alternative energy and water backup systems.
 
This is according to Thembelihle Mbatha, the Acting Chief Ombud and Chief Financial Officer of the Community Schemes Ombud Service (CSOS), who was speaking ahead of the first CSOS Indaba for stakeholders to be held in Johannesburg on 3-4 August.
 
Mbatha, who delivered talks on the role of CSOS and host a breakaway session on governance and financial management, said many common challenges in community schemes can be attributed to poor governance. Good governance starts with registering with CSOS, she noted: with less than half the estimated 70,000+ community schemes in the country on their register, CSOS is stepping up efforts to enforce registration, with the support of the NPA.
 
Good governance minimises disputes
 
Good governance also minimises disputes, she said. “Many of the disputes escalated to CSOS relate to poor financial management – for example, homeowners don’t know how levies are calculated, there’s no transparency, and their property values are impacted,” she said. However, she notes that this is not necessarily due to deliberate mismanagement, but rather because many schemes lack the necessary audit and financial management skills among their Trustees.
 
Another common issue arising in recent months is schemes changing their architectural rules around solar panels, generators and water tanks, she said. “The changes can lead to disputes, which could have been avoided if they followed the proper process. Because of load shedding, Trustees are now also expected to make these big financial investments such as generators and inverters for the complex. They are faced with hefty financial decisions on behalf of owners.”   
 
Trustees unaware that support is available
 
Mbatha said many Trustees are unaware that support is available. “We need to ramp up education and training – hence the start of our Indabas. CSOS is not just for dispute resolution – we are also a promoter of good governance. As part of our mandate, we do quality assurance on the scheme governance rules. One of our pillars is education and training – and we can even go to a scheme to deliver training as part of our mandate.”
 
To further support Trustees, CSOS worked with FICA to develop a template for good governance, complete with FAQs.
CSOS is also expanding its footprint countrywide to make in-person support more accessible. At the Indaba, CSOS case management officers set up a help desk, where homeowners and stakeholders were able to discuss burning issues and register cases if necessary.
 
The aims of the CSOS Indaba were to help Trustees and Managing Agents strengthen community scheme governance, administration and management, outline common challenges and solutions, and best practice.