What happens if there are insufficient funds in the provisions fund?
Each year an amount of the service charge is put aside for future planned repairs and maintenance (e.g. external painting) or any emergencies. Both the costs of this and the maintenance cycle is determined by ECA and put to the residents for approval at the Annual Residents’ Meeting. With over 25 years’ experience ECA have a very good idea of when work needs to be done and how much to put aside for it. It is unlikely that anything will be required as part of planned maintenance for which there will be insufficient funds in the accounts. However should there not be sufficient funds ECA are bound by legislation to seek residents’ approval for any expenditure that totals more than an aggregate 250 per property.
