Albertsdal Leopards Rest Homeowners Association v A.M. Phewa

The applicant, Albertsdal Leopards Rest Homeowners Association, a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act), brought an application against the respondent, A.M. Phewa, the registered owner of Unit 6479, Leopard's Rest, Alberton. The association alleged that as at 1 November 2023 the respondent owed R3,177.35 in arrear levies. The HOA relied on its Memorandum of Incorporation and conduct rules, which require members/owners to pay monthly levies in advance on the first day of each month and permit enforcement of arrears and penalties. The applicant stated that repeated correspondence had been sent demanding payment and that non-payment by homeowners adversely affected the financial management of the estate. The respondent did not file written submissions despite being requested to do so. The matter proceeded on the papers before the CSOS adjudicator.

• Whether the respondent, as a registered owner and member of the homeowners association, was liable to pay the arrear levies claimed by the applicant.
• Whether section 39(1)(e) of the CSOS Act empowered the adjudicator to order payment of the arrear levies.
• Whether the applicant had established, on a balance of probabilities, a lawful basis under the HOA's governance documents for recovery of the amount of R3,177.35.
• What payment terms should be imposed in granting relief, including whether instalments should be allowed and whether penalties should be suspended during the instalment period.

The application was granted. The adjudicator ordered that: (1) the respondent is indebted to the applicant in the amount of R3,177.35 for arrear levies; (2) the respondent must pay the amount in three equal monthly instalments of R1,059.11; (3) the first payment must be made within 30 days of delivery of the order and the remaining two payments on the first day of each succeeding month; (4) these payments are additional to the respondent's ongoing monthly levy obligations; (5) no penalties will accrue during the permitted instalment period; (6) if the respondent defaults on any instalment, the full outstanding balance becomes immediately due and payable and applicable penalties become operative from the date of breach; and (7) no order as to costs was made.

A homeowners association that is a community scheme under the CSOS Act is entitled, under section 39(1)(e), to obtain an adjudication order for payment of arrear levies where its constitutive documents and conduct rules lawfully impose levy obligations on members. The liability of an owner/member to pay levies arises from the association's governing instruments, and where the applicant proves the arrears on a balance of probabilities, the adjudicator may order payment and regulate the manner of payment.

The adjudicator remarked that the HOA cannot perform its functions and duties in the absence of funds from owners, underscoring the practical importance of levy collection to the management of a community scheme. The order's instalment structure and temporary suspension of penalties during the payment period were discretionary case-management measures rather than statements of general legal principle.

The matter is significant as a practical CSOS levy-recovery determination confirming that homeowners associations may enforce levy obligations through the CSOS process under section 39(1)(e) of the CSOS Act. It reinforces that owners in community schemes are bound by the scheme's constitutive documents, including MOIs and conduct rules, and that levy obligations are enforceable even where the respondent does not participate. The adjudication also illustrates the CSOS's remedial flexibility in structuring payment by instalments while protecting the scheme's financial viability.