Boardwalk Heights Homeowners Association v Boitumelo Sefolosha

The applicant, Boardwalk Heights Homeowners Association, is a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011. The respondent, Boitumelo Sefolosha, is the registered owner of unit 310 in the scheme. The HOA alleged that despite repeated written demands, the respondent failed to pay monthly levies and ancillary charges due under the scheme’s Memorandum of Incorporation. As at 11 January 2024, the HOA claimed arrears of R4 768.05, supported by a levy statement. The respondent did not file any response or further submissions to CSOS. The matter was referred to adjudication on the papers in terms of the CSOS Act and the applicable Practice Directive.

• Whether the respondent, as owner and member of the HOA, was liable to pay the outstanding levies and ancillary charges claimed by the applicant.
• Whether the applicant had proved on a balance of probabilities that the respondent was indebted in the amount of R4 768.05.
• Whether relief under section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 should be granted for payment of the outstanding contribution or other amount.
• What payment terms should be ordered in respect of the arrear amount.

The application was granted. The respondent was declared indebted to the applicant in the amount of R4 768.05 for levies and ancillary charges as at 11 January 2024. The respondent was ordered to pay that amount in four equal monthly instalments of R1 192.01, with the first payment due on or before 1 March 2024 and the remaining three instalments due on the first day of each succeeding month. No interest would accrue within the allowed payment period, the order did not affect ongoing monthly levies and ancillary payments, the full balance would become immediately due upon default, and there was no order as to costs.

A registered owner within a homeowners association is bound by the scheme’s Memorandum of Incorporation and rules, including the obligation to pay levies and ancillary charges. Where the association proves, on a balance of probabilities, the existence and amount of arrear levies through its records and the owner provides no contrary evidence, an adjudicator may grant relief under section 39(1)(e) of the CSOS Act ordering payment of the outstanding amount.

The adjudicator observed that levies are the 'lifeblood' of a homeowners association, that the directors cannot perform their functions without owners’ contributions, and that defaulting owners are effectively subsidised by those who pay conscientiously. These remarks explain the practical importance of levy enforcement but were not themselves necessary to establish the respondent’s liability. The adjudicator also noted the right of appeal to the High Court under section 57 of the CSOS Act on a question of law only.

This adjudication illustrates the enforcement role of the CSOS in levy disputes within community schemes. It confirms that homeowners associations may obtain statutory relief for unpaid levies and ancillary charges on paper-based adjudication where the documentary proof establishes the debt and the owner does not dispute it. The decision also reflects the South African principle that scheme members are contractually bound by the governance documents of the community scheme and must contribute levies necessary for the scheme’s administration.