Parklands Security Estate Homeowners' Association (RF) NPC v Livhuhani Matidza

The applicant, Parklands Security Estate Homeowners' Association (RF) NPC (PSEHOA), is a residential community scheme and homeowners' association established as a non-profit organisation under a memorandum of incorporation (MOI). The respondent, Livhuhani Matidza, is the owner of Unit 27 (Erf 2184) in the scheme and became a compulsory member of the association by virtue of ownership. In terms of the MOI, members are obliged to pay monthly levy contributions towards the administration and expenses of the scheme. PSEHOA alleged that the respondent had fallen into arrears in the amount of R3 674.13, including interest at 2% per month. The respondent did not respond to the section 43 notice issued by CSOS, nor to subsequent opportunities to file a response. The applicant sought an order under section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of the outstanding levies.

• Whether the Community Schemes Ombud Service had jurisdiction under sections 38 and 39(1)(e) of the CSOS Act to determine the dispute.
• Whether the respondent, as owner and compulsory member of the homeowners' association, was liable under the MOI to pay levy contributions.
• Whether the applicant had proved on a balance of probabilities that the respondent owed arrear levies in the amount claimed.
• Whether an adjudication order for payment of arrear levies should be granted in the absence of any answering version from the respondent.
• Whether a costs order should be made.

The application was granted. The respondent was ordered to pay arrear levy contributions to the applicant in the amount of R3 674.13 on or before 31 March 2024. No order as to costs was made.

An owner within a homeowners' association who becomes a compulsory member by virtue of ownership is bound by the association's MOI and rules, including the obligation to pay levies. Where a community scheme proves on a balance of probabilities that arrear levies are due, and the dispute falls within section 39(1)(e) of the CSOS Act, CSOS may grant an adjudication order compelling payment. In the absence of a contrary version from the respondent, the applicant's properly supported evidence may suffice to establish the debt.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by undermining maintenance, insurance, security, and the collective interests of owners. The adjudicator also remarked generally that parties in section 54 adjudications are usually expected to bear their own costs, with costs orders being more typical in circumstances contemplated by section 53 of the CSOS Act.

The decision illustrates the CSOS's role in enforcing levy obligations within community schemes and confirms that homeowners' associations may obtain adjudication orders for unpaid levies under section 39(1)(e) of the CSOS Act. It reinforces the principle that membership obligations in a homeowners' association are binding and contractual in nature, and that non-payment of levies threatens the financial sustainability of community schemes. The matter is also significant as an example of relief being granted on the papers where a respondent fails to participate.