Tami Phillips obo Pioneer Valley Homeowners Association v Abulele Bekiswa

Tami Phillips of Lime Property Management brought an application on behalf of the executive committee of Pioneer Valley Homeowners Association (PVHOA), a residential community scheme situated in Discovery Drive, Rivergate, Cape Town. The respondent, Abulele Bekiswa, is the owner of Erf 787, 8 Lyra Street, within the scheme and became a compulsory member of the association by virtue of ownership. Under the PVHOA Constitution, members are obliged to pay monthly levy contributions toward the administration of the scheme. PVHOA alleged that as at 7 March 2023 the respondent was in arrears in the amount of R1114.94, inclusive of interest. The respondent did not respond to the section 43 notice issued by CSOS on 17 May 2023, nor to subsequent opportunities to make submissions. A certificate of non-resolution was issued on 30 June 2023 and the matter proceeded to adjudication on the papers.

• Whether the Community Schemes Ombud Service had jurisdiction under sections 38 and 39 of the CSOS Act to determine the dispute
• Whether the respondent, as an owner and compulsory member of the homeowners association, was liable to pay levy contributions in terms of the PVHOA Constitution
• Whether the applicant proved on a balance of probabilities that the respondent owed arrear levies and interest in the amount of R1114.94
• Whether an order should be granted under section 39(1)(e) of the CSOS Act for payment of the arrear amount
• Whether any costs order should be made

The application was granted. The respondent was ordered to pay arrear levy contributions in the amount of R1114.94 within 10 days of the issuing of the order. No order as to costs was made.

An owner within a homeowners association that qualifies as a community scheme is bound by the association's constitution, including compulsory levy obligations arising from membership by ownership. Where the association proves arrear levies on a balance of probabilities and the respondent provides no rebuttal, CSOS may grant an order under section 39(1)(e) of the CSOS Act directing payment of the outstanding contributions. The constitution and rules of the association create a contractual relationship between the association and its members.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes because they fund maintenance, repair, insurance, security and other common expenses, and that non-payment can destabilise a scheme and prejudice all owners. The adjudicator also remarked that complaints about a developer's workmanship cannot justify withholding levy payments. These observations were explanatory and not strictly necessary to the dispositive finding on the proved arrears.

The decision reinforces the enforceability of levy obligations in homeowners associations regulated as community schemes under the CSOS Act. It confirms that a homeowners association may obtain relief through CSOS for unpaid levies under section 39(1)(e), and that an owner's membership-based obligations under the scheme constitution are contractually binding. The case also illustrates CSOS's paper-based adjudication process where a respondent fails to participate.