The Directors of Route 82 Homeowners' Association v T Washoma

The applicant, the directors of Route 82 Homeowners' Association (R82HOA), is the governing association of a residential community scheme established under the Companies Act 71 of 2008 and regulated by its memorandum of incorporation (MOI) and conduct rules. The respondent, T Washoma, is the registered owner of unit 116 in the scheme and became a compulsory member of the association by virtue of ownership. R82HOA alleged that the respondent failed to pay monthly levy contributions due to the association and was in arrears in the amount of R7 120.67, including interest calculated at 1.25% per month, as at the date the application was lodged on 7 June 2023. The respondent did not respond to the section 43 notice issued by CSOS on 18 July 2023, nor to subsequent opportunities to answer the claim. After a certificate of non-resolution was issued on 29 September 2023, the matter proceeded to adjudication on the papers under section 54 of the CSOS Act.

• Whether CSOS had jurisdiction under section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 to order payment of arrear levies.
• Whether the respondent, as owner and member of the homeowners' association, was contractually and legally obliged under the MOI and conduct rules to pay levy contributions.
• Whether the applicant had proved on a balance of probabilities that the respondent owed arrear levy contributions in the amount claimed.
• Whether any costs order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions of R7 120.67 to the applicant on or before 29 February 2024. No order as to costs was made.

A registered owner in a homeowners' association, by virtue of compulsory membership under the association's MOI and rules, is legally obliged to pay levies validly raised by the association. Where the association proves the indebtedness on a balance of probabilities and the respondent offers no answering version, CSOS may grant relief under section 39(1)(e) of the CSOS Act ordering payment of arrear contributions. The governing documents of the association constitute a binding contractual framework between the association and its members.

The adjudicator observed that non-payment of levies can seriously destabilise a community scheme because levies are 'the lifeblood of shared living schemes' and are necessary for maintenance, insurance, security, repair and upkeep. The adjudicator also commented generally that costs orders are not usually made in section 54 adjudications unless circumstances akin to those contemplated in section 53 are present.

This decision reinforces the enforceability of levy obligations in community schemes through the CSOS dispute-resolution framework. It confirms that homeowners' associations may use section 39(1)(e) of the CSOS Act to recover arrear levies from members and underscores the importance of levy payments to the financial sustainability of shared living schemes. It also reflects the accepted South African position that an association's constitutional documents create binding contractual obligations between the association and its members.