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March News Letter 2017







Community Schemes Ombud Service

On 7 October 2016, in terms of the gazetted proclamation and the publication of the regulations, the Community Schemes Ombud
Service (CSOS) came into operation.

The Community Schemes Ombud Service mandate is to provide a dispute resolution service, to ensure quality and regulate all
schemes’ governance documentation, and to ensure that there is awareness and education provided to community schemes.

The Community Schemes Ombud Service (CSOS) was established in terms of the Community Scheme Ombud Service Act,
2011 [Act 9 of 2011) to regulate the conduct of parties within community schemes and to ensure their good governance.

The CSOS is classified as a Schedule 3A public entity in terms of the Public Finance Management Act and its executive authority
is vested in the Minister of Human Settlements.

In terms of section 38 of the CSOS Act, any person in a community scheme may make an application to the CSOS, if such a
person is a party to or is materially affected by a dispute, for mediation and adjudication.

Effective 1st January 2017, all owners must pay monthly CSOS levies to the BMVHOA. The BMVHOA then pays these levies
over to the CSOS on a quarterly basis. Outstanding levies will bear interest at a rate prescribed by the National Credit Act,
2005 (Act No. 34 of 2005) as amended.

CSOS levy calculation: 2% on the amount of monthly levy charged by the BMVHOA that exceeds R500.00 per month.

  • Blue Mountain Village and Gardens: R720 – R500 = R220 x 2% = R4.40 per month
  • Blue Mountain Gardens Duets: R520 – R500 = R20 x 2% = R0.40 per month
  • Blue Mountain Carenet Retirement Estate: R850 – R500 = R350 x 2% = R7.00 per month

To minimize further inconvenience, the decision was taken to invoice Homeowners on an annual basis, effective 1st January 2017.

Please visit our website and click on the Community Schemes Ombud Service link or visit their site to familiarize yourself with the impending levy addition.

Please do not hesitate to contact us should you require additional information