On July 1, further changes from the WEG Amendment 2022 came into force.
The 2022 WEG amendments have now also brought changes to reserves. In addition to defining the costs to be taken into account when determining the reserve contributions, the legislator has also set a lower limit for the formation of reserves in the new Section 31 of the WEG.
From July 1, 2022, the minimum amount for condominium owners will be € 0.90 per m² of usable space. Until July 1, 2022, property managers were obliged to set aside an “appropriate” reserve. This often meant that the reserves for larger expenses were too low and the condominium owners had to raise a very high one-off amount.
Exceptions
In some cases, the reserve may be less than the 90 cents per m². This is the case if a total amount equal to the minimum amount is not necessary in the following cases:
- when particularly high reserves are available;
- due to a recent thorough renovation of the building
- or if the condominium owners have contractually assumed the maintenance obligation (only applies to terraced or detached houses).
It should be noted that if it is possible to fall below the minimum reserve, an appropriate reserve must be formed in any case, based on the development of expenses over the next ten years.
Determination of a minimum endowment
However, even the minimum reserve amount of €0.90 per m² of usable space prescribed by law will in many cases hardly be sufficient to cover the necessary refurbishment measures. Old buildings without extraordinarily high reserves or without having been renovated not too long ago are particularly affected. The administrator can and should therefore prescribe higher reserve amounts if it is already apparent that necessary maintenance work or improvements will be required and no sufficient reserve has been set aside to date.
Valorization of the minimum amount
The amount of the reserves is subject to statutory valorization. The amount decreases or increases every second year and is adjusted to the consumer price index. The Austrian Federal Economic Chamber must publish the new amount by the end of November of the respective previous year at the latest. The first adjustment of the (new) reserves will take place on January 1, 2024.