Long-term maintenance contingency fund established
23 March 2026
Freemans Park owners have agreed to transfer all funds from the long-term maintenance fund into a more flexible long-term maintenance contingency fund, and to then close the former fund.
The change reduces administrative constraints and improves cashflow management, while still setting aside funds for long-term maintenance and reviewing them annually.
New Zealand legislation requires that money raised for the long-term maintenance fund (LTMF) be kept separate and spent only on items in the long-term maintenance plan, subject to strict controls.
LTMF rules create administrative complexity, restrict the Body Corporate’s ability to manage cashflow, and often lead to higher levies than necessary.
As a result, many large developments instead use a long-term maintenance contingency fund, which allows funds to be ring-fenced for long-term maintenance without the statutory constraints of the LTMF.
Earlier this year, the Body Corporate Committee established a long-term maintenance contingency fund.
After discussion at the Extraordinary General Meeting on 23 March 2026, Freemans Park owners agreed to transfer the full balance of the long-term maintenance fund into the long-term maintenance contingency fund, and close the former fund.
The decision to keep funds for the long-term maintenance plan in a contingency fund will be reviewed each year, as required by legislation.