New Draft Residential (Land Lease) Communities Regulation 2014 in NSW

The Residential (Land Lease) Communities Regulation 2014 (the Regulation) will be made under the Residential (Land Lease) Communities Act 2013 (the Act), which was assented by the NSW Parliament on 20 November 2013. The Act will commence when there are appropriate regulations to implement its introduction, facilitating the current review and submissions to the draft regulation.

Background to the Act

The Act sets out new legislative arrangements for the regulation of the residential land lease community sector. This was an election commitment of the  NSW Government and the legislative framework was developed following a  comprehensive review undertaken by NSW Fair Trading from 2011 to 2013. The new Act features over 100 reforms to the existing laws. These laws will help reduce conflicts and remove confusion while promoting growth in the industry and protecting the interests of residents.

Some of the main reforms in the new Act include:

• new arrangements for disclosure of information to prospective home owners
• mandatory education requirements for all new operators
• new rules of conduct for operators and sanctions for non-compliance
• a community-based approach to dealing with increases to site fees
• improved processes for making, amending and enforcing community rules
• new rules to clarify and streamline the process for owners who wish to sell their homes on-site.

The Draft Regulation

The Regulation is necessary because the Act introduces significant changes through a new legislative framework for the residential land lease community sector. Therefore, the current regulatory and administrative arrangements are no longer in-line with NSW Government policy as expressed in the Act.

The Regulation will provide for:

• the standard form of site agreement and various prohibited terms;
• the standard form of site condition report;
• powers for disciplinary and enforcement actions against operators to be published on the public register;
• protections for residents relating to utility service availability charges;
• penalty notice offices and accompanying penalty amounts; and
• other matters which further clarify and ensure the effective operation of the Act.

Consultation and Submissions

Formal Submissions on the repeal of the Residential Parks Act 1998 (NSW) and related administrative measures contained in the draft regulation are due to the NSW Department of Fair Trading by 30 January 2015.

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[Draft] Residential (Land Lease) Communities Regulation 2014 as reproduced on TimeBase LawOne