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Body Corporate & community management

There are approximately 350 community schemes and 900 neighbourhood schemes located throughout New South Wales. Community schemes range from rural subdivisions to large closed communities with private roads, high security and extensive recreational facilities such as marinas and golf courses.

Community schemes are governed by the Community Land Development Act 1989, which enables the subdivision and development of land with shared property. The Act deals with plan requirements, plan registration, changes to the subdivision and dealings with the lots.

Community schemes provide for low, medium or high density housing, leisure and retail facilities and other community uses. It involves the horizontal subdivision of land into lots and common property.

The lots usually comprise building parcels, although it is common for the buildings to be constructed on the proposed lots before the plan is registered. The common property usually comprises access roads, open space and recreational facilities.

The Community Land Development Act and the Community Land Management Act has been based on strata schemes legislation, therefore many similarities exist.

Community, Precinct and Neighbourhood Associations are similar to Bodies Corporate, they are controlling bodies established to administer the obligations of the Community Land Management Act. The Associations are made up of owners of lots in the Neighbourhood Schemes comprising the overall Community Scheme.

A community, precinct or neighbourhood association commences when a community plan, precinct plan or neighbourhood plan is registered by the Department of Lands. Usually the builder or developer will be the only member of a community association in the initial stage. As lots are sold or again subdivided, membership increases.

Part of the plan includes a mandatory document called a management statement. The statement includes the particular rules associated with the participation in the scheme and the by-laws attached to the Association property. The management statement is registered with the Office of Land and Property Information NSW.

The management statement must include by-laws plans and other particulars about the following:-

a) the location, control, management, use and maintenance of any
    part of the association property that is an open access way or a
    private access way
b) the control, management, use and maintenance of any other part
    of the association property, including any special facilities
    provided on that property
c) matters affecting providing and paying for internal fencing
d) the storage and collection of garbage
e) the maintenance of water, sewerage, drainage, gas, electricity,
    telephone and other services
f) insurance of the association property
g) the executive committee, the office bearers of the committee and
    their functions
h) executive committee meetings
i) voting on motions by the executive committee otherwise than at a
    meeting of the committee
j) keeping records of executive committee proceedings.

As you can see from the above, the management statement is often a large and complicated document. The statement may also include optional by-laws, plans and other particulars regarding behaviour, preserving the essence of a development and architectural or landscape guidelines.

Although the legislation is similar to strata schemes, the management of a community, precinct or neighbourhood association is far more complex. It is recommended that a qualified and competent manager be appointed who is experienced and specially trained in the legislation governing community schemes.

The Strata Agency would welcome the opportunity to discuss the management of your scheme, or if you would like an obligation free management quotation please contact us