Discussion paper on regulations to support the Unit Titles Act 2010: Part B - Possible regulations
Part B includes:
This part of the discussion document seeks your opinion on whether the following issues require regulation in addition to consumer guidance and education. The alternative to regulation would be to only offer direction through this consumer guidance and education. This guidance could include booklets, brochures and information on the Department’s website.
The Act contains a list of regulation-making powers under section 217. Each section in this part of the discussion document identifies which regulation-making power will cover any regulations proposed.
Section 5: Long-term maintenance plan
5.1 Long-term maintenance plan (section 116 of the Act)
The Act requires the body corporate to establish and maintain a long-term maintenance plan. The purpose of the plan is to make unit owners, bodies corporate and prospective buyers aware of what parts of the development will require maintenance, how often it is required, and the likely cost to unit owners.
Unit owners and bodies corporate can then decide how they want to pay for future maintenance obligations – whether incrementally saving using the long-term maintenance fund account or one-off levies as maintenance is required.
The scope, complexity and cost of the long-term maintenance plan are scalable to the development. For example, a small development with little or no common property will have a less-costly, simpler plan than a large multi-storey tower block with a lot of common property. In some developments, it may not be necessary to engage a professional to develop the plan.
The Act’s regulation-making power for ‘prescribing requirements of a long-term maintenance plan and matters to be included in that plan’ would cover any regulations that may be required.
Proposal:
P24
Regulations could prescribe the components of the long-term maintenance plan, for example:
- an asset register – a stocktake of buildings and materials
- review periods
- itemised list of building elements or infrastructure, such as:
- exterior cladding – materials used, washing, painting, repair and replacement
- paint colours
- roof – including spouting repair and replacement
- foundations
- shared infrastructure (such as wastewater and stormwater pipes)
- electricity and telecommunications cables
- air-conditioning
- fire detection
- lifts
- framing
- communal hot water cylinders
- specific items of common property maintenance (such as tennis courts and swimming pools).
Impact of regulating
It may not be necessary or helpful to prescribe the content of plans in regulations given the diversity of unit title developments. It may be more useful for the Department to give advice and direction on components the body corporate could include in the plans through guidance documents.
In addition, there is already much information on the elements that should comprise the long-term maintenance plan. Some bodies corporate may prefer to use some of the software programmes already on the market to develop long-term maintenance plans by themselves or use their own expertise.
Impact of not regulating
Not regulating the content of the long-term maintenance plan will give bodies corporate increased flexibility to decide how to develop and design their plan. However, not having regulatory guidance may mean the body corporate overlook some areas and leave unit owners in a position where they face unexpected maintenance and unplanned levies and costs.
The alternative to prescribing these matters through regulation is for the Department to issue guidance material that puts forward the above proposals as examples of best practice.
Questions
Q24 Do you think:
a) all
b) some, or
c) none
of the proposed components should be a regulatory requirement of the long-term maintenance plan? Please explain your answer.
Q25 Whether in guidance or regulations, do we need to add or remove anything from this list of components? If so, what are these? Please explain your answer.
Q26 Do you think anything else regarding the requirements of a long-term maintenance plan needs regulation or consumer guidance? If so, what are these?
Q27 What are the advantages and disadvantages of the proposals for you?
Q28 Will the proposals have any financial implications for you? If so, please explain giving as much information as you can.
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