The Urban Development Institute of Australia (UDIA WA) has heralded the introduction of the Strata Titles Amendment Bill 2018 and Community Titles Bill 2018 to state parliament today as the most significant strata title reform to property law in 30 years.
“The introduction of this legislation, particularly the introduction of Community Title in WA, will change the way we can deliver mixed use and other forms of strata developments in WA,” UDIA WA CEO Allison Hailes said.
“Perth is evolving, and with the further densification of our city, the rise of more mixed use developments and changing buyer expectations, it is imperative that our strata legislation keeps up with the times and supports this evolution,” Ms Hailes said.
“The proposed strata reform will provide more flexible and sustainable housing options to benefit strata owners, residents, tenants, investors and developers,” Ms Hailes said.
STRATA REFORM WILL:
• Introduce two new forms of land ownership (Community Schemes and Leasehold Schemes)
• Provide more flexibility for staged subdivisions
• Improve strata management practices
• Simplify dispute resolution processes
• Improve information regarding strata schemes for buyers
• Implement rigorous safeguarding measures for the termination of schemes
“The property industry is excited at the prospect of more flexibility to achieve enhanced community outcomes such as greater amenity; the introduction of improved management schemes; and a simplified dispute resolution process,” Ms Hailes said.
“The introduction of Community Titles in particular, will provide a framework to ensure the best possible outcomes for mixed use development, specifically addressing issues around different uses and sharing of facilities,” Ms Hailes said.
“We now hope for the smooth passage of the legislation through both houses of parliament given the benefits to the broader community that it will have,” Ms Hailes said.
“As the reforms were initiated by the former Liberal government and the McGowan government has continued the work, we are hopeful the opposition will support the legislation,” Ms Hailes said.
COMMUNITY TITLE – WHAT DOES IT MEAN?
Other states around Australia and internationally already have Community Titles operating successfully.
The new legislation will allow for the establishment of one or more management bodies to oversee the common property within a development.
Underpinning Community Title is the flexibility to have principle management companies and subsidiary management companies in a hierarchical arrangement.
“In a mixed use situation where you have a multistory building with retail on the ground floors, commercial on the middle floors and residential on the top floors, you can have a principle management company that takes care of the building and common matters such as the lifts and foyer, whilst subsidiary management companies can be established for the retail floors, the commercial floors and the residential floors giving much greater control to the owners,” Ms Hailes said.
“If we look at the rise in shopping centre redevelopments occurring around Perth where developers are looking to include residential and other uses within the same precinct, Community Title will provide a much more appropriate framework to deliver these types of projects,” Ms Hailes said.
“This type of framework could also assist with increasing retirement housing within mixed use developments as it provides the option for a subsidiary management company to look after that section,” Ms Hailes said.
“Furthermore, with the roll out of METRONET and the associated development precincts, Community Title will be an important framework to deliver these areas and achieve the best possible outcomes,” Ms Hailes said.
“It is critical that as we deliver more urban infill to the market, we are providing what the market wants, of a quality that is expected and deserved,” Ms Hailes said. “The right legislative framework is the first step in that process.”
Ends.