Following the October 2022 Housing Summit, the Palaszczuk Government has announced alterations to the body corporate legislation with the intention of simplifying the process of selling and revitalising community title schemes in Queensland that are aging or in poor condition.
The announcement follows years of advocacy from the Property Council who have championed these reforms as an essential step in solving the state’s ongoing housing crisis.
Queensland Deputy Executive Director of the Property Council Jess Caire said the reforms reducing the thresholds are a welcome step and will assist in facilitating the redevelopment of old apartment buildings.
“The Property Council has championed this reform since 2016 and congratulates the State Government on the urgent and immediate series of actions they are undertaking to resolve the housing crisis,” Ms Caire said.
“In Queensland, in particular areas like the Gold Coast there are countless unit blocks that are in dire need of redevelopment, they are small, underutilized and some are beyond repair, posing safety issues for the residents.
“These reforms will mean that the vast majority will now be able to wrap up their strata schemes and unlock the capital from their unit and access safe, fit-for- purpose housing.
“This will do much to address the current housing crisis and will facilitate urban infill and ensure sites are utilized to their full potential.”
Currently, a community titles scheme may be dissolved only if no owner objects or if the District Court determines that it is right and equitable to do so.
The amendments would permit the termination of a scheme with the approval of 75 per cent of lot owners, when the body corporate has concluded that it is more financially feasible for lot owners to terminate rather than maintain or remediate the scheme.
In all other cases, the termination of a scheme will still require that no owners object for it to be accepted.
Ms Caire said the reforms are an important step in the right direction.
“The Property Council looks forward to working with Government to continue to build on the significant momentum generated since the landmark October housing summit.
“Other key actions arising out of the summit include investigating ways to progress Build to Rent as a way of diversifying Queensland’s current housing mix,” Ms Caire said.
The government will also improve legislation to better safeguard inhabitants from secondhand smoke by granting bodies corporate the authority to enact by-laws prohibiting smoking in outdoor and common spaces of a community titles project.
Changes would also safeguard pet owners by prohibiting bodies corporate from prohibiting pets in community title schemes, save in certain instances.
This reform package would also strengthen body corporate governance and administration, such as making it simpler for people to file complaints and boosting adjudicators’ authority.
These reforms also include permitting corporations to tow automobiles that are impeding entry or posing a hazard.
Attorney-General Shannon Fentiman said scheme termination was a key area that required reform.
“I’ve heard many stories of rundown units, townhouses or complexes with unsustainable ongoing maintenance costs where owners want to terminate, but a single owner blocks this from occurring,” she said.
“The Government recognises that some owners may not wish to sell their unit or move to a new home so termination arrangements must balance the rights and interests of all lot owners in a scheme.
“The new process will include safeguards to protect owners in the minority who do not support termination. If the body corporate approves a termination plan, a dissenting owner will be able to make an application to the District Court, which would consider a set of just and equitable factors in deciding whether the termination should proceed.”
This year will see public consultation on the draft law, with a second package of reforms to be introduced before the end of the year.