Covid 19 Amendment Regulations Relations Strata Schemes Management Act Community Land Management Act

As of 5th of June 2020 both COVID-19 Amendment Regulations in relation to the Strata Schemes Management Act and the Community Land Management Act commenced.

This is a great step forward for Strata residents, owners, and workers alike as we come to terms with the reality of living and working around COVID-19.

These second set of laws have been developed to equip citizens, businesses, and the justice system to address the impacts of the COVID-19 pandemic. The amendments, which build on legislation enacted in late March (2020) makes the health and safety of the people of NSW the number one priority.

SCA (NSW) would like to use this opportunity to disseminate pertinent information from the Bills as they relate to:

  • Community Land Management Act
  • Strata Schemes Management Act

Changes to the Community Land Management Act:

The object of this Regulation is to provide for the following matters under the Community Land Management Act 1989 for the purposes of responding to the public health emergency caused by the COVID-19 pandemic—

  • altered arrangements for convening, and voting at, meetings of an association or its executive committee
  • allowing instruments, instead of being affixed with the seal of an association in the presence of certain persons, to be signed (and the signatures to be witnessed) by those persons
  • the extension, to 6 months, of the time periods within which—
    • the first annual general meeting of an association must be convened and held
    • an estimate must be made to reimburse an amount paid or transferred from an administrative fund or a sinking fund.

This Regulation is made under the Community Land Management Act 1989, including sections 122 (the general regulation-making power) and 122A

Changes to the Strata Schemes Management Act

The object of this Regulation is to provide for the following matters under the Strata Schemes Management Act 2015 for the purposes of responding to the public health emergency caused by the COVID-19 pandemic—

  • altered arrangements for convening, and voting at, meetings of an owners corporation or a strata committee,
  • allowing instruments and documents, instead of being affixed with the seal of an owners corporation in the presence of certain persons, to be signed (and the signatures to be witnessed) by those persons,
  • the extension, to 6 months, of the time periods within which—
    • the first annual general meeting of an owners corporation must be convened and held
    • a levy must be determined to reimburse an amount paid or transferred from an administrative fund or a capital works fund.

This Regulation is made under the Strata Schemes Management Act 2015, including sections 271 (the general regulation-making power) and 271A.

Both additions reflect the changes as per the consultation draft SCA (NSW) reviewed.

To review the new strata and community schemes emergency measures click here. Links to the relevant Regulations are located at the bottom of the page.

Design Building Practitioners Bill 2019

 

Rubber has hit the road as the NSW parliament finally passes building reforms introduced in the wake of high-profile Sydney apartment defects, with the state government declaring a new era for building design and construction.

It’s been a productive week for the building industry and Government with the passing of the Design and Building Practitioners Bill 2019 yesterday; and the introduction of the Residential Apartment Buildings (Compliance and Enforcement Powers) Bill 2020 to parliament.

Combined, these two Bills put the interests of consumers first and show that the Government is serious about lifting the standard of work across the building and construction sector.

The NSW building regulator will have sweeping new powers to withhold occupation certificates for apartment and other buildings that are not up to standard, denying developers the ability to settle their projects, under new laws passing Parliament.

That will be a game-changer!

The ability of the regulator to prevent settlement (the point of profit for developers), is unprecedented and beckons a major change in Australia’s commercial development industry.

These reforms push NSW ahead of other states in the race to beef up regulation of an industry notorious for poor oversight and past systemic failings.

We’re pleased that these Bills have been collaboratively developed through extensive consultation with industry stakeholders such as us, and the public to ensure that the reforms were comprehensive and addressed core issues.

SCA (NSW) have been very vocal on these issues, appearing before inquiries to table our 7-point plan, which was formulated to restore confidence in the market and deal with dodgy builders and developers.

The two pieces of legislation forms one part of the NSW Government’s comprehensive six-part reform agenda to lift standards and accountability in the building sector.

The passing of the Bill is a huge step forward in the rebuilding the construction sector into a transparent, accountable, customer-centric industry that consumers deserve. The introduction of new compliance and enforcement powers also serves as a stark wake-up call to the dodgy builders and developers who have plagued New South Wales for too long.

We now have a leading system of design and building regulation that will deliver well-constructed buildings into the future.

Why It Is Important to Pay Strata Levies Fees

Why It Is Important to Pay Strata Levies Fees

The collection of levies and the proper maintenance of sinking and administration funds is an essential part of strata scheme living and vital for the continuation of schemes across the state, particularly amidst the COVID-19 pandemic.

The ability to properly maintain a property is being tested now more than ever and we explore why it’s important levies are still paid.

Buildings Operating at Capacity:

The effects the current COVID-19 pandemic will have on the Strata Sector and specifically the residents that live within multi-residential properties are still partly unknow.

There are thousands of apartment complexes in NSW where continued operation and resident support and protection is needed because of the heavy use of common areas and resident interaction in high density living.

Since lockdown measures were implemented, there has been enormous strain on all building infrastructure, waste and recycling management, cleaning demand, water/electricity/gas usage and facilities.

Due to the unforeseen nature of COVID-19, many Owners Corporation’s would not have budgeted adequately for these additional expenses.

However, any reduction in continued operation will have a snowballing effect for all residents and owners alike.

Levies:

The strata industry is responding like it never has. We are under revenue pressure like all businesses in today’s economy, with services and resident demand under intense strain for innovation, solutions, and support.

The increase in building expenditure unfortunately comes at a time when levy arrears for many buildings will increase due to the devastating financial impact the COVID-19 pandemic is having on the economy, businesses, individuals and the rental market.

The strata levies assisting with the ongoing running costs such as:

  • Strata Insurances
  • Bank fees
  • Common Area Utilities (Water, Gas and Electricity)
  • Cleaning & Gardening Maintenance
  • Waste management
  • Capital works fund
  • General Maintenance

Unlike many other sectors, there is currently no Government stimulus available for owners within Strata Schemes to assist with levy payments or over-stretched budgets.

So What Assistance is There?

The Federal and State Government’s have announced numerous stimulus packages that are available to both individuals and businesses that have been impacted by COVID-19 and are facing financial hardship, these include:

  • Job Keeper Payments
  • Job Seeker Payments
  • Credit Flow for Small and Medium Business
  • Payroll Tax Changes
  • Deferral of Parking Space Levy for 6 months
  • Deferral of rents for 6 months for commercial tenants with less than 20
  • employees in all Government-owned properties.
  • Licence, registration and permit fees will be automatically waived for 12-months on new applications and renewals lodged by eligible businesses and individuals
  • Emergency Cleaning Packages
  • Small Business Support Grant
  • Instant Asset Write Off Increase

And more pertinent support.

For more details regarding these stimulus packages see the following links

Aside from this, many banking and financial institutions are providing mortgage relief to customers by deferring mortgage payments.

Moving past COVID-19:

With no government stimulus available for Owners Corporations, the ongoing financial administration of your strata property is 100% reliant on strata levy contributions made by owners.

The need for a steady and predictable cashflow for your Owners Corporation to meet ongoing and increased expenses has never been greater.

COVID-19 – Looking Out for Your Neighbours…

It is nearly impossible not to feel some uncertainty, and a degree of fear, from what the COVID-19 pandemic has brought to our community. You can’t turn on the news or read social media without being confronted with international stories of panic and despair.

But having access to this endless information has a downside for us — it starts to dominate our lives. We read about it continuously, we search endlessly for answers. As we do, our fear and uncertainty build.

While we don’t know exactly what will happen, we do know that as a community our response to COVID-19 will impact all of us in ways we haven’t experienced before.

It’s very normal to not feel OK in challenging times such as these, and your family, friends and community will all react differently.

It is now even more important that we all promote a sense of community and reach out to our friends, family and colleagues to ensure they are coping.

SCA (NSW), encourages all members and strata communities alike to look out for each other.

Continue to be part of your community. Most importantly, try to think of those most vulnerable to becoming socially isolated, especially our older neighbours, and check in on them too.

Ask what they need

Services you can offer that don’t involve physical contact might include:

  • Delivering groceries or medical supplies
  • A friendly chat across balconies (at a safe distance of at least 1.5 metres) or over the phone

Reach out via social media

If you can’t connect face-to-face you can keep tabs on your neighbours and update everyone on what’s happening in your buildings via Facebook, WhatsApp or Zoom.

You can also search for existing community groups on social media by typing in your town or suburb’s name and post public offers of help there.

Keep up the contact

What everyone should be working towards is a deeper connection and more meaningful connection after the pandemic is over

There will be other challenges for communities and the idea is to forge connections that will last, are based on respect, understanding and the importance and value of all people in our community.

Let’s all contribute to making our community what it is and support each other in one way or another.

 

Energy Efficiency Upgrades for Householders

Energy Efficiency Upgrades for Householders

Householders and small businesses may be able to benefit from a range of energy efficiency upgrades in their homes, such as replacing downlights with LEDs. This is called the Home Energy Efficiency Retrofits (HEER) method.

Residential and small business upgrades are performed by businesses that are accredited under the HEER method and they may be able to provide discounted energy savings services or products to residential and small business customers.

Householders may also achieve energy savings by purchasing energy efficient appliances The Sale of New Appliances (SONA) method provides appliance retailers an incentive to sell higher efficiency appliances to consumers who benefit from the ongoing electricity savings. The types of appliances include:

  • Clothes washing machines
  • Clothes dryers
  • Dishwashers
  • 1-door refrigerators
  • 2-door refrigerators
  • Chest freezer or upright freezers
  • Televisions.

How you can participate

If you are interested in an energy efficiency upgrade for your home or purchasing an energy efficient appliance, you should contact the businesses that provide these services. Businesses accredited under the ESS are referred to as Accredited Certificate Providers, or ACPs. A list of all ACPs under the ESS is available on the List of ACPs page.

Businesses that are accredited for residential and small business activities may be able to assist you with an energy efficiency upgrade of your home or offer energy efficient appliances.

If you have any concerns about people offering you services, or believe they have not acted fairly, you may wish to contact NSW Fair Trading.

The NSW Government has also launched a lighting upgrade offer for households.

The purpose of the offer is to help eligible households replace old lights with new LED lights. The cost of the LED lights and the fee for installation is subsidised. Currently, the offer targets the replacement of halogen downlights with LED downlights.

The energy efficient lighting upgrades are part of the NSW Government energy affordability package. The purpose of the package is to help households and small businesses save energy and money.

How will this help my household?

Switching to LEDs will help you reduce your energy consumption. This means you can expect to see long-term cost savings on your bills.

For example, if you change 20 halogen downlights to LED downlights, you can save up to $210 a year on energy costs.

Other benefits include reduced maintenance because LEDs last longer than other lights. They will also lower your environmental impact.

Check if your home is eligible

To access the offer, you will need to contact an approved supplier. Currently, you also need to have halogen downlights. Suppliers require a minimum number of lights to be upgraded to qualify for the discount.

Get the upgrade

Your supplier will send a licensed electrician to install the new lights.

Old light globes, or any other equipment that is removed or replaced, must be recycled, or disposed of by the supplier. This is to ensure that old, inefficient equipment is not used anywhere else.

Make your home more energy efficient today

Access the discounted lighting offer now. Get started by finding an approved supplier who is active in your area.

If you have questions, contact an approved supplier directly.

Current approved suppliers for this program are Aussie Greenmarks, Accredited Power Saver, Ecovantage and Green Home Green Planet.

If your supplier can’t answer your questions, contact hello@energysaver.nsw.gov.au

Residential Tenancies Act Blog Rectification Order Process

Residential Tenancies Act Blog – New Rectification Order Process

On and from 23 March 2020, there are strengthened rectification processes in place to resolve disputes between landlords, their agents, and tenants.

Changes:

NSW Fair Trading now has powers to resolve disputes between tenants and landlords over repairs and maintenance and property damage. This includes the ability to issue rectification orders. The rectification order process supports tenants and landlords to resolve disputes about property repairs and damage in a tenancy by working with Fair Trading.

Landlords can apply to Fair Trading to investigate whether a tenant has caused or allowed damage to the property and has refused or failed to repair, or not satisfactorily repaired, the damage without a reasonable excuse.

Tenants can apply to Fair Trading to investigate whether the landlord has failed to provide and maintain the property in a reasonable state of repair.

A landlord or tenant must first make a written request to the other party to try and resolve the issue and can then apply to Fair Trading through the complaints and dispute resolution process if the issue is not resolved.

General Information on Tenancy Repairs:

A rental property must always be fit to live in.

Landlords are responsible for repairing and maintaining the property so that it is in a reasonable state of repair, considering the age of the property, the amount of rent being paid, and the prospective life of the property.

This does not mean that the property must be in perfect condition.

The state of the property and the level of repair expected should be in proportion to the property’s age and the amount of rent.

Tenants must keep the property in a reasonable state of cleanliness, considering the condition of the property at the start of the tenancy.

Tenants are responsible for minor maintenance including replacing light bulbs, cleaning windows, dusting, removing cobwebs and routine garden maintenance such as watering, mowing, and weeding.

Getting Repairs Done:

The tenant must have written permission from the landlord, including agreement on reimbursement, from the landlord, unless the repair is an urgent repair.

The tenant should request the repair in writing to the landlord explaining what needs fixing.

Even when repairs are not completed, a tenant should never stop paying the rent.

Withholding rent will put them in breach of their tenancy agreement and the tenancy may be terminated.

Damage:

Tenants must not cause or allow damage to the property, either intentionally or through lack of care or attention, including by other occupants or invited guests.

If the tenant causes or allows damage to the property, the landlord or agent can ask the tenant to arrange to repair the damage or to pay for the costs of the repairs if they are done by the landlord or agent.

Resolving repair, maintenance, or damage disputes:

It is always best for a tenant and landlord or agent to try to negotiate a resolution together. If the issue cannot be resolved this way, a tenant or landlord can:

  • contact Fair Trading’s tenancy complaints and disputes service
  • lodge an application directly with the Tribunal.

In some situations, Fair Trading may issue a rectification order to landlords to undertake repairs, or to tenants to fix damage. Visit the Resolving rental problems page for more information.

A landlord or tenant can apply directly to the Tribunal to resolve disputes about repairs, maintenance, or damage to the property.

The Tribunal can make various orders including:

  • that the landlord does repairs
  • that the tenant can pay their rent to the Tribunal until the repairs are done
  • that the tenant’s rent be reduced until the repairs are done
  • to compensate the tenant for losses (e.g. damage to tenants’ belongings from a leaking pipe after they told the landlord the pipe was leaking)
  • that the tenant repair damage they caused
  • that the tenant compensates the landlord for costs to repair damage the tenant caused
  • directing the landlord, landlord’s agent or the tenant to comply with their obligations.

If you would like to read about all the changes for tenants and landlords alike, please visit the Department of Fair Trading’s website here.

Residential Tenancies Act Blog Disclosure Obligations Landlords Agent

Residential Tenancies Act Blog – Disclosure Obligations on Landlords and Their Agents

On and from 23 March 2020, there are strengthened disclosure requirements in place to ensure increased transparency between landlords, their agents, and prospective tenants.

All pertinent material facts should be outlined before a prospective tenant signs an agreement.

A landlord or agent must not make false or misleading statements or knowingly conceal certain material facts from a prospective tenant before they sign an agreement. The list of material facts is available in the Tenant Information Statement that a landlord or agent must give a tenant before entering into a tenancy agreement.

Before signing an agreement, a landlord or agent must also tell a tenant of any proposal to sell the property if the landlord has prepared a contract for sale, or if a mortgagee (i.e. bank or other lender) is taking court action for possession of the property.

The list of material facts and information that prospective tenants must be told before entering into an agreement has been expanded. The changes also provide a remedy for tenants when material facts and information are not disclosed. The changes recognise the potential hardship tenants face if they are not provided with important information about a tenancy.

New Material Facts:

New material facts have been added, including that a landlord or agent needs to disclose if the property:

  • has been used to manufacture or grow a prohibited drug or prohibited plant in the last two years
  • is in a strata scheme where scheduled rectification work or major repairs will be done to common property during the fixed term of the agreement
  • is part of a building to where a:
  • fire safety or building product rectification order (or a notice of intention to issue one of these orders) has been issued for external combustible cladding
  • development or complying development certificate application for rectification has been lodged for external combustible cladding

Our next topic will cover the new powers for NSW Fair Trading to resolve disputes between tenants and landlords. This includes powers to investigate and issue rectification orders to require landlords to carry out repairs and maintenance, or tenants to fix damage.

Stay tuned.

If you would like to read about all the changes for tenants and landlords alike, please visit the Department of Fair Trading’s website here.

COVID-19 – Manage Your Energy Bills

With another cold winter around the corner and the household electricity usage rising to combat the chill; we wanted to share some information on regulations that all gas and energy providers must abide by, and energy bill relief schemes that the NSW Government has introduced during the COVID-19 pandemic.

Regulatory Information:

Under Retail Law in NSW, electricity & gas energy retailers must implement customer hardship policies for their residential customers.

The purpose of a retailer’s customer “hardship policy” (or similarly named policy) is to identify customers experiencing payment difficulties (due to hardship) and to assist those customers to better manage their energy bills.

Hardship factors cover items such as

  • death in the family,
  • household illness,
  • unemployment &
  • reduced income (the last two of which are most presently applicable).

Energy retailers have a requirement to ensure customers can access hardship support when needed.

Energy.gov.au provides essential information for billing and payment help in the first instance:

  1. If you or your business are having trouble paying your bill you should call your electricity or gas provider. Their phone number is on your bill.
  2. Ask about what hardship support they can offer you. They have staff trained to assist.
  3. Ask to go on a payment plan to pay your bill over a longer time or make small regular payments.
  4. Stay on the plan to protect yourself from disconnection, interest payments and late fees.
  5. Ask if there are government concessions or rebates to help you at home or at work.

They also provide tips and tricks on how to save energy for your household or business.

As a result of the financial pressure that COVID-19 is causing to thousands of residents, many energy retailers are acknowledging the difficult times ahead and urge customers experiencing difficulties paying their bills to get in touch with their supplier.

The Energy and Water Ombudsman in your jurisdiction may also be of assistance and they encourage you to contact your energy or gas provider for information about their affordability programmes. In addition to energy retailers’ support, you may be eligible for government support.

Energy Accounts Payment Assistance Scheme:

Households struggling to pay their energy bills during COVID-19 now have access to additional financial support directly through Service NSW and the NSW Department of Planning, Industry and Environment, thanks to a $30 million boost to the government’s emergency support Energy Accounts Payment Assistance (EAPA) Scheme.

For ease of access, residential energy customers can now apply for EAPA vouchers directly through Service NSW and will be called for an assessment without having to leave the home.

During the assessment for EAPA vouchers, NSW Government representatives will also contact energy retailers with customers to assist with getting customers onto hardship plans, which will further protect customers during this extraordinarily difficult time.

If you’re having difficulty paying your household energy bill because of a short-term financial crisis or emergency, such as unexpected medical bills, or reduced income due to COVID-19, you could be eligible for Energy Accounts Payment Assistance (EAPA) $50 vouchers.

EAPA vouchers are sent electronically to your energy retailer and used to credit your home electricity or gas account. EAPA vouchers can’t be used to put your energy account into credit.

Eligibility

To meet the requirements for EAPA vouchers you must:

  • have an electricity or natural gas account for a NSW residential supply address, which is your primary place of residence
  • be the electricity or natural gas account holder (your account and bill must be in your name)
  • be experiencing a short-term financial crisis or emergency that has impacted your ability to pay your current residential energy bill (in full or in part) due to financial hardship.

You’re not eligible if you:

  • use liquid petroleum gas (LPG) bottles for your gas supply; however, you may be eligible for gas rebates
  • are residing in embedded networks (e.g. some strata plans, retirement villages and residential parks)
  • have already paid your energy bill. You can apply for EAPA vouchers if you’re still experiencing a short-term financial crisis or emergency when you receive your next energy bill.

For more information on NSW Government concessions, rebates, and assistance visit:

NSW Land Registry Services – Regulatory Changes

 

NSW Land Registry Services – Regulatory Changes

NSW Land Registry Services (NSW LRS) has put in place measures to assist customers and lodging parties unable to attend our Queens Square Lodgement Office due to COVID-19 disruptions.

Restrictions imposed in response to COVID-19 have made it difficult to prepare, sign and witness paper land instruments. Regulatory changes have been announced to assist customers during this challenging time. The Registrar General has published a Guidance Note for land dealings which can be accessed here.

NSW LRS have received several queries from customers regarding the use of electronic signatures during the COVID-19 disruptions.

NSW LRS have been working with the Office of the Registrar General to find a solution during this time. We are pleased to confirm that regulatory changes have now been made to allow customers to electronically sign land dealings, plans and other associated plans documents should they need to do so.

To assist with the lodgement of plans and associated documents during this period, the interactive Administration Sheet, Section 88B instrument and plan lodgement checklist have all been updated to support electronic signing (available here).

These documents include embedded user guides and execution templates.

For more information, please head to the Land Registry Services’ announcement page here.

Regulation of building standards, building quality and building disputes

Building Standards, Building Quality and Building Disputes 

The final report of the Public Accountability Committee, entitled Regulation of building standards, building quality and building disputes: Final report, was published yesterday.

The report was tabled with the Clerk of the Parliaments on 30 April 2020 – following an inquiry which was established on 4 July 2019 to inquire into and report on the regulation of building standards, building quality and building disputes.

The report is available on the Government’s website, along with submissions, transcripts of evidence and other inquiry documents here.

SCA (NSW) were very vocal on this issue, appearing before the inquiry to present our submission and table our 7-point plan, which was formulated to restore confidence in the market and deal with the retrospective failures of  builders and certifiers.

The report and its recommendations are now with the government for consideration. The government is required to respond to the recommendations within six months.

We will advise our members of the government response when it has been received.

On behalf of SCA (NSW), we’d like to take this opportunity to thank our members and stakeholders for any contribution to the inquiry.

The recommendations for the government’s consideration are outlined below:

Recommendation 1

That the NSW Government introduce and debate the powers bill granting the NSW Building Commissioner new powers to ensure building standards as a matter of urgency when the NSW Parliament is reconvened in May 2020, with prompt circulation of the proposed bill to members of Parliament.

Recommendation 2

That the NSW Government resume debate on the Design and Building Practitioners Bill 2019 as a matter of urgency when the NSW Parliament is reconvened in May 2020.

Recommendation 3

That the NSW Government empower the NSW Building Commissioner to oversee all licencing inspections, within the newly created Building Commission. Further, that the Building Commission hire additional, specialised inspectors to create a more robust inspection regime for building, electrical and plumbing work in New South Wales.

Recommendation 4

That the NSW Government release and act immediately on the advice of the NSW Building Commissioner in relation to flammable cladding, or alternatively explain why it prefers an alternative approach.

Recommendation 5

That the NSW Government establish a separate division in the Building Commission, modelled on Cladding Safety Victoria, to lead the response to flammable cladding on New South Wales buildings. The cladding division should sit within the Building Commission, as recommended in the first report of this inquiry, and be responsible to the NSW Building Commissioner.

Recommendation 6

That the NSW Government require property owners, landlords and real estate agents to disclose whether a building contains flammable cladding, and the progress of any rectification measures, to prospective buyers and tenants within a reasonable timeframe prior to signing contracts and when a property is open for inspection.

Recommendation 7

That the NSW Government ensure that all buildings designed for public use such as cinemas, shopping centres, universities, hotels, entertainment centres, childcare centres and hospitals that are assessed as high-risk for flammable cladding are remediated as a priority. Additionally, members of the public entering those buildings should be made aware that a building is high-risk. This might take the form of the compulsory display of a notice to this effect and compulsory notification at the time of booking where possible.

Recommendation 8

That the NSW Government publish the specific criteria used to classify buildings as no, low or high-risk in regards to flammable cladding.

Recommendation 9

That the NSW Government provide significant further resources to Fire and Rescue NSW to enable the Fire Safety Branch to respond to the issue of flammable cladding in a timely and comprehensive manner.

Recommendation 10

That the NSW Government urgently establish an expert panel or panels, similar to the panel established in Victoria, to assess and provide advice free of charge on cladding rectification plans, including what materials homeowners can use to replace flammable cladding.

Recommendation 11

That the NSW Government adopt a practice where genuine purchasers and potential tenants are able to access information from the cladding register or similar database to clarify the cladding status of their potential future home.

Recommendation 12

That the NSW Government provide a substantial funding package, proportionate to the Victorian Government’s $600 million package, to fund the rectification of buildings containing aluminium composite panels and building products that may be banned in future. The package should be available to homeowners who have already commenced remediation work.

Recommendation 13

That the NSW Government take a proactive role in identifying other potentially flammable cladding products on the market and move to ban them or otherwise prevent their unsafe use in the construction industry.

Recommendation 14

That the NSW Government, through the Building Ministers’ Forum, seek to amend the National Construction Code to require that building materials do not create a risk of debris falling from a building during fire conditions, including for composite products.

Recommendation 15

That the NSW Government, through the Building Ministers’ Forum, seek to ensure mandatory accreditation by the National Association of Testing Authorities, Australia (NATA) for all entities that test building materials.

Recommendation 16

That the NSW Government undertake a review of the mandatory critical stage inspection regime under the Environmental Planning and Assessment Act 1979 with a view to expanding the number and scope of required inspections undertaken by accredited certifiers.

Recommendation 17

That the NSW Government consider amending the Environmental Planning and Assessment Act 1979 to require a mandatory inspection two years after a development consent has been issued to ensure that construction is consistent with the approved development application plan and the construction certificate.

Recommendation 18

That the NSW Government implement the recommendations, where practical, put forward in this report by Mr Michael Lambert to improve the certification system as soon as possible and no later than within two years. Specifically, the recommendations made by Mr Lambert to:

  • provide practice guides for building certifiers and each other class of certifier of building work, setting out the role and responsibilities to which certifiers are held to account
  • undertake a regular audit program of the work of building certifiers
  • provide support for certifiers in the form of a help desk and a panel of experts on which they can draw for advice and a Reference Panel for mandatory reviews of select designated complex and higher risk developments
  • put in place controls to mitigate conflicts of interest and increase the independence and transparency of engagement of building certifiers and building practitioners
  • provide building certifiers with enhanced supervisory powers and mandatory
  • reporting obligations in respect to building non-compliance
  • establish and maintain a program of Continuing Professional Development for all building certifiers
  • require building certifiers to be members of an approved professional association which is subject to a full professionalisation process oversighted by the Professional Standards Authority
  • establish a requirement for councils and building certifiers to work together, including a requirement for mandatory reporting to councils by building certifiers of non-compliance and for councils to act on such notices and keep the building certifier informed of developments.

Recommendation 19

That the Legislative Council’s Public Accountability Committee as part of its foreshadowed inquiry to review the NSW Governments’ reforms into the building and construction industry consider as one of its terms of reference the strengthening of public control of certification, such as returning certification to local councils.

Recommendation 20

That the NSW Government review the NSW Civil and Administrative Tribunal dispute resolution process for disputes relating to strata buildings to ensure the tribunal has sufficient enforcement powers and to simplify and streamline the dispute resolution process, and to ensure that tribunal members have the relevant expertise.

Recommendation 21

That the NSW Government appoint a Strata Commissioner, to sit within the Building Commission that was recommended in the first report of this inquiry. Once established, the Strata Commissioner should undertake an initial project to scope their specific responsibilities. These may include:

  • providing training, support and advice to strata committees, particularly on rectifying building defects and flammable cladding and dealing with strata disputes
  • monitoring and recommending any necessary changes to the policy settings that govern disputes between homeowners and builders and developers
  • appointing a buildings’ initial strata manager to be in place until the first Annual General Meeting.

Recommendation 22

That the NSW Government explore additional financial assistance measures for strata homeowners who have major defects in their buildings and who are unable to claim under the statutory warranties scheme or the Home Building Compensation scheme, noting that the committee will further consider this matter in its foreshadowed inquiry to review the NSW Government’s reforms into the building and construction industry.

We look forward to positive change to building standards and regulation in NSW.

Blog Series: New Residential Tenancies Laws – Changes of a ‘Minor Nature’

A new section 66(2A) has been inserted into the Residential Tenancies Act 2010 (NSW), setting out that certain alterations, additions, renovations and fixtures may be prescribed as of a “minor nature” and that the landlord is not able to unreasonably withhold consent.

Further, with respect to certain prescribed minor changes, the landlord may give consent on the condition that an appropriately qualified person makes the change.

On and from 23 March 2020, Tenants can install fixtures or make alterations, additions or renovations if they have the landlord’s written consent, or if the tenancy agreement permits it.

The tenant must pay for the fixture they install or for any alteration, renovation or addition to the property that they make unless the landlord agrees otherwise.

The new Regulation lists the kinds of fixtures or alterations, additions or renovations that are minor where it would be unreasonable for the landlord to say no:

  • Securing furniture to a non-tiled wall for safety reasons
  • Fitting a childproof latch to an outdoor gate of a single dwelling
  • Inserting fly screens on windows
  • Installing or replacing an internal window covering e.g. curtains and removable blinds
  • Installing cleats or cord guides to secure blind or curtain cords
  • Installing child safety gates inside the property
  • Installing window safety devices for child safety
  • Installing hand-held showerheads or lever-style taps to assist elderly or disabled occupants
  • Installing or replacing hooks, nails or screws for hanging paintings, picture frames and other similar items
  • Installing phone line or internet connection
  • Planting vegetables, flowers, herbs or shrubs (shrubs that don’t grow more than two meters) in the garden if existing vegetation or plants do not need to be removed
  • Installing a wireless removable outdoor security camera
  • Applying shatter-resistant film to window or glass doors
  • Making modifications that don’t penetrate a surface, or permanently modify a surface, fixture or structure of the property.

The new Regulation also specifies that a landlord may require that the following changes be carried out by a qualified person:

  • Installing hand-held showerheads or lever-style taps to assist elderly or disabled occupants
  • Installing a phone line or internet connection

The changes do not apply if a property is listed on the loose-fill asbestos insulation register, or if the property is a heritage item.

Some restrictions and exclusions also apply to property in a strata scheme, residential land lease community, or to social housing properties.

Even if the fixture, alteration, addition or renovation is included in the above list, tenants must still get the landlord’s written permission. However, for changes that are on the list and not covered by an exemption, it is unreasonable for the landlord to refuse consent or place conditions on the consent.

Our next topic will cover the limiting of rent increases to once every 12 months for periodic (continuing) leases

Stay tuned.

SCA (NSW), are here to help our members transition to the new laws.

If you would like to read about all the changes for tenants and landlords alike, please visit the Department of Fair Trading’s website here.

 

Blog Series: New Residential Tenancies Laws – New Information to be Disclosed to Prospective Strata Tenants

A new section 26(2A) will be inserted into the Residential Tenancies Act 2010 (NSW), setting out that certain information must be disclosed to tenants where the property is in a strata scheme.

From 23 March 2020, NSW landlords are required to provide new information disclosed to prospective strata tenants:

  • Before a tenancy agreement is signed, a landlord or agent needs to give a tenant a copy of the strata scheme’s by-laws.
  • They also need to inform the tenant if a strata renewal committee is currently established for the scheme.

These changes provide greater protection for prospective strata tenants and are additional requirements to the general disclosure obligations.

Both disclosures must occur before the tenant enters into the residential tenancy agreement.

 

The amendment in practice:

Property managers will need to plan so that, prior to the tenant signing a residential tenancy agreement, they have a copy of the latest by-laws and knowledge of whether a strata renewal committee has been established.

Property managers will need to allow enough time, so they can be proactive in seeking and obtaining this information from strata managers to ensure compliance with the new section 26(2A).

Property managers should install appropriate processes to ensure the leasing process isn’t slowed down.

Our next topic will cover changes of a ‘minor nature’

Stay tuned.

SCA (NSW), are here to help our members transition to the new laws.

If you would like to read about all the changes for tenants and landlords alike, please visit the Department of Fair Trading’s website here.