HopgoodGanim's Anthony Pitt, a leading lawyer advising owners or developers of manufactured home parks or land lease communities, said the Manufactured Homes (Residential Parks) Amendment Bill 2024, will have a significant impact on the operation of residential parks in Queensland, particularly with respect to site rent increases and manufactured home buybacks. 

"If passed, the Bill will be a significant intrusion into the contractual relations between parties to existing site agreements," Anthony (pictured) said on HopgoodGanim's website. 

He told The SOURCE he had been contacted by a significant number of park owners who are concerned about the far-reaching nature of the amendments proposed by the Bill.

"Park owners share a disappointment in the consultation process and that various alternative measures and protections for home owners were ignored in favour of a significant re-write of existing contractual relations. The industry is concerned that these amendments have the potential to reduce home supply for seniors in Queensland," Anthony said.

Amendments proposed include: 

• Prohibiting market site rent reviews;  

• Limiting site rent increases to the greater of CPI or 3.5%;  

• Introducing a buyback and rent reduction scheme that home owners can 'opt in' to.  The proposed buyback timeframe is 18 months after a notice of intention to sell is given to the park owner. There are extensive provisions relating to agreement on the resale value, including timing and process for appointment of a registered valuer;  

• Capping the timeframe for payment of full site rents to six months after the home owner opts in to the buyback scheme. The park owner must reduce site rent by 25%; 

• Requiring maintenance and capital replacement plans for parks;    

• Expanding the Queensland Civil and Administrative Tribunal's role, including to issue orders to extend buyback timeframes, to require performance of buyback obligations and to vary existing site agreements.   

The Bill has been referred to Queensland Government's Housing, Big Build and Manufacturing Committee for review, with submissions due by 10 April 2024. 

"The Committee may set a date for a public hearing to occur for parties who have made submissions to attend,” said Anthony. 

"The Committee must report back to the Queensland Parliament as to the Bill, which will include the Committee’s recommendations and whether the Bill should be passed, which is due by 10 May 2024. 

The Government then has three months to respond to the report’s recommendations (if any)." 

The Property Council has condemned the new measures and said it would make some manufactured home operators financially unviable.